Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2017 |
Entity Registrant Name | BB&T CORP |
Trading Symbol | BBT |
Entity Central Index Key | 92,230 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 788,921,052 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 2,195 | $ 1,897 |
Interest-bearing deposits with banks | 428 | 1,895 |
Federal funds sold and other cash equivalents | 75 | 144 |
Restricted cash | 429 | 488 |
AFS securities at fair value | 23,184 | 26,926 |
HTM securities (fair value of $23,392 and $16,546 at September 30, 2017 and December 31, 2016, respectively) | 23,447 | 16,680 |
LHFS at fair value | 1,217 | 1,716 |
Loans and leases | 142,794 | 143,322 |
ALLL | (1,478) | (1,489) |
Loans and leases, net of ALLL | 141,316 | 141,833 |
Premises and equipment | 2,043 | 2,107 |
Goodwill | 9,618 | 9,638 |
CDI and other intangible assets | 745 | 854 |
MSRs at fair value | 1,044 | 1,052 |
Other assets | 14,599 | 14,046 |
Total assets | 220,340 | 219,276 |
Deposits: | ||
Noninterest-bearing deposits | 54,049 | 50,697 |
Interest-bearing deposits | 102,086 | 109,537 |
Total deposits | 156,135 | 160,234 |
Short-term borrowings | 7,916 | 1,406 |
Long-term debt | 20,863 | 21,965 |
Accounts payable and other liabilities | 5,573 | 5,745 |
Total liabilities | 190,487 | 189,350 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity: | ||
Preferred stock, $5 par, liquidation preference of $25,000 per share | 3,053 | 3,053 |
Common stock, $5 par | 3,945 | 4,047 |
Additional paid-in capital | 8,192 | 9,104 |
Retained earnings | 15,656 | 14,809 |
AOCI, net of deferred income taxes | (1,036) | (1,132) |
Noncontrolling interests | 43 | 45 |
Total shareholders' equity | 29,853 | 29,926 |
Total liabilities and shareholders' equity | $ 220,340 | $ 219,276 |
Common shares outstanding (in shares) | 788,921,000 | 809,475,000 |
Common shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Preferred shares outstanding (in shares) | 126,000 | 126,000 |
Preferred shares authorized (in shares) | 5,000,000 | 5,000,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
HTM securities, fair value | $ 23,392 | $ 16,546 |
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, liquidation preference (in dollars per share) | 25,000 | 25,000 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest Income | ||||
Interest and fees on loans and leases | $ 1,591 | $ 1,524 | $ 4,632 | $ 4,475 |
Interest and dividends on securities | 276 | 262 | 806 | 803 |
Interest on other earning assets | 10 | 9 | 38 | 43 |
Total interest income | 1,877 | 1,795 | 5,476 | 5,321 |
Interest Expense | ||||
Interest on deposits | 91 | 62 | 240 | 190 |
Interest on short-term borrowings | 15 | 2 | 22 | 7 |
Interest on long-term debt | 124 | 121 | 323 | 368 |
Total interest expense | 230 | 185 | 585 | 565 |
Net Interest Income | 1,647 | 1,610 | 4,891 | 4,756 |
Provision for credit losses | 126 | 148 | 409 | 443 |
Net Interest Income After Provision for Credit Losses | 1,521 | 1,462 | 4,482 | 4,313 |
Noninterest Income | ||||
Insurance income | 397 | 410 | 1,336 | 1,294 |
Service charges on deposits | 179 | 172 | 523 | 492 |
Mortgage banking income | 114 | 154 | 311 | 356 |
Investment banking and brokerage fees and commissions | 103 | 101 | 299 | 300 |
Trust and investment advisory revenues | 68 | 68 | 206 | 197 |
Bankcard fees and merchant discounts | 70 | 61 | 204 | 177 |
Checkcard fees | 54 | 50 | 159 | 145 |
Operating lease income | 36 | 34 | 109 | 103 |
Income from bank-owned life insurance | 28 | 35 | 89 | 97 |
FDIC loss share income, net | 0 | (18) | 0 | (142) |
Other income | 117 | 97 | 321 | 246 |
Securities gains (losses), net | ||||
Gross realized gains | 17 | 0 | 17 | 45 |
Gross realized losses | (17) | 0 | (17) | 0 |
OTTI charges | 0 | 0 | 0 | 0 |
Non-credit portion recognized in OCI | 0 | 0 | 0 | 0 |
Total securities gains (losses), net | 0 | 0 | 0 | 45 |
Total noninterest income | 1,166 | 1,164 | 3,557 | 3,310 |
Noninterest Expense | ||||
Personnel expense | 1,024 | 1,006 | 3,077 | 2,960 |
Occupancy and equipment expense | 198 | 203 | 589 | 588 |
Software expense | 62 | 63 | 177 | 167 |
Outside IT services | 34 | 51 | 122 | 136 |
Amortization of intangibles | 34 | 38 | 108 | 112 |
Regulatory charges | 40 | 41 | 115 | 103 |
Professional services | 27 | 27 | 87 | 75 |
Loan-related expense | 32 | 33 | 98 | 101 |
Merger-related and restructuring charges, net | 47 | 43 | 93 | 158 |
Loss (gain) on early extinguishment of debt | 0 | 0 | 392 | (1) |
Other expense | 247 | 206 | 731 | 654 |
Total noninterest expense | 1,745 | 1,711 | 5,589 | 5,053 |
Earnings | ||||
Income before income taxes | 942 | 915 | 2,450 | 2,570 |
Provision for income taxes | 294 | 273 | 702 | 771 |
Net income | 648 | 642 | 1,748 | 1,799 |
Noncontrolling interests | 8 | 0 | 12 | 9 |
Dividends on preferred stock | 43 | 43 | 130 | 123 |
Net income available to common shareholders | $ 597 | $ 599 | $ 1,606 | $ 1,667 |
Basic EPS (in dollars per share) | $ 0.75 | $ 0.74 | $ 2 | $ 2.08 |
Diluted EPS (in dollars per share) | 0.74 | 0.73 | 1.97 | 2.05 |
Cash dividends declared per share (in dollars per share) | $ 0.33 | $ 0.30 | $ 0.93 | $ 0.85 |
Basic weighted average shares outstanding (in shares) | 794,558 | 812,521 | 804,424 | 802,694 |
Diluted weighted average shares outstanding (in shares) | 806,124 | 823,106 | 816,029 | 812,407 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 648 | $ 642 | $ 1,748 | $ 1,799 |
OCI, net of tax: | ||||
Change in unrecognized net pension and postretirement costs | 8 | 2 | 29 | 24 |
Change in unrealized net gains (losses) on cash flow hedges | 9 | 21 | (27) | (143) |
Change in unrealized net gains (losses) on AFS securities | 18 | (73) | 90 | 224 |
Change in FDIC's share of unrealized gains/losses on AFS securities | 0 | 137 | 0 | 169 |
Other, net | 2 | 0 | 4 | 4 |
Total OCI | 37 | 87 | 96 | 278 |
Total comprehensive income | 685 | 729 | 1,844 | 2,077 |
Income Tax Effect of Items Included in OCI: | ||||
Change in unrecognized net pension and postretirement costs | 3 | 0 | 17 | 14 |
Change in unrealized net gains (losses) on cash flow hedges | 5 | 14 | (16) | (84) |
Change in unrealized net gains (losses) on AFS securities | 9 | (43) | 51 | 135 |
Change in FDIC's share of unrealized gains/losses on AFS securities | 0 | 80 | 0 | 98 |
Other, net | $ 0 | $ 1 | $ 0 | $ 1 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Retained Earnings | AOCI | Noncontrolling Interests |
Beginning balance at Dec. 31, 2015 | $ 27,340 | $ 3,902 | $ 2,603 | $ 8,365 | $ 13,464 | $ (1,028) | $ 34 |
Beginning balance (in shares) at Dec. 31, 2015 | 780,337 | ||||||
Add (Deduct): | |||||||
Net income | 1,799 | 1,790 | 9 | ||||
Net change in AOCI | 278 | 278 | |||||
Stock transactions: | |||||||
Issued in business combinations | 1,063 | $ 158 | 905 | ||||
Issued in business combinations (in shares) | 31,666 | ||||||
Issued in connection with equity awards, net | 24 | $ 18 | 6 | ||||
Issued in connection with equity awards, net (in shares) | 3,715 | ||||||
Repurchase of common stock | (160) | $ (21) | (139) | ||||
Repurchase of common stock (in shares) | (4,294) | ||||||
Issued in connection with preferred stock offerings | 450 | 450 | |||||
Cash dividends declared on common stock | (682) | (682) | |||||
Cash dividends declared on preferred stock | (123) | (123) | |||||
Equity-based compensation expense | 96 | 96 | |||||
Other, net | 6 | 0 | 10 | (4) | |||
Ending balance at Sep. 30, 2016 | 30,091 | $ 4,057 | 3,053 | 9,233 | 14,459 | (750) | 39 |
Ending balance (in shares) at Sep. 30, 2016 | 811,424 | ||||||
Beginning balance at Dec. 31, 2016 | $ 29,926 | $ 4,047 | 3,053 | 9,104 | 14,809 | (1,132) | 45 |
Beginning balance (in shares) at Dec. 31, 2016 | 809,475 | 809,475 | |||||
Add (Deduct): | |||||||
Net income | $ 1,748 | 1,736 | 12 | ||||
Net change in AOCI | 96 | 96 | |||||
Stock transactions: | |||||||
Issued in business combinations | 0 | ||||||
Issued in connection with equity awards, net | 104 | $ 37 | 67 | ||||
Issued in connection with equity awards, net (in shares) | 7,201 | ||||||
Repurchase of common stock | (1,240) | $ (139) | (1,101) | ||||
Repurchase of common stock (in shares) | (27,755) | ||||||
Issued in connection with preferred stock offerings | 0 | ||||||
Cash dividends declared on common stock | (747) | (747) | |||||
Cash dividends declared on preferred stock | (130) | (130) | |||||
Equity-based compensation expense | 109 | 109 | |||||
Other, net | (13) | 13 | (12) | (14) | |||
Ending balance at Sep. 30, 2017 | $ 29,853 | $ 3,945 | $ 3,053 | $ 8,192 | $ 15,656 | $ (1,036) | $ 43 |
Ending balance (in shares) at Sep. 30, 2017 | 788,921 | 788,921 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows From Operating Activities: | ||
Net income | $ 1,748 | $ 1,799 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for credit losses | 409 | 443 |
Depreciation | 305 | 298 |
Loss (gain) on early extinguishment of debt | 392 | (1) |
Amortization of intangibles | 108 | 112 |
Equity-based compensation expense | 109 | 96 |
(Gain) loss on securities, net | 0 | (45) |
Net change in operating assets and liabilities: | ||
LHFS | 499 | (1,617) |
Trading securities | (341) | 188 |
Other assets, accounts payable and other liabilities | (342) | (369) |
Cash paid to terminate FDIC loss share agreements | 0 | (230) |
Other, net | 72 | (37) |
Net cash from operating activities | 2,959 | 637 |
Cash Flows From Investing Activities: | ||
Proceeds from sales of AFS securities | 4,896 | 4,538 |
Proceeds from maturities, calls and paydowns of AFS securities | 3,707 | 4,039 |
Purchases of AFS securities | (4,700) | (9,867) |
Proceeds from maturities, calls and paydowns of HTM securities | 1,845 | 5,963 |
Purchases of HTM securities | (8,640) | (5,122) |
Originations and purchases of loans and leases, net of principal collected | (121) | (1,734) |
Net cash received (paid) for acquisitions and divestitures | 0 | (789) |
Other, net | (130) | 265 |
Net cash from investing activities | (3,143) | (2,707) |
Cash Flows From Financing Activities: | ||
Net change in deposits | (4,084) | 4,183 |
Net change in short-term borrowings | 6,510 | (923) |
Proceeds from issuance of long-term debt | 5,500 | 3,028 |
Repayment of long-term debt | (6,984) | (4,573) |
Net cash from common stock transactions | (1,148) | (144) |
Net proceeds from preferred stock issued | 0 | 450 |
Cash dividends paid on common stock | (747) | (682) |
Cash dividends paid on preferred stock | (130) | (123) |
Other, net | 29 | 115 |
Net cash from financing activities | (1,054) | 1,331 |
Net Change in Cash and Cash Equivalents | (1,238) | (739) |
Cash and Cash Equivalents at Beginning of Period | 3,936 | 3,711 |
Cash and Cash Equivalents at End of Period | 2,698 | 2,972 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 540 | 569 |
Cash paid during the period for income taxes | 276 | 706 |
Noncash investing activities: | ||
Transfers of loans to foreclosed assets | 203 | 189 |
Stock issued in business combinations | $ 0 | $ 1,063 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation See the Glossary of Defined Terms at the beginning of this Report for terms used throughout the consolidated financial statements and related notes of this Form 10-Q. General These consolidated financial statements and notes are presented in accordance with the instructions for Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with GAAP. In the opinion of management, all normal recurring adjustments necessary for a fair statement of the consolidated financial position and consolidated results of operations have been made. The year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The information contained in the financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2016 should be referred to in connection with these unaudited interim consolidated financial statements. Reclassifications The Consolidated Statement of Cash Flows for the nine months ended September 30, 2016 has been revised to correct errors in the classification of certain transactions related to other assets and other liabilities and were not material to prior consolidated financial statements. The revisions, which had no effect on the net change in cash and cash equivalents, increased cash from operating activities $337 million and decreased cash from investing activities and financing activities $221 million and $116 million , respectively. Certain amounts reported in prior periods' consolidated financial statements have been reclassified to conform to the current presentation. Such reclassifications had no effect on previously reported cash flows, shareholders' equity or net income. Use of Estimates in the Preparation of Financial Statements 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 and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL, determination of fair value for financial instruments, valuation of MSRs, goodwill, intangible assets and other purchase accounting related adjustments, benefit plan obligations and expenses, and tax assets, liabilities and expense. Changes in Accounting Principles and Effects of New Accounting Pronouncements Standards Adopted During Current Period - BB&T adopted the following guidance effective January 1, 2017, none of which were material to the consolidated financial statements: Stock Compensation - eliminated the concept of additional paid-in capital pools for equity-based awards and requires that the related excess tax benefits and tax deficiencies be recognized in earnings and classified as an operating activity in the statement of cash flows. The excess tax benefit for equity-based awards that vested or were exercised during the first quarter of 2017 was $35 million . The guidance also allows entities to make a one-time policy election to account for forfeitures when they occur, which BB&T has elected to do. Additionally, to retain equity classification, the guidance permits tax withholding up to the maximum statutory tax rate instead of the minimum statutory tax rate. Cash paid in lieu of shares for tax withholding purposes is classified as a financing activity in the Statement of Cash Flows. Investments - eliminated the requirement to retroactively adjust the financial statements when a change in ownership or influence causes an existing investment to qualify for the equity method of accounting. The guidance also requires the investor to add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Derivatives and Hedging - clarified that an exercise contingency does not need to be evaluated to determine whether it relates to interest rates and credit risk in an embedded derivative analysis. An entity performing the assessment will be required to assess the embedded call or put options solely in accordance with the pre-existing decision sequence. Business Combinations - provided clarification on the definition of a business and criteria to aid in the assessment of whether an integrated set of assets and activities constitutes a business. Premium Amortization on Purchased Callable Debt Securities - shortened the amortization period for the premium to the earliest call date. The amortization period for securities purchased at a discount was unaffected. Standards Not Yet Adopted - the adoption of the following guidance is not expected to be material to the consolidated financial statements unless otherwise specified: Statement of Cash Flows - requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this guidance will only affect the Consolidated Statements of Cash Flows. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Statement of Cash Flows - clarifies the classification within the statement of cash flows for certain transactions, including debt extinguishment costs, zero-coupon debt, contingent consideration related to business combinations, insurance proceeds, equity method distributions and beneficial interests in securitizations. The guidance also clarifies that cash flows with aspects of multiple classes of cash flows or that cannot be separated by source or use should be classified based on the activity that is likely to be the predominant source or use of cash flows for the item. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Liabilities - requires companies to recognize breakage on prepaid stored-value products in accordance with the recently issued guidance on Revenue from Contracts with Customers . This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Revenue from Contracts with Customers - requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance does not have an impact on the components of the Consolidated Statement of Income most closely associated with financial instruments, including securities gains/losses and interest income. BB&T's evaluation of the impact of changes for in-scope items within noninterest income has not identified material changes. The Company continues to evaluate the related changes to disclosures that may be required. The guidance is effective for interim and annual reporting periods beginning after December 15, 2017, and will be adopted using the modified retrospective approach. Financial Instruments - requires the majority of equity investments to be measured at fair value with changes in fair value recognized in net income, excluding equity investments that are consolidated or accounted for under the equity method of accounting. The new guidance allows equity investments without readily determinable fair values to be measured at cost minus impairment, with a qualitative assessment required to identify impairment. For financial instruments recorded at amortized cost, the new guidance requires public companies to disclose all fair values using an exit price and eliminates the disclosure requirements related to measurement assumptions. The new guidance also requires separate presentation of financial assets and liabilities based on form and measurement category. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Leases - requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet. The new guidance also requires additional disclosures by lessees and contains targeted changes to accounting by lessors. Upon adoption, the Company expects assets and liabilities will likely be significantly higher; however, the Company's implementation efforts are on-going, including the installation of a software solution, which will aid in determining the magnitude of the increases and its impact on the Consolidated Financial Statements. This guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Credit Losses - replaces the incurred loss impairment methodology in current GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit deteriorated loans will receive an allowance account for expected credit losses at the acquisition date that represents a component of the purchase price allocation. For AFS debt securities where the fair value is less than cost, any credit impairment will be recorded through an allowance for expected credit losses. Upon adoption, the Company expects that the ACL will likely be materially higher; however, the Company is still in the process of determining the magnitude of the increase and its impact on the Consolidated Financial Statements. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Intangibles—Goodwill and Other - simplifies the measurement of goodwill impairment. An entity will no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. This guidance is effective for impairment tests in fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - requires that the service cost component of net benefit costs of pension and postretirement benefit plans be reported in the same line item as other compensation costs in the Consolidated Statements of Income. The other components of net benefit cost will be required to be presented in a separate line item. The guidance also specifies that only the service cost component will be eligible for capitalization. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Derivatives and Hedging - expands the risk management activities that qualify for hedge accounting, and simplifies certain hedge documentation and assessment requirements. Additionally, the guidance eliminates the concept of separately recording hedge ineffectiveness, and expands disclosure requirements of the impact of hedging relationships. This guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures On April 1, 2016, BB&T acquired National Penn, resulting in the addition of $10.1 billion in assets and $6.6 billion of deposits. National Penn had 126 financial centers as of the acquisition date. On April 1, 2016, BB&T purchased insurance broker Swett & Crawford from Cooper Gay Swett & Crawford for $461 million in cash. See the Annual Report on Form 10-K for the year ended December 31, 2016 for additional information related to these transactions. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following tables present the amortized cost, gross unrealized gains and losses, and fair values of AFS and HTM securities: September 30, 2017 Amortized Cost Gross Unrealized Fair Value (Dollars in millions) Gains Losses AFS securities: U.S. Treasury $ 2,170 $ — $ 59 $ 2,111 GSE 188 — 6 182 Agency MBS 19,096 7 427 18,676 States and political subdivisions 1,586 46 33 1,599 Non-agency MBS 402 206 — 608 Other 8 — — 8 Total AFS securities $ 23,450 $ 259 $ 525 $ 23,184 HTM securities: U.S. Treasury $ 1,098 $ 18 $ — $ 1,116 GSE 2,197 16 13 2,200 Agency MBS 20,073 62 140 19,995 States and political subdivisions 34 — — 34 Other 45 2 — 47 Total HTM securities $ 23,447 $ 98 $ 153 $ 23,392 December 31, 2016 Amortized Cost Gross Unrealized Fair Value (Dollars in millions) Gains Losses AFS securities: U.S. Treasury $ 2,669 $ 2 $ 84 $ 2,587 GSE 190 — 10 180 Agency MBS 21,819 13 568 21,264 States and political subdivisions 2,198 56 49 2,205 Non-agency MBS 446 233 — 679 Other 11 — — 11 Total AFS securities $ 27,333 $ 304 $ 711 $ 26,926 HTM securities: U.S. Treasury $ 1,098 $ 20 $ — $ 1,118 GSE 2,197 14 30 2,181 Agency MBS 13,225 40 180 13,085 States and political subdivisions 110 — — 110 Other 50 2 — 52 Total HTM securities $ 16,680 $ 76 $ 210 $ 16,546 Certain investments in marketable debt securities and MBS issued by FNMA and FHLMC exceeded 10% of shareholders' equity at September 30, 2017 . The FNMA investments had total amortized cost and fair value of $14.7 billion and $14.4 billion , respectively. The FHLMC investments had total amortized cost and fair value of $9.6 billion and $9.5 billion , respectively. Changes in credit losses on securities with OTTI where a portion of the unrealized loss was recognized in OCI was immaterial for all periods presented. The amortized cost and estimated fair value of the securities portfolio by contractual maturity are shown in the following table. The expected life of MBS may differ from contractual maturities because borrowers have the right to prepay the underlying mortgage loans with or without prepayment penalties. September 30, 2017 AFS HTM (Dollars in millions) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 254 $ 254 $ — $ — Due after one year through five years 535 539 1,962 1,987 Due after five years through ten years 2,367 2,305 1,389 1,385 Due after ten years 20,294 20,086 20,096 20,020 Total debt securities $ 23,450 $ 23,184 $ 23,447 $ 23,392 The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position: September 30, 2017 Less than 12 months 12 months or more Total (Dollars in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 459 $ 2 $ 1,553 $ 57 $ 2,012 $ 59 GSE 12 — 170 6 182 6 Agency MBS 8,533 118 9,481 309 18,014 427 States and political subdivisions 87 — 408 33 495 33 Total $ 9,091 $ 120 $ 11,612 $ 405 $ 20,703 $ 525 HTM securities: GSE $ 1,185 $ 9 $ 146 $ 4 $ 1,331 $ 13 Agency MBS 9,178 76 1,736 64 10,914 140 Total $ 10,363 $ 85 $ 1,882 $ 68 $ 12,245 $ 153 December 31, 2016 Less than 12 months 12 months or more Total (Dollars in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 2,014 $ 84 $ — $ — $ 2,014 $ 84 GSE 180 10 — — 180 10 Agency MBS 14,842 342 5,138 226 19,980 568 States and political subdivisions 365 7 314 42 679 49 Total $ 17,401 $ 443 $ 5,452 $ 268 $ 22,853 $ 711 HTM securities: GSE $ 1,762 $ 30 $ — $ — $ 1,762 $ 30 Agency MBS 7,717 178 305 2 8,022 180 Total $ 9,479 $ 208 $ 305 $ 2 $ 9,784 $ 210 The unrealized losses on U.S. Treasury securities, GSE securities and Agency MBS were the result of increases in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. At September 30, 2017 , the majority of the unrealized losses on states and political subdivisions securities was the result of fair value hedge basis adjustments that are a component of amortized cost. These securities in an unrealized loss position are evaluated for credit impairment through a qualitative analysis of issuer performance and the primary source of repayment. At September 30, 2017 , none of these securities had credit impairment. |
Loans and ACL
