Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 09, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PNC | ||
Entity Registrant Name | PNC FINANCIAL SERVICES GROUP, INC. | ||
Entity Central Index Key | 713,676 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 471,590,384 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 59,800,000,000 |
Consolidated Income Statement
Consolidated Income Statement - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Income | |||
Loans | $ 8,238 | $ 7,414 | $ 7,203 |
Investment securities | 1,998 | 1,826 | 1,679 |
Other | 578 | 412 | 441 |
Total interest income | 10,814 | 9,652 | 9,323 |
Interest Expense | |||
Deposits | 623 | 430 | 403 |
Borrowed funds | 1,083 | 831 | 642 |
Total interest expense | 1,706 | 1,261 | 1,045 |
Net interest income | 9,108 | 8,391 | 8,278 |
Noninterest Income | |||
Asset management | 1,942 | 1,521 | 1,567 |
Consumer services | 1,415 | 1,388 | 1,335 |
Corporate services | 1,621 | 1,504 | 1,491 |
Residential mortgage | 350 | 567 | 566 |
Service charges on deposits | 695 | 667 | 651 |
Other | 1,198 | 1,124 | 1,337 |
Total noninterest income | 7,221 | 6,771 | 6,947 |
Total revenue | 16,329 | 15,162 | 15,225 |
Provision For Credit Losses | 441 | 433 | 255 |
Noninterest Expense | |||
Personnel | 5,224 | 4,841 | 4,831 |
Occupancy | 868 | 861 | 842 |
Equipment | 1,065 | 974 | 925 |
Marketing | 244 | 247 | 249 |
Other | 2,997 | 2,553 | 2,616 |
Total noninterest expense | 10,398 | 9,476 | 9,463 |
Income before income taxes and noncontrolling interests | 5,490 | 5,253 | 5,507 |
Income taxes | 102 | 1,268 | 1,364 |
Net income | 5,388 | 3,985 | 4,143 |
Less: Net income attributable to noncontrolling interests | 50 | 82 | 37 |
Preferred stock dividends | 236 | 209 | 220 |
Preferred stock discount accretion and redemptions | 26 | 6 | 5 |
Net income attributable to common shareholders | $ 5,076 | $ 3,688 | $ 3,881 |
Earnings Per Common Share | |||
Basic (dollars per share) | $ 10.49 | $ 7.42 | $ 7.52 |
Diluted (dollars per share) | $ 10.36 | $ 7.30 | $ 7.39 |
Average Common Shares Outstanding | |||
Basic (shares) | 481 | 494 | 514 |
Diluted (shares) | 486 | 500 | 521 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 5,388 | $ 3,985 | $ 4,143 |
Other comprehensive income (loss), before tax and net of reclassifications into Net income: | |||
Net unrealized gains (losses) on non-OTTI securities | 16 | (369) | (569) |
Net unrealized gains (losses) on OTTI securities | 172 | 63 | (13) |
Net unrealized gains (losses) on cash flow hedge derivatives | (287) | (153) | 127 |
Pension and other postretirement benefit plan adjustments | 169 | 1 | (54) |
Other | 61 | (59) | (42) |
Other comprehensive income (loss), before tax and net of reclassifications into Net income | 131 | (517) | (551) |
Income tax benefit (expense) related to items of other comprehensive income | (14) | 122 | 178 |
Other comprehensive income (loss), after tax and net of reclassifications into Net income | 117 | (395) | (373) |
Comprehensive income | 5,505 | 3,590 | 3,770 |
Less: Comprehensive income attributable to noncontrolling interests | 50 | 82 | 37 |
Comprehensive income attributable to PNC | $ 5,455 | $ 3,508 | $ 3,733 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and due from banks | $ 5,249,000,000 | $ 4,879,000,000 | |
Interest-earning deposits with banks | 28,595,000,000 | 25,711,000,000 | |
Loans held for sale (a) | [1] | 2,655,000,000 | 2,504,000,000 |
Investment securities – available for sale | 57,618,000,000 | 60,104,000,000 | |
Investment securities – held to maturity | 18,513,000,000 | 15,843,000,000 | |
Loans (a) | [1] | 220,458,000,000 | 210,833,000,000 |
Allowance for loan and lease losses | (2,611,000,000) | (2,589,000,000) | |
Net loans | 217,847,000,000 | 208,244,000,000 | |
Equity investments | 11,392,000,000 | 10,728,000,000 | |
Mortgage servicing rights | 1,832,000,000 | 1,758,000,000 | |
Goodwill | 9,173,000,000 | 9,103,000,000 | |
Other (a) | [1] | 27,894,000,000 | 27,506,000,000 |
Total assets | 380,768,000,000 | 366,380,000,000 | |
Deposits | |||
Noninterest-bearing | 79,864,000,000 | 80,230,000,000 | |
Interest-bearing | 185,189,000,000 | 176,934,000,000 | |
Total deposits | 265,053,000,000 | 257,164,000,000 | |
Borrowed funds | |||
Federal Home Loan Bank borrowings | 21,037,000,000 | 17,549,000,000 | |
Bank notes and senior debt | 28,062,000,000 | 22,972,000,000 | |
Subordinated debt | 5,200,000,000 | 8,009,000,000 | |
Other (b) | [2] | 4,789,000,000 | 4,176,000,000 |
Total borrowed funds | 59,088,000,000 | 52,706,000,000 | |
Allowance for unfunded loan commitments and letters of credit | 297,000,000 | 301,000,000 | |
Accrued expenses and other liabilities | 8,745,000,000 | 9,355,000,000 | |
Total liabilities | 333,183,000,000 | 319,526,000,000 | |
Equity | |||
Preferred stock (c) | [3] | ||
Common stock ($5 par value, Authorized 800 shares, issued 542 shares) | 2,710,000,000 | 2,709,000,000 | |
Capital surplus | 16,374,000,000 | 16,651,000,000 | |
Retained earnings | 35,481,000,000 | 31,670,000,000 | |
Accumulated other comprehensive income (loss) | (148,000,000) | (265,000,000) | |
Common stock held in treasury at cost: 69 and 57 shares | (6,904,000,000) | (5,066,000,000) | |
Total shareholders’ equity | 47,513,000,000 | 45,699,000,000 | |
Noncontrolling interests | 72,000,000 | 1,155,000,000 | |
Total equity | 47,585,000,000 | 46,854,000,000 | |
Total liabilities and equity | $ 380,768,000,000 | $ 366,380,000,000 | |
[1] | Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.7 billion, Loans of $.9 billion, and Other assets of $.3 billion at December 31, 2017 and Loans held for sale of $2.4 billion, Loans of $.9 billion, and Other assets of $.5 billion at December 31, 2016. | ||
[2] | Our consolidated liabilities included Other borrowed funds of $.1 billion at both December 31, 2017 and December 31, 2016, for which we have elected the fair value option. | ||
[3] | Par value less than $.5 million at each date. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | ||
Common stock, par value (in dollars per share) | $ 5 | $ 5 | ||
Common stock, authorized (shares) | 800,000,000 | 800,000,000 | ||
Common stock, issued (shares) | 542,000,000 | 542,000,000 | ||
Common stock held in treasury at cost (shares) | 69,000,000 | 57,000,000 | ||
Preferred Stock | [1] | $ 0.5 | [2] | $ 0.5 |
Portion at Fair Value Measurement [Member] | ||||
Loans held for sale, fair value | [3] | 1,700 | 2,400 | |
Loans, fair value | [3] | 900 | 900 | |
Other assets, fair value | [3] | 300 | 500 | |
Other borrowed funds, fair value | [4] | $ 100 | $ 100 | |
[1] | Par value less than $.5 million at each date. | |||
[2] | The par value of our preferred stock outstanding was less than $.5 million at each date and, therefore, is excluded from this presentation. | |||
[3] | Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.7 billion, Loans of $.9 billion, and Other assets of $.3 billion at December 31, 2017 and Loans held for sale of $2.4 billion, Loans of $.9 billion, and Other assets of $.5 billion at December 31, 2016. | |||
[4] | Our consolidated liabilities included Other borrowed funds of $.1 billion at both December 31, 2017 and December 31, 2016, for which we have elected the fair value option. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) | Total | Series K Preferred Stock | Series S Preferred Stock | Common Stock | Preferred Stock Including Additional Paid in Capital | Common Stock Including Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interest | ||
Beginning Balance (in shares) at Dec. 31, 2014 | 523,000,000 | |||||||||||
Common Stock, Beginning Balance at Dec. 31, 2014 | $ 2,705,000,000 | |||||||||||
Capital surplus - Preferred Stock, Beginning Balance at Dec. 31, 2014 | [1] | $ 3,946,000,000 | ||||||||||
Capital surplus - Common Stock, Beginning Balance at Dec. 31, 2014 | $ 12,627,000,000 | |||||||||||
Retained Earnings, Beginning Balance at Dec. 31, 2014 | $ 26,200,000,000 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance at Dec. 31, 2014 | $ 503,000,000 | $ 503,000,000 | ||||||||||
Treasury Stock, Beginning Balance at Dec. 31, 2014 | $ (1,430,000,000) | |||||||||||
Noncontrolling interests, Beginning Balance at Dec. 31, 2014 | $ 1,523,000,000 | |||||||||||
Total Equity, Beginning Balance at Dec. 31, 2014 | 46,074,000,000 | |||||||||||
Dividends, Cash [Abstract] | ||||||||||||
Preferred stock redemption, shares | [2] | 50,000 | ||||||||||
Beginning Balance (in shares) at Dec. 31, 2014 | 523,000,000 | |||||||||||
Common Stock [Abstract] | ||||||||||||
Common stock activity, shares | 1,000,000 | |||||||||||
Ending Balance, (in shares) at Dec. 31, 2015 | 504,000,000 | |||||||||||
Common Stock, Beginning Balance at Dec. 31, 2014 | $ 2,705,000,000 | |||||||||||
Capital surplus - Preferred Stock, Beginning Balance at Dec. 31, 2014 | [1] | 3,946,000,000 | ||||||||||
Capital surplus - Common Stock, Beginning Balance at Dec. 31, 2014 | 12,627,000,000 | |||||||||||
Retained Earnings, Beginning Balance at Dec. 31, 2014 | 26,200,000,000 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance at Dec. 31, 2014 | 503,000,000 | 503,000,000 | ||||||||||
Treasury Stock, Beginning Balance at Dec. 31, 2014 | (1,430,000,000) | |||||||||||
Noncontrolling interests, Beginning Balance at Dec. 31, 2014 | 1,523,000,000 | |||||||||||
Total Equity, Beginning Balance at Dec. 31, 2014 | 46,074,000,000 | |||||||||||
Common Stock [Abstract] | ||||||||||||
Net income | 4,143,000,000 | 4,106,000,000 | 37,000,000 | |||||||||
Other comprehensive income (loss), net of tax | (373,000,000) | (373,000,000) | ||||||||||
Dividends, Cash [Abstract] | ||||||||||||
Common | (1,038,000,000) | (1,038,000,000) | ||||||||||
Preferred | (219,000,000) | (219,000,000) | ||||||||||
Preferred stock discount accretion | 6,000,000 | (6,000,000) | ||||||||||
Preferred stock redemption – Series K (b) | [2] | (500,000,000) | (500,000,000) | |||||||||
Common stock activity | 49,000,000 | $ 3,000,000 | 46,000,000 | |||||||||
Treasury stock activity, shares | (20,000,000) | |||||||||||
Treasury stock activity | (1,994,000,000) | (56,000,000) | (1,938,000,000) | |||||||||
Other | (162,000,000) | 128,000,000 | (290,000,000) | |||||||||
Common Stock, Ending Balance at Dec. 31, 2015 | $ 2,708,000,000 | |||||||||||
Capital surplus - Preferred Stock, Ending Balance at Dec. 31, 2015 | [1] | 3,452,000,000 | ||||||||||
Capital surplus - Common Stock, Ending Balance at Dec. 31, 2015 | 12,745,000,000 | |||||||||||
Retained Earnings, Ending Balance at Dec. 31, 2015 | 29,043,000,000 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance at Dec. 31, 2015 | 130,000,000 | 130,000,000 | ||||||||||
Treasury Stock, Ending Balance at Dec. 31, 2015 | (3,368,000,000) | |||||||||||
Noncontrolling interests, Ending Balance at Dec. 31, 2015 | 1,270,000,000 | |||||||||||
Total Equity, Ending Balance at Dec. 31, 2015 | $ 45,980,000,000 | |||||||||||
Dividends, Cash [Abstract] | ||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 2.01 | |||||||||||
Preferred stock redemption, value | [2] | $ (500,000,000) | ||||||||||
Depositary Shares | [2] | 500,000 | ||||||||||
Ending Balance, (in shares) at Dec. 31, 2016 | 485,000,000 | |||||||||||
Common Stock [Abstract] | ||||||||||||
Net income | $ 3,985,000,000 | 3,903,000,000 | 82,000,000 | |||||||||
Other comprehensive income (loss), net of tax | (395,000,000) | (395,000,000) | ||||||||||
Dividends, Cash [Abstract] | ||||||||||||
Common | (1,061,000,000) | (1,061,000,000) | ||||||||||
Preferred | (209,000,000) | (209,000,000) | ||||||||||
Preferred stock discount accretion | 6,000,000 | (6,000,000) | ||||||||||
Preferred stock issuance – Series S (c) | [3] | 519,000,000 | 519,000,000 | |||||||||
Common stock activity | [4] | 19,000,000 | $ 1,000,000 | 18,000,000 | ||||||||
Treasury stock activity, shares | (19,000,000) | |||||||||||
Treasury stock activity | (1,829,000,000) | (131,000,000) | (1,698,000,000) | |||||||||
Other | (155,000,000) | 42,000,000 | (197,000,000) | |||||||||
Common Stock, Ending Balance at Dec. 31, 2016 | 2,709,000,000 | $ 2,709,000,000 | ||||||||||
Capital surplus - Preferred Stock, Ending Balance at Dec. 31, 2016 | [1] | 3,977,000,000 | ||||||||||
Capital surplus - Common Stock, Ending Balance at Dec. 31, 2016 | 12,674,000,000 | |||||||||||
Retained Earnings, Ending Balance at Dec. 31, 2016 | 31,670,000,000 | 31,670,000,000 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance at Dec. 31, 2016 | (265,000,000) | (265,000,000) | ||||||||||
Treasury Stock, Ending Balance at Dec. 31, 2016 | 5,066,000,000 | (5,066,000,000) | ||||||||||
Noncontrolling interests, Ending Balance at Dec. 31, 2016 | 1,155,000,000 | 1,155,000,000 | ||||||||||
Total Equity, Ending Balance at Dec. 31, 2016 | $ 46,854,000,000 | |||||||||||
Dividends, Cash [Abstract] | ||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 2.12 | |||||||||||
Preferred stock issuance, shares | [3] | 5,250 | ||||||||||
Preferred stock, par value | $ 1 | $ 1 | [3] | |||||||||
Par value less than $.5 million at each date | [5] | $ 500,000 | ||||||||||
Common stock activity, shares | [4] | 500,000 | ||||||||||
Ending Balance, (in shares) at Dec. 31, 2017 | 473,000,000 | |||||||||||
Common Stock [Abstract] | ||||||||||||
Net income | 5,388,000,000 | 5,338,000,000 | 50,000,000 | |||||||||
Other comprehensive income (loss), net of tax | 117,000,000 | 117,000,000 | ||||||||||
Dividends, Cash [Abstract] | ||||||||||||
Common | (1,266,000,000) | (1,266,000,000) | ||||||||||
Preferred | (236,000,000) | (236,000,000) | ||||||||||
Preferred stock discount accretion | 6,000,000 | (6,000,000) | ||||||||||
Redemption of noncontrolling interests | [6] | (1,000,000,000) | (19,000,000) | (981,000,000) | ||||||||
Common stock activity | [4] | 18,000,000 | $ 1,000,000 | 17,000,000 | ||||||||
Treasury stock activity, shares | (12,000,000) | |||||||||||
Treasury stock activity | (2,147,000,000) | (309,000,000) | (1,838,000,000) | |||||||||
Other | (143,000,000) | 2,000,000 | 7,000,000 | (152,000,000) | ||||||||
Common Stock, Ending Balance at Dec. 31, 2017 | 2,710,000,000 | $ 2,710,000,000 | ||||||||||
Capital surplus - Preferred Stock, Ending Balance at Dec. 31, 2017 | [1] | $ 3,985,000,000 | ||||||||||
Capital surplus - Common Stock, Ending Balance at Dec. 31, 2017 | $ 12,389,000,000 | |||||||||||
Retained Earnings, Ending Balance at Dec. 31, 2017 | 35,481,000,000 | $ 35,481,000,000 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance at Dec. 31, 2017 | (148,000,000) | $ (148,000,000) | ||||||||||
Treasury Stock, Ending Balance at Dec. 31, 2017 | 6,904,000,000 | $ (6,904,000,000) | ||||||||||
Noncontrolling interests, Ending Balance at Dec. 31, 2017 | 72,000,000 | $ 72,000,000 | ||||||||||
Total Equity, Ending Balance at Dec. 31, 2017 | $ 47,585,000,000 | |||||||||||
Dividends, Cash [Abstract] | ||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 2.60 | |||||||||||
Preferred stock, par value | $ 1 | |||||||||||
Par value less than $.5 million at each date | [1],[5] | $ 500,000 | ||||||||||
[1] | The par value of our preferred stock outstanding was less than $.5 million at each date and, therefore, is excluded from this presentation. | |||||||||||
[2] | On May 4, 2015, we redeemed all 50,000 shares of our Series K preferred stock, as well as all 500,000 Depositary Shares representing fractional interests in such shares, resulting in net outflow of $500 million. | |||||||||||
[3] | On November 1, 2016, PNC issued 5,250 shares of Series S preferred stock with a $1 par value. | |||||||||||
[4] | Common stock activity totaled less than .5 million shares issued. | |||||||||||
[5] | Par value less than $.5 million at each date. | |||||||||||
[6] | Relates to the redemption of Perpetual Trust Securities in the first quarter of 2017. See Note 15 Equity for additional information. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net income | $ 5,388 | $ 3,985 | $ 4,143 |
Adjustments to reconcile net income to net cash provided (used) by operating activities | |||
Provision for credit losses | 441 | 433 | 255 |
Depreciation and amortization | 1,117 | 1,193 | 1,088 |
Deferred income taxes | (403) | 326 | 404 |
Changes in fair value of mortgage servicing rights | 323 | 179 | 274 |
Gain on sales of Visa Class B common shares | (126) | (169) | |
Undistributed earnings of BlackRock | (727) | (361) | (407) |
Net change in | |||
Trading securities and other short-term investments | 305 | (1,167) | 203 |
Loans held for sale | (1,148) | (935) | 393 |
Other assets | 757 | (644) | 1,568 |
Accrued expenses and other liabilities | (704) | 652 | (1,788) |
Other | 350 | 100 | (439) |
Net cash provided (used) by operating activities | 5,699 | 3,635 | 5,525 |
Sales | |||
Securities available for sale | 5,647 | 3,456 | 6,723 |
Loans | 2,001 | 1,897 | 2,040 |
Repayments/maturities | |||
Securities available for sale | 10,734 | 11,061 | 7,920 |
Securities held to maturity | 2,948 | 3,209 | 2,032 |
Purchases | |||
Securities available for sale | (13,605) | (19,495) | (26,367) |
Securities held to maturity | (5,605) | (4,305) | (4,896) |
Loans | (841) | (1,334) | (748) |
Net change in | |||
Federal funds sold and resale agreements | (245) | 126 | 481 |
Interest-earning deposits with banks | (2,884) | 4,835 | 1,233 |
Loans | (10,483) | (5,940) | (3,972) |
Net cash paid for acquisition | (1,342) | ||
Other | (1,340) | (952) | (706) |
Net cash provided (used) by investing activities | (15,015) | (7,442) | (16,260) |
Net change in | |||
Noninterest-bearing deposits | (264) | 1,212 | 5,765 |
Interest-bearing deposits | 8,255 | 7,367 | 10,812 |
Federal funds purchased and repurchase agreements | (148) | 18 | (1,733) |
Commercial paper | 100 | ||
Other borrowed funds | 459 | 272 | (9) |
Sales/issuances | |||
Federal Home Loan Bank borrowings | 11,000 | 1,000 | 2,250 |
Bank notes and senior debt | 7,062 | 5,601 | 8,173 |
Commercial paper | 1,394 | ||
Other borrowed funds | 427 | 165 | 694 |
Preferred stock | 519 | ||
Common and treasury stock | 132 | 151 | 139 |
Repayments/maturities | |||
Federal Home Loan Bank borrowings | (7,512) | (3,559) | (2,147) |
Bank notes and senior debt | (1,800) | (3,750) | (2,624) |
Subordinated debt | (2,758) | (488) | (524) |
Commercial paper | (14) | (6,219) | |
Other borrowed funds | (318) | (541) | (1,622) |
Preferred stock redemption | (500) | ||
Redemption of noncontrolling interests | (1,000) | ||
Acquisition of treasury stock | (2,447) | (2,062) | (2,152) |
Preferred stock cash dividends paid | (236) | (209) | (219) |
Common stock cash dividends paid | (1,266) | (1,061) | (1,038) |
Net cash provided (used) by financing activities | 9,686 | 4,621 | 10,440 |
Net Increase (Decrease) In Cash And Due From Banks | 370 | 814 | (295) |
Cash and due from banks at beginning of period | 4,879 | 4,065 | 4,360 |
Cash and due from banks at end of period | 5,249 | 4,879 | 4,065 |
Supplemental Disclosures | |||
Interest paid | 1,743 | 1,317 | 1,005 |
Income taxes paid | 72 | 658 | 919 |
Income taxes refunded | 24 | 111 | 286 |
Non-cash Investing and Financing Items | |||
Transfer from loans to loans held for sale, net | 419 | 606 | 285 |
Transfer from loans to foreclosed assets | 215 | 281 | 435 |
Transfer from trading securities to investment securities | $ 192 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Accounting Policies | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS T HE PNC F INANCIAL S ERVICES G ROUP , I NC . B USINESS The PNC Financial Services Group, Inc. (PNC) is one of the largest diversified financial services companies in the United States and is headquartered in Pittsburgh, Pennsylvania. We have businesses engaged in retail banking, including residential mortgage, corporate and institutional banking and asset management, providing many of our products and services nationally. Our primary geographic markets are located in 19 states in the Mid-Atlantic, Midwest and Southeast. We also provide certain products and services internationally. A CCOUNTING P OLICIES Basis of Financial Statement Presentation Our consolidated financial statements include the accounts of the parent company and its subsidiaries, most of which are wholly-owned, certain partnership interests, and variable interest entities. We prepared these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). We have eliminated intercompany accounts and transactions. We have also reclassified certain prior year amounts to conform to the 2017 presentation, which did not have a material impact on our consolidated financial condition or results of operations. We have also considered the impact of subsequent events on these consolidated financial statements. Use of Estimates We prepared these consolidated financial statements using financial information available at the time of preparation, which requires us to make estimates and assumptions that affect the amounts reported. Our most significant estimates pertain to our fair value measurements and allowances for loan and lease losses and unfunded loan commitments and letters of credit. Actual results may differ from the estimates and the differences may be material to the consolidated financial statements. Investment in BlackRock, Inc. We account for our investment in the common stock and Series B Preferred Stock of BlackRock (deemed to be in-substance common stock) under the equity method of accounting. The investment in BlackRock is reflected on our Consolidated Balance Sheet in Equity investments, while our equity in earnings of BlackRock is reported on our Consolidated Income Statement in Asset management noninterest income. We also hold shares of Series C Preferred Stock of BlackRock pursuant to our obligation to partially fund a portion of certain BlackRock long-term incentive plan (LTIP) programs. Since these preferred shares are not deemed to be in-substance common stock, we have elected to account for these preferred shares at fair value and the changes in fair value will offset the impact of marking-to-market the obligation to deliver these shares to BlackRock. Our investment in the BlackRock Series C Preferred Stock is included on our Consolidated Balance Sheet in Other assets. Our obligation to transfer these shares to BlackRock is classified as a derivative not designated as a hedging instrument under GAAP as disclosed in Note 13 Financial Derivatives . Variable Interest Entities A variable interest entity (VIE) is a corporation, partnership, limited liability company, or any other legal structure used to conduct activities or hold assets generally that either: • Does not have equity investors with voting rights that can directly or indirectly make decisions about the entity’s activities through those voting rights or similar rights, or • Has equity investors that do not provide sufficient equity for the entity to finance its activities without additional subordinated financial support. A VIE often holds financial assets, including loans or receivables, real estate or other property. VIEs are assessed for consolidation under ASC 810 –Consolidation when we hold a variable interest in these entities. We consolidate a VIE if we are its primary beneficiary. The primary beneficiary of a VIE is determined to be the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Upon consolidation of a VIE, we recognize all of the VIE’s assets, liabilities and noncontrolling interests on our Consolidated Balance Sheet. On a quarterly basis, we determine whether any changes occurred requiring a reassessment of whether we are the primary beneficiary of an entity. See Note 2 Loan Sale and Servicing Activities and Variable Interest Entities for information about VIEs that we consolidate as well as those that we do not consolidate but in which we hold a significant variable interest. Revenue Recognition We earn interest and noninterest income from various sources, including: • Lending, • Securities portfolio, • Asset management, • Customer deposits, • Loan sales, loan securitizations, and servicing, • Brokerage services, • Sale of loans and securities, • Certain private equity activities, and • Securities, derivatives and foreign exchange activities. We earn fees and commissions from: • Issuing loan commitments, standby letters of credit and financial guarantees, • Selling various insurance products, • Providing treasury management services, • Providing merger and acquisition advisory and related services • Debit and credit card transactions, and • Participating in certain capital markets transactions. Our Asset management noninterest income includes asset management fees, which are generally based on a percentage of the fair value of the assets under management. Additionally, it includes our share of the earnings of BlackRock recognized under the equity method of accounting. Service charges on deposit accounts are recognized when earned. Brokerage fees and gains and losses on the sale of securities and certain derivatives are recognized on a trade-date basis. We record private equity income or loss based on changes in the valuation of the underlying investments or when we dispose of our interest. We recognize gain/(loss) on changes in the fair value of certain financial instruments where we have elected the fair value option. These financial instruments include certain commercial and residential mortgage loans originated for sale, certain residential mortgage portfolio loans, resale agreements and our investment in BlackRock Series C preferred stock. We also recognize gain/(loss) on changes in the fair value of residential and commercial mortgage servicing rights (MSRs). We recognize revenue from servicing residential mortgages, commercial mortgages and other consumer loans as earned based on the specific contractual terms. These revenues are reported on the Consolidated Income Statement in the line items Residential mortgage, Corporate services and Consumer services. We recognize revenue from securities, derivatives and foreign exchange customer-related trading, as well as securities underwriting activities, as these transactions occur or as services are provided. We generally recognize gains from the sale of loans upon receipt of cash. Mortgage revenue recognized is reported net of mortgage repurchase reserves. Cash and Cash Equivalents Cash and due from banks are considered “cash and cash equivalents” for financial reporting purposes. Investments We hold interests in various types of investments. The accounting for these investments is dependent on a number of factors including, but not limited to, items such as: • Ownership interest, • Our plans for the investment, and • The nature of the investment. Debt Securities Debt securities are recorded on a trade-date basis. We classify debt securities as held to maturity and carry them at amortized cost if we have the positive intent and ability to hold the securities to maturity. Debt securities that we purchase for certain risk management activities or customer-related trading activities are carried at fair value and classified as trading securities and are reported in the Other assets line item on our Consolidated Balance Sheet. Realized and unrealized gains and losses on trading securities are included in Other noninterest income. Debt securities not classified as held to maturity or trading are designated as securities available for sale and carried at fair value with unrealized gains and losses, net of income taxes, reflected in Accumulated other comprehensive income (loss). On at least a quarterly basis, we review all debt securities that are in an unrealized loss position for other than temporary impairment (OTTI). An investment security is deemed impaired if the fair value of the investment is less than its amortized cost. Amortized cost includes adjustments (if any) made to the cost basis of an investment for accretion, amortization, previous other-than-temporary impairments and hedging gains and losses. After an investment security is determined to be impaired, we evaluate whether the decline in value is other-than-temporary. Declines in the fair value of available for sale and held to maturity debt securities that are deemed other-than-temporary and are attributable to credit deterioration are recognized in Other noninterest income on our Consolidated Income Statement in the period in which the determination is made. Declines in fair value which are deemed other-than-temporary and attributable to factors other than credit deterioration are recognized in Accumulated other comprehensive income (loss) on our Consolidated Balance Sheet. We include all interest on debt securities, including amortization of premiums and accretion of discounts on investment securities, in net interest income using the constant effective yield method generally calculated over the contractual lives of the securities. Effective yields reflect either the effective interest rate implicit in the security at the date of acquisition or the effective interest rate determined based on improved cash flows subsequent to impairment. We compute gains and losses realized on the sale of available for sale debt securities on a specific security basis. These securities gains/(losses) are included in Other noninterest income on the Consolidated Income Statement. Equity Securities and Partnership Interests We account for equity securities and equity investments other than BlackRock and private equity investments under one of the following methods: • Marketable equity securities are recorded on a trade-date basis and are accounted for based on the securities’ quoted market prices from a national securities exchange. Those purchased with the intention of selling in the near term are classified as trading and included in Other assets on our Consolidated Balance Sheet. Both realized and unrealized gains and losses on trading securities are included in Noninterest income. Marketable equity securities not classified as trading are designated as securities available for sale with unrealized gains and losses, net of income taxes, reflected in Accumulated other comprehensive income (loss). Any unrealized losses that we have determined to be other-than-temporary on securities classified as available for sale are recognized in current period earnings. • For investments in limited partnerships, limited liability companies and other investments that are not required to be consolidated, we use either the equity method or the cost method of accounting. We use the equity method for general and limited partner ownership interests and limited liability companies in which we are considered to have significant influence over the operations of the investee. Under the equity method, we record our equity ownership share of net income or loss of the investee in Noninterest income and any dividends received on equity method investments are recorded as a reduction to the investment balance. When an equity investment experiences an other-than-temporary decline in value, we may be required to record a loss on the investment. We use the cost method for all other investments. Under the cost method, there is no change to the cost basis unless there is an other-than-temporary decline in value or dividends received are considered a return on investment. If the decline is determined to be other-than-temporary, we write down the cost basis of the investment to a new cost basis that represents realizable value. The amount of the write-down is accounted for as a loss included in Noninterest income. Distributions received from the income of an investee on cost method investments are included in Noninterest income. Investments described above are included in Equity investments on our Consolidated Balance Sheet. Private Equity Investments We report private equity investments, which include direct investments in companies, affiliated partnership interests and indirect investments in private equity funds, at estimated fair value. These estimates are based on available information and may not necessarily represent amounts that we will ultimately realize through distribution, sale or liquidation of the investments. Fair values of publicly-traded direct investments are determined using quoted market prices and are subject to various discount factors arising from security level restrictions, when appropriate. The valuation procedures applied to direct investments and indirect investments are detailed in Note 6 Fair Value . We include all private equity investments within Equity investments on our Consolidated Balance Sheet. Changes in fair value of private equity investments are recognized in Noninterest income. We consolidate affiliated partnerships when we have determined that we have control of the partnership or are the primary beneficiary if the entity is a VIE. The portion we do not own is reflected in Noncontrolling interests on our Consolidated Balance Sheet. Loans Loans are classified as held for investment when management has both the intent and ability to hold the loan for the foreseeable future, or until maturity or payoff. Management’s intent and view of the foreseeable future may change based on changes in business strategies, the economic environment, market conditions and the availability of government programs. Measurement of delinquency status is based on the contractual terms of each loan. Loans that are 30 days or more past due in terms of payment are considered delinquent. Except as described below, loans held for investment are stated at the principal amounts outstanding, net of unearned income, unamortized deferred fees and costs on originated loans, and premiums or discounts on purchased loans. Interest on performing loans (excluding interest on purchased impaired loans, which is further discussed below) is accrued based on the principal amount outstanding and recorded in Interest income as earned using the constant effective yield method. Loan origination fees, direct loan origination costs, and loan premiums and discounts are deferred and accreted or amortized into Net interest income using the constant effective yield method, over the contractual life of the loan. In addition to originating loans, we also acquire loans through portfolio purchases or acquisitions of other financial services companies. For certain acquired loans that have experienced a deterioration of credit quality, we follow the guidance contained in ASC 310-30 – Loans and Debt Securities Acquired with Deteriorated Credit Quality. Under this guidance, acquired purchased impaired loans are to be recorded at fair value without the carryover of any existing valuation allowances. When evidence of credit quality deterioration and evidence that it is probable that we will be unable to collect all contractual amounts due exist, we consider the loans to be purchased credit impaired and we estimate the amount and timing of undiscounted expected cash flows at acquisition for each loan either individually or on a pool basis. The excess of undiscounted cash flows expected to be collected on a purchased impaired loan (or pool of loans) over its carrying value represents the accretable yield which is recognized into interest income over the remaining life of the loan (or pool of loans) using the constant effective yield method. Subsequent decreases in expected cash flows that are attributable, at least in part, to credit quality are recognized as impairments through a charge to the provision for credit losses resulting in an increase in the Allowance for Loan and Lease Losses (ALLL). Subsequent increases in expected cash flows are recognized as a provision recapture of previously recorded ALLL or prospectively through an adjustment of the loan’s or pool’s yield over its remaining life. Loans Held for Sale We designate loans as held for sale when we have the intent to sell them. We transfer loans to the Loans held for sale category at the lower of cost or estimated fair value less cost to sell. At the time of transfer, write-downs on the loans are recorded as charge-offs. We establish a new cost basis upon transfer. Any subsequent lower-of-cost-or-market adjustment is determined on an individual loan basis and is recognized as a valuation allowance with any charges included in Other noninterest income. We have elected to account for certain commercial and residential mortgage loans held for sale at fair value. The changes in the fair value of the commercial mortgage loans are measured and recorded in Other noninterest income while the residential mortgage loans are measured and recorded in Residential mortgage noninterest income each period. See Note 6 Fair Value for additional information. Interest income with respect to loans held for sale is accrued based on the principal amount outstanding and the loan’s contractual interest rate. In certain circumstances, loans designated as held for sale may be transferred to held for investment based on a change in strategy. We transfer these loans at the lower of cost or estimated fair value; however, any loans originated or purchased for held for sale and designated at fair value remain at fair value for the life of the loan. Leases We provide financing for various types of equipment, including aircraft, energy and power systems, and vehicles through a variety of lease arrangements. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased equipment, less unearned income. Leveraged leases, a form of financing lease, are carried net of nonrecourse debt. We recognize income over the term of the lease using the constant effective yield method. Lease residual values are reviewed for impairment at least annually. Gains or losses on the sale of leased assets are included in Other noninterest income while valuation adjustments on lease residuals are included in Other noninterest expense. Loan Sales, Loan Securitizations and Retained Interests We recognize the sale of loans or other financial assets when the transferred assets are legally isolated from our creditors and the appropriate accounting criteria are met. We have sold mortgage and other loans through securitization transactions. In a securitization, financial assets are transferred into trusts or to special purpose entities (SPEs) in transactions to effectively legally isolate the assets from us. In a securitization, the trust or SPE issues beneficial interests in the form of senior and subordinated securities backed or collateralized by the assets sold to the trust. The senior classes of the asset-backed securities typically receive investment grade credit ratings at the time of issuance. These ratings are generally achieved through the creation of lower-rated subordinated classes of asset-backed securities, as well as subordinated or residual interests. In certain cases, we may retain a portion or all of the securities issued, interest-only strips, one or more subordinated tranches, servicing rights and, in some cases, cash reserve accounts. Securitized loans are removed from the balance sheet and a net gain or loss is recognized in Noninterest income at the time of initial sale. Gains or losses recognized on the sale of the loans depend on the fair value of the loans sold and the retained interests at the date of sale. We generally estimate the fair value of the retained interests based on the present value of future expected cash flows using assumptions as to discount rates, interest rates, prepayment speeds, credit losses and servicing costs, if applicable. With the exception of loan sales to certain U.S. government-chartered entities, our loan sales and securitizations are generally structured without recourse to us except for representations and warranties and with no restrictions on the retained interests. We originate, sell and service commercial mortgage loans under the Federal National Mortgage Association (FNMA) Delegated Underwriting and Servicing (DUS) program. Under the provisions of the DUS program, we participate in a loss-sharing arrangement with FNMA. When we are obligated for loss-sharing or recourse, our policy is to record such liabilities initially at fair value and subsequently reserve for estimated losses in accordance with guidance contained in applicable GAAP. Nonperforming Loans and Leases The matrix below summarizes our policies for classifying certain loans as nonperforming loans and/or discontinuing the accrual of loan interest income. Commercial loans Loans Classified as Nonperforming and Accounted for as Nonaccrual • Loans accounted for at amortized cost where: – The loan is 90 days or more past due. – The loan is rated substandard or worse due to the determination that full collection of principal and interest is not probable as demonstrated by the following conditions: • The collection of principal or interest is 90 days or more past due; • Reasonable doubt exists as to the certainty of the borrower’s future debt service ability, according to the terms of the credit arrangement, regardless of whether 90 days have passed or not; • The borrower has filed or will likely file for bankruptcy; • The bank advances additional funds to cover principal or interest; • We are in the process of liquidating a commercial borrower; or • We are pursuing remedies under a guarantee. Loans Excluded from Nonperforming Classification but Accounted for as Nonaccrual • Loans accounted for under the fair value option and full collection of principal and interest is not probable. • Loans accounted for at the lower of cost or market less costs to sell (held for sale) and full collection of principal and interest is not probable. Loans Excluded from Nonperforming Classification and Nonaccrual Accounting • Loans that are well secured and in the process of collection. Consumer loans Loans Classified as Nonperforming and Accounted for as Nonaccrual • Loans accounted for at amortized cost where full collection of contractual principal and interest is not deemed probable as demonstrated in the policies below: – The loan is 90 days past due for home equity and installment loans, and 180 days past due for well secured residential real estate loans; – The loan has been modified and classified as a troubled debt restructuring (TDR); – Notification of bankruptcy has been received within the last 60 days; – The bank holds a subordinate lien position in the loan and the first lien mortgage loan is seriously stressed (i.e., 90 days or more past due); – Other loans within the same borrower relationship have been placed on nonaccrual or charge-offs have been taken on them; – The bank has repossessed non-real estate collateral securing the loan; or – The bank has charged-off the loan to the value of the collateral. Loans Excluded from Nonperforming Classification but Accounted for as Nonaccrual • Loans accounted for under the fair value option and full collection of principal and interest is not probable. • Loans accounted for at the lower of cost or market less costs to sell (held for sale) and full collection of principal and interest is not probable. Loans Excluded from Nonperforming Classification and Nonaccrual Accounting • Purchased impaired loans because interest income is accreted through the accounting model. • Certain government insured loans where substantially all principal and interest is insured. • Residential real estate loans that are well secured and in the process of collection. • Consumer loans and lines of credit, not secured by residential real estate or automobiles, as permitted by regulatory guidance. See Note 3 Asset Quality in this Report for additional detail on nonperforming assets and asset quality indicators for commercial and consumer loans. Commercial Loans We generally charge off Commercial Lending (Commercial, Commercial Real Estate, and Equipment Lease Financing) nonperforming loans when we determine that a specific loan, or portion thereof, is uncollectible. This determination is based on the specific facts and circumstances of the individual loans. In making this determination, we consider the viability of the business or project as a going concern, the past due status when the asset is not well-secured, the expected cash flows to repay the loan, the value of the collateral, and the ability and willingness of any guarantors to perform. Additionally, in general, for smaller commercial loans of $1 million or less, a partial or full charge-off occurs at 120 days past due for term loans and 180 days past due for revolvers. Certain small business credit card balances that are placed on nonaccrual status when they become 90 days or more past due are charged-off at 180 days past due. Consumer Loans Home equity installment loans, home equity lines of credit, and residential real estate loans that are not well-secured and in the process of collection are charged-off at no later than 180 days past due. At that time, the basis in the loan is reduced to the fair value of the collateral less costs to sell. In addition to this policy, the bank recognizes a charge-off on a secured consumer loan when: • The bank holds a subordinate lien position in the loan and a foreclosure notice has been received on the first lien loan; • The bank holds a subordinate lien position in the loan which is 30 days or more past due with a combined loan to value ratio of greater than or equal to 110% and the first lien loan is seriously stressed ( i.e ., 90 days or more past due); • The loan is modified or otherwise restructured in a manner that results in the loan becoming collateral dependent; • Notification of bankruptcy has been received within the last 60 days; • The borrower has been discharged from personal liability through Chapter 7 bankruptcy and has not formally reaffirmed his or her loan obligation to us; or • The collateral securing the loan has been repossessed and the value of the collateral is less than the recorded investment of the loan outstanding. For loans that continue to meet any of the above policies, collateral values are updated annually and subsequent declines in collateral values are charged-off resulting in incremental provision for credit loss. Most consumer loans and lines of credit, not secured by residential real estate, are charged off after 120-180 days past due. Accounting for Nonperforming Assets and Leases and Other Nonaccrual Loans For accrual loans, interest income is accrued on a monthly basis and certain fees and costs are deferred upon origination and recognized in income over the term of the loan utilizing an effective yield method. For nonaccrual loans, interest income accrual and deferred fee/cost recognition is discontinued. Additionally, the current year accrued and uncollected interest is reversed through Net interest income and prior year accrued and uncollected interest is charged-off. Nonaccrual loans may also be charged-off to reduce the basis to the fair value of collateral less costs to sell. If payment is received on a nonaccrual loan, generally the payment is first applied to the recorded investment; payments are then applied to recover any charged-off amounts related to the loan. Finally, if both recorded investment and any charge-offs have been recovered, then the payment will be recorded as fee and interest income. For certain consumer loans, the receipt of interest payments is recognized as interest income on a cash basis. Cash basis income recognition is applied if a loan’s recorded investment is deemed fully collectible and the loan has performed for at least six months. For TDRs, payments are applied based upon their contractual terms unless the related loan is deemed non-performing. TDRs are generally included in nonperforming and nonaccrual loans. However, after a reasonable period of time in which the loan performs under restructured terms and meets other performance indicators, it is returned to performing/accruing status. This return to performing/accruing status demonstrates that the bank expects to collect all of the loan’s remaining contractual principal and interest. TDRs resulting from 1) borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us and 2) borrowers that are not currently obligated to make both principal and interest payments under the restructured terms are not returned to accrual status. Other nonaccrual loans are generally not returned to accrual status until the borrower has performed in accordance with the contractual terms and other performance indicators for at least six months, the period of time which was determined to demonstrate the expected collection of the loan’s remaining contractual principal and interest. When a nonperforming loan is returned to accrual status, it is then considered a performing loan. See Note 3 Asset Quality and Note 4 Allowance for Loan and Lease Losses in this Report for additional TDR information. Foreclosed assets consist of any asset seized or property acquired through a foreclosure proceeding or acceptance of a deed-in-lieu of foreclosure. Other real estate owned comprises principally commercial and residential real estate properties obtained in partial or total satisfaction of loan obligations. After obtaining a foreclosure judgment, or in some jurisdictions the initiation of proceedings under a power of sale in the loan instruments, the property will be sold. When we are awarded title or completion of deed-in-lieu of foreclosure, we transfer the loan to foreclosed assets included in Other assets on our Consolidated Balance Sheet. Property obtained in satisfaction of a loan is initially recorded at estimated fair value less cost to sell. Based upon the estimated fair value less cost to sell, the recorded investment of the loan is adjusted and, typically, a charge-off/recovery is recognized to the ALLL. We estimate fair values primarily based on appraisals, or sales agreements with third parties. Subsequently, foreclosed assets are valued at the lower of the amount recorded at acquisition date or estimated fair value less cost to sell. Valuation adjustments on these assets and gains or losses realized from disposition of such property are reflected in Other noninterest expense. For certain mortgage loans that have a government guarantee, we establish a separate other receivable upon foreclosure. The receivable is measured based on the loan balance (inclusive of principal and interest) that is expected to be recovered from the guarantor. Allowance for Loan and Lease Losses We maintain the ALLL at a level that we believe to be appropriate to absorb estimated probable credit losses incurred in the loan and lease portfolios as of the balance sheet date. Our determination of the allowance is based on periodic evaluations of these loan and lease portfolios and other relevant factors. This critical estimate includes significant use of our own historical data and complex methods to interpret this data. These evaluations are inherently subjective, as they require material estimates and may be susceptible to significant change, and include, among others: • Probability of default (PD), • Loss given default (LGD), • Outstanding balance of the loan, • Movement through delinquency stages, • Amounts and timing of expected future cash flows, • Value of collateral, which may be obtained from third parties, and • Qualitative factors, such as changes in current economic conditions, that may not be reflected in modeled results. For all loans, except purchased impaired loans, the ALLL is the sum of three components: (i) asset specific/individual impaired reserves, (ii) quantitative (formulaic or pooled) reserves and (iii) qualitative (judgmental) |
Loan Sale and Servicing Activit
Loan Sale and Servicing Activities and Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Loan Sale and Servicing Activities and Variable Interest Entities [Abstract] | |
Loan Sale and Servicing Activities and Variable Interest Entities | L OAN S ALE AND S ERVICING A CTIVITIES AND V ARIABLE I NTEREST E NTITIES Loan Sale and Servicing Activities We have transferred residential and commercial mortgage loans in securitization or sales transactions in which we have continuing involvement. These transfers have occurred through Agency securitization, Non-agency securitization, and loan sale transactions. Agency securitizations consist of securitization transactions with FNMA, Federal Home Loan Mortgage Corporation (FHLMC) and Government National Mortgage Association (GNMA) (collectively the Agencies). FNMA and FHLMC generally securitize our transferred loans into mortgage-backed securities for sale into the secondary market through SPEs that they sponsor. We, as an authorized GNMA issuer/servicer, pool Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) insured loans into mortgage-backed securities for sale into the secondary market. In Non-agency securitizations, we have transferred loans into securitization SPEs. In other instances, third-party investors have also purchased our loans in loan sale transactions and in certain instances have subsequently sold these loans into securitization SPEs. Securitization SPEs utilized in the Agency and Non-agency securitization transactions are variable interest entities (VIEs). Our continuing involvement in the FNMA, FHLMC, and GNMA securitizations, Non-agency securitizations, and loan sale transactions generally consists of servicing, repurchasing previously transferred loans under certain conditions and loss share arrangements, and, in limited circumstances, holding of mortgage-backed securities issued by the securitization SPEs. Depending on the transaction, we may act as the master, primary, and/or special servicer to the securitization SPEs or third-party investors. Servicing responsibilities typically consist of collecting and remitting monthly borrower principal and interest payments, maintaining escrow deposits, performing loss mitigation and foreclosure activities, and, in certain instances, funding of servicing advances. Servicing advances, which are generally reimbursable, are made for principal and interest and collateral protection and are carried in Other assets at cost. We earn servicing and other ancillary fees for our role as servicer and, depending on the contractual terms of the servicing arrangement, we can be terminated as servicer with or without cause. At the consummation date of each type of loan transfer where we retain the servicing, we recognize a servicing right at fair value. See Note 6 Fair Value and Note 7 Goodwill and Mortgage Servicing Rights for further discussion of our servicing rights. Certain loans transferred to the Agencies contain removal of account provisions (ROAPs). Under these ROAPs, we hold an option to repurchase at par individual delinquent loans that meet certain criteria. In other limited cases, GNMA has granted us the right to repurchase current loans when we intend to modify the borrower’s interest rate under established guidelines. When we have the unilateral ability to repurchase a loan, effective control over the loan has been regained and we recognize an asset (in either Loans or Loans held for sale) and a corresponding liability (in Other borrowed funds) on the balance sheet regardless of our intent to repurchase the loan. The Agency and Non-agency mortgage-backed securities issued by the securitization SPEs that are purchased and held on our balance sheet are typically purchased in the secondary market. We do not retain any credit risk on our Agency mortgage-backed security positions as FNMA, FHLMC, and the U.S. Government (for GNMA) guarantee losses of principal and interest. We also have involvement with certain Agency and Non-agency commercial securitization SPEs where we have not transferred commercial mortgage loans. These SPEs were sponsored by independent third-parties and the loans held by these entities were purchased exclusively from other third-parties. Generally, our involvement with these SPEs is as servicer with servicing activities consistent with those described above. We recognize a liability for our loss exposure associated with contractual obligations to repurchase previously transferred loans due to possible breaches of representations and warranties and also for loss sharing arrangements (recourse obligations) with the Agencies. Other than providing temporary liquidity under servicing advances and our loss exposure associated with our repurchase and recourse obligations, we have not provided nor are we required to provide any type of credit support, guarantees, or commitments to the securitization SPEs or third-party investors in these transactions. The following table provides cash flows associated with our loan sale and servicing activities: Table 36 : Cash Flows Associated with Loan Sale and Servicing Activities In millions Residential Commercial CASH FLOWS - Year ended Sales of loans (b) $ 5,759 $ 5,276 Repurchases of previously transferred loans (c) $ 464 Servicing fees (d) $ 374 $ 126 Servicing advances recovered/(funded), net $ 101 $ 48 Cash flows on mortgage-backed securities $ 1,527 $ 206 CASH FLOWS - Year ended Sales of loans (b) $ 6,913 $ 3,810 Repurchases of previously transferred loans (c) $ 534 Servicing fees (d) $ 374 $ 125 Servicing advances recovered/(funded), net $ 109 $ (14 ) Cash flows on mortgage-backed securities $ 1,727 $ 283 (a) Represents cash flow information associated with both commercial mortgage loan transfer and servicing activities. (b) Gains/losses recognized on sales of loans were insignificant for the periods presented. (c) Includes residential mortgage government insured or guaranteed loans eligible for repurchase through the exercise of our removal of account provision option, and loans repurchased due to alleged breaches of origination covenants or representations and warranties made to purchasers. (d) Includes contractually specified servicing fees, late charges and ancillary fees. (e) Represents cash flows on securities we hold issued by a securitization SPE in which we transferred to and/or services loans. The carrying values of such securities held were $8.8 billion in residential mortgage-backed securities and $.6 billion in commercial mortgage-backed securities at December 31, 2017 and $6.9 billion in residential mortgage-backed securities and $.9 billion in commercial mortgage-backed securities at December 31, 2016 . Table 37 presents information about the principal balances of transferred loans that we service and are not recorded on our Consolidated Balance Sheet. We would only experience a loss on these transferred loans if we were required to repurchase a loan due to a breach in representations and warranties or a loss sharing arrangement associated with our continuing involvement with these loans. The estimate of losses related to breaches in representations and warranties was insignificant at December 31, 2017 . Table 37 : Principal Balance, Delinquent Loans and Net Charge-offs Related to Serviced Loans For Others In millions Residential Commercial December 31, 2017 Total principal balance $ 58,320 $ 49,116 Delinquent loans (b) $ 899 $ 355 December 31, 2016 Total principal balance $ 66,081 $ 45,855 Delinquent loans (b) $ 1,422 $ 941 Year ended December 31, 2017 Net charge-offs (c) $ 78 $ 965 Year ended December 31, 2016 Net charge-offs (c) $ 97 $ 1,439 (a) Represents information at the securitization level in which we have sold loans and we are the servicer for the securitization. (b) Serviced delinquent loans are 90 days or more past due or are in process of foreclosure. (c) Net charge-offs for Residential mortgages represent credit losses less recoveries distributed and as reported to investors during the period. Net charge-offs for Commercial mortgages represent credit losses less recoveries distributed and as reported by the trustee for commercial mortgage backed securitizations. Realized losses for Agency securitizations are not reflected as we do not manage the underlying real estate upon foreclosure and, as such, do not have access to loss information. Variable Interest Entities (VIEs) We are involved with various entities in the normal course of business that are deemed to be VIEs. We assess VIEs for consolidation based upon the accounting policies described in Note 1 Accounting Policies . Our consolidated VIEs were insignificant at both December 31, 2017 and December 31, 2016 . We have not provided additional financial support to these entities which we are not contractually required to provide. The following table provides a summary of non-consolidated VIEs with which we have significant continuing involvement but are not the primary beneficiary. We do not consider our continuing involvement to be significant when it relates to a VIE where we only invest in securities issued by the VIE and were not involved in the design of the VIE or where no transfers have occurred between us and the VIE. We have excluded certain transactions with non-consolidated VIEs from the balances presented in Table 38 where we have determined that our continuing involvement is not significant. In addition, where we only have lending arrangements in the normal course of business with entities that could be VIEs, we have excluded these transactions with non-consolidated entities from the balances presented in Table 38 . These loans are included as part of the asset quality disclosures that we make in Note 3 Asset Quality . Table 38 : Non-Consolidated VIEs In millions PNC Risk of Loss (a) Carrying Value of Assets Carrying Value of Liabilities December 31, 2017 Mortgage-Backed Securitizations (b) $ 9,738 $ 9,738 (c) Tax Credit Investments and Other 3,069 3,001 (d) $ 858 (e) Total $ 12,807 $ 12,739 $ 858 December 31, 2016 Mortgage-Backed Securitizations (b) $ 8,003 $ 8,003 (c) Tax Credit Investments and Other 3,083 3,043 (d) $ 823 (e) Total $ 11,086 $ 11,046 $ 823 (a) This represents loans, investments and other assets related to non-consolidated VIEs, net of collateral (if applicable). (b) Amounts reflect involvement with securitization SPEs where we transferred to and/or services loans for an SPE and we hold securities issued by that SPE. Values disclosed in the PNC Risk of Loss column represent our maximum exposure to loss for those securities’ holdings. (c) Included in Investment securities, Mortgage servicing rights and Other assets on our Consolidated Balance Sheet. (d) Included in Investment securities, Loans, Equity investments and Other assets on our Consolidated Balance Sheet. (e) Included in Deposits and Other liabilities on our Consolidated Balance Sheet. Mortgage-Backed Securitizations In connection with each Agency and Non-agency residential and commercial mortgage-backed securitization discussed above, we evaluate each SPE utilized in these transactions for consolidation. In performing these assessments, we evaluate our level of continuing involvement in these transactions as the nature of our involvement ultimately determines whether or not we hold a variable interest and/or are the primary beneficiary of the SPE. Factors we consider in our consolidation assessment include the significance of (i) our role as servicer, (ii) our holdings of mortgage-backed securities issued by the securitization SPE, and (iii) the rights of third-party variable interest holders. The first step in our assessment is to determine whether we hold a variable interest in the securitization SPE. We hold variable interests in Agency and Non-agency securitization SPEs through our holding of residential and commercial mortgage-backed securities issued by the SPEs and/or our recourse obligations. Each SPE in which we hold a variable interest is evaluated to determine whether we are the primary beneficiary of the entity. For Agency securitization transactions, our contractual role as servicer does not give us the power to direct the activities that most significantly affect the economic performance of the SPEs. Thus, we are not the primary beneficiary of these entities. For Non-agency securitization transactions, we would be the primary beneficiary to the extent our servicing activities give us the power to direct the activities that most significantly affect the economic performance of the SPE and we hold a more than insignificant variable interest in the entity. Details about the Agency and Non-agency securitization SPEs where we hold a variable interest and are not the primary beneficiary are included in Table 38 . Our maximum exposure to loss as a result of our involvement with these SPEs is the carrying value of the mortgage-backed securities, servicing assets, servicing advances, and our liabilities associated with our recourse obligations. Creditors of the securitization SPEs have no recourse to our assets or general credit. Tax Credit Investments and Other For tax credit investments in which we do not have the right to make decisions that will most significantly impact the economic performance of the entity, we are not the primary beneficiary and thus do not consolidate the entity. These investments are disclosed in Table 38 . The table also reflects our maximum exposure to loss exclusive of any potential tax credit recapture. Our maximum exposure to loss is equal to our legally binding equity commitments adjusted for recorded impairment, partnership results, or amortization for qualifying low income housing tax credit investments when applicable. For all legally binding unfunded equity commitments, we increase our recognized investment and recognize a liability. As of December 31, 2017 , we had a liability for unfunded commitments of $.5 billion related to investments in qualified affordable housing projects which is reflected in Other liabilities on our Consolidated Balance Sheet. Table 38 also includes our involvement in lease financing transactions with limited liability companies (LLCs) engaged in solar power generation that to a large extent provided returns in the form of tax credits. The outstanding financings and operating lease assets are reflected as Loans and Other assets, respectively, on our Consolidated Balance Sheet, whereas related liabilities are reported in Deposits and Other liabilities. We make certain equity investments in various tax credit limited partnerships or LLCs. The purpose of these investments is to achieve a satisfactory return on capital and to assist us in achieving goals associated with the Community Reinvestment Act. During 2017 and 2016 , we recognized $.2 billion of amortization, $.2 billion of tax credits, and $.1 billion of other tax benefits associated with qualified investments in low income housing tax credits within Income taxes. |
Asset Quality
Asset Quality | 12 Months Ended |
Dec. 31, 2017 | |
Asset Quality [Abstract] | |
