Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 05, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-36636 | ||
Entity Registrant Name | CITIZENS FINANCIAL GROUP INC/RI | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 05-0412693 | ||
Entity Address, Address Line One | One Citizens Plaza | ||
Entity Address, City or Town | Providence | ||
Entity Address, State or Province | RI | ||
Entity Address, Postal Zip Code | 02903 | ||
City Area Code | 401 | ||
Local Phone Number | 456-7000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 16,145,696,534 | ||
Entity Common Stock, Shares Outstanding | 427,434,404 | ||
Documents Incorporated by Reference | Portions of Citizens Financial Group, Inc.’s proxy statement to be filed with the United States Securities and Exchange Commission in connection with Citizens Financial Group, Inc.’s 2020 annual meeting of stockholders (the “Proxy Statement”) are incorporated by reference into Part III hereof. Such Proxy Statement will be filed within 120 days of Citizens Financial Group, Inc.’s fiscal year ended December 31, 2019 . | ||
Entity Central Index Key | 0000759944 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common stock, $0.01 par value per share | ||
Trading Symbol | CFG | ||
Security Exchange Name | NYSE | ||
Series D Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th interest in a share of 6.350% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D | ||
Trading Symbol | CFG PrD | ||
Security Exchange Name | NYSE | ||
Series E Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th interest in a share of 5.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series E | ||
Trading Symbol | CFG PrE | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS: | |||
Cash and due from banks | $ 1,175 | $ 1,081 | |
Interest-bearing cash and due from banks | 2,211 | 2,993 | |
Interest-bearing deposits in banks | 297 | 148 | |
Debt securities available for sale, at fair value (including $363 and $91 pledged to creditors, respectively) | [1] | 20,613 | 19,895 |
Debt securities held to maturity (fair value of $3,242 and $4,041, respectively, and including $249 and $0 pledged to creditors, respectively) | [1] | 3,202 | 4,165 |
Equity investment securities, at fair value | 47 | 181 | |
Equity investment securities, at cost | 807 | 834 | |
Loans held for sale, at fair value | 1,946 | 1,219 | |
Other loans held for sale | 1,384 | 101 | |
Loans and leases | 119,088 | 116,660 | |
Less: Allowance for loan and lease losses | (1,252) | (1,242) | |
Net loans and leases | 117,836 | 115,418 | |
Derivative assets | 807 | 317 | |
Premises and equipment, net | 761 | 791 | |
Bank-owned life insurance | 1,725 | 1,698 | |
Goodwill | 7,044 | 6,923 | |
Other assets | 5,878 | 4,754 | |
TOTAL ASSETS | 165,733 | 160,518 | |
Deposits: | |||
Noninterest-bearing | 29,233 | 29,458 | |
Interest-bearing | 96,080 | 90,117 | |
Total deposits | 125,313 | 119,575 | |
Federal funds purchased and securities sold under agreements to repurchase | 265 | 1,156 | |
Other short-term borrowed funds | 9 | 161 | |
Derivative liabilities | 120 | 292 | |
Deferred taxes, net | 866 | 573 | |
Long-term borrowed funds | 14,047 | 15,925 | |
Other liabilities | 2,912 | 2,019 | |
TOTAL LIABILITIES | 143,532 | 139,701 | |
Contingencies (refer to Note 18) | |||
STOCKHOLDERS’ EQUITY: | |||
$25.00 par value,100,000,000 shares authorized; 1,600,000 shares issued and outstanding at December 31, 2019 and 850,000 shares issued and outstanding at December 31, 2018 | 1,570 | 840 | |
Common stock: | |||
$0.01 par value, 1,000,000,000 shares authorized; 568,238,730 shares issued and 433,121,083 shares outstanding at December 31, 2019 and 566,819,863 shares issued and 466,007,984 shares outstanding at December 31, 2018 | 6 | 6 | |
Additional paid-in capital | 18,891 | 18,815 | |
Retained earnings | 6,498 | 5,385 | |
Treasury stock, at cost, 135,117,647 and 100,811,879 shares at December 31, 2019 and December 31, 2018, respectively | (4,353) | (3,133) | |
Accumulated other comprehensive loss | (411) | (1,096) | |
TOTAL STOCKHOLDERS’ EQUITY | 22,201 | 20,817 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 165,733 | $ 160,518 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS: | |||
Securities held-to-maturity, fair value | $ 3,242 | $ 4,041 | |
STOCKHOLDERS’ EQUITY: | |||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 | |
Preferred stock, issued (in shares) | 1,600,000 | 850,000 | |
Preferred stock, outstanding (in shares) | 1,600,000 | 850,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, issued (in shares) | 568,238,730 | 566,819,863 | |
Common stock, outstanding (in shares) | 433,121,083 | 466,007,984 | |
Treasury stock (in shares) | 135,117,647 | 100,811,879 | |
Available-for-sale Securities | |||
ASSETS: | |||
Securities, pledged to creditors | [1] | $ 359 | $ 363 |
Held-to-maturity Securities | |||
ASSETS: | |||
Securities, pledged to creditors | [1] | 249 | 0 |
Securities held-to-maturity, fair value | [1] | $ 3,242 | $ 4,041 |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST INCOME: | |||
Interest and fees on loans and leases | $ 5,441 | $ 5,010 | $ 4,249 |
Interest and fees on loans held for sale, at fair value | 63 | 37 | 18 |
Interest and fees on other loans held for sale | 13 | 10 | 10 |
Investment securities | 642 | 672 | 625 |
Interest-bearing deposits in banks | 30 | 29 | 18 |
Total interest income | 6,189 | 5,758 | 4,920 |
INTEREST EXPENSE: | |||
Deposits | 1,155 | 785 | 441 |
Federal funds purchased and securities sold under agreements to repurchase | 8 | 6 | 3 |
Other short-term borrowed funds | 2 | 9 | 17 |
Long-term borrowed funds | 410 | 426 | 286 |
Total interest expense | 1,575 | 1,226 | 747 |
Net interest income | 4,614 | 4,532 | 4,173 |
Provision for credit losses | 393 | 326 | 321 |
Net interest income after provision for credit losses | 4,221 | 4,206 | 3,852 |
NONINTEREST INCOME: | |||
Service charges and fees | 505 | 513 | 516 |
Mortgage banking fees | 302 | 152 | 108 |
Card fees | 254 | 244 | 233 |
Capital markets fees | 216 | 179 | 194 |
Trust and investment services fees | 202 | 171 | 158 |
Foreign exchange and interest rate products | 155 | 126 | 109 |
Letter of credit and loan fees | 135 | 128 | 121 |
Securities gains, net | 19 | 19 | 11 |
Net securities impairment losses recognized in earnings on debt securities | (2) | (3) | (7) |
Other income | 91 | 67 | 91 |
Total noninterest income | 1,877 | 1,596 | 1,534 |
NONINTEREST EXPENSE: | |||
Salaries and employee benefits | 2,026 | 1,880 | 1,766 |
Equipment and software expense | 514 | 464 | 443 |
Outside services | 498 | 447 | 404 |
Occupancy | 333 | 333 | 319 |
Other operating expense | 476 | 495 | 542 |
Total noninterest expense | 3,847 | 3,619 | 3,474 |
Income before income tax expense | 2,251 | 2,183 | 1,912 |
Income tax expense | 460 | 462 | 260 |
NET INCOME | 1,791 | 1,721 | 1,652 |
Net income available to common stockholders | $ 1,718 | $ 1,692 | $ 1,638 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 449,731,453 | 478,822,072 | 502,157,440 |
Diluted (in shares) | 451,213,701 | 480,430,741 | 503,685,091 |
Per common share information: | |||
Basic earnings (in dollars per share) | $ 3.82 | $ 3.54 | $ 3.26 |
Diluted earnings (in dollars per share) | $ 3.81 | $ 3.52 | $ 3.25 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,791 | $ 1,721 | $ 1,652 |
Other comprehensive income (loss): | |||
Net unrealized derivative instruments gains (losses) arising during the periods, net of income taxes of $35, ($11) and ($9), respectively | 103 | ||
Net unrealized derivative instruments gains (losses) arising during the periods, net of income taxes of $35, ($11) and ($9), respectively, before 2017-12 adoption | (33) | (14) | |
Reclassification adjustment for net derivative losses (gains) included in net income, net of income taxes of $14, $10 and ($9), respectively | 43 | ||
Reclassification adjustment for net derivative losses (gains) included in net income, net of income taxes of $14, $10 and ($9), respectively, before 2017-12 adoption | 33 | (16) | |
Net unrealized debt securities gains (losses) arising during the periods, net of income taxes of $165, ($79) and ($4), respectively | 501 | (239) | (6) |
Other-than-temporary impairment not recognized in earnings on debt securities, net of income taxes of $0, ($1) and $0, respectively | 0 | (3) | 0 |
Reclassification of net debt securities gains to net income, net of income taxes of ($8), ($4) and ($2), respectively | (15) | (12) | (2) |
Employee benefit plans: | |||
Actuarial gain (loss), net of income taxes of $12, ($14) and $12, respectively | 36 | (35) | 19 |
Amortization of actuarial loss, net of income taxes of $6, $3 and $5, respectively | 13 | 14 | 13 |
Amortization of prior service cost, net of income taxes of $0, $0 and $0, respectively | (1) | (1) | (1) |
Total other comprehensive income (loss), net of income taxes | 680 | (276) | (7) |
Total comprehensive income | $ 2,471 | $ 1,445 | $ 1,645 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized derivative instrument losses arising during the periods, tax | $ 35 | ||
Net unrealized derivative instrument losses arising during the periods, tax, before 2017-12 adoption | $ (11) | $ (9) | |
Reclassification adjustment for net derivative losses (gains) included in net income, tax | 14 | ||
Reclassification adjustment for net derivative losses (gains) included in net income, tax, before 2017-12 adoption | 10 | (9) | |
Net unrealized debt securities losses arising during the periods, tax | 165 | (79) | (4) |
Other-than-temporary impairment not recognized in earnings on debt securities, tax | 0 | (1) | 0 |
Reclassification of net debt securities gains to net income, tax | (8) | (4) | (2) |
Actuarial (loss) gain, tax | 12 | (14) | 12 |
Amortization of actuarial loss, tax | 6 | 3 | 5 |
Amortization of prior service credit, tax | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2016 | 0 | 512,000,000 | |||||
Beginning balance at Dec. 31, 2016 | $ 19,747 | $ 247 | $ 6 | $ 18,722 | $ 2,703 | $ (1,263) | $ (668) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (322) | (322) | |||||
Dividends to preferred stockholders | (14) | (14) | |||||
Treasury stock purchased (in shares) | (22,000,000) | ||||||
Treasury stock purchased | (820) | 25 | (845) | ||||
Share-based compensation plans (in shares) | 1,000,000 | ||||||
Share-based compensation plans | 22 | 22 | |||||
Employee stock purchase plan shares purchased | 12 | 12 | |||||
Total comprehensive income: | |||||||
Net income | 1,652 | 1,652 | |||||
Other comprehensive income (loss) | (7) | (7) | |||||
Total comprehensive income | 1,645 | 1,652 | (7) | ||||
Reclassification of tax effects resulting from the 2017 Tax Legislation | (145) | 145 | (145) | ||||
Ending balance (in shares) at Dec. 31, 2017 | 0 | 491,000,000 | |||||
Ending balance at Dec. 31, 2017 | 20,270 | $ 247 | $ 6 | 18,781 | 4,164 | (2,108) | (820) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (471) | (471) | |||||
Dividends to preferred stockholders | (29) | (29) | |||||
Preferred stock issued (in shares) | 1,000,000 | ||||||
Preferred stock issued | $ 593 | $ 593 | |||||
Treasury stock purchased (in shares) | (25,773,807) | (26,000,000) | |||||
Treasury stock purchased | $ (1,025) | 0 | (1,025) | ||||
Share-based compensation plans (in shares) | 1,000,000 | ||||||
Share-based compensation plans | 20 | 20 | |||||
Employee stock purchase plan shares purchased | 14 | 14 | |||||
Total comprehensive income: | |||||||
Net income | 1,721 | 1,721 | |||||
Other comprehensive income (loss) | (276) | (276) | |||||
Total comprehensive income | 1,445 | 1,721 | (276) | ||||
Ending balance (in shares) at Dec. 31, 2018 | 1,000,000 | 466,000,000 | |||||
Ending balance at Dec. 31, 2018 | 20,817 | $ 840 | $ 6 | 18,815 | 5,385 | (3,133) | (1,096) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (617) | (617) | |||||
Dividends to preferred stockholders | (73) | (73) | |||||
Preferred stock issued (in shares) | 1,000,000 | ||||||
Preferred stock issued | $ 730 | $ 730 | |||||
Treasury stock purchased (in shares) | (34,305,768) | (34,000,000) | |||||
Treasury stock purchased | $ (1,220) | 0 | (1,220) | ||||
Share-based compensation plans (in shares) | 1,000,000 | ||||||
Share-based compensation plans | 59 | 59 | |||||
Employee stock purchase plan shares purchased | 17 | 17 | |||||
Total comprehensive income: | |||||||
Net income | 1,791 | 1,791 | |||||
Other comprehensive income (loss) | 680 | 680 | |||||
Total comprehensive income | 2,471 | 1,791 | 680 | ||||
Ending balance (in shares) at Dec. 31, 2019 | 2,000,000 | 433,000,000 | |||||
Ending balance at Dec. 31, 2019 | $ 22,201 | $ 1,570 | $ 6 | $ 18,891 | $ 6,498 | $ (4,353) | $ (411) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
OPERATING ACTIVITIES | |||||
Net income | $ 1,791 | $ 1,721 | $ 1,652 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for credit losses | 393 | 326 | 321 | ||
Originations of mortgage loans held for sale | (21,188) | (8,036) | (2,911) | ||
Proceeds from sales of mortgage loans held for sale | 20,430 | 8,149 | 3,161 | ||
Purchases of commercial loans held for sale | (1,979) | (1,944) | (2,057) | ||
Proceeds from sales of commercial loans held for sale | 2,065 | 1,857 | 1,963 | ||
Depreciation, amortization and accretion | 633 | 489 | 487 | ||
Mortgage servicing rights valuation charge-off (recovery) | 1 | (3) | (2) | ||
Debt securities impairment | 2 | 3 | 7 | ||
Deferred income taxes | 64 | 97 | (136) | ||
Share-based compensation | 41 | 41 | 48 | ||
Net gain on sales of: | |||||
Debt securities | (25) | (19) | (11) | ||
Equity securities | 0 | 0 | (1) | ||
Premises and equipment | (6) | 0 | 0 | ||
Other loans held for sale | 0 | 0 | (17) | ||
Increase in other assets | (856) | (1,217) | (502) | ||
Increase (decrease) in other liabilities | 331 | 303 | (119) | ||
Net cash provided by operating activities | 1,697 | 1,767 | 1,883 | ||
Investment securities: | |||||
Purchases of securities available for sale | (8,422) | (4,270) | (5,394) | ||
Proceeds from maturities and paydowns of debt securities available for sale | 3,946 | 3,258 | 3,470 | ||
Proceeds from sales of debt securities available for sale | 5,016 | 998 | 1,257 | ||
Purchases of debt securities held to maturity | 0 | 0 | (171) | ||
Proceeds from maturities and paydowns of debt securities held to maturity | 398 | 522 | 561 | ||
Purchases of equity securities, at fair value | (717) | (162) | (326) | ||
Proceeds from sales of equity securities, at fair value | 851 | 150 | 253 | ||
Purchases of equity securities, at cost | (511) | (754) | (400) | ||
Proceeds from sales of equity securities, at cost | 538 | 642 | 637 | ||
Net (increase) decrease in interest-bearing deposits in banks | (149) | 44 | 247 | ||
Purchases of mortgage servicing rights | 0 | (16) | (28) | ||
Acquisitions, net of cash acquired | (129) | (533) | 0 | ||
Net increase in loans and leases | (4,334) | (6,445) | (3,634) | ||
Net increase in bank-owned life insurance | (27) | (42) | (44) | ||
Premises and equipment: | |||||
Purchases | (126) | (232) | (253) | ||
Proceeds from sales | 31 | 0 | 0 | ||
Capitalization of software | (240) | (237) | (159) | ||
Net cash used in investing activities | (3,875) | (7,077) | (3,984) | ||
FINANCING ACTIVITIES | |||||
Net increase in deposits | 5,738 | 4,486 | 5,285 | ||
Net (decrease) increase in federal funds purchased and securities sold under agreements to repurchase | (891) | 341 | (333) | ||
Net decrease in other short-term borrowed funds | (157) | (5,211) | (4,959) | ||
Proceeds from issuance of long-term borrowed funds | 12,850 | 22,503 | 15,363 | ||
Repayments of long-term borrowed funds | (14,857) | (14,837) | (12,751) | ||
Treasury stock purchased | (1,220) | (1,025) | (820) | ||
Net proceeds from issuance of preferred stock | 730 | 593 | 0 | ||
Dividends declared and paid to common stockholders | (617) | (471) | (322) | ||
Dividends declared and paid to preferred stockholders | (65) | (14) | (14) | ||
Payments of employee tax withholding for share-based compensation | (21) | (13) | (20) | ||
Net cash provided by financing activities | 1,490 | 6,352 | 1,429 | ||
(Decrease) increase in cash and cash equivalents | (688) | 1,042 | (672) | [1] | |
Cash and cash equivalents at beginning of period | [1] | 4,074 | 3,032 | 3,704 | |
Cash and cash equivalents at end of period | [1] | 3,386 | 4,074 | 3,032 | |
Supplemental disclosures: | |||||
Interest paid | 1,560 | 1,184 | 716 | ||
Income taxes paid | 326 | 241 | 371 | ||
Non-cash items: | |||||
Transfer of securities from available for sale to held to maturity | 192 | 0 | 0 | ||
Transfer of securities from held to maturity to available for sale | 734 | 0 | 0 | ||
Loans securitized and transferred to securities available for sale | 150 | 142 | 134 | ||
Stock issued for share-based compensation plans | 59 | 20 | 22 | ||
Stock issued for Employee Stock Purchase Plan | 17 | 14 | 12 | ||
Due from broker for securities sold but not settled | $ 0 | $ 0 | $ 6 | ||
[1] | Cash and cash equivalents include cash and due from banks and interest-bearing cash and due from banks as reflected on the Consolidated Balance Sheets. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The accounting and reporting policies of Citizens Financial Group, Inc. conform to GAAP. The Company’s principal business activity is banking, conducted through its banking subsidiary Citizens Bank, National Association. The Company also provides M&A, capital raising and other financial advisory services to middle market companies across a focused set of industry verticals through its broker-dealer CCMI. The Consolidated Financial Statements include the accounts of Citizens and subsidiaries in which Citizens has a controlling financial interest. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements to be consolidated as a variable interest entity. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the ACL and the fair value of MSRs. Significant Accounting Policies The following table identifies the Company’s significant accounting policies and the Note and Page where a detailed description of each policy can be found. Note Page Cash and Due From Banks Note 2 102 Securities Note 3 103 Loans and Leases Note 4 107 Allowance for Credit Losses Note 5 109 Premises, Equipment and Software Note 6 120 Mortgage Servicing Rights Note 7 121 Leases Note 8 124 Goodwill Note 9 125 Variable Interest Entities Note 10 127 Derivative Instruments Note 13 132 Employee Benefits Note 14 135 Treasury Stock Note 16 138 Employee Share-Based Compensation Note 17 139 Fair Value Measurement Note 19 142 Revenue Recognition Note 20 148 Income Taxes Note 22 150 Earnings Per Share Note 23 153 Acquisitions On January 1, 2019 , the Company acquired Clarfeld Financial Advisors, LLC (“Clarfeld”), a Tarrytown, New York-based boutique wealth management and financial advisory firm, for total consideration of $110 million . As part of this transaction, the Company expanded its wealth management position with the addition of a robust client base. The Company recognized goodwill of $83 million and other intangibles of $21 million related to the transaction. On March 1, 2019 , the Company acquired certain assets and assumed certain liabilities of Bowstring Advisors, LLC (“Bowstring”), an Atlanta, Georgia-based mergers and acquisitions advisory and capital raising firm, for the consideration of $40 million . As part of this transaction, the Company expanded its mergers and acquisitions advisory position with the addition of a referral network and experienced staff. The Company recognized goodwill of $35 million and other intangibles of $6 million related to the transaction. Accounting Pronouncements Adopted in 2019 Pronouncement Summary of Guidance Effects on Financial Statements Derivatives and Hedging Issued August 2017 • Reduces the complexity and operational burdens of the current hedge accounting model and portrays more clearly the effects of hedge accounting in the financial statements. • Modifies current requirements to facilitate the application of hedge accounting to partial-term hedges, hedges of prepayable financial instruments, and other strategies. Adoption of these optional changes would occur on a prospective basis. • Requires the effects of fair value hedges to be classified in the same income statement line as the earnings effect of the hedged item. Adoption of this change will occur on a prospective basis. • Requires all effects of cash flow hedges to be deferred in other comprehensive income until the hedged cash flows affect earnings. Periodic hedge ineffectiveness will no longer be recognized in earnings. Adoption of this change will occur on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. • The Company adopted the new standard on January 1, 2019 under the modified retrospective method. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. • Required disclosures are included in Note 13. Leases Issued February 2016 • Requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with a lease term of greater than one year. • Requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests. • Requires that for finance leases, a lessee recognize interest expense on the lease liability separately from the amortization of the right-of-use asset in the Consolidated Statements of Operations, while for operating leases, such amounts should be recognized as a combined expense. • Requires expanded disclosures about the nature and terms of lease agreements. • Provides the option to adopt using either a modified cumulative-effect approach wherein the guidance is applied to all periods presented, or through a cumulative-effect adjustment beginning in the period of adoption. • Requires companies with land easements to assess whether the easement meets the definition of a lease before applying other accounting guidance. • The Company adopted the new standard under the modified retrospective approach on January 1, 2019, which is applicable to both its leasing finance business as well as property and equipment leases in which Citizens is lessee. • Adoption resulted in a cumulative-effect adjustment of $12 million, net of taxes, to retained earnings related to leases in which Citizens is lessee. • Adoption resulted in the recognition of a right-of-use asset and corresponding lease liability of $734 million and $749 million, respectively in its Consolidated Balance Sheet for non-cancelable operating lease agreements. • Required lessor disclosures are included in Note 4 and required lessee disclosures are included in Note 8. Implementation Costs Incurred in a Cloud Computing Arrangement Issued August 2018 • Requires implementation costs incurred in a cloud computing arrangement that is a service contract be deferred and recognized over the term of the arrangement if those costs would be capitalized in a software licensing arrangement. • Requires amortization expense be presented in the same income statement line item as the related hosting service arrangement expense. • Permits adoption prospectively for all implementation costs incurred after adoption or retrospectively through a cumulative-effect adjustment as of the beginning of the first period presented. • The Company prospectively adopted the new standard on January 1, 2019. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Accounting Pronouncements Pending Adoption Pronouncement Summary of Guidance Effects on Financial Statements Financial Instruments - Credit Losses Issued June 2016 • Required effective date: January 1, 2020. • Replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost (including securities HTM), which will reflect management’s estimate of credit losses over the full remaining expected life of the financial assets. • Amends existing impairment guidance for securities AFS to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • Requires a cumulative-effect adjustment to retained earnings, net of taxes, as of the beginning of the reporting period of adoption. • Requires enhanced credit quality disclosures including disaggregation of credit quality indicators by vintage. • The Company adopted the new standard on January 1, 2020, retrospectively for loans and leases and HTM securities and prospectively for AFS securities. • To estimate the ACL under CECL, Citizens uses models and other estimation techniques that are sensitive to changes in forecasted economic conditions. The Company applies qualitative factors related to idiosyncratic risk factors, changes in current economic conditions that may not be adequately reflected in quantitatively derived results, or other relevant factors to ensure the ACL reflects the Company’s best estimate of current expected credit losses. • The Company recognized an increase in the ACL upon adoption of approximately $450 million, based on a two-year reasonable and supportable forecast period, and a one-year reversion to long-term historical macroeconomic variables. The increase in ACL is primarily related to consumer loans, such as residential mortgage, unsecured and education, due to the requirement to estimate credit losses over the full remaining expected life of the asset. • Adoption of the new standard could produce higher volatility in the quarterly provision for credit losses than our current reserve process and could adversely impact the Company’s ongoing earnings. • The increase in ACL upon adoption reduced the Company’s CET1 capital ratio by 24 basis points on a fully-phased in basis. This capital impact will be phased in by 25% per year through January 1, 2023, which will impact 2020 by 6 basis points. • Based on the credit quality of our existing debt securities portfolio, the Company did not recognize an ACL for HTM and AFS debt securities upon adoption. |
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND DUE FROM BANKS | NOTE 2 - CASH AND DUE FROM BANKS For the purposes of reporting cash flows, cash and cash equivalents have original maturities of three months or less and include cash and due from banks and interest-bearing cash and due from banks, primarily at the FRB. Citizens maintains certain average reserve balances and compensating balances for check clearing and other services with the FRB. At December 31, 2019 and 2018 , the balance of deposits at the FRB amounted to $2.1 billion and $3.0 billion , respectively. Average balances maintained with the FRB during the years ended December 31, 2019 and 2018 exceeded amounts required by law for the FRB’s requirements. All amounts, both required and excess reserves, held at the FRB currently earn interest at a fixed rate of 155 basis points . Citizens recorded interest income on FRB deposits of $28 million , $28 million , and $16 million for the years ended December 31, 2019 , 2018 , and 2017 |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 3 - SECURITIES Investments include debt and equity securities and other investment securities. Citizens classifies debt securities as AFS, HTM, or trading based on management’s intent to hold to maturity at the time of purchase. Equity securities are recorded at fair value or at cost if there is not a readily determinable fair value. Debt securities that will be held for indefinite periods of time and may be sold in response to changes in interest rates, changes in prepayment risk, or other factors considered in managing the Company’s asset/liability strategy are classified as AFS and reported at fair value, with unrealized gains and losses reported in OCI, net of taxes, as a separate component of stockholders’ equity. Gains and losses on the sales of securities are recognized in noninterest income and are computed using the specific identification method. Debt securities for which the Company has the ability and intent to hold to maturity are classified as HTM and reported at amortized cost. Transfers of debt securities to the HTM classification are recognized at fair value at the date of transfer. For debt securities classified as AFS or HTM, interest income is recorded on the accrual basis including the amortization of premiums and the accretion of discounts. Premiums and discounts on debt securities are amortized or accreted using the effective interest method over the estimated lives of the individual securities. Citizens uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the effective interest method of income recognition. Estimates of future prepayments are based on the underlying collateral characteristics of each security and are derived from market sources. Judgment is involved in making determinations about prepayment expectations and in changing those expectations in response to changes in interest rates and macroeconomic conditions. The amortization of premiums and discounts associated with mortgage-backed securities may be significantly impacted by changes in prepayment assumptions. Securities classified as trading are bought and held principally for selling them in the near term and carried at fair value, with changes in fair value recognized in earnings. When applicable, realized and unrealized gains and losses on such assets are reported in noninterest income in the Consolidated Statements of Operations. Equity securities are primarily composed of FHLB stock and FRB stock (which are carried at cost) and money market mutual fund investments held by the Company’s broker-dealers (which are carried at fair value, with changes in fair value recognized in noninterest income). Equity securities that are carried at cost are reviewed at least annually for impairment, with valuation adjustments recognized in noninterest income. The following table presents the major components of securities at amortized cost and fair value: December 31, 2019 December 31, 2018 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and other $71 $— $— $71 $24 $— $— $24 State and political subdivisions 5 — — 5 5 — — 5 Mortgage-backed securities, at fair value: Federal agencies and U.S. government sponsored entities 19,803 143 (71 ) 19,875 20,211 28 (605 ) 19,634 Other/non-agency 638 24 — 662 236 3 (7 ) 232 Total mortgage-backed securities, at fair value 20,441 167 (71 ) 20,537 20,447 31 (612 ) 19,866 Total debt securities available for sale, at fair value $20,517 $167 ($71 ) $20,613 $20,476 $31 ($612 ) $19,895 Federal agencies and U.S. government sponsored entities $3,202 $45 ($5 ) $3,242 $3,425 $— ($132 ) $3,293 Other/non-agency — — — — 740 8 — 748 Total mortgage-backed securities, at cost 3,202 45 (5 ) 3,242 4,165 8 (132 ) 4,041 Total debt securities held to maturity $3,202 $45 ($5 ) $3,242 $4,165 $8 ($132 ) $4,041 Money market mutual fund investments $47 $— $— $47 $181 $— $— $181 Total equity securities, at fair value $47 $— $— $47 $181 $— $— $181 Federal Reserve Bank stock $577 $— $— $577 $463 $— $— $463 Federal Home Loan Bank stock 222 — — 222 364 — — 364 Other equity securities 8 — — 8 7 — — 7 Total equity securities, at cost $807 $— $— $807 $834 $— $— $834 The following table presents the amortized cost and fair value of debt securities by contractual maturity as of December 31, 2019 . Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties. Distribution of Maturities (in millions) 1 Year or Less 1-5 Years 5-10 Years After 10 Years Total Amortized cost: U.S. Treasury and other $71 $— $— $— $71 State and political subdivisions — — — 5 5 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 215 1,534 18,054 19,803 Other/non-agency — — — 638 638 Total debt securities available for sale 71 215 1,534 18,697 20,517 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,202 3,202 Other/non-agency — — — — — Total debt securities held to maturity — — — 3,202 3,202 Total amortized cost of debt securities $71 $215 $1,534 $21,899 $23,719 Fair value: U.S. Treasury and other $71 $— $— $— $71 State and political subdivisions — — — 5 5 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 217 1,553 18,105 19,875 Other/non-agency — — — 662 662 Total debt securities available for sale 71 217 1,553 18,772 20,613 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,242 3,242 Total debt securities held to maturity — — — 3,242 3,242 Total fair value of debt securities $71 $217 $1,553 $22,014 $23,855 Taxable interest income from investment securities as presented on the Consolidated Statements of Operations was $642 million , $672 million and $625 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The following table presents realized gains and losses on securities: Year Ended December 31, (in millions) 2019 2018 2017 Gains on sale of debt securities (1) $41 $19 $11 Losses on sale of debt securities (16 ) — — Debt securities gains, net $25 $19 $11 Equity securities gains $— $— $1 (1) For the year ended December 31, 2019 , $6 million of gains on sale of debt securities were recognized in mortgage banking fees in the Consolidated Statements of Operations, as they related to AFS securities held as economic hedges of the value of the MSR portfolio recognized using the amortization method. The following table presents the amortized cost and fair value of debt securities pledged: December 31, 2019 December 31, 2018 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $265 $266 $344 $338 Pledged against FHLB borrowed funds 638 662 745 752 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,670 3,672 3,592 3,460 Citizens regularly enters into security repurchase agreements with unrelated counterparties, which involve the transfer of a security from one party to another, and a subsequent transfer of substantially the same security back to the original party. The Company’s repurchase agreements are typically short-term in nature and are accounted for as secured borrowed funds on the Company’s Consolidated Balance Sheets. Citizens recognized no offsetting of short-term receivables or payables as of December 31, 2019 or 2018 . Citizens offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information see Note 13 . Securitizations of mortgage loans retained in the investment portfolio for the years ended December 31, 2019 , 2018 and 2017 , were $150 million , $142 million and $134 million , respectively. These securitizations include a substantive guarantee by a third party. In 2019 , 2018 and 2017 the guarantors were FNMA, FHLMC, and GNMA. The debt securities received from the guarantors are classified as AFS. Impairment Citizens reviews its securities for other-than-temporary impairment on a quarterly basis or more frequently if a potential loss triggering event occurs. The initial indicator of other-than-temporary impairment for both debt and equity securities is a decline in fair value below its recorded investment amount, as well as the severity and duration of the decline. For a security that has declined in fair value below the cost basis, the Company recognizes other-than-temporary impairment if management has the intent to sell the security, it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis, or the Company does not expect to recover the entire cost basis of the security. Estimating the recovery of the amortized cost basis of a debt security is based upon an assessment of the cash flows expected to be collected. If the present value of cash flows expected to be collected, discounted at the security’s original effective yield, exceeds the amortized cost, no credit impairment has occurred. If this amount is less than the amortized cost, other-than-temporary impairment is considered to have occurred. In addition to these cash flow projections, several other characteristics of each debt security are reviewed when determining whether a credit loss exists and the period over which the debt security is expected to recover. These characteristics include: (i) the type of investment, (ii) various market factors affecting the fair value of the security (e.g., interest rates, spread levels, liquidity in the sector, etc.), (iii) the length and severity of impairment, and (iv) the public credit rating of the instrument. Citizens estimates the portion of loss attributable to credit using a collateral loss model and integrated cash flow engine. The model calculates prepayment, default and loss severity assumptions using collateral performance data. These assumptions are used to produce cash flows that generate loss projections. These loss projections are reviewed on a quarterly basis by a cross-functional governance committee to determine whether security impairments are other-than-temporary. If the Company intends to sell an impaired security, or if it is more likely than not Citizens will be required to sell the security before recovery, the impairment loss recognized in current period earnings equals the difference between the amortized cost basis and the fair value of the security. If the Company does not intend to sell the impaired security, and it is not likely that the Company will be required to sell the impaired security, the other-than-temporary impairment write-down is separated into an amount representing the credit loss, which is recognized in current period earnings and the amount related to all other factors, which is recognized in OCI. The following table presents the net securities impairment losses recognized in earnings: Year Ended December 31, (in millions) 2019 2018 2017 Other-than-temporary impairment: Total other-than-temporary impairment losses ($2 ) ($7 ) ($7 ) Portions of loss recognized in other comprehensive income (before taxes) — 4 — Net securities impairment losses recognized in earnings on debt securities ($2 ) ($3 ) ($7 ) The following tables present mortgage-backed debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position: December 31, 2019 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities 106 $5,135 ($24 ) 120 $3,748 ($52 ) 226 $8,883 ($76 ) Other/non-agency — — — — — — — — — Total 106 $5,135 ($24 ) 120 $3,748 ($52 ) 226 $8,883 ($76 ) December 31, 2018 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities 166 $4,881 ($89 ) 429 $15,124 ($648 ) 595 $20,005 ($737 ) Other/non-agency 10 139 (1 ) 11 72 (6 ) 21 211 (7 ) Total 176 $5,020 ($90 ) 440 $15,196 ($654 ) 616 $20,216 ($744 ) |
LOANS AND LEASES
LOANS AND LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
LOANS AND LEASES | NOTE 4 - LOANS AND LEASES Loans held for investment are reported at the amount of their outstanding principal, net of charge-offs, unearned income, deferred loan origination fees and costs, and unamortized premiums or discounts on purchased loans. Deferred loan origination fees and costs and purchase premiums and discounts are amortized as an adjustment of yield over the life of the loan, using the effective interest method. Unamortized amounts remaining upon prepayment or sale are recorded as interest income or gain (loss) on sale, respectively. Credit card receivables include billed and uncollected interest and fees. Interest income on loans is determined using the effective interest method. This method calculates periodic interest income at a constant effective yield on the net investment in the loan, to provide a constant rate of return over the term. Loans accounted for using the fair value option are measured at fair value with corresponding changes recognized in noninterest income. Loan commitment fees for loans that are likely to be drawn down, and other credit related fees, are deferred (together with any incremental costs) and recognized as an adjustment to the effective interest rate over the loan term. When it is unlikely that a loan will be drawn down, the loan commitment fees are recognized over the commitment period on a straight-line basis. Loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, education, credit cards and other retail. The following table presents the composition of loans and leases: December 31, (in millions) 2019 2018 Commercial (1) $41,479 $40,857 Commercial real estate 13,522 13,023 Leases 2,537 2,903 Total commercial loans and leases 57,538 56,783 Residential mortgages (2) 19,083 18,978 Home equity loans 812 1,073 Home equity lines of credit 11,979 12,710 Home equity loans serviced by others 289 399 Home equity lines of credit serviced by others 74 104 Automobile 12,120 12,106 Education 10,347 8,900 Credit cards 2,198 1,991 Other retail 4,648 3,616 Total retail loans 61,550 59,877 Total loans and leases (3) $119,088 $116,660 (1) SBA loans the Company services for others of $33 million are not included above. These loans represent the government guaranteed portion of SBA loans sold to outside investors as of December 31, 2019 . There were no SBA loans serviced for others as of December 31, 2018 . (2) Mortgage loans the Company services for others of $77.5 billion and $69.6 billion at December 31, 2019 and 2018, respectively, are not included above. (3) LHFS totaling $3.3 billion and $1.3 billion at December 31, 2019 and 2018, respectively, are not included above. The following table presents the composition of LHFS. December 31, 2019 December 31, 2018 (in millions) Residential Mortgages Commercial Total Residential Mortgages Commercial Total Loans held for sale at fair value (1) $1,778 $168 $1,946 $967 $252 $1,219 Other loans held for sale (2) 1,101 283 1,384 — 101 101 (1) Residential mortgage LHFS at fair value are originated for sale. Commercial LHFS at fair value consist of loans managed by the Company’s commercial secondary loan desk. (2) Residential mortgages other LHFS of $1.1 billion as of December 31, 2019 comprised of two loan portfolio pools of $524 million and $575 million representing loan sales expected to settle in first quarter 2020. Commercial other LHFS generally consist of commercial loans associated with the Company’s syndication business. During the year ended December 31, 2019 the Company purchased $1.1 billion of education loans and $530 million of other loans. During the year ended December 31, 2018 , the Company purchased $457 million of education loans. During the year ended December 31, 2019 , the Company sold $454 million of commercial loans and $628 million of retail loans, including $22 million of TDR sales. During the year ended December 31, 2018 , the Company sold $553 million of commercial loans. Loans pledged as collateral for FHLB borrowed funds, primarily residential mortgages and home equity loans, totaled $25.3 billion and $25.6 billion at December 31, 2019 and 2018 , respectively. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, were primarily comprised of auto, commercial and commercial real estate loans, and totaled $17.4 billion and $16.8 billion at December 31, 2019 and 2018 , respectively. Citizens is engaged in the leasing of equipment for commercial use, primarily focused on middle market and mid-corporate clients for large capital equipment acquisitions including aircraft and railcars, among other equipment. The Company determines if an arrangement is a lease and the related lease classification at inception. Lease terms predominantly range from three years to seven years and may include options to terminate the lease early or purchase the leased property prior to the end of the lease term. The Company does not have lease agreements which contain lease and nonlease components. A lessee is evaluated from a credit perspective using the same underwriting standards and procedures as for a loan borrower. A lessee is expected to make rental payments based on its cash flows and the viability of its operations. Leases are usually not evaluated as collateral-based transactions, and therefore the lessee’s overall financial strength is the most important credit evaluation factor. The components of the net investment in direct finance and sales-type leases, before ALLL, are presented below: (in millions) December 31, 2019 Total future minimum lease rentals $1,739 Estimated residual value of leased equipment (non-guaranteed) 1,013 Initial direct costs 10 Unearned income (225 ) Total leases $2,537 Interest income on direct financing and sales-type leases for the year ended December 31, 2019 was $77 million and is reported within interest and fees on loans and leases in the Consolidated Statements of Operations. A maturity analysis of direct financing and sales-type lease receivables at December 31, 2019 is presented below: (in millions) 2020 $496 2021 385 2022 288 2023 220 2024 145 Thereafter 205 Total undiscounted future minimum lease rentals $1,739 |
ALLOWANCE FOR CREDIT LOSSES, NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | NOTE 5 - ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK Allowance for Credit Losses Management’s estimate of probable losses in the Company’s loan and lease portfolios is recorded in the ALLL and the reserve for unfunded lending commitments, collectively the ACL. On a quarterly basis, Citizens evaluates the adequacy of the ALLL by performing reviews of certain individual loans and leases, analyzing changes in the composition, size and delinquency of the portfolio, reviewing previous loss experience and considering current and anticipated economic factors. The ALLL is established in accordance with the Company’s credit reserve policies, as approved by the Audit Committee of the Board of Directors. The Chief Financial Officer and Chief Risk Officer review the adequacy of the ALLL each quarter, together with risk management. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. The ALLL is maintained at a level that management considers reflective of probable losses, and is established through charges to earnings in the form of a provision for credit losses. The Company’s methodology for determining the qualitative component includes a statistical analysis of prior charge-off rates and a qualitative assessment of factors affecting the determination of incurred losses in the loan and lease portfolio. Such factors include trends in economic conditions, loan growth, back testing results, credit underwriting policy exceptions, regulatory and audit findings, and peer comparisons. Amounts determined to be uncollectible are deducted from the ALLL and subsequent recoveries, if any, are added to the ALLL. While management uses available information to estimate loan and lease losses, future additions to the ALLL may be necessary based on changes in economic conditions. There were no material changes in assumptions or estimation techniques compared with prior years that impacted the determination of the current year’s ALLL and the reserve for unfunded lending commitments. The evaluation of the adequacy of the commercial, commercial real estate, and leases ALLL and reserve for unfunded lending commitments is primarily based on risk rating models that assess probability of default, loss given default and exposure at default on an individual loan basis. The models are primarily driven by individual customer financial characteristics and are validated against historical experience. Additionally, qualitative factors are included in the risk rating models. After the aggregation of individual borrower incurred loss, additional overlays can be made based on back-testing against historical losses. For non-impaired retail loans, the ALLL is based upon an incurred loss model utilizing the probability of default, loss given default and exposure at default on an individual loan basis. When developing these factors, the Company may consider the loan product and collateral type, delinquency status, LTV ratio, lien position, borrower’s credit, age of the loan, geographic location and incurred loss period. Certain retail portfolios, including education, unsecured personal loans, SBO home equity loans and commercial credit card receivables utilize roll rate or vintage models to estimate the ALLL. For nonaccruing commercial and commercial real estate loans with an outstanding balance of $3 million or greater and for all commercial and commercial real estate TDRs (regardless of size), the Company conducts further analysis to determine the probable amount of loss and establishes a specific allowance for the loan, if appropriate. Citizens estimates the impairment amount by comparing the loan’s carrying amount to the estimated present value of its future cash flows, the fair value of its underlying collateral, or the loan’s observable market price. For collateral-dependent impaired commercial and commercial real estate loans, the excess of the Company’s recorded investment in the loan over the fair value of the collateral, less cost to sell, is charged off to the ALLL. For retail TDRs that are not collateral-dependent, allowances are developed using the present value of expected future cash flows compared to the recorded investment in the loans. Expected re-default factors are considered in this analysis. Retail TDRs that are deemed collateral-dependent are written down to fair market value less cost to sell. The fair value of collateral is periodically monitored subsequent to the modification. In addition to the ALLL, the Company also estimates probable credit losses associated with off-balance sheet financial instruments such as standby letters of credit, financial guarantees and binding unfunded loan commitments. Off-balance sheet financial instruments are subject to individual reviews and are analyzed and segregated by risk according to the Company’s internal risk rating scale. These risk classifications, in conjunction with historical loss experience, economic conditions and performance trends within specific portfolio segments, result in the estimate of the reserve for unfunded lending commitments. The ALLL and the reserve for unfunded lending commitments are reported on the Consolidated Balance Sheets in the allowance for loan and lease losses and in other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Operations as provision for credit losses. Loan Charge-Offs Commercial loans are charged off when it is highly certain that a loss has been realized, including situations where a loan is determined to be both impaired and collateral-dependent. The determination of whether to recognize a charge-off involves many factors, including the prioritization of the Company’s claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity or the loan collateral. A loan is considered to be collateral-dependent when repayment of the loan is expected to be provided solely by the underlying collateral, rather than by cash flows from the borrower’s operations, income or other resources. Retail loans are generally fully charged-off or written down to the net realizable value of the underlying collateral, with an offset to the ALLL, upon reaching specified stages of delinquency in accordance with standards established by the FFIEC. Residential real estate loans, credit card loans and unsecured open end loans are generally charged off in the month in which the account becomes 180 days past due. Auto loans, education loans and unsecured closed end loans are generally charged off in the month in which the account becomes 120 days past due. Certain retail loans will be charged off or charged down to their net realizable value earlier than the FFIEC charge-off standards in the following circumstances: • Loans modified in a TDR that are determined to be collateral-dependent. • Loans to borrowers who have experienced an event (e.g., bankruptcy) that suggests a loss is either known or highly certain. ◦ Residential real estate and auto loans are charged down to the net realizable value within 60 days of receiving notification of the bankruptcy filing, or when the loan becomes 60 days past due if repayment is likely to occur. ◦ Credit card loans are fully charged off within 60 days of receiving notification of the bankruptcy filing or other event. ◦ Education loans are generally charged off when the loan becomes 60 days past due after receiving notification of a bankruptcy. • Auto loans are written down to net realizable value upon repossession of the collateral. The following tables present a summary of changes in the ACL: Year Ended December 31, 2019 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $690 $552 $1,242 Charge-offs (140 ) (475 ) (615 ) Recoveries 24 161 185 Net charge-offs (116 ) (314 ) (430 ) Provision charged to income 100 340 440 Allowance for loan and lease losses, end of period 674 578 1,252 Reserve for unfunded lending commitments, beginning of period 91 — 91 Provision for unfunded lending commitments (47 ) — (47 ) Reserve for unfunded lending commitments, end of period 44 — 44 Total allowance for credit losses, end of period $718 $578 $1,296 Year Ended December 31, 2018 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $685 $551 $1,236 Charge-offs (52 ) (442 ) (494 ) Recoveries 19 158 177 Net charge-offs (33 ) (284 ) (317 ) Provision charged to income 38 285 323 Allowance for loan and lease losses, end of period 690 552 1,242 Reserve for unfunded lending commitments, beginning of period 88 — 88 Provision for unfunded lending commitments 3 — 3 Reserve for unfunded lending commitments, end of period 91 — 91 Total allowance for credit losses, end of period $781 $552 $1,333 Year Ended December 31, 2017 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $663 $573 $1,236 Charge-offs (75 ) (437 ) (512 ) Recoveries 40 167 207 Net charge-offs (35 ) (270 ) (305 ) Provision charged to income (1) 57 248 305 Allowance for loan and lease losses, end of period 685 551 1,236 Reserve for unfunded lending commitments, beginning of period 72 — 72 Provision for unfunded lending commitments 16 — 16 Reserve for unfunded lending commitments, end of period 88 — 88 Total allowance for credit losses, end of period $773 $551 $1,324 (1) Includes an increase of approximately $50 million to commercial and corresponding decrease to retail for the impact of the enhancement to the assessment of qualitative risks, factors and events that may not be measured in the modeled results. The following table presents the recorded investment in loans and leases based on the Company’s evaluation methodology: December 31, 2019 December 31, 2018 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $399 $667 $1,066 $391 $723 $1,114 Formula-based evaluation 57,139 60,883 118,022 56,392 59,154 115,546 Total loans and leases $57,538 $61,550 $119,088 $56,783 $59,877 $116,660 The following table presents a summary of the ACL by evaluation methodology: December 31, 2019 December 31, 2018 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $85 $25 $110 $38 $26 $64 Formula-based evaluation 633 553 1,186 743 526 1,269 Allowance for credit losses $718 $578 $1,296 $781 $552 $1,333 For commercial loans and leases, Citizens