Loans and ACL | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Loans and ACL | Loans and ACL During the first quarter of 2017, an other lending subsidiaries portfolio totaling $244 million was acquired. During the second quarter of 2017, residential mortgage loans totaling $300 million were sold, which included $40 million of nonaccrual loans and $199 million of performing TDRs. The following tables present loans and leases HFI by aging category: September 30, 2017 Accruing (Dollars in millions) Current 30-89 Days Past Due 90 Days Or More Past Due Nonaccrual Total Commercial: Commercial and industrial $ 51,666 $ 30 $ — $ 281 $ 51,977 CRE-income producing properties 14,862 7 — 31 14,900 CRE-construction and development 4,490 1 — 10 4,501 Dealer floor plan 1,607 — — — 1,607 Other lending subsidiaries 8,281 17 — 9 8,307 Retail: Direct retail lending 11,813 55 9 64 11,941 Revolving credit 2,664 22 11 — 2,697 Residential mortgage-nonguaranteed 27,261 320 43 136 27,760 Residential mortgage-government guaranteed 391 135 366 5 897 Sales finance 9,380 66 6 5 9,457 Other lending subsidiaries 7,681 293 — 65 8,039 PCI 600 41 70 — 711 Total $ 140,696 $ 987 $ 505 $ 606 $ 142,794 December 31, 2016 Accruing (Dollars in millions) Current 30-89 Days Past Due 90 Days Or More Past Due Nonaccrual Total Commercial: Commercial and industrial $ 51,329 $ 27 $ — $ 363 $ 51,719 CRE-income producing properties 14,492 6 — 40 14,538 CRE-construction and development 3,800 2 — 17 3,819 Dealer floor plan 1,413 — — — 1,413 Other lending subsidiaries 7,660 21 — 10 7,691 Retail: Direct retail lending 11,963 60 6 63 12,092 Revolving credit 2,620 23 12 — 2,655 Residential mortgage-nonguaranteed 28,378 393 79 172 29,022 Residential mortgage-government guaranteed 324 132 443 — 899 Sales finance 11,179 76 6 6 11,267 Other lending subsidiaries 6,931 301 — 65 7,297 PCI 784 36 90 — 910 Total $ 140,873 $ 1,077 $ 636 $ 736 $ 143,322 The following tables present the carrying amount of loans by risk rating. PCI loans are excluded because their related ALLL is determined by loan pool performance: September 30, 2017 (Dollars in millions) Commercial & Industrial CRE - Income Producing Properties CRE - Construction & Development Dealer Floor Plan Other Lending Subsidiaries Commercial: Pass $ 50,352 $ 14,561 $ 4,408 $ 1,598 $ 8,212 Special mention 395 63 44 — 17 Substandard-performing 949 245 39 9 69 Nonperforming 281 31 10 — 9 Total $ 51,977 $ 14,900 $ 4,501 $ 1,607 $ 8,307 Direct Retail Lending Revolving Credit Residential Mortgage Sales Finance Other Lending Subsidiaries Retail: Performing $ 11,877 $ 2,697 $ 28,516 $ 9,452 $ 7,974 Nonperforming 64 — 141 5 65 Total $ 11,941 $ 2,697 $ 28,657 $ 9,457 $ 8,039 December 31, 2016 (Dollars in millions) Commercial & Industrial CRE - Income Producing Properties CRE - Construction & Development Dealer Floor Plan Other Lending Subsidiaries Commercial: Pass $ 49,921 $ 14,061 $ 3,718 $ 1,404 $ 7,604 Special mention 314 124 38 — 33 Substandard-performing 1,121 313 46 9 44 Nonperforming 363 40 17 — 10 Total $ 51,719 $ 14,538 $ 3,819 $ 1,413 $ 7,691 Direct Retail Lending Revolving Credit Residential Mortgage Sales Finance Other Lending Subsidiaries Retail: Performing $ 12,029 $ 2,655 $ 29,749 $ 11,261 $ 7,232 Nonperforming 63 — 172 6 65 Total $ 12,092 $ 2,655 $ 29,921 $ 11,267 $ 7,297 The following tables present activity in the ACL for the periods presented: Three Months Ended September 30, 2017 (Dollars in millions) Beginning Balance Charge-Offs Recoveries Provision (Benefit) Ending Balance Commercial: Commercial and industrial $ 479 $ (10 ) $ 7 $ 3 $ 479 CRE-income producing properties 140 (2 ) 1 — 139 CRE-construction and development 23 (2 ) 2 (1 ) 22 Dealer floor plan 12 — — 1 13 Other lending subsidiaries 36 (5 ) 2 6 39 Retail: Direct retail lending 100 (16 ) 6 11 101 Revolving credit 101 (17 ) 4 13 101 Residential mortgage-nonguaranteed 173 (6 ) — 5 172 Residential mortgage-government guaranteed 38 (1 ) — (2 ) 35 Sales finance 39 (8 ) 3 3 37 Other lending subsidiaries 314 (95 ) 11 83 313 PCI 30 (1 ) — (2 ) 27 ALLL 1,485 (163 ) 36 120 1,478 RUFC 117 — — 6 123 ACL $ 1,602 $ (163 ) $ 36 $ 126 $ 1,601 Three Months Ended September 30, 2016 (Dollars in millions) Beginning Balance Charge-Offs Recoveries Provision (Benefit) Ending Balance Commercial: Commercial and industrial $ 519 $ (23 ) $ 6 $ 21 $ 523 CRE-income producing properties 116 (5 ) 3 (2 ) 112 CRE-construction and development 28 (1 ) 3 (3 ) 27 Dealer floor plan 10 — — — 10 Other lending subsidiaries 27 (5 ) 1 5 28 Retail: Direct retail lending 105 (12 ) 7 3 103 Revolving credit 98 (18 ) 5 14 99 Residential mortgage-nonguaranteed 194 (11 ) 1 — 184 Residential mortgage-government guaranteed 30 (2 ) — 9 37 Sales finance 36 (7 ) 3 4 36 Other lending subsidiaries 279 (86 ) 11 85 289 PCI 65 — — (2 ) 63 ALLL 1,507 (170 ) 40 134 1,511 RUFC 96 — — 14 110 ACL $ 1,603 $ (170 ) $ 40 $ 148 $ 1,621 Nine Months Ended September 30, 2017 (Dollars in millions) Beginning Balance Charge-Offs Recoveries Provision (Benefit) Ending Balance Commercial: Commercial and industrial $ 500 $ (60 ) $ 21 $ 18 $ 479 CRE-income producing properties 117 (6 ) 5 23 139 CRE-construction and development 25 (2 ) 7 (8 ) 22 Dealer floor plan 11 (1 ) — 3 13 Other lending subsidiaries 29 (15 ) 4 21 39 Retail: Direct retail lending 103 (46 ) 19 25 101 Revolving credit 106 (57 ) 14 38 101 Residential mortgage-nonguaranteed 186 (36 ) 1 21 172 Residential mortgage-government guaranteed 41 (3 ) — (3 ) 35 Sales finance 38 (23 ) 10 12 37 Other lending subsidiaries 289 (275 ) 37 262 313 PCI 44 (1 ) — (16 ) 27 ALLL 1,489 (525 ) 118 396 1,478 RUFC 110 — — 13 123 ACL $ 1,599 $ (525 ) $ 118 $ 409 $ 1,601 Nine Months Ended September 30, 2016 (Dollars in millions) Beginning Balance Charge-Offs Recoveries Provision (Benefit) Acquisition Ending Balance Commercial: Commercial and industrial $ 466 $ (105 ) $ 30 $ 132 $ — $ 523 CRE-income producing properties 135 (7 ) 7 (23 ) — 112 CRE-construction and development 37 (1 ) 9 (18 ) — 27 Dealer floor plan 8 — — 2 — 10 Other lending subsidiaries 22 (17 ) 5 18 — 28 Retail: Direct retail lending 105 (37 ) 20 15 — 103 Revolving credit 104 (53 ) 15 33 — 99 Residential mortgage-nonguaranteed 194 (26 ) 3 13 — 184 Residential mortgage-government guaranteed 23 (4 ) — 18 — 37 Sales finance 40 (21 ) 9 8 — 36 Other lending subsidiaries 265 (239 ) 31 232 — 289 PCI 61 — — 2 — 63 ALLL 1,460 (510 ) 129 432 — 1,511 RUFC 90 — — 11 9 110 ACL $ 1,550 $ (510 ) $ 129 $ 443 $ 9 $ 1,621 The following table provides a summary of loans that are collectively evaluated for impairment: September 30, 2017 December 31, 2016 (Dollars in millions) Recorded Investment Related ALLL Recorded Investment Related ALLL Commercial: Commercial and industrial $ 51,594 $ 451 $ 51,253 $ 463 CRE-income producing properties 14,831 134 14,455 112 CRE-construction and development 4,479 20 3,787 21 Dealer floor plan 1,607 13 1,413 11 Other lending subsidiaries 8,295 38 7,678 28 Retail: Direct retail lending 11,864 93 12,011 93 Revolving credit 2,668 89 2,626 95 Residential mortgage-nonguaranteed 27,316 137 28,488 136 Residential mortgage-government guaranteed 515 7 466 8 Sales finance 9,443 36 11,251 37 Other lending subsidiaries 7,767 264 7,057 249 PCI 711 27 910 44 Total $ 141,090 $ 1,309 $ 141,395 $ 1,297 The following tables set forth certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for impairment: Nine Months Ended September 30, 2017 Recorded Investment UPB Related ALLL Average Recorded Investment Interest Income Recognized (Dollars in millions) With no related ALLL recorded: Commercial: Commercial and industrial $ 180 $ 207 $ — $ 193 $ — CRE-income producing properties 17 20 — 26 — CRE-construction and development 7 8 — 11 — Dealer floor plan — — — 3 — Other lending subsidiaries 3 5 — 3 — Retail: Direct retail lending 21 45 — 16 1 Residential mortgage-nonguaranteed 119 162 — 104 3 Residential mortgage-government guaranteed 4 4 — 3 — Sales finance 1 2 — 1 — Other lending subsidiaries 4 10 — 4 — With an ALLL recorded: Commercial: Commercial and industrial 203 204 28 236 4 CRE-income producing properties 52 53 5 56 1 CRE-construction and development 15 15 2 19 — Dealer floor plan — — — — — Other lending subsidiaries 9 9 1 7 — Retail: Direct retail lending 56 57 8 63 3 Revolving credit 29 29 12 29 1 Residential mortgage-nonguaranteed 325 332 35 407 13 Residential mortgage-government guaranteed 378 379 28 405 12 Sales finance 13 13 1 14 — Other lending subsidiaries 268 269 49 243 29 Total $ 1,704 $ 1,823 $ 169 $ 1,843 $ 67 As of / For The Year Ended December 31, 2016 Recorded Investment UPB Related ALLL Average Recorded Investment Interest Income Recognized (Dollars in millions) With no related ALLL recorded: Commercial: Commercial and industrial $ 201 $ 225 $ — $ 217 $ 1 CRE-income producing properties 25 27 — 16 — CRE-construction and development 10 11 — 8 — Dealer floor plan — — — — — Other lending subsidiaries 4 6 — 6 — Retail: Direct retail lending 13 38 — 12 1 Residential mortgage-nonguaranteed 94 141 — 97 4 Residential mortgage-government guaranteed 3 3 — 3 — Sales finance 1 2 — 1 — Other lending subsidiaries 4 9 — 4 — With an ALLL recorded: Commercial: Commercial and industrial 265 269 37 259 5 CRE-income producing properties 58 61 5 68 2 CRE-construction and development 22 22 4 22 1 Dealer floor plan — — — — — Other lending subsidiaries 9 9 1 5 — Retail: Direct retail lending 68 69 10 71 4 Revolving credit 29 29 11 31 1 Residential mortgage-nonguaranteed 440 451 50 383 16 Residential mortgage-government guaranteed 430 431 33 360 14 Sales finance 15 15 1 16 1 Other lending subsidiaries 236 239 40 206 32 Total $ 1,927 $ 2,057 $ 192 $ 1,785 $ 82 The following table presents a summary of TDRs, including trial modifications, all of which are considered impaired: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Performing TDRs: Commercial: Commercial and industrial $ 60 $ 55 CRE-income producing properties 13 16 CRE-construction and development 9 9 Retail: Direct retail lending 63 67 Revolving credit 29 29 Residential mortgage-nonguaranteed 229 336 Residential mortgage-government guaranteed 380 433 Sales finance 13 16 Other lending subsidiaries 256 226 Total performing TDRs 1,052 1,187 Nonperforming TDRs (also included in NPL disclosures) 203 184 Total TDRs $ 1,255 $ 1,371 ALLL attributable to TDRs $ 140 $ 146 The following table summarizes the primary reason loan modifications were classified as TDRs and includes newly designated TDRs as well as modifications made to existing TDRs. Balances represent the recorded investment at the end of the quarter in which the modification was made. Rate modifications include TDRs made with below market interest rates that also include modifications of loan structures. Three Months Ended September 30, 2017 2016 Types of Modifications Impact To ALLL Types of Modifications Impact To ALLL (Dollars in millions) Rate Structure Rate Structure Newly Designated TDRs: Commercial: Commercial and industrial $ 17 $ 36 $ 1 $ 8 $ 23 $ 1 CRE-income producing properties — 4 — — 1 — CRE-construction and development — 1 — — 3 — Retail: Direct retail lending 2 1 — 5 — — Revolving credit 5 — 1 4 — 1 Residential mortgage-nonguaranteed 25 17 2 30 22 2 Residential mortgage-government guaranteed 54 — 3 118 — 7 Sales finance — 1 — — 2 — Other lending subsidiaries 62 — 8 44 — 6 Re-modification of Previously Designated TDRs 63 4 — 19 16 — Nine Months Ended September 30, 2017 2016 Types of Modifications Impact To ALLL Types of Modifications Impact To ALLL (Dollars in millions) Rate Structure Rate Structure Newly Designated TDRs: Commercial: Commercial and industrial $ 72 $ 92 $ 3 $ 99 $ 39 $ 3 CRE-income producing properties 6 8 — 4 8 — CRE-construction and development 8 2 1 1 4 — Retail: Direct retail lending 7 3 — 10 1 — Revolving credit 14 — 3 13 — 3 Residential mortgage-nonguaranteed 119 29 12 65 36 5 Residential mortgage-government guaranteed 170 — 9 217 — 12 Sales finance — 5 — — 5 — Other lending subsidiaries 140 — 16 118 — 16 Re-Modification of Previously Designated TDRs 148 26 — 48 26 — Charge-offs and forgiveness of principal and interest for TDRs were immaterial for all periods presented. The pre-default balance for modifications that had been classified as TDRs during the previous 12 months that experienced a payment default was $26 million and $19 million for the three months ended September 30, 2017 and 2016 , respectively, and $71 million and $52 million for the nine months ended September 30, 2017 and 2016 , respectively. Payment default is defined as movement of the TDR to nonaccrual status, foreclosure or charge-off, whichever occurs first. Information about PCI loans is presented in the following table: Nine Months Ended September 30, 2017 Year Ended December 31, 2016 (Dollars in millions) Purchased Impaired Purchased Nonimpaired Purchased Impaired Purchased Nonimpaired Accretable yield at beginning of period $ 253 $ 155 $ 189 $ 176 Additions — — 36 — Accretion (67 ) (44 ) (134 ) (73 ) Other, net 25 30 162 52 Accretable yield at end of period $ 211 $ 141 $ 253 $ 155 Carrying value at end of period $ 464 $ 247 $ 614 $ 296 Outstanding UPB at end of period 719 343 910 423 The following table presents additional information about loans and leases: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Unearned income, discounts and net deferred loan fees and costs, excluding PCI $ 143 $ 265 Residential mortgage loans in process of foreclosure 305 366 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill attributable to operating segments are reflected in the table below: (Dollars in millions) Community Banking Residential Mortgage Banking Dealer Financial Services Specialized Lending Insurance Holdings Financial Services Total Goodwill, January 1, 2017 $ 7,032 $ 416 $ 111 $ 113 $ 1,752 $ 214 $ 9,638 Adjustments (12 ) 6 — (9 ) (5 ) — (20 ) Goodwill, September 30, 2017 $ 7,020 $ 422 $ 111 $ 104 $ 1,747 $ 214 $ 9,618 The adjustments to goodwill were primarily the result of finalizing the purchase price allocation for National Penn and Swett & Crawford. The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets: September 30, 2017 December 31, 2016 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount CDI $ 825 $ (614 ) $ 211 $ 825 $ (565 ) $ 260 Other, primarily customer relationship intangibles 1,246 (712 ) 534 1,249 (655 ) 594 Total $ 2,071 $ (1,326 ) $ 745 $ 2,074 $ (1,220 ) $ 854 |
Loan Servicing
Loan Servicing | 9 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Loan Servicing | Loan Servicing Residential Mortgage Banking Activities The following tables summarize residential mortgage banking activities: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 UPB of residential mortgage and home equity loan servicing portfolio $ 118,736 $ 121,639 UPB of residential mortgage loans serviced for others (primarily agency conforming fixed rate) 89,391 90,325 Mortgage loans sold with recourse 514 578 Maximum recourse exposure from mortgage loans sold with recourse liability 261 282 Indemnification, recourse and repurchase reserves 39 40 As of / For The (Dollars in millions) 2017 2016 UPB of residential mortgage loans sold from LHFS $ 9,478 $ 11,098 Pre-tax gains recognized on mortgage loans sold and held for sale 114 105 Servicing fees recognized from mortgage loans serviced for others 197 201 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others 0.28 % 0.28 % Weighted average interest rate on mortgage loans serviced for others 4.00 4.06 During the third quarter of 2016, the Company paid $83 million to settle certain FHA loan origination and quality control matters pursuant to an agreement with the Department of Justice. In addition, the Company separately received recoveries of $71 million , resulting in a net benefit of $73 million for the third quarter of 2016, which was included in other expense on the Consolidated Statements of Income. Nine Months Ended September 30, (Dollars in millions) 2017 2016 Residential MSRs, carrying value, beginning of period $ 915 $ 880 Additions 93 99 Change in fair value due to changes in valuation inputs or assumptions: Prepayment speeds (56 ) (180 ) OAS 47 9 Servicing costs 9 2 Realization of expected net servicing cash flows, passage of time and other (104 ) (103 ) Residential MSRs, carrying value, end of period $ 904 $ 707 Gains (losses) on derivative financial instruments used to mitigate the income statement effect of changes in residential MSR fair value $ 12 $ 224 The sensitivity of the fair value of the residential MSRs to changes in key assumptions is included in the accompanying table: September 30, 2017 December 31, 2016 Range Weighted Range Weighted (Dollars in millions) Min Max Min Max Prepayment speed 7.6 % 10.2 % 9.3 % 7.5 % 8.4 % 8.1 % Effect on fair value of a 10% increase $ (32 ) $ (28 ) Effect on fair value of a 20% increase (62 ) (54 ) OAS 8.4 % 8.9 % 8.5 % 9.8 % 10.2 % 10.0 % Effect on fair value of a 10% increase $ (28 ) $ (33 ) Effect on fair value of a 20% increase (54 ) (64 ) Composition of loans serviced for others: Fixed-rate residential mortgage loans 99.1 % 99.1 % Adjustable-rate residential mortgage loans 0.9 0.9 Total 100.0 % 100.0 % Weighted average life 6.4 years 7.0 years The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in the above table, the effect of an adverse variation in one assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another, which may magnify or counteract the effect of the change. Commercial Mortgage Banking Activities The following table summarizes commercial mortgage banking activities for the periods presented: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 UPB of CRE mortgages serviced for others $ 28,122 $ 29,333 CRE mortgages serviced for others covered by recourse provisions 4,307 4,240 Maximum recourse exposure from CRE mortgages sold with recourse liability 1,244 1,272 Recorded reserves related to recourse exposure 6 7 CRE mortgages originated during the year-to-date period 4,969 7,145 Commercial MSRs at fair value 140 137 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2017 | |
Deposits [Abstract] | |
Deposits | Deposits A summary of deposits is presented in the accompanying table: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Noninterest-bearing deposits $ 54,049 $ 50,697 Interest checking 26,575 30,263 Money market and savings 60,904 64,883 Time deposits 14,607 14,391 Total deposits $ 156,135 $ 160,234 Time deposits $100,000 and greater $ 6,542 $ 5,394 Time deposits $250,000 and greater 3,831 2,179 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table presents a summary of long-term debt: Sep 30, 2017 Dec 31, 2016 Stated Rate Effective Rate Carrying Carrying (Dollars in millions) Maturity Min Max Amount Amount BB&T Corporation Fixed rate senior notes 2018 to 2024 1.45 % 6.85 % 2.63 % $ 7,079 $ 7,600 Floating rate senior notes 2018 2022 1.89 2.18 2.03 2,247 1,898 Fixed rate subordinated notes 2019 2022 3.95 5.25 1.71 946 1,338 Branch Bank Fixed rate senior notes 2018 2022 1.45 2.85 2.36 4,930 4,209 Floating rate senior notes 2019 2020 1.75 1.84 1.84 849 250 Fixed rate subordinated notes 2025 2026 3.63 3.80 3.43 2,142 2,138 Floating rate subordinated notes — — — — 262 FHLB advances (1) 2017 2034 — 6.38 1.30 2,495 4,118 Other long-term debt 175 152 Total long-term debt $ 20,863 $ 21,965 (1) FHLB advances had a weighted average maturity of 4.1 years at September 30, 2017 . The effective rates above reflect the impact of fair value hedges and debt issuance costs. Subordinated notes with a remaining maturity of one year or greater qualify under the risk-based capital guidelines as Tier 2 supplementary capital, subject to certain limitations. During the first quarter of 2017, Branch Bank terminated FHLB advances totaling $2.9 billion of par value, which resulted in a pre-tax loss on early extinguishment of debt totaling $392 million . During October 2017, BB&T issued $2.3 billion of fixed and floating rate debt with maturities ranging from 2021 to 2024. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity The activity relating to restricted shares/units during the period is presented in the following table: (Shares in thousands) Restricted Shares/Units Wtd. Avg. Grant Date Fair Value Nonvested at January 1, 2017 13,516 $ 29.39 Granted 3,909 42.88 Vested (3,832 ) 27.18 Forfeited (285 ) 33.01 Nonvested at September 30, 2017 13,308 33.92 Expected to vest at September 30, 2017 12,297 33.92 |
AOCI
AOCI | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
AOCI | AOCI Activity within AOCI is presented in the following tables: Three Months Ended September 30, 2017 (Dollars in millions) Unrecognized Net Pension and Postretirement Costs Unrealized Net Gains (Losses) on Cash Flow Hedges Unrealized Net Gains (Losses) on AFS Securities Other, net Total AOCI balance, July 1, 2017 $ (743 ) $ (128 ) $ (187 ) $ (15 ) $ (1,073 ) OCI before reclassifications, net of tax 1 1 19 2 23 Amounts reclassified from AOCI: Before tax (1) 11 13 (2 ) — 22 Tax effect 4 5 (1 ) — 8 Amounts reclassified, net of tax 7 8 (1 ) — 14 Net change in AOCI 8 9 18 2 37 AOCI balance, September 30, 2017 $ (735 ) $ (119 ) $ (169 ) $ (13 ) $ (1,036 ) Three Months Ended September 30, 2016 (Dollars in millions) Unrecognized Net Pension and Postretirement Costs Unrealized Net Gains (Losses) on Cash Flow Hedges Unrealized Net Gains (Losses) on AFS Securities FDIC's Share of Unrealized (Gains) Losses on AFS Securities Other, net Total AOCI balance, July 1, 2016 $ (701 ) $ (247 ) $ 263 $ (137 ) $ (15 ) $ (837 ) OCI before reclassifications, net of tax (9 ) 23 (72 ) 137 — 79 Amounts reclassified from AOCI: Before tax (1) 18 (3 ) (2 ) — 1 14 Tax effect 7 (1 ) (1 ) — 1 6 Amounts reclassified, net of tax 11 (2 ) (1 ) — — 8 Net change in AOCI 2 21 (73 ) 137 — 87 AOCI balance, September 30, 2016 $ (699 ) $ (226 ) $ 190 $ — $ (15 ) $ (750 ) Nine Months Ended September 30, 2017 (Dollars in millions) Unrecognized Net Pension and Postretirement Costs Unrealized Net Gains (Losses) on Cash Flow Hedges Unrealized Net Gains (Losses) on AFS Securities Other, net Total AOCI balance, January 1, 2017 $ (764 ) $ (92 ) $ (259 ) $ (17 ) $ (1,132 ) OCI before reclassifications, net of tax — (26 ) 99 4 77 Amounts reclassified from AOCI: Before tax (1) 46 (1 ) (15 ) — 30 Tax effect 17 — (6 ) — 11 Amounts reclassified, net of tax 29 (1 ) (9 ) — 19 Net change in AOCI 29 (27 ) 90 4 96 AOCI balance, September 30, 2017 $ (735 ) $ (119 ) $ (169 ) $ (13 ) $ (1,036 ) Nine Months Ended September 30, 2016 (Dollars in millions) Unrecognized Net Pension and Postretirement Costs Unrealized Net Gains (Losses) on Cash Flow Hedges Unrealized Net Gains (Losses) on AFS Securities FDIC's Share of Unrealized (Gains) Losses on AFS Securities Other, net Total AOCI balance, January 1, 2016 $ (723 ) $ (83 ) $ (34 ) $ (169 ) $ (19 ) $ (1,028 ) OCI before reclassifications, net of tax (8 ) (154 ) 280 148 3 269 Amounts reclassified from AOCI: Before tax (1) 51 18 (90 ) 33 2 14 Tax effect 19 7 (34 ) 12 1 5 Amounts reclassified, net of tax 32 11 (56 ) 21 1 9 Net change in AOCI 24 (143 ) 224 169 4 278 AOCI balance, September 30, 2016 $ (699 ) $ (226 ) $ 190 $ — $ (15 ) $ (750 ) (1) Amounts related to unrecognized net pension and postretirement costs are included in personnel expense, amounts related to unrealized net gains (losses) on cash flow hedges are included in net interest income, amounts related to unrealized net gains (losses) on AFS securities are included in net interest income and securities gains/losses when realized, amounts related to FDIC's share of unrealized gains (losses) on AFS securities are included in FDIC loss share income, net and amounts related to other, net are primarily included in net interest income in the Consolidated Statements of Income. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates for the three months ended September 30, 2017 and 2016 were 31.2% and 29.8% , respectively. The effective tax rates for the nine months ended September 30, 2017 and 2016 were 28.7% and 30.0% , respectively. The effective tax rate for the nine months ended September 30, 2017 was lower than the corresponding period in 2016 primarily due to the excess tax benefits from equity-based compensation plans and the tax benefits associated with using the marginal income tax rate for the loss on the early extinguishment of debt. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Three Months Ended September 30, Qualified Plans Nonqualified Plans (Dollars in millions) 2017 2016 2017 2016 Service cost $ 45 $ 44 $ 2 $ 3 Interest cost 43 41 5 5 Estimated return on plan assets (93 ) (82 ) — — Amortization and other 14 18 4 3 Net periodic benefit cost $ 9 $ 21 $ 11 $ 11 Nine Months Ended September 30, Qualified Plans Nonqualified Plans (Dollars in millions) 2017 2016 2017 2016 Service cost $ 143 $ 130 $ 9 $ 9 Interest cost 130 122 14 14 Estimated return on plan assets (278 ) (244 ) — — Amortization and other 47 51 10 9 Net periodic benefit cost $ 42 $ 59 $ 33 $ 32 BB&T makes contributions to the qualified pension plans in amounts between the minimum required for funding and the maximum deductible for federal income tax purposes. Discretionary contributions totaling $347 million were made during the nine months ended September 30, 2017 . There are no required contributions for the remainder of 2017, though BB&T may elect to make additional discretionary contributions. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Letters of credit $ 2,658 $ 2,786 Carrying amount of the liability for letters of credit 22 27 Investments in affordable housing and historic building rehabilitation projects: Carrying amount 2,018 1,719 Amount of future funding commitments included in carrying amount 971 738 Lending exposure 547 495 Tax credits subject to recapture 450 413 Private equity investments 426 362 Future funding commitments to private equity investments 136 197 Legal Proceedings The nature of BB&T's business ordinarily results in a certain amount of claims, litigation, investigations and legal and administrative cases and proceedings, all of which are considered incidental to the normal conduct of business. BB&T believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and, with respect to such legal proceedings, intends to continue to defend itself vigorously, litigating or settling cases according to management's judgment as to what is in the best interests of BB&T and its shareholders. On at least a quarterly basis, liabilities and contingencies in connection with outstanding legal proceedings are assessed utilizing the latest information available. For those matters where it is probable that BB&T will incur a loss and the amount of the loss can be reasonably estimated, and is more than nominal, a liability is recorded in the consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments on at least a quarterly basis. For other matters, where a loss is not probable or the amount of the loss is not estimable, legal reserves are not accrued. While the outcome of legal proceedings is inherently uncertain, based on information currently available, advice of counsel and available insurance coverage, management believes that the established legal reserves are adequate and the liabilities arising from legal proceedings will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the consolidated financial position, consolidated results of operations or consolidated cash flows of BB&T. Pledged Assets Certain assets were pledged to secure municipal deposits, securities sold under agreements to repurchase, borrowings and borrowing capacity, subject to any applicable asset discount, at the FHLB and FRB as well as for other purposes as required or permitted by law. The following table provides the total carrying amount of pledged assets by asset type, of which the majority are pursuant to agreements that do not permit the other party to sell or repledge the collateral. Assets related to employee benefit plans have been excluded from the following table. (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Pledged securities $ 14,457 $ 15,549 Pledged loans 74,411 75,015 |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis: September 30, 2017 (Dollars in millions) Total Level 1 Level 2 Level 3 Assets: Trading securities $ 1,089 $ 346 $ 743 $ — AFS securities: U.S. Treasury 2,111 — 2,111 — GSE 182 — 182 — Agency MBS 18,676 — 18,676 — States and political subdivisions 1,599 — 1,599 — Non-agency MBS 608 — 151 457 Other 8 5 3 — Total AFS securities 23,184 5 22,722 457 LHFS 1,217 — 1,217 — MSRs 1,044 — — 1,044 Derivative assets: Interest rate contracts 523 — 515 8 Foreign exchange contracts 5 — 5 — Total derivative assets 528 — 520 8 Private equity investments 413 — — 413 Total assets $ 27,475 $ 351 $ 25,202 $ 1,922 Liabilities: Derivative liabilities: Interest rate contracts $ 725 $ 1 $ 721 $ 3 Foreign exchange contracts 6 — 6 — Total derivative liabilities 731 1 727 3 Securities sold short 82 — 82 — Total liabilities $ 813 $ 1 $ 809 $ 3 December 31, 2016 (Dollars in millions) Total Level 1 Level 2 Level 3 Assets: Trading securities $ 748 $ 324 $ 424 $ — AFS securities: U.S. Treasury 2,587 — 2,587 — GSE 180 — 180 — Agency MBS 21,264 — 21,264 — States and political subdivisions 2,205 — 2,205 — Non-agency MBS 679 — 172 507 Other 11 8 3 — Total AFS securities 26,926 8 26,411 507 LHFS 1,716 — 1,716 — MSRs 1,052 — — 1,052 Derivative assets: Interest rate contracts 814 — 807 7 Foreign exchange contracts 8 — 8 — Total derivative assets 822 — 815 7 Private equity investments 362 — — 362 Total assets $ 31,626 $ 332 $ 29,366 $ 1,928 Liabilities: Derivative liabilities: Interest rate contracts $ 998 $ — $ 978 $ 20 Foreign exchange contracts 5 — 5 — Total derivative liabilities 1,003 — 983 20 Securities sold short 137 — 137 — Total liabilities $ 1,140 $ — $ 1,120 $ 20 Accounting standards define fair value as the exchange price that would be received on the measurement date to sell an asset or the price paid to transfer a liability in the principal or most advantageous market available to the entity in an orderly transaction between market participants, with a three level valuation input hierarchy. The following discussion focuses on the valuation techniques and significant inputs for Level 2 and Level 3 assets and liabilities. A third-party pricing service is generally utilized in determining the fair value of the securities portfolio. Management independently evaluates the fair values provided by the pricing service through comparisons to other external pricing sources, review of additional information provided by the pricing service and other third party sources for selected securities and back-testing to compare the price realized on any security sales to the daily pricing information received from the pricing service. Fair value measurements are derived from market-based pricing matrices that were developed using observable inputs that include benchmark yields, benchmark securities, reported trades, offers, bids, issuer spreads and broker quotes. As described by security type below, additional inputs may be used, or some inputs may not be applicable. In the event that market observable data was not available, which would generally occur due to the lack of an active market for a given security, the valuation of the security would be