Asset Quality | A SSET Q UALITY We closely monitor economic conditions and loan performance trends to manage and evaluate our exposure to credit risk. Trends in delinquency rates may be a key indicator, among other considerations, of credit risk within the loan portfolios. The measurement of delinquency status is based on the contractual terms of each loan. Loans that are 30 days or more past due in terms of payment are considered delinquent. Loan delinquencies exclude loans held for sale, purchased impaired loans, nonperforming loans and loans accounted for under the fair value option which are on nonaccrual status, but include government insured or guaranteed loans and accruing loans accounted for under the fair value option. Nonperforming assets include nonperforming loans and leases, OREO, foreclosed and other assets. Nonperforming loans are those loans accounted for at amortized cost whose credit quality has deteriorated to the extent that full collection of contractual principal and interest is not probable. Interest income is not recognized on these loans. Loans accounted for under the fair value option are reported as performing loans as these loans are accounted for at fair value. However, when nonaccrual criteria is met, interest income is not recognized on these loans. Additionally, certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest are not reported as nonperforming loans and continue to accrue interest. Purchased impaired loans are excluded from nonperforming loans as we are currently accreting interest income over the expected life of the loans. See Note 1 Accounting Policies for additional information on our loan related policies. The following tables display the delinquency status of our loans and our nonperforming assets at December 31, 2017 and December 31, 2016 , respectively. Table 39 : Analysis of Loan Portfolio (a) Accruing Dollars in millions Current or Less Than 30 Days Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days Or More Past Due Total Past Due (b) Nonperforming Loans Fair Value Option Nonaccrual Loans (c) Purchased Impaired Loans Total Loans (d) December 31, 2017 Commercial Lending Commercial $ 109,989 $ 45 $ 25 $ 39 $ 109 $ 429 $ 110,527 Commercial real estate 28,826 27 2 29 123 28,978 Equipment lease 7,914 17 1 18 2 7,934 Total commercial lending 146,729 89 28 39 156 554 147,439 Consumer Lending Home equity 26,561 78 26 $ 104 818 $ 881 28,364 Residential real estate 14,389 151 74 486 711 (b) 400 $ 197 1,515 17,212 Credit card 5,579 43 26 45 114 6 5,699 Other consumer Automobile 12,697 79 20 8 107 76 12,880 Education and other 8,525 105 64 159 328 (b) 11 8,864 Total consumer lending 67,751 456 210 698 1,364 1,311 197 2,396 73,019 Total $ 214,480 $ 545 $ 238 $ 737 $ 1,520 $ 1,865 $ 197 $ 2,396 $ 220,458 Percentage of total loans 97.29 % .25 % .11 % .33 % .69 % .85 % .09 % 1.08 % 100.00 % December 31, 2016 Commercial Lending Commercial $ 100,710 $ 81 $ 20 $ 39 $ 140 $ 496 $ 18 $ 101,364 Commercial real estate 28,769 5 2 7 143 91 29,010 Equipment lease 7,535 29 1 30 16 7,581 Total commercial lending 137,014 115 23 39 177 655 109 137,955 Consumer Lending Home equity 27,820 64 30 94 914 1,121 29,949 Residential real estate 12,425 159 68 500 727 (b) 501 $ 219 1,726 15,598 Credit card 5,187 33 21 37 91 4 5,282 Other consumer Automobile 12,257 51 12 5 68 55 12,380 Education and other 9,235 140 78 201 419 (b) 15 9,669 Total consumer lending 66,924 447 209 743 1,399 1,489 219 2,847 72,878 Total $ 203,938 $ 562 $ 232 $ 782 $ 1,576 $ 2,144 $ 219 $ 2,956 $ 210,833 Percentage of total loans 96.73 % .27 % .11 % .37 % .75 % 1.02 % .10 % 1.40 % 100.00 % (a) Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment in a loan includes the unpaid principal balance plus net accounting adjustments, less any charge-offs. Recorded investment does not include any associated valuation allowance. (b) Past due loan amounts exclude purchased impaired loans, even if contractually past due (or if we do not expect to receive payment in full based on the original contractual terms), as we are currently accreting interest income over the expected life of the loans. Past due loan amounts include government insured or guaranteed Residential real estate mortgages totaling $.6 billion at both December 31, 2017 and December 31, 2016 , and Education and other consumer loans totaling $.3 billion and $.4 billion at December 31, 2017 and December 31, 2016 , respectively. (c) Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policies. Given that these loans are not accounted for at amortized cost, these loans have been excluded from the nonperforming loan population. (d) Net of unearned income, net deferred loan fees, unamortized discounts and premiums, and purchase discounts and premiums totaling $1.2 billion and $1.3 billion at December 31, 2017 and December 31, 2016 , respectively. In the normal course of business, we originate or purchase loan products with contractual characteristics that, when concentrated, may increase our exposure as a holder of those loan products. Possible product features that may create a concentration of credit risk would include a high original or updated LTV ratio, terms that may expose the borrower to future increases in repayments above increases in market interest rates, and interest-only loans, among others. We originate interest-only loans to commercial borrowers. Such credit arrangements are usually designed to match borrower cash flow expectations ( e.g. , working capital lines, revolvers). These products are standard in the financial services industry and product features are considered during the underwriting process to mitigate the increased risk that the interest-only feature may result in borrowers not being able to make interest and principal payments when due. We do not believe that these product features create a concentration of credit risk. At December 31, 2017 , we pledged $18.7 billion of commercial loans to the Federal Reserve Bank (FRB) and $62.8 billion of residential real estate and other loans to the Federal Home Loan Bank (FHLB) as collateral for the ability to borrow, if necessary. The comparable amounts at December 31, 2016 were $22.0 billion and $60.8 billion , respectively. Table 40 : Nonperforming Assets Dollars in millions December 31 December 31 Nonperforming loans Total commercial lending $ 554 $ 655 Total consumer lending (a) 1,311 1,489 Total nonperforming loans 1,865 2,144 OREO, foreclosed and other assets 170 230 Total nonperforming assets $ 2,035 $ 2,374 Nonperforming loans to total loans .85 % 1.02 % Nonperforming assets to total loans, OREO, foreclosed and other assets .92 % 1.12 % Nonperforming assets to total assets .53 % .65 % Interest on nonperforming loans (b) Computed on original terms $ 114 $ 111 Recognized prior to nonperforming status $ 19 $ 21 (a) Excludes most consumer loans and lines of credit not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming status. (b) Amounts are for the year ended. Nonperforming loans also include certain loans whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties. In accordance with applicable accounting guidance, these loans are considered TDRs. See Note 1 Accounting Policies and the TDR section of this Note 3 . Total nonperforming loans in Table 40 include TDRs of $1.0 billion at December 31, 2017 and $1.1 billion at December 31, 2016 . TDRs that are performing, including consumer credit card TDR loans, totaled $1.1 billion at both December 31, 2017 and December 31, 2016 , and are excluded from nonperforming loans. Nonperforming TDRs are returned to accrual status and classified as performing after demonstrating a period of at least six months of consecutive performance under the restructured terms. Loans where borrowers have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us and loans to borrowers not currently obligated to make both principal and interest payments under the restructured terms are not returned to accrual status. See the TDRs section of this Note 3 for more information on TDRs. Additional Asset Quality Indicators We have two overall portfolio segments – Commercial Lending and Consumer Lending. Each of these two segments comprises multiple loan classes. Classes are characterized by similarities in initial measurement, risk attributes and the manner in which we monitor and assess credit risk. The Commercial Lending segment is composed of the commercial, commercial real estate and equipment lease financing loan classes. The Consumer Lending segment is composed of the home equity, residential real estate, credit card and other consumer loan classes. Commercial Lending Asset Classes Commercial Loan Class For commercial loans, we monitor the performance of the borrower in a disciplined and regular manner based upon the level of credit risk inherent in the loan. To evaluate the level of credit risk, we assign an internal risk rating reflecting the borrower’s PD and LGD. This two-dimensional credit risk rating methodology provides granularity in the risk monitoring process on an ongoing basis. These ratings are reviewed and updated, generally at least once per year. Additionally, no less frequently than on an annual basis, we review PD rates related to each rating grade based upon internal historical data. These rates are updated as needed and augmented by market data as deemed necessary. For small balance homogeneous pools of commercial loans, mortgages and leases, we apply statistical modeling to assist in determining the probability of default within these pools. Further, on a periodic basis, we update our LGD estimates associated with each rating grade based upon historical data. The combination of the PD and LGD ratings assigned to commercial loans, capturing both the combination of expectations of default and loss severity in event of default, reflects the relative estimated likelihood of loss at the reporting date. In general, loans with better PD and LGD tend to have a lower likelihood of loss compared to loans with worse PD and LGD. The loss amount also considers an estimate of exposure at date of default, which we also periodically update based upon historical data. Based upon the amount of the lending arrangement and our risk rating assessment, we follow a formal schedule of written periodic review. Quarterly, we conduct formal reviews of a market’s or business unit’s entire loan portfolio, focusing on those loans which we perceive to be of higher risk, based upon PDs and LGDs, or loans for which credit quality is weakening. If circumstances warrant, it is our practice to review any customer obligation and its level of credit risk more frequently. We attempt to proactively manage our loans by using various procedures that are customized to the risk of a given loan, including ongoing outreach, contact, and assessment of obligor financial conditions, collateral inspection and appraisal. Commercial Real Estate Loan Class We manage credit risk associated with our commercial real estate projects and commercial mortgages similar to commercial loans by analyzing PD and LGD. Additionally, risks associated with commercial real estate projects and commercial mortgage activities tend to be correlated to the loan structure and collateral location, project progress and business environment. As a result, these attributes are also monitored and utilized in assessing credit risk. As with the commercial class, a formal schedule of periodic review is also performed to assess market/geographic risk and business unit/industry risk. Often as a result of these overviews, more in-depth reviews and increased scrutiny are placed on areas of higher risk, including adverse changes in risk ratings, deteriorating operating trends, and/or areas that concern management. These reviews are designed to assess risk and take actions to mitigate our exposure to such risks. Equipment Lease Financing Loan Class We manage credit risk associated with our equipment lease financing loan class similar to commercial loans by analyzing PD and LGD. Based upon the dollar amount of the lease and the level of credit risk, we follow a formal schedule of periodic review. Generally, this occurs quarterly, although we have established practices to review such credit risk more frequently if circumstances warrant. Our review process entails analysis of the following factors: equipment value/residual value, exposure levels, jurisdiction risk, industry risk, guarantor requirements, and regulatory compliance as applicable. Table 41 : Commercial Lending Asset Quality Indicators (a) Criticized Commercial Loans In millions Pass Rated Special Mention (b) Substandard (c) Doubtful (d) Total Loans December 31, 2017 Commercial $ 105,280 $ 1,858 $ 3,331 $ 58 $ 110,527 Commercial real estate 28,380 148 435 15 28,978 Equipment lease financing 7,754 77 102 1 7,934 Total commercial lending $ 141,414 $ 2,083 $ 3,868 $ 74 $ 147,439 December 31, 2016 Commercial $ 96,231 $ 1,612 $ 3,449 $ 72 $ 101,364 Commercial real estate 28,561 98 327 24 29,010 Equipment lease financing 7,395 89 91 6 7,581 Total commercial lending $ 132,187 $ 1,799 $ 3,867 $ 102 $ 137,955 (a) Loans are classified as “Pass”, “Special Mention”, “Substandard” and “Doubtful” based on the Regulatory Classification definitions. We use PDs and LGDs to rate commercial loans. (b) Special Mention rated loans have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects at some future date. These loans do not expose us to sufficient risk to warrant a more adverse classification at the reporting date. (c) Substandard rated loans have a well-defined weakness or weaknesses that jeopardize the collection or liquidation of debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. (d) Doubtful rated loans possess all the inherent weaknesses of a Substandard loan with the additional characteristics that the weakness makes collection or liquidation in full improbable due to existing facts, conditions, and values. Consumer Lending Asset Classes Home Equity and Residential Real Estate Loan Classes We use several credit quality indicators, including delinquency information, nonperforming loan information, updated credit scores, originated and updated loan-to-value (LTV) ratios, and geography, to monitor and manage credit risk within the home equity and residential real estate loan classes. We evaluate mortgage loan performance by source originators and loan servicers. A summary of asset quality indicators follows: Delinquency/Delinquency Rates : We monitor trending of delinquency/delinquency rates for home equity and residential real estate loans. See Table 39 for additional information. Nonperforming Loans : We monitor trending of nonperforming loans for home equity and residential real estate loans. See Table 39 for additional information. Credit Scores : We use a national third-party provider to update FICO credit scores for home equity loans and lines of credit and residential real estate loans at least quarterly. The updated scores are incorporated into a series of credit management reports, which are utilized to monitor the risk in the loan classes. LTV (inclusive of combined loan-to-value (CLTV) for first and subordinate lien positions) : At least annually, we update the property values of real estate collateral and calculate an updated LTV ratio. For open-end credit lines secured by real estate in regions experiencing significant declines in property values, more frequent valuations may occur. We examine LTV migration and stratify LTV into categories to monitor the risk in the loan classes. Historically, we used, and we continue to use, a combination of original LTV and updated LTV for internal risk management and reporting purposes ( e.g. , line management, loss mitigation strategies). In addition to the fact that estimated property values by their nature are estimates, given certain data limitations it is important to note that updated LTVs may be based upon management’s assumptions ( e.g. , if an updated LTV is not provided by the third-party service provider, home price index (HPI) changes will be incorporated in arriving at management’s estimate of updated LTV). Updated LTV is estimated using modeled property values. The related estimates and inputs are based upon an approach that uses a combination of third-party automated valuation models (AVMs), broker price opinions (BPOs), HPI indices, property location, internal and external balance information, origination data and management assumptions. We generally utilize origination lien balances provided by a third-party, where applicable, which do not include an amortization assumption when calculating updated LTV. Accordingly, the results of the calculations do not represent actual appraised loan level collateral or updated LTV based upon lien balances held by others, and as such, are necessarily imprecise and subject to change as we refine our methodology. Geography : Geographic concentrations are monitored to evaluate and manage exposures. Loan purchase programs are sensitive to, and focused within, certain regions to manage geographic exposures and associated risks. A combination of updated FICO scores, originated and updated LTV ratios and geographic location assigned to home equity loans and lines of credit and residential real estate loans is used to monitor the risk in the loan classes. Loans with higher FICO scores and lower LTVs tend to have a lower level of risk. Conversely, loans with lower FICO scores, higher LTVs, and in certain geographic locations tend to have a higher level of risk. The following table presents asset quality indicators for home equity and residential real estate balances, excluding consumer purchased impaired loans of $2.4 billion and $2.8 billion at December 31, 2017 and 2016 , respectively, and government insured or guaranteed residential real estate mortgages of $.8 billion at both December 31, 2017 and 2016 , respectively. Table 42 : Asset Quality Indicators for Home Equity and Residential Real Estate Loans – Excluding Purchased Impaired and Government Insured or Guaranteed Loans (a) Home Equity Residential Real Estate Total December 31, 2017 – in millions 1st Liens 2nd Liens Current estimated LTV ratios Greater than or equal to 125% and updated FICO scores: Greater than 660 $ 108 $ 385 $ 126 $ 619 Less than or equal to 660 (b) 21 64 23 108 Missing FICO 1 5 1 7 Greater than or equal to 100% to less than 125% and updated FICO scores: Greater than 660 300 842 253 1,395 Less than or equal to 660 (b) 46 143 45 234 Missing FICO 2 9 5 16 Greater than or equal to 90% to less than 100% and updated FICO scores: Greater than 660 331 890 324 1,545 Less than or equal to 660 55 134 55 244 Missing FICO 2 9 4 15 Less than 90% and updated FICO scores: Greater than 660 13,954 8,066 13,445 35,465 Less than or equal to 660 1,214 774 507 2,495 Missing FICO 42 57 95 194 Total home equity and residential real estate loans $ 16,076 $ 11,378 $ 14,883 $ 42,337 Home Equity Residential Real Estate Total December 31, 2016 – in millions 1st Liens 2nd Liens Current estimated LTV ratios Greater than or equal to 125% and updated FICO scores: Greater than 660 $ 161 $ 629 $ 174 $ 964 Less than or equal to 660 (b) 32 110 35 177 Missing FICO 1 9 2 12 Greater than or equal to 100% to less than 125% and updated FICO scores: Greater than 660 394 1,190 345 1,929 Less than or equal to 660 (b) 66 211 76 353 Missing FICO 3 10 7 20 Greater than or equal to 90% to less than 100% and updated FICO scores: Greater than 660 453 1,100 463 2,016 Less than or equal to 660 77 171 78 326 Missing FICO 1 8 6 15 Less than 90% and updated FICO scores: Greater than 660 14,047 7,913 11,153 33,113 Less than or equal to 660 1,323 822 586 2,731 Missing FICO 42 55 102 199 Missing LTV and updated FICO scores: Greater than 600 1 1 Total home equity and residential real estate loans $ 16,600 $ 12,228 $ 13,028 $ 41,856 (a) Amounts shown represent recorded investment. (b) Higher risk loans are defined as loans with both an updated FICO score of less than or equal to 660 and an updated LTV greater than or equal to 100% . The following states had the highest percentage of higher risk loans at December 31, 2017 : New Jersey 17% , Pennsylvania 13% , Illinois 13% , Ohio 9% , Maryland 8% , Florida 6% , North Carolina 5% and Michigan 4% . The remainder of the states had lower than 4% of the higher risk loans individually, and collectively they represent approximately 25% of the higher risk loans. The following states had the highest percentage of higher risk loans at December 31, 2016 : New Jersey 16% , Pennsylvania 14% , Illinois 12% , Ohio 10% , Florida 7% , Maryland 6% , Michigan 4% and North Carolina 4% . The remainder of the states had lower than 4% of the high risk loans individually, and collectively they represent approximately 27% of the higher risk loans. Credit Card and Other Consumer Loan Classes We monitor a variety of asset quality information in the management of the credit card and other consumer loan classes. Other consumer loan classes include education, automobile, and other secured and unsecured lines and loans. Along with the trending of delinquencies and losses for each class, FICO credit score updates are generally obtained monthly, as well as a variety of credit bureau attributes. Loans with high FICO scores tend to have a lower likelihood of loss. Conversely, loans with low FICO scores tend to have a higher likelihood of loss. Table 43 : Credit Card and Other Consumer Loan Classes Asset Quality Indicators Credit Card Other Consumer (a) Dollars in millions Amount % of Total Loans Using FICO Credit Metric Amount % of Total Loans Using FICO Credit Metric December 31, 2017 FICO score greater than 719 $ 3,457 61 % $ 10,366 63 % 650 to 719 1,596 28 % 4,352 27 % 620 to 649 250 4 % 659 4 % Less than 620 272 5 % 715 4 % No FICO score available or required (b) 124 2 % 314 2 % Total loans using FICO credit metric 5,699 100 % 16,406 100 % Consumer loans using other internal credit metrics (a) 5,338 Total loan balance $ 5,699 $ 21,744 Weighted-average updated FICO score (b) 735 741 December 31, 2016 FICO score greater than 719 $ 3,244 61 % $ 10,247 65 % 650 to 719 1,466 28 % 3,873 25 % 620 to 649 215 4 % 552 3 % Less than 620 229 4 % 632 4 % No FICO score available or required (b) 128 3 % 489 3 % Total loans using FICO credit metric 5,282 100 % 15,793 100 % Consumer loans using other internal credit metrics (a) 6,256 Total loan balance $ 5,282 $ 22,049 Weighted-average updated FICO score (b) 736 744 (a) We use updated FICO scores as an asset quality indicator for non-government guaranteed or insured education loans, automobile loans and other secured and unsecured lines and loans. We use internal credit metrics, such as delinquency status, geography or other factors, as an asset quality indicator for government guaranteed or insured education loans and consumer loans to high net worth individuals, as internal credit metrics are more relevant than FICO scores for these types of loans. (b) Credit card loans and other consumer loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan portfolio and, when necessary, takes actions to mitigate the credit risk. Weighted-average updated FICO score excludes accounts with no FICO score available or required. Troubled Debt Restructurings (TDRs) A TDR is a loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulty. TDRs result from our loss mitigation activities, and include rate reductions, principal forgiveness, postponement/reduction of scheduled amortization, and extensions, which are intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Additionally, TDRs also result from borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us. In those situations where principal is forgiven, the amount of such principal forgiveness is immediately charged off. Some TDRs may not ultimately result in the full collection of principal and interest, as restructured, and result in potential incremental losses. These potential incremental losses have been factored into our overall ALLL estimate. The level of any subsequent defaults will likely be affected by future economic conditions. Once a loan becomes a TDR, it will continue to be reported as a TDR until it is ultimately repaid in full, the collateral is foreclosed upon, or it is fully charged off. We held specific reserves in the ALLL of $.2 billion and $.3 billion at December 31, 2017 and December 31, 2016 , respectively, for the total TDR portfolio. Table 44 quantifies the number of loans that were classified as TDRs as well as the change in the loans’ recorded investment as a result of becoming a TDR during the years 2017 , 2016 and 2015 . Additionally, the table provides information about the types of TDR concessions. The Principal Forgiveness TDR category includes principal forgiveness and accrued interest forgiveness. The Rate Reduction TDR category includes reduced interest rate and interest deferral. The Other TDR category primarily includes consumer borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us, as well as postponement/reduction of scheduled amortization and contractual extensions for both consumer and commercial borrowers. In some cases, there have been multiple concessions granted on one loan. This is most common within the commercial loan portfolio. When there have been multiple concessions granted in the commercial loan portfolio, the principal forgiveness concession was prioritized for purposes of determining the inclusion in Table 44 . Second in priority would be rate reduction. In the event that multiple concessions are granted on a consumer loan, concessions resulting from discharge from personal liability through Chapter 7 bankruptcy without formal affirmation of the loan obligations to us would be prioritized and included in the Other type of concession in Table 44 . After that, consumer loan concessions would follow the previously discussed priority of concessions for the commercial loan portfolio. Table 44 : Financial Impact and TDRs by Concession Type (a) Number of Loans Pre-TDR Recorded Investment (b) Post-TDR Recorded Investment (c) During the year ended December 31, 2017 Principal Forgiveness Rate Reduction Other Total Total commercial lending 120 $ 293 $ 18 $ 7 $ 227 $ 252 Total consumer lending 11,993 248 146 97 243 Total TDRs 12,113 $ 541 $ 18 $ 153 $ 324 $ 495 During the year ended December 31, 2016 Total commercial lending 143 $ 524 $ 57 $ 413 $ 470 Total consumer lending 11,262 245 157 76 233 Total TDRs 11,405 $ 769 $ 214 $ 489 $ 703 During the year ended December 31, 2015 Total commercial lending 158 $ 284 $ 22 $ 4 $ 198 $ 224 Total consumer lending 10,962 311 190 106 296 Total TDRs 11,120 $ 595 $ 22 $ 194 $ 304 $ 520 (a) Impact of partial charge-offs at TDR date are included in this table. (b) Represents the recorded investment of the loans as of the quarter end prior to TDR designation, and excludes immaterial amounts of accrued interest receivable. (c) Represents the recorded investment of the TDRs as of the end of the quarter in which the TDR occurs, and excludes immaterial amounts of accrued interest receivable. After a loan is determined to be a TDR, we continue to track its performance under its most recent restructured terms. We consider a TDR to have subsequently defaulted when it becomes 60 days past due after the most recent date the loan was restructured. The recorded investment of loans that were both (i) classified as TDRs or were subsequently modified during each 12-month period preceding January 1, 2017 , 2016 and 2015 , and (ii) subsequently defaulted during the 12-month period following each of January 1, 2017 , 2016 and 2015 , totaled $.1 billion , $.2 billion and $.1 billion , respectively. Impaired Loans Impaired loans include commercial and consumer nonperforming loans and TDRs, regardless of nonperforming status. TDRs that were previously recorded at amortized cost and are now classified and accounted for as held for sale are also included. Excluded from impaired loans are nonperforming leases, loans accounted for as held for sale other than the TDRs described in the preceding sentence, loans accounted for under the fair value option, smaller balance homogeneous type loans and purchased impaired loans. We did not recognize any interest income on impaired loans that have not returned to performing status, while they were impaired during the year ended December 31, 2017 and December 31, 2016 . The following table provides further detail on impaired loans individually evaluated for impairment and the associated ALLL. Certain commercial and consumer impaired loans do not have a related ALLL as the valuation of these impaired loans exceeded the recorded investment. Table 45 : Impaired Loans In millions Unpaid Principal Balance Recorded Investment Associated Allowance Average Recorded Investment (a) December 31, 2017 Impaired loans with an associated allowance Total commercial lending $ 580 $ 353 $ 76 $ 419 Total consumer lending 1,061 1,014 195 1,072 Total impaired loans with an associated allowance 1,641 1,367 271 1,491 Impaired loans without an associated allowance Total commercial lending 494 366 330 Total consumer lending 1,019 638 648 Total impaired loans without an associated allowance 1,513 1,004 978 Total impaired loans $ 3,154 $ 2,371 $ 271 $ 2,469 December 31, 2016 Impaired loans with an associated allowance Total commercial lending $ 742 $ 477 $ 105 $ 497 Total consumer lending 1,237 1,185 226 1,255 Total impaired loans with an associated allowance 1,979 1,662 331 1,752 Impaired loans without an associated allowance Total commercial lending 447 322 365 Total consumer lending 982 608 604 Total impaired loans without an associated allowance 1,429 930 969 Total impaired loans $ 3,408 $ 2,592 $ 331 $ 2,721 (a) Average recorded investment is for the years ended December 31, 2017 and 2016 . |
Allowances for Loan and Lease L
Allowances for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2017 | |
Allowance For Loan And Lease Losses [Abstract] | |
Allowances for Loan and Lease Losses | A LLOWANCE FOR L OAN AND L EASE L OSSES We maintain the ALLL at levels that we believe to be appropriate to absorb estimated probable credit losses incurred in the portfolios as of the balance sheet date. We use the two main portfolio segments – Commercial Lending and Consumer Lending, and develop and document the ALLL under separate methodologies for each of these portfolio segments. See Note 1 Accounting Policies for a description of the accounting policies for ALLL. A rollforward of the ALLL and associated loan data follows. Table 46 : Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data Dollars in millions Commercial Lending Consumer Lending Total December 31, 2017 Allowance for Loan and Lease Losses January 1 $ 1,534 $ 1,055 $ 2,589 Charge-offs (221 ) (565 ) (786 ) Recoveries 116 213 329 Net (charge-offs) (105 ) (352 ) (457 ) Provision for credit losses 147 294 441 Net decrease / (increase) in allowance for unfunded loan commitments and letters of credit 5 (1 ) 4 Other 1 33 34 December 31 $ 1,582 $ 1,029 $ 2,611 TDRs individually evaluated for impairment $ 35 $ 195 $ 230 Other loans individually evaluated for impairment 41 41 Loans collectively evaluated for impairment 1,506 561 2,067 Purchased impaired loans 273 273 December 31 $ 1,582 $ 1,029 $ 2,611 Loan Portfolio TDRs individually evaluated for impairment $ 409 $ 1,652 $ 2,061 Other loans individually evaluated for impairment 310 310 Loans collectively evaluated for impairment 146,720 68,102 214,822 Fair value option loans (a) 869 869 Purchased impaired loans 2,396 2,396 December 31 $ 147,439 $ 73,019 $ 220,458 Portfolio segment ALLL as a percentage of total ALLL 61 % 39 % 100 % Ratio of the allowance for loan and lease losses to total loans 1.07 % 1.41 % 1.18 % December 31, 2016 Allowance for Loan and Lease Losses January 1 $ 1,605 $ 1,122 $ 2,727 Charge-offs (363 ) (523 ) (886 ) Recoveries 178 165 343 Net (charge-offs) (185 ) (358 ) (543 ) Provision for credit losses 153 280 433 Net (increase) in allowance for unfunded loan commitments and letters of credit (39 ) (1 ) (40 ) Other 12 12 December 31 $ 1,534 $ 1,055 $ 2,589 TDRs individually evaluated for impairment $ 45 $ 226 $ 271 Other loans individually evaluated for impairment 60 60 Loans collectively evaluated for impairment 1,392 546 1,938 Purchased impaired loans 37 283 320 December 31 $ 1,534 $ 1,055 $ 2,589 Loan Portfolio TDRs individually evaluated for impairment $ 428 $ 1,793 $ 2,221 Other loans individually evaluated for impairment 371 371 Loans collectively evaluated for impairment 137,047 67,345 204,392 Fair value option loans (a) 893 893 Purchased impaired loans 109 2,847 2,956 December 31 $ 137,955 $ 72,878 $ 210,833 Portfolio segment ALLL as a percentage of total ALLL 59 % 41 % 100 % Ratio of the allowance for loan and lease losses to total loans (b) 1.11 % 1.45 % 1.23 % In millions Commercial Lending Consumer Lending Total December 31, 2015 Allowance for Loan and Lease Losses January 1 $ 1,571 $ 1,760 $ 3,331 Charge-offs (255 ) (550 ) (805 ) Recoveries 240 179 419 Net charge-offs (15 ) (371 ) (386 ) Provision for credit losses 55 200 255 Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit (3 ) 1 (2 ) Other (b) (3 ) (468 ) (471 ) December 31 $ 1,605 $ 1,122 $ 2,727 TDRs individually evaluated for impairment $ 43 $ 276 $ 319 Other loans individually evaluated for impairment 76 76 Loans collectively evaluated for impairment 1,437 585 2,022 Purchased impaired loans 49 261 310 December 31 $ 1,605 $ 1,122 $ 2,727 Loan Portfolio TDRs individually evaluated for impairment $ 434 $ 1,917 $ 2,351 Other loans individually evaluated for impairment 309 309 Loans collectively evaluated for impairment 132,632 66,977 199,609 Fair value option loans (a) 905 905 Purchased impaired loans 169 3,353 3,522 December 31 $ 133,544 $ 73,152 $ 206,696 Portfolio segment ALLL as a percentage of total ALLL 59 % 41 % 100 % Ratio of the allowance for loan and lease losses to total loans 1.20 % 1.53 % 1.32 % (a) Loans accounted for under the fair value option are not evaluated for impairment as these loans are accounted for at fair value. Accordingly there is no allowance recorded on these loans. (b) Includes $468 million in write-offs of purchased impaired loans due to the change in derecognition policy effective December 31, 2015 for certain consumer purchased impaired loans. See Note 1 Accounting Policies in our 2015 Form 10-K for additional information. Net interest income less the provision for credit losses was $8.7 billion , $8.0 billion and $8.0 billion for 2017 , 2016 and 2015 , respectively. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investment Securities Disclosure [Abstract] | |
Investment Securities | I NVESTMENT S ECURITIES Table 47 : Investment Securities Summary In millions Amortized Cost Unrealized Fair Value Gains Losses December 31, 2017 Securities Available for Sale Debt securities U.S. Treasury and government agencies $ 14,432 $ 173 $ (84 ) $ 14,521 Residential mortgage-backed Agency 25,534 121 (249 ) 25,406 Non-agency 2,443 336 (21 ) 2,758 Commercial mortgage-backed Agency 1,960 2 (58 ) 1,904 Non-agency 2,603 19 (9 ) 2,613 Asset-backed 5,331 74 (8 ) 5,397 Other debt 4,322 129 (17 ) 4,434 Total debt securities 56,625 854 (446 ) 57,033 Other 587 (2 ) 585 Total securities available for sale $ 57,212 $ 854 $ (448 ) $ 57,618 Securities Held to Maturity Debt securities U.S. Treasury and government agencies $ 741 $ 37 $ (13 ) $ 765 Residential mortgage-backed Agency 14,503 77 (139 ) 14,441 Non-agency 167 7 174 Commercial mortgage-backed Agency 407 4 411 Non-agency 538 10 548 Asset-backed 200 1 201 Other debt 1,957 88 (20 ) 2,025 Total securities held to maturity $ 18,513 $ 224 $ (172 ) $ 18,565 December 31, 2016 Securities Available for Sale Debt securities U.S. Treasury and government agencies $ 13,100 $ 151 $ (77 ) $ 13,174 Residential mortgage-backed Agency 26,245 170 (287 ) 26,128 Non-agency 3,191 227 (52 ) 3,366 Commercial mortgage-backed Agency 2,150 3 (34 ) 2,119 Non-agency 4,023 29 (27 ) 4,025 Asset-backed 5,938 52 (22 ) 5,968 Other debt 4,656 104 (37 ) 4,723 Total debt securities 59,303 736 (536 ) 59,503 Other 603 (2 ) 601 Total securities available for sale $ 59,906 $ 736 $ (538 ) $ 60,104 Securities Held to Maturity Debt securities U.S. Treasury and government agencies $ 527 $ 35 $ (22 ) $ 540 Residential mortgage-backed Agency 11,074 68 (161 ) 10,981 Non-agency 191 7 198 Commercial mortgage-backed Agency 903 24 927 Non-agency 567 10 577 Asset-backed 558 (2 ) 556 Other debt 2,023 76 (12 ) 2,087 Total securities held to maturity $ 15,843 $ 220 $ (197 ) $ 15,866 The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Net unrealized gains and losses in the securities available for sale portfolio are included in Shareholders’ equity as Accumulated other comprehensive income or loss, net of tax, unless credit-related. Securities held to maturity are carried at amortized cost. At December 31, 2017 , Accumulated other comprehensive income included pretax gains of $54 million from derivatives that hedged the purchase of investment securities classified as held to maturity. The gains will be accreted into interest income as an adjustment of yield on the securities. Table 48 presents gross unrealized losses and fair value of debt securities at December 31, 2017 and December 31, 2016 . The securities are segregated between investments that have been in a continuous unrealized loss position for less than twelve months and twelve months or more based on the point in time that the fair value declined below the amortized cost basis. The table includes debt securities where the noncredit portion of OTTI has been recognized in Accumulated other comprehensive income (loss). Table 48 : Gross Unrealized Loss and Fair Value of Debt Securities In millions Unrealized loss position less than 12 months Unrealized loss position 12 months or more Total Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value December 31, 2017 Securities Available for Sale Debt securities U.S. Treasury and government agencies $ (42 ) $ 6,099 $ (42 ) $ 1,465 $ (84 ) $ 7,564 Residential mortgage-backed Agency (47 ) 8,151 (202 ) 9,954 (249 ) 18,105 Non-agency (21 ) 383 (21 ) 383 Commercial mortgage-backed Agency (11 ) 524 (47 ) 1,302 (58 ) 1,826 Non-agency (3 ) 400 (6 ) 333 (9 ) 733 Asset-backed (4 ) 1,697 (4 ) 462 (8 ) 2,159 Other debt (3 ) 966 (14 ) 798 (17 ) 1,764 Total debt securities available for sale $ (110 ) $ 17,837 $ (336 ) $ 14,697 $ (446 ) $ 32,534 Securities Held to Maturity Debt securities U.S. Treasury and government agencies $ (3 ) $ 195 $ (10 ) $ 255 $ (13 ) $ 450 Residential mortgage-backed Agency (10 ) 3,167 (129 ) 6,168 (139 ) 9,335 Other debt (12 ) 83 (8 ) 67 (20 ) 150 Total debt securities held to maturity $ (25 ) $ 3,445 $ (147 ) $ 6,490 $ (172 ) $ 9,935 December 31, 2016 Securities Available for Sale Debt securities U.S. Treasury and government agencies $ (57 ) $ 3,108 $ (20 ) $ 2,028 $ (77 ) $ 5,136 Residential mortgage-backed Agency (267 ) 16,942 (20 ) 922 (287 ) 17,864 Non-agency (1 ) 109 (51 ) 1,119 (52 ) 1,228 Commercial mortgage-backed Agency (33 ) 1,577 (1 ) 86 (34 ) 1,663 Non-agency (14 ) 880 (13 ) 987 (27 ) 1,867 Asset-backed (5 ) 1,317 (17 ) 902 (22 ) 2,219 Other debt (33 ) 1,827 (4 ) 243 (37 ) 2,070 Total debt securities available for sale $ (410 ) $ 25,760 $ (126 ) $ 6,287 $ (536 ) $ 32,047 Securities Held to Maturity Debt securities U.S. Treasury and government agencies $ (22 ) $ 238 $ (22 ) $ 238 Residential mortgage-backed Agency (153 ) 8,041 $ (8 ) $ 161 (161 ) 8,202 Asset-backed (2 ) 451 (2 ) 451 Other debt (12 ) 146 1 (12 ) 147 Total debt securities held to maturity $ (187 ) $ 8,425 $ (10 ) $ 613 $ (197 ) $ 9,038 Evaluating Investment Securities for Other-than-Temporary Impairments For the securities in Table 48 , as of December 31, 2017 we do not intend to sell and believe we will not be required to sell the securities prior to recovery of the amortized cost basis. On at least a quarterly basis, we review all debt securities that are in an unrealized loss position for OTTI, as discussed in Note 1 Accounting Policies. For those securities on our balance sheet at December 31, 2017 , where during our quarterly security-level impairment assessments we determined losses represented OTTI, we have recorded cumulative credit losses of $1.1 billion in earnings and accordingly have reduced the amortized cost of our securities. The majority of these cumulative impairment charges related to non-agency residential mortgage-backed and asset-backed securities rated BB or lower. During 2017 , 2016 and 2015 , the OTTI credit losses recognized in noninterest income and the OTTI noncredit losses recognized in accumulated other comprehensive income (loss), net of tax, on securities were not significant. Information relating to gross realized securities gains and losses from the sales of securities is set forth in the following table. Table 49 : Gains (Losses) on Sales of Securities Available for Sale In millions Proceeds Gross Gains Gross Losses Net Gains Tax Expense Year ended December 31 2017 $ 5,722 $ 38 $ (31 ) $ 7 $ 2 2016 $ 3,489 $ 24 $ (8 ) $ 16 $ 6 2015 $ 6,829 $ 56 $ (13 ) $ 43 $ 15 The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at December 31, 2017 . Table 50 : Contractual Maturity of Debt Securities December 31, 2017 1 Year or After 1 Year through 5 Years After 5 Years through 10 Years After 10 Years Total Dollars in millions Securities Available for Sale U.S. Treasury and government agencies $ 85 $ 8,780 $ 4,449 $ 1,118 $ 14,432 Residential mortgage-backed Agency 3 45 561 24,925 25,534 Non-agency 2,443 2,443 Commercial mortgage-backed Agency 2 259 624 1,075 1,960 Non-agency 451 2,152 2,603 Asset-backed 13 1,846 1,897 1,575 5,331 Other debt 521 2,032 670 1,099 4,322 Total debt securities available for sale $ 624 $ 12,962 $ 8,652 $ 34,387 $ 56,625 Fair value $ 626 $ 12,958 $ 8,695 $ 34,754 $ 57,033 Weighted-average yield, GAAP basis 2.73 % 2.12 % 2.29 % 2.97 % 2.67 % Securities Held to Maturity U.S. Treasury and government agencies $ 377 $ 364 $ 741 Residential mortgage-backed Agency $ 67 346 14,090 14,503 Non-agency 167 167 Commercial mortgage-backed Agency $ 172 177 4 54 407 Non-agency 538 538 Asset-backed 114 86 200 Other debt 49 394 854 660 1,957 Total debt securities held to maturity $ 221 $ 638 $ 1,695 $ 15,959 $ 18,513 Fair value $ 221 $ 654 $ 1,751 $ 15,939 $ 18,565 Weighted-average yield, GAAP basis 3.58 % 3.92 % 3.44 % 3.21 % 3.26 % Weighted-average yields are based on historical cost with effective yields weighted for the contractual maturity of each security. At December 31, 2017 , there were no securities of a single issuer, other than FNMA, that exceeded 10% of Total shareholders’ equity. The FNMA investments had a total amortized cost of $31.0 billion and fair value of $30.8 billion . The following table presents the fair value of securities that have been either pledged to or accepted from others to collateralize outstanding borrowings. Table 51 : Fair Value of Securities Pledged and Accepted as Collateral In millions December 31 December 31 Pledged to others $ 8,175 $ 9,493 Accepted from others: Permitted by contract or custom to sell or repledge $ 1,152 $ 912 Permitted amount repledged to others $ 1,097 $ 799 The securities pledged to others include positions held in our portfolio of investment securities, trading securities, and securities accepted as collateral from others that we are permitted by contract or custom to sell or repledge, and were used to secure public and trust deposits, repurchase agreements, and for other purposes. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value [Abstract] | |
Fair Value | F AIR V ALUE Fair Value Measurement We measure certain financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date, determined using an exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair value hierarchy established by GAAP requires us to maximize the use of observable inputs when measuring fair value. The three levels of the fair value hierarchy are: • Level 1: Fair value is determined using a quoted price in an active market for identical assets or liabilities. Level 1 assets and liabilities may include debt securities, equity securities and listed derivative contracts that are traded in an active exchange market and certain U.S. Treasury securities that are actively traded in over-the-counter markets. • Level 2: Fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly or indirectly. The majority of Level 2 assets and liabilities include debt securities, equity securities and listed derivative contracts with quoted prices that are traded in markets that are not active, and certain debt and equity securities and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable inputs. • Level 3: Fair value is estimated using unobservable inputs that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models and discounted cash flow methodologies, or similar techniques for which the significant valuation inputs are not observable and the determination of fair value requires significant management judgment or estimation. We characterize active markets as those where transaction volumes are sufficient to provide objective pricing information, with reasonably narrow bid/ask spreads and where dealer quotes received do not vary widely and are based on current information. Inactive markets are typically characterized by low transaction volumes, price quotations that vary substantially among market participants or are not based on current information, wide bid/ask spreads, a significant increase in implied liquidity risk premiums, yields, or performance indicators for observed transactions or quoted prices compared to historical periods, a significant decline or absence of a market for new issuance, or any combination of the above factors. We also consider nonperformance risks including credit risk as part of our valuation methodology for all assets and liabilities measured at fair value. Assets and liabilities measured at fair value, by their nature, result in a higher degree of financial statement volatility. Assets and liabilities classified within Level 3 inherently require the use of various assumptions, estimates and judgments when measuring their fair value. As observable market activity is commonly not available to use when estimating the fair value of Level 3 assets and liabilities, we must estimate fair value using various modeling techniques. These techniques include the use of a variety of inputs/assumptions including credit quality, liquidity, interest rates or other relevant inputs across the entire population of our Level 3 assets and liabilities. Changes in the significant underlying factors or assumptions (either an increase or a decrease) in any of these areas underlying our estimates may result in a significant increase/decrease in the Level 3 fair value measurement of a particular asset and/or liability from period to period. Any models used to determine fair values or to validate dealer quotes are subject to review and independent testing as part of our model validation and internal control testing processes. Our Model Risk Management Group reviews significant models on at least an annual basis. In addition, the Valuation Committee approves valuation methodologies and reviews the results of independent valuation reviews and processes for assets and liabilities measured at fair value on a recurring basis. Assets and Liabilities Measured at Fair Value on a Recurring Basis Securities Available for Sale and Trading Securities Securities accounted for at fair value include both the available for sale and trading portfolios. We primarily use prices obtained from pricing services, dealer quotes, or recent trades to determine the fair value of securities. The majority of securities were priced by third-party vendors. The third-party vendors use a variety of methods when pricing securities that incorporate relevant market data to arrive at an estimate of what a buyer in the marketplace would pay for a security under current market conditions. We monitor and validate the reliability of vendor pricing on an ongoing basis through pricing methodology reviews, including detailed reviews of the assumptions and inputs used by the vendor to price individual securities, and through price validation testing. Securities not priced by one of our pricing vendors may be valued using a dealer quote, which are also subject to price validation testing. Price validation testing is performed independent of the risk-taking function and involves corroborating the prices received from third-party vendors and dealers with prices from another third party or through other sources, such as internal valuations or sales of similar securities. Security prices are also validated through actual cash settlement upon sale of a security. Securities are classified within the fair value hierarchy after giving consideration to the activity level in the market for the security type and the observability of the inputs used to determine the fair value. When a quoted price in an active market exists for the identical security, this price is used to determine fair value and the security is classified within Level 1 of the hierarchy. Level 1 securities include U.S. Treasury securities and money-market mutual funds. When a quoted price in an active market for the identical security is not available, fair value is estimated using either an alternative market approach, such as a recent trade or matrix pricing, or an income approach, such as a discounted cash flow pricing model. If the inputs to the valuation are based primarily on market observable information, then the security is classified within Level 2 of the hierarchy. Level 2 securities include agency debt securities, agency residential mortgage-backed securities, agency and non-agency commercial mortgage-backed securities, certain non-agency residential mortgage-backed securities, asset-backed securities collateralized by non-mortgage-related consumer loans, municipal securities, and other debt securities. Level 2 securities are predominantly priced by third parties, either a pricing vendor or dealer. In certain cases where there is limited activity or less transparency around the inputs to the valuation, securities are classified within Level 3 of the hierarchy. Securities classified as Level 3 consist primarily of non-agency residential mortgage-backed and asset-backed securities collateralized by first- and second-lien residential mortgage loans. Fair value for these securities is primarily estimated using pricing obtained from third-party vendors. In some cases, fair value is estimated using a dealer quote, by reference to prices of securities of a similar vintage and collateral type or by reference to recent sales of similar securities. Market activity for these security types is limited with little price transparency. As a result, these securities are generally valued by the third-party vendor using a discounted cash flow approach that incorporates significant unobservable inputs and observable market activity where available. Significant inputs to the valuation include prepayment projections and credit loss assumptions (default rate and loss severity) and discount rates that are deemed representative of current market conditions. Significant increases (decreases) in any of those assumptions in isolation would result in a significantly lower (higher) fair value measurement. Certain infrequently traded debt securities within Other debt securities available-for-sale and Trading securities are also classified in Level 3 and are included in the Insignificant Level 3 assets, net of liabilities line item in Table 54 . The significant unobservable inputs used to estimate the fair value of these securities include an estimate of expected credit losses and a discount for liquidity risk. These inputs are incorporated into the fair value measurement by either increasing the spread over the benchmark curve or by applying a credit and liquidity discount to the par value of the security. Significant increases (decreases) in credit and/or liquidity risk could result in a significantly lower (higher) fair value estimate. Residential Mortgage Loans Held for Sale We account for certain residential mortgage loans originated for sale at fair value on a recurring basis. The election of the fair value option aligns the accounting for the residential mortgages with the related hedges. Residential mortgage loans are valued based on quoted market prices, where available, prices for other traded mortgage loans with similar characteristics, and purchase commitments and bid information received from market participants. The prices are adjusted as necessary to include the embedded servicing value in the loans and to take into consideration the specific characteristics of certain loans that are priced based on the pricing of similar loans. These adjustments represent unobservable inputs to the valuation but are not considered significant given the relative insensitivity of the value to changes in these inputs to the fair value of the loans. Accordingly, the majority of residential mortgage loans held for sale are classified as Level 2. Commercial Mortgage Loans Held for Sale We account for certain commercial mortgage loans classified as held for sale in whole loan transactions at fair value. We determine the fair value of commercial mortgage loans held for sale based upon discounted cash flows. Fair value is determined using sale valuation assumptions that management believes a market participant would use in pricing the loans. Valuation assumptions may include observable inputs based on the benchmark interest rate swap curve, whole loan sales and agency sales transactions. The significant unobservable input for commercial mortgage loans held for sale, excluding those to be sold to agencies, is management’s assumption of the spread applied to the benchmark rate. The spread over the benchmark curve includes management’s assumptions of the impact of credit and liquidity risk. Significant increases (decreases) in the spread applied to the benchmark would result in a significantly lower (higher) asset value. The wide range of the spread over the benchmark curve is due to the varying risk and underlying property characteristics within our portfolio. Based on the significance of the unobservable input we classified this portfolio as Level 3. For loans to be sold to agencies with servicing retained, the fair value is adjusted for the estimated servicing cash flows, which is an unobservable input. This adjustment is not considered significant given the relative insensitivity of the value to changes in the input to the fair value of the loans. Accordingly, commercial mortgage loans held for sale to agencies are classified as Level 2 as of December 31, 2017. Loans Loans accounted for at fair value consist primarily of residential mortgage loans. These loans are generally valued similarly to residential mortgage loans held for sale and are classified as Level 2. However, similar to residential mortgage loans held for sale, if these loans are repurchased and unsalable, they are classified as Level 3. In addition, repurchased VA loans, where only a portion of the principal will be reimbursed, are classified as Level 3. The fair value is determined using a discounted cash flow calculation based on our historical loss rate. We have elected to account for certain home equity lines of credit at fair value. These loans are classified as Level 3. Significant inputs to the valuation of these loans include credit and liquidity discount, cumulative default rate, loss severity and gross discount rate and are deemed representative of current market conditions. Significant increases (decreases) in any of these assumptions would result in a significantly lower (higher) fair value measurement. Equity Investments The valuation of direct and indirect private equity investments requires significant management judgment due to the absence of quoted market prices, inherent lack of liquidity and the long-term nature of such investments. Various valuation techniques are used for direct investments, including multiples of adjusted earnings of the entity, independent appraisals, anticipated financing and sale transactions with third parties, or the pricing used to value the entity in a recent financing transaction. A multiple of adjusted earnings calculation is the valuation technique utilized most frequently and is the most significant unobservable input used in such calculation. Significant decreases (increases) in the multiple of earnings could result in a significantly lower (higher) fair value measurement. Direct equity investments are classified as Level 3. Indirect investments are not redeemable; however, we receive distributions over the life of the partnerships from liquidation of the underlying investments by the investee, which we expect to occur over the next twelve years . We value indirect investments in private equity funds using consensus pricing and the net asset value (NAV) practical expedient as provided in the financial statements that we receive from fund managers. Due to the time lag in our receipt of the financial information and based on a review of investments and valuation techniques applied, adjustments to the manager-provided value are made when available recent portfolio company information or market information indicates a significant change in value from that provided by the manager of the fund. Indirect investments valued using NAV are not classified in the fair value hierarchy. Mortgage Servicing Rights (MSRs) MSRs are carried at fair value on a recurring basis. Assumptions incorporated into the MSRs valuation model reflect management’s best estimate of factors that a market participant would use in valuing the MSRs. Although sales of MSRs do occur and can offer some market insight, MSRs do not trade in an active, open market with readily observable prices so the precise terms and conditions of sales are not available. Residential MSRs As a benchmark for the reasonableness of our residential MSRs fair value, we obtained opinions of value from independent brokers. These brokers provided a range (+/-10 bps) based upon their own discounted cash flow calculations of our portfolio that reflect conditions in the secondary market and any recently executed servicing transactions. We compare our internally-developed residential MSRs value to the ranges of values received from the brokers. If our residential MSRs fair value falls outside of the brokers’ ranges, management will assess whether a valuation adjustment is warranted. For the periods presented, our residential MSRs value did not fall outside of the brokers’ ranges. We consider our residential MSRs value to represent a reasonable estimate of fair value. Due to the nature of the unobservable valuation inputs, residential MSRs are classified as Level 3. The significant unobservable inputs used in the fair value measurement of residential MSRs are constant prepayment rates and spread over the benchmark curve. Significant increases (decreases) in prepayment rates and spread over the benchmark curve would result in lower (higher) fair market value of residential MSRs. Commercial MSRs The fair value of commercial MSRs is estimated by using a discounted cash flow model incorporating unobservable inputs for assumptions such as constant prepayment rates, discount rates and other factors. Due to the nature of the unobservable valuation inputs and the limited availability of market pricing, commercial MSRs are classified as Level 3. Significant increases (decreases) in constant prepayment rates and discount rates would result in significantly lower (higher) commercial MSR value determined based on current market conditions and expectations. Financial Derivatives Exchange-traded derivatives are valued using quoted market prices and are classified as Level 1. The majority of derivatives that we enter into are executed over-the-counter and are valued using internal models. These derivatives are primarily classified as Level 2 as the readily observable market inputs to these models are validated to external sources such as industry pricing services, or are corroborated through recent trades, dealer quotes, yield curves, implied volatility or other market-related data. Level 2 financial derivatives are primarily estimated using a combination of Eurodollar future prices and observable benchmark interest rate swaps to construct projected discounted cash flows. Financial derivatives that are priced using significant management judgment or assumptions are classified as Level 3. Unobservable inputs related to interest rate contracts include probability of funding of residential mortgage loan commitments and estimated servicing cash flows of commercial and residential mortgage loan commitments. Probability of default and loss severity are the significant unobservable inputs used in the valuation of risk participation agreements. The fair values of Level 3 assets and liabilities related to these financial derivatives as of December 31, 2017 and 2016 are included in the Insignificant Level 3 assets, net of liabilities line item in Table 54 of this Note 6 . In connection with the sales of portions of our Visa Class B common shares, we entered into swap agreements with the purchasers of the shares to retain any future risk of decreases in the conversion rate of Class B common shares to Class A common shares resulting from increases in the escrow funded by Visa to pay for the costs of resolution of specified litigation (see Note 19 Legal Proceedings ). These swaps also require PNC to make periodic payments based on the market price of the Class A common shares and a fixed rate of interest until the Visa litigation is resolved. An increase in the estimated length of litigation resolution date, a decrease in the estimated conversion rate, or an increase in the estimated growth rate of the Class A share price will each have a negative impact on the fair value of the swaps and vice versa. The fair values of our derivatives include a credit valuation adjustment to reflect our own and our counterparties’ nonperformance risk. Our credit valuation adjustment is computed using new loan pricing and considers externally available bond spreads, in conjunction with internal historical recovery observations. Other Assets and Liabilities Other assets held at fair value on a recurring basis primarily include assets related to PNC’s deferred compensation and supplemental incentive savings plans and BlackRock Series C Preferred Stock. The assets related to PNC’s deferred compensation and supplemental incentive savings plans primarily consist of a prepaid forward contract referencing an amount of shares of PNC stock, equity mutual funds and fixed income funds, and are valued based on the underlying investments. These assets are valued either by reference to the market price of PNC’s stock or by using the quoted market prices for investments other than PNC’s stock and are primarily classified in Levels 1 and 2. We have elected to account for the shares of BlackRock Series C Preferred Stock received in a stock exchange with BlackRock at fair value as these shares economically hedge the BlackRock LTIP liability that is accounted for and reported as a derivative. The fair value of the Series C Preferred Stock is determined using a third-party modeling approach, which includes both observable and unobservable inputs. Due to the significance of unobservable inputs, this security is classified as Level 3. Significant increases (decreases) in the liquidity discount would result in a lower (higher) asset value for the BlackRock Series C Preferred Stock. All Level 3 other assets and liabilities are included in the Insignificant Level 3 assets, net of liabilities line item in Table 54 in this Note 6 . Other Borrowed Funds Other borrowed funds primarily consist of U.S. Treasury securities sold short classified as Level 1. Other borrowed funds also includes the related liability for certain repurchased loans for which we have elected the fair value option and are classified as either Level 2 or Level 3, consistent with the level classification of the corresponding loans. All Level 3 amounts are included in the Insignificant Level 3 assets, net of liabilities line item in Table 54 in this Note 6 . The following table summarizes our assets and liabilities measured at fair value on a recurring basis, including instruments for which we have elected the fair value option. Table 52 : Fair Value Measurements – Recurring Basis Summary December 31, 2017 December 31, 2016 In millions Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Assets Residential mortgage loans held for sale $ 829 $ 3 $ 832 $ 1,008 $ 2 $ 1,010 Commercial mortgage loans held for sale 723 107 830 1,400 1,400 Securities available for sale U.S. Treasury and government agencies $ 14,088 433 14,521 $ 12,572 602 13,174 Residential mortgage-backed Agency 25,406 25,406 26,128 26,128 Non-agency 97 2,661 2,758 112 3,254 3,366 Commercial mortgage-backed Agency 1,904 1,904 2,119 2,119 Non-agency 2,613 2,613 4,025 4,025 Asset-backed 5,065 332 5,397 5,565 403 5,968 Other debt 4,347 87 4,434 4,657 66 4,723 Total debt securities 14,088 39,865 3,080 57,033 12,572 43,208 3,723 59,503 Other 524 61 585 541 60 601 Total securities available for sale 14,612 39,926 3,080 57,618 13,113 43,268 3,723 60,104 Loans 571 298 869 558 335 893 Equity investments (a) 1,036 1,265 1,331 1,381 Residential mortgage servicing rights 1,164 1,164 1,182 1,182 Commercial mortgage servicing rights 668 668 576 576 Trading securities (b) 1,243 1,670 2 2,915 1,458 1,169 2 2,629 Financial derivatives (b) (c) 2,864 10 2,874 10 4,566 40 4,616 Other assets 278 253 107 638 266 312 239 817 Total assets $ 16,133 $ 46,836 $ 6,475 $ 69,673 $ 14,847 $ 50,881 $ 8,830 $ 74,608 Liabilities Other borrowed funds $ 1,079 $ 254 $ 11 $ 1,344 $ 799 $ 161 $ 10 $ 970 Financial derivatives (c) (d) 2,369 487 2,856 1 3,424 414 3,839 Other liabilities 33 33 9 9 Total liabilities $ 1,079 $ 2,623 $ 531 $ 4,233 $ 800 $ 3,585 $ 433 $ 4,818 (a) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheet. (b) Included in Other assets on the Consolidated Balance Sheet. (c) Amounts at December 31, 2017 and December 31, 2016 , are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 13 Financial Derivatives for additional information related to derivative offsetting. (d) Included in Other liabilities on the Consolidated Balance Sheet. Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for 2017 and 2016 follow. Table 53 : Reconciliation of Level 3 Assets and Liabilities Year Ended December 31, 2017 Total realized / unrealized Unrealized Level 3 Instruments Only Fair Included in Included Purchases Sales Issuances Settlements Transfers Transfers Fair Assets Residential mortgage loans $ 2 $ 8 $ (1 ) $ 10 $ (16 ) (c) $ 3 Commercial mortgage 1,400 $ 81 (5,278 ) $ 4,885 $ (258 ) (723 ) (d) 107 $ 4 Securities available for sale Residential mortgage- 3,254 77 $ 137 (33 ) (774 ) 2,661 (1 ) Commercial mortgage- 12 (12 ) Asset-backed 403 12 22 (25 ) (80 ) 332 Other debt 66 19 13 (1 ) (10 ) 87 Total securities 3,723 101 178 13 (71 ) (864 ) 3,080 (1 ) Loans 335 97 (28 ) (68 ) 13 (51 ) (c) 298 (7 ) Equity investments 1,331 239 214 (565 ) (183 ) (e) 1,036 145 Residential mortgage 1,182 (83 ) 185 55 (175 ) 1,164 (79 ) Commercial mortgage 576 46 69 88 (111 ) 668 45 Trading securities 2 2 Financial derivatives 40 39 3 (67 ) (5 ) 10 67 Other assets 239 23 (155 ) 107 24 Total assets $ 8,830 $ 446 $ 178 $ 589 $ (5,943 ) $ 5,028 $ (1,698 ) $ 23 $ (978 ) $ 6,475 $ 198 Liabilities Other borrowed funds $ 10 $ 72 $ (71 ) $ 11 Financial derivatives 414 $ 293 $ 3 (221 ) $ (2 ) 487 $ 297 Other liabilities 9 25 173 (174 ) 33 26 Total liabilities $ 433 $ 318 $ 3 $ 245 $ (466 ) $ (2 ) $ 531 $ 323 Net gains (losses) $ 128 (f) $ (125 ) (g) Year Ended December 31, 2016 Total realized / unrealized Unrealized Level 3 Instruments Only Fair Value Dec. 31, 2015 Included in Included Purchases Sales Issuances Settlements Transfers Transfers (c) Fair Value Dec. 31, 2016 Assets Residential mortgage loans $ 5 $ 10 $ (3 ) $ 10 $ (20 ) $ 2 Commercial mortgage 641 $ 79 (3,810 ) $ 4,515 $ (25 ) 1,400 $ (3 ) Securities available for sale Residential mortgage- 4,008 75 $ 16 (60 ) (785 ) 3,254 (2 ) Asset-backed 482 13 (3 ) (89 ) 403 Other debt 45 1 28 12 (17 ) (3 ) 2 (2 ) 66 Total securities 4,535 89 41 12 (77 ) (877 ) 2 (2 ) 3,723 (2 ) Loans 340 8 126 (22 ) (78 ) 15 (54 ) 335 2 Equity investments 1,098 148 269 (418 ) 235 (e) (1 ) 1,331 127 Residential mortgage 1,063 37 188 62 (168 ) 1,182 39 Commercial mortgage 526 45 36 61 (92 ) 576 45 Trading securities 3 (1 ) 2 Financial derivatives 31 115 2 (108 ) 40 102 Other assets 364 15 (2 ) (138 ) 239 13 Total assets $ 8,606 $ 536 $ 39 $ 643 $ (4,330 ) $ 4,638 $ (1,487 ) $ 262 $ (77 ) $ 8,830 $ 323 Liabilities Other borrowed funds $ 12 $ 87 $ (89 ) $ 10 Financial derivatives 473 $ 127 $ 4 (190 ) 414 $ 129 Other liabilities 10 (9 ) 132 (124 ) 9 Total liabilities $ 495 $ 118 $ 4 $ 219 $ (403 ) $ 433 $ 129 Net gains (losses) $ 418 (f) $ 194 (g) (a) Losses for assets are bracketed while losses for liabilities are not. (b) The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period. (c) Transfers out of Level 3 primarily reflect the reclassification of residential mortgage loans held for sale to held for investment and the transfer of residential mortgage loans to OREO. (d) Reflects a transfer from Level 3 to Level 2 due to an unobservable valuation input that was deemed to be not significant. (e) Reflects transfers into and out of Level 3 associated with changes in valuation methodology for certain equity investments subject to the Volcker Rule provisions of the Dodd-Frank Act. (f) Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts were included in Interest income on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized were included in Noninterest income on the Consolidated Income Statement. (g) Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income on the Consolidated Income Statement. An instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Changes from one quarter to the next related to the observability of inputs to a fair value measurement may result in a reclassification (transfer) of assets or liabilities between hierarchy levels. Our policy is to recognize transfers in and transfers out as of the end of the reporting period. Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities follows. Table 54 : Fair Value Measurements – Recurring Quantitative Information December 31, 2017 Level 3 Instruments Only Dollars in millions Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) Commercial mortgage loans held for sale $ 107 Discounted cash flow Spread over the benchmark curve (a) 525bps - 1,470bps (1,020bps) Residential mortgage-backed 2,661 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate (CPR) 1.0% - 31.6% (10.8% ) Constant default rate (CDR) 0.1% - 18.8% (5.4%) Loss severity 15.0% - 100.0% (51.5% ) Spread over the benchmark curve (a) 190bps weighted average Asset-backed securities 332 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate (CPR) 1.0% - 19.0% (7.9%) Constant default rate (CDR) 2.0% - 11.8% (5.4%) Loss severity 15.0% - 100.0% (68.5%) Spread over the benchmark curve (a) 179bps weighted average Loans 133 Consensus pricing (b) Cumulative default rate 11.0% - 100.0% (85.7%) Loss severity 0.0% - 100.0% (20.6%) Discount rate 5.5% - 8.0% (5.7%) 104 Discounted cash flow Loss severity 8.0% weighted average Discount rate 4.9% weighted average 61 Consensus pricing (b) Credit and Liquidity discount 0.0% - 99.0% (61.1%) Equity investments 1,036 Multiple of adjusted earnings Multiple of earnings 4.5x - 29.7x (8.3x) Residential mortgage servicing rights 1,164 Discounted cash flow Constant prepayment rate (CPR) 0.0% - 36.7% (10.0%) Spread over the benchmark curve (a) 390bps - 1,839bps (830bps) Commercial mortgage servicing rights 668 Discounted cash flow Constant prepayment rate (CPR) 7.7% - 14.2% (8.5%) Discount rate 6.4% - 7.9% (7.8%) Financial derivatives - Swaps related to (380 ) Discounted cash flow Estimated conversion factor of Visa 163.8% weighted average Estimated growth rate of Visa 16.0% Estimated length of litigation Q2 2021 Insignificant Level 3 assets, net of 58 Total Level 3 assets, net of liabilities (d) $ 5,944 December 31, 2016 Level 3 Instruments Only Dollars in millions Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) Commercial mortgage loans held for sale $ 1,400 Discounted cash flow Spread over the benchmark curve (a) 42bps - 1,725bps (362bps) Estimated servicing cash flows 0.0% - 7.3% (1.5%) Residential mortgage-backed 3,254 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate (CPR) 1.0% - 24.2% (7.2%) Constant default rate (CDR) 0.0% - 16.7% (5.3%) Loss severity 10.0% - 98.5% (53.5%) Spread over the benchmark curve (a) 236bps weighted average Asset-backed securities 403 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate (CPR) 1.0% - 16.0% (6.4%) Constant default rate (CDR) 2.0% - 13.9% (6.6%) Loss severity 24.2% - 100.0% (77.3%) Spread over the benchmark curve (a) 278bps weighted average Loans 141 Consensus pricing (b) Cumulative default rate 11.0% - 100.0% (86.9%) Loss severity 0.0% - 100.0% (22.9%) Discount rate 4.7% - 6.7% (5.1%) 116 Discounted cash flow Loss severity 8.0% weighted average Discount rate 4.2% weighted average 78 Consensus pricing (b) Credit and Liquidity discount 0.0% - 99.0% (57.9%) Equity investments 1,331 Multiple of adjusted earnings Multiple of earnings 4.5x - 12.0x (7.8x) Consensus pricing (b) Liquidity discount 0.0% - 40.0% Residential mortgage servicing rights 1,182 Discounted cash flow Constant prepayment rate (CPR) 0.0% - 36.0% (9.4%) Spread over the benchmark curve (a) 341bps - 1,913bps (850bps) Commercial mortgage servicing rights 576 Discounted cash flow Constant prepayment rate (CPR) 7.5% - 43.4% (8.6%) Discount rate 3.5% - 7.6% (7.5%) Other assets – BlackRock Series C 232 Consensus pricing (b) Liquidity discount 15.0% - 25.0% (20.0%) Financial derivatives - BlackRock LTIP (232 ) Consensus pricing (b) Liquidity discount 15.0% - 25.0% (20.0%) Financial derivatives - Swaps related to (164 ) Discounted cash flow Estimated conversion factor of Class B shares into Class A shares 164.4% weighted average Estimated gro |
Goodwill and Mortgage Servicing
