Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 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 | FY | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 778,291,454 | ||
Entity Public Float | $ 36.5 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 2,243 | $ 1,897 |
Interest-bearing deposits with banks | 343 | 1,895 |
Cash equivalents | 127 | 144 |
Restricted cash | 370 | 488 |
AFS securities at fair value | 24,547 | 26,926 |
HTM securities (fair value of $22,837 and $16,546 at December 31, 2017 and 2016, respectively) | 23,027 | 16,680 |
LHFS at fair value | 1,099 | 1,716 |
Loans and leases | 143,701 | 143,322 |
ALLL | (1,490) | (1,489) |
Loans and leases, net of ALLL | 142,211 | 141,833 |
Premises and equipment | 2,055 | 2,107 |
Goodwill | 9,618 | 9,638 |
CDI and other intangible assets | 711 | 854 |
MSRs at fair value | 1,056 | 1,052 |
Other assets | 14,235 | 14,046 |
Total assets | 221,642 | 219,276 |
Deposits: | ||
Noninterest-bearing deposits | 53,767 | 50,697 |
Interest-bearing deposits | 103,604 | 109,537 |
Total deposits | 157,371 | 160,234 |
Short-term borrowings | 4,938 | 1,406 |
Long-term debt | 23,648 | 21,965 |
Accounts payable and other liabilities | 5,990 | 5,745 |
Total liabilities | 191,947 | 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 | 3,910 | 4,047 |
Additional paid-in capital | 7,893 | 9,104 |
Retained earnings | 16,259 | 14,809 |
AOCI, net of deferred income taxes | (1,467) | (1,132) |
Noncontrolling interests | 47 | 45 |
Total shareholders’ equity | 29,695 | 29,926 |
Total liabilities and shareholders’ equity | $ 221,642 | $ 219,276 |
Common shares outstanding | 782,006 | 809,475 |
Common shares authorized | 2,000,000 | 2,000,000 |
Preferred shares outstanding | 126 | 126 |
Preferred shares authorized | 5,000 | 5,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
HTM securities, fair value | $ 22,837 | $ 16,546 |
Preferred stock, par value per share (in usd per share) | $ 5 | $ 5 |
Preferred stock, liquidation preference per share (in usd per share) | 25,000 | 25,000 |
Common stock, par value per share (in usd per share) | $ 5 | $ 5 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Income | |||
Interest and fees on loans and leases | $ 6,230 | $ 5,985 | $ 5,347 |
Interest and dividends on securities | 1,092 | 1,029 | 941 |
Interest on other earning assets | 52 | 52 | 39 |
Total interest income | 7,374 | 7,066 | 6,327 |
Interest Expense | |||
Interest on deposits | 344 | 251 | 233 |
Interest on short-term borrowings | 41 | 9 | 4 |
Interest on long-term debt | 454 | 485 | 498 |
Total interest expense | 839 | 745 | 735 |
Net Interest Income | 6,535 | 6,321 | 5,592 |
Provision for credit losses | 547 | 572 | 428 |
Net Interest Income After Provision for Credit Losses | 5,988 | 5,749 | 5,164 |
Noninterest Income | |||
Insurance income | 1,754 | 1,713 | 1,596 |
Service charges on deposits | 706 | 664 | 631 |
Mortgage banking income | 415 | 463 | 455 |
Investment banking and brokerage fees and commissions | 410 | 408 | 398 |
Trust and investment advisory revenues | 278 | 266 | 240 |
Bankcard fees and merchant discounts | 271 | 237 | 218 |
Checkcard fees | 214 | 195 | 174 |
Operating lease income | 146 | 137 | 124 |
Income from bank-owned life insurance | 122 | 123 | 113 |
FDIC loss share income, net | 0 | (142) | (253) |
Other income | 467 | 362 | 326 |
Securities gains (losses), net | |||
Gross realized gains | 17 | 46 | 41 |
Gross realized losses | (18) | 0 | (40) |
OTTI charges | 0 | 0 | (2) |
Non-credit portion recognized in OCI | 0 | 0 | (2) |
Total securities gains (losses), net | (1) | 46 | (3) |
Total noninterest income | 4,782 | 4,472 | 4,019 |
Noninterest Expense | |||
Personnel expense | 4,121 | 3,964 | 3,469 |
Occupancy and equipment expense | 784 | 786 | 708 |
Software expense | 242 | 224 | 192 |
Outside IT services | 160 | 186 | 135 |
Regulatory charges | 153 | 145 | 101 |
Amortization of intangibles | 142 | 150 | 105 |
Loan-related expense | 130 | 95 | 150 |
Professional services | 123 | 102 | 130 |
Merger-related and restructuring charges, net | 115 | 171 | 165 |
Loss (gain) on early extinguishment of debt | 392 | (1) | 172 |
Other expense | 1,082 | 899 | 939 |
Total noninterest expense | 7,444 | 6,721 | 6,266 |
Earnings | |||
Income (loss) before income taxes | 3,326 | 3,500 | 2,917 |
Provision for income taxes | 911 | 1,058 | 794 |
Net income | 2,415 | 2,442 | 2,123 |
Noncontrolling interests | 21 | 16 | 39 |
Dividends on preferred stock | 174 | 167 | 148 |
Net income available to common shareholders | $ 2,220 | $ 2,259 | $ 1,936 |
Basic EPS (in usd per share) | $ 2.78 | $ 2.81 | $ 2.59 |
Diluted EPS (in usd per share) | 2.74 | 2.77 | 2.56 |
Cash dividends declared per share (in usd per share) | $ 1.26 | $ 1.15 | $ 1.05 |
Basic weighted average shares outstanding | 799,217 | 804,680 | 748,010 |
Diluted weighted average shares outstanding | 810,977 | 814,916 | 757,765 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 2,415 | $ 2,442 | $ 2,123 |
OCI, Net of Tax: | |||
Change in unrecognized net pension and postretirement costs | (84) | (41) | (97) |
Change in unrealized net gains (losses) on cash flow hedges | 18 | (9) | (29) |
Change in unrealized net gains (losses) on AFS securities | (27) | (225) | (186) |
Change in FDIC's share of unrealized gains/losses on AFS securities | 0 | 169 | 38 |
Other, net | 5 | 2 | (3) |
Total OCI | (88) | (104) | (277) |
Total comprehensive income | 2,327 | 2,338 | 1,846 |
Income Tax Effect of Items Included in OCI: | |||
Change in unrecognized net pension and postretirement costs | (15) | (20) | (59) |
Change in unrealized net gains (losses) on cash flow hedges | 7 | (4) | (18) |
Change in unrealized net gains (losses) on AFS securities | (27) | (130) | (120) |
Change in FDIC 's share of unrealized gains/losses on AFS securities | 0 | 98 | 25 |
Other, net | $ 0 | $ 1 | $ 3 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | AOCI | Noncontrolling Interests |
Beginning balance, Shares at Dec. 31, 2014 | 720,698 | ||||||
Beginning balance at Dec. 31, 2014 | $ 24,377 | $ 2,603 | $ 3,603 | $ 6,517 | $ 12,317 | $ (751) | $ 88 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 2,123 | 2,084 | 39 | ||||
OCI | (277) | (277) | |||||
Stock transactions: | |||||||
Issued in business combinations, Shares | 54,000 | ||||||
Issued in business combinations | 2,188 | $ 270 | 1,918 | ||||
Issued in connection with equity awards, net, Shares | 5,639 | ||||||
Issued in connection with equity awards, net | 62 | $ 29 | 33 | ||||
Excess tax benefits in connection with equity awards | 11 | 11 | |||||
Purchase of additional ownership interest in AmRisc, LP | (222) | (219) | (3) | ||||
Cash dividends declared on common stock | (789) | (789) | |||||
Cash dividends declared on preferred stock | (148) | (148) | |||||
Equity-based compensation expense | 106 | 106 | |||||
Other, net | (91) | (1) | (90) | ||||
Ending balance, Shares at Dec. 31, 2015 | 780,337 | ||||||
Ending balance at Dec. 31, 2015 | 27,340 | 2,603 | $ 3,902 | 8,365 | 13,464 | (1,028) | 34 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 2,442 | 2,426 | 16 | ||||
OCI | (104) | (104) | |||||
Stock transactions: | |||||||
Issued in business combinations, Shares | 31,665 | ||||||
Issued in business combinations | 1,063 | $ 158 | 905 | ||||
Issued in connection with equity awards, net, Shares | 9,241 | ||||||
Issued in connection with equity awards, net | 220 | $ 46 | 174 | ||||
Excess tax benefits in connection with equity awards | 7 | 7 | |||||
Issued in connection with preferred stock offerings | 450 | 450 | |||||
Repurchase of common stock, Shares | (11,768) | ||||||
Repurchase of common stock | (520) | $ (59) | (461) | ||||
Cash dividends declared on common stock | (925) | (925) | |||||
Cash dividends declared on preferred stock | (167) | (167) | |||||
Equity-based compensation expense | 115 | 115 | |||||
Other, net | $ 5 | (1) | 11 | (5) | |||
Ending balance, Shares at Dec. 31, 2016 | 809,475 | 809,475 | |||||
Ending balance at Dec. 31, 2016 | $ 29,926 | 3,053 | $ 4,047 | 9,104 | 14,809 | (1,132) | 45 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 2,415 | 2,394 | 21 | ||||
OCI | (88) | (88) | |||||
Stock transactions: | |||||||
Issued in business combinations | 0 | ||||||
Issued in connection with equity awards, net, Shares | 8,059 | ||||||
Issued in connection with equity awards, net | 120 | $ 41 | 79 | ||||
Repurchase of common stock, Shares | (35,528) | ||||||
Repurchase of common stock | (1,613) | $ (178) | (1,435) | ||||
Cash dividends declared on common stock | (1,005) | (1,005) | |||||
Cash dividends declared on preferred stock | (174) | (174) | |||||
Equity-based compensation expense | 132 | 132 | |||||
Reclassification of certain tax effects | 0 | 247 | (247) | ||||
Other, net | $ (18) | 13 | (12) | (19) | |||
Ending balance, Shares at Dec. 31, 2017 | 782,006 | 782,006 | |||||
Ending balance at Dec. 31, 2017 | $ 29,695 | $ 3,053 | $ 3,910 | $ 7,893 | $ 16,259 | $ (1,467) | $ 47 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operating Activities: | |||
Net Income | $ 2,415 | $ 2,442 | $ 2,123 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Provision for credit losses | 547 | 572 | 428 |
Depreciation | 408 | 405 | 356 |
Loss (gain) on early extinguishment of debt | 392 | (1) | 172 |
Amortization of intangibles | 142 | 150 | 105 |
Equity-based compensation expense | 132 | 115 | 106 |
(Gain) loss on securities, net | 1 | (46) | 3 |
Net change in operating assets and liabilities: | |||
LHFS | 618 | (644) | 422 |
Trading securities | 115 | 432 | (698) |
Other assets, accounts payable and other liabilities | (15) | (18) | (14) |
Cash paid to terminate FDIC loss share agreements | 0 | (230) | 0 |
Other, net | (120) | (62) | 128 |
Net cash from operating activities | 4,635 | 3,115 | 3,131 |
Cash Flows From Investing Activities: | |||
Proceeds from sales of AFS securities | 4,934 | 4,612 | 6,302 |
Proceeds from maturities, calls and paydowns of AFS securities | 4,800 | 5,888 | 5,064 |
Purchases of AFS securities | (7,397) | (10,033) | (12,698) |
Proceeds from maturities, calls and paydowns of HTM securities | 2,580 | 7,022 | 3,791 |
Purchases of HTM securities | (8,965) | (5,124) | (2,557) |
Originations and purchases of loans and leases, net of principal collected | (1,230) | (2,986) | (3,196) |
Net cash received (paid) for acquisitions and divestitures | 0 | (785) | 1,055 |
Other, net | (31) | 398 | 390 |
Net cash from investing activities | (5,309) | (1,008) | (1,849) |
Cash Flows From Financing Activities: | |||
Net change in deposits | (2,842) | 4,507 | 2,506 |
Net change in short-term borrowings | 3,532 | (3,581) | (982) |
Proceeds from issuance of long-term debt | 8,883 | 3,878 | 2,272 |
Repayment of long-term debt | (7,453) | (5,849) | (2,433) |
Repurchase of common stock | (1,613) | (520) | 0 |
Net cash from common stock transactions in connection with equity awards | 108 | 218 | 68 |
Net proceeds from preferred stock issued | 0 | 450 | 0 |
Cash dividends paid on common stock | (1,005) | (925) | (789) |
Cash dividends paid on preferred stock | (174) | (167) | (148) |
Other, net | 15 | 107 | (390) |
Net cash from financing activities | (549) | (1,882) | 104 |
Net Change in Cash and Cash Equivalents | (1,223) | 225 | 1,386 |
Cash and Cash Equivalents at Beginning of Period | 3,936 | 3,711 | 2,325 |
Cash and Cash Equivalents at End of Period | 2,713 | 3,936 | 3,711 |
Cash paid during the period for: | |||
Interest | 819 | 775 | 734 |
Income taxes | 429 | 844 | 655 |
Noncash investing and financing activities: | |||
Transfers of loans to foreclosed assets | 260 | 258 | 320 |
Transfers of loans HFI to LHFS | 1,050 | 263 | 153 |
Stock issued in acquisitions | 0 | 1,063 | 2,188 |
Purchase of additional interest in AmRisc, LP | 0 | 0 | 216 |