subjective and may involve substantial judgment by management. Trading securities: Trading securities include various types of debt and equity securities, primarily consisting of debt securities issued by the U.S. Treasury, GSEs, or states and political subdivisions. The valuation techniques used for these investments are more fully discussed below. U.S. Treasury securities: Treasury securities are valued using quoted prices in active over-the-counter markets. GSE securities and agency MBS: GSE pass-through securities are valued using market-based pricing matrices that reference observable inputs including benchmark TBA security pricing and yield curves that were estimated based on U.S. Treasury yields and certain floating rate indices. The pricing matrices for these securities may also give consideration to pool-specific data supplied directly by the GSE. GSE CMOs are valued using market-based pricing matrices that are based on observable inputs including offers, bids, reported trades, dealer quotes and market research reports, the characteristics of a specific tranche, market convention prepayment speeds and benchmark yield curves as described above. States and political subdivisions: These securities are valued using market-based pricing matrices that reference observable inputs including MSRB reported trades, issuer spreads, material event notices and benchmark yield curves. Non-agency MBS: Pricing matrices for these securities are based on observable inputs including offers, bids, reported trades, dealer quotes and market research reports, the characteristics of a specific tranche, market convention prepayment speeds and benchmark yield curves as described above. Non-agency MBS also include investments in Re-REMIC trusts that primarily hold non-agency MBS, which are valued based on broker pricing models that use baseline securities yields and tranche-level yield adjustments to discount cash flows modeled using market convention prepayment speed and default assumptions. Other securities: These securities consist primarily of mutual funds and corporate bonds. These securities are valued based on a review of quoted market prices for assets as well as through the various other inputs discussed previously. LHFS: Certain mortgage loans are originated to be sold to investors, which are carried at fair value. The fair value is primarily based on quoted market prices for securities backed by similar types of loans. The changes in fair value of these assets are largely driven by changes in interest rates subsequent to loan funding and changes in the fair value of servicing associated with the mortgage LHFS. MSRs: Residential MSRs are valued using an OAS valuation model to project cash flows over multiple interest rate scenarios, which are discounted at risk-adjusted rates. The model considers portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges, other ancillary revenue, costs to service and other economic factors. Fair value estimates and assumptions are compared to industry surveys, recent market activity, actual portfolio experience and, when available, other observable market data. Commercial MSRs are valued using a cash flow valuation model that calculates the present value of estimated future net servicing cash flows. BB&T considers actual and expected loan prepayment rates, discount rates, servicing costs and other economic factors that are determined based on current market conditions. Derivative assets and liabilities: The fair values of derivatives are determined based on quoted market prices and internal pricing models that use market observable data. The fair values of interest rate lock commitments, which are related to mortgage loan commitments and are categorized as Level 3, are based on quoted market prices adjusted for commitments that are not expected to fund and include the value attributable to the net servicing fees. Private equity investments: In many cases there are no observable market values for these investments and therefore management must estimate the fair value based on a comparison of the operating performance of the company to multiples in the marketplace for similar entities. This analysis requires significant judgment, and actual values in a sale could differ materially from those estimated. Securities sold short: Securities sold short represent debt securities sold short that are entered into as a hedging strategy for the purposes of supporting institutional and retail client trading activities. The following tables summarize activity for Level 3 assets and liabilities: Three Months Ended September 30, 2017 (Dollars in millions) Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at July 1, 2017 $ 474 $ 1,052 $ 3 $ 394 Total realized and unrealized gains (losses): Included in earnings (1) 8 4 11 21 Included in unrealized net holding gains (losses) in OCI (7 ) — — — Purchases — — — 9 Issuances — 30 15 — Sales — — — (11 ) Settlements (18 ) (42 ) (24 ) — Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Balance at September 30, 2017 $ 457 $ 1,044 $ 5 $ 413 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2017 $ 9 $ 4 $ 5 $ 16 Three Months Ended September 30, 2016 (Dollars in millions) Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at July 1, 2016 $ 559 $ 785 $ 33 $ 353 Total realized and unrealized gains (losses): Included in earnings (1) 6 42 45 3 Included in unrealized net holding gains (losses) in OCI (5 ) — — — Purchases — — — 15 Issuances — 44 22 — Sales — — — (29 ) Settlements (21 ) (43 ) (80 ) (2 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Balance at September 30, 2016 $ 539 $ 828 $ 20 $ 340 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2016 $ 6 $ 42 $ 20 $ 1 Nine Months Ended September 30, 2017 (Dollars in millions) Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at January 1, 2017 $ 507 1,052 $ (13 ) $ 362 Total realized and unrealized gains (losses): Included in earnings (1) 31 24 30 26 Included in unrealized net holding gains (losses) in OCI (27 ) — — — Purchases — — — 84 Issuances — 93 39 — Sales — — — (41 ) Settlements (54 ) (125 ) (51 ) (5 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — (13 ) Balance at September 30, 2017 $ 457 $ 1,044 $ 5 $ 413 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2017 $ 31 $ 24 $ 5 $ 16 Nine Months Ended September 30, 2016 (Dollars in millions) Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at January 1, 2016 $ 626 $ 880 $ 4 $ 289 Total realized and unrealized gains (losses): Included in earnings (1) 38 (154 ) 101 6 Included in unrealized net holding gains (losses) in OCI (50 ) — — — Purchases — — — 89 Issuances — 100 85 — Sales — — — (37 ) Settlements (75 ) (121 ) (170 ) (7 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Adoption of fair value option for commercial MSRs — 123 — — Balance at September 30, 2016 $ 539 $ 828 $ 20 $ 340 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2016 $ 38 $ (154 ) $ 20 $ 1 (1) Amounts related to non-agency MBS are included in interest income, amounts related to MSRs and net derivatives are primarily included in mortgage banking income and amounts related to private equity investments are included in other income in the Consolidated Statements of Income. BB&T’s policy is to recognize transfers between levels as of the end of a reporting period. The non-agency MBS categorized as Level 3 represent ownership interest in various tranches of Re-REMIC trusts. These securities are valued at a discount, which is unobservable in the market, to the fair value of the underlying securities owned by the trusts. The Re-REMIC tranches do not have an active market and therefore are categorized as Level 3. At September 30, 2017 , the fair value of Re-REMIC non-agency MBS represented a discount of 18.5% to the fair value of the underlying securities owned by the Re-REMIC trusts. The majority of private equity investments are in SBIC qualified funds, which primarily focus on equity and subordinated debt investments in privately-held middle market companies. The majority of these VIE investments are not redeemable and distributions are received as the underlying assets of the funds liquidate. The timing of distributions, which are expected to occur on various dates through 2026 , is uncertain and dependent on various events such as recapitalizations, refinance transactions and ownership changes among others. Excluding the investment of future funds, BB&T estimates these investments have a weighted average remaining life of approximately three years ; however, the timing and amount of distributions may vary significantly. As of September 30, 2017 , restrictions on the ability to sell the investments include, but are not limited to, consent of a majority member or general partner approval for transfer of ownership. These investments are spread over numerous privately-held middle market companies, and thus the sensitivity to a change in fair value for any single investment is limited. The significant unobservable inputs for these investments are EBITDA multiples that ranged from 5 x to 12 x, with a weighted average of 8 x, at September 30, 2017 . The following table details the fair value and UPB of LHFS that were elected to be carried at fair value: September 30, 2017 December 31, 2016 (Dollars in millions) Fair Value Aggregate UPB Difference Fair Value Aggregate UPB Difference LHFS reported at fair value $ 1,217 $ 1,197 $ 20 $ 1,716 $ 1,736 $ (20 ) Excluding government guaranteed, LHFS that were in nonaccrual status or 90 days or more past due and still accruing interest were not material at September 30, 2017 . The following table provides information about certain assets measured at fair value on a nonrecurring basis, which are primarily collateral dependent and may be subject to liquidity adjustments. The carrying values represent end of period values, which approximate the fair value measurements that occurred on the various measurement dates throughout the period. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end. These assets are considered to be Level 3 assets (excludes PCI). September 30, 2017 September 30, 2016 Valuation Adjustments Valuation Adjustments (Dollars in millions) Carrying Value Three Months Ended Nine Months Ended Carrying Value Three Months Ended Nine Months Ended Impaired loans $ 198 $ (4 ) $ (18 ) $ 314 $ (22 ) $ (76 ) Foreclosed real estate 46 (66 ) (192 ) 58 (59 ) (160 ) For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instrument. Values obtained relate to one trading unit without regard to any premium or discount that may result from concentrations of ownership, possible tax ramifications, estimated transaction costs that may result from bulk sales or the relationship between various instruments. An active market does not exist for certain financial instruments. Fair value estimates for these instruments are based on current economic conditions, currency and interest rate risk characteristics, loss experience and other factors. Many of these estimates involve uncertainties and matters of significant judgment and cannot be determined with precision. Therefore, the fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases, may not be realizable in a current sale of the instrument. In addition, changes in assumptions could significantly affect these fair value estimates. The following assumptions were used to estimate the fair value of these financial instruments. Cash and cash equivalents and restricted cash : For these short-term instruments, the carrying amounts are a reasonable estimate of fair values. HTM securities: The fair values of HTM securities are based on a market approach using observable inputs such as benchmark yields and securities, TBA prices, reported trades, issuer spreads, current bids and offers, monthly payment information and collateral performance. Loans receivable : The fair values for loans are estimated using discounted cash flow analyses, applying interest rates currently being offered for loans with similar terms and credit quality, which are deemed to be indicative of orderly transactions in the current market. For commercial loans and leases, discount rates may be adjusted to address additional credit risk on lower risk grade instruments. For residential mortgage and other consumer loans, internal prepayment risk models are used to adjust contractual cash flows. Loans are aggregated into pools of similar terms and credit quality and discounted using a LIBOR based rate. The carrying amounts of accrued interest approximate fair values. Deposit liabilities : The fair values for demand deposits are equal to the amount payable on demand. Fair values for CDs are estimated using a discounted cash flow calculation that applies current interest rates to aggregate expected maturities. BB&T has developed long-term relationships with its deposit customers, commonly referred to as CDIs, that have not been considered in the determination of the deposit liabilities' fair value. Short-term borrowings : The carrying amounts of short-term borrowings, excluding securities sold short, approximate their fair values. Long-term debt : The fair values of long-term debt instruments are estimated based on quoted market prices for the instrument if available, or for similar instruments if not available, or by using discounted cash flow analyses, based on current incremental borrowing rates for similar types of instruments. Contractual commitments : The fair values of commitments are estimated using the fees charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The fair values of guarantees and letters of credit are estimated based on the counterparties' creditworthiness and average default rates for loan products with similar risks. These respective fair value measurements are categorized within Level 3 of the fair value hierarchy. Retail lending commitments are assigned no fair value as BB&T typically has the ability to cancel such commitments by providing notice to the borrower. Financial assets and liabilities not recorded at fair value are summarized below: September 30, 2017 (Dollars in millions) Carrying Amount Total Fair Value Level 2 Level 3 Financial assets: HTM securities $ 23,447 $ 23,392 $ 23,392 $ — Loans and leases HFI, net of ALLL 141,316 141,258 — 141,258 Financial liabilities: Deposits 156,135 156,234 156,234 — Long-term debt 20,863 21,117 21,117 — December 31, 2016 (Dollars in millions) Carrying Amount Total Fair Value Level 2 Level 3 Financial assets: HTM securities $ 16,680 $ 16,546 $ 16,546 $ — Loans and leases HFI, net of ALLL 141,833 142,044 — 142,044 Financial liabilities: Deposits 160,234 160,403 160,403 — Long-term debt 21,965 22,423 22,423 — The following is a summary of selected information pertaining to off-balance sheet financial instruments: September 30, 2017 December 31, 2016 (Dollars in millions) Notional/Contract Amount Fair Value Notional/Contract Amount Fair Value Commitments to extend, originate or purchase credit $ 67,529 $ 274 $ 64,395 $ 250 Residential mortgage loans sold with recourse 514 6 578 7 Other loans sold with recourse 4,307 6 4,240 7 Letters of credit 2,658 22 2,786 27 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The following table presents the notional amount and estimated fair value of derivative instruments: September 30, 2017 December 31, 2016 Hedged Item or Transaction Notional Amount Fair Value Notional Amount Fair Value (Dollars in millions) Gain Loss Gain Loss Cash flow hedges: Interest rate contracts: Pay fixed swaps 3 mo. LIBOR funding $ 6,500 $ — $ (200 ) $ 7,050 $ — $ (187 ) Fair value hedges: Interest rate contracts: Receive fixed swaps Long-term debt 12,827 157 (93 ) 12,099 202 (100 ) Options Long-term debt 5,337 — (1 ) 2,790 — (1 ) Pay fixed swaps Commercial loans 374 3 (1 ) 346 4 (2 ) Pay fixed swaps Municipal securities 231 — (81 ) 231 — (83 ) Total 18,769 160 (176 ) 15,466 206 (186 ) Not designated as hedges: Client-related and other risk management: Interest rate contracts: Receive fixed swaps 10,800 195 (37 ) 9,989 235 (44 ) Pay fixed swaps 10,930 35 (212 ) 10,263 43 (252 ) Other swaps 1,025 2 (3 ) 1,086 2 (5 ) Other 792 2 (2 ) 709 2 (2 ) Forward commitments 6,138 8 (5 ) 5,972 29 (28 ) Foreign exchange contracts 533 5 (6 ) 669 8 (5 ) Total 30,218 247 (265 ) 28,688 319 (336 ) Mortgage banking: Interest rate contracts: Interest rate lock commitments 1,528 8 (3 ) 2,219 7 (20 ) When issued securities, forward rate agreements and forward commitments 3,434 8 (3 ) 6,683 51 (14 ) Other 193 2 — 449 2 (1 ) Total 5,155 18 (6 ) 9,351 60 (35 ) MSRs: Interest rate contracts: Receive fixed swaps 4,026 48 (40 ) 5,034 18 (236 ) Pay fixed swaps 3,080 6 (38 ) 3,768 56 (7 ) Options 2,930 48 (1 ) 5,710 160 (8 ) When issued securities, forward rate agreements and forward commitments 1,776 1 (5 ) 3,210 3 (8 ) Other 30 — — — — — Total 11,842 103 (84 ) 17,722 237 (259 ) Total derivatives not designated as hedges 47,215 368 (355 ) 55,761 616 (630 ) Total derivatives $ 72,484 528 (731 ) $ 78,277 822 (1,003 ) Gross amounts not offset in the Consolidated Balance Sheets: Amounts subject to master netting arrangements not offset due to policy election (306 ) 306 (443 ) 443 Cash collateral (received) posted (40 ) 375 (119 ) 450 Net amount $ 182 $ (50 ) $ 260 $ (110 ) The fair values of derivatives in a gain or loss position are presented on a gross basis in other assets or other liabilities, respectively, in the Consolidated Balance Sheets. Collateral practices mitigate the potential loss impact to affected parties by requiring liquid collateral to be posted on a scheduled basis to secure the aggregate net unsecured exposure. In addition to collateral, the right of setoff allows counterparties to offset net derivative values with a defaulting party against certain other contractual receivables from or obligations due to the defaulting party in determining the net termination amount. No portion of the change in fair value of derivatives designated as hedges has been excluded from effectiveness testing. The ineffective portion was immaterial for all periods presented. The following tables present the effective portion of hedging derivative instruments on the consolidated statements of income: Three Months Ended September 30, Pre-tax Gain (Loss) Recognized in OCI Location of Amounts Reclassified from AOCI into Income Pre-tax Gain (Loss) Reclassified from AOCI into Income (Dollars in millions) 2017 2016 2017 2016 Cash flow hedges: Interest rate contracts $ 1 $ 38 Total interest expense $ (13 ) $ 3 Pre-tax Gain (Loss) Recognized in Income Location of Amounts Recognized in Income 2017 2016 Fair value hedges: Interest rate contracts Total interest income $ (3 ) $ (5 ) Interest rate contracts Total interest expense 30 58 Total $ 27 $ 53 Not designated as hedges: Client-related and other risk management: Interest rate contracts Other noninterest income $ 11 $ 15 Foreign exchange contracts Other noninterest income 5 (1 ) Mortgage banking: Interest rate contracts Mortgage banking income (3 ) 17 MSRs: Interest rate contracts Mortgage banking income 10 3 Total $ 23 $ 34 Nine Months Ended September 30, Pre-tax Gain (Loss) Recognized in OCI Location of Amounts Reclassified from AOCI into Income Pre-tax Gain (Loss) Reclassified from AOCI into Income (Dollars in millions) 2017 2016 2017 2016 Cash Flow Hedges: Interest rate contracts $ (42 ) $ (245 ) Total interest expense $ 1 $ (18 ) Pre-tax Gain (Loss) Recognized in Income Location of Amounts Recognized in Income 2017 2016 Fair Value Hedges: Interest rate contracts Total interest income $ (12 ) $ (13 ) Interest rate contracts Total interest expense 118 177 Total $ 106 $ 164 Not Designated as Hedges: Client-related and other risk management: Interest rate contracts Other noninterest income $ 38 $ 23 Foreign exchange contracts Other noninterest income — 4 Mortgage Banking: Interest rate contracts Mortgage banking income (8 ) (2 ) MSRs: Interest rate contracts Mortgage banking income 13 232 Total $ 43 $ 257 The following table provides a summary of derivative strategies and the related accounting treatment: Cash Flow Hedges Fair Value Hedges Derivatives Not Designated as Hedges Risk exposure Variability in cash flows of interest payments on floating rate business loans, overnight funding and various LIBOR funding instruments. Changes in value on fixed rate long-term debt, CDs, FHLB advances, loans and state and political subdivision securities due to changes in interest rates. Risk associated with an asset or liability, including mortgage banking operations and MSRs, or for client needs. Includes exposure to changes in market rates and conditions subsequent to the interest rate lock and funding date for mortgage loans originated for sale. Risk management objective Hedge the variability in the interest payments and receipts on future cash flows for forecasted transactions related to the first unhedged payments and receipts of variable interest. Convert the fixed rate paid or received to a floating rate, primarily through the use of swaps. For interest rate lock commitment derivatives and LHFS, use mortgage-based derivatives such as forward commitments and options to mitigate market risk. For MSRs, mitigate the income statement effect of changes in the fair value of the MSRs. Treatment for portion that is highly effective Recognized in AOCI until the related cash flows from the hedged item are recognized in earnings. Recognized in current period income along with the corresponding changes in the fair value of the designated hedged item attributable to the risk being hedged. Entire change in fair value recognized in current period income. Treatment for portion that is ineffective Recognized in current period income. Recognized in current period income. Not applicable Treatment if hedge ceases to be highly effective or is terminated Hedge is dedesignated. Effective changes in value that are recorded in AOCI before dedesignation are amortized to yield over the period the forecasted hedged transactions impact earnings. If hedged item remains outstanding, termination proceeds are included in cash flows from financing activities and effective changes in value are reflected as part of the carrying value of the financial instrument and amortized to earnings over its estimated remaining life. Not applicable Treatment if transaction is no longer probable of occurring during forecast period or within a short period thereafter Hedge accounting is ceased and any gain or loss in AOCI is reported in earnings immediately. Not applicable Not applicable The following table presents information about BB&T's cash flow and fair value hedges: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Cash flow hedges: Net unrecognized after-tax loss on active hedges recorded in AOCI $ (125 ) $ (118 ) Net unrecognized after-tax gain on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) 6 26 Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months (34 ) (4 ) Maximum time period over which BB&T has hedged a portion of the variability in future cash flows for forecasted transactions excluding those transactions relating to the payment of variable interest on existing instruments 5 years 6 years Fair value hedges: Unrecognized pre-tax net gain on terminated hedges (to be recognized as interest primarily through 2019) $ 142 $ 169 Portion of pre-tax net gain on terminated hedges to be recognized as a change in interest during the next 12 months 50 56 Derivatives Credit Risk – Dealer Counterparties Credit risk related to derivatives arises when amounts receivable from a counterparty exceed those payable to the same counterparty. The risk of loss is addressed by subjecting dealer counterparties to credit reviews and approvals similar to those used in making loans or other extensions of credit and by requiring collateral. Dealer counterparties operate under agreements to provide cash and/or liquid collateral when unsecured loss positions exceed minimal limits. Derivative contracts with dealer counterparties settle on a monthly, quarterly or semiannual basis, with daily movement of collateral between counterparties required within established netting agreements. BB&T only transacts with dealer counterparties with strong credit standings. Derivatives Credit Risk – Central Clearing Parties Certain derivatives are cleared through central clearing parties that require initial margin collateral, as well as collateral for trades in a net loss position. Initial margin collateral requirements are established by central clearing parties on varying bases, with such amounts generally designed to offset the risk of non-payment. Initial margin is generally calculated by applying the maximum loss experienced in value over a specified time horizon to the portfolio of existing trades. The central clearing party used for TBA transactions does not post variation margin to the bank. The following table summarizes collateral positions with counterparties: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Dealer Counterparties: Cash collateral received from dealer counterparties $ 41 $ 123 Derivatives in a net gain position secured by that collateral 42 123 Unsecured positions in a net gain with dealer counterparties after collateral postings 2 4 Cash collateral posted to dealer counterparties 163 138 Derivatives in a net loss position secured by that collateral 163 144 Additional collateral that would have been posted had BB&T's credit ratings dropped below investment grade 1 8 Central Clearing Parties: Cash collateral, including initial margin, posted to central clearing parties 222 313 Derivatives in a net loss position secured by that collateral 213 318 Securities pledged to central clearing parties 100 119 |
Computation of EPS
Computation of EPS | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of EPS | Computation of EPS Basic and diluted EPS calculations are presented in the following table: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions, except per share data, shares in thousands) 2017 2016 2017 2016 Net income available to common shareholders $ 597 $ 599 $ 1,606 $ 1,667 Weighted average number of common shares 794,558 812,521 804,424 802,694 Effect of dilutive outstanding equity-based awards 11,566 10,585 11,605 9,713 Weighted average number of diluted common shares 806,124 823,106 816,029 812,407 Basic EPS $ 0.75 $ 0.74 $ 2.00 $ 2.08 Diluted EPS $ 0.74 $ 0.73 $ 1.97 $ 2.05 Anti-dilutive awards 184 5,416 222 6,088 |
Operating Segments