Goodwill and Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Mortgage Servicing Rights | G OODWILL AND M ORTGAGE S ERVICING R IGHTS Assets and liabilities of acquired entities are recorded at estimated fair value as of the acquisition date. Goodwill Allocations of Goodwill by business segment during 2017 , 2016 and 2015 follow: Table 60 : Goodwill by Business Segment (a) In millions Retail Banking Corporate & Institutional Banking Asset Management Group Total December 31, 2015 $ 5,795 $ 3,244 $ 64 $ 9,103 December 31, 2016 $ 5,795 $ 3,244 $ 64 $ 9,103 December 31, 2017 (b) $ 5,795 $ 3,314 $ 64 $ 9,173 (a) The BlackRock business segment did not have any allocated goodwill during 2017 , 2016 and 2015 . (b) Corporate & Institutional Banking's goodwill balance as of December 31, 2017 includes the impact of $70 million from business acquisitions in 2017. We conduct a goodwill impairment test on our reporting units at least annually, in the fourth quarter, or more frequently if events occur or circumstances have changed significantly from the annual test date. The fair value of our reporting units with goodwill is determined by using discounted cash flow and market comparability methodologies. Based on the results of our analysis, there were no impairment charges related to goodwill in 2017 , 2016 or 2015 . Mortgage Servicing Rights We recognize the right to service mortgage loans for others when we recognize it as an intangible asset and the servicing income we receive is more than adequate compensation. MSRs are purchased or originated when loans are sold with servicing retained. MSRs totaled $1.8 billion at both December 31, 2017 and December 31, 2016 , respectively, and consisted of loan servicing contracts for commercial and residential mortgages measured at fair value. Commercial Mortgage Servicing Rights We recognize gains/(losses) on changes in the fair value of commercial MSRs. Commercial MSRs are subject to changes in value from actual or expected prepayment of the underlying loans and defaults as well as market driven changes in interest rates. We manage this risk by economically hedging the fair value of commercial MSRs with securities and derivative instruments which are expected to increase (or decrease) in value when the value of commercial MSRs declines (or increases). The fair value of commercial MSRs is estimated by using a discounted cash flow model incorporating inputs for assumptions as to constant prepayment rates, discount rates and other factors determined based on current market conditions and expectations. Changes in the commercial MSRs follow: Table 61 : Commercial Mortgage Servicing Rights In millions 2017 2016 2015 January 1 $ 576 $ 526 $ 506 Additions: From loans sold with servicing retained 88 61 63 Purchases 69 36 55 Changes in fair value due to: Time and payoffs (a) (111 ) (92 ) (89 ) Other (b) 46 45 (9 ) December 31 $ 668 $ 576 $ 526 Related unpaid principal balance at December 31 $ 162,182 $ 143,139 $ 145,823 Servicing advances at December 31 $ 217 $ 265 $ 251 (a) Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period. (b) Represents MSR value changes resulting primarily from market-driven changes in interest rates. Residential Mortgage Servicing Rights Residential MSRs are subject to changes in value from actual or expected prepayment of the underlying loans and defaults as well as market driven changes in interest rates. We manage this risk by economically hedging the fair value of residential MSRs with securities and derivative instruments which are expected to increase (or decrease) in value when the value of residential MSRs declines (or increases). The fair value of residential MSRs is estimated by using a discounted cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, servicing costs, and other factors which are determined based on current market conditions. Changes in the residential MSRs follow: Table 62 : Residential Mortgage Servicing Rights In millions 2017 2016 2015 January 1 $ 1,182 $ 1,063 $ 845 Additions: From loans sold with servicing retained 55 62 78 Purchases 185 188 316 Changes in fair value due to: Time and payoffs (a) (175 ) (168 ) (178 ) Other (b) (83 ) 37 2 December 31 $ 1,164 $ 1,182 $ 1,063 Unpaid principal balance of loans serviced for others at December 31 $ 126,769 $ 125,381 $ 123,466 Servicing advances at December 31 $ 201 $ 302 $ 411 (a) Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period. (b) Represents MSR value changes resulting from market-driven changes in interest rates and changes in model assumptions. Sensitivity Analysis The fair value of commercial and residential MSRs and significant inputs to the valuation models as of December 31, 2017 are shown in Tables 63 and 64 . The expected and actual rates of mortgage loan prepayments are significant factors driving the fair value. Management uses both internal proprietary models and a third-party model to estimate future commercial mortgage loan prepayments and a third-party model to estimate future residential mortgage loan prepayments. These models have been refined based on current market conditions and management judgment. Future interest rates are another important factor in the valuation of MSRs. Management utilizes market implied forward interest rates to estimate the future direction of mortgage and discount rates. The forward rates utilized are derived from the current yield curve for U.S. dollar interest rate swaps and are consistent with pricing of capital markets instruments. Changes in the shape and slope of the forward curve in future periods may result in volatility in the fair value estimate. A sensitivity analysis of the hypothetical effect on the fair value of MSRs to adverse changes in key assumptions is presented in Tables 63 and 64 . These sensitivities do not include the impact of the related hedging activities. Changes in fair value generally cannot be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated independently without changing any other assumption. In reality, changes in one factor may result in changes in another (for example, changes in mortgage interest rates, which drive changes in prepayment rate estimates, could result in changes in the interest rate spread), which could either magnify or counteract the sensitivities. The following tables set forth the fair value of commercial and residential MSRs and the sensitivity analysis of the hypothetical effect on the fair value of MSRs to immediate adverse changes of 10% and 20% in those assumptions: Table 63 : Commercial Mortgage Loan Servicing Rights –Key Valuation Assumptions Dollars in millions December 31 December 31 Fair value $ 668 $ 576 Weighted-average life (years) 4.4 4.6 Weighted-average constant 8.51 % 8.61 % Decline in fair value from $ 12 $ 11 Decline in fair value from $ 23 $ 21 Effective discount rate 7.81 % 7.52 % Decline in fair value from $ 18 $ 16 Decline in fair value from $ 36 $ 31 Table 64 : Residential Mortgage Loan Servicing Rights – Key Valuation Assumptions Dollars in millions December 31 December 31 Fair value $ 1,164 $ 1,182 Weighted-average life (years) 6.4 6.8 Weighted-average constant prepayment rate 10.04 % 9.41 % Decline in fair value from 10% adverse change $ 44 $ 45 Decline in fair value from 20% adverse change $ 85 $ 86 Weighted-average option adjusted spread 830 bps 850 bps Decline in fair value from 10% adverse change $ 35 $ 37 Decline in fair value from 20% adverse change $ 67 $ 72 Fees from mortgage loan servicing, which includes contractually specified servicing fees, late fees and ancillary fees were $.5 billion for each of 2017 , 2016 and 2015 . We also generate servicing fees from fee-based activities provided to others for which we do not have an associated servicing asset. Fees from commercial and residential MSRs are reported on our Consolidated Income Statement in the line items Corporate services and Residential mortgage, respectively. |
Premises, Equipment and Leaseho
Premises, Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises, Equipment and Leasehold Improvement | P REMISES , E QUIPMENT AND L EASEHOLD I MPROVEMENTS Premises, equipment and leasehold improvements, stated at cost less accumulated depreciation and amortization, were as follows: Table 65 : Premises, Equipment and Leasehold Improvements In millions December 31 December 31 Premises, equipment and leasehold improvements $ 10,939 $ 10,410 Accumulated depreciation and amortization (5,503 ) (4,888 ) Net book value $ 5,436 $ 5,522 The following table includes depreciation expense on premises, equipment and leasehold improvements, as well as amortization expense, excluding intangible assets, primarily for capitalized internally developed software. Table 66 : Depreciation and Amortization Expense Year ended December 31 In millions 2017 2016 2015 Depreciation $ 743 $ 683 $ 643 Amortization 56 46 40 Total depreciation and amortization $ 799 $ 729 $ 683 We lease certain facilities and equipment under agreements expiring at various dates through the year 2081 . We account for these as operating leases. Rental expense on such leases was as follows: Table 67 : Lease Rental Expense Year ended December 31 In millions 2017 2016 2015 Lease rental expense $ 431 $ 442 $ 460 Required minimum annual rentals that we owe on noncancelable leases having initial or remaining terms in excess of one year totaled $2.6 billion at December 31, 2017 . Future minimum annual rentals are as follows: Table 68 : Minimum Annual Lease Rentals In millions 2018 $ 382 2019 $ 343 2020 $ 302 2021 $ 260 2022 $ 217 2023 and thereafter $ 1,051 |
Time Deposits
Time Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Time Deposits | T IME D EPOSITS Total time deposits of $17.3 billion at December 31, 2017 have future contractual maturities, including related purchase accounting adjustments, as follows: Table 69 : Time Deposits In billions 2018 $ 12.1 2019 $ 1.1 2020 $ .9 2021 $ 1.0 2022 $ .9 2023 and thereafter $ 1.3 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | B ORROWED F UNDS The following shows the carrying value of total borrowed funds of $ 59.1 billion at December 31, 2017 (including adjustments related to purchase accounting, accounting hedges and unamortized original issuance discounts) by remaining contractual maturity: Table 70 : Borrowed Funds In billions 2018 $ 16.0 2019 $ 12.3 2020 $ 13.8 2021 $ 3.7 2022 $ 4.9 2023 and thereafter $ 8.4 The following table presents the contractual rates and maturity dates of our FHLB borrowings, senior debt and subordinated debt as of December 31, 2017 and the carrying values as of December 31, 2017 and 2016 . Table 71 : FHLB Borrowings, Senior Debt and Subordinated Debt Stated Rate Maturity Carrying Value Dollars in millions 2017 2017 2017 2016 Parent Company Senior debt 1.64%-6.70% 2018-2027 $ 5,203 $ 3,960 Subordinated debt 3.90%-6.88% 2019-2024 1,440 2,038 Junior subordinated debt 2.05% 2028 205 205 Subtotal 6,848 6,203 Bank FHLB (a) zero-6.35% 2018-2030 21,037 17,549 Senior debt 1.05%-3.30% 2018-2043 22,859 19,012 Subordinated debt 2.70%-6.88% 2018-2025 3,555 5,766 Subtotal 47,451 42,327 Total $ 54,299 $ 48,530 (a) FHLB borrowings are generally collateralized by residential mortgage loans, other mortgage-related loans and commercial mortgage-backed securities. In Table 71 , the carrying values for Parent Company senior and subordinated debt include basis adjustments of $38 million and $23 million , respectively, whereas Bank senior and subordinated debt include basis adjustments of $(187) million and $2 million , respectively, related to fair value accounting hedges as of December 31, 2017 . Also included in borrowed funds are repurchase agreements. Additionally, certain borrowings are reported at fair value. Refer to Note 6 Fair Value for more information on those borrowings. Junior Subordinated Debentures PNC Capital Trust C, a wholly-owned finance subsidiary of The PNC Financial Services Group, Inc., owns junior subordinated debentures issued by PNC with a carrying value of $205 million . In June 1998, PNC Capital Trust C issued $200 million of trust preferred securities which bear interest at an annual rate of 3 month LIBOR plus 57 basis points. The trust preferred securities are currently redeemable by PNC Capital Trust C at par. In accordance with GAAP, the financial statements of the Trust are not included in our consolidated financial statements. The obligations of The PNC Financial Services Group, Inc., as the parent of the Trust, when taken collectively, are the equivalent of a full and unconditional guarantee of the obligations of the Trust under the terms of the trust preferred securities. Such guarantee is subordinate in right of payment in the same manner as other junior subordinated debt. There are certain restrictions on our overall ability to obtain funds from our subsidiaries. For additional disclosure on these funding restrictions, see Note 18 Regulatory Matters . We are subject to certain restrictions, including restrictions on dividend payments, in connection with the outstanding junior subordinated debentures. Generally, if there is (i) an event of default under the debenture, (ii) we elect to defer interest on the debenture, (iii) we exercise our right to defer payments on the related trust preferred securities, or (iv) there is a default under our guarantee of such payment obligations, subject to certain limited exceptions, we would be unable during the period of such default or deferral to make payments on our debt securities that rank equal or junior to the debentures as well as to make payments on our equity securities, including dividend payments. |
Employees Benefit Plans
Employees Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | E MPLOYEE B ENEFIT P LANS Pension and Postretirement Plans We have a noncontributory, qualified defined benefit pension plan covering eligible employees. Benefits are determined using a cash balance formula where earnings credits are a percentage of eligible compensation. Earnings credit percentages for those employees who were plan participants on December 31, 2009 are frozen at the level earned to that point. Earnings credits for all employees who became participants on or after January 1, 2010 are a flat 3% of eligible compensation. All plan participants earn interest on their cash balances based on 30-year Treasury securities rates with those who were participants at December 31, 2009 earning a minimum rate. New participants on or after January 1, 2010 are not subject to the minimum rate. Any pension contributions to the plan are based on an actuarially determined amount necessary to fund total benefits payable to plan participants. We made a voluntary contribution of $ 200 million in September 2017 to the qualified pension plan. Assets of the qualified pension plan are held in a separate Trust (Trust). We also maintain nonqualified supplemental retirement plans for certain employees and provide certain health care and life insurance benefits for qualifying retired employees (postretirement benefits) through various plans. PNC reserves the right to terminate or make changes to these plans at any time. The nonqualified pension plan is unfunded. Contributions from PNC and, in the case of the postretirement benefit plans, participant contributions cover all benefits paid under the nonqualified pension plan and postretirement benefit plans. The postretirement plan provides benefits to certain retirees that are at least actuarially equivalent to those provided by Medicare Part D and accordingly, we receive a federal subsidy as shown in Table 72 . In November of 2015, we established a voluntary employee beneficiary association (VEBA) to partially fund postretirement medical and life insurance benefit obligations. We use a measurement date of December 31 for plan assets and benefit obligations. A reconciliation of the changes in the projected benefit obligation for qualified pension, nonqualified pension and postretirement benefit plans as well as the change in plan assets for the qualified pension plan follows. Table 72 : Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets Qualified Pension Nonqualified Pension Postretirement Benefits December 31 (Measurement Date) – in millions 2017 2016 2017 2016 2017 2016 Accumulated benefit obligation at end of year $ 4,726 $ 4,495 $ 280 $ 282 Projected benefit obligation at beginning of year $ 4,547 $ 4,397 $ 289 $ 298 $ 373 $ 368 Service cost 160 102 3 3 5 6 Interest cost 179 186 10 12 14 15 Amendments 17 2 Actuarial (gains)/losses and changes in assumptions 172 131 8 7 (18 ) 6 Participant contributions 3 4 Federal Medicare subsidy on benefits paid 1 1 Benefits paid (286 ) (269 ) (24 ) (31 ) (25 ) (27 ) Projected benefit obligation at end of year $ 4,789 $ 4,547 $ 286 $ 289 $ 355 $ 373 Fair value of plan assets at beginning of year $ 4,617 $ 4,316 $ 208 $ 200 Actual return on plan assets 722 320 9 (7 ) Employer contribution 200 250 $ 24 $ 31 34 $ 37 Participant contributions 3 4 Federal Medicare subsidy on benefits paid 1 1 Benefits paid (286 ) (269 ) (24 ) (31 ) (25 ) (27 ) Fair value of plan assets at end of year $ 5,253 $ 4,617 $ 230 $ 208 Funded status $ 464 $ 70 $ (286 ) $ (289 ) $ (125 ) $ (165 ) Amounts recognized on the consolidated balance sheet Noncurrent asset $ 464 $ 70 Current liability $ (28 ) $ (27 ) $ (2 ) $ (2 ) Noncurrent liability (258 ) (262 ) (123 ) (163 ) Net amount recognized on the consolidated balance sheet $ 464 $ 70 $ (286 ) $ (289 ) $ (125 ) $ (165 ) Amounts recognized in Accumulated other comprehensive income (AOCI) Prior service cost (credit) $ 13 $ (7 ) $ 1 $ (3 ) Net actuarial loss 534 841 $ 77 $ 74 18 40 Amount recognized in AOCI $ 547 $ 834 $ 77 $ 74 $ 19 $ 37 At December 31, 2017 , the fair value of the qualified pension plan assets was more than both the accumulated benefit obligation and the projected benefit obligation. PNC Pension Plan Assets The long-term investment strategy for pension plan assets in our qualified pension plan (the Plan) is to: • Meet present and future benefit obligations to all participants and beneficiaries, • Cover reasonable expenses incurred to provide such benefits, including expenses incurred in the administration of the Trust and the Plan, • Provide sufficient liquidity to meet benefit and expense payment requirements on a timely basis, and • Provide a total return that, over the long term, maximizes the ratio of trust assets to liabilities by maximizing investment return, at an appropriate level of risk. The Plan’s named investment fiduciary has the ability to make short to intermediate term asset allocation shifts under the dynamic asset allocation strategy based on factors such as the Plan’s funded status, the named investment fiduciary’s view of return on equities relative to long term expectations, the named investment fiduciary’s view on the direction of interest rates and credit spreads, and other relevant financial or economic factors which would be expected to impact the ability of the Trust to meet its obligation to participants and beneficiaries. Accordingly, the allowable asset allocation ranges have been updated to incorporate the flexibility required by the dynamic allocation policy. The asset strategy allocations for the Trust at the end of 2017 and 2016 , and the target allocation range at the end of 2017 , by asset category, are as follows. Table 73 : Asset Strategy Allocations Target Allocation Range Percentage of Plan Assets by Strategy at December 31 PNC Pension Plan 2017 2016 Asset Category Domestic Equity 20 – 40% 30 % 28 % International Equity 10 – 25% 24 % 21 % Private Equity 0 – 15% 9 % 8 % Total Equity 40 – 70% 63 % 57 % Domestic Fixed Income 10 – 40% 16 % 16 % High Yield Fixed Income 0 – 25% 10 % 12 % Total Fixed Income 10 – 65% 26 % 28 % Real estate 0 – 15% 5 % 5 % Other 0 – 10% 6 % 10 % Total 100 % 100 % 100 % The asset category represents the allocation of Plan assets in accordance with the investment objective of each of the Plan’s investment managers. Certain domestic equity investment managers utilize derivatives and fixed income securities as described in their Investment Management Agreements to achieve their investment objective under the Investment Policy Statement. Other investment managers may invest in eligible securities outside of their assigned asset category to meet their investment objectives. The actual percentage of the fair value of total Plan assets held as of December 31, 2017 for equity securities, fixed income securities, real estate and all other assets are 70% , 17% , 5% and 8% , respectively. We believe that, over the long term, asset allocation is the single greatest determinant of risk. Asset allocation will deviate from the target percentages due to market movement, cash flows, investment manager performance and implementation of shifts under the dynamic asset allocation policy. Material deviations from the asset allocation targets can alter the expected return and risk of the Trust. On the other hand, frequent rebalancing of the asset allocation targets may result in significant transaction costs, which can impair the Trust’s ability to meet its investment objective. Accordingly, the Trust portfolio is periodically rebalanced to maintain asset allocation within the target ranges described above. In addition to being diversified across asset classes, the Trust is diversified within each asset class. Secondary diversification provides a reasonable basis for the expectation that no single security or class of securities will have a disproportionate impact on the total risk and return of the Trust. Where investment strategies permit the use of derivatives and/or currency management, language is incorporated in the managers’ guidelines to define allowable and prohibited transactions and/or strategies. Derivatives are typically employed by investment managers to modify risk/return characteristics of their portfolio(s), implement asset allocation changes in a cost effective manner, or reduce transaction costs. Under the managers’ investment guidelines, derivatives may not be used solely for speculation or leverage. Derivatives are to be used only in circumstances where they offer the most efficient economic means of improving the risk/reward profile of the portfolio. Fair Value Measurements As further described in Note 6 Fair Value , GAAP establishes the framework for measuring fair value, including a hierarchy used to classify the inputs used in measuring fair value. A description of the valuation methodologies used for assets measured at fair value at both December 31, 2017 and December 31, 2016 follows: • Money market funds are valued at the net asset value of the shares held by the pension plan at year end. • U.S. government and agency securities, corporate debt and common stock are valued at the closing price reported on the active market on which the individual securities are traded. If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models or quoted prices of securities with similar characteristics. Such securities are generally classified within Level 2 of the valuation hierarchy but may be a Level 3 depending on the level of liquidity and activity in the market for the security. • Other investments held by the pension plan include derivative financial instruments, which are recorded at estimated fair value as determined by third-party appraisals and pricing models, and group annuity contracts, which are measured at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit-worthiness of the issuer. Also included in other investments is preferred stock valued at the closing price reported on an active market on which the securities are traded. • Investments measured at net asset value include collective trust fund investments and limited partnerships. Collective trust fund investments are valued based upon the units of such collective trust fund held by the Plan at year end multiplied by the respective unit value. The unit value of the collective trust fund is based upon significant observable inputs, although it is not based upon quoted marked prices in an active market. The underlying investments of the collective trust funds consist primarily of equity securities, debt obligations, short-term investments, and other marketable securities. Due to the nature of these securities, there are no unfunded commitments or redemption restrictions. Limited partnerships are valued by investment managers based on recent financial information used to estimate fair value. The unit value of limited partnerships is based upon significant observable inputs, although it is not based upon quoted marked prices in an active market. In accordance with ASC 820-10, collective trust fund investments and limited partnerships are not classified in the fair value hierarchy. These methods may result in fair value calculations that may not be indicative of net realizable values or future fair values. Furthermore, while the pension plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2017 and 2016 . Table 74 : Pension Plan Assets - Fair Value Hierarchy Fair Value Measurements Using: December 31, 2017 - in millions Fair Value Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest bearing cash $ 11 $ 10 $ 1 Money market funds 339 339 U.S. government and agency securities 338 233 105 Corporate debt 583 578 $ 5 Common stock 804 791 13 Mutual Funds 271 271 Other 77 1 69 7 Investments measured at net asset value (a) 2,830 Total $ 5,253 $ 1,374 $ 1,037 $ 12 December 31, 2016 - in millions Interest bearing cash $ 45 $ 35 $ 10 Money market funds 404 404 U.S. government and agency securities 285 158 127 Corporate debt 580 572 $ 8 Common stock 652 645 7 Other 60 60 Investments measured at net asset value (a) 2,591 Total $ 4,617 $ 1,242 $ 776 $ 8 (a) In accordance with ASC 820-10, collective trust fund investments and limited partnerships are measured at fair value using the NAV per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheet. The following table provides information regarding our estimated future cash flows related to our various plans. Table 75 : Estimated Cash Flows Pension Plans Postretirement Benefits In millions Qualified Pension Nonqualified Pension Gross PNC Benefit Payments Reduction in PNC Benefit Payments Due to Medicare Part D Subsidy Estimated 2018 employer contributions $ 28 $ 26 Estimated future benefit payments 2018 $ 295 $ 28 $ 26 2019 $ 303 $ 25 $ 27 2020 $ 315 $ 24 $ 27 2021 $ 318 $ 23 $ 26 2022 $ 318 $ 22 $ 26 2023-2027 $ 1,573 $ 100 $ 123 $ 2 The qualified pension plan contributions are deposited into the Trust, and the qualified pension plan benefit payments are paid from the Trust. We do not expect to be required to make a contribution to the qualified plan for 2018 based on the funding calculations under the Pension Protection Act of 2006. For the other plans, total contributions and the benefit payments are the same and represent expected benefit amounts, which are paid from general assets. Postretirement benefits are net of participant contributions. Estimated cash flows reflect the partial funding of postretirement medical and life insurance obligations in the VEBA. The components of net periodic benefit cost/(income) and other amounts recognized in Other comprehensive income (OCI) were as follows. Table 76 : Components of Net Periodic Benefit Cost Qualified Pension Plan Nonqualified Pension Plan Postretirement Benefits Year ended December 31 – in millions 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net periodic cost consists of: Service cost (a) $ 160 $ 102 $ 107 $ 3 $ 3 $ 3 $ 5 6 $ 5 Interest cost 179 186 177 10 12 11 14 15 15 Expected return on plan assets (285 ) (281 ) (297 ) (5 ) (6 ) Amortization of prior service cost/(credit) (3 ) (7 ) (9 ) (1 ) (1 ) (1 ) Amortization of actuarial (gain)/loss 43 45 31 4 5 7 Net periodic cost (benefit) 94 45 9 17 20 21 13 14 19 Other changes in plan assets and benefit obligations recognized in Current year prior service cost/(credit) 17 2 Amortization of prior service (cost)/credit 3 7 9 1 1 1 Current year actuarial loss/(gain) (264 ) 91 152 7 7 (10 ) (22 ) 17 (9 ) Amortization of actuarial gain/(loss) (43 ) (45 ) (31 ) (4 ) (5 ) (7 ) Total recognized in OCI (287 ) 53 130 3 2 (17 ) (19 ) 18 (8 ) Total amounts recognized in net periodic cost and OCI $ (193 ) $ 98 $ 139 $ 20 $ 22 $ 4 $ (6 ) $ 32 $ 11 (a) 2017 Qualified Pension service cost includes $57 million of additional service cost due to the special, one-time cash balance credit announced at the end of 2017. The weighted-average assumptions used (as of the beginning of each year) to determine the net periodic costs shown in Table 76 were as follows. Table 77 : Net Period Costs - Assumptions Net Periodic Cost Determination Year ended December 31 2017 2016 2015 Discount rate Qualified pension 4.00 % 4.25 % 3.95 % Nonqualified pension 3.80 % 3.95 % 3.65 % Postretirement benefits 3.90 % 4.15 % 3.80 % Rate of compensation increase 3.50 % 3.50 % 4.00 % Assumed health care cost trend rate Initial trend 7.00 % 7.25 % 7.50 % Ultimate trend 5.00 % 5.00 % 5.00 % Year ultimate trend reached 2025 2025 2025 Expected long-term return on plan 6.38 % 6.75 % 6.75 % The weighted-average assumptions used (as of the end of each year) to determine year end obligations for pension and postretirement benefits were as follows. Table 78 : Other Pension Assumptions Year ended December 31 2017 2016 Discount rate Qualified pension 3.60 % 4.00 % Nonqualified pension 3.45 % 3.80 % Postretirement benefits 3.55 % 3.90 % Rate of compensation increase (average) 3.50 % 3.50 % Assumed health care cost trend rate Initial trend 6.75 % 7.00 % Ultimate trend 5.00 % 5.00 % Year ultimate trend reached 2025 2025 The discount rates are determined independently for each plan by comparing the expected future benefits that will be paid under each plan with yields available on high quality corporate bonds of similar duration. For this analysis, 10% of bonds with the highest yields and 40% with the lowest yields were removed from the bond universe. The expected return on plan assets is a long-term assumption established by considering historical and anticipated returns of the asset classes invested in by the pension plan and the allocation strategy currently in place among those classes. For purposes of setting and reviewing this assumption, “long- term” refers to the period over which the plan’s projected benefit obligations will be disbursed. We review this assumption at each measurement date and adjust it if warranted. Our selection process references certain historical data and the current environment, but primarily utilizes qualitative judgment regarding future return expectations. We also examine the assumption used by other companies with similar pension investment strategies. Taking into account all of these factors, the expected long-term return on plan assets for determining net periodic pension cost for 2017 was 6.375% . We are reducing our expected long-term return on assets to 6.000% for determining pension cost for 2018 . This decision was made after considering the views of both internal and external capital market advisors, particularly with regard to the effects of the recent economic environment on long-term prospective equity and fixed income returns. PNC’s net periodic benefit cost recognized for the plans is sensitive to the discount rate and expected long-term return on plan assets. With all other assumptions held constant, a .5% decline in the discount rate would have resulted in an immaterial increase in net periodic benefit cost for the qualified pension plan in 2017 , and to be recognized in 2018 . For the nonqualified pension plan and postretirement benefits, a .5% decline in the discount rate would also have resulted in an immaterial increase in net periodic benefit cost. The health care cost trend rate assumptions shown in Tables 77 and 78 relate only to the postretirement benefit plans. The effect of a one-percentage-point increase or decrease in assumed health care cost trend rates would be insignificant. Defined Contribution Plans The PNC Incentive Savings Plan (ISP) is a qualified defined contribution plan that covers all of our eligible employees. Effective January 1, 2015, newly-hired full time employees and part-time employees who became eligible to participate in the ISP after that date are automatically enrolled in the ISP with a deferral rate equal to 4% of eligible compensation in the absence of an affirmative election otherwise. Employee benefits expense related to the ISP was $125 million in 2017 , $122 million in 2016 and $126 million in 2015 , representing cash contributed to the ISP by PNC. The ISP is a 401(k) Plan and includes an employee stock ownership (ESOP) feature. Employee contributions are invested in a number of investment options, including pre mixed portfolios and individual core funds, available under the ISP at the direction of the employee. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Stock Based Compensation Plans | S TOCK B ASED C OMPENSATION P LANS We have long-term incentive award plans (Incentive Plans) that provide for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, incentive shares/performance units, restricted shares, restricted share units, other share-based awards and dollar-denominated awards to executives and, other than incentive stock options, to non-employee directors. Certain Incentive Plan awards may be paid in stock, cash or a combination of stock and cash. We typically grant a substantial portion of our stock-based compensation awards during the first quarter of each year. Total compensation expense recognized related to all share-based payment arrangements was approximately $.2 billion during each of 2017 , 2016 and 2015 . The total tax benefit recognized related to compensation expense on all share-based payment arrangements was approximately $.1 billion during each of 2017 , 2016 and 2015 . At December 31, 2017 , there was $.2 billion of unamortized share-based compensation expense related to nonvested equity compensation arrangements granted under the Incentive Plans. This unamortized cost is expected to be recognized as expense over a period of no longer than 5 years. Nonqualified Stock Options We did not grant any stock options in 2017 , 2016 or 2015 . Generally, options become exercisable in installments after the grant date. No option can be exercised after 10 years from its grant date. Payment of the option exercise price may be in cash or by surrendering shares of common stock at market value on the exercise date. The exercise price may also be paid by using previously owned shares. The following table represents the stock option activity for 2017 . Table 79 : Stock Options - Rollforward (a) Year ended Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, January 1 3 $ 55.16 Exercised (2 ) $ 53.22 Outstanding, 1 $ 58.02 2.6 years $ 112 Vested and exercisable, 1 $ 58.02 2.6 years $ 112 (a) Cancelled stock options during 2017 were insignificant. To determine stock-based compensation expense, the grant date fair value is applied to the options granted with a reduction for estimated forfeitures. We recognize compensation expense for stock options on a straight-line basis over the specified vesting period. At December 31, 2016 and 2015 , options for 3 million and 5 million shares of common stock were exercisable at a weighted-average price of $55.16 and $55.42 , respectively. The total intrinsic value of options exercised was approximately $.1 billion during 2017 , 2016 and 2015 . Cash received from option exercises under all Incentive Plans was approximately $.1 billion for 2017 , 2016 and 2015 . The tax benefit realized from option exercises under all Incentive Plans was insignificant for 2017 , 2016 and 2015 . Shares of common stock available during the next year for the granting of options and other awards under the Incentive Plans were approximately 36 million shares at December 31, 2017 . Total shares of PNC common stock authorized for future issuance under all equity compensation plans totaled approximately 37 million shares at December 31, 2017 . During 2017 , we issued approximately 2 million common shares from treasury stock in connection with stock option exercise activity. As with past exercise activity, we currently intend to utilize primarily treasury stock for any future stock option exercises. Incentive/Performance Unit Awards and Restricted Share/Restricted Share Unit Awards The fair value of nonvested incentive/performance unit awards and restricted share/restricted share unit awards is initially determined based on prices not less than the market value of our common stock on the date of grant with a reduction for estimated forfeitures. The value of certain incentive/performance unit awards is subsequently remeasured based on the achievement of one or more financial and other performance goals. Additionally, certain incentive/performance unit awards require subsequent adjustment to their current market value due to certain discretionary risk review triggers. The weighted-average grant date fair value of incentive/performance unit awards and restricted share/restricted share unit awards granted in 2017 , 2016 and 2015 was $122.10 , $78.37 and $91.57 per share, respectively. The total intrinsic value of incentive/performance unit and restricted share/restricted share unit awards vested during 2017 , 2016 and 2015 was approximately $.2 billion , $.1 billion and $.2 billion , respectively. We recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program. Table 80 : Nonvested Incentive/Performance Unit Awards and Restricted Share/Restricted Share Unit Awards Rollforward (a) Shares in millions Nonvested Incentive/ Performance Units Shares Weighted- Average Grant Date Fair Value Nonvested Restricted Share/ Restricted Share Units Weighted- Average Grant Date Fair Value December 31, 2016 2 $ 81.42 3 $ 83.27 Granted (b) 1 $ 122.13 1 $ 122.09 Vested/Released (b) (1 ) $ 78.69 (1 ) $ 80.69 December 31, 2017 2 $ 94.29 3 $ 95.64 (a) Forfeited awards during 2017 were insignificant. (b) Includes adjustments for achieving specific performance goals for Incentive/ Performance Unit Share Awards granted in prior periods. In Table 80 , the units and related weighted-average grant date fair value of the incentive/performance unit share awards exclude the effect of dividends on the underlying shares, as those dividends will be paid in cash if and when the underlying shares are issued to the participants. BlackRock Long-term Incentive Plans (LTIP) BlackRock adopted the 2002 LTIP program to help attract and retain qualified professionals. At that time, we agreed to transfer up to four million shares of BlackRock common stock to fund a portion of the 2002 LTIP program and future LTIP programs approved by BlackRock’s Board of Directors. In 2009, our obligation to deliver any remaining BlackRock common shares was replaced with an obligation to deliver shares of BlackRock’s Series C Preferred Stock held by us. In 2017 , we transferred .52 million shares of BlackRock Series C Preferred Stock to BlackRock in connection with our obligation. At December 31, 2017 , we held approximately .25 million shares of BlackRock Series C Preferred Stock which were available to fund our obligations. See Note 23 Subsequent Events for information on our January 31, 2018 transfer of 0.1 million shares of the Series C Preferred Stock to BlackRock to satisfy a portion of our LTIP obligation. |
Financial Derivatives
Financial Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivatives | F INANCIAL D ERIVATIVES We use derivative financial instruments primarily to help manage exposure to interest rate, market and credit risk and reduce the effects that changes in interest rates may have on net income, the fair value of assets and liabilities, and cash flows. We also enter into derivatives with customers to facilitate their risk management activities. Derivatives represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash or another type of asset to the other party based on a notional amount and an underlying as specified in the contract. Derivative transactions are often measured in terms of notional amount, but this amount is generally not exchanged and it is not recorded on the balance sheet. The notional amount is the basis to which the underlying is applied to determine required payments under the derivative contract. The underlying is a referenced interest rate (commonly LIBOR), security price, credit spread or other index. Residential and commercial real estate loan commitments associated with loans to be sold also qualify as derivative instruments. The following table presents the notional amounts and gross fair values of all derivative assets and liabilities held by us. Table 81 : Total Gross Derivatives December 31, 2017 December 31, 2016 In millions Notional / Contract Amount Asset Fair Value (a) Liability Fair Value (b) Notional / Contract Amount Asset Fair Value (a) Liability Fair Value (b) Derivatives used for hedging under GAAP Interest rate contracts (c): Fair value hedges (d) $ 34,059 $ 114 $ 94 $ 34,010 $ 551 $ 214 Cash flow hedges (d) 23,875 60 6 20,831 313 71 Foreign exchange contracts: Net investment hedges 1,060 11 945 25 Total derivatives designated for hedging $ 58,994 $ 174 $ 111 $ 55,786 $ 889 $ 285 Derivatives not used for hedging under GAAP Derivatives used for mortgage banking activities (e): Interest rate contracts: Swaps (d) $ 48,335 $ 162 $ 42 $ 49,071 $ 783 $ 505 Futures (f) 47,494 36,264 Mortgage-backed commitments 8,999 19 9 13,317 96 56 Other 2,530 11 2 31,907 28 4 Subtotal 107,358 192 53 130,559 907 565 Derivatives used for customer-related activities: Interest rate contracts: Swaps (d) 194,042 2,079 1,772 173,777 2,373 2,214 Futures (f) 3,453 4,053 Mortgage-backed commitments 2,228 2 2 2,955 10 8 Other 17,775 75 36 16,203 55 53 Subtotal 217,498 2,156 1,810 196,988 2,438 2,275 Foreign exchange contracts and other 27,330 349 332 21,889 342 309 Subtotal 244,828 2,505 2,142 218,877 2,780 2,584 Derivatives used for other risk management activities: Foreign exchange contracts and other (g) 7,445 3 550 5,581 40 405 Total derivatives not designated for hedging $ 359,631 $ 2,700 $ 2,745 $ 355,017 $ 3,727 $ 3,554 Total gross derivatives $ 418,625 $ 2,874 $ 2,856 $ 410,803 $ 4,616 $ 3,839 Less: Impact of legally enforceable master netting agreements (d) (1,054 ) (1,054 ) (2,460 ) (2,460 ) Less: Cash collateral received/paid (d) (636 ) (763 ) (657 ) (484 ) Total derivatives $ 1,184 $ 1,039 $ 1,499 $ 895 (a) Included in Other assets on our Consolidated Balance Sheet. (b) Included in Other liabilities on our Consolidated Balance Sheet. (c) Represents primarily swaps. (d) In the first quarter of 2017, PNC changed its accounting treatment for variation margin related to certain derivative instruments cleared through a central clearing house. Previously, variation margin was treated as collateral subject to offsetting. As a result of changes made by the clearing house to its rules governing such instruments with its counterparties, effective for the first quarter of 2017, variation margin is treated as a settlement payment on the derivative instrument. The impact at December 31, 2017 was a reduction of gross derivative assets and gross derivative liabilities by $.8 billion and $.7 billion , respectively. The accounting change had no impact on the net fair value of the derivative assets and liabilities that otherwise would have been reported on our Consolidated Balance Sheet. See Table 85 for more information. (e) Includes both residential and commercial mortgage banking activities. (f) Futures contracts settle in cash daily and, therefore, no derivative asset or derivative liability is recognized on our Consolidated Balance Sheet. (g) Includes our obligation to fund a portion of certain BlackRock LTIP programs and the swaps entered into in connection with sales of a portion of Visa Class B common shares. All derivatives are carried on our Consolidated Balance Sheet at fair value. Derivative balances are presented on the Consolidated Balance Sheet on a net basis taking into consideration the effects of legally enforceable master netting agreements and, when appropriate, any related cash collateral exchanged with counterparties. Further discussion regarding the offsetting rights associated with these legally enforceable master netting agreements is included in the Offsetting, Counterparty Credit Risk, and Contingent Features section below. Any nonperformance risk, including credit risk, is included in the determination of the estimated net fair value of the derivatives. Further discussion on how derivatives are accounted for is included in Note 1 Accounting Policies. Derivatives Designated As Hedging Instruments under GAAP Certain derivatives used to manage interest rate and foreign exchange risk as part of our asset and liability risk management activities are designated as accounting hedges under GAAP. Derivatives hedging the risks associated with changes in the fair value of assets or liabilities are considered fair value hedges, derivatives hedging the variability of expected future cash flows are considered cash flow hedges, and derivatives hedging a net investment in a foreign subsidiary are considered net investment hedges. Designating derivatives as accounting hedges allows for gains and losses on those derivatives, to the extent effective, to be recognized in the income statement in the same period the hedged items affect earnings. Fair Value Hedges We enter into receive-fixed, pay-variable interest rate swaps to hedge changes in the fair value of outstanding fixed-rate debt caused by fluctuations in market interest rates. We also enter into pay-fixed, receive-variable interest rate swaps and zero-coupon swaps to hedge changes in the fair value of fixed rate and zero-coupon investment securities caused by fluctuations in market interest rates. For these hedge relationships, we use statistical regression analysis to assess hedge effectiveness at both the inception of the hedge relationship and on an ongoing basis. There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for all periods presented. Further detail regarding gains (losses) on fair value hedge derivatives and related hedged items is presented in the following table: Table 82 : Gains (Losses) on Derivatives and Related Hedged Items – Fair Value Hedges (a) Year ended December 31, 2017 December 31, 2016 December 31, 2015 In millions Hedged Items Location Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Related Hedged Items Recognized in Income Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Related Hedged Items Recognized in Income Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Related Hedged Items Recognized in Income Interest rate contracts U.S. Treasury and Government Agencies and Other Debt Securities Investment securities (interest income) $ 48 $ (50 ) $ 142 $ (141 ) Interest rate contracts Subordinated Debt and Bank Notes and Senior Debt Borrowed funds (interest expense) (284 ) 268 (332 ) 299 $ (108 ) $ 67 Total (a) $ (236 ) $ 218 $ (190 ) $ 158 $ (108 ) $ 67 (a) The difference between the gains (losses) recognized in income on derivatives and their related hedged items represents the ineffective portion of the change in value of our fair value hedge derivatives. Cash Flow Hedges We enter into receive-fixed, pay-variable interest rate swaps to modify the interest rate characteristics of designated commercial loans from variable to fixed in order to reduce the impact of changes in future cash flows due to market interest rate changes. For these cash flow hedges, any changes in the fair value of the derivatives that are effective in offsetting changes in the forecasted interest cash flows are recorded in Accumulated other comprehensive income and are reclassified to interest income in conjunction with the recognition of interest received on the loans. We use statistical regression analysis to assess the effectiveness of these hedge relationships at both the inception of the hedge relationship and on an ongoing basis. We also periodically enter into forward purchase and sale contracts to hedge the variability of the consideration that will be paid or received related to the purchase or sale of investment securities. The forecasted purchase or sale is consummated upon gross settlement of the forward contract itself. As a result, hedge ineffectiveness, if any, is typically minimal. Gains and losses on these forward contracts are recorded in Accumulated other comprehensive income and are recognized in earnings when the hedged cash flows affect earnings. In the 12 months that follow December 31, 2017 , we expect to reclassify net derivative gains of $102 million pretax, or $81 million after-tax, from Accumulated other comprehensive income to interest income for both cash flow hedge strategies. This reclassified amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31, 2017 . As of December 31, 2017 , the maximum length of time over which forecasted transactions are hedged is seven years . During 2017 , 2016 and 2015 , there were no gains or losses from cash flow hedge derivatives reclassified to earnings because it became probable that the original forecasted transaction would not occur. There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness related to either cash flow hedge strategy for all periods presented. Further detail regarding gains (losses) on derivatives and related cash flows is presented in the following table: Table 83 : Gains (Losses) on Derivatives and Related Cash Flows – Cash Flow Hedges (a) (b) Year ended December 31 In millions 2017 2016 2015 Gains (losses) on derivatives recognized in OCI – (effective portion) $ (90 ) $ 100 $ 415 Less: Gains (losses) reclassified from accumulated OCI into income – (effective portion) Interest income $ 180 $ 253 $ 293 Noninterest income 17 (5 ) Total gains (losses) reclassified from accumulated OCI into income – (effective portion) $ 197 $ 253 $ 288 Net unrealized gains (losses) on cash flow hedge derivatives $ (287 ) $ (153 ) $ 127 (a) All cash flow hedge derivatives are interest rate contracts as of December 31, 2017 , December 31, 2016 and December 31, 2015 . (b) The amount of cash flow hedge ineffectiveness recognized in income was not significant for the periods presented. Net Investment Hedges We enter into foreign currency forward contracts to hedge non-U.S. Dollar net investments in foreign subsidiaries against adverse changes in foreign exchange rates. We assess whether the hedging relationship is highly effective in achieving offsetting changes in the value of the hedge and hedged item by qualitatively verifying that the critical terms of the hedge and hedged item match at the inception of the hedging relationship and on an ongoing basis. Net investment hedge derivatives are classified as foreign exchange contracts. There were no components of derivative gains or losses excluded from the assessment of the hedge effectiveness for all periods presented. For 2017 , 2016 and 2015 , there was no net investment hedge ineffectiveness. Net gains (losses) on net investment hedge derivatives recognized in OCI were $(81) million in 2017 , $186 million in 2016 and $60 million in 2015 . Derivatives Not Designated As Hedging Instruments under GAAP Residential mortgage loans that will be sold in the secondary market, and the related loan commitments, which are considered derivatives, are accounted for at fair value. Changes in the fair value of the loans and commitments due to interest rate risk are hedged with forward contracts to sell mortgage-backed securities, as well as U.S. Treasury and Eurodollar futures and options. Gains and losses on the loans and commitments held for sale and the derivatives used to economically hedge them are included in Residential mortgage noninterest income on the Consolidated Income Statement. Residential mortgage servicing rights are accounted for at fair value with changes in fair value influenced primarily by changes in interest rates. Derivatives used to hedge the fair value of residential mortgage servicing rights include interest rate futures, swaps, options, and forward contracts to purchase mortgage-backed securities. Gains and losses on residential mortgage servicing rights and the related derivatives used for hedging are included in Residential mortgage noninterest income. Commercial mortgage loans held for sale and the related loan commitments, which are considered derivatives, are accounted for at fair value. Derivatives used to economically hedge these loans and commitments from changes in fair value due to interest rate risk and credit risk include forward loan sale contracts, interest rate swaps, and credit default swaps. Gains and losses on the commitments, loans and derivatives are included in Other noninterest income. Derivatives used to economically hedge the change in value of commercial mortgage servicing rights include interest rate futures, swaps and options. Gains or losses on these derivatives are included in Corporate services noninterest income. The residential and commercial mortgage loan commitments associated with loans to be sold which are accounted for as derivatives are valued based on the estimated fair value of the underlying loan and the probability that the loan will fund within the terms of the commitment. The fair value also takes into account the fair value of the embedded servicing right. We offer derivatives to our customers in connection with their risk management needs. These derivatives primarily consist of interest rate swaps, interest rate caps and floors, swaptions and foreign exchange contracts. We primarily manage our market risk exposure from customer transactions by entering into a variety of hedging transactions with third-party dealers. Gains and losses on customer-related derivatives are included in Other noninterest income. Included in the customer, mortgage banking risk management, and other risk management portfolios are written interest-rate caps and floors entered into with customers and for risk management purposes. We receive an upfront premium from the counterparty and are obligated to make payments to the counterparty if the underlying market interest rate rises above or falls below a certain level designated in the contract. Our ultimate obligation under written options is based on future market conditions. We have entered into risk participation agreements to share some of the credit exposure with other counterparties related to interest rate derivative contracts or to take on credit exposure to generate revenue. The notional amount of risk participation agreements sold was $3.6 billion at December 31, 2017 and $4.3 billion at December 31, 2016 . Assuming all underlying third party customers referenced in the swap contracts defaulted, the exposure from these agreements would be $.1 billion at both December 31, 2017 and December 31, 2016 based on the fair value of the underlying swaps. Further detail regarding the gains (losses) on derivatives not designated in hedging relationships is presented in the following table: Table 84 : Gains (Losses) on Derivatives Not Designated for Hedging under GAAP Year ended December 31 In millions 2017 2016 2015 Derivatives used for mortgage banking activities: Interest rate contracts (a) $ 75 $ 152 $ 220 Derivatives used for customer-related activities: Interest rate contracts 95 78 71 Foreign exchange contracts and other 146 84 78 Gains (losses) from customer-related activities (b) 241 162 149 Derivatives used for other risk management activities: Foreign exchange contracts and other (c) (525 ) (7 ) 282 Gains (losses) from other risk management activities (b) (525 ) (7 ) 282 Total gains (losses) from derivatives not designated as hedging instruments $ (209 ) $ 307 $ 651 (a) Included in Residential mortgage, Corporate services and Other noninterest income. (b) Included in Other noninterest income. (c) Includes BlackRock LTIP funding obligation and the swaps entered into in connection with sales of a portion of Visa Class B common shares. Offsetting, Counterparty Credit Risk, and Contingent Features We generally utilize a net presentation on the Consolidated Balance Sheet for those derivative financial instruments entered into with counterparties under legally enforceable master netting agreements. The master netting agreements reduce credit risk by permitting the closeout netting of all outstanding derivative instruments under the master netting agreement with the same counterparty upon the occurrence of an event of default. The master netting agreement also may require the exchange of cash or marketable securities to collateralize either party’s net position. In certain cases, minimum thresholds must be exceeded before any collateral is exchanged. Collateral is typically exchanged daily on unsettled positions based on the net fair value of the positions with the counterparty as of the preceding day. Collateral representing initial margin, which is based on potential future exposure, is also required to be pledged by us in relation to derivative instruments with central clearing house counterparties. Any cash collateral exchanged with counterparties under these master netting agreements is also netted, when appropriate, against the applicable derivative fair values on the Consolidated Balance Sheet. However, the fair value of any securities held or pledged is not included in the net presentation on the balance sheet. In order for derivative instruments under a master netting agreement to be eligible for closeout netting under GAAP, we must conduct sufficient legal review to conclude with a well-founded basis that the offsetting rights included in the master netting agreement would be legally enforceable upon an event of default, including upon an event of bankruptcy, insolvency, or a similar proceeding of the counterparty. Enforceability is evidenced by a legal opinion that supports, with sufficient confidence, the enforceability of the master netting agreement in such circumstances. Table 85 shows the impact legally enforceable master netting agreements had on our derivative assets and derivative liabilities as of December 31, 2017 and December 31, 2016 . The table includes cash collateral held or pledged under legally enforceable master netting agreements. The table also includes the fair value of any securities collateral held or pledged under legally enforceable master netting agreements. Cash and securities collateral amounts are included in the table only to the extent of the related net derivative fair values. Table 85 : Derivative Assets and Liabilities Offsetting Gross Fair Value Amounts Offset on the Consolidated Balance Sheet Net Fair Value Securities Collateral Held / (Pledged) Under Master Netting Agreements Net Amounts December 31, 2017 Fair Value Offset Amount Cash Collateral Derivative assets Interest rate contracts: Over-the-counter cleared (a) $ 827 $ 251 $ 567 $ 9 $ 9 Over-the-counter 1,695 668 67 960 $ 32 928 Foreign exchange and other contracts 352 135 2 215 215 Total derivative assets $ 2,874 $ 1,054 $ 636 $ 1,184 (b) $ 32 $ 1,152 Derivative liabilities Interest rate contracts: Over-the-counter cleared (a) $ 260 $ 251 $ 9 $ 9 Over-the-counter 1,703 662 $ 669 372 372 Foreign exchange and other contracts 893 141 94 658 658 Total derivative liabilities $ 2,856 $ 1,054 $ 763 $ 1,039 (c) $ 1,039 December 31, 2016 Derivative assets Interest rate contracts: Over-the-counter cleared (a) $ 1,498 $ 940 $ 480 $ 78 $ 78 Exchange-traded 9 9 9 Over-the-counter 2,702 1,358 164 1,180 $ 62 1,118 Foreign exchange and other contracts 407 162 13 232 232 Total derivative assets $ 4,616 $ 2,460 $ 657 $ 1,499 (b) $ 62 $ 1,437 Derivative liabilities Interest rate contracts: Over-the-counter cleared (a) $ 1,060 $ 940 $ 25 $ 95 $ 95 Exchange-traded 1 1 1 Over-the-counter 2,064 1,395 431 238 238 Foreign exchange and other contracts 714 125 28 561 561 Total derivative liabilities $ 3,839 $ 2,460 $ 484 $ 895 (c) $ 895 (a) Reflects our first quarter 2017 change in accounting treatment for variation margin for certain derivative instruments cleared through a central clearing house. The accounting change reduced the asset and liability gross fair values with corresponding reductions to the fair value and cash collateral offsets, resulting in no changes to the net fair value amounts. (b) Represents the net amount of derivative assets included in Other assets on our Consolidated Balance Sheet. (c) Represents the net amount of derivative liabilities included in Other liabilities on our Consolidated Balance Sheet. Table 85 includes over-the-counter (OTC) derivatives, OTC cleared derivatives, and exchange-traded derivatives. OTC derivatives represent contracts executed bilaterally with counterparties that are not settled through an organized exchange or cleared through a central clearing house. The majority of OTC derivatives are governed by the International Swaps and Derivatives Association (ISDA) documentation or other legally enforceable industry standard master netting agreements. OTC cleared derivatives represent contracts executed bilaterally with counterparties in the OTC market that are novated to a central clearing house who then becomes our counterparty. Exchange-traded derivatives represent standardized futures and options contracts executed directly on an organized exchange. In addition to using master netting agreements and other collateral agreements to reduce credit risk associated with derivative instruments, we also seek to manage credit risk by evaluating credit ratings of counterparties and by using internal credit analysis, limits, and monitoring procedures. At December 31, 2017 , we held cash, U.S. government securities and mortgage-backed securities totaling $.9 billion under master netting agreements and other collateral agreements to collateralize net derivative assets due from counterparties, and we pledged cash totaling $1.5 billion under these agreements to collateralize net derivative liabilities owed to counterparties and to meet initial margin requirements. These totals may differ from the amounts presented in the preceding offsetting table because these totals may include collateral exchanged under an agreement that does not qualify as a master netting agreement or because the total amount of collateral held or pledged exceeds the net derivative fair values with the counterparty as of the balance sheet date due to timing or other factors, such as initial margin. To the extent not netted against the derivative fair values under a master netting agreement, the receivable for cash pledged is included in Other assets and the obligation for cash held is included in Other liabilities on our Consolidated Balance Sheet. Securities held from counterparties are not recognized on our balance sheet. Likewise securities we have pledged to counterparties remain on our balance sheet. Certain derivative agreements contain various credit-risk related contingent provisions, such as those that require our debt to maintain a specified credit rating from one or more of the major credit rating agencies. If our debt ratings were to fall below such specified ratings, the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full collateralization on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position on December 31, 2017 was $1.6 billion for which we had posted collateral of $.8 billion in the normal course of business. The maximum additional amount of collateral we would have been required to post if the credit-risk-related contingent features underlying these agreements had been triggered on December 31, 2017 would be $.8 billion . |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | E ARNINGS P ER S HARE Table 86 : Basic and Diluted Earnings Per Common Share In millions, except per share data 2017 2016 2015 Basic Net income $ 5,388 $ 3,985 $ 4,143 Less: Net income attributable to noncontrolling interests 50 82 37 Preferred stock dividends 236 209 220 Preferred discount accretion and redemptions 26 6 5 Net income attributable to common shares 5,076 3,688 3,881 Less: Dividends and undistributed earnings allocated to participating securities 23 26 17 Net income attributable to basic common shares $ 5,053 $ 3,662 $ 3,864 Basic weighted-average common shares outstanding 481 494 514 Basic earnings per common share (a) $ 10.49 $ 7.42 $ 7.52 Diluted Net income attributable to basic common shares $ 5,053 $ 3,662 $ 3,864 Less: Impact of BlackRock earnings per share dilution 16 12 18 Net income attributable to diluted common shares $ 5,037 $ 3,650 $ 3,846 Basic weighted-average common shares outstanding 481 494 514 Dilutive potential common shares 5 6 7 Diluted weighted-average common shares outstanding 486 500 521 Diluted earnings per common share (a) $ 10.36 $ 7.30 $ 7.39 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares and restricted share units with nonforfeitable dividends and dividend rights (participating securities). |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | E QUITY Preferred Stock The following table provides the number of preferred shares issued and outstanding, the liquidation value per share and the number of authorized preferred shares that are available for future use. Table 87 : Preferred Stock – Authorized, Issued and Outstanding Preferred Shares December 31 Shares in thousands Liquidation value per share 2017 2016 Authorized $1 par value 20,000 20,000 Issued and outstanding Series B $ 40 1 1 Series O $ 100,000 10 10 Series P $ 100,000 15 15 Series Q $ 100,000 5 5 Series R $ 100,000 5 5 Series S $ 100,000 5 5 Total issued and outstanding 41 41 The following table discloses information related to the preferred stock outstanding as of December 31, 2017 . Table 88 : Terms of Outstanding Preferred Stock Preferred Stock Issue Date Number of Depositary Shares Issued Fractional Interest in a share of preferred stock represented by each Depositary Share Dividend Dates (a) Annual Per Share Dividend Rate Optional Redemption Date (b) Series B (c) (c) N/A N/A Quarterly from March 10 th $ 1.80 None Series O (d) July 27, 2011 1 million 1/100 th Semi-annually beginning on February 1, 2012 6.75% until August 1, 2021 August 1, 2021 Series P (d) April 24, 2012 60 million 1/4,000 th Quarterly beginning on August 1, 2012 6.125% until May 1, 2022 May 1, 2022 Series Q (d) September 21, 2012 18 million 1/4,000 th Quarterly beginning on December 1, 2012 5.375 % December 1, 2017 Series R (d) May 7, 2013 500,000 1/100 th Semi-annually beginning on December 1, 2013 4.85% until June 1, 2023 June 1, 2023 Series S (d) November 1, 2016 525,000 1/100 th Semi-annually beginning on May 1, 2017 5.00% until November 1, 2026 November 1, 2026 (a) Dividends are payable when, as, and if declared by our Board of Directors or an authorized committee of our Board of Directors. (b) Redeemable at our option on or after the date stated. With the exception of the Series B preferred stock, redeemable at our option within 90 days of a regulatory capital treatment event as defined in the designations. (c) Cumulative preferred stock. Holders of Series B preferred stock are entitled to 8 votes per share, which is equal to the number of full shares of common stock into which the Series B preferred stock is convertible. The Series B preferred stock was issued in connection with the consolidation of Pittsburgh National Corporation and Provident National Corporation in 1983. (d) Non-Cumulative preferred stock. Each outstanding series of preferred stock other than the Series B contains restrictions on our ability to pay dividends and make other shareholder payments. Subject to limited exceptions, if dividends are not paid on any such series of preferred stock, we cannot declare dividends on or repurchase shares of our common stock. In addition, if we would like to repurchase shares of preferred stock, such repurchases must be on a pro rata basis with respect to all such series of preferred stock. Our Series K preferred stock was issued on May 21, 2008. On May 4, 2015, we redeemed all 500,000 depositary shares representing interests in our Series K preferred stock and all 50,000 shares of Series K preferred stock underlying such depositary shares, resulting in a net outflow of $500 million . In February 2018, we redeemed the Series A preferred stock of PNC REIT Corp. which had been exchangeable into shares of PNC Series H preferred stock under certain conditions relating to the capitalization or the financial condition of PNC Bank. As described below in the Perpetual Trust Securities portion of the Noncontrolling Interests section of this Note, we redeemed all $500 million of the PNC Preferred Funding Trust II securities that had been exchangeable under certain conditions into PNC Series I preferred stock. Warrants We had 3.5 million and 11.3 million warrants outstanding as of December 31, 2017 and 2016 , respectively. The reduction was due to 7.8 million warrants that were exercised during 2017 . At December 31, 2017, each warrant entitles the holder to purchase one share of PNC common stock at an exercise price of $67.24 per share. In accordance with the terms of the warrants, the warrants are exercised on a non-cash net basis with the warrant holder receiving PNC common shares determined based on the excess of the market price of PNC common stock on the exercise date over the exercise price of the warrant. In 2017 , we issued 3.5 million common shares resulting from the exercise of the warrants. The issuance of these shares resulted in a reclassification within Capital surplus with no impact on our Shareholders’ equity. These warrants were sold by the U.S. Treasury in a secondary public offering that closed on May 5, 2010 after the U.S. Treasury exchanged its TARP Warrant (issued on December 31, 2008 under the TARP Capital Purchase Program) for 16.9 million warrants. These warrants expire December 31, 2018. On January 4, 2018, PNC declared a quarterly common stock dividend on $.75 per share to shareholders of record as of January 17, 2018. In accordance with the terms of the warrants, the declaration of a dividend in excess of $.66 per share may result in an adjustment to the warrant exercise price and to the warrant share number. As a result of this dividend, the warrant exercise price was reduced from $ 67.24 to $ 67.20 per share on January 17, 2018 and the warrant share number remained 1.00 . Other Shareholders’ Equity Matters We have a dividend reinvestment and stock purchase plan. Holders of PNC common stock may participate in the plan, which provides that additional shares of common stock may be purchased at market value with reinvested dividends and voluntary cash payments. Common shares issued pursuant to this plan were .2 million shares for 2017 , .3 million for 2016 and .3 million for 2015 . At December 31, 2017 , we had reserved approximately 92 million common shares to be issued in connection with certain stock plans. We repurchased 4.4 million shares in 2015 under the stock repurchase program that the Board of Directors approved effective October 4, 2007. Effective March 31, 2015, the Board of Directors terminated this share repurchase program and effective April 1, 2015 the Board of Directors replaced it with a new stock repurchase program authorization in the amount of up to 100 million shares of PNC common stock which may be purchased on the open market or in privately negotiated transactions. Under this program authorization, we repurchased 18.6 million shares in 2017 and 22.8 million shares in 2016 . A maximum amount of 40.7 million shares remained available for repurchase under this program authorization at December 31, 2017 . This program authorization will remain in effect until fully utilized or until modified, superseded or terminated. Noncontrolling Interests Perpetual Trust Securities Our noncontrolling interests balance at December 31, 2017 reflected our March 15, 2017 redemption of $1.0 billion Fixed-to-Floating Rate Non-Cumulative Exchangeable Perpetual Trust Securities issued by PNC Preferred Funding Trusts I and II with current distribution rates of 2.61% and 2.19% , respectively. The Perpetual Trust Securities were subject to replacement capital covenants dated December 6, 2006 and March 29, 2007 benefiting PNC Capital Trust C as the sole holder of $200 million of junior subordinated debentures issued by PNC in June 1998. Upon redemption of the Perpetual Trust Securities, the replacement capital covenants terminated and such debentures ceased being covered debt with respect to the replacement capital covenants. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Other Comprehensive Income [Abstract] | |