Transfer of HTM securities to AFS | $ 0 | $ 0 | $ 517 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies General See the Glossary of Defined Terms at the beginning of this Report for terms used herein. The accounting and reporting policies are in accordance with GAAP. Additionally, where applicable, the policies conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. The following is a summary of significant accounting policies. Nature of Operations BB&T is a FHC organized under the laws of North Carolina. BB&T conducts operations through a bank subsidiary, Branch Bank, and nonbank subsidiaries. Branch Bank’s offices are concentrated primarily in the Southeastern and Mid-Atlantic United States. BB&T provides a wide range of banking services to individuals, businesses and municipalities. BB&T offers a variety of loans and lease financing to individuals and entities primarily within BB&T’s geographic footprint, including commercial and residential mortgages; permanent CRE financing arrangements; loan servicing for third-party investors; direct consumer finance loans to individuals; credit card lending; automobile financing; and equipment financing. BB&T also provides a wide range of other services, including deposits; discount and full service brokerage, annuities and mutual funds; life insurance, property and casualty insurance, health insurance and commercial general liability insurance through its retail agency and wholesale brokerage operations; merchant services; trust and retirement services; comprehensive wealth advisory services; asset management and capital markets services. Principles of Consolidation The consolidated financial statements include the accounts of BB&T Corporation and those subsidiaries that are majority owned by BB&T or over which BB&T exercises control. Intercompany accounts and transactions are eliminated in consolidation. The results of operations of companies or assets acquired are included from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise. BB&T holds investments in certain legal entities that are considered VIEs. VIEs are legal entities in which equity investors do not have sufficient equity at risk for the entity to independently finance its activities, or as a group, the holders of the equity investment at risk lack the power through voting or similar rights to direct the activities of the entity that most significantly impact its economic performance, or do not have the obligation to absorb the expected losses of the entity or the right to receive expected residual returns of the entity. Consolidation of a VIE is required if a reporting entity is the primary beneficiary of the VIE. Investments in VIEs are evaluated to determine if BB&T is the primary beneficiary. This evaluation gives appropriate consideration to the design of the entity and the variability that the entity was designed to pass along, the relative power of each party, and to BB&T’s relative obligation to absorb losses or receive residual returns of the entity, in relation to such obligations and rights held by each party. BB&T has variable interests in certain entities that were not required to be consolidated, including affordable housing and other partnership interests. Refer to " Note 13. Commitments and Contingencies " for additional disclosures regarding BB&T’s significant VIEs. BB&T accounts for unconsolidated partnerships and certain other investments using the equity method of accounting. BB&T records its portion of income or loss in other noninterest income in the Consolidated Statements of Income. These investments are periodically evaluated for impairment. BB&T also has investments in, and future funding commitments to, private equity investments, which are accounted for based on BB&T’s ownership and control rights specific to each investment. Reclassifications The Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015 have 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 net effect of the revisions is as follows: (dollars in millions) 2016 2015 Net cash from operating activities $ 443 $ 216 Net cash from investing activities (326 ) (211 ) Net cash from financing activities (117 ) (5 ) Net change in cash and cash equivalents $ — $ — Certain other amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. 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 goodwill, intangible assets and other purchase accounting related adjustments, benefit plan obligations and expenses, mortgage servicing rights, and tax assets, liabilities and expense. Business Combinations BB&T accounts for business combinations using the acquisition method of accounting. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. BB&T typically issues common stock and/or pays cash for an acquisition, depending on the terms of the acquisition agreement. The value of common shares issued is determined based on the market price of the stock as of the closing of the acquisition. Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest-bearing deposits with banks, and other cash equivalents. Cash and cash equivalents have maturities of three months or less. Accordingly, the carrying amount of such instruments is considered a reasonable estimate of fair value. Restricted Cash Restricted cash primarily represents amounts posted as collateral for derivatives in a loss position. Securities Marketable investment securities are classified as HTM, AFS or trading. Interest income and dividends on securities are recognized in income on an accrual basis. Premiums and discounts on debt securities are amortized as an adjustment to interest income using the effective interest method. For MBS, prepayment speeds are evaluated quarterly in order to determine the estimated lives of the securities. When the estimated lives of MBS are changed, the amortization of premiums or discounts is adjusted with a corresponding charge or credit to interest income as if the current estimated lives had been applied since the acquisition of the securities. Debt securities are classified as HTM when BB&T has both the intent and ability to hold the securities to maturity. These securities are reported at amortized cost. Debt securities that may be sold to meet liquidity needs arising from unanticipated deposit and loan fluctuations, changes in regulatory capital requirements or unforeseen changes in market conditions are classified as AFS. AFS securities are reported at estimated fair value, with unrealized gains and losses reported in AOCI, net of deferred income taxes, in the shareholders’ equity section of the Consolidated Balance Sheets. Gains or losses realized from the sale of AFS securities are determined by specific identification and are included in noninterest income. Each HTM and AFS security in a loss position is evaluated for OTTI. BB&T considers such factors as the length of time and the extent to which the fair value has been below amortized cost, long term expectations and recent experience regarding principal and interest payments, BB&T’s intent to sell and whether it is more likely than not that the Company would be required to sell those securities before the anticipated recovery of the amortized cost basis. The credit component of an OTTI loss is recognized in earnings and the non-credit component is recognized in AOCI in situations where BB&T does not intend to sell the security and it is more-likely-than-not that BB&T will not be required to sell the security prior to recovery. Subsequent to recognition of OTTI, an increase in expected cash flows is recognized as a yield adjustment over the remaining expected life of the security based on an evaluation of the nature of the increase. Trading account securities, which include both debt and equity securities, are reported at fair value and included in other assets in the Consolidated Balance Sheets. Unrealized fair value adjustments, fees, and realized gains or losses from trading account activities (determined by specific identification) are included in noninterest income. Interest income on trading account securities is included in interest on other earning assets. LHFS BB&T accounts for new originations of residential and commercial mortgage LHFS at fair value. BB&T accounts for the derivatives used to economically hedge the LHFS at fair value. The fair value of LHFS is primarily based on quoted market prices for securities collateralized by similar types of loans. Direct loan origination fees and costs related to LHFS are not capitalized, and are recorded as mortgage banking income in the case of the direct loan origination fees and primarily personnel expense in the case of the direct loan origination costs. Gains and losses on sales of residential and commercial mortgage loans are included in mortgage banking income. BB&T sells a significant portion of its fixed-rate commercial and conforming residential mortgage loan originations, which are typically converted into MBS by FHLMC, FNMA and GNMA and subsequently sold to other third party investors. BB&T records these transactions as a sale when the transferred loans are legally isolated from BB&T’s creditors and other accounting criteria for a sale are met. Gains or losses recorded on these transactions are based on the net carrying amount of the loans sold and the fair value of related mortgage servicing, which BB&T generally retains on loans sold. Since quoted market prices are not typically available, BB&T estimates the fair value of these retained interests using modeling techniques to determine the net present value of expected future cash flows. Such models incorporate management’s best estimates of key variables, such as prepayment speeds, servicing costs and discount rates that would be used by market participants based on the risks involved. Loans and Leases The Company’s accounting methods for loans differ depending on whether the loans are originated or purchased, and if purchased, whether or not the loans reflect credit deterioration since the date of origination such that it is probable at the date of acquisition that BB&T will be unable to collect all contractually required payments. Originated Loans and Leases Loans and leases that management has the intent and ability to hold for the foreseeable future are reported at their outstanding principal balances net of any unearned income, charge-offs, and unamortized fees and costs. The net amount of nonrefundable loan origination fees and certain direct costs associated with the lending process are deferred and amortized to interest income over the contractual lives of the loans using the effective interest method. Purchased Loans Purchased loans are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an ALLL is not recorded at the acquisition date. Purchased loans are evaluated upon acquisition and classified as either purchased impaired or purchased non-impaired. PCI loans reflect credit deterioration since origination such that it is probable at acquisition that BB&T will be unable to collect all contractually required payments. For PCI loans, expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of the future cash flows is reasonably estimable. Subsequent to the acquisition date, increases in cash flows over those expected at the acquisition date are recognized prospectively as interest income. Decreases in expected cash flows due to credit deterioration are recognized by recording an ALLL. For purchased non-impaired loans, the difference between the fair value and UPB of the loan at the acquisition date is amortized or accreted to interest income over the contractual life of the loans using the effective interest method. In the event of prepayment, the remaining unamortized amount is recognized in interest income. TDRs Modifications to a borrower’s debt agreement are considered TDRs if a concession is granted for economic or legal reasons related to a borrower’s financial difficulties that otherwise would not be considered. TDRs are undertaken in order to improve the likelihood of recovery on the loan and may take the form of modifications made with the stated interest rate lower than the current market rate for new debt with similar risk, other modifications to the structure of the loan that fall outside of normal underwriting policies and procedures, or in certain limited circumstances forgiveness of principal or interest. Modifications of PCI loans that are part of a pool accounted for as a single asset are not considered TDRs. TDRs can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accruing status, depending on the individual facts and circumstances of the borrower. In circumstances where the TDR involves charging off a portion of the loan balance, BB&T typically classifies these TDRs as nonaccrual. In connection with commercial TDRs, the decision to maintain a loan that has been restructured on accrual status is based on a current, well documented credit evaluation of the borrower’s financial condition and prospects for repayment under the modified terms. This evaluation includes consideration of the borrower’s current capacity to pay, which among other things may include a review of the borrower’s current financial statements, an analysis of cash flow available to pay debt obligations, and an evaluation of secondary sources of payment from the borrower and any guarantors. This evaluation also includes an evaluation of the borrower’s current willingness to pay, which may include a review of past payment history, an evaluation of the borrower’s willingness to provide information on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. The credit evaluation may also include review of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest and trends indicating improving profitability and collectability of receivables. The evaluation of mortgage and retail loans includes an evaluation of the client’s debt to income ratio, credit report, property value, loan vintage, and certain other client-specific factors that impact their ability to make timely principal and interest payments on the loan. TDR classification may be removed for an accruing loan upon the occurrence of a non-concessionary subsequent modification granted at market terms and within current underwriting guidelines. NPAs NPAs include NPLs and foreclosed property. Foreclosed property consists of real estate and other assets acquired as a result of customers’ loan defaults. BB&T’s policies for placing loans on nonaccrual status conform to guidelines prescribed by bank regulatory authorities. BB&T classifies loans and leases as past due when the payment of principal and interest based upon contractual terms is greater than 30 days delinquent or if one payment is past due. The following table summarizes the delinquency thresholds that are used in evaluating nonaccrual classification and the timing of charge-offs (PCI loans are considered to be performing due to the application of the expected cash flows method): (number of days) Placed on Nonaccrual (1) Charge-off