Operating Segments | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments The financial information related to National Penn's operations was included in the Other, Treasury & Corporate segment from the date of acquisition until the systems conversion, which occurred during July 2016. The majority of National Penn's operations are now included in Community Banking. During the second quarter of 2017, a change was made in the method for allocation of capital to the operating segments impacting both the allocated balances and funding credit, resulting primarily in an increase to net interest income in the Residential Mortgage segment, offset by the Other, Treasury & Corporate segment. Results for prior periods have been revised to reflect the changes in allocation methodology, which are not considered significant to other segments. Segment Realignment Effective January 2017, several business activities were realigned within the segments. First, certain client relationships with $218 million of loans and $2.0 billion of deposits were no longer included in Financial Services and are only reported in Community Banking as the result of client re-segmentation. Second, the Mortgage Warehouse Lending and Domestic Factoring businesses within Specialized Lending were moved to Residential Mortgage Banking and Other, Treasury & Corporate, respectively, to align with changes in the internal management structure. Third, the International division was restructured with components integrated into Community Banking and Financial Services from Other, Treasury & Corporate also to align with changes in the internal management structure. The segment information presented herein reflects the impact of the realignment. Community Banking Community Banking serves individual and business clients by offering a variety of loan and deposit products and other financial services. Community Banking is primarily responsible for serving client relationships and, therefore, is credited with certain revenue from Residential Mortgage Banking, Financial Services, Insurance Holdings and Specialized Lending, which is reflected in net referral fees. Residential Mortgage Banking Residential Mortgage Banking retains and services mortgage loans originated by BB&T as well as those purchased from various correspondent originators. Mortgage loan products include fixed and adjustable rate government and conventional loans for the purpose of constructing, purchasing or refinancing residential properties. Substantially all of the properties are owner occupied. BB&T generally retains the servicing rights to loans sold. Residential Mortgage Banking earns interest on loans held in the warehouse and portfolio, earns fee income from the origination and servicing of mortgage loans and recognizes gains or losses from the sale of mortgage loans. Residential Mortgage Banking also includes Mortgage Warehouse Lending which provides short-term lending solutions to finance first-lien residential mortgage LHFS by independent mortgage companies. Dealer Financial Services Dealer Financial Services originates loans to consumers on a prime and nonprime basis for the purchase of automobiles. Such loans are originated on an indirect basis through approved franchised and independent automobile dealers throughout the BB&T market area and nationally through Regional Acceptance Corporation. This segment also originates loans for the purchase of boats and recreational vehicles originated through dealers in BB&T’s market area. In addition, financing and servicing to dealers for their inventories is provided through a joint relationship between Dealer Financial Services and Community Banking. Specialized Lending Specialized Lending consists of BUs and subsidiaries that provide specialty finance products to consumers and businesses. The BUs include Sheffield Financial and Governmental Finance. Sheffield Financial is a dealer-based financer of small ticket equipment for both businesses and consumers. Governmental Finance provides tax-exempt financing to meet the capital project needs of local governments. Operating subsidiaries include BB&T Equipment Finance and BB&T Commercial Equipment Capital, which provide equipment leasing for large and small-to-middle market clients primarily within BB&T’s banking footprint; Prime Rate Premium Finance Corporation, which includes AFCO and CAFO, insurance premium finance subsidiaries that provide funding to businesses in the United States and Canada and to consumers in certain markets within BB&T’s banking footprint; and Grandbridge, a full-service commercial mortgage banking lender providing loans on a national basis. Branch Bank clients as well as nonbank clients within and outside BB&T’s primary geographic market area are served by these subsidiaries and BUs. The Community Banking and Financial Services segments receive credit for referrals to these BUs with the corresponding charge retained as part of Other, Treasury & Corporate in the accompanying tables. Insurance Holdings BB&T's insurance agency / brokerage network is the fifth largest in the world. Insurance Holdings provides property and casualty, employee benefits and life insurance to businesses and individuals. It also provides small business and corporate services, such as workers compensation and professional liability, as well as surety coverage and title insurance. Community Banking and Financial Services receive credit for insurance commissions on referred accounts, with the corresponding charge retained as part of Other, Treasury & Corporate in the accompanying tables. Financial Services Financial Services provides personal trust administration, estate planning, investment counseling, wealth management, asset management, corporate retirement services, corporate banking and corporate trust services. Financial Services also offers clients investment alternatives, including discount brokerage services, equities, fixed-rate and variable-rate annuities, mutual funds and governmental and municipal bonds through BB&T Investment Services, Inc. Financial Services includes BB&T Securities, a full-service brokerage and investment banking firm that provides services in retail brokerage, equity and debt underwriting and investment advice and facilitates the origination, trading and distribution of fixed-income securities and equity products in both the public and private capital markets. BB&T Securities also has a public finance department that provides investment banking services, financial advisory services and municipal bond financing to a variety of regional taxable and tax-exempt issuers. Financial Services includes a group of consolidated SBIC private equity and mezzanine investment funds that invest in privately owned middle-market operating companies to facilitate growth or ownership transition. Financial Services also includes the Corporate Banking Division that originates and services large corporate relationships, syndicated lending relationships and client derivatives. Community Banking receives an interoffice credit for referral fees, with the corresponding charge retained as part of Other, Treasury & Corporate in the accompanying tables. Also captured within the net intersegment interest income for Financial Services is the NIM for the loans and deposits associated with client relationships assigned to the Wealth Division that are housed in the Community Bank. Other, Treasury & Corporate Other, Treasury & Corporate is the combination of the Other segment that represents operating entities that do not meet the quantitative or qualitative thresholds for disclosure; BB&T’s Treasury function, which is responsible for the management of the securities portfolios, overall balance sheet funding and liquidity, and overall management of interest rate risk; the corporate support functions that have not been allocated to the business segments; certain merger-related charges or credits that are incurred as part of the acquisition and conversion of acquired entities; certain charges that are considered to be unusual in nature and not reflective of the normal operations of the segments; and intercompany eliminations including intersegment net referral fees and net intersegment interest income (expense). The investment balances and results related to affordable housing investments are included in the Other, Treasury & Corporate segment. PCI loans from the Colonial acquisition and related net interest income are also included in this segment. Performance results of bank acquisitions prior to system conversion are typically reported in this segment and on a post-conversion date are reported in the Community Banking segment and other segments as applicable. Three Months Ended September 30, Community Banking Residential Mortgage Banking Dealer Financial Services Specialized Lending (Dollars in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Net interest income (expense) $ 647 $ 570 $ 332 $ 359 $ 242 $ 229 $ 189 $ 177 Net intersegment interest income (expense) 409 411 (209 ) (215 ) (46 ) (39 ) (81 ) (68 ) Segment net interest income 1,056 981 123 144 196 190 108 109 Allocated provision for credit losses 23 (3 ) 2 9 78 76 15 18 Segment net interest income after provision 1,033 984 121 135 118 114 93 91 Noninterest income 373 360 86 117 — 1 71 80 Noninterest expense 789 803 100 40 57 50 94 92 Income (loss) before income taxes 617 541 107 212 61 65 70 79 Provision (benefit) for income taxes 221 197 40 80 23 25 16 19 Segment net income (loss) $ 396 $ 344 $ 67 $ 132 $ 38 $ 40 $ 54 $ 60 Identifiable assets (period end) $ 74,493 $ 73,125 $ 33,213 $ 36,652 $ 15,239 $ 15,090 $ 18,854 $ 17,823 Insurance Holdings Financial Services Other, Treasury & Corporate (1) Total BB&T Corporation 2017 2016 2017 2016 2017 2016 2017 2016 Net interest income (expense) $ 1 $ 1 $ 81 $ 65 $ 155 $ 209 $ 1,647 $ 1,610 Net intersegment interest income (expense) — (1 ) 80 91 (153 ) (179 ) — — Segment net interest income 1 — 161 156 2 30 1,647 1,610 Allocated provision for credit losses — — 7 32 1 16 126 148 Segment net interest income after provision 1 — 154 124 1 14 1,521 1,462 Noninterest income 399 412 251 235 (14 ) (41 ) 1,166 1,164 Noninterest expense 378 375 237 230 90 121 1,745 1,711 Income (loss) before income taxes 22 37 168 129 (103 ) (148 ) 942 915 Provision (benefit) for income taxes 9 16 62 48 (77 ) (112 ) 294 273 Segment net income (loss) $ 13 $ 21 $ 106 $ 81 $ (26 ) $ (36 ) $ 648 $ 642 Identifiable assets (period end) $ 3,360 $ 3,342 $ 18,774 $ 17,570 $ 56,407 $ 59,020 $ 220,340 $ 222,622 Nine Months Ended September 30, Community Banking Residential Mortgage Banking Dealer Financial Services Specialized Lending (Dollars in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Net interest income (expense) $ 1,852 $ 1,631 $ 996 $ 1,045 $ 727 $ 684 $ 545 $ 517 Net intersegment interest income (expense) 1,236 1,210 (633 ) (646 ) (137 ) (118 ) (230 ) (201 ) Segment net interest income 3,088 2,841 363 399 590 566 315 316 Allocated provision for credit losses 111 10 17 31 254 210 43 51 Segment net interest income after provision 2,977 2,831 346 368 336 356 272 265 Noninterest income 1,104 1,027 234 272 — 2 210 212 Noninterest expense 2,398 2,356 314 259 169 143 278 259 Income (loss) before income taxes 1,683 1,502 266 381 167 215 204 218 Provision (benefit) for income taxes 602 547 99 144 62 82 45 50 Segment net income (loss) $ 1,081 $ 955 $ 167 $ 237 $ 105 $ 133 $ 159 $ 168 Identifiable assets (period end) $ 74,493 $ 73,125 $ 33,213 $ 36,652 $ 15,239 $ 15,090 $ 18,854 $ 17,823 Insurance Holdings Financial Services Other, Treasury & Corporate (1) Total BB&T Corporation 2017 2016 2017 2016 2017 2016 2017 2016 Net interest income (expense) $ 2 $ 2 $ 222 $ 196 $ 547 $ 681 $ 4,891 $ 4,756 Net intersegment interest income (expense) 1 (4 ) 263 256 (500 ) (497 ) — — Segment net interest income 3 (2 ) 485 452 47 184 4,891 4,756 Allocated provision for credit losses — — (9 ) 128 (7 ) 13 409 443 Segment net interest income after provision 3 (2 ) 494 324 54 171 4,482 4,313 Noninterest income 1,344 1,298 711 654 (46 ) (155 ) 3,557 3,310 Noninterest expense 1,163 1,109 709 677 558 250 5,589 5,053 Income (loss) before income taxes 184 187 496 301 (550 ) (234 ) 2,450 2,570 Provision (benefit) for income taxes 70 72 183 113 (359 ) (237 ) 702 771 Segment net income (loss) $ 114 $ 115 $ 313 $ 188 $ (191 ) $ 3 $ 1,748 $ 1,799 Identifiable assets (period end) $ 3,360 $ 3,342 $ 18,774 $ 17,570 $ 56,407 $ 59,020 $ 220,340 $ 222,622 ) Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications The Consolidated Statement of Cash Flows for the nine months ended September 30, 2016 has been revised to correct errors in the classification of certain transactions related to other assets and other liabilities and were not material to prior consolidated financial statements. The revisions, which had no effect on the net change in cash and cash equivalents, increased cash from operating activities $337 million and decreased cash from investing activities and financing activities $221 million and $116 million , respectively. Certain amounts reported in prior periods' consolidated financial statements have been reclassified to conform to the current presentation. Such reclassifications had no effect on previously reported cash flows, shareholders' equity or net income. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements 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 and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL, determination of fair value for financial instruments, valuation of MSRs, goodwill, intangible assets and other purchase accounting related adjustments, benefit plan obligations and expenses, and tax assets, liabilities and expense. |
Changes in Accounting Principles and Effects of New Accounting Pronouncements | Changes in Accounting Principles and Effects of New Accounting Pronouncements Standards Adopted During Current Period - BB&T adopted the following guidance effective January 1, 2017, none of which were material to the consolidated financial statements: Stock Compensation - eliminated the concept of additional paid-in capital pools for equity-based awards and requires that the related excess tax benefits and tax deficiencies be recognized in earnings and classified as an operating activity in the statement of cash flows. The excess tax benefit for equity-based awards that vested or were exercised during the first quarter of 2017 was $35 million . The guidance also allows entities to make a one-time policy election to account for forfeitures when they occur, which BB&T has elected to do. Additionally, to retain equity classification, the guidance permits tax withholding up to the maximum statutory tax rate instead of the minimum statutory tax rate. Cash paid in lieu of shares for tax withholding purposes is classified as a financing activity in the Statement of Cash Flows. Investments - eliminated the requirement to retroactively adjust the financial statements when a change in ownership or influence causes an existing investment to qualify for the equity method of accounting. The guidance also requires the investor to add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Derivatives and Hedging - clarified that an exercise contingency does not need to be evaluated to determine whether it relates to interest rates and credit risk in an embedded derivative analysis. An entity performing the assessment will be required to assess the embedded call or put options solely in accordance with the pre-existing decision sequence. Business Combinations - provided clarification on the definition of a business and criteria to aid in the assessment of whether an integrated set of assets and activities constitutes a business. Premium Amortization on Purchased Callable Debt Securities - shortened the amortization period for the premium to the earliest call date. The amortization period for securities purchased at a discount was unaffected. Standards Not Yet Adopted - the adoption of the following guidance is not expected to be material to the consolidated financial statements unless otherwise specified: Statement of Cash Flows - requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this guidance will only affect the Consolidated Statements of Cash Flows. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Statement of Cash Flows - clarifies the classification within the statement of cash flows for certain transactions, including debt extinguishment costs, zero-coupon debt, contingent consideration related to business combinations, insurance proceeds, equity method distributions and beneficial interests in securitizations. The guidance also clarifies that cash flows with aspects of multiple classes of cash flows or that cannot be separated by source or use should be classified based on the activity that is likely to be the predominant source or use of cash flows for the item. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Liabilities - requires companies to recognize breakage on prepaid stored-value products in accordance with the recently issued guidance on Revenue from Contracts with Customers . This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Revenue from Contracts with Customers - requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance does not have an impact on the components of the Consolidated Statement of Income most closely associated with financial instruments, including securities gains/losses and interest income. BB&T's evaluation of the impact of changes for in-scope items within noninterest income has not identified material changes. The Company continues to evaluate the related changes to disclosures that may be required. The guidance is effective for interim and annual reporting periods beginning after December 15, 2017, and will be adopted using the modified retrospective approach. Financial Instruments - requires the majority of equity investments to be measured at fair value with changes in fair value recognized in net income, excluding equity investments that are consolidated or accounted for under the equity method of accounting. The new guidance allows equity investments without readily determinable fair values to be measured at cost minus impairment, with a qualitative assessment required to identify impairment. For financial instruments recorded at amortized cost, the new guidance requires public companies to disclose all fair values using an exit price and eliminates the disclosure requirements related to measurement assumptions. The new guidance also requires separate presentation of financial assets and liabilities based on form and measurement category. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Leases - requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet. The new guidance also requires additional disclosures by lessees and contains targeted changes to accounting by lessors. Upon adoption, the Company expects assets and liabilities will likely be significantly higher; however, the Company's implementation efforts are on-going, including the installation of a software solution, which will aid in determining the magnitude of the increases and its impact on the Consolidated Financial Statements. This guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Credit Losses - replaces the incurred loss impairment methodology in current GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit deteriorated loans will receive an allowance account for expected credit losses at the acquisition date that represents a component of the purchase price allocation. For AFS debt securities where the fair value is less than cost, any credit impairment will be recorded through an allowance for expected credit losses. Upon adoption, the Company expects that the ACL will likely be materially higher; however, the Company is still in the process of determining the magnitude of the increase and its impact on the Consolidated Financial Statements. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Intangibles—Goodwill and Other - simplifies the measurement of goodwill impairment. An entity will no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. This guidance is effective for impairment tests in fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - requires that the service cost component of net benefit costs of pension and postretirement benefit plans be reported in the same line item as other compensation costs in the Consolidated Statements of Income. The other components of net benefit cost will be required to be presented in a separate line item. The guidance also specifies that only the service cost component will be eligible for capitalization. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Derivatives and Hedging - expands the risk management activities that qualify for hedge accounting, and simplifies certain hedge documentation and assessment requirements. Additionally, the guidance eliminates the concept of separately recording hedge ineffectiveness, and expands disclosure requirements of the impact of hedging relationships. This guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of AFS Securities | The following tables present the amortized cost, gross unrealized gains and losses, and fair values of AFS and HTM securities: September 30, 2017 Amortized Cost Gross Unrealized Fair Value (Dollars in millions) Gains Losses AFS securities: U.S. Treasury $ 2,170 $ — $ 59 $ 2,111 GSE 188 — 6 182 Agency MBS 19,096 7 427 18,676 States and political subdivisions 1,586 46 33 1,599 Non-agency MBS 402 206 — 608 Other 8 — — 8 Total AFS securities $ 23,450 $ 259 $ 525 $ 23,184 HTM securities: U.S. Treasury $ 1,098 $ 18 $ — $ 1,116 GSE 2,197 16 13 2,200 Agency MBS 20,073 62 140 19,995 States and political subdivisions 34 — — 34 Other 45 2 — 47 Total HTM securities $ 23,447 $ 98 $ 153 $ 23,392 December 31, 2016 Amortized Cost Gross Unrealized Fair Value (Dollars in millions) Gains Losses AFS securities: U.S. Treasury $ 2,669 $ 2 $ 84 $ 2,587 GSE 190 — 10 180 Agency MBS 21,819 13 568 21,264 States and political subdivisions 2,198 56 49 2,205 Non-agency MBS 446 233 — 679 Other 11 — — 11 Total AFS securities $ 27,333 $ 304 $ 711 $ 26,926 HTM securities: U.S. Treasury $ 1,098 $ 20 $ — $ 1,118 GSE 2,197 14 30 2,181 Agency MBS 13,225 40 180 13,085 States and political subdivisions 110 — — 110 Other 50 2 — 52 Total HTM securities $ 16,680 $ 76 $ 210 $ 16,546 |
Summary of HTM Securities | The following tables present the amortized cost, gross unrealized gains and losses, and fair values of AFS and HTM securities: September 30, 2017 Amortized Cost Gross Unrealized Fair Value (Dollars in millions) Gains Losses AFS securities: U.S. Treasury $ 2,170 $ — $ 59 $ 2,111 GSE 188 — 6 182 Agency MBS 19,096 7 427 18,676 States and political subdivisions 1,586 46 33 1,599 Non-agency MBS 402 206 — 608 Other 8 — — 8 Total AFS securities $ 23,450 $ 259 $ 525 $ 23,184 HTM securities: U.S. Treasury $ 1,098 $ 18 $ — $ 1,116 GSE 2,197 16 13 2,200 Agency MBS 20,073 62 140 19,995 States and political subdivisions 34 — — 34 Other 45 2 — 47 Total HTM securities $ 23,447 $ 98 $ 153 $ 23,392 December 31, 2016 Amortized Cost Gross Unrealized Fair Value (Dollars in millions) Gains Losses AFS securities: U.S. Treasury $ 2,669 $ 2 $ 84 $ 2,587 GSE 190 — 10 180 Agency MBS 21,819 13 568 21,264 States and political subdivisions 2,198 56 49 2,205 Non-agency MBS 446 233 — 679 Other 11 — — 11 Total AFS securities $ 27,333 $ 304 $ 711 $ 26,926 HTM securities: U.S. Treasury $ 1,098 $ 20 $ — $ 1,118 GSE 2,197 14 30 2,181 Agency MBS 13,225 40 180 13,085 States and political subdivisions 110 — — 110 Other 50 2 — 52 Total HTM securities $ 16,680 $ 76 $ 210 $ 16,546 |
Schedule of Amortized Cost and Estimated Fair Value by Contractual Maturity | The amortized cost and estimated fair value of the securities portfolio by contractual maturity are shown in the following table. The expected life of MBS may differ from contractual maturities because borrowers have the right to prepay the underlying mortgage loans with or without prepayment penalties. September 30, 2017 AFS HTM (Dollars in millions) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 254 $ 254 $ — $ — Due after one year through five years 535 539 1,962 1,987 Due after five years through ten years 2,367 2,305 1,389 1,385 Due after ten years 20,294 20,086 20,096 20,020 Total debt securities $ 23,450 $ 23,184 $ 23,447 $ 23,392 |
Schedule of Fair Values and Gross Unrealized Losses | The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position: September 30, 2017 Less than 12 months 12 months or more Total (Dollars in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 459 $ 2 $ 1,553 $ 57 $ 2,012 $ 59 GSE 12 — 170 6 182 6 Agency MBS 8,533 118 9,481 309 18,014 427 States and political subdivisions 87 — 408 33 495 33 Total $ 9,091 $ 120 $ 11,612 $ 405 $ 20,703 $ 525 HTM securities: GSE $ 1,185 $ 9 $ 146 $ 4 $ 1,331 $ 13 Agency MBS 9,178 76 1,736 64 10,914 140 Total $ 10,363 $ 85 $ 1,882 $ 68 $ 12,245 $ 153 December 31, 2016 Less than 12 months 12 months or more Total (Dollars in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 2,014 $ 84 $ — $ — $ 2,014 $ 84 GSE 180 10 — — 180 10 Agency MBS 14,842 342 5,138 226 19,980 568 States and political subdivisions 365 7 314 42 679 49 Total $ 17,401 $ 443 $ 5,452 $ 268 $ 22,853 $ 711 HTM securities: GSE $ 1,762 $ 30 $ — $ — $ 1,762 $ 30 Agency MBS 7,717 178 305 2 8,022 180 Total $ 9,479 $ 208 $ 305 $ 2 $ 9,784 $ 210 |
Loans and ACL (Tables)
Loans and ACL (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Aging Analysis of Past Due Loans and Leases | The following tables present loans and leases HFI by aging category: September 30, 2017 Accruing (Dollars in millions) Current 30-89 Days Past Due 90 Days Or More Past Due Nonaccrual Total Commercial: Commercial and industrial $ 51,666 $ 30 $ — $ 281 $ 51,977 CRE-income producing properties 14,862 7 — 31 14,900 CRE-construction and development 4,490 1 — 10 4,501 Dealer floor plan 1,607 — — — 1,607 Other lending subsidiaries 8,281 17 — 9 8,307 Retail: Direct retail lending 11,813 55 9 64 11,941 Revolving credit 2,664 22 11 — 2,697 Residential mortgage-nonguaranteed 27,261 320 43 136 27,760 Residential mortgage-government guaranteed 391 135 366 5 897 Sales finance 9,380 66 6 5 9,457 Other lending subsidiaries 7,681 293 — 65 8,039 PCI 600 41 70 — 711 Total $ 140,696 $ 987 $ 505 $ 606 $ 142,794 December 31, 2016 Accruing (Dollars in millions) Current 30-89 Days Past Due 90 Days Or More Past Due Nonaccrual Total Commercial: Commercial and industrial $ 51,329 $ 27 $ — $ 363 $ 51,719 CRE-income producing properties 14,492 6 — 40 14,538 CRE-construction and development 3,800 2 — 17 3,819 Dealer floor plan 1,413 — — — 1,413 Other lending subsidiaries 7,660 21 — 10 7,691 Retail: Direct retail lending 11,963 60 6 63 12,092 Revolving credit 2,620 23 12 — 2,655 Residential mortgage-nonguaranteed 28,378 393 79 172 29,022 Residential mortgage-government guaranteed 324 132 443 — 899 Sales finance 11,179 76 6 6 11,267 Other lending subsidiaries 6,931 301 — 65 7,297 PCI 784 36 90 — 910 Total $ 140,873 $ 1,077 $ 636 $ 736 $ 143,322 |
Schedule of Carrying Amounts by Risk Rating | The following tables present the carrying amount of loans by risk rating. PCI loans are excluded because their related ALLL is determined by loan pool performance: September 30, 2017 (Dollars in millions) Commercial & Industrial CRE - Income Producing Properties CRE - Construction & Development Dealer Floor Plan Other Lending Subsidiaries Commercial: Pass $ 50,352 $ 14,561 $ 4,408 $ 1,598 $ 8,212 Special mention 395 63 44 — 17 Substandard-performing 949 245 39 9 69 Nonperforming 281 31 10 — 9 Total $ 51,977 $ 14,900 $ 4,501 $ 1,607 $ 8,307 Direct Retail Lending Revolving Credit Residential Mortgage Sales Finance Other Lending Subsidiaries Retail: Performing $ 11,877 $ 2,697 $ 28,516 $ 9,452 $ 7,974 Nonperforming 64 — 141 5 65 Total $ 11,941 $ 2,697 $ 28,657 $ 9,457 $ 8,039 December 31, 2016 (Dollars in millions) Commercial & Industrial CRE - Income Producing Properties CRE - Construction & Development Dealer Floor Plan Other Lending Subsidiaries Commercial: Pass $ 49,921 $ 14,061 $ 3,718 $ 1,404 $ 7,604 Special mention 314 124 38 — 33 Substandard-performing 1,121 313 46 9 44 Nonperforming 363 40 17 — 10 Total $ 51,719 $ 14,538 $ 3,819 $ 1,413 $ 7,691 Direct Retail Lending Revolving Credit Residential Mortgage Sales Finance Other Lending Subsidiaries Retail: Performing $ 12,029 $ 2,655 $ 29,749 $ 11,261 $ 7,232 Nonperforming 63 — 172 6 65 Total $ 12,092 $ 2,655 $ 29,921 $ 11,267 $ 7,297 |