utilizes regulatory classification ratings to monitor credit quality. Loans with a “pass” rating are those that the Company believes will be fully repaid in accordance with the contractual loan terms. Commercial loans and leases that are “criticized” are those that have some weakness, or potential weakness, that indicate an increased probability of future loss. “Criticized” loans are grouped into three categories, “special mention,” “substandard” and “doubtful.” Special mention loans have potential weaknesses that, if left uncorrected, may result in deterioration of the Company’s credit position at some future date. Substandard loans are inadequately protected loans; these loans have well-defined weaknesses that could hinder normal repayment or collection of the debt. Doubtful loans have the same weaknesses as substandard, with the added characteristics that the possibility of loss is high and collection of the full amount of the loan is improbable. For retail loans, the Company primarily uses the loan’s payment and delinquency status to monitor credit quality. The further a loan is past due, the greater the likelihood of future credit loss. These credit quality indicators for both commercial and retail loans are continually updated and monitored. The following tables present the recorded investment in commercial loans and leases based on regulatory classification ratings: December 31, 2019 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $38,950 $1,351 $934 $244 $41,479 Commercial real estate 13,169 318 33 2 13,522 Leases 2,383 109 42 3 2,537 Total commercial loans and leases $54,502 $1,778 $1,009 $249 $57,538 December 31, 2018 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $38,600 $1,231 $828 $198 $40,857 Commercial real estate 12,523 412 82 6 13,023 Leases 2,823 39 41 — 2,903 Total commercial loans and leases $53,946 $1,682 $951 $204 $56,783 The following tables present the recorded investment in classes of retail loans, categorized by delinquency status: December 31, 2019 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $18,818 $129 $35 $17 $84 $19,083 Home equity loans 713 64 10 4 21 812 Home equity lines of credit 11,383 346 72 32 146 11,979 Home equity loans serviced by others 244 23 7 3 12 289 Home equity lines of credit serviced by others 50 11 2 1 10 74 Automobile 10,787 1,001 227 81 24 12,120 Education 10,088 202 30 15 12 10,347 Credit cards 2,076 74 15 11 22 2,198 Other retail 4,492 87 30 20 19 4,648 Total retail loans $58,651 $1,937 $428 $184 $350 $61,550 December 31, 2018 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $18,664 $131 $37 $13 $133 $18,978 Home equity loans 945 75 12 3 38 1,073 Home equity lines of credit 12,042 386 65 22 195 12,710 Home equity loans serviced by others 355 21 7 3 13 399 Home equity lines of credit serviced by others 79 15 2 1 7 104 Automobile 10,729 1,039 207 59 72 12,106 Education 8,694 159 23 13 11 8,900 Credit cards 1,894 53 14 10 20 1,991 Other retail 3,481 76 26 18 15 3,616 Total retail loans $56,883 $1,955 $393 $142 $504 $59,877 Nonperforming Assets Nonperforming loans and leases are those on which accrual of interest has been suspended. Loans (other than certain retail loans insured by U.S. government agencies) are placed on nonaccrual status and considered nonperforming when full payment of principal and interest is in doubt, unless the loan is both well secured and in the process of collection. When the Company places a loan on nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and amortization of any net deferred fees is suspended. Interest collections on nonaccruing loans and leases for which the ultimate collectability of principal is uncertain are generally applied to first reduce the carrying value of the asset. Otherwise, interest income may be recognized to the extent of the cash received. A loan or lease may be returned to accrual status if (i) principal and interest payments have been brought current, and the Company expects repayment of the remaining contractual principal and interest, (ii) the loan or lease has otherwise become well-secured and in the process of collection, or (iii) the borrower has been making regularly scheduled payments in full for the prior six months and the Company is reasonably assured that the loan or lease will be brought fully current within a reasonable period. Commercial loans, commercial real estate loans, and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Some of these loans and leases may remain on accrual status when contractually past due 90 days or more if management considers the loan collectible. Residential mortgages are generally placed on nonaccrual status when past due 120 days, or sooner if determined to be collateral-dependent, unless repayment of the loan is guaranteed by the Federal Housing Administration. Credit card balances are placed on nonaccrual status when past due 90 days or more and are restored to accruing status if they subsequently become less than 90 days past due. All other retail loans are generally placed on nonaccrual status when past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Loans less than 90 days past due may be placed on nonaccrual status upon the death of the borrower, fraud or bankruptcy. The following table presents nonperforming loans and leases and loans accruing and 90 days or more past due: Nonperforming (1)(2) Accruing and 90 days or more past due (in millions) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Commercial $240 $194 $2 $1 Commercial real estate 2 7 — — Leases 3 — — — Total commercial loans and leases 245 201 2 1 Residential mortgages 93 105 13 15 Home equity loans 33 50 — — Home equity lines of credit 187 231 — — Home equity loans serviced by others 14 17 — — Home equity lines of credit serviced by others 12 15 — — Automobile 67 81 — — Education 18 38 2 2 Credit card 22 20 — — Other retail 12 8 8 7 Total retail loans 458 565 23 24 Total $703 $766 $25 $25 (1) Nonperforming balances exclude first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration. These loans are included in the Company’s Consolidated Balance Sheets. (2) Beginning in the fourth quarter of 2019, nonperforming balances exclude both fully and partially guaranteed residential mortgage loans sold to Ginnie Mae for which the Company has the right, but not the obligation, to repurchase. Prior periods have been adjusted to exclude partially guaranteed amounts to conform with the current period presentation. These loans are included in the Company’s Consolidated Balance Sheets. Other nonperforming assets primarily consist of other real estate owned and are presented in other assets on the Consolidated Balance Sheets. Other real estate owned, net of valuation allowance, was $45 million and $34 million as of December 31, 2019 and 2018 , respectively. The following table presents a summary of nonperforming loan and lease key performance indicators: December 31, 2019 2018 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.21 % 0.17 % Nonperforming retail loans as a percentage of total loans and leases 0.38 0.49 Total nonperforming loans and leases as a percentage of total loans and leases (1) 0.59 % 0.66 % Nonperforming commercial assets as a percentage of total assets 0.15 % 0.13 % Nonperforming retail assets as a percentage of total assets 0.30 0.37 Total nonperforming assets as a percentage of total assets 0.45 % 0.50 % (1) Beginning in the fourth quarter of 2019, nonperforming balances exclude both fully and partially guaranteed residential mortgage loans sold to Ginnie Mae for which the Company has the right, but not the obligation, to repurchase. Prior periods have been adjusted to exclude partially guaranteed amounts to conform with the current period presentation. These loans are included in the Company’s Consolidated Balance Sheets. The recorded investment in mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings were in-process was $152 million and $172 million as of December 31, 2019 and 2018 , respectively. The following table presents the aging of both accruing and nonaccruing loan and lease past due amounts: December 31, 2019 December 31, 2018 Days Past Due Days Past Due (in millions) 30-59 60-89 90 or More Total 30-59 60-89 90 or More Total Commercial $45 $27 $67 $139 $85 $3 $78 $166 Commercial real estate 1 1 — 2 8 32 5 45 Leases 37 — 2 39 7 — — 7 Total commercial loans and leases 83 28 69 180 100 35 83 218 Residential mortgages 35 17 84 136 37 13 133 183 Home equity loans 10 4 21 35 12 3 38 53 Home equity lines of credit 72 32 146 250 65 22 195 282 Home equity loans serviced by others 7 3 12 22 7 3 13 23 Home equity lines of credit serviced by others 2 1 10 13 2 1 7 10 Automobile 227 81 24 332 207 59 72 338 Education 30 15 12 57 23 13 11 47 Credit cards 15 11 22 48 14 10 20 44 Other retail 30 20 19 69 26 18 15 59 Total retail loans 428 184 350 962 393 142 504 1,039 Total $511 $212 $419 $1,142 $493 $177 $587 $1,257 Impaired Loans A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all of the contractual interest and principal payments as scheduled in the loan agreement. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. Impaired loans include nonaccruing larger balance (greater than $3 million carrying value), non-homogeneous commercial and commercial real estate loans, and restructured loans that are deemed TDRs. When a loan is identified as impaired, the impairment is measured on an individual loan level as the difference between the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount) and the present value of expected future cash flows, discounted at the loan’s effective interest rate. When collateral is the sole source of repayment for the impaired loan, rather than the borrower’s income or other sources of repayment, the Company charges down the loan to its net realizable value. The following tables present a summary of impaired loans by class: December 31, 2019 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $243 $85 $137 $458 $380 Commercial real estate — — 19 19 19 Total commercial loans 243 85 156 477 399 Residential mortgages 29 2 125 196 154 Home equity loans 22 1 65 121 87 Home equity lines of credit 27 2 173 242 200 Home equity loans serviced by others 15 1 16 41 31 Home equity lines of credit serviced by others 1 — 5 9 6 Automobile 1 — 20 30 21 Education 112 9 22 135 134 Credit cards 27 9 1 29 28 Other retail 3 1 3 8 6 Total retail loans 237 25 430 811 667 Total $480 $110 $586 $1,288 $1,066 December 31, 2018 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $186 $31 $167 $450 $353 Commercial real estate 32 7 6 38 38 Total commercial loans 218 38 173 488 391 Residential mortgages 28 2 127 201 155 Home equity loans 34 3 76 148 110 Home equity lines of credit 21 1 181 244 202 Home equity loans serviced by others 22 1 19 54 41 Home equity lines of credit serviced by others 1 — 7 11 8 Automobile 1 — 22 31 23 Education 130 11 23 153 153 Credit cards 24 7 1 25 25 Other retail 4 1 2 8 6 Total retail loans 265 26 458 875 723 Total $483 $64 $631 $1,363 $1,114 The following table presents additional information on impaired loans: Year Ended December 31, 2019 2018 2017 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $11 $311 $9 $312 $4 $380 Commercial real estate 1 39 1 32 — 37 Total commercial loans 12 350 10 344 4 417 Residential mortgages 5 126 5 146 4 136 Home equity loans 5 84 6 107 6 121 Home equity lines of credit 7 172 7 181 6 176 Home equity loans serviced by others 2 30 3 42 3 49 Home equity lines of credit serviced by others — 6 — 9 — 9 Automobile 1 17 1 20 1 18 Education 8 125 8 154 9 173 Credit cards 2 21 1 21 2 22 Other retail — 5 — 7 — 9 Total retail loans 30 586 31 687 31 713 Total $42 $936 $41 $1,031 $35 $1,130 Troubled Debt Restructurings In situations where, for economic or legal reasons related to the borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. TDRs typically result from the Company’s loss mitigation efforts and are undertaken in order to improve the likelihood of recovery and continuity of the relationship with the borrower. The Company’s loan modifications are handled on a case-by-case basis and are negotiated to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. Concessions granted in TDRs for all classes of loans may include lowering the interest rate, forgiving a portion of principal, extending the loan term, lowering scheduled payments for a specified period of time, waiving or delaying a scheduled payment of principal or interest for other than an insignificant time period, or capitalizing past due amounts. A rate increase can be a concession if the increased rate is lower than a market rate for debt with risk similar to that of the restructured loan. TDRs for commercial loans may also involve creating a multiple note structure, accepting non-cash assets, accepting an equity interest, or receiving a performance-based fee. In some cases, a TDR may involve multiple concessions. The financial effects of TDRs for all loan classes may include lower income (either due to a lower interest rate or a delay in the timing of cash flows), larger loan loss provisions, and accelerated charge-offs if the modification renders the loan collateral-dependent. In some cases, interest income throughout the term of the loan may increase if, for example, the loan is extended or the interest rate is increased as a result of the restructuring. Retail and commercial loans whose contractual terms have been modified in a TDR and are current at the time of restructuring may remain on accrual status if there is demonstrated performance prior to the restructuring and payment in full under the restructured terms is expected. Retail loans that were discharged in bankruptcy and not reaffirmed by the borrower are deemed to be collateral-dependent TDRs and are generally charged off to the fair value of the collateral, less cost to sell, and less amounts recoverable under a government guarantee (if any). Cash receipts on nonaccruing impaired loans, including nonaccruing loans involved in TDRs, are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on these loans may be recognized on a cash basis if management believes that the remaining book value of the loan is realizable. Nonaccruing TDRs that meet the guidelines above for accrual status can be returned to accruing if supported by a well-documented evaluation of the borrowers’ financial condition, and if they have been current for at least six months. Because TDRs are impaired loans, Citizens measures impairment by comparing the present value of expected future cash flows, or when appropriate, the fair value of collateral less costs to sell, to the loan’s recorded investment. Any excess of recorded investment over the present value of expected future cash flows or collateral value is included in the ALLL. Any portion of the loan’s recorded investment the Company does not expect to collect as a result of the modification is charged off at the time of modification. For retail TDR accounts where the expected value of cash flows is utilized, any recorded investment in excess of the present value of expected cash flows is recognized by increasing the ALLL. For retail TDR accounts assessed based on the fair value of collateral, any portion of the loan’s recorded investment in excess of the collateral value less costs to sell is charged off at the time of modification or at the time of subsequent and regularly recurring valuations. The following table summarizes TDRs by class and total unfunded commitments: December 31, (in millions) 2019 2018 Commercial $297 $304 Retail 667 723 Unfunded commitments related to TDRs 42 30 The following tables summarize how loans were modified during the years ended December 31, 2019 , 2018 and 2017 . The reported balances represent the post-modification outstanding recorded investment and can include loans that became TDRs during the period and were paid off in full, charged off, or sold prior to period end. Pre-modification balances for modified loans approximate the post-modification balances shown. December 31, 2019 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 3 $— 26 $5 56 $210 Commercial real estate — — 1 — — — Total commercial loans 3 — 27 5 56 210 Residential mortgages 60 12 62 10 120 17 Home equity loans 31 2 — — 82 4 Home equity lines of credit 163 18 72 11 350 22 Home equity loans serviced by others 2 — — — 14 — Home equity lines of credit serviced by others — — — — 8 — Automobile 160 3 21 — 1,250 17 Education — — — — 272 7 Credit cards 3,259 18 — — 304 1 Other retail — — — — 176 1 Total retail loans 3,675 53 155 21 2,576 69 Total 3,678 $53 182 $26 2,632 $279 December 31, 2018 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 7 $1 49 $22 53 $200 Commercial real estate — — 3 31 2 31 Total commercial loans 7 1 52 53 55 231 Residential mortgages 35 4 61 8 142 17 Home equity loans 43 4 1 — 134 5 Home equity lines of credit 76 7 178 26 413 29 Home equity loans serviced by others 4 — — — 23 1 Home equity lines of credit serviced by others 5 — 1 — 14 1 Automobile 158 3 46 1 1,189 17 Education — — — — 355 7 Credit cards 2,312 13 — — — — Other retail 1 — — — 9 — Total retail loans 2,634 31 287 35 2,279 77 Total 2,641 $32 339 $88 2,334 $308 December 31, 2017 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 7 $1 45 $22 15 $71 Commercial real estate — — 1 — 1 — Total commercial loans 7 1 46 22 16 71 Residential mortgages 71 10 73 13 171 19 Home equity loans 82 6 1 — 232 13 Home equity lines of credit 50 3 235 30 395 27 Home equity loans serviced by others 15 1 — — 52 2 Home equity lines of credit serviced by others 5 — 2 — 26 2 Automobile 130 2 29 1 1,336 20 Education — — — — 329 7 Credit cards 2,363 13 — — — — Other retail 1 — — — 5 — Total retail loans 2,717 35 340 44 2,546 90 Total 2,724 $36 386 $66 2,562 $161 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. The net change to ALLL resulting from modifications of loans for the years ended December 31, 2019 , 2018 and 2017 was $9 million , $3 million and $1 million , respectively. Charge-offs may also be recorded on TDRs. Citizens recorded charge-offs resulting from the modification of loans of $7 million for the year ended December 31, 2019 and $5 million for the years ended December 31, 2018 and 2017 . A payment default refers to a loan that becomes 90 days or more past due under the modified terms. Loan data includes loans meeting the criteria that were paid off in full, charged off, or sold prior to December 31, 2019 , 2018 and 2017 . For commercial loans, recorded investment in TDRs that defaulted within 12 months of their modification date for the years ended December 31, 2019 , 2018 and 2017 were $1 million , $63 million and $9 million , respectively. For retail loans, there were $37 million , $40 million and $41 million of loans which defaulted within 12 months of their restructuring date for the years ended December 31, 2019 , 2018 and 2017 , respectively. Concentrations of Credit Risk Most of the Company’s lending activity is with customers located in the New England, Mid-Atlantic and Midwest regions. Generally, loans are collateralized by assets including real estate, inventory, accounts receivable, other personal property and investment securities. As of December 31, 2019 and 2018 , |
PREMISES, EQUIPMENT, AND SOFTWA
PREMISES, EQUIPMENT, AND SOFTWARE | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PREMISES, EQUIPMENT, AND SOFTWARE | NOTE 6 - PREMISES, EQUIPMENT AND SOFTWARE Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization have been computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the life of the lease (including renewal options if exercise of those options is reasonably assured) or their estimated useful life, whichever is shorter. Additions to premises and equipment are recorded at cost. The cost of major additions, improvements and betterments is capitalized. Normal repairs and maintenance and other costs that do not improve the property, extend the useful life or otherwise do not meet capitalization criteria are charged to expense as incurred. Citizens evaluates premises and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. A summary of the carrying value of premises and equipment is presented below: December 31, (dollars in millions) Useful Lives (years) 2019 2018 Land and land improvements 10 - 75 $102 $112 Buildings and leasehold improvements 5 - 60 848 852 Furniture, fixtures and equipment 5 - 20 535 1,019 Construction in progress 368 292 Total premises and equipment, gross 1,853 2,275 Accumulated depreciation (1,092 ) (1,484 ) Total premises and equipment, net $761 $791 Depreciation charged to noninterest expense totaled $116 million , $117 million , and $124 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively, and is presented in the Consolidated Statements of Operations in both occupancy and equipment expense. Software Costs related to computer software developed or obtained for internal use are capitalized if the projects improve functionality and provide long-term future operational benefits. Capitalized costs are amortized using the straight-line method over the asset’s expected useful life, based upon the basic pattern of consumption and economic benefits provided by the asset. Citizens begins to amortize the software when the asset (or identifiable component of the asset) is substantially complete and ready for its intended use. All other costs incurred in connection with an internal-use software project are expensed as incurred. Capitalized software is included in other assets on the Consolidated Balance Sheets. Citizens had capitalized software assets of $2.0 billion and $1.8 billion and related accumulated amortization of $1.1 billion and $948 million as of December 31, 2019 and 2018 , respectively. Amortization expense was $194 million , $189 million , and $180 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. The estimated future amortization expense for capitalized software assets is presented below: Year (in millions) 2020 $175 2021 136 2022 102 2023 73 2024 46 Thereafter 62 Total (1) $594 (1) Excluded from this balance is $296 million of in-process software at December 31, 2019 . |
MORTGAGE BANKING
MORTGAGE BANKING | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Banking [Abstract] | |
MORTGAGE BANKING | NOTE 7 - MORTGAGE BANKING The Company sells residential mortgages to GSEs and other parties, who may issue securities backed by pools of such loans. The Company retains no beneficial interests in these sales, but may retain the servicing rights for the loans sold. The Company is obligated to subsequently repurchase a loan if the purchaser discovers a representation or warranty violation such as noncompliance with eligibility or servicing requirements, or customer fraud, that should have been identified in a loan file review. Mortgage loans held for sale are accounted for at fair value on an individual loan basis. Changes in the fair value, and realized gains and losses on the sales of mortgage loans, are reported in mortgage banking income. The following table summarizes activity related to the Company’s residential mortgage loan sales and the Company's mortgage banking activity: Year Ended December 31, (in millions) 2019 2018 2017 Residential mortgage loan sold with servicing retained $20,430 $8,149 $3,161 Gain on sales (1) 251 89 35 Contractually specified servicing, late and other ancillary fees (1) 208 118 53 (1) Reported in mortgage banking fees in the Consolidated Statements of Operations. The Company recognizes the right to service residential mortgage loans for others, or MSRs, as separate assets, which are presented in other assets on the Consolidated Balance Sheets, when purchased, or when servicing is contractually separated from the underlying mortgage loans by sale with servicing rights retained. MSRs are initially recorded at fair value. Subsequent to the initial recognition, MSRs are measured using either the fair value method or the amortization method. MSRs accounted for under the amortization method are subsequently accounted for at lower of cost or fair value, net of accumulated amortization, which is recorded in proportion to, and over the period of, net servicing income. The unpaid principal balance of the related residential mortgage loans was $77.5 billion and $69.6 billion as of December 31, 2019 and 2018, respectively. In connection with the August 1, 2018 acquisition of FAMC, the Company began maintaining two separate classes of MSRs which, at the time of initial capitalization, were differentiated by how the risk associated with valuation changes of the MSRs was being managed. The acquired FAMC portfolio is accounted for under the fair value method while the Company’s MSR portfolio held before the FAMC acquisition is accounted for under the amortization method. Beginning January 1, 2019, all of the Company’s newly originated MSRs are accounted for under the fair value method. The Company implemented an active hedging strategy to manage the risk associated with changes in the value of the MSR portfolio accounted for under the fair value method, which includes the purchase of freestanding derivatives. Depending on the interest rate environment, economic hedges may be used to protect the market value of MSRs accounted for under the amortization method. Any changes in fair value during the period for MSRs carried under the fair value method, as well as amortization and impairment of MSRs under the amortization method, are recorded in mortgage banking fees in the Consolidated Statements of Operations. The following table summarizes changes in MSRs recorded using the amortization method: As of and for the Year Ended December 31, (in millions) 2019 2018 Mortgage servicing rights: Balance as of beginning of period $221 $201 Amount capitalized — 36 Purchases — 16 Amortization (38 ) (32 ) Carrying amount before valuation allowance 183 221 Valuation allowance for servicing assets: Balance as of beginning of period — 3 Valuation charge-offs (recoveries) 1 (3 ) Balance at end of period 1 — Net carrying value of MSRs $182 $221 The following table summarizes changes in MSRs recorded using the fair value method: As of and for the Year Ended December 31, (in millions) 2019 2018 Fair value as of beginning of the period $600 $— Acquired MSRs — 590 Amounts capitalized 270 73 Changes in unpaid principal balance during the period (1) (119 ) (32 ) Changes in fair value during the period (2) (109 ) (31 ) Fair value at end of the period $642 $600 (1) Represents changes in value due to passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and loans that paid off during the period. (2) Represents changes in value primarily due to market driven changes in interest rates and prepayment speeds. The fair value of MSRs is estimated by using the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, contractual servicing fee income, servicing costs, default rates, ancillary income, and other economic factors, which are determined based on current market interest rates. The valuation does not attempt to forecast or predict the future direction of interest rates. The sensitivity analyses below present the impact to current fair value of an immediate 50 basis point and 100 basis point adverse change in key economic assumptions and the decline in fair value if the respective adverse change was realized. These sensitivities are hypothetical, with the effect of a variation in a particular assumption on the fair value of the MSRs calculated independently without changing any other assumption. In reality, changes in one factor may result in changes in another (e.g., changes in interest rates, which drive changes in prepayment rates, could result in changes in the discount rates), which may amplify or counteract the sensitivities. The primary risk inherent in the Company’s MSRs is an increase in prepayments of the underlying mortgage loans serviced, which is dependent upon movements in market interest rates. For MSRs under the amortization method, the key economic assumptions used to estimate the fair value are presented below: December 31, 2019 December 31, 2018 Actual Decline in fair value due to Actual Decline in fair value due to (dollars in millions) Fair value $193 50 bps adverse change 100 bps adverse change $243 50 bps adverse change 100 bps adverse change Weighted average life (in years) 6.4 6.5 Weighted average constant prepayment rate 8.9% $28 $53 8.5% $24 $56 Weighted average discount rate 9.4% 4 7 9.3% 5 9 For MSRs under the fair value method, the key economic assumptions used to estimate the fair value are presented below: December 31, 2019 December 31, 2018 Actual Decline in fair value due to Actual Decline in fair value due to (dollars in millions) Fair value $642 50 bps adverse change 100 bps adverse change $600 50 bps adverse change 100 bps adverse change Weighted average life (in years) 5.5 8.0 Weighted average constant prepayment rate 13.9% $116 $222 8.2% $68 $148 Weighted average option adjusted spread 440 bps 12 25 609 bps 13 26 Citizens accounts for derivatives in its mortgage banking operations at fair value on the Consolidated Balance Sheets as derivative assets or derivative liabilities, depending on whether the derivative had a positive (asset) or negative (liability) fair value as of the balance sheet date. The Company’s mortgage banking derivatives include commitments to originate mortgages held for sale, certain loan sale agreements, and other financial instruments that meet the definition of a derivative. Refer to Note 13 for additional information. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 8 - LEASES Citizens as Lessee The Company determines if an arrangement is a lease at inception and records a right-of-use asset and a corresponding lease liability. A right-of-use asset represents the value of the Company’s contractual right to use an underlying leased asset and a lease liability represents the Company’s contractual obligation to make payments on the same underlying leased asset. Operating and finance lease right-of-use assets and liabilities are recognized at commencement date based on the present value of the lease payments over the non-cancelable lease term. As most of the Company’s leases do not specify an implicit rate, the Company uses an incremental borrowing rate based on information available at the lease commencement date to determine the present value of the lease payments. The Company evaluates right-of-use assets for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. In its normal course of business, the Company leases both equipment and real estate, including office and branch space. Lease terms predominantly range from one year to ten years and may include options to extend the lease, terminate the lease, or purchase the underlying asset at the end of the lease. Certain lease agreements include rental payments based on an index or are adjusted periodically for inflation. The Company has lease agreements that contain lease and non-lease components and for certain real estate leases, these components are accounted for as a single lease component. Leases with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets and are recognized in occupancy expense in the Company’s Consolidated Statements of Operations on a straight-line basis over the remaining lease term. The Company may also enter into subleases with third parties for certain leased real estate properties that are no longer occupied. The components of operating lease cost are presented below: (in millions) Year Ended December 31, 2019 Operating lease cost $165 Short-term lease cost 10 Variable lease cost 7 Sublease income (3 ) Total $179 Operating lease cost is recognized on a straight line basis over the lease term and recorded in occupancy expense on the Consolidated Statements of Operations. Supplemental Consolidated Balance Sheet information related to the Company’s operating lease arrangements is presented below: (in millions) December 31, 2019 Affected Line Item in Consolidated Balance Sheets Operating lease right-of-use assets $699 Other assets Operating lease liabilities 721 Other liabilities Supplemental information related to the Company’s operating lease arrangements is presented below: (in millions) Year Ended December 31, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $164 Right-of-use assets in exchange for new operating lease liabilities 117 The weighted average remaining lease term and weighted average discount rate for operating leases as of December 31, 2019 is seven years and 3.15% , respectively. At December 31, 2019 , lease liabilities maturing under non-cancelable operating leases are presented below for the years ended December 31: (in millions) Operating Leases 2020 150 2021 150 2022 125 2023 100 Thereafter 281 Total lease payments 806 Less: Interest 85 Present value of lease liabilities $721 Citizens as Lessor Operating lease assets where Citizens was the lessor totaled $57 million and $92 million as of December 31, 2019 and 2018, respectively. Operating lease rental income for leased assets where Citizens is the lessor is recognized in other income on a straight-line basis over the lease term. Depreciation expense associated with operating lease assets is recorded on a straight-line basis over the estimated useful life, considering the estimated residual value of the leased asset and is included in other operating expense in the Consolidated Statements of Operations. On a periodic basis, operating lease assets are reviewed for impairment. Impairment loss is recognized in other operating expense if the carrying amount of the leased assets exceeds fair value and is not recoverable. The carrying amount of leased assets is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the lease payments and the estimated residual value upon the eventual disposition of the asset. For discussion of direct finance and sales-type leases where Citizens is lessor, refer to Note 4 . |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 9 - GOODWILL AND INTANGIBLE ASSETS Goodwill is the purchase premium associated with the acquisition of a business and is assigned to the Company’s reporting units at the acquisition date. A reporting unit is a business operating segment or a component of a business operating segment. Citizens has identified and assigned goodwill to two reporting units - Consumer Banking and Commercial Banking - based upon reviews of the structure of the Company’s executive team and supporting functions, resource allocations and financial reporting processes. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. Goodwill is not amortized, but is subject to annual impairment tests. Citizens reviews goodwill for impairment annually as of October 31 st and in interim periods when events or changes indicate the carrying value of one or more reporting units may not be recoverable. The Company has the option of performing a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of each reporting unit is less than the carrying value. If it is more likely than not that the fair value exceeds the carrying value, then no further testing is necessary; otherwise, Citizens must perform a two-step quantitative assessment of goodwill. Citizens may elect to bypass the qualitative assessment and perform a two-step quantitative assessment. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is deemed to be not impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment. The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit, as determined in the first step, over the aggregate fair values of the individual assets, liabilities and identifiable intangible. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss that is recognized cannot exceed the amount of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Under the quantitative impairment assessment, the fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. Citizens relies on the income approach (discounted cash flow method) for determining fair value. Market and transaction approaches are used as benchmarks only to corroborate the value determined by the discounted cash flow method. Citizens relies on several assumptions when estimating the fair value of its reporting units using the discounted cash flow method. These assumptions include the discount rate, as well as projected loan loss, income tax and capital retention rates. Discount rates are estimated based on the Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, and size premium adjustments specific to a particular reporting unit. The discount rates are also calibrated on the assessment of the risks related to the projected cash flows of each reporting unit. Cash flow projections include estimates for projected loan loss, income tax and capital retention rates. Multi-year financial forecasts are developed for each reporting unit by considering several key business drivers such as new business initiatives, customer retention standards, market share changes, anticipated loan and deposit growth, forward interest rates, historical performance, and industry and economic trends, among other considerations. The long-term growth rate used in determining the terminal value of each reporting unit is estimated based on management’s assessment of the minimum expected terminal growth rate of each reporting unit, as well as broader economic considerations such as GDP and inflation. Citizens bases its fair value estimates on assumptions it believes to be representative of assumptions that a market participant would use in valuing the reporting unit but that are unpredictable and inherently uncertain, including estimates of future growth rates and operating margins and assumptions about the overall economic climate and the competitive environment for its reporting units. There can be no assurances that future estimates and assumptions made for purposes of goodwill testing will prove accurate predictions of the future. If the assumptions regarding business plans, competitive environments or anticipated growth rates are not achieved, Citizens may be required to record goodwill impairment charges in future periods. For the year ended December 31, 2019, Citizens elected to perform a qualitative analysis to determine whether it was more likely than not that the fair value of either of its reporting units was less than the respective reporting unit’s carrying value. As a result of this qualitative assessment, the Company determined that it was not necessary to perform a quantitative impairment test and concluded that there was no impairment to the carrying value of the Company's goodwill. The Company acquired Clarfeld in January 2019 and Bowstring in March 2019, which resulted in increases to goodwill of $83 million and $35 million , respectively. Changes in the carrying value of goodwill for the years ended December 31, 2019 and 2018 are presented below: (in millions) Consumer Banking Commercial Banking Total Balance at December 31, 2017 $2,136 $4,751 $6,887 Business acquisition 59 — 59 Adjustments (1) (23 ) — (23 ) Balance at December 31, 2018 $2,172 $4,751 $6,923 Business acquisitions 83 35 118 Adjustments 3 — 3 Balance at December 31, 2019 $2,258 $4,786 $7,044 (1) Adjustments to goodwill are the result of an update to the purchase price allocation for the FAMC acquisition, given higher value attributed to purchased net assets. Accumulated impairment losses related to the Consumer Banking reporting unit totaled $5.9 billion at December 31, 2019 and 2018 . The accumulated impairment losses related to the Commercial Banking reporting unit totaled $50 million at December 31, 2019 and 2018 . No impairment was recorded for the years ended December 31, 2019 , 2018 and 2017 . Other Intangibles Other intangible assets are recognized separately from goodwill if the asset arises as a result of contractual rights or if the asset is capable of being separated and sold, transferred or exchanged. Intangible assets are recorded in other assets on the Consolidated Balance Sheets. Intangible assets are amortized on a straight-line basis and subject to an annual impairment evaluation. Amortization expense is recorded in other expenses in our Consolidated Statements of Operations. A summary of the carrying value of intangible assets is presented below. Included in the carrying value at December 31, 2019 was $19 million and $5 million in other intangibles related to the Clarfeld and Bowstring acquisitions, respectively. Additionally, included in the carrying value at December 31, 2019 was $18 million related to the March 2019 purchase of naming rights for a theater in Boston, Massachusetts, and a sponsorship and promotion arrangement. December 31, 2019 December 31, 2018 (in millions) Amortizable Lives (years) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Acquired technology 7 $21 $4 $17 $20 $1 $19 Acquired relationships 5 - 15 37 5 32 11 1 10 Naming Rights 10 11 1 10 — — — Other 2 - 7 13 4 9 3 1 2 Total $82 $14 $68 $34 $3 $31 As of December 31, 2019 , all of the Company’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $11 million and $3 million for the year ended December 31, 2019 and 2018 , respectively. There was no amortization expense recognized on intangible assets for the year ended December 31, 2017 . The Company’s projection of amortization expense is based on balances as of December 31, 2019 , and future amortization expense may vary from these projections. Estimated intangible asset amortization expense for the next five years is as follows: (in millions) Total 2020 $11 2021 10 2022 9 2023 9 2024 8 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 10 - VARIABLE INTEREST ENTITIES Citizens makes equity investments in various entities that are considered VIEs, as defined by GAAP. A VIE typically does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties. The Company’s variable interest arises from contractual, ownership or other monetary interests in the entity, which change with fluctuations in the fair value of the entity's net assets. Citizens consolidates a VIE if it is the primary beneficiary of the entity. Citizens is the primary beneficiary of a VIE if its variable interest provides it with the power to direct the activities that most significantly impact the VIE and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to the VIE. To determine whether or not a variable interest held could potentially be significant to the VIE, the company considers both qualitative and quantitative factors regarding the nature, size and form of its involvement with the VIE. Citizens assesses whether or not it is the primary beneficiary of a VIE on an ongoing basis. Citizens is involved in various entities that are considered VIEs, including investments in limited partnerships that sponsor affordable housing projects, limited liability companies that sponsor renewable energy projects and lending to special purpose entities. Citizens’ maximum exposure to loss as a result of its involvement with these entities is limited to the balance sheet carrying amount of its equity investment and outstanding principal balance of loans to special purpose entities. A summary of these investments is presented below: December 31, (in millions) 2019 2018 LIHTC investment included in other assets $1,401 $1,236 LIHTC unfunded commitments included in other liabilities 716 673 Lending to special purpose entities included in loans and leases 1,101 613 Renewable energy investments included in other assets 355 319 Low Income Housing Tax Credit Partnerships The purpose of the Company’s equity investments is to assist in achieving the goals of the Community Reinvestment Act and to earn an adequate return of capital. LIHTC partnerships are managed by unrelated general partners that have the power to direct the activities which most significantly affect the performance of the partnerships. Citizens is therefore not the primary beneficiary of any LIHTC partnerships. Accordingly, Citizens does not consolidate these VIEs and accounts for these investments in other assets on the Consolidated Balance Sheets. Citizens applies the proportional amortization method to account for its LIHTC investments. Under the proportional amortization method, the Company applies a practical expedient and amortizes the initial cost of the investment in proportion to the tax credits received in the current period as compared to the total tax credits expected to be received over the life of the investment. The amortization and tax benefits are included as a component of income tax expense. The tax credits received are reported as a reduction of income tax expense (or an increase to income tax benefit) related to these transactions. The following table presents other information related to the Company’s affordable housing tax credit investments: Year Ended December 31, (in millions) 2019 2018 2017 Tax credits included in income tax expense $128 $101 $83 Amortization expense included in income tax expense 137 110 94 Other tax benefits included in income tax expense 32 25 31 No LIHTC investment impairment losses were recognized during the years ended December 31, 2019 , 2018 , and 2017. Lending to Special Purpose Entities Citizens provides lending facilities to third-party sponsored special purpose entities. Because the sponsor for each respective entity has the power to direct how proceeds from the Company are utilized, as well as maintains responsibility for any associated servicing commitments, Citizens is not the primary beneficiary of these entities. Accordingly, Citizens does not consolidate these VIEs on the Consolidated Balance Sheets. As of December 31, 2019 and 2018 , the lending facilities had aggregate unpaid principal balances of $1.1 billion and $613 million , respectively, and undrawn commitments to extend credit of $1.2 billion and $584 million , respectively. Renewable Energy Entities |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
DEPOSITS | NOTE 11 - DEPOSITS Interest-bearing deposits in banks are carried at cost and include deposits that mature within one year. The following table presents the major components of deposits: December 31, (in millions) 2019 2018 Demand $29,233 $29,458 Checking with interest 24,840 23,067 Regular savings 13,779 12,007 Money market accounts 38,725 35,701 Term deposits 18,736 19,342 Total deposits $125,313 $119,575 The following table presents the maturity distribution by year of term deposits as of December 31, 2019 : (in millions) 2020 $16,151 2021 1,995 2022 316 2023 144 2024 126 2025 and thereafter 4 Total $18,736 Of these deposits, the amount of term deposits with a denomination of $100,000 or more was $13.4 billion at December 31, 2019 . The following table presents the remaining maturities of these deposits: (in millions) Three months or less $6,987 After three months through six months 3,224 After six months through twelve months 2,015 After twelve months 1,206 Total term deposits $13,432 |
BORROWED FUNDS
BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | NOTE 12 - BORROWED FUNDS The following table presents a summary of the Company’s short-term borrowed funds: December 31, (in millions) 2019 2018 Securities sold under agreements to repurchase $265 $336 Federal funds purchased — 820 Other short-term borrowed funds 9 161 Total short-term borrowed funds $274 $1,317 The following table presents key data related to the Company’s short-term borrowed funds: As of and for the Year Ended December 31, (dollars in millions, except ratio data) 2019 2018 2017 Weighted-average interest rate at year-end: (1) Federal funds purchased and securities sold under agreements to repurchase 0.41 % 1.72 % 0.74 % Other short-term borrowed funds 3.85 2.73 1.33 Maximum amount outstanding at any month-end during the year: Federal funds purchased and securities sold under agreements to repurchase (2) $1,499 $1,282 $1,174 Other short-term borrowed funds 511 1,110 2,759 Average amount outstanding during the year: Federal funds purchased and securities sold under agreements to repurchase (2) $599 $654 $776 Other short-term borrowed funds 66 467 1,571 Weighted-average interest rate during the year: (1) Federal funds purchased and securities sold under agreements to repurchase 1.36 % 0.92 % 0.36 % Other short-term borrowed funds 2.50 2.10 1.09 (1) Rates exclude certain hedging costs. (2) Balances are net of certain short-term receivables associated with reverse repurchase agreements, as applicable. The following table presents a summary of the Company’s long-term borrowed funds: December 31, (in millions) 2019 2018 Parent Company: 2.375% fixed-rate senior unsecured debt, due July 2021 $349 $349 4.150% fixed-rate subordinated debt, due September 2022 348 348 3.750% fixed-rate subordinated debt, due July 2024 250 250 4.023% fixed-rate subordinated debt, due October 2024 42 42 4.350% fixed-rate subordinated debt, due August 2025 249 249 4.300% fixed-rate subordinated debt, due December 2025 750 749 2.850% fixed-rate senior unsecured notes, due July 2026 496 — CBNA’s Global Note Program: 2.500% senior unsecured notes, due March 2019 — 748 2.450% senior unsecured notes, due December 2019 — 744 2.250% senior unsecured notes, due March 2020 700 691 2.447% floating-rate senior unsecured notes, due March 2020 (1) 300 300 2.487% floating-rate senior unsecured notes, due May 2020 (1) 250 250 2.200% senior unsecured notes, due May 2020 500 499 2.250% senior unsecured notes, due October 2020 750 738 2.550% senior unsecured notes, due May 2021 991 964 3.250% senior unsecured notes, due February 2022 711 — 2.629% floating-rate senior unsecured notes, due February 2022 (1) 299 — 2.727% floating-rate senior unsecured notes, due May 2022 (1) 250 249 2.650% senior unsecured notes, due May 2022 501 487 3.700% senior unsecured notes, due March 2023 515 502 2.911% floating-rate senior unsecured notes, due March 2023 (1) 249 249 3.750% senior unsecured notes, due February 2026 521 — Additional Borrowings by CBNA and Other Subsidiaries: Federal Home Loan Bank advances, 2.006% weighted average rate, due through 2038 5,008 7,508 Other 18 9 Total long-term borrowed funds $14,047 $15,925 (1) Rate disclosed reflects the floating rate as of December 31, 2019. The Parent Company’s long-term borrowed funds as of December 31, 2019 and 2018 included principal balances of $2.5 billion and $2.0 billion , respectively, and unamortized deferred issuance costs and/or discounts of ($8) million and ($5) million , respectively. CBNA and other subsidiaries’ long-term borrowed funds as of December 31, 2019 and 2018 included principal balances of $11.5 billion and $14.0 billion , respectively, with unamortized deferred issuance costs and/or discounts of ($13) million and ($14) million , respectively, and hedging basis adjustments of $50 million and ($66) million , respectively. See Note 13 for further information about the Company’s hedging of certain long-term borrowed funds. Advances, lines of credit, and letters of credit from the FHLB are collateralized by pledged mortgages and pledged securities at least sufficient to satisfy the collateral maintenance level established by the FHLB. The utilized borrowing capacity for FHLB advances and letters of credit was $9.8 billion and $13.0 billion at December 31, 2019 and 2018 , respectively. The Company’s available FHLB borrowing capacity was $7.2 billion and $4.8 billion at December 31, 2019 and 2018 , respectively. Citizens can also borrow from the FRB discount window to meet short-term liquidity requirements. Collateral, including certain loans, is pledged to support this borrowing capacity. At December 31, 2019 , the Company’s unused secured borrowing capacity was approximately $38.9 billion , which includes unencumbered securities, FHLB borrowing capacity, and FRB discount window capacity. The following table presents a summary of maturities for the Company’s long-term borrowed funds at December 31, 2019 : (in millions) Parent Company CBNA and Other Subsidiaries Consolidated Year 2020 $— $2,504 $2,504 2021 349 5,998 6,347 2022 348 1,767 2,115 2023 — 765 765 2024 292 1 293 2025 and thereafter 1,495 528 2,023 Total $2,484 $11,563 $14,047 |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 13 - DERIVATIVES In the normal course of business, Citizens enters into a variety of derivative transactions to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates and foreign currency exchange rates. These transactions include interest rate swap contracts, interest rate options, foreign exchange contracts, residential loan commitment rate locks, interest rate future contracts, swaptions, forward commitments to sell to-be-announced mortgage securities (“TBAs”), forward sale contracts and purchase options. The Company does not use derivatives for speculative purposes. The Company’s derivative instruments are recognized on the Consolidated Balance Sheets in derivative assets and derivative liabilities at fair value. Information regarding the valuation methodology and inputs used to estimate the fair value of the Company’s derivative instruments is described in Note 19 . Derivative assets and derivative liabilities are netted by counterparty on the Consolidated Balance Sheets if a “right of setoff” has been established in a master netting agreement between the Company and the counterparty. This netted derivative asset or liability position is also netted against the fair value of any cash collateral that has been pledged or received in accordance with a master netting agreement. The following table presents derivative instruments included on the Consolidated Balance Sheets: December 31, 2019 December 31, 2018 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $29,846 $1 $— $12,050 $5 $— Derivatives not designated as hedging instruments: Interest rate contracts 142,386 772 133 117,076 301 277 Foreign exchange contracts 15,101 174 166 9,866 129 113 Other contracts 6,868 37 23 3,555 14 25 Total derivatives not designated as hedging instruments 983 322 444 415 Gross derivative fair values 984 322 449 415 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (107 ) (107 ) (87 ) (87 ) Less: Cash collateral applied (2) (70 ) (95 ) (45 ) (36 ) Total net derivative fair values presented in the Consolidated Balance Sheets $807 $120 $317 $292 (1) The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate contracts, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they do not measure the true economic risk of these contracts. (2) Amounts represent the impact of enforceable master netting agreements that allow the Company to net settle positive and negative positions as well as collateral paid and received. The Company’s derivative transactions are internally divided into three sub-groups: institutional, customer and residential loan. Certain derivative transactions within these sub-groups are designated as fair value or cash flow hedges, as described below: Derivatives Designated As Hedging Instruments The Company’s institutional derivatives qualify for hedge accounting treatment. The net interest accruals on interest rate swaps designated in a fair value or cash flow hedge relationship are treated as an adjustment to interest income or interest expense of the item being hedged. The Company formally documents at inception all hedging relationships, as well as risk management objectives and strategies for undertaking various accounting hedges. Additionally, the Company monitors the effectiveness of its hedge relationships during the duration of the hedge period. The methods utilized to assess hedge effectiveness vary based on the hedge relationship and the Company monitors each relationship to ensure that management’s initial intent continues to be satisfied. The Company discontinues hedge accounting treatment when it is determined that a derivative is not expected to be, or has ceased to be, effective as a hedge and subsequently reflects changes in the fair value of the derivative in earnings after termination of the hedge relationship. Fair Value Hedges In a fair value hedge, changes in the fair value of both the derivative instrument and the hedged asset or liability attributable to the risk being hedged are recognized in the same income statement line item in the Consolidated Statements of Operations when the changes in fair value occur. Citizens has outstanding interest rate swap agreements utilized to manage the interest rate exposure on its long-term borrowings, certain fixed rate residential mortgages and AFS debt securities. Certain fair value hedges have been designated as a last-of-layer hedge, which affords the Company the ability to execute a fair value hedge of the interest rate risk associated with a portfolio of similar prepayable assets whereby the last dollar amount estimated to remain in the portfolio of assets is identified as the hedged item. The following table presents the change in fair value of interest rate contracts designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Operations: Year Ended December 31, (in millions) 2019 2018 2017 Affected Line Item in the Consolidated Statements of Operations Change in fair value of interest rate swaps hedging borrowed funds $107 $8 ($26 ) Interest expense - long-term borrowed funds Change in fair value of hedged long-term debt attributable to the risk being hedged (107 ) (9 ) 27 Interest expense - long-term borrowed funds Change in fair value of interest rate swaps hedging fixed rate loans (17 ) — — Interest and fees on loans and leases Change in fair value of hedged fixed rate loans attributable to the risk being hedged 17 — — Interest and fees on loans and leases Change in fair value of interest rate swaps hedging debt securities available for sale 8 — — Interest income - investment securities Change in fair value of hedged debt securities available for sale attributable to risk being hedged (8 ) — — Interest income - investment securities The following table reflects amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: December 31, 2019 (in millions) Debt securities available for sale (1) Residential mortgages Long-term borrowed funds Carrying amount of hedged assets $15,798 $976 $— Carrying amount of hedged liabilities — — 4,689 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items (8 ) 17 50 (1) The Company designated $2.0 billion as the hedged amount (from a closed portfolio of prepayable financial assets with a carrying value of $15.8 billion as of December 31, 2019) in a last-of-layer hedging relationship, which commenced in the third quarter of 2019. Cash Flow Hedges In a cash flow hedge, the entire change in the fair value of the interest rate swap included in the assessment of hedge effectiveness is initially recorded in OCI and is subsequently reclassified from OCI to current period earnings (interest income or interest expense) in the same period that the hedged item affects earnings. Citizens has outstanding interest rate swap agreements designed to hedge a portion of the Company’s floating-rate assets, and liabilities. All of these swaps have been deemed highly effective cash flow hedges. During the next 12 months, there are $4 million in pre-tax net gains on derivative instruments included in OCI expected to be reclassified to net interest income in the Consolidated Statements of Operations. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31, 2019. During the years ended December 31, 2019, 2018 and 2017, there were no gains or losses reclassified from OCI to current period earnings (other income) related to the discontinuance of a cash flow hedge where it became probable that the original forecasted transaction would no longer occur by the end of the originally specified time period. The following table presents the pre-tax net gains (losses) recorded in the Consolidated Statements of Operations and in the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: Amounts Recognized for the Year Ended December 31, (in millions) 2019 2018 2017 Amount of pre-tax net gains (losses) recognized in OCI $138 ($44 ) ($23 ) Amount of pre-tax net losses reclassified from OCI into interest income (68 ) (55 ) 25 Amount of pre-tax net gains reclassified from OCI into interest expense 11 12 — Derivatives not designated as hedging instruments Economic Hedges The Company’s economic hedges include those related to offsetting customer derivatives, residential mortgage loan derivatives (including interest rate lock commitments and forward sales commitments) and derivatives to hedge its residential MSR portfolio. Customer derivatives include interest rate and foreign exchange derivative contracts designed to meet the hedging and financing needs of the Company’s customers, and are economically hedged by the Company to offset its market exposure. Interest rate lock commitments on residential mortgage loans that will be held for sale are considered derivative instruments, and are economically hedged by entering into forward sale commitments to manage changes in fair value due to interest rate risk. Residential MSR portfolio derivatives are entered to hedge the risk of changes in the fair value of the Company’s MSR asset. The following table presents the effect of economic hedges on noninterest income: Amounts Recognized in Noninterest Income for the Year Ended December 31, Affected Line Item in the Consolidated Statements of Operations (in millions) 2019 2018 2017 Economic hedge type: Customer interest rate contracts $687 $5 $5 Foreign exchange and interest rate products Customer foreign exchange contracts (166 ) (54 ) 172 Foreign exchange and interest rate products Derivatives transactions to hedge interest rate risk (620 ) 43 46 Foreign exchange and interest rate products Derivatives transactions to hedge foreign exchange risk 200 158 (151 ) Foreign exchange and interest rate products Residential loan commitments 8 (3 ) 2 Mortgage banking fees Forward sale contracts 20 21 (8 ) Mortgage banking fees Interest rate derivative contracts used to hedge residential MSRs (1) 134 35 — Mortgage banking fees Total $263 $205 $66 (1) Includes ($5) million related to interest rate derivative contracts used to hedge residential MSRs valued at LOCOM for the year ended December 31, 2019. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | NOTE 14 - EMPLOYEE BENEFITS Pension Plans Citizens maintains a non-contributory pension plan (the “Qualified Plan”) that was closed to new hires and re-hires effective January 1, 2009, and frozen to all participants effective December 31, 2012. Benefits under the Qualified Plan are based on employees’ years of service and highest 5 -year average of eligible compensation. The Qualified Plan is funded on a current basis, in compliance with the requirements of ERISA. Citizens also provides an unfunded, non-qualified supplemental retirement plan (the “Non-Qualified Plan”), which was closed and frozen effective December 31, 2012. The Company’s Qualified Plan and Non-Qualified Plan are collectively referred to as the Company’s “Pension Plans”. The Pension Plans’ investments include equity-oriented and fixed income-oriented investments, including but not limited to government obligations, corporate bonds, and common and collective equity and fixed income funds. The following table presents changes in the fair value of the Company’s Pension Plans’ assets, projected benefit obligation, funded status, and accumulated benefit obligation: Year Ended December 31, Qualified Plan Non-Qualified Plan (in millions) 2019 2018 2019 2018 Fair value of plan assets as of January 1 $1,050 $1,139 $— $— Actual return on plan assets 259 (81 ) — — Employer contributions — 50 8 8 Benefits and administrative expenses paid (63 ) (58 ) (8 ) (8 ) Fair value of plan assets as of December 31 1,246 1,050 — — Projected benefit obligation 1,075 972 102 95 Pension asset (obligation) $171 $78 ($102 ) ($95 ) Accumulated benefit obligation $1,075 $972 $102 $95 The Company’s projected benefit obligation increased for the year ending December 31, 2019 , due to the decrease in the discount rate assumption, partially offset by updated mortality assumptions. Citizens recognized actuarial gains and losses on the Pension Plans in AOCI resulting in an ending balance of $551 million and $618 million at December 31, 2019 and 2018 , respectively. No contributions were made to the Qualified Plan in 2019 and no contribution is planned for 2020. Citizens contributed $50 million to the qualified plan in 2018 . Citizens contributed $8 million to the Non-Qualified Plan in 2019 and expects to contribute $8 million in 2020. The following table presents other changes in plan assets and benefit obligations recognized in OCI for the Company’s Pension Plans: Year Ended December 31, (in millions) 2019 2018 2017 Net periodic pension income ($5 ) ($16 ) ($2 ) Net actuarial (gain) loss (49 ) 49 (31 ) Amortization of prior service credit — 1 1 Amortization of net actuarial loss (19 ) (17 ) (18 ) Total (loss) gain recognized in other comprehensive loss (68 ) 33 (48 ) Total (loss) gain recognized in net periodic pension (income) cost and other comprehensive loss ($73 ) $17 ($50 ) Costs under the Company’s Pension Plans are actuarially computed and include current service costs and amortization of prior service costs over the participants’ average future working lifetime. The actuarial cost method used in determining the net periodic pension cost is the projected unit method. The following table presents the components of net periodic pension (income) cost for the Company’s Pension Plans: Year Ended December 31, Qualified Plan Non-Qualified Plan Total (in millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost $3 $3 $3 $— $— $— $3 $3 $3 Interest cost 41 39 42 4 4 4 45 43 46 Expected return on plan assets (72 ) (79 ) (69 ) — — — (72 ) (79 ) (69 ) Amortization of actuarial loss 17 15 16 2 2 2 19 17 18 Net periodic pension (income) cost (1) ($11 ) ($22 ) ($8 ) $6 $6 $6 ($5 ) ($16 ) ($2 ) (1) In the Consolidated Statements of Operations, service cost is presented in salaries and employee benefits, and all other components of net periodic pension (income) cost are presented in other operating expense. The following table presents the expected future benefit payments for the Company’s Pension Plans: (in millions) Expected benefit payments by fiscal year ending: December 31, 2020 $67 December 31, 2021 68 December 31, 2022 68 December 31, 2023 68 December 31, 2024 69 December 31, 2025 - 2029 348 401(k) Plan Citizens sponsors a 401(k) Plan under which employee tax-deferred/Roth after-tax contributions to the 401(k) Plan are matched by the Company after completion of one year of service. Contributions are matched at 100% up to an overall limitation of 4% on a pay period basis. Substantially all employees will receive an additional 2% of earnings after completion of one year of service, subject to limits set by the Internal Revenue Service. Amounts contributed and expensed by the Company were $72 million in 2019 compared to $68 million in 2018 and $61 million in 2017 . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 15 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in the balances, net of income taxes, of each component of AOCI: (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Securities Employee Benefit Plans Total AOCI Balance at January 1, 2017 ($88 ) ($186 ) ($394 ) ($668 ) Other comprehensive loss before reclassifications (14 ) (6 ) — (20 ) Amounts reclassified to the Consolidated Statements of Operations (16 ) (2 ) 31 13 Net other comprehensive (loss) income (30 ) (8 ) 31 (7 ) Reclassification of tax effects resulting from the 2017 Tax Legislation (1) ($25 ) ($42 ) ($78 ) ($145 ) Balance at December 31, 2017 ($143 ) ($236 ) ($441 ) ($820 ) Other comprehensive loss before reclassifications (33 ) (239 ) — (272 ) Other-than-temporary impairment not recognized in earnings on securities — (3 ) — (3 ) Amounts reclassified to the Consolidated Statements of Operations 33 (12 ) (22 ) (1 ) Net other comprehensive loss — (254 ) (22 ) (276 ) Balance at December 31, 2018 ($143 ) ($490 ) ($463 ) ($1,096 ) Other comprehensive income before reclassifications 103 501 — 604 Amounts reclassified to the Consolidated Statements of Operations 43 (15 ) 48 76 Net other comprehensive income 146 486 48 680 Cumulative effect of change in accounting standards — 5 — 5 Balance at December 31, 2019 $3 $1 ($415 ) ($411 ) Primary income statement location of amounts reclassified from AOCI Net interest income Securities gains, net Other operating expense (1) As of December 31, 2017, the balance of AOCI reflects the retrospective adoption of FASB ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 16 - STOCKHOLDERS’ EQUITY Preferred Stock The following table provides the number of authorized preferred shares, the number of issued and outstanding, the liquidation value per share and the carrying amount as of December 31: 2019 2018 (in millions, except per share and share data) Liquidation value per share Preferred Shares Carrying Amount Preferred Shares Carrying Amount Authorized ($25 par value) 100,000,000 100,000,000 Issued and outstanding Series A $1,000 250,000 $247 250,000 $247 Series B 1,000 300,000 296 300,000 296 Series C 1,000 300,000 297 300,000 297 Series D 1,000 (1) 300,000 (2) 293 — — Series E 1,000 (1) 450,000 (3) 437 — — Total issued and outstanding 1,600,000 $1,570 850,000 $840 (1) Equivalent to $25 per depositary share. (2) Represented by 12,000,000 depositary shares each representing a 1/40th interest in the Series D Preferred Stock. (3) Represented by 18,000,000 depositary shares each representing a 1/40th interest in the Series E Preferred Stock. The following table provides information related to the Company’s preferred stock outstanding as of December 31, 2019 : (in millions, except per share and share data) Preferred Stock Issue Date Number of Shares Issued Dividend Dates (3) Annual Per Share Dividend Rate Optional Redemption Date (4) Series A (1) April 6, 2015 250,000 Semi-annually beginning October 6, 2015 until April 6, 2020 5.500% until April 6, 2020 April 6, 2020 Quarterly beginning July 6, 2020 3 Mo. LIBOR plus 3.960% beginning April 6, 2020 Series B (1) May 24, 2018 300,000 Semi-annually beginning January 6, 2019 until July 6, 2023 6.000% until July 6, 2023 July 6, 2023 Quarterly beginning October 6, 2023 3 Mo. LIBOR plus 3.003% beginning July 6, 2023 Series C (1) October 25, 2018 300,000 Quarterly beginning January 6, 2019 until April 6, 2024 6.375% until April 6, 2024 April 6, 2024 Quarterly beginning July 6, 2024 3 Mo. LIBOR plus 3.157% beginning April 6, 2024 Series D (1) January 29, 2019 300,000 (5) Quarterly beginning April 6, 2019 until April 6, 2024 6.350% until April 6, 2024 April 6, 2024 Quarterly beginning July 6, 2024 3 Mo. LIBOR plus 3.642% beginning April 6, 2024 Series E (2) October 28, 2019 450,000 (6) Quarterly beginning January 6, 2020 5.000% January 6, 2025 (1) Series are non-cumulative fixed-to-floating rate perpetual preferred stock. Except in limited circumstances, the preferred stock does not have voting rights. (2) Series are non-cumulative fixed rate perpetual preferred stock. Except in limited circumstances, the preferred stock does not have voting rights. (3) Dividends are payable when, and if, declared by the Company’s Board of Directors or an authorized committee thereof. (4) Redeemable at the Company’s option, in whole or in part, on any dividend payment date on or after the date stated, or in whole but not in part, at any time within 90 days following a regulatory capital treatment event a as defined in the applicable certificate of designations, in each case at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Under current rules, any redemption is subject to approval by the FRB. (5) Represented by 12,000,000 depositary shares each representing a 1/40th interest in the Series D Preferred Stock. (6) Represented by 18,000,000 depositary shares each representing a 1/40th interest in the Series E Preferred Stock. Dividends The following table provides information related to dividends per share and in the aggregate, declared and paid, for each type of stock issued and outstanding for the year ended December 31: 2019 2018 2017 (in millions, except per share and share data) Dividends per Share Dividends Declared Dividends Paid Dividends per Share Dividends Declared Dividends Paid Dividends per Share Dividends Declared Dividends Paid Common stock $1.36 $617 $617 $0.98 $471 $471 $0.64 $322 $322 Preferred stock Series A $55.00 $14 $14 $55.00 $14 $14 $55.00 $14 $14 Series B 60.00 18 20 37.00 11 — — — — Series C 63.75 19 18 12.57 4 — — — — Series D 59.45 18 13 — — — — — — Series E 9.44 4 — — — — — — — Total preferred stock $73 $65 $29 $14 $14 $14 Treasury Stock The purchase of the Company’s common stock is recorded at cost. At the date of retirement or subsequent reissuance, treasury stock is reduced by the cost of such stock on a first-in, first-out basis with differences recorded in additional paid-in capital or retained earnings, as applicable. During the year ended December 31, 2019 , the Company paid $1.220 billion to repurchase 34,305,768 common shares at a weighted-average price of $35.56 . During the year ended December 31, 2019 , the Company recorded no shares of treasury stock associated with share-based compensation plan activity. During the year ended December 31, 2018 , the Company paid $1.025 billion to repurchase 25,773,807 common shares at an average price of $39.77 . During the year ended December 31, 2018 , the Company recorded no |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 17 - SHARE-BASED COMPENSATION Citizens has share-based employee compensation plans as outlined below, pursuant to which stock awards are granted to employees and non-employee directors. Employees of the Company hold time-based restricted stock units and performance-based restricted stock units. A restricted stock unit is the right to receive shares of stock on a future date, which may be subject to time-based vesting conditions and/or performance-based vesting conditions. If a dividend is paid on shares underlying the awards prior to the date such shares are distributed, those dividends will be distributed following vesting in the same form as the dividend that has been paid to common stockholders generally. Citizens Financial Group, Inc. 2014 Omnibus Incentive Plan. Certain employees of the Company hold time-based restricted stock units and performance-based restricted stock units granted under this plan. Time-based restricted stock units granted generally become vested ratably over a 3 -year period and performance-based restricted stock units granted generally become vested in a single installment at the end of a 3 -year performance period, depending on the level of performance achieved during such period. Citizens Financial Group, Inc. 2014 Non-Employee Directors Compensation Plan. Non-employee directors receive grants of time-based restricted stock units under this plan as compensation for their services pursuant to the Citizens Financial Group, Inc. Directors Compensation Policy. Restricted stock units granted to directors are fully vested on the grant date, with settlement of the awards deferred until a director’s cessation of service. Citizens Financial Group, Inc. 2014 Employee Stock Purchase Plan. Citizens also maintains the Citizens Financial Group, Inc. Employee Stock Purchase Plan (the “ESPP”), which provides eligible employees an opportunity to purchase its common stock at a 10% discount, through accumulated payroll deductions. Eligible employees may contribute up to 10% of eligible compensation to the ESPP, up to a maximum purchase of $25,000 worth of stock in any calendar year. Offering periods under the ESPP are quarterly. Shares of CFG common stock are purchased for a participant on the last day of each quarter at a 10% discount from the fair market value (fair market value under the plan is defined as the closing price on the day of purchase). Prior to the date the shares are purchased, participants do not have any rights or privileges as a stockholder with respect to shares to be purchased at the end of the offering period. Summary of Share-Based Plans Activity The following table presents the activity related to the Company’s share-based plans (excluding the ESPP) for the year ended December 31, 2019 : Shares Weighted-Average Grant Price Outstanding, January 1 2,893,281 $34.04 Granted 1,677,167 36.21 Vested & Distributed (1,518,836 ) 32.21 Forfeited (51,388 ) 38.29 Outstanding, December 31 3,000,224 $36.71 During the years ended December 31, 2019 , 2018 and 2017 , the following number of CFG share awards were granted: 2019 ( 1,677,167 granted with a weighted-average grant price of $36.21 ); 2018 ( 1,174,501 granted with weighted-average grant price of $39.54 ); and 2017 ( 1,256,816 granted with weighted-average grant price of $39.09 ). In addition, the following number of CFG share awards became vested and distributed: 2019 ( 1,518,836 vested and distributed with a weighted-average grant price of $32.21 ); 2018 ( 877,111 vested with weighted-average grant price of $30.50 ); and 2017 ( 1,426,850 vested with weighted-average grant price of $21.91 ). There are 48,116,987 shares of Company common stock available for awards to be granted under the Omnibus Plan and Directors Plan. In addition, there are 5,782,877 shares available for awards under the ESPP. Upon settlement of share-based awards, the Company generally issues new shares, but may also issue shares from treasury stock. Citizens measures compensation expense related to stock awards based upon the fair value of the awards on the grant date. Compensation expense is adjusted for forfeitures as they occur. The related expense is charged to earnings on a straight-line basis over the requisite service period (e.g., vesting period) of the award. With respect to performance-based stock awards, compensation expense is adjusted upward or downward based upon the probability of achievement of performance. Awards that continue to vest after retirement are expensed over the shorter of the period of time from grant date to the final vesting date or from the grant date to the date when an employee is retirement eligible. Awards granted to employees who are retirement eligible at the grant date are generally expensed immediately upon grant. Share-based compensation expense (including ESPP) was $55 million , $41 million , and $39 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. At December 31, 2019 , the total unrecognized compensation expense for nonvested equity awards granted was $47 million . This expense is expected to be recognized over a weighted-average period of approximately two years . No share-based compensation costs were capitalized during the years ended December 31, 2019 , 2018 , and 2017 . The income tax benefit recognized in earnings based on the compensation expense recognized for all share-based compensation arrangements amounted to $1 million , $3 million and $9 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 18 - COMMITMENTS AND CONTINGENCIES A summary of outstanding off-balance sheet arrangements is presented below: December 31, (in millions) 2019 2018 Commitments to extend credit $72,743 $69,553 Letters of credit 2,190 2,125 Risk participation agreements 37 19 Loans sold with recourse 37 5 Marketing rights 33 37 Total $75,040 $71,739 Commitments to Extend Credit Commitments to extend credit are agreements to lend to customers in accordance with conditions contractually agreed upon in advance. Generally, the commitments have fixed expiration dates or termination clauses and may require payment of a fee. Since many of these commitments are expected to expire without being drawn upon, the contract amounts are not necessarily indicative of future cash requirements. The Company’s commercial loan trading desk provides ongoing secondary market support and liquidity to its clients. Unsettled loan trades (i.e., loan purchase contracts) represent firm commitments to purchase loans from a third party at an agreed-upon price. Principal amounts associated with unsettled commercial loan trades are off-balance sheet commitments until delivery of the loans has taken place. The principal balances of unsettled commercial loan trade purchases and sales were $183 million and $236 million , respectively, at December 31, 2019 and $68 million and $161 million , respectively, at December 31, 2018 . Letters of Credit Letters of credit in the table above reflect commercial, standby financial and standby performance letters of credit. Standby letters of credit, both financial and performance, are issued by the Company for its customers. They are used as conditional guarantees of payment to a third party in the event the customer either fails to make specific payments (financial) or fails to complete a specific project (performance). The Company’s exposure to credit loss in the event of counterparty nonperformance in connection with the above instruments is represented by the contractual amount of those instruments, net of the value of collateral held. Generally, letters of credit are collateralized by cash, accounts receivable, inventory or investment securities. Credit risk associated with letters of credit is considered in determining the appropriate amounts of reserves for unfunded commitments. Standby letters of credit and commercial letters of credit are issued for terms of up to ten years and one year , respectively. Other Commitments Citizens has additional off-balance sheet arrangements that are summarized below: • Marketing Rights - During 2003, Citizens entered into a 25 -year agreement to acquire the naming and marketing rights of a baseball stadium in Pennsylvania. • Loans sold with recourse - Citizens is an originator and servicer of residential mortgages and routinely sells such mortgage loans in the secondary market and to GSEs. In the context of such sales, the Company makes certain representations and warranties regarding the characteristics of the underlying loans and, as a result, may be contractually required to repurchase such loans or indemnify certain parties against losses for certain breaches of those representations and warranties. The Company also sells the government guaranteed portion of certain SBA loans to outside investors, for which it retains the servicing rights. • Risk Participation Agreements - RPAs are guarantees issued by the Company to other parties for a fee, whereby the Company agrees to participate in the credit risk of a derivative customer of the other party. The current amount of credit exposure is spread out over 89 counterparties. RPAs generally have terms ranging from one year to five years ; however, certain outstanding agreements have terms as long as ten years . Contingencies The Company operates in a legal and regulatory environment that exposes it to potentially significant risks. A certain amount of litigation ordinarily results from the nature of the Company’s banking and other businesses. The Company is a party to legal proceedings, including class actions. The Company is also the subject of investigations, reviews, subpoenas, and regulatory matters arising out of its normal business operations, which, in some instances, relate to concerns about fair lending, unfair and/or deceptive practices, mortgage-related issues, and mis-selling of certain products. In addition, the Company engages in discussions with relevant governmental and regulatory authorities on a regular and ongoing basis regarding various issues, and any issues discussed or identified may result in investigatory or other action being taken. Litigation and regulatory matters may result in settlements, damages, fines, penalties, public or private censure, increased costs, required remediation, restrictions on business activities, or other impacts on the Company. In these disputes and proceedings, the Company contests liability and the amount of damages as appropriate. Given their complex nature, and based on the Company's experience, it may be years before some of these matters are finally resolved. Moreover, before liability can be reasonably estimated for a claim, numerous legal and factual issues may need to be examined, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal issues relevant to the proceedings in question. The Company cannot predict with certainty if, how, or when such claims will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for claims that are at an early stage in their development or where claimants seek substantial or indeterminate damages. The Company recognizes a provision for a claim when, in the opinion of management after seeking legal advice, it is probable that a liability exists and the amount of loss can be reasonably estimated. In many proceedings, however, it is not possible to determine whether any loss is probable or to estimate the amount of any loss. Based on information currently available, the advice of legal counsel and other advisers, and established reserves, management believes that the aggregate liabilities, if any, potentially arising from these proceedings will not have a materially adverse effect on the Company’s Consolidated Financial Statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 19 - FAIR VALUE MEASUREMENTS Citizens measures or monitors many of its assets and liabilities on a fair value basis. Fair value is used on a recurring basis for assets and liabilities for which fair value is the required or elected measurement basis of accounting. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or for disclosure purposes. Nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. Citizens also applies the fair value measurement guidance to determine amounts reported for certain disclosures in this Note for assets and liabilities that are not required to be reported at fair value in the financial statements. Fair Value Option Citizens elected to account for residential mortgage LHFS and certain commercial and commercial real estate LHFS at fair value. The election of the fair value option for financial assets and financial liabilities is optional and irrevocable. Applying fair value accounting to the residential mortgage LHFS better aligns the reported results of the economic changes in the value of these loans and their related economic hedge instruments. Certain commercial and commercial real estate held for sale loans are managed by a commercial secondary loan desk that provides liquidity to banks, finance companies and institutional investors. Applying fair value accounting to this portfolio is appropriate because the Company holds these loans with the intent to sell within the near-term periods. The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of LHFS measured at fair value: December 31, 2019 December 31, 2018 (in millions) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Residential mortgage loans held for sale, at fair value $1,778 $1,727 $51 $967 $967 $— Commercial and commercial real estate loans held for sale, at fair value 168 175 (7 ) 252 252 — Residential Mortgage Loans Held for Sale The fair value of residential mortgage LHFS is derived from observable mortgage security prices and includes adjustments for loan servicing value, agency guarantee fees, and other loan level attributes which are mostly observable in the marketplace. Credit risk does not significantly impact the valuation since these loans are sold shortly after origination. Therefore, the Company classifies the residential mortgage LHFS in Level 2 of the fair value hierarchy. The residential mortgage loans accounted for under the fair value option are initially measured at fair value (i.e., acquisition cost) when the financial asset is acquired. Subsequent changes in fair value are recognized in mortgage banking fees on the Consolidated Statements of Operations. The Company recognized changes in fair value in mortgage banking income of $6 million for the years ended December 31, 2019 , 2018 and 2017 . Interest income on residential mortgage loans held for sale is calculated based on the contractual interest rate of the loan and is recorded in interest income. Commercial and Commercial Real Estate Loans Held for Sale The fair value of commercial and commercial real estate LHFS is estimated using observable prices of similar loans that transact in the marketplace. In addition, Citizens uses external pricing services that provide estimates of fair values based on quotes from various dealers transacting in the market, sector curves or benchmarking techniques. Therefore, the Company classifies the commercial and commercial real estate loans managed by the commercial secondary loan desk in Level 2 of the fair value hierarchy given the observable market inputs. There were no loans in this portfolio that were 90 days or more past due or nonaccruing as of December 31, 2019 . The loans accounted for under the fair value option are initially measured at fair value when the financial asset is recognized. Subsequent changes in fair value are recognized in other noninterest income on the Consolidated Statements of Operations. Since all loans in the Company’s commercial trading portfolio consist of floating rate obligations, all changes in fair value are due to changes in credit risk. Such credit-related fair value changes may include observed changes in overall credit spreads and/or changes to the creditworthiness of an individual borrower. Unsettled trades within the commercial trading portfolio are not recognized on the Consolidated Balance Sheets and represent off-balance sheet commitments. Refer to Note 18 for further information. Interest income on commercial and commercial real estate loans held for sale is calculated based on the contractual interest rate of the loan and is recorded in interest income. Citizens recognized $5 million , ($2) million and $4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, in other noninterest income related to its commercial trading portfolio. Recurring Fair Value Measurements Citizens measures fair value using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based upon quoted market prices in an active market, where available. If quoted prices are not available, observable market-based inputs or independently sourced parameters are used to develop fair value, whenever possible. Such inputs may include prices of similar assets or liabilities, yield curves, interest rates, prepayment speeds, and foreign exchange rates. A portion of the Company’s assets and liabilities are carried at fair value, including securities available for sale, derivative instruments and other investment securities. In addition, the Company elects to account for its loans associated with its mortgage banking business and secondary loan trading desk at fair value. Citizens classifies its assets and liabilities that are carried at fair value in accordance with the three-level valuation hierarchy: • Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by market data for substantially the full term of the asset or liability. • Level 3. Unobservable inputs that are supported by little or no market information and that are significant to the fair value measurement. Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Levels 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. Citizens reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. Citizens utilizes a variety of valuation techniques to measure its assets and liabilities at fair value. The valuation methodologies used for significant assets and liabilities carried on the balance sheet at fair value on a recurring basis are presented below: Debt securities available for sale The fair value of debt securities classified as AFS is based upon quoted prices, if available. Where observable quoted prices are available in an active market, the security is classified as Level 1 in the fair value hierarchy. Classes of instruments that are valued using this market approach include debt securities issued by the U.S. Treasury. If quoted market prices are not available, the fair value for the security is estimated under the market or income approach using pricing models. These instruments are classified as Level 2 because they currently trade in active markets and the inputs to the valuations are observable. The pricing models used to value securities generally begin with market prices (or rates) for similar instruments and make adjustments based on the characteristics of the instrument being valued. These adjustments reflect assumptions made regarding the sensitivity of each security’s value to changes in interest rates and prepayment speeds. Classes of instruments that are valued using this market approach include specified pool mortgage “pass-through” securities and other debt securities issued by U.S. government-sponsored entities and state and political subdivisions. The pricing models used to value securities under the income approach generally begin with the contractual cash flows of each security and make adjustments based on forecasted prepayment speeds, default rates, and other market-observable information. The adjusted cash flows are then discounted at a rate derived from observed rates of return for comparable assets or liabilities that are traded in the market. Classes of instruments that are valued using this market approach include residential and commercial CMOs. A significant majority of the Company’s Level 1 and 2 debt securities are priced using an external pricing service. Citizens verifies the accuracy of the pricing provided by its primary outside pricing service on a quarterly basis. This process involves using a secondary external vendor to provide valuations for the Company’s securities portfolio for comparison purposes. Any valuation discrepancies beyond a certain threshold are researched and, if necessary, corroborated by an independent outside broker. In certain cases where there is limited activity or less transparency around inputs to the valuation model, securities are classified as Level 3. Mortgage Servicing Rights — Fair Value Method MSRs do not trade in an active market with readily observable prices. MSRs are classified as Level 3 since the valuation methodology utilizes significant unobservable inputs. The fair value was calculated using a discounted cash flow model which used assumptions, including weighted-average life, prepayment assumptions and weighted-average option adjusted spread. The underlying assumptions and estimated values are corroborated by values received from independent third parties based on their review of the servicing portfolio, and comparisons to market transactions. In addition, the MSR Policy is approved by the Asset Liability Committee. Refer to Note 7 for more information. Derivatives The vast majority of the Company’s derivatives portfolio is composed of “plain vanilla” interest rate swaps, which are traded in over-the-counter markets where quoted market prices are not readily available. For these interest rate derivatives, fair value is determined utilizing models that primarily use market observable inputs, such as swap rates and yield curves. The pricing models used to value interest rate swaps calculate the sum of each instrument’s fixed and variable cash flows, which are then discounted using an appropriate yield curve (i.e., LIBOR or Overnight Index Swap curve) to arrive at the fair value of each swap. The pricing models do not contain a high level of subjectivity as the methodologies used do not require significant judgment. Citizens also considers certain adjustments to the modeled price that market participants would make when pricing each instrument, including a credit valuation adjustment that reflects the credit quality of the swap counterparty. Citizens incorporates the effect of exposure to a particular counterparty’s credit by netting its derivative contracts with the available collateral and calculating a credit valuation adjustment on the basis of the net position with the counterparty where permitted. The determination of this adjustment requires judgment on behalf of Company management; however, the total amount of this portfolio-level adjustment is not material to the total fair value of the interest rate swaps in their entirety . Therefore, interest rate swaps are classified as Level 2 in the valuation hierarchy. The Company’s other derivatives include foreign exchange contracts. The fair value of foreign exchange derivatives uses the mid-point of daily quoted currency spot prices. A valuation model estimates fair value based on the quoted spot rates together with interest rate yield curves and forward currency rates. Since all of these inputs are observable in the market, foreign exchange derivatives are classified as Level 2 in the fair value hierarchy. Money Market Mutual Fund Investments Fair value is determined based upon unadjusted quoted market prices and is considered a Level 1 fair value measurement. The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2019 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $20,537 $— $20,537 $— State and political subdivisions 5 — 5 — U.S. Treasury and other 71 71 — — Total debt securities available for sale 20,613 71 20,542 — Loans held for sale, at fair value: Residential loans held for sale 1,778 — 1,778 — Commercial loans held for sale 168 — 168 — Total loans held for sale, at fair value 1,946 — 1,946 — Mortgage servicing rights 642 — — 642 Derivative assets: Interest rate contracts 773 — 773 — Foreign exchange contracts 174 — 174 — Other contracts 37 — 18 19 Total derivative assets 984 — 965 19 Equity securities, at fair value: Money market mutual fund investments 47 47 — — Total equity securities, at fair value 47 47 — — Total assets $24,232 $118 $23,453 $661 Derivative liabilities: Interest rate contracts $133 $— $133 $— Foreign exchange contracts 166 — 166 — Other contracts 23 — 23 — Total derivative liabilities 322 — 322 — Total liabilities $322 $— $322 $— The following table presents assets and liabilities measured at fair value including gross derivative assets and liabilities on a recurring basis at December 31, 2018 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $19,866 $— $19,866 $— State and political subdivisions 5 — 5 — U.S. Treasury and other 24 24 — — Total debt securities available for sale 19,895 24 19,871 — Loans held for sale, at fair value: Residential loans held for sale 967 — 967 — Commercial loans held for sale 252 — 252 — Total loans held for sale, at fair value 1,219 — 1,219 — Mortgage servicing rights 600 — — 600 Derivative assets: Interest rate contracts 306 — 306 — Foreign exchange contracts 129 — 129 — Other contracts 14 — 14 — Total derivative assets 449 — 449 — Equity securities, at fair value: Money market mutual fund investments 181 181 — — Total equity securities, at fair value 181 181 — — Total assets $22,344 $205 $21,539 $600 Derivative liabilities: Interest rate contracts $277 $— $277 $— Foreign exchange contracts 113 — 113 — Other contracts 25 — 25 — Total derivative liabilities 415 — 415 — Total liabilities $415 $— $415 $— The following table present a rollforward of the balance sheet amounts for assets measured at fair value on a recurring basis and classified as Level 3 for the year ended December 31, 2019 . There were no other derivative contracts measured at fair value on a recurring basis and classified as Level 3 for the year ended December 31, 2018 . For the Year Ended December 31, 2019 2018 (in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Beginning balance $600 $— $— Acquired MSRs — — 590 Issuances 270 144 73 Settlements (1) (119 ) (161 ) (32 ) Changes in fair value during the period recognized in earnings (2) (109 ) 17 (31 ) Transfers from Level 2 to Level 3 (3) — 18 — Ending balance $642 $19 $600 (1) Represents changes in value of the MSRs due to i) passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and ii) loans that paid off during the period. (2) Represents changes in value primarily driven by market conditions. These changes are recorded in mortgage banking fees in the Consolidated Statements of Operations. (3) Reflects changes in the significance of unobservable inputs on derivative contracts associated with mortgage origination costs. Nonrecurring Fair Value Measurements Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include MSRs accounted for by the amortization method and loan impairments for certain loans and leases. The following valuation techniques are utilized to measure significant assets for which the Company utilizes fair value on a nonrecurring basis: Impaired Loans The carrying amount of collateral-dependent impaired loans is compared to the appraised value of the collateral less costs to dispose and is classified as Level 2. Any excess of carrying amount over the appraised value is charged to the ALLL. Mortgage Servicing Rights — Amortization Method MSRs do not trade in an active market with readily observable prices. MSRs are classified as Level 3 since the valuation methodology utilizes significant unobservable inputs. The fair value was calculated using a discounted cash flow model, which used assumptions, including weighted-average life, weighted-average constant prepayment rate and weighted-average discount rate. Refer to Note 7 for more information. Leased assets The fair value of assets under operating leases is determined using collateral specific pricing digests, external appraisals, broker opinions, recent sales data from industry equipment dealers, and discounted cash flows derived from the underlying lease agreement. As market data for similar assets and lease agreements is available and used in the valuation, these assets are classified as Level 2 fair value measurement. The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Year Ended December 31, (in millions) 2019 2018 2017 Impaired collateral-dependent loans ($34 ) ($13 ) ($35 ) MSRs (1 ) 3 2 Leased assets (12 ) (7 ) (15 ) The following table presents assets and liabilities measured at fair value on a nonrecurring basis: December 31, 2019 December 31, 2018 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $312 $— $312 $— $338 $— $338 $— MSRs 193 — — 193 243 — — 243 Leased assets 57 — 57 — 92 — 92 — Disclosures about Fair Value of Financial Instruments The following table presents the estimated fair value for financial instruments not recorded at fair value in the Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions: December 31, 2019 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Securities held to maturity $3,202 $3,242 $— $— $3,202 $3,242 $— $— Equity securities, at cost 807 807 — — 807 807 — — Other loans held for sale 1,384 1,384 — — — — 1,384 1,384 Loans and leases 119,088 119,792 — — 312 312 118,776 119,480 Financial liabilities: Deposits 125,313 125,340 — — 125,313 125,340 — — Federal funds purchased and securities sold under agreements to repurchase 265 265 — — 265 265 — — Other short-term borrowed funds 9 9 — — 9 9 — — Long-term borrowed funds 14,047 14,228 — — 14,047 14,228 — — December 31, 2018 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Securities held to maturity $4,165 $4,041 $— $— $4,165 $4,041 $— $— Equity securities, at cost 834 834 — — 834 834 — — Other loans held for sale 101 101 — — — — 101 101 Loans and leases 116,660 116,627 — — 338 338 116,322 116,289 Financial liabilities: Deposits 119,575 119,503 — — 119,575 119,503 — — Federal funds purchased and securities sold under agreements to repurchase 1,156 1,156 — — 1,156 1,156 — — Other short-term borrowed funds 161 161 — — 161 161 — — Long-term borrowed funds 15,925 15,877 — — 15,925 15,877 — — |
NONINTEREST INCOME
NONINTEREST INCOME | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
NONINTEREST INCOME | NOTE 20 - NONINTEREST INCOME The following table presents noninterest income, segregated between revenue from contracts with customers and revenue from other sources: December 31, (in millions) 2019 2018 Revenue from contracts with customers $1,172 $1,119 Revenue from other sources 705 477 Noninterest income $1,877 $1,596 Revenues from Contracts with Customers Citizens recognizes revenue from contracts with customers in the amount of consideration it expects to receive upon the transfer of control of a good or service. The timing of recognition is dependent on whether the Company satisfies a performance obligation by transferring control of the product or service to a customer over time or at a point in time. Judgments are made in the recognition of income including the timing of satisfaction of performance obligations and determination of the transaction price. The following table presents the components of revenue from contracts with customers disaggregated by revenue stream and business operating segment: Year Ended December 31, 2019 Year Ended December 31, 2018 (in millions) Consumer Banking Commercial Banking Consolidated (1) Consumer Banking Commercial Banking Consolidated (1) Service charges and fees $400 $103 $503 $408 $105 $513 Card fees 215 39 254 207 37 244 Capital markets fees — 202 202 — 181 181 Trust and investment services fees 202 — 202 171 — 171 Other banking fees 1 10 11 — 10 10 Total revenue from contracts with customers $818 $354 $1,172 $786 $333 $1,119 (1) There is no revenue from contracts with customers included in Other non-segment operations. Citizens does not have any material contract assets, liabilities, or other receivables recorded on its Consolidated Balance Sheets related to revenues from contracts with customers as of December 31, 2019 . Citizens has elected the practical expedient to exclude disclosure of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognized revenue at the amount to which the Company has the right to invoice for services performed. A description of the above components of revenue from contracts with customers is presented below: Service Charges and Fees Service charges and fees include fees earned from deposit products in lieu of compensating balances, service charges for transactions performed upon depositors’ request, as well as fees earned from performing cash management activities. Service charges on deposit products are recognized over the period in which the related service is provided, typically monthly. Service fees are recognized at a point in time upon completion of the requested service transaction. Fees on cash management products are recognized over time (typically monthly) as services are provided. Card Fees Card fees include interchange income from credit and debit card transactions and are recognized at a point in time upon settlement by the association network. Interchange rates are generally set by the association network based on purchase volume and other factors. Other card-related fees are recognized at a point in time upon completion of the transaction. Costs related to card rewards programs are recognized in current earnings as the rewards are earned by the customer and are presented as a reduction to card fees on the Consolidated Statements of Operations. Capital Markets Fees Capital markets fees include fees received from leading or participating in loan syndications, underwriting services and advisory fees. Loan syndication and underwriting fees are recognized as revenue at a point in time when the Company has rendered all services to, and is entitled to collect the fee from, the borrower or the issuer, and there are no other contingencies associated with the fee. Underwriting expenses passed through from the lead underwriter are recognized within other operating expense on the Consolidated Statements of Operations. Advisory fees for merger and acquisitions are recognized over time, while valuation services and fairness opinions are recognized at a point in time upon completion of the advisory service. Trust and Investment Services Fees Trust and investment services fees include fees from investment management services and brokerage services. Fees from investment management services are based on asset market values and are recognized over the period in which the related service is provided. Brokerage services include custody fees, commission income, trailing commissions and other investment securities. Custody fees are recognized on a monthly basis for customers that are assessed custody fees. Commission income is recognized at a point in time on trade date. Trailing commissions such as 12b-1 fees, insurance renewal income, and income based on asset or investment levels in future periods are recognized at a point in time when the asset balance is known, or the renewal occurs and the income is no longer constrained. For the years ended December 31, 2019 and 2018, the Company recognized trailing commissions of $15 million and $16 million , respectively, related to services provided in previous reporting periods. Fees from other investment services are recognized at a point in time upon completion of the service. O ther Banking Fees Other banking fees include fees for various transactional banking activities such as letter of credit fees, foreign wire transfers and other transactional services. These fees are recognized in a manner that reflects the timing of when transactions occur and as services are provided. Revenue from Other Sources Letter of Credit and Loan Fees Letter of credit and loan fees primarily includes fees received related to letter of credit agreements as well as loan fees received from lending activities that are not deferrable. These fees are generally recognized upon execution of the contract. Foreign Exchange and Interest Rate Products Foreign exchange and interest rate products primarily includes the fees received from foreign exchange and interest rate derivative contracts executed with customers to meet their hedging and financing needs. These fees are generally recognized upon execution of the contracts. Foreign exchange and interest rate products also include the mark-to-market gains and losses recognized on (i) these customer contracts and (ii) offsetting derivative contracts that are executed with external counterparties to hedge the foreign exchange and interest rate risk associated with the customer contracts. Mortgage Banking Fees Mortgage banking fees primarily include gains on sales of residential mortgages originated with the intent to sell and servicing fees on mortgages where the Company is the servicer. Mortgage banking fees also include valuation adjustments for mortgage loans held-for-sale that are measured at the lower of cost or fair value, as well as mortgage loans originated with the intent to sell that are measured at fair value under the fair value option. Changes in the value of MSRs are reported in mortgage fees and related income. For a further discussion of MSRs, see Note 8 . Net interest income from mortgage loans is recorded in interest income. Other Income Bank-owned life insurance is stated at its cash surrender value. Citizens is the beneficiary of the life insurance policies on current and former officers and selected employees of the Company. Net changes in the carrying amount of the cash surrender value are an adjustment of premiums paid in determining the expense or income to be recognized under the life insurance policy for the period. Year Ended December 31, (in millions) 2019 2018 2017 Bank-owned life insurance $55 $56 $54 |