Commercial: Commercial and industrial 90 (2) 90 CRE 90 (2) 90 Lease financing 90 (2) 90 Retail: Residential mortgage (3) 90 to 180 90 to 210 Direct (3) 90 to 120 90 to 120 Indirect (3) 90 to 120 90 to 120 Revolving credit (3) NA 90 to 180 (1) Loans may be returned to accrual status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest, generally indicated by 180 days of sustained performance. (2) Or when it is probable that principal or interest is not fully collectible, whichever occurs first. (3) Depends on product type, loss mitigation status and status of the government guaranty. When commercial loans are placed on nonaccrual status, a charge-off is recorded, as applicable, to decrease the carrying value of such loans to the estimated recoverable amount. Retail loans are subject to mandatory charge-off at a specified delinquency date consistent with regulatory guidelines. As such, retail loans are subject to collateral valuation and charge-off, as applicable, when they are moved to nonaccrual status. Certain past due loans may remain on accrual status if management determines that it does not have concern over the collectability of principal and interest. Generally, when loans are placed on nonaccrual status, accrued interest receivable is reversed against interest income in the current period and amortization of deferred loan fees and expenses is suspended. Payments received for interest and lending fees thereafter are applied as a reduction to the remaining principal balance as long as concern exists as to the ultimate collection of the principal. Assets acquired as a result of foreclosure are subsequently carried at the lower of cost or net realizable value. Net realizable value equals fair value less estimated selling costs. Any excess of cost over net realizable value at the time of foreclosure is charged to the ALLL. NPAs are subject to periodic revaluations of the collateral underlying impaired loans and foreclosed real estate. The periodic revaluations are generally based on the appraised value of the property and may include additional liquidity adjustments based upon the expected retention period. BB&T’s policies require that valuations be updated at least annually and that upon foreclosure, the valuation must not be more than six months old, otherwise an update is required. ACL The ACL includes the ALLL and the RUFC. The ACL represents management’s best estimate of probable credit losses inherent in the loan and lease portfolios and off-balance sheet lending commitments at the balance sheet date. Estimates for loan and lease losses are determined by analyzing historical loan and lease losses, historical loan and lease migration to charge-off experience, current trends in delinquencies and charge-offs, expected cash flows on PCI loans, current assessment of impaired loans and leases, the results of regulatory examinations and changes in the size, composition and risk assessment of the loan and lease portfolio. As part of this process, BB&T develops a series of loss estimate factors, which are modeled projections of the frequency, timing and severity of losses. Changes to the ACL are made by charges to the provision for credit losses, which is reflected in the Consolidated Statements of Income. Loan or lease balances deemed to be uncollectible are charged off against the ALLL. Recoveries of amounts previously charged off are credited to the ALLL. The methodology used to determine the RUFC is inherently similar to that used to determine the collectively evaluated component of the ALLL, adjusted for factors specific to binding commitments, including the probability of funding and exposure at default. While management uses the best information available to establish the ACL, future adjustments may be necessary if economic conditions differ substantially from the assumptions used in computing the ACL or, if required by regulators based upon information available to them at the time of their examinations. Accounting standards require the disclosure of certain information at the portfolio segment level, representing the level at which an entity develops and documents a systematic methodology to determine its ACL. BB&T concluded that its loan and lease portfolio consists of four portfolio segments; commercial, retail, revolving credit, and PCI. The commercial portfolio segment was identified based on the risk-based approach used to estimate the ALLL for the vast majority of these loans. The retail portfolio segment was identified based on the delinquency-based approach used to estimate the ALLL. The revolving credit portfolio segment, which also uses a delinquency-based ALLL approach, was identified because of the uniqueness of its lending arrangements. The PCI portfolio segment was identified based on the expected cash flows approach used to estimate the ALLL. During the fourth quarter of 2017, certain loan categories were reclassified to better reflect the nature of the underlying loans. Prior periods were revised to conform to the current presentation. See " Note 3. Loans and ACL " for additional information about the classes of financing receivables included within each of these loan portfolio segments. The entire amount of the ACL is available to absorb losses on any loan category or lending-related commitment. The following provides a description of accounting policies and methodologies related to each of the portfolio segments: Commercial The vast majority of loans in the commercial lending portfolio are assigned risk ratings based on an assessment of conditions that affect the borrower’s ability to meet contractual obligations under the loan agreement. This process includes reviewing borrowers’ financial information, historical payment experience, credit documentation, public information, and other information specific to each borrower. Risk ratings are reviewed on an annual basis for all credit relationships with total credit exposure more than $2 million , or at any point management becomes aware of information affecting the borrowers’ ability to fulfill their obligations. Risk Rating Description Pass Loans not considered to be problem credits Special Mention Loans that have a potential weakness deserving management’s close attention Substandard Loans for which a well-defined weakness has been identified that may put full collection of contractual cash flows at risk For commercial clients with total credit exposure of $2 million or less, BB&T has developed an automated loan review system to identify and proactively manage accounts with a higher risk of loss. The "score" produced by this automated system is updated quarterly. To establish a reserve, BB&T's policy is to review all commercial lending relationships with an outstanding nonaccrual balance of $3 million or more. While this review is largely focused on the borrower’s ability to repay the loan, BB&T also considers the capacity and willingness of a loan’s guarantors to support the debt service on the loan as a secondary source of repayment. When a guarantor exhibits the documented capacity and willingness to support the loan, BB&T may consider extending the loan maturity and/or temporarily deferring principal payments if the ultimate collection of both principal and interest is not in question. In these cases, BB&T may deem the loan to not be impaired due to the documented capacity and willingness of the guarantor to repay the loan. Loans are considered impaired when the borrower (or guarantor in certain circumstances) does not have the cash flow capacity or willingness to service the debt according to contractual terms, or it does not appear reasonable to assume that the borrower will continue to pay according to the contractual agreement. BB&T establishes a specific reserve for each loan that has been deemed impaired based on the criteria outlined above. The amount of the reserve is based on the present value of expected cash flows discounted at the loan’s effective interest rate and/or the value of collateral, net of costs to sell. In addition, BB&T reviews collateral-dependent commercial loan balances between $1 million and $3 million to establish a specific reserve based on the underlying collateral value, net of costs to sell. BB&T also has a review process related to TDRs and other commercial impaired loans. In connection with this process, BB&T establishes reserves related to these loans that are calculated using an expected cash flow approach. These discounted cash flow analyses incorporate adjustments to future cash flows that reflect management’s best estimate of the default risk related to TDRs based on a combination of historical experience and management judgment. BB&T also maintains reserves for collective impairment that reflect an estimate of losses related to non-impaired commercial loans as of the balance sheet date. Embedded loss estimates for BB&T’s commercial loan portfolio are based on estimated migration rates, which are based on historical experience, and current risk mix as indicated by the risk grading or scoring process described above. Embedded loss estimates may be adjusted to reflect current economic conditions and current portfolio trends including credit quality, concentrations, aging of the portfolio, and significant policy and underwriting changes. Retail and Revolving Credit The majority of the ALLL related to the retail and revolving credit lending portfolios is calculated on a collective basis using delinquency status, which is the primary factor considered in determining whether a loan should be classified as nonaccrual. Embedded loss estimates for BB&T’s retail and revolving credit lending portfolios are based on estimated migration rates that are developed based on historical experience, and current risk mix as indicated by prevailing delinquency rates. These estimates may be adjusted to reflect current economic conditions and current portfolio trends. The remaining portion of the ALLL related to the retail and revolving credit lending portfolios relates to loans that have been deemed impaired based on their classification as a TDR at the balance sheet date. BB&T establishes specific reserves related to these TDRs using an expected cash flow approach. The ALLL for retail and revolving credit TDRs is based on discounted cash flow analyses that incorporate adjustments to future cash flows that reflect management’s best estimate of the default risk related to TDRs based on a combination of historical experience and management judgment. PCI PCI loans are aggregated into loan pools based upon common risk characteristics. The ALLL for each loan pool is based on an analysis that is performed each period to estimate the expected cash flows. To the extent that the expected cash flows of a loan pool have decreased due to credit deterioration, BB&T establishes an ALLL. Premises and Equipment Premises, equipment, capital leases and leasehold improvements are stated at cost less accumulated depreciation and amortization. Certain costs of software acquired or developed for internal use are capitalized provided certain criteria are met. Depreciation and amortization are computed principally using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements and capitalized leases are amortized on a straight-line basis over the lesser of the lease terms or the estimated useful lives of the assets. Rent expense and rental income on operating leases is recorded using the straight-line method over the appropriate lease terms. Bank-Owned Life Insurance Life insurance policies on certain directors, officers, and employees, for which BB&T is the owner and beneficiary are stated at the cash surrender value within other assets in the Consolidated Balance Sheet. Changes in cash surrender value and proceeds from insurance benefits are recorded in income from bank-owned life insurance in the Consolidated Statements of Income. Income Taxes Deferred tax assets and liabilities result from differences between assets and liabilities measured for financial reporting purposes compared to income tax return purposes. In the event of changes in the tax laws, deferred tax assets and liabilities are adjusted in the period those changes are enacted, with the cumulative effects included in the current year’s income tax provision. Net deferred tax assets are included in other assets, and net deferred tax liabilities are included in accounts payable and other liabilities, in the Consolidated Balance Sheets. Interest and penalties related to income taxes are recognized as a component of the provision for income taxes in the Consolidated Statements of Income. Derivative Financial Instruments A derivative is a financial instrument that derives its cash flows, and therefore its value, by reference to an underlying instrument, index or referenced interest rate. These instruments include interest rate swaps, caps, floors, collars, financial forwards and futures contracts, swaptions, when-issued securities, foreign exchange contracts and options written and purchased. BB&T uses derivatives primarily to manage economic risk related to securities, commercial loans, MSRs and mortgage banking operations, long-term debt and other funding sources. BB&T also uses derivatives to facilitate transactions on behalf of its clients. The fair value of derivatives in a gain or loss position is included in other assets or