Other Comprehensive Income | O THER C OMPREHENSIVE I NCOME Details of other comprehensive income (loss) are as follows: Table 89 : Other Comprehensive Income In millions 2017 2016 2015 Net unrealized gains (losses) on non-OTTI securities Increase in net unrealized gains (losses) on non-OTTI securities $ 29 $ (329 ) $ (494 ) Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income 25 24 27 Less: Net gains (losses) realized on sales of securities reclassified to noninterest income (12 ) 16 48 Net increase (decrease), pre-tax 16 (369 ) (569 ) Effect of income taxes (6 ) 135 208 Net increase (decrease), after-tax 10 (234 ) (361 ) Net unrealized gains (losses) on OTTI securities Increase in net unrealized gains (losses) on OTTI securities 173 61 (17 ) Less: Net gains (losses) realized on sales of securities reclassified to noninterest income 2 Less: OTTI losses realized on securities reclassified to noninterest income (1 ) (2 ) (4 ) Net increase (decrease), pre-tax 172 63 (13 ) Effect of income taxes (63 ) (23 ) 5 Net increase (decrease), after-tax 109 40 (8 ) Net unrealized gains (losses) on cash flow hedge derivatives Increase in net unrealized gains (losses) on cash flow hedge derivatives (90 ) 100 415 Less: Net gains (losses) realized as a yield adjustment reclassified to loan interest income 159 219 270 Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income 21 34 23 Less: Net gains (losses) realized on sales of securities reclassified to noninterest income 17 (5 ) Net increase (decrease), pre-tax (287 ) (153 ) 127 Effect of income taxes 105 56 (47 ) Net increase (decrease), after-tax (182 ) (97 ) 80 Pension and other postretirement benefit plan adjustments Net pension and other postretirement benefit activity 126 (41 ) (82 ) Amortization of actuarial loss (gain) reclassified to other noninterest expense 47 50 38 Amortization of prior service cost (credit) reclassified to other noninterest expense (4 ) (8 ) (10 ) Net increase (decrease), pre-tax 169 1 (54 ) Effect of income taxes (62 ) 20 Net increase (decrease), after-tax 107 1 (34 ) Other PNC’s portion of BlackRock’s OCI 52 (63 ) (39 ) Net investment hedge derivatives (81 ) 186 60 Foreign currency translation adjustments 90 (182 ) (63 ) Net increase (decrease), pre-tax 61 (59 ) (42 ) Effect of income taxes 12 (46 ) (8 ) Net increase (decrease), after-tax 73 (105 ) (50 ) Total other comprehensive income, pre-tax 131 (517 ) (551 ) Total other comprehensive income, tax effect (14 ) 122 178 Total other comprehensive income, after-tax $ 117 $ (395 ) $ (373 ) Table 90 : Accumulated Other Comprehensive Income (Loss) Components In millions, after-tax Net unrealized gains (losses) on non-OTTI securities Net unrealized gains (losses) on OTTI securities Net unrealized gains (losses) on cash flow hedge derivatives Pension and other postretirement benefit plan adjustments Other Total Balance at December 31, 2014 $ 647 $ 74 $ 350 $ (520 ) $ (48 ) $ 503 Net activity (361 ) (8 ) 80 (34 ) (50 ) (373 ) Balance at December 31, 2015 $ 286 $ 66 $ 430 $ (554 ) $ (98 ) $ 130 Net activity (234 ) 40 (97 ) 1 (105 ) (395 ) Balance at December 31, 2016 $ 52 $ 106 $ 333 $ (553 ) $ (203 ) $ (265 ) Net Activity 10 109 (182 ) 107 73 117 Balance at December 31, 2017 $ 62 $ 215 $ 151 $ (446 ) $ (130 ) $ (148 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | I NCOME T AXES The components of income tax expense are as follows: Table 91 : Components of Income Tax Expense Year ended December 31 In millions 2017 2016 2015 Current Federal $ 454 $ 871 $ 927 State 51 71 33 Total current 505 942 960 Deferred Federal (474 ) 301 320 State 71 25 84 Total deferred (403 ) 326 404 Total (a) $ 102 $ 1,268 $ 1,364 (a) The 2017 results benefited from the new federal tax legislation that was enacted on December 22, 2017. Significant components of deferred tax assets and liabilities are as follows: Table 92 : Deferred Tax Assets and Liabilities December 31 – in millions 2017 (a) 2016 Deferred tax assets Allowance for loan and lease losses $ 631 $ 976 Compensation and benefits 223 548 Partnership investments 173 307 Loss and credit carryforward 301 460 Accrued expenses 284 505 Other 131 252 Total gross deferred tax assets 1,743 3,048 Valuation allowance (40 ) (75 ) Total deferred tax assets 1,703 2,973 Deferred tax liabilities Leasing 1,034 1,374 Goodwill and intangibles 197 312 Fixed assets 206 391 Mortgage servicing rights 146 246 Net unrealized gains on securities and financial instruments 155 284 BlackRock basis difference 1,594 2,361 Other 345 371 Total deferred tax liabilities 3,677 5,339 Net deferred tax liability $ 1,974 $ 2,366 (a) Reflected the impact of new federal tax legislation that was enacted on December 22, 2017. Certain tax legislation amounts are considered reasonable estimates as of December 31, 2017. As the result of the Tax Cuts and Jobs Act signed into law on December 22, 2017, PNC recognized a benefit of $1.2 billion primarily attributable to the revaluation of net deferred tax liabilities. To the extent our accounting of certain income tax effects is complete, these tax effects have been included in the financial statements. However, to the extent our accounting for certain income tax effects is incomplete, but can be reasonably estimated, the estimated effects are included as provisional amounts in the financial statements. Based on current estimates, any adjustments to provisional amounts are not expected to be material during the measurement period. However, additional data and analysis is being collected in the preparation of our 2017 income tax returns which upon completion will validate or cause provisional amounts to be adjusted. Furthermore the newly enacted law is unclear in certain aspects, and may require additional clarification through legislative amendments or governmental agency regulations or interpretations. During the one year measurement period, which will end in December 2018, the provisional amounts may be adjusted upon obtaining, preparing and analyzing additional information about facts and circumstances that existed at the enactment date. A reconciliation between the statutory and effective tax rates follows: Table 93 : Reconciliation of Statutory and Effective Tax Rates Year ended December 31 2017 2016 2015 Statutory tax rate 35.0 % 35.0 % 35.0 % Increases (decreases) resulting from: State taxes net of federal benefit 1.5 1.2 1.4 Tax-exempt interest (2.5 ) (2.4 ) (2.3 ) Life insurance (1.8 ) (1.9 ) (1.7 ) Dividend received deduction (1.8 ) (1.8 ) (1.7 ) Tax credits (4.2 ) (4.4 ) (3.9 ) Federal deferred tax revaluation (21.7 ) Other (2.6 ) (1.6 ) (2.0 ) (a) Effective tax rate (b) 1.9 % 24.1 % 24.8 % (a) Includes tax benefits associated with settlement of acquired entity tax contingencies. (b) The effective tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax. The 2017 results benefited from the new federal tax legislation. Certain tax legislation amounts are considered reasonable estimates as of December 31, 2017. The net operating loss carryforwards at December 31, 2017 and 2016 follow: Table 94 : Net Operating Loss Carryforwards Dollars in millions December 31, December 31, Expiration Net Operating Loss Carryforwards: Federal $ 640 $ 759 2032 State $ 1,776 $ 2,345 2018 – 2036 The majority of the tax credit carryforwards expire in 2032 and were insignificant at December 31, 2017 and December 31, 2016 . All federal and most state net operating loss and credit carryforwards are from acquired entities and utilization is subject to various statutory limitations. We anticipate that we will be able to fully utilize our carryforwards for federal tax purposes, but we have recorded an insignificant valuation allowance against certain state tax carryforwards as of December 31, 2017 . If select uncertain tax positions were successfully challenged by a state, the state net operating losses listed in Table 94 could be reduced by an insignificant amount. As a result of the Tax Cuts and Jobs Act, an insignificant amount of taxes have been accrued on unremitted foreign earnings. There are no remaining foreign earnings for which U.S. deferred taxes have not been provided. Retained earnings included $.1 billion at both December 31, 2017 and December 31, 2016 in allocations for bad debt deductions of former thrift subsidiaries for which no income tax has been provided. Under current law, if certain subsidiaries use these bad debt reserves for purposes other than to absorb bad debt losses, they will be subject to Federal income tax at the current corporate tax rate. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: Table 95 : Change in Unrecognized Tax Benefits In millions 2017 2016 2015 Balance of gross unrecognized tax benefits at January 1 $ 22 $ 26 $ 77 Increases: Positions taken during a prior period 4 14 17 Decreases: Positions taken during a prior period (3 ) (14 ) (9 ) Settlements with taxing authorities (4 ) (52 ) Reductions resulting from lapse of statute of limitations (1 ) (4 ) (7 ) Balance of gross unrecognized tax benefits at December 31 $ 18 $ 22 $ 26 Favorable (unfavorable) impact if recognized $ 17 $ 18 $ 20 It is reasonably possible that the balance of unrecognized tax benefits could increase or decrease in the next twelve months due to completion of tax authorities’ exams or the expiration of statutes of limitations; however, the estimated amount is insignificant. We are subject to U.S. federal income tax as well as income tax in most states and some foreign jurisdictions. Table 96 summarizes the status of significant IRS examinations of us. Table 96 : IRS Tax Examination Status Years under examination Status at December 31 Federal 2014 – 2015 Completed 2016 Under Exam In addition, we are under continuous examinations by various state taxing authorities. With few exceptions, we are no longer subject to state and local and foreign income tax examinations by taxing authorities for periods before 2012 . For all open audits, any potential adjustments have been considered in establishing our unrecognized tax benefits as of December 31, 2017 . Our policy is to classify interest and penalties associated with income taxes as income tax expense. For 2017 and 2016 , the amount of gross interest and penalties was insignificant. At December 31, 2017 and December 31, 2016 , the related amounts of accrued interest and penalties was also insignificant. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Matters | R EGULATORY M ATTERS We are subject to the regulations of certain federal, state, and foreign agencies and undergo periodic examinations by such regulatory authorities. The ability to undertake new business initiatives (including acquisitions), the access to and cost of funding for new business initiatives, the ability to pay dividends, the ability to repurchase shares or other capital instruments, the level of deposit insurance costs, and the level and nature of regulatory oversight depend, in large part, on a financial institution’s capital strength. At December 31, 2017 and December 31, 2016 , PNC and PNC Bank, our domestic banking subsidiary, were both considered “well capitalized,” based on applicable U.S. regulatory capital ratio requirements. The following table sets forth the Transitional Basel III regulatory capital ratios at December 31, 2017 and December 31, 2016 for PNC and PNC Bank. Table 97 : Basel Regulatory Capital (a) Amount Ratios December 31 2017 2016 2017 2016 “Well Capitalized” Requirements Risk-based capital Common equity Tier 1 PNC $ 32,146 $ 31,799 10.4 % 10.6 % N/A PNC Bank $ 28,771 $ 27,896 9.7 % 9.7 % 6.5 % Tier 1 PNC $ 36,007 $ 36,101 11.6 % 12.0 % 6.0 % PNC Bank $ 28,942 $ 29,495 9.7 % 10.2 % 8.0 % Total PNC $ 42,496 $ 43,016 13.7 % 14.3 % 10.0 % PNC Bank $ 34,756 $ 35,842 11.7 % 12.4 % 10.0 % Leverage PNC $ 36,007 $ 36,101 9.9 % 10.1 % N/A PNC Bank $ 28,942 $ 29,495 8.2 % 8.6 % 5.0 % (a) Calculated using the Transitional Basel III regulatory capital methodology applicable to us during both 2017 and 2016 . The principal source of parent company cash flow is the dividends it receives from PNC Bank, which may be impacted by the following: • Capital needs, • Laws and regulations, • Corporate policies, • Contractual restrictions, and • Other factors. Also, there are statutory and regulatory limitations on the ability of national banks to pay dividends or make other capital distributions. The amount available for dividend payments to the parent company by PNC Bank without prior regulatory approval was approximately $1.6 billion at December 31, 2017 . Under federal law, a bank subsidiary generally may not extend credit to, or engage in other types of covered transactions (including the purchase of assets) with, the parent company or its non-bank subsidiaries on terms and under circumstances that are not substantially the same as comparable transactions with nonaffiliates. A bank subsidiary may not extend credit to, or engage in a covered transaction with, the parent company or a non-bank subsidiary if the aggregate amount of the bank’s extensions of credit and other covered transactions with the parent company or non-bank subsidiary exceeds 10% of the capital stock and surplus of such bank subsidiary or the aggregate amount of the bank’s extensions of credit and other covered transactions with the parent company and all non-bank subsidiaries exceeds 20% of the capital stock and surplus of such bank subsidiary. Such extensions of credit, with limited exceptions, must be at least fully collateralized in accordance with specified collateralization thresholds, with the thresholds varying based on the type of assets serving as collateral. In certain circumstances, federal regulatory authorities may impose more restrictive limitations. Federal Reserve Board regulations require depository institutions to maintain cash reserves with a Federal Reserve Bank (FRB). At December 31, 2017 , the balance outstanding at the FRB was $28.3 billion . |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2017 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | L EGAL P ROCEEDINGS We establish accruals for legal proceedings, including litigation and regulatory and governmental investigations and inquiries, when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accruals are adjusted thereafter as appropriate to reflect changed circumstances. When we are able to do so, we also determine estimates of possible losses or ranges of possible losses, whether in excess of any related accrued liability or where there is no accrued liability, for disclosed legal proceedings (“Disclosed Matters,” which are those matters disclosed in this Note 19 ). For Disclosed Matters where we are able to estimate such possible losses or ranges of possible losses, as of December 31, 2017 , we estimate that it is reasonably possible that we could incur losses in excess of related accrued liabilities, if any, in an aggregate amount of up to approximately $100 million . The estimates included in this amount are based on our analysis of currently available information and are subject to significant judgment and a variety of assumptions and uncertainties. As new information is obtained we may change our estimates. Due to the inherent subjectivity of the assessments and unpredictability of outcomes of legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to us from the legal proceedings in question. Thus, our exposure and ultimate losses may be higher, and possibly significantly so, than the amounts accrued or this aggregate amount. In our experience, legal proceedings are inherently unpredictable. One or more of the following factors frequently contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis or, if permitted to proceed as a class action, how the class will be defined; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental investigations and inquiries, the possibility of fines and penalties); the matter presents meaningful legal uncertainties, including novel issues of law; we have not engaged in meaningful settlement discussions; discovery has not started or is not complete; there are significant facts in dispute; the possible outcomes may not be amenable to the use of statistical or quantitative analytical tools; predicting possible outcomes depends on making assumptions about future decisions of courts or regulatory bodies or the behavior of other parties; and there are a large number of parties named as defendants (including where it is uncertain how damages or liability, if any, will be shared among multiple defendants). Generally, the less progress that has been made in the proceedings or the broader the range of potential results, the harder it is for us to estimate losses or ranges of losses that it is reasonably possible we could incur. As a result of these types of factors, we are unable, at this time, to estimate the losses that are reasonably possible to be incurred or ranges of such losses with respect to some of the matters disclosed, and the aggregate estimated amount provided above does not include an estimate for every Disclosed Matter. Therefore, as the estimated aggregate amount disclosed above does not include all of the Disclosed Matters, the amount disclosed above does not represent our maximum reasonably possible loss exposure for all of the Disclosed Matters. The estimated aggregate amount also does not reflect any of our exposure to matters not so disclosed, as discussed below under “Other.” We include in some of the descriptions of individual Disclosed Matters certain quantitative information related to the plaintiff’s claim against us as alleged in the plaintiff’s pleadings or other public filings or otherwise publicly available information. While information of this type may provide insight into the potential magnitude of a matter, it does not necessarily represent our estimate of reasonably possible loss or our judgment as to any currently appropriate accrual. Some of our exposure in Disclosed Matters may be offset by applicable insurance coverage. We do not consider the possible availability of insurance coverage in determining the amounts of any accruals (although we record the amount of related insurance recoveries that are deemed probable up to the amount of the accrual) or in determining any estimates of possible losses or ranges of possible losses. Interchange Litigation Beginning in June 2005, a series of antitrust lawsuits were filed against Visa ® , MasterCard ® , and several major financial institutions, including cases naming National City (since merged into The PNC Financial Services Group, Inc.) and its subsidiary, National City Bank of Kentucky (since merged into National City Bank which in turn was merged into PNC Bank). The plaintiffs in these cases are merchants operating commercial businesses throughout the U.S., as well as trade associations. Some of these cases (including those naming National City entities) were brought as class actions on behalf of all persons or business entities that have accepted Visa® or MasterCard®. The cases have been consolidated for pre-trial proceedings in the U.S. District Court for the Eastern District of New York under the caption In re Payment Card Interchange Fee and Merchant-Discount Antitrust Litigation (Master File No. 1:05-md-1720-MKB-JO). In July 2012, the parties entered into a memorandum of understanding with the class plaintiffs and an agreement in principle with certain individual plaintiffs with respect to a settlement of these cases, under which the defendants agreed to pay approximately $6.6 billion collectively to the class and individual settling plaintiffs and agreed to changes in the terms applicable to their respective card networks (including an eight-month reduction in default credit interchange rates). The parties entered into a definitive agreement with respect to this settlement in October 2012. The court granted final approval of the settlement in December 2013. Several objectors appealed the order of approval to the U.S. Court of Appeals for the Second Circuit, which issued an order in June 2016, reversing approval of the settlement and remanding for further proceedings. In November 2016, the plaintiffs filed a petition for a writ of certiorari with the U.S. Supreme Court to challenge the court of appeal’s decision. The Supreme Court denied the petition in March 2017. As a result of the reversal of the approval of the settlement, the class actions have resumed in the district court. In November 2016, the district court appointed separate interim class counsel for a proposed class seeking damages and a proposed class seeking equitable (injunctive) relief. In February 2017, each of these counsel filed a proposed amended and supplemental complaint on behalf of its respective proposed class. These complaints make similar allegations, including that the defendants conspired to monopolize and to fix the prices for general purpose card network services, that the restructuring of Visa and MasterCard, each of which included an initial public offering, violated the antitrust laws, and that the defendants otherwise imposed unreasonable restraints on trade, resulting in the payment of inflated interchange fees and other fees, which also violated the antitrust laws. In their complaints, collectively the plaintiffs seek, among other things, injunctive relief, unspecified damages (trebled under the antitrust laws) and attorneys’ fees. PNC is named as a defendant in the complaint seeking damages but is not named as a defendant in the complaint that seeks equitable relief. In September 2017, the magistrate judge at the district court granted in part and denied in part the plaintiffs’ motions to file their proposed amended complaints. The dispute over amendment arose in part from the decision in United States v. American Express, Co., 838 F.3d 179 (2d Cir. 2016), in which the court held that the relevant market in a similar complaint against American Express is “two-sided,” i.e ., requires consideration of effects on consumers as well as merchants. In October 2017, the U.S. Supreme Court granted a writ of certiorari (under the caption Ohio v. American Express Co. ) to review the court’s decision in American Express. Oral argument took place in February 2018. Previously, the plaintiffs in this litigation had alleged a one-sided market, and, as a result of the court’s decision in American Express , they sought leave to add claims based on a two-sided market. The order allowed the complaint to be amended to include allegations pertaining to a two-sided market only to the extent those claims are not time-barred, but held that the two-sided market allegations do not relate back to the time of the original complaint and are not subject to tolling. In October 2017, the plaintiffs appealed this order to the presiding district judge. National City and National City Bank entered into judgment and loss sharing agreements with Visa and certain other banks with respect to all of the above referenced litigation. We were not originally named as defendants in any of the Visa or MasterCard related antitrust litigation nor were we initially parties to the judgment or loss sharing agreements. However, we became responsible for National City’s and National City Bank’s position in the litigation and responsibilities under the agreements through our acquisition of National City. In addition, following Visa’s reorganization in 2007 in contemplation of its initial public offering, U.S. Visa members received shares of Class B Visa common stock, convertible upon resolution of specified litigation, including the remaining litigation described above, into shares of Class A Visa common stock, with the conversion rate adjusted to reflect amounts paid or escrowed to resolve the specified litigation, and also remained responsible for indemnifying Visa against the specified litigation. Our Class B Visa common stock is all subject to this conversion adjustment provision, and we are now responsible for the indemnification obligations of our predecessors as well as ourselves. We have also entered into a MasterCard Settlement and Judgment Sharing Agreement with MasterCard and other financial institution defendants and an Omnibus Agreement Regarding Interchange Litigation Sharing and Settlement Sharing with Visa, MasterCard and other financial institution defendants. The Omnibus Agreement, in substance, apportions resolution of the claims in this litigation into a Visa portion and a MasterCard portion, with the Visa portion being two-thirds and the MasterCard portion being one-third. This apportionment only applies in the case of either a global settlement involving all defendants or an adverse judgment against the defendants, to the extent that damages either are related to the merchants’ inter-network conspiracy claims or are otherwise not attributed to specific MasterCard or Visa conduct or damages. The MasterCard portion (or any MasterCard-related liability not subject to the Omnibus Agreement) will then be apportioned under the MasterCard Settlement and Judgment Sharing Agreement among MasterCard and PNC and the other financial institution defendants that are parties to this agreement. The responsibility for the Visa portion (or any Visa-related liability not subject to the Omnibus Agreement) will be apportioned under the pre-existing indemnification responsibilities and judgment and loss sharing agreements. Fulton Financial In 2009, Fulton Financial Advisors, N.A. filed lawsuits against PNC Capital Markets, LLC and NatCity Investments, Inc. in the Court of Common Pleas of Lancaster County, Pennsylvania arising out of Fulton’s purchase of auction rate certificates (ARCs) through PNC and NatCity. In each original complaint, Fulton alleged violations of the Pennsylvania Securities Act, negligent misrepresentation, negligence, breach of fiduciary duty, common law fraud, and aiding and abetting common law fraud in connection with the purchase of the ARCs by Fulton. Specifically, Fulton alleged that, as a result of the decline of financial markets in 2007 and 2008, the market for ARCs became illiquid; that PNC and NatCity knew or should have known of the increasing threat of the ARC market becoming illiquid; and that PNC and NatCity did not inform Fulton of this increasing threat, but allowed Fulton to continue to purchase ARCs, to Fulton’s detriment. In its complaints, Fulton alleged that it then held ARCs purchased through PNC for a price of more than $123 million and purchased through NatCity for a price of more than $175 million . In each complaint, Fulton seeks, among other things, unspecified actual and punitive damages, rescission, attorneys’ fees and interest. NatCity removed the case against it to the U.S. District Court for the Eastern District of Pennsylvania ( Fulton Financial Advisors, N.A. v. NatCity Investments, Inc . (No. 5:09-cv-04855)), and in November 2009 filed a motion to dismiss the complaint. In October 2013, the court granted the motion to dismiss with respect to claims under the Pennsylvania Securities Act and for negligent misrepresentation, common law fraud, and aiding and abetting common law fraud and denied the motion with respect to claims for negligence and breach of fiduciary duty. Fulton filed an amended complaint in December 2013, reasserting its negligence and breach of fiduciary duty claims and adding a new claim under the Pennsylvania Securities Act. Fulton and NatCity filed motions for summary judgment in February 2015. In January 2017, the court granted NatCity’s motion for summary judgment with respect to the claim under the Pennsylvania Securities Act and otherwise denied both Fulton’s and NatCity’s motions. In November 2017, PNC and Fulton entered into a final agreement to settle both of these cases, as a result of which these cases are fully resolved. The terms of the settlement were not announced. The financial impact of the settlement was not material to PNC. Captive Mortgage Reinsurance Litigation In December 2011, a lawsuit ( White, et al. v. The PNC Financial Services Group, Inc., et al. (Civil Action No. 11-7928)) was filed against PNC (as successor in interest to National City Corporation and several of its subsidiaries) and several mortgage insurance companies in the U.S. District Court for the Eastern District of Pennsylvania. This lawsuit, which was brought as a class action, alleges that National City structured its program of reinsurance of private mortgage insurance in such a way as to avoid a true transfer of risk from the mortgage insurers to National City’s captive reinsurer. The plaintiffs allege that the payments from the mortgage insurers to the captive reinsurer constitute kickbacks, referral payments, or unearned fee splits prohibited under the Real Estate Settlement Procedures Act (RESPA), as well as common law unjust enrichment. The plaintiffs claim, among other things, that from the beginning of 2004 until the end of 2010 National City’s captive reinsurer collected from the mortgage insurance company defendants at least $219 million as its share of borrowers’ private mortgage insurance premiums and that its share of paid claims during this period was approximately $12 million . The plaintiffs seek to certify a nationwide class of all persons who obtained residential mortgage loans originated, funded or originated through correspondent lending by National City or any of its subsidiaries or affiliates between January 1, 2004 and the present and, in connection with these mortgage loans, purchased private mortgage insurance and whose residential mortgage loans were included within National City’s captive mortgage reinsurance arrangements. Plaintiffs seek, among other things, statutory damages under RESPA (which include treble damages), restitution of reinsurance premiums collected, disgorgement of profits, and attorneys’ fees. In August 2012, the district court directed the plaintiffs to file an amended complaint, which the plaintiffs filed in September 2012. In November 2012, we filed a motion to dismiss the amended complaint. The court dismissed, without prejudice, the amended complaint in June 2013 on statute of limitations grounds. A second amended complaint, in response to the court’s dismissal order, was filed in July 2013. We filed a motion to dismiss the second amended complaint, also in July 2013. In August 2014, the court denied the motion to dismiss. We then filed an uncontested motion to stay all proceedings pending the outcome of another matter then on appeal before the U.S. Court of Appeals for the Third Circuit that involves overlapping issues. In September 2014, the district court granted the stay. In October 2014, the court of appeals decided that other matter, holding that the RESPA claims in that case were barred by the statute of limitations. We then filed a motion for reconsideration of the denial of our motion to dismiss in light of the court of appeals’ decision. In January 2015, the district court denied our motion. In March 2015, the parties stipulated to, and the court ordered, a stay of all proceedings pending the outcome of a new other matter currently on appeal before the U.S. Court of Appeals for the Third Circuit that also involves overlapping issues. In February 2016, the court of appeals in the other matter issued a decision favorable to our position. In September 2016, the plaintiffs moved to lift the stay and for permission to file a Third Amended Class Action Complaint to add claims under the Racketeer Influenced and Corrupt Organizations Act (RICO) and to assert that the RESPA claim is not barred by the statute of limitations under the “continuing violations doctrine” because every acceptance of a reinsurance premium is a new occurrence for these purposes. In January 2017, the court denied the plaintiffs’ motion to amend to add a RICO claim, but granted their motion permitting them to rely on the continuing violations doctrine to assert claims under RESPA. We moved to certify this issue for interlocutory appeal to U.S. Court of Appeals for the Third Circuit and sought a stay in the district court pending an appeal. Although the district court certified the issue for immediate interlocutory appeal in March 2017 and stayed the action, the court of appeals shortly thereafter declined to accept the appeal. As a result proceedings have resumed in the district court. Residential Mortgage-Backed Securities Indemnification Demands We have received indemnification demands from several entities sponsoring residential mortgage-backed securities and their affiliates where purchasers of the securities have brought litigation against the sponsors and other parties involved in the securitization transactions. National City Mortgage had sold whole loans to the sponsors or their affiliates that were allegedly included in certain of these securitization transactions. According to the indemnification demands, the plaintiffs’ claims in these lawsuits are based on alleged misstatements and omissions in the offering documents for these transactions. The indemnification demands assert that agreements governing the sale of these loans or the securitization transactions to which National City Mortgage was a party require us to indemnify the sponsors and their affiliates for losses suffered in connection with these lawsuits. The parties have settled several of these cases. There has not been any determination that the parties seeking indemnification have any liability to the plaintiffs in the other lawsuits and the amount, if any, for which we are responsible in the settled cases has not been determined. Patent Infringement Litigation In June 2013, a lawsuit ( Intellectual Ventures I LLC and Intellectual Ventures II LLC vs. PNC Financial Services Group, Inc., and PNC Bank, NA , (Case No. 2:13-cv-00740-AJS)( IV 1 )) was filed in the U.S. District Court for the Western District of Pennsylvania against PNC and PNC Bank for patent infringement. The plaintiffs allege that multiple systems by which PNC and PNC Bank provide online banking services and other services via electronic means infringe five patents owned by the plaintiffs. The plaintiffs seek, among other things, a declaration that PNC and PNC Bank are infringing each of the patents, damages for past and future infringement, and attorneys’ fees. In July 2013, we filed an answer with counterclaims, denying liability and seeking declarations that the asserted patents are invalid and that PNC has not infringed them. In November 2013, PNC filed Covered Business Method/Post Grant Review petitions in the U.S. Patent & Trademark Office (PTO) seeking to invalidate all five of the patents. In December 2013, the court dismissed the plaintiffs’ claims as to two of the patents and entered a stay of the lawsuit pending the PTO’s consideration of PNC’s review petitions, including any appeals from decisions of the PTO. The PTO instituted review proceedings in May 2014 on four of the five patents at issue, finding that the subject matter of those patents was “more likely than not” unpatentable. The court had previously dismissed the plaintiffs’ claims with respect to the one patent not selected for review by the PTO. In separate decisions issued in April and May 2015, the PTO invalidated all claims with respect to the patents that were still at issue in IV 1 . In July 2015, in an appeal arising out of proceedings against a different defendant relating to some of the same patents, the U.S. Court of Appeals for the Federal Circuit affirmed the invalidity of the two patents at issue in both IV 1 and the Federal Circuit appeal. As a result, all of the patents at issue in IV 1 not subject to the prior dismissal have been invalidated. In October 2015, the plaintiffs moved to dismiss with prejudice their claims arising from the patents that had not been subject to prior dismissal in IV 1 , which the court granted. In June 2014, Intellectual Ventures filed a second lawsuit ( Intellectual Ventures I LLC and Intellectual Ventures II LLC v. PNC Bank Financial Services Group, Inc., PNC Bank NA, and PNC Merchant Services Company, LP (Case No. 2:14-cv-00832-AKS)( IV 2 )) in the same court as IV 1 . This lawsuit alleges that PNC defendants infringed five patents, including the patent dismissed in IV 1 that is not subject to PTO review, and relates generally to the same technology and subject matter as the first lawsuit. The court has stayed this case, which was consolidated with IV 1 in August 2014, pending the PTO’s consideration of various review petitions of the patents at issue in this case, as well as the review of the patents at issue in IV 1 and the appeals from any PTO decisions. In April 2015, the PTO, in a proceeding brought by another defendant, upheld the patentability of one of the patents at issue in IV 2 . That decision was appealed to the Federal Circuit, which affirmed it in February 2016. After decisions adverse to the patent holder in the PTO and several U.S. District Courts on three of the remaining patents, in October 2015, the plaintiffs voluntarily dismissed without prejudice their claims with respect to those three patents, leaving two patents at issue in this lawsuit. The plaintiffs moved to deconsolidate IV 1 and IV 2 and to lift the stay. The court denied this motion in October 2015, continuing the stay until certain court proceedings against other defendants related to the same patents are resolved. Mortgage Repurchase Litigation In December 2013, Residential Funding Company, LLC (RFC) filed a lawsuit in the U.S. District Court for the District of Minnesota against PNC Bank, as alleged successor in interest to National City Mortgage Co., NCMC Newco, Inc., and North Central Financial Corporation ( Residential Funding Company, LLC v. PNC Bank, N.A., et al. (Civil No. 13-3498- JRT-JSM)). In its complaint, RFC alleged that PNC Bank (through predecessors) sold $6.5 billion worth of residential mortgage loans to RFC during the timeframe at issue (approximately May 2006 through September 2008), a portion of which were allegedly materially defective, resulting in damages and losses to RFC. RFC alleged that PNC Bank breached representations and warranties made under seller contracts in connection with these sales. The complaint asserted claims for breach of contract and indemnification. RFC sought, among other things, monetary damages, costs, and attorney’s fees. In March 2014, we filed a motion to dismiss the complaint. RFC then filed an amended complaint. In April 2014, we moved to dismiss the amended complaint. In October 2014, the court granted our motion to dismiss with prejudice the breach of contract claims in the complaint with respect to loans sold before May 14, 2006 and otherwise denied our motion to dismiss. In January 2015, the lawsuit was consolidated for pre-trial purposes with other lawsuits pending in the District of Minnesota filed by RFC against other originators of mortgage loans that it had purchased. The consolidated action is captioned In Re: RFC and RESCAP Liquidating Trust Litigation (Civil File No. 13-cv-3451 (SRN/JJK/HB)). In September 2015, RFC filed a motion for leave to file a second amended complaint to add claims based on an asserted principle that loan sellers had a continuing contractual obligation to provide notice of loan defects, which RFC claims should allow it to assert contract claims as to pre-May 14, 2006 loans notwithstanding the prior dismissal of those claims with prejudice. In November 2015, the court granted RFC’s motion, and RFC filed its second amended complaint thereafter. In January 2017, the ResCap Liquidating Trust (RLT) filed a lawsuit in the U.S. District Court for the District of Minnesota against PNC Bank, as successor in interest to Community Bank of Northern Virginia (CBNV) ( ResCap Liquidating Trust v. PNC Bank, N.A. (No. 17-cv-196-JRT-FLN)). In its complaint, the RLT alleged that PNC Bank (as successor to CBNV) sold over 21,300 mortgage loans to RFC, with an original principal balance in excess of $789 million , which were included in RFC-sponsored RMBS trusts for which liabilities were settled in RFC’s bankruptcy. The RLT alleged that PNC Bank (as successor to CBNV) materially breached its representation and warranties made to RFC in connection with the sale of the loans, resulting in damages and losses to RFC. The complaint asserted claims for breach of contract and indemnification and seeks, among other things, monetary damages, costs, and attorney’s fees. The action was consolidated for pre-trial purposes into In Re: RFC and RESCAP Liquidating Trust Litigation . In March 2017, we filed a motion to dismiss the complaint. In July 2017, the court denied our motion to dismiss. In November 2017, we entered into a final agreement with RFC and the RLT to settle both of these cases, as a result of which the cases are fully resolved. The terms of the settlement were not announced. The financial impact of the settlement was not material to PNC. Pre-need Funeral Arrangements National City Bank and PNC Bank are defendants in a lawsuit filed in the U.S. District Court for the Eastern District of Missouri under the caption Jo Ann Howard and Associates, P.C., et al. v. Cassity, et al. (No. 4:09-CV-1252-ERW) arising out of trustee services provided by Allegiant Bank, a National City Bank and PNC Bank predecessor, with respect to Missouri trusts that held pre-need funeral contract assets. Under a pre-need funeral contract, a customer pays an amount up front in exchange for payment of funeral expenses following the customer’s death. In a number of states, including Missouri, pre-need funeral contract sellers are required to deposit a portion of the proceeds of the sale of pre-need funeral contracts in a trust account. The lawsuit was filed in August 2009 by the Special Deputy Receiver for three insolvent affiliated companies, National Prearranged Services, Inc. a seller of pre-need funeral contracts (NPS), Lincoln Memorial Life Insurance Company (Lincoln), and Memorial Service Life Insurance Company (Memorial). Seven individual state life and health insurance guaranty associations, who claim they are liable under state law for payment of certain benefits under life insurance policies sold by Lincoln and Memorial, and the National Organization of Life & Health Guaranty Associations have also joined the action as plaintiffs. In addition to National City Bank and PNC Bank (added following filing of the lawsuit as successor-in-interest to National City Bank) (the PNC defendants), other defendants included members of the Cassity family, who controlled NPS, Lincoln, and Memorial; officers and directors of NPS, Lincoln, and Memorial; auditors and attorneys for NPS, Lincoln, and Memorial; the trustees of each of the trusts that held pre-need funeral contract assets; and the investment advisor to the Pre-need Trusts. NPS retained several banks to act as trustees for the trusts holding NPS pre-need funeral contract assets (the NPS Trusts), with Allegiant Bank acting as one of these trustees with respect to seven Missouri NPS Trusts. All of the other defendants have settled with the plaintiffs, are otherwise no longer a party to the lawsuit, or are insolvent. In their Third Amended Complaint, filed in 2012 following the granting by the court in part of motions to dismiss made by the PNC defendants and the other NPS Trust trustees, the plaintiffs allege that Allegiant Bank breached its fiduciary duties and acted negligently as the trustee for the Missouri NPS Trusts. In part as a result of these breaches, the plaintiffs allege, members of the Cassity family, acting in concert with other defendants, were able to improperly remove millions of dollars from the NPS Trusts, which in turn caused NPS, Lincoln, and Memorial to become insolvent. The complaint alleges $600 million in present and future losses to the plaintiffs due to the insolvency of NPS, Lincoln, and Memorial. The lawsuit seeks, among other things, unspecified actual and punitive damages, various equitable remedies including restitution, attorneys’ fees, costs of suit and interest. In July 2013, five of the six defendants in a parallel federal criminal action, including two members of the Cassity family, entered into plea agreements with the U.S. to resolve criminal charges arising out of their conduct at NPS, Lincoln and Memorial. In August 2013, after a jury trial, the sixth defendant, the investment advisor to the NPS Trusts, was convicted on all criminal counts against him. The criminal charges against the defendants alleged, among other thing, a scheme to defraud Allegiant Bank and the other trustees of the NPS Trusts. In May 2014, the court granted the plaintiffs’ motion to disallow the PNC defendants’ affirmative defense relating to the plaintiffs’ alleged failure to mitigate damages. In July 2014, the PNC defendants’ motion for reconsideration was denied. In September 2014, the plaintiffs filed a motion seeking leave to amend their complaint to reassert aiding and abetting claims, previously dismissed by the court in 2012. The court denied this motion in December 2014. Also in December 2014, the court granted in part and denied in part the PNC defendants’ motion for summary judgment. In March 2015, following a jury trial, the court entered a judgment against the PNC defendants in the amount of $356 million in compensatory damages and $36 million in punitive damages. In April 2015, the plaintiffs filed motions with the court seeking $179 million in pre-judgment interest. Also, in April 2015, the PNC defendants filed motions with the court to reduce the compensatory damages by the amounts paid in settlement by other defendants, to strike the punitive damages award, for judgment as a matter of law, and for a new trial. In November 2015, the court granted the motion to reduce the compensatory damages by amounts paid in settlement by other defendants and denied the other motions by the PNC defendants, with the judgment being reduced as a result to a total of $289 million , and also denied the plaintiffs’ motion for pre-judgment interest. In December 2015, the PNC defendants appealed the judgment to the U.S. Court of Appeals for the Eighth Circuit . Also in December 2015, the plaintiffs cross-appealed f |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Guarantees [Abstract] | |
Commitments | C OMMITMENTS In the normal course of business, we have various commitments outstanding, certain of which are not included on our Consolidated Balance Sheet. The following table presents our outstanding commitments to extend credit along with significant other commitments as of December 31, 2017 and December 31, 2016 , respectively. Table 98 : Commitments to Extend Credit and Other Commitments In millions December 31 2017 December 31 2016 Commitments to extend credit Total commercial lending $ 112,125 $ 108,256 Home equity lines of credit 17,852 17,438 Credit card 24,911 22,095 Other 4,753 4,192 Total commitments to extend credit 159,641 151,981 Net outstanding standby letters of 8,651 8,324 Reinsurance agreements (b) 1,654 1,835 Standby bond purchase agreements (c) 843 790 Other commitments (d) 1,732 967 Total commitments to extend $ 172,521 $ 163,897 (a) Net outstanding standby letters of credit include $3.5 billion and $3.9 billion at December 31, 2017 and December 31, 2016 , respectively, which support remarketing programs. (b) Represents aggregate maximum exposure up to the specified limits of the reinsurance contracts provided by our wholly-owned captive insurance subsidiary. These amounts reflect estimates based on availability of financial information from insurance carriers. As of December 31, 2017 , the aggregate maximum exposure amount comprised $1.5 billion for accidental death & dismemberment contracts and $.2 billion for credit life, accident & health contracts. Comparable amounts at December 31, 2016 were $1.5 billion and $.3 billion , respectively. (c) We enter into standby bond purchase agreements to support municipal bond obligations. (d) Includes $.5 billion related to investments in qualified affordable housing projects at both December 31, 2017 and December 31, 2016 . Commitments to Extend Credit Commitments to extend credit, or net unfunded loan commitments, represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. These commitments generally have fixed expiration dates, may require payment of a fee, and contain termination clauses in the event the customer’s credit quality deteriorates. Net Outstanding Standby Letters of Credit We issue standby letters of credit and share in the risk of standby letters of credit issued by other financial institutions, in each case to support obligations of our customers to third parties, such as insurance requirements and the facilitation of transactions involving capital markets product execution. Approximately 91% and 94% of our net outstanding standby letters of credit were rated as Pass as of December 31, 2017 and December 31, 2016 , respectively, with the remainder rated as Below Pass. An internal credit rating of Pass indicates the expected risk of loss is currently low, while a rating of Below Pass indicates a higher degree of risk. If the customer fails to meet its financial or performance obligation to the third party under the terms of the contract or there is a need to support a remarketing program, then upon a draw by a beneficiary, subject to the terms of the letter of credit, we would be obligated to make payment to them. The standby letters of credit outstanding on December 31, 2017 had terms ranging from less than one year to seven years. As of December 31, 2017 , assets of $1.3 billion secured certain specifically identified standby letters of credit. In addition, a portion of the remaining standby letters of credit issued on behalf of specific customers is also secured by collateral or guarantees that secure the customers’ other obligations to us. The carrying amount of the liability for our obligations related to standby letters of credit and participations in standby letters of credit was $.2 billion at December 31, 2017 and is included in Other liabilities on our Consolidated Balance Sheet. |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company | P ARENT C OMPANY On August 23, 2016, PNC Funding Corp, a wholly-owned indirect non-bank subsidiary of the parent company, was merged into the parent company with all assets and liabilities transferred to the parent company at historical cost. As a result, the summarized financial information for all periods is presented in the following tables on a combined basis. Summarized financial information of the parent company is as follows: Table 99 : Parent Company – Income Statement Year ended December 31 – in millions 2017 2016 2015 Operating Revenue Dividends from: Bank subsidiaries and bank holding $ 3,278 $ 2,906 $ 3,110 Non-bank subsidiaries 376 130 49 Interest income 109 93 82 Noninterest income 37 13 56 Total operating revenue 3,800 3,142 3,297 Operating Expense Interest expense 215 197 193 Other expense 175 109 89 Total operating expense 390 306 282 Income before income taxes and equity 3,410 2,836 3,015 Income tax benefits (52 ) (96 ) (98 ) Income before equity in undistributed 3,462 2,932 3,113 Equity in undistributed net income of Bank subsidiaries and bank holding 1,974 818 736 Non-bank subsidiaries (98 ) 153 257 Net income $ 5,338 $ 3,903 $ 4,106 Other comprehensive income, net of Net pension and other postretirement 1 13 (3 ) Other comprehensive income (loss) 1 13 (3 ) Comprehensive income $ 5,339 $ 3,916 $ 4,103 Table 100 : Parent Company – Balance Sheet December 31 – in millions 2017 2016 Assets Cash held at banking subsidiary $ 1 $ 1 Restricted deposits with banking subsidiary 175 175 Nonrestricted interest-earning deposits 5,800 4,684 Investments in: Bank subsidiaries and bank holding 44,360 42,361 Non-bank subsidiaries 2,398 2,859 Loans with affiliates 1,244 1,358 Other assets 1,243 1,322 Total assets $ 55,221 $ 52,760 Liabilities Subordinated debt (a) $ 1,645 $ 2,242 Senior debt (a) 5,203 3,959 Commercial paper 100 Other borrowed funds from affiliates 108 223 Accrued expenses and other liabilities 652 637 Total liabilities 7,708 7,061 Equity Shareholders’ equity 47,513 45,699 Total liabilities and equity $ 55,221 $ 52,760 (a) See Note 10 Borrowed Funds for additional information on contractual rates and maturity dates of senior debt and subordinated debt for parent company. In connection with certain affiliates’ commercial and residential mortgage servicing operations, the parent company has committed to maintain such affiliates’ net worth above minimum requirements. Table 101 : Parent Company – Interest Paid and Income Tax Refunds (Payments) Year ended December 31 – in millions Interest Paid Income Tax Refunds / (Payments) 2017 $ 287 $ 40 2016 $ 317 $ 183 2015 $ 404 $ 64 Table 102 : Parent Company – Statement of Cash Flows Year ended December 31 – in millions 2017 2016 2015 Operating Activities Net income $ 5,338 $ 3,903 $ 4,106 Adjustments to reconcile net income Equity in undistributed net (1,974 ) (971 ) (993 ) Return on investment in subsidiary 98 Other 194 143 149 Net cash provided (used) by operating 3,656 3,075 3,262 Investing Activities Net change in loans and securities 114 2,161 (185 ) Net change in restricted deposits with (175 ) 400 Net change in nonrestricted (1,116 ) (1,607 ) 3,244 Net change in restricted 300 (300 ) Other 266 (82 ) Net cash provided (used) by (1,002 ) 945 3,077 Financing Activities Net change in other borrowed funds 316 (124 ) (100 ) Net change in senior debt 1,325 (1,252 ) (1,888 ) Net change in subordinated debt (580 ) 17 (580 ) Net change in commercial paper 100 Preferred stock issuances 519 Preferred stock redemptions (500 ) Common and treasury stock issuances 132 151 139 Acquisition of treasury stock (2,447 ) (2,062 ) (2,152 ) Preferred stock cash dividends paid (236 ) (209 ) (219 ) Common stock cash dividends paid (1,264 ) (1,060 ) (1,039 ) Net cash provided (used) by (2,654 ) (4,020 ) (6,339 ) Cash held at banking subsidiary at 1 1 1 Cash held at banking subsidiary at $ 1 $ 1 $ 1 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | S EGMENT R EPORTING Effective for the first quarter of 2017, as a result of changes to how we manage our businesses, we realigned our segments and, accordingly, have changed the basis of presentation of our segments, resulting in four reportable business segments: • Retail Banking • Corporate & Institutional Banking • Asset Management Group • BlackRock Results of individual businesses are presented based on our internal management reporting practices. There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of our individual businesses are not necessarily comparable with similar information for any other company. We periodically refine our internal methodologies as management reporting practices are enhanced. To the extent significant and practicable, retrospective application of new methodologies is made to prior period reportable business segment results and disclosures to create comparability with the current period. Net interest income in business segment results reflects our internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors. Effective for the first quarter of 2017, we made certain adjustments to our internal funds transfer pricing methodology primarily relating to weighted average lives of certain non-maturity deposits based on our recent historical experience. These changes in methodology affected business segment results, primarily adversely impacting net interest income for Corporate & Institutional Banking and Retail Banking, offset by increased net interest income in the “Other” category. All prior periods presented were revised to conform to the new segment alignment and to our change in internal funds transfer pricing methodology. Our business segment results reflect the allocation of the impact of the new tax legislation to our business segments, primarily the revaluation of the net deferred tax positions allocated to the segments. Certain tax legislation amounts are considered reasonable estimates as of December 31, 2017. See Note 17 Income Taxes for additional details. Total business segment financial results differ from total consolidated net income. The impact of these differences is reflected in the “Other” category in the business segment tables. “Other” includes residual activities that do not meet the criteria for disclosure as a separate reportable business, such as asset and liability management activities including net securities gains or losses, other-than-temporary impairment of investment securities, certain trading activities, certain non-strategic runoff consumer loan portfolios, private equity investments, intercompany eliminations, most corporate overhead, tax adjustments that are not allocated to business segments, gains or losses related to BlackRock transactions, integration costs, exited businesses, and differences between business segment performance reporting and financial statement reporting (GAAP), including the presentation of net income attributable to noncontrolling interests as the segments’ results exclude their portion of net income attributable to noncontrolling interests. Assets, revenue and earnings attributable to foreign activities were not material in the periods presented for comparative purposes. Financial results are presented, to the extent practicable, as if each business operated on a stand-alone basis. Additionally, we have aggregated the results for corporate support functions within “Other” for financial reporting purposes. Our allocation of the costs incurred by shared support areas not directly aligned with the businesses is primarily based on the use of services. A portion of capital is intended to cover unexpected losses and is assigned to our business segments using our risk-based economic capital model, including consideration of the goodwill at those business segments as well as the diversification of risk among the business segments, ultimately reflecting our portfolio risk adjusted capital allocation. We have allocated the allowances for loan and lease losses and for unfunded loan commitments and letters of credit based on the loan exposures within each business segment’s portfolio. Key reserve assumptions and estimation processes react to and are influenced by observed changes in loan portfolio performance experience, the financial strength of the borrower and economic conditions. Key reserve assumptions are periodically updated. Business Segment Products and Services Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management services to consumer and small business customers within our primary geographic markets. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. The branch network is located primarily in Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana, Florida, North Carolina, Kentucky, Washington, D.C., Delaware, Virginia, Georgia, Alabama, Missouri, Wisconsin and South Carolina. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to government agency and/or third-party standards, and either sold, servicing retained, or held on our balance sheet. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts. Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. Treasury management services include cash and investment management, receivables management, disbursement services, funds transfer services, information reporting and global trade services. Capital markets-related products and services include foreign exchange, derivatives, securities underwriting, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally. We offer certain products and services internationally. Asset Management Group provides personal wealth management for high net worth and ultra high net worth clients and institutional asset management. Wealth management products and services include investment and retirement planning, customized investment management, private banking, tailored credit solutions, and trust management and administration for individuals and their families. Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth families. Institutional asset management provides advisory, custody and retirement administration services. The business also offers PNC proprietary mutual funds. Institutional clients include corporations, unions, municipalities, non-profits, foundations and endowments, primarily located in our geographic footprint. BlackRock, in which we hold an equity investment, is a leading publicly-traded investment management firm providing a broad range of investment, risk management and technology services to institutional and retail clients worldwide. Using a diverse platform of active and index investment strategies across asset classes, BlackRock develops investment outcomes and asset allocation solutions for clients. Product offerings include single- and multi-asset class portfolios investing in equities, fixed income, alternatives and money market instruments. BlackRock also offers an investment and risk management technology platform, risk analytics, advisory and technology services and solutions to a broad base of institutional and wealth management investors. Our equity investment in BlackRock provides us with an additional source of noninterest income and increases our overall revenue diversification. BlackRock is a publicly-traded company, and additional information regarding its business is available in its filings with the Securities and Exchange Commission (SEC). At December 31, 2017 , our economic interest in BlackRock was 22% . We received cash dividends from BlackRock of $354 million , $331 million , and $320 million during 2017 , 2016 , and 2015 , respectively. Table 103 : Results of Businesses Year ended December 31 Retail Banking Corporate & Institutional Banking Asset Management Group BlackRock Other Consolidated (a) 2017 INCOME STATEMENT Net interest income $ 4,625 $ 3,396 $ 287 $ 800 $ 9,108 Noninterest income 2,236 2,271 881 $ 1,078 755 7,221 Total revenue 6,861 5,667 1,168 1,078 1,555 16,329 Provision for credit losses (benefit) 347 160 1 (67 ) 441 Depreciation and amortization 177 184 50 510 921 Other noninterest expense 5,274 2,244 813 1,146 9,477 Income (loss) before income taxes (benefit) and 1,063 3,079 304 1,078 (34 ) 5,490 Income taxes (benefit) 533 615 102 (686 ) (462 ) 102 Net income $ 530 $ 2,464 $ 202 $ 1,764 $ 428 $ 5,388 Average Assets (b) $ 88,663 $ 148,414 $ 7,511 $ 7,677 $ 119,504 $ 371,769 2016 INCOME STATEMENT Net interest income $ 4,509 $ 3,181 $ 300 $ 401 $ 8,391 Noninterest income 2,693 2,035 851 $ 685 507 6,771 Total revenue 7,202 5,216 1,151 685 908 15,162 Provision for credit losses (benefit) 297 177 (6 ) (35 ) 433 Depreciation and amortization 175 153 45 470 843 Other noninterest expense 5,116 2,069 780 668 8,633 Income (loss) before income taxes (benefit) and 1,614 2,817 332 685 (195 ) 5,253 Income taxes (benefit) 591 908 122 153 (506 ) 1,268 Net income $ 1,023 $ 1,909 $ 210 $ 532 $ 311 $ 3,985 Average Assets (b) $ 85,871 $ 140,309 $ 7,707 $ 7,118 $ 120,255 $ 361,260 2015 INCOME STATEMENT Net interest income $ 4,306 $ 3,144 $ 292 $ 536 $ 8,278 Noninterest income 2,781 1,947 869 $ 717 633 6,947 Total revenue 7,087 5,091 1,161 717 1,169 15,225 Provision for credit losses (benefit) 253 78 9 (85 ) 255 Depreciation and amortization 187 149 44 429 809 Other noninterest expense 5,257 2,038 802 557 8,654 Income before income taxes (benefit) and noncontrolling 1,390 2,826 306 717 268 5,507 Income taxes (benefit) 506 934 112 169 (357 ) 1,364 Net income $ 884 $ 1,892 $ 194 $ 548 $ 625 $ 4,143 Average Assets (b) $ 86,977 $ 133,754 $ 7,920 $ 6,983 $ 119,330 $ 354,964 (a) There were no material intersegment revenues for the years ended 2017 , 2016 and 2015 . (b) Period-end balances for BlackRock. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | S UBSEQUENT E VENTS On January 22, 2018, PNC Bank issued the following: • $900 million of senior notes with a maturity date of January 22, 2021 . Interest is payable semi-annually at a fixed rate of 2.50% per annum on January 22 and July 22 of each year, beginning on July 22, 2018. • $700 million of senior notes with a maturity date of January 22, 2028 . Interest is payable semi-annually at a fixed rate of 3.25% per annum on January 22 and July 22 of each year, beginning on July 22, 2018. • $400 million of senior floating rate notes with a maturity date of January 22, 2021 . Interest is payable at the 3-month LIBOR rate reset quarterly, plus a spread of .25% , on January 22, April 22, July 22, and October 22 of each year, beginning on April 22, 2018. On January 31, 2018, we transferred 103,064 shares of BlackRock Series C Preferred Stock to BlackRock to satisfy a portion of our LTIP obligation. Upon transfer, Other assets and Other liabilities on our Consolidated Balance Sheet were each reduced by $42 million , representing the fair value of the shares transferred. After this transfer, we hold 143,458 shares of BlackRock Series C Preferred Stock which are available to fund our remaining obligation in connection with the BlackRock LTIP programs. |
Accounting Policies - 10-K (Pol
Accounting Policies - 10-K (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | B USINESS The PNC Financial Services Group, Inc. (PNC) is one of the largest diversified financial services companies in the United States and is headquartered in Pittsburgh, Pennsylvania. We have businesses engaged in retail banking, including residential mortgage, corporate and institutional banking and asset management, providing many of our products and services nationally. Our primary geographic markets are located in 19 states in the Mid-Atlantic, Midwest and Southeast. We also provide certain products and services internationally. Basis of Financial Statement Presentation Our consolidated financial statements include the accounts of the parent company and its subsidiaries, most of which are wholly-owned, certain partnership interests, and variable interest entities. We prepared these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). We have eliminated intercompany accounts and transactions. We have also reclassified certain prior year amounts to conform to the 2017 presentation, which did not have a material impact on our consolidated financial condition or results of operations. We have also considered the impact of subsequent events on these consolidated financial statements. |
Use of Estimates | Use of Estimates We prepared these consolidated financial statements using financial information available at the time of preparation, which requires us to make estimates and assumptions that affect the amounts reported. Our most significant estimates pertain to our fair value measurements and allowances for loan and lease losses and unfunded loan commitments and letters of credit. Actual results may differ from the estimates and the differences may be material to the consolidated financial statements. |
Investment in BlackRock, Inc. | Investment in BlackRock, Inc. We account for our investment in the common stock and Series B Preferred Stock of BlackRock (deemed to be in-substance common stock) under the equity method of accounting. The investment in BlackRock is reflected on our Consolidated Balance Sheet in Equity investments, while our equity in earnings of BlackRock is reported on our Consolidated Income Statement in Asset management noninterest income. We also hold shares of Series C Preferred Stock of BlackRock pursuant to our obligation to partially fund a portion of certain BlackRock long-term incentive plan (LTIP) programs. Since these preferred shares are not deemed to be in-substance common stock, we have elected to account for these preferred shares at fair value and the changes in fair value will offset the impact of marking-to-market the obligation to deliver these shares to BlackRock. Our investment in the BlackRock Series C Preferred Stock is included on our Consolidated Balance Sheet in Other assets. Our obligation to transfer these shares to BlackRock is classified as a derivative not designated as a hedging instrument under GAAP as disclosed in Note 13 Financial Derivatives . |
Variable Interest Entities | Variable Interest Entities A variable interest entity (VIE) is a corporation, partnership, limited liability company, or any other legal structure used to conduct activities or hold assets generally that either: • Does not have equity investors with voting rights that can directly or indirectly make decisions about the entity’s activities through those voting rights or similar rights, or • Has equity investors that do not provide sufficient equity for the entity to finance its activities without additional subordinated financial support. A VIE often holds financial assets, including loans or receivables, real estate or other property. VIEs are assessed for consolidation under ASC 810 –Consolidation when we hold a variable interest in these entities. We consolidate a VIE if we are its primary beneficiary. The primary beneficiary of a VIE is determined to be the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Upon consolidation of a VIE, we recognize all of the VIE’s assets, liabilities and noncontrolling interests on our Consolidated Balance Sheet. On a quarterly basis, we determine whether any changes occurred requiring a reassessment of whether we are the primary beneficiary of an entity. See Note 2 Loan Sale and Servicing Activities and Variable Interest Entities for information about VIEs that we consolidate as well as those that we do not consolidate but in which we hold a significant variable interest. |
Revenue Recognition | Revenue Recognition We earn interest and noninterest income from various sources, including: • Lending, • Securities portfolio, • Asset management, • Customer deposits, • Loan sales, loan securitizations, and servicing, • Brokerage services, • Sale of loans and securities, • Certain private equity activities, and • Securities, derivatives and foreign exchange activities. We earn fees and commissions from: • Issuing loan commitments, standby letters of credit and financial guarantees, • Selling various insurance products, • Providing treasury management services, • Providing merger and acquisition advisory and related services • Debit and credit card transactions, and • Participating in certain capital markets transactions. Our Asset management noninterest income includes asset management fees, which are generally based on a percentage of the fair value of the assets under management. Additionally, it includes our share of the earnings of BlackRock recognized under the equity method of accounting. Service charges on deposit accounts are recognized when earned. Brokerage fees and gains and losses on the sale of securities and certain derivatives are recognized on a trade-date basis. We record private equity income or loss based on changes in the valuation of the underlying investments or when we dispose of our interest. We recognize gain/(loss) on changes in the fair value of certain financial instruments where we have elected the fair value option. These financial instruments include certain commercial and residential mortgage loans originated for sale, certain residential mortgage portfolio loans, resale agreements and our investment in BlackRock Series C preferred stock. We also recognize gain/(loss) on changes in the fair value of residential and commercial mortgage servicing rights (MSRs). We recognize revenue from servicing residential mortgages, commercial mortgages and other consumer loans as earned based on the specific contractual terms. These revenues are reported on the Consolidated Income Statement in the line items Residential mortgage, Corporate services and Consumer services. We recognize revenue from securities, derivatives and foreign exchange customer-related trading, as well as securities underwriting activities, as these transactions occur or as services are provided. We generally recognize gains from the sale of loans upon receipt of cash. Mortgage revenue recognized is reported net of mortgage repurchase reserves. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and due from banks are considered “cash and cash equivalents” for financial reporting purposes. |
Investments | Investments We hold interests in various types of investments. The accounting for these investments is dependent on a number of factors including, but not limited to, items such as: • Ownership interest, • Our plans for the investment, and • The nature of the investment. Debt Securities Debt securities are recorded on a trade-date basis. We classify debt securities as held to maturity and carry them at amortized cost if we have the positive intent and ability to hold the securities to maturity. Debt securities that we purchase for certain risk management activities or customer-related trading activities are carried at fair value and classified as trading securities and are reported in the Other assets line item on our Consolidated Balance Sheet. Realized and unrealized gains and losses on trading securities are included in Other noninterest income. Debt securities not classified as held to maturity or trading are designated as securities available for sale and carried at fair value with unrealized gains and losses, net of income taxes, reflected in Accumulated other comprehensive income (loss). On at least a quarterly basis, we review all debt securities that are in an unrealized loss position for other than temporary impairment (OTTI). An investment security is deemed impaired if the fair value of the investment is less than its amortized cost. Amortized cost includes adjustments (if any) made to the cost basis of an investment for accretion, amortization, previous other-than-temporary impairments and hedging gains and losses. After an investment security is determined to be impaired, we evaluate whether the decline in value is other-than-temporary. Declines in the fair value of available for sale and held to maturity debt securities that are deemed other-than-temporary and are attributable to credit deterioration are recognized in Other noninterest income on our Consolidated Income Statement in the period in which the determination is made. Declines in fair value which are deemed other-than-temporary and attributable to factors other than credit deterioration are recognized in Accumulated other comprehensive income (loss) on our Consolidated Balance Sheet. We include all interest on debt securities, including amortization of premiums and accretion of discounts on investment securities, in net interest income using the constant effective yield method generally calculated over the contractual lives of the securities. Effective yields reflect either the effective interest rate implicit in the security at the date of acquisition or the effective interest rate determined based on improved cash flows subsequent to impairment. We compute gains and losses realized on the sale of available for sale debt securities on a specific security basis. These securities gains/(losses) are included in Other noninterest income on the Consolidated Income Statement. Equity Securities and Partnership Interests We account for equity securities and equity investments other than BlackRock and private equity investments under one of the following methods: • Marketable equity securities are recorded on a trade-date basis and are accounted for based on the securities’ quoted market prices from a national securities exchange. Those purchased with the intention of selling in the near term are classified as trading and included in Other assets on our Consolidated Balance Sheet. Both realized and unrealized gains and losses on trading securities are included in Noninterest income. Marketable equity securities not classified as trading are designated as securities available for sale with unrealized gains and losses, net of income taxes, reflected in Accumulated other comprehensive income (loss). Any unrealized losses that we have determined to be other-than-temporary on securities classified as available for sale are recognized in current period earnings. • For investments in limited partnerships, limited liability companies and other investments that are not required to be consolidated, we use either the equity method or the cost method of accounting. We use the equity method for general and limited partner ownership interests and limited liability companies in which we are considered to have significant influence over the operations of the investee. Under the equity method, we record our equity ownership share of net income or loss of the investee in Noninterest income and any dividends received on equity method investments are recorded as a reduction to the investment balance. When an equity investment experiences an other-than-temporary decline in value, we may be required to record a loss on the investment. We use the cost method for all other investments. Under the cost method, there is no change to the cost basis unless there is an other-than-temporary decline in value or dividends received are considered a return on investment. If the decline is determined to be other-than-temporary, we write down the cost basis of the investment to a new cost basis that represents realizable value. The amount of the write-down is accounted for as a loss included in Noninterest income. Distributions received from the income of an investee on cost method investments are included in Noninterest income. Investments described above are included in Equity investments on our Consolidated Balance Sheet. Private Equity Investments We report private equity investments, which include direct investments in companies, affiliated partnership interests and indirect investments in private equity funds, at estimated fair value. These estimates are based on available information and may not necessarily represent amounts that we will ultimately realize through distribution, sale or liquidation of the investments. Fair values of publicly-traded direct investments are determined using quoted market prices and are subject to various discount factors arising from security level restrictions, when appropriate. The valuation procedures applied to direct investments and indirect investments are detailed in Note 6 Fair Value . We include all private equity investments within Equity investments on our Consolidated Balance Sheet. Changes in fair value of private equity investments are recognized in Noninterest income. We consolidate affiliated partnerships when we have determined that we have control of the partnership or are the primary beneficiary if the entity is a VIE. The portion we do not own is reflected in Noncontrolling interests on our Consolidated Balance Sheet. |