OTHER OPERATING EXPENSE
OTHER OPERATING EXPENSE | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSE | NOTE 21 - OTHER OPERATING EXPENSE The following table presents the details of other operating expense: Year Ended December 31, (in millions) 2019 2018 2017 Promotional expense $112 $129 $105 Deposit insurance 62 104 137 Other 302 262 300 Other operating expense $476 $495 $542 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 22 - INCOME TAXES Citizens uses an asset and liability (balance sheet) approach for financial accounting and reporting of income taxes, resulting in two components of income tax expense: current and deferred. Current income tax expense approximates taxes to be paid or refunded for the current period. Deferred income tax expense results from changes in gross deferred tax assets and liabilities between periods. These gross deferred tax assets and liabilities represent changes in taxes expected to be paid in the future due to reversals of temporary differences between the bases of the assets and liabilities as measured under tax laws, and their bases reported in the Consolidated Financial Statements as measured under GAAP. Citizens also assesses the probability that the positions taken, or expected to be taken, in its income tax returns will be sustained by taxing authorities. A “more likely than not” (more than 50 percent) recognition threshold must be met before a tax benefit can be recognized. Tax positions that are more likely than not to be sustained are reflected in the Company’s Consolidated Financial Statements. The following table presents total income tax expense: Year Ended December 31, (in millions) 2019 2018 2017 Income tax expense $460 $462 $260 Tax effect of changes in OCI 225 (96 ) (7 ) Total comprehensive income tax expense $685 $366 $253 The following table presents the components of income tax expense: (in millions) Current Deferred Total Year Ended December 31, 2019 U.S. federal $323 $64 $387 State and local 73 — 73 Total $396 $64 $460 Year Ended December 31, 2018 U.S. federal $271 $90 $361 State and local 94 7 101 Total $365 $97 $462 Year Ended December 31, 2017 U.S. federal $376 ($142 ) $234 State and local 20 6 26 Total $396 ($136 ) $260 The following table presents a reconciliation between the U.S. federal income tax rate and the Company’s effective income tax rate: Year Ended December 31, 2019 2018 2017 (in millions, except ratio data) Amount Rate Amount Rate Amount Rate U.S. federal income tax expense and tax rate $473 21.0 % $459 21.0 % $669 35.0 % Increase (decrease) resulting from: Federal rate change — — (34 ) (1.6 ) (331 ) (17.3 ) State and local income taxes (net of federal benefit) 73 3.2 89 4.1 46 2.4 Bank-owned life insurance (12 ) (0.5 ) (12 ) (0.5 ) (19 ) (1.0 ) Tax-exempt interest (15 ) (0.7 ) (15 ) (0.7 ) (21 ) (1.1 ) Tax advantaged investments (including related credits) (50 ) (2.3 ) (44 ) (2.0 ) (51 ) (2.7 ) Other tax credits (10 ) (0.4 ) (8 ) (0.4 ) (3 ) (0.1 ) Adjustments for uncertain tax positions — — 1 0.1 (23 ) (1.2 ) Non-deductible FDIC premiums 13 0.6 21 1.0 — — Legacy tax matters (19 ) (0.8 ) — — — — Other 7 0.3 5 0.2 (7 ) (0.4 ) Total income tax expense and tax rate $460 20.4 % $462 21.2 % $260 13.6 % The following table presents the tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities: December 31, (in millions) 2019 2018 Deferred tax assets: Other comprehensive income $141 $366 Allowance for credit losses 315 308 State net operating loss carryforwards 62 90 Accrued expenses not currently deductible 24 36 Investment and other tax credit carryforwards 89 74 Fair value adjustments — 28 Total deferred tax assets 631 902 Valuation allowance (79 ) (110 ) Deferred tax assets, net of valuation allowance 552 792 Deferred tax liabilities: Leasing transactions 513 527 Amortization of intangibles 370 364 Depreciation 186 195 Pension and other employee compensation plans 124 127 Partnerships 71 51 Deferred Income 79 50 MSRs 75 51 Total deferred tax liabilities 1,418 1,365 Net deferred tax liability $866 $573 Deferred tax assets are recognized for net operating loss carryforwards and tax credit carryforwards. Valuation allowances are recorded as necessary to reduce deferred tax assets to the amounts that management concludes are more likely than not to be realized. At December 31, 2019 , the Company had state tax net operating loss carryforwards of $1.1 billion . Limitations on the ability to realize these carryforwards are reflected in the associated valuation allowance. At December 31, 2019 , the Company had a valuation allowance of $79 million against various deferred tax assets related to state net operating losses and state tax credits, as it is management’s current assessment that it is more likely than not that the Company will not recognize a portion of the deferred tax assets related to these items. The valuation allowance decreased $31 million during the year ended December 31, 2019 . Effective with the fiscal year ended September 30, 1997, the reserve method for bad debts was no longer permitted for tax purposes. The repeal of the reserve method required the recapture of the reserve balance in excess of certain base year reserve amounts attributable to years ended prior to 1988. At December 31, 2019 , the Company’s base year loan loss reserves attributable to years ended prior to 1988, for which no deferred income taxes have been provided, was $557 million . This base year reserve may become taxable if certain distributions are made with respect to the stock of the Company or if the Company ceases to qualify as a bank for tax purposes. No actions are planned that would cause this reserve to become wholly or partially taxable. Citizens files income tax returns in the U.S. federal jurisdiction and in various state and local jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal or state and local income tax examinations by major tax authorities for years before 2016. The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits: December 31, (in millions) 2019 2018 2017 Balance at the beginning of the year $8 $5 $42 Gross increase for tax positions related to current year — 3 — Gross decrease for tax positions related to prior years (2 ) — (27 ) Decrease for tax positions as a result of the lapse of the statutes of limitations (1 ) — (1 ) Decrease for tax positions related to settlements with taxing authorities — — (9 ) Balance at end of year $5 $8 $5 Tax positions are measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. Included in the total amount of unrecognized tax benefits at December 31, 2019 , are potential benefits of $5 million that, if recognized, would impact the effective tax rate. Citizens classifies interest and penalties related to unrecognized tax benefits as a component of income tax expense. There was no interest accrued through income tax expense during the years ended December 31, 2019 and 2018 . The Company released $8 million of accrued interest through income tax expense during the year ended December 31, 2017 . Citizens had approximately $1 million , $2 million , and $1 million accrued for the payment of interest at December 31, 2019 , 2018 , and 2017 , respectively. There were no amounts accrued for penalties as of December 31, 2019 , 2018 , and 2017 , and there were no penalties recognized during the years ended December 31, 2019 , 2018 , and 2017 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 23 - EARNINGS PER SHARE Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Net income available to common stockholders represents net income after preferred stock dividends, accretion of the discount on preferred stock issuances, and gains or losses from any repurchases of preferred stock. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period, plus potential dilutive shares such as share-based payment awards and warrants using the treasury stock method. Year Ended December 31, (in millions, except share and per-share data) 2019 2018 2017 Numerator (basic and diluted): Net income $1,791 $1,721 $1,652 Less: Preferred stock dividends 73 29 14 Net income available to common stockholders $1,718 $1,692 $1,638 Denominator: Weighted-average common shares outstanding - basic 449,731,453 478,822,072 502,157,440 Dilutive common shares: share-based awards 1,482,248 1,608,669 1,527,651 Weighted-average common shares outstanding - diluted 451,213,701 480,430,741 503,685,091 Earnings per common share: Basic $3.82 $3.54 $3.26 Diluted (1) 3.81 3.52 3.25 (1) Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive. Excluded from the computation of diluted EPS were weighted average antidilutive shares totaling 783 and 533 for the years ended December 31, 2019 and 2017 . There were no potentially dilutive shares to exclude from the calculation for the year ended December 31, 2018 . |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | NOTE 24 - REGULATORY MATTERS As a bank holding company, Citizens is subject to regulation and supervision by the FRB. Our banking subsidiary, CBNA, is a national banking association whose primary federal regulator is the OCC. Under the U.S. Basel III capital framework, the Company and CBNA must meet the following specific minimum requirements: CET1 capital ratio of 4.5% , tier 1 capital ratio of 6.0% , total capital ratio of 8.0% , and tier 1 leverage ratio of 4.0% . A CCB of 2.5% is imposed on top of each of the three minimum risk-weighted capital ratios listed above. In addition, the Company must not be subject to a written agreement, order or capital directive with any of its regulators. Failure to meet minimum capital requirements can result in the initiation of certain actions that, if undertaken, could have a material effect on the Company’s Consolidated Financial Statements. The following table presents the Company’s capital and capital ratios under U.S. Basel III Standardized rules. The Company has declared itself as an “AOCI opt-out” institution, which means the Company is not required to recognize in regulatory capital the impacts of net unrealized gains and losses included within AOCI for debt securities that are available for sale or held to maturity, accumulated net gains and losses on cash flow hedges and certain defined benefit pension plan assets. Actual Minimum Capital Adequacy (in millions, except ratio data) Amount Ratio Amount Ratio (1) As of December 31, 2019 CET1 capital $14,304 10.0 $10,004 7.000 % Tier 1 capital 15,874 11.1 12,148 8.500 Total capital 18,542 13.0 15,006 10.500 Tier 1 leverage 15,874 10.0 6,351 4.000 As of December 31, 2018 CET1 capital $14,485 10.6 % $8,683 6.375 % Tier 1 capital 15,325 11.3 10,726 7.875 Total capital 18,157 13.3 13,450 9.875 Tier 1 leverage 15,325 10.0 6,121 4.000 (1) “ Minimum Capital ratio” includes capital conservation buffer of 2.500% for 2019 and 1.875% for 2018; N/A to Tier 1 leverage. Under the FRB’s Capital Plan Rule, the Company may only make capital distributions, including payment of dividends and share repurchases, in accordance with a capital plan that has been reviewed by the FRB with no objection or as otherwise authorized by the FRB. The timing and exact amount of future dividends and share repurchases will depend on various factors, including the Company’s capital position, financial performance and market conditions. All future capital distributions are subject to consideration and approval by the Board of Directors prior to execution. See Note 16 for more information regarding the Company’s preferred stock issuances, common stock repurchases, and dividends. Dividends payable by CBNA, as a national bank subsidiary, are limited to the lesser of the amount calculated under a “recent earnings” test and an “undivided profits” test. Under the recent earnings test, a dividend may not be paid if the total of all dividends declared by a bank in any calendar year is in excess of the current year’s net income combined with the retained net income of the two preceding years, less any required transfers to surplus, unless the national bank obtains the approval of the OCC. Under the undivided profits test, a dividend may not be paid in excess of the entity’s “undivided profits” (generally, accumulated net profits that have not been paid out as dividends or transferred to surplus). Federal bank regulatory agencies have issued policy statements which provide that FDIC-insured depository institutions and their holding companies should generally pay dividends only out of their current operating earnings. |
BUSINESS OPERATING SEGMENTS
BUSINESS OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS OPERATING SEGMENTS | NOTE 25 - BUSINESS OPERATING SEGMENTS Citizens is managed by its Chief Executive Officer on a segment basis. The Company’s two business operating segments are Consumer Banking and Commercial Banking. The business segments are determined based on the products and services provided, or the type of customer served. Each segment has a segment head who reports directly to the Chief Executive Officer. The Chief Executive Officer has final authority over resource allocation decisions and performance assessment. The business segments reflect this management structure and the manner in which financial information is currently evaluated by the Chief Executive Officer. Reportable Segments Segment results are determined based upon the Company’s management reporting system, which assigns balance sheet and statement of operations items to each of the business segments. The process is designed around the Company’s organizational and management structure and accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions. A description of each reportable segment and table of financial results is presented below: Consumer Banking The Consumer Banking segment focuses on retail customers and small businesses with annual revenues of up to $ 25 million . It offers traditional banking products and services, including checking, savings, home loans, education loans, credit cards, business loans, and unsecured product finance and personal loans in addition to financial management services. It also operates an indirect auto financing business, providing financing for both new and used vehicles through auto dealerships. The segment’s distribution channels include a branch network, ATMs and a work force of experienced specialists ranging from financial consultants, mortgage loan officers and business banking officers to private bankers. The Company’s Consumer Banking value proposition is based on providing simple, easy to understand product offerings and a convenient banking experience with a more personalized approach. Commercial Banking The Commercial Banking segment primarily targets companies with annual revenues from $25 million to $2.5 billion and provides a full complement of financial products and solutions, including loans, leases, trade financing, deposits, cash management, commercial cards, foreign exchange, interest rate risk management, corporate finance and capital markets advisory capabilities. It focuses on middle-market companies, large corporations and institutions and has dedicated teams with industry expertise in government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity and sponsor finance. While the segment’s business development efforts are predominantly focused in the Company’s footprint, some of its specialized industry businesses also operate selectively on a national basis (such as healthcare, asset finance and franchise finance). A key component of Commercial Banking’s growth strategy is to bring ideas to clients that help their businesses thrive, and in doing so, expand the loan portfolio and ancillary product sales. Non-segment Operations Other Non-segment operations are classified as Other, which includes corporate functions, the Treasury function, the securities portfolio, wholesale funding activities, intangible assets, community development, non-core assets, and other unallocated assets, liabilities, capital, revenues, provision for credit losses, and expenses including income tax expense. In addition to non-segment operations, Other includes goodwill and any associated goodwill impairment charges. For impairment testing purposes, the Company assigns goodwill to its Consumer Banking and Commercial Banking reporting units. As of and for the Year Ended December 31, 2019 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $3,182 $1,466 ($34 ) $4,614 Noninterest income 1,156 607 114 1,877 Total revenue 4,338 2,073 80 6,491 Noninterest expense 2,851 858 138 3,847 Profit before provision for credit losses 1,487 1,215 (58 ) 2,644 Provision for credit losses 325 97 (29 ) 393 Income (loss) before income tax expense (benefit) 1,162 1,118 (29 ) 2,251 Income tax expense (benefit) 287 248 (75 ) 460 Net income $875 $870 $46 $1,791 Total average assets $66,240 $55,947 $39,989 $162,176 As of and for the Year Ended December 31, 2018 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $3,064 $1,497 ($29 ) $4,532 Noninterest income 973 545 78 1,596 Total revenue 4,037 2,042 49 6,128 Noninterest expense 2,723 813 83 3,619 Profit before provision for credit losses 1,314 1,229 (34 ) 2,509 Provision for credit losses 289 26 11 326 Income (loss) before income tax expense (benefit) 1,025 1,203 (45 ) 2,183 Income tax expense (benefit) 258 276 (72 ) 462 Net income $767 $927 $27 $1,721 Total average assets $62,444 $52,362 $39,747 $154,553 As of and for the Year Ended December 31, 2017 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,651 $1,411 $111 $4,173 Noninterest income 905 538 91 1,534 Total revenue 3,556 1,949 202 5,707 Noninterest expense 2,593 772 109 3,474 Profit before provision for credit losses 963 1,177 93 2,233 Provision for credit losses 265 19 37 321 Income before income tax expense (benefit) 698 1,158 56 1,912 Income tax expense (benefit) 246 384 (370 ) 260 Net income $452 $774 $426 $1,652 Total average assets $59,714 $49,747 $40,492 $149,953 Management accounting practices utilized by the Company as the basis of presentation for segment results include the following: FTP adjustments Citizens utilizes an FTP system to eliminate the effect of interest rate risk from the segments’ net interest income because such risk is centrally managed within the Treasury function. The FTP system credits (or charges) the segments with the economic value of the funds created (or used) by the segments. The FTP system provides a funds credit for sources of funds and a funds charge for the use of funds by each segment. The sum of the interest income/expense and FTP charges/credits for each segment is its designated net interest income. The variance between the Company’s cumulative FTP charges and cumulative FTP credits is offset in Other. Citizens periodically evaluates and refines its methodologies used to measure financial performance of its business operating segments. Provision for credit losses allocations Provision for credit losses is allocated to each business segment based on actual net charge-offs recognized by the business segment. The difference between the consolidated provision for credit losses and the business segments’ net charge-offs is reflected in Other. Income tax allocations Income taxes are assessed to each line of business at a standard tax rate with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Other. Expense allocations Noninterest expenses incurred by centrally managed operations or business lines that directly support another business line’s operations are charged to the applicable business line based on its utilization of those services. Goodwill For impairment testing purposes, the Company assigns goodwill to its Consumer Banking and Commercial Banking reporting units. For management reporting purposes, the Company presents the goodwill balance (and any related impairment charges) in Other. |
PARENT COMPANY FINANCIALS
PARENT COMPANY FINANCIALS | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY FINANCIALS | NOTE 26 - PARENT COMPANY FINANCIALS Condensed Statements of Operations Year Ended December 31, (in millions) 2019 2018 2017 OPERATING INCOME: Income from consolidated subsidiaries and excluding equity in undistributed earnings: Dividends from banking subsidiaries $1,130 $1,650 $1,055 Interest 48 46 43 Management and service fees 42 22 31 Income from nonbank subsidiaries and excluding equity in undistributed earnings: Dividends from nonbank subsidiaries 8 5 4 Interest 4 2 1 Equity securities gains — — 1 All other operating income 1 1 1 Total operating income 1,233 1,726 1,136 OPERATING EXPENSE: Salaries and employee benefits 35 25 40 Interest expense 87 89 97 All other expenses 27 23 22 Total operating expense 149 137 159 Income before taxes and undistributed income 1,084 1,589 977 Income taxes (10 ) (13 ) (10 ) Income before undistributed earnings of subsidiaries 1,094 1,602 987 Equity in undistributed earnings of subsidiaries: Bank 682 109 655 Nonbank 15 10 10 Net income $1,791 $1,721 $1,652 Other comprehensive income (loss), net of income taxes: Net pension plan activity arising during the period ($5 ) $5 ($1 ) Net unrealized derivative instrument gains arising during the period 2 2 1 Other comprehensive (loss) income activity of the Parent Company, net of income taxes (3 ) 7 — Other comprehensive income (loss) activity of Bank subsidiaries, net of income taxes 683 (283 ) (7 ) Total other comprehensive income (loss), net of income taxes 680 (276 ) (7 ) Total comprehensive income $2,471 $1,445 $1,645 In accordance with federal and state banking regulations, dividends paid by CBNA to the Company are subject to certain limitations, see Note 24 for more information. Additionally, see Note 16 for more information regarding the Company’s common and preferred stock dividends. Condensed Balance Sheets (in millions) December 31, 2019 December 31, 2018 ASSETS: Cash and due from banks $1,418 $961 Loans and advances to: Bank subsidiaries 1,146 1,158 Nonbank subsidiaries 120 70 Investments in subsidiaries: Bank subsidiaries 21,973 20,590 Nonbank subsidiaries 99 83 Other assets 127 117 TOTAL ASSETS $24,883 $22,979 LIABILITIES: Long-term borrowed funds due to unaffiliated companies $2,485 $1,987 Other liabilities 197 175 TOTAL LIABILITIES 2,682 2,162 TOTAL STOCKHOLDERS’ EQUITY 22,201 20,817 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $24,883 $22,979 Condensed Cash Flow Statements Year Ended December 31, (in millions) 2019 2018 2017 OPERATING ACTIVITIES Net income $1,791 $1,721 $1,652 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes (8 ) 17 (11 ) Gain on sales of assets — — (1 ) Equity in undistributed earnings of subsidiaries (697 ) (120 ) (665 ) Increase in other liabilities 50 11 99 Decrease (increase) in other assets 7 (7 ) 5 Other operating, net 58 40 (1 ) Net cash provided by operating activities 1,201 1,662 1,078 INVESTING ACTIVITIES Investments in and advances to subsidiaries (105 ) — (230 ) Repayment of investments in and advances to subsidiaries 55 — 167 Other investing, net (1 ) (1 ) (1 ) Net cash used by investing activities (51 ) (1 ) (64 ) FINANCING ACTIVITIES Proceeds from issuance of long-term borrowed funds 500 — — Repayments of long-term borrowed funds — (333 ) — Proceeds from issuance of common stock — — 34 Treasury stock purchased (1,220 ) (1,025 ) (820 ) Net proceeds from issuance of preferred stock 730 593 — Dividends declared and paid to common stockholders (617 ) (471 ) (322 ) Dividends declared and paid to preferred stockholders (65 ) (14 ) (14 ) Other financing, net (21 ) (13 ) — Net cash used by financing activities (693 ) (1,263 ) (1,122 ) Increase (decrease) in cash and due from banks 457 398 (108 ) Cash and due from banks at beginning of year 961 563 671 Cash and due from banks at end of year $1,418 $961 $563 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The Consolidated Financial Statements include the accounts of Citizens and subsidiaries in which Citizens has a controlling financial interest. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements to be consolidated as a variable interest entity. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the ACL and the fair value of MSRs. |
Accounting and Reporting Developments | Accounting Pronouncements Adopted in 2019 Pronouncement Summary of Guidance Effects on Financial Statements Derivatives and Hedging Issued August 2017 • Reduces the complexity and operational burdens of the current hedge accounting model and portrays more clearly the effects of hedge accounting in the financial statements. • Modifies current requirements to facilitate the application of hedge accounting to partial-term hedges, hedges of prepayable financial instruments, and other strategies. Adoption of these optional changes would occur on a prospective basis. • Requires the effects of fair value hedges to be classified in the same income statement line as the earnings effect of the hedged item. Adoption of this change will occur on a prospective basis. • Requires all effects of cash flow hedges to be deferred in other comprehensive income until the hedged cash flows affect earnings. Periodic hedge ineffectiveness will no longer be recognized in earnings. Adoption of this change will occur on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. • The Company adopted the new standard on January 1, 2019 under the modified retrospective method. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. • Required disclosures are included in Note 13. Leases Issued February 2016 • Requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with a lease term of greater than one year. • Requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests. • Requires that for finance leases, a lessee recognize interest expense on the lease liability separately from the amortization of the right-of-use asset in the Consolidated Statements of Operations, while for operating leases, such amounts should be recognized as a combined expense. • Requires expanded disclosures about the nature and terms of lease agreements. • Provides the option to adopt using either a modified cumulative-effect approach wherein the guidance is applied to all periods presented, or through a cumulative-effect adjustment beginning in the period of adoption. • Requires companies with land easements to assess whether the easement meets the definition of a lease before applying other accounting guidance. • The Company adopted the new standard under the modified retrospective approach on January 1, 2019, which is applicable to both its leasing finance business as well as property and equipment leases in which Citizens is lessee. • Adoption resulted in a cumulative-effect adjustment of $12 million, net of taxes, to retained earnings related to leases in which Citizens is lessee. • Adoption resulted in the recognition of a right-of-use asset and corresponding lease liability of $734 million and $749 million, respectively in its Consolidated Balance Sheet for non-cancelable operating lease agreements. • Required lessor disclosures are included in Note 4 and required lessee disclosures are included in Note 8. Implementation Costs Incurred in a Cloud Computing Arrangement Issued August 2018 • Requires implementation costs incurred in a cloud computing arrangement that is a service contract be deferred and recognized over the term of the arrangement if those costs would be capitalized in a software licensing arrangement. • Requires amortization expense be presented in the same income statement line item as the related hosting service arrangement expense. • Permits adoption prospectively for all implementation costs incurred after adoption or retrospectively through a cumulative-effect adjustment as of the beginning of the first period presented. • The Company prospectively adopted the new standard on January 1, 2019. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Accounting Pronouncements Pending Adoption Pronouncement Summary of Guidance Effects on Financial Statements Financial Instruments - Credit Losses Issued June 2016 • Required effective date: January 1, 2020. • Replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost (including securities HTM), which will reflect management’s estimate of credit losses over the full remaining expected life of the financial assets. • Amends existing impairment guidance for securities AFS to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • Requires a cumulative-effect adjustment to retained earnings, net of taxes, as of the beginning of the reporting period of adoption. • Requires enhanced credit quality disclosures including disaggregation of credit quality indicators by vintage. • The Company adopted the new standard on January 1, 2020, retrospectively for loans and leases and HTM securities and prospectively for AFS securities. • To estimate the ACL under CECL, Citizens uses models and other estimation techniques that are sensitive to changes in forecasted economic conditions. The Company applies qualitative factors related to idiosyncratic risk factors, changes in current economic conditions that may not be adequately reflected in quantitatively derived results, or other relevant factors to ensure the ACL reflects the Company’s best estimate of current expected credit losses. • The Company recognized an increase in the ACL upon adoption of approximately $450 million, based on a two-year reasonable and supportable forecast period, and a one-year reversion to long-term historical macroeconomic variables. The increase in ACL is primarily related to consumer loans, such as residential mortgage, unsecured and education, due to the requirement to estimate credit losses over the full remaining expected life of the asset. • Adoption of the new standard could produce higher volatility in the quarterly provision for credit losses than our current reserve process and could adversely impact the Company’s ongoing earnings. • The increase in ACL upon adoption reduced the Company’s CET1 capital ratio by 24 basis points on a fully-phased in basis. This capital impact will be phased in by 25% per year through January 1, 2023, which will impact 2020 by 6 basis points. • Based on the credit quality of our existing debt securities portfolio, the Company did not recognize an ACL for HTM and AFS debt securities upon adoption. |
Cash and Cash Equivalents | For the purposes of reporting cash flows, cash and cash equivalents have original maturities of three months or less and include cash and due from banks and interest-bearing cash and due from banks, primarily at the FRB. |
Securities | If the Company intends to sell an impaired security, or if it is more likely than not Citizens will be required to sell the security before recovery, the impairment loss recognized in current period earnings equals the difference between the amortized cost basis and the fair value of the security. If the Company does not intend to sell the impaired security, and it is not likely that the Company will be required to sell the impaired security, the other-than-temporary impairment write-down is separated into an amount representing the credit loss, which is recognized in current period earnings and the amount related to all other factors, which is recognized in OCI. Citizens reviews its securities for other-than-temporary impairment on a quarterly basis or more frequently if a potential loss triggering event occurs. The initial indicator of other-than-temporary impairment for both debt and equity securities is a decline in fair value below its recorded investment amount, as well as the severity and duration of the decline. For a security that has declined in fair value below the cost basis, the Company recognizes other-than-temporary impairment if management has the intent to sell the security, it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis, or the Company does not expect to recover the entire cost basis of the security. Investments include debt and equity securities and other investment securities. Citizens classifies debt securities as AFS, HTM, or trading based on management’s intent to hold to maturity at the time of purchase. Equity securities are recorded at fair value or at cost if there is not a readily determinable fair value. Debt securities that will be held for indefinite periods of time and may be sold in response to changes in interest rates, changes in prepayment risk, or other factors considered in managing the Company’s asset/liability strategy are classified as AFS and reported at fair value, with unrealized gains and losses reported in OCI, net of taxes, as a separate component of stockholders’ equity. Gains and losses on the sales of securities are recognized in noninterest income and are computed using the specific identification method. Debt securities for which the Company has the ability and intent to hold to maturity are classified as HTM and reported at amortized cost. Transfers of debt securities to the HTM classification are recognized at fair value at the date of transfer. For debt securities classified as AFS or HTM, interest income is recorded on the accrual basis including the amortization of premiums and the accretion of discounts. Premiums and discounts on debt securities are amortized or accreted using the effective interest method over the estimated lives of the individual securities. Citizens uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the effective interest method of income recognition. Estimates of future prepayments are based on the underlying collateral characteristics of each security and are derived from market sources. Judgment is involved in making determinations about prepayment expectations and in changing those expectations in response to changes in interest rates and macroeconomic conditions. The amortization of premiums and discounts associated with mortgage-backed securities may be significantly impacted by changes in prepayment assumptions. Securities classified as trading are bought and held principally for selling them in the near term and carried at fair value, with changes in fair value recognized in earnings. When applicable, realized and unrealized gains and losses on such assets are reported in noninterest income in the Consolidated Statements of Operations. Equity securities are primarily composed of FHLB stock and FRB stock (which are carried at cost) and money market mutual fund investments held by the Company’s broker-dealers (which are carried at fair value, with changes in fair value recognized in noninterest income). Equity securities that are carried at cost are reviewed at least annually for impairment, with valuation adjustments recognized in noninterest income. |
Loans and Leases | Loans held for investment are reported at the amount of their outstanding principal, net of charge-offs, unearned income, deferred loan origination fees and costs, and unamortized premiums or discounts on purchased loans. Deferred loan origination fees and costs and purchase premiums and discounts are amortized as an adjustment of yield over the life of the loan, using the effective interest method. Unamortized amounts remaining upon prepayment or sale are recorded as interest income or gain (loss) on sale, respectively. Credit card receivables include billed and uncollected interest and fees. Interest income on loans is determined using the effective interest method. This method calculates periodic interest income at a constant effective yield on the net investment in the loan, to provide a constant rate of return over the term. Loans accounted for using the fair value option are measured at fair value with corresponding changes recognized in noninterest income. Loan commitment fees for loans that are likely to be drawn down, and other credit related fees, are deferred (together with any incremental costs) and recognized as an adjustment to the effective interest rate over the loan term. When it is unlikely that a loan will be drawn down, the loan commitment fees are recognized over the commitment period on a straight-line basis. Loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, education, credit cards and other retail. |
Allowance for Credit Losses | Management’s estimate of probable losses in the Company’s loan and lease portfolios is recorded in the ALLL and the reserve for unfunded lending commitments, collectively the ACL. On a quarterly basis, Citizens evaluates the adequacy of the ALLL by performing reviews of certain individual loans and leases, analyzing changes in the composition, size and delinquency of the portfolio, reviewing previous loss experience and considering current and anticipated economic factors. The ALLL is established in accordance with the Company’s credit reserve policies, as approved by the Audit Committee of the Board of Directors. The Chief Financial Officer and Chief Risk Officer review the adequacy of the ALLL each quarter, together with risk management. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. The ALLL is maintained at a level that management considers reflective of probable losses, and is established through charges to earnings in the form of a provision for credit losses. The Company’s methodology for determining the qualitative component includes a statistical analysis of prior charge-off rates and a qualitative assessment of factors affecting the determination of incurred losses in the loan and lease portfolio. Such factors include trends in economic conditions, loan growth, back testing results, credit underwriting policy exceptions, regulatory and audit findings, and peer comparisons. Amounts determined to be uncollectible are deducted from the ALLL and subsequent recoveries, if any, are added to the ALLL. While management uses available information to estimate loan and lease losses, future additions to the ALLL may be necessary based on changes in economic conditions. There were no material changes in assumptions or estimation techniques compared with prior years that impacted the determination of the current year’s ALLL and the reserve for unfunded lending commitments. The evaluation of the adequacy of the commercial, commercial real estate, and leases ALLL and reserve for unfunded lending commitments is primarily based on risk rating models that assess probability of default, loss given default and exposure at default on an individual loan basis. The models are primarily driven by individual customer financial characteristics and are validated against historical experience. Additionally, qualitative factors are included in the risk rating models. After the aggregation of individual borrower incurred loss, additional overlays can be made based on back-testing against historical losses. For non-impaired retail loans, the ALLL is based upon an incurred loss model utilizing the probability of default, loss given default and exposure at default on an individual loan basis. When developing these factors, the Company may consider the loan product and collateral type, delinquency status, LTV ratio, lien position, borrower’s credit, age of the loan, geographic location and incurred loss period. Certain retail portfolios, including education, unsecured personal loans, SBO home equity loans and commercial credit card receivables utilize roll rate or vintage models to estimate the ALLL. For nonaccruing commercial and commercial real estate loans with an outstanding balance of $3 million or greater and for all commercial and commercial real estate TDRs (regardless of size), the Company conducts further analysis to determine the probable amount of loss and establishes a specific allowance for the loan, if appropriate. Citizens estimates the impairment amount by comparing the loan’s carrying amount to the estimated present value of its future cash flows, the fair value of its underlying collateral, or the loan’s observable market price. For collateral-dependent impaired commercial and commercial real estate loans, the excess of the Company’s recorded investment in the loan over the fair value of the collateral, less cost to sell, is charged off to the ALLL. For retail TDRs that are not collateral-dependent, allowances are developed using the present value of expected future cash flows compared to the recorded investment in the loans. Expected re-default factors are considered in this analysis. Retail TDRs that are deemed collateral-dependent are written down to fair market value less cost to sell. The fair value of collateral is periodically monitored subsequent to the modification. In addition to the ALLL, the Company also estimates probable credit losses associated with off-balance sheet financial instruments such as standby letters of credit, financial guarantees and binding unfunded loan commitments. Off-balance sheet financial instruments are subject to individual reviews and are analyzed and segregated by risk according to the Company’s internal risk rating scale. These risk classifications, in conjunction with historical loss experience, economic conditions and performance trends within specific portfolio segments, result in the estimate of the reserve for unfunded lending commitments. The ALLL and the reserve for unfunded lending commitments are reported on the Consolidated Balance Sheets in the allowance for loan and lease losses and in other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Operations as provision for credit losses. |
Loan Charge-Offs | Commercial loans are charged off when it is highly certain that a loss has been realized, including situations where a loan is determined to be both impaired and collateral-dependent. The determination of whether to recognize a charge-off involves many factors, including the prioritization of the Company’s claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity or the loan collateral. A loan is considered to be collateral-dependent when repayment of the loan is expected to be provided solely by the underlying collateral, rather than by cash flows from the borrower’s operations, income or other resources. Retail loans are generally fully charged-off or written down to the net realizable value of the underlying collateral, with an offset to the ALLL, upon reaching specified stages of delinquency in accordance with standards established by the FFIEC. Residential real estate loans, credit card loans and unsecured open end loans are generally charged off in the month in which the account becomes 180 days past due. Auto loans, education loans and unsecured closed end loans are generally charged off in the month in which the account becomes 120 days past due. Certain retail loans will be charged off or charged down to their net realizable value earlier than the FFIEC charge-off standards in the following circumstances: • Loans modified in a TDR that are determined to be collateral-dependent. • Loans to borrowers who have experienced an event (e.g., bankruptcy) that suggests a loss is either known or highly certain. ◦ Residential real estate and auto loans are charged down to the net realizable value within 60 days of receiving notification of the bankruptcy filing, or when the loan becomes 60 days past due if repayment is likely to occur. ◦ Credit card loans are fully charged off within 60 days of receiving notification of the bankruptcy filing or other event. ◦ Education loans are generally charged off when the loan becomes 60 days past due after receiving notification of a bankruptcy. • Auto loans are written down to net realizable value upon repossession of the collateral. |
Nonperforming Loans and Leases | Nonperforming loans and leases are those on which accrual of interest has been suspended. Loans (other than certain retail loans insured by U.S. government agencies) are placed on nonaccrual status and considered nonperforming when full payment of principal and interest is in doubt, unless the loan is both well secured and in the process of collection. When the Company places a loan on nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and amortization of any net deferred fees is suspended. Interest collections on nonaccruing loans and leases for which the ultimate collectability of principal is uncertain are generally applied to first reduce the carrying value of the asset. Otherwise, interest income may be recognized to the extent of the cash received. A loan or lease may be returned to accrual status if (i) principal and interest payments have been brought current, and the Company expects repayment of the remaining contractual principal and interest, (ii) the loan or lease has otherwise become well-secured and in the process of collection, or (iii) the borrower has been making regularly scheduled payments in full for the prior six months and the Company is reasonably assured that the loan or lease will be brought fully current within a reasonable period. Commercial loans, commercial real estate loans, and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Some of these loans and leases may remain on accrual status when contractually past due 90 days or more if management considers the loan collectible. Residential mortgages are generally placed on nonaccrual status when past due 120 days, or sooner if determined to be collateral-dependent, unless repayment of the loan is guaranteed by the Federal Housing Administration. Credit card balances are placed on nonaccrual status when past due 90 days or more and are restored to accruing status if they subsequently become less than 90 days past due. All other retail loans are generally placed on nonaccrual status when past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Loans less than 90 days past due may be placed on nonaccrual status upon the death of the borrower, fraud or bankruptcy. |
Impaired Loans | A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all of the contractual interest and principal payments as scheduled in the loan agreement. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. Impaired loans include nonaccruing larger balance (greater than $3 million carrying value), non-homogeneous commercial and commercial real estate loans, and restructured loans that are deemed TDRs. When a loan is identified as impaired, the impairment is measured on an individual loan level as the difference between the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount) and the present value of expected future cash flows, discounted at the loan’s effective interest rate. When collateral is the sole source of repayment for the impaired loan, rather than the borrower’s income or other sources of repayment, the Company charges down the loan to its net realizable value. |
Troubled Debt Restructuring | In situations where, for economic or legal reasons related to the borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. TDRs typically result from the Company’s loss mitigation efforts and are undertaken in order to improve the likelihood of recovery and continuity of the relationship with the borrower. The Company’s loan modifications are handled on a case-by-case basis and are negotiated to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. Concessions granted in TDRs for all classes of loans may include lowering the interest rate, forgiving a portion of principal, extending the loan term, lowering scheduled payments for a specified period of time, waiving or delaying a scheduled payment of principal or interest for other than an insignificant time period, or capitalizing past due amounts. A rate increase can be a concession if the increased rate is lower than a market rate for debt with risk similar to that of the restructured loan. TDRs for commercial loans may also involve creating a multiple note structure, accepting non-cash assets, accepting an equity interest, or receiving a performance-based fee. In some cases, a TDR may involve multiple concessions. The financial effects of TDRs for all loan classes may include lower income (either due to a lower interest rate or a delay in the timing of cash flows), larger loan loss provisions, and accelerated charge-offs if the modification renders the loan collateral-dependent. In some cases, interest income throughout the term of the loan may increase if, for example, the loan is extended or the interest rate is increased as a result of the restructuring. Retail and commercial loans whose contractual terms have been modified in a TDR and are current at the time of restructuring may remain on accrual status if there is demonstrated performance prior to the restructuring and payment in full under the restructured terms is expected. Retail loans that were discharged in bankruptcy and not reaffirmed by the borrower are deemed to be collateral-dependent TDRs and are generally charged off to the fair value of the collateral, less cost to sell, and less amounts recoverable under a government guarantee (if any). Cash receipts on nonaccruing impaired loans, including nonaccruing loans involved in TDRs, are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on these loans may be recognized on a cash basis if management believes that the remaining book value of the loan is realizable. Nonaccruing TDRs that meet the guidelines above for accrual status can be returned to accruing if supported by a well-documented evaluation of the borrowers’ financial condition, and if they have been current for at least six months. Because TDRs are impaired loans, Citizens measures impairment by comparing the present value of expected future cash flows, or when appropriate, the fair value of collateral less costs to sell, to the loan’s recorded investment. Any excess of recorded investment over the present value of expected future cash flows or collateral value is included in the ALLL. Any portion of the loan’s recorded investment the Company does not expect to collect as a result of the modification is charged off at the time of modification. For retail TDR accounts where the expected value of cash flows is utilized, any recorded investment in excess of the present value of expected cash flows is recognized by increasing the ALLL. For retail TDR accounts assessed based on the fair value of collateral, any portion of the loan’s recorded investment in excess of the collateral value less costs to sell is charged off at the time of modification or at the time of subsequent and regularly recurring valuations. |
Premises and Equipment | Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization have been computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the life of the lease (including renewal options if exercise of those options is reasonably assured) or their estimated useful life, whichever is shorter. Additions to premises and equipment are recorded at cost. The cost of major additions, improvements and betterments is capitalized. Normal repairs and maintenance and other costs that do not improve the property, extend the useful life or otherwise do not meet capitalization criteria are charged to expense as incurred. Citizens evaluates premises and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. |
Software | Costs related to computer software developed or obtained for internal use are capitalized if the projects improve functionality and provide long-term future operational benefits. Capitalized costs are amortized using the straight-line method over the asset’s expected useful life, based upon the basic pattern of consumption and economic benefits provided by the asset. Citizens begins to amortize the software when the asset (or identifiable component of the asset) is substantially complete and ready for its intended use. All other costs incurred in connection with an internal-use software project are expensed as incurred. Capitalized software is included in other assets on the Consolidated Balance Sheets. |
Mortgage Banking | Citizens accounts for derivatives in its mortgage banking operations at fair value on the Consolidated Balance Sheets as derivative assets or derivative liabilities, depending on whether the derivative had a positive (asset) or negative (liability) fair value as of the balance sheet date. The Company’s mortgage banking derivatives include commitments to originate mortgages held for sale, certain loan sale agreements, and other financial instruments that meet the definition of a derivative. Mortgage loans held for sale are accounted for at fair value on an individual loan basis. Changes in the fair value, and realized gains and losses on the sales of mortgage loans, are reported in mortgage banking income. |