liabilities, respectively, on the Consolidated Balance Sheets. Cash collateral posted for derivative instruments in a loss position is included in restricted cash on the Consolidated Balance Sheets. BB&T classifies its derivative financial instruments as either (1) a fair value hedge - hedge of an exposure to changes in the fair value of a recorded asset or liability, (2) a cash flow hedge - hedge of an exposure to changes in the cash flows of a recognized asset, liability or forecasted transaction, or (3) derivatives not designated as hedges. Changes in the fair value of derivatives not designated as hedges are recognized in current period earnings. BB&T has master netting agreements with the derivatives dealers with which it does business, but BB&T presents gross assets and liabilities on the Consolidated Balance Sheets. BB&T uses the long-haul method to assess hedge effectiveness. At inception and at least quarterly over the life of the hedge, BB&T documents its analysis of actual and expected hedge effectiveness. This analysis includes techniques such as regression analysis and hypothetical derivatives to demonstrate that the hedge has been, and is expected to be, highly effective in off-setting corresponding changes in the fair value or cash flows of the hedged item. For a qualifying fair value hedge, changes in the value of the derivatives that have been highly effective as hedges are recognized in current period earnings along with the corresponding changes in the fair value of the designated hedged item attributable to the risk being hedged. For a qualifying cash flow hedge, changes in the fair value of the derivatives that have been highly effective are recognized in OCI until the related cash flows from the hedged item are recognized in earnings. For either fair value hedges or cash flow hedges, ineffectiveness may be recognized to the extent that changes in the value of the derivative instruments do not perfectly offset changes in the value of the hedged items. If the hedge ceases to be highly effective, BB&T discontinues hedge accounting and recognizes the interim changes in fair value in current period earnings. If a derivative that qualifies as a fair value or cash flow hedge is terminated or de-designated, the cumulative changes in value are recognized in income over the life of the hedged item (fair value hedge) or in the period in which the hedged item affects earnings (cash flow hedge). Immediate recognition in earnings is required upon sale or extinguishment of the hedged item (fair value hedge) or if it is probable that the hedged cash flows will not occur (cash flow hedge). Derivatives instruments not designated as hedges are primarily used to manage economic risk from MSRs and m |
Securities
Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and fair value of the securities portfolio are presented in the following tables: December 31, 2017 Amortized Cost Gross Unrealized Fair Value (Dollars in millions) Gains Losses AFS securities: U.S. Treasury $ 2,368 $ — $ 77 $ 2,291 GSE 187 — 8 179 Agency MBS 20,683 8 590 20,101 States and political subdivisions 1,379 37 24 1,392 Non-agency MBS 384 192 — 576 Other 8 — — 8 Total AFS securities $ 25,009 $ 237 $ 699 $ 24,547 HTM securities: U.S. Treasury $ 1,098 $ 8 $ — $ 1,106 GSE 2,198 11 22 2,187 Agency MBS 19,660 33 222 19,471 States and political subdivisions 28 — — 28 Other 43 2 — 45 Total HTM securities $ 23,027 $ 54 $ 244 $ 22,837 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 December 31, 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 $10.2 billion and $10.0 billion , respectively. The change 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. AFS HTM December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in millions) Due in one year or less $ 336 $ 335 $ — $ — Due after one year through five years 498 496 2,237 2,242 Due after five years through ten years 2,419 2,341 1,111 1,103 Due after ten years 21,756 21,375 19,679 19,492 Total debt securities $ 25,009 $ 24,547 $ 23,027 $ 22,837 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: Less than 12 months 12 months or more Total December 31, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in millions) AFS securities: U.S. Treasury $ 634 $ 4 $ 1,655 $ 73 $ 2,289 $ 77 GSE 9 — 170 8 179 8 Agency MBS 5,077 64 13,920 526 18,997 590 States and political subdivisions 201 1 355 23 556 24 Total $ 5,921 $ 69 $ 16,100 $ 630 $ 22,021 $ 699 HTM securities: GSE $ 1,470 $ 12 $ 290 $ 10 $ 1,760 $ 22 Agency MBS 10,880 77 4,631 145 15,511 222 Total $ 12,350 $ 89 $ 4,921 $ 155 $ 17,271 $ 244 Less than 12 months 12 months or more Total December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in millions) 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 Periodic reviews are conducted to identify and evaluate each investment with an unrealized loss for OTTI. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in AOCI for AFS securities. 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. Cash flow modeling is used to evaluate non-agency MBS in an unrealized loss position for potential credit impairment. These models give consideration to long-term macroeconomic factors applied to current security default rates, prepayment rates and recovery rates and security-level performance. At December 31, 2017 , there were no non-agency MBS with other than temporary credit impairment. At December 31, 2017 , the majority of the unrealized loss on municipal securities was the result of fair value hedge basis adjustments that are a component of amortized cost. Municipal 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 December 31, 2017 , the evaluation of municipal securities did not indicate any municipal securities with other than temporary credit impairment. |
Loans and ACL
Loans and ACL | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans and ACL | Loans and ACL During 2017, the categorization of certain loans was revised to better reflect the nature of the underlying loans. Prior period amounts were reclassified to conform to the current presentation. During 2017, an indirect loan portfolio totaling $244 million was acquired. In addition, residential mortgage loans totaling $905 million were sold, which included $61 million of nonaccrual loans and $ 331 million of performing TDRs. During 2016, indirect lending portfolios totaling $2.9 billion were acquired. The following tables summarize the delinquency status of loans HFI: Accruing December 31, 2017 Current 30-89 Days Past Due 90 Days Or More Past Due Nonaccrual Total (Dollars in millions) Commercial: Commercial and industrial $ 58,852 $ 41 $ 1 $ 259 $ 59,153 CRE 21,209 8 1 45 21,263 Lease financing 1,906 4 — 1 1,911 Retail: Residential mortgage 27,659 472 465 129 28,725 Direct 11,756 65 6 64 11,891 Indirect 16,745 412 6 72 17,235 Revolving credit 2,837 23 12 — 2,872 PCI 567 27 57 — 651 Total $ 141,531 $ 1,052 $ 548 $ 570 $ 143,701 Accruing December 31, 2016 Current 30-89 Days Past Due 90 Days Or More Past Due Nonaccrual Total (Dollars in millions) Commercial: Commercial and industrial $ 57,326 $ 44 $ — $ 369 $ 57,739 CRE 19,699 8 — 57 19,764 Lease financing 1,669 4 — 4 1,677 Retail: Residential mortgage 28,702 525 522 172 29,921 Direct 11,963 60 6 63 12,092 Indirect 18,110 377 6 71 18,564 Revolving credit 2,620 23 12 — 2,655 PCI 784 36 90 — 910 Total $ 140,873 $ 1,077 $ 636 $ 736 $ 143,322 The following table presents the carrying amount of loans by risk rating. PCI loans are excluded because their related ALLL is determined by loan pool performance and revolving credit loans are excluded as the loans are charged-off and not reclassified to nonperforming. December 31, 2017 December 31, 2016 Commercial & Industrial CRE Lease financing Commercial & Industrial CRE Lease financing (Dollars in millions) Commercial: Pass $ 57,700 $ 20,862 $ 1,881 $ 55,881 $ 19,186 $ 1,641 Special mention 268 48 6 343 162 4 Substandard-performing 926 308 23 1,146 359 28 Nonperforming 259 45 1 369 57 4 Total $ 59,153 $ 21,263 $ 1,911 $ 57,739 $ 19,764 $ 1,677 Residential Mortgage Direct Indirect Residential Mortgage Direct Indirect Retail: Performing $ 28,596 $ 11,827 $ 17,163 $ 29,749 $ 12,029 $ 18,493 Nonperforming 129 64 72 172 63 71 Total $ 28,725 $ 11,891 $ 17,235 $ 29,921 $ 12,092 $ 18,564 The following tables present a summary of activity in the ACL: Year Ended December 31, 2017 Beginning Balance Charge-Offs Recoveries Provision (Benefit) Other Ending Balance (Dollars in millions) Commercial: Commercial and industrial $ 530 $ (95 ) $ 36 $ 51 $ — $ 522 CRE 145 (10 ) 16 9 — 160 Lease financing 7 (5 ) 2 5 — 9 Retail: Residential mortgage 227 (47 ) 2 27 — 209 Direct 103 (61 ) 25 39 — 106 Indirect 327 (402 ) 60 363 — 348 Revolving credit 106 (76 ) 19 59 — 108 PCI 44 (1 ) — (15 ) — 28 ALLL 1,489 (697 ) 160 538 — 1,490 RUFC 110 — — 9 — 119 ACL $ 1,599 $ (697 ) $ 160 $ 547 $ — $ 1,609 Year Ended December 31, 2016 Beginning Balance Charge-Offs Recoveries Provision (Benefit) Other Ending Balance (Dollars in millions) Commercial: Commercial and industrial $ 488 $ (143 ) $ 44 $ 141 $ — $ 530 CRE 175 (9 ) 19 (40 ) — 145 Lease financing 5 (6 ) 2 6 — 7 Retail: Residential mortgage 217 (40 ) 3 47 — 227 Direct 105 (53 ) 26 25 — 103 Indirect 305 (366 ) 55 333 — 327 Revolving credit 104 (69 ) 20 51 — 106 PCI 61 (15 ) — (2 ) — 44 ALLL 1,460 (701 ) 169 561 — 1,489 RUFC 90 — — 11 9 110 ACL $ 1,550 $ (701 ) $ 169 $ 572 $ 9 $ 1,599 Year Ended December 31, 2015 Beginning Balance Charge-Offs Recoveries Provision (Benefit) Other Ending Balance (Dollars in millions) Commercial: Commercial and industrial $ 446 $ (90 ) $ 40 $ 92 $ — $ 488 CRE 212 (24 ) 18 (31 ) — 175 Lease financing 4 — — 1 — 5 Retail: Residential mortgage 253 (46 ) 3 7 — 217 Direct 110 (54 ) 29 20 — 105 Indirect 275 (303 ) 42 291 — 305 Revolving credit 110 (70 ) 20 44 — 104 PCI 64 (1 ) — (2 ) — 61 ALLL 1,474 (588 ) 152 422 — 1,460 RUFC 60 — — 6 24 90 ACL $ 1,534 $ (588 ) $ 152 $ 428 $ 24 $ 1,550 The following table provides a summary of loans that are collectively evaluated for impairment: December 31, 2017 December 31, 2016 (Dollars in millions) Recorded Investment Related ALLL Recorded Investment Related ALLL Commercial: Commercial and industrial $ 58,804 $ 494 $ 57,265 $ 492 CRE 21,173 154 19,649 136 Lease financing 1,910 9 1,672 7 Retail: Residential mortgage 27,914 143 28,954 144 Direct 11,815 98 12,011 93 Indirect 16,935 296 18,308 286 Revolving credit 2,842 97 2,626 95 PCI 651 28 910 44 Total $ 142,044 $ 1,319 $ 141,395 $ 1,297 The following tables set forth certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for reserves: As Of / For The Year Ended December 31, 2017 UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized (Dollars in millions) Without an ALLL With an ALLL Commercial: Commercial and industrial $ 381 $ 136 $ 213 $ 28 $ 424 $ 6 CRE 91 26 64 6 109 3 Lease financing 1 — 1 — 3 — Retail: Residential mortgage 860 132 679 67 895 37 Direct 99 22 54 8 78 4 Indirect 308 6 294 52 269 41 Revolving credit 30 — 30 10 29 1 Total $ 1,770 $ 322 $ 1,335 $ 171 $ 1,807 $ 92 As Of / For The Year Ended December 31, 2016 UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized (Dollars in millions) Without an ALLL With an ALLL Commercial: Commercial and industrial $ 505 $ 204 $ 271 $ 38 $ 483 $ 6 CRE 121 35 80 9 114 3 Lease financing 4 1 3 — 4 — Retail: Residential mortgage 1,026 97 870 83 843 34 Direct 107 13 68 10 83 5 Indirect 265 5 251 41 227 33 Revolving credit 29 — 29 11 31 1 Total $ 2,057 $ 355 $ 1,572 $ 192 $ 1,785 $ 82 The following table provides a summary of TDRs, all of which are considered impaired: December 31, (Dollars in millions) 2017 2016 Performing TDRs: Commercial: Commercial and industrial $ 50 $ 57 CRE 16 25 Lease financing — — Retail: Residential mortgage 605 769 Direct 62 67 Indirect 281 240 Revolving credit 29 29 Total performing TDRs 1,043 1,187 Nonperforming TDRs (also included in NPL disclosures) 189 184 Total TDRs $ 1,232 $ 1,371 ALLL attributable to TDRs $ 142 $ 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 in this table include TDRs made with below market interest rates that also include modifications of loan structures. Year Ended December 31, 2017 2016 2015 Type of Modification ALLL Impact Type of Modification ALLL Impact Type of Modification ALLL Impact (Dollars in millions) Rate Structure Rate Structure Rate Structure Newly Designated TDRs: Commercial: Commercial and industrial $ 79 $ 101 $ 3 $ 105 $ 96 $ 3 $ 68 $ 31 $ 2 CRE 14 10 1 12 16 — 11 26 1 Retail: Residential mortgage 357 46 25 431 53 28 230 34 16 Direct 10 3 — 14 1 — 12 2 4 Indirect 192 6 21 169 7 21 129 9 18 Revolving credit 19 — 4 17 — 4 16 — 4 Re-Modification of Previously Designated TDRs 176 44 — 79 46 — 88 34 — The pre-default balance for modifications that experienced a payment default that had been classified as TDRs during the previous 12 months was $104 million , $73 million and $81 million for the twelve months ended December 31, 2017 , 2016 and 2015 , respectively. Payment default is defined as movement of the TDR to nonaccrual status, foreclosure or charge-off, whichever occurs first. The following table presents additional information about BB&T’s loans and leases: December 31, (Dollars in millions) 2017 2016 Unearned income, discounts and net deferred loan fees and costs, excluding PCI $ 70 $ 265 Residential mortgage loans in process of foreclosure 288 366 