Loans | Loans Loans are classified as held for investment when management has both the intent and ability to hold the loan for the foreseeable future, or until maturity or payoff. Management’s intent and view of the foreseeable future may change based on changes in business strategies, the economic environment, market conditions and the availability of government programs. Measurement of delinquency status is based on the contractual terms of each loan. Loans that are 30 days or more past due in terms of payment are considered delinquent. Except as described below, loans held for investment are stated at the principal amounts outstanding, net of unearned income, unamortized deferred fees and costs on originated loans, and premiums or discounts on purchased loans. Interest on performing loans (excluding interest on purchased impaired loans, which is further discussed below) is accrued based on the principal amount outstanding and recorded in Interest income as earned using the constant effective yield method. Loan origination fees, direct loan origination costs, and loan premiums and discounts are deferred and accreted or amortized into Net interest income using the constant effective yield method, over the contractual life of the loan. In addition to originating loans, we also acquire loans through portfolio purchases or acquisitions of other financial services companies. For certain acquired loans that have experienced a deterioration of credit quality, we follow the guidance contained in ASC 310-30 – Loans and Debt Securities Acquired with Deteriorated Credit Quality. Under this guidance, acquired purchased impaired loans are to be recorded at fair value without the carryover of any existing valuation allowances. When evidence of credit quality deterioration and evidence that it is probable that we will be unable to collect all contractual amounts due exist, we consider the loans to be purchased credit impaired and we estimate the amount and timing of undiscounted expected cash flows at acquisition for each loan either individually or on a pool basis. The excess of undiscounted cash flows expected to be collected on a purchased impaired loan (or pool of loans) over its carrying value represents the accretable yield which is recognized into interest income over the remaining life of the loan (or pool of loans) using the constant effective yield method. Subsequent decreases in expected cash flows that are attributable, at least in part, to credit quality are recognized as impairments through a charge to the provision for credit losses resulting in an increase in the Allowance for Loan and Lease Losses (ALLL). Subsequent increases in expected cash flows are recognized as a provision recapture of previously recorded ALLL or prospectively through an adjustment of the loan’s or pool’s yield over its remaining life. |
Loans Held For Sale | Loans Held for Sale We designate loans as held for sale when we have the intent to sell them. We transfer loans to the Loans held for sale category at the lower of cost or estimated fair value less cost to sell. At the time of transfer, write-downs on the loans are recorded as charge-offs. We establish a new cost basis upon transfer. Any subsequent lower-of-cost-or-market adjustment is determined on an individual loan basis and is recognized as a valuation allowance with any charges included in Other noninterest income. We have elected to account for certain commercial and residential mortgage loans held for sale at fair value. The changes in the fair value of the commercial mortgage loans are measured and recorded in Other noninterest income while the residential mortgage loans are measured and recorded in Residential mortgage noninterest income each period. See Note 6 Fair Value for additional information. Interest income with respect to loans held for sale is accrued based on the principal amount outstanding and the loan’s contractual interest rate. In certain circumstances, loans designated as held for sale may be transferred to held for investment based on a change in strategy. We transfer these loans at the lower of cost or estimated fair value; however, any loans originated or purchased for held for sale and designated at fair value remain at fair value for the life of the loan. |
Leases | Leases We provide financing for various types of equipment, including aircraft, energy and power systems, and vehicles through a variety of lease arrangements. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased equipment, less unearned income. Leveraged leases, a form of financing lease, are carried net of nonrecourse debt. We recognize income over the term of the lease using the constant effective yield method. Lease residual values are reviewed for impairment at least annually. Gains or losses on the sale of leased assets are included in Other noninterest income while valuation adjustments on lease residuals are included in Other noninterest expense. |
Loan Sales, Loan Securitizations And Retained Interests | Loan Sales, Loan Securitizations and Retained Interests We recognize the sale of loans or other financial assets when the transferred assets are legally isolated from our creditors and the appropriate accounting criteria are met. We have sold mortgage and other loans through securitization transactions. In a securitization, financial assets are transferred into trusts or to special purpose entities (SPEs) in transactions to effectively legally isolate the assets from us. In a securitization, the trust or SPE issues beneficial interests in the form of senior and subordinated securities backed or collateralized by the assets sold to the trust. The senior classes of the asset-backed securities typically receive investment grade credit ratings at the time of issuance. These ratings are generally achieved through the creation of lower-rated subordinated classes of asset-backed securities, as well as subordinated or residual interests. In certain cases, we may retain a portion or all of the securities issued, interest-only strips, one or more subordinated tranches, servicing rights and, in some cases, cash reserve accounts. Securitized loans are removed from the balance sheet and a net gain or loss is recognized in Noninterest income at the time of initial sale. Gains or losses recognized on the sale of the loans depend on the fair value of the loans sold and the retained interests at the date of sale. We generally estimate the fair value of the retained interests based on the present value of future expected cash flows using assumptions as to discount rates, interest rates, prepayment speeds, credit losses and servicing costs, if applicable. With the exception of loan sales to certain U.S. government-chartered entities, our loan sales and securitizations are generally structured without recourse to us except for representations and warranties and with no restrictions on the retained interests. We originate, sell and service commercial mortgage loans under the Federal National Mortgage Association (FNMA) Delegated Underwriting and Servicing (DUS) program. Under the provisions of the DUS program, we participate in a loss-sharing arrangement with FNMA. When we are obligated for loss-sharing or recourse, our policy is to record such liabilities initially at fair value and subsequently reserve for estimated losses in accordance with guidance contained in applicable GAAP. |
Nonperforming Loans and Leases | Nonperforming Loans and Leases The matrix below summarizes our policies for classifying certain loans as nonperforming loans and/or discontinuing the accrual of loan interest income. Commercial loans Loans Classified as Nonperforming and Accounted for as Nonaccrual • Loans accounted for at amortized cost where: – The loan is 90 days or more past due. – The loan is rated substandard or worse due to the determination that full collection of principal and interest is not probable as demonstrated by the following conditions: • The collection of principal or interest is 90 days or more past due; • Reasonable doubt exists as to the certainty of the borrower’s future debt service ability, according to the terms of the credit arrangement, regardless of whether 90 days have passed or not; • The borrower has filed or will likely file for bankruptcy; • The bank advances additional funds to cover principal or interest; • We are in the process of liquidating a commercial borrower; or • We are pursuing remedies under a guarantee. Loans Excluded from Nonperforming Classification but Accounted for as Nonaccrual • Loans accounted for under the fair value option and full collection of principal and interest is not probable. • Loans accounted for at the lower of cost or market less costs to sell (held for sale) and full collection of principal and interest is not probable. Loans Excluded from Nonperforming Classification and Nonaccrual Accounting • Loans that are well secured and in the process of collection. Consumer loans Loans Classified as Nonperforming and Accounted for as Nonaccrual • Loans accounted for at amortized cost where full collection of contractual principal and interest is not deemed probable as demonstrated in the policies below: – The loan is 90 days past due for home equity and installment loans, and 180 days past due for well secured residential real estate loans; – The loan has been modified and classified as a troubled debt restructuring (TDR); – Notification of bankruptcy has been received within the last 60 days; – The bank holds a subordinate lien position in the loan and the first lien mortgage loan is seriously stressed (i.e., 90 days or more past due); – Other loans within the same borrower relationship have been placed on nonaccrual or charge-offs have been taken on them; – The bank has repossessed non-real estate collateral securing the loan; or – The bank has charged-off the loan to the value of the collateral. Loans Excluded from Nonperforming Classification but Accounted for as Nonaccrual • Loans accounted for under the fair value option and full collection of principal and interest is not probable. • Loans accounted for at the lower of cost or market less costs to sell (held for sale) and full collection of principal and interest is not probable. Loans Excluded from Nonperforming Classification and Nonaccrual Accounting • Purchased impaired loans because interest income is accreted through the accounting model. • Certain government insured loans where substantially all principal and interest is insured. • Residential real estate loans that are well secured and in the process of collection. • Consumer loans and lines of credit, not secured by residential real estate or automobiles, as permitted by regulatory guidance. See Note 3 Asset Quality in this Report for additional detail on nonperforming assets and asset quality indicators for commercial and consumer loans. Commercial Loans We generally charge off Commercial Lending (Commercial, Commercial Real Estate, and Equipment Lease Financing) nonperforming loans when we determine that a specific loan, or portion thereof, is uncollectible. This determination is based on the specific facts and circumstances of the individual loans. In making this determination, we consider the viability of the business or project as a going concern, the past due status when the asset is not well-secured, the expected cash flows to repay the loan, the value of the collateral, and the ability and willingness of any guarantors to perform. Additionally, in general, for smaller commercial loans of $1 million or less, a partial or full charge-off occurs at 120 days past due for term loans and 180 days past due for revolvers. Certain small business credit card balances that are placed on nonaccrual status when they become 90 days or more past due are charged-off at 180 days past due. Consumer Loans Home equity installment loans, home equity lines of credit, and residential real estate loans that are not well-secured and in the process of collection are charged-off at no later than 180 days past due. At that time, the basis in the loan is reduced to the fair value of the collateral less costs to sell. In addition to this policy, the bank recognizes a charge-off on a secured consumer loan when: • The bank holds a subordinate lien position in the loan and a foreclosure notice has been received on the first lien loan; • The bank holds a subordinate lien position in the loan which is 30 days or more past due with a combined loan to value ratio of greater than or equal to 110% and the first lien loan is seriously stressed ( i.e ., 90 days or more past due); • The loan is modified or otherwise restructured in a manner that results in the loan becoming collateral dependent; • Notification of bankruptcy has been received within the last 60 days; • The borrower has been discharged from personal liability through Chapter 7 bankruptcy and has not formally reaffirmed his or her loan obligation to us; or • The collateral securing the loan has been repossessed and the value of the collateral is less than the recorded investment of the loan outstanding. For loans that continue to meet any of the above policies, collateral values are updated annually and subsequent declines in collateral values are charged-off resulting in incremental provision for credit loss. Most consumer loans and lines of credit, not secured by residential real estate, are charged off after 120-180 days past due. Accounting for Nonperforming Assets and Leases and Other Nonaccrual Loans For accrual loans, interest income is accrued on a monthly basis and certain fees and costs are deferred upon origination and recognized in income over the term of the loan utilizing an effective yield method. For nonaccrual loans, interest income accrual and deferred fee/cost recognition is discontinued. Additionally, the current year accrued and uncollected interest is reversed through Net interest income and prior year accrued and uncollected interest is charged-off. Nonaccrual loans may also be charged-off to reduce the basis to the fair value of collateral less costs to sell. If payment is received on a nonaccrual loan, generally the payment is first applied to the recorded investment; payments are then applied to recover any charged-off amounts related to the loan. Finally, if both recorded investment and any charge-offs have been recovered, then the payment will be recorded as fee and interest income. For certain consumer loans, the receipt of interest payments is recognized as interest income on a cash basis. Cash basis income recognition is applied if a loan’s recorded investment is deemed fully collectible and the loan has performed for at least six months. For TDRs, payments are applied based upon their contractual terms unless the related loan is deemed non-performing. TDRs are generally included in nonperforming and nonaccrual loans. However, after a reasonable period of time in which the loan performs under restructured terms and meets other performance indicators, it is returned to performing/accruing status. This return to performing/accruing status demonstrates that the bank expects to collect all of the loan’s remaining contractual principal and interest. TDRs resulting from 1) borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us and 2) borrowers that are not currently obligated to make both principal and interest payments under the restructured terms are not returned to accrual status. Other nonaccrual loans are generally not returned to accrual status until the borrower has performed in accordance with the contractual terms and other performance indicators for at least six months, the period of time which was determined to demonstrate the expected collection of the loan’s remaining contractual principal and interest. When a nonperforming loan is returned to accrual status, it is then considered a performing loan. See Note 3 Asset Quality and Note 4 Allowance for Loan and Lease Losses in this Report for additional TDR information. Foreclosed assets consist of any asset seized or property acquired through a foreclosure proceeding or acceptance of a deed-in-lieu of foreclosure. Other real estate owned comprises principally commercial and residential real estate properties obtained in partial or total satisfaction of loan obligations. After obtaining a foreclosure judgment, or in some jurisdictions the initiation of proceedings under a power of sale in the loan instruments, the property will be sold. When we are awarded title or completion of deed-in-lieu of foreclosure, we transfer the loan to foreclosed assets included in Other assets on our Consolidated Balance Sheet. Property obtained in satisfaction of a loan is initially recorded at estimated fair value less cost to sell. Based upon the estimated fair value less cost to sell, the recorded investment of the loan is adjusted and, typically, a charge-off/recovery is recognized to the ALLL. We estimate fair values primarily based on appraisals, or sales agreements with third parties. Subsequently, foreclosed assets are valued at the lower of the amount recorded at acquisition date or estimated fair value less cost to sell. Valuation adjustments on these assets and gains or losses realized from disposition of such property are reflected in Other noninterest expense. For certain mortgage loans that have a government guarantee, we establish a separate other receivable upon foreclosure. The receivable is measured based on the loan balance (inclusive of principal and interest) that is expected to be recovered from the guarantor. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses We maintain the ALLL at a level that we believe to be appropriate to absorb estimated probable credit losses incurred in the loan and lease portfolios as of the balance sheet date. Our determination of the allowance is based on periodic evaluations of these loan and lease portfolios and other relevant factors. This critical estimate includes significant use of our own historical data and complex methods to interpret this data. These evaluations are inherently subjective, as they require material estimates and may be susceptible to significant change, and include, among others: • Probability of default (PD), • Loss given default (LGD), • Outstanding balance of the loan, • Movement through delinquency stages, • Amounts and timing of expected future cash flows, • Value of collateral, which may be obtained from third parties, and • Qualitative factors, such as changes in current economic conditions, that may not be reflected in modeled results. For all loans, except purchased impaired loans, the ALLL is the sum of three components: (i) asset specific/individual impaired reserves, (ii) quantitative (formulaic or pooled) reserves and (iii) qualitative (judgmental) reserves. The reserve calculation and determination process is dependent on the use of key assumptions. Key reserve assumptions and estimation processes react to and are influenced by observed changes in loan portfolio performance experience, the financial strength of the borrower, and economic conditions. Key reserve assumptions are periodically updated. See Note 4 Allowance for Loan and Lease Losses for additional detail on our ALLL. Asset Specific/Individual Component Nonperforming loans that are considered impaired under ASC 310 – Receivables, which include all commercial and consumer TDRs, are evaluated for a specific reserve. Specific reserve allocations are determined as follows: • For commercial nonperforming loans and commercial TDRs greater than or equal to a defined dollar threshold, specific reserves are based on an analysis of the present value of the loan’s expected future cash flows, the loan’s observable market price or the fair value of the collateral. • For commercial nonperforming loans and commercial TDRs below the defined dollar threshold, the individual loan’s loss given default (LGD) percentage is multiplied by the loan balance and the results are aggregated for purposes of measuring specific reserve impairment. • Consumer nonperforming loans are collectively reserved for unless classified as consumer TDRs. For consumer TDRs, specific reserves are determined through an analysis of the present value of the loan’s expected future cash flows, except for those instances where loans have been deemed collateral dependent, including loans where borrowers have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us. Once that determination has been made, those TDRs are charged down to the fair value of the collateral less costs to sell at each period end. Commercial Lending Quantitative Component The estimates of the quantitative component of ALLL for incurred losses within the commercial lending portfolio segment are determined through statistical loss modeling utilizing PD, LGD and outstanding balance of the loan. Based upon loan risk ratings, we assign PDs and LGDs. Each of these statistical parameters is determined based on internal historical data and market data. PD is influenced by such factors as liquidity, industry, obligor financial structure, access to capital and cash flow. LGD is influenced by collateral type, original and/or updated loan-to-value ratio (LTV), facility structure and other factors. Consumer Lending Quantitative Component Quantitative estimates within the consumer lending portfolio segment are calculated primarily using transition matrices, including using a roll-rate model. The roll-rate model uses statistical relationships, calculated from historical data that estimate the movement of loan outstandings through the various stages of delinquency and ultimately charge-off over our loss emergence period. Qualitative Component While our reserve methodologies strive to reflect all relevant risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between estimates and actual outcomes. We provide additional reserves that are designed to provide coverage for losses attributable to such risks. The ALLL also includes factors that may not be directly measured in the determination of specific or pooled reserves. Such qualitative factors may include: • Industry concentrations and conditions, • Recent credit quality trends, • Recent loss experience in particular portfolios, • Recent macro-economic factors, • Model imprecision, • Changes in lending policies and procedures, • Timing of available information, including the performance of first lien positions, and • Limitations of available historical data. Allowance for Purchased Non-Impaired Loans ALLL for purchased non-impaired loans is determined based upon a comparison between the methodologies described above and the remaining acquisition date fair value discount that has yet to be accreted into interest income. After making the comparison, an ALLL is recorded for the amount greater than the discount, or no ALLL is recorded if the discount is greater. Allowance for Purchased Impaired Loans ALLL for purchased impaired loans is determined in accordance with ASC 310-30 by comparing the net present value of management’s best estimate of cash flows expected to be collected over the life of the loan (or pool of loans) to the recorded investment for a given loan (or pool of loans). In cases where the net present value of expected cash flows is lower than the recorded investment, ALLL is established. |
Allowance for Unfunded Loan Commitments and Letters of Credit | Allowance for Unfunded Loan Commitments and Letters of Credit We maintain the allowance for unfunded loan commitments and letters of credit at a level we believe is appropriate to absorb estimated probable credit losses incurred on these unfunded credit facilities as of the balance sheet date. We determine the allowance based on periodic evaluations of the unfunded credit facilities, including an assessment of the probability of commitment usage, credit risk factors, and, solely for commercial lending, the terms and expiration dates of the unfunded credit facilities. Other than the estimation of the probability of funding, the reserve for unfunded loan commitments is estimated in a manner similar to the methodology used for determining reserves for funded exposures. The allowance for unfunded loan commitments and letters of credit is recorded as a liability on the Consolidated Balance Sheet. Net adjustments to the allowance for unfunded loan commitments and letters of credit are included in the provision for credit losses. |
Mortgage Servicing Rights | Mortgage Servicing Rights We provide servicing under various loan servicing contracts for commercial and residential loans. These contracts are either purchased in the open market or retained as part of a loan securitization or loan sale. All acquired or originated servicing rights are measured at fair value. Fair value is based on the present value of the expected future net cash flows, including assumptions as to: • Deposit balances and interest rates for escrow and commercial reserve earnings, • Discount rates, • Estimated prepayment speeds, and • Estimated servicing costs. We measure commercial and residential MSRs at fair value in order to reduce any potential measurement mismatch between our economic hedges and the MSRs. We manage the risk by hedging the fair value of the MSR with derivatives and securities which are expected to increase in value when the value of the servicing right declines. Changes in the fair value of MSRs are recognized as gains/(losses). The fair value of these servicing rights is estimated by using a discounted cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, servicing costs, and other factors which are determined based on current market conditions. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of financial instruments and the methods and assumptions used in estimating fair value amounts and financial assets and liabilities for which fair value was elected are detailed in Note 6 Fair Value . |
Goodwill | Goodwill We assess goodwill for impairment at least annually, in the fourth quarter, or when events or changes in circumstances indicate the assets might be impaired. |
Depreciation and Amortization | Depreciation and Amortization For financial reporting purposes, we depreciate premises and equipment, net of salvage value, principally using the straight-line method over their estimated useful lives. We use estimated useful lives for furniture and equipment ranging from one to 10 years, and depreciate buildings over an estimated useful life of up to 40 years. We amortize leasehold improvements over their estimated useful lives of up to 15 years or the respective lease terms, whichever is shorter. We purchase, as well as internally develop and customize, certain software to enhance or perform internal business functions. Software development costs incurred in the planning and post-development project stages are charged to Noninterest expense. Costs associated with designing software configuration and interfaces, installation, coding programs and testing systems are capitalized and amortized using the straight-line method over periods ranging from one to 10 years. |
Other Comprehensive Income | Other Comprehensive Income Other comprehensive income, on an after-tax basis, primarily consists of unrealized gains or losses, excluding OTTI attributable to credit deterioration, on investment securities classified as available for sale, unrealized gains or losses on derivatives designated as cash flow hedges, and changes in pension and other postretirement benefit plan liability adjustments. Details of each component are included in Note 16 Other Comprehensive Income. |
Treasury Stock | Treasury Stock We record common stock purchased for treasury at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on the first-in, first-out basis. |
Derivatives Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We use a variety of financial derivatives as part of our overall asset and liability risk management process to help manage exposure to interest rate, market and credit risk inherent in our business activities. Interest rate and total return swaps, swaptions, interest rate caps and floors, options, forwards, and futures contracts are the primary instruments we use for interest rate risk management. Financial derivatives involve, to varying degrees, interest rate, market and credit risk. We manage these risks as part of our asset and liability management process and through credit policies and procedures. We recognize all derivative instruments at fair value as either Other assets or Other liabilities on the Consolidated Balance Sheet and the related cash flows in the Operating Activities section of the Consolidated Statement of Cash Flows. Adjustments for counterparty credit risk are included in the determination of fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a cash flow or net investment hedging relationship. For all other derivatives, changes in fair value are recognized in earnings. We utilize a net presentation for derivative instruments on the Consolidated Balance Sheet taking into consideration the effects of legally enforceable master netting agreements. Cash collateral exchanged with counterparties is also netted against the applicable derivative exposures by offsetting obligations to return, or general rights to reclaim, cash collateral against the fair values of the net derivatives being collateralized. For those derivative instruments that are designated and qualify as accounting hedges, we designate the hedging instrument, based on the exposure being hedged, as a fair value hedge, a cash flow hedge or a hedge of the net investment in a foreign operation. We formally document the relationship between the hedging instruments and hedged items, as well as the risk management objective and strategy, before undertaking an accounting hedge. To qualify for hedge accounting, the derivatives and related hedged items must be designated as a hedge at inception of the hedge relationship. For accounting hedge relationships, we formally assess, both at the inception of the hedge and on an ongoing basis, if the derivatives are highly effective in offsetting designated changes in the fair value or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective, hedge accounting is discontinued. For derivatives that are designated as fair value hedges ( i.e ., hedging the exposure to changes in the fair value of an asset or a liability attributable to a particular risk, such as changes in LIBOR), changes in the fair value of the hedging instrument are recognized in earnings and offset by also recognizing in earnings the changes in the fair value of the hedged item attributable to the hedged risk. To the extent the change in fair value of the derivative does not offset the change in fair value of the hedged item, the difference or ineffectiveness is reflected in the Consolidated Income Statement in the same financial statement category as the hedged item. For derivatives designated as cash flow hedges ( i.e ., hedging the exposure to variability in expected future cash flows), the effective portions of the gain or loss on derivatives are reported as a component of Accumulated other comprehensive income (loss) and subsequently reclassified to income in the same period or periods during which the hedged transaction affects earnings. The change in fair value attributable to the ineffective portion of the hedging instrument is recognized immediately in Interest income. For derivatives designated as a hedge of net investment in a foreign operation, the effective portions of the gain or loss on the derivatives are reported as a component of Accumulated other comprehensive income (loss). The change in fair value attributable to the ineffective portion of the hedging instrument is recognized immediately in Noninterest income. We discontinue hedge accounting when it is determined that the derivative no longer qualifies as an effective hedge; the derivative expires or is sold, terminated or exercised; or the derivative is de-designated as a fair value or cash flow hedge or, for a cash flow hedge, it is no longer probable that the forecasted transaction will occur by the end of the originally specified time period. We did not terminate any cash flow hedges in 2017 , 2016 or 2015 due to a determination that a forecasted transaction was no longer probable of occurring. We purchase or originate financial instruments that contain an embedded derivative. At the inception of the transaction, we assess if the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the host contract, whether the hybrid financial instrument is measured at fair value with changes in fair value reported in earnings, and whether a separate instrument with the same terms as the embedded derivative would be a derivative. If the embedded derivative does not meet all of these conditions, the embedded derivative is recorded separately from the host contract with changes in fair value recorded in earnings, unless we elect to account for the hybrid instrument at fair value. We have elected, on an instrument-by-instrument basis, fair value measurement for certain financial instruments with embedded derivatives. We enter into commitments to originate residential and commercial mortgage loans for sale. We also enter into commitments to purchase or sell commercial and residential real estate loans. These commitments are accounted for as free-standing derivatives which are recorded at fair value in Other assets or Other liabilities on the Consolidated Balance Sheet. Any gain or loss from the change in fair value after the inception of the commitment is recognized in Noninterest income. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that we expect will apply at the time when we believe the differences will reverse. Changes in tax rates and tax law are accounted for in the period of enactment. Thus, at the enactment date, deferred taxes are remeasured and the change is recognized in Income Tax expense. The recognition of deferred tax assets requires an assessment to determine the realization of such assets. Realization refers to the incremental benefit achieved through the reduction in future taxes payable or refunds receivable from the deferred tax assets, assuming that the underlying deductible differences and carryforwards are the last items to enter into the determination of future taxable income. We establish a valuation allowance for tax assets when it is more likely than not that they will not be realized, based upon all available positive and negative evidence. We use the deferral method of accounting on investments that generate investment tax credits. Under this method, the investment tax credits are recognized as a reduction to the related asset. |
Earnings per Common Share | Earnings Per Common Share Basic earnings per common share is calculated using the two-class method to determine income attributable to common shareholders. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are considered participating securities under the two-class method. Distributed dividends and dividend equivalents related to participating securities and an allocation of undistributed net income to participating securities reduce the amount of income attributable to common shareholders. Income attributable to common shareholders is then divided by the weighted-average common shares outstanding for the period. Diluted earnings per common share is calculated under the more dilutive of either the treasury method or the two-class method. For the diluted calculation, we increase the weighted-average number of shares of common stock outstanding by the assumed conversion of outstanding convertible preferred stock from the beginning of the year or date of issuance, if later, and the number of shares of common stock that would be issued assuming the exercise of stock options and warrants and the issuance of incentive shares using the treasury stock method. These adjustments to the weighted-average number of shares of common stock outstanding are made only when such adjustments will dilute earnings per common share. See Note 14 Earnings Per Share for additional information. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards We did not adopt any new accounting standards that had a significant impact during 2017. |
Loan Sale and Servicing Activ32
Loan Sale and Servicing Activities and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loan Sale and Servicing Activities and Variable Interest Entities [Abstract] | |
Cash Flows Associated with Loan Sale and Servicing Activities | The following table provides cash flows associated with our loan sale and servicing activities: Table 36 : Cash Flows Associated with Loan Sale and Servicing Activities In millions Residential Commercial CASH FLOWS - Year ended Sales of loans (b) $ 5,759 $ 5,276 Repurchases of previously transferred loans (c) $ 464 Servicing fees (d) $ 374 $ 126 Servicing advances recovered/(funded), net $ 101 $ 48 Cash flows on mortgage-backed securities $ 1,527 $ 206 CASH FLOWS - Year ended Sales of loans (b) $ 6,913 $ 3,810 Repurchases of previously transferred loans (c) $ 534 Servicing fees (d) $ 374 $ 125 Servicing advances recovered/(funded), net $ 109 $ (14 ) Cash flows on mortgage-backed securities $ 1,727 $ 283 (a) Represents cash flow information associated with both commercial mortgage loan transfer and servicing activities. (b) Gains/losses recognized on sales of loans were insignificant for the periods presented. (c) Includes residential mortgage government insured or guaranteed loans eligible for repurchase through the exercise of our removal of account provision option, and loans repurchased due to alleged breaches of origination covenants or representations and warranties made to purchasers. (d) Includes contractually specified servicing fees, late charges and ancillary fees. (e) Represents cash flows on securities we hold issued by a securitization SPE in which we transferred to and/or services loans. The carrying values of such securities held were $8.8 billion in residential mortgage-backed securities and $.6 billion in commercial mortgage-backed securities at December 31, 2017 and $6.9 billion in residential mortgage-backed securities and $.9 billion in commercial mortgage-backed securities at December 31, 2016 . |
Principal Balance, Delinquent Loans (Loans 90 Days or More Past Due), and Net Charge-Offs Related to Serviced Loans | Table 37 : Principal Balance, Delinquent Loans and Net Charge-offs Related to Serviced Loans For Others In millions Residential Commercial December 31, 2017 Total principal balance $ 58,320 $ 49,116 Delinquent loans (b) $ 899 $ 355 December 31, 2016 Total principal balance $ 66,081 $ 45,855 Delinquent loans (b) $ 1,422 $ 941 Year ended December 31, 2017 Net charge-offs (c) $ 78 $ 965 Year ended December 31, 2016 Net charge-offs (c) $ 97 $ 1,439 (a) Represents information at the securitization level in which we have sold loans and we are the servicer for the securitization. (b) Serviced delinquent loans are 90 days or more past due or are in process of foreclosure. (c) Net charge-offs for Residential mortgages represent credit losses less recoveries distributed and as reported to investors during the period. Net charge-offs for Commercial mortgages represent credit losses less recoveries distributed and as reported by the trustee for commercial mortgage backed securitizations. Realized losses for Agency securitizations are not reflected as we do not manage the underlying real estate upon foreclosure and, as such, do not have access to loss information. |
Non-Consolidated VIEs | Table 38 : Non-Consolidated VIEs In millions PNC Risk of Loss (a) Carrying Value of Assets Carrying Value of Liabilities December 31, 2017 Mortgage-Backed Securitizations (b) $ 9,738 $ 9,738 (c) Tax Credit Investments and Other 3,069 3,001 (d) $ 858 (e) Total $ 12,807 $ 12,739 $ 858 December 31, 2016 Mortgage-Backed Securitizations (b) $ 8,003 $ 8,003 (c) Tax Credit Investments and Other 3,083 3,043 (d) $ 823 (e) Total $ 11,086 $ 11,046 $ 823 (a) This represents loans, investments and other assets related to non-consolidated VIEs, net of collateral (if applicable). (b) Amounts reflect involvement with securitization SPEs where we transferred to and/or services loans for an SPE and we hold securities issued by that SPE. Values disclosed in the PNC Risk of Loss column represent our maximum exposure to loss for those securities’ holdings. (c) Included in Investment securities, Mortgage servicing rights and Other assets on our Consolidated Balance Sheet. (d) Included in Investment securities, Loans, Equity investments and Other assets on our Consolidated Balance Sheet. (e) Included in Deposits and Other liabilities on our Consolidated Balance Sheet. |
Asset Quality (Tables)
Asset Quality (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Quality [Abstract] | |
Analysis of Loan Portfolio | Table 39 : Analysis of Loan Portfolio (a) Accruing Dollars in millions Current or Less Than 30 Days Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days Or More Past Due Total Past Due (b) Nonperforming Loans Fair Value Option Nonaccrual Loans (c) Purchased Impaired Loans Total Loans (d) December 31, 2017 Commercial Lending Commercial $ 109,989 $ 45 $ 25 $ 39 $ 109 $ 429 $ 110,527 Commercial real estate 28,826 27 2 29 123 28,978 Equipment lease 7,914 17 1 18 2 7,934 Total commercial lending 146,729 89 28 39 156 554 147,439 Consumer Lending Home equity 26,561 78 26 $ 104 818 $ 881 28,364 Residential real estate 14,389 151 74 486 711 (b) 400 $ 197 1,515 17,212 Credit card 5,579 43 26 45 114 6 5,699 Other consumer Automobile 12,697 79 20 8 107 76 12,880 Education and other 8,525 105 64 159 328 (b) 11 8,864 Total consumer lending 67,751 456 210 698 1,364 1,311 197 2,396 73,019 Total $ 214,480 $ 545 $ 238 $ 737 $ 1,520 $ 1,865 $ 197 $ 2,396 $ 220,458 Percentage of total loans 97.29 % .25 % .11 % .33 % .69 % .85 % .09 % 1.08 % 100.00 % December 31, 2016 Commercial Lending Commercial $ 100,710 $ 81 $ 20 $ 39 $ 140 $ 496 $ 18 $ 101,364 Commercial real estate 28,769 5 2 7 143 91 29,010 Equipment lease 7,535 29 1 30 16 7,581 Total commercial lending 137,014 115 23 39 177 655 109 137,955 Consumer Lending Home equity 27,820 64 30 94 914 1,121 29,949 Residential real estate 12,425 159 68 500 727 (b) 501 $ 219 1,726 15,598 Credit card 5,187 33 21 37 91 4 5,282 Other consumer Automobile 12,257 51 12 5 68 55 12,380 Education and other 9,235 140 78 201 419 (b) 15 9,669 Total consumer lending 66,924 447 209 743 1,399 1,489 219 2,847 72,878 Total $ 203,938 $ 562 $ 232 $ 782 $ 1,576 $ 2,144 $ 219 $ 2,956 $ 210,833 Percentage of total loans 96.73 % .27 % .11 % .37 % .75 % 1.02 % .10 % 1.40 % 100.00 % (a) Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment in a loan includes the unpaid principal balance plus net accounting adjustments, less any charge-offs. Recorded investment does not include any associated valuation allowance. (b) Past due loan amounts exclude purchased impaired loans, even if contractually past due (or if we do not expect to receive payment in full based on the original contractual terms), as we are currently accreting interest income over the expected life of the loans. Past due loan amounts include government insured or guaranteed Residential real estate mortgages totaling $.6 billion at both December 31, 2017 and December 31, 2016 , and Education and other consumer loans totaling $.3 billion and $.4 billion at December 31, 2017 and December 31, 2016 , respectively. (c) Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policies. Given that these loans are not accounted for at amortized cost, these loans have been excluded from the nonperforming loan population. (d) Net of unearned income, net deferred loan fees, unamortized discounts and premiums, and purchase discounts and premiums totaling $1.2 billion and $1.3 billion at December 31, 2017 and December 31, 2016 , respectively. |
Nonperforming Assets | Table 40 : Nonperforming Assets Dollars in millions December 31 December 31 Nonperforming loans Total commercial lending $ 554 $ 655 Total consumer lending (a) 1,311 1,489 Total nonperforming loans 1,865 2,144 OREO, foreclosed and other assets 170 230 Total nonperforming assets $ 2,035 $ 2,374 Nonperforming loans to total loans .85 % 1.02 % Nonperforming assets to total loans, OREO, foreclosed and other assets .92 % 1.12 % Nonperforming assets to total assets .53 % .65 % Interest on nonperforming loans (b) Computed on original terms $ 114 $ 111 Recognized prior to nonperforming status $ 19 $ 21 (a) Excludes most consumer loans and lines of credit not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming status. (b) Amounts are for the year ended. |
Commercial Lending Asset Quality Indicators | Table 41 : Commercial Lending Asset Quality Indicators (a) Criticized Commercial Loans In millions Pass Rated Special Mention (b) Substandard (c) Doubtful (d) Total Loans December 31, 2017 Commercial $ 105,280 $ 1,858 $ 3,331 $ 58 $ 110,527 Commercial real estate 28,380 148 435 15 28,978 Equipment lease financing 7,754 77 102 1 7,934 Total commercial lending $ 141,414 $ 2,083 $ 3,868 $ 74 $ 147,439 December 31, 2016 Commercial $ 96,231 $ 1,612 $ 3,449 $ 72 $ 101,364 Commercial real estate 28,561 98 327 24 29,010 Equipment lease financing 7,395 89 91 6 7,581 Total commercial lending $ 132,187 $ 1,799 $ 3,867 $ 102 $ 137,955 (a) Loans are classified as “Pass”, “Special Mention”, “Substandard” and “Doubtful” based on the Regulatory Classification definitions. We use PDs and LGDs to rate commercial loans. (b) Special Mention rated loans have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects at some future date. These loans do not expose us to sufficient risk to warrant a more adverse classification at the reporting date. (c) Substandard rated loans have a well-defined weakness or weaknesses that jeopardize the collection or liquidation of debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. (d) Doubtful rated loans possess all the inherent weaknesses of a Substandard loan with the additional characteristics that the weakness makes collection or liquidation in full improbable due to existing facts, conditions, and values. |
Home Equity and Residential Real Estate Asset Quality Indicators | Table 42 : Asset Quality Indicators for Home Equity and Residential Real Estate Loans – Excluding Purchased Impaired and Government Insured or Guaranteed Loans (a) Home Equity Residential Real Estate Total December 31, 2017 – in millions 1st Liens 2nd Liens Current estimated LTV ratios Greater than or equal to 125% and updated FICO scores: Greater than 660 $ 108 $ 385 $ 126 $ 619 Less than or equal to 660 (b) 21 64 23 108 Missing FICO 1 5 1 7 Greater than or equal to 100% to less than 125% and updated FICO scores: Greater than 660 300 842 253 1,395 Less than or equal to 660 (b) 46 143 45 234 Missing FICO 2 9 5 16 Greater than or equal to 90% to less than 100% and updated FICO scores: Greater than 660 331 890 324 1,545 Less than or equal to 660 55 134 55 244 Missing FICO 2 9 4 15 Less than 90% and updated FICO scores: Greater than 660 13,954 8,066 13,445 35,465 Less than or equal to 660 1,214 774 507 2,495 Missing FICO 42 57 95 194 Total home equity and residential real estate loans $ 16,076 $ 11,378 $ 14,883 $ 42,337 Home Equity Residential Real Estate Total December 31, 2016 – in millions 1st Liens 2nd Liens Current estimated LTV ratios Greater than or equal to 125% and updated FICO scores: Greater than 660 $ 161 $ 629 $ 174 $ 964 Less than or equal to 660 (b) 32 110 35 177 Missing FICO 1 9 2 12 Greater than or equal to 100% to less than 125% and updated FICO scores: Greater than 660 394 1,190 345 1,929 Less than or equal to 660 (b) 66 211 76 353 Missing FICO 3 10 7 20 Greater than or equal to 90% to less than 100% and updated FICO scores: Greater than 660 453 1,100 463 2,016 Less than or equal to 660 77 171 78 326 Missing FICO 1 8 6 15 Less than 90% and updated FICO scores: Greater than 660 14,047 7,913 11,153 33,113 Less than or equal to 660 1,323 822 586 2,731 Missing FICO 42 55 102 199 Missing LTV and updated FICO scores: Greater than 600 1 1 Total home equity and residential real estate loans $ 16,600 $ 12,228 $ 13,028 $ 41,856 (a) Amounts shown represent recorded investment. (b) Higher risk loans are defined as loans with both an updated FICO score of less than or equal to 660 and an updated LTV greater than or equal to 100% . The following states had the highest percentage of higher risk loans at December 31, 2017 : New Jersey 17% , Pennsylvania 13% , Illinois 13% , Ohio 9% , Maryland 8% , Florida 6% , North Carolina 5% and Michigan 4% . The remainder of the states had lower than 4% of the higher risk loans individually, and collectively they represent approximately 25% of the higher risk loans. The following states had the highest percentage of higher risk loans at December 31, 2016 : New Jersey 16% , Pennsylvania 14% , Illinois 12% , Ohio 10% , Florida 7% , Maryland 6% , Michigan 4% and North Carolina 4% . The remainder of the states had lower than 4% of the high risk loans individually, and collectively they represent approximately 27% of the higher risk loans. |
Credit Card and Other Consumer Loan Classes Asset Quality Indicators | Table 43 : Credit Card and Other Consumer Loan Classes Asset Quality Indicators Credit Card Other Consumer (a) Dollars in millions Amount % of Total Loans Using FICO Credit Metric Amount % of Total Loans Using FICO Credit Metric December 31, 2017 FICO score greater than 719 $ 3,457 61 % $ 10,366 63 % 650 to 719 1,596 28 % 4,352 27 % 620 to 649 250 4 % 659 4 % Less than 620 272 5 % 715 4 % No FICO score available or required (b) 124 2 % 314 2 % Total loans using FICO credit metric 5,699 100 % 16,406 100 % Consumer loans using other internal credit metrics (a) 5,338 Total loan balance $ 5,699 $ 21,744 Weighted-average updated FICO score (b) 735 741 December 31, 2016 FICO score greater than 719 $ 3,244 61 % $ 10,247 65 % 650 to 719 1,466 28 % 3,873 25 % 620 to 649 215 4 % 552 3 % Less than 620 229 4 % 632 4 % No FICO score available or required (b) 128 3 % 489 3 % Total loans using FICO credit metric 5,282 100 % 15,793 100 % Consumer loans using other internal credit metrics (a) 6,256 Total loan balance $ 5,282 $ 22,049 Weighted-average updated FICO score (b) 736 744 (a) We use updated FICO scores as an asset quality indicator for non-government guaranteed or insured education loans, automobile loans and other secured and unsecured lines and loans. We use internal credit metrics, such as delinquency status, geography or other factors, as an asset quality indicator for government guaranteed or insured education loans and consumer loans to high net worth individuals, as internal credit metrics are more relevant than FICO scores for these types of loans. (b) Credit card loans and other consumer loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan portfolio and, when necessary, takes actions to mitigate the credit risk. Weighted-average updated FICO score excludes accounts with no FICO score available or required. |
Financial Impact and TDRs by Concession Type | Table 44 : Financial Impact and TDRs by Concession Type (a) Number of Loans Pre-TDR Recorded Investment (b) Post-TDR Recorded Investment (c) During the year ended December 31, 2017 Principal Forgiveness Rate Reduction Other Total Total commercial lending 120 $ 293 $ 18 $ 7 $ 227 $ 252 Total consumer lending 11,993 248 146 97 243 Total TDRs 12,113 $ 541 $ 18 $ 153 $ 324 $ 495 During the year ended December 31, 2016 Total commercial lending 143 $ 524 $ 57 $ 413 $ 470 Total consumer lending 11,262 245 157 76 233 Total TDRs 11,405 $ 769 $ 214 $ 489 $ 703 During the year ended December 31, 2015 Total commercial lending 158 $ 284 $ 22 $ 4 $ 198 $ 224 Total consumer lending 10,962 311 190 106 296 Total TDRs 11,120 $ 595 $ 22 $ 194 $ 304 $ 520 (a) Impact of partial charge-offs at TDR date are included in this table. (b) Represents the recorded investment of the loans as of the quarter end prior to TDR designation, and excludes immaterial amounts of accrued interest receivable. (c) Represents the recorded investment of the TDRs as of the end of the quarter in which the TDR occurs, and excludes immaterial amounts of accrued interest receivable. |
Impaired Loans | Table 45 : Impaired Loans In millions Unpaid Principal Balance Recorded Investment Associated Allowance Average Recorded Investment (a) December 31, 2017 Impaired loans with an associated allowance Total commercial lending $ 580 $ 353 $ 76 $ 419 Total consumer lending 1,061 1,014 195 1,072 Total impaired loans with an associated allowance 1,641 1,367 271 1,491 Impaired loans without an associated allowance Total commercial lending 494 366 330 Total consumer lending 1,019 638 648 Total impaired loans without an associated allowance 1,513 1,004 978 Total impaired loans $ 3,154 $ 2,371 $ 271 $ 2,469 December 31, 2016 Impaired loans with an associated allowance Total commercial lending $ 742 $ 477 $ 105 $ 497 Total consumer lending 1,237 1,185 226 1,255 Total impaired loans with an associated allowance 1,979 1,662 331 1,752 Impaired loans without an associated allowance Total commercial lending 447 322 365 Total consumer lending 982 608 604 Total impaired loans without an associated allowance 1,429 930 969 Total impaired loans $ 3,408 $ 2,592 $ 331 $ 2,721 (a) Average recorded investment is for the years ended December 31, 2017 and 2016 . |
Allowances for Loan and Lease34
Allowances for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Allowance For Loan And Lease Losses [Abstract] | |
Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data | Table 46 : Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data Dollars in millions Commercial Lending Consumer Lending Total December 31, 2017 Allowance for Loan and Lease Losses January 1 $ 1,534 $ 1,055 $ 2,589 Charge-offs (221 ) (565 ) (786 ) Recoveries 116 213 329 Net (charge-offs) (105 ) (352 ) (457 ) Provision for credit losses 147 294 441 Net decrease / (increase) in allowance for unfunded loan commitments and letters of credit 5 (1 ) 4 Other 1 33 34 December 31 $ 1,582 $ 1,029 $ 2,611 TDRs individually evaluated for impairment $ 35 $ 195 $ 230 Other loans individually evaluated for impairment 41 41 Loans collectively evaluated for impairment 1,506 561 2,067 Purchased impaired loans 273 273 December 31 $ 1,582 $ 1,029 $ 2,611 Loan Portfolio TDRs individually evaluated for impairment $ 409 $ 1,652 $ 2,061 Other loans individually evaluated for impairment 310 310 Loans collectively evaluated for impairment 146,720 68,102 214,822 Fair value option loans (a) 869 869 Purchased impaired loans 2,396 2,396 December 31 $ 147,439 $ 73,019 $ 220,458 Portfolio segment ALLL as a percentage of total ALLL 61 % 39 % 100 % Ratio of the allowance for loan and lease losses to total loans 1.07 % 1.41 % 1.18 % December 31, 2016 Allowance for Loan and Lease Losses January 1 $ 1,605 $ 1,122 $ 2,727 Charge-offs (363 ) (523 ) (886 ) Recoveries 178 165 343 Net (charge-offs) (185 ) (358 ) (543 ) Provision for credit losses 153 280 433 Net (increase) in allowance for unfunded loan commitments and letters of credit (39 ) (1 ) (40 ) Other 12 12 December 31 $ 1,534 $ 1,055 $ 2,589 TDRs individually evaluated for impairment $ 45 $ 226 $ 271 Other loans individually evaluated for impairment 60 60 Loans collectively evaluated for impairment 1,392 546 1,938 Purchased impaired loans 37 283 320 December 31 $ 1,534 $ 1,055 $ 2,589 Loan Portfolio TDRs individually evaluated for impairment $ 428 $ 1,793 $ 2,221 Other loans individually evaluated for impairment 371 371 Loans collectively evaluated for impairment 137,047 67,345 204,392 Fair value option loans (a) 893 893 Purchased impaired loans 109 2,847 2,956 December 31 $ 137,955 $ 72,878 $ 210,833 Portfolio segment ALLL as a percentage of total ALLL 59 % 41 % 100 % Ratio of the allowance for loan and lease losses to total loans (b) 1.11 % 1.45 % 1.23 % In millions Commercial Lending Consumer Lending Total December 31, 2015 Allowance for Loan and Lease Losses January 1 $ 1,571 $ 1,760 $ 3,331 Charge-offs (255 ) (550 ) (805 ) Recoveries 240 179 419 Net charge-offs (15 ) (371 ) (386 ) Provision for credit losses 55 200 255 Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit (3 ) 1 (2 ) Other (b) (3 ) (468 ) (471 ) December 31 $ 1,605 $ 1,122 $ 2,727 TDRs individually evaluated for impairment $ 43 $ 276 $ 319 Other loans individually evaluated for impairment 76 76 Loans collectively evaluated for impairment 1,437 585 2,022 Purchased impaired loans 49 261 310 December 31 $ 1,605 $ 1,122 $ 2,727 Loan Portfolio TDRs individually evaluated for impairment $ 434 $ 1,917 $ 2,351 Other loans individually evaluated for impairment 309 309 Loans collectively evaluated for impairment 132,632 66,977 199,609 Fair value option loans (a) 905 905 Purchased impaired loans 169 3,353 3,522 December 31 $ 133,544 $ 73,152 $ 206,696 Portfolio segment ALLL as a percentage of total ALLL 59 % 41 % 100 % Ratio of the allowance for loan and lease losses to total loans 1.20 % 1.53 % 1.32 % (a) Loans accounted for under the fair value option are not evaluated for impairment as these loans are accounted for at fair value. Accordingly there is no allowance recorded on these loans. (b) Includes $468 million in write-offs of purchased impaired loans due to the change in derecognition policy effective December 31, 2015 for certain consumer purchased impaired loans. See Note 1 Accounting Policies in our 2015 Form 10-K for additional information. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investment Securities Disclosure [Abstract] | |
Investment Securities Summary | Table 47 : Investment Securities Summary In millions Amortized Cost Unrealized Fair Value Gains Losses December 31, 2017 Securities Available for Sale Debt securities U.S. Treasury and government agencies $ 14,432 $ 173 $ (84 ) $ 14,521 Residential mortgage-backed Agency 25,534 121 (249 ) 25,406 Non-agency 2,443 336 (21 ) 2,758 Commercial mortgage-backed Agency 1,960 2 (58 ) 1,904 Non-agency 2,603 19 (9 ) 2,613 Asset-backed 5,331 74 (8 ) 5,397 Other debt 4,322 129 (17 ) 4,434 Total debt securities 56,625 854 (446 ) 57,033 Other 587 (2 ) 585 Total securities available for sale $ 57,212 $ 854 $ (448 ) $ 57,618 Securities Held to Maturity Debt securities U.S. Treasury and government agencies $ 741 $ 37 $ (13 ) $ 765 Residential mortgage-backed Agency 14,503 77 (139 ) 14,441 Non-agency 167 7 174 Commercial mortgage-backed Agency 407 4 411 Non-agency 538 10 548 Asset-backed 200 1 201 Other debt 1,957 88 (20 ) 2,025 Total securities held to maturity $ 18,513 $ 224 $ (172 ) $ 18,565 December 31, 2016 Securities Available for Sale Debt securities U.S. Treasury and government agencies $ 13,100 $ 151 $ (77 ) $ 13,174 Residential mortgage-backed Agency 26,245 170 (287 ) 26,128 Non-agency 3,191 227 (52 ) 3,366 Commercial mortgage-backed Agency 2,150 3 (34 ) 2,119 Non-agency 4,023 29 (27 ) 4,025 Asset-backed 5,938 52 (22 ) 5,968 Other debt 4,656 104 (37 ) 4,723 Total debt securities 59,303 736 (536 ) 59,503 Other 603 (2 ) 601 Total securities available for sale $ 59,906 $ 736 $ (538 ) $ 60,104 Securities Held to Maturity Debt securities U.S. Treasury and government agencies $ 527 $ 35 $ (22 ) $ 540 Residential mortgage-backed Agency 11,074 68 (161 ) 10,981 Non-agency 191 7 198 Commercial mortgage-backed Agency 903 24 927 Non-agency 567 10 577 Asset-backed 558 (2 ) 556 Other debt 2,023 76 (12 ) 2,087 Total securities held to maturity $ 15,843 $ 220 $ (197 ) $ 15,866 |
Gross Unrealized Loss and Fair Value of Securities Available for Sale | Table 48 : Gross Unrealized Loss and Fair Value of Debt Securities In millions Unrealized loss position less than 12 months Unrealized loss position 12 months or more Total Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value December 31, 2017 Securities Available for Sale Debt securities U.S. Treasury and government agencies $ (42 ) $ 6,099 $ (42 ) $ 1,465 $ (84 ) $ 7,564 Residential mortgage-backed Agency (47 ) 8,151 (202 ) 9,954 (249 ) 18,105 Non-agency (21 ) 383 (21 ) 383 Commercial mortgage-backed Agency (11 ) 524 (47 ) 1,302 (58 ) 1,826 Non-agency (3 ) 400 (6 ) 333 (9 ) 733 Asset-backed (4 ) 1,697 (4 ) 462 (8 ) 2,159 Other debt (3 ) 966 (14 ) 798 (17 ) 1,764 Total debt securities available for sale $ (110 ) $ 17,837 $ (336 ) $ 14,697 $ (446 ) $ 32,534 Securities Held to Maturity Debt securities U.S. Treasury and government agencies $ (3 ) $ 195 $ (10 ) $ 255 $ (13 ) $ 450 Residential mortgage-backed Agency (10 ) 3,167 (129 ) 6,168 (139 ) 9,335 Other debt (12 ) 83 (8 ) 67 (20 ) 150 Total debt securities held to maturity $ (25 ) $ 3,445 $ (147 ) $ 6,490 $ (172 ) $ 9,935 December 31, 2016 Securities Available for Sale Debt securities U.S. Treasury and government agencies $ (57 ) $ 3,108 $ (20 ) $ 2,028 $ (77 ) $ 5,136 Residential mortgage-backed Agency (267 ) 16,942 (20 ) 922 (287 ) 17,864 Non-agency (1 ) 109 (51 ) 1,119 (52 ) 1,228 Commercial mortgage-backed Agency (33 ) 1,577 (1 ) 86 (34 ) 1,663 Non-agency (14 ) 880 (13 ) 987 (27 ) 1,867 Asset-backed (5 ) 1,317 (17 ) 902 (22 ) 2,219 Other debt (33 ) 1,827 (4 ) 243 (37 ) 2,070 Total debt securities available for sale $ (410 ) $ 25,760 $ (126 ) $ 6,287 $ (536 ) $ 32,047 Securities Held to Maturity Debt securities U.S. Treasury and government agencies $ (22 ) $ 238 $ (22 ) $ 238 Residential mortgage-backed Agency (153 ) 8,041 $ (8 ) $ 161 (161 ) 8,202 Asset-backed (2 ) 451 (2 ) 451 Other debt (12 ) 146 1 (12 ) 147 Total debt securities held to maturity $ (187 ) $ 8,425 $ (10 ) $ 613 $ (197 ) $ 9,038 |
Gains (Losses) on Sales Of Securities Available for Sale | Table 49 : Gains (Losses) on Sales of Securities Available for Sale In millions Proceeds Gross Gains Gross Losses Net Gains Tax Expense Year ended December 31 2017 $ 5,722 $ 38 $ (31 ) $ 7 $ 2 2016 $ 3,489 $ 24 $ (8 ) $ 16 $ 6 2015 $ 6,829 $ 56 $ (13 ) $ 43 $ 15 |
Contractual Maturity of Debt Securities | Table 50 : Contractual Maturity of Debt Securities December 31, 2017 1 Year or After 1 Year through 5 Years After 5 Years through 10 Years After 10 Years Total Dollars in millions Securities Available for Sale U.S. Treasury and government agencies $ 85 $ 8,780 $ 4,449 $ 1,118 $ 14,432 Residential mortgage-backed Agency 3 45 561 24,925 25,534 Non-agency 2,443 2,443 Commercial mortgage-backed Agency 2 259 624 1,075 1,960 Non-agency 451 2,152 2,603 Asset-backed 13 1,846 1,897 1,575 5,331 Other debt 521 2,032 670 1,099 4,322 Total debt securities available for sale $ 624 $ 12,962 $ 8,652 $ 34,387 $ 56,625 Fair value $ 626 $ 12,958 $ 8,695 $ 34,754 $ 57,033 Weighted-average yield, GAAP basis 2.73 % 2.12 % 2.29 % 2.97 % 2.67 % Securities Held to Maturity U.S. Treasury and government agencies $ 377 $ 364 $ 741 Residential mortgage-backed Agency $ 67 346 14,090 14,503 Non-agency 167 167 Commercial mortgage-backed Agency $ 172 177 4 54 407 Non-agency 538 538 Asset-backed 114 86 200 Other debt 49 394 854 660 1,957 Total debt securities held to maturity $ 221 $ 638 $ 1,695 $ 15,959 $ 18,513 Fair value $ 221 $ 654 $ 1,751 $ 15,939 $ 18,565 Weighted-average yield, GAAP basis 3.58 % 3.92 % 3.44 % 3.21 % 3.26 % |
Fair Value of Securities Pledged and Accepted as Collateral | Table 51 : Fair Value of Securities Pledged and Accepted as Collateral In millions December 31 December 31 Pledged to others $ 8,175 $ 9,493 Accepted from others: Permitted by contract or custom to sell or repledge $ 1,152 $ 912 Permitted amount repledged to others $ 1,097 $ 799 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value [Abstract] | |
Fair Value Measurements - Recurring Basis Summary | Table 52 : Fair Value Measurements – Recurring Basis Summary December 31, 2017 December 31, 2016 In millions Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Assets Residential mortgage loans held for sale $ 829 $ 3 $ 832 $ 1,008 $ 2 $ 1,010 Commercial mortgage loans held for sale 723 107 830 1,400 1,400 Securities available for sale U.S. Treasury and government agencies $ 14,088 433 14,521 $ 12,572 602 13,174 Residential mortgage-backed Agency 25,406 25,406 26,128 26,128 Non-agency 97 2,661 2,758 112 3,254 3,366 Commercial mortgage-backed Agency 1,904 1,904 2,119 2,119 Non-agency 2,613 2,613 4,025 4,025 Asset-backed 5,065 332 5,397 5,565 403 5,968 Other debt 4,347 87 4,434 4,657 66 4,723 Total debt securities 14,088 39,865 3,080 57,033 12,572 43,208 3,723 59,503 Other 524 61 585 541 60 601 Total securities available for sale 14,612 39,926 3,080 57,618 13,113 43,268 3,723 60,104 Loans 571 298 869 558 335 893 Equity investments (a) 1,036 1,265 1,331 1,381 Residential mortgage servicing rights 1,164 1,164 1,182 1,182 Commercial mortgage servicing rights 668 668 576 576 Trading securities (b) 1,243 1,670 2 2,915 1,458 1,169 2 2,629 Financial derivatives (b) (c) 2,864 10 2,874 10 4,566 40 4,616 Other assets 278 253 107 638 266 312 239 817 Total assets $ 16,133 $ 46,836 $ 6,475 $ 69,673 $ 14,847 $ 50,881 $ 8,830 $ 74,608 Liabilities Other borrowed funds $ 1,079 $ 254 $ 11 $ 1,344 $ 799 $ 161 $ 10 $ 970 Financial derivatives (c) (d) 2,369 487 2,856 1 3,424 414 3,839 Other liabilities 33 33 9 9 Total liabilities $ 1,079 $ 2,623 $ 531 $ 4,233 $ 800 $ 3,585 $ 433 $ 4,818 (a) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheet. (b) Included in Other assets on the Consolidated Balance Sheet. (c) Amounts at December 31, 2017 and December 31, 2016 , are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 13 Financial Derivatives for additional information related to derivative offsetting. (d) Included in Other liabilities on the Consolidated Balance Sheet. |
Reconciliation of Level 3 Assets and Liabilities | Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for 2017 and 2016 follow. Table 53 : Reconciliation of Level 3 Assets and Liabilities Year Ended December 31, 2017 Total realized / unrealized Unrealized Level 3 Instruments Only Fair Included in Included Purchases Sales Issuances Settlements Transfers Transfers Fair Assets Residential mortgage loans $ 2 $ 8 $ (1 ) $ 10 $ (16 ) (c) $ 3 Commercial mortgage 1,400 $ 81 (5,278 ) $ 4,885 $ (258 ) (723 ) (d) 107 $ 4 Securities available for sale Residential mortgage- 3,254 77 $ 137 (33 ) (774 ) 2,661 (1 ) Commercial mortgage- 12 (12 ) Asset-backed 403 12 22 (25 ) (80 ) 332 Other debt 66 19 13 (1 ) (10 ) 87 Total securities 3,723 101 178 13 (71 ) (864 ) 3,080 (1 ) Loans 335 97 (28 ) (68 ) 13 (51 ) (c) 298 (7 ) Equity investments 1,331 239 214 (565 ) (183 ) (e) 1,036 145 Residential mortgage 1,182 (83 ) 185 55 (175 ) 1,164 (79 ) Commercial mortgage 576 46 69 88 (111 ) 668 45 Trading securities 2 2 Financial derivatives 40 39 3 (67 ) (5 ) 10 67 Other assets 239 23 (155 ) 107 24 Total assets $ 8,830 $ 446 $ 178 $ 589 $ (5,943 ) $ 5,028 $ (1,698 ) $ 23 $ (978 ) $ 6,475 $ 198 Liabilities Other borrowed funds $ 10 $ 72 $ (71 ) $ 11 Financial derivatives 414 $ 293 $ 3 (221 ) $ (2 ) 487 $ 297 Other liabilities 9 25 173 (174 ) 33 26 Total liabilities $ 433 $ 318 $ 3 $ 245 $ (466 ) $ (2 ) $ 531 $ 323 Net gains (losses) $ 128 (f) $ (125 ) (g) Year Ended December 31, 2016 Total realized / unrealized Unrealized Level 3 Instruments Only Fair Value Dec. 31, 2015 Included in Included Purchases Sales Issuances Settlements Transfers Transfers (c) Fair Value Dec. 31, 2016 Assets Residential mortgage loans $ 5 $ 10 $ (3 ) $ 10 $ (20 ) $ 2 Commercial mortgage 641 $ 79 (3,810 ) $ 4,515 $ (25 ) 1,400 $ (3 ) Securities available for sale Residential mortgage- 4,008 75 $ 16 (60 ) (785 ) 3,254 (2 ) Asset-backed 482 13 (3 ) (89 ) 403 Other debt 45 1 28 12 (17 ) (3 ) 2 (2 ) 66 Total securities 4,535 89 41 12 (77 ) (877 ) 2 (2 ) 3,723 (2 ) Loans 340 8 126 (22 ) (78 ) 15 (54 ) 335 2 Equity investments 1,098 148 269 (418 ) 235 (e) (1 ) 1,331 127 Residential mortgage 1,063 37 188 62 (168 ) 1,182 39 Commercial mortgage 526 45 36 61 (92 ) 576 45 Trading securities 3 (1 ) 2 Financial derivatives 31 115 2 (108 ) 40 102 Other assets 364 15 (2 ) (138 ) 239 13 Total assets $ 8,606 $ 536 $ 39 $ 643 $ (4,330 ) $ 4,638 $ (1,487 ) $ 262 $ (77 ) $ 8,830 $ 323 Liabilities Other borrowed funds $ 12 $ 87 $ (89 ) $ 10 Financial derivatives 473 $ 127 $ 4 (190 ) 414 $ 129 Other liabilities 10 (9 ) 132 (124 ) 9 Total liabilities $ 495 $ 118 $ 4 $ 219 $ (403 ) $ 433 $ 129 Net gains (losses) $ 418 (f) $ 194 (g) (a) Losses for assets are bracketed while losses for liabilities are not. (b) The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period. (c) Transfers out of Level 3 primarily reflect the reclassification of residential mortgage loans held for sale to held for investment and the transfer of residential mortgage loans to OREO. (d) Reflects a transfer from Level 3 to Level 2 due to an unobservable valuation input that was deemed to be not significant. (e) Reflects transfers into and out of Level 3 associated with changes in valuation methodology for certain equity investments subject to the Volcker Rule provisions of the Dodd-Frank Act. (f) Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts were included in Interest income on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized were included in Noninterest income on the Consolidated Income Statement. (g) Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income on the Consolidated Income Statement. |