Leases | The Company determines if an arrangement is a lease at inception and records a right-of-use asset and a corresponding lease liability. A right-of-use asset represents the value of the Company’s contractual right to use an underlying leased asset and a lease liability represents the Company’s contractual obligation to make payments on the same underlying leased asset. Operating and finance lease right-of-use assets and liabilities are recognized at commencement date based on the present value of the lease payments over the non-cancelable lease term. As most of the Company’s leases do not specify an implicit rate, the Company uses an incremental borrowing rate based on information available at the lease commencement date to determine the present value of the lease payments. The Company evaluates right-of-use assets for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. In its normal course of business, the Company leases both equipment and real estate, including office and branch space. Lease terms predominantly range from one year to ten years and may include options to extend the lease, terminate the lease, or purchase the underlying asset at the end of the lease. Certain lease agreements include rental payments based on an index or are adjusted periodically for inflation. The Company has lease agreements that contain lease and non-lease components and for certain real estate leases, these components are accounted for as a single lease component. Leases with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets and are recognized in occupancy expense in the Company’s Consolidated Statements of Operations on a straight-line basis over the remaining lease term. The Company may also enter into subleases with third parties for certain leased real estate properties that are no longer occupied. |
Goodwill | Goodwill is the purchase premium associated with the acquisition of a business and is assigned to the Company’s reporting units at the acquisition date. A reporting unit is a business operating segment or a component of a business operating segment. Citizens has identified and assigned goodwill to two reporting units - Consumer Banking and Commercial Banking - based upon reviews of the structure of the Company’s executive team and supporting functions, resource allocations and financial reporting processes. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. Goodwill is not amortized, but is subject to annual impairment tests. Citizens reviews goodwill for impairment annually as of October 31 st and in interim periods when events or changes indicate the carrying value of one or more reporting units may not be recoverable. The Company has the option of performing a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of each reporting unit is less than the carrying value. If it is more likely than not that the fair value exceeds the carrying value, then no further testing is necessary; otherwise, Citizens must perform a two-step quantitative assessment of goodwill. Citizens may elect to bypass the qualitative assessment and perform a two-step quantitative assessment. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is deemed to be not impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment. The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit, as determined in the first step, over the aggregate fair values of the individual assets, liabilities and identifiable intangible. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss that is recognized cannot exceed the amount of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Under the quantitative impairment assessment, the fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. Citizens relies on the income approach (discounted cash flow method) for determining fair value. Market and transaction approaches are used as benchmarks only to corroborate the value determined by the discounted cash flow method. Citizens relies on several assumptions when estimating the fair value of its reporting units using the discounted cash flow method. These assumptions include the discount rate, as well as projected loan loss, income tax and capital retention rates. Discount rates are estimated based on the Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, and size premium adjustments specific to a particular reporting unit. The discount rates are also calibrated on the assessment of the risks related to the projected cash flows of each reporting unit. Cash flow projections include estimates for projected loan loss, income tax and capital retention rates. Multi-year financial forecasts are developed for each reporting unit by considering several key business drivers such as new business initiatives, customer retention standards, market share changes, anticipated loan and deposit growth, forward interest rates, historical performance, and industry and economic trends, among other considerations. The long-term growth rate used in determining the terminal value of each reporting unit is estimated based on management’s assessment of the minimum expected terminal growth rate of each reporting unit, as well as broader economic considerations such as GDP and inflation. |
Variable Interest Entities | |
Interest-Bearing Deposits in Banks | Interest-bearing deposits in banks are carried at cost and include deposits that mature within one year. |
Derivatives | In the normal course of business, Citizens enters into a variety of derivative transactions to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates and foreign currency exchange rates. These transactions include interest rate swap contracts, interest rate options, foreign exchange contracts, residential loan commitment rate locks, interest rate future contracts, swaptions, forward commitments to sell to-be-announced mortgage securities (“TBAs”), forward sale contracts and purchase options. The Company does not use derivatives for speculative purposes. The Company’s derivative instruments are recognized on the Consolidated Balance Sheets in derivative assets and derivative liabilities at fair value. Information regarding the valuation methodology and inputs used to estimate the fair value of the Company’s derivative instruments is described in Note 19 . Derivative assets and derivative liabilities are netted by counterparty on the Consolidated Balance Sheets if a “right of setoff” has been established in a master netting agreement between the Company and the counterparty. This netted derivative asset or liability position is also netted against the fair value of any cash collateral that has been pledged or received in accordance with a master netting agreement. The Company’s derivative transactions are internally divided into three sub-groups: institutional, customer and residential loan. Certain derivative transactions within these sub-groups are designated as fair value or cash flow hedges, as described below: Derivatives Designated As Hedging Instruments The Company’s institutional derivatives qualify for hedge accounting treatment. The net interest accruals on interest rate swaps designated in a fair value or cash flow hedge relationship are treated as an adjustment to interest income or interest expense of the item being hedged. The Company formally documents at inception all hedging relationships, as well as risk management objectives and strategies for undertaking various accounting hedges. Additionally, the Company monitors the effectiveness of its hedge relationships during the duration of the hedge period. The methods utilized to assess hedge effectiveness vary based on the hedge relationship and the Company monitors each relationship to ensure that management’s initial intent continues to be satisfied. The Company discontinues hedge accounting treatment when it is determined that a derivative is not expected to be, or has ceased to be, effective as a hedge and subsequently reflects changes in the fair value of the derivative in earnings after termination of the hedge relationship. Fair Value Hedges In a fair value hedge, changes in the fair value of both the derivative instrument and the hedged asset or liability attributable to the risk being hedged are recognized in the same income statement line item in the Consolidated Statements of Operations when the changes in fair value occur. Citizens has outstanding interest rate swap agreements utilized to manage the interest rate exposure on its long-term borrowings, certain fixed rate residential mortgages and AFS debt securities. Certain fair value hedges have been designated as a last-of-layer hedge, which affords the Company the ability to execute a fair value hedge of the interest rate risk associated with a portfolio of similar prepayable assets whereby the last dollar amount estimated to remain in the portfolio of assets is identified as the hedged item. |
Employee Benefits | Costs under the Company’s Pension Plans are actuarially computed and include current service costs and amortization of prior service costs over the participants’ average future working lifetime. The actuarial cost method used in determining the net periodic pension cost is the projected unit method. |
Treasury Stock | Treasury Stock The purchase of the Company’s common stock is recorded at cost. At the date of retirement or subsequent reissuance, treasury stock is reduced by the cost of such stock on a first-in, first-out basis with differences recorded in additional paid-in capital or retained earnings, as applicable. |
Share-Based Compensation | Citizens measures compensation expense related to stock awards based upon the fair value of the awards on the grant date. Compensation expense is adjusted for forfeitures as they occur. The related expense is charged to earnings on a straight-line basis over the requisite service period (e.g., vesting period) of the award. With respect to performance-based stock awards, compensation expense is adjusted upward or downward based upon the probability of achievement of performance. Awards that continue to vest after retirement are expensed over the shorter of the period of time from grant date to the final vesting date or from the grant date to the date when an employee is retirement eligible. Awards granted to employees who are retirement eligible at the grant date are generally expensed immediately upon grant. |
Fair Value | Citizens measures fair value using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based upon quoted market prices in an active market, where available. If quoted prices are not available, observable market-based inputs or independently sourced parameters are used to develop fair value, whenever possible. Such inputs may include prices of similar assets or liabilities, yield curves, interest rates, prepayment speeds, and foreign exchange rates. A portion of the Company’s assets and liabilities are carried at fair value, including securities available for sale, derivative instruments and other investment securities. In addition, the Company elects to account for its loans associated with its mortgage banking business and secondary loan trading desk at fair value. Citizens classifies its assets and liabilities that are carried at fair value in accordance with the three-level valuation hierarchy: • Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by market data for substantially the full term of the asset or liability. • Level 3. Unobservable inputs that are supported by little or no market information and that are significant to the fair value measurement. Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Levels 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. Citizens reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include MSRs accounted for by the amortization method and loan impairments for certain loans and leases. The following valuation techniques are utilized to measure significant assets for which the Company utilizes fair value on a nonrecurring basis: Impaired Loans The carrying amount of collateral-dependent impaired loans is compared to the appraised value of the collateral less costs to dispose and is classified as Level 2. Any excess of carrying amount over the appraised value is charged to the ALLL. Mortgage Servicing Rights — Amortization Method MSRs do not trade in an active market with readily observable prices. MSRs are classified as Level 3 since the valuation methodology utilizes significant unobservable inputs. The fair value was calculated using a discounted cash flow model, which used assumptions, including weighted-average life, weighted-average constant prepayment rate and weighted-average discount rate. Refer to Note 7 for more information. Leased assets The fair value of assets under operating leases is determined using collateral specific pricing digests, external appraisals, broker opinions, recent sales data from industry equipment dealers, and discounted cash flows derived from the underlying lease agreement. As market data for similar assets and lease agreements is available and used in the valuation, these assets are classified as Level 2 fair value measurement. |
Revenue from Contract with Customer | Revenues from Contracts with Customers Citizens recognizes revenue from contracts with customers in the amount of consideration it expects to receive upon the transfer of control of a good or service. The timing of recognition is dependent on whether the Company satisfies a performance obligation by transferring control of the product or service to a customer over time or at a point in time. Judgments are made in the recognition of income including the timing of satisfaction of performance obligations and determination of the transaction price. Service Charges and Fees Service charges and fees include fees earned from deposit products in lieu of compensating balances, service charges for transactions performed upon depositors’ request, as well as fees earned from performing cash management activities. Service charges on deposit products are recognized over the period in which the related service is provided, typically monthly. Service fees are recognized at a point in time upon completion of the requested service transaction. Fees on cash management products are recognized over time (typically monthly) as services are provided. Card Fees Card fees include interchange income from credit and debit card transactions and are recognized at a point in time upon settlement by the association network. Interchange rates are generally set by the association network based on purchase volume and other factors. Other card-related fees are recognized at a point in time upon completion of the transaction. Costs related to card rewards programs are recognized in current earnings as the rewards are earned by the customer and are presented as a reduction to card fees on the Consolidated Statements of Operations. Capital Markets Fees Capital markets fees include fees received from leading or participating in loan syndications, underwriting services and advisory fees. Loan syndication and underwriting fees are recognized as revenue at a point in time when the Company has rendered all services to, and is entitled to collect the fee from, the borrower or the issuer, and there are no other contingencies associated with the fee. Underwriting expenses passed through from the lead underwriter are recognized within other operating expense on the Consolidated Statements of Operations. Advisory fees for merger and acquisitions are recognized over time, while valuation services and fairness opinions are recognized at a point in time upon completion of the advisory service. Trust and Investment Services Fees Trust and investment services fees include fees from investment management services and brokerage services. Fees from investment management services are based on asset market values and are recognized over the period in which the related service is provided. Brokerage services include custody fees, commission income, trailing commissions and other investment securities. Custody fees are recognized on a monthly basis for customers that are assessed custody fees. Commission income is recognized at a point in time on trade date. Trailing commissions such as 12b-1 fees, insurance renewal income, and income based on asset or investment levels in future periods are recognized at a point in time when the asset balance is known, or the renewal occurs and the income is no longer constrained. For the years ended December 31, 2019 and 2018, the Company recognized trailing commissions of $15 million and $16 million , respectively, related to services provided in previous reporting periods. Fees from other investment services are recognized at a point in time upon completion of the service. O ther Banking Fees Other banking fees include fees for various transactional banking activities such as letter of credit fees, foreign wire transfers and other transactional services. These fees are recognized in a manner that reflects the timing of when transactions occur and as services are provided. Revenue from Other Sources Letter of Credit and Loan Fees Letter of credit and loan fees primarily includes fees received related to letter of credit agreements as well as loan fees received from lending activities that are not deferrable. These fees are generally recognized upon execution of the contract. Foreign Exchange and Interest Rate Products Foreign exchange and interest rate products primarily includes the fees received from foreign exchange and interest rate derivative contracts executed with customers to meet their hedging and financing needs. These fees are generally recognized upon execution of the contracts. Foreign exchange and interest rate products also include the mark-to-market gains and losses recognized on (i) these customer contracts and (ii) offsetting derivative contracts that are executed with external counterparties to hedge the foreign exchange and interest rate risk associated with the customer contracts. Mortgage Banking Fees Mortgage banking fees primarily include gains on sales of residential mortgages originated with the intent to sell and servicing fees on mortgages where the Company is the servicer. Mortgage banking fees also include valuation adjustments for mortgage loans held-for-sale that are measured at the lower of cost or fair value, as well as mortgage loans originated with the intent to sell that are measured at fair value under the fair value option. Changes in the value of MSRs are reported in mortgage fees and related income. For a further discussion of MSRs, see Note 8 . Net interest income from mortgage loans is recorded in interest income. Other Income |
Income Taxes | Citizens uses an asset and liability (balance sheet) approach for financial accounting and reporting of income taxes, resulting in two components of income tax expense: current and deferred. Current income tax expense approximates taxes to be paid or refunded for the current period. Deferred income tax expense results from changes in gross deferred tax assets and liabilities between periods. These gross deferred tax assets and liabilities represent changes in taxes expected to be paid in the future due to reversals of temporary differences between the bases of the assets and liabilities as measured under tax laws, and their bases reported in the Consolidated Financial Statements as measured under GAAP. Citizens also assesses the probability that the positions taken, or expected to be taken, in its income tax returns will be sustained by taxing authorities. A “more likely than not” (more than 50 percent) recognition threshold must be met before a tax benefit can be recognized. Tax positions that are more likely than not to be sustained are reflected in the Company’s Consolidated Financial Statements. Tax positions are measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. Deferred tax assets are recognized for net operating loss carryforwards and tax credit carryforwards. Valuation allowances are recorded as necessary to reduce deferred tax assets to the amounts that management concludes are more likely than not to be realized. |
Earnings Per Share | Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Net income available to common stockholders represents net income after preferred stock dividends, accretion of the discount on preferred stock issuances, and gains or losses from any repurchases of preferred stock. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period, plus potential dilutive shares such as share-based payment awards and warrants using the treasury stock method. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Accounting Pronouncements Adopted in 2019 Pronouncement Summary of Guidance Effects on Financial Statements Derivatives and Hedging Issued August 2017 • Reduces the complexity and operational burdens of the current hedge accounting model and portrays more clearly the effects of hedge accounting in the financial statements. • Modifies current requirements to facilitate the application of hedge accounting to partial-term hedges, hedges of prepayable financial instruments, and other strategies. Adoption of these optional changes would occur on a prospective basis. • Requires the effects of fair value hedges to be classified in the same income statement line as the earnings effect of the hedged item. Adoption of this change will occur on a prospective basis. • Requires all effects of cash flow hedges to be deferred in other comprehensive income until the hedged cash flows affect earnings. Periodic hedge ineffectiveness will no longer be recognized in earnings. Adoption of this change will occur on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. • The Company adopted the new standard on January 1, 2019 under the modified retrospective method. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. • Required disclosures are included in Note 13. Leases Issued February 2016 • Requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with a lease term of greater than one year. • Requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests. • Requires that for finance leases, a lessee recognize interest expense on the lease liability separately from the amortization of the right-of-use asset in the Consolidated Statements of Operations, while for operating leases, such amounts should be recognized as a combined expense. • Requires expanded disclosures about the nature and terms of lease agreements. • Provides the option to adopt using either a modified cumulative-effect approach wherein the guidance is applied to all periods presented, or through a cumulative-effect adjustment beginning in the period of adoption. • Requires companies with land easements to assess whether the easement meets the definition of a lease before applying other accounting guidance. • The Company adopted the new standard under the modified retrospective approach on January 1, 2019, which is applicable to both its leasing finance business as well as property and equipment leases in which Citizens is lessee. • Adoption resulted in a cumulative-effect adjustment of $12 million, net of taxes, to retained earnings related to leases in which Citizens is lessee. • Adoption resulted in the recognition of a right-of-use asset and corresponding lease liability of $734 million and $749 million, respectively in its Consolidated Balance Sheet for non-cancelable operating lease agreements. • Required lessor disclosures are included in Note 4 and required lessee disclosures are included in Note 8. Implementation Costs Incurred in a Cloud Computing Arrangement Issued August 2018 • Requires implementation costs incurred in a cloud computing arrangement that is a service contract be deferred and recognized over the term of the arrangement if those costs would be capitalized in a software licensing arrangement. • Requires amortization expense be presented in the same income statement line item as the related hosting service arrangement expense. • Permits adoption prospectively for all implementation costs incurred after adoption or retrospectively through a cumulative-effect adjustment as of the beginning of the first period presented. • The Company prospectively adopted the new standard on January 1, 2019. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Accounting Pronouncements Pending Adoption Pronouncement Summary of Guidance Effects on Financial Statements Financial Instruments - Credit Losses Issued June 2016 • Required effective date: January 1, 2020. • Replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost (including securities HTM), which will reflect management’s estimate of credit losses over the full remaining expected life of the financial assets. • Amends existing impairment guidance for securities AFS to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • Requires a cumulative-effect adjustment to retained earnings, net of taxes, as of the beginning of the reporting period of adoption. • Requires enhanced credit quality disclosures including disaggregation of credit quality indicators by vintage. • The Company adopted the new standard on January 1, 2020, retrospectively for loans and leases and HTM securities and prospectively for AFS securities. • To estimate the ACL under CECL, Citizens uses models and other estimation techniques that are sensitive to changes in forecasted economic conditions. The Company applies qualitative factors related to idiosyncratic risk factors, changes in current economic conditions that may not be adequately reflected in quantitatively derived results, or other relevant factors to ensure the ACL reflects the Company’s best estimate of current expected credit losses. • The Company recognized an increase in the ACL upon adoption of approximately $450 million, based on a two-year reasonable and supportable forecast period, and a one-year reversion to long-term historical macroeconomic variables. The increase in ACL is primarily related to consumer loans, such as residential mortgage, unsecured and education, due to the requirement to estimate credit losses over the full remaining expected life of the asset. • Adoption of the new standard could produce higher volatility in the quarterly provision for credit losses than our current reserve process and could adversely impact the Company’s ongoing earnings. • The increase in ACL upon adoption reduced the Company’s CET1 capital ratio by 24 basis points on a fully-phased in basis. This capital impact will be phased in by 25% per year through January 1, 2023, which will impact 2020 by 6 basis points. • Based on the credit quality of our existing debt securities portfolio, the Company did not recognize an ACL for HTM and AFS debt securities upon adoption. |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of securities held | The following table presents the major components of securities at amortized cost and fair value: December 31, 2019 December 31, 2018 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and other $71 $— $— $71 $24 $— $— $24 State and political subdivisions 5 — — 5 5 — — 5 Mortgage-backed securities, at fair value: Federal agencies and U.S. government sponsored entities 19,803 143 (71 ) 19,875 20,211 28 (605 ) 19,634 Other/non-agency 638 24 — 662 236 3 (7 ) 232 Total mortgage-backed securities, at fair value 20,441 167 (71 ) 20,537 20,447 31 (612 ) 19,866 Total debt securities available for sale, at fair value $20,517 $167 ($71 ) $20,613 $20,476 $31 ($612 ) $19,895 Federal agencies and U.S. government sponsored entities $3,202 $45 ($5 ) $3,242 $3,425 $— ($132 ) $3,293 Other/non-agency — — — — 740 8 — 748 Total mortgage-backed securities, at cost 3,202 45 (5 ) 3,242 4,165 8 (132 ) 4,041 Total debt securities held to maturity $3,202 $45 ($5 ) $3,242 $4,165 $8 ($132 ) $4,041 Money market mutual fund investments $47 $— $— $47 $181 $— $— $181 Total equity securities, at fair value $47 $— $— $47 $181 $— $— $181 Federal Reserve Bank stock $577 $— $— $577 $463 $— $— $463 Federal Home Loan Bank stock 222 — — 222 364 — — 364 Other equity securities 8 — — 8 7 — — 7 Total equity securities, at cost $807 $— $— $807 $834 $— $— $834 |
Schedule of investments classified by maturity date | The following table presents the amortized cost and fair value of debt securities by contractual maturity as of December 31, 2019 . Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties. Distribution of Maturities (in millions) 1 Year or Less 1-5 Years 5-10 Years After 10 Years Total Amortized cost: U.S. Treasury and other $71 $— $— $— $71 State and political subdivisions — — — 5 5 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 215 1,534 18,054 19,803 Other/non-agency — — — 638 638 Total debt securities available for sale 71 215 1,534 18,697 20,517 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,202 3,202 Other/non-agency — — — — — Total debt securities held to maturity — — — 3,202 3,202 Total amortized cost of debt securities $71 $215 $1,534 $21,899 $23,719 Fair value: U.S. Treasury and other $71 $— $— $— $71 State and political subdivisions — — — 5 5 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 217 1,553 18,105 19,875 Other/non-agency — — — 662 662 Total debt securities available for sale 71 217 1,553 18,772 20,613 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,242 3,242 Total debt securities held to maturity — — — 3,242 3,242 Total fair value of debt securities $71 $217 $1,553 $22,014 $23,855 |
Schedule of income recognized on investment securities | The following table presents realized gains and losses on securities: Year Ended December 31, (in millions) 2019 2018 2017 Gains on sale of debt securities (1) $41 $19 $11 Losses on sale of debt securities (16 ) — — Debt securities gains, net $25 $19 $11 Equity securities gains $— $— $1 (1) For the year ended December 31, 2019 , $6 million of gains on sale of debt securities were recognized in mortgage banking fees in the Consolidated Statements of Operations, as they related to AFS securities held as economic hedges of the value of the MSR portfolio recognized using the amortization method. |
Schedule of financial instruments owned and pledged as collateral | The following table presents the amortized cost and fair value of debt securities pledged: December 31, 2019 December 31, 2018 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $265 $266 $344 $338 Pledged against FHLB borrowed funds 638 662 745 752 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,670 3,672 3,592 3,460 |
Other than temporary impairment recognized in earnings | The following table presents the net securities impairment losses recognized in earnings: Year Ended December 31, (in millions) 2019 2018 2017 Other-than-temporary impairment: Total other-than-temporary impairment losses ($2 ) ($7 ) ($7 ) Portions of loss recognized in other comprehensive income (before taxes) — 4 — Net securities impairment losses recognized in earnings on debt securities ($2 ) ($3 ) ($7 ) |
Schedule of unrealized loss on investments | The following tables present mortgage-backed debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position: December 31, 2019 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities 106 $5,135 ($24 ) 120 $3,748 ($52 ) 226 $8,883 ($76 ) Other/non-agency — — — — — — — — — Total 106 $5,135 ($24 ) 120 $3,748 ($52 ) 226 $8,883 ($76 ) December 31, 2018 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Federal agencies and U.S. government sponsored entities 166 $4,881 ($89 ) 429 $15,124 ($648 ) 595 $20,005 ($737 ) Other/non-agency 10 139 (1 ) 11 72 (6 ) 21 211 (7 ) Total 176 $5,020 ($90 ) 440 $15,196 ($654 ) 616 $20,216 ($744 ) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of loans and leases | The following table presents the composition of loans and leases: December 31, (in millions) 2019 2018 Commercial (1) $41,479 $40,857 Commercial real estate 13,522 13,023 Leases 2,537 2,903 Total commercial loans and leases 57,538 56,783 Residential mortgages (2) 19,083 18,978 Home equity loans 812 1,073 Home equity lines of credit 11,979 12,710 Home equity loans serviced by others 289 399 Home equity lines of credit serviced by others 74 104 Automobile 12,120 12,106 Education 10,347 8,900 Credit cards 2,198 1,991 Other retail 4,648 3,616 Total retail loans 61,550 59,877 Total loans and leases (3) $119,088 $116,660 (1) SBA loans the Company services for others of $33 million are not included above. These loans represent the government guaranteed portion of SBA loans sold to outside investors as of December 31, 2019 . There were no SBA loans serviced for others as of December 31, 2018 . (2) Mortgage loans the Company services for others of $77.5 billion and $69.6 billion at December 31, 2019 and 2018, respectively, are not included above. (3) LHFS totaling $3.3 billion and $1.3 billion at December 31, 2019 and 2018, respectively, are not included above. The following table presents the composition of LHFS. December 31, 2019 December 31, 2018 (in millions) Residential Mortgages Commercial Total Residential Mortgages Commercial Total Loans held for sale at fair value (1) $1,778 $168 $1,946 $967 $252 $1,219 Other loans held for sale (2) 1,101 283 1,384 — 101 101 (1) Residential mortgage LHFS at fair value are originated for sale. Commercial LHFS at fair value consist of loans managed by the Company’s commercial secondary loan desk. (2) Residential mortgages other LHFS of $1.1 billion as of December 31, 2019 comprised of two loan portfolio pools of $524 million and $575 million |
Schedule of investment in leases, before the ALLL | The components of the net investment in direct finance and sales-type leases, before ALLL, are presented below: (in millions) December 31, 2019 Total future minimum lease rentals $1,739 Estimated residual value of leased equipment (non-guaranteed) 1,013 Initial direct costs 10 Unearned income (225 ) Total leases $2,537 |
Maturity analysis of direct financing lease receivables | A maturity analysis of direct financing and sales-type lease receivables at December 31, 2019 is presented below: (in millions) 2020 $496 2021 385 2022 288 2023 220 2024 145 Thereafter 205 Total undiscounted future minimum lease rentals $1,739 |
ALLOWANCE FOR CREDIT LOSSES, _2
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for credit losses | The following tables present a summary of changes in the ACL: Year Ended December 31, 2019 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $690 $552 $1,242 Charge-offs (140 ) (475 ) (615 ) Recoveries 24 161 185 Net charge-offs (116 ) (314 ) (430 ) Provision charged to income 100 340 440 Allowance for loan and lease losses, end of period 674 578 1,252 Reserve for unfunded lending commitments, beginning of period 91 — 91 Provision for unfunded lending commitments (47 ) — (47 ) Reserve for unfunded lending commitments, end of period 44 — 44 Total allowance for credit losses, end of period $718 $578 $1,296 Year Ended December 31, 2018 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $685 $551 $1,236 Charge-offs (52 ) (442 ) (494 ) Recoveries 19 158 177 Net charge-offs (33 ) (284 ) (317 ) Provision charged to income 38 285 323 Allowance for loan and lease losses, end of period 690 552 1,242 Reserve for unfunded lending commitments, beginning of period 88 — 88 Provision for unfunded lending commitments 3 — 3 Reserve for unfunded lending commitments, end of period 91 — 91 Total allowance for credit losses, end of period $781 $552 $1,333 Year Ended December 31, 2017 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $663 $573 $1,236 Charge-offs (75 ) (437 ) (512 ) Recoveries 40 167 207 Net charge-offs (35 ) (270 ) (305 ) Provision charged to income (1) 57 248 305 Allowance for loan and lease losses, end of period 685 551 1,236 Reserve for unfunded lending commitments, beginning of period 72 — 72 Provision for unfunded lending commitments 16 — 16 Reserve for unfunded lending commitments, end of period 88 — 88 Total allowance for credit losses, end of period $773 $551 $1,324 (1) Includes an increase of approximately $50 million to commercial and corresponding decrease to retail for the impact of the enhancement to the assessment of qualitative risks, factors and events that may not be measured in the modeled results. |
Schedule of loans and leases based on evaluation method | The following table presents the recorded investment in loans and leases based on the Company’s evaluation methodology: December 31, 2019 December 31, 2018 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $399 $667 $1,066 $391 $723 $1,114 Formula-based evaluation 57,139 60,883 118,022 56,392 59,154 115,546 Total loans and leases $57,538 $61,550 $119,088 $56,783 $59,877 $116,660 |
Schedule of allowance for credit losses by evaluation method | The following table presents a summary of the ACL by evaluation methodology: December 31, 2019 December 31, 2018 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $85 $25 $110 $38 $26 $64 Formula-based evaluation 633 553 1,186 743 526 1,269 Allowance for credit losses $718 $578 $1,296 $781 $552 $1,333 |
Schedule of classes of commercial loans and leases based on regulatory classifications | The following tables present the recorded investment in commercial loans and leases based on regulatory classification ratings: December 31, 2019 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $38,950 $1,351 $934 $244 $41,479 Commercial real estate 13,169 318 33 2 13,522 Leases 2,383 109 42 3 2,537 Total commercial loans and leases $54,502 $1,778 $1,009 $249 $57,538 December 31, 2018 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $38,600 $1,231 $828 $198 $40,857 Commercial real estate 12,523 412 82 6 13,023 Leases 2,823 39 41 — 2,903 Total commercial loans and leases $53,946 $1,682 $951 $204 $56,783 |
Schedule of retail loan investments categorized by delinquency status | The following tables present the recorded investment in classes of retail loans, categorized by delinquency status: December 31, 2019 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $18,818 $129 $35 $17 $84 $19,083 Home equity loans 713 64 10 4 21 812 Home equity lines of credit 11,383 346 72 32 146 11,979 Home equity loans serviced by others 244 23 7 3 12 289 Home equity lines of credit serviced by others 50 11 2 1 10 74 Automobile 10,787 1,001 227 81 24 12,120 Education 10,088 202 30 15 12 10,347 Credit cards 2,076 74 15 11 22 2,198 Other retail 4,492 87 30 20 19 4,648 Total retail loans $58,651 $1,937 $428 $184 $350 $61,550 December 31, 2018 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $18,664 $131 $37 $13 $133 $18,978 Home equity loans 945 75 12 3 38 1,073 Home equity lines of credit 12,042 386 65 22 195 12,710 Home equity loans serviced by others 355 21 7 3 13 399 Home equity lines of credit serviced by others 79 15 2 1 7 104 Automobile 10,729 1,039 207 59 72 12,106 Education 8,694 159 23 13 11 8,900 Credit cards 1,894 53 14 10 20 1,991 Other retail 3,481 76 26 18 15 3,616 Total retail loans $56,883 $1,955 $393 $142 $504 $59,877 |
Schedule of nonperforming loans and leases by class | The following table presents nonperforming loans and leases and loans accruing and 90 days or more past due: Nonperforming (1)(2) Accruing and 90 days or more past due (in millions) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Commercial $240 $194 $2 $1 Commercial real estate 2 7 — — Leases 3 — — — Total commercial loans and leases 245 201 2 1 Residential mortgages 93 105 13 15 Home equity loans 33 50 — — Home equity lines of credit 187 231 — — Home equity loans serviced by others 14 17 — — Home equity lines of credit serviced by others 12 15 — — Automobile 67 81 — — Education 18 38 2 2 Credit card 22 20 — — Other retail 12 8 8 7 Total retail loans 458 565 23 24 Total $703 $766 $25 $25 (1) Nonperforming balances exclude first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration. These loans are included in the Company’s Consolidated Balance Sheets. (2) |
Summary of key performance indicators | The following table presents a summary of nonperforming loan and lease key performance indicators: December 31, 2019 2018 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.21 % 0.17 % Nonperforming retail loans as a percentage of total loans and leases 0.38 0.49 Total nonperforming loans and leases as a percentage of total loans and leases (1) 0.59 % 0.66 % Nonperforming commercial assets as a percentage of total assets 0.15 % 0.13 % Nonperforming retail assets as a percentage of total assets 0.30 0.37 Total nonperforming assets as a percentage of total assets 0.45 % 0.50 % (1) |
Analysis of age of past due amounts | The following table presents the aging of both accruing and nonaccruing loan and lease past due amounts: December 31, 2019 December 31, 2018 Days Past Due Days Past Due (in millions) 30-59 60-89 90 or More Total 30-59 60-89 90 or More Total Commercial $45 $27 $67 $139 $85 $3 $78 $166 Commercial real estate 1 1 — 2 8 32 5 45 Leases 37 — 2 39 7 — — 7 Total commercial loans and leases 83 28 69 180 100 35 83 218 Residential mortgages 35 17 84 136 37 13 133 183 Home equity loans 10 4 21 35 12 3 38 53 Home equity lines of credit 72 32 146 250 65 22 195 282 Home equity loans serviced by others 7 3 12 22 7 3 13 23 Home equity lines of credit serviced by others 2 1 10 13 2 1 7 10 Automobile 227 81 24 332 207 59 72 338 Education 30 15 12 57 23 13 11 47 Credit cards 15 11 22 48 14 10 20 44 Other retail 30 20 19 69 26 18 15 59 Total retail loans 428 184 350 962 393 142 504 1,039 Total $511 $212 $419 $1,142 $493 $177 $587 $1,257 |
Schedule of impaired loans by class | The following tables present a summary of impaired loans by class: December 31, 2019 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $243 $85 $137 $458 $380 Commercial real estate — — 19 19 19 Total commercial loans 243 85 156 477 399 Residential mortgages 29 2 125 196 154 Home equity loans 22 1 65 121 87 Home equity lines of credit 27 2 173 242 200 Home equity loans serviced by others 15 1 16 41 31 Home equity lines of credit serviced by others 1 — 5 9 6 Automobile 1 — 20 30 21 Education 112 9 22 135 134 Credit cards 27 9 1 29 28 Other retail 3 1 3 8 6 Total retail loans 237 25 430 811 667 Total $480 $110 $586 $1,288 $1,066 December 31, 2018 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $186 $31 $167 $450 $353 Commercial real estate 32 7 6 38 38 Total commercial loans 218 38 173 488 391 Residential mortgages 28 2 127 201 155 Home equity loans 34 3 76 148 110 Home equity lines of credit 21 1 181 244 202 Home equity loans serviced by others 22 1 19 54 41 Home equity lines of credit serviced by others 1 — 7 11 8 Automobile 1 — 22 31 23 Education 130 11 23 153 153 Credit cards 24 7 1 25 25 Other retail 4 1 2 8 6 Total retail loans 265 26 458 875 723 Total $483 $64 $631 $1,363 $1,114 |
Schedule of additional information on impaired loans | The following table presents additional information on impaired loans: Year Ended December 31, 2019 2018 2017 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $11 $311 $9 $312 $4 $380 Commercial real estate 1 39 1 32 — 37 Total commercial loans 12 350 10 344 4 417 Residential mortgages 5 126 5 146 4 136 Home equity loans 5 84 6 107 6 121 Home equity lines of credit 7 172 7 181 6 176 Home equity loans serviced by others 2 30 3 42 3 49 Home equity lines of credit serviced by others — 6 — 9 — 9 Automobile 1 17 1 20 1 18 Education 8 125 8 154 9 173 Credit cards 2 21 1 21 2 22 Other retail — 5 — 7 — 9 Total retail loans 30 586 31 687 31 713 Total $42 $936 $41 $1,031 $35 $1,130 |
Troubled debt restructurings on financing receivables | The following table summarizes TDRs by class and total unfunded commitments: December 31, (in millions) 2019 2018 Commercial $297 $304 Retail 667 723 Unfunded commitments related to TDRs 42 30 The following tables summarize how loans were modified during the years ended December 31, 2019 , 2018 and 2017 . The reported balances represent the post-modification outstanding recorded investment and can include loans that became TDRs during the period and were paid off in full, charged off, or sold prior to period end. Pre-modification balances for modified loans approximate the post-modification balances shown. December 31, 2019 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 3 $— 26 $5 56 $210 Commercial real estate — — 1 — — — Total commercial loans 3 — 27 5 56 210 Residential mortgages 60 12 62 10 120 17 Home equity loans 31 2 — — 82 4 Home equity lines of credit 163 18 72 11 350 22 Home equity loans serviced by others 2 — — — 14 — Home equity lines of credit serviced by others — — — — 8 — Automobile 160 3 21 — 1,250 17 Education — — — — 272 7 Credit cards 3,259 18 — — 304 1 Other retail — — — — 176 1 Total retail loans 3,675 53 155 21 2,576 69 Total 3,678 $53 182 $26 2,632 $279 December 31, 2018 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 7 $1 49 $22 53 $200 Commercial real estate — — 3 31 2 31 Total commercial loans 7 1 52 53 55 231 Residential mortgages 35 4 61 8 142 17 Home equity loans 43 4 1 — 134 5 Home equity lines of credit 76 7 178 26 413 29 Home equity loans serviced by others 4 — — — 23 1 Home equity lines of credit serviced by others 5 — 1 — 14 1 Automobile 158 3 46 1 1,189 17 Education — — — — 355 7 Credit cards 2,312 13 — — — — Other retail 1 — — — 9 — Total retail loans 2,634 31 287 35 2,279 77 Total 2,641 $32 339 $88 2,334 $308 December 31, 2017 Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) Other (3) (dollars in millions) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial 7 $1 45 $22 15 $71 Commercial real estate — — 1 — 1 — Total commercial loans 7 1 46 22 16 71 Residential mortgages 71 10 73 13 171 19 Home equity loans 82 6 1 — 232 13 Home equity lines of credit 50 3 235 30 395 27 Home equity loans serviced by others 15 1 — — 52 2 Home equity lines of credit serviced by others 5 — 2 — 26 2 Automobile 130 2 29 1 1,336 20 Education — — — — 329 7 Credit cards 2,363 13 — — — — Other retail 1 — — — 5 — Total retail loans 2,717 35 340 44 2,546 90 Total 2,724 $36 386 $66 2,562 $161 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. |
Schedule of loans that may increase credit exposure | The following tables present balances of loans with these characteristics: December 31, 2019 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Total High loan-to-value $402 $61 $90 $— $553 Interest only/negative amortization 2,043 — — — 2,043 Low introductory rate — — — 235 235 Multiple characteristics and other — — — — — Total $2,445 $61 $90 $235 $2,831 December 31, 2018 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Education Total High loan-to-value $318 $87 $148 $— $— $553 Interest only/negative amortization 1,794 — — — 1 1,795 Low introductory rate — — — 217 — 217 Multiple characteristics and other 1 — — — — 1 Total $2,113 $87 $148 $217 $1 $2,566 |
PREMISES, EQUIPMENT, AND SOFT_2
PREMISES, EQUIPMENT, AND SOFTWARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of the carrying value of premises and equipment | A summary of the carrying value of premises and equipment is presented below: December 31, (dollars in millions) Useful Lives (years) 2019 2018 Land and land improvements 10 - 75 $102 $112 Buildings and leasehold improvements 5 - 60 848 852 Furniture, fixtures and equipment 5 - 20 535 1,019 Construction in progress 368 292 Total premises and equipment, gross 1,853 2,275 Accumulated depreciation (1,092 ) (1,484 ) Total premises and equipment, net $761 $791 |
Schedule of estimated future amortization expense for capitalized software assets | The estimated future amortization expense for capitalized software assets is presented below: Year (in millions) 2020 $175 2021 136 2022 102 2023 73 2024 46 Thereafter 62 Total (1) $594 (1) Excluded from this balance is $296 million of in-process software at December 31, 2019 . |
MORTGAGE BANKING (Tables)
MORTGAGE BANKING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Banking [Abstract] | |
Schedule of mortgage banking activities | The following table summarizes activity related to the Company’s residential mortgage loan sales and the Company's mortgage banking activity: Year Ended December 31, (in millions) 2019 2018 2017 Residential mortgage loan sold with servicing retained $20,430 $8,149 $3,161 Gain on sales (1) 251 89 35 Contractually specified servicing, late and other ancillary fees (1) 208 118 53 (1) Reported in mortgage banking fees in the Consolidated Statements of Operations. |
Schedule of valuation allowance for impairment of recognized servicing assets | The following table summarizes changes in MSRs recorded using the amortization method: As of and for the Year Ended December 31, (in millions) 2019 2018 Mortgage servicing rights: Balance as of beginning of period $221 $201 Amount capitalized — 36 Purchases — 16 Amortization (38 ) (32 ) Carrying amount before valuation allowance 183 221 Valuation allowance for servicing assets: Balance as of beginning of period — 3 Valuation charge-offs (recoveries) 1 (3 ) Balance at end of period 1 — Net carrying value of MSRs $182 $221 |
Servicing asset at amortized cost | The following table summarizes changes in MSRs recorded using the amortization method: As of and for the Year Ended December 31, (in millions) 2019 2018 Mortgage servicing rights: Balance as of beginning of period $221 $201 Amount capitalized — 36 Purchases — 16 Amortization (38 ) (32 ) Carrying amount before valuation allowance 183 221 Valuation allowance for servicing assets: Balance as of beginning of period — 3 Valuation charge-offs (recoveries) 1 (3 ) Balance at end of period 1 — Net carrying value of MSRs $182 $221 |
Servicing asset at fair value | The following table summarizes changes in MSRs recorded using the fair value method: As of and for the Year Ended December 31, (in millions) 2019 2018 Fair value as of beginning of the period $600 $— Acquired MSRs — 590 Amounts capitalized 270 73 Changes in unpaid principal balance during the period (1) (119 ) (32 ) Changes in fair value during the period (2) (109 ) (31 ) Fair value at end of the period $642 $600 (1) Represents changes in value due to passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and loans that paid off during the period. (2) Represents changes in value primarily due to market driven changes in interest rates and prepayment speeds. |
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights | For MSRs under the amortization method, the key economic assumptions used to estimate the fair value are presented below: December 31, 2019 December 31, 2018 Actual Decline in fair value due to Actual Decline in fair value due to (dollars in millions) Fair value $193 50 bps adverse change 100 bps adverse change $243 50 bps adverse change 100 bps adverse change Weighted average life (in years) 6.4 6.5 Weighted average constant prepayment rate 8.9% $28 $53 8.5% $24 $56 Weighted average discount rate 9.4% 4 7 9.3% 5 9 For MSRs under the fair value method, the key economic assumptions used to estimate the fair value are presented below: December 31, 2019 December 31, 2018 Actual Decline in fair value due to Actual Decline in fair value due to (dollars in millions) Fair value $642 50 bps adverse change 100 bps adverse change $600 50 bps adverse change 100 bps adverse change Weighted average life (in years) 5.5 8.0 Weighted average constant prepayment rate 13.9% $116 $222 8.2% $68 $148 Weighted average option adjusted spread 440 bps 12 25 609 bps 13 26 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of operating lease cost | Supplemental information related to the Company’s operating lease arrangements is presented below: (in millions) Year Ended December 31, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $164 Right-of-use assets in exchange for new operating lease liabilities 117 The components of operating lease cost are presented below: (in millions) Year Ended December 31, 2019 Operating lease cost $165 Short-term lease cost 10 Variable lease cost 7 Sublease income (3 ) Total $179 |
Supplemental consolidated balance sheet information | Supplemental Consolidated Balance Sheet information related to the Company’s operating lease arrangements is presented below: (in millions) December 31, 2019 Affected Line Item in Consolidated Balance Sheets Operating lease right-of-use assets $699 Other assets Operating lease liabilities 721 Other liabilities |
Lease liability maturity schedule | At December 31, 2019 , lease liabilities maturing under non-cancelable operating leases are presented below for the years ended December 31: (in millions) Operating Leases 2020 150 2021 150 2022 125 2023 100 Thereafter 281 Total lease payments 806 Less: Interest 85 Present value of lease liabilities $721 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the carrying value of goodwill for the years ended December 31, 2019 and 2018 are presented below: (in millions) Consumer Banking Commercial Banking Total Balance at December 31, 2017 $2,136 $4,751 $6,887 Business acquisition 59 — 59 Adjustments (1) (23 ) — (23 ) Balance at December 31, 2018 $2,172 $4,751 $6,923 Business acquisitions 83 35 118 Adjustments 3 — 3 Balance at December 31, 2019 $2,258 $4,786 $7,044 (1) Adjustments to goodwill are the result of an update to the purchase price allocation for the FAMC acquisition, given higher value attributed to purchased net assets. |
Carrying value of intangible assets | A summary of the carrying value of intangible assets is presented below. Included in the carrying value at December 31, 2019 was $19 million and $5 million in other intangibles related to the Clarfeld and Bowstring acquisitions, respectively. Additionally, included in the carrying value at December 31, 2019 was $18 million related to the March 2019 purchase of naming rights for a theater in Boston, Massachusetts, and a sponsorship and promotion arrangement. December 31, 2019 December 31, 2018 (in millions) Amortizable Lives (years) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Acquired technology 7 $21 $4 $17 $20 $1 $19 Acquired relationships 5 - 15 37 5 32 11 1 10 Naming Rights 10 11 1 10 — — — Other 2 - 7 13 4 9 3 1 2 Total $82 $14 $68 $34 $3 $31 |
Intangible assets future amortization expense | Estimated intangible asset amortization expense for the next five years is as follows: (in millions) Total 2020 $11 2021 10 2022 9 2023 9 2024 8 |