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment A summary of premises and equipment is presented in the accompanying table: Estimated Useful Life December 31, (Dollars in millions) 2017 2016 Land and land improvements $ 583 $ 611 Buildings and building improvements 40 years 1,660 1,628 Furniture and equipment 3 - 15 1,146 1,121 Leasehold improvements 733 791 Construction in progress 52 62 Capitalized leases on premises and equipment 58 66 Total 4,232 4,279 Accumulated depreciation and amortization (2,177 ) (2,172 ) Net premises and equipment $ 2,055 $ 2,107 The following table excludes assets related to the lease financing business: Year Ended December 31, (Dollars in millions) 2017 2016 2015 Rent expense applicable to operating leases $ 249 $ 250 $ 223 Rental income from owned properties and subleases 12 8 7 Year Ended December 31, (Dollars in millions) 2018 2019 2020 2021 2022 Thereafter Future minimum lease payments for operating leases $ 255 $ 228 $ 199 $ 173 $ 147 $ 509 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amounts of goodwill attributable to BB&T’s operating segments are reflected in the table below. During the fourth quarter of 2017, the operating segments were reorganized and goodwill was reallocated to the new segments based upon the relative fair value of the underlying reporting units, as applicable. Refer to " Note 19. Operating Segments " for additional information. There have been no goodwill impairments recorded to date. (Dollars in millions) Community Banking Residential Mortgage Banking Dealer Financial Services Specialized Lending Insurance Holdings Financial Services Total Goodwill, January 1, 2015 $ 4,634 $ 326 $ 111 $ 88 $ 1,518 $ 192 $ 6,869 Acquired goodwill, net 1,501 43 — 155 16 11 1,726 American Coastal sale — — — — (49 ) — (49 ) Other adjustments 5 — — — (3 ) — 2 Goodwill, December 31, 2015 6,140 369 111 243 1,482 203 8,548 Acquired goodwill, net 753 39 — 2 270 9 1,073 Other adjustments 139 8 — (132 ) — 2 17 Goodwill, December 31, 2016 7,032 416 111 113 1,752 214 9,638 Other adjustments (12 ) 6 — (9 ) (5 ) — (20 ) Goodwill, prior to reorganization $ 7,020 $ 422 $ 111 $ 104 $ 1,747 $ 214 $ 9,618 Goodwill, after reorganization CB-Retail CB-Commercial FS&CF IH&PF Total Goodwill, December 31, 2017 $ 3,724 $ 3,862 $ 259 $ 1,773 $ 9,618 During 2016, the purchase price allocation for Susquehanna was finalized. During 2017, the purchase price allocations for National Penn and Swett & Crawford were finalized. The related effects of these finalizations are included in other adjustments in the above table. The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets: December 31, 2017 December 31, 2016 (Dollars in millions) Wtd. Avg. Remaining Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount CDI 7.0 years $ 605 $ (409 ) $ 196 $ 825 $ (565 ) $ 260 Other, primarily customer relationship intangibles 12.0 1,211 (696 ) 515 1,249 (655 ) 594 Total $ 1,816 $ (1,105 ) $ 711 $ 2,074 $ (1,220 ) $ 854 The estimated amortization expense for the next five years is presented as follows: Year Ended December 31, (Dollars in millions) 2018 2019 2020 2021 2022 Estimated amortization expense of identifiable intangibles $ 122 $ 104 $ 87 $ 74 $ 64 |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Loan Servicing | Loan Servicing Residential Mortgage Banking Activities The following tables summarize residential mortgage banking activities. BB&T manages its own residential mortgage loans, including PCI loans. As Of / For The Year Ended December 31, (Dollars in millions) 2017 2016 2015 UPB of residential mortgage and home equity loan servicing portfolio $ 118,424 $ 121,639 $ 122,169 UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate 89,124 90,325 91,132 Mortgage loans sold with recourse 490 578 702 Maximum recourse exposure from mortgage loans sold with recourse liability 251 282 326 Indemnification, recourse and repurchase reserves 37 40 79 UPB of residential mortgage loans sold 12,423 15,675 14,764 Pre-tax gains recognized on mortgage loans sold and held for sale 153 139 148 Servicing fees recognized from mortgage loans serviced for others 261 268 273 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others 0.28 % 0.28 % 0.29 % Weighted average interest rate on mortgage loans serviced for others 4.00 4.03 4.12 During 2016, BB&T 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 , which was included in other expense on the Consolidated Statements of Income. During 2016, BB&T released $31 million of mortgage repurchase reserves, which was primarily driven by lower anticipated loan repurchase requests. These adjustments were included in loan-related expense on the Consolidated Statements of Income. Payments made to date for recourse exposure on residential mortgage loans sold with recourse liability have been immaterial. The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value: Year Ended December 31, (Dollars in millions) 2017 2016 2015 Carrying value, beginning of year $ 915 $ 880 $ 844 Additions 123 146 156 Change in fair value due to changes in valuation inputs or assumptions: Prepayment speeds (42 ) 13 91 Weighted average OAS 46 10 (52 ) Servicing costs 9 2 (25 ) Realization of expected net servicing cash flows, passage of time and other (137 ) (136 ) (134 ) Carrying value, end of year $ 914 $ 915 $ 880 Gains (losses) on derivative financial instruments used to mitigate the income statement effect of changes in fair value $ — $ 32 $ 32 The sensitivity of the fair value of the residential MSRs to changes in key assumptions is included in the accompanying table: December 31, 2017 December 31, 2016 Range Weighted Average Range Weighted Average (Dollars in millions) Min Max Min Max Prepayment speed 7.1 % 10.1 % 9.1 % 7.5 % 8.4 % 8.1 % Effect on fair value of a 10% increase $ (31 ) $ (28 ) Effect on fair value of a 20% increase (60 ) (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 a particular 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 CRE mortgage loans serviced for others are not included in loans and leases on the accompanying Consolidated Balance Sheets. The following table summarizes commercial mortgage banking activities for the periods presented: December 31, (Dollars in millions) 2017 2016 UPB of CRE mortgages serviced for others $ 28,441 $ 29,333 CRE mortgages serviced for others covered by recourse provisions 4,153 4,240 Maximum recourse exposure from CRE mortgages sold with recourse liability 1,218 1,272 Recorded reserves related to recourse exposure 5 7 Originated CRE mortgages during the year 6,753 7,145 Commercial MSRs at fair value 142 137 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | Deposits The composition of deposits is presented in the following table: December 31, (Dollars in millions) 2017 2016 Noninterest-bearing deposits $ 53,767 $ 50,697 Interest checking 27,677 30,263 Money market and savings 62,757 64,883 Time deposits 13,170 14,391 Total deposits $ 157,371 $ 160,234 Time deposits greater than $250,000 $ 2,622 $ 2,179 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table presents a summary of long-term debt: December 31, 2017 December 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 2.05 % 6.85 % 2.89 % $ 8,562 $ 7,600 Floating rate senior notes 2018 2022 1.60 2.45 2.13 2,547 1,898 Fixed rate subordinated notes 2019 2022 3.95 5.25 1.98 933 1,338 Branch Bank: Fixed rate senior notes 2018 2022 1.45 2.85 2.56 5,653 4,209 Floating rate senior notes 2019 2020 1.74 1.91 2.10 1,149 250 Fixed rate subordinated notes 2025 2026 3.63 3.80 3.58 2,119 2,138 Floating rate subordinated notes — 262 FHLB advances (1) 2018 2034 — 5.50 1.49 2,480 4,118 Other long-term debt 205 152 Total long-term debt $ 23,648 $ 21,965 (1) FHLB advances had a weighted average maturity of 3.8 years at December 31, 2017 . The effective rates above reflect the impact of hedges and 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 2017, BB&T 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 2015, BB&T terminated FHLB advances totaling $931 million , which resulted in a pre-tax loss on early extinguishment of debt totaling $172 million . The following table presents future debt maturities: Year Ended December 31, Thereafter (Dollars in millions) 2018 2019 2020 2021 2022 Future debt maturities $ 2,446 $ 4,837 $ 6,008 $ 3,256 $ 2,851 $ 4,161 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Preferred Stock The following table presents a summary of the non-cumulative perpetual preferred stock as of December 31, 2017 : Preferred Stock Issue Issuance Date Earliest Redemption Date Liquidation Amount Carrying Amount Dividend Rate (Dollars in millions) Series D 5/1/2012 5/1/2017 $ 575 $ 559 5.850 % Series E 7/31/2012 8/1/2017 1,150 1,120 5.625 Series F 10/31/2012 11/1/2017 450 437 5.200 Series G 5/1/2013 6/1/2018 500 487 5.200 Series H 3/9/2016 6/1/2021 465 450 5.625 Total $ 3,140 $ 3,053 Dividends on the preferred stock, if declared, accrue and are payable quarterly, in arrears. For each issuance, BB&T issued depositary shares, each of which represents a fractional ownership interest in a share of the Company’s preferred stock. The preferred stock has no stated maturity and redemption is solely at the option of the Company in whole, but not in part, upon the occurrence of a regulatory capital treatment event, as defined. In addition, the preferred stock may be redeemed in whole or in part, on any dividend payment date after five years from the date of issuance. Under current rules, any redemption of the preferred stock is subject to prior approval of the FRB. The preferred stock is not subject to any sinking fund or other obligations of the Company. Equity-Based Compensation Plans At December 31, 2017 , options, restricted shares, RSUs, and PSUs were outstanding from equity-based compensation plans that have been approved by shareholders and plans assumed from acquired entities. Those plans are intended to assist the Company in recruiting and retaining employees, directors and independent contractors and to associate the interests of eligible participants with those of BB&T and its shareholders. The majority of outstanding awards and awards available to be issued relate to plans that allow for accelerated vesting of awards for holders who retire and have met all retirement eligibility requirements or in connection with certain other events. Until vested, certain of these awards are subject to forfeiture under specified circumstances. The following table provides a summary of the equity-based compensation plans: December 31, 2017 Shares available for future grants (in thousands) 19,408 Vesting period, minimum 1.0 years Vesting period, maximum 5.0 Option term 10.0 The fair value of RSUs and PSUs is based on the common stock price on the grant date less the present value of expected dividends that will be foregone during the vesting period. Substantially all awards are granted in February of each year. Grants to non-executive employees primarily consist of RSUs. A summary of selected data related to equity-based compensation costs follows: As of / For the Year Ended December 31, (Dollars in millions) 2017 2016 2015 Equity-based compensation expense $ 132 $ 115 $ 106 Income tax benefit from equity-based compensation expense 34 43 40 Intrinsic value of options exercised, and RSUs and PSUs that vested during the year 261 159 170 Grant date fair value of equity-based awards that vested during the year 116 98 115 Unrecognized compensation cost related to equity-based awards 132 109 103 Weighted-average life over which compensation cost is expected to be recognized (years) 2.4 2.3 2.2 The following table presents the activity during 2017 related to awards of RSUs, PSUs and restricted shares: (Shares/units in thousands) Shares/Units Wtd. Avg. Grant Date Fair Value Nonvested at January 1, 2017 13,516 $ 29.39 Granted 3,924 42.88 Vested (4,142 ) 27.75 Forfeited (350 ) 33.29 Nonvested at December 31, 2017 12,948 33.90 Expected to vest at December 31, 2017 11,946 33.90 Share Repurchase Plan Activity During 2017, the Company repurchased $1.6 billion of common stock, which represented 35.5 million shares, through a combination of open market and accelerated share repurchases. During 2016, the Company repurchased $320 million of common stock, which represented 8.4 million shares, through open market purchases. In addition, the Company commenced a $200 million accelerated share repurchase program, which resulted in the retirement of 3.4 million shares during the fourth quarter of 2016 and concluded in January 2017 with approximately 910,000 additional shares being retired. Repurchased shares revert to the status of authorized and unissued shares upon repurchase. At December 31, 2017 , BB&T had remaining authorization to repurchase up to $640 million of common stock under the Board approved repurchase plan. |
AOCI
AOCI | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