Summary of Allowance for Credit Losses | The following tables present activity in the ACL for the periods presented: Three Months Ended September 30, 2017 (Dollars in millions) Beginning Balance Charge-Offs Recoveries Provision (Benefit) Ending Balance Commercial: Commercial and industrial $ 479 $ (10 ) $ 7 $ 3 $ 479 CRE-income producing properties 140 (2 ) 1 — 139 CRE-construction and development 23 (2 ) 2 (1 ) 22 Dealer floor plan 12 — — 1 13 Other lending subsidiaries 36 (5 ) 2 6 39 Retail: Direct retail lending 100 (16 ) 6 11 101 Revolving credit 101 (17 ) 4 13 101 Residential mortgage-nonguaranteed 173 (6 ) — 5 172 Residential mortgage-government guaranteed 38 (1 ) — (2 ) 35 Sales finance 39 (8 ) 3 3 37 Other lending subsidiaries 314 (95 ) 11 83 313 PCI 30 (1 ) — (2 ) 27 ALLL 1,485 (163 ) 36 120 1,478 RUFC 117 — — 6 123 ACL $ 1,602 $ (163 ) $ 36 $ 126 $ 1,601 Three Months Ended September 30, 2016 (Dollars in millions) Beginning Balance Charge-Offs Recoveries Provision (Benefit) Ending Balance Commercial: Commercial and industrial $ 519 $ (23 ) $ 6 $ 21 $ 523 CRE-income producing properties 116 (5 ) 3 (2 ) 112 CRE-construction and development 28 (1 ) 3 (3 ) 27 Dealer floor plan 10 — — — 10 Other lending subsidiaries 27 (5 ) 1 5 28 Retail: Direct retail lending 105 (12 ) 7 3 103 Revolving credit 98 (18 ) 5 14 99 Residential mortgage-nonguaranteed 194 (11 ) 1 — 184 Residential mortgage-government guaranteed 30 (2 ) — 9 37 Sales finance 36 (7 ) 3 4 36 Other lending subsidiaries 279 (86 ) 11 85 289 PCI 65 — — (2 ) 63 ALLL 1,507 (170 ) 40 134 1,511 RUFC 96 — — 14 110 ACL $ 1,603 $ (170 ) $ 40 $ 148 $ 1,621 Nine Months Ended September 30, 2017 (Dollars in millions) Beginning Balance Charge-Offs Recoveries Provision (Benefit) Ending Balance Commercial: Commercial and industrial $ 500 $ (60 ) $ 21 $ 18 $ 479 CRE-income producing properties 117 (6 ) 5 23 139 CRE-construction and development 25 (2 ) 7 (8 ) 22 Dealer floor plan 11 (1 ) — 3 13 Other lending subsidiaries 29 (15 ) 4 21 39 Retail: Direct retail lending 103 (46 ) 19 25 101 Revolving credit 106 (57 ) 14 38 101 Residential mortgage-nonguaranteed 186 (36 ) 1 21 172 Residential mortgage-government guaranteed 41 (3 ) — (3 ) 35 Sales finance 38 (23 ) 10 12 37 Other lending subsidiaries 289 (275 ) 37 262 313 PCI 44 (1 ) — (16 ) 27 ALLL 1,489 (525 ) 118 396 1,478 RUFC 110 — — 13 123 ACL $ 1,599 $ (525 ) $ 118 $ 409 $ 1,601 Nine Months Ended September 30, 2016 (Dollars in millions) Beginning Balance Charge-Offs Recoveries Provision (Benefit) Acquisition Ending Balance Commercial: Commercial and industrial $ 466 $ (105 ) $ 30 $ 132 $ — $ 523 CRE-income producing properties 135 (7 ) 7 (23 ) — 112 CRE-construction and development 37 (1 ) 9 (18 ) — 27 Dealer floor plan 8 — — 2 — 10 Other lending subsidiaries 22 (17 ) 5 18 — 28 Retail: Direct retail lending 105 (37 ) 20 15 — 103 Revolving credit 104 (53 ) 15 33 — 99 Residential mortgage-nonguaranteed 194 (26 ) 3 13 — 184 Residential mortgage-government guaranteed 23 (4 ) — 18 — 37 Sales finance 40 (21 ) 9 8 — 36 Other lending subsidiaries 265 (239 ) 31 232 — 289 PCI 61 — — 2 — 63 ALLL 1,460 (510 ) 129 432 — 1,511 RUFC 90 — — 11 9 110 ACL $ 1,550 $ (510 ) $ 129 $ 443 $ 9 $ 1,621 |
Summary Of Loans Collectively Evaluated For Impairment | The following table provides a summary of loans that are collectively evaluated for impairment: September 30, 2017 December 31, 2016 (Dollars in millions) Recorded Investment Related ALLL Recorded Investment Related ALLL Commercial: Commercial and industrial $ 51,594 $ 451 $ 51,253 $ 463 CRE-income producing properties 14,831 134 14,455 112 CRE-construction and development 4,479 20 3,787 21 Dealer floor plan 1,607 13 1,413 11 Other lending subsidiaries 8,295 38 7,678 28 Retail: Direct retail lending 11,864 93 12,011 93 Revolving credit 2,668 89 2,626 95 Residential mortgage-nonguaranteed 27,316 137 28,488 136 Residential mortgage-government guaranteed 515 7 466 8 Sales finance 9,443 36 11,251 37 Other lending subsidiaries 7,767 264 7,057 249 PCI 711 27 910 44 Total $ 141,090 $ 1,309 $ 141,395 $ 1,297 |
Schedule of Information Regarding Impaired Loans | The following tables set forth certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for impairment: Nine Months Ended September 30, 2017 Recorded Investment UPB Related ALLL Average Recorded Investment Interest Income Recognized (Dollars in millions) With no related ALLL recorded: Commercial: Commercial and industrial $ 180 $ 207 $ — $ 193 $ — CRE-income producing properties 17 20 — 26 — CRE-construction and development 7 8 — 11 — Dealer floor plan — — — 3 — Other lending subsidiaries 3 5 — 3 — Retail: Direct retail lending 21 45 — 16 1 Residential mortgage-nonguaranteed 119 162 — 104 3 Residential mortgage-government guaranteed 4 4 — 3 — Sales finance 1 2 — 1 — Other lending subsidiaries 4 10 — 4 — With an ALLL recorded: Commercial: Commercial and industrial 203 204 28 236 4 CRE-income producing properties 52 53 5 56 1 CRE-construction and development 15 15 2 19 — Dealer floor plan — — — — — Other lending subsidiaries 9 9 1 7 — Retail: Direct retail lending 56 57 8 63 3 Revolving credit 29 29 12 29 1 Residential mortgage-nonguaranteed 325 332 35 407 13 Residential mortgage-government guaranteed 378 379 28 405 12 Sales finance 13 13 1 14 — Other lending subsidiaries 268 269 49 243 29 Total $ 1,704 $ 1,823 $ 169 $ 1,843 $ 67 As of / For The Year Ended December 31, 2016 Recorded Investment UPB Related ALLL Average Recorded Investment Interest Income Recognized (Dollars in millions) With no related ALLL recorded: Commercial: Commercial and industrial $ 201 $ 225 $ — $ 217 $ 1 CRE-income producing properties 25 27 — 16 — CRE-construction and development 10 11 — 8 — Dealer floor plan — — — — — Other lending subsidiaries 4 6 — 6 — Retail: Direct retail lending 13 38 — 12 1 Residential mortgage-nonguaranteed 94 141 — 97 4 Residential mortgage-government guaranteed 3 3 — 3 — Sales finance 1 2 — 1 — Other lending subsidiaries 4 9 — 4 — With an ALLL recorded: Commercial: Commercial and industrial 265 269 37 259 5 CRE-income producing properties 58 61 5 68 2 CRE-construction and development 22 22 4 22 1 Dealer floor plan — — — — — Other lending subsidiaries 9 9 1 5 — Retail: Direct retail lending 68 69 10 71 4 Revolving credit 29 29 11 31 1 Residential mortgage-nonguaranteed 440 451 50 383 16 Residential mortgage-government guaranteed 430 431 33 360 14 Sales finance 15 15 1 16 1 Other lending subsidiaries 236 239 40 206 32 Total $ 1,927 $ 2,057 $ 192 $ 1,785 $ 82 |
Schedule of Performing and Nonperforming TDRs | The following table presents a summary of TDRs, including trial modifications, all of which are considered impaired: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Performing TDRs: Commercial: Commercial and industrial $ 60 $ 55 CRE-income producing properties 13 16 CRE-construction and development 9 9 Retail: Direct retail lending 63 67 Revolving credit 29 29 Residential mortgage-nonguaranteed 229 336 Residential mortgage-government guaranteed 380 433 Sales finance 13 16 Other lending subsidiaries 256 226 Total performing TDRs 1,052 1,187 Nonperforming TDRs (also included in NPL disclosures) 203 184 Total TDRs $ 1,255 $ 1,371 ALLL attributable to TDRs $ 140 $ 146 |
Summary Of Reason For Classification As TDRs | The following table summarizes the primary reason loan modifications were classified as TDRs and includes newly designated TDRs as well as modifications made to existing TDRs. Balances represent the recorded investment at the end of the quarter in which the modification was made. Rate modifications include TDRs made with below market interest rates that also include modifications of loan structures. Three Months Ended September 30, 2017 2016 Types of Modifications Impact To ALLL Types of Modifications Impact To ALLL (Dollars in millions) Rate Structure Rate Structure Newly Designated TDRs: Commercial: Commercial and industrial $ 17 $ 36 $ 1 $ 8 $ 23 $ 1 CRE-income producing properties — 4 — — 1 — CRE-construction and development — 1 — — 3 — Retail: Direct retail lending 2 1 — 5 — — Revolving credit 5 — 1 4 — 1 Residential mortgage-nonguaranteed 25 17 2 30 22 2 Residential mortgage-government guaranteed 54 — 3 118 — 7 Sales finance — 1 — — 2 — Other lending subsidiaries 62 — 8 44 — 6 Re-modification of Previously Designated TDRs 63 4 — 19 16 — Nine Months Ended September 30, 2017 2016 Types of Modifications Impact To ALLL Types of Modifications Impact To ALLL (Dollars in millions) Rate Structure Rate Structure Newly Designated TDRs: Commercial: Commercial and industrial $ 72 $ 92 $ 3 $ 99 $ 39 $ 3 CRE-income producing properties 6 8 — 4 8 — CRE-construction and development 8 2 1 1 4 — Retail: Direct retail lending 7 3 — 10 1 — Revolving credit 14 — 3 13 — 3 Residential mortgage-nonguaranteed 119 29 12 65 36 5 Residential mortgage-government guaranteed 170 — 9 217 — 12 Sales finance — 5 — — 5 — Other lending subsidiaries 140 — 16 118 — 16 Re-Modification of Previously Designated TDRs 148 26 — 48 26 — |
Schedule of Changes in Accretable Yield of PCI Loans | Information about PCI loans is presented in the following table: Nine Months Ended September 30, 2017 Year Ended December 31, 2016 (Dollars in millions) Purchased Impaired Purchased Nonimpaired Purchased Impaired Purchased Nonimpaired Accretable yield at beginning of period $ 253 $ 155 $ 189 $ 176 Additions — — 36 — Accretion (67 ) (44 ) (134 ) (73 ) Other, net 25 30 162 52 Accretable yield at end of period $ 211 $ 141 $ 253 $ 155 Carrying value at end of period $ 464 $ 247 $ 614 $ 296 Outstanding UPB at end of period 719 343 910 423 |
Selected Information About Loans and Leases | The following table presents additional information about loans and leases: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Unearned income, discounts and net deferred loan fees and costs, excluding PCI $ 143 $ 265 Residential mortgage loans in process of foreclosure 305 366 |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amounts of Goodwill Attributable to Operating Segments | The changes in the carrying amount of goodwill attributable to operating segments are reflected in the table below: (Dollars in millions) Community Banking Residential Mortgage Banking Dealer Financial Services Specialized Lending Insurance Holdings Financial Services Total Goodwill, January 1, 2017 $ 7,032 $ 416 $ 111 $ 113 $ 1,752 $ 214 $ 9,638 Adjustments (12 ) 6 — (9 ) (5 ) — (20 ) Goodwill, September 30, 2017 $ 7,020 $ 422 $ 111 $ 104 $ 1,747 $ 214 $ 9,618 |
Identifiable Intangible Assets Subject to Amortization | The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets: September 30, 2017 December 31, 2016 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount CDI $ 825 $ (614 ) $ 211 $ 825 $ (565 ) $ 260 Other, primarily customer relationship intangibles 1,246 (712 ) 534 1,249 (655 ) 594 Total $ 2,071 $ (1,326 ) $ 745 $ 2,074 $ (1,220 ) $ 854 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Summary of Residential Mortgage Banking Activities | The following tables summarize residential mortgage banking activities: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 UPB of residential mortgage and home equity loan servicing portfolio $ 118,736 $ 121,639 UPB of residential mortgage loans serviced for others (primarily agency conforming fixed rate) 89,391 90,325 Mortgage loans sold with recourse 514 578 Maximum recourse exposure from mortgage loans sold with recourse liability 261 282 Indemnification, recourse and repurchase reserves 39 40 |
Loan Servicing Activity and Data | As of / For The (Dollars in millions) 2017 2016 UPB of residential mortgage loans sold from LHFS $ 9,478 $ 11,098 Pre-tax gains recognized on mortgage loans sold and held for sale 114 105 Servicing fees recognized from mortgage loans serviced for others 197 201 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others 0.28 % 0.28 % Weighted average interest rate on mortgage loans serviced for others 4.00 4.06 |
Analysis of Activity in Residential MSRs | Nine Months Ended September 30, (Dollars in millions) 2017 2016 Residential MSRs, carrying value, beginning of period $ 915 $ 880 Additions 93 99 Change in fair value due to changes in valuation inputs or assumptions: Prepayment speeds (56 ) (180 ) OAS 47 9 Servicing costs 9 2 Realization of expected net servicing cash flows, passage of time and other (104 ) (103 ) Residential MSRs, carrying value, end of period $ 904 $ 707 Gains (losses) on derivative financial instruments used to mitigate the income statement effect of changes in residential MSR fair value $ 12 $ 224 |
Residential MSRs Sensitivity | The sensitivity of the fair value of the residential MSRs to changes in key assumptions is included in the accompanying table: September 30, 2017 December 31, 2016 Range Weighted Range Weighted (Dollars in millions) Min Max Min Max Prepayment speed 7.6 % 10.2 % 9.3 % 7.5 % 8.4 % 8.1 % Effect on fair value of a 10% increase $ (32 ) $ (28 ) Effect on fair value of a 20% increase (62 ) (54 ) OAS 8.4 % 8.9 % 8.5 % 9.8 % 10.2 % 10.0 % Effect on fair value of a 10% increase $ (28 ) $ (33 ) Effect on fair value of a 20% increase (54 ) (64 ) Composition of loans serviced for others: Fixed-rate residential mortgage loans 99.1 % 99.1 % Adjustable-rate residential mortgage loans 0.9 0.9 Total 100.0 % 100.0 % Weighted average life 6.4 years 7.0 years |
Summary of Commercial Mortgage Banking Activities | The following table summarizes commercial mortgage banking activities for the periods presented: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 UPB of CRE mortgages serviced for others $ 28,122 $ 29,333 CRE mortgages serviced for others covered by recourse provisions 4,307 4,240 Maximum recourse exposure from CRE mortgages sold with recourse liability 1,244 1,272 Recorded reserves related to recourse exposure 6 7 CRE mortgages originated during the year-to-date period 4,969 7,145 Commercial MSRs at fair value 140 137 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Deposits [Abstract] | |
Summary of Deposits | A summary of deposits is presented in the accompanying table: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Noninterest-bearing deposits $ 54,049 $ 50,697 Interest checking 26,575 30,263 Money market and savings 60,904 64,883 Time deposits 14,607 14,391 Total deposits $ 156,135 $ 160,234 Time deposits $100,000 and greater $ 6,542 $ 5,394 Time deposits $250,000 and greater 3,831 2,179 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The following table presents a summary of long-term debt: Sep 30, 2017 Dec 31, 2016 Stated Rate Effective Rate Carrying Carrying (Dollars in millions) Maturity Min Max Amount Amount BB&T Corporation Fixed rate senior notes 2018 to 2024 1.45 % 6.85 % 2.63 % $ 7,079 $ 7,600 Floating rate senior notes 2018 2022 1.89 2.18 2.03 2,247 1,898 Fixed rate subordinated notes 2019 2022 3.95 5.25 1.71 946 1,338 Branch Bank Fixed rate senior notes 2018 2022 1.45 2.85 2.36 4,930 4,209 Floating rate senior notes 2019 2020 1.75 1.84 1.84 849 250 Fixed rate subordinated notes 2025 2026 3.63 3.80 3.43 2,142 2,138 Floating rate subordinated notes — — — — 262 FHLB advances (1) 2017 2034 — 6.38 1.30 2,495 4,118 Other long-term debt 175 152 Total long-term debt $ 20,863 $ 21,965 (1) FHLB advances had a weighted average maturity of 4.1 years at September 30, 2017 . |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Restricted Shares and RSUs Activity Roll Forward | The activity relating to restricted shares/units during the period is presented in the following table: (Shares in thousands) Restricted Shares/Units Wtd. Avg. Grant Date Fair Value Nonvested at January 1, 2017 13,516 $ 29.39 Granted 3,909 42.88 Vested (3,832 ) 27.18 Forfeited (285 ) 33.01 Nonvested at September 30, 2017 13,308 33.92 Expected to vest at September 30, 2017 12,297 33.92 |
AOCI (Tables)
AOCI (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in AOCI | Activity within AOCI is presented in the following tables: Three Months Ended September 30, 2017 (Dollars in millions) Unrecognized Net Pension and Postretirement Costs Unrealized Net Gains (Losses) on Cash Flow Hedges Unrealized Net Gains (Losses) on AFS Securities Other, net Total AOCI balance, July 1, 2017 $ (743 ) $ (128 ) $ (187 ) $ (15 ) $ (1,073 ) OCI before reclassifications, net of tax 1 1 19 2 23 Amounts reclassified from AOCI: Before tax (1) 11 13 (2 ) — 22 Tax effect 4 5 (1 ) — 8 Amounts reclassified, net of tax 7 8 (1 ) — 14 Net change in AOCI 8 9 18 2 37 AOCI balance, September 30, 2017 $ (735 ) $ (119 ) $ (169 ) $ (13 ) $ (1,036 ) Three Months Ended September 30, 2016 (Dollars in millions) Unrecognized Net Pension and Postretirement Costs Unrealized Net Gains (Losses) on Cash Flow Hedges Unrealized Net Gains (Losses) on AFS Securities FDIC's Share of Unrealized (Gains) Losses on AFS Securities Other, net Total AOCI balance, July 1, 2016 $ (701 ) $ (247 ) $ 263 $ (137 ) $ (15 ) $ (837 ) OCI before reclassifications, net of tax (9 ) 23 (72 ) 137 — 79 Amounts reclassified from AOCI: Before tax (1) 18 (3 ) (2 ) — 1 14 Tax effect 7 (1 ) (1 ) — 1 6 Amounts reclassified, net of tax 11 (2 ) (1 ) — — 8 Net change in AOCI 2 21 (73 ) 137 — 87 AOCI balance, September 30, 2016 $ (699 ) $ (226 ) $ 190 $ — $ (15 ) $ (750 ) Nine Months Ended September 30, 2017 (Dollars in millions) Unrecognized Net Pension and Postretirement Costs Unrealized Net Gains (Losses) on Cash Flow Hedges Unrealized Net Gains (Losses) on AFS Securities Other, net Total AOCI balance, January 1, 2017 $ (764 ) $ (92 ) $ (259 ) $ (17 ) $ (1,132 ) OCI before reclassifications, net of tax — (26 ) 99 4 77 Amounts reclassified from AOCI: Before tax (1) 46 (1 ) (15 ) — 30 Tax effect 17 — (6 ) — 11 Amounts reclassified, net of tax 29 (1 ) (9 ) — 19 Net change in AOCI 29 (27 ) 90 4 96 AOCI balance, September 30, 2017 $ (735 ) $ (119 ) $ (169 ) $ (13 ) $ (1,036 ) Nine Months Ended September 30, 2016 (Dollars in millions) Unrecognized Net Pension and Postretirement Costs Unrealized Net Gains (Losses) on Cash Flow Hedges Unrealized Net Gains (Losses) on AFS Securities FDIC's Share of Unrealized (Gains) Losses on AFS Securities Other, net Total AOCI balance, January 1, 2016 $ (723 ) $ (83 ) $ (34 ) $ (169 ) $ (19 ) $ (1,028 ) OCI before reclassifications, net of tax (8 ) (154 ) 280 148 3 269 Amounts reclassified from AOCI: Before tax (1) 51 18 (90 ) 33 2 14 Tax effect 19 7 (34 ) 12 1 5 Amounts reclassified, net of tax 32 11 (56 ) 21 1 9 Net change in AOCI 24 (143 ) 224 169 4 278 AOCI balance, September 30, 2016 $ (699 ) $ (226 ) $ 190 $ — $ (15 ) $ (750 ) (1) Amounts related to unrecognized net pension and postretirement costs are included in personnel expense, amounts related to unrealized net gains (losses) on cash flow hedges are included in net interest income, amounts related to unrealized net gains (losses) on AFS securities are included in net interest income and securities gains/losses when realized, amounts related to FDIC's share of unrealized gains (losses) on AFS securities are included in FDIC loss share income, net and amounts related to other, net are primarily included in net interest income in the Consolidated Statements of Income. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Three Months Ended September 30, Qualified Plans Nonqualified Plans (Dollars in millions) 2017 2016 2017 2016 Service cost $ 45 $ 44 $ 2 $ 3 Interest cost 43 41 5 5 Estimated return on plan assets (93 ) (82 ) — — Amortization and other 14 18 4 3 Net periodic benefit cost $ 9 $ 21 $ 11 $ 11 Nine Months Ended September 30, Qualified Plans Nonqualified Plans (Dollars in millions) 2017 2016 2017 2016 Service cost $ 143 $ 130 $ 9 $ 9 Interest cost 130 122 14 14 Estimated return on plan assets (278 ) (244 ) — — Amortization and other 47 51 10 9 Net periodic benefit cost $ 42 $ 59 $ 33 $ 32 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Contingencies | (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Letters of credit $ 2,658 $ 2,786 Carrying amount of the liability for letters of credit 22 27 Investments in affordable housing and historic building rehabilitation projects: Carrying amount 2,018 1,719 Amount of future funding commitments included in carrying amount 971 738 Lending exposure 547 495 Tax credits subject to recapture 450 413 Private equity investments 426 362 Future funding commitments to private equity investments 136 197 |
Pledged Assets | The following table provides the total carrying amount of pledged assets by asset type, of which the majority are pursuant to agreements that do not permit the other party to sell or repledge the collateral. Assets related to employee benefit plans have been excluded from the following table. (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Pledged securities $ 14,457 $ 15,549 Pledged loans 74,411 75,015 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis: September 30, 2017 (Dollars in millions) Total Level 1 Level 2 Level 3 Assets: Trading securities $ 1,089 $ 346 $ 743 $ — AFS securities: U.S. Treasury 2,111 — 2,111 — GSE 182 — 182 — Agency MBS 18,676 — 18,676 — States and political subdivisions 1,599 — 1,599 — Non-agency MBS 608 — 151 457 Other 8 5 3 — Total AFS securities 23,184 5 22,722 457 LHFS 1,217 — 1,217 — MSRs 1,044 — — 1,044 Derivative assets: Interest rate contracts 523 — 515 8 Foreign exchange contracts 5 — 5 — Total derivative assets 528 — 520 8 Private equity investments 413 — — 413 Total assets $ 27,475 $ 351 $ 25,202 $ 1,922 Liabilities: Derivative liabilities: Interest rate contracts $ 725 $ 1 $ 721 $ 3 Foreign exchange contracts 6 — 6 — Total derivative liabilities 731 1 727 3 Securities sold short 82 — 82 — Total liabilities $ 813 $ 1 $ 809 $ 3 December 31, 2016 (Dollars in millions) Total Level 1 Level 2 Level 3 Assets: Trading securities $ 748 $ 324 $ 424 $ — AFS securities: U.S. Treasury 2,587 — 2,587 — GSE 180 — 180 — Agency MBS 21,264 — 21,264 — States and political subdivisions 2,205 — 2,205 — Non-agency MBS 679 — 172 507 Other 11 8 3 — Total AFS securities 26,926 8 26,411 507 LHFS 1,716 — 1,716 — MSRs 1,052 — — 1,052 Derivative assets: Interest rate contracts 814 — 807 7 Foreign exchange contracts 8 — 8 — Total derivative assets 822 — 815 7 Private equity investments 362 — — 362 Total assets $ 31,626 $ 332 $ 29,366 $ 1,928 Liabilities: Derivative liabilities: Interest rate contracts $ 998 $ — $ 978 $ 20 Foreign exchange contracts 5 — 5 — Total derivative liabilities 1,003 — 983 20 Securities sold short 137 — 137 — Total liabilities $ 1,140 $ — $ 1,120 $ 20 |
Rollforward of Level 3 Assets and Liabilities | The following tables summarize activity for Level 3 assets and liabilities: Three Months Ended September 30, 2017 (Dollars in millions) Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at July 1, 2017 $ 474 $ 1,052 $ 3 $ 394 Total realized and unrealized gains (losses): Included in earnings (1) 8 4 11 21 Included in unrealized net holding gains (losses) in OCI (7 ) — — — Purchases — — — 9 Issuances — 30 15 — Sales — — — (11 ) Settlements (18 ) (42 ) (24 ) — Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Balance at September 30, 2017 $ 457 $ 1,044 $ 5 $ 413 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2017 $ 9 $ 4 $ 5 $ 16 Three Months Ended September 30, 2016 (Dollars in millions) Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at July 1, 2016 $ 559 $ 785 $ 33 $ 353 Total realized and unrealized gains (losses): Included in earnings (1) 6 42 45 3 Included in unrealized net holding gains (losses) in OCI (5 ) — — — Purchases — — — 15 Issuances — 44 22 — Sales — — — (29 ) Settlements (21 ) (43 ) (80 ) (2 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Balance at September 30, 2016 $ 539 $ 828 $ 20 $ 340 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2016 $ 6 $ 42 $ 20 $ 1 Nine Months Ended September 30, 2017 (Dollars in millions) Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at January 1, 2017 $ 507 1,052 $ (13 ) $ 362 Total realized and unrealized gains (losses): Included in earnings (1) 31 24 30 26 Included in unrealized net holding gains (losses) in OCI (27 ) — — — Purchases — — — 84 Issuances — 93 39 — Sales — — — (41 ) Settlements (54 ) (125 ) (51 ) (5 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — (13 ) Balance at September 30, 2017 $ 457 $ 1,044 $ 5 $ 413 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2017 $ 31 $ 24 $ 5 $ 16 Nine Months Ended September 30, 2016 (Dollars in millions) Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at January 1, 2016 $ 626 $ 880 $ 4 $ 289 Total realized and unrealized gains (losses): Included in earnings (1) 38 (154 ) 101 6 Included in unrealized net holding gains (losses) in OCI (50 ) — — — Purchases — — — 89 Issuances — 100 85 — Sales — — — (37 ) Settlements (75 ) (121 ) (170 ) (7 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Adoption of fair value option for commercial MSRs — 123 — — Balance at September 30, 2016 $ 539 $ 828 $ 20 $ 340 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2016 $ 38 $ (154 ) $ 20 $ 1 (1) Amounts related to non-agency MBS are included in interest income, amounts related to MSRs and net derivatives are primarily included in mortgage banking income and amounts related to private equity investments are included in other income in the Consolidated Statements of Income. |
Fair Value and UPB of LHFS | The following table details the fair value and UPB of LHFS that were elected to be carried at fair value: September 30, 2017 December 31, 2016 (Dollars in millions) Fair Value Aggregate UPB Difference Fair Value Aggregate UPB Difference LHFS reported at fair value $ 1,217 $ 1,197 $ 20 $ 1,716 $ 1,736 $ (20 ) |
Assets Measured at Fair Value on a Nonrecurring Basis | The following table provides information about certain assets measured at fair value on a nonrecurring basis, which are primarily collateral dependent and may be subject to liquidity adjustments. The carrying values represent end of period values, which approximate the fair value measurements that occurred on the various measurement dates throughout the period. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end. These assets are considered to be Level 3 assets (excludes PCI). September 30, 2017 September 30, 2016 Valuation Adjustments Valuation Adjustments (Dollars in millions) Carrying Value Three Months Ended Nine Months Ended Carrying Value Three Months Ended Nine Months Ended Impaired loans $ 198 $ (4 ) $ (18 ) $ 314 $ (22 ) $ (76 ) Foreclosed real estate 46 (66 ) (192 ) 58 (59 ) (160 ) |
Carrying Amounts and Fair Value of Financial Assets and Liabilities Not Recorded at Fair Value | Financial assets and liabilities not recorded at fair value are summarized below: September 30, 2017 (Dollars in millions) Carrying Amount Total Fair Value Level 2 Level 3 Financial assets: HTM securities $ 23,447 $ 23,392 $ 23,392 $ — Loans and leases HFI, net of ALLL 141,316 141,258 — 141,258 Financial liabilities: Deposits 156,135 156,234 156,234 — Long-term debt 20,863 21,117 21,117 — December 31, 2016 (Dollars in millions) Carrying Amount Total Fair Value Level 2 Level 3 Financial assets: HTM securities $ 16,680 $ 16,546 $ 16,546 $ — Loans and leases HFI, net of ALLL 141,833 142,044 — 142,044 Financial liabilities: Deposits 160,234 160,403 160,403 — Long-term debt 21,965 22,423 22,423 — |
Selected Information Pertaining to Off-Balance Sheet Financial Instruments | The following is a summary of selected information pertaining to off-balance sheet financial instruments: September 30, 2017 December 31, 2016 (Dollars in millions) Notional/Contract Amount Fair Value Notional/Contract Amount Fair Value Commitments to extend, originate or purchase credit $ 67,529 $ 274 $ 64,395 $ 250 Residential mortgage loans sold with recourse 514 6 578 7 Other loans sold with recourse 4,307 6 4,240 7 Letters of credit 2,658 22 2,786 27 |
Derivative Financial Instrume37
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the notional amount and estimated fair value of derivative instruments: September 30, 2017 December 31, 2016 Hedged Item or Transaction Notional Amount Fair Value Notional Amount Fair Value (Dollars in millions) Gain Loss Gain Loss Cash flow hedges: Interest rate contracts: Pay fixed swaps 3 mo. LIBOR funding $ 6,500 $ — $ (200 ) $ 7,050 $ — $ (187 ) Fair value hedges: Interest rate contracts: Receive fixed swaps Long-term debt 12,827 157 (93 ) 12,099 202 (100 ) Options Long-term debt 5,337 — (1 ) 2,790 — (1 ) Pay fixed swaps Commercial loans 374 3 (1 ) 346 4 (2 ) Pay fixed swaps Municipal securities 231 — (81 ) 231 — (83 ) Total 18,769 160 (176 ) 15,466 206 (186 ) Not designated as hedges: Client-related and other risk management: Interest rate contracts: Receive fixed swaps 10,800 195 (37 ) 9,989 235 (44 ) Pay fixed swaps 10,930 35 (212 ) 10,263 43 (252 ) Other swaps 1,025 2 (3 ) 1,086 2 (5 ) Other 792 2 (2 ) 709 2 (2 ) Forward commitments 6,138 8 (5 ) 5,972 29 (28 ) Foreign exchange contracts 533 5 (6 ) 669 8 (5 ) Total 30,218 247 (265 ) 28,688 319 (336 ) Mortgage banking: Interest rate contracts: Interest rate lock commitments 1,528 8 (3 ) 2,219 7 (20 ) When issued securities, forward rate agreements and forward commitments 3,434 8 (3 ) 6,683 51 (14 ) Other 193 2 — 449 2 (1 ) Total 5,155 18 (6 ) 9,351 60 (35 ) MSRs: Interest rate contracts: Receive fixed swaps 4,026 48 (40 ) 5,034 18 (236 ) Pay fixed swaps 3,080 6 (38 ) 3,768 56 (7 ) Options 2,930 48 (1 ) 5,710 160 (8 ) When issued securities, forward rate agreements and forward commitments 1,776 1 (5 ) 3,210 3 (8 ) Other 30 — — — — — Total 11,842 103 (84 ) 17,722 237 (259 ) Total derivatives not designated as hedges 47,215 368 (355 ) 55,761 616 (630 ) Total derivatives $ 72,484 528 (731 ) $ 78,277 822 (1,003 ) Gross amounts not offset in the Consolidated Balance Sheets: Amounts subject to master netting arrangements not offset due to policy election (306 ) 306 (443 ) 443 Cash collateral (received) posted (40 ) 375 (119 ) 450 Net amount $ 182 $ (50 ) $ 260 $ (110 ) |