VARIABLE INTEREST ENTITIES VARI
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | A summary of these investments is presented below: December 31, (in millions) 2019 2018 LIHTC investment included in other assets $1,401 $1,236 LIHTC unfunded commitments included in other liabilities 716 673 Lending to special purpose entities included in loans and leases 1,101 613 Renewable energy investments included in other assets 355 319 |
Schedule of Affordable Housing Tax Credit Investments | The following table presents other information related to the Company’s affordable housing tax credit investments: Year Ended December 31, (in millions) 2019 2018 2017 Tax credits included in income tax expense $128 $101 $83 Amortization expense included in income tax expense 137 110 94 Other tax benefits included in income tax expense 32 25 31 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of the major components of deposits | The following table presents the major components of deposits: December 31, (in millions) 2019 2018 Demand $29,233 $29,458 Checking with interest 24,840 23,067 Regular savings 13,779 12,007 Money market accounts 38,725 35,701 Term deposits 18,736 19,342 Total deposits $125,313 $119,575 |
Schedule of maturity distribution of term deposits | The following table presents the maturity distribution by year of term deposits as of December 31, 2019 : (in millions) 2020 $16,151 2021 1,995 2022 316 2023 144 2024 126 2025 and thereafter 4 Total $18,736 |
Schedule of maturities of term deposits greater than $100,000 | The following table presents the remaining maturities of these deposits: (in millions) Three months or less $6,987 After three months through six months 3,224 After six months through twelve months 2,015 After twelve months 1,206 Total term deposits $13,432 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowed funds | The following table presents a summary of the Company’s short-term borrowed funds: December 31, (in millions) 2019 2018 Securities sold under agreements to repurchase $265 $336 Federal funds purchased — 820 Other short-term borrowed funds 9 161 Total short-term borrowed funds $274 $1,317 The following table presents key data related to the Company’s short-term borrowed funds: As of and for the Year Ended December 31, (dollars in millions, except ratio data) 2019 2018 2017 Weighted-average interest rate at year-end: (1) Federal funds purchased and securities sold under agreements to repurchase 0.41 % 1.72 % 0.74 % Other short-term borrowed funds 3.85 2.73 1.33 Maximum amount outstanding at any month-end during the year: Federal funds purchased and securities sold under agreements to repurchase (2) $1,499 $1,282 $1,174 Other short-term borrowed funds 511 1,110 2,759 Average amount outstanding during the year: Federal funds purchased and securities sold under agreements to repurchase (2) $599 $654 $776 Other short-term borrowed funds 66 467 1,571 Weighted-average interest rate during the year: (1) Federal funds purchased and securities sold under agreements to repurchase 1.36 % 0.92 % 0.36 % Other short-term borrowed funds 2.50 2.10 1.09 (1) Rates exclude certain hedging costs. (2) Balances are net of certain short-term receivables associated with reverse repurchase agreements, as applicable. |
Schedule of long-term borrowed funds | The following table presents a summary of the Company’s long-term borrowed funds: December 31, (in millions) 2019 2018 Parent Company: 2.375% fixed-rate senior unsecured debt, due July 2021 $349 $349 4.150% fixed-rate subordinated debt, due September 2022 348 348 3.750% fixed-rate subordinated debt, due July 2024 250 250 4.023% fixed-rate subordinated debt, due October 2024 42 42 4.350% fixed-rate subordinated debt, due August 2025 249 249 4.300% fixed-rate subordinated debt, due December 2025 750 749 2.850% fixed-rate senior unsecured notes, due July 2026 496 — CBNA’s Global Note Program: 2.500% senior unsecured notes, due March 2019 — 748 2.450% senior unsecured notes, due December 2019 — 744 2.250% senior unsecured notes, due March 2020 700 691 2.447% floating-rate senior unsecured notes, due March 2020 (1) 300 300 2.487% floating-rate senior unsecured notes, due May 2020 (1) 250 250 2.200% senior unsecured notes, due May 2020 500 499 2.250% senior unsecured notes, due October 2020 750 738 2.550% senior unsecured notes, due May 2021 991 964 3.250% senior unsecured notes, due February 2022 711 — 2.629% floating-rate senior unsecured notes, due February 2022 (1) 299 — 2.727% floating-rate senior unsecured notes, due May 2022 (1) 250 249 2.650% senior unsecured notes, due May 2022 501 487 3.700% senior unsecured notes, due March 2023 515 502 2.911% floating-rate senior unsecured notes, due March 2023 (1) 249 249 3.750% senior unsecured notes, due February 2026 521 — Additional Borrowings by CBNA and Other Subsidiaries: Federal Home Loan Bank advances, 2.006% weighted average rate, due through 2038 5,008 7,508 Other 18 9 Total long-term borrowed funds $14,047 $15,925 (1) Rate disclosed reflects the floating rate as of December 31, 2019. |
Schedule of maturities of long-term borrowed funds | The following table presents a summary of maturities for the Company’s long-term borrowed funds at December 31, 2019 : (in millions) Parent Company CBNA and Other Subsidiaries Consolidated Year 2020 $— $2,504 $2,504 2021 349 5,998 6,347 2022 348 1,767 2,115 2023 — 765 765 2024 292 1 293 2025 and thereafter 1,495 528 2,023 Total $2,484 $11,563 $14,047 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in consolidated balance sheets | The following table presents derivative instruments included on the Consolidated Balance Sheets: December 31, 2019 December 31, 2018 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $29,846 $1 $— $12,050 $5 $— Derivatives not designated as hedging instruments: Interest rate contracts 142,386 772 133 117,076 301 277 Foreign exchange contracts 15,101 174 166 9,866 129 113 Other contracts 6,868 37 23 3,555 14 25 Total derivatives not designated as hedging instruments 983 322 444 415 Gross derivative fair values 984 322 449 415 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (107 ) (107 ) (87 ) (87 ) Less: Cash collateral applied (2) (70 ) (95 ) (45 ) (36 ) Total net derivative fair values presented in the Consolidated Balance Sheets $807 $120 $317 $292 (1) The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate contracts, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they do not measure the true economic risk of these contracts. (2) Amounts represent the impact of enforceable master netting agreements that allow the Company to net settle positive and negative positions as well as collateral paid and received. |
Schedule of fair value hedges | The following table presents the change in fair value of interest rate contracts designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Operations: Year Ended December 31, (in millions) 2019 2018 2017 Affected Line Item in the Consolidated Statements of Operations Change in fair value of interest rate swaps hedging borrowed funds $107 $8 ($26 ) Interest expense - long-term borrowed funds Change in fair value of hedged long-term debt attributable to the risk being hedged (107 ) (9 ) 27 Interest expense - long-term borrowed funds Change in fair value of interest rate swaps hedging fixed rate loans (17 ) — — Interest and fees on loans and leases Change in fair value of hedged fixed rate loans attributable to the risk being hedged 17 — — Interest and fees on loans and leases Change in fair value of interest rate swaps hedging debt securities available for sale 8 — — Interest income - investment securities Change in fair value of hedged debt securities available for sale attributable to risk being hedged (8 ) — — Interest income - investment securities The following table reflects amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: December 31, 2019 (in millions) Debt securities available for sale (1) Residential mortgages Long-term borrowed funds Carrying amount of hedged assets $15,798 $976 $— Carrying amount of hedged liabilities — — 4,689 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items (8 ) 17 50 (1) The Company designated $2.0 billion as the hedged amount (from a closed portfolio of prepayable financial assets with a carrying value of $15.8 billion as of December 31, 2019) in a last-of-layer hedging relationship, which commenced in the third quarter of 2019. |
Schedule of effect of cash flow hedges on net income and stockholders' equity | The following table presents the pre-tax net gains (losses) recorded in the Consolidated Statements of Operations and in the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: Amounts Recognized for the Year Ended December 31, (in millions) 2019 2018 2017 Amount of pre-tax net gains (losses) recognized in OCI $138 ($44 ) ($23 ) Amount of pre-tax net losses reclassified from OCI into interest income (68 ) (55 ) 25 Amount of pre-tax net gains reclassified from OCI into interest expense 11 12 — |
Schedule of effect of derivative Instruments on net income | The following table presents the effect of economic hedges on noninterest income: Amounts Recognized in Noninterest Income for the Year Ended December 31, Affected Line Item in the Consolidated Statements of Operations (in millions) 2019 2018 2017 Economic hedge type: Customer interest rate contracts $687 $5 $5 Foreign exchange and interest rate products Customer foreign exchange contracts (166 ) (54 ) 172 Foreign exchange and interest rate products Derivatives transactions to hedge interest rate risk (620 ) 43 46 Foreign exchange and interest rate products Derivatives transactions to hedge foreign exchange risk 200 158 (151 ) Foreign exchange and interest rate products Residential loan commitments 8 (3 ) 2 Mortgage banking fees Forward sale contracts 20 21 (8 ) Mortgage banking fees Interest rate derivative contracts used to hedge residential MSRs (1) 134 35 — Mortgage banking fees Total $263 $205 $66 (1) Includes ($5) million related to interest rate derivative contracts used to hedge residential MSRs valued at LOCOM for the year ended December 31, 2019. |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following table presents changes in the fair value of the Company’s Pension Plans’ assets, projected benefit obligation, funded status, and accumulated benefit obligation: Year Ended December 31, Qualified Plan Non-Qualified Plan (in millions) 2019 2018 2019 2018 Fair value of plan assets as of January 1 $1,050 $1,139 $— $— Actual return on plan assets 259 (81 ) — — Employer contributions — 50 8 8 Benefits and administrative expenses paid (63 ) (58 ) (8 ) (8 ) Fair value of plan assets as of December 31 1,246 1,050 — — Projected benefit obligation 1,075 972 102 95 Pension asset (obligation) $171 $78 ($102 ) ($95 ) Accumulated benefit obligation $1,075 $972 $102 $95 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The following table presents other changes in plan assets and benefit obligations recognized in OCI for the Company’s Pension Plans: Year Ended December 31, (in millions) 2019 2018 2017 Net periodic pension income ($5 ) ($16 ) ($2 ) Net actuarial (gain) loss (49 ) 49 (31 ) Amortization of prior service credit — 1 1 Amortization of net actuarial loss (19 ) (17 ) (18 ) Total (loss) gain recognized in other comprehensive loss (68 ) 33 (48 ) Total (loss) gain recognized in net periodic pension (income) cost and other comprehensive loss ($73 ) $17 ($50 ) |
Schedule of Net Periodic (Income) Cost | The following table presents the components of net periodic pension (income) cost for the Company’s Pension Plans: Year Ended December 31, Qualified Plan Non-Qualified Plan Total (in millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost $3 $3 $3 $— $— $— $3 $3 $3 Interest cost 41 39 42 4 4 4 45 43 46 Expected return on plan assets (72 ) (79 ) (69 ) — — — (72 ) (79 ) (69 ) Amortization of actuarial loss 17 15 16 2 2 2 19 17 18 Net periodic pension (income) cost (1) ($11 ) ($22 ) ($8 ) $6 $6 $6 ($5 ) ($16 ) ($2 ) (1) In the Consolidated Statements of Operations, service cost is presented in salaries and employee benefits, and all other components of net periodic pension (income) cost are presented in other operating expense. |
Schedule of Expected Benefit Payments | The following table presents the expected future benefit payments for the Company’s Pension Plans: (in millions) Expected benefit payments by fiscal year ending: December 31, 2020 $67 December 31, 2021 68 December 31, 2022 68 December 31, 2023 68 December 31, 2024 69 December 31, 2025 - 2029 348 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of other comprehensive income | The following table presents the changes in the balances, net of income taxes, of each component of AOCI: (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Securities Employee Benefit Plans Total AOCI Balance at January 1, 2017 ($88 ) ($186 ) ($394 ) ($668 ) Other comprehensive loss before reclassifications (14 ) (6 ) — (20 ) Amounts reclassified to the Consolidated Statements of Operations (16 ) (2 ) 31 13 Net other comprehensive (loss) income (30 ) (8 ) 31 (7 ) Reclassification of tax effects resulting from the 2017 Tax Legislation (1) ($25 ) ($42 ) ($78 ) ($145 ) Balance at December 31, 2017 ($143 ) ($236 ) ($441 ) ($820 ) Other comprehensive loss before reclassifications (33 ) (239 ) — (272 ) Other-than-temporary impairment not recognized in earnings on securities — (3 ) — (3 ) Amounts reclassified to the Consolidated Statements of Operations 33 (12 ) (22 ) (1 ) Net other comprehensive loss — (254 ) (22 ) (276 ) Balance at December 31, 2018 ($143 ) ($490 ) ($463 ) ($1,096 ) Other comprehensive income before reclassifications 103 501 — 604 Amounts reclassified to the Consolidated Statements of Operations 43 (15 ) 48 76 Net other comprehensive income 146 486 48 680 Cumulative effect of change in accounting standards — 5 — 5 Balance at December 31, 2019 $3 $1 ($415 ) ($411 ) Primary income statement location of amounts reclassified from AOCI Net interest income Securities gains, net Other operating expense (1) As of December 31, 2017, the balance of AOCI reflects the retrospective adoption of FASB ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of preferred stock | The following table provides the number of authorized preferred shares, the number of issued and outstanding, the liquidation value per share and the carrying amount as of December 31: 2019 2018 (in millions, except per share and share data) Liquidation value per share Preferred Shares Carrying Amount Preferred Shares Carrying Amount Authorized ($25 par value) 100,000,000 100,000,000 Issued and outstanding Series A $1,000 250,000 $247 250,000 $247 Series B 1,000 300,000 296 300,000 296 Series C 1,000 300,000 297 300,000 297 Series D 1,000 (1) 300,000 (2) 293 — — Series E 1,000 (1) 450,000 (3) 437 — — Total issued and outstanding 1,600,000 $1,570 850,000 $840 (1) Equivalent to $25 per depositary share. (2) Represented by 12,000,000 depositary shares each representing a 1/40th interest in the Series D Preferred Stock. (3) Represented by 18,000,000 depositary shares each representing a 1/40th interest in the Series E Preferred Stock. The following table provides information related to the Company’s preferred stock outstanding as of December 31, 2019 : (in millions, except per share and share data) Preferred Stock Issue Date Number of Shares Issued Dividend Dates (3) Annual Per Share Dividend Rate Optional Redemption Date (4) Series A (1) April 6, 2015 250,000 Semi-annually beginning October 6, 2015 until April 6, 2020 5.500% until April 6, 2020 April 6, 2020 Quarterly beginning July 6, 2020 3 Mo. LIBOR plus 3.960% beginning April 6, 2020 Series B (1) May 24, 2018 300,000 Semi-annually beginning January 6, 2019 until July 6, 2023 6.000% until July 6, 2023 July 6, 2023 Quarterly beginning October 6, 2023 3 Mo. LIBOR plus 3.003% beginning July 6, 2023 Series C (1) October 25, 2018 300,000 Quarterly beginning January 6, 2019 until April 6, 2024 6.375% until April 6, 2024 April 6, 2024 Quarterly beginning July 6, 2024 3 Mo. LIBOR plus 3.157% beginning April 6, 2024 Series D (1) January 29, 2019 300,000 (5) Quarterly beginning April 6, 2019 until April 6, 2024 6.350% until April 6, 2024 April 6, 2024 Quarterly beginning July 6, 2024 3 Mo. LIBOR plus 3.642% beginning April 6, 2024 Series E (2) October 28, 2019 450,000 (6) Quarterly beginning January 6, 2020 5.000% January 6, 2025 (1) Series are non-cumulative fixed-to-floating rate perpetual preferred stock. Except in limited circumstances, the preferred stock does not have voting rights. (2) Series are non-cumulative fixed rate perpetual preferred stock. Except in limited circumstances, the preferred stock does not have voting rights. (3) Dividends are payable when, and if, declared by the Company’s Board of Directors or an authorized committee thereof. (4) Redeemable at the Company’s option, in whole or in part, on any dividend payment date on or after the date stated, or in whole but not in part, at any time within 90 days following a regulatory capital treatment event a as defined in the applicable certificate of designations, in each case at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Under current rules, any redemption is subject to approval by the FRB. (5) Represented by 12,000,000 depositary shares each representing a 1/40th interest in the Series D Preferred Stock. (6) Represented by 18,000,000 depositary shares each representing a 1/40th interest in the Series E Preferred Stock. |
Schedule of dividends | The following table provides information related to dividends per share and in the aggregate, declared and paid, for each type of stock issued and outstanding for the year ended December 31: 2019 2018 2017 (in millions, except per share and share data) Dividends per Share Dividends Declared Dividends Paid Dividends per Share Dividends Declared Dividends Paid Dividends per Share Dividends Declared Dividends Paid Common stock $1.36 $617 $617 $0.98 $471 $471 $0.64 $322 $322 Preferred stock Series A $55.00 $14 $14 $55.00 $14 $14 $55.00 $14 $14 Series B 60.00 18 20 37.00 11 — — — — Series C 63.75 19 18 12.57 4 — — — — Series D 59.45 18 13 — — — — — — Series E 9.44 4 — — — — — — — Total preferred stock $73 $65 $29 $14 $14 $14 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Share-Based Plans Activity | The following table presents the activity related to the Company’s share-based plans (excluding the ESPP) for the year ended December 31, 2019 : Shares Weighted-Average Grant Price Outstanding, January 1 2,893,281 $34.04 Granted 1,677,167 36.21 Vested & Distributed (1,518,836 ) 32.21 Forfeited (51,388 ) 38.29 Outstanding, December 31 3,000,224 $36.71 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of outstanding off balance sheet arrangements | A summary of outstanding off-balance sheet arrangements is presented below: December 31, (in millions) 2019 2018 Commitments to extend credit $72,743 $69,553 Letters of credit 2,190 2,125 Risk participation agreements 37 19 Loans sold with recourse 37 5 Marketing rights 33 37 Total $75,040 $71,739 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of difference between aggregated fair value and unpaid principal balance of loans held for sale | The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of LHFS measured at fair value: December 31, 2019 December 31, 2018 (in millions) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Residential mortgage loans held for sale, at fair value $1,778 $1,727 $51 $967 $967 $— Commercial and commercial real estate loans held for sale, at fair value 168 175 (7 ) 252 252 — |
Assets and liabilities measured on recurring basis | The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2019 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $20,537 $— $20,537 $— State and political subdivisions 5 — 5 — U.S. Treasury and other 71 71 — — Total debt securities available for sale 20,613 71 20,542 — Loans held for sale, at fair value: Residential loans held for sale 1,778 — 1,778 — Commercial loans held for sale 168 — 168 — Total loans held for sale, at fair value 1,946 — 1,946 — Mortgage servicing rights 642 — — 642 Derivative assets: Interest rate contracts 773 — 773 — Foreign exchange contracts 174 — 174 — Other contracts 37 — 18 19 Total derivative assets 984 — 965 19 Equity securities, at fair value: Money market mutual fund investments 47 47 — — Total equity securities, at fair value 47 47 — — Total assets $24,232 $118 $23,453 $661 Derivative liabilities: Interest rate contracts $133 $— $133 $— Foreign exchange contracts 166 — 166 — Other contracts 23 — 23 — Total derivative liabilities 322 — 322 — Total liabilities $322 $— $322 $— The following table presents assets and liabilities measured at fair value including gross derivative assets and liabilities on a recurring basis at December 31, 2018 : (in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $19,866 $— $19,866 $— State and political subdivisions 5 — 5 — U.S. Treasury and other 24 24 — — Total debt securities available for sale 19,895 24 19,871 — Loans held for sale, at fair value: Residential loans held for sale 967 — 967 — Commercial loans held for sale 252 — 252 — Total loans held for sale, at fair value 1,219 — 1,219 — Mortgage servicing rights 600 — — 600 Derivative assets: Interest rate contracts 306 — 306 — Foreign exchange contracts 129 — 129 — Other contracts 14 — 14 — Total derivative assets 449 — 449 — Equity securities, at fair value: Money market mutual fund investments 181 181 — — Total equity securities, at fair value 181 181 — — Total assets $22,344 $205 $21,539 $600 Derivative liabilities: Interest rate contracts $277 $— $277 $— Foreign exchange contracts 113 — 113 — Other contracts 25 — 25 — Total derivative liabilities 415 — 415 — Total liabilities $415 $— $415 $— |
Assets measured at fair value on recurring basis | The following table present a rollforward of the balance sheet amounts for assets measured at fair value on a recurring basis and classified as Level 3 for the year ended December 31, 2019 . There were no other derivative contracts measured at fair value on a recurring basis and classified as Level 3 for the year ended December 31, 2018 . For the Year Ended December 31, 2019 2018 (in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Beginning balance $600 $— $— Acquired MSRs — — 590 Issuances 270 144 73 Settlements (1) (119 ) (161 ) (32 ) Changes in fair value during the period recognized in earnings (2) (109 ) 17 (31 ) Transfers from Level 2 to Level 3 (3) — 18 — Ending balance $642 $19 $600 (1) Represents changes in value of the MSRs due to i) passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and ii) loans that paid off during the period. (2) Represents changes in value primarily driven by market conditions. These changes are recorded in mortgage banking fees in the Consolidated Statements of Operations. (3) Reflects changes in the significance of unobservable inputs on derivative contracts associated with mortgage origination costs. |
Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings | The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Year Ended December 31, (in millions) 2019 2018 2017 Impaired collateral-dependent loans ($34 ) ($13 ) ($35 ) MSRs (1 ) 3 2 Leased assets (12 ) (7 ) (15 ) |
Fair value of assets and liabilities measured on a nonrecurring basis | The following table presents assets and liabilities measured at fair value on a nonrecurring basis: December 31, 2019 December 31, 2018 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $312 $— $312 $— $338 $— $338 $— MSRs 193 — — 193 243 — — 243 Leased assets 57 — 57 — 92 — 92 — |
Assets and liabilities measured at fair value | The following table presents the estimated fair value for financial instruments not recorded at fair value in the Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions: December 31, 2019 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Securities held to maturity $3,202 $3,242 $— $— $3,202 $3,242 $— $— Equity securities, at cost 807 807 — — 807 807 — — Other loans held for sale 1,384 1,384 — — — — 1,384 1,384 Loans and leases 119,088 119,792 — — 312 312 118,776 119,480 Financial liabilities: Deposits 125,313 125,340 — — 125,313 125,340 — — Federal funds purchased and securities sold under agreements to repurchase 265 265 — — 265 265 — — Other short-term borrowed funds 9 9 — — 9 9 — — Long-term borrowed funds 14,047 14,228 — — 14,047 14,228 — — December 31, 2018 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Securities held to maturity $4,165 $4,041 $— $— $4,165 $4,041 $— $— Equity securities, at cost 834 834 — — 834 834 — — Other loans held for sale 101 101 — — — — 101 101 Loans and leases 116,660 116,627 — — 338 338 116,322 116,289 Financial liabilities: Deposits 119,575 119,503 — — 119,575 119,503 — — Federal funds purchased and securities sold under agreements to repurchase 1,156 1,156 — — 1,156 1,156 — — Other short-term borrowed funds 161 161 — — 161 161 — — Long-term borrowed funds 15,925 15,877 — — 15,925 15,877 — — |
NONINTEREST INCOME (Tables)
NONINTEREST INCOME (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Noninterest income | The following table presents noninterest income, segregated between revenue from contracts with customers and revenue from other sources: December 31, (in millions) 2019 2018 Revenue from contracts with customers $1,172 $1,119 Revenue from other sources 705 477 Noninterest income $1,877 $1,596 |
Components of revenue from contracts with customers | The following table presents the components of revenue from contracts with customers disaggregated by revenue stream and business operating segment: Year Ended December 31, 2019 Year Ended December 31, 2018 (in millions) Consumer Banking Commercial Banking Consolidated (1) Consumer Banking Commercial Banking Consolidated (1) Service charges and fees $400 $103 $503 $408 $105 $513 Card fees 215 39 254 207 37 244 Capital markets fees — 202 202 — 181 181 Trust and investment services fees 202 — 202 171 — 171 Other banking fees 1 10 11 — 10 10 Total revenue from contracts with customers $818 $354 $1,172 $786 $333 $1,119 (1) There is no revenue from contracts with customers included in Other non-segment operations. |
Details of other income | Year Ended December 31, (in millions) 2019 2018 2017 Bank-owned life insurance $55 $56 $54 |
OTHER OPERATING EXPENSE (Tables
OTHER OPERATING EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expense | The following table presents the details of other operating expense: Year Ended December 31, (in millions) 2019 2018 2017 Promotional expense $112 $129 $105 Deposit insurance 62 104 137 Other 302 262 300 Other operating expense $476 $495 $542 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Comprehensive Income Tax | The following table presents total income tax expense: Year Ended December 31, (in millions) 2019 2018 2017 Income tax expense $460 $462 $260 Tax effect of changes in OCI 225 (96 ) (7 ) Total comprehensive income tax expense $685 $366 $253 |
Schedule of Components of Income Tax Expense | The following table presents the components of income tax expense: (in millions) Current Deferred Total Year Ended December 31, 2019 U.S. federal $323 $64 $387 State and local 73 — 73 Total $396 $64 $460 Year Ended December 31, 2018 U.S. federal $271 $90 $361 State and local 94 7 101 Total $365 $97 $462 Year Ended December 31, 2017 U.S. federal $376 ($142 ) $234 State and local 20 6 26 Total $396 ($136 ) $260 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation between the U.S. federal income tax rate and the Company’s effective income tax rate: Year Ended December 31, 2019 2018 2017 (in millions, except ratio data) Amount Rate Amount Rate Amount Rate U.S. federal income tax expense and tax rate $473 21.0 % $459 21.0 % $669 35.0 % Increase (decrease) resulting from: Federal rate change — — (34 ) (1.6 ) (331 ) (17.3 ) State and local income taxes (net of federal benefit) 73 3.2 89 4.1 46 2.4 Bank-owned life insurance (12 ) (0.5 ) (12 ) (0.5 ) (19 ) (1.0 ) Tax-exempt interest (15 ) (0.7 ) (15 ) (0.7 ) (21 ) (1.1 ) Tax advantaged investments (including related credits) (50 ) (2.3 ) (44 ) (2.0 ) (51 ) (2.7 ) Other tax credits (10 ) (0.4 ) (8 ) (0.4 ) (3 ) (0.1 ) Adjustments for uncertain tax positions — — 1 0.1 (23 ) (1.2 ) Non-deductible FDIC premiums 13 0.6 21 1.0 — — Legacy tax matters (19 ) (0.8 ) — — — — Other 7 0.3 5 0.2 (7 ) (0.4 ) Total income tax expense and tax rate $460 20.4 % $462 21.2 % $260 13.6 % |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities: December 31, (in millions) 2019 2018 Deferred tax assets: Other comprehensive income $141 $366 Allowance for credit losses 315 308 State net operating loss carryforwards 62 90 Accrued expenses not currently deductible 24 36 Investment and other tax credit carryforwards 89 74 Fair value adjustments — 28 Total deferred tax assets 631 902 Valuation allowance (79 ) (110 ) Deferred tax assets, net of valuation allowance 552 792 Deferred tax liabilities: Leasing transactions 513 527 Amortization of intangibles 370 364 Depreciation 186 195 Pension and other employee compensation plans 124 127 Partnerships 71 51 Deferred Income 79 50 MSRs 75 51 Total deferred tax liabilities 1,418 1,365 Net deferred tax liability $866 $573 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits: December 31, (in millions) 2019 2018 2017 Balance at the beginning of the year $8 $5 $42 Gross increase for tax positions related to current year — 3 — Gross decrease for tax positions related to prior years (2 ) — (27 ) Decrease for tax positions as a result of the lapse of the statutes of limitations (1 ) — (1 ) Decrease for tax positions related to settlements with taxing authorities — — (9 ) Balance at end of year $5 $8 $5 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Year Ended December 31, (in millions, except share and per-share data) 2019 2018 2017 Numerator (basic and diluted): Net income $1,791 $1,721 $1,652 Less: Preferred stock dividends 73 29 14 Net income available to common stockholders $1,718 $1,692 $1,638 Denominator: Weighted-average common shares outstanding - basic 449,731,453 478,822,072 502,157,440 Dilutive common shares: share-based awards 1,482,248 1,608,669 1,527,651 Weighted-average common shares outstanding - diluted 451,213,701 480,430,741 503,685,091 Earnings per common share: Basic $3.82 $3.54 $3.26 Diluted (1) 3.81 3.52 3.25 (1) Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive. Excluded from the computation of diluted EPS were weighted average antidilutive shares totaling 783 and 533 for the years ended December 31, 2019 and 2017 . There were no potentially dilutive shares to exclude from the calculation for the year ended December 31, 2018 . |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents the Company’s capital and capital ratios under U.S. Basel III Standardized rules. The Company has declared itself as an “AOCI opt-out” institution, which means the Company is not required to recognize in regulatory capital the impacts of net unrealized gains and losses included within AOCI for debt securities that are available for sale or held to maturity, accumulated net gains and losses on cash flow hedges and certain defined benefit pension plan assets. Actual Minimum Capital Adequacy (in millions, except ratio data) Amount Ratio Amount Ratio (1) As of December 31, 2019 CET1 capital $14,304 10.0 $10,004 7.000 % Tier 1 capital 15,874 11.1 12,148 8.500 Total capital 18,542 13.0 15,006 10.500 Tier 1 leverage 15,874 10.0 6,351 4.000 As of December 31, 2018 CET1 capital $14,485 10.6 % $8,683 6.375 % Tier 1 capital 15,325 11.3 10,726 7.875 Total capital 18,157 13.3 13,450 9.875 Tier 1 leverage 15,325 10.0 6,121 4.000 (1) “ Minimum Capital ratio” includes capital conservation buffer of 2.500% for 2019 and 1.875% for 2018; N/A to Tier 1 leverage. |
BUSINESS OPERATING SEGMENTS (Ta
BUSINESS OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | As of and for the Year Ended December 31, 2019 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $3,182 $1,466 ($34 ) $4,614 Noninterest income 1,156 607 114 1,877 Total revenue 4,338 2,073 80 6,491 Noninterest expense 2,851 858 138 3,847 Profit before provision for credit losses 1,487 1,215 (58 ) 2,644 Provision for credit losses 325 97 (29 ) 393 Income (loss) before income tax expense (benefit) 1,162 1,118 (29 ) 2,251 Income tax expense (benefit) 287 248 (75 ) 460 Net income $875 $870 $46 $1,791 Total average assets $66,240 $55,947 $39,989 $162,176 As of and for the Year Ended December 31, 2018 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $3,064 $1,497 ($29 ) $4,532 Noninterest income 973 545 78 1,596 Total revenue 4,037 2,042 49 6,128 Noninterest expense 2,723 813 83 3,619 Profit before provision for credit losses 1,314 1,229 (34 ) 2,509 Provision for credit losses 289 26 11 326 Income (loss) before income tax expense (benefit) 1,025 1,203 (45 ) 2,183 Income tax expense (benefit) 258 276 (72 ) 462 Net income $767 $927 $27 $1,721 Total average assets $62,444 $52,362 $39,747 $154,553 As of and for the Year Ended December 31, 2017 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,651 $1,411 $111 $4,173 Noninterest income 905 538 91 1,534 Total revenue 3,556 1,949 202 5,707 Noninterest expense 2,593 772 109 3,474 Profit before provision for credit losses 963 1,177 93 2,233 Provision for credit losses 265 19 37 321 Income before income tax expense (benefit) 698 1,158 56 1,912 Income tax expense (benefit) 246 384 (370 ) 260 Net income $452 $774 $426 $1,652 Total average assets $59,714 $49,747 $40,492 $149,953 |
PARENT COMPANY FINANCIALS (Tabl
PARENT COMPANY FINANCIALS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Operations | Condensed Statements of Operations Year Ended December 31, (in millions) 2019 2018 2017 OPERATING INCOME: Income from consolidated subsidiaries and excluding equity in undistributed earnings: Dividends from banking subsidiaries $1,130 $1,650 $1,055 Interest 48 46 43 Management and service fees 42 22 31 Income from nonbank subsidiaries and excluding equity in undistributed earnings: Dividends from nonbank subsidiaries 8 5 4 Interest 4 2 1 Equity securities gains — — 1 All other operating income 1 1 1 Total operating income 1,233 1,726 1,136 OPERATING EXPENSE: Salaries and employee benefits 35 25 40 Interest expense 87 89 97 All other expenses 27 23 22 Total operating expense 149 137 159 Income before taxes and undistributed income 1,084 1,589 977 Income taxes (10 ) (13 ) (10 ) Income before undistributed earnings of subsidiaries 1,094 1,602 987 Equity in undistributed earnings of subsidiaries: Bank 682 109 655 Nonbank 15 10 10 Net income $1,791 $1,721 $1,652 Other comprehensive income (loss), net of income taxes: Net pension plan activity arising during the period ($5 ) $5 ($1 ) Net unrealized derivative instrument gains arising during the period 2 2 1 Other comprehensive (loss) income activity of the Parent Company, net of income taxes (3 ) 7 — Other comprehensive income (loss) activity of Bank subsidiaries, net of income taxes 683 (283 ) (7 ) Total other comprehensive income (loss), net of income taxes 680 (276 ) (7 ) Total comprehensive income $2,471 $1,445 $1,645 |
Condensed Balance Sheets | Condensed Balance Sheets (in millions) December 31, 2019 December 31, 2018 ASSETS: Cash and due from banks $1,418 $961 Loans and advances to: Bank subsidiaries 1,146 1,158 Nonbank subsidiaries 120 70 Investments in subsidiaries: Bank subsidiaries 21,973 20,590 Nonbank subsidiaries 99 83 Other assets 127 117 TOTAL ASSETS $24,883 $22,979 LIABILITIES: Long-term borrowed funds due to unaffiliated companies $2,485 $1,987 Other liabilities 197 175 TOTAL LIABILITIES 2,682 2,162 TOTAL STOCKHOLDERS’ EQUITY 22,201 20,817 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $24,883 $22,979 |
Condensed Cash Flow Statements | Condensed Cash Flow Statements Year Ended December 31, (in millions) 2019 2018 2017 OPERATING ACTIVITIES Net income $1,791 $1,721 $1,652 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes (8 ) 17 (11 ) Gain on sales of assets — — (1 ) Equity in undistributed earnings of subsidiaries (697 ) (120 ) (665 ) Increase in other liabilities 50 11 99 Decrease (increase) in other assets 7 (7 ) 5 Other operating, net 58 40 (1 ) Net cash provided by operating activities 1,201 1,662 1,078 INVESTING ACTIVITIES Investments in and advances to subsidiaries (105 ) — (230 ) Repayment of investments in and advances to subsidiaries 55 — 167 Other investing, net (1 ) (1 ) (1 ) Net cash used by investing activities (51 ) (1 ) (64 ) FINANCING ACTIVITIES Proceeds from issuance of long-term borrowed funds 500 — — Repayments of long-term borrowed funds — (333 ) — Proceeds from issuance of common stock — — 34 Treasury stock purchased (1,220 ) (1,025 ) (820 ) Net proceeds from issuance of preferred stock 730 593 — Dividends declared and paid to common stockholders (617 ) (471 ) (322 ) Dividends declared and paid to preferred stockholders (65 ) (14 ) (14 ) Other financing, net (21 ) (13 ) — Net cash used by financing activities (693 ) (1,263 ) (1,122 ) Increase (decrease) in cash and due from banks 457 398 (108 ) Cash and due from banks at beginning of year 961 563 671 Cash and due from banks at end of year $1,418 $961 $563 |
BASIS OF PRESENTATION - Narrati
BASIS OF PRESENTATION - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Mar. 01, 2019 | Jan. 01, 2019 | Dec. 31, 2023 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 7,044 | $ 6,923 | $ 6,887 | ||||||
Cumulative effect of change in accounting standards | $ 5 | $ 17 | |||||||
Right-of-use asset | 699 | ||||||||
Lease liability | 721 | ||||||||
Allowance for credit losses | $ 1,296 | $ 1,333 | |||||||
Clarfeld | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | 110 | ||||||||
Goodwill | 83 | ||||||||
Intangible assets acquired | 21 | ||||||||
Bowstring | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 40 | ||||||||
Goodwill | 35 | ||||||||
Intangible assets acquired | $ 6 | ||||||||
Accounting Standards Update 2016-02 | |||||||||
Business Acquisition [Line Items] | |||||||||
Right-of-use asset | 734 | ||||||||
Lease liability | 749 | ||||||||
Forecast | Accounting Standards Update 2016-13 | |||||||||
Business Acquisition [Line Items] | |||||||||
Basis point change in CET1 | (0.24%) | (0.06%) | |||||||
Retained Earnings | |||||||||
Business Acquisition [Line Items] | |||||||||
Cumulative effect of change in accounting standards | $ 12 | ||||||||
Retained Earnings | Accounting Standards Update 2016-02 | |||||||||
Business Acquisition [Line Items] | |||||||||
Cumulative effect of change in accounting standards | $ 12 | ||||||||
Subsequent Event | Forecast | Accounting Standards Update 2016-13 | |||||||||
Business Acquisition [Line Items] | |||||||||
Allowance for credit losses | $ 450 | ||||||||
Capital impact phase in percentage | 25.00% |
CASH AND DUE FROM BANKS (Detail
CASH AND DUE FROM BANKS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |||
Deposits on FRB balances | $ 2,100 | $ 3,000 | |
Interest rate on FRB balances | 1.55% | ||
Interest earned on FRB balances | $ 28 | $ 28 | $ 16 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Taxable interest income from investment securities | $ 642 | $ 672 | $ 625 |
Mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Securitizations of mortgage loans | $ 150 | $ 142 | $ 134 |
SECURITIES - Schedule of Invest
SECURITIES - Schedule of Investments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-Sale, Amortized Cost | $ 20,517 | $ 20,476 | |
Debt Securities Available-for-Sale, Gross Unrealized Gains | 167 | 31 | |
Debt Securities Available-for-Sale, Gross Unrealized Losses | (71) | (612) | |
Debt securities available for sale: | [1] | 20,613 | 19,895 |
Debt Securities Held-to-Maturity, Amortized Cost | [1] | 3,202 | 4,165 |
Debt Securities Held-to-Maturity, Gross Unrealized Gain | 45 | 8 | |
Debt Securities Held-to-Maturity, Gross Unrealized Losses | (5) | (132) | |
Debt Securities Held-to-Maturity, Fair Value | 3,242 | 4,041 | |
Equity Securities, at Fair Value, Amortized Cost | 47 | 181 | |
Equity investment securities, at fair value | 47 | 181 | |
Other equity securities, Amortized Cost | 8 | 7 | |
Other equity securities, Fair Value | 8 | 7 | |
Total equity securities, at cost, Amortized Cost | 807 | 834 | |
Total equity securities, at cost, Fair Value | 807 | 834 | |
U.S. Treasury and other | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-Sale, Amortized Cost | 71 | 24 | |
Debt Securities Available-for-Sale, Gross Unrealized Gains | 0 | 0 | |
Debt Securities Available-for-Sale, Gross Unrealized Losses | 0 | 0 | |
Debt securities available for sale: | 71 | 24 | |
State and political subdivisions | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-Sale, Amortized Cost | 5 | 5 | |
Debt Securities Available-for-Sale, Gross Unrealized Gains | 0 | 0 | |
Debt Securities Available-for-Sale, Gross Unrealized Losses | 0 | 0 | |
Debt securities available for sale: | 5 | 5 | |
Federal agencies and U.S. government sponsored entities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-Sale, Amortized Cost | 19,803 | 20,211 | |
Debt Securities Available-for-Sale, Gross Unrealized Gains | 143 | 28 | |
Debt Securities Available-for-Sale, Gross Unrealized Losses | (71) | (605) | |
Debt securities available for sale: | 19,875 | 19,634 | |
Debt Securities Held-to-Maturity, Amortized Cost | 3,202 | 3,425 | |
Debt Securities Held-to-Maturity, Gross Unrealized Gain | 45 | 0 | |
Debt Securities Held-to-Maturity, Gross Unrealized Losses | (5) | (132) | |
Debt Securities Held-to-Maturity, Fair Value | 3,242 | 3,293 | |
Other/non-agency | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-Sale, Amortized Cost | 638 | 236 | |
Debt Securities Available-for-Sale, Gross Unrealized Gains | 24 | 3 | |
Debt Securities Available-for-Sale, Gross Unrealized Losses | 0 | (7) | |
Debt securities available for sale: | 662 | 232 | |
Debt Securities Held-to-Maturity, Amortized Cost | 0 | 740 | |
Debt Securities Held-to-Maturity, Gross Unrealized Gain | 0 | 8 | |
Debt Securities Held-to-Maturity, Gross Unrealized Losses | 0 | 0 | |
Debt Securities Held-to-Maturity, Fair Value | 0 | 748 | |
Total mortgage-backed securities, at fair value | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-Sale, Amortized Cost | 20,441 | 20,447 | |
Debt Securities Available-for-Sale, Gross Unrealized Gains | 167 | 31 | |
Debt Securities Available-for-Sale, Gross Unrealized Losses | (71) | (612) | |
Debt securities available for sale: | 20,537 | 19,866 | |
Debt Securities Held-to-Maturity, Amortized Cost | 3,202 | 4,165 | |
Debt Securities Held-to-Maturity, Gross Unrealized Gain | 45 | 8 | |
Debt Securities Held-to-Maturity, Gross Unrealized Losses | (5) | (132) | |
Debt Securities Held-to-Maturity, Fair Value | 3,242 | 4,041 | |
Money market mutual fund investments | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Equity Securities, at Fair Value, Amortized Cost | 47 | 181 | |
Equity investment securities, at fair value | 47 | 181 | |
Federal Reserve Bank stock | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Federal Reserve Bank stock, Amortized Cost | 577 | 463 | |
Federal Reserve Bank stock, Fair Value | 577 | 463 | |
Federal Home Loan Bank stock | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Federal Home Loan Bank stock, Amortized Cost | 222 | 364 | |
Federal Home Loan Bank stock, Fair Value | $ 222 | $ 364 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
SECURITIES - Schedule of Availa
SECURITIES - Schedule of Available for Sale Securities Debt Maturities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Amortized Cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | $ 71 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 215 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,534 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 18,697 |
Amortized Cost, Debt securities available for sale, Total | 20,517 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 3,202 |
Amortized Cost, Debt securities held to maturity, Total | 3,202 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 71 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 215 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 1,534 |
Total amortized cost of debt securities, Maturity After 10 Years | 21,899 |
Total amortized cost of debt securities, Total | 23,719 |
Fair Value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 71 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 217 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,553 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 18,772 |
Fair Value, Debt securities available for sale, Total | 20,613 |
Fair Value, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 3,242 |
Fair Value, Debt securities held to maturity, Total | 3,242 |
Total fair value of debt securities, Maturity of 1 Year or Less | 71 |
Total fair value of debt securities, Maturity of 1-5 Years | 217 |
Total fair value of debt securities, Maturity of 5-10 Years | 1,553 |
Total fair value of debt securities, Maturity After 10 Years | 22,014 |
Total fair value of debt securities, Total | 23,855 |
U.S. Treasury and other | |
Amortized Cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 71 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 0 |
Amortized Cost, Debt securities available for sale, Total | 71 |
Fair Value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 71 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 0 |
Fair Value, Debt securities available for sale, Total | 71 |
State and political subdivisions | |
Amortized Cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 5 |
Amortized Cost, Debt securities available for sale, Total | 5 |
Fair Value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 5 |
Fair Value, Debt securities available for sale, Total | 5 |
Federal agencies and U.S. government sponsored entities | |
Amortized Cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 215 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,534 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 18,054 |
Amortized Cost, Debt securities available for sale, Total | 19,803 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 3,202 |
Amortized Cost, Debt securities held to maturity, Total | 3,202 |
Fair Value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 217 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,553 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 18,105 |
Fair Value, Debt securities available for sale, Total | 19,875 |
Fair Value, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 3,242 |
Fair Value, Debt securities held to maturity, Total | 3,242 |
Other/non-agency | |
Amortized Cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 638 |
Amortized Cost, Debt securities available for sale, Total | 638 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Total | 0 |
Fair Value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 662 |
Fair Value, Debt securities available for sale, Total | $ 662 |
SECURITIES - Income Recognized
SECURITIES - Income Recognized from Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gain (Loss) on Sale of Investments [Abstract] | |||
Gains on sale of debt securities | $ 41 | $ 19 | $ 11 |
Losses on sale of debt securities | (16) | 0 | 0 |
Debt securities gains, net | 25 | 19 | 11 |
Equity securities gains | 0 | $ 0 | $ 1 |
Mortgage banking fees | |||
Gain (Loss) on Sale of Investments [Abstract] | |||
Gains on sale of debt securities | $ 6 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Pledged (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Pledged against repurchase agreements, Amortized Cost | $ 265 | $ 344 |
Pledged against FHLB borrowed funds, Amortized Cost | 638 | 745 |
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law, Amortized Cost | 3,670 | 3,592 |
Pledged against repurchase agreements, Fair Value | 266 | 338 |
Pledged against FHLB borrowed funds, Fair Value | 662 | 752 |
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law, Fair Value | $ 3,672 | $ 3,460 |
SECURITIES - Other than tempora
SECURITIES - Other than temporary impairment recognized in earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Total other-than-temporary impairment losses | $ (2) | $ (7) | $ (7) |
Portions of loss recognized in other comprehensive income (before taxes) | 0 | 4 | 0 |
Net securities impairment losses recognized in earnings on debt securities | $ (2) | $ (3) | $ (7) |
SECURITIES - Schedule of Inve_2
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) $ in Millions | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Number of Issues | ||
Less than 12 Months | security | 106 | 176 |
12 Months or Longer | security | 120 | 440 |
Total | security | 226 | 616 |
Fair Value | ||
Less than 12 Months | $ 5,135 | $ 5,020 |
12 Months or Longer | 3,748 | 15,196 |
Total | 8,883 | 20,216 |
Gross Unrealized Losses | ||
Less than 12 Months | (24) | (90) |
12 Months or Longer | (52) | (654) |
Total | $ (76) | $ (744) |
Federal agencies and U.S. government sponsored entities | ||
Number of Issues | ||
Less than 12 Months | security | 106 | 166 |
12 Months or Longer | security | 120 | 429 |
Total | security | 226 | 595 |
Fair Value | ||
Less than 12 Months | $ 5,135 | $ 4,881 |
12 Months or Longer | 3,748 | 15,124 |
Total | 8,883 | 20,005 |
Gross Unrealized Losses | ||
Less than 12 Months | (24) | (89) |
12 Months or Longer | (52) | (648) |
Total | $ (76) | $ (737) |
Other/non-agency | ||
Number of Issues | ||
Less than 12 Months | security | 0 | 10 |
12 Months or Longer | security | 0 | 11 |
Total | security | 0 | 21 |
Fair Value | ||
Less than 12 Months | $ 0 | $ 139 |
12 Months or Longer | 0 | 72 |
Total | 0 | 211 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | (1) |
12 Months or Longer | 0 | (6) |
Total | $ 0 | $ (7) |
LOANS AND LEASES - Narrative (D
LOANS AND LEASES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest income on direct financing and sales-type leases | $ 77 | |
Retail | Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral for FHLB borrowed funds | 25,300 | $ 25,600 |
Retail | Education loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchases | 1,100 | 457 |
Retail | Other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchases | 530 | |
Retail | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sales | 628 | |
Retail | Retail ,TDRs | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sales | 22 | |
Commercial | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sales | 454 | 553 |
Retail and Commercial | Auto, commercial and commercial real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window | $ 17,400 | $ 16,800 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Term of contract | 3 years | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Term of contract | 7 years |
LOANS AND LEASES - Summary of L
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 119,088 | $ 116,660 |
Loans held for sale | 3,300 | 1,300 |
Mortgage loans serviced for others | Banking Subsidiaries | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 77,500 | 69,600 |
SBA Loans Serviced For Others | Banking Subsidiaries | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 33 | 0 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 57,538 | 56,783 |
Commercial | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 41,479 | 40,857 |
Commercial | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 13,522 | 13,023 |
Commercial | Leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 2,537 | 2,903 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 61,550 | 59,877 |
Retail | Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 19,083 | 18,978 |
Retail | Home equity loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 812 | 1,073 |
Retail | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 11,979 | 12,710 |
Retail | Home equity loans serviced by others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 289 | 399 |
Retail | Home equity lines of credit serviced by others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 74 | 104 |
Retail | Automobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 12,120 | 12,106 |
Retail | Education | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 10,347 | 8,900 |
Retail | Credit cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 2,198 | 1,991 |
Retail | Other retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 4,648 | $ 3,616 |
LOANS AND LEASES - Loans Held F
LOANS AND LEASES - Loans Held For Sale (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale, at fair value | $ 1,946 | $ 1,219 |
Other loans held for sale | 1,384 | 101 |
Residential loans held for sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale, at fair value | 1,778 | 967 |
Other loans held for sale | 1,101 | 0 |
Commercial loans held for sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale, at fair value | 168 | 252 |
Other loans held for sale | 283 | $ 101 |
Loan Portfolio Transfer, One | Residential loans held for sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other loans held for sale | 524 | |
Loan Portfolio Transfer, Two | Residential loans held for sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other loans held for sale | $ 575 |
LOANS AND LEASES - Components o
LOANS AND LEASES - Components of Investments in Leases (Details) $ in Millions | Dec. 31, 2019USD ($) |
Receivables [Abstract] | |
Total future minimum lease rentals | $ 1,739 |
Estimated residual value of leased equipment (non-guaranteed) | 1,013 |
Initial direct costs | 10 |
Unearned income | (225) |
Total leases | $ 2,537 |
LOANS AND LEASES - Maturity of
LOANS AND LEASES - Maturity of Direct Finance Lease (Details) $ in Millions | Dec. 31, 2019USD ($) |
Receivables [Abstract] | |
2020 | $ 496 |
2021 | 385 |
2022 | 288 |
2023 | 220 |
2024 | 145 |
Thereafter | 205 |
Total undiscounted future minimum lease rentals | $ 1,739 |
ALLOWANCE FOR CREDIT LOSSES, _3
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Minimum qualifying balance | $ 3 | ||
Nonperforming assets, net of valuation allowance | 45 | $ 34 | |
Mortgage loans collateralized by residential real estate property | 152 | 172 | |
Net change to ALLL resulting from modifications | 9 | 3 | $ 1 |
Charge-offs resulting from modification | $ 7 | 5 | 5 |