AOCI | AOCI The following table summarizes activity in AOCI: (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, 2015 $ (626 ) $ (54 ) $ 152 $ (207 ) $ (16 ) $ (751 ) OCI before reclassifications, net of tax (139 ) (81 ) (206 ) 19 (9 ) (416 ) Amounts reclassified from AOCI: Before tax (1) 67 83 32 31 9 222 Tax effect 25 31 12 12 3 83 Amounts reclassified, net of tax 42 52 20 19 6 139 Total OCI, net of tax (97 ) (29 ) (186 ) 38 (3 ) (277 ) AOCI balance, December 31, 2015 (723 ) (83 ) (34 ) (169 ) (19 ) (1,028 ) OCI before reclassifications, net of tax (91 ) (16 ) (201 ) 148 1 (159 ) Amounts reclassified from AOCI: Before tax (1) 80 11 (39 ) 33 1 86 Tax effect 30 4 (15 ) 12 — 31 Amounts reclassified, net of tax 50 7 (24 ) 21 1 55 Total OCI, net of tax (41 ) (9 ) (225 ) 169 2 (104 ) AOCI balance, December 31, 2016 (764 ) (92 ) (259 ) — (17 ) (1,132 ) OCI before reclassifications, net of tax (129 ) 7 (23 ) — 5 (140 ) Amounts reclassified from AOCI: Before tax (1) 72 15 (7 ) — — 80 Tax effect 27 4 (3 ) — — 28 Amounts reclassified, net of tax 45 11 (4 ) — — 52 Total OCI, net of tax (84 ) 18 (27 ) — 5 (88 ) Reclassification of certain tax effects (156 ) (18 ) (70 ) — (3 ) (247 ) AOCI balance, December 31, 2017 $ (1,004 ) $ (92 ) $ (356 ) $ — $ (15 ) $ (1,467 ) (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 or 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 | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the income tax provision are as follows: Year Ended December 31, (Dollars in millions) 2017 2016 2015 Current expense: Federal $ 539 $ 959 $ 585 State 80 97 99 Total current expense 619 1,056 684 Deferred expense: Federal 253 (14 ) 99 State 39 16 11 Total deferred expense 292 2 110 Provision for income taxes $ 911 $ 1,058 $ 794 The reasons for the difference between the provision for income taxes and the amount computed by applying the statutory Federal income tax rate to income before income taxes were as follows: Year Ended December 31, (Dollars in millions) 2017 2016 2015 Federal income taxes at statutory rate of 35% $ 1,164 $ 1,225 $ 1,021 Increase (decrease) in provision for income taxes as a result of: State income taxes, net of federal tax benefit 77 73 72 Affordable housing projects proportional amortization 236 205 181 Affordable housing projects tax credits and other tax benefits (319 ) (279 ) (249 ) Tax exempt income (139 ) (151 ) (129 ) Federal tax reform impact (43 ) — — Excess tax benefits for equity-based compensation (52 ) — — Adjustments for uncertain tax positions — (6 ) (107 ) Other, net (13 ) (9 ) 5 Provision for income taxes $ 911 $ 1,058 $ 794 Effective income tax rate 27.4 % 30.2 % 27.2 % The Tax Cuts and Jobs Act was signed into law December 22, 2017. The net tax benefit recognized as a result of the revaluation of deferred taxes and investment in affordable housing projects is presented as Federal tax reform impact in the above table. The tax effects of temporary differences that gave rise to deferred tax assets and liabilities are reflected in the table below: December 31, (Dollars in millions) 2017 2016 Deferred tax assets: ALLL $ 359 $ 564 Postretirement plans 311 451 Net unrealized loss on AFS securities 112 155 Equity-based compensation 66 124 Reserves and expense accruals 114 238 Partnerships 70 116 Other 160 317 Total deferred tax assets 1,192 1,965 Deferred tax liabilities: Prepaid pension plan expense 436 558 MSRs 234 358 Lease financing 366 587 Loan fees and expenses 114 103 Identifiable intangible assets 163 224 Other 31 45 Total deferred tax liabilities 1,344 1,875 Net deferred tax asset (liability) $ (152 ) $ 90 On a periodic basis, BB&T evaluates its income tax positions based on tax laws and regulations and financial reporting considerations, and records adjustments as appropriate. This evaluation takes into consideration the status of current taxing authorities’ examinations of BB&T’s tax returns, recent positions taken by the taxing authorities on similar transactions and the overall tax environment in relation to tax-advantaged transactions. The following table presents changes in unrecognized tax benefits: As of/ For the Year Ended December 31, (Dollars in millions) 2017 2016 2015 Beginning balance of unrecognized tax benefits $ 1 $ 426 $ 503 Additions based on tax positions related to current year — — — Additions (reductions) for tax positions of prior years — (5 ) (76 ) Settlements — (420 ) (1 ) Lapse of statute of limitations — — (1 ) Unrecognized deferred tax benefits from acquisitions — — 1 Ending balance of unrecognized tax benefits $ 1 $ 1 $ 426 Unrecognized tax benefits that would have impacted effective rate if recognized Federal $ — $ — $ 422 State 1 1 3 During 2015, the U.S. Court of Appeals for the Federal Circuit overturned a portion of an earlier ruling pertaining to the disallowance of foreign tax credits and other deductions claimed by a subsidiary in connection with a financing transaction, which resulted in the recognition of a $107 million income tax benefit. During 2016, the U.S. Supreme Court declined to hear the case, which preserved the earlier ruling and effectively concluded this matter. The Company had immaterial amounts accrued for tax-related interest and penalties at December 31, 2017 and 2016 . The amount of net interest and penalties related to unrecognized tax benefits recognized in the Consolidated Statements of Income was immaterial for all periods presented. The IRS has completed its Federal income tax examinations of BB&T through 2013 . Various years remain subject to examination by state taxing authorities. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Defined Benefit Retirement Plans BB&T provides defined benefit retirement plans qualified under the IRC that cover most employees. Benefits are based on years of service, age at retirement and the employee's compensation during the five highest consecutive years of earnings within the last ten years of employment. In addition, supplemental retirement benefits are provided to certain key officers under supplemental defined benefit executive retirement plans, which are not qualified under the IRC. Although technically unfunded plans, Rabbi Trusts and insurance policies on the lives of certain of the covered employees are available to finance future benefits. The following actuarial assumptions were used to determine net periodic pension costs for the qualified pension plans: December 31, 2017 2016 2015 Weighted average assumed discount rate 4.43 % 4.68 % 4.27 % Weighted average expected long-term rate of return on plan assets 7.00 7.00 7.50 Assumed long-term rate of annual compensation increases 4.50 4.50 4.50 The weighted average expected long-term rate of return on plan assets represents the average rate of return expected to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. In developing the expected rate of return, BB&T considers long-term compound annualized returns of historical market data for each asset category, as well as historical actual returns on the plan assets. Using this reference information, the Company develops forward-looking return expectations for each asset category and a weighted average expected long-term rate of return for the plan based on target asset allocations contained in BB&T's Investment Policy Statement. For 2018, the expected rate of return on plan assets is 7.0% . Financial data relative to qualified and nonqualified defined benefit pension plans is summarized in the following tables for the years indicated. On the Consolidated Balance Sheets, the qualified pension plan prepaid asset is recorded as a component of other assets and the nonqualified pension plans accrued liability is recorded as a component of other liabilities. The data is calculated using an actuarial measurement date of December 31. Year Ended December 31, (Dollars in millions) 2017 2016 2015 Net Periodic Pension Cost: Service cost $ 200 $ 186 $ 176 Interest cost 192 181 157 Estimated return on plan assets (372 ) (326 ) (327 ) Net amortization and other 75 80 67 Net periodic benefit cost 95 121 73 Pre-Tax Amounts Recognized in OCI: Prior service credit (cost) 30 — — Net actuarial loss (gain) 137 138 230 Net amortization (75 ) (80 ) (67 ) Net amount recognized in OCI 92 58 163 Total net periodic pension costs (income) recognized in total comprehensive income, pre-tax $ 187 $ 179 $ 236 The following actuarial assumptions were used to determine benefit obligations: December 31, 2017 2016 Weighted average assumed discount rate 3.79 % 4.43 % Assumed rate of annual compensation increases 4.50 4.50 Activity in the projected benefit obligation is presented in the following table: Qualified Plan Nonqualified Plans Year Ended December 31, Year Ended December 31, (Dollars in millions) 2017 2016 2017 2016 Projected benefit obligation, beginning of year $ 3,939 $ 3,473 $ 426 $ 392 Service cost 188 174 12 12 Interest cost 173 163 19 18 Actuarial (gain) loss 576 152 77 15 Benefits paid (102 ) (94 ) (12 ) (11 ) Plan amendments 165 — (135 ) — Acquisitions — 71 — — Projected benefit obligation, end of year $ 4,939 $ 3,939 $ 387 $ 426 Accumulated benefit obligation, end of year $ 4,198 $ 3,403 $ 288 $ 363 Effective December 31, 2017, the qualified defined benefit plan was amended and a portion of the accrued benefits of participants in the nonqualified plan were shifted to the qualified plan. Affected associates continue to participate in the nonqualified plan for benefits earned in 2017 and later. In conjunction with this shift, a minimum benefit was established under the qualified plan. Activity in plan assets is presented in the following table: Qualified Plan Nonqualified Plans Year Ended December 31, Year Ended December 31, (Dollars in millions) 2017 2016 2017 2016 Fair value of plan assets, beginning of year $ 5,044 $ 4,369 $ — $ — Actual return on plan assets 888 356 — — Employer contributions 479 360 13 11 Benefits paid (102 ) (94 ) (13 ) (11 ) Acquisitions — 53 — — Fair value of plan assets, end of year $ 6,309 $ 5,044 $ — $ — Funded status at end of year $ 1,370 $ 1,105 $ (387 ) $ (426 ) The following are the pre-tax amounts recognized in AOCI: Qualified Plan Nonqualified Plans Year Ended December 31, Year Ended December 31, (Dollars in millions) 2017 2016 2017 2016 Prior service credit (cost) $ (165 ) $ — $ 134 $ (1 ) Net actuarial loss (1,092 ) (1,095 ) (198 ) (135 ) Net amount recognized $ (1,257 ) $ (1,095 ) $ (64 ) $ (136 ) The following table presents the amount expected to be amortized from AOCI into net periodic pension cost during 2018 : (Dollars in millions) Qualified Plan Nonqualified Plans Net actuarial loss $ (49 ) $ (22 ) Prior service credit (cost) (25 ) $ 19 Net amount expected to be amortized in 2018 $ (74 ) $ (3 ) BB&T makes contributions to the qualified pension plan in amounts between the minimum required for funding and the maximum amount deductible for federal income tax purposes. BB&T made discretionary contributions of $144 million during the first quarter of 2018 . Management may make additional contributions in 2018 . For the nonqualified plans, the employer contributions are based on benefit payments. The following table reflects the estimated benefit payments for the periods presented: (Dollars in millions) Qualified Plan Nonqualified Plans 2018 $ 114 $ 15 2019 125 15 2020 137 16 2021 150 16 2022 164 17 2023-2027 1,042 101 BB&T's primary total return objective is to achieve returns that, over the long term, will fund retirement liabilities and provide for the desired plan benefits in a manner that satisfies the fiduciary requirements of the Employee Retirement Income Security Act of 1974. The plan assets have a long-term time horizon that runs concurrent with the average life expectancy of the participants. As such, the Plan can assume a time horizon that extends well beyond a full market cycle, and can assume an above-average level of risk, as measured by the standard deviation of annual return. It is expected, however, that both professional investment management and sufficient portfolio diversification will smooth volatility and help to generate a reasonable consistency of return. The investments are broadly diversified among economic sector, industry, quality and size in order to reduce risk and to produce incremental return. Within approved guidelines and restrictions, investment managers have wide discretion over the timing and selection of individual investments. BB&T periodically reviews its asset allocation and investment policy and makes changes to its target asset allocation. BB&T has established guidelines within each asset category to ensure the appropriate balance of risk and reward. For the year ended December 31, 2017 , the target asset allocations for the plan assets included a range of 30% to 50% for U.S. equity securities, 11% to 18% for international equity securities, 35% to 53% for fixed income securities, and 0% to 14% for alternative investments, which include real estate, hedge funds and private equities. The plan may hold up to 10% of its assets in BB&T common stock. The fair values of certain pension plan assets by asset category are reflected in the following table: December 31, 2017 December 31, 2016 (Dollars in millions) Total Level 1 Level 2 Total Level 1 Level 2 Cash and cash-equivalents $ 67 $ 67 $ — $ 179 $ 179 $ — U.S. equity securities 2,503 1,333 1,170 1,892 1,018 874 International equity securities 1,130 195 935 839 165 674 Fixed income securities 2,452 10 2,442 1,914 10 1,904 Total $ 6,152 $ 1,605 $ 4,547 $ 4,824 $ 1,372 $ 3,452 International equity securities include a common/commingled fund that consists of assets from several accounts, pooled together, to reduce management and administration costs. Investments measured at fair value using the net asset value per share or equivalent as a practical expedient are not required to be classified in the fair value