The Effect of Derivative Instruments on the Consolidated Statements of Income | The following tables present the effective portion of hedging derivative instruments on the consolidated statements of income: Three Months Ended September 30, Pre-tax Gain (Loss) Recognized in OCI Location of Amounts Reclassified from AOCI into Income Pre-tax Gain (Loss) Reclassified from AOCI into Income (Dollars in millions) 2017 2016 2017 2016 Cash flow hedges: Interest rate contracts $ 1 $ 38 Total interest expense $ (13 ) $ 3 Pre-tax Gain (Loss) Recognized in Income Location of Amounts Recognized in Income 2017 2016 Fair value hedges: Interest rate contracts Total interest income $ (3 ) $ (5 ) Interest rate contracts Total interest expense 30 58 Total $ 27 $ 53 Not designated as hedges: Client-related and other risk management: Interest rate contracts Other noninterest income $ 11 $ 15 Foreign exchange contracts Other noninterest income 5 (1 ) Mortgage banking: Interest rate contracts Mortgage banking income (3 ) 17 MSRs: Interest rate contracts Mortgage banking income 10 3 Total $ 23 $ 34 Nine Months Ended September 30, Pre-tax Gain (Loss) Recognized in OCI Location of Amounts Reclassified from AOCI into Income Pre-tax Gain (Loss) Reclassified from AOCI into Income (Dollars in millions) 2017 2016 2017 2016 Cash Flow Hedges: Interest rate contracts $ (42 ) $ (245 ) Total interest expense $ 1 $ (18 ) Pre-tax Gain (Loss) Recognized in Income Location of Amounts Recognized in Income 2017 2016 Fair Value Hedges: Interest rate contracts Total interest income $ (12 ) $ (13 ) Interest rate contracts Total interest expense 118 177 Total $ 106 $ 164 Not Designated as Hedges: Client-related and other risk management: Interest rate contracts Other noninterest income $ 38 $ 23 Foreign exchange contracts Other noninterest income — 4 Mortgage Banking: Interest rate contracts Mortgage banking income (8 ) (2 ) MSRs: Interest rate contracts Mortgage banking income 13 232 Total $ 43 $ 257 |
Deferred Gains and Losses from Hedges | The following table presents information about BB&T's cash flow and fair value hedges: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Cash flow hedges: Net unrecognized after-tax loss on active hedges recorded in AOCI $ (125 ) $ (118 ) Net unrecognized after-tax gain on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) 6 26 Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months (34 ) (4 ) Maximum time period over which BB&T has hedged a portion of the variability in future cash flows for forecasted transactions excluding those transactions relating to the payment of variable interest on existing instruments 5 years 6 years Fair value hedges: Unrecognized pre-tax net gain on terminated hedges (to be recognized as interest primarily through 2019) $ 142 $ 169 Portion of pre-tax net gain on terminated hedges to be recognized as a change in interest during the next 12 months 50 56 |
Schedule of Derivative Instruments Summary of Collateral Positions with Counterparties | The following table summarizes collateral positions with counterparties: (Dollars in millions) Sep 30, 2017 Dec 31, 2016 Dealer Counterparties: Cash collateral received from dealer counterparties $ 41 $ 123 Derivatives in a net gain position secured by that collateral 42 123 Unsecured positions in a net gain with dealer counterparties after collateral postings 2 4 Cash collateral posted to dealer counterparties 163 138 Derivatives in a net loss position secured by that collateral 163 144 Additional collateral that would have been posted had BB&T's credit ratings dropped below investment grade 1 8 Central Clearing Parties: Cash collateral, including initial margin, posted to central clearing parties 222 313 Derivatives in a net loss position secured by that collateral 213 318 Securities pledged to central clearing parties 100 119 |
Computation of EPS (Tables)
Computation of EPS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS | Basic and diluted EPS calculations are presented in the following table: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions, except per share data, shares in thousands) 2017 2016 2017 2016 Net income available to common shareholders $ 597 $ 599 $ 1,606 $ 1,667 Weighted average number of common shares 794,558 812,521 804,424 802,694 Effect of dilutive outstanding equity-based awards 11,566 10,585 11,605 9,713 Weighted average number of diluted common shares 806,124 823,106 816,029 812,407 Basic EPS $ 0.75 $ 0.74 $ 2.00 $ 2.08 Diluted EPS $ 0.74 $ 0.73 $ 1.97 $ 2.05 Anti-dilutive awards 184 5,416 222 6,088 |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended September 30, Community Banking Residential Mortgage Banking Dealer Financial Services Specialized Lending (Dollars in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Net interest income (expense) $ 647 $ 570 $ 332 $ 359 $ 242 $ 229 $ 189 $ 177 Net intersegment interest income (expense) 409 411 (209 ) (215 ) (46 ) (39 ) (81 ) (68 ) Segment net interest income 1,056 981 123 144 196 190 108 109 Allocated provision for credit losses 23 (3 ) 2 9 78 76 15 18 Segment net interest income after provision 1,033 984 121 135 118 114 93 91 Noninterest income 373 360 86 117 — 1 71 80 Noninterest expense 789 803 100 40 57 50 94 92 Income (loss) before income taxes 617 541 107 212 61 65 70 79 Provision (benefit) for income taxes 221 197 40 80 23 25 16 19 Segment net income (loss) $ 396 $ 344 $ 67 $ 132 $ 38 $ 40 $ 54 $ 60 Identifiable assets (period end) $ 74,493 $ 73,125 $ 33,213 $ 36,652 $ 15,239 $ 15,090 $ 18,854 $ 17,823 Insurance Holdings Financial Services Other, Treasury & Corporate (1) Total BB&T Corporation 2017 2016 2017 2016 2017 2016 2017 2016 Net interest income (expense) $ 1 $ 1 $ 81 $ 65 $ 155 $ 209 $ 1,647 $ 1,610 Net intersegment interest income (expense) — (1 ) 80 91 (153 ) (179 ) — — Segment net interest income 1 — 161 156 2 30 1,647 1,610 Allocated provision for credit losses — — 7 32 1 16 126 148 Segment net interest income after provision 1 — 154 124 1 14 1,521 1,462 Noninterest income 399 412 251 235 (14 ) (41 ) 1,166 1,164 Noninterest expense 378 375 237 230 90 121 1,745 1,711 Income (loss) before income taxes 22 37 168 129 (103 ) (148 ) 942 915 Provision (benefit) for income taxes 9 16 62 48 (77 ) (112 ) 294 273 Segment net income (loss) $ 13 $ 21 $ 106 $ 81 $ (26 ) $ (36 ) $ 648 $ 642 Identifiable assets (period end) $ 3,360 $ 3,342 $ 18,774 $ 17,570 $ 56,407 $ 59,020 $ 220,340 $ 222,622 Nine Months Ended September 30, Community Banking Residential Mortgage Banking Dealer Financial Services Specialized Lending (Dollars in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Net interest income (expense) $ 1,852 $ 1,631 $ 996 $ 1,045 $ 727 $ 684 $ 545 $ 517 Net intersegment interest income (expense) 1,236 1,210 (633 ) (646 ) (137 ) (118 ) (230 ) (201 ) Segment net interest income 3,088 2,841 363 399 590 566 315 316 Allocated provision for credit losses 111 10 17 31 254 210 43 51 Segment net interest income after provision 2,977 2,831 346 368 336 356 272 265 Noninterest income 1,104 1,027 234 272 — 2 210 212 Noninterest expense 2,398 2,356 314 259 169 143 278 259 Income (loss) before income taxes 1,683 1,502 266 381 167 215 204 218 Provision (benefit) for income taxes 602 547 99 144 62 82 45 50 Segment net income (loss) $ 1,081 $ 955 $ 167 $ 237 $ 105 $ 133 $ 159 $ 168 Identifiable assets (period end) $ 74,493 $ 73,125 $ 33,213 $ 36,652 $ 15,239 $ 15,090 $ 18,854 $ 17,823 Insurance Holdings Financial Services Other, Treasury & Corporate (1) Total BB&T Corporation 2017 2016 2017 2016 2017 2016 2017 2016 Net interest income (expense) $ 2 $ 2 $ 222 $ 196 $ 547 $ 681 $ 4,891 $ 4,756 Net intersegment interest income (expense) 1 (4 ) 263 256 (500 ) (497 ) — — Segment net interest income 3 (2 ) 485 452 47 184 4,891 4,756 Allocated provision for credit losses — — (9 ) 128 (7 ) 13 409 443 Segment net interest income after provision 3 (2 ) 494 324 54 171 4,482 4,313 Noninterest income 1,344 1,298 711 654 (46 ) (155 ) 3,557 3,310 Noninterest expense 1,163 1,109 709 677 558 250 5,589 5,053 Income (loss) before income taxes 184 187 496 301 (550 ) (234 ) 2,450 2,570 Provision (benefit) for income taxes 70 72 183 113 (359 ) (237 ) 702 771 Segment net income (loss) $ 114 $ 115 $ 313 $ 188 $ (191 ) $ 3 $ 1,748 $ 1,799 Identifiable assets (period end) $ 3,360 $ 3,342 $ 18,774 $ 17,570 $ 56,407 $ 59,020 $ 220,340 $ 222,622 (1) Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure. |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net Change in Cash and Cash Equivalents | $ (1,238) | $ (739) | |||
Net Cash Provided by (Used in) Operating Activities | 2,959 | 637 | |||
Net Cash Provided by (Used in) Investing Activities | (3,143) | (2,707) | |||
Net Cash Provided by (Used in) Financing Activities | (1,054) | 1,331 | |||
Excess tax benefits | $ (294) | $ (273) | $ (702) | (771) | |
Vested or Exercised | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Excess tax benefits | $ 35 | ||||
Effect of Correction | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net Change in Cash and Cash Equivalents | 0 | ||||
Net Cash Provided by (Used in) Operating Activities | 337 | ||||
Net Cash Provided by (Used in) Investing Activities | (221) | ||||
Net Cash Provided by (Used in) Financing Activities | $ (116) |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) $ in Millions | Apr. 01, 2016USD ($)branch |
Swett & Crawford | |
Business Acquisition [Line Items] | |
Cash paid for acquisition of business | $ 461 |
National Penn Bancshares, Inc. | |
Business Acquisition [Line Items] | |
Assets | 10,100 |
Deposits | $ 6,600 |
Number of financial centers | branch | 126 |
Securities - Narrative (Details
Securities - Narrative (Details) $ in Billions | Sep. 30, 2017USD ($) |
FNMA investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Securities, amortized cost | $ 14.7 |
Securities, fair value | 14.4 |
FHLMC investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Securities, amortized cost | 9.6 |
Securities, fair value | $ 9.5 |
Securities - Amortized Cost, Gr
Securities - Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
AFS securities | ||
Amortized Cost | $ 23,450 | $ 27,333 |
Gross Unrealized Gains | 259 | 304 |
Gross Unrealized Losses | 525 | 711 |
Fair Value | 23,184 | 26,926 |
HTM securities | ||
Total debt securities | 23,447 | 16,680 |
Gross Unrealized Gains | 98 | 76 |
Gross Unrealized Losses | 153 | 210 |
Fair Value | 23,392 | 16,546 |
U.S. Treasury | ||
AFS securities | ||
Amortized Cost | 2,170 | 2,669 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | 59 | 84 |
Fair Value | 2,111 | 2,587 |
HTM securities | ||
Total debt securities | 1,098 | 1,098 |
Gross Unrealized Gains | 18 | 20 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,116 | 1,118 |
GSE | ||
AFS securities | ||
Amortized Cost | 188 | 190 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 6 | 10 |
Fair Value | 182 | 180 |
HTM securities | ||
Total debt securities | 2,197 | 2,197 |
Gross Unrealized Gains | 16 | 14 |
Gross Unrealized Losses | 13 | 30 |
Fair Value | 2,200 | 2,181 |
Agency MBS | ||
AFS securities | ||
Amortized Cost | 19,096 | 21,819 |
Gross Unrealized Gains | 7 | 13 |
Gross Unrealized Losses | 427 | 568 |
Fair Value | 18,676 | 21,264 |
HTM securities | ||
Total debt securities | 20,073 | 13,225 |
Gross Unrealized Gains | 62 | 40 |
Gross Unrealized Losses | 140 | 180 |
Fair Value | 19,995 | 13,085 |
States and political subdivisions | ||
AFS securities | ||
Amortized Cost | 1,586 | 2,198 |
Gross Unrealized Gains | 46 | 56 |
Gross Unrealized Losses | 33 | 49 |
Fair Value | 1,599 | 2,205 |
HTM securities | ||
Total debt securities | 34 | 110 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 34 | 110 |
Non-agency MBS | ||
AFS securities | ||
Amortized Cost | 402 | 446 |
Gross Unrealized Gains | 206 | 233 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 608 | 679 |
Other | ||
AFS securities | ||
Amortized Cost | 8 | 11 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 8 | 11 |
HTM securities | ||
Total debt securities | 45 | 50 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 47 | $ 52 |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value by Contractual Maturity (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
AFS, Amortized Cost | ||
Due in one year or less | $ 254 | |
Due after one year through five years | 535 | |
Due after five years through ten years | 2,367 | |
Due after ten years | 20,294 | |
Total debt securities | 23,450 | |
AFS, Fair Value | ||
Due in one year or less | 254 | |
Due after one year through five years | 539 | |
Due after five years through ten years | 2,305 | |
Due after ten years | 20,086 | |
Total debt securities | 23,184 | |
HTM, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 1,962 | |
Due after five years through ten years | 1,389 | |
Due after ten years | 20,096 | |
Total debt securities | 23,447 | $ 16,680 |
HTM, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 1,987 | |
Due after five years through ten years | 1,385 | |
Due after ten years | 20,020 | |
Total debt securities | $ 23,392 | $ 16,546 |
Securities - Gross Unrealized L
Securities - Gross Unrealized Losses and Fair Values of Investments in Continuous Unrealized Loss Positions (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
AFS securities, Fair Value | ||
Less than 12 months | $ 9,091 | $ 17,401 |
12 months or more | 11,612 | 5,452 |
Total | 20,703 | 22,853 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 120 | 443 |
12 months or more | 405 | 268 |
Total | 525 | 711 |
HTM securities, Fair Value | ||
Less than 12 months | 10,363 | 9,479 |
12 months or more | 1,882 | 305 |
Total | 12,245 | 9,784 |
HTM securities, Unrealized Losses | ||
Less than 12 months | 85 | 208 |
12 months or more | 68 | 2 |
Total | 153 | 210 |
U.S. Treasury | ||
AFS securities, Fair Value | ||
Less than 12 months | 459 | 2,014 |
12 months or more | 1,553 | 0 |
Total | 2,012 | 2,014 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 2 | 84 |
12 months or more | 57 | 0 |
Total | 59 | 84 |
GSE | ||
AFS securities, Fair Value | ||
Less than 12 months | 12 | 180 |
12 months or more | 170 | 0 |
Total | 182 | 180 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 0 | 10 |
12 months or more | 6 | 0 |
Total | 6 | 10 |
HTM securities, Fair Value | ||
Less than 12 months | 1,185 | 1,762 |
12 months or more | 146 | 0 |
Total | 1,331 | 1,762 |
HTM securities, Unrealized Losses | ||
Less than 12 months | 9 | 30 |
12 months or more | 4 | 0 |
Total | 13 | 30 |
Agency MBS | ||
AFS securities, Fair Value | ||
Less than 12 months | 8,533 | 14,842 |
12 months or more | 9,481 | 5,138 |
Total | 18,014 | 19,980 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 118 | 342 |
12 months or more | 309 | 226 |
Total | 427 | 568 |
HTM securities, Fair Value | ||
Less than 12 months | 9,178 | 7,717 |
12 months or more | 1,736 | 305 |
Total | 10,914 | 8,022 |
HTM securities, Unrealized Losses | ||
Less than 12 months | 76 | 178 |
12 months or more | 64 | 2 |
Total | 140 | 180 |
States and political subdivisions | ||
AFS securities, Fair Value | ||
Less than 12 months | 87 | 365 |
12 months or more | 408 | 314 |
Total | 495 | 679 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 0 | 7 |
12 months or more | 33 | 42 |
Total | $ 33 | $ 49 |
Loans and ACL - Narrative (Deta
Loans and ACL - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Loan Information [Line Items] | ||||||
Modifications that defaulted during the period that had been classified as a TDR during the previous 12 months | $ 26 | $ 19 | $ 71 | $ 52 | ||
Other lending subsidiaries | ||||||
Loan Information [Line Items] | ||||||
Purchased loan portfolio | $ 244 | |||||
Residential mortgage | ||||||
Loan Information [Line Items] | ||||||
Loans sold | $ 300 | |||||
Residential mortgage | Nonaccrual | ||||||
Loan Information [Line Items] | ||||||
Loans sold | 40 | |||||
Residential mortgage | Performing TDRs | ||||||
Loan Information [Line Items] | ||||||
Loans sold | $ 199 |
Loans and ACL - Aging Analysis
Loans and ACL - Aging Analysis of Loans and Leases (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable [Line Items] | ||
Current | $ 140,696 | $ 140,873 |
30-89 Days Past Due | 987 | 1,077 |
90 Days Or More Past Due | 505 | 636 |
Nonaccrual | 606 | 736 |
Total | 142,794 | 143,322 |
Commercial | Commercial and industrial | ||
Financing Receivable [Line Items] | ||
Current | 51,666 | 51,329 |
30-89 Days Past Due | 30 | 27 |
90 Days Or More Past Due | 0 | 0 |
Nonaccrual | 281 | 363 |
Total | 51,977 | 51,719 |
Commercial | CRE-income producing properties | ||
Financing Receivable [Line Items] | ||
Current | 14,862 | 14,492 |
30-89 Days Past Due | 7 | 6 |
90 Days Or More Past Due | 0 | 0 |
Nonaccrual | 31 | 40 |
Total | 14,900 | 14,538 |
Commercial | CRE-construction and development | ||
Financing Receivable [Line Items] | ||
Current | 4,490 | 3,800 |
30-89 Days Past Due | 1 | 2 |
90 Days Or More Past Due | 0 | 0 |
Nonaccrual | 10 | 17 |
Total | 4,501 | 3,819 |
Commercial | Dealer floor plan | ||
Financing Receivable [Line Items] | ||
Current | 1,607 | 1,413 |
30-89 Days Past Due | 0 | 0 |
90 Days Or More Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Total | 1,607 | 1,413 |
Commercial | Other lending subsidiaries | ||
Financing Receivable [Line Items] | ||
Current | 8,281 | 7,660 |
30-89 Days Past Due | 17 | 21 |
90 Days Or More Past Due | 0 | 0 |
Nonaccrual | 9 | 10 |
Total | 8,307 | 7,691 |
Retail | Direct retail lending | ||
Financing Receivable [Line Items] | ||
Current | 11,813 | 11,963 |
30-89 Days Past Due | 55 | 60 |
90 Days Or More Past Due | 9 | 6 |
Nonaccrual | 64 | 63 |
Total | 11,941 | 12,092 |
Retail | Revolving credit | ||
Financing Receivable [Line Items] | ||
Current | 2,664 | 2,620 |
30-89 Days Past Due | 22 | 23 |
90 Days Or More Past Due | 11 | 12 |
Nonaccrual | 0 | 0 |
Total | 2,697 | 2,655 |
Retail | Residential mortgage-nonguaranteed | ||
Financing Receivable [Line Items] | ||
Current | 27,261 | 28,378 |
30-89 Days Past Due | 320 | 393 |
90 Days Or More Past Due | 43 | 79 |
Nonaccrual | 136 | 172 |
Total | 27,760 | 29,022 |
Retail | Residential mortgage-government guaranteed | ||
Financing Receivable [Line Items] | ||
Current | 391 | 324 |
30-89 Days Past Due | 135 | 132 |
90 Days Or More Past Due | 366 | 443 |
Nonaccrual | 5 | 0 |
Total | 897 | 899 |
Retail | Sales finance | ||
Financing Receivable [Line Items] | ||
Current | 9,380 | 11,179 |
30-89 Days Past Due | 66 | 76 |
90 Days Or More Past Due | 6 | 6 |
Nonaccrual | 5 | 6 |
Total | 9,457 | 11,267 |
Retail | Other lending subsidiaries | ||
Financing Receivable [Line Items] | ||
Current | 7,681 | 6,931 |
30-89 Days Past Due | 293 | 301 |
90 Days Or More Past Due | 0 | 0 |
Nonaccrual | 65 | 65 |
Total | 8,039 | 7,297 |
PCI | ||
Financing Receivable [Line Items] | ||
Current | 600 | 784 |
30-89 Days Past Due | 41 | 36 |
90 Days Or More Past Due | 70 | 90 |
Nonaccrual | 0 | 0 |
Total | $ 711 | $ 910 |
Loans and ACL - Risk Rating (De
Loans and ACL - Risk Rating (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Loans and leases | $ 142,794 | $ 143,322 |
Commercial | Commercial & Industrial | ||
Loans and leases | 51,977 | 51,719 |
Commercial | Commercial & Industrial | Pass | ||
Loans and leases | 50,352 | 49,921 |
Commercial | Commercial & Industrial | Special mention | ||
Loans and leases | 395 | 314 |
Commercial | Commercial & Industrial | Substandard-performing | ||
Loans and leases | 949 | 1,121 |
Commercial | Commercial & Industrial | Nonperforming | ||
Loans and leases | 281 | 363 |
Commercial | CRE - Income Producing Properties | ||
Loans and leases | 14,900 | 14,538 |
Commercial | CRE - Income Producing Properties | Pass | ||
Loans and leases | 14,561 | 14,061 |
Commercial | CRE - Income Producing Properties | Special mention | ||
Loans and leases | 63 | 124 |
Commercial | CRE - Income Producing Properties | Substandard-performing | ||
Loans and leases | 245 | 313 |
Commercial | CRE - Income Producing Properties | Nonperforming | ||
Loans and leases | 31 | 40 |
Commercial | CRE - Construction & Development | ||
Loans and leases | 4,501 | 3,819 |
Commercial | CRE - Construction & Development | Pass | ||
Loans and leases | 4,408 | 3,718 |
Commercial | CRE - Construction & Development | Special mention | ||
Loans and leases | 44 | 38 |
Commercial | CRE - Construction & Development | Substandard-performing | ||
Loans and leases | 39 | 46 |
Commercial | CRE - Construction & Development | Nonperforming | ||
Loans and leases | 10 | 17 |
Commercial | Dealer Floor Plan | ||
Loans and leases | 1,607 | 1,413 |
Commercial | Dealer Floor Plan | Pass | ||
Loans and leases | 1,598 | 1,404 |
Commercial | Dealer Floor Plan | Special mention | ||
Loans and leases | 0 | 0 |
Commercial | Dealer Floor Plan | Substandard-performing | ||
Loans and leases | 9 | 9 |
Commercial | Dealer Floor Plan | Nonperforming | ||
Loans and leases | 0 | 0 |
Commercial | Other Lending Subsidiaries | ||
Loans and leases | 8,307 | 7,691 |
Commercial | Other Lending Subsidiaries | Pass | ||
Loans and leases | 8,212 | 7,604 |
Commercial | Other Lending Subsidiaries | Special mention | ||
Loans and leases | 17 | 33 |
Commercial | Other Lending Subsidiaries | Substandard-performing | ||
Loans and leases | 69 | 44 |
Commercial | Other Lending Subsidiaries | Nonperforming | ||
Loans and leases | 9 | 10 |
Retail | Direct Retail Lending | ||
Loans and leases | 11,941 | 12,092 |
Retail | Direct Retail Lending | Performing | ||
Loans and leases | 11,877 | 12,029 |
Retail | Direct Retail Lending | Nonperforming | ||
Loans and leases | 64 | 63 |
Retail | Revolving Credit | ||
Loans and leases | 2,697 | 2,655 |
Retail | Revolving Credit | Performing | ||
Loans and leases | 2,697 | 2,655 |
Retail | Revolving Credit | Nonperforming | ||
Loans and leases | 0 | 0 |
Retail | Residential Mortgage | ||
Loans and leases | 28,657 | 29,921 |
Retail | Residential Mortgage | Performing | ||
Loans and leases | 28,516 | 29,749 |
Retail | Residential Mortgage | Nonperforming | ||
Loans and leases | 141 | 172 |
Retail | Sales Finance | ||
Loans and leases | 9,457 | 11,267 |
Retail | Sales Finance | Performing | ||
Loans and leases | 9,452 | 11,261 |
Retail | Sales Finance | Nonperforming | ||
Loans and leases | 5 | 6 |
Retail | Other Lending Subsidiaries | ||
Loans and leases | 8,039 | 7,297 |
Retail | Other Lending Subsidiaries | Performing | ||
Loans and leases | 7,974 | 7,232 |
Retail | Other Lending Subsidiaries | Nonperforming | ||
Loans and leases | $ 65 | $ 65 |
Loans and ACL - Allowance for C
Loans and ACL - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Provision (Benefit) | $ 126 | $ 148 | $ 409 | $ 443 |
Commercial | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 479 | 519 | 500 | 466 |
Charge-Offs | (10) | (23) | (60) | (105) |
Recoveries | 7 | 6 | 21 | 30 |
Provision (Benefit) | 3 | 21 | 18 | 132 |
Acquisition | 0 | |||
Ending Balance | 479 | 523 | 479 | 523 |
Commercial | CRE-income producing properties | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 140 | 116 | 117 | 135 |
Charge-Offs | (2) | (5) | (6) | (7) |
Recoveries | 1 | 3 | 5 | 7 |
Provision (Benefit) | 0 | (2) | 23 | (23) |
Acquisition | 0 | |||
Ending Balance | 139 | 112 | 139 | 112 |
Commercial | CRE-construction and development | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 23 | 28 | 25 | 37 |
Charge-Offs | (2) | (1) | (2) | (1) |
Recoveries | 2 | 3 | 7 | 9 |
Provision (Benefit) | (1) | (3) | (8) | (18) |
Acquisition | 0 | |||
Ending Balance | 22 | 27 | 22 | 27 |
Commercial | Dealer floor plan | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 12 | 10 | 11 | 8 |
Charge-Offs | 0 | 0 | (1) | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision (Benefit) | 1 | 0 | 3 | 2 |
Acquisition | 0 | |||
Ending Balance | 13 | 10 | 13 | 10 |
Commercial | Other lending subsidiaries | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 36 | 27 | 29 | 22 |
Charge-Offs | (5) | (5) | (15) | (17) |
Recoveries | 2 | 1 | 4 | 5 |
Provision (Benefit) | 6 | 5 | 21 | 18 |
Acquisition | 0 | |||
Ending Balance | 39 | 28 | 39 | 28 |
Retail | Direct retail lending | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 100 | 105 | 103 | 105 |
Charge-Offs | (16) | (12) | (46) | (37) |
Recoveries | 6 | 7 | 19 | 20 |
Provision (Benefit) | 11 | 3 | 25 | 15 |
Acquisition | 0 | |||
Ending Balance | 101 | 103 | 101 | 103 |
Retail | Revolving credit | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 101 | 98 | 106 | 104 |
Charge-Offs | (17) | (18) | (57) | (53) |
Recoveries | 4 | 5 | 14 | 15 |
Provision (Benefit) | 13 | 14 | 38 | 33 |
Acquisition | 0 | |||
Ending Balance | 101 | 99 | 101 | 99 |
Retail | Residential mortgage-nonguaranteed | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 173 | 194 | 186 | 194 |
Charge-Offs | (6) | (11) | (36) | (26) |
Recoveries | 0 | 1 | 1 | 3 |
Provision (Benefit) | 5 | 0 | 21 | 13 |
Acquisition | 0 | |||
Ending Balance | 172 | 184 | 172 | 184 |
Retail | Residential mortgage-government guaranteed | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 38 | 30 | 41 | 23 |
Charge-Offs | (1) | (2) | (3) | (4) |
Recoveries | 0 | 0 | 0 | 0 |
Provision (Benefit) | (2) | 9 | (3) | 18 |
Acquisition | 0 | |||
Ending Balance | 35 | 37 | 35 | 37 |
Retail | Sales finance | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 39 | 36 | 38 | 40 |
Charge-Offs | (8) | (7) | (23) | (21) |
Recoveries | 3 | 3 | 10 | 9 |
Provision (Benefit) | 3 | 4 | 12 | 8 |
Acquisition | 0 | |||
Ending Balance | 37 | 36 | 37 | 36 |
Retail | Other lending subsidiaries | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 314 | 279 | 289 | 265 |
Charge-Offs | (95) | (86) | (275) | (239) |
Recoveries | 11 | 11 | 37 | 31 |
Provision (Benefit) | 83 | 85 | 262 | 232 |
Acquisition | 0 | |||
Ending Balance | 313 | 289 | 313 | 289 |
PCI | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 30 | 65 | 44 | 61 |
Charge-Offs | (1) | 0 | (1) | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision (Benefit) | (2) | (2) | (16) | 2 |
Acquisition | 0 | |||
Ending Balance | 27 | 63 | 27 | 63 |
ALLL | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 1,485 | 1,507 | 1,489 | 1,460 |
Charge-Offs | (163) | (170) | (525) | (510) |
Recoveries | 36 | 40 | 118 | 129 |
Provision (Benefit) | 120 | 134 | 396 | 432 |
Acquisition | 0 | |||
Ending Balance | 1,478 | 1,511 | 1,478 | 1,511 |
RUFC | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 117 | 96 | 110 | 90 |
Charge-Offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision (Benefit) | 6 | 14 | 13 | 11 |
Acquisition | 9 | |||
Ending Balance | 123 | 110 | 123 | 110 |
ACL | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 1,602 | 1,603 | 1,599 | 1,550 |
Charge-Offs | (163) | (170) | (525) | (510) |
Recoveries | 36 | 40 | 118 | 129 |
Provision (Benefit) | 126 | 148 | 409 | 443 |
Acquisition | 9 | |||
Ending Balance | $ 1,601 | $ 1,621 | $ 1,601 | $ 1,621 |
Loans and ACL - Collectively Ev
Loans and ACL - Collectively Evaluated for Impairment (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Recorded Investment | $ 141,090 | $ 141,395 |
Related ALLL | 1,309 | 1,297 |
Commercial | Commercial and industrial | ||
Recorded Investment | 51,594 | 51,253 |
Related ALLL | 451 | 463 |
Commercial | CRE-income producing properties | ||
Recorded Investment | 14,831 | 14,455 |
Related ALLL | 134 | 112 |
Commercial | CRE-construction and development | ||
Recorded Investment | 4,479 | 3,787 |
Related ALLL | 20 | 21 |