Fair Value Measurements - Recurring Quantitative Information | Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities follows. Table 54 : Fair Value Measurements – Recurring Quantitative Information December 31, 2017 Level 3 Instruments Only Dollars in millions Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) Commercial mortgage loans held for sale $ 107 Discounted cash flow Spread over the benchmark curve (a) 525bps - 1,470bps (1,020bps) Residential mortgage-backed 2,661 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate (CPR) 1.0% - 31.6% (10.8% ) Constant default rate (CDR) 0.1% - 18.8% (5.4%) Loss severity 15.0% - 100.0% (51.5% ) Spread over the benchmark curve (a) 190bps weighted average Asset-backed securities 332 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate (CPR) 1.0% - 19.0% (7.9%) Constant default rate (CDR) 2.0% - 11.8% (5.4%) Loss severity 15.0% - 100.0% (68.5%) Spread over the benchmark curve (a) 179bps weighted average Loans 133 Consensus pricing (b) Cumulative default rate 11.0% - 100.0% (85.7%) Loss severity 0.0% - 100.0% (20.6%) Discount rate 5.5% - 8.0% (5.7%) 104 Discounted cash flow Loss severity 8.0% weighted average Discount rate 4.9% weighted average 61 Consensus pricing (b) Credit and Liquidity discount 0.0% - 99.0% (61.1%) Equity investments 1,036 Multiple of adjusted earnings Multiple of earnings 4.5x - 29.7x (8.3x) Residential mortgage servicing rights 1,164 Discounted cash flow Constant prepayment rate (CPR) 0.0% - 36.7% (10.0%) Spread over the benchmark curve (a) 390bps - 1,839bps (830bps) Commercial mortgage servicing rights 668 Discounted cash flow Constant prepayment rate (CPR) 7.7% - 14.2% (8.5%) Discount rate 6.4% - 7.9% (7.8%) Financial derivatives - Swaps related to (380 ) Discounted cash flow Estimated conversion factor of Visa 163.8% weighted average Estimated growth rate of Visa 16.0% Estimated length of litigation Q2 2021 Insignificant Level 3 assets, net of 58 Total Level 3 assets, net of liabilities (d) $ 5,944 December 31, 2016 Level 3 Instruments Only Dollars in millions Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) Commercial mortgage loans held for sale $ 1,400 Discounted cash flow Spread over the benchmark curve (a) 42bps - 1,725bps (362bps) Estimated servicing cash flows 0.0% - 7.3% (1.5%) Residential mortgage-backed 3,254 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate (CPR) 1.0% - 24.2% (7.2%) Constant default rate (CDR) 0.0% - 16.7% (5.3%) Loss severity 10.0% - 98.5% (53.5%) Spread over the benchmark curve (a) 236bps weighted average Asset-backed securities 403 Priced by a third-party vendor using a discounted cash flow pricing model Constant prepayment rate (CPR) 1.0% - 16.0% (6.4%) Constant default rate (CDR) 2.0% - 13.9% (6.6%) Loss severity 24.2% - 100.0% (77.3%) Spread over the benchmark curve (a) 278bps weighted average Loans 141 Consensus pricing (b) Cumulative default rate 11.0% - 100.0% (86.9%) Loss severity 0.0% - 100.0% (22.9%) Discount rate 4.7% - 6.7% (5.1%) 116 Discounted cash flow Loss severity 8.0% weighted average Discount rate 4.2% weighted average 78 Consensus pricing (b) Credit and Liquidity discount 0.0% - 99.0% (57.9%) Equity investments 1,331 Multiple of adjusted earnings Multiple of earnings 4.5x - 12.0x (7.8x) Consensus pricing (b) Liquidity discount 0.0% - 40.0% Residential mortgage servicing rights 1,182 Discounted cash flow Constant prepayment rate (CPR) 0.0% - 36.0% (9.4%) Spread over the benchmark curve (a) 341bps - 1,913bps (850bps) Commercial mortgage servicing rights 576 Discounted cash flow Constant prepayment rate (CPR) 7.5% - 43.4% (8.6%) Discount rate 3.5% - 7.6% (7.5%) Other assets – BlackRock Series C 232 Consensus pricing (b) Liquidity discount 15.0% - 25.0% (20.0%) Financial derivatives - BlackRock LTIP (232 ) Consensus pricing (b) Liquidity discount 15.0% - 25.0% (20.0%) Financial derivatives - Swaps related to (164 ) Discounted cash flow Estimated conversion factor of Class B shares into Class A shares 164.4% weighted average Estimated growth rate of Visa Class 14.0% Estimated length of litigation Q2 2019 Insignificant Level 3 assets, net of 80 Total Level 3 assets, net of liabilities (d) $ 8,397 (a) The assumed yield spread over the benchmark curve for each instrument is generally intended to incorporate non-interest-rate risks, such as credit and liquidity risks. (b) Consensus pricing refers to fair value estimates that are generally internally developed using information such as dealer quotes or other third-party provided valuations or comparable asset prices. (c) Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain financial derivative assets and liabilities, trading securities, state and municipal and other debt securities, residential mortgage loans held for sale, other assets, other borrowed funds and other liabilities. (d) Consisted of total Level 3 assets of $6.4 billion and total Level 3 liabilities of $.5 billion as of December 31, 2017 and $8.8 billion and $.4 billion as of December 31, 2016 , respectively. |
Fair Value Measurements - Nonrecurring | Table 55 : Fair Value Measurements – Nonrecurring Fair Value In millions December 31 December 31 Assets (a) Nonaccrual loans $ 100 $ 187 OREO, foreclosed and other assets 70 107 Long-lived assets 80 18 Total assets $ 250 $ 312 Year ended December 31 In millions Gains (Losses) 2017 2016 2015 Assets (a) Nonaccrual loans $ (8 ) $ (106 ) $ (44 ) OREO, foreclosed and other assets (10 ) (16 ) (18 ) Long-lived assets (168 ) (15 ) (20 ) Total assets $ (186 ) $ (137 ) $ (82 ) (a) All Level 3 for the periods presented. |
Fair Value Measurements - Nonrecurring Quantitative Information | Quantitative information about the significant unobservable inputs within Level 3 nonrecurring assets follows. Table 56 : Fair Value Measurements – Nonrecurring Quantitative Information Level 3 Instruments Only Dollars in millions Fair Value Valuation Techniques Unobservable Inputs (a) December 31, 2017 Assets Nonaccrual loans $ 100 Fair value of property or collateral Appraised value/sales price OREO, foreclosed and other assets 70 Fair value of property or collateral Appraised value/sales price Long-lived assets 47 Fair value of property or collateral Appraised value/sales price 20 Fair value of property or collateral Broker opinion 13 Fair value of property or collateral Projected income/required improvement costs Total assets $ 250 December 31, 2016 Assets Nonaccrual loans $ 187 Fair value of property or collateral Appraised value/sales price OREO, foreclosed and other assets 107 Fair value of property or collateral Appraised value/sales price Long-lived assets 18 Fair value of property or collateral Appraised value/sales price Total assets $ 312 (a) Additional quantitative information for the unobservable inputs was not meaningful for the periods presented. |
Fair Value Option - Fair Value and Principal Balances | Fair values and aggregate unpaid principal balances of items for which we elected the fair value option follow. Table 57 : Fair Value Option – Fair Value and Principal Balances In millions Fair Value Aggregate Unpaid Principal Balance Difference December 31, 2017 Assets Residential mortgage loans held for sale Performing loans $ 822 $ 796 $ 26 Accruing loans 90 days or more past due 3 3 Nonaccrual loans 7 8 (1 ) Total $ 832 $ 807 $ 25 Commercial mortgage loans held for sale (a) Performing loans $ 828 $ 842 $ (14 ) Nonaccrual loans 2 3 (1 ) Total $ 830 $ 845 $ (15 ) Residential mortgage loans Performing loans $ 251 $ 280 $ (29 ) Accruing loans 90 days or more past due 421 431 (10 ) Nonaccrual loans 197 317 (120 ) Total $ 869 $ 1,028 $ (159 ) Other assets $ 216 $ 212 $ 4 Liabilities Other borrowed funds $ 84 $ 85 $ (1 ) December 31, 2016 Assets Residential mortgage loans held for sale Performing loans $ 1,000 $ 988 $ 12 Accruing loans 90 days or more past due 4 4 Nonaccrual loans 6 6 Total $ 1,010 $ 998 $ 12 Commercial mortgage loans held for sale (a) Performing loans $ 1,395 $ 1,412 $ (17 ) Nonaccrual loans 5 9 (4 ) Total $ 1,400 $ 1,421 $ (21 ) Residential mortgage loans Performing loans $ 247 $ 289 $ (42 ) Accruing loans 90 days or more past due 427 428 (1 ) Nonaccrual loans 219 346 (127 ) Total $ 893 $ 1,063 $ (170 ) Other assets $ 293 $ 288 $ 5 Liabilities Other borrowed funds $ 81 $ 82 $ (1 ) (a) There were no accruing loans 90 days or more past due within this category at December 31, 2017 or December 31, 2016 . |
Fair Value Option - Changes in Fair Value | Table 58 : Fair Value Option – Changes in Fair Value (a) Year ended December 31 In millions Gains (Losses) 2017 2016 2015 Assets Residential mortgage loans $ 121 $ 152 $ 152 Commercial mortgage loans $ 87 $ 76 $ 96 Residential mortgage loans $ 27 $ 30 $ 43 Other assets $ 60 $ 50 $ (8 ) Liabilities Other liabilities $ (26 ) $ 4 (a) The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts. |
Additional Fair Value Information Related to Other Financial Instruments | Table 59 : Additional Fair Value Information Related to Other Financial Instruments In millions Carrying Amount Fair Value Total Level 1 Level 2 Level 3 December 31, 2017 Assets Cash and due from banks $ 5,249 $ 5,249 $ 5,249 Interest-earning deposits with banks 28,595 28,595 $ 28,595 Securities held to maturity 18,513 18,565 765 17,658 $ 142 Net loans (excludes leases) 209,044 211,175 211,175 Other assets 6,078 6,736 5,949 787 Total assets $ 267,479 $ 270,320 $ 6,014 $ 52,202 $ 212,104 Liabilities Deposits $ 265,053 $ 264,854 $ 264,854 Borrowed funds 57,744 58,503 56,853 $ 1,650 Unfunded loan commitments and letters of credit 297 297 297 Other liabilities 399 399 399 Total liabilities $ 323,493 $ 324,053 $ 322,106 $ 1,947 December 31, 2016 Assets Cash and due from banks $ 4,879 $ 4,879 $ 4,879 Interest-earning deposits with banks 25,711 25,711 $ 25,711 Securities held to maturity 15,843 15,866 540 15,208 $ 118 Net loans (excludes leases) 199,766 201,863 201,863 Other assets 4,793 5,243 4,666 577 Total assets $ 250,992 $ 253,562 $ 5,419 $ 45,585 $ 202,558 Liabilities Deposits $ 257,164 $ 257,038 $ 257,038 Borrowed funds 51,736 52,322 50,941 $ 1,381 Unfunded loan commitments and letters of credit 301 301 301 Other liabilities 417 417 417 Total liabilities $ 309,618 $ 310,078 $ 308,396 $ 1,682 |
Goodwill and Mortgage Servici37
Goodwill and Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Business Segment | Allocations of Goodwill by business segment during 2017 , 2016 and 2015 follow: Table 60 : Goodwill by Business Segment (a) In millions Retail Banking Corporate & Institutional Banking Asset Management Group Total December 31, 2015 $ 5,795 $ 3,244 $ 64 $ 9,103 December 31, 2016 $ 5,795 $ 3,244 $ 64 $ 9,103 December 31, 2017 (b) $ 5,795 $ 3,314 $ 64 $ 9,173 (a) The BlackRock business segment did not have any allocated goodwill during 2017 , 2016 and 2015 . (b) Corporate & Institutional Banking's goodwill balance as of December 31, 2017 includes the impact of $70 million from business acquisitions in 2017. |
Commercial Mortgage Servicing Rights | Changes in the commercial MSRs follow: Table 61 : Commercial Mortgage Servicing Rights In millions 2017 2016 2015 January 1 $ 576 $ 526 $ 506 Additions: From loans sold with servicing retained 88 61 63 Purchases 69 36 55 Changes in fair value due to: Time and payoffs (a) (111 ) (92 ) (89 ) Other (b) 46 45 (9 ) December 31 $ 668 $ 576 $ 526 Related unpaid principal balance at December 31 $ 162,182 $ 143,139 $ 145,823 Servicing advances at December 31 $ 217 $ 265 $ 251 (a) Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period. (b) Represents MSR value changes resulting primarily from market-driven changes in interest rates. |
Mortgage Servicing Rights | Changes in the residential MSRs follow: Table 62 : Residential Mortgage Servicing Rights In millions 2017 2016 2015 January 1 $ 1,182 $ 1,063 $ 845 Additions: From loans sold with servicing retained 55 62 78 Purchases 185 188 316 Changes in fair value due to: Time and payoffs (a) (175 ) (168 ) (178 ) Other (b) (83 ) 37 2 December 31 $ 1,164 $ 1,182 $ 1,063 Unpaid principal balance of loans serviced for others at December 31 $ 126,769 $ 125,381 $ 123,466 Servicing advances at December 31 $ 201 $ 302 $ 411 (a) Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period. (b) Represents MSR value changes resulting from market-driven changes in interest rates and changes in model assumptions. |
Commercial Mortgage Loan Servicing Assets - Key Valuation Assumptions | The following tables set forth the fair value of commercial and residential MSRs and the sensitivity analysis of the hypothetical effect on the fair value of MSRs to immediate adverse changes of 10% and 20% in those assumptions: Table 63 : Commercial Mortgage Loan Servicing Rights –Key Valuation Assumptions Dollars in millions December 31 December 31 Fair value $ 668 $ 576 Weighted-average life (years) 4.4 4.6 Weighted-average constant 8.51 % 8.61 % Decline in fair value from $ 12 $ 11 Decline in fair value from $ 23 $ 21 Effective discount rate 7.81 % 7.52 % Decline in fair value from $ 18 $ 16 Decline in fair value from $ 36 $ 31 |
Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions | Table 64 : Residential Mortgage Loan Servicing Rights – Key Valuation Assumptions Dollars in millions December 31 December 31 Fair value $ 1,164 $ 1,182 Weighted-average life (years) 6.4 6.8 Weighted-average constant prepayment rate 10.04 % 9.41 % Decline in fair value from 10% adverse change $ 44 $ 45 Decline in fair value from 20% adverse change $ 85 $ 86 Weighted-average option adjusted spread 830 bps 850 bps Decline in fair value from 10% adverse change $ 35 $ 37 Decline in fair value from 20% adverse change $ 67 $ 72 |
Premises, Equipment and Lease38
Premises, Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises, Equipment and Leasehold Improvements | Premises, equipment and leasehold improvements, stated at cost less accumulated depreciation and amortization, were as follows: Table 65 : Premises, Equipment and Leasehold Improvements In millions December 31 December 31 Premises, equipment and leasehold improvements $ 10,939 $ 10,410 Accumulated depreciation and amortization (5,503 ) (4,888 ) Net book value $ 5,436 $ 5,522 |
Depreciation And Amortization Expense | Table 66 : Depreciation and Amortization Expense Year ended December 31 In millions 2017 2016 2015 Depreciation $ 743 $ 683 $ 643 Amortization 56 46 40 Total depreciation and amortization $ 799 $ 729 $ 683 |
Lease Rental Expense | Table 67 : Lease Rental Expense Year ended December 31 In millions 2017 2016 2015 Lease rental expense $ 431 $ 442 $ 460 |
Minimum Annual Lease Rentals | Future minimum annual rentals are as follows: Table 68 : Minimum Annual Lease Rentals In millions 2018 $ 382 2019 $ 343 2020 $ 302 2021 $ 260 2022 $ 217 2023 and thereafter $ 1,051 |
Time Deposits (Tables)
Time Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Time Deposit Maturities | Total time deposits of $17.3 billion at December 31, 2017 have future contractual maturities, including related purchase accounting adjustments, as follows: Table 69 : Time Deposits In billions 2018 $ 12.1 2019 $ 1.1 2020 $ .9 2021 $ 1.0 2022 $ .9 2023 and thereafter $ 1.3 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Total borrowed funds | The following shows the carrying value of total borrowed funds of $ 59.1 billion at December 31, 2017 (including adjustments related to purchase accounting, accounting hedges and unamortized original issuance discounts) by remaining contractual maturity: Table 70 : Borrowed Funds In billions 2018 $ 16.0 2019 $ 12.3 2020 $ 13.8 2021 $ 3.7 2022 $ 4.9 2023 and thereafter $ 8.4 |
Contractual Rates and Maturity Dates of Borrowings | The following table presents the contractual rates and maturity dates of our FHLB borrowings, senior debt and subordinated debt as of December 31, 2017 and the carrying values as of December 31, 2017 and 2016 . Table 71 : FHLB Borrowings, Senior Debt and Subordinated Debt Stated Rate Maturity Carrying Value Dollars in millions 2017 2017 2017 2016 Parent Company Senior debt 1.64%-6.70% 2018-2027 $ 5,203 $ 3,960 Subordinated debt 3.90%-6.88% 2019-2024 1,440 2,038 Junior subordinated debt 2.05% 2028 205 205 Subtotal 6,848 6,203 Bank FHLB (a) zero-6.35% 2018-2030 21,037 17,549 Senior debt 1.05%-3.30% 2018-2043 22,859 19,012 Subordinated debt 2.70%-6.88% 2018-2025 3,555 5,766 Subtotal 47,451 42,327 Total $ 54,299 $ 48,530 (a) FHLB borrowings are generally collateralized by residential mortgage loans, other mortgage-related loans and commercial mortgage-backed securities. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans [Abstract] | |
Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets | Table 72 : Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets Qualified Pension Nonqualified Pension Postretirement Benefits December 31 (Measurement Date) – in millions 2017 2016 2017 2016 2017 2016 Accumulated benefit obligation at end of year $ 4,726 $ 4,495 $ 280 $ 282 Projected benefit obligation at beginning of year $ 4,547 $ 4,397 $ 289 $ 298 $ 373 $ 368 Service cost 160 102 3 3 5 6 Interest cost 179 186 10 12 14 15 Amendments 17 2 Actuarial (gains)/losses and changes in assumptions 172 131 8 7 (18 ) 6 Participant contributions 3 4 Federal Medicare subsidy on benefits paid 1 1 Benefits paid (286 ) (269 ) (24 ) (31 ) (25 ) (27 ) Projected benefit obligation at end of year $ 4,789 $ 4,547 $ 286 $ 289 $ 355 $ 373 Fair value of plan assets at beginning of year $ 4,617 $ 4,316 $ 208 $ 200 Actual return on plan assets 722 320 9 (7 ) Employer contribution 200 250 $ 24 $ 31 34 $ 37 Participant contributions 3 4 Federal Medicare subsidy on benefits paid 1 1 Benefits paid (286 ) (269 ) (24 ) (31 ) (25 ) (27 ) Fair value of plan assets at end of year $ 5,253 $ 4,617 $ 230 $ 208 Funded status $ 464 $ 70 $ (286 ) $ (289 ) $ (125 ) $ (165 ) Amounts recognized on the consolidated balance sheet Noncurrent asset $ 464 $ 70 Current liability $ (28 ) $ (27 ) $ (2 ) $ (2 ) Noncurrent liability (258 ) (262 ) (123 ) (163 ) Net amount recognized on the consolidated balance sheet $ 464 $ 70 $ (286 ) $ (289 ) $ (125 ) $ (165 ) Amounts recognized in Accumulated other comprehensive income (AOCI) Prior service cost (credit) $ 13 $ (7 ) $ 1 $ (3 ) Net actuarial loss 534 841 $ 77 $ 74 18 40 Amount recognized in AOCI $ 547 $ 834 $ 77 $ 74 $ 19 $ 37 |
Asset Strategy Allocations | Table 73 : Asset Strategy Allocations Target Allocation Range Percentage of Plan Assets by Strategy at December 31 PNC Pension Plan 2017 2016 Asset Category Domestic Equity 20 – 40% 30 % 28 % International Equity 10 – 25% 24 % 21 % Private Equity 0 – 15% 9 % 8 % Total Equity 40 – 70% 63 % 57 % Domestic Fixed Income 10 – 40% 16 % 16 % High Yield Fixed Income 0 – 25% 10 % 12 % Total Fixed Income 10 – 65% 26 % 28 % Real estate 0 – 15% 5 % 5 % Other 0 – 10% 6 % 10 % Total 100 % 100 % 100 % |
Pension Plan Assets - Fair Value Hierarchy | The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2017 and 2016 . Table 74 : Pension Plan Assets - Fair Value Hierarchy Fair Value Measurements Using: December 31, 2017 - in millions Fair Value Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest bearing cash $ 11 $ 10 $ 1 Money market funds 339 339 U.S. government and agency securities 338 233 105 Corporate debt 583 578 $ 5 Common stock 804 791 13 Mutual Funds 271 271 Other 77 1 69 7 Investments measured at net asset value (a) 2,830 Total $ 5,253 $ 1,374 $ 1,037 $ 12 December 31, 2016 - in millions Interest bearing cash $ 45 $ 35 $ 10 Money market funds 404 404 U.S. government and agency securities 285 158 127 Corporate debt 580 572 $ 8 Common stock 652 645 7 Other 60 60 Investments measured at net asset value (a) 2,591 Total $ 4,617 $ 1,242 $ 776 $ 8 (a) In accordance with ASC 820-10, collective trust fund investments and limited partnerships are measured at fair value using the NAV per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheet. |
Estimated Cash Flows | The following table provides information regarding our estimated future cash flows related to our various plans. Table 75 : Estimated Cash Flows Pension Plans Postretirement Benefits In millions Qualified Pension Nonqualified Pension Gross PNC Benefit Payments Reduction in PNC Benefit Payments Due to Medicare Part D Subsidy Estimated 2018 employer contributions $ 28 $ 26 Estimated future benefit payments 2018 $ 295 $ 28 $ 26 2019 $ 303 $ 25 $ 27 2020 $ 315 $ 24 $ 27 2021 $ 318 $ 23 $ 26 2022 $ 318 $ 22 $ 26 2023-2027 $ 1,573 $ 100 $ 123 $ 2 |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost/(income) and other amounts recognized in Other comprehensive income (OCI) were as follows. Table 76 : Components of Net Periodic Benefit Cost Qualified Pension Plan Nonqualified Pension Plan Postretirement Benefits Year ended December 31 – in millions 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net periodic cost consists of: Service cost (a) $ 160 $ 102 $ 107 $ 3 $ 3 $ 3 $ 5 6 $ 5 Interest cost 179 186 177 10 12 11 14 15 15 Expected return on plan assets (285 ) (281 ) (297 ) (5 ) (6 ) Amortization of prior service cost/(credit) (3 ) (7 ) (9 ) (1 ) (1 ) (1 ) Amortization of actuarial (gain)/loss 43 45 31 4 5 7 Net periodic cost (benefit) 94 45 9 17 20 21 13 14 19 Other changes in plan assets and benefit obligations recognized in Current year prior service cost/(credit) 17 2 Amortization of prior service (cost)/credit 3 7 9 1 1 1 Current year actuarial loss/(gain) (264 ) 91 152 7 7 (10 ) (22 ) 17 (9 ) Amortization of actuarial gain/(loss) (43 ) (45 ) (31 ) (4 ) (5 ) (7 ) Total recognized in OCI (287 ) 53 130 3 2 (17 ) (19 ) 18 (8 ) Total amounts recognized in net periodic cost and OCI $ (193 ) $ 98 $ 139 $ 20 $ 22 $ 4 $ (6 ) $ 32 $ 11 (a) 2017 Qualified Pension service cost includes $57 million of additional service cost due to the special, one-time cash balance credit announced at the end of 2017. |
Net Periodic Costs - Assumptions | The weighted-average assumptions used (as of the beginning of each year) to determine the net periodic costs shown in Table 76 were as follows. Table 77 : Net Period Costs - Assumptions Net Periodic Cost Determination Year ended December 31 2017 2016 2015 Discount rate Qualified pension 4.00 % 4.25 % 3.95 % Nonqualified pension 3.80 % 3.95 % 3.65 % Postretirement benefits 3.90 % 4.15 % 3.80 % Rate of compensation increase 3.50 % 3.50 % 4.00 % Assumed health care cost trend rate Initial trend 7.00 % 7.25 % 7.50 % Ultimate trend 5.00 % 5.00 % 5.00 % Year ultimate trend reached 2025 2025 2025 Expected long-term return on plan 6.38 % 6.75 % 6.75 % |
Other Pension Assumptions | The weighted-average assumptions used (as of the end of each year) to determine year end obligations for pension and postretirement benefits were as follows. Table 78 : Other Pension Assumptions Year ended December 31 2017 2016 Discount rate Qualified pension 3.60 % 4.00 % Nonqualified pension 3.45 % 3.80 % Postretirement benefits 3.55 % 3.90 % Rate of compensation increase (average) 3.50 % 3.50 % Assumed health care cost trend rate Initial trend 6.75 % 7.00 % Ultimate trend 5.00 % 5.00 % Year ultimate trend reached 2025 2025 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Stock Option - Rollforward | The following table represents the stock option activity for 2017 . Table 79 : Stock Options - Rollforward (a) Year ended Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, January 1 3 $ 55.16 Exercised (2 ) $ 53.22 Outstanding, 1 $ 58.02 2.6 years $ 112 Vested and exercisable, 1 $ 58.02 2.6 years $ 112 (a) Cancelled stock options during 2017 were insignificant. |
Nonvested Incentive/Performance Unit Awards and Restricted Share/Restricted Share Unit Awards - Rollforward | Table 80 : Nonvested Incentive/Performance Unit Awards and Restricted Share/Restricted Share Unit Awards Rollforward (a) Shares in millions Nonvested Incentive/ Performance Units Shares Weighted- Average Grant Date Fair Value Nonvested Restricted Share/ Restricted Share Units Weighted- Average Grant Date Fair Value December 31, 2016 2 $ 81.42 3 $ 83.27 Granted (b) 1 $ 122.13 1 $ 122.09 Vested/Released (b) (1 ) $ 78.69 (1 ) $ 80.69 December 31, 2017 2 $ 94.29 3 $ 95.64 (a) Forfeited awards during 2017 were insignificant. (b) Includes adjustments for achieving specific performance goals for Incentive/ Performance Unit Share Awards granted in prior periods. |
Financial Derivatives (Tables)
Financial Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Total Gross Derivatives | The following table presents the notional amounts and gross fair values of all derivative assets and liabilities held by us. Table 81 : Total Gross Derivatives December 31, 2017 December 31, 2016 In millions Notional / Contract Amount Asset Fair Value (a) Liability Fair Value (b) Notional / Contract Amount Asset Fair Value (a) Liability Fair Value (b) Derivatives used for hedging under GAAP Interest rate contracts (c): Fair value hedges (d) $ 34,059 $ 114 $ 94 $ 34,010 $ 551 $ 214 Cash flow hedges (d) 23,875 60 6 20,831 313 71 Foreign exchange contracts: Net investment hedges 1,060 11 945 25 Total derivatives designated for hedging $ 58,994 $ 174 $ 111 $ 55,786 $ 889 $ 285 Derivatives not used for hedging under GAAP Derivatives used for mortgage banking activities (e): Interest rate contracts: Swaps (d) $ 48,335 $ 162 $ 42 $ 49,071 $ 783 $ 505 Futures (f) 47,494 36,264 Mortgage-backed commitments 8,999 19 9 13,317 96 56 Other 2,530 11 2 31,907 28 4 Subtotal 107,358 192 53 130,559 907 565 Derivatives used for customer-related activities: Interest rate contracts: Swaps (d) 194,042 2,079 1,772 173,777 2,373 2,214 Futures (f) 3,453 4,053 Mortgage-backed commitments 2,228 2 2 2,955 10 8 Other 17,775 75 36 16,203 55 53 Subtotal 217,498 2,156 1,810 196,988 2,438 2,275 Foreign exchange contracts and other 27,330 349 332 21,889 342 309 Subtotal 244,828 2,505 2,142 218,877 2,780 2,584 Derivatives used for other risk management activities: Foreign exchange contracts and other (g) 7,445 3 550 5,581 40 405 Total derivatives not designated for hedging $ 359,631 $ 2,700 $ 2,745 $ 355,017 $ 3,727 $ 3,554 Total gross derivatives $ 418,625 $ 2,874 $ 2,856 $ 410,803 $ 4,616 $ 3,839 Less: Impact of legally enforceable master netting agreements (d) (1,054 ) (1,054 ) (2,460 ) (2,460 ) Less: Cash collateral received/paid (d) (636 ) (763 ) (657 ) (484 ) Total derivatives $ 1,184 $ 1,039 $ 1,499 $ 895 (a) Included in Other assets on our Consolidated Balance Sheet. (b) Included in Other liabilities on our Consolidated Balance Sheet. (c) Represents primarily swaps. (d) In the first quarter of 2017, PNC changed its accounting treatment for variation margin related to certain derivative instruments cleared through a central clearing house. Previously, variation margin was treated as collateral subject to offsetting. As a result of changes made by the clearing house to its rules governing such instruments with its counterparties, effective for the first quarter of 2017, variation margin is treated as a settlement payment on the derivative instrument. The impact at December 31, 2017 was a reduction of gross derivative assets and gross derivative liabilities by $.8 billion and $.7 billion , respectively. The accounting change had no impact on the net fair value of the derivative assets and liabilities that otherwise would have been reported on our Consolidated Balance Sheet. See Table 85 for more information. (e) Includes both residential and commercial mortgage banking activities. (f) Futures contracts settle in cash daily and, therefore, no derivative asset or derivative liability is recognized on our Consolidated Balance Sheet. (g) Includes our obligation to fund a portion of certain BlackRock LTIP programs and the swaps entered into in connection with sales of a portion of Visa Class B common shares. |
Gains (Losses) on Derivatives and Related Hedged Items - Fair Value Hedges | Further detail regarding gains (losses) on fair value hedge derivatives and related hedged items is presented in the following table: Table 82 : Gains (Losses) on Derivatives and Related Hedged Items – Fair Value Hedges (a) Year ended December 31, 2017 December 31, 2016 December 31, 2015 In millions Hedged Items Location Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Related Hedged Items Recognized in Income Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Related Hedged Items Recognized in Income Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Related Hedged Items Recognized in Income Interest rate contracts U.S. Treasury and Government Agencies and Other Debt Securities Investment securities (interest income) $ 48 $ (50 ) $ 142 $ (141 ) Interest rate contracts Subordinated Debt and Bank Notes and Senior Debt Borrowed funds (interest expense) (284 ) 268 (332 ) 299 $ (108 ) $ 67 Total (a) $ (236 ) $ 218 $ (190 ) $ 158 $ (108 ) $ 67 (a) The difference between the gains (losses) recognized in income on derivatives and their related hedged items represents the ineffective portion of the change in value of our fair value hedge derivatives. |
Gains (Losses) on Derivatives and Related Cash Flows - Cash Flow Hedges | Further detail regarding gains (losses) on derivatives and related cash flows is presented in the following table: Table 83 : Gains (Losses) on Derivatives and Related Cash Flows – Cash Flow Hedges (a) (b) Year ended December 31 In millions 2017 2016 2015 Gains (losses) on derivatives recognized in OCI – (effective portion) $ (90 ) $ 100 $ 415 Less: Gains (losses) reclassified from accumulated OCI into income – (effective portion) Interest income $ 180 $ 253 $ 293 Noninterest income 17 (5 ) Total gains (losses) reclassified from accumulated OCI into income – (effective portion) $ 197 $ 253 $ 288 Net unrealized gains (losses) on cash flow hedge derivatives $ (287 ) $ (153 ) $ 127 (a) All cash flow hedge derivatives are interest rate contracts as of December 31, 2017 , December 31, 2016 and December 31, 2015 . (b) The amount of cash flow hedge ineffectiveness recognized in income was not significant for the periods presented. |
Gains (Losses) on Derivatives Not Designated as Hedging Instruments under GAAP | Further detail regarding the gains (losses) on derivatives not designated in hedging relationships is presented in the following table: Table 84 : Gains (Losses) on Derivatives Not Designated for Hedging under GAAP Year ended December 31 In millions 2017 2016 2015 Derivatives used for mortgage banking activities: Interest rate contracts (a) $ 75 $ 152 $ 220 Derivatives used for customer-related activities: Interest rate contracts 95 78 71 Foreign exchange contracts and other 146 84 78 Gains (losses) from customer-related activities (b) 241 162 149 Derivatives used for other risk management activities: Foreign exchange contracts and other (c) (525 ) (7 ) 282 Gains (losses) from other risk management activities (b) (525 ) (7 ) 282 Total gains (losses) from derivatives not designated as hedging instruments $ (209 ) $ 307 $ 651 (a) Included in Residential mortgage, Corporate services and Other noninterest income. (b) Included in Other noninterest income. (c) Includes BlackRock LTIP funding obligation and the swaps entered into in connection with sales of a portion of Visa Class B common shares. |
Derivative Assets And Liabilities Offsetting | Table 85 : Derivative Assets and Liabilities Offsetting Gross Fair Value Amounts Offset on the Consolidated Balance Sheet Net Fair Value Securities Collateral Held / (Pledged) Under Master Netting Agreements Net Amounts December 31, 2017 Fair Value Offset Amount Cash Collateral Derivative assets Interest rate contracts: Over-the-counter cleared (a) $ 827 $ 251 $ 567 $ 9 $ 9 Over-the-counter 1,695 668 67 960 $ 32 928 Foreign exchange and other contracts 352 135 2 215 215 Total derivative assets $ 2,874 $ 1,054 $ 636 $ 1,184 (b) $ 32 $ 1,152 Derivative liabilities Interest rate contracts: Over-the-counter cleared (a) $ 260 $ 251 $ 9 $ 9 Over-the-counter 1,703 662 $ 669 372 372 Foreign exchange and other contracts 893 141 94 658 658 Total derivative liabilities $ 2,856 $ 1,054 $ 763 $ 1,039 (c) $ 1,039 December 31, 2016 Derivative assets Interest rate contracts: Over-the-counter cleared (a) $ 1,498 $ 940 $ 480 $ 78 $ 78 Exchange-traded 9 9 9 Over-the-counter 2,702 1,358 164 1,180 $ 62 1,118 Foreign exchange and other contracts 407 162 13 232 232 Total derivative assets $ 4,616 $ 2,460 $ 657 $ 1,499 (b) $ 62 $ 1,437 Derivative liabilities Interest rate contracts: Over-the-counter cleared (a) $ 1,060 $ 940 $ 25 $ 95 $ 95 Exchange-traded 1 1 1 Over-the-counter 2,064 1,395 431 238 238 Foreign exchange and other contracts 714 125 28 561 561 Total derivative liabilities $ 3,839 $ 2,460 $ 484 $ 895 (c) $ 895 (a) Reflects our first quarter 2017 change in accounting treatment for variation margin for certain derivative instruments cleared through a central clearing house. The accounting change reduced the asset and liability gross fair values with corresponding reductions to the fair value and cash collateral offsets, resulting in no changes to the net fair value amounts. (b) Represents the net amount of derivative assets included in Other assets on our Consolidated Balance Sheet. (c) Represents the net amount of derivative liabilities included in Other liabilities on our Consolidated Balance Sheet. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Common Share | Table 86 : Basic and Diluted Earnings Per Common Share In millions, except per share data 2017 2016 2015 Basic Net income $ 5,388 $ 3,985 $ 4,143 Less: Net income attributable to noncontrolling interests 50 82 37 Preferred stock dividends 236 209 220 Preferred discount accretion and redemptions 26 6 5 Net income attributable to common shares 5,076 3,688 3,881 Less: Dividends and undistributed earnings allocated to participating securities 23 26 17 Net income attributable to basic common shares $ 5,053 $ 3,662 $ 3,864 Basic weighted-average common shares outstanding 481 494 514 Basic earnings per common share (a) $ 10.49 $ 7.42 $ 7.52 Diluted Net income attributable to basic common shares $ 5,053 $ 3,662 $ 3,864 Less: Impact of BlackRock earnings per share dilution 16 12 18 Net income attributable to diluted common shares $ 5,037 $ 3,650 $ 3,846 Basic weighted-average common shares outstanding 481 494 514 Dilutive potential common shares 5 6 7 Diluted weighted-average common shares outstanding 486 500 521 Diluted earnings per common share (a) $ 10.36 $ 7.30 $ 7.39 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares and restricted share units with nonforfeitable dividends and dividend rights (participating securities). |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Preferred Stock - Authorized, Issued and Outstanding | The following table provides the number of preferred shares issued and outstanding, the liquidation value per share and the number of authorized preferred shares that are available for future use. Table 87 : Preferred Stock – Authorized, Issued and Outstanding Preferred Shares December 31 Shares in thousands Liquidation value per share 2017 2016 Authorized $1 par value 20,000 20,000 Issued and outstanding Series B $ 40 1 1 Series O $ 100,000 10 10 Series P $ 100,000 15 15 Series Q $ 100,000 5 5 Series R $ 100,000 5 5 Series S $ 100,000 5 5 Total issued and outstanding 41 41 |
Terms Of Outstanding Preferred Stock | The following table discloses information related to the preferred stock outstanding as of December 31, 2017 . Table 88 : Terms of Outstanding Preferred Stock Preferred Stock Issue Date Number of Depositary Shares Issued Fractional Interest in a share of preferred stock represented by each Depositary Share Dividend Dates (a) Annual Per Share Dividend Rate Optional Redemption Date (b) Series B (c) (c) N/A N/A Quarterly from March 10 th $ 1.80 None Series O (d) July 27, 2011 1 million 1/100 th Semi-annually beginning on February 1, 2012 6.75% until August 1, 2021 August 1, 2021 Series P (d) April 24, 2012 60 million 1/4,000 th Quarterly beginning on August 1, 2012 6.125% until May 1, 2022 May 1, 2022 Series Q (d) September 21, 2012 18 million 1/4,000 th Quarterly beginning on December 1, 2012 5.375 % December 1, 2017 Series R (d) May 7, 2013 500,000 1/100 th Semi-annually beginning on December 1, 2013 4.85% until June 1, 2023 June 1, 2023 Series S (d) November 1, 2016 525,000 1/100 th Semi-annually beginning on May 1, 2017 5.00% until November 1, 2026 November 1, 2026 (a) Dividends are payable when, as, and if declared by our Board of Directors or an authorized committee of our Board of Directors. (b) Redeemable at our option on or after the date stated. With the exception of the Series B preferred stock, redeemable at our option within 90 days of a regulatory capital treatment event as defined in the designations. (c) Cumulative preferred stock. Holders of Series B preferred stock are entitled to 8 votes per share, which is equal to the number of full shares of common stock into which the Series B preferred stock is convertible. The Series B preferred stock was issued in connection with the consolidation of Pittsburgh National Corporation and Provident National Corporation in 1983. (d) Non-Cumulative preferred stock. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Comprehensive Income [Abstract] | |
Other Comprehensive Income | Details of other comprehensive income (loss) are as follows: Table 89 : Other Comprehensive Income In millions 2017 2016 2015 Net unrealized gains (losses) on non-OTTI securities Increase in net unrealized gains (losses) on non-OTTI securities $ 29 $ (329 ) $ (494 ) Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income 25 24 27 Less: Net gains (losses) realized on sales of securities reclassified to noninterest income (12 ) 16 48 Net increase (decrease), pre-tax 16 (369 ) (569 ) Effect of income taxes (6 ) 135 208 Net increase (decrease), after-tax 10 (234 ) (361 ) Net unrealized gains (losses) on OTTI securities Increase in net unrealized gains (losses) on OTTI securities 173 61 (17 ) Less: Net gains (losses) realized on sales of securities reclassified to noninterest income 2 Less: OTTI losses realized on securities reclassified to noninterest income (1 ) (2 ) (4 ) Net increase (decrease), pre-tax 172 63 (13 ) Effect of income taxes (63 ) (23 ) 5 Net increase (decrease), after-tax 109 40 (8 ) Net unrealized gains (losses) on cash flow hedge derivatives Increase in net unrealized gains (losses) on cash flow hedge derivatives (90 ) 100 415 Less: Net gains (losses) realized as a yield adjustment reclassified to loan interest income 159 219 270 Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income 21 34 23 Less: Net gains (losses) realized on sales of securities reclassified to noninterest income 17 (5 ) Net increase (decrease), pre-tax (287 ) (153 ) 127 Effect of income taxes 105 56 (47 ) Net increase (decrease), after-tax (182 ) (97 ) 80 Pension and other postretirement benefit plan adjustments Net pension and other postretirement benefit activity 126 (41 ) (82 ) Amortization of actuarial loss (gain) reclassified to other noninterest expense 47 50 38 Amortization of prior service cost (credit) reclassified to other noninterest expense (4 ) (8 ) (10 ) Net increase (decrease), pre-tax 169 1 (54 ) Effect of income taxes (62 ) 20 Net increase (decrease), after-tax 107 1 (34 ) Other PNC’s portion of BlackRock’s OCI 52 (63 ) (39 ) Net investment hedge derivatives (81 ) 186 60 Foreign currency translation adjustments 90 (182 ) (63 ) Net increase (decrease), pre-tax 61 (59 ) (42 ) Effect of income taxes 12 (46 ) (8 ) Net increase (decrease), after-tax 73 (105 ) (50 ) Total other comprehensive income, pre-tax 131 (517 ) (551 ) Total other comprehensive income, tax effect (14 ) 122 178 Total other comprehensive income, after-tax $ 117 $ (395 ) $ (373 ) |
Accumulated Other Comprehensive Income (Loss) Components | Table 90 : Accumulated Other Comprehensive Income (Loss) Components In millions, after-tax Net unrealized gains (losses) on non-OTTI securities Net unrealized gains (losses) on OTTI securities Net unrealized gains (losses) on cash flow hedge derivatives Pension and other postretirement benefit plan adjustments Other Total Balance at December 31, 2014 $ 647 $ 74 $ 350 $ (520 ) $ (48 ) $ 503 Net activity (361 ) (8 ) 80 (34 ) (50 ) (373 ) Balance at December 31, 2015 $ 286 $ 66 $ 430 $ (554 ) $ (98 ) $ 130 Net activity (234 ) 40 (97 ) 1 (105 ) (395 ) Balance at December 31, 2016 $ 52 $ 106 $ 333 $ (553 ) $ (203 ) $ (265 ) Net Activity 10 109 (182 ) 107 73 117 Balance at December 31, 2017 $ 62 $ 215 $ 151 $ (446 ) $ (130 ) $ (148 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Components of Income Tax Expense | The components of income tax expense are as follows: Table 91 : Components of Income Tax Expense Year ended December 31 In millions 2017 2016 2015 Current Federal $ 454 $ 871 $ 927 State 51 71 33 Total current 505 942 960 Deferred Federal (474 ) 301 320 State 71 25 84 Total deferred (403 ) 326 404 Total (a) $ 102 $ 1,268 $ 1,364 (a) The 2017 results benefited from the new federal tax legislation that was enacted on December 22, 2017. |
Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities are as follows: Table 92 : Deferred Tax Assets and Liabilities December 31 – in millions 2017 (a) 2016 Deferred tax assets Allowance for loan and lease losses $ 631 $ 976 Compensation and benefits 223 548 Partnership investments 173 307 Loss and credit carryforward 301 460 Accrued expenses 284 505 Other 131 252 Total gross deferred tax assets 1,743 3,048 Valuation allowance (40 ) (75 ) Total deferred tax assets 1,703 2,973 Deferred tax liabilities Leasing 1,034 1,374 Goodwill and intangibles 197 312 Fixed assets 206 391 Mortgage servicing rights 146 246 Net unrealized gains on securities and financial instruments 155 284 BlackRock basis difference 1,594 2,361 Other 345 371 Total deferred tax liabilities 3,677 5,339 Net deferred tax liability $ 1,974 $ 2,366 (a) Reflected the impact of new federal tax legislation that was enacted on December 22, 2017. Certain tax legislation amounts are considered reasonable estimates as of December 31, 2017. |
Reconciliation of Statutory and Effective Tax Rates | A reconciliation between the statutory and effective tax rates follows: Table 93 : Reconciliation of Statutory and Effective Tax Rates Year ended December 31 2017 2016 2015 Statutory tax rate 35.0 % 35.0 % 35.0 % Increases (decreases) resulting from: State taxes net of federal benefit 1.5 1.2 1.4 Tax-exempt interest (2.5 ) (2.4 ) (2.3 ) Life insurance (1.8 ) (1.9 ) (1.7 ) Dividend received deduction (1.8 ) (1.8 ) (1.7 ) Tax credits (4.2 ) (4.4 ) (3.9 ) Federal deferred tax revaluation (21.7 ) Other (2.6 ) (1.6 ) (2.0 ) (a) Effective tax rate (b) 1.9 % 24.1 % 24.8 % (a) Includes tax benefits associated with settlement of acquired entity tax contingencies. (b) The effective tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax. The 2017 results benefited from the new federal tax legislation. Certain tax legislation amounts are considered reasonable estimates as of December 31, 2017. |
Net Operating Loss Carryforwards | The net operating loss carryforwards at December 31, 2017 and 2016 follow Table 94 : Net Operating Loss Carryforwards Dollars in millions December 31, December 31, Expiration Net Operating Loss Carryforwards: Federal $ 640 $ 759 2032 State $ 1,776 $ 2,345 2018 – 2036 |
Change in Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: Table 95 : Change in Unrecognized Tax Benefits In millions 2017 2016 2015 Balance of gross unrecognized tax benefits at January 1 $ 22 $ 26 $ 77 Increases: Positions taken during a prior period 4 14 17 Decreases: Positions taken during a prior period (3 ) (14 ) (9 ) Settlements with taxing authorities (4 ) (52 ) Reductions resulting from lapse of statute of limitations (1 ) (4 ) (7 ) Balance of gross unrecognized tax benefits at December 31 $ 18 $ 22 $ 26 Favorable (unfavorable) impact if recognized $ 17 $ 18 $ 20 |
IRS Tax Examination Status | Table 96 : IRS Tax Examination Status Years under examination Status at December 31 Federal 2014 – 2015 Completed 2016 Under Exam |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Basel Regulatory Capital | The following table sets forth the Transitional Basel III regulatory capital ratios at December 31, 2017 and December 31, 2016 for PNC and PNC Bank. Table 97 : Basel Regulatory Capital (a) Amount Ratios December 31 2017 2016 2017 2016 “Well Capitalized” Requirements Risk-based capital Common equity Tier 1 PNC $ 32,146 $ 31,799 10.4 % 10.6 % N/A PNC Bank $ 28,771 $ 27,896 9.7 % 9.7 % 6.5 % Tier 1 PNC $ 36,007 $ 36,101 11.6 % 12.0 % 6.0 % PNC Bank $ 28,942 $ 29,495 9.7 % 10.2 % 8.0 % Total PNC $ 42,496 $ 43,016 13.7 % 14.3 % 10.0 % PNC Bank $ 34,756 $ 35,842 11.7 % 12.4 % 10.0 % Leverage PNC $ 36,007 $ 36,101 9.9 % 10.1 % N/A PNC Bank $ 28,942 $ 29,495 8.2 % 8.6 % 5.0 % (a) Calculated using the Transitional Basel III regulatory capital methodology applicable to us during both 2017 and 2016 . |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Guarantees [Abstract] | |
Commitments to Extend Credit and Other Commitments | The following table presents our outstanding commitments to extend credit along with significant other commitments as of December 31, 2017 and December 31, 2016 , respectively. Table 98 : Commitments to Extend Credit and Other Commitments In millions December 31 2017 December 31 2016 Commitments to extend credit Total commercial lending $ 112,125 $ 108,256 Home equity lines of credit 17,852 17,438 Credit card 24,911 22,095 Other 4,753 4,192 Total commitments to extend credit 159,641 151,981 Net outstanding standby letters of 8,651 8,324 Reinsurance agreements (b) 1,654 1,835 Standby bond purchase agreements (c) 843 790 Other commitments (d) 1,732 967 Total commitments to extend $ 172,521 $ 163,897 (a) Net outstanding standby letters of credit include $3.5 billion and $3.9 billion at December 31, 2017 and December 31, 2016 , respectively, which support remarketing programs. (b) Represents aggregate maximum exposure up to the specified limits of the reinsurance contracts provided by our wholly-owned captive insurance subsidiary. These amounts reflect estimates based on availability of financial information from insurance carriers. As of December 31, 2017 , the aggregate maximum exposure amount comprised $1.5 billion for accidental death & dismemberment contracts and $.2 billion for credit life, accident & health contracts. Comparable amounts at December 31, 2016 were $1.5 billion and $.3 billion , respectively. (c) We enter into standby bond purchase agreements to support municipal bond obligations. (d) Includes $.5 billion related to investments in qualified affordable housing projects at both December 31, 2017 and December 31, 2016 . |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Income Statement - Parent Company | Summarized financial information of the parent company is as follows: Table 99 : Parent Company – Income Statement Year ended December 31 – in millions 2017 2016 2015 Operating Revenue Dividends from: Bank subsidiaries and bank holding $ 3,278 $ 2,906 $ 3,110 Non-bank subsidiaries 376 130 49 Interest income 109 93 82 Noninterest income 37 13 56 Total operating revenue 3,800 3,142 3,297 Operating Expense Interest expense 215 197 193 Other expense 175 109 89 Total operating expense 390 306 282 Income before income taxes and equity 3,410 2,836 3,015 Income tax benefits (52 ) (96 ) (98 ) Income before equity in undistributed 3,462 2,932 3,113 Equity in undistributed net income of Bank subsidiaries and bank holding 1,974 818 736 Non-bank subsidiaries (98 ) 153 257 Net income $ 5,338 $ 3,903 $ 4,106 Other comprehensive income, net of Net pension and other postretirement 1 13 (3 ) Other comprehensive income (loss) 1 13 (3 ) Comprehensive income $ 5,339 $ 3,916 $ 4,103 |
Balance Sheet - Parent company | Table 100 : Parent Company – Balance Sheet December 31 – in millions 2017 2016 Assets Cash held at banking subsidiary $ 1 $ 1 Restricted deposits with banking subsidiary 175 175 Nonrestricted interest-earning deposits 5,800 4,684 Investments in: Bank subsidiaries and bank holding 44,360 42,361 Non-bank subsidiaries 2,398 2,859 Loans with affiliates 1,244 1,358 Other assets 1,243 1,322 Total assets $ 55,221 $ 52,760 Liabilities Subordinated debt (a) $ 1,645 $ 2,242 Senior debt (a) 5,203 3,959 Commercial paper 100 Other borrowed funds from affiliates 108 223 Accrued expenses and other liabilities 652 637 Total liabilities 7,708 7,061 Equity Shareholders’ equity 47,513 45,699 Total liabilities and equity $ 55,221 $ 52,760 (a) See Note 10 Borrowed Funds for additional information on contractual rates and maturity dates of senior debt and subordinated debt for parent company. |
Interest Paid and Income Tax Refunds (Payments) - Parent company | Table 101 : Parent Company – Interest Paid and Income Tax Refunds (Payments) Year ended December 31 – in millions Interest Paid Income Tax Refunds / (Payments) 2017 $ 287 $ 40 2016 $ 317 $ 183 2015 $ 404 $ 64 |
Statement of Cash Flows - Parent company | Table 102 : Parent Company – Statement of Cash Flows Year ended December 31 – in millions 2017 2016 2015 Operating Activities Net income $ 5,338 $ 3,903 $ 4,106 Adjustments to reconcile net income Equity in undistributed net (1,974 ) (971 ) (993 ) Return on investment in subsidiary 98 Other 194 143 149 Net cash provided (used) by operating 3,656 3,075 3,262 Investing Activities Net change in loans and securities 114 2,161 (185 ) Net change in restricted deposits with (175 ) 400 Net change in nonrestricted (1,116 ) (1,607 ) 3,244 Net change in restricted 300 (300 ) Other 266 (82 ) Net cash provided (used) by (1,002 ) 945 3,077 Financing Activities Net change in other borrowed funds 316 (124 ) (100 ) Net change in senior debt 1,325 (1,252 ) (1,888 ) Net change in subordinated debt (580 ) 17 (580 ) Net change in commercial paper 100 Preferred stock issuances 519 Preferred stock redemptions (500 ) Common and treasury stock issuances 132 151 139 Acquisition of treasury stock (2,447 ) (2,062 ) (2,152 ) Preferred stock cash dividends paid (236 ) (209 ) (219 ) Common stock cash dividends paid (1,264 ) (1,060 ) (1,039 ) Net cash provided (used) by (2,654 ) (4,020 ) (6,339 ) Cash held at banking subsidiary at 1 1 1 Cash held at banking subsidiary at $ 1 $ 1 $ 1 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Results of Businesses | Table 103 : Results of Businesses Year ended December 31 Retail Banking Corporate & Institutional Banking Asset Management Group BlackRock Other Consolidated (a) 2017 INCOME STATEMENT Net interest income $ 4,625 $ 3,396 $ 287 $ 800 $ 9,108 Noninterest income 2,236 2,271 881 $ 1,078 755 7,221 Total revenue 6,861 5,667 1,168 1,078 1,555 16,329 Provision for credit losses (benefit) 347 160 1 (67 ) 441 Depreciation and amortization 177 184 50 510 921 Other noninterest expense 5,274 2,244 813 1,146 9,477 Income (loss) before income taxes (benefit) and 1,063 3,079 304 1,078 (34 ) 5,490 Income taxes (benefit) 533 615 102 (686 ) (462 ) 102 Net income $ 530 $ 2,464 $ 202 $ 1,764 $ 428 $ 5,388 Average Assets (b) $ 88,663 $ 148,414 $ 7,511 $ 7,677 $ 119,504 $ 371,769 2016 INCOME STATEMENT Net interest income $ 4,509 $ 3,181 $ 300 $ 401 $ 8,391 Noninterest income 2,693 2,035 851 $ 685 507 6,771 Total revenue 7,202 5,216 1,151 685 908 15,162 Provision for credit losses (benefit) 297 177 (6 ) (35 ) 433 Depreciation and amortization 175 153 45 470 843 Other noninterest expense 5,116 2,069 780 668 8,633 Income (loss) before income taxes (benefit) and 1,614 2,817 332 685 (195 ) 5,253 Income taxes (benefit) 591 908 122 153 (506 ) 1,268 Net income $ 1,023 $ 1,909 $ 210 $ 532 $ 311 $ 3,985 Average Assets (b) $ 85,871 $ 140,309 $ 7,707 $ 7,118 $ 120,255 $ 361,260 2015 INCOME STATEMENT Net interest income $ 4,306 $ 3,144 $ 292 $ 536 $ 8,278 Noninterest income 2,781 1,947 869 $ 717 633 6,947 Total revenue 7,087 5,091 1,161 717 1,169 15,225 Provision for credit losses (benefit) 253 78 9 (85 ) 255 Depreciation and amortization 187 149 44 429 809 Other noninterest expense 5,257 2,038 802 557 8,654 Income before income taxes (benefit) and noncontrolling 1,390 2,826 306 717 268 5,507 Income taxes (benefit) 506 934 112 169 (357 ) 1,364 Net income $ 884 $ 1,892 $ 194 $ 548 $ 625 $ 4,143 Average Assets (b) $ 86,977 $ 133,754 $ 7,920 $ 6,983 $ 119,330 $ 354,964 (a) There were no material intersegment revenues for the years ended 2017 , 2016 and 2015 . (b) Period-end balances for BlackRock. |
Accounting Policies (Details)
Accounting Policies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)state | Dec. 31, 2016USD ($) | |
Number of states in which entity operates | state | 19 | |
Charge off threshold - small business commercial loans | $ 1 | |
Minimum | Furniture and Equipment | ||
Estimated useful life of property and equipment | 1 year | |
Minimum | Software and Software Development Costs | ||
Estimated useful life of property and equipment | 1 year | |
Maximum | Furniture and Equipment | ||
Estimated useful life of property and equipment | 10 years | |
Maximum | Buildings | ||
Estimated useful life of property and equipment | 40 years | |
Maximum | Leasehold Improvements | ||
Estimated useful life of property and equipment | 15 years | |
Maximum | Software and Software Development Costs | ||
Estimated useful life of property and equipment | 10 years | |
PNC Foundation | Stock | ||
Contribution of stock | $ 200 | $ 75 |
Loan Sale and Servicing Activ53
Loan Sale and Servicing Activities and Variable Interest Entities (Narrative) (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Liability related to investments in low income housing tax credits | $ 0.5 | |
Cumulative effect of adopting ASU 2014-01 | Low Income Housing Tax Credit Investments | ||
Other Tax Benefits Recognized Low Income Housing Tax Credit Investments | 0.1 | $ 0.1 |
Tax Credits Recognized Low Income Housing Tax Credit Investments | 0.2 | 0.2 |
Amortization Recognized Low Income Housing Tax Credit Investments | $ 0.2 | $ 0.2 |
Loan Sale and Servicing Activ54
Loan Sale and Servicing Activities and Variable Interest Entities (Cash Flows Associated with Loan Sale and Servicing Activities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Residential Mortgage | ||
Cash flows from sales of loans | $ 5,759 | $ 6,913 |
Cash flows from repurchases of previously transferred loans | 464 | 534 |
Cash flows from servicing fees | 374 | 374 |
Cash flows from servicing advances recovered | 101 | 109 |
Cash flows on mortgage-backed securities held | 1,527 | 1,727 |
Carrying value of mortgage-backed securities held | 8,800 | 6,900 |
Commercial Mortgage | ||
Cash flows from sales of loans | 5,276 | 3,810 |
Cash flows from servicing fees | 126 | 125 |
Cash flows from servicing advances recovered | 48 | |
Cash flows from servicing advances (funded) | (14) | |
Cash flows on mortgage-backed securities held | 206 | 283 |
Carrying value of mortgage-backed securities held | $ 600 | $ 900 |
Loan Sale and Servicing Activ55
Loan Sale and Servicing Activities and Variable Interest Entities (Principal Balance, Delinquent Loans (Loans 90 Days or More Past Due), and Net Charge-Offs Related to Serviced Loans) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Residential Mortgage | ||
Total principal balance | $ 58,320 | $ 66,081 |
Delinquent loans | 899 | 1,422 |
Net charge-offs | 78 | 97 |
Commercial Mortgages | ||
Total principal balance | 49,116 | 45,855 |
Delinquent loans | 355 | 941 |
Net charge-offs | $ 965 | $ 1,439 |
Loan Sale and Servicing Activ56
Loan Sale and Servicing Activities and Variable Interest Entities (Non-Consolidated VIEs) (Details) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
PNC Risk of Loss | $ 12,807 | $ 11,086 |
Carrying Value of Assets Owned by PNC | 12,739 | 11,046 |
Carrying Value of Liabilities Owned by PNC | 858 | 823 |
Mortgage-Backed Securitizations | ||
PNC Risk of Loss | 9,738 | 8,003 |
Carrying Value of Assets Owned by PNC | 9,738 | 8,003 |
Tax Credit Investments And Other | ||
PNC Risk of Loss | 3,069 | 3,083 |
Carrying Value of Assets Owned by PNC | 3,001 | 3,043 |
Carrying Value of Liabilities Owned by PNC | $ 858 | $ 823 |
Asset Quality (Narrative) (Deta
Asset Quality (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Number of portfolio segments | segment | 2 | ||
Purchased impaired loans | $ 2,396 | $ 2,956 | $ 3,522 |
Total home equity and residential real estate loans | |||
Purchased impaired loans | 2,400 | 2,800 | |
Government insured or guaranteed residential real estate mortgages | 800 | 800 | |
TDRs | |||
Recorded Investment - Subsequently defaulted TDRs | 100 | 200 | 100 |
Associated Allowance for TDRs | 230 | 271 | $ 319 |
Nonperforming | TDRs | |||
Troubled debt restructurings (TDRs) | 1,000 | 1,100 | |
Performing Financial Instruments | |||
Troubled debt restructurings (TDRs) | 1,100 | 1,100 | |
Federal Reserve Bank | |||
Loans pledged as collateral for the ability to borrow | 18,700 | 22,000 | |
Federal Home Loan Bank | |||
Loans pledged as collateral for the ability to borrow | $ 62,800 | $ 60,800 |
Asset Quality (Analysis of Loan
Asset Quality (Analysis of Loan Portfolio) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | $ 220,458 | [1] | $ 210,833 | [1] | $ 206,696 |
Percentage Of Total Loans | 100.00% | 100.00% | |||
Unearned income, net deferred loan fees, unamortized discounts and premiums, and purchase discounts and premiums | $ 1,200 | $ 1,300 | |||
Current or Less Than 30 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | $ 214,480 | $ 203,938 | |||
Percentage Of Total Loans | 97.29% | 96.73% | |||
30-59 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | $ 545 | $ 562 | |||
Percentage Of Total Loans | 0.25% | 0.27% | |||
60-89 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | $ 238 | $ 232 | |||
Percentage Of Total Loans | 0.11% | 0.11% | |||
90 Days or More Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | $ 737 | $ 782 | |||
Percentage Of Total Loans | 0.33% | 0.37% | |||
Total Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | $ 1,520 | $ 1,576 | |||
Percentage Of Total Loans | 0.69% | 0.75% | |||
Nonperforming Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | $ 1,865 | $ 2,144 | |||
Percentage Of Total Loans | 0.85% | 1.02% | |||
Fair Value Option Nonaccrual Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | $ 197 | $ 219 | |||
Percentage Of Total Loans | 0.09% | 0.10% | |||
Purchased Impaired Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | $ 2,396 | $ 2,956 | |||
Percentage Of Total Loans | 1.08% | 1.40% | |||
Total commercial lending | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | $ 147,439 | $ 137,955 | 133,544 | ||
Total commercial lending | Current or Less Than 30 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 146,729 | 137,014 | |||
Total commercial lending | 30-59 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 89 | 115 | |||
Total commercial lending | 60-89 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 28 | 23 | |||
Total commercial lending | 90 Days or More Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 39 | 39 | |||
Total commercial lending | Total Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 156 | 177 | |||
Total commercial lending | Nonperforming Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 554 | 655 | |||
Total commercial lending | Purchased Impaired Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 109 | ||||
Total consumer lending | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 73,019 | 72,878 | $ 73,152 | ||
Total consumer lending | Current or Less Than 30 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 67,751 | 66,924 | |||
Total consumer lending | 30-59 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 456 | 447 | |||
Total consumer lending | 60-89 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 210 | 209 | |||
Total consumer lending | 90 Days or More Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 698 | 743 | |||
Total consumer lending | Total Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 1,364 | 1,399 | |||
Total consumer lending | Nonperforming Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 1,311 | 1,489 | |||
Total consumer lending | Fair Value Option Nonaccrual Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 197 | 219 | |||
Total consumer lending | Purchased Impaired Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 2,396 | 2,847 | |||
Commercial | Total commercial lending | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 110,527 | 101,364 | |||
Commercial | Total commercial lending | Current or Less Than 30 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 109,989 | 100,710 | |||
Commercial | Total commercial lending | 30-59 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 45 | 81 | |||
Commercial | Total commercial lending | 60-89 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 25 | 20 | |||
Commercial | Total commercial lending | 90 Days or More Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 39 | 39 | |||
Commercial | Total commercial lending | Total Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 109 | 140 | |||
Commercial | Total commercial lending | Nonperforming Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 429 | 496 | |||
Commercial | Total commercial lending | Purchased Impaired Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 18 | ||||
Commercial Real Estate | Total commercial lending | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 28,978 | 29,010 | |||
Commercial Real Estate | Total commercial lending | Current or Less Than 30 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 28,826 | 28,769 | |||
Commercial Real Estate | Total commercial lending | 30-59 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 27 | 5 | |||
Commercial Real Estate | Total commercial lending | 60-89 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 2 | 2 | |||
Commercial Real Estate | Total commercial lending | 90 Days or More Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | |||||
Commercial Real Estate | Total commercial lending | Total Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 29 | 7 | |||
Commercial Real Estate | Total commercial lending | Nonperforming Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 123 | 143 | |||
Commercial Real Estate | Total commercial lending | Purchased Impaired Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 91 | ||||
Equipment Lease Financing | Total commercial lending | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 7,934 | 7,581 | |||
Equipment Lease Financing | Total commercial lending | Current or Less Than 30 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 7,914 | 7,535 | |||
Equipment Lease Financing | Total commercial lending | 30-59 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 17 | 29 | |||
Equipment Lease Financing | Total commercial lending | 60-89 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 1 | 1 | |||
Equipment Lease Financing | Total commercial lending | Total Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 18 | 30 | |||
Equipment Lease Financing | Total commercial lending | Nonperforming Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 2 | 16 | |||
Home Equity | Total consumer lending | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 28,364 | 29,949 | |||
Home Equity | Total consumer lending | Current or Less Than 30 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 26,561 | 27,820 | |||
Home Equity | Total consumer lending | 30-59 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 78 | 64 | |||
Home Equity | Total consumer lending | 60-89 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 26 | 30 | |||
Home Equity | Total consumer lending | Total Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 104 | 94 | |||
Home Equity | Total consumer lending | Nonperforming Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 818 | 914 | |||
Home Equity | Total consumer lending | Purchased Impaired Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 881 | 1,121 | |||
Residential Real Estate | Total consumer lending | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 17,212 | 15,598 | |||
Residential Real Estate | Total consumer lending | Current or Less Than 30 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 14,389 | 12,425 | |||
Residential Real Estate | Total consumer lending | 30-59 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 151 | 159 | |||
Residential Real Estate | Total consumer lending | 60-89 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 74 | 68 | |||
Residential Real Estate | Total consumer lending | 90 Days or More Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 486 | 500 | |||
Residential Real Estate | Total consumer lending | Total Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 711 | 727 | |||
Residential Real Estate | Total consumer lending | Total Past Due | Government Insured or Guaranteed Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 600 | 600 | |||
Residential Real Estate | Total consumer lending | Nonperforming Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 400 | 501 | |||
Residential Real Estate | Total consumer lending | Fair Value Option Nonaccrual Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 197 | 219 | |||
Residential Real Estate | Total consumer lending | Purchased Impaired Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 1,515 | 1,726 | |||
Credit Card | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 5,699 | 5,282 | |||
Credit Card | Total consumer lending | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 5,699 | 5,282 | |||
Credit Card | Total consumer lending | Current or Less Than 30 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 5,579 | 5,187 | |||
Credit Card | Total consumer lending | 30-59 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 43 | 33 | |||
Credit Card | Total consumer lending | 60-89 Days Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 26 | 21 | |||
Credit Card | Total consumer lending | 90 Days or More Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 45 | 37 | |||
Credit Card | Total consumer lending | Total Past Due | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 114 | 91 | |||
Credit Card | Total consumer lending | Nonperforming Loans | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 6 | 4 | |||
Automobile | Total consumer lending | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 12,880 | 12,380 | |||
Automobile | Total consumer lending | Current or Less Than 30 Days Past Due | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 12,697 | 12,257 | |||
Automobile | Total consumer lending | 30-59 Days Past Due | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 79 | 51 | |||
Automobile | Total consumer lending | 60-89 Days Past Due | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 20 | 12 | |||
Automobile | Total consumer lending | 90 Days or More Past Due | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 8 | 5 | |||
Automobile | Total consumer lending | Total Past Due | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 107 | 68 | |||
Automobile | Total consumer lending | Nonperforming Loans | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 76 | 55 | |||
Education and other | Total consumer lending | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 8,864 | 9,669 | |||
Education and other | Total consumer lending | Current or Less Than 30 Days Past Due | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 8,525 | 9,235 | |||
Education and other | Total consumer lending | 30-59 Days Past Due | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 105 | 140 | |||
Education and other | Total consumer lending | 60-89 Days Past Due | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 64 | 78 | |||
Education and other | Total consumer lending | 90 Days or More Past Due | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 159 | 201 | |||
Education and other | Total consumer lending | Total Past Due | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 328 | 419 | |||
Education and other | Total consumer lending | Total Past Due | Government Insured or Guaranteed Loans | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | 300 | 400 | |||
Education and other | Total consumer lending | Nonperforming Loans | Other Consumer | |||||
Financing Receivable. Recorded Investment, Past Due [Line Items] | |||||
Total Loans | $ 11 | $ 15 | |||
[1] | Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.7 billion, Loans of $.9 billion, and Other assets of $.3 billion at December 31, 2017 and Loans held for sale of $2.4 billion, Loans of $.9 billion, and Other assets of $.5 billion at December 31, 2016. |
Asset Quality (Nonperforming As
Asset Quality (Nonperforming Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Total nonperforming loans | $ 1,865 | $ 2,144 |
OREO and Foreclosed Assets | 170 | 230 |
Total nonperforming assets | $ 2,035 | $ 2,374 |
Nonperforming loans to total loans | 0.85% | 1.02% |
Nonperforming assets to total loans, OREO and foreclosed assets | 0.92% | 1.12% |
Nonperforming assets to total assets | 0.53% | 0.65% |
Interest on nonperforming loans - Computed on original terms | $ 114 | $ 111 |
Interest on nonperforming loans - Recognized prior to nonperforming status | 19 | 21 |
Total commercial lending | ||
Total nonperforming loans | 554 | 655 |
Total consumer lending | ||
Total nonperforming loans | $ 1,311 | $ 1,489 |
Asset Quality (Commercial Lendi
Asset Quality (Commercial Lending Asset Quality Indicators) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 220,458 | [1] | $ 210,833 | [1] | $ 206,696 |
Total commercial lending | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 147,439 | 137,955 | $ 133,544 | ||
Total commercial lending | Commercial | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 110,527 | 101,364 | |||
Total commercial lending | Commercial Real Estate | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 28,978 | 29,010 | |||
Total commercial lending | Equipment Lease Financing | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 7,934 | 7,581 | |||
Pass | Total commercial lending | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 141,414 | 132,187 | |||
Pass | Total commercial lending | Commercial | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 105,280 | 96,231 | |||
Pass | Total commercial lending | Commercial Real Estate | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 28,380 | 28,561 | |||
Pass | Total commercial lending | Equipment Lease Financing | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 7,754 | 7,395 | |||
Special Mention | Total commercial lending | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 2,083 | 1,799 | |||
Special Mention | Total commercial lending | Commercial | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 1,858 | 1,612 | |||
Special Mention | Total commercial lending | Commercial Real Estate | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 148 | 98 | |||
Special Mention | Total commercial lending | Equipment Lease Financing | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 77 | 89 | |||
Substandard | Total commercial lending | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 3,868 | 3,867 | |||
Substandard | Total commercial lending | Commercial | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 3,331 | 3,449 | |||
Substandard | Total commercial lending | Commercial Real Estate | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 435 | 327 | |||
Substandard | Total commercial lending | Equipment Lease Financing | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 102 | 91 | |||
Doubtful | Total commercial lending | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 74 | 102 | |||
Doubtful | Total commercial lending | Commercial | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 58 | 72 | |||
Doubtful | Total commercial lending | Commercial Real Estate | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | 15 | 24 | |||
Doubtful | Total commercial lending | Equipment Lease Financing | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 1 | $ 6 | |||
[1] | Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.7 billion, Loans of $.9 billion, and Other assets of $.3 billion at December 31, 2017 and Loans held for sale of $2.4 billion, Loans of $.9 billion, and Other assets of $.5 billion at December 31, 2016. |
Asset Quality (Consumer Real Es
Asset Quality (Consumer Real Estate Secured Asset Quality Indicators) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
% of Loans | 100.00% | 100.00% |
Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | $ 16,076 | $ 16,600 |
Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 11,378 | 12,228 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 14,883 | 13,028 |
Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | $ 42,337 | $ 41,856 |
Total home equity and residential real estate loans | New Jersey | High Risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Loans | 17.00% | 16.00% |
Total home equity and residential real estate loans | Pennsylvania | High Risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Loans | 13.00% | 14.00% |