High loan to value criteria (exceeds) | 90.00% | ||
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance Defaulted | $ 1 | 63 | 9 |
Retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance Defaulted | $ 37 | $ 40 | $ 41 |
ALLOWANCE FOR CREDIT LOSSES, _4
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | $ 1,242 | ||
Provision charged to income | 393 | $ 326 | $ 321 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,252 | 1,242 | |
Allowance for loan and lease losses | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 1,242 | 1,236 | 1,236 |
Charge-offs | (615) | (494) | (512) |
Recoveries | 185 | 177 | 207 |
Net charge-offs | (430) | (317) | (305) |
Provision charged to income | 440 | 323 | 305 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,252 | 1,242 | 1,236 |
Reserve for unfunded lending commitments | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 91 | 88 | 72 |
Provision for unfunded lending commitments | (47) | 3 | 16 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 44 | 91 | 88 |
Allowance for loan and lease losses and reserve for off-balance sheet activities, total | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 1,333 | 1,324 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,296 | 1,333 | 1,324 |
Commercial | Allowance for loan and lease losses | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 690 | 685 | 663 |
Charge-offs | (140) | (52) | (75) |
Recoveries | 24 | 19 | 40 |
Net charge-offs | (116) | (33) | (35) |
Provision charged to income | 100 | 38 | 57 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 674 | 690 | 685 |
Commercial | Reserve for unfunded lending commitments | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 91 | 88 | 72 |
Provision for unfunded lending commitments | (47) | 3 | 16 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 44 | 91 | 88 |
Commercial | Allowance for loan and lease losses and reserve for off-balance sheet activities, total | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 781 | 773 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 718 | 781 | 773 |
Retail | Allowance for loan and lease losses | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 552 | 551 | 573 |
Charge-offs | (475) | (442) | (437) |
Recoveries | 161 | 158 | 167 |
Net charge-offs | (314) | (284) | (270) |
Provision charged to income | 340 | 285 | 248 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 578 | 552 | 551 |
Retail | Reserve for unfunded lending commitments | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 0 | 0 | 0 |
Provision for unfunded lending commitments | 0 | 0 | 0 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 0 | 0 | 0 |
Retail | Allowance for loan and lease losses and reserve for off-balance sheet activities, total | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 552 | 551 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | $ 578 | $ 552 | 551 |
Scenario, Adjustment | Commercial | Allowance for loan and lease losses | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision charged to income | $ 50 |
ALLOWANCE FOR CREDIT LOSSES, _5
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Loan and Leases (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Individually evaluated | $ 1,066 | $ 1,114 |
Formula-based evaluation | 118,022 | 115,546 |
Total loans and leases | 119,088 | 116,660 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Individually evaluated | 399 | 391 |
Formula-based evaluation | 57,139 | 56,392 |
Total loans and leases | 57,538 | 56,783 |
Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Individually evaluated | 667 | 723 |
Formula-based evaluation | 60,883 | 59,154 |
Total loans and leases | $ 61,550 | $ 59,877 |
ALLOWANCE FOR CREDIT LOSSES, _6
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Summary of Allowance for Credit Losses by Evaluation Method (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated | $ 110 | $ 64 |
Formula-based evaluation | 1,186 | 1,269 |
Allowance for credit losses | 1,296 | 1,333 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated | 85 | 38 |
Formula-based evaluation | 633 | 743 |
Allowance for credit losses | 718 | 781 |
Retail | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated | 25 | 26 |
Formula-based evaluation | 553 | 526 |
Allowance for credit losses | $ 578 | $ 552 |
ALLOWANCE FOR CREDIT LOSSES, _7
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Commercial Loans and Leases by Regulatory Classification Ratings (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 119,088 | $ 116,660 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 57,538 | 56,783 |
Commercial | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 41,479 | 40,857 |
Commercial | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 13,522 | 13,023 |
Commercial | Leases | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,537 | 2,903 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 54,502 | 53,946 |
Commercial | Pass | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 38,950 | 38,600 |
Commercial | Pass | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 13,169 | 12,523 |
Commercial | Pass | Leases | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,383 | 2,823 |
Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,778 | 1,682 |
Commercial | Special Mention | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,351 | 1,231 |
Commercial | Special Mention | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 318 | 412 |
Commercial | Special Mention | Leases | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 109 | 39 |
Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,009 | 951 |
Commercial | Substandard | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 934 | 828 |
Commercial | Substandard | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 33 | 82 |
Commercial | Substandard | Leases | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 42 | 41 |
Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 249 | 204 |
Commercial | Doubtful | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 244 | 198 |
Commercial | Doubtful | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2 | 6 |
Commercial | Doubtful | Leases | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 3 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES, _8
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Retail Loans by Delinquency Status (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total loans and leases | $ 119,088 | $ 116,660 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 511 | 493 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 212 | 177 |
Financing Receivables, 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 419 | 587 |
Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 58,651 | 56,883 |
Total loans and leases | 61,550 | 59,877 |
Retail | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 18,818 | 18,664 |
Total loans and leases | 19,083 | 18,978 |
Retail | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 713 | 945 |
Total loans and leases | 812 | 1,073 |
Retail | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 11,383 | 12,042 |
Total loans and leases | 11,979 | 12,710 |
Retail | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 244 | 355 |
Total loans and leases | 289 | 399 |
Retail | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 50 | 79 |
Total loans and leases | 74 | 104 |
Retail | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 10,787 | 10,729 |
Total loans and leases | 12,120 | 12,106 |
Retail | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 10,088 | 8,694 |
Total loans and leases | 10,347 | 8,900 |
Retail | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 2,076 | 1,894 |
Total loans and leases | 2,198 | 1,991 |
Retail | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 4,492 | 3,481 |
Total loans and leases | 4,648 | 3,616 |
Retail | Financing Receivables, 1 to 29 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,937 | 1,955 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 129 | 131 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 64 | 75 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 346 | 386 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 23 | 21 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 11 | 15 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,001 | 1,039 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 202 | 159 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 74 | 53 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 87 | 76 |
Retail | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 428 | 393 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 35 | 37 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 10 | 12 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 72 | 65 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 7 | 7 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 2 | 2 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 227 | 207 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 30 | 23 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 15 | 14 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 30 | 26 |
Retail | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 184 | 142 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 17 | 13 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 4 | 3 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 32 | 22 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 3 | 3 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1 | 1 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 81 | 59 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 15 | 13 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 11 | 10 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 20 | 18 |
Retail | Financing Receivables, 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 350 | 504 |
Retail | Financing Receivables, 90 Days or More Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 84 | 133 |
Retail | Financing Receivables, 90 Days or More Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 21 | 38 |
Retail | Financing Receivables, 90 Days or More Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 146 | 195 |
Retail | Financing Receivables, 90 Days or More Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 12 | 13 |
Retail | Financing Receivables, 90 Days or More Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 10 | 7 |
Retail | Financing Receivables, 90 Days or More Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 24 | 72 |
Retail | Financing Receivables, 90 Days or More Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 12 | 11 |
Retail | Financing Receivables, 90 Days or More Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 22 | 20 |
Retail | Financing Receivables, 90 Days or More Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 19 | $ 15 |
ALLOWANCE FOR CREDIT LOSSES, _9
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Nonperforming Loans and Leases by Class (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | $ 703 | $ 766 |
Loans accruing and 90 days or more past due | 25 | 25 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 245 | 201 |
Loans accruing and 90 days or more past due | 2 | 1 |
Commercial | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 240 | 194 |
Loans accruing and 90 days or more past due | 2 | 1 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 2 | 7 |
Loans accruing and 90 days or more past due | 0 | 0 |
Commercial | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 3 | 0 |
Loans accruing and 90 days or more past due | 0 | 0 |
Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 458 | 565 |
Loans accruing and 90 days or more past due | 23 | 24 |
Retail | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 93 | 105 |
Loans accruing and 90 days or more past due | 13 | 15 |
Retail | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 33 | 50 |
Loans accruing and 90 days or more past due | 0 | 0 |
Retail | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 187 | 231 |
Loans accruing and 90 days or more past due | 0 | 0 |
Retail | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 14 | 17 |
Loans accruing and 90 days or more past due | 0 | 0 |
Retail | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 12 | 15 |
Loans accruing and 90 days or more past due | 0 | 0 |
Retail | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 67 | 81 |
Loans accruing and 90 days or more past due | 0 | 0 |
Retail | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 18 | 38 |
Loans accruing and 90 days or more past due | 2 | 2 |
Retail | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 22 | 20 |
Loans accruing and 90 days or more past due | 0 | 0 |
Retail | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans | 12 | 8 |
Loans accruing and 90 days or more past due | $ 8 | $ 7 |
ALLOWANCE FOR CREDIT LOSSES,_10
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Performance Indicators for Nonperforming Assets (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.59% | 0.66% |
Nonperforming assets as a percentage of total assets | 0.45% | 0.50% |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.21% | 0.17% |
Nonperforming assets as a percentage of total assets | 0.15% | 0.13% |
Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.38% | 0.49% |
Nonperforming assets as a percentage of total assets | 0.30% | 0.37% |
ALLOWANCE FOR CREDIT LOSSES,_11
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Accruing and Nonaccruing Past Due Amounts (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 511 | $ 493 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 212 | 177 |
Financing Receivables, 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 419 | 587 |
Financing Receivables, Equal To Or Greater Than 30 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,142 | 1,257 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 83 | 100 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 45 | 85 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1 | 8 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 37 | 7 |
Commercial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 28 | 35 |
Commercial | Financing Receivables, 60 to 89 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 27 | 3 |
Commercial | Financing Receivables, 60 to 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1 | 32 |
Commercial | Financing Receivables, 60 to 89 Days Past Due | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial | Financing Receivables, 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 69 | 83 |
Commercial | Financing Receivables, 90 Days or More Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 67 | 78 |
Commercial | Financing Receivables, 90 Days or More Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 5 |
Commercial | Financing Receivables, 90 Days or More Past Due | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 2 | 0 |
Commercial | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 180 | 218 |
Commercial | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 139 | 166 |
Commercial | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 2 | 45 |
Commercial | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 39 | 7 |
Retail | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 428 | 393 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 35 | 37 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 10 | 12 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 72 | 65 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 7 | 7 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 2 | 2 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 227 | 207 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 30 | 23 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 15 | 14 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 30 | 26 |
Retail | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 184 | 142 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 17 | 13 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 4 | 3 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 32 | 22 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 3 | 3 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1 | 1 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 81 | 59 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 15 | 13 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 11 | 10 |
Retail | Financing Receivables, 60 to 89 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 20 | 18 |
Retail | Financing Receivables, 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 350 | 504 |
Retail | Financing Receivables, 90 Days or More Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 84 | 133 |
Retail | Financing Receivables, 90 Days or More Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 21 | 38 |
Retail | Financing Receivables, 90 Days or More Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 146 | 195 |
Retail | Financing Receivables, 90 Days or More Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 12 | 13 |
Retail | Financing Receivables, 90 Days or More Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 10 | 7 |
Retail | Financing Receivables, 90 Days or More Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 24 | 72 |
Retail | Financing Receivables, 90 Days or More Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 12 | 11 |
Retail | Financing Receivables, 90 Days or More Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 22 | 20 |
Retail | Financing Receivables, 90 Days or More Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 19 | 15 |
Retail | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 962 | 1,039 |
Retail | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 136 | 183 |
Retail | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 35 | 53 |
Retail | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 250 | 282 |
Retail | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 22 | 23 |
Retail | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 13 | 10 |
Retail | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 332 | 338 |
Retail | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 57 | 47 |
Retail | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 48 | 44 |
Retail | Financing Receivables, Equal To Or Greater Than 30 Days Past Due | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 69 | $ 59 |
ALLOWANCE FOR CREDIT LOSSES,_12
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Impaired Loans by Class (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | $ 480 | $ 483 |
Allowance on Impaired Loans | 110 | 64 |
Impaired Loans Without a Related Allowance | 586 | 631 |
Unpaid Contractual Balance | 1,288 | 1,363 |
Total Recorded Investment in Impaired Loans | 1,066 | 1,114 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 243 | 218 |
Allowance on Impaired Loans | 85 | 38 |
Impaired Loans Without a Related Allowance | 156 | 173 |
Unpaid Contractual Balance | 477 | 488 |
Total Recorded Investment in Impaired Loans | 399 | 391 |
Commercial | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 243 | 186 |
Allowance on Impaired Loans | 85 | 31 |
Impaired Loans Without a Related Allowance | 137 | 167 |
Unpaid Contractual Balance | 458 | 450 |
Total Recorded Investment in Impaired Loans | 380 | 353 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 0 | 32 |
Allowance on Impaired Loans | 0 | 7 |
Impaired Loans Without a Related Allowance | 19 | 6 |
Unpaid Contractual Balance | 19 | 38 |
Total Recorded Investment in Impaired Loans | 19 | 38 |
Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 237 | 265 |
Allowance on Impaired Loans | 25 | 26 |
Impaired Loans Without a Related Allowance | 430 | 458 |
Unpaid Contractual Balance | 811 | 875 |
Total Recorded Investment in Impaired Loans | 667 | 723 |
Retail | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 29 | 28 |
Allowance on Impaired Loans | 2 | 2 |
Impaired Loans Without a Related Allowance | 125 | 127 |
Unpaid Contractual Balance | 196 | 201 |
Total Recorded Investment in Impaired Loans | 154 | 155 |
Retail | Home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 22 | 34 |
Allowance on Impaired Loans | 1 | 3 |
Impaired Loans Without a Related Allowance | 65 | 76 |
Unpaid Contractual Balance | 121 | 148 |
Total Recorded Investment in Impaired Loans | 87 | 110 |
Retail | Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 27 | 21 |
Allowance on Impaired Loans | 2 | 1 |
Impaired Loans Without a Related Allowance | 173 | 181 |
Unpaid Contractual Balance | 242 | 244 |
Total Recorded Investment in Impaired Loans | 200 | 202 |
Retail | Home equity loans serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 15 | 22 |
Allowance on Impaired Loans | 1 | 1 |
Impaired Loans Without a Related Allowance | 16 | 19 |
Unpaid Contractual Balance | 41 | 54 |
Total Recorded Investment in Impaired Loans | 31 | 41 |
Retail | Home equity lines of credit serviced by others | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 1 | 1 |
Allowance on Impaired Loans | 0 | 0 |
Impaired Loans Without a Related Allowance | 5 | 7 |
Unpaid Contractual Balance | 9 | 11 |
Total Recorded Investment in Impaired Loans | 6 | 8 |
Retail | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 1 | 1 |
Allowance on Impaired Loans | 0 | 0 |
Impaired Loans Without a Related Allowance | 20 | 22 |
Unpaid Contractual Balance | 30 | 31 |
Total Recorded Investment in Impaired Loans | 21 | 23 |
Retail | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 112 | 130 |
Allowance on Impaired Loans | 9 | 11 |
Impaired Loans Without a Related Allowance | 22 | 23 |
Unpaid Contractual Balance | 135 | 153 |
Total Recorded Investment in Impaired Loans | 134 | 153 |
Retail | Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 27 | 24 |
Allowance on Impaired Loans | 9 | 7 |
Impaired Loans Without a Related Allowance | 1 | 1 |
Unpaid Contractual Balance | 29 | 25 |
Total Recorded Investment in Impaired Loans | 28 | 25 |
Retail | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 3 | 4 |
Allowance on Impaired Loans | 1 | 1 |
Impaired Loans Without a Related Allowance | 3 | 2 |
Unpaid Contractual Balance | 8 | 8 |
Total Recorded Investment in Impaired Loans | $ 6 | $ 6 |
ALLOWANCE FOR CREDIT LOSSES,_13
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Additional Impaired Loan Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | $ 42 | $ 41 | $ 35 |
Average Recorded Investment | 936 | 1,031 | 1,130 |
Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 12 | 10 | 4 |
Average Recorded Investment | 350 | 344 | 417 |
Commercial | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 11 | 9 | 4 |
Average Recorded Investment | 311 | 312 | 380 |
Commercial | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 1 | 1 | 0 |
Average Recorded Investment | 39 | 32 | 37 |
Retail | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 30 | 31 | 31 |
Average Recorded Investment | 586 | 687 | 713 |
Retail | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 5 | 5 | 4 |
Average Recorded Investment | 126 | 146 | 136 |
Retail | Home equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 5 | 6 | 6 |
Average Recorded Investment | 84 | 107 | 121 |
Retail | Home equity lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 7 | 7 | 6 |
Average Recorded Investment | 172 | 181 | 176 |
Retail | Home equity loans serviced by others | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 2 | 3 | 3 |
Average Recorded Investment | 30 | 42 | 49 |
Retail | Home equity lines of credit serviced by others | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 0 | 0 | 0 |
Average Recorded Investment | 6 | 9 | 9 |
Retail | Automobile | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 1 | 1 | 1 |
Average Recorded Investment | 17 | 20 | 18 |
Retail | Education | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 8 | 8 | 9 |
Average Recorded Investment | 125 | 154 | 173 |
Retail | Credit cards | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 2 | 1 | 2 |
Average Recorded Investment | 21 | 21 | 22 |
Retail | Other retail | |||
Financing Receivable, Past Due [Line Items] | |||
Interest Income Recognized | 0 | 0 | 0 |
Average Recorded Investment | $ 5 | $ 7 | $ 9 |
ALLOWANCE FOR CREDIT LOSSES,_14
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - TDRs and Unfunded Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded commitments related to TDRs | $ 42 | $ 30 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDR balance included in impaired loans | 297 | 304 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDR balance included in impaired loans | $ 667 | $ 723 |
ALLOWANCE FOR CREDIT LOSSES,_15
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Troubled Debt Restructuring (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract | |
Interest Rate Reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 3,678 | 2,641 | 2,724 |
Recorded Investment | $ | $ 53 | $ 32 | $ 36 |
Maturity Extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 182 | 339 | 386 |
Recorded Investment | $ | $ 26 | $ 88 | $ 66 |
Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 2,632 | 2,334 | 2,562 |
Recorded Investment | $ | $ 279 | $ 308 | $ 161 |
Commercial | Interest Rate Reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 3 | 7 | 7 |
Recorded Investment | $ | $ 0 | $ 1 | $ 1 |
Commercial | Interest Rate Reduction | Commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 3 | 7 | 7 |
Recorded Investment | $ | $ 0 | $ 1 | $ 1 |
Commercial | Interest Rate Reduction | Commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Commercial | Maturity Extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 27 | 52 | 46 |
Recorded Investment | $ | $ 5 | $ 53 | $ 22 |
Commercial | Maturity Extension | Commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 26 | 49 | 45 |
Recorded Investment | $ | $ 5 | $ 22 | $ 22 |
Commercial | Maturity Extension | Commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 3 | 1 |
Recorded Investment | $ | $ 0 | $ 31 | $ 0 |
Commercial | Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 56 | 55 | 16 |
Recorded Investment | $ | $ 210 | $ 231 | $ 71 |
Commercial | Other | Commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 56 | 53 | 15 |
Recorded Investment | $ | $ 210 | $ 200 | $ 71 |
Commercial | Other | Commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 2 | 1 |
Recorded Investment | $ | $ 0 | $ 31 | $ 0 |
Retail | Interest Rate Reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 3,675 | 2,634 | 2,717 |
Recorded Investment | $ | $ 53 | $ 31 | $ 35 |
Retail | Interest Rate Reduction | Residential mortgages | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 60 | 35 | 71 |
Recorded Investment | $ | $ 12 | $ 4 | $ 10 |
Retail | Interest Rate Reduction | Home equity loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 31 | 43 | 82 |
Recorded Investment | $ | $ 2 | $ 4 | $ 6 |
Retail | Interest Rate Reduction | Home equity lines of credit | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 163 | 76 | 50 |
Recorded Investment | $ | $ 18 | $ 7 | $ 3 |
Retail | Interest Rate Reduction | Home equity loans serviced by others | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 2 | 4 | 15 |
Recorded Investment | $ | $ 0 | $ 0 | $ 1 |
Retail | Interest Rate Reduction | Home equity lines of credit serviced by others | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 5 | 5 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Retail | Interest Rate Reduction | Automobile | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 160 | 158 | 130 |
Recorded Investment | $ | $ 3 | $ 3 | $ 2 |
Retail | Interest Rate Reduction | Education | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Retail | Interest Rate Reduction | Credit cards | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 3,259 | 2,312 | 2,363 |
Recorded Investment | $ | $ 18 | $ 13 | $ 13 |
Retail | Interest Rate Reduction | Other retail | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Retail | Maturity Extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 155 | 287 | 340 |
Recorded Investment | $ | $ 21 | $ 35 | $ 44 |
Retail | Maturity Extension | Residential mortgages | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 62 | 61 | 73 |
Recorded Investment | $ | $ 10 | $ 8 | $ 13 |
Retail | Maturity Extension | Home equity loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Retail | Maturity Extension | Home equity lines of credit | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 72 | 178 | 235 |
Recorded Investment | $ | $ 11 | $ 26 | $ 30 |
Retail | Maturity Extension | Home equity loans serviced by others | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Retail | Maturity Extension | Home equity lines of credit serviced by others | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 1 | 2 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Retail | Maturity Extension | Automobile | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 21 | 46 | 29 |
Recorded Investment | $ | $ 0 | $ 1 | $ 1 |
Retail | Maturity Extension | Education | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Retail | Maturity Extension | Credit cards | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Retail | Maturity Extension | Other retail | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Retail | Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 2,576 | 2,279 | 2,546 |
Recorded Investment | $ | $ 69 | $ 77 | $ 90 |
Retail | Other | Residential mortgages | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 120 | 142 | 171 |
Recorded Investment | $ | $ 17 | $ 17 | $ 19 |
Retail | Other | Home equity loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 82 | 134 | 232 |
Recorded Investment | $ | $ 4 | $ 5 | $ 13 |
Retail | Other | Home equity lines of credit | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 350 | 413 | 395 |
Recorded Investment | $ | $ 22 | $ 29 | $ 27 |
Retail | Other | Home equity loans serviced by others | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 14 | 23 | 52 |
Recorded Investment | $ | $ 0 | $ 1 | $ 2 |
Retail | Other | Home equity lines of credit serviced by others | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 8 | 14 | 26 |
Recorded Investment | $ | $ 0 | $ 1 | $ 2 |
Retail | Other | Automobile | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1,250 | 1,189 | 1,336 |
Recorded Investment | $ | $ 17 | $ 17 | $ 20 |
Retail | Other | Education | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 272 | 355 | 329 |
Recorded Investment | $ | $ 7 | $ 7 | $ 7 |
Retail | Other | Credit cards | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 304 | 0 | 0 |
Recorded Investment | $ | $ 1 | $ 0 | $ 0 |
Retail | Other | Other retail | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 176 | 9 | 5 |
Recorded Investment | $ | $ 1 | $ 0 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES,_16
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Loans with Indicators of High Credit Risk (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 119,088 | $ 116,660 |
High loan-to-value | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 553 | 553 |
High loan-to-value | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 402 | 318 |
High loan-to-value | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 61 | 87 |
High loan-to-value | Home Equity Products Serviced by Others | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 90 | 148 |
High loan-to-value | Credit Cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
High loan-to-value | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Interest only/negative amortization | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,043 | 1,795 |
Interest only/negative amortization | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,043 | 1,794 |
Interest only/negative amortization | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | Home Equity Products Serviced by Others | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | Credit Cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1 | |
Low introductory rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 235 | 217 |
Low introductory rate | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Home Equity Products Serviced by Others | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Credit Cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 235 | 217 |
Low introductory rate | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Multiple characteristics and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 1 |
Multiple characteristics and other | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 1 |
Multiple characteristics and other | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | Home Equity Products Serviced by Others | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | Credit Cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Credit risk, loans with increased credit exposure | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,831 | 2,566 |
Credit risk, loans with increased credit exposure | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,445 | 2,113 |
Credit risk, loans with increased credit exposure | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 61 | 87 |
Credit risk, loans with increased credit exposure | Home Equity Products Serviced by Others | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 90 | 148 |
Credit risk, loans with increased credit exposure | Credit Cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 235 | 217 |
Credit risk, loans with increased credit exposure | Education | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 1 |
PREMISES, EQUIPMENT, AND SOFT_3
PREMISES, EQUIPMENT, AND SOFTWARE - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Leases of Lessee [Abstract] | |||
Depreciation expense | $ 116 | $ 117 | $ 124 |
Capitalized Software | |||
Capitalized software, gross | 2,000 | 1,800 | |
Capitalized software, accumulated amortization | 1,100 | 948 | |
Amortization of software | $ 194 | $ 189 | $ 180 |
PREMISES, EQUIPMENT, AND SOFT_4
PREMISES, EQUIPMENT, AND SOFTWARE - Schedule of Premises and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 1,853 | $ 2,275 |
Less: accumulated depreciation | (1,092) | (1,484) |
Total premises and equipment, net | 761 | 791 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 102 | 112 |
Land and land improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 10 years | |
Land and land improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 75 years | |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 848 | 852 |
Buildings and leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Buildings and leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 60 years | |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 535 | 1,019 |
Furniture, fixtures and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Furniture, fixtures and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 20 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 368 | $ 292 |
PREMISES, EQUIPMENT, AND SOFT_5
PREMISES, EQUIPMENT, AND SOFTWARE - Schedule of Amortization (Details) $ in Millions | Dec. 31, 2019USD ($) |
Capitalized Software, Expected Future Amortization Expense [Abstract] | |
2020 | $ 175 |
2021 | 136 |
2022 | 102 |
2023 | 73 |
2024 | 46 |
Thereafter | 62 |
Total | 594 |
In-process software | $ 296 |
MORTGAGE BANKING - Narrative (D
MORTGAGE BANKING - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 119,088 | $ 116,660 |
Banking Subsidiaries | Mortgage loans serviced for others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 77,500 | $ 69,600 |
MORTGAGE BANKING - Residential
MORTGAGE BANKING - Residential Mortgage Loans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential mortgage loan sold with servicing retained | $ 20,430 | $ 8,149 | $ 3,161 |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential mortgage loan sold with servicing retained | 20,430 | 8,149 | 3,161 |
Mortgage Banking Fees | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain on sales | 251 | 89 | 35 |
Contractually specified servicing, late and other ancillary fees | $ 208 | $ 118 | $ 53 |
MORTGAGE BANKING - Changes Rela
MORTGAGE BANKING - Changes Related to MSRs - Amortization Method (Details) - Residential mortgages - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
MSRs: | ||
Balance as of beginning of period | $ 221 | $ 201 |
Amount capitalized | 0 | 36 |
Purchases | 0 | 16 |
Amortization | (38) | (32) |
Carrying amount before valuation allowance | 183 | 221 |
Valuation allowance for servicing assets | ||
Balance as of beginning of period | 0 | 3 |
Valuation charge-offs (recoveries) | 1 | (3) |
Balance at end of period | 1 | 0 |
Net carrying value of MSRs | $ 182 | $ 221 |
MORTGAGE BANKING - Changes Re_2
MORTGAGE BANKING - Changes Related to MSR's - Fair Value Method (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
MSRs: | ||
Fair value as of beginning of the period | $ 600 | |
Fair value at end of the period | 642 | $ 600 |
Residential mortgages | ||
MSRs: | ||
Fair value as of beginning of the period | 600 | 0 |
Acquired MSRs | 0 | 590 |
Amounts capitalized | 270 | 73 |
Changes in unpaid principal balance during the period | (119) | (32) |
Changes in fair value during the period | (109) | (31) |
Fair value at end of the period | $ 642 | $ 600 |
MORTGAGE BANKING - Economic Ass
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Servicing Assets And Servicing Liabilities At Amortized Cost, Assumptions Used To Estimate Fair Value [Abstract] | ||
MSR portfolio fair value | $ 193 | $ 243 |
Weighted average life (in years) | 6 years 4 months 24 days | 6 years 6 months |
Weighted average constant prepayment rate | 8.90% | 8.50% |
Weighted average discount rate | 9.40% | 9.30% |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Fair value | $ 642 | $ 600 |
Weighted-average life (in years) | 5 years 6 months | 8 years |
Weighted-average constant prepayment rate | 13.90% | 8.20% |
Weighted average option adjusted spread | 4.40% | 6.09% |
Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Sensitivity analysis, basis spread | 0.50% | 0.50% |
Servicing Assets And Servicing Liabilities At Amortized Cost, Assumptions Used To Estimate Fair Value [Abstract] | ||
Decline in fair value due to 50 bps decrease in prepayment rate | $ 28 | $ 24 |
Decline in fair value due to 50 bps decrease in discount rate | 4 | 5 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Decline in fair value due to 50 bps decrease in prepayment rate | 116 | 68 |
Decline in fair value due to 50 bps decrease in option adjusted spread | $ 12 | $ 13 |
Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Sensitivity analysis, basis spread | 1.00% | 1.00% |
Servicing Assets And Servicing Liabilities At Amortized Cost, Assumptions Used To Estimate Fair Value [Abstract] | ||
Decline in fair value due to 100 bps decrease in prepayment rate | $ 53 | $ 56 |
Decline in fair value due to 100 bps decrease in discount rate | 7 | 9 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Decline in fair value due to 100 bps decrease in prepayment rate | 222 | 148 |
Decline in fair value due to 100 bps decrease in option adjusted spread | $ 25 | $ 26 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||
Weighted average lease term | 7 years | |
Weighted average discount rate | 3.15% | |
Lessor operating lease assets | $ 761 | $ 791 |
Lessor operating lease assets | $ 92 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 10 years | |
Leased assets | ||
Lessee, Lease, Description [Line Items] | ||
Lessor operating lease assets | $ 57 |
LEASES - Components of Operatin
LEASES - Components of Operating Lease Cost (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 165 |
Short-term lease cost | 10 |
Variable lease cost | 7 |
Sublease income | (3) |
Total | $ 179 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 699 |
Lease liability | $ 721 |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in measurement of liabilities: | |
Operating cash flows from operating leases | $ 164 |
Right-of-use assets in exchange for new operating lease liabilities | $ 117 |
LEASES - Liability Maturity Sch
LEASES - Liability Maturity Schedule (Details) $ in Millions | Dec. 31, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 150 |
2021 | 150 |
2022 | 125 |
2023 | 100 |
Thereafter | 281 |
Total lease payments | 806 |
Less: Interest | 85 |
Present value of lease liabilities | $ 721 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($)reporting_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 01, 2019USD ($) | Jan. 01, 2019USD ($) | |
Goodwill [Line Items] | |||||
Number of reporting units | reporting_unit | 2 | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | ||
Amortization of intangible assets | 11 | 3 | $ 0 | ||
Consumer Banking | |||||
Goodwill [Line Items] | |||||
Goodwill accumulated impairment loss | 5,900 | 5,900 | |||
Commercial Banking | |||||
Goodwill [Line Items] | |||||
Goodwill accumulated impairment loss | 50 | $ 50 | |||
Clarfeld | |||||
Goodwill [Line Items] | |||||
Goodwill acquired during period | 83 | ||||
Intangible assets acquired | $ 21 | ||||
Bowstring | |||||
Goodwill [Line Items] | |||||
Goodwill acquired during period | 35 | ||||
Intangible assets acquired | $ 6 | ||||
Other | Clarfeld | |||||
Goodwill [Line Items] | |||||
Intangible assets acquired | 19 | ||||
Other | Bowstring | |||||
Goodwill [Line Items] | |||||
Intangible assets acquired | 5 | ||||
Naming Rights | |||||
Goodwill [Line Items] | |||||
Intangible assets acquired | $ 18 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Goodwill Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 6,923 | $ 6,887 |
Business acquisitions | 118 | 59 |
Adjustments | 3 | (23) |
Ending balance | 7,044 | 6,923 |
Consumer Banking | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,172 | 2,136 |
Business acquisitions | 83 | 59 |
Adjustments | 3 | (23) |
Ending balance | 2,258 | 2,172 |
Commercial Banking | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,751 | 4,751 |
Business acquisitions | 35 | 0 |
Adjustments | 0 | 0 |
Ending balance | $ 4,786 | $ 4,751 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Other Intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 82 | $ 34 |
Accumulated Amortization | 14 | 3 |
Net | $ 68 | 31 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 7 years | |
Gross | $ 21 | 20 |
Accumulated Amortization | 4 | 1 |
Net | 17 | 19 |
Acquired relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 37 | 11 |
Accumulated Amortization | 5 | 1 |
Net | $ 32 | 10 |
Naming Rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years | |
Gross | $ 11 | 0 |
Accumulated Amortization | 1 | 0 |
Net | 10 | 0 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 13 | 3 |
Accumulated Amortization | 4 | 1 |
Net | $ 9 | $ 2 |
Minimum | Acquired relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | |
Minimum | Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 2 years | |
Maximum | Acquired relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 15 years | |
Maximum | Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 7 years |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Intangible Asset Amortization (Details) $ in Millions | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2020 | $ 11 |
2021 | 10 |
2022 | 9 |
2023 | 9 |
2024 | $ 8 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Loans and leases | $ 119,088,000,000 | $ 116,660,000,000 | |
LIHTC Investments | |||
Variable Interest Entity [Line Items] | |||
Net impairment losses recognized in earnings | 0 | 0 | $ 0 |
Commercial | Special Purpose Entities | |||
Variable Interest Entity [Line Items] | |||
Loans and leases | 1,101,000,000 | 613,000,000 | |
Undrawn commitments to extend credit | Special Purpose Entities | |||
Variable Interest Entity [Line Items] | |||
Undrawn commitments to extend credit | $ 1,200,000,000 | $ 584,000,000 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Lending to special purpose entities included in loans and leases | $ 119,088 | $ 116,660 |
LIHTC Investments | ||
Variable Interest Entity [Line Items] | ||
LIHTC investment included in other assets | 1,401 | 1,236 |
LIHTC unfunded commitments included in other liabilities | 716 | 673 |
Renewable Energy | ||
Variable Interest Entity [Line Items] | ||
Renewable energy investments included in other assets | 355 | 319 |
Commercial | Special Purpose Entities | ||
Variable Interest Entity [Line Items] | ||
Lending to special purpose entities included in loans and leases | $ 1,101 | $ 613 |
VARIABLE INTEREST ENTITIES - _2
VARIABLE INTEREST ENTITIES - Schedule of Affordable Housing Tax Credit Investments (Details) - LIHTC Investments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Tax credits included in income tax expense | $ 128 | $ 101 | $ 83 |
Amortization expense included in income tax expense | 137 | 110 | 94 |
Other tax benefits included in income tax expense | $ 32 | $ 25 | $ 31 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) $ in Millions | Dec. 31, 2019USD ($) |
Banking and Thrift [Abstract] | |
Time deposits of $100,000 or more | $ 13,432 |
DEPOSITS - Major Components of
DEPOSITS - Major Components of Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits, by Type [Abstract] | ||
Demand | $ 29,233 | $ 29,458 |
Checking with interest | 24,840 | 23,067 |
Regular savings | 13,779 | 12,007 |
Money market accounts | 38,725 | 35,701 |
Term deposits | 18,736 | 19,342 |
Total deposits | $ 125,313 | $ 119,575 |
DEPOSITS - Maturities of Term D
DEPOSITS - Maturities of Term Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2020 | $ 16,151 | |
2021 | 1,995 | |
2022 | 316 | |
2023 | 144 | |
2024 | 126 | |
2025 and thereafter | 4 | |
Total | $ 18,736 | $ 19,342 |
DEPOSITS - Maturities of Term_2
DEPOSITS - Maturities of Term Deposits Greater than $100,000 (Details) $ in Millions | Dec. 31, 2019USD ($) |
Contractual Maturities, Time Deposits, $100,000 or More [Abstract] | |
Three months or less | $ 6,987 |
After three months through six months | 3,224 |
After six months through twelve months | 2,015 |
After twelve months | 1,206 |
Total term deposits | $ 13,432 |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Hedging basis adjustments | $ 984 | $ 449 |
Short-term borrowed funds | 274 | 1,317 |
Available borrowing capacity | 38,900 | |
FHLB advances and letters of credit | Secured Debt | ||
Debt Instrument [Line Items] | ||
Short-term borrowed funds | 9,800 | 13,000 |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 7,200 | 4,800 |
Parent company | ||
Debt Instrument [Line Items] | ||
Principal balance | 2,500 | 2,000 |
Unamortized deferred issuance costs and or discounts | (8) | (5) |
Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
Principal balance | 11,500 | 14,000 |
Unamortized deferred issuance costs and or discounts | (13) | (14) |
Hedging basis adjustments | $ 50 | $ (66) |
BORROWED FUNDS - Short Term Deb
BORROWED FUNDS - Short Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 274 | $ 1,317 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 265 | 336 |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 0 | 820 |
Other short-term borrowed funds | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 9 | $ 161 |
BORROWED FUNDS - Short Term Bor
BORROWED FUNDS - Short Term Borrowed Debt Key Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal funds purchased and securities sold under agreements to repurchase | |||
Short-term Debt [Line Items] | |||
Weighted-average interest rate at period end | 0.41% | 1.72% | 0.74% |
Maximum amount outstanding at month-end during the period | $ 1,499 | $ 1,282 | $ 1,174 |
Average amount outstanding during the period | $ 599 | $ 654 | $ 776 |
Weighted-average interest rate during the period | 1.36% | 0.92% | 0.36% |
Other short-term borrowed funds | |||
Short-term Debt [Line Items] | |||
Weighted-average interest rate at period end | 3.85% | 2.73% | 1.33% |
Maximum amount outstanding at month-end during the period | $ 511 | $ 1,110 | $ 2,759 |
Average amount outstanding during the period | $ 66 | $ 467 | $ 1,571 |
Weighted-average interest rate during the period | 2.50% | 2.10% | 1.09% |
BORROWED FUNDS - Long Term Debt
BORROWED FUNDS - Long Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 14,047 | $ 15,925 |
Parent company | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | 2,484 | |
Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 11,563 | |
Senior Unsecured Notes | Parent company | 2.375% fixed rate senior unsecured debt, due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.375% | |
Long-term borrowed funds | $ 349 | 349 |
Senior Unsecured Notes | Parent company | 2.850% fixed-rate senior unsecured notes, due July 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.85% | |
Long-term borrowed funds | $ 496 | 0 |
Senior Unsecured Notes | Banking Subsidiaries | 2.500% senior unsecured notes, due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.50% | |
Long-term borrowed funds | $ 0 | 748 |
Senior Unsecured Notes | Banking Subsidiaries | 2.450% senior unsecured notes, due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.45% | |
Long-term borrowed funds | $ 0 | 744 |
Senior Unsecured Notes | Banking Subsidiaries | 2.250% senior unsecured notes, due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.25% | |
Long-term borrowed funds | $ 700 | 691 |
Senior Unsecured Notes | Banking Subsidiaries | 2.447% floating-rate senior unsecured notes, due March 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.447% | |
Long-term borrowed funds | $ 300 | 300 |
Senior Unsecured Notes | Banking Subsidiaries | 2.487% floating-rate senior unsecured notes, due May 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.487% | |
Long-term borrowed funds | $ 250 | 250 |
Senior Unsecured Notes | Banking Subsidiaries | 2.200% senior unsecured notes, due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.20% | |
Long-term borrowed funds | $ 500 | 499 |
Senior Unsecured Notes | Banking Subsidiaries | 2.250% senior unsecured notes, due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.55% | |
Long-term borrowed funds | $ 750 | 738 |
Senior Unsecured Notes | Banking Subsidiaries | 2.550% senior unsecured notes, due May 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.55% | |
Long-term borrowed funds | $ 991 | 964 |
Senior Unsecured Notes | Banking Subsidiaries | 3.250% senior unsecured notes, due February 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.25% | |
Long-term borrowed funds | $ 711 | 0 |
Senior Unsecured Notes | Banking Subsidiaries | 2.629% floating-rate senior unsecured notes, due February 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.629% | |
Long-term borrowed funds | $ 299 | 0 |
Senior Unsecured Notes | Banking Subsidiaries | 2.727% floating-rate senior unsecured notes, due May 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.727% | |
Long-term borrowed funds | $ 250 | 249 |
Senior Unsecured Notes | Banking Subsidiaries | 2.650% senior unsecured notes, due May 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.65% | |
Long-term borrowed funds | $ 501 | 487 |
Senior Unsecured Notes | Banking Subsidiaries | 3.700% senior unsecured notes, due March 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.70% | |
Long-term borrowed funds | $ 515 | 502 |
Senior Unsecured Notes | Banking Subsidiaries | 2.911% floating-rate senior unsecured notes, due March 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.911% | |
Long-term borrowed funds | $ 249 | 249 |
Senior Unsecured Notes | Banking Subsidiaries | 3.750% senior unsecured notes, due February 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.75% | |
Long-term borrowed funds | $ 521 | 0 |
Subordinated Debt | Parent company | 4.150% fixed rate subordinated debt, due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.15% | |
Long-term borrowed funds | $ 348 | 348 |
Subordinated Debt | Parent company | 3.750% fixed rate subordinated debt due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.75% | |
Long-term borrowed funds | $ 250 | 250 |
Subordinated Debt | Parent company | 4.023% fixed rate subordinated debt, due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.023% | |
Long-term borrowed funds | $ 42 | 42 |
Subordinated Debt | Parent company | 4.350% fixed rate subordinated debt, due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.35% | |
Long-term borrowed funds | $ 249 | 249 |
Subordinated Debt | Parent company | 4.300% fixed rate subordinated debt, due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.30% | |
Long-term borrowed funds | $ 750 | 749 |
Federal Home Loan advances | Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.006% | |
Long-term borrowed funds | $ 5,008 | 7,508 |
Other | Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowed funds | $ 18 | $ 9 |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
2020 | $ 2,504 | |
2021 | 6,347 | |
2022 | 2,115 | |
2023 | 765 | |
2024 | 293 | |
2025 and thereafter | 2,023 | |
Total | 14,047 | $ 15,925 |
Parent Company | ||
Debt Instrument [Line Items] | ||
2020 | 0 | |
2021 | 349 | |
2022 | 348 | |
2023 | 0 | |
2024 | 292 | |
2025 and thereafter | 1,495 | |
Total | 2,484 | |
Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
2020 | 2,504 | |
2021 | 5,998 | |
2022 | 1,767 | |
2023 | 765 | |
2024 | 1 | |
2025 and thereafter | 528 | |
Total | $ 11,563 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Millions | Dec. 31, 2019USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net gain (pre-tax) on derivatives expected to be reclassified in next 12 months | $ 4 |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Assets | ||
Total derivative assets | $ 984 | $ 449 |
Less: Gross amounts offset in the Consolidated Balance Sheets | (107) | (87) |
Less: Cash collateral applied | (70) | (45) |
Total net derivative fair values presented in the Consolidated Balance Sheets | 807 | 317 |
Derivative Liabilities | ||
Derivative Liabilities | 322 | 415 |
Less: Gross amounts offset in the Consolidated Balance Sheets | (107) | (87) |
Less: Cash collateral applied | (95) | (36) |
Total net derivative fair values presented in the Consolidated Balance Sheets | 120 | 292 |
Derivatives not designated as hedging instruments: | ||
Derivative Assets | ||