Commercial | Dealer floor plan | ||
Recorded Investment | 1,607 | 1,413 |
Related ALLL | 13 | 11 |
Commercial | Other lending subsidiaries | ||
Recorded Investment | 8,295 | 7,678 |
Related ALLL | 38 | 28 |
Retail | Direct retail lending | ||
Recorded Investment | 11,864 | 12,011 |
Related ALLL | 93 | 93 |
Retail | Revolving credit | ||
Recorded Investment | 2,668 | 2,626 |
Related ALLL | 89 | 95 |
Retail | Residential mortgage-nonguaranteed | ||
Recorded Investment | 27,316 | 28,488 |
Related ALLL | 137 | 136 |
Retail | Residential mortgage-government guaranteed | ||
Recorded Investment | 515 | 466 |
Related ALLL | 7 | 8 |
Retail | Sales finance | ||
Recorded Investment | 9,443 | 11,251 |
Related ALLL | 36 | 37 |
Retail | Other lending subsidiaries | ||
Recorded Investment | 7,767 | 7,057 |
Related ALLL | 264 | 249 |
PCI | ||
Recorded Investment | 711 | 910 |
Related ALLL | $ 27 | $ 44 |
Loans and ACL - Individually Ev
Loans and ACL - Individually Evaluated for Impairment (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Related ALLL | $ 169 | $ 192 |
Recorded Investment | 1,704 | 1,927 |
UPB | 1,823 | 2,057 |
Average Recorded Investment | 1,843 | 1,785 |
Interest Income Recognized | 67 | 82 |
Commercial | Commercial and industrial | ||
Impaired Financing Receivable, with No Related Allowance [Abstract] | ||
Recorded Investment | 180 | 201 |
UPB | 207 | 225 |
Average Recorded Investment | 193 | 217 |
Interest Income Recognized | 0 | 1 |
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Recorded Investment | 203 | 265 |
UPB | 204 | 269 |
Related ALLL | 28 | 37 |
Average Recorded Investment | 236 | 259 |
Interest Income Recognized | 4 | 5 |
Commercial | CRE-income producing properties | ||
Impaired Financing Receivable, with No Related Allowance [Abstract] | ||
Recorded Investment | 17 | 25 |
UPB | 20 | 27 |
Average Recorded Investment | 26 | 16 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Recorded Investment | 52 | 58 |
UPB | 53 | 61 |
Related ALLL | 5 | 5 |
Average Recorded Investment | 56 | 68 |
Interest Income Recognized | 1 | 2 |
Commercial | CRE-construction and development | ||
Impaired Financing Receivable, with No Related Allowance [Abstract] | ||
Recorded Investment | 7 | 10 |
UPB | 8 | 11 |
Average Recorded Investment | 11 | 8 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Recorded Investment | 15 | 22 |
UPB | 15 | 22 |
Related ALLL | 2 | 4 |
Average Recorded Investment | 19 | 22 |
Interest Income Recognized | 0 | 1 |
Commercial | Dealer floor plan | ||
Impaired Financing Receivable, with No Related Allowance [Abstract] | ||
Recorded Investment | 0 | 0 |
UPB | 0 | 0 |
Average Recorded Investment | 3 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Recorded Investment | 0 | 0 |
UPB | 0 | 0 |
Related ALLL | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Commercial | Other lending subsidiaries | ||
Impaired Financing Receivable, with No Related Allowance [Abstract] | ||
Recorded Investment | 3 | 4 |
UPB | 5 | 6 |
Average Recorded Investment | 3 | 6 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Recorded Investment | 9 | 9 |
UPB | 9 | 9 |
Related ALLL | 1 | 1 |
Average Recorded Investment | 7 | 5 |
Interest Income Recognized | 0 | 0 |
Retail | Direct retail lending | ||
Impaired Financing Receivable, with No Related Allowance [Abstract] | ||
Recorded Investment | 21 | 13 |
UPB | 45 | 38 |
Average Recorded Investment | 16 | 12 |
Interest Income Recognized | 1 | 1 |
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Recorded Investment | 56 | 68 |
UPB | 57 | 69 |
Related ALLL | 8 | 10 |
Average Recorded Investment | 63 | 71 |
Interest Income Recognized | 3 | 4 |
Retail | Revolving credit | ||
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Recorded Investment | 29 | 29 |
UPB | 29 | 29 |
Related ALLL | 12 | 11 |
Average Recorded Investment | 29 | 31 |
Interest Income Recognized | 1 | 1 |
Retail | Residential mortgage-nonguaranteed | ||
Impaired Financing Receivable, with No Related Allowance [Abstract] | ||
Recorded Investment | 119 | 94 |
UPB | 162 | 141 |
Average Recorded Investment | 104 | 97 |
Interest Income Recognized | 3 | 4 |
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Recorded Investment | 325 | 440 |
UPB | 332 | 451 |
Related ALLL | 35 | 50 |
Average Recorded Investment | 407 | 383 |
Interest Income Recognized | 13 | 16 |
Retail | Residential mortgage-government guaranteed | ||
Impaired Financing Receivable, with No Related Allowance [Abstract] | ||
Recorded Investment | 4 | 3 |
UPB | 4 | 3 |
Average Recorded Investment | 3 | 3 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Recorded Investment | 378 | 430 |
UPB | 379 | 431 |
Related ALLL | 28 | 33 |
Average Recorded Investment | 405 | 360 |
Interest Income Recognized | 12 | 14 |
Retail | Sales finance | ||
Impaired Financing Receivable, with No Related Allowance [Abstract] | ||
Recorded Investment | 1 | 1 |
UPB | 2 | 2 |
Average Recorded Investment | 1 | 1 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Recorded Investment | 13 | 15 |
UPB | 13 | 15 |
Related ALLL | 1 | 1 |
Average Recorded Investment | 14 | 16 |
Interest Income Recognized | 0 | 1 |
Retail | Other lending subsidiaries | ||
Impaired Financing Receivable, with No Related Allowance [Abstract] | ||
Recorded Investment | 4 | 4 |
UPB | 10 | 9 |
Average Recorded Investment | 4 | 4 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, with Related Allowance [Abstract] | ||
Recorded Investment | 268 | 236 |
UPB | 269 | 239 |
Related ALLL | 49 | 40 |
Average Recorded Investment | 243 | 206 |
Interest Income Recognized | $ 29 | $ 32 |
Loans and ACL - Summary of TDRs
Loans and ACL - Summary of TDRs (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable [Line Items] | ||
Total TDRs | $ 1,255 | $ 1,371 |
ALLL attributable to TDRs | 140 | 146 |
Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 1,052 | 1,187 |
Nonperforming TDRs (also included in NPL disclosures) | ||
Financing Receivable [Line Items] | ||
Total TDRs | 203 | 184 |
Commercial | Commercial and industrial | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 60 | 55 |
Commercial | CRE-income producing properties | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 13 | 16 |
Commercial | CRE-construction and development | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 9 | 9 |
Retail | Direct retail lending | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 63 | 67 |
Retail | Revolving credit | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 29 | 29 |
Retail | Residential mortgage-nonguaranteed | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 229 | 336 |
Retail | Residential mortgage-government guaranteed | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 380 | 433 |
Retail | Sales finance | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 13 | 16 |
Retail | Other lending subsidiaries | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | $ 256 | $ 226 |
Loans and ACL - Types of Modifi
Loans and ACL - Types of Modifications and Impact to Allowance (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Newly Designated TDRs [Member] | Commercial | Commercial and industrial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Impact To ALLL | $ 1 | $ 1 | $ 3 | $ 3 |
Newly Designated TDRs [Member] | Commercial | CRE-income producing properties | ||||
Financing Receivable, Modifications [Line Items] | ||||
Impact To ALLL | 0 | 0 | 0 | 0 |
Newly Designated TDRs [Member] | Commercial | CRE-construction and development | ||||
Financing Receivable, Modifications [Line Items] | ||||
Impact To ALLL | 0 | 0 | 1 | 0 |
Newly Designated TDRs [Member] | Retail | Direct retail lending | ||||
Financing Receivable, Modifications [Line Items] | ||||
Impact To ALLL | 0 | 0 | 0 | 0 |
Newly Designated TDRs [Member] | Retail | Revolving credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Impact To ALLL | 1 | 1 | 3 | 3 |
Newly Designated TDRs [Member] | Retail | Residential mortgage-nonguaranteed | ||||
Financing Receivable, Modifications [Line Items] | ||||
Impact To ALLL | 2 | 2 | 12 | 5 |
Newly Designated TDRs [Member] | Retail | Residential mortgage-government guaranteed | ||||
Financing Receivable, Modifications [Line Items] | ||||
Impact To ALLL | 3 | 7 | 9 | 12 |
Newly Designated TDRs [Member] | Retail | Sales finance | ||||
Financing Receivable, Modifications [Line Items] | ||||
Impact To ALLL | 0 | 0 | 0 | 0 |
Newly Designated TDRs [Member] | Retail | Other lending subsidiaries | ||||
Financing Receivable, Modifications [Line Items] | ||||
Impact To ALLL | 8 | 6 | 16 | 16 |
Newly Designated TDRs [Member] | Rate | Commercial | Commercial and industrial | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 17 | 8 | 72 | 99 |
Newly Designated TDRs [Member] | Rate | Commercial | CRE-income producing properties | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 0 | 0 | 6 | 4 |
Newly Designated TDRs [Member] | Rate | Commercial | CRE-construction and development | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 0 | 0 | 8 | 1 |
Newly Designated TDRs [Member] | Rate | Retail | Direct retail lending | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 2 | 5 | 7 | 10 |
Newly Designated TDRs [Member] | Rate | Retail | Revolving credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 5 | 4 | 14 | 13 |
Newly Designated TDRs [Member] | Rate | Retail | Residential mortgage-nonguaranteed | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 25 | 30 | 119 | 65 |
Newly Designated TDRs [Member] | Rate | Retail | Residential mortgage-government guaranteed | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 54 | 118 | 170 | 217 |
Newly Designated TDRs [Member] | Rate | Retail | Sales finance | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 0 | 0 | 0 | 0 |
Newly Designated TDRs [Member] | Rate | Retail | Other lending subsidiaries | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 62 | 44 | 140 | 118 |
Newly Designated TDRs [Member] | Structure | Commercial | Commercial and industrial | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 36 | 23 | 92 | 39 |
Newly Designated TDRs [Member] | Structure | Commercial | CRE-income producing properties | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 4 | 1 | 8 | 8 |
Newly Designated TDRs [Member] | Structure | Commercial | CRE-construction and development | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 1 | 3 | 2 | 4 |
Newly Designated TDRs [Member] | Structure | Retail | Direct retail lending | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 1 | 0 | 3 | 1 |
Newly Designated TDRs [Member] | Structure | Retail | Revolving credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 0 | 0 | 0 | 0 |
Newly Designated TDRs [Member] | Structure | Retail | Residential mortgage-nonguaranteed | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 17 | 22 | 29 | 36 |
Newly Designated TDRs [Member] | Structure | Retail | Residential mortgage-government guaranteed | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 0 | 0 | 0 | 0 |
Newly Designated TDRs [Member] | Structure | Retail | Sales finance | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 1 | 2 | 5 | 5 |
Newly Designated TDRs [Member] | Structure | Retail | Other lending subsidiaries | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 0 | 0 | 0 | 0 |
Re-Modification of Previously Designated TDRs [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Impact To ALLL | 0 | 0 | 0 | 0 |
Re-Modification of Previously Designated TDRs [Member] | Rate | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | 63 | 19 | 148 | 48 |
Re-Modification of Previously Designated TDRs [Member] | Structure | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDRs | $ 4 | $ 16 | $ 26 | $ 26 |
Loans and ACL - Changes in Accr
Loans and ACL - Changes in Accretable Yield for PCI Loans (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Purchased Impaired | ||
Information About PCI Loans | ||
Accretable yield at beginning of period | $ 253 | $ 189 |
Additions | 0 | 36 |
Accretion | (67) | (134) |
Other, net | 25 | 162 |
Accretable yield at end of period | 211 | 253 |
Carrying value at end of period | 464 | 614 |
Outstanding UPB at end of period | 719 | 910 |
Purchased Nonimpaired | ||
Information About PCI Loans | ||
Accretable yield at beginning of period | 155 | 176 |
Additions | 0 | 0 |
Accretion | (44) | (73) |
Other, net | 30 | 52 |
Accretable yield at end of period | 141 | 155 |
Carrying value at end of period | 247 | 296 |
Outstanding UPB at end of period | $ 343 | $ 423 |
Loans and ACL - Additional Info
Loans and ACL - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Unearned income, discounts and net deferred loan fees and costs, excluding PCI | $ 143 | $ 265 |
Residential mortgage loans in process of foreclosure | $ 305 | $ 366 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets - Changes in Carrying Amounts Attributable to Operating Segments (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 9,638 |
Adjustments | (20) |
Goodwill, ending balance | 9,618 |
Community Banking | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 7,032 |
Adjustments | (12) |
Goodwill, ending balance | 7,020 |
Residential Mortgage Banking | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 416 |
Adjustments | 6 |
Goodwill, ending balance | 422 |
Dealer Financial Services | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 111 |
Adjustments | 0 |
Goodwill, ending balance | 111 |
Specialized Lending | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 113 |
Adjustments | (9) |
Goodwill, ending balance | 104 |
Insurance Holdings | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,752 |
Adjustments | (5) |
Goodwill, ending balance | 1,747 |
Financial Services | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 214 |
Adjustments | 0 |
Goodwill, ending balance | $ 214 |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets - Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,071 | $ 2,074 |
Accumulated Amortization | (1,326) | (1,220) |
Net Carrying Amount | 745 | 854 |
CDI | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 825 | 825 |
Accumulated Amortization | (614) | (565) |
Net Carrying Amount | 211 | 260 |
Other, primarily customer relationship intangibles | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,246 | 1,249 |
Accumulated Amortization | (712) | (655) |
Net Carrying Amount | $ 534 | $ 594 |
Loan Servicing - Narrative (Det
Loan Servicing - Narrative (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Transfers and Servicing [Abstract] | |
Payment for settlement of FHA matters | $ 83 |
Separate recoveries on FHA matter | 71 |
Net benefit related to FHA matter | $ 73 |
Loan Servicing - Residential Mo
Loan Servicing - Residential Mortgage Banking Activities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Transfers and Servicing [Abstract] | ||
UPB of residential mortgage and home equity loan servicing portfolio | $ 118,736 | $ 121,639 |
UPB of residential mortgage loans serviced for others (primarily agency conforming fixed rate) | 89,391 | 90,325 |
Mortgage loans sold with recourse | 514 | 578 |
Maximum recourse exposure from mortgage loans sold with recourse liability | 261 | 282 |
Indemnification, recourse and repurchase reserves | $ 39 | $ 40 |
Loan Servicing - Summary of Res
Loan Servicing - Summary of Residential Mortgage Banking Activities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Transfers and Servicing [Abstract] | ||
UPB of residential mortgage loans sold from LHFS | $ 9,478 | $ 11,098 |
Pre-tax gains recognized on mortgage loans sold and held for sale | 114 | 105 |
Servicing fees recognized from mortgage loans serviced for others | $ 197 | $ 201 |
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others | 0.28% | 0.28% |
Weighted average interest rate on mortgage loans serviced for others | 4.00% | 4.06% |
Loan Servicing - Analysis of Ac
Loan Servicing - Analysis of Activity in Residential MSRs (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
MSRs, carrying value, beginning of period | $ 1,052 | |
Change in fair value due to changes in valuation inputs or assumptions: | ||
MSRs, carrying value, end of period | 1,044 | |
Residential MSRs | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
MSRs, carrying value, beginning of period | 915 | $ 880 |
Additions | 93 | 99 |
Change in fair value due to changes in valuation inputs or assumptions: | ||
Prepayment speeds | (56) | (180) |
OAS | 47 | 9 |
Servicing Costs | 9 | 2 |
Realization of expected net servicing cash flows, passage of time and other | (104) | (103) |
MSRs, carrying value, end of period | 904 | 707 |
Gains (losses) on derivative financial instruments used to mitigate the income statement effect of changes in residential MSR fair value | $ 12 | $ 224 |
Loan Servicing - Residential MS
Loan Servicing - Residential MSR Sensitivity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Residential MSRs | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 100.00% | 100.00% |
Weighted average life | 6 years 5 months | 7 years |
Residential MSRs | Min | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 7.60% | 7.50% |
OAS | 8.40% | 9.80% |
Residential MSRs | Max | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 10.20% | 8.40% |
OAS | 8.90% | 10.20% |
Residential MSRs | Weighted Average | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 9.30% | 8.10% |
Effect on fair value of a 10% increase | $ (32) | $ (28) |
Effect on fair value of a 20% increase | $ (62) | $ (54) |
OAS | 8.50% | 10.00% |
Effect on fair value of a 10% increase | $ (28) | $ (33) |
Effect on fair value of a 20% increase | $ (54) | $ (64) |
Fixed-rate residential mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 99.10% | 99.10% |
Adjustable-rate residential mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 0.90% | 0.90% |
Loan Servicing - Commercial Mor
Loan Servicing - Commercial Mortgage Banking Activities (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Servicing Assets at Fair Value [Line Items] | ||
MSRs at fair value | $ 1,044 | $ 1,052 |
UPB of CRE mortgages serviced for others | 28,122 | 29,333 |
CRE mortgages serviced for others covered by recourse provisions | 4,307 | 4,240 |
Maximum recourse exposure from CRE mortgages sold with recourse liability | 1,244 | 1,272 |
Recorded reserves related to recourse exposure | 6 | 7 |
CRE mortgages originated during the year-to-date period | 4,969 | 7,145 |
Commercial Real Estate | ||
Servicing Assets at Fair Value [Line Items] | ||
MSRs at fair value | $ 140 | $ 137 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 54,049 | $ 50,697 |
Interest checking | 26,575 | 30,263 |
Money market and savings | 60,904 | 64,883 |
Time deposits | 14,607 | 14,391 |
Total deposits | 156,135 | 160,234 |
Time deposits $100,000 and greater | 6,542 | 5,394 |
Time deposits $250,000 and greater | $ 3,831 | $ 2,179 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||||||
Loss (gain) on early extinguishment of debt | $ 0 | $ 0 | $ 392 | $ (1) | ||
BB&T Corporation | Senior notes | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Issuance of debt | $ 2,300 | |||||
Branch Bank | FHLB Advances | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment of long-term debt | $ 2,900 | |||||
Loss (gain) on early extinguishment of debt | $ 392 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt, Interest Rates and Maturity Dates (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Debt Instruments [Line Items] | ||
Long-term debt | $ 20,863 | $ 21,965 |
Other long-term debt | ||
Debt Instruments [Line Items] | ||
Other long-term debt | $ 175 | 152 |
BB&T Corporation | Senior notes | Fixed rate | ||
Debt Instruments [Line Items] | ||
Effective Rate | 2.63% | |
Long-term debt | $ 7,079 | 7,600 |
BB&T Corporation | Senior notes | Fixed rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 1.45% | |
BB&T Corporation | Senior notes | Fixed rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 6.85% | |
BB&T Corporation | Senior notes | Floating rate | ||
Debt Instruments [Line Items] | ||
Effective Rate | 2.03% | |
Long-term debt | $ 2,247 | 1,898 |
BB&T Corporation | Senior notes | Floating rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 1.89% | |
BB&T Corporation | Senior notes | Floating rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 2.18% | |
BB&T Corporation | Subordinated notes | Fixed rate | ||
Debt Instruments [Line Items] | ||
Effective Rate | 1.71% | |
Long-term debt | $ 946 | 1,338 |
BB&T Corporation | Subordinated notes | Fixed rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 3.95% | |
BB&T Corporation | Subordinated notes | Fixed rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 5.25% | |
Branch Bank | Senior notes | Fixed rate | ||
Debt Instruments [Line Items] | ||
Effective Rate | 2.36% | |
Long-term debt | $ 4,930 | 4,209 |
Branch Bank | Senior notes | Fixed rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 1.45% | |
Branch Bank | Senior notes | Fixed rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 2.85% | |
Branch Bank | Senior notes | Floating rate | ||
Debt Instruments [Line Items] | ||
Effective Rate | 1.84% | |
Long-term debt | $ 849 | 250 |
Branch Bank | Senior notes | Floating rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 1.75% | |
Branch Bank | Senior notes | Floating rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 1.84% | |
Branch Bank | Subordinated notes | Fixed rate | ||
Debt Instruments [Line Items] | ||
Effective Rate | 3.43% | |
Long-term debt | $ 2,142 | 2,138 |
Branch Bank | Subordinated notes | Fixed rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 3.63% | |
Branch Bank | Subordinated notes | Fixed rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 3.80% | |
Branch Bank | Subordinated notes | Floating rate | ||
Debt Instruments [Line Items] | ||
Effective Rate | 0.00% | |
Long-term debt | $ 0 | 262 |
Branch Bank | Subordinated notes | Floating rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 0.00% | |
Branch Bank | Subordinated notes | Floating rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 0.00% | |
Branch Bank | FHLB advances | ||
Debt Instruments [Line Items] | ||
Effective Rate | 1.30% | |
Long-term debt | $ 2,495 | $ 4,118 |
Weighted average maturity of FHLB advances | 4 years 1 month | |
Branch Bank | FHLB advances | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 0.00% | |
Branch Bank | FHLB advances | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 6.38% |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted Shares and RSUs Activity Roll Forward (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Restricted Shares/Units | |
Nonvested at beginning of period (in shares) | shares | 13,516 |
Granted (in shares) | shares | 3,909 |
Vested (in shares) | shares | (3,832) |
Forfeited (in shares) | shares | (285) |
Nonvested at end of period (in shares) | shares | 13,308 |
Expected to vest at end of period (in shares) | shares | 12,297 |
Wtd. Avg. Grant Date Fair Value | |
Nonvested at beginning of period (in usd per share) | $ / shares | $ 29.39 |
Granted (in usd per share) | $ / shares | 42.88 |
Vested (in usd per share) | $ / shares | 27.18 |
Forfeited (in usd per share) | $ / shares | 33.01 |
Nonvested at end of period (in usd per share) | $ / shares | 33.92 |
Expected to vest at end of period (in usd per share) | $ / shares | $ 33.92 |
AOCI (Details)
AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Amounts reclassified from AOCI: | |||||
Net change in AOCI | $ 37 | $ 87 | $ 96 | $ 278 | |
Unrecognized Net Pension and Postretirement Costs | |||||
AOCI, Net of Tax [Roll Forward] | |||||
Beginning balance | (743) | (701) | (764) | (723) | |
OCI before reclassifications, net of tax | 1 | (9) | 0 | (8) | |
Amounts reclassified from AOCI: | |||||
Net change in AOCI | 8 | 2 | 29 | 24 | |
Ending balance | (735) | (699) | (735) | (699) | |
Unrecognized Net Pension and Postretirement Costs | Amounts reclassified from AOCI | |||||
Amounts reclassified from AOCI: | |||||
Before tax | [1] | 11 | 18 | 46 | 51 |
Tax effect | 4 | 7 | 17 | 19 | |
Amounts reclassified, net of tax | 7 | 11 | 29 | 32 | |
Unrealized Net Gains (Losses) on Cash Flow Hedges | |||||
AOCI, Net of Tax [Roll Forward] | |||||
Beginning balance | (128) | (247) | (92) | (83) | |
OCI before reclassifications, net of tax | 1 | 23 | (26) | (154) | |
Amounts reclassified from AOCI: | |||||
Net change in AOCI | 9 | 21 | (27) | (143) | |
Ending balance | (119) | (226) | (119) | (226) | |
Unrealized Net Gains (Losses) on Cash Flow Hedges | Amounts reclassified from AOCI | |||||
Amounts reclassified from AOCI: | |||||
Before tax | [1] | 13 | (3) | (1) | 18 |
Tax effect | 5 | (1) | 0 | 7 | |
Amounts reclassified, net of tax | 8 | (2) | (1) | 11 | |
Unrealized Net Gains (Losses) on AFS Securities | |||||
AOCI, Net of Tax [Roll Forward] | |||||
Beginning balance | (187) | 263 | (259) | (34) | |
OCI before reclassifications, net of tax | 19 | (72) | 99 | 280 | |
Amounts reclassified from AOCI: | |||||
Net change in AOCI | 18 | (73) | 90 | 224 | |
Ending balance | (169) | 190 | (169) | 190 | |
Unrealized Net Gains (Losses) on AFS Securities | Amounts reclassified from AOCI | |||||
Amounts reclassified from AOCI: | |||||
Before tax | [1] | (2) | (2) | (15) | (90) |
Tax effect | (1) | (1) | (6) | (34) | |
Amounts reclassified, net of tax | (1) | (1) | (9) | (56) | |
FDIC's Share of Unrealized (Gains) Losses on AFS Securities | |||||
AOCI, Net of Tax [Roll Forward] | |||||
Beginning balance | (137) | (169) | |||
OCI before reclassifications, net of tax | 137 | 148 | |||
Amounts reclassified from AOCI: | |||||
Net change in AOCI | 137 | 169 | |||
Ending balance | 0 | 0 | |||
FDIC's Share of Unrealized (Gains) Losses on AFS Securities | Amounts reclassified from AOCI | |||||
Amounts reclassified from AOCI: | |||||
Before tax | [1] | 0 | 33 | ||
Tax effect | 0 | 12 | |||
Amounts reclassified, net of tax | 0 | 21 | |||
Other, net | |||||
AOCI, Net of Tax [Roll Forward] | |||||
Beginning balance | (15) | (15) | (17) | (19) | |
OCI before reclassifications, net of tax | 2 | 0 | 4 | 3 | |
Amounts reclassified from AOCI: | |||||
Net change in AOCI | 2 | 0 | 4 | 4 | |
Ending balance | (13) | (15) | (13) | (15) | |
Other, net | Amounts reclassified from AOCI | |||||
Amounts reclassified from AOCI: | |||||
Before tax | [1] | 0 | 1 | 0 | 2 |
Tax effect | 0 | 1 | 0 | 1 | |
Amounts reclassified, net of tax | 0 | 0 | 0 | 1 | |
Total | |||||
AOCI, Net of Tax [Roll Forward] | |||||
Beginning balance | (1,073) | (837) | (1,132) | (1,028) | |
OCI before reclassifications, net of tax | 23 | 79 | 77 | 269 | |
Amounts reclassified from AOCI: | |||||
Net change in AOCI | 37 | 87 | 96 | 278 | |
Ending balance | (1,036) | (750) | (1,036) | (750) | |
Total | Amounts reclassified from AOCI | |||||
Amounts reclassified from AOCI: | |||||
Before tax | [1] | 22 | 14 | 30 | 14 |
Tax effect | 8 | 6 | 11 | 5 | |
Amounts reclassified, net of tax | $ 14 | $ 8 | $ 19 | $ 9 | |
[1] | Amounts related to unrecognized net pension and postretirement costs are included in personnel expense, amounts related to unrealized net gains (losses) on cash flow hedges are included in net interest income, amounts related to unrealized net gains (losses) on AFS securities are included in net interest income and securities gains/losses when realized, amounts related to FDIC's share of unrealized gains (losses) on AFS securities are included in FDIC loss share income, net and amounts related to other, net are primarily included in net interest income in the Consolidated Statements of Income. |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 31.20% | 29.80% | 28.70% | 30.00% |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Qualified Plans | |
Qualified Plan Contributions | |
Discretionary contributions | $ 347 |
Benefit Plans - Benefit Plan Co
Benefit Plans - Benefit Plan Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Qualified Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 45 | $ 44 | $ 143 | $ 130 |
Interest cost | 43 | 41 | 130 | 122 |