Total home equity and residential real estate loans | Illinois | High Risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Loans | 13.00% | 12.00% |
Total home equity and residential real estate loans | Ohio | High Risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Loans | 9.00% | 10.00% |
Total home equity and residential real estate loans | Florida | High Risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Loans | 6.00% | 7.00% |
Total home equity and residential real estate loans | Maryland | High Risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Loans | 8.00% | 6.00% |
Total home equity and residential real estate loans | Michigan | High Risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Loans | 4.00% | 4.00% |
Total home equity and residential real estate loans | North Carolina | High Risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Loans | 5.00% | 4.00% |
Total home equity and residential real estate loans | All Other States Maximum | High Risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Loans | 4.00% | 4.00% |
Total home equity and residential real estate loans | All Other States | High Risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Loans | 25.00% | 27.00% |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Greater than 660 | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | $ 108 | $ 161 |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Greater than 660 | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 385 | 629 |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Greater than 660 | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 126 | 174 |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Greater than 660 | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 619 | 964 |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Less than or equal to 660 | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 21 | 32 |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Less than or equal to 660 | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 64 | 110 |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Less than or equal to 660 | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 23 | 35 |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Less than or equal to 660 | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 108 | 177 |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Missing | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 1 | 1 |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Missing | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 5 | 9 |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Missing | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 1 | 2 |
LTV greater than or equal to 125% and updated FICO scores | FICO Score- Missing | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 7 | 12 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Greater than 660 | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 300 | 394 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Greater than 660 | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 842 | 1,190 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Greater than 660 | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 253 | 345 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Greater than 660 | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 1,395 | 1,929 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Less than or equal to 660 | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 46 | 66 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Less than or equal to 660 | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 143 | 211 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Less than or equal to 660 | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 45 | 76 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Less than or equal to 660 | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 234 | 353 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Missing | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 2 | 3 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Missing | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 9 | 10 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Missing | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 5 | 7 |
LTV greater than or equal to 100% to less than 125% and updated FICO scores | FICO Score- Missing | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 16 | 20 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Greater than 660 | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 331 | 453 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Greater than 660 | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 890 | 1,100 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Greater than 660 | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 324 | 463 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Greater than 660 | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 1,545 | 2,016 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Less than or equal to 660 | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 55 | 77 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Less than or equal to 660 | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 134 | 171 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Less than or equal to 660 | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 55 | 78 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Less than or equal to 660 | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 244 | 326 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Missing | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 2 | 1 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Missing | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 9 | 8 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Missing | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 4 | 6 |
LTV greater than or equal to 90% to less than 100% and updated FICO scores | FICO Score- Missing | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 15 | 15 |
LTV less than 90% and updated FICO scores | FICO Score- Greater than 660 | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 13,954 | 14,047 |
LTV less than 90% and updated FICO scores | FICO Score- Greater than 660 | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 8,066 | 7,913 |
LTV less than 90% and updated FICO scores | FICO Score- Greater than 660 | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 13,445 | 11,153 |
LTV less than 90% and updated FICO scores | FICO Score- Greater than 660 | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 35,465 | 33,113 |
LTV less than 90% and updated FICO scores | FICO Score- Less than or equal to 660 | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 1,214 | 1,323 |
LTV less than 90% and updated FICO scores | FICO Score- Less than or equal to 660 | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 774 | 822 |
LTV less than 90% and updated FICO scores | FICO Score- Less than or equal to 660 | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 507 | 586 |
LTV less than 90% and updated FICO scores | FICO Score- Less than or equal to 660 | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 2,495 | 2,731 |
LTV less than 90% and updated FICO scores | FICO Score- Missing | Home Equity Line of Credit | 1st Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 42 | 42 |
LTV less than 90% and updated FICO scores | FICO Score- Missing | Home Equity Line of Credit | 2nd Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 57 | 55 |
LTV less than 90% and updated FICO scores | FICO Score- Missing | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 95 | 102 |
LTV less than 90% and updated FICO scores | FICO Score- Missing | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | $ 194 | 199 |
Missing LTV and updated FICO scores | FICO Score- Greater than 660 | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | 1 | |
Missing LTV and updated FICO scores | FICO Score- Greater than 660 | Total home equity and residential real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans - Excluding purchased impaired and government insured or guaranteed loans | $ 1 |
Asset Quality (Credit Card and
Asset Quality (Credit Card and Other Consumer Loan Classes Asset Quality Indicators) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 220,458 | [1] | $ 210,833 | [1] | $ 206,696 |
% of Loans | 100.00% | 100.00% | |||
Credit Card | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 5,699 | $ 5,282 | |||
Credit Card | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 5,699 | $ 5,282 | |||
% of Loans | 100.00% | 100.00% | |||
Weighted average FICO score | 735 | 736 | |||
Credit Card | FICO Score - Greater than 719 | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 3,457 | $ 3,244 | |||
% of Loans | 61.00% | 61.00% | |||
Credit Card | FICO Score - 650 to 719 | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 1,596 | $ 1,466 | |||
% of Loans | 28.00% | 28.00% | |||
Credit Card | FICO Score - 620 to 649 | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 250 | $ 215 | |||
% of Loans | 4.00% | 4.00% | |||
Credit Card | FICO Score - Less than 620 | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 272 | $ 229 | |||
% of Loans | 5.00% | 4.00% | |||
Credit Card | No FICO Score Available Or Required | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 124 | $ 128 | |||
% of Loans | 2.00% | 3.00% | |||
Other Consumer | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 21,744 | $ 22,049 | |||
Other Consumer | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 16,406 | $ 15,793 | |||
% of Loans | 100.00% | 100.00% | |||
Weighted average FICO score | 741 | 744 | |||
Other Consumer | FICO Score - Greater than 719 | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 10,366 | $ 10,247 | |||
% of Loans | 63.00% | 65.00% | |||
Other Consumer | FICO Score - 650 to 719 | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 4,352 | $ 3,873 | |||
% of Loans | 27.00% | 25.00% | |||
Other Consumer | FICO Score - 620 to 649 | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 659 | $ 552 | |||
% of Loans | 4.00% | 3.00% | |||
Other Consumer | FICO Score - Less than 620 | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 715 | $ 632 | |||
% of Loans | 4.00% | 4.00% | |||
Other Consumer | No FICO Score Available Or Required | Using FICO Credit Metric | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 314 | $ 489 | |||
% of Loans | 2.00% | 3.00% | |||
Other Consumer | Other Internal Credit Metrics | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total Loans | $ 5,338 | $ 6,256 | |||
[1] | Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.7 billion, Loans of $.9 billion, and Other assets of $.3 billion at December 31, 2017 and Loans held for sale of $2.4 billion, Loans of $.9 billion, and Other assets of $.5 billion at December 31, 2016. |
Asset Quality (Financial Impact
Asset Quality (Financial Impact and TDRs by Concession Type) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)loans | Dec. 31, 2016USD ($)loans | Dec. 31, 2015USD ($)loans | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loans | 12,113 | 11,405 | 11,120 |
Pre-TDR Recorded Investment | $ 541 | $ 769 | $ 595 |
Post-TDR Recorded Investment | 495 | 703 | 520 |
Principal Forgiveness | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 18 | 22 | |
Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 153 | 214 | 194 |
Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | $ 324 | $ 489 | $ 304 |
Total commercial lending | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loans | 120 | 143 | 158 |
Pre-TDR Recorded Investment | $ 293 | $ 524 | $ 284 |
Post-TDR Recorded Investment | 252 | 470 | 224 |
Total commercial lending | Principal Forgiveness | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 18 | 22 | |
Total commercial lending | Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 7 | 57 | 4 |
Total commercial lending | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | $ 227 | $ 413 | $ 198 |
Total consumer lending | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loans | 11,993 | 11,262 | 10,962 |
Pre-TDR Recorded Investment | $ 248 | $ 245 | $ 311 |
Post-TDR Recorded Investment | 243 | 233 | 296 |
Total consumer lending | Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 146 | 157 | 190 |
Total consumer lending | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | $ 97 | $ 76 | $ 106 |
Asset Quality (Impaired Loans)
Asset Quality (Impaired Loans) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Unpaid Principal Balance - Impaired Financing Receivable [Abstract] | ||
Unpaid principal balance - Impaired loans with an associated allowance | $ 1,641 | $ 1,979 |
Unpaid principal balance - Impaired loans without an associated allowance | 1,513 | 1,429 |
Unpaid principal balance - Total impaired loans | 3,154 | 3,408 |
Recorded Investment - Impaired Financing Receivable [Abstract] | ||
Recorded investment - Impaired loans with an associated allowance | 1,367 | 1,662 |
Recorded investment - Impaired loans without an associated allowance | 1,004 | 930 |
Recorded investment - Total impaired loans | 2,371 | 2,592 |
Associated Allowance - Total impaired loans | 271 | 331 |
Average Recorded Receivable - Impaired Financing Receivable [Abstract] | ||
Average recorded investment - Impaired loans with an associated allowance | 1,491 | 1,752 |
Average recorded investment - Impaired loans without an associated allowance | 978 | 969 |
Average recorded investment - Total impaired loans | 2,469 | 2,721 |
Total commercial lending | ||
Unpaid Principal Balance - Impaired Financing Receivable [Abstract] | ||
Unpaid principal balance - Impaired loans with an associated allowance | 580 | 742 |
Unpaid principal balance - Impaired loans without an associated allowance | 494 | 447 |
Recorded Investment - Impaired Financing Receivable [Abstract] | ||
Recorded investment - Impaired loans with an associated allowance | 353 | 477 |
Recorded investment - Impaired loans without an associated allowance | 366 | 322 |
Associated Allowance - Total impaired loans | 76 | 105 |
Average Recorded Receivable - Impaired Financing Receivable [Abstract] | ||
Average recorded investment - Impaired loans with an associated allowance | 419 | 497 |
Average recorded investment - Impaired loans without an associated allowance | 330 | 365 |
Total consumer lending | ||
Unpaid Principal Balance - Impaired Financing Receivable [Abstract] | ||
Unpaid principal balance - Impaired loans with an associated allowance | 1,061 | 1,237 |
Unpaid principal balance - Impaired loans without an associated allowance | 1,019 | 982 |
Recorded Investment - Impaired Financing Receivable [Abstract] | ||
Recorded investment - Impaired loans with an associated allowance | 1,014 | 1,185 |
Recorded investment - Impaired loans without an associated allowance | 638 | 608 |
Associated Allowance - Total impaired loans | 195 | 226 |
Average Recorded Receivable - Impaired Financing Receivable [Abstract] | ||
Average recorded investment - Impaired loans with an associated allowance | 1,072 | 1,255 |
Average recorded investment - Impaired loans without an associated allowance | $ 648 | $ 604 |
Allowances for Loan and Lease65
Allowances for Loan and Lease Losses (Narrative) (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance For Loan And Lease Losses [Abstract] | |||
Net interest income less the provision for credit losses | $ 8.7 | $ 8 | $ 8 |
Allowances for Loan and Lease66
Allowances for Loan and Lease Losses (Rollforward of Allowance For Loan and Lease Losses and Associated Loan Data) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | $ 2,589,000,000 | $ 2,727,000,000 | $ 3,331,000,000 | ||
Charge-offs | (786,000,000) | (886,000,000) | (805,000,000) | ||
Recoveries | 329,000,000 | 343,000,000 | 419,000,000 | ||
Net charge-offs | (457,000,000) | (543,000,000) | (386,000,000) | ||
Provision for credit losses | 441,000,000 | 433,000,000 | 255,000,000 | ||
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit | 4,000,000 | (40,000,000) | (2,000,000) | ||
Other | 34,000,000 | 12,000,000 | (471,000,000) | ||
Ending Balance | 2,611,000,000 | 2,589,000,000 | 2,727,000,000 | ||
Loans collectively evaluated for impairment - associated allowance | 2,067,000,000 | 1,938,000,000 | 2,022,000,000 | ||
Impaired loans - associated allowance | 271,000,000 | 331,000,000 | |||
Loans collectively evaluated for impairment | 214,822,000,000 | 204,392,000,000 | 199,609,000,000 | ||
Fair value option loans | 869,000,000 | 893,000,000 | 905,000,000 | ||
Purchased impaired loans | 2,396,000,000 | 2,956,000,000 | 3,522,000,000 | ||
Total Loans | $ 220,458,000,000 | [1] | $ 210,833,000,000 | [1] | $ 206,696,000,000 |
Portfolio segment ALLL as a percentage of total ALLL | 100.00% | 100.00% | 100.00% | ||
Ratio of the allowance for loan and lease losses to total loans | 1.18% | 1.23% | 1.32% | ||
Loans Accounted for under Fair Value Option | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans collectively evaluated for impairment - associated allowance | $ 0 | $ 0 | $ 0 | ||
TDRs | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans individually evaluated for impairment - associated allowance | 230,000,000 | 271,000,000 | 319,000,000 | ||
Loans individually evaluated for impairment | 2,061,000,000 | 2,221,000,000 | 2,351,000,000 | ||
Other Loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans individually evaluated for impairment - associated allowance | 41,000,000 | 60,000,000 | 76,000,000 | ||
Loans individually evaluated for impairment | 310,000,000 | 371,000,000 | 309,000,000 | ||
Purchased Impaired Loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Impaired loans - associated allowance | 273,000,000 | 320,000,000 | 310,000,000 | ||
Total commercial lending | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 1,534,000,000 | 1,605,000,000 | 1,571,000,000 | ||
Charge-offs | (221,000,000) | (363,000,000) | (255,000,000) | ||
Recoveries | 116,000,000 | 178,000,000 | 240,000,000 | ||
Net charge-offs | (105,000,000) | (185,000,000) | (15,000,000) | ||
Provision for credit losses | 147,000,000 | 153,000,000 | 55,000,000 | ||
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit | 5,000,000 | (39,000,000) | (3,000,000) | ||
Other | 1,000,000 | (3,000,000) | |||
Ending Balance | 1,582,000,000 | 1,534,000,000 | 1,605,000,000 | ||
Loans collectively evaluated for impairment - associated allowance | 1,506,000,000 | 1,392,000,000 | 1,437,000,000 | ||
Impaired loans - associated allowance | 76,000,000 | 105,000,000 | |||
Loans collectively evaluated for impairment | 146,720,000,000 | 137,047,000,000 | 132,632,000,000 | ||
Purchased impaired loans | 109,000,000 | 169,000,000 | |||
Total Loans | $ 147,439,000,000 | $ 137,955,000,000 | $ 133,544,000,000 | ||
Portfolio segment ALLL as a percentage of total ALLL | 61.00% | 59.00% | 59.00% | ||
Ratio of the allowance for loan and lease losses to total loans | 1.07% | 1.11% | 1.20% | ||
Total commercial lending | TDRs | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans individually evaluated for impairment - associated allowance | $ 35,000,000 | $ 45,000,000 | $ 43,000,000 | ||
Loans individually evaluated for impairment | 409,000,000 | 428,000,000 | 434,000,000 | ||
Total commercial lending | Other Loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans individually evaluated for impairment - associated allowance | 41,000,000 | 60,000,000 | 76,000,000 | ||
Loans individually evaluated for impairment | 310,000,000 | 371,000,000 | 309,000,000 | ||
Total commercial lending | Purchased Impaired Loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Impaired loans - associated allowance | 37,000,000 | 49,000,000 | |||
Total consumer lending | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 1,055,000,000 | 1,122,000,000 | 1,760,000,000 | ||
Charge-offs | (565,000,000) | (523,000,000) | (550,000,000) | ||
Recoveries | 213,000,000 | 165,000,000 | 179,000,000 | ||
Net charge-offs | (352,000,000) | (358,000,000) | (371,000,000) | ||
Provision for credit losses | 294,000,000 | 280,000,000 | 200,000,000 | ||
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit | (1,000,000) | (1,000,000) | 1,000,000 | ||
Other | 33,000,000 | 12,000,000 | (468,000,000) | ||
Ending Balance | 1,029,000,000 | 1,055,000,000 | 1,122,000,000 | ||
Loans collectively evaluated for impairment - associated allowance | 561,000,000 | 546,000,000 | 585,000,000 | ||
Impaired loans - associated allowance | 195,000,000 | 226,000,000 | |||
Loans collectively evaluated for impairment | 68,102,000,000 | 67,345,000,000 | 66,977,000,000 | ||
Fair value option loans | 869,000,000 | 893,000,000 | 905,000,000 | ||
Purchased impaired loans | 2,396,000,000 | 2,847,000,000 | 3,353,000,000 | ||
Total Loans | $ 73,019,000,000 | $ 72,878,000,000 | $ 73,152,000,000 | ||
Portfolio segment ALLL as a percentage of total ALLL | 39.00% | 41.00% | 41.00% | ||
Ratio of the allowance for loan and lease losses to total loans | 1.41% | 1.45% | 1.53% | ||
Total consumer lending | TDRs | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans individually evaluated for impairment - associated allowance | $ 195,000,000 | $ 226,000,000 | $ 276,000,000 | ||
Loans individually evaluated for impairment | 1,652,000,000 | 1,793,000,000 | 1,917,000,000 | ||
Total consumer lending | Purchased Impaired Loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Net charge-offs | (468,000,000) | ||||
Impaired loans - associated allowance | $ 273,000,000 | $ 283,000,000 | $ 261,000,000 | ||
[1] | Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.7 billion, Loans of $.9 billion, and Other assets of $.3 billion at December 31, 2017 and Loans held for sale of $2.4 billion, Loans of $.9 billion, and Other assets of $.5 billion at December 31, 2016. |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Investments [Line Items] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Period Increase (Decrease) | |||
Gain on derivatives used to hedge purchase of investment securities | 54 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | 1,100 | ||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities | |||
Federal National Mortgage Association Certificates and Obligations (FNMA) | |||
Schedule of Investments [Line Items] | |||
Amortized cost of debt securities of a single issuer that exceeeds 10 percent of shareholders equity | 31,000 | ||
Fair value of debt securities of a single issuer that exceeeds 10 percent of shareholders equity | $ 30,800 |
Investment Securities (Summary)
Investment Securities (Summary) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | $ 57,212 | $ 59,906 |
Securities available for sale debt securities, unrealized gains | 854 | 736 |
Securities available for sale debt securities, unrealized losses | (448) | (538) |
Securities available for sale, fair value | 57,618 | 60,104 |
Held to Maturity Securities, Amortized Cost, Total | 18,513 | 15,843 |
Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 56,625 | 59,303 |
Securities available for sale debt securities, unrealized gains | 854 | 736 |
Securities available for sale debt securities, unrealized losses | (446) | (536) |
Securities available for sale, fair value | 57,033 | 59,503 |
Held to Maturity Securities, Amortized Cost, Total | 18,513 | 15,843 |
Held-to-maturity securities, unrealized gains | 224 | 220 |
Held-to-maturity securities, unrealized losses | (172) | (197) |
Held-to-maturity securities, fair value | 18,565 | 15,866 |
US Treasury and Government Agencies Securities | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 14,432 | 13,100 |
Securities available for sale debt securities, unrealized gains | 173 | 151 |
Securities available for sale debt securities, unrealized losses | (84) | (77) |
Securities available for sale, fair value | 14,521 | 13,174 |
Held to Maturity Securities, Amortized Cost, Total | 741 | 527 |
Held-to-maturity securities, unrealized gains | 37 | 35 |
Held-to-maturity securities, unrealized losses | (13) | (22) |
Held-to-maturity securities, fair value | 765 | 540 |
Residential mortgage-backed Securities | Mortgage-backed Securities Agency | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 25,534 | 26,245 |
Securities available for sale debt securities, unrealized gains | 121 | 170 |
Securities available for sale debt securities, unrealized losses | (249) | (287) |
Securities available for sale, fair value | 25,406 | 26,128 |
Held to Maturity Securities, Amortized Cost, Total | 14,503 | 11,074 |
Held-to-maturity securities, unrealized gains | 77 | 68 |
Held-to-maturity securities, unrealized losses | (139) | (161) |
Held-to-maturity securities, fair value | 14,441 | 10,981 |
Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 2,443 | 3,191 |
Securities available for sale debt securities, unrealized gains | 336 | 227 |
Securities available for sale debt securities, unrealized losses | (21) | (52) |
Securities available for sale, fair value | 2,758 | 3,366 |
Held to Maturity Securities, Amortized Cost, Total | 167 | 191 |
Held-to-maturity securities, unrealized gains | 7 | 7 |
Held-to-maturity securities, fair value | 174 | 198 |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Agency | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 1,960 | 2,150 |
Securities available for sale debt securities, unrealized gains | 2 | 3 |
Securities available for sale debt securities, unrealized losses | (58) | (34) |
Securities available for sale, fair value | 1,904 | 2,119 |
Held to Maturity Securities, Amortized Cost, Total | 407 | 903 |
Held-to-maturity securities, unrealized gains | 4 | 24 |
Held-to-maturity securities, fair value | 411 | 927 |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 2,603 | 4,023 |
Securities available for sale debt securities, unrealized gains | 19 | 29 |
Securities available for sale debt securities, unrealized losses | (9) | (27) |
Securities available for sale, fair value | 2,613 | 4,025 |
Held to Maturity Securities, Amortized Cost, Total | 538 | 567 |
Held-to-maturity securities, unrealized gains | 10 | 10 |
Held-to-maturity securities, fair value | 548 | 577 |
Asset-backed Securities | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 5,331 | 5,938 |
Securities available for sale debt securities, unrealized gains | 74 | 52 |
Securities available for sale debt securities, unrealized losses | (8) | (22) |
Securities available for sale, fair value | 5,397 | 5,968 |
Held to Maturity Securities, Amortized Cost, Total | 200 | 558 |
Held-to-maturity securities, unrealized gains | 1 | |
Held-to-maturity securities, unrealized losses | (2) | |
Held-to-maturity securities, fair value | 201 | 556 |
Other debt | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 4,322 | 4,656 |
Securities available for sale debt securities, unrealized gains | 129 | 104 |
Securities available for sale debt securities, unrealized losses | (17) | (37) |
Securities available for sale, fair value | 4,434 | 4,723 |
Held to Maturity Securities, Amortized Cost, Total | 1,957 | 2,023 |
Held-to-maturity securities, unrealized gains | 88 | 76 |
Held-to-maturity securities, unrealized losses | (20) | (12) |
Held-to-maturity securities, fair value | 2,025 | 2,087 |
Corporate Stocks And Other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale equity securities, fair value | 585 | 601 |
Securities available for sale equity securities, unrealized losses | (2) | (2) |
Securities available for sale equity securities, amortized cost | $ 587 | $ 603 |
Investment Securities (Gross Un
Investment Securities (Gross Unrealized Loss and Fair Value of Securities Available for Sale) (Details) - Debt Securities - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
AFS unrealized loss position less than 12 months - unrealized loss | $ (110) | $ (410) |
AFS unrealized loss position less than 12 months - fair value | 17,837 | 25,760 |
AFS unrealized loss position 12 months or more - unrealized loss | (336) | (126) |
AFS unrealized loss position 12 months or more - fair value | 14,697 | 6,287 |
Total AFS unrealized loss | (446) | (536) |
Total AFS fair value | 32,534 | 32,047 |
HTM unrealized loss position less than 12 months - unrealized loss | (25) | (187) |
HTM unrealized loss position less than 12 months - fair value | 3,445 | 8,425 |
HTM unrealized loss position 12 months or more - unrealized loss | (147) | (10) |
HTM unrealized loss position 12 months or more - fair value | 6,490 | 613 |
Total HTM unrealized loss | (172) | (197) |
Total HTM fair value | 9,935 | 9,038 |
US Treasury and Government Agencies Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS unrealized loss position less than 12 months - unrealized loss | (42) | (57) |
AFS unrealized loss position less than 12 months - fair value | 6,099 | 3,108 |
AFS unrealized loss position 12 months or more - unrealized loss | (42) | (20) |
AFS unrealized loss position 12 months or more - fair value | 1,465 | 2,028 |
Total AFS unrealized loss | (84) | (77) |
Total AFS fair value | 7,564 | 5,136 |
HTM unrealized loss position less than 12 months - unrealized loss | (3) | (22) |
HTM unrealized loss position less than 12 months - fair value | 195 | 238 |
HTM unrealized loss position 12 months or more - unrealized loss | (10) | |
HTM unrealized loss position 12 months or more - fair value | 255 | |
Total HTM unrealized loss | (13) | (22) |
Total HTM fair value | 450 | 238 |
Residential mortgage-backed Securities | Mortgage-backed Securities Agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS unrealized loss position less than 12 months - unrealized loss | (47) | (267) |
AFS unrealized loss position less than 12 months - fair value | 8,151 | 16,942 |
AFS unrealized loss position 12 months or more - unrealized loss | (202) | (20) |
AFS unrealized loss position 12 months or more - fair value | 9,954 | 922 |
Total AFS unrealized loss | (249) | (287) |
Total AFS fair value | 18,105 | 17,864 |
HTM unrealized loss position less than 12 months - unrealized loss | (10) | (153) |
HTM unrealized loss position less than 12 months - fair value | 3,167 | 8,041 |
HTM unrealized loss position 12 months or more - unrealized loss | (129) | (8) |
HTM unrealized loss position 12 months or more - fair value | 6,168 | 161 |
Total HTM unrealized loss | (139) | (161) |
Total HTM fair value | 9,335 | 8,202 |
Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS unrealized loss position less than 12 months - unrealized loss | (1) | |
AFS unrealized loss position less than 12 months - fair value | 109 | |
AFS unrealized loss position 12 months or more - unrealized loss | (21) | (51) |
AFS unrealized loss position 12 months or more - fair value | 383 | 1,119 |
Total AFS unrealized loss | (21) | (52) |
Total AFS fair value | 383 | 1,228 |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS unrealized loss position less than 12 months - unrealized loss | (11) | (33) |
AFS unrealized loss position less than 12 months - fair value | 524 | 1,577 |
AFS unrealized loss position 12 months or more - unrealized loss | (47) | (1) |
AFS unrealized loss position 12 months or more - fair value | 1,302 | 86 |
Total AFS unrealized loss | (58) | (34) |
Total AFS fair value | 1,826 | 1,663 |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS unrealized loss position less than 12 months - unrealized loss | (3) | (14) |
AFS unrealized loss position less than 12 months - fair value | 400 | 880 |
AFS unrealized loss position 12 months or more - unrealized loss | (6) | (13) |
AFS unrealized loss position 12 months or more - fair value | 333 | 987 |
Total AFS unrealized loss | (9) | (27) |
Total AFS fair value | 733 | 1,867 |
Asset backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS unrealized loss position less than 12 months - unrealized loss | (4) | (5) |
AFS unrealized loss position less than 12 months - fair value | 1,697 | 1,317 |
AFS unrealized loss position 12 months or more - unrealized loss | (4) | (17) |
AFS unrealized loss position 12 months or more - fair value | 462 | 902 |
Total AFS unrealized loss | (8) | (22) |
Total AFS fair value | 2,159 | 2,219 |
HTM unrealized loss position less than 12 months - unrealized loss | ||
HTM unrealized loss position less than 12 months - fair value | ||
HTM unrealized loss position 12 months or more - unrealized loss | (2) | |
HTM unrealized loss position 12 months or more - fair value | 451 | |
Total HTM unrealized loss | (2) | |
Total HTM fair value | 451 | |
Other debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS unrealized loss position less than 12 months - unrealized loss | (3) | (33) |
AFS unrealized loss position less than 12 months - fair value | 966 | 1,827 |
AFS unrealized loss position 12 months or more - unrealized loss | (14) | (4) |
AFS unrealized loss position 12 months or more - fair value | 798 | 243 |
Total AFS unrealized loss | (17) | (37) |
Total AFS fair value | 1,764 | 2,070 |
HTM unrealized loss position less than 12 months - unrealized loss | (12) | (12) |
HTM unrealized loss position less than 12 months - fair value | 83 | 146 |
HTM unrealized loss position 12 months or more - unrealized loss | (8) | |
HTM unrealized loss position 12 months or more - fair value | 67 | 1 |
Total HTM unrealized loss | (20) | (12) |
Total HTM fair value | $ 150 | $ 147 |
Investment Securities (Gains (L
Investment Securities (Gains (Losses) on Sales of Securities Available for Sale) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment Securities Disclosure [Abstract] | |||
Proceeds | $ 5,722,000,000 | $ 3,489,000,000 | $ 6,829,000,000 |
Gross Gains | 38,000,000 | 24,000,000 | 56,000,000 |
Gross Losses | (31,000,000) | (8,000,000) | (13,000,000) |
Net Gains | 7,000,000 | 16,000,000 | 43,000,000 |
Tax Expense | $ 2,000,000 | $ 6,000,000 | $ 15,000,000 |
Investment Securities (Contract
Investment Securities (Contractual Maturity of Debt Securities) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, amortized cost | $ 57,212,000,000 | $ 59,906,000,000 |
Available-for-sale Securities, Fair value, Total | 57,618,000,000 | 60,104,000,000 |
Held to Maturity Securities, Amortized Cost, Total | 18,513,000,000 | 15,843,000,000 |
Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | 624,000,000 | |
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 12,962,000,000 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 8,652,000,000 | |
Available for Sale Securities, Amortized Cost, After 10 years | 34,387,000,000 | |
Securities available for sale, amortized cost | 56,625,000,000 | 59,303,000,000 |
Available-for-sale Securities, Fair value, 1 year or less | 626,000,000 | |
Available-for-sale Securities, Fair value, After 1 year through 5 years | 12,958,000,000 | |
Available-for-sale Securities, Fair value, After 5 years through 10 years | 8,695,000,000 | |
Available-for-sale Securities, Fair value, After 10 years | 34,754,000,000 | |
Available-for-sale Securities, Fair value, Total | $ 57,033,000,000 | 59,503,000,000 |
Weighted-average yield, GAAP basis, available for sale securities | 2.67% | |
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount | $ 221,000,000 | |
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount | 638,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount | 1,695,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 15,959,000,000 | |
Held to Maturity Securities, Amortized Cost, Total | 18,513,000,000 | 15,843,000,000 |
Held-to-maturity Securities, Fair Value, 1 year or less | 221,000,000 | |
Held-to-maturity Securities, Fair Value, After 1 year through 5 years | 654,000,000 | |
Held-to-maturity Securities, Fair Value, After 5 years through 10 years | 1,751,000,000 | |
Held-to-maturity Securities, Fair Value, After 10 years | 15,939,000,000 | |
Held-to-maturity Securities, Debt Maturities, Fair Value, Total | $ 18,565,000,000 | $ 15,866,000,000 |
Weighted-average yield, GAAP basis, held to maturity securities | 3.26% | |
One Year or Less | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 2.73% | |
Weighted-average yield, GAAP basis, held to maturity securities | 3.58% | |
After One Year Through Five Years | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 2.12% | |
Weighted-average yield, GAAP basis, held to maturity securities | 3.92% | |
After Five Years Through Ten Years | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 2.29% | |
Weighted-average yield, GAAP basis, held to maturity securities | 3.44% | |
After Ten Years | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Weighted-average yield, GAAP basis, available for sale securities | 2.97% | |
Weighted-average yield, GAAP basis, held to maturity securities | 3.21% | |
US Treasury and Government Agencies Securities | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | $ 85,000,000 | |
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 8,780,000,000 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 4,449,000,000 | |
Available for Sale Securities, Amortized Cost, After 10 years | 1,118,000,000 | |
Securities available for sale, amortized cost | 14,432,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount | 377,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 364,000,000 | |
Held to Maturity Securities, Amortized Cost, Total | 741,000,000 | |
Residential mortgage-backed Securities | Mortgage-backed Securities Agency | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | 3,000,000 | |
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 45,000,000 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 561,000,000 | |
Available for Sale Securities, Amortized Cost, After 10 years | 24,925,000,000 | |
Securities available for sale, amortized cost | 25,534,000,000 | |
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount | 67,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount | 346,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 14,090,000,000 | |
Held to Maturity Securities, Amortized Cost, Total | 14,503,000,000 | |
Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale Securities, Amortized Cost, After 10 years | 2,443,000,000 | |
Securities available for sale, amortized cost | 2,443,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 167,000,000 | |
Held to Maturity Securities, Amortized Cost, Total | 167,000,000 | |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Agency | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | 2,000,000 | |
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 259,000,000 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 624,000,000 | |
Available for Sale Securities, Amortized Cost, After 10 years | 1,075,000,000 | |
Securities available for sale, amortized cost | 1,960,000,000 | |
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount | 172,000,000 | |
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount | 177,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount | 4,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 54,000,000 | |
Held to Maturity Securities, Amortized Cost, Total | 407,000,000 | |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 451,000,000 | |
Available for Sale Securities, Amortized Cost, After 10 years | 2,152,000,000 | |
Securities available for sale, amortized cost | 2,603,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 538,000,000 | |
Held to Maturity Securities, Amortized Cost, Total | 538,000,000 | |
Asset backed | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | 13,000,000 | |
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 1,846,000,000 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 1,897,000,000 | |
Available for Sale Securities, Amortized Cost, After 10 years | 1,575,000,000 | |
Securities available for sale, amortized cost | 5,331,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount | 114,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 86,000,000 | |
Held to Maturity Securities, Amortized Cost, Total | 200,000,000 | |
Other debt | Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale Securities, Amortized Cost, 1 year or less | 521,000,000 | |
Available for Sale Securities, Amortized Cost, After 1 year through 5 years | 2,032,000,000 | |
Available for Sale Securities, Amortized Cost, After 5 years through 10 years | 670,000,000 | |
Available for Sale Securities, Amortized Cost, After 10 years | 1,099,000,000 | |
Securities available for sale, amortized cost | 4,322,000,000 | |
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount | 49,000,000 | |
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount | 394,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount | 854,000,000 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 660,000,000 | |
Held to Maturity Securities, Amortized Cost, Total | $ 1,957,000,000 |
Investment Securities (Fair Val
Investment Securities (Fair Value of Securities Pledged and Accepted as Collateral) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investment Securities Disclosure [Abstract] | ||
Pledged to others | $ 8,175 | $ 9,493 |
Permitted by contract or custom to sell or repledge | 1,152 | 912 |
Permitted amount repledged to others | $ 1,097 | $ 799 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Indirect Investments - Estimated remaining liquidation period | 12 years | |
Carrying value of FHLB and FRB stock | $ 1.8 | $ 1.7 |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Securities available for sale, fair value | $ 57,618 | $ 60,104 |
Mortgage servicing rights | 1,832 | 1,758 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 57,033 | 59,503 |
Securities available for sale, fair value | 57,618 | 60,104 |
Loans | 869 | 893 |
Equity investments | 1,265 | 1,381 |
Trading Securities | 2,915 | 2,629 |
Financial derivatives | 2,874 | 4,616 |
Other assets | 638 | 817 |
Total Assets | 69,673 | 74,608 |
Liabilities | ||
Other borrowed funds | 1,344 | 970 |
Financial derivatives | 2,856 | 3,839 |
Other Liabilities, Fair Value Disclosure | 33 | 9 |
Total liabilities | 4,233 | 4,818 |
Residential Mortgage | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 832 | 1,010 |
Mortgage servicing rights | 1,164 | 1,182 |
Commercial Mortgage | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 830 | 1,400 |
Mortgage servicing rights | 668 | 576 |
US Treasury and Government Agencies Securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 14,521 | 13,174 |
Residential mortgage-backed Securities | Mortgage-backed Securities Agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 25,406 | 26,128 |
Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 2,758 | 3,366 |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 1,904 | 2,119 |
Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 2,613 | 4,025 |
Asset backed | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 5,397 | 5,968 |
Other Debt Obligations | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 4,434 | 4,723 |
Other Assets | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale, fair value | 585 | 601 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 14,088 | 12,572 |
Securities available for sale, fair value | 14,612 | 13,113 |
Trading Securities | 1,243 | 1,458 |
Financial derivatives | 10 | |
Other assets | 278 | 266 |
Total Assets | 16,133 | 14,847 |
Liabilities | ||
Other borrowed funds | 1,079 | 799 |
Financial derivatives | 1 | |
Total liabilities | 1,079 | 800 |
Level 1 | US Treasury and Government Agencies Securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 14,088 | 12,572 |
Level 1 | Other Assets | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale, fair value | 524 | 541 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 39,865 | 43,208 |
Securities available for sale, fair value | 39,926 | 43,268 |
Loans | 571 | 558 |
Trading Securities | 1,670 | 1,169 |
Financial derivatives | 2,864 | 4,566 |
Other assets | 253 | 312 |
Total Assets | 46,836 | 50,881 |
Liabilities | ||
Other borrowed funds | 254 | 161 |
Financial derivatives | 2,369 | 3,424 |
Total liabilities | 2,623 | 3,585 |
Level 2 | Residential Mortgage | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 829 | 1,008 |
Level 2 | Commercial Mortgage | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 723 | |
Level 2 | US Treasury and Government Agencies Securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 433 | 602 |
Level 2 | Residential mortgage-backed Securities | Mortgage-backed Securities Agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 25,406 | 26,128 |
Level 2 | Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 97 | 112 |
Level 2 | Commercial Mortgage Backed Securities | Mortgage-backed Securities Agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 1,904 | 2,119 |
Level 2 | Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 2,613 | 4,025 |
Level 2 | Asset backed | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 5,065 | 5,565 |
Level 2 | Other Debt Obligations | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 4,347 | 4,657 |
Level 2 | Other Assets | Fair Value, Measurements, Recurring | ||
Assets | ||
Securities available for sale, fair value | 61 | 60 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 3,080 | 3,723 |
Securities available for sale, fair value | 3,080 | 3,723 |
Loans | 298 | 335 |
Equity investments | 1,036 | 1,331 |
Trading Securities | 2 | 2 |
Financial derivatives | 10 | 40 |
Other assets | 107 | 239 |
Total Assets | 6,475 | 8,830 |
Liabilities | ||
Other borrowed funds | 11 | 10 |
Financial derivatives | 487 | 414 |
Other Liabilities, Fair Value Disclosure | 33 | 9 |
Total liabilities | 531 | 433 |
Level 3 | Residential Mortgage | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 3 | 2 |
Mortgage servicing rights | 1,164 | 1,182 |
Level 3 | Commercial Mortgage | Fair Value, Measurements, Recurring | ||
Assets | ||
Loans held for sale | 107 | 1,400 |
Mortgage servicing rights | 668 | 576 |
Level 3 | Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 2,661 | 3,254 |
Level 3 | Asset backed | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | 332 | 403 |
Level 3 | Other Debt Obligations | Fair Value, Measurements, Recurring | ||
Assets | ||
Total debt securities | $ 87 | $ 66 |
Fair Value (Reconciliation of R
Fair Value (Reconciliation of Recurring Fair Value Measurements) (Details) - Fair Value, Measurements, Recurring - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 8,830 | $ 8,606 |
Included in earnings | 446 | 536 |
Included in other comprehensive income | 178 | 39 |
Purchases | 589 | 643 |
Sales | (5,943) | (4,330) |
Issuances | 5,028 | 4,638 |
Settlements | (1,698) | (1,487) |
Transfers Into Level 3 | 23 | 262 |
Transfers Out of Level 3 | (978) | (77) |
Ending Balance | 6,475 | 8,830 |
Unrealized gains or (losses) on assets held on Consolidated Balance Sheet | 198 | 323 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 433 | 495 |
Included in earnings | 318 | 118 |
Sales | 3 | 4 |
Issuances | 245 | 219 |
Settlements | (466) | (403) |
Transfer out of Level 3 | (2) | |
Ending Balance | 531 | 433 |
Unrealized gains or (losses) on liabilities held on Consolidated Balance Sheet | 323 | 129 |
Fair Value Additional Information [Abstract] | ||
Net gains (losses) included in earnings (realized and unrealized) relating to Level 3 assets and liabilities | 128 | 418 |
Net unrealized gains (losses) relating to Level 3 assets and liabilities | (125) | 194 |
Loans Held For Sale | Residential Mortgage | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 2 | 5 |
Purchases | 8 | 10 |
Sales | (1) | (3) |
Transfers Into Level 3 | 10 | 10 |
Transfers Out of Level 3 | (16) | (20) |
Ending Balance | 3 | 2 |
Loans Held For Sale | Commercial Mortgage | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,400 | 641 |
Included in earnings | 81 | 79 |
Sales | (5,278) | (3,810) |
Issuances | 4,885 | 4,515 |
Settlements | (258) | (25) |
Transfers Out of Level 3 | (723) | |
Ending Balance | 107 | 1,400 |
Unrealized gains or (losses) on assets held on Consolidated Balance Sheet | 4 | (3) |
Available-for-sale Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 3,723 | 4,535 |
Included in earnings | 101 | 89 |
Included in other comprehensive income | 178 | 41 |
Purchases | 13 | 12 |
Sales | (71) | (77) |
Settlements | (864) | (877) |
Transfers Into Level 3 | 2 | |
Transfers Out of Level 3 | (2) | |
Ending Balance | 3,080 | 3,723 |
Unrealized gains or (losses) on assets held on Consolidated Balance Sheet | (1) | (2) |
Available-for-sale Securities | Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 3,254 | 4,008 |
Included in earnings | 77 | 75 |
Included in other comprehensive income | 137 | 16 |
Sales | (33) | (60) |
Settlements | (774) | (785) |
Ending Balance | 2,661 | 3,254 |
Unrealized gains or (losses) on assets held on Consolidated Balance Sheet | (1) | (2) |
Available-for-sale Securities | Commercial Mortgage Backed Securities | Mortgage-backed Securities Non-agency | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Included in earnings | 12 | |
Sales | (12) | |
Available-for-sale Securities | Asset backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 403 | 482 |
Included in earnings | 12 | 13 |
Included in other comprehensive income | 22 | (3) |
Sales | (25) | |
Settlements | (80) | (89) |
Ending Balance | 332 | 403 |
Available-for-sale Securities | Other debt | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 66 | 45 |
Included in earnings | 1 | |
Included in other comprehensive income | 19 | 28 |
Purchases | 13 | 12 |
Sales | (1) | (17) |
Settlements | (10) | (3) |
Transfers Into Level 3 | 2 | |
Transfers Out of Level 3 | (2) | |
Ending Balance | 87 | 66 |
Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 335 | 340 |
Included in earnings | 8 | |
Purchases | 97 | 126 |
Sales | (28) | (22) |
Settlements | (68) | (78) |
Transfers Into Level 3 | 13 | 15 |
Transfers Out of Level 3 | (51) | (54) |
Ending Balance | 298 | 335 |
Unrealized gains or (losses) on assets held on Consolidated Balance Sheet | (7) | 2 |
Equity Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,331 | 1,098 |
Included in earnings | 239 | 148 |
Purchases | 214 | 269 |
Sales | (565) | (418) |
Transfers Into Level 3 | 235 | |
Transfers Out of Level 3 | (183) | (1) |
Ending Balance | 1,036 | 1,331 |
Unrealized gains or (losses) on assets held on Consolidated Balance Sheet | 145 | 127 |
Mortgage Servicing Rights | Residential Mortgage | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,182 | 1,063 |
Included in earnings | (83) | 37 |
Purchases | 185 | 188 |
Issuances | 55 | 62 |
Settlements | (175) | (168) |
Ending Balance | 1,164 | 1,182 |
Unrealized gains or (losses) on assets held on Consolidated Balance Sheet | (79) | 39 |
Mortgage Servicing Rights | Commercial Mortgage | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 576 | 526 |
Included in earnings | 46 | 45 |
Purchases | 69 | 36 |
Issuances | 88 | 61 |
Settlements | (111) | (92) |
Ending Balance | 668 | 576 |
Unrealized gains or (losses) on assets held on Consolidated Balance Sheet | 45 | 45 |
Trading Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 2 | 3 |
Settlements | (1) | |
Ending Balance | 2 | 2 |
Financial Derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 40 | 31 |
Included in earnings | 39 | 115 |
Purchases | 3 | 2 |
Settlements | (67) | (108) |
Transfers Out of Level 3 | (5) | |
Ending Balance | 10 | 40 |
Unrealized gains or (losses) on assets held on Consolidated Balance Sheet | 67 | 102 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 414 | 473 |
Included in earnings | 293 | 127 |
Sales | 3 | 4 |
Settlements | (221) | (190) |
Transfer out of Level 3 | (2) | |
Ending Balance | 487 | 414 |
Unrealized gains or (losses) on liabilities held on Consolidated Balance Sheet | 297 | 129 |
Other Assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 239 | 364 |
Included in earnings | 23 | 15 |
Included in other comprehensive income | (2) | |
Sales | ||
Settlements | (155) | (138) |
Ending Balance | 107 | 239 |
Unrealized gains or (losses) on assets held on Consolidated Balance Sheet | 24 | 13 |
Other Borrowed Funds | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 10 | 12 |
Issuances | 72 | 87 |
Settlements | (71) | (89) |
Ending Balance | 11 | 10 |
Other Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 9 | 10 |
Included in earnings | 25 | (9) |
Issuances | 173 | 132 |
Settlements | (174) | (124) |
Ending Balance | 33 | $ 9 |
Unrealized gains or (losses) on liabilities held on Consolidated Balance Sheet | $ 26 |
Fair Value (Fair Value Measurem
Fair Value (Fair Value Measurements- Recurring Quantitative Information) (Details) - Fair Value, Measurements, Recurring - Level 3 - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 6,400,000,000 | $ 8,800,000,000 |
Recurring Liabilities - Fair Value | (500,000,000) | (400,000,000) |
Recuring Assets, Net of Liabilities - Fair Value | 5,944,000,000 | 8,397,000,000 |
Loans Held For Sale | Commercial Mortgage | Discounted Cash Flow, Spread Over the Benchmark Curve | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 107,000,000 | |
Loans Held For Sale | Commercial Mortgage | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 1,400,000,000 | |
Loans Held For Sale | Commercial Mortgage | Discounted Cash Flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Spread over the benchmark curve | 5.25% | 0.42% |
Estimated servicing cash flows | 0.00% | |
Loans Held For Sale | Commercial Mortgage | Discounted Cash Flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Spread over the benchmark curve | 14.70% | 17.25% |
Estimated servicing cash flows | 7.30% | |
Loans Held For Sale | Commercial Mortgage | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Spread over the benchmark curve | 10.20% | 3.62% |
Estimated servicing cash flows | 1.50% | |
Available-for-sale Securities | Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 2,661,000,000 | $ 3,254,000,000 |
Available-for-sale Securities | Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 1.00% | 1.00% |
Constant default rate (CDR) | 0.10% | 0.00% |
Loss Severity | 15.00% | 10.00% |
Available-for-sale Securities | Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 31.60% | 24.20% |
Constant default rate (CDR) | 18.80% | 16.70% |
Loss Severity | 100.00% | 98.50% |
Available-for-sale Securities | Residential mortgage-backed Securities | Mortgage-backed Securities Non-agency | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 10.80% | 7.20% |
Constant default rate (CDR) | 5.40% | 5.30% |
Loss Severity | 51.50% | 53.50% |
Spread over the benchmark curve | 1.90% | 2.36% |
Available-for-sale Securities | Asset backed | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 332,000,000 | $ 403,000,000 |
Available-for-sale Securities | Asset backed | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 1.00% | 1.00% |
Constant default rate (CDR) | 2.00% | 2.00% |
Loss Severity | 15.00% | 24.20% |
Available-for-sale Securities | Asset backed | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 19.00% | 16.00% |
Constant default rate (CDR) | 11.80% | 13.90% |
Loss Severity | 100.00% | 100.00% |
Available-for-sale Securities | Asset backed | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 7.90% | 6.40% |
Constant default rate (CDR) | 5.40% | 6.60% |
Loss Severity | 68.50% | 77.30% |
Spread over the benchmark curve | 1.79% | 2.78% |
Loans - Residential real estate | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 104,000,000 | $ 116,000,000 |
Loans - Residential real estate | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loss Severity | 8.00% | 8.00% |
Discount rate | 4.90% | 4.20% |
Loans - Residential real estate | Consensus Pricing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 133,000,000 | $ 141,000,000 |
Loans - Residential real estate | Consensus Pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cumulative default rate | 11.00% | 11.00% |
Loss Severity | 0.00% | 0.00% |
Discount rate | 5.50% | 4.70% |
Loans - Residential real estate | Consensus Pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cumulative default rate | 100.00% | 100.00% |
Loss Severity | 100.00% | 100.00% |
Discount rate | 8.00% | 6.70% |
Loans - Residential real estate | Consensus Pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cumulative default rate | 85.70% | 86.90% |
Loss Severity | 20.60% | 22.90% |
Discount rate | 5.70% | 5.10% |
Loans - Home equity | Consensus Pricing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 61,000,000 | $ 78,000,000 |
Loans - Home equity | Consensus Pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit and Liquidity discount | 0.00% | 0.00% |
Loans - Home equity | Consensus Pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit and Liquidity discount | 99.00% | 99.00% |
Loans - Home equity | Consensus Pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit and Liquidity discount | 61.10% | 57.90% |
Equity Investments | Consensus Pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liquidity Discount | 0.00% | |
Equity Investments | Consensus Pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liquidity Discount | 40.00% | |
Equity Investments | Multiple of Adjusted Earnings | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 1,036,000,000 | |
Equity Investments | Multiple of Adjusted Earnings | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Multiple of earnings | 4.5 | 4.5 |
Equity Investments | Multiple of Adjusted Earnings | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Multiple of earnings | 29.7 | 12 |
Equity Investments | Multiple of Adjusted Earnings | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Multiple of earnings | 8.3 | 7.8 |
Equity Investments | Multiple of Adjusted Earnings and Consensus Pricing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 1,331,000,000 | |
Mortgage Servicing Rights | Residential Mortgage | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 1,164,000,000 | $ 1,182,000,000 |
Mortgage Servicing Rights | Residential Mortgage | Discounted Cash Flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 0.00% | 0.00% |
Spread over the benchmark curve | 3.90% | 3.41% |
Mortgage Servicing Rights | Residential Mortgage | Discounted Cash Flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 36.70% | 36.00% |
Spread over the benchmark curve | 18.39% | 19.13% |
Mortgage Servicing Rights | Residential Mortgage | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 10.00% | 9.40% |
Spread over the benchmark curve | 8.30% | 8.50% |
Mortgage Servicing Rights | Commercial Mortgage | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 668,000,000 | $ 576,000,000 |
Mortgage Servicing Rights | Commercial Mortgage | Discounted Cash Flow | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 7.70% | 7.50% |
Discount rate | 6.40% | 3.50% |
Mortgage Servicing Rights | Commercial Mortgage | Discounted Cash Flow | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 14.20% | 43.40% |
Discount rate | 7.90% | 7.60% |
Mortgage Servicing Rights | Commercial Mortgage | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate (CPR) | 8.50% | 8.60% |
Discount rate | 7.80% | 7.50% |
Other Assets | BlackRock Series C Preferred Stock | Consensus Pricing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 232,000,000 | |
Other Assets | BlackRock Series C Preferred Stock | Consensus Pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liquidity Discount | 15.00% | |
Other Assets | BlackRock Series C Preferred Stock | Consensus Pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liquidity Discount | 25.00% | |
Other Assets | BlackRock Series C Preferred Stock | Consensus Pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liquidity Discount | 20.00% | |
Financial Derivatives | BlackRock LTIP | Consensus Pricing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Liabilities - Fair Value | $ (232,000,000) | |
Financial Derivatives | BlackRock LTIP | Consensus Pricing | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liquidity Discount | 15.00% | |
Financial Derivatives | BlackRock LTIP | Consensus Pricing | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liquidity Discount | 25.00% | |
Financial Derivatives | BlackRock LTIP | Consensus Pricing | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liquidity Discount | 20.00% | |
Financial Derivatives | Visa Class B Swap | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Liabilities - Fair Value | $ (380,000,000) | $ (164,000,000) |
Estimated growth rate of Visa Class A share price | 16.00% | 14.00% |
Estimated length of litigation resolution date | 6/30/2021 | 6/30/2019 |
Financial Derivatives | Visa Class B Swap | Discounted Cash Flow | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated conversion factor of Class B shares into Class A shares | 163.80% | 164.40% |
Insignificant Assets, Net of Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recurring Assets - Fair Value | $ 58,000,000 | $ 80,000,000 |
Fair Value (Nonrecurring Fair V
Fair Value (Nonrecurring Fair Value Measurements) (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonrecurring Assets - Fair Value | $ 250 | $ 312 | |
Nonrecurring Assets - Gains (Losses) | (186) | (137) | $ (82) |
Nonaccrual Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonrecurring Assets - Fair Value | 100 | 187 | |
Nonrecurring Assets - Gains (Losses) | (8) | (106) | (44) |
OREO, Foreclosed and Other Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonrecurring Assets - Fair Value | 70 | 107 | |
Nonrecurring Assets - Gains (Losses) | (10) | (16) | (18) |
Long-lived Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonrecurring Assets - Fair Value | 80 | 18 | |
Nonrecurring Assets - Gains (Losses) | $ (168) | $ (15) | $ (20) |
Fair Value (Fair Value Measur78
Fair Value (Fair Value Measurements- Nonrecurring Quantitative Information) (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring Assets - Fair Value | $ 250 | $ 312 |
Nonaccrual Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring Assets - Fair Value | 100 | 187 |
Nonaccrual Loans | Appraised Value/Sales Price | Fair Value of Property or Collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring Assets - Fair Value | 100 | 187 |
OREO, Foreclosed and Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring Assets - Fair Value | 70 | 107 |
OREO, Foreclosed and Other Assets | Appraised Value/Sales Price | Fair Value of Property or Collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring Assets - Fair Value | 70 | 107 |
Long-lived Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring Assets - Fair Value | 80 | 18 |
Long-lived Assets | Appraised Value/Sales Price | Fair Value of Property or Collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring Assets - Fair Value | 47 | $ 18 |
Long-lived Assets | Broker Opinion | Fair Value of Property or Collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring Assets - Fair Value | 20 | |
Long-lived Assets | Projected Income/Required Improvement Costs | Fair Value of Property or Collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring Assets - Fair Value | $ 13 |
Fair Value (Fair Value Option -
Fair Value (Fair Value Option - Fair Value and Principal Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Loans Held For Sale | Residential Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | $ 832 | $ 1,010 |
Aggregate Unpaid Principal Balance - Assets | 807 | 998 |
Difference - Assets | 25 | 12 |
Loans Held For Sale | Commercial Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 830 | 1,400 |
Aggregate Unpaid Principal Balance - Assets | 845 | 1,421 |
Difference - Assets | (15) | (21) |
Loans Held For Sale | Performing Loans | Residential Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 822 | 1,000 |
Aggregate Unpaid Principal Balance - Assets | 796 | 988 |
Difference - Assets | 26 | 12 |
Loans Held For Sale | Performing Loans | Commercial Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 828 | 1,395 |
Aggregate Unpaid Principal Balance - Assets | 842 | 1,412 |
Difference - Assets | (14) | (17) |
Loans Held For Sale | Accruing loans 90 days or more past due | Residential Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 3 | 4 |
Aggregate Unpaid Principal Balance - Assets | 3 | 4 |
Loans Held For Sale | Nonaccrual Loans | Residential Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 7 | 6 |
Aggregate Unpaid Principal Balance - Assets | 8 | 6 |
Difference - Assets | (1) | |
Loans Held For Sale | Nonaccrual Loans | Commercial Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 2 | 5 |
Aggregate Unpaid Principal Balance - Assets | 3 | 9 |
Difference - Assets | (1) | (4) |
Loans | Residential Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 869 | 893 |
Aggregate Unpaid Principal Balance - Assets | 1,028 | 1,063 |
Difference - Assets | (159) | (170) |
Loans | Performing Loans | Residential Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 251 | 247 |
Aggregate Unpaid Principal Balance - Assets | 280 | 289 |
Difference - Assets | (29) | (42) |
Loans | Accruing loans 90 days or more past due | Residential Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 421 | 427 |
Aggregate Unpaid Principal Balance - Assets | 431 | 428 |
Difference - Assets | (10) | (1) |
Loans | Nonaccrual Loans | Residential Mortgage | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 197 | 219 |
Aggregate Unpaid Principal Balance - Assets | 317 | 346 |
Difference - Assets | (120) | (127) |
Other Assets | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Assets | 216 | 293 |
Aggregate Unpaid Principal Balance - Assets | 212 | 288 |
Difference - Assets | 4 | 5 |
Other borrowed funds | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value - Liabilities | 84 | 81 |
Aggregate Unpaid Principal Balance - Liabilities | 85 | 82 |
Difference - Liabilities | $ (1) | $ (1) |
Fair Value (Fair Value Option80
Fair Value (Fair Value Option - Changes in Fair Value) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans Held For Sale | Residential Mortgage | |||
Gains (Losses) - FVO: Changes in Fair Value | $ 121 | $ 152 | $ 152 |
Loans Held For Sale | Commercial Mortgage | |||
Gains (Losses) - FVO: Changes in Fair Value | 87 | 76 | 96 |
Loans | Residential Mortgage | |||
Gains (Losses) - FVO: Changes in Fair Value | 27 | 30 | 43 |
Other Assets | |||
Gains (Losses) - FVO: Changes in Fair Value | 60 | 50 | (8) |
Other Liabilities | |||
Gains (Losses) - FVO: Changes in Fair Value | $ (26) | $ 4 |
Fair Value (Additional Fair Val
Fair Value (Additional Fair Value Information Related To Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Amount | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Cash and due from banks | $ 5,249 | $ 4,879 |
Interest-earning deposits with banks | 28,595 | 25,711 |
Securities held to maturity | 18,513 | 15,843 |
Net loans (excludes leases) | 209,044 | 199,766 |
Other assets | 6,078 | 4,793 |
Total assets | 267,479 | 250,992 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Deposits | 265,053 | 257,164 |
Borrowed funds | 57,744 | 51,736 |
Unfunded loan commitments and letters of credit | 297 | 301 |
Other Liabilities | 399 | 417 |
Total liabilities | 323,493 | 309,618 |
Fair Value | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Cash and due from banks | 5,249 | 4,879 |
Interest-earning deposits with banks | 28,595 | 25,711 |
Securities held to maturity | 18,565 | 15,866 |
Net loans (excludes leases) | 211,175 | 201,863 |
Other assets | 6,736 | 5,243 |
Total assets | 270,320 | 253,562 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Deposits | 264,854 | 257,038 |
Borrowed funds | 58,503 | 52,322 |
Unfunded loan commitments and letters of credit | 297 | 301 |
Other Liabilities | 399 | 417 |
Total liabilities | 324,053 | 310,078 |
Fair Value | Level 1 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Cash and due from banks | 5,249 | 4,879 |
Securities held to maturity | 765 | 540 |
Total assets | 6,014 | 5,419 |
Fair Value | Level 2 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Interest-earning deposits with banks | 28,595 | 25,711 |
Securities held to maturity | 17,658 | 15,208 |
Other assets | 5,949 | 4,666 |
Total assets | 52,202 | 45,585 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Deposits | 264,854 | 257,038 |
Borrowed funds | 56,853 | 50,941 |
Other Liabilities | 399 | 417 |
Total liabilities | 322,106 | 308,396 |
Fair Value | Level 3 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings | ||
Securities held to maturity | 142 | 118 |
Net loans (excludes leases) | 211,175 | 201,863 |
Other assets | 787 | 577 |
Total assets | 212,104 | 202,558 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings | ||
Borrowed funds | 1,650 | 1,381 |
Unfunded loan commitments and letters of credit | 297 | 301 |
Total liabilities | $ 1,947 | $ 1,682 |
Goodwill and Mortgage Servici82
Goodwill and Mortgage Servicing Rights (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Mortgage servicing rights | $ 1,832 | $ 1,758 | |
Fees from Mortgage and Other Loan Servicing | $ 500 | $ 500 | $ 500 |
Goodwill and Mortgage Servici83
Goodwill and Mortgage Servicing Rights (Goodwill by Business Segment 10-K) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Goodwill | $ 9,173 | $ 9,103 | $ 9,103 |
Retail Banking | |||
Goodwill [Line Items] | |||
Goodwill | 5,795 | 5,795 | 5,795 |
Corporate & Institutional Banking | |||
Goodwill [Line Items] | |||
Goodwill | 3,314 | 3,244 | 3,244 |
Goodwill from business acquisitions | 70 | ||
Asset Management Group | |||
Goodwill [Line Items] | |||
Goodwill | $ 64 | $ 64 | $ 64 |
Goodwill and Mortgage Servici84
Goodwill and Mortgage Servicing Rights (Mortgage Servicing Rights) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Servicing Assets at Fair Value [Line Items] | |||
Mortgage servicing rights, beginning balance | $ 1,758 | ||
Mortgage servicing rights, ending balance | 1,832 | $ 1,758 | |
Mortgage Servicing Rights | Residential Mortgage | |||
Servicing Assets at Fair Value [Line Items] | |||
Mortgage servicing rights, beginning balance | 1,182 | 1,063 | $ 845 |
Mortgage servicing rights, ending balance | 1,164 | 1,182 | 1,063 |
Unpaid principal balance of loans serviced for others at end of period | 126,769 | 125,381 | 123,466 |
Servicing Advances | 201 | 302 | 411 |
Mortgage Servicing Rights | Residential Mortgage | Time and Payoffs | |||
Servicing Assets at Fair Value [Line Items] | |||
Changes in Fair Value | (175) | (168) | (178) |
Mortgage Servicing Rights | Residential Mortgage | Other | |||
Servicing Assets at Fair Value [Line Items] | |||
Changes in Fair Value | (83) | 37 | 2 |
Mortgage Servicing Rights | Residential Mortgage | From loans sold with servicing retained | |||
Servicing Assets at Fair Value [Line Items] | |||
Additions | 55 | 62 | 78 |
Mortgage Servicing Rights | Residential Mortgage | Purchases | |||
Servicing Assets at Fair Value [Line Items] | |||
Additions | 185 | 188 | 316 |
Mortgage Servicing Rights | Commercial Real Estate | |||
Servicing Assets at Fair Value [Line Items] | |||
Mortgage servicing rights, beginning balance | 576 | 526 | 506 |
Mortgage servicing rights, ending balance | 668 | 576 | 526 |
Unpaid principal balance of loans serviced for others at end of period | 162,182 | 143,139 | 145,823 |
Servicing Advances | 217 | 265 | 251 |
Mortgage Servicing Rights | Commercial Real Estate | Time and Payoffs | |||
Servicing Assets at Fair Value [Line Items] | |||
Changes in Fair Value | (111) | (92) | (89) |
Mortgage Servicing Rights | Commercial Real Estate | Other | |||
Servicing Assets at Fair Value [Line Items] | |||
Changes in Fair Value | 46 | 45 | (9) |
Mortgage Servicing Rights | Commercial Real Estate | From loans sold with servicing retained | |||
Servicing Assets at Fair Value [Line Items] | |||
Additions | 88 | 61 | 63 |
Mortgage Servicing Rights | Commercial Real Estate | Purchases | |||
Servicing Assets at Fair Value [Line Items] | |||
Additions | $ 69 | $ 36 | $ 55 |
Goodwill and Mortgage Servici85
Goodwill and Mortgage Servicing Rights (Commercial and Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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] | ||||
Fair Value | $ 1,832 | $ 1,758 | ||
Mortgage Servicing Rights | Commercial Real Estate | ||||
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] | ||||
Fair Value | $ 668 | $ 576 | $ 526 | $ 506 |
Weighted-average life | 4 years 4 months 24 days | 4 years 7 months | ||