Total derivative assets | 983 | 444 |
Derivative Liabilities | ||
Derivative Liabilities | 322 | 415 |
Interest rate contracts | ||
Derivative Assets | ||
Total derivative assets | 773 | 306 |
Derivative Liabilities | ||
Derivative Liabilities | 133 | 277 |
Interest rate contracts | Derivatives designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 29,846 | 12,050 |
Derivative Assets | ||
Total derivative assets | 1 | 5 |
Derivative Liabilities | ||
Derivative Liabilities | 0 | 0 |
Interest rate contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 142,386 | 117,076 |
Derivative Assets | ||
Total derivative assets | 772 | 301 |
Derivative Liabilities | ||
Derivative Liabilities | 133 | 277 |
Foreign exchange contracts | ||
Derivative Assets | ||
Total derivative assets | 174 | 129 |
Derivative Liabilities | ||
Derivative Liabilities | 166 | 113 |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 15,101 | 9,866 |
Derivative Assets | ||
Total derivative assets | 174 | 129 |
Derivative Liabilities | ||
Derivative Liabilities | 166 | 113 |
Other contracts | ||
Derivative Assets | ||
Total derivative assets | 37 | 14 |
Derivative Liabilities | ||
Derivative Liabilities | 23 | 25 |
Other contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 6,868 | 3,555 |
Derivative Assets | ||
Total derivative assets | 37 | 14 |
Derivative Liabilities | ||
Derivative Liabilities | $ 23 | $ 25 |
DERIVATIVES - Schedule of Fair
DERIVATIVES - Schedule of Fair Value Hedges (Details) - Hedge of interest rate risk - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest expense - long-term borrowed funds | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative | $ 107 | $ 8 | $ (26) |
Hedged Item | (107) | (9) | 27 |
Interest and fees on loans and leases | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative | (17) | 0 | 0 |
Hedged Item | 17 | 0 | 0 |
Interest income - investment securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative | 8 | 0 | 0 |
Hedged Item | $ (8) | $ 0 | $ 0 |
DERIVATIVES - Amounts Recorded
DERIVATIVES - Amounts Recorded in Balance Sheet (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt securities available for sale | |
Derivative [Line Items] | |
Carrying amount of hedged assets | $ 15,798 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | (8) |
Last-of-layer hedging amount | 2,000 |
Carrying value of hedged asset in lay-of-layer hedging relationship | 15,800 |
Residential mortgages | |
Derivative [Line Items] | |
Carrying amount of hedged assets | 976 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | 17 |
Long-term borrowed funds | |
Derivative [Line Items] | |
Carrying amount of hedged assets | 0 |
Debt securities available for sale | |
Derivative [Line Items] | |
Carrying amount of hedged liabilities | 0 |
Residential mortgages | |
Derivative [Line Items] | |
Carrying amount of hedged liabilities | 0 |
Long-term borrowed funds | |
Derivative [Line Items] | |
Carrying amount of hedged liabilities | 4,689 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | $ 50 |
DERIVATIVES - Effect of Derivat
DERIVATIVES - Effect of Derivative Instruments on Net Income and Stockholders' Equity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of pre-tax net gains (losses) recognized in OCI | $ 138 | ||
Amount of pre-tax net gains (losses) recognized in OCI, before adoption of 2017-12 | $ (44) | $ (23) | |
Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of pre-tax net losses reclassified | (68) | ||
Amount of pre-tax net losses reclassified, before adoption of 2017-12 | (55) | 25 | |
Interest expense - long-term borrowed funds | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of pre-tax net losses reclassified | $ 11 | ||
Amount of pre-tax net losses reclassified, before adoption of 2017-12 | $ 12 | $ 0 |
DERIVATIVES - Effect of Custome
DERIVATIVES - Effect of Customer Derivatives and Economic Hedges on Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts Recognized in Noninterest Income | $ 263 | $ 205 | $ 66 |
Economic hedges | Foreign exchange and interest rate products | Customer interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts Recognized in Noninterest Income | 687 | 5 | 5 |
Economic hedges | Foreign exchange and interest rate products | Customer foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts Recognized in Noninterest Income | (166) | (54) | 172 |
Economic hedges | Foreign exchange and interest rate products | Derivatives transactions to hedge interest rate risk | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts Recognized in Noninterest Income | (620) | 43 | 46 |
Economic hedges | Foreign exchange and interest rate products | Derivatives transactions to hedge foreign exchange risk | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts Recognized in Noninterest Income | 200 | 158 | (151) |
Economic hedges | Mortgage banking fees | Residential loan commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts Recognized in Noninterest Income | 8 | (3) | 2 |
Economic hedges | Mortgage banking fees | Forward sale contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts Recognized in Noninterest Income | 20 | 21 | (8) |
Economic hedges | Mortgage banking fees | Interest rate derivative contracts used to hedge residential MSRs | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts Recognized in Noninterest Income | 134 | $ 35 | $ 0 |
Economic hedges | Mortgage banking fees | Interest rate derivative contracts used to hedge residential MSRs, at LOCOM | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts Recognized in Noninterest Income | $ (5) |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Years of service used in determining benefits | 5 years | |||
Net actuarial losses | $ 551 | $ 618 | ||
401(k) Plan | ||||
Employer matching contribution percentage | 100.00% | |||
Employer matching contribution, Percent of employees' pay | 4.00% | |||
Employer matching contribution, addition | 2.00% | |||
Employer contribution amount | $ 72 | 68 | $ 61 | |
Qualified Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer contributions | 0 | 50 | ||
Expected contribution | 0 | |||
Non-Qualified Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer contributions | 8 | $ 8 | ||
Expected contribution | $ 8 |
EMPLOYEE BENEFITS - Changes in
EMPLOYEE BENEFITS - Changes in the Fair Value of Pension Plan Assets, Projected Benefit Obligation, Funded Status, and Accumulated Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Qualified Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of January 1 | $ 1,050 | $ 1,139 |
Actual return on plan assets | 259 | (81) |
Employer contributions | 0 | 50 |
Benefits and administrative expenses paid | (63) | (58) |
Fair value of plan assets as of December 31 | 1,246 | 1,050 |
Projected benefit obligation | 1,075 | 972 |
Pension asset (obligation) | 171 | 78 |
Accumulated benefit obligation | 1,075 | 972 |
Non-Qualified Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of January 1 | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 8 | 8 |
Benefits and administrative expenses paid | (8) | (8) |
Fair value of plan assets as of December 31 | 0 | 0 |
Projected benefit obligation | 102 | 95 |
Pension asset (obligation) | (102) | (95) |
Accumulated benefit obligation | $ 102 | $ 95 |
EMPLOYEE BENEFITS - Plan Amount
EMPLOYEE BENEFITS - Plan Amounts Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Net periodic pension income | $ (5) | $ (16) | $ (2) |
Net actuarial (gain) loss | (49) | 49 | (31) |
Amortization of prior service credit | 0 | 1 | 1 |
Amortization of net actuarial loss | (19) | (17) | (18) |
Total (loss) gain recognized in other comprehensive loss | (68) | 33 | (48) |
Total (loss) gain recognized in net periodic pension (income) cost and other comprehensive loss | $ (73) | $ 17 | $ (50) |
EMPLOYEE BENEFITS - Schedule of
EMPLOYEE BENEFITS - Schedule of Net Periodic (Income) Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 3 | $ 3 | $ 3 |
Interest cost | 45 | 43 | 46 |
Expected return on plan assets | (72) | (79) | (69) |
Amortization of actuarial loss | 19 | 17 | 18 |
Net periodic pension (income) cost | (5) | (16) | (2) |
Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3 | 3 | 3 |
Interest cost | 41 | 39 | 42 |
Expected return on plan assets | (72) | (79) | (69) |
Amortization of actuarial loss | 17 | 15 | 16 |
Net periodic pension (income) cost | (11) | (22) | (8) |
Non-Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 4 | 4 | 4 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of actuarial loss | 2 | 2 | 2 |
Net periodic pension (income) cost | $ 6 | $ 6 | $ 6 |
EMPLOYEE BENEFITS - Expected Fu
EMPLOYEE BENEFITS - Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Expected benefit payments by fiscal year ended | |
December 31, 2020 | $ 67 |
December 31, 2021 | 68 |
December 31, 2022 | 68 |
December 31, 2023 | 68 |
December 31, 2024 | 69 |
December 31, 2025 - 2029 | $ 348 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 02, 2019 | Jan. 01, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | $ 20,817 | $ 20,270 | $ 19,747 | ||
Other comprehensive loss before reclassifications | 604 | (272) | (20) | ||
Other-than-temporary impairment not recognized in earnings on debt securities | 0 | (3) | 0 | ||
Amounts reclassified to the Consolidated Statements of Operations | 76 | (1) | 13 | ||
Total other comprehensive income (loss), net of income taxes | 680 | (276) | (7) | ||
Reclassification of tax effects resulting from the 2017 Tax Legislation | (145) | ||||
Cumulative effect of change in accounting standards | $ 17 | $ 5 | |||
Ending balance | 22,201 | 20,817 | 20,270 | ||
Net Unrealized (Losses) Gains on Derivatives before 2017-12 adoption | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (143) | (143) | (88) | ||
Other comprehensive loss before reclassifications | (33) | (14) | |||
Other-than-temporary impairment not recognized in earnings on debt securities | 0 | ||||
Amounts reclassified to the Consolidated Statements of Operations | 33 | (16) | |||
Total other comprehensive income (loss), net of income taxes | 0 | (30) | |||
Reclassification of tax effects resulting from the 2017 Tax Legislation | (25) | ||||
Ending balance | (143) | (143) | |||
Net Unrealized (Losses) Gains on Derivatives | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Other comprehensive loss before reclassifications | 103 | ||||
Amounts reclassified to the Consolidated Statements of Operations | 43 | ||||
Total other comprehensive income (loss), net of income taxes | 146 | ||||
Cumulative effect of change in accounting standards | 0 | ||||
Ending balance | 3 | ||||
Net Unrealized (Losses) Gains on Securities | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (490) | (236) | (186) | ||
Other comprehensive loss before reclassifications | 501 | (239) | (6) | ||
Other-than-temporary impairment not recognized in earnings on debt securities | (3) | ||||
Amounts reclassified to the Consolidated Statements of Operations | (15) | (12) | (2) | ||
Total other comprehensive income (loss), net of income taxes | 486 | (254) | (8) | ||
Reclassification of tax effects resulting from the 2017 Tax Legislation | (42) | ||||
Cumulative effect of change in accounting standards | 5 | ||||
Ending balance | 1 | (490) | (236) | ||
Employee Benefit Plans | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (463) | (441) | (394) | ||
Other comprehensive loss before reclassifications | 0 | 0 | 0 | ||
Other-than-temporary impairment not recognized in earnings on debt securities | 0 | ||||
Amounts reclassified to the Consolidated Statements of Operations | 48 | (22) | 31 | ||
Total other comprehensive income (loss), net of income taxes | 48 | (22) | 31 | ||
Reclassification of tax effects resulting from the 2017 Tax Legislation | (78) | ||||
Cumulative effect of change in accounting standards | $ 0 | ||||
Ending balance | (415) | (463) | (441) | ||
Total AOCI | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (1,096) | (820) | (668) | ||
Total other comprehensive income (loss), net of income taxes | 680 | (276) | (7) | ||
Reclassification of tax effects resulting from the 2017 Tax Legislation | (145) | ||||
Cumulative effect of change in accounting standards | $ 5 | ||||
Ending balance | $ (411) | $ (1,096) | $ (820) |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Cost of stock repurchase | $ 1,220 | $ 1,025 | $ 820 |
Treasury stock purchased (in shares) | 34,305,768 | 25,773,807 | |
Treasury stock purchased, price per share (in dollars per share) | $ 35.56 | $ 39.77 | |
Deferred compensation, share-based payments | |||
Class of Stock [Line Items] | |||
Shares repurchased (in shares) | 0 | 0 |
STOCKHOLDERS' EQUITY - Preferre
STOCKHOLDERS' EQUITY - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Preferred Stock | ||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, issued (in shares) | 1,600,000 | 850,000 |
Preferred stock, issued | $ 1,570 | $ 840 |
Preferred stock, outstanding (in shares) | 1,600,000 | 850,000 |
Preferred stock, outstanding | $ 1,570 | $ 840 |
Series A Preferred Stock | ||
Preferred Stock | ||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | |
Preferred stock, issued (in shares) | 250,000 | 250,000 |
Preferred stock, issued | $ 247 | $ 247 |
Preferred stock, outstanding (in shares) | 250,000 | 250,000 |
Preferred stock, outstanding | $ 247 | $ 247 |
Series B Preferred Stock | ||
Preferred Stock | ||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | |
Preferred stock, issued (in shares) | 300,000 | 300,000 |
Preferred stock, issued | $ 296 | $ 296 |
Preferred stock, outstanding (in shares) | 300,000 | 300,000 |
Preferred stock, outstanding | $ 296 | $ 296 |
Series C Preferred Stock | ||
Preferred Stock | ||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | |
Preferred stock, issued (in shares) | 300,000 | 300,000 |
Preferred stock, issued | $ 297 | $ 297 |
Preferred stock, outstanding (in shares) | 300,000 | 300,000 |
Preferred stock, outstanding | $ 297 | $ 297 |
Series D Preferred Stock | ||
Preferred Stock | ||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | |
Preferred stock, issued (in shares) | 300,000 | 0 |
Preferred stock, issued | $ 293 | $ 0 |
Preferred stock, outstanding (in shares) | 300,000 | 0 |
Preferred stock, outstanding | $ 293 | $ 0 |
Depositary shares issued (in shares) | 12,000,000 | |
Shares issued (in dollars per share) | $ 25 | |
Depository share interest percentage | 2.50% | |
Series E Preferred Stock | ||
Preferred Stock | ||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | |
Preferred stock, issued (in shares) | 450,000 | 0 |
Preferred stock, issued | $ 437 | $ 0 |
Preferred stock, outstanding (in shares) | 450,000 | 0 |
Preferred stock, outstanding | $ 437 | $ 0 |
Depositary shares issued (in shares) | 18,000,000 | |
Shares issued (in dollars per share) | $ 25 | |
Depository share interest percentage | 2.50% |
STOCKHOLDERS' EQUITY - Prefer_2
STOCKHOLDERS' EQUITY - Preferred Stock Outstanding (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||
Number of shares issued (in shares) | 1,600,000 | 850,000 |
Redemption period | 90 days | |
Redemption price per share (in dollars per share) | $ 1,000 | |
Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Number of shares issued (in shares) | 250,000 | 250,000 |
Preferred stock, dividend rate | 5.50% | |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Number of shares issued (in shares) | 300,000 | 300,000 |
Preferred stock, dividend rate | 6.00% | |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Number of shares issued (in shares) | 300,000 | 300,000 |
Preferred stock, dividend rate | 6.375% | |
Series D Preferred Stock | ||
Class of Stock [Line Items] | ||
Number of shares issued (in shares) | 300,000 | 0 |
Preferred stock, dividend rate | 6.35% | |
Depositary shares issued (in shares) | 12,000,000 | |
Depository share interest percentage | 2.50% | |
Series E Preferred Stock | ||
Class of Stock [Line Items] | ||
Number of shares issued (in shares) | 450,000 | 0 |
Preferred stock, dividend rate | 5.00% | |
Depositary shares issued (in shares) | 18,000,000 | |
Depository share interest percentage | 2.50% | |
LIBOR | Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, dividend payment rate | 3.96% | |
LIBOR | Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, dividend payment rate | 3.003% | |
LIBOR | Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, dividend payment rate | 3.157% | |
LIBOR | Series D Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, dividend payment rate | 3.642% |
STOCKHOLDERS' EQUITY - Dividend
STOCKHOLDERS' EQUITY - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Dividends declared per share of common stock (in usd per share) | $ 1.36 | $ 0.98 | $ 0.64 |
Common stock dividends declared and paid | $ 617 | $ 471 | $ 322 |
Preferred stock dividends declared and paid | 73 | 29 | 14 |
Dividends Declared | |||
Class of Stock [Line Items] | |||
Common stock dividends declared and paid | 617 | 471 | 322 |
Preferred stock dividends declared and paid | 73 | 29 | 14 |
Dividends Paid | |||
Class of Stock [Line Items] | |||
Common stock dividends declared and paid | 617 | 471 | 322 |
Preferred stock dividends declared and paid | $ 65 | $ 14 | $ 14 |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividends declared per share of preferred stock (in usd per share) | $ 55 | $ 55 | $ 55 |
Series A Preferred Stock | Dividends Declared | |||
Class of Stock [Line Items] | |||
Preferred stock dividends declared and paid | $ 14 | $ 14 | $ 14 |
Series A Preferred Stock | Dividends Paid | |||
Class of Stock [Line Items] | |||
Preferred stock dividends declared and paid | $ 14 | $ 14 | $ 14 |
Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividends declared per share of preferred stock (in usd per share) | $ 60 | $ 37 | $ 0 |
Series B Preferred Stock | Dividends Declared | |||
Class of Stock [Line Items] | |||
Preferred stock dividends declared and paid | $ 18 | $ 11 | $ 0 |
Series B Preferred Stock | Dividends Paid | |||
Class of Stock [Line Items] | |||
Preferred stock dividends declared and paid | $ 20 | $ 0 | $ 0 |
Series C Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividends declared per share of preferred stock (in usd per share) | $ 63.75 | $ 12.57 | $ 0 |
Series C Preferred Stock | Dividends Declared | |||
Class of Stock [Line Items] | |||
Preferred stock dividends declared and paid | $ 19 | $ 4 | $ 0 |
Series C Preferred Stock | Dividends Paid | |||
Class of Stock [Line Items] | |||
Preferred stock dividends declared and paid | $ 18 | $ 0 | $ 0 |
Series D Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividends declared per share of preferred stock (in usd per share) | $ 59.45 | $ 0 | $ 0 |
Series D Preferred Stock | Dividends Declared | |||
Class of Stock [Line Items] | |||
Preferred stock dividends declared and paid | $ 18 | $ 0 | $ 0 |
Series D Preferred Stock | Dividends Paid | |||
Class of Stock [Line Items] | |||
Preferred stock dividends declared and paid | $ 13 | $ 0 | $ 0 |
Series E Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividends declared per share of preferred stock (in usd per share) | $ 9.44 | $ 0 | $ 0 |
Series E Preferred Stock | Dividends Declared | |||
Class of Stock [Line Items] | |||
Preferred stock dividends declared and paid | $ 4 | $ 0 | $ 0 |
Series E Preferred Stock | Dividends Paid | |||
Class of Stock [Line Items] | |||
Preferred stock dividends declared and paid | $ 0 | $ 0 | $ 0 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee discount on company stock | 10.00% | ||
Maximum employee salary contribution percentage - ESPP | 10.00% | ||
Maximum employee contribution amount - ESPP | $ 25,000 | ||
Compensation expense related to share-based plans | 55,000,000 | $ 41,000,000 | $ 39,000,000 |
Share-based compensation not yet recognized | $ 47,000,000 | ||
Unrecognized compensation expense, weighted-average period of recognition | 2 years | ||
Tax benefit recognized in earnings for share-based compensation arrangements | $ 1,000,000 | $ 3,000,000 | $ 9,000,000 |
2014 Omnibus Incentive Plan | Time-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
2014 Omnibus Incentive Plan | Performance-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Citizens Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | 1,677,167 | 1,174,501 | 1,256,816 |
Weighted average grant price (in dollars per share) | $ 36.21 | $ 39.54 | $ 39.09 |
Awards vested (in shares) | 1,518,836 | 877,111 | 1,426,850 |
Weighted average grant price of awards vested (in dollars per share) | $ 32.21 | $ 30.50 | $ 21.91 |
Omnibus Incentive Plan And Directors Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 48,116,987 | ||
2014 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 5,782,877 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based Compensation Activity (Details) - Citizens Share Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares Underlying Awards | |||
Nonvested, Beginning of period (in shares) | 2,893,281 | ||
Granted (in shares) | 1,677,167 | 1,174,501 | 1,256,816 |
Vested (in shares) | (1,518,836) | (877,111) | (1,426,850) |
Forfeited (in shares) | (51,388) | ||
Nonvested, End of period (in shares) | 3,000,224 | 2,893,281 | |
Weighted Average Grant Price | |||
Nonvested, Beginning of period (in dollars per share) | $ 34.04 | ||
Granted (in dollars per share) | 36.21 | $ 39.54 | $ 39.09 |
Vested (in dollars per share) | 32.21 | 30.50 | $ 21.91 |
Forfeited (in dollars per share) | 38.29 | ||
Nonvested, End of period (in dollars per share) | $ 36.71 | $ 34.04 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)counterparty | Dec. 31, 2018USD ($) | Dec. 31, 2003 | |
Risk Participation Agreements [Abstract] | |||
Risk participation agreements number of counterparties | counterparty | 89 | ||
Risk participation agreements, Maximum term | 10 years | ||
Commercial loans held for sale | Purchase commitment | |||
Commitments [Abstract] | |||
Unsettled commercial loan trade purchases | $ 183 | $ 68 | |
Unsettled commercial loan trade sales | $ 236 | $ 161 | |
Minimum | |||
Risk Participation Agreements [Abstract] | |||
Risk participation agreements, Average term | 1 year | ||
Maximum | |||
Risk Participation Agreements [Abstract] | |||
Risk participation agreements, Average term | 5 years | ||
Marketing rights | |||
Marketing Rights [Abstract] | |||
Commitment period | 25 years | ||
Financial standby letters of credit | |||
Letters of Credit [Abstract] | |||
Letters of credit terms | 10 years | ||
Commercial letters of credit | |||
Letters of Credit [Abstract] | |||
Letters of credit terms | 1 year |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Commitments [Line Items] | ||
Commitment amount | $ 75,040 | $ 71,739 |
Undrawn commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 72,743 | 69,553 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 2,190 | 2,125 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | 37 | 19 |
Loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | 37 | 5 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | $ 33 | $ 37 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other income | $ 91 | $ 67 | $ 91 |
Commercial loans held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other income | 5 | (2) | 4 |
Mortgage banking fees | Residential loans held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Changes in fair value for loans accounted for under fair value option | $ 6 | $ 6 | $ 6 |
FAIR VALUE MEASUREMENTS - Resid
FAIR VALUE MEASUREMENTS - Residential and Commercial Mortgage Loans Held For Sale (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | $ 1,946 | $ 1,219 |
Residential loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 1,778 | 967 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 1,946 | 1,219 |
Level 2 | Residential loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 1,778 | 967 |
Aggregate Unpaid Principal | 1,727 | 967 |
Aggregate Fair Value Less Aggregate Unpaid Principal | 51 | 0 |
Level 2 | Commercial and commercial real estate loans held for sale, at fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 168 | 252 |
Aggregate Unpaid Principal | 175 | 252 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ (7) | $ 0 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Debt securities available for sale: | [1] | $ 20,613 | $ 19,895 |
Loans held for sale, at fair value: | 1,946 | 1,219 | |
Mortgage servicing rights | 642 | 600 | |
Total derivative assets | 984 | 449 | |
Equity investment securities, at fair value | 47 | 181 | |
Total assets | 24,232 | 22,344 | |
Liabilities | |||
Total derivative liabilities | 322 | 415 | |
Total liabilities | 322 | 415 | |
Interest rate contracts | |||
Assets | |||
Total derivative assets | 773 | 306 | |
Liabilities | |||
Total derivative liabilities | 133 | 277 | |
Foreign exchange contracts | |||
Assets | |||
Total derivative assets | 174 | 129 | |
Liabilities | |||
Total derivative liabilities | 166 | 113 | |
Other contracts | |||
Assets | |||
Total derivative assets | 37 | 14 | |
Liabilities | |||
Total derivative liabilities | 23 | 25 | |
Level 1 | |||
Assets | |||
Debt securities available for sale: | 71 | 24 | |
Loans held for sale, at fair value: | 0 | 0 | |
Total derivative assets | 0 | 0 | |
Equity investment securities, at fair value | 47 | 181 | |
Total assets | 118 | 205 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 1 | Interest rate contracts | |||
Assets | |||
Total derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 1 | Foreign exchange contracts | |||
Assets | |||
Total derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 1 | Other contracts | |||
Assets | |||
Total derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 2 | |||
Assets | |||
Debt securities available for sale: | 20,542 | 19,871 | |
Loans held for sale, at fair value: | 1,946 | 1,219 | |
Total derivative assets | 965 | 449 | |
Equity investment securities, at fair value | 0 | 0 | |
Total assets | 23,453 | 21,539 | |
Liabilities | |||
Total derivative liabilities | 322 | 415 | |
Total liabilities | 322 | 415 | |
Level 2 | Interest rate contracts | |||
Assets | |||
Total derivative assets | 773 | 306 | |
Liabilities | |||
Total derivative liabilities | 133 | 277 | |
Level 2 | Foreign exchange contracts | |||
Assets | |||
Total derivative assets | 174 | 129 | |
Liabilities | |||
Total derivative liabilities | 166 | 113 | |
Level 2 | Other contracts | |||
Assets | |||
Total derivative assets | 18 | 14 | |
Liabilities | |||
Total derivative liabilities | 23 | 25 | |
Level 3 | |||
Assets | |||
Debt securities available for sale: | 0 | 0 | |
Loans held for sale, at fair value: | 0 | 0 | |
Total derivative assets | 19 | 0 | |
Equity investment securities, at fair value | 0 | 0 | |
Total assets | 661 | 600 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 3 | Interest rate contracts | |||
Assets | |||
Total derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 3 | Foreign exchange contracts | |||
Assets | |||
Total derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 3 | Other contracts | |||
Assets | |||
Total derivative assets | 19 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Mortgage-backed securities | |||
Assets | |||
Debt securities available for sale: | 20,537 | 19,866 | |
Mortgage-backed securities | Level 1 | |||
Assets | |||
Debt securities available for sale: | 0 | 0 | |
Mortgage-backed securities | Level 2 | |||
Assets | |||
Debt securities available for sale: | 20,537 | 19,866 | |
Mortgage-backed securities | Level 3 | |||
Assets | |||
Debt securities available for sale: | 0 | 0 | |
State and political subdivisions | |||
Assets | |||
Debt securities available for sale: | 5 | 5 | |
State and political subdivisions | Level 1 | |||
Assets | |||
Debt securities available for sale: | 0 | 0 | |
State and political subdivisions | Level 2 | |||
Assets | |||
Debt securities available for sale: | 5 | 5 | |
State and political subdivisions | Level 3 | |||
Assets | |||
Debt securities available for sale: | 0 | 0 | |
U.S. Treasury and other | |||
Assets | |||
Debt securities available for sale: | 71 | 24 | |
U.S. Treasury and other | Level 1 | |||
Assets | |||
Debt securities available for sale: | 71 | 24 | |
U.S. Treasury and other | Level 2 | |||
Assets | |||
Debt securities available for sale: | 0 | 0 | |
U.S. Treasury and other | Level 3 | |||
Assets | |||
Debt securities available for sale: | 0 | 0 | |
Residential loans held for sale | |||
Assets | |||
Loans held for sale, at fair value: | 1,778 | 967 | |
Residential loans held for sale | Level 1 | |||
Assets | |||
Loans held for sale, at fair value: | 0 | 0 | |
Residential loans held for sale | Level 2 | |||
Assets | |||
Loans held for sale, at fair value: | 1,778 | 967 | |
Residential loans held for sale | Level 3 | |||
Assets | |||
Loans held for sale, at fair value: | 0 | 0 | |
Commercial loans held for sale | |||
Assets | |||
Loans held for sale, at fair value: | 168 | 252 | |
Commercial loans held for sale | Level 1 | |||
Assets | |||
Loans held for sale, at fair value: | 0 | 0 | |
Commercial loans held for sale | Level 2 | |||
Assets | |||
Loans held for sale, at fair value: | 168 | 252 | |
Commercial loans held for sale | Level 3 | |||
Assets | |||
Loans held for sale, at fair value: | 0 | 0 | |
Residential mortgages | |||
Assets | |||
Mortgage servicing rights | 642 | 600 | |
Residential mortgages | Level 1 | |||
Assets | |||
Mortgage servicing rights | 0 | 0 | |
Residential mortgages | Level 2 | |||
Assets | |||
Mortgage servicing rights | 0 | 0 | |
Residential mortgages | Level 3 | |||
Assets | |||
Mortgage servicing rights | 642 | 600 | |
Money market mutual fund investments | |||
Assets | |||
Equity investment securities, at fair value | 47 | 181 | |
Money market mutual fund investments | Level 1 | |||
Assets | |||
Equity investment securities, at fair value | 47 | 181 | |
Money market mutual fund investments | Level 2 | |||
Assets | |||
Equity investment securities, at fair value | 0 | 0 | |
Money market mutual fund investments | Level 3 | |||
Assets | |||
Equity investment securities, at fair value | $ 0 | $ 0 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Mortgage Servicing Rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 600 | $ 0 |
Acquired MSRs | 0 | 590 |
Issuances | 270 | 73 |
Settlements | (119) | (32) |
Changes in fair value during the period recognized in earnings | (109) | (31) |
Transfers from Level 2 to Level 3 | 0 | 0 |
Ending balance | 642 | 600 |
Other Derivative Contracts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | |
Acquired MSRs | 0 | |
Issuances | 144 | |
Settlements | (161) | |
Changes in fair value during the period recognized in earnings | 17 | |
Transfers from Level 2 to Level 3 | 18 | |
Ending balance | $ 19 | $ 0 |
FAIR VALUE MEASUREMENTS - Sch_3
FAIR VALUE MEASUREMENTS - Schedule of Gain (Loss) on Assets and Liabilities Measured on Nonrecurring Basis Included in Earnings (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Impaired collateral-dependent loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | $ (34) | $ (13) | $ (35) |
MSRs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | (1) | 3 | 2 |
Leased assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | $ (12) | $ (7) | $ (15) |
FAIR VALUE MEASUREMENTS - Sch_4
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lessor operating lease assets | $ 761 | $ 791 |
Lessor operating lease assets | 92 | |
Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 312 | 338 |
MSRs | 193 | 243 |
Lessor operating lease assets | 92 | |
Level 1 | Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 0 | 0 |
MSRs | 0 | 0 |
Lessor operating lease assets | 0 | |
Level 2 | Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 312 | 338 |
MSRs | 0 | 0 |
Lessor operating lease assets | 92 | |
Level 3 | Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 0 | 0 |
MSRs | 193 | 243 |
Lessor operating lease assets | $ 0 | |
Leased assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lessor operating lease assets | 57 | |
Leased assets | Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lessor operating lease assets | 57 | |
Leased assets | Level 1 | Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lessor operating lease assets | 0 | |
Leased assets | Level 2 | Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lessor operating lease assets | 57 | |
Leased assets | Level 3 | Nonrecurring measurement basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lessor operating lease assets | $ 0 |
FAIR VALUE MEASUREMENTS - Sch_5
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets: | |||
Securities held to maturity, carrying value | [1] | $ 3,202 | $ 4,165 |
Securities held-to-maturity, fair value | 3,242 | 4,041 | |
Other investment securities, at cost, carrying value | 807 | 834 | |
Other investment securities, at cost, estimated fair value | 807 | 834 | |
Other loans held for sale, carrying value | 1,384 | 101 | |
Other loans held for sale, fair value | 1,384 | 101 | |
Loans and leases, carrying value | 119,088 | 116,660 | |
Loans and leases, fair value | 119,792 | 116,627 | |
Financial liabilities: | |||
Deposits, carrying value | 125,313 | 119,575 | |
Deposits, fair value | 125,340 | 119,503 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 265 | 1,156 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 265 | 1,156 | |
Other short-term borrowed funds, carrying value | 9 | 161 | |
Other short-term borrowed funds, fair value | 9 | 161 | |
Long-term borrowed funds, carrying value | 14,047 | 15,925 | |
Long-term borrowed funds, fair value | 14,228 | 15,877 | |
Level 1 | |||
Financial assets: | |||
Securities held to maturity, carrying value | 0 | 0 | |
Securities held-to-maturity, fair value | 0 | 0 | |
Other investment securities, at cost, carrying value | 0 | 0 | |
Other investment securities, at cost, estimated fair value | 0 | 0 | |
Other loans held for sale, carrying value | 0 | 0 | |
Other loans held for sale, fair value | 0 | 0 | |
Loans and leases, carrying value | 0 | 0 | |
Loans and leases, fair value | 0 | 0 | |
Financial liabilities: | |||
Deposits, carrying value | 0 | 0 | |
Deposits, fair value | 0 | 0 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 0 | 0 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 0 | 0 | |
Other short-term borrowed funds, carrying value | 0 | 0 | |
Other short-term borrowed funds, fair value | 0 | 0 | |
Long-term borrowed funds, carrying value | 0 | 0 | |
Long-term borrowed funds, fair value | 0 | 0 | |
Level 2 | |||
Financial assets: | |||
Securities held to maturity, carrying value | 3,202 | 4,165 | |
Securities held-to-maturity, fair value | 3,242 | 4,041 | |
Other investment securities, at cost, carrying value | 807 | 834 | |
Other investment securities, at cost, estimated fair value | 807 | 834 | |
Other loans held for sale, carrying value | 0 | 0 | |
Other loans held for sale, fair value | 0 | 0 | |
Loans and leases, carrying value | 312 | 338 | |
Loans and leases, fair value | 312 | 338 | |
Financial liabilities: | |||
Deposits, carrying value | 125,313 | 119,575 | |
Deposits, fair value | 125,340 | 119,503 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 265 | 1,156 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 265 | 1,156 | |
Other short-term borrowed funds, carrying value | 9 | 161 | |
Other short-term borrowed funds, fair value | 9 | 161 | |
Long-term borrowed funds, carrying value | 14,047 | 15,925 | |
Long-term borrowed funds, fair value | 14,228 | 15,877 | |
Level 3 | |||
Financial assets: | |||
Securities held to maturity, carrying value | 0 | 0 | |
Securities held-to-maturity, fair value | 0 | 0 | |
Other investment securities, at cost, carrying value | 0 | 0 | |
Other investment securities, at cost, estimated fair value | 0 | 0 | |
Other loans held for sale, carrying value | 1,384 | 101 | |
Other loans held for sale, fair value | 1,384 | 101 | |
Loans and leases, carrying value | 118,776 | 116,322 | |
Loans and leases, fair value | 119,480 | 116,289 | |
Financial liabilities: | |||
Deposits, carrying value | 0 | 0 | |
Deposits, fair value | 0 | 0 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 0 | 0 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 0 | 0 | |
Other short-term borrowed funds, carrying value | 0 | 0 | |
Other short-term borrowed funds, fair value | 0 | 0 | |
Long-term borrowed funds, carrying value | 0 | 0 | |
Long-term borrowed funds, fair value | $ 0 | $ 0 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
NONINTEREST INCOME - Narrative
NONINTEREST INCOME - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trust and investment services fees | ||
Disaggregation of Revenue [Line Items] | ||
Trailing commission income | $ 15 | $ 16 |
NONINTEREST INCOME - Noninteres
NONINTEREST INCOME - Noninterest Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Revenue from contracts with customers | $ 1,172 | $ 1,119 | |
Revenue from other sources | 705 | 477 | |
Total noninterest income | $ 1,877 | $ 1,596 | $ 1,534 |
NONINTEREST INCOME - Components
NONINTEREST INCOME - Components of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 1,172 | $ 1,119 |
Consumer Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 818 | 786 |
Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 354 | 333 |
Service charges and fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 503 | 513 |
Service charges and fees | Consumer Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 400 | 408 |
Service charges and fees | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 103 | 105 |
Card fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 254 | 244 |
Card fees | Consumer Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 215 | 207 |
Card fees | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 39 | 37 |
Capital markets fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 202 | 181 |
Capital markets fees | Consumer Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Capital markets fees | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 202 | 181 |
Trust and investment services fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 202 | 171 |
Trust and investment services fees | Consumer Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 202 | 171 |
Trust and investment services fees | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Other banking fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 11 | 10 |
Other banking fees | Consumer Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1 | 0 |
Other banking fees | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 10 | $ 10 |
NONINTEREST INCOME - Other Inco
NONINTEREST INCOME - Other Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Bank-owned life insurance | $ 55 | $ 56 | $ 54 |
OTHER OPERATING EXPENSE (Detail
OTHER OPERATING EXPENSE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Promotional expense | $ 112 | $ 129 | $ 105 |
Deposit insurance | 62 | 104 | 137 |
Other | 302 | 262 | 300 |
Other operating expense | $ 476 | $ 495 | $ 542 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
State operating loss carryforwards | $ 1,100 | ||
Deferred tax asset valuation allowance | 79 | $ 110 | |
Decrease in deferred tax asset valuation allowance | 31 | ||
Unrecognized tax benefits that would impact effective tax rate | 5 | ||
Interest on unrecognized tax benefits accrued (released) during period | 0 | 0 | $ 8 |
Accrued interest on unrecognized tax benefits | 1 | 2 | 1 |
Penalties accrued income tax examination | 0 | 0 | 0 |
Penalties expense income tax examination | 0 | $ 0 | $ 0 |
Tax Years Ended Prior to 1988 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Base year loan loss reserves attributable to prior years | $ 557 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 460 | $ 462 | $ 260 |
Tax effect of changes in OCI | 225 | (96) | (7) |
Total comprehensive income tax expense | $ 685 | $ 366 | $ 253 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||
U.S. federal | $ 323 | $ 271 | $ 376 |
State and local | 73 | 94 | 20 |
Total | 396 | 365 | 396 |
Deferred | |||
U.S. federal | 64 | 90 | (142) |
State and local | 0 | 7 | 6 |
Total | 64 | 97 | (136) |
U.S. federal | 387 | 361 | 234 |
State and local | 73 | 101 | 26 |
Income tax expense | $ 460 | $ 462 | $ 260 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount | |||
U.S. Federal income tax expense | $ 473 | $ 459 | $ 669 |
Increase (decrease) resulting from: | |||
Federal rate change | 0 | (34) | (331) |
State and local income taxes (net of federal benefit) | 73 | 89 | 46 |
Bank-owned life insurance | (12) | (12) | (19) |
Tax-exempt interest | (15) | (15) | (21) |
Tax advantaged investments (including related credits) | (50) | (44) | (51) |
Other tax credits | (10) | (8) | (3) |
Adjustments for uncertain tax positions | 0 | 1 | (23) |
Non-deductible FDIC premiums | 13 | 21 | 0 |
Legacy tax matters | (19) | 0 | 0 |
Other | 7 | 5 | (7) |
Income tax expense | $ 460 | $ 462 | $ 260 |
Rate | |||
U.S. Federal income tax rate | 21.00% | 21.00% | 35.00% |
Increase (decrease) resulting from: | |||
Federal rate change | 0.00% | (1.60%) | (17.30%) |
State and local income taxes (net of federal benefit) | 3.20% | 4.10% | 2.40% |
Bank-owned life insurance | (0.50%) | (0.50%) | (1.00%) |
Tax-exempt interest | (0.70%) | (0.70%) | (1.10%) |
Tax advantaged investments (including related credits) | (2.30%) | (2.00%) | (2.70%) |
Other tax credits | (0.40%) | (0.40%) | (0.10%) |
Adjustments for uncertain tax positions | 0.00% | 0.10% | (1.20%) |
Non-deductible FDIC premiums | 0.60% | 1.00% | 0.00% |
Legacy tax matters | (0.80%) | 0.00% | 0.00% |
Other | 0.30% | 0.20% | (0.40%) |
Total income tax expense and tax rate | 20.40% | 21.20% | 13.60% |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Other comprehensive income | $ 141 | $ 366 |
Allowance for credit losses | 315 | 308 |
State net operating loss carryforwards | 62 | 90 |
Accrued expenses not currently deductible | 24 | 36 |
Investment and other tax credit carryforwards | 89 | 74 |
Fair value adjustments | 0 | 28 |
Total deferred tax assets | 631 | 902 |
Valuation allowance | (79) | (110) |
Deferred tax assets, net of valuation allowance | 552 | 792 |
Deferred tax liabilities: | ||
Leasing transactions | 513 | 527 |
Amortization of intangibles | 370 | 364 |
Depreciation | 186 | 195 |
Pension and other employee compensation plans | 124 | 127 |
Partnerships | 71 | 51 |
Deferred Income | 79 | 50 |
MSRs | 75 | 51 |
Total deferred tax liabilities | 1,418 | 1,365 |
Net deferred tax liability | $ 866 | $ 573 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the beginning of the year | $ 8 | $ 5 | $ 42 |
Gross increase for tax positions related to current year | 0 | 3 | 0 |
Gross decrease for tax positions related to prior years | (2) | 0 | (27) |
Decrease for tax positions as a result of the lapse of the statutes of limitations | (1) | 0 | (1) |
Decrease for tax positions related to settlements with taxing authorities | 0 | 0 | (9) |
Balance at end of year | $ 5 | $ 8 | $ 5 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator (basic and diluted): | |||
Net income | $ 1,791 | $ 1,721 | $ 1,652 |
Less: Preferred stock dividends | 73 | 29 | 14 |
Net income available to common stockholders | $ 1,718 | $ 1,692 | $ 1,638 |
Denominator: | |||
Weighted-average common shares outstanding - basic (in shares) | 449,731,453 | 478,822,072 | 502,157,440 |
Dilutive common shares: share-based awards (in shares) | 1,482,248 | 1,608,669 | 1,527,651 |
Weighted-average common shares outstanding - diluted (in shares) | 451,213,701 | 480,430,741 | 503,685,091 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 3.82 | $ 3.54 | $ 3.26 |
Diluted (in dollars per share) | $ 3.81 | $ 3.52 | $ 3.25 |
Antidilutive securities (in shares) | 783 | 0 | 533 |
REGULATORY MATTERS - Narrative
REGULATORY MATTERS - Narrative (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Minimum Capital Adequacy | 7.00% | 6.375% |
REGULATORY MATTERS - Capital an
REGULATORY MATTERS - Capital and Capital Ratio Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Common Equity Tier 1 to Risk-Weighted Assets (Amount) | ||
Actual | $ 14,304 | $ 14,485 |
Minimum Capital Adequacy | $ 10,004 | $ 8,683 |
Common Equity Tier 1 to Risk-Weighted Assets (Ratio) | ||
Actual | 10.00% | 10.60% |
Minimum Capital Adequacy | 7.00% | 6.375% |
Tier 1 Capital to Risk-Weighted Assets (Amount) | ||
Actual | $ 15,874 | $ 15,325 |
Minimum Capital Adequacy | $ 12,148 | $ 10,726 |
Tier 1 Capital to Risk-Weighted Assets (Ratio) | ||
Actual | 11.10% | 11.30% |
Minimum Capital Adequacy | 8.50% | 7.875% |
Total Capital to Risk-Weighted Assets (Amount) | ||
Actual | $ 18,542 | $ 18,157 |
Minimum Capital Adequacy | $ 15,006 | $ 13,450 |
Total Capital to Risk-Weighted Assets (Ratio) | ||
Actual | 13.00% | 13.30% |
Minimum Capital Adequacy | 10.50% | 9.875% |
Tier 1 Capital to Average Assets (Leverage) (Amount) | ||
Actual | $ 15,874 | $ 15,325 |
Minimum Capital Adequacy | $ 6,351 | $ 6,121 |
Tier 1 Capital to Average Assets (Leverage) (Ratio) | ||
Actual | 10.00% | 10.00% |
Minimum Capital Adequacy | 4.00% | 4.00% |
Capital conservation buffer | 2.50% | 1.875% |
BUSINESS OPERATING SEGMENTS - N
BUSINESS OPERATING SEGMENTS - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)segment | |
Segment Reporting Information [Line Items] | |
Business operating segments | segment | 2 |
Consumer Banking | Maximum | |
Segment Reporting Information [Line Items] | |
Revenues | $ 25 |
Commercial Banking | Minimum | |
Segment Reporting Information [Line Items] | |
Revenues | 25 |
Commercial Banking | Maximum | |
Segment Reporting Information [Line Items] | |
Revenues | $ 2,500 |
BUSINESS OPERATING SEGMENTS - S
BUSINESS OPERATING SEGMENTS - Schedule of Business Operating Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 4,614 | $ 4,532 | $ 4,173 |
Noninterest income | 1,877 | 1,596 | 1,534 |
Total revenue | 6,491 | 6,128 | 5,707 |
Noninterest expense | 3,847 | 3,619 | 3,474 |
Profit (loss) before provision for credit losses | 2,644 | 2,509 | 2,233 |
Provision for credit losses | 393 | 326 | 321 |
Income before income tax expense | 2,251 | 2,183 | 1,912 |
Income tax expense | 460 | 462 | 260 |
NET INCOME | 1,791 | 1,721 | 1,652 |
Total average assets | 162,176 | 154,553 | 149,953 |
Operating Segments | Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 3,182 | 3,064 | 2,651 |
Noninterest income | 1,156 | 973 | 905 |
Total revenue | 4,338 | 4,037 | 3,556 |
Noninterest expense | 2,851 | 2,723 | 2,593 |
Profit (loss) before provision for credit losses | 1,487 | 1,314 | 963 |
Provision for credit losses | 325 | 289 | 265 |
Income before income tax expense | 1,162 | 1,025 | 698 |
Income tax expense | 287 | 258 | 246 |
NET INCOME | 875 | 767 | 452 |
Total average assets | 66,240 | 62,444 | 59,714 |
Operating Segments | Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 1,466 | 1,497 | 1,411 |
Noninterest income | 607 | 545 | 538 |
Total revenue | 2,073 | 2,042 | 1,949 |
Noninterest expense | 858 | 813 | 772 |
Profit (loss) before provision for credit losses | 1,215 | 1,229 | 1,177 |
Provision for credit losses | 97 | 26 | 19 |
Income before income tax expense | 1,118 | 1,203 | 1,158 |
Income tax expense | 248 | 276 | 384 |
NET INCOME | 870 | 927 | 774 |
Total average assets | 55,947 | 52,362 | 49,747 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income | (34) | (29) | 111 |
Noninterest income | 114 | 78 | 91 |
Total revenue | 80 | 49 | 202 |
Noninterest expense | 138 | 83 | 109 |
Profit (loss) before provision for credit losses | (58) | (34) | 93 |
Provision for credit losses | (29) | 11 | 37 |
Income before income tax expense | (29) | (45) | 56 |
Income tax expense | (75) | (72) | (370) |
NET INCOME | 46 | 27 | 426 |
Total average assets | $ 39,989 | $ 39,747 | $ 40,492 |
PARENT COMPANY FINANCIALS - Con
PARENT COMPANY FINANCIALS - Condensed Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING INCOME: | |||
Equity securities gains | $ 0 | $ 0 | $ 1 |
Total interest income | 6,189 | 5,758 | 4,920 |
OPERATING EXPENSE: | |||
Salaries and employee benefits | 2,026 | 1,880 | 1,766 |
Interest expense | 1,575 | 1,226 | 747 |
All other expenses | 476 | 495 | 542 |
Income taxes | 460 | 462 | 260 |
NET INCOME | 1,791 | 1,721 | 1,652 |
Other comprehensive income (loss), net of income taxes: | |||
Total other comprehensive income (loss), net of income taxes | 680 | (276) | (7) |
Total comprehensive income | 2,471 | 1,445 | 1,645 |
Parent company | |||
OPERATING INCOME: | |||
Dividends from banking subsidiaries | 1,130 | 1,650 | 1,055 |
Interest | 48 | 46 | 43 |
Management and service fees | 42 | 22 | 31 |
Equity securities gains | 0 | 0 | 1 |
All other operating income | 1 | 1 | 1 |
Total interest income | 1,233 | 1,726 | 1,136 |
OPERATING EXPENSE: | |||
Salaries and employee benefits | 35 | 25 | 40 |
Interest expense | 87 | 89 | 97 |
All other expenses | 27 | 23 | 22 |
Total operating expense | 149 | 137 | 159 |
Income before taxes and undistributed income | 1,084 | 1,589 | 977 |
Income taxes | (10) | (13) | (10) |
Income before undistributed income of subsidiaries and associated companies | 1,094 | 1,602 | 987 |
NET INCOME | 1,791 | 1,721 | 1,652 |
Other comprehensive income (loss), net of income taxes: | |||
Net pension plan activity arising during the period | (5) | 5 | (1) |
Net unrealized derivative instrument gains arising during the period | 2 | 2 | 1 |
Net other comprehensive loss | (3) | 7 | 0 |
Other comprehensive income (loss) activity of Bank subsidiaries, net of income taxes | 683 | (283) | (7) |
Total other comprehensive income (loss), net of income taxes | 680 | (276) | (7) |
Total comprehensive income | 2,471 | 1,445 | 1,645 |
Nonbank subsidiaries | Parent company | |||
OPERATING INCOME: | |||
Interest | 4 | 2 | 1 |
Dividends from nonbank subsidiaries | 8 | 5 | 4 |
OPERATING EXPENSE: | |||
Equity in undistributed income (losses) of subsidiaries and associated companies | 15 | 10 | 10 |
Bank subsidiaries | Parent company | |||
OPERATING EXPENSE: | |||
Equity in undistributed income (losses) of subsidiaries and associated companies | $ 682 | $ 109 | $ 655 |
PARENT COMPANY FINANCIALS - C_2
PARENT COMPANY FINANCIALS - Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS: | ||||
Cash and due from banks | $ 1,175 | $ 1,081 | ||
Other assets | 5,878 | 4,754 | ||
TOTAL ASSETS | 165,733 | 160,518 | ||
LIABILITIES: | ||||
Long-term borrowed funds | 14,047 | 15,925 | ||
Other liabilities | 2,912 | 2,019 | ||
TOTAL LIABILITIES | 143,532 | 139,701 | ||
TOTAL STOCKHOLDERS’ EQUITY | 22,201 | 20,817 | $ 20,270 | $ 19,747 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 165,733 | 160,518 | ||
Parent company | ||||
ASSETS: | ||||
Cash and due from banks | 1,418 | 961 | ||
Other assets | 127 | 117 | ||
TOTAL ASSETS | 24,883 | 22,979 | ||
LIABILITIES: | ||||
Long-term borrowed funds | 2,484 | |||
Other liabilities | 197 | 175 | ||
TOTAL LIABILITIES | 2,682 | 2,162 | ||
TOTAL STOCKHOLDERS’ EQUITY | 22,201 | 20,817 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 24,883 | 22,979 | ||
Bank subsidiaries | Parent company | ||||
ASSETS: | ||||
Loans and advances | 1,146 | 1,158 | ||
Investments in subsidiaries | 21,973 | 20,590 | ||
Nonbank subsidiaries | Parent company | ||||
ASSETS: | ||||
Loans and advances | 120 | 70 | ||
Investments in subsidiaries | 99 | 83 | ||
Unaffiliated companies | Parent company | ||||
LIABILITIES: | ||||
Long-term borrowed funds | $ 2,485 | $ 1,987 |
PARENT COMPANY FINANCIALS - C_3
PARENT COMPANY FINANCIALS - Condensed Cash Flow Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
OPERATING ACTIVITIES | |||||
Net income | $ 1,791 | $ 1,721 | $ 1,652 | ||
Deferred income taxes | 64 | 97 | (136) | ||
Increase in other liabilities | 331 | 303 | (119) | ||
Decrease (increase) in other assets | (856) | (1,217) | (502) | ||
Net cash provided by operating activities | 1,697 | 1,767 | 1,883 | ||
INVESTING ACTIVITIES | |||||
Net cash used in investing activities | (3,875) | (7,077) | (3,984) | ||
FINANCING ACTIVITIES | |||||
Proceeds from issuance of long-term borrowed funds | 12,850 | 22,503 | 15,363 | ||
Repayments of long-term borrowed funds | (14,857) | (14,837) | (12,751) | ||
Treasury stock purchased | (1,220) | (1,025) | (820) | ||
Net proceeds from issuance of preferred stock | 730 | 593 | 0 | ||
Dividends declared and paid to preferred stockholders | (65) | (14) | (14) | ||
Net cash provided by financing activities | 1,490 | 6,352 | 1,429 | ||
(Decrease) increase in cash and cash equivalents | (688) | 1,042 | (672) | [1] | |
Cash and cash equivalents at beginning of period | [1] | 4,074 | 3,032 | 3,704 | |
Cash and cash equivalents at end of period | [1] | 3,386 | 4,074 | 3,032 | |
Parent company | |||||
OPERATING ACTIVITIES | |||||
Net income | 1,791 | 1,721 | 1,652 | ||
Deferred income taxes | (8) | 17 | (11) | ||
Gain on sales of assets | 0 | 0 | (1) | ||
Equity in undistributed earnings of subsidiaries | (697) | (120) | (665) | ||
Increase in other liabilities | 50 | 11 | 99 | ||
Decrease (increase) in other assets | 7 | (7) | 5 | ||
Other operating, net | 58 | 40 | (1) | ||
Net cash provided by operating activities | 1,201 | 1,662 | 1,078 | ||
INVESTING ACTIVITIES | |||||
Investments in and advances to subsidiaries | (105) | 0 | (230) | ||
Repayment of investments in and advances to subsidiaries | 55 | 0 | 167 | ||
Other investing, net | (1) | (1) | (1) | ||
Net cash used in investing activities | (51) | (1) | (64) | ||
FINANCING ACTIVITIES | |||||
Proceeds from issuance of long-term borrowed funds | 500 | 0 | 0 | ||
Repayments of long-term borrowed funds | 0 | (333) | 0 | ||
Proceeds from issuance of common stock | 0 | 0 | 34 | ||
Treasury stock purchased | (1,220) | (1,025) | (820) | ||
Net proceeds from issuance of preferred stock | 730 | 593 | 0 | ||
Dividends declared and paid to common stockholders | (617) | (471) | (322) | ||
Dividends declared and paid to preferred stockholders | (65) | (14) | (14) | ||
Other financing, net | (21) | (13) | 0 | ||
Net cash provided by financing activities | (693) | (1,263) | (1,122) | ||
(Decrease) increase in cash and cash equivalents | 457 | 398 | (108) | ||
Cash and cash equivalents at beginning of period | 961 | 563 | 671 | ||
Cash and cash equivalents at end of period | $ 1,418 | $ 961 | $ 563 | ||
[1] | Cash and cash equivalents include cash and due from banks and interest-bearing cash and due from banks as reflected on the Consolidated Balance Sheets. |