Estimated return on plan assets | (93) | (82) | (278) | (244) |
Amortization and other | 14 | 18 | 47 | 51 |
Net periodic benefit cost | 9 | 21 | 42 | 59 |
Nonqualified Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 3 | 9 | 9 |
Interest cost | 5 | 5 | 14 | 14 |
Estimated return on plan assets | 0 | 0 | 0 | 0 |
Amortization and other | 4 | 3 | 10 | 9 |
Net periodic benefit cost | $ 11 | $ 11 | $ 33 | $ 32 |
Commitments and Contingencies -
Commitments and Contingencies - Summary (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit | $ 2,658 | $ 2,786 |
Carrying amount of the liability for letters of credit | 22 | 27 |
Investments in affordable housing and historic building rehabilitation projects: | ||
Carrying amount | 2,018 | 1,719 |
Amount of future funding commitments included in carrying amount | 971 | 738 |
Lending exposure | 547 | 495 |
Tax credits subject to recapture | 450 | 413 |
Private equity investments | 426 | 362 |
Future funding commitments to private equity investments | $ 136 | $ 197 |
Commitments and Contingencies73
Commitments and Contingencies - Pledged Assets (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Pledged securities | $ 14,457 | $ 15,549 |
Pledged loans | $ 74,411 | $ 75,015 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Non-agency MBS | Re-REMIC Trusts | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Difference between fair value of securities held and the fair vaue of the underlying securities, percentage | 18.50% |
Private Equity Investments | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Weighted average remaining life of private equity and similar investments | 3 years |
Private Equity Investments | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unobservable inputs, EBITDA multiples | 5 |
Private Equity Investments | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unobservable inputs, EBITDA multiples | 12 |
Private Equity Investments | Weighted average | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unobservable inputs, EBITDA multiples | 8 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Trading securities | $ 1,089 | $ 748 |
AFS securities | 23,184 | 26,926 |
LHFS at fair value | 1,217 | 1,716 |
MSRs | 1,044 | 1,052 |
Derivative assets | 528 | 822 |
Private equity investments | 413 | 362 |
Total assets | 27,475 | 31,626 |
Liabilities [Abstract] | ||
Derivative liabilities | 731 | 1,003 |
Securities sold short | 82 | 137 |
Total liabilities | 813 | 1,140 |
Level 1 | ||
Assets | ||
Trading securities | 346 | 324 |
AFS securities | 5 | 8 |
LHFS at fair value | 0 | 0 |
MSRs | 0 | 0 |
Derivative assets | 0 | 0 |
Private equity investments | 0 | 0 |
Total assets | 351 | 332 |
Liabilities [Abstract] | ||
Derivative liabilities | 1 | 0 |
Securities sold short | 0 | 0 |
Total liabilities | 1 | 0 |
Level 2 | ||
Assets | ||
Trading securities | 743 | 424 |
AFS securities | 22,722 | 26,411 |
LHFS at fair value | 1,217 | 1,716 |
MSRs | 0 | 0 |
Derivative assets | 520 | 815 |
Private equity investments | 0 | 0 |
Total assets | 25,202 | 29,366 |
Liabilities [Abstract] | ||
Derivative liabilities | 727 | 983 |
Securities sold short | 82 | 137 |
Total liabilities | 809 | 1,120 |
Level 3 | ||
Assets | ||
Trading securities | 0 | 0 |
AFS securities | 457 | 507 |
LHFS at fair value | 0 | 0 |
MSRs | 1,044 | 1,052 |
Derivative assets | 8 | 7 |
Private equity investments | 413 | 362 |
Total assets | 1,922 | 1,928 |
Liabilities [Abstract] | ||
Derivative liabilities | 3 | 20 |
Securities sold short | 0 | 0 |
Total liabilities | 3 | 20 |
U.S. Treasury | ||
Assets | ||
AFS securities | 2,111 | 2,587 |
U.S. Treasury | Level 1 | ||
Assets | ||
AFS securities | 0 | 0 |
U.S. Treasury | Level 2 | ||
Assets | ||
AFS securities | 2,111 | 2,587 |
U.S. Treasury | Level 3 | ||
Assets | ||
AFS securities | 0 | 0 |
GSE | ||
Assets | ||
AFS securities | 182 | 180 |
GSE | Level 1 | ||
Assets | ||
AFS securities | 0 | 0 |
GSE | Level 2 | ||
Assets | ||
AFS securities | 182 | 180 |
GSE | Level 3 | ||
Assets | ||
AFS securities | 0 | 0 |
Agency MBS | ||
Assets | ||
AFS securities | 18,676 | 21,264 |
Agency MBS | Level 1 | ||
Assets | ||
AFS securities | 0 | 0 |
Agency MBS | Level 2 | ||
Assets | ||
AFS securities | 18,676 | 21,264 |
Agency MBS | Level 3 | ||
Assets | ||
AFS securities | 0 | 0 |
States and political subdivisions | ||
Assets | ||
AFS securities | 1,599 | 2,205 |
States and political subdivisions | Level 1 | ||
Assets | ||
AFS securities | 0 | 0 |
States and political subdivisions | Level 2 | ||
Assets | ||
AFS securities | 1,599 | 2,205 |
States and political subdivisions | Level 3 | ||
Assets | ||
AFS securities | 0 | 0 |
Non-agency MBS | ||
Assets | ||
AFS securities | 608 | 679 |
Non-agency MBS | Level 1 | ||
Assets | ||
AFS securities | 0 | 0 |
Non-agency MBS | Level 2 | ||
Assets | ||
AFS securities | 151 | 172 |
Non-agency MBS | Level 3 | ||
Assets | ||
AFS securities | 457 | 507 |
Other | ||
Assets | ||
AFS securities | 8 | 11 |
Other | Level 1 | ||
Assets | ||
AFS securities | 5 | 8 |
Other | Level 2 | ||
Assets | ||
AFS securities | 3 | 3 |
Other | Level 3 | ||
Assets | ||
AFS securities | 0 | 0 |
Interest rate contracts | ||
Assets | ||
Derivative assets | 523 | 814 |
Liabilities [Abstract] | ||
Derivative liabilities | 725 | 998 |
Interest rate contracts | Level 1 | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 1 | 0 |
Interest rate contracts | Level 2 | ||
Assets | ||
Derivative assets | 515 | 807 |
Liabilities [Abstract] | ||
Derivative liabilities | 721 | 978 |
Interest rate contracts | Level 3 | ||
Assets | ||
Derivative assets | 8 | 7 |
Liabilities [Abstract] | ||
Derivative liabilities | 3 | 20 |
Foreign exchange contracts | ||
Assets | ||
Derivative assets | 5 | 8 |
Liabilities [Abstract] | ||
Derivative liabilities | 6 | 5 |
Foreign exchange contracts | Level 1 | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Foreign exchange contracts | Level 2 | ||
Assets | ||
Derivative assets | 5 | 8 |
Liabilities [Abstract] | ||
Derivative liabilities | 6 | 5 |
Foreign exchange contracts | Level 3 | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Disclosures - Rollfo
Fair Value Disclosures - Rollforward of Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Non-agency MBS | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance at beginning of period | $ 474 | $ 559 | $ 507 | $ 626 | |
Included in earnings | [1] | 8 | 6 | 31 | 38 |
Included in unrealized net holding gains (losses) in OCI | (7) | (5) | (27) | (50) | |
Purchases | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Settlements | (18) | (21) | (54) | (75) | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |
Adoption of fair value option for commercial MSRs | 0 | ||||
Balance at end of period | 457 | 539 | 457 | 539 | |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 9 | 6 | 31 | 38 | |
MSRs | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance at beginning of period | 1,052 | 785 | 1,052 | 880 | |
Included in earnings | [1] | 4 | 42 | 24 | (154) |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Issuances | 30 | 44 | 93 | 100 | |
Sales | 0 | 0 | 0 | 0 | |
Settlements | (42) | (43) | (125) | (121) | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |
Adoption of fair value option for commercial MSRs | 123 | ||||
Balance at end of period | 1,044 | 828 | 1,044 | 828 | |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 4 | 42 | 24 | (154) | |
Net Derivatives | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance at beginning of period | 3 | 33 | (13) | 4 | |
Included in earnings | [1] | 11 | 45 | 30 | 101 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Issuances | 15 | 22 | 39 | 85 | |
Sales | 0 | 0 | 0 | 0 | |
Settlements | (24) | (80) | (51) | (170) | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |
Adoption of fair value option for commercial MSRs | 0 | ||||
Balance at end of period | 5 | 20 | 5 | 20 | |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 5 | 20 | 5 | 20 | |
Private Equity Investments | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance at beginning of period | 394 | 353 | 362 | 289 | |
Included in earnings | [1] | 21 | 3 | 26 | 6 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | 0 | 0 | |
Purchases | 9 | 15 | 84 | 89 | |
Issuances | 0 | 0 | 0 | 0 | |
Sales | (11) | (29) | (41) | (37) | |
Settlements | 0 | (2) | (5) | (7) | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | (13) | 0 | |
Adoption of fair value option for commercial MSRs | 0 | ||||
Balance at end of period | 413 | 340 | 413 | 340 | |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | $ 16 | $ 1 | $ 16 | $ 1 | |
[1] | Amounts related to non-agency MBS are included in interest income, amounts related to MSRs and net derivatives are primarily included in mortgage banking income and amounts related to private equity investments are included in other income in the Consolidated Statements of Income. |
Fair Value Disclosures - Loans
Fair Value Disclosures - Loans Held for Sale (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Fair Value | $ 1,217 | $ 1,716 |
Aggregate UPB | 1,197 | 1,736 |
Difference | $ 20 | $ (20) |
Fair Value Disclosures - Measur
Fair Value Disclosures - Measured on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Impaired loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value | $ 198 | $ 314 | $ 198 | $ 314 |
Valuation Adjustments | (4) | (22) | (18) | (76) |
Foreclosed real estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value | 46 | 58 | 46 | 58 |
Valuation Adjustments | $ (66) | $ (59) | $ (192) | $ (160) |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Liabilities Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||
HTM securities | $ 23,447 | $ 16,680 |
Loans and leases HFI, net of ALLL | 141,316 | 141,833 |
Financial liabilities: | ||
Deposits | 156,135 | 160,234 |
Long-term debt | 20,863 | 21,965 |
Carrying Amount | ||
Financial assets: | ||
HTM securities | 23,447 | 16,680 |
Loans and leases HFI, net of ALLL | 141,316 | 141,833 |
Financial liabilities: | ||
Deposits | 156,135 | 160,234 |
Long-term debt | 20,863 | 21,965 |
Fair Value | ||
Financial assets: | ||
HTM securities | 23,392 | 16,546 |
Loans and leases HFI, net of ALLL | 141,258 | 142,044 |
Financial liabilities: | ||
Deposits | 156,234 | 160,403 |
Long-term debt | 21,117 | 22,423 |
Fair Value | Level 2 | ||
Financial assets: | ||
HTM securities | 23,392 | 16,546 |
Loans and leases HFI, net of ALLL | 0 | 0 |
Financial liabilities: | ||
Deposits | 156,234 | 160,403 |
Long-term debt | 21,117 | 22,423 |
Fair Value | Level 3 | ||
Financial assets: | ||
HTM securities | 0 | 0 |
Loans and leases HFI, net of ALLL | 141,258 | 142,044 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Long-term debt | $ 0 | $ 0 |
Fair Value Disclosures - Off-Ba
Fair Value Disclosures - Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Commitments to extend, originate or purchase credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | $ 67,529 | $ 64,395 |
Fair Value | 274 | 250 |
Residential mortgage loans sold with recourse | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | 514 | 578 |
Fair Value | 6 | 7 |
Other loans sold with recourse | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | 4,307 | 4,240 |
Fair Value | 6 | 7 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | 2,658 | 2,786 |
Fair Value | $ 22 | $ 27 |
Derivative Financial Instrume81
Derivative Financial Instruments - Classifications and Hedging Relationships (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 72,484 | $ 78,277 |
Fair Value, Gain | 528 | 822 |
Fair Value, Loss | (731) | (1,003) |
Derivative Asset [Abstract] | ||
Amounts subject to master netting arrangements not offset due to policy election | (306) | (443) |
Cash collateral (received) posted | (40) | (119) |
Net amount | 182 | 260 |
Derivative Liability [Abstract] | ||
Amounts subject to master netting arrangements not offset due to policy election | 306 | 443 |
Cash collateral (received) posted | 375 | 450 |
Net amount | (50) | (110) |
Cash flow hedges | Interest rate contracts | Pay Fixed Swaps [Member] | 3 mo. LIBOR funding | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 6,500 | 7,050 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | (200) | (187) |
Fair value hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 18,769 | 15,466 |
Fair Value, Gain | 160 | 206 |
Fair Value, Loss | (176) | (186) |
Fair value hedges | Interest rate contracts | Pay Fixed Swaps [Member] | Commercial loans | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 374 | 346 |
Fair Value, Gain | 3 | 4 |
Fair Value, Loss | (1) | (2) |
Fair value hedges | Interest rate contracts | Pay Fixed Swaps [Member] | Municipal securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 231 | 231 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | (81) | (83) |
Fair value hedges | Interest rate contracts | Receive Fixed Swaps [Member] | Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 12,827 | 12,099 |
Fair Value, Gain | 157 | 202 |
Fair Value, Loss | (93) | (100) |
Fair value hedges | Interest rate contracts | Options | Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 5,337 | 2,790 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | (1) | (1) |
Not designated as hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 47,215 | 55,761 |
Fair Value, Gain | 368 | 616 |
Fair Value, Loss | (355) | (630) |
Not designated as hedges | Client-related and other risk management | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 30,218 | 28,688 |
Fair Value, Gain | 247 | 319 |
Fair Value, Loss | (265) | (336) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Pay Fixed Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 10,930 | 10,263 |
Fair Value, Gain | 35 | 43 |
Fair Value, Loss | (212) | (252) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Receive Fixed Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 10,800 | 9,989 |
Fair Value, Gain | 195 | 235 |
Fair Value, Loss | (37) | (44) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Other Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,025 | 1,086 |
Fair Value, Gain | 2 | 2 |
Fair Value, Loss | (3) | (5) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 792 | 709 |
Fair Value, Gain | 2 | 2 |
Fair Value, Loss | (2) | (2) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Forward Commitments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 6,138 | 5,972 |
Fair Value, Gain | 8 | 29 |
Fair Value, Loss | (5) | (28) |
Not designated as hedges | Client-related and other risk management | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 533 | 669 |
Fair Value, Gain | 5 | 8 |
Fair Value, Loss | (6) | (5) |
Not designated as hedges | Mortgage banking | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 5,155 | 9,351 |
Fair Value, Gain | 18 | 60 |
Fair Value, Loss | (6) | (35) |
Not designated as hedges | Mortgage banking | Interest rate contracts | Interest Rate Lock Commitments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,528 | 2,219 |
Fair Value, Gain | 8 | 7 |
Fair Value, Loss | (3) | (20) |
Not designated as hedges | Mortgage banking | Interest rate contracts | When Issued Securities, Forward Rate Agreements And Forward Commitments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 3,434 | 6,683 |
Fair Value, Gain | 8 | 51 |
Fair Value, Loss | (3) | (14) |
Not designated as hedges | Mortgage banking | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 193 | 449 |
Fair Value, Gain | 2 | 2 |
Fair Value, Loss | 0 | (1) |
Not designated as hedges | MSRs | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 11,842 | 17,722 |
Fair Value, Gain | 103 | 237 |
Fair Value, Loss | (84) | (259) |
Not designated as hedges | MSRs | Interest rate contracts | Pay Fixed Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 3,080 | 3,768 |
Fair Value, Gain | 6 | 56 |
Fair Value, Loss | (38) | (7) |
Not designated as hedges | MSRs | Interest rate contracts | Receive Fixed Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 4,026 | 5,034 |
Fair Value, Gain | 48 | 18 |
Fair Value, Loss | (40) | (236) |
Not designated as hedges | MSRs | Interest rate contracts | Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 2,930 | 5,710 |
Fair Value, Gain | 48 | 160 |
Fair Value, Loss | (1) | (8) |
Not designated as hedges | MSRs | Interest rate contracts | When Issued Securities, Forward Rate Agreements And Forward Commitments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,776 | 3,210 |
Fair Value, Gain | 1 | 3 |
Fair Value, Loss | (5) | (8) |
Not designated as hedges | MSRs | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 30 | 0 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | $ 0 | $ 0 |
Derivative Financial Instrume82
Derivative Financial Instruments - Effect on the Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedge ineffectiveness | The ineffective portion was immaterial for all periods presented. | |||
Not designated as hedges | ||||
Not Designated as Hedges | ||||
Pre-tax Gain (Loss) Recognized in Income | $ 23 | $ 34 | $ 43 | $ 257 |
Cash flow hedges | Interest rate contracts | ||||
Cash Flow Hedges | ||||
Pre-tax Gain (Loss) Recognized in OCI | 1 | 38 | (42) | (245) |
Cash flow hedges | Interest rate contracts | Total interest expense | ||||
Cash Flow Hedges | ||||
Pre-tax Gain (Loss) Reclassified from AOCI into Income | (13) | 3 | 1 | (18) |
Fair value hedges | Interest rate contracts | ||||
Fair Value Hedges | ||||
Pre-tax Gain (Loss) Recognized in Income | 27 | 53 | 106 | 164 |
Fair value hedges | Interest rate contracts | Total interest income | ||||
Fair Value Hedges | ||||
Pre-tax Gain (Loss) Recognized in Income | (3) | (5) | (12) | (13) |
Fair value hedges | Interest rate contracts | Total interest expense | ||||
Fair Value Hedges | ||||
Pre-tax Gain (Loss) Recognized in Income | 30 | 58 | 118 | 177 |
Client-related and other risk management | Interest rate contracts | Other noninterest income | Not designated as hedges | ||||
Not Designated as Hedges | ||||
Pre-tax Gain (Loss) Recognized in Income | 11 | 15 | 38 | 23 |
Client-related and other risk management | Foreign exchange contracts | Other noninterest income | Not designated as hedges | ||||
Not Designated as Hedges | ||||
Pre-tax Gain (Loss) Recognized in Income | 5 | (1) | 0 | 4 |
Mortgage banking | Interest rate contracts | Mortgage banking income | Not designated as hedges | ||||
Not Designated as Hedges | ||||
Pre-tax Gain (Loss) Recognized in Income | (3) | 17 | (8) | (2) |
MSRs | Interest rate contracts | Mortgage banking income | Not designated as hedges | ||||
Not Designated as Hedges | ||||
Pre-tax Gain (Loss) Recognized in Income | $ 10 | $ 3 | $ 13 | $ 232 |
Derivative Financial Instrume83
Derivative Financial Instruments - Cash Flow and Fair Value Hedges (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Cash flow hedges | ||
Derivative [Line Items] | ||
Net unrecognized after-tax loss on active hedges recorded in AOCI | $ (125) | $ (118) |
Net unrecognized after-tax gain on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) | 6 | 26 |
Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months | $ (34) | $ (4) |
Maximum length of time entity has hedged portion of variable cash flows for forecasted transactions (in years) | 5 years | 6 years |
Fair value hedges | ||
Derivative [Line Items] | ||
Unrecognized pre-tax net gain on terminated hedges (to be recognized as interest primarily through 2019) | $ 142 | $ 169 |
Portion of pre-tax net gain on terminated hedges to be recognized as a change in interest during the next 12 months | $ 50 | $ 56 |
Derivative Financial Instrume84
Derivative Financial Instruments - Dealer Counterparties and Central Clearing Parties (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Credit Derivatives [Line Items] | ||
Cash collateral received from dealer counterparties | $ 40 | $ 119 |
Cash collateral posted to counterparties | 375 | 450 |
Dealer Counterparties [Member] | ||
Credit Derivatives [Line Items] | ||
Cash collateral received from dealer counterparties | 41 | 123 |
Derivatives in a net gain position secured by that collateral | 42 | 123 |
Unsecured positions in a net gain with dealer counterparties after collateral postings | 2 | 4 |
Cash collateral posted to counterparties | 163 | 138 |
Derivatives in a net loss position secured by that collateral | 163 | 144 |
Additional collateral that would have been posted had BB&T's credit ratings dropped below investment grade | 1 | 8 |
Central Clearing Parties [Member] | ||
Credit Derivatives [Line Items] | ||
Cash collateral posted to counterparties | 222 | 313 |
Derivatives in a net loss position secured by that collateral | 213 | 318 |
Securities pledged to central clearing parties | $ 100 | $ 119 |
Computation of EPS (Details)
Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income available to common shareholders | $ 597 | $ 599 | $ 1,606 | $ 1,667 |
Weighted average number of common shares (in shares) | 794,558 | 812,521 | 804,424 | 802,694 |
Effect of dilutive outstanding equity-based awards (in shares) | 11,566 | 10,585 | 11,605 | 9,713 |
Weighted average number of diluted common shares (in shares) | 806,124 | 823,106 | 816,029 | 812,407 |
Basic EPS (in dollars per share) | $ 0.75 | $ 0.74 | $ 2 | $ 2.08 |
Diluted EPS (in dollars per share) | $ 0.74 | $ 0.73 | $ 1.97 | $ 2.05 |
Anti-dilutive awards (in shares) | 184 | 5,416 | 222 | 6,088 |
Operating Segments - Narrative
Operating Segments - Narrative (Details) - Financial Services $ in Millions | 1 Months Ended |
Jan. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |
Loans transferred | $ 218 |
Deposits transferred | $ 2,000 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | $ 1,647 | $ 1,610 | $ 4,891 | $ 4,756 | ||
Allocated provision for credit losses | 126 | 148 | 409 | 443 | ||
Segment net interest income after provision | 1,521 | 1,462 | 4,482 | 4,313 | ||
Noninterest income | 1,166 | 1,164 | 3,557 | 3,310 | ||
Noninterest expense | 1,745 | 1,711 | 5,589 | 5,053 | ||
Income before income taxes | 942 | 915 | 2,450 | 2,570 | ||
Provision for income taxes | 294 | 273 | 702 | 771 | ||
Net income | 648 | 642 | 1,748 | 1,799 | ||
Identifiable assets (period end) | 220,340 | 222,622 | 220,340 | 222,622 | $ 219,276 | |
Community Banking | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 647 | 570 | 1,852 | 1,631 | ||
Residential Mortgage Banking | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 332 | 359 | 996 | 1,045 | ||
Dealer Financial Services | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 242 | 229 | 727 | 684 | ||
Specialized Lending | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 189 | 177 | 545 | 517 | ||
Insurance Holdings | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 1 | 1 | 2 | 2 | ||
Financial Services | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 81 | 65 | 222 | 196 | ||
Other, Treasury & Corporate (1) | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | [1] | 155 | 209 | 547 | 681 | |
Operating Segments | Community Banking | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 1,056 | 981 | 3,088 | 2,841 | ||
Allocated provision for credit losses | 23 | (3) | 111 | 10 | ||
Segment net interest income after provision | 1,033 | 984 | 2,977 | 2,831 | ||
Noninterest income | 373 | 360 | 1,104 | 1,027 | ||
Noninterest expense | 789 | 803 | 2,398 | 2,356 | ||
Income before income taxes | 617 | 541 | 1,683 | 1,502 | ||
Provision for income taxes | 221 | 197 | 602 | 547 | ||
Net income | 396 | 344 | 1,081 | 955 | ||
Identifiable assets (period end) | 74,493 | 73,125 | 74,493 | 73,125 | ||
Operating Segments | Residential Mortgage Banking | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 123 | 144 | 363 | 399 | ||
Allocated provision for credit losses | 2 | 9 | 17 | 31 | ||
Segment net interest income after provision | 121 | 135 | 346 | 368 | ||
Noninterest income | 86 | 117 | 234 | 272 | ||
Noninterest expense | 100 | 40 | 314 | 259 | ||
Income before income taxes | 107 | 212 | 266 | 381 | ||
Provision for income taxes | 40 | 80 | 99 | 144 | ||
Net income | 67 | 132 | 167 | 237 | ||
Identifiable assets (period end) | 33,213 | 36,652 | 33,213 | 36,652 | ||
Operating Segments | Dealer Financial Services | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 196 | 190 | 590 | 566 | ||
Allocated provision for credit losses | 78 | 76 | 254 | 210 | ||
Segment net interest income after provision | 118 | 114 | 336 | 356 | ||
Noninterest income | 0 | 1 | 0 | 2 | ||
Noninterest expense | 57 | 50 | 169 | 143 | ||
Income before income taxes | 61 | 65 | 167 | 215 | ||
Provision for income taxes | 23 | 25 | 62 | 82 | ||
Net income | 38 | 40 | 105 | 133 | ||
Identifiable assets (period end) | 15,239 | 15,090 | 15,239 | 15,090 | ||
Operating Segments | Specialized Lending | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 108 | 109 | 315 | 316 | ||
Allocated provision for credit losses | 15 | 18 | 43 | 51 | ||
Segment net interest income after provision | 93 | 91 | 272 | 265 | ||
Noninterest income | 71 | 80 | 210 | 212 | ||
Noninterest expense | 94 | 92 | 278 | 259 | ||
Income before income taxes | 70 | 79 | 204 | 218 | ||
Provision for income taxes | 16 | 19 | 45 | 50 | ||
Net income | 54 | 60 | 159 | 168 | ||
Identifiable assets (period end) | 18,854 | 17,823 | 18,854 | 17,823 | ||
Operating Segments | Insurance Holdings | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 1 | 0 | 3 | (2) | ||
Allocated provision for credit losses | 0 | 0 | 0 | 0 | ||
Segment net interest income after provision | 1 | 0 | 3 | (2) | ||
Noninterest income | 399 | 412 | 1,344 | 1,298 | ||
Noninterest expense | 378 | 375 | 1,163 | 1,109 | ||
Income before income taxes | 22 | 37 | 184 | 187 | ||
Provision for income taxes | 9 | 16 | 70 | 72 | ||
Net income | 13 | 21 | 114 | 115 | ||
Identifiable assets (period end) | 3,360 | 3,342 | 3,360 | 3,342 | ||
Operating Segments | Financial Services | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 161 | 156 | 485 | 452 | ||
Allocated provision for credit losses | 7 | 32 | (9) | 128 | ||
Segment net interest income after provision | 154 | 124 | 494 | 324 | ||
Noninterest income | 251 | 235 | 711 | 654 | ||
Noninterest expense | 237 | 230 | 709 | 677 | ||
Income before income taxes | 168 | 129 | 496 | 301 | ||
Provision for income taxes | 62 | 48 | 183 | 113 | ||
Net income | 106 | 81 | 313 | 188 | ||
Identifiable assets (period end) | 18,774 | 17,570 | 18,774 | 17,570 | ||
Operating Segments | Other, Treasury & Corporate (1) | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | [1] | 2 | 30 | 47 | 184 | |
Allocated provision for credit losses | [1] | 1 | 16 | (7) | 13 | |
Segment net interest income after provision | [1] | 1 | 14 | 54 | 171 | |
Noninterest income | [1] | (14) | (41) | (46) | (155) | |
Noninterest expense | [1] | 90 | 121 | 558 | 250 | |
Income before income taxes | [1] | (103) | (148) | (550) | (234) | |
Provision for income taxes | [1] | (77) | (112) | (359) | (237) | |
Net income | [1] | (26) | (36) | (191) | 3 | |
Identifiable assets (period end) | [1] | 56,407 | 59,020 | 56,407 | 59,020 | |
Intersegment Eliminations | Community Banking | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 409 | 411 | 1,236 | 1,210 | ||
Intersegment Eliminations | Residential Mortgage Banking | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | (209) | (215) | (633) | (646) | ||
Intersegment Eliminations | Dealer Financial Services | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | (46) | (39) | (137) | (118) | ||
Intersegment Eliminations | Specialized Lending | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | (81) | (68) | (230) | (201) | ||
Intersegment Eliminations | Insurance Holdings | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 0 | (1) | 1 | (4) | ||
Intersegment Eliminations | Financial Services | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 80 | 91 | 263 | 256 | ||
Intersegment Eliminations | Other, Treasury & Corporate (1) | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | [1] | $ (153) | $ (179) | $ (500) | $ (497) | |
[1] | Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure. |