Constant prepayment rate (CPR) | 8.51% | 8.61% | ||
Decline in fair value from 10% adverse change in prepayment rate | $ 12 | $ 11 | ||
Decline in fair value from 20% adverse change in prepayment rate | $ 23 | $ 21 | ||
Discount rate | 7.81% | 7.52% | ||
Decline in fair value from 10% adverse change in interest rate | $ 18 | $ 16 | ||
Decline in fair value from 20% adverse change in interest rate | 36 | 31 | ||
Mortgage Servicing Rights | Residential Mortgage | ||||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||||
Fair Value | $ 1,164 | $ 1,182 | $ 1,063 | $ 845 |
Weighted-average life | 6 years 4 months 24 days | 6 years 10 months | ||
Constant prepayment rate (CPR) | 10.04% | 9.41% | ||
Decline in fair value from 10% adverse change in prepayment rate | $ 44 | $ 45 | ||
Decline in fair value from 20% adverse change in prepayment rate | $ 85 | $ 86 | ||
Spread over the benchmark curve | 8.30% | 8.50% | ||
Decline in fair value from 10% adverse change in adjusted spread | $ 35 | $ 37 | ||
Decline in fair value from 20% adverse change in adjusted spread | $ 67 | $ 72 |
Premises, Equipment and Lease86
Premises, Equipment and Leasehold Improvements (Premises, Equipment and Leasehold Improvements) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Total premises, equipment and leasehold improvements | $ 10,939 | $ 10,410 |
Accumulated depreciation and amortization | (5,503) | (4,888) |
Net book value | $ 5,436 | $ 5,522 |
Premises, Equipment and Lease87
Premises, Equipment and Leasehold Improvements (Depreciation and Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 743 | $ 683 | $ 643 |
Amortization | 56 | 46 | 40 |
Total depreciation And amortization | $ 799 | $ 729 | $ 683 |
Premises, Equipment and Lease88
Premises, Equipment and Leasehold Improvements (Lease Rental Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Lease rental expense | $ 431 | $ 442 | $ 460 |
Premises, Equipment and Lease89
Premises, Equipment and Leasehold Improvements (Narrative) (Details) $ in Billions | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Abstract] | |
Minimum annual rental on noncancelable leases | $ 2.6 |
Premises, Equipment and Lease90
Premises, Equipment and Leasehold Improvements (Minimum Annual Rentals) (Details) - Annual Lease Rentals $ in Millions | Dec. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
Required minimum annual rentals due 2018 | $ 382 |
Required minimum annual rentals due 2019 | 343 |
Required minimum annual rentals due 2020 | 302 |
Required minimum annual rentals due 2021 | 260 |
Required minimum annual rentals due 2022 | 217 |
Required minimum annual rentals due 2023 and thereafter | $ 1,051 |
Time Deposits (Narrative) (Deta
Time Deposits (Narrative) (Details) $ in Billions | Dec. 31, 2017USD ($) |
Banking and Thrift [Abstract] | |
Total time Deposits | $ 17.3 |
Time Deposits (Time Deposits) (
Time Deposits (Time Deposits) (Details) $ in Billions | Dec. 31, 2017USD ($) |
Banking and Thrift [Abstract] | |
2,018 | $ 12.1 |
2,019 | 1.1 |
2,020 | 0.9 |
2,021 | 1 |
2,022 | 0.9 |
2023 and thereafter | $ 1.3 |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Total borrowed funds | $ 59,088 | $ 52,706 |
PNC Capital Trust C | ||
Debt Instrument [Line Items] | ||
Carrrying value - junior subordinated debt | 205 | |
Trust preferred securities | 200 | |
Parent Company | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | 6,848 | 6,203 |
Bank | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | 47,451 | 42,327 |
Senior Notes | Parent Company | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | 5,203 | 3,960 |
Basis adjustments - Fair value accounting hedges | 38 | |
Senior Notes | Bank | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | 22,859 | 19,012 |
Basis adjustments - Fair value accounting hedges | (187) | |
Subordinated Debt | Parent Company | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | 1,440 | 2,038 |
Basis adjustments - Fair value accounting hedges | 23 | |
Subordinated Debt | Bank | ||
Debt Instrument [Line Items] | ||
Total borrowed funds | 3,555 | $ 5,766 |
Basis adjustments - Fair value accounting hedges | $ 2 | |
3-month LIBOR | PNC Capital Trust C | ||
Debt Instrument [Line Items] | ||
Basis Spread on LIBOR Rate - trust preferred securities | 0.57% |
Borrowed Funds (Remaining Matur
Borrowed Funds (Remaining Maturity) (Details) $ in Billions | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
Due in 2018 | $ 16 |
Due in 2019 | 12.3 |
Due in 2020 | 13.8 |
Due in 2021 | 3.7 |
Due in 2022 | 4.9 |
Due in 2023 and thereafter | $ 8.4 |
Borrowed Funds (FHLB Borrowings
Borrowed Funds (FHLB Borrowings, Bank Notes, Senior Debt and Subordinated Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Borrowed Funds | $ 59,088 | $ 52,706 |
Total FHLB, Senior and Sub Debt | 54,299 | 48,530 |
Parent Company | ||
Debt Instrument [Line Items] | ||
Borrowed Funds | 6,848 | 6,203 |
Bank | ||
Debt Instrument [Line Items] | ||
Borrowed Funds | 47,451 | 42,327 |
Senior Notes | Parent Company | ||
Debt Instrument [Line Items] | ||
Borrowed Funds | 5,203 | 3,960 |
Senior Notes | Bank | ||
Debt Instrument [Line Items] | ||
Borrowed Funds | $ 22,859 | 19,012 |
Senior Notes | Maximum | Parent Company | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.70% | |
Senior Notes | Maximum | Bank | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.30% | |
Senior Notes | Minimum | Parent Company | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1.64% | |
Senior Notes | Minimum | Bank | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1.05% | |
Subordinated Debt | Parent Company | ||
Debt Instrument [Line Items] | ||
Borrowed Funds | $ 1,440 | 2,038 |
Subordinated Debt | Bank | ||
Debt Instrument [Line Items] | ||
Borrowed Funds | $ 3,555 | 5,766 |
Subordinated Debt | Maximum | Parent Company | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.88% | |
Subordinated Debt | Maximum | Bank | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.88% | |
Subordinated Debt | Minimum | Parent Company | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.90% | |
Subordinated Debt | Minimum | Bank | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.70% | |
Junior Subordinated Debt | Parent Company | ||
Debt Instrument [Line Items] | ||
Borrowed Funds | $ 205 | 205 |
Stated interest rate | 2.05% | |
FHLB | Bank | ||
Debt Instrument [Line Items] | ||
Borrowed Funds | $ 21,037 | $ 17,549 |
FHLB | Maximum | Bank | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.35% | |
FHLB | Minimum | Bank | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 0.00% |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fixed earnings credit given to all new participants in pension and postretirement plans | 3.00% | |||
Percentage of bonds with highest yields excluded from calculation of yield curve for pension plan assumptions | 10.00% | |||
Percentage of bonds with lowest yields excluded from calculation of yield curve for pension plan assumptions | 40.00% | |||
Expected long-term return on plan assets | 6.38% | 6.75% | 6.75% | |
Expected long-term return on plan assets in 2018 | 6.00% | |||
Defined Contribution Plan, eligible compensation for deferral in abscense of election otherwise (percent) | 4.00% | |||
Defined Contribution Plan, employee benefit plan expense | $ 125,000,000 | $ 122,000,000 | $ 126,000,000 | |
Qualified Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution | $ 200,000,000 | $ 200,000,000 | 250,000,000 | |
Pension plan, decline in discount rate (percent) | 0.50% | |||
Nonqualified Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution | $ 24,000,000 | $ 31,000,000 | ||
Pension plan, decline in discount rate (percent) | 0.50% |
Employee Benefit Plans (Reconci
Employee Benefit Plans (Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
PNC Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation at end of year | $ 4,726,000,000 | $ 4,495,000,000 | ||
Projected benefit obligation at beginning of year | 4,547,000,000 | 4,397,000,000 | ||
Service cost | 160,000,000 | 102,000,000 | $ 107,000,000 | |
Interest cost | 179,000,000 | 186,000,000 | 177,000,000 | |
Amendments | 17,000,000 | |||
Actuarial (gains)/losses and changes in assumptions | 172,000,000 | 131,000,000 | ||
Benefits paid | (286,000,000) | (269,000,000) | ||
Projected benefit obligation at end of year | 4,789,000,000 | 4,547,000,000 | 4,397,000,000 | |
Fair value of plan assets, beginning balance | 4,617,000,000 | 4,316,000,000 | ||
Actual return on plan assets | 722,000,000 | 320,000,000 | ||
Employer contribution | $ 200,000,000 | 200,000,000 | 250,000,000 | |
Benefits paid | (286,000,000) | (269,000,000) | ||
Fair value of plan assets, end balance | 5,253,000,000 | 4,617,000,000 | 4,316,000,000 | |
Funded status | 464,000,000 | 70,000,000 | ||
Noncurrent asset | 464,000,000 | 70,000,000 | ||
Net amount recognized on the consolidated balance sheet | 464,000,000 | 70,000,000 | ||
Prior service cost (credit) | 13,000,000 | (7,000,000) | ||
Net actuarial loss | 534,000,000 | 841,000,000 | ||
Amount recognized in AOCI | 547,000,000 | 834,000,000 | ||
Nonqualified Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation at end of year | 280,000,000 | 282,000,000 | ||
Projected benefit obligation at beginning of year | 289,000,000 | 298,000,000 | ||
Service cost | 3,000,000 | 3,000,000 | 3,000,000 | |
Interest cost | 10,000,000 | 12,000,000 | 11,000,000 | |
Actuarial (gains)/losses and changes in assumptions | 8,000,000 | 7,000,000 | ||
Benefits paid | (24,000,000) | (31,000,000) | ||
Projected benefit obligation at end of year | 286,000,000 | 289,000,000 | 298,000,000 | |
Employer contribution | 24,000,000 | 31,000,000 | ||
Benefits paid | (24,000,000) | (31,000,000) | ||
Funded status | (286,000,000) | (289,000,000) | ||
Current liability | (28,000,000) | (27,000,000) | ||
Noncurrent liability | (258,000,000) | (262,000,000) | ||
Net amount recognized on the consolidated balance sheet | (286,000,000) | (289,000,000) | ||
Net actuarial loss | 77,000,000 | 74,000,000 | ||
Amount recognized in AOCI | 77,000,000 | 74,000,000 | ||
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation at beginning of year | 373,000,000 | 368,000,000 | ||
Service cost | 5,000,000 | 6,000,000 | 5,000,000 | |
Interest cost | 14,000,000 | 15,000,000 | 15,000,000 | |
Amendments | 2,000,000 | |||
Actuarial (gains)/losses and changes in assumptions | (18,000,000) | 6,000,000 | ||
Participant contributions | 3,000,000 | 4,000,000 | ||
Federal Medicare subsidy on benefits paid | 1,000,000 | 1,000,000 | ||
Benefits paid | (25,000,000) | (27,000,000) | ||
Projected benefit obligation at end of year | 355,000,000 | 373,000,000 | 368,000,000 | |
Fair value of plan assets, beginning balance | 208,000,000 | 200,000,000 | ||
Actual return on plan assets | 9,000,000 | (7,000,000) | ||
Employer contribution | 34,000,000 | 37,000,000 | ||
Participant contributions | 3,000,000 | 4,000,000 | ||
Federal Medicare subsidy on benefits paid | 1,000,000 | 1,000,000 | ||
Benefits paid | (25,000,000) | (27,000,000) | ||
Fair value of plan assets, end balance | 230,000,000 | 208,000,000 | $ 200,000,000 | |
Funded status | (125,000,000) | (165,000,000) | ||
Current liability | (2,000,000) | (2,000,000) | ||
Noncurrent liability | (123,000,000) | (163,000,000) | ||
Net amount recognized on the consolidated balance sheet | (125,000,000) | (165,000,000) | ||
Prior service cost (credit) | 1,000,000 | (3,000,000) | ||
Net actuarial loss | 18,000,000 | 40,000,000 | ||
Amount recognized in AOCI | $ 19,000,000 | $ 37,000,000 |
Employee Benefit Plans (Asset S
Employee Benefit Plans (Asset Strategy Allocation) (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 100.00% | 100.00% |
Domestic Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 30.00% | 28.00% |
International Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 24.00% | 21.00% |
Private Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 9.00% | 8.00% |
Total Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 63.00% | 57.00% |
Target Percentage of Plan Assets by Strategy | 70.00% | |
Domestic Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 16.00% | 16.00% |
High Yield Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 10.00% | 12.00% |
Total Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 26.00% | 28.00% |
Target Percentage of Plan Assets by Strategy | 17.00% | |
Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 5.00% | 5.00% |
Target Percentage of Plan Assets by Strategy | 5.00% | |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 6.00% | 10.00% |
Target Percentage of Plan Assets by Strategy | 8.00% | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 100.00% | |
Maximum | Domestic Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 40.00% | |
Maximum | International Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 25.00% | |
Maximum | Private Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 15.00% | |
Maximum | Total Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 70.00% | |
Maximum | Domestic Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 40.00% | |
Maximum | High Yield Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 25.00% | |
Maximum | Total Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 65.00% | |
Maximum | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 15.00% | |
Maximum | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 10.00% | |
Minimum | Domestic Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 20.00% | |
Minimum | International Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 10.00% | |
Minimum | Private Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 0.00% | |
Minimum | Total Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 40.00% | |
Minimum | Domestic Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 10.00% | |
Minimum | High Yield Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 0.00% | |
Minimum | Total Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 10.00% | |
Minimum | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 0.00% | |
Minimum | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation range, total equity | 0.00% |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Plan Assets Fair Value Hierarchy) (Details) - PNC Pension Plan - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 5,253 | $ 4,617 | $ 4,316 |
Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 45 | |
Money Market Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 339 | 404 | |
US government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 338 | 285 | |
Corporate Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 583 | 580 | |
Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 804 | 652 | |
Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 271 | ||
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 77 | 60 | |
Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,830 | 2,591 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,374 | 1,242 | |
Level 1 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 35 | |
Level 1 | Money Market Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 339 | 404 | |
Level 1 | US government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 233 | 158 | |
Level 1 | Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 791 | 645 | |
Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,037 | 776 | |
Level 2 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 10 | |
Level 2 | US government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 105 | 127 | |
Level 2 | Corporate Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 578 | 572 | |
Level 2 | Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 7 | |
Level 2 | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 271 | ||
Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 69 | 60 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 8 | |
Level 3 | Corporate Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | $ 8 | |
Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 7 |
Employee Benefit Plans (Estimat
Employee Benefit Plans (Estimated Cash Flows) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Qualified Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future benefit payments during 2018 | $ 295 |
Estimated future benefit payments during 2019 | 303 |
Estimated future benefit payments during 2020 | 315 |
Estimated future benefit payments during 2021 | 318 |
Estimated future benefit payments during 2022 | 318 |
Estimated future benefit payments during 2023-2027 | 1,573 |
Nonqualified Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated 2018 employer contributions | 28 |
Estimated future benefit payments during 2018 | 28 |
Estimated future benefit payments during 2019 | 25 |
Estimated future benefit payments during 2020 | 24 |
Estimated future benefit payments during 2021 | 23 |
Estimated future benefit payments during 2022 | 22 |
Estimated future benefit payments during 2023-2027 | 100 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated 2018 employer contributions | 26 |
Estimated future benefit payments during 2018 | 26 |
Estimated future benefit payments during 2019 | 27 |
Estimated future benefit payments during 2020 | 27 |
Estimated future benefit payments during 2021 | 26 |
Estimated future benefit payments during 2022 | 26 |
Estimated future benefit payments during 2023-2027 | 123 |
Reduction in PNC Benefit Payments Due to Medicare Part D Subsidy, 2023 - 2027 | $ 2 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Costs (Components of Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of actuarial gain/(loss) | $ (47) | $ (50) | $ (38) |
Qualified Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 160 | 102 | 107 |
Interest cost | 179 | 186 | 177 |
Expected return on plan assets | (285) | (281) | (297) |
Amortization of prior service cost/(credit) | (3) | (7) | (9) |
Amortization of actuarial losses | 43 | 45 | 31 |
Net periodic cost/(benefit) | 94 | 45 | 9 |
Current year prior service cost/(credit) | 17 | ||
Amortization of prior service (cost)/credit | 3 | 7 | 9 |
Current year actuarial loss/(gain) | (264) | 91 | 152 |
Amortization of actuarial gain/(loss) | (43) | (45) | (31) |
Total recognized in OCI | (287) | 53 | 130 |
Total amount recognized in net periodic cost and OCI | (193) | 98 | 139 |
Additional service cost due to the special, one-time cash balance credit | 57 | ||
Nonqualified Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3 | 3 | 3 |
Interest cost | 10 | 12 | 11 |
Amortization of actuarial losses | 4 | 5 | 7 |
Net periodic cost/(benefit) | 17 | 20 | 21 |
Current year actuarial loss/(gain) | 7 | 7 | (10) |
Amortization of actuarial gain/(loss) | (4) | (5) | (7) |
Total recognized in OCI | 3 | 2 | (17) |
Total amount recognized in net periodic cost and OCI | 20 | 22 | 4 |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5 | 6 | 5 |
Interest cost | 14 | 15 | 15 |
Expected return on plan assets | (5) | (6) | |
Amortization of prior service cost/(credit) | (1) | (1) | (1) |
Net periodic cost/(benefit) | 13 | 14 | 19 |
Current year prior service cost/(credit) | 2 | ||
Amortization of prior service (cost)/credit | 1 | 1 | 1 |
Current year actuarial loss/(gain) | (22) | 17 | (9) |
Total recognized in OCI | (19) | 18 | (8) |
Total amount recognized in net periodic cost and OCI | $ (6) | $ 32 | $ 11 |
Employee Benefit Plans (Net 102
Employee Benefit Plans (Net Periodic Costs (Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase (average) | 3.50% | 3.50% | 4.00% |
Assumed health care cost trend rate Initial trend | 7.00% | 7.25% | 7.50% |
Assumed health care cost trend rate Ultimate trend | 5.00% | 5.00% | 5.00% |
Assumed health care cost trend rate Year ultimate reached | 2,025 | 2,025 | 2,025 |
Expected long-term return on plan assets | 6.38% | 6.75% | 6.75% |
Qualified Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.00% | 4.25% | 3.95% |
Nonqualified Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.80% | 3.95% | 3.65% |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.90% | 4.15% | 3.80% |
Employee Benefit Plans (Other P
Employee Benefit Plans (Other Pension Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase (average) | 3.50% | 3.50% |
Assumed health care cost trend rate Initial trend | 6.75% | 7.00% |
Assumed health care cost trend rate Ultimate trend | 5.00% | 5.00% |
Assumed health care cost trend rate Year ultimate reached | 2,025 | 2,025 |
Qualified Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.60% | 4.00% |
Nonqualified Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.45% | 3.80% |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.55% | 3.90% |
Stock Based Compensation Pla104
Stock Based Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 0.2 | $ 0.2 | $ 0.2 | |
Total tax benefit recognized related to share-based compensation expense | 0.1 | $ 0.1 | $ 0.1 | |
Unamortized share-based compensation expense related to nonvested equity compensation arrangements | $ 0.2 | |||
Unamortized share-based compensation expense related to nonvested equity compensation arrangements, period for recognition | 5 years | |||
Maximum life of options (in years) | 10 years | |||
Weighted-average grant date fair value of incentive/performance unit awards and restricted share/restricted share unit awards granted | $ 122.10 | $ 78.37 | $ 91.57 | |
Total intrinsic value of incentive/performance unit and restricted share/restricted share unit awards vested during the year. | $ 0.2 | $ 0.1 | $ 0.2 | |
BlackRock Series C Preferred Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
LTIP - Number of preferred stock shares transferred (shares) | 520,000 | |||
LTIP - Total preferred shares held at end of period (shares) | 250,000 | |||
PNC | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted (shares) | 0 | 0 | 0 | |
Options exercisable at end of period - Common stock | 3,000,000 | 5,000,000 | ||
Options exercisable at end of the period - weighted average price | $ 58.02 | $ 55.16 | $ 55.42 | |
Total intrinsic value of options exercised | $ 0.1 | $ 0.1 | $ 0.1 | |
Cash received from option exercises under all Incentive Plans | $ 0.1 | $ 0.1 | $ 0.1 | |
Shares of common stock available for next year, Granting of options under Incentive Plans | 36,000,000 | |||
Total common stock authorized for future issuance under equity compensation plans | 37,000,000 | |||
Treasury stock | 2,000,000 | |||
Subsequent Event | BlackRock Series C Preferred Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
LTIP - Number of preferred stock shares transferred (shares) | 103,064 | |||
LTIP - Total preferred shares held at end of period (shares) | 143,458 |
Stock Based Compensation Pla105
Stock Based Compensation Plans (Stock Option Rollforward) (Details) - PNC - Stock Options - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning balance | 3 | ||
Exercised | (2) | ||
Outstanding, ending balance | 1 | ||
Exercisable, Shares | 1 | ||
Weighted-average exercise price, beginning of period | $ 55.16 | ||
Weighted-average exercise price, exercised | 53.22 | ||
Weighted-average exercise price, end of period | 58.02 | ||
Exercisable, Weighted-average exercise price of shares | $ 58.02 | $ 55.16 | $ 55.42 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 7 months 6 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 2 years 7 months 6 days | ||
Outstanding, Aggregate Intrinsic Value | $ 112 | ||
Exercisable, Aggregate Intrinsic Value | $ 112 |
Stock Based Compensation Pla106
Stock Based Compensation Plans (Nonvested Incentive/Performance Unit Awards and Restricted Share/Restricted Share Unit Awards - Rollforward) (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value, vested/released shares | $ 122.10 | $ 78.37 | $ 91.57 |
Nonvested Incentive / Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Beginning balance | 2 | ||
Granted | 1 | ||
Vested/Released | (1) | ||
Outstanding, Ending balance | 2 | 2 | |
Weighted-average grant date fair value, beginning of period | $ 81.42 | ||
Weighted-average grant date fair value, granted shares | 122.13 | ||
Weighted-average grant date fair value, vested/released shares | 78.69 | ||
Weighted-average grant date fair value, end of period | $ 94.29 | $ 81.42 | |
Nonvested Restricted Share / Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Beginning balance | 3 | ||
Granted | 1 | ||
Vested/Released | (1) | ||
Outstanding, Ending balance | 3 | 3 | |
Weighted-average grant date fair value, beginning of period | $ 83.27 | ||
Weighted-average grant date fair value, granted shares | 122.09 | ||
Weighted-average grant date fair value, vested/released shares | 80.69 | ||
Weighted-average grant date fair value, end of period | $ 95.64 | $ 83.27 |
Financial Derivatives (Narrativ
Financial Derivatives (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Cash And Securities Held To Collateralize Net Derivative Assets | $ 900,000,000 | ||
Cash And Securities Pledged To Collateralize Net Derivative Liabilities | 1,500,000,000 | ||
Aggregate fair value of all derivative instruments with credit-risk-related contingent features | 1,600,000,000 | ||
Collateral posted on derivative instruments with credit-risk-related contingent features | 800,000,000 | ||
Maximum amount of collateral PNC would have been required to post if the credit-risk-related contingent features underlying these agreements had been triggered | 800,000,000 | ||
Risk Participation Agreements Sold | |||
Derivative [Line Items] | |||
Derivative Liability, Notional Amount | 3,600,000,000 | $ 4,300,000,000 | |
Credit Derivative, Maximum Exposure, Undiscounted | 100,000,000 | 100,000,000 | |
Fair Value Hedging | Interest Rate Contract | |||
Derivative [Line Items] | |||
Gain Loss From Components Excluded From Assessment Of Fair Value Hedge Effectiveness Net | $ 0 | 0 | $ 0 |
Cash Flow Hedging | Interest Rate Contract | |||
Derivative [Line Items] | |||
Maximum length of time over which forecasted loan cash flows are hedged | 7 years | ||
Gain Loss On Discontinuation Of Cash Flow Hedge Due To Forecasted Transaction Probable Of Not Occurring Net | $ 0 | 0 | 0 |
Gain Loss From Components Excluded From Assessment Of Cash Flow Hedge Effectiveness Net | 0 | 0 | 0 |
Cash Flow Hedging | Interest Rate Contract | Pretax | |||
Derivative [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 102,000,000 | ||
Cash Flow Hedging | Interest Rate Contract | After Tax | |||
Derivative [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 81,000,000 | ||
Net Investment Hedging | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Gain Loss From Components Excluded From Assessment Of Net Investment Hedge Effectiveness Net | 0 | 0 | 0 |
Amount Of Ineffectiveness On Net Investment Hedges | 0 | 0 | 0 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (81,000,000) | $ 186,000,000 | $ 60,000,000 |
Financial Derivatives (Total De
Financial Derivatives (Total Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 418,625 | $ 410,803 |
Derivative Asset, Fair Value | 2,874 | 4,616 |
Derivative Liability, Fair Value | 2,856 | 3,839 |
Derivative Asset, Fair Value Offset Amount | (1,054) | (2,460) |
Derivative Asset, Cash Collateral | (636) | (657) |
Derivative Asset, Net Fair Value | 1,184 | 1,499 |
Derivative Liability, Fair Value Offset Amount | (1,054) | (2,460) |
Derivative Liability, Cash Collateral | (763) | (484) |
Derivative Liability, Net Fair Value | 1,039 | 895 |
Increase (Decrease) in Derivative Assets | (800) | |
Increase (Decrease) in Derivative Liabilities | (700) | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 58,994 | 55,786 |
Derivative Asset, Fair Value | 174 | 889 |
Derivative Liability, Fair Value | 111 | 285 |
Designated as Hedging Instrument | Fair Value Hedging | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 34,059 | 34,010 |
Derivative Asset, Fair Value | 114 | 551 |
Derivative Liability, Fair Value | 94 | 214 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 23,875 | 20,831 |
Derivative Asset, Fair Value | 60 | 313 |
Derivative Liability, Fair Value | 6 | 71 |
Designated as Hedging Instrument | Net Investment Hedging | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,060 | 945 |
Derivative Asset, Fair Value | 25 | |
Derivative Liability, Fair Value | 11 | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 359,631 | 355,017 |
Derivative Asset, Fair Value | 2,700 | 3,727 |
Derivative Liability, Fair Value | 2,745 | 3,554 |
Not Designated as Hedging Instrument | Mortgage Banking | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 107,358 | 130,559 |
Derivative Asset, Fair Value | 192 | 907 |
Derivative Liability, Fair Value | 53 | 565 |
Not Designated as Hedging Instrument | Mortgage Banking | Swap | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 48,335 | 49,071 |
Derivative Asset, Fair Value | 162 | 783 |
Derivative Liability, Fair Value | 42 | 505 |
Not Designated as Hedging Instrument | Mortgage Banking | Future | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 47,494 | 36,264 |
Not Designated as Hedging Instrument | Mortgage Banking | Mortgage Commitment | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 8,999 | 13,317 |
Derivative Asset, Fair Value | 19 | 96 |
Derivative Liability, Fair Value | 9 | 56 |
Not Designated as Hedging Instrument | Mortgage Banking | Other Contract | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 2,530 | 31,907 |
Derivative Asset, Fair Value | 11 | 28 |
Derivative Liability, Fair Value | 2 | 4 |
Not Designated as Hedging Instrument | Customer Contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 244,828 | 218,877 |
Derivative Asset, Fair Value | 2,505 | 2,780 |
Derivative Liability, Fair Value | 2,142 | 2,584 |
Not Designated as Hedging Instrument | Customer Contracts | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 217,498 | 196,988 |
Derivative Asset, Fair Value | 2,156 | 2,438 |
Derivative Liability, Fair Value | 1,810 | 2,275 |
Not Designated as Hedging Instrument | Customer Contracts | Foreign Exchange And Other Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 27,330 | 21,889 |
Derivative Asset, Fair Value | 349 | 342 |
Derivative Liability, Fair Value | 332 | 309 |
Not Designated as Hedging Instrument | Customer Contracts | Swap | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 194,042 | 173,777 |
Derivative Asset, Fair Value | 2,079 | 2,373 |
Derivative Liability, Fair Value | 1,772 | 2,214 |
Not Designated as Hedging Instrument | Customer Contracts | Future | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 3,453 | 4,053 |
Not Designated as Hedging Instrument | Customer Contracts | Mortgage Commitment | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 2,228 | 2,955 |
Derivative Asset, Fair Value | 2 | 10 |
Derivative Liability, Fair Value | 2 | 8 |
Not Designated as Hedging Instrument | Customer Contracts | Other Contract | Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 17,775 | 16,203 |
Derivative Asset, Fair Value | 75 | 55 |
Derivative Liability, Fair Value | 36 | 53 |
Not Designated as Hedging Instrument | Other Risk Management Activity | Foreign Exchange And Other Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 7,445 | 5,581 |
Derivative Asset, Fair Value | 3 | 40 |
Derivative Liability, Fair Value | $ 550 | $ 405 |
Financial Derivatives (Gains (L
Financial Derivatives (Gains (Losses) on Derivatives and Related Hedged Items - Fair Value Hedges) (Details) - Fair Value Hedging - Designated as Hedging Instrument - Interest Rate Contract - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in Income | $ (236) | $ (190) | $ (108) |
Gain (Loss) on Related Hedged Items Recognized in Income | 218 | 158 | 67 |
Us Treasury And Government And Other Debt Securities | Investment Securities Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in Income | 48 | 142 | |
Gain (Loss) on Related Hedged Items Recognized in Income | (50) | (141) | |
Subordinated debt and Bank notes and senior debt | Borrowed Funds Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in Income | (284) | (332) | (108) |
Gain (Loss) on Related Hedged Items Recognized in Income | $ 268 | $ 299 | $ 67 |
Financial Derivatives (Gains110
Financial Derivatives (Gains (Losses) on Derivatives and Related Cash Flows - Cash Flow Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net unrealized gains (losses) on cash flow hedge derivatives | $ (287) | $ (153) | $ 127 |
Cash Flow Hedging | Interest Rate Contract | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in OCI (Effective Portion) | (90) | 100 | 415 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 197 | 253 | 288 |
Net unrealized gains (losses) on cash flow hedge derivatives | (287) | (153) | 127 |
Cash Flow Hedging | Interest Rate Contract | Interest Income | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 180 | 253 | 293 |
Cash Flow Hedging | Interest Rate Contract | Noninterest Income | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 17 | $ (5) |
Financial Derivatives (Gains111
Financial Derivatives (Gains (Losses) on Derivatives Not Designated As Hedging Instruments under GAAP) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (209) | $ 307 | $ 651 |
Mortgage Banking | Interest Rate Contract | |||
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 75 | 152 | 220 |
Customer Contracts | |||
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 241 | 162 | 149 |
Customer Contracts | Interest Rate Contract | |||
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 95 | 78 | 71 |
Customer Contracts | Foreign Exchange And Other Contract | |||
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 146 | 84 | 78 |
Other Risk Management Activity | |||
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (525) | (7) | 282 |
Other Risk Management Activity | Foreign Exchange And Other Contract | |||
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (525) | $ (7) | $ 282 |
Financial Derivatives (Derivati
Financial Derivatives (Derivative Assets and Liabilitites Offsetting) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | ||
Derivative Asset, Gross Fair Value | $ 2,874 | $ 4,616 |
Derivative Asset, Fair Value Offset Amount | 1,054 | 2,460 |
Derivative Asset, Cash Collateral | 636 | 657 |
Derivative Asset, Net Fair Value | 1,184 | 1,499 |
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Gross Fair Value | 2,856 | 3,839 |
Derivative Liability, Fair Value Offset Amount | 1,054 | 2,460 |
Derivative Liability, Cash Collateral | 763 | 484 |
Derivative Liability, Net Fair Value | 1,039 | 895 |
Liability | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Gross Fair Value | 2,856 | 3,839 |
Derivative Liability, Fair Value Offset Amount | 1,054 | 2,460 |
Derivative Liability, Cash Collateral | 763 | 484 |
Derivative Liability, Net Fair Value | 1,039 | 895 |
Derivative Liability | 1,039 | 895 |
Assets | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Gross Fair Value | 2,874 | 4,616 |
Derivative Asset, Fair Value Offset Amount | 1,054 | 2,460 |
Derivative Asset, Cash Collateral | 636 | 657 |
Derivative Asset, Net Fair Value | 1,184 | 1,499 |
Derivative Asset, Securities Collateral Held Under Master Netting Agreements | 32 | 62 |
Derivative Asset, Net | 1,152 | 1,437 |
Interest Rate Contract | Liability | Exchange Cleared, Liability [Member] | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Gross Fair Value | 260 | 1,060 |
Derivative Liability, Fair Value Offset Amount | 251 | 940 |
Derivative Liability, Cash Collateral | 25 | |
Derivative Liability, Net Fair Value | 9 | 95 |
Derivative Liability | 9 | 95 |
Interest Rate Contract | Liability | Exchange Traded, Liability [Member] | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Gross Fair Value | 1 | |
Derivative Liability, Net Fair Value | 1 | |
Derivative Liability | 1 | |
Interest Rate Contract | Liability | Over The Counter, Liability [Member] | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Gross Fair Value | 1,703 | 2,064 |
Derivative Liability, Fair Value Offset Amount | 662 | 1,395 |
Derivative Liability, Cash Collateral | 669 | 431 |
Derivative Liability, Net Fair Value | 372 | 238 |
Derivative Liability | 372 | 238 |
Interest Rate Contract | Assets | Exchange Cleared | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Gross Fair Value | 827 | 1,498 |
Derivative Asset, Fair Value Offset Amount | 251 | 940 |
Derivative Asset, Cash Collateral | 567 | 480 |
Derivative Asset, Net Fair Value | 9 | 78 |
Derivative Asset, Net | 9 | 78 |
Interest Rate Contract | Assets | Exchange Traded | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Gross Fair Value | 9 | |
Derivative Asset, Net Fair Value | 9 | |
Derivative Asset, Net | 9 | |
Interest Rate Contract | Assets | Over the Counter | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Gross Fair Value | 1,695 | 2,702 |
Derivative Asset, Fair Value Offset Amount | 668 | 1,358 |
Derivative Asset, Cash Collateral | 67 | 164 |
Derivative Asset, Net Fair Value | 960 | 1,180 |
Derivative Asset, Securities Collateral Held Under Master Netting Agreements | 32 | 62 |
Derivative Asset, Net | 928 | 1,118 |
Foreign Exchange And Other Contract | Liability | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Gross Fair Value | 893 | 714 |
Derivative Liability, Fair Value Offset Amount | 141 | 125 |
Derivative Liability, Cash Collateral | 94 | 28 |
Derivative Liability, Net Fair Value | 658 | 561 |
Derivative Liability | 658 | 561 |
Foreign Exchange And Other Contract | Assets | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Gross Fair Value | 352 | 407 |
Derivative Asset, Fair Value Offset Amount | 135 | 162 |
Derivative Asset, Cash Collateral | 2 | 13 |
Derivative Asset, Net Fair Value | 215 | 232 |
Derivative Asset, Net | $ 215 | $ 232 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Net income | $ 5,388 | $ 3,985 | $ 4,143 |
Net income attributable to noncontrolling interests | 50 | 82 | 37 |
Preferred stock dividends | 236 | 209 | 220 |
Preferred discount accretion and redemptions | 26 | 6 | 5 |
Net income attributable to common shares | 5,076 | 3,688 | 3,881 |
Dividends and undistributed earnings allocated to participating securities | 23 | 26 | 17 |
Net Income (Loss) Available to Common Stockholders, Basic | 5,053 | 3,662 | 3,864 |
Less: Impact of BlackRock earnings per share dilution | 16 | 12 | 18 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 5,037 | $ 3,650 | $ 3,846 |
Weighted Average Number of Shares Outstanding, Basic (shares) | 481 | 494 | 514 |
Basic earnings per common share (dollars per share) | $ 10.49 | $ 7.42 | $ 7.52 |
Dilutive potential common shares | 5 | 6 | 7 |
Weighted Average Number of Shares Outstanding, Diluted (shares) | 486 | 500 | 521 |
Diluted earnings per common share (dollars per share) | $ 10.36 | $ 7.30 | $ 7.39 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 4 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2018 | May 04, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 17, 2018 | Jan. 16, 2018 | Jan. 04, 2018 | May 05, 2010 | ||
Debt Instrument [Line Items] | ||||||||||
Preferred stock redemption, value | $ 500 | |||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | [1] | $ 1,000 | ||||||||
Common stock, issued | 542,000,000 | 542,000,000 | ||||||||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 200,000 | 300,000 | 300,000 | |||||||
Stock Repurchase Plan 2014 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Shares Repurchased Under Stock Repurchase Program | 4,400,000 | |||||||||
Stock Repurchase Plan 2015 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Shares Repurchased Under Stock Repurchase Program | 18,600,000 | 22,800,000 | ||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 100,000,000 | |||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 40,700,000 | |||||||||
Series K Preferred Stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Depositary Shares | [2] | 500,000 | ||||||||
Preferred stock redemption, shares | [2] | 50,000 | ||||||||
Preferred stock redemption, value | $ 500 | |||||||||
TARP Warrant | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of warrants or rights outstanding | 3,500,000 | 11,300,000 | 16,900,000 | |||||||
Class of warrant or right exercised | 7,800,000 | |||||||||
Exercise price per share of warrants or rights outstanding | $ 67.24 | |||||||||
TARP Warrant | Common Stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common stock, issued | 3,500,000 | |||||||||
PNC Preferred Funding Trust II | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed to Floating Rate Of Non Cumulative Exchangeable Trust securities | 2.19% | |||||||||
PNC Preferred Funding Trust I | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed to Floating Rate Of Non Cumulative Exchangeable Trust securities | 2.61% | |||||||||
PNC Capital Trust C | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount Of Junior Subordinated Debt | $ 200 | |||||||||
Shares Issued To Exercising Warrant Holders | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 92,000,000 | |||||||||
Dividend Declared | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Dividends Payable, Amount Per Share | $ 0.66 | |||||||||
Subsequent Event | TARP Warrant | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Exercise price per share of warrants or rights outstanding | $ 67.20 | $ 67.24 | ||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | |||||||||
Subsequent Event | PNC Preferred Funding Trust II | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ 500 | |||||||||
Subsequent Event | Dividend Declared | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Dividends Payable, Amount Per Share | $ 0.75 | |||||||||
[1] | Relates to the redemption of Perpetual Trust Securities in the first quarter of 2017. See Note 15 Equity for additional information. | |||||||||
[2] | On May 4, 2015, we redeemed all 50,000 shares of our Series K preferred stock, as well as all 500,000 Depositary Shares representing fractional interests in such shares, resulting in net outflow of $500 million. |
Equity (Preferred Stock - Autho
Equity (Preferred Stock - Authorized, Issued and Outstanding) (Details) - $ / shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Preferred Stock, Shares Authorized | 20,000 | 20,000 | |
Preferred Stock, Par Value Per Share | $ 1 | $ 1 | |
Preferred Stock, Shares Outstanding | 41 | 41 | |
Series B Preferred Stock | |||
Preferred Stock, Liquidation Preference Per Share | $ 40 | ||
Preferred Stock, Shares Outstanding | 1 | 1 | |
Series O Preferred Stock | |||
Preferred Stock, Liquidation Preference Per Share | $ 100,000 | ||
Preferred Stock, Shares Outstanding | 10 | 10 | |
Series P Preferred Stock | |||
Preferred Stock, Liquidation Preference Per Share | $ 100,000 | ||
Preferred Stock, Shares Outstanding | 15 | 15 | |
Series Q Preferred Stock | |||
Preferred Stock, Liquidation Preference Per Share | $ 100,000 | ||
Preferred Stock, Shares Outstanding | 5 | 5 | |
Series R Preferred Stock | |||
Preferred Stock, Liquidation Preference Per Share | $ 100,000 | ||
Preferred Stock, Shares Outstanding | 5 | 5 | |
Series S Preferred Stock | |||
Preferred Stock, Par Value Per Share | [1] | $ 1 | |
Preferred Stock, Liquidation Preference Per Share | $ 100,000 | ||
Preferred Stock, Shares Outstanding | 5 | 5 | |
[1] | On November 1, 2016, PNC issued 5,250 shares of Series S preferred stock with a $1 par value. |
Equity (Terms of Outstanding Pr
Equity (Terms of Outstanding Preferred Stock) (Details) | Nov. 01, 2016shares | May 07, 2013shares | Apr. 24, 2012shares | Jul. 27, 2011shares | Oct. 09, 2012shares | Sep. 21, 2012shares | Dec. 31, 2017voting_right$ / shares | May 04, 2015shares | |
Series B Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $ / shares | $ 1.8 | ||||||||
Preferred stock, voting rights | voting_right | 8 | ||||||||
Series O Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Preferred Stock, Dividend Rate, Percentage | 6.75% | ||||||||
Depositary Shares | 1,000,000 | ||||||||
Interest In Preferred Stock | 1.00% | ||||||||
Series P Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Preferred Stock, Dividend Rate, Percentage | 6.125% | ||||||||
Depositary Shares | 60,000,000 | ||||||||
Interest In Preferred Stock | 0.025% | ||||||||
Series Q Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Preferred Stock, Dividend Rate, Percentage | 5.375% | 5.375% | |||||||
Depositary Shares | 1,200,000 | 18,000,000 | |||||||
Interest In Preferred Stock | 0.025% | 0.025% | |||||||
Series R Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Preferred Stock, Dividend Rate, Percentage | 4.85% | ||||||||
Depositary Shares | 500,000 | ||||||||
Interest In Preferred Stock | 1.00% | ||||||||
Series S Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | ||||||||
Depositary Shares | 525,000 | ||||||||
Interest In Preferred Stock | 1.00% | ||||||||
Series K Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Depositary Shares | [1] | 500,000 | |||||||
3-month LIBOR | Series O Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate - LIBOR Plus | 3.678% | ||||||||
3-month LIBOR | Series P Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate - LIBOR Plus | 4.0675% | ||||||||
3-month LIBOR | Series R Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate - LIBOR Plus | 3.04% | ||||||||
3-month LIBOR | Series S Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate - LIBOR Plus | 3.30% | ||||||||
[1] | On May 4, 2015, we redeemed all 50,000 shares of our Series K preferred stock, as well as all 500,000 Depositary Shares representing fractional interests in such shares, resulting in net outflow of $500 million. |
Other Comprehensive Income (Oth
Other Comprehensive Income (Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Unrealized Gains Losses on Non Otti Securities [Abstract] | |||
Increase in net unrealized gains(losses) on non-OTTI securities | $ 29 | $ (329) | $ (494) |
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities in interest income, before tax | 25 | 24 | 27 |
Less: Net gains (losses) realized on sales of non-OTTI securities reclassified to noninterest income, before tax | (12) | 16 | 48 |
Net unrealized gains (losses) on non-OTTI securities | 16 | (369) | (569) |
Other Comprehensive Income (Loss), Non Otti Securities Adjustment, Tax | (6) | 135 | 208 |
Net unrealized gains (losses) on non-OTTI securities, Activity, After Tax | 10 | (234) | (361) |
Net Unrealized Gains Losses On Otti Securities [Abstract] | |||
Increase in net unrealized gains (losses) on OTTI securities, Pretax | 173 | 61 | (17) |
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income | 2 | ||
Less: Net OTTI losses realized in net income, Pre-tax | (1) | (2) | (4) |
Net unrealized gains (losses) on OTTI securities | 172 | 63 | (13) |
Net unrealized gains (losses) on OTTI securities, tax | (63) | (23) | 5 |
Net unrealized gains (losses) on OTTI securities, Activity, After Tax | 109 | 40 | (8) |
Net unrealized gains (losses) on cash flow hedge derivatives [Abstract] | |||
Increase in net unrealized gains (losses) on cash flow hedge derivatives, Pretax | (90) | 100 | 415 |
Less: Net gains (losses) realized as a yield adjustment reclassified to loan interest income, Before Tax | 159 | 219 | 270 |
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income, Before Tax | 21 | 34 | 23 |
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income, Before Tax | 17 | (5) | |
Net unrealized gains (losses) on cash flow hedge derivatives, Before Tax | (287) | (153) | 127 |
Net unrealized gains (losses) on cash flow hedge derivatives, tax | 105 | 56 | (47) |
Net unrealized gains (losses) on cash flow hedge derivatives, Net of tax, Total | (182) | (97) | 80 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax | 126 | (41) | (82) |
Amortization of actuarial loss (gain) reclassified to other noninterest expense, Before tax | 47 | 50 | 38 |
Amortization of prior service cost (credit) reclassified to other noninterest expense, Before tax | (4) | (8) | (10) |
Pension and other postretirement benefit plan adjustments, net activity, Pre-Tax | 169 | 1 | (54) |
Pension and other postretirement benefit plan adjustments, net activity, Tax | (62) | 20 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 107 | 1 | (34) |
Other Comprehensive Income Other Adjustments [Abstract] | |||
PNC's portion of BlackRock's OCI, Before tax | 52 | (63) | (39) |
Net investment hedge derivatives, Before tax | (81) | 186 | 60 |
Foreign Currency Transaction and Translation Adjustment, before Tax | 90 | (182) | (63) |
Total Other, net activity, Before tax | 61 | (59) | (42) |
Total Other, net activity, Tax | 12 | (46) | (8) |
Total Other, net activity, After tax | 73 | (105) | (50) |
Other Comprehensive Income (Loss), before Tax | 131 | (517) | (551) |
Other Comprehensive Income (Loss), Tax | (14) | 122 | 178 |
Other Comprehensive Income (Loss), Net of Tax | $ 117 | $ (395) | $ (373) |
Other Comprehensive Income (Acc
Other Comprehensive Income (Accumulated Other Comprehensive Income (Loss) Components) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Unrealized Gains Losses on Non Otti Securities [Abstract] | |||
Net unrealized gains (losses) on non-OTTI securities, after-tax, Beginning Balance | $ 52 | $ 286 | $ 647 |
Other Comprehensive Income (Loss), Non Otti Securities Adjustment, After Tax | 10 | (234) | (361) |
Net unrealized gains (losses) on non-OTTI securities, after-tax, Ending Balance | 62 | 52 | 286 |
Net Unrealized Gains Losses On Otti Securities [Abstract] | |||
Net unrealized gains (losses) on OTTI securities, after tax, Beginning Balance | 106 | 66 | 74 |
Other Comprehensive Income Loss Otti Securities Adjustment After Tax | 109 | 40 | (8) |
Net unrealized gains (losses) on OTTI securities, after tax, Ending Balance | 215 | 106 | 66 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Net unrealized gains (losses) on cash flow hedge derivatives, after-tax, Beginning balance | 333 | 430 | 350 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (182) | (97) | 80 |
Net unrealized gains (losses) on cash flow hedge derivatives, after-tax, Ending balance | 151 | 333 | 430 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract] | |||
Pension and other postretirement benefit plan adjustments, after tax, Beginning Balance | (553) | (554) | (520) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 107 | 1 | (34) |
Pension and other postretirement benefit plan adjustments, after tax, Ending Balance | (446) | (553) | (554) |
Other Comprehensive Income Other Adjustments [Abstract] | |||
Other, after tax, Beginning balance | (203) | (98) | (48) |
Total Other, net activity, After tax | 73 | (105) | (50) |
Other, after tax, Ending balance | (130) | (203) | (98) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | (265) | 130 | 503 |
Other comprehensive income (loss), after tax and net of reclassifications into Net income | 117 | (395) | (373) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | $ (148) | $ (265) | $ 130 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2032 | |
Tax benefit primarily attributable to the revaluation of net deferred tax liabilities | $ 1,200 | |
Allocations For Bad Debt Deductions Of Former Thrift Subsidiaries Included In Retained Earnings | 100 | $ 100 |
Remaining foreign earnings for which U.S. deferred taxes have not been provided | $ 0 | $ 0 |
Income Tax Examination No Longer Subject To Prior Date | 2,012 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Federal, current | $ 454 | $ 871 | $ 927 |
State, current | 51 | 71 | 33 |
Total current | 505 | 942 | 960 |
Federal, deferred | (474) | 301 | 320 |
State, deferred | 71 | 25 | 84 |
Total deferred | (403) | 326 | 404 |
Income Tax Expense (Benefit), Total | $ 102 | $ 1,268 | $ 1,364 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Income Taxes [Abstract] | ||
Deferred tax assets - Allowance for loan and lease losses | $ 631 | $ 976 |
Deferred tax assets - Compensation and benefits | 223 | 548 |
Deferred tax assets - Partnership investments | 173 | 307 |
Deferred tax assets - Loss and credit carryforward | 301 | 460 |
Deferred tax assets - Accrued expenses | 284 | 505 |
Deferred tax assets - Other | 131 | 252 |
Total gross deferred tax assets | 1,743 | 3,048 |
Valuation allowance | (40) | (75) |
Total deferred tax assets | 1,703 | 2,973 |
Deferred tax liabilities - Leasing | 1,034 | 1,374 |
Deferred tax liabilities - Goodwill and intangibles | 197 | 312 |
Deferred tax liabilities - Fixed assets | 206 | 391 |
Deferred tax liabilities - Mortgage Servicing Rights | 146 | 246 |
Deferred tax liabilities - Net unrealized gains on securities and financial instruments | 155 | 284 |
Deferred tax liabilities - BlackRock basis difference | 1,594 | 2,361 |
Deferred tax liabilities - Other | 345 | 371 |
Total deferred tax liabilities | 3,677 | 5,339 |
Net deferred tax liability | $ 1,974 | $ 2,366 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory and Effective Tax Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Effective tax rate increase (decrease) - State taxes net of federal benefit | 1.50% | 1.20% | 1.40% |
Effective tax rate increase (decrease) - Tax-exempt interest | (2.50%) | (2.40%) | (2.30%) |
Effective tax rate increase (decrease) - Life insurance | (1.80%) | (1.90%) | (1.70%) |
Effective tax rate increase (decrease) - Dividend received deduction | (1.80%) | (1.80%) | (1.70%) |
Effective tax rate increase (decrease) - Tax credits | (4.20%) | (4.40%) | (3.90%) |
Effective tax rate increase (decrease) - Federal deferred tax revaluation | (21.70%) | ||
Effective tax rate increase (decrease) - Other | (2.60%) | (1.60%) | (2.00%) |
Effective tax rate | 1.90% | 24.10% | 24.80% |
Income Taxes (Net Operating Los
Income Taxes (Net Operating Loss Carryforwards) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards | $ 640 | $ 759 |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2032 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards | $ 1,776 | $ 2,345 |
Operating Loss Carryforwards Earliest Expiration Date | 2,018 | |
Operating Loss Carryforwards Latest Expiration Date | 2,036 |
Income Taxes (Changes in Liabil
Income Taxes (Changes in Liability for Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance of gross unrecognized tax benefits | $ 22 | $ 26 | $ 77 |
Increases: Positions taken during a prior period | 4 | 14 | 17 |
Decreases: Positions taken during a prior period | (3) | (14) | (9) |
Decreases: Settlements with taxing authorities | (4) | (52) | |
Decreases: Reductions resulting from lapse of statute of limitations | (1) | (4) | (7) |
Ending balance of gross unrecognized tax benefits | 18 | 22 | 26 |
Unrecognized tax benefits that would favorably impact the effective tax rate | $ 17 | $ 18 | $ 20 |
Income Taxes (IRS Tax Examinati
Income Taxes (IRS Tax Examination Status) (Details) - Internal Revenue Service (IRS) | 12 Months Ended |
Dec. 31, 2017 | |
Completed | |
Income Tax Examination Earliest Year Under Examination | 2,014 |
Income Tax Examination Latest Year Under Examination | 2,015 |
Under Exam | |
Income Tax Examination, Year under Examination | 2,016 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) $ in Billions | Dec. 31, 2017USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Amount available for dividend payments to parent company without prior regulatory approval | $ 1.6 |
Outstanding cash reserves at the Federal Reserve Bank | $ 28.3 |
Regulatory Matters (Basel Regul
Regulatory Matters (Basel Regulatory Capital) (Details) - Transitional Basel III - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
PNC | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 Capital amount | $ 32,146 | $ 31,799 |
Common equity Tier 1 Capital ratio | 10.40% | 10.60% |
Tier 1 Risk-based capital amount | $ 36,007 | $ 36,101 |
Tier 1 Risk-based capital ratio | 11.60% | 12.00% |
US regulatory well capitalized level - Tier 1 risk-based capital ratio | 6.00% | 6.00% |
Total Risk-based capital amount | $ 42,496 | $ 43,016 |
Total Risk-based capital ratio | 13.70% | 14.30% |
US regulatory well capitalized level - Total risk-based capital ratio | 10.00% | 10.00% |
Leverage amount | $ 36,007 | $ 36,101 |
Leverage ratio | 9.90% | 10.10% |
PNC Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 Capital amount | $ 28,771 | $ 27,896 |
Common equity Tier 1 Capital ratio | 9.70% | 9.70% |
US regulatory well capitalized level - Common equity Tier 1 risk-based capital ratio | 6.50% | 6.50% |
Tier 1 Risk-based capital amount | $ 28,942 | $ 29,495 |
Tier 1 Risk-based capital ratio | 9.70% | 10.20% |
US regulatory well capitalized level - Tier 1 risk-based capital ratio | 8.00% | 8.00% |
Total Risk-based capital amount | $ 34,756 | $ 35,842 |
Total Risk-based capital ratio | 11.70% | 12.40% |
US regulatory well capitalized level - Total risk-based capital ratio | 10.00% | 10.00% |
Leverage amount | $ 28,942 | $ 29,495 |
Leverage ratio | 8.20% | 8.60% |
US regulatory well capitalized level - Leverage ratio | 5.00% | 5.00% |
Legal Proceedings - 10-K (Detai
Legal Proceedings - 10-K (Details) $ in Millions | 1 Months Ended | 12 Months Ended |
Jan. 31, 2018USD ($) | Dec. 31, 2017USD ($)mortgage_loan | |
Legal Reserve | Maximum | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 100 | |
Interchange Litigation | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement Amount | 6,600 | |
Fulton Financial Advisors NA V PNC Capital Markets LLC | PNC Capital Markets Llc | ||
Loss Contingencies [Line Items] | ||
Purchase Of Auction Rate Certificates | 123 | |
Fulton Financial Advisors NA V PNC Capital Markets LLC | National City Corporation | ||
Loss Contingencies [Line Items] | ||
Purchase Of Auction Rate Certificates | 175 | |
White Et Al V The PNC Financial Services Group | ||
Loss Contingencies [Line Items] | ||
Private Mortgage Insurance Premiums | 219 | |
Paid Claims Supporting Captive Reinsurance Arrangements | 12 | |
Residential Funding Company LLC V Pnc Bank | ||
Loss Contingencies [Line Items] | ||
Residential Mortgage Loans Sold Allegedly Materially Defective | $ 6,500 | |
ResCap Liquidating Trust v PNC Bank | ||
Loss Contingencies [Line Items] | ||
Residential Mortgage Loans Sold | mortgage_loan | 21,300 | |
Bankruptcy Mortgage Loans Sold Prinicipal Balance | $ 789 | |
Jo Ann Howard Pc Et Al V Cassity Et Al | ||
Loss Contingencies [Line Items] | ||
Alleged Present And Future Losses | 600 | |
Compensatory damages | 356 | |
Punitive Damages | 36 | |
Prejudgement Interests | 179 | |
Reduced Compensatory Damages | 289 | |
DD Growth Premium Master Fund | ||
Loss Contingencies [Line Items] | ||
Alleged Claims For Loss In Net Asset Value Of Fund | 283 | |
Alleged Claims For Certain Subscriptions Paid Into Fund | $ 134 | |
Subsequent Event | Federal Reserve Termination of Consent Order | ||
Loss Contingencies [Line Items] | ||
Civil money penalty assessed | $ 3.5 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) - Standby letters of credit - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | ||
Internal credit ratings (as a percentage of portfolio) - Pass | 91.00% | 94.00% |
Internal credit ratings (as a percentage of portfolio) - Below pass | 9.00% | 6.00% |
Standby letters of credit - Terms outstanding - Minimum | 1 year | |
Standby letters of credit - Terms outstanding - Maximum | 7 years | |
Standby letters of credit - Assets securing certain specifically identified standby letters of credit | $ 1.3 | |
Standby letters of credit and participations in standby letters of credit - Liability carrying amount | $ 0.2 |
Commitments (Other Commitments)
Commitments (Other Commitments) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Commitments [Line Items] | ||
Commitments | $ 172,521 | $ 163,897 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitments | 159,641 | 151,981 |
Commitments to extend credit | Total commercial lending | ||
Other Commitments [Line Items] | ||
Commitments | 112,125 | 108,256 |
Commitments to extend credit | Home Equity Line of Credit | ||
Other Commitments [Line Items] | ||
Commitments | 17,852 | 17,438 |
Commitments to extend credit | Credit Card | ||
Other Commitments [Line Items] | ||
Commitments | 24,911 | 22,095 |
Commitments to extend credit | Other | ||
Other Commitments [Line Items] | ||
Commitments | 4,753 | 4,192 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitments | 8,651 | 8,324 |
Standby letters of credit | Remarketing Programs | ||
Other Commitments [Line Items] | ||
Commitments | 3,500 | 3,900 |
Reinsurance Agreements | ||
Other Commitments [Line Items] | ||
Commitments | 1,654 | 1,835 |
Reinsurance Agreements | Accidental Death and Dismemberment | ||
Other Commitments [Line Items] | ||
Maximum Exposure | 1,500 | 1,500 |
Reinsurance Agreements | Credit Life Accident and Health | ||
Other Commitments [Line Items] | ||
Maximum Exposure | 200 | 300 |
Standby bond purchase agreements | ||
Other Commitments [Line Items] | ||
Commitments | 843 | 790 |
Other commitments | ||
Other Commitments [Line Items] | ||
Commitments | 1,732 | 967 |
Other commitments | Investments in qualified affordable housing projects | ||
Other Commitments [Line Items] | ||
Commitments | $ 500 | $ 500 |
Parent Company (Income Statemen
Parent Company (Income Statement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Revenues [Abstract] | |||
Noninterest Income, Other Operating Income | $ 1,198 | $ 1,124 | $ 1,337 |
Operating Expenses [Abstract] | |||
Income tax benefits | 102 | 1,268 | 1,364 |
Other comprehensive income (loss), after tax and net of reclassifications into Net income | 117 | (395) | (373) |
Comprehensive income attributable to PNC | 5,455 | 3,508 | 3,733 |
Parent Company | |||
Operating Revenues [Abstract] | |||
Interest income | 109 | 93 | 82 |
Noninterest Income, Other Operating Income | 37 | 13 | 56 |
Total operating revenue | 3,800 | 3,142 | 3,297 |
Operating Expenses [Abstract] | |||
Interest expense | 215 | 197 | 193 |
Other Expenses | 175 | 109 | 89 |
Total operating expense | 390 | 306 | 282 |
Income before income taxes and equity in undistributed net income of subsidiaries | 3,410 | 2,836 | 3,015 |
Income tax benefits | (52) | (96) | (98) |
Income Before Equity In Undistributed Net Income Of Subsidiaries | 3,462 | 2,932 | 3,113 |
Equity In Undistributed Net Income Of Subsidiaries | 1,974 | 971 | 993 |
Net income attributable to common shareholders | 5,338 | 3,903 | 4,106 |
Net pension and other postretirement benefit plan activity arising during the period. | 1 | 13 | (3) |
Other comprehensive income (loss), after tax and net of reclassifications into Net income | 1 | 13 | (3) |
Comprehensive income attributable to PNC | 5,339 | 3,916 | 4,103 |
Parent Company | Bank Subsidiaries And Bank Holding Company | |||
Operating Revenues [Abstract] | |||
Dividends from | 3,278 | 2,906 | 3,110 |
Operating Expenses [Abstract] | |||
Equity In Undistributed Net Income Of Subsidiaries | 1,974 | 818 | 736 |
Parent Company | Non Bank Subsidiaries | |||
Operating Revenues [Abstract] | |||
Dividends from | 376 | 130 | 49 |
Operating Expenses [Abstract] | |||
Equity In Undistributed Net Income Of Subsidiaries | $ (98) | $ 153 | $ 257 |
Parent Company (Balance Sheet)
Parent Company (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Other assets | [1] | $ 27,894 | $ 27,506 | ||
Total assets | 380,768 | 366,380 | |||
Subordinated debt | 5,200 | 8,009 | |||
Total liabilities | 333,183 | 319,526 | |||
Shareholders’ equity | 47,513 | 45,699 | |||
Total liabilities and equity | 380,768 | 366,380 | |||
Parent Company | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Cash held at banking subsidiary | 1 | 1 | $ 1 | $ 1 | |
Restricted deposits with banking subsidiary | 175 | 175 | |||
Nonrestricted interest-earning deposits | 5,800 | 4,684 | |||
Loans with affiliates | 1,244 | 1,358 | |||
Other assets | 1,243 | 1,322 | |||
Total assets | 55,221 | 52,760 | |||
Subordinated debt | 1,645 | 2,242 | |||
Senior debt (a) | 5,203 | 3,959 | |||
Commercial Paper | 100 | ||||
Other borrowed funds from affiliates | 108 | 223 | |||
Accrued expenses and other liabilities | 652 | 637 | |||
Total liabilities | 7,708 | 7,061 | |||
Shareholders’ equity | 47,513 | 45,699 | |||
Total liabilities and equity | 55,221 | 52,760 | |||
Parent Company | Bank Subsidiaries And Bank Holding Company | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Investments in subsidiaries | 44,360 | 42,361 | |||
Parent Company | Non Bank Subsidiaries | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Investments in subsidiaries | $ 2,398 | $ 2,859 | |||
[1] | Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.7 billion, Loans of $.9 billion, and Other assets of $.3 billion at December 31, 2017 and Loans held for sale of $2.4 billion, Loans of $.9 billion, and Other assets of $.5 billion at December 31, 2016. |
Parent Company (Interest Paid a
Parent Company (Interest Paid and Income Tax Refunds) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest paid | $ 1,743 | $ 1,317 | $ 1,005 |
Income taxes refunded | 24 | 111 | 286 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest paid | 287 | 317 | 404 |
Income taxes refunded | $ 40 | $ 183 | $ 64 |
Parent Company (Statement of Ca
Parent Company (Statement of Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||
Other | $ 350 | $ 100 | $ (439) |
Net cash provided (used) by operating activities | 5,699 | 3,635 | 5,525 |
Investing Activities | |||
Other | (1,340) | (952) | (706) |
Net cash provided (used) by investing activities | (15,015) | (7,442) | (16,260) |
Financing Activities | |||
Net change in commercial paper | 1,394 | ||
Preferred stock issuances | 519 | ||
Acquisition of treasury stock | (2,447) | (2,062) | (2,152) |
Preferred stock cash dividends paid | (236) | (209) | (219) |
Common stock cash dividends paid | (1,266) | (1,061) | (1,038) |
Parent Company | |||
Operating Activities | |||
Net Income (Loss) Attributable to Parent | 5,338 | 3,903 | 4,106 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||
Equity in undistributed net earnings of subsidiaries | (1,974) | (971) | (993) |
Return on investment in subsidiary | 98 | ||
Other | 194 | 143 | 149 |
Net cash provided (used) by operating activities | 3,656 | 3,075 | 3,262 |
Investing Activities | |||
Net change in loans and securities from affiliates | 114 | 2,161 | (185) |
Net change in restricted deposits with banking subsidiary | (175) | 400 | |
Net change in nonrestricted interest earning deposits | (1,116) | (1,607) | 3,244 |
Net change in restricted interest-earning deposits | 300 | (300) | |
Other | 266 | (82) | |
Net cash provided (used) by investing activities | (1,002) | 945 | 3,077 |
Financing Activities | |||
Net change in other borrowed funds from affiliates | 316 | (124) | (100) |
Net change in senior debt | 1,325 | (1,252) | (1,888) |
Net change in subordinated debt | (580) | 17 | (580) |
Net change in commercial paper | 100 | ||
Preferred stock issuances | 519 | ||
Preferred stock redemptions | (500) | ||
Common and treasury stock issuances | 132 | 151 | 139 |
Acquisition of treasury stock | (2,447) | (2,062) | (2,152) |
Preferred stock cash dividends paid | (236) | (209) | (219) |
Common stock cash dividends paid | (1,264) | (1,060) | (1,039) |
Net cash provided (used) by financing activities | (2,654) | (4,020) | (6,339) |
Cash held at banking subsidiary at beginning of year | 1 | 1 | 1 |
Cash held at banking subsidiary at end of year | $ 1 | $ 1 | $ 1 |
Segment Reporting (Tables) (Det
Segment Reporting (Tables) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 9,108 | $ 8,391 | $ 8,278 |
Noninterest income | 7,221 | 6,771 | 6,947 |
Total revenue | 16,329 | 15,162 | 15,225 |
Provision for credit losses (benefit) | 441 | 433 | 255 |
Depreciation and amortization | 921 | 843 | 809 |
Other noninterest expense | 9,477 | 8,633 | 8,654 |
Income before income taxes and noncontrolling interests | 5,490 | 5,253 | 5,507 |
Income taxes (benefit) | 102 | 1,268 | 1,364 |
Net income | 5,388 | 3,985 | 4,143 |
Average Assets | 371,769 | 361,260 | 354,964 |
Retail Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 4,625 | 4,509 | 4,306 |
Noninterest income | 2,236 | 2,693 | 2,781 |
Total revenue | 6,861 | 7,202 | 7,087 |
Provision for credit losses (benefit) | 347 | 297 | 253 |
Depreciation and amortization | 177 | 175 | 187 |
Other noninterest expense | 5,274 | 5,116 | 5,257 |
Income before income taxes and noncontrolling interests | 1,063 | 1,614 | 1,390 |
Income taxes (benefit) | 533 | 591 | 506 |
Net income | 530 | 1,023 | 884 |
Average Assets | 88,663 | 85,871 | 86,977 |
Corporate & Institutional Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 3,396 | 3,181 | 3,144 |
Noninterest income | 2,271 | 2,035 | 1,947 |
Total revenue | 5,667 | 5,216 | 5,091 |
Provision for credit losses (benefit) | 160 | 177 | 78 |
Depreciation and amortization | 184 | 153 | 149 |
Other noninterest expense | 2,244 | 2,069 | 2,038 |
Income before income taxes and noncontrolling interests | 3,079 | 2,817 | 2,826 |
Income taxes (benefit) | 615 | 908 | 934 |
Net income | 2,464 | 1,909 | 1,892 |
Average Assets | 148,414 | 140,309 | 133,754 |
Asset Management Group | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 287 | 300 | 292 |
Noninterest income | 881 | 851 | 869 |
Total revenue | 1,168 | 1,151 | 1,161 |
Provision for credit losses (benefit) | 1 | (6) | 9 |
Depreciation and amortization | 50 | 45 | 44 |
Other noninterest expense | 813 | 780 | 802 |
Income before income taxes and noncontrolling interests | 304 | 332 | 306 |
Income taxes (benefit) | 102 | 122 | 112 |
Net income | 202 | 210 | 194 |
Average Assets | 7,511 | 7,707 | 7,920 |
BlackRock | |||
Segment Reporting Information [Line Items] | |||
Noninterest income | 1,078 | 685 | 717 |
Total revenue | 1,078 | 685 | 717 |
Income before income taxes and noncontrolling interests | 1,078 | 685 | 717 |
Income taxes (benefit) | (686) | 153 | 169 |
Net income | 1,764 | 532 | 548 |
Average Assets | 7,677 | 7,118 | 6,983 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 800 | 401 | 536 |
Noninterest income | 755 | 507 | 633 |
Total revenue | 1,555 | 908 | 1,169 |
Provision for credit losses (benefit) | (67) | (35) | (85) |
Depreciation and amortization | 510 | 470 | 429 |
Other noninterest expense | 1,146 | 668 | 557 |
Income before income taxes and noncontrolling interests | (34) | (195) | 268 |
Income taxes (benefit) | (462) | (506) | (357) |
Net income | 428 | 311 | 625 |
Average Assets | $ 119,504 | $ 120,255 | $ 119,330 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 4 | ||
BlackRock | |||
Segment Reporting Information [Line Items] | |||
PNC's economic interest in BlackRock | 22.00% | ||
Proceeds from dividends received | $ 354 | $ 331 | $ 320 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jan. 31, 2018 | Jan. 22, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||||
Decrease in other assets related to BlackRock Series C Preferred Stock transferred | $ (757,000,000) | $ 644,000,000 | $ (1,568,000,000) | ||
BlackRock Series C Preferred Stock | |||||
Debt Instrument [Line Items] | |||||
LTIP - Number of preferred stock shares transferred (shares) | 520,000 | ||||
LTIP - Total preferred shares held at end of period (shares) | 250,000 | ||||
Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Decrease in other assets related to BlackRock Series C Preferred Stock transferred | $ (42,000,000) | ||||
Decrease in other liabilities related to BlackRock Series C Preferred Stock transferred | $ (42,000,000) | ||||
Subsequent Event | BlackRock Series C Preferred Stock | |||||
Debt Instrument [Line Items] | |||||
LTIP - Number of preferred stock shares transferred (shares) | 103,064 | ||||
LTIP - Total preferred shares held at end of period (shares) | 143,458 | ||||
Subsequent Event | Senior Notes | Senior Notes Maturing January 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt issued | $ 900,000,000 | ||||
Debt Instrument, Maturity Date | Jan. 22, 2021 | ||||
Stated interest rate | 2.50% | ||||
Subsequent Event | Senior Notes | Senior Notes Maturing January 2028 | |||||
Debt Instrument [Line Items] | |||||
Debt issued | $ 700,000,000 | ||||
Debt Instrument, Maturity Date | Jan. 22, 2028 | ||||
Stated interest rate | 3.25% | ||||
Subsequent Event | Senior Notes | Senior Floating Rate Notes Maturing January 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt issued | $ 400,000,000 | ||||
Debt Instrument, Maturity Date | Jan. 22, 2021 | ||||
Subsequent Event | Senior Notes | Senior Floating Rate Notes Maturing January 2021 | 3-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate - LIBOR Plus | 0.25% |