hierarchy. The pension plan held alternative investments valued using net asset values totaling $105 million and $199 million at December 31, 2017 and 2016 , respectively. Defined Contribution Plans BB&T offers a 401(k) Savings Plan and other defined contribution plans that permit employees to contribute from 1% to 50% of their cash compensation. For full-time employees who are 21 years of age or older with one year or more of service, BB&T makes matching contributions of up to 6% of the employee's compensation. BB&T's contribution expense for the 401(k) Savings Plan and nonqualified defined contribution plans totaled $133 million , $129 million and $114 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Certain employees of subsidiaries participate in the 401(k) Savings Plan with different matching formulas. Other Benefits There are various other employment contracts, deferred compensation arrangements and covenants not to compete with selected members of management and certain retirees. These plans and their obligations are not material to the financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies BB&T utilizes a variety of financial instruments to meet the financing needs of clients and to reduce exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, letters of credit and financial guarantees and derivatives. BB&T also has commitments to fund certain affordable housing investments and contingent liabilities related to certain sold loans. Commitments to extend, originate or purchase credit are primarily lines of credit to businesses and consumers and have specified rates and maturity dates. Many of these commitments also have adverse change clauses, which allow BB&T to cancel the commitment due to deterioration in the borrowers’ creditworthiness. December 31, (Dollars in millions) 2017 2016 Letters of credit $ 2,466 $ 2,786 Carrying amount of the liability for letters of credit 21 27 Investments in affordable housing projects: Carrying amount 1,948 1,719 Amount of future funding commitments included in carrying amount 928 738 Lending exposure 561 495 Tax credits subject to recapture 471 413 Private equity investments 471 417 Future funding commitments to private equity investments 143 199 Letters of credit and financial guarantees written are unconditional commitments issued by BB&T to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support borrowing arrangements, including commercial paper issuance, bond financing and similar transactions, the majority of which are to tax exempt entities. The credit risk involved in the issuance of these guarantees is essentially the same as that involved in extending loans to clients and as such, the instruments are collateralized when necessary. BB&T invests in certain affordable housing projects throughout its market area as a means of supporting local communities. BB&T receives tax credits related to these investments. BB&T typically acts as a limited partner in these investments and does not exert control over the operating or financial policies of the partnerships. BB&T typically provides financing during the construction and development of the properties; however, permanent financing is generally obtained from independent third parties upon completion of a project. Tax credits are subject to recapture by taxing authorities based on compliance features required to be met at the project level. BB&T’s maximum potential exposure to losses relative to investments in VIEs is generally limited to the sum of the outstanding balance, future funding commitments and any related loans to the entity. Loans to these entities are underwritten in substantially the same manner as are other loans and are generally secured. BB&T has investments in and future funding commitments to private equity and certain other equity method investments. The majority of these investments are private equity funds that are consolidated into BB&T's financial statements. The risk exposure relating to such commitments is generally limited to the amount of investments and future funding commitments made. BB&T has sold certain mortgage-related loans that contain recourse provisions. These provisions generally require BB&T to reimburse the investor for a share of any loss that is incurred after the disposal of the property. BB&T also issues standard representations and warranties related to mortgage loan sales to GSEs. Refer to " Note 6. Loan Servicing " for additional disclosures related to these exposures. In the ordinary course of business, BB&T indemnifies its officers and directors to the fullest extent permitted by law against liabilities arising from pending litigation. BB&T also issues standard representations and warranties in underwriting agreements, merger and acquisition agreements, loan sales, brokerage activities and other similar arrangements. Counterparties in many of these indemnification arrangements provide similar indemnifications to BB&T. Although these agreements often do not specify limitations, BB&T does not believe that any payments related to these guarantees would materially change the financial position or results of operations of BB&T. 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 a regular 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, 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 are excluded from the following table. December 31, (Dollars in millions) 2017 2016 Pledged securities $ 14,636 $ 15,549 Pledged loans 74,718 75,015 |
Regulatory Requirements and Oth
Regulatory Requirements and Other Restrictions | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Requirements and Other Restrictions | Regulatory Requirements and Other Restrictions Branch Bank is required by the FRB to maintain reserve balances in the form of vault cash or deposits with the FRB based on specified percentages of certain deposit types, subject to various adjustments. At December 31, 2017 , the net reserve requirement was met with vault cash. Branch Bank is subject to laws and regulations that limit the amount of dividends it can pay. In addition, both BB&T and Branch Bank are subject to various regulatory restrictions relating to the payment of dividends, including requirements to maintain capital at or above regulatory minimums, and to remain "well-capitalized" under the prompt corrective action regulations. BB&T does not expect that any of these laws, regulations or policies will materially affect the ability of Branch Bank to pay dividends. BB&T is subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated pursuant to regulatory directives. BB&T’s capital amounts and classification also are subject to qualitative judgments by the regulators about components, risk weightings and other factors. BB&T is in full compliance with these requirements. Banking regulations also identify five capital categories for IDIs: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. At December 31, 2017 and 2016 , BB&T and Branch Bank were classified as "well-capitalized," and management believes that no events or changes have occurred subsequent to year end that would change this designation. Quantitative measures established by regulation to ensure capital adequacy require BB&T to maintain minimum ratios of CET1, Tier 1 and Total Capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average tangible assets (leverage ratio). Risk-based capital ratios, which include CET1, Tier 1 Capital and Total Capital, are calculated based on regulatory guidance related to the measurement of capital and risk-weighted assets. December 31, 2017 December 31, 2016 Actual Capital Capital Requirements Actual Capital Capital Requirements (Dollars in millions) Ratio Amount Minimum Well-Capitalized Ratio Amount Minimum Well-Capitalized CET1 Capital: BB&T Corporation 10.2 % $ 18,051 $ 7,975 $ 11,519 10.2 % $ 18,050 $ 7,926 $ 11,449 Branch Bank 11.3 19,480 7,752 11,197 11.5 19,839 7,730 11,166 Tier 1 Capital: BB&T Corporation 11.9 21,102 10,633 14,177 12.0 21,102 10,568 14,091 Branch Bank 11.3 19,480 10,336 13,781 11.5 19,839 10,307 13,743 Total Capital: BB&T Corporation 13.9 24,653 14,177 17,722 14.1 24,872 14,091 17,614 Branch Bank 13.3 22,915 13,781 17,226 13.6 23,289 13,743 17,179 Leverage Capital: BB&T Corporation 9.9 21,102 8,567 10,708 10.0 21,102 8,460 10,576 Branch Bank 9.4 19,480 8,315 10,394 9.6 19,839 8,249 10,311 As an approved seller/servicer, Branch Bank is required to maintain minimum levels of capital, as specified by various agencies, including the U.S. Department of Housing and Urban Development, GNMA, FHLMC and FNMA. At December 31, 2017 and 2016 , Branch Bank’s capital was above all required levels. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Financial Statements | Parent Company Financial Statements Parent Company - Condensed Balance Sheets December 31, (Dollars in millions) 2017 2016 Assets: Cash and due from banks $ 13 $ 21 Interest-bearing deposits with banks 6,365 7,094 AFS securities at fair value 133 134 HTM securities at amortized cost 1 1 Advances to / receivables from subsidiaries: Banking 2,454 850 Nonbank 3,664 2,981 Total advances to / receivables from subsidiaries 6,118 3,831 Investment in subsidiaries: Banking 27,846 28,444 Nonbank 1,373 1,279 Total investment in subsidiaries 29,219 29,723 Other assets 66 131 Total assets $ 41,915 $ 40,935 Liabilities and Shareholders' Equity: Short-term borrowings $ 7 $ 46 Long-term debt 12,042 10,836 Accounts payable and other liabilities 171 127 Total liabilities 12,220 11,009 Total shareholders' equity 29,695 29,926 Total liabilities and shareholders' equity $ 41,915 $ 40,935 Parent Company - Condensed Income and Comprehensive Income Statements Year Ended December 31, (Dollars in millions) 2017 2016 2015 Income: Dividends from subsidiaries: Banking $ 1,950 $ 1,350 $ 1,600 Nonbank 40 6 411 Total dividends from subsidiaries 1,990 1,356 2,011 Interest and other income from subsidiaries 112 73 64 Other income 2 3 3 Total income 2,104 1,432 2,078 Expenses: Interest expense 227 160 165 Other expenses 83 56 103 Total expenses 310 216 268 Income before income taxes and equity in undistributed earnings of subsidiaries 1,794 1,216 1,810 Income tax benefit 63 38 40 Income before equity in undistributed earnings of subsidiaries 1,857 1,254 1,850 Equity in undistributed earnings of subsidiaries in excess of dividends from subsidiaries 558 1,188 273 Net income 2,415 2,442 2,123 Total OCI (88 ) (104 ) (277 ) Total comprehensive income $ 2,327 $ 2,338 $ 1,846 Parent Company - Statements of Cash Flows Year Ended December 31, (Dollars in millions) 2017 2016 2015 Cash Flows From Operating Activities: Net income $ 2,415 $ 2,442 $ 2,123 Adjustments to reconcile net income to net cash from operating activities: Equity in earnings of subsidiaries in excess of dividends from subsidiaries (558 ) (1,188 ) (273 ) Other, net — (14 ) 35 Net cash from operating activities 1,857 1,240 1,885 Cash Flows From Investing Activities: Proceeds from maturities, calls and paydowns of AFS securities 29 27 49 Purchases of AFS securities (29 ) (31 ) (21 ) Proceeds from maturities, calls and paydowns of HTM securities — 2 27 Investment in subsidiaries 1,100 (85 ) 17 Advances to subsidiaries (6,958 ) (7,719 ) (7,461 ) Proceeds from repayment of advances to subsidiaries 4,671 6,975 6,831 Net cash from acquisitions and divestitures — (254 ) (595 ) Other, net 1 — — Net cash from investing activities (1,186 ) (1,085 ) (1,153 ) Cash Flows From Financing Activities: Net change in short-term borrowings (39 ) (60 ) 30 Net change in long-term debt 1,319 465 (92 ) Repurchase of common stock (1,613 ) (520 ) — Net cash from common stock transactions in connection with equity awards 108 218 68 Net proceeds from preferred stock issued — 450 — Cash dividends paid on common and preferred stock (1,179 ) (1,092 ) (937 ) Other, net (4 ) 7 — Net cash from financing activities (1,408 ) (532 ) (931 ) Net Change in Cash and Cash Equivalents (737 ) (377 ) (199 ) Cash and Cash Equivalents at Beginning of Period 7,115 7,492 7,691 Cash and Cash Equivalents at End of Period $ 6,378 $ 7,115 $ 7,492 The transfer of funds in the form of dividends, loans or advances from bank subsidiaries to the Parent Company is restricted. Federal law requires loans to the Parent Company or its affiliates to be secured and at market terms and generally limits loans to the Parent Company or an individual affiliate to 10% of Branch Bank’s unimpaired capital and surplus. In the aggregate, loans to the Parent Company and all affiliates cannot exceed 20% of the bank’s unimpaired capital and surplus. Dividend payments to the Parent Company by Branch Bank are subject to regulatory review and statutory limitations and, in some instances, regulatory approval. In general, dividends from Branch Bank to the Parent Company are limited by rules which compare dividends to net income for regulatory-defined periods. Furthermore, dividends are restricted by regulatory minimum capital constraints. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures 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 tables present fair value information for assets and liabilities measured at fair value on a recurring basis: December 31, 2017 (Dollars in millions) Total Level 1 Level 2 Level 3 Assets: Trading securities $ 633 $ 363 $ 270 $ — AFS securities: U.S. Treasury 2,291 — 2,291 — GSE 179 — 179 — Agency MBS 20,101 — 20,101 — States and political subdivisions 1,392 — 1,392 — Non-agency MBS 576 — 144 432 Other 8 6 2 — Total AFS securities 24,547 6 24,109 432 LHFS 1,099 — 1,099 — MSRs 1,056 — — 1,056 Derivative assets: Interest rate contracts 440 — 434 6 Foreign exchange contracts 3 — 3 — Total derivative assets 443 — 437 6 Private equity investments 404 — — 404 Total assets $ 28,182 $ 369 $ 25,915 $ 1,898 Liabilities: Derivative liabilities: Interest rate contracts $ 708 $ — $ 705 $ 3 Foreign exchange contracts 6 — 6 — Total derivative liabilities 714 — 711 3 Securities sold short 120 — 120 — Total liabilities $ 834 $ — $ 831 $ 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 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 then 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: Private equity investments are measured at fair value based on the investment’s net asset value. 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 table summarizes activity for Level 3 assets and liabilities: Non-agency MBS MSRs Net Derivatives Private Equity Investments (Dollars in millions) Balance at January 1, 2015 $ 745 $ 844 $ 17 $ 329 Total realized and unrealized gains (losses): Included in earnings (1) 23 10 81 49 Included in unrealized holding gains (losses) in OCI (45 ) — — — Purchases — — 1 81 Issuances — 156 74 — Sales — — — (132 ) Settlements (97 ) (130 ) (169 ) (38 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Balance at December 31, 2015 626 880 4 289 Total realized and unrealized gains (losses): Included in earnings (1) 25 63 97 20 Included in unrealized net holding gains (losses) in OCI (45 ) — — — Purchases — — — 106 Issuances — 146 82 — Sales — — — (4 ) Settlements (99 ) (160 ) (196 ) (49 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Adoption of fair value option for commercial MSRs — 123 — — Balance at December 31, 2016 507 1,052 (13 ) 362 Total realized and unrealized gains (losses): Included in earnings (1) 36 48 38 58 Included in unrealized net holding gains (losses) in OCI (40 ) — — — Purchases — — — 142 Issuances — 124 43 — Sales — — — (119 ) Settlements (71 ) (168 ) (65 ) (26 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — (13 ) Balance at December 31, 2017 $ 432 $ 1,056 $ 3 $ 404 Change in unrealized gains (losses) included in earnings for the year attributable to assets and liabilities still held at December 31, 2017 $ 35 $ 48 $ 3 $ 12 (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. Transfers in and out of Level 3 are shown in the preceding tables. There were no transfers between Level 1 and Level 2 during 2017 , 2016 or 2015 . 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 December 31, 2017 , the fair value of the Re-REMIC non-agency MBS represented a discount of 21.1% 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 on an approximately ratable basis through 2026 , is uncertain and dependent on various events such as recapitalizations, refinance transactions and ownership changes, among others. As of December 31, 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. BB&T’s 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 14 x, with a weighted average of 9 x, at December 31, 2017 . The following table details the fair value and UPB of LHFS that were elected to be carried at fair value: December 31, 2017 December 31, 2016 (Dollars in millions) Fair Value Aggregate UPB Difference Fair Value Aggregate UPB Difference LHFS reported at fair value $ 1,099 $ 1,084 $ 15 $ 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 December 31, 2017 . The following table provides information about certain financial 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). As Of / For the Year Ended December 31, 2017 December 31, 2016 (Dollars in millions) Carrying Value Valuation Adjustments Carrying Value Valuation Adjustments Impaired loans $ 163 $ (22 ) $ 278 $ (89 ) Foreclosed real estate 32 (255 ) 50 (221 ) 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: December 31, 2017 Carrying Amount Total Fair Value Level 2 Level 3 (Dollars in millions) Financial assets: HTM securities $ 23,027 $ 22,837 $ 22,837 $ — Loans and leases HFI, net of ALLL 142,211 141,664 — 141,664 Financial liabilities: Deposits 157,371 157,466 157,466 — Long-term debt 23,648 23,885 23,885 — December 31, 2016 Carrying Amount Total Fair Value Level 2 Level 3 (Dollars in millions) 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: December 31, 2017 December 31, 2016 (Dollars in millions) Notional/Contract Amount Fair Value Notional/Contract Amount Fair Value Commitments to extend, originate or purchase credit $ 67,860 $ 259 $ 64,395 $ 250 Residential mortgage loans sold with recourse 490 5 578 7 Other loans sold with recourse 4,153 5 4,240 7 Letters of credit 2,466 21 2,786 27 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 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: December 31, 2017 December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value (Dollars in millions) Hedged Item or Transaction Gain Loss Gain Loss Cash flow hedges: Interest rate contracts: Pay fixed swaps 3 mo. LIBOR funding $ 6,500 $ — $ (126 ) $ 7,050 $ — $ (187 ) Fair value hedges: Interest rate contracts: Receive fixed swaps Long-term debt 15,538 118 (166 ) 12,099 202 (100 ) Options Long-term debt 6,087 — (1 ) 2,790 — (1 ) Pay fixed swaps Commercial loans 416 5 (1 ) 346 4 (2 ) Pay fixed swaps Municipal securities 231 — (76 ) 231 — (83 ) Total 22,272 123 (244 ) 15,466 206 (186 ) Not designated as hedges: Client-related and other risk management: Interest rate contracts: Receive fixed swaps 10,880 141 (61 ) 9,989 235 (44 ) Pay fixed swaps 10,962 59 (155 ) 10,263 43 (252 ) Other swaps 936 2 (2 ) 1,086 2 (5 ) Other 722 2 (2 ) 709 2 (2 ) Forward commitments 3,549 3 (2 ) 5,972 29 (28 ) Foreign exchange contracts 470 3 (6 ) 669 8 (5 ) Total 27,519 210 (228 ) 28,688 319 (336 ) Mortgage banking: Interest rate contracts: Interest rate lock commitments 1,308 7 (3 ) 2,219 7 (20 ) When issued securities, forward rate agreements and forward commitments 3,124 4 (3 ) 6,683 51 (14 ) Other 182 1 — 449 2 (1 ) Total 4,614 12 (6 ) 9,351 60 (35 ) MSRs: Interest rate contracts: Receive fixed swaps 4,498 15 (86 ) 5,034 18 (236 ) Pay fixed swaps 3,418 32 (13 ) 3,768 56 (7 ) Options 4,535 50 (11 ) 5,710 160 (8 ) When issued securities, forward rate agreements and forward commitments 1,813 1 — 3,210 3 (8 ) Other 3 — — — — — Total 14,267 98 (110 ) 17,722 237 (259 ) Total derivatives not designated as hedges 46,400 320 (344 ) 55,761 616 (630 ) Total derivatives $ 75,172 443 (714 ) $ 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 (297 ) 297 (443 ) 443 Cash collateral (received) posted (20 ) 344 (119 ) 450 Net amount $ 126 $ (73 ) $ 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. Cash collateral posted for derivatives in a loss position is reported as restricted cash. Derivatives with dealer counterparties at both the bank and the parent company are governed by the terms of ISDA Master netting agreements and Credit Support Annexes. The ISDA Master agreements allow counterparties to offset trades in a gain against trades in a loss to determine net exposure and allows for the right of setoff in the event of either a default or an additional termination event. Credit Support Annexes govern the terms of daily collateral posting practices. 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 table presents the effect of hedging derivative instruments on the consolidated statements of income: Effective Portion Year Ended December 31 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 2015 2017 2016 2015 Cash Flow Hedges: Interest rate contracts $ 10 $ (24 ) $ (130 ) Total interest expense $ (15 ) $ (11 ) $ (83 ) Location of Amounts Recognized in Income Pre-tax Gain (Loss) Recognized in Income 2017 2016 2015 (Dollars in millions) Fair Value Hedges: Interest rate contracts Total interest income $ (19 ) $ (18 ) $ (20 ) Interest rate contracts Total interest expense 148 226 279 Total $ 129 $ 208 $ 259 Not Designated as Hedges: Client-related and other risk management: Interest rate contracts Other income $ 50 $ 52 $ 27 Foreign exchange contracts Other income 1 11 21 Mortgage Banking: Interest rate contracts Mortgage banking income (12 ) 8 7 MSRs: Interest rate contracts Mortgage banking income — 31 32 Total $ 39 $ 102 $ 87 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. Losses 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, cash flows from terminations are reported in the same category as the cash flows from the hedged item 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: December 31, (Dollars in millions) 2017 2016 Cash flow hedges: Net unrecognized after-tax loss on active hedges recorded in AOCI $ (96 ) $ (118 ) Net unrecognized after-tax gain on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) 3 26 Estimated portion of net after-tax loss on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months (25 ) (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 yrs 6 yrs Fair value hedges: Unrecognized pre-tax net gain on terminated hedges (to be recognized as interest primarily through 2019) $ 129 $ 169 Portion of pre-tax net gain on terminated hedges to be recognized as a change in interest during the next 12 months 49 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 negotiated 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. December 31, (Dollars in millions) 2017 2016 Dealer Counterparties: Cash collateral received from dealer counterparties $ 21 $ 123 Derivatives in a net gain position secured by collateral received 22 123 Unsecured positions in a net gain with dealer counterparties after collateral postings 2 4 Cash collateral posted to dealer counterparties 172 138 Derivatives in a net loss position secured by collateral posted 171 144 Additional collateral that would have been posted had BB&T's credit ratings dropped below investment grade — 8 Central Clearing Parties: Cash collateral, including initial margin, posted to central clearing parties 177 313 Derivatives in a net loss position secured by that collateral 176 318 Securities pledged to central clearing parties 91 119 |
Computation of EPS
Computation of EPS | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of EPS | Computation of EPS Basic and diluted EPS calculations are presented in the following table: Year Ended December 31, (Dollars in millions, except per share data, shares in thousands) 2017 2016 2015 Net income available to common shareholders $ 2,220 $ 2,259 $ 1,936 Weighted average number of common shares 799,217 804,680 748,010 Effect of dilutive outstanding equity-based awards 11,760 10,236 9,755 Weighted average number of diluted common shares 810,977 814,916 757,765 Basic EPS $ 2.78 $ 2.81 $ 2.59 Diluted EPS $ 2.74 $ 2.77 $ 2.56 Anti-dilutive awards 210 5,609 8,620 |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments BB&T previously reported its results of operations through the following business segments: Community Banking, Residential Mortgage Banking, Dealer Financial Services, Specialized Lending, Insurance Holdings and Financial Services, with the remaining operations recorded in OT&C. In the fourth quarter of 2017, BB&T revised its management structure and changed its basis of presentation into four new business segments: CB-Retail, CB-Commercial, IH&PF and FS&CF, with the remaining operations recorded in OT&C. The new business segment structure aligns with how BB&T’s management reviews performance and makes decisions by client, segment and business unit. The CB-Retail segment brings together the existing Community Banking retail services and operations with the BUs and subsidiaries that primarily serve retail clients, including the former Residential Mortgage Banking, and portions of both Dealer Financial Services and Specialized Lending segments. The services and operations that support large, medium and small business clients from the prior Community Banking and Dealer Financial Services are included in the CB-Commercial segment. The FS&CF segment combines the previous Financial Services operations with the Equipment Finance, Governmental Finance and Grandbridge businesses from the former Specialized Lending segment as those businesses are national in scope consistent with the Capital Markets Corporate Banking Division. The IH&PF received the Prime Rate Premium Finance Corporation from the former Specialized Lending segment as it finances insurance premiums. Prior periods have been revised to reflect the restructuring. The segments require unique technology and marketing strategies and offer different products and services through a number of distinctly branded BUs. In addition, there is an OT&C segment. While BB&T is managed as an integrated organization, individual executive managers are held accountable for the operations of these business segments. Also during 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 CB-Retail segment, offset by the OT&C segment. Results for prior periods have been revised to reflect the changes in allocation methodology, which are not considered significant to other segments. BB&T emphasizes revenue growth by focusing on client service, sales effectiveness and relationship management along with an organizational focus on referring clients between BUs. The business objective is to provide BB&T’s entire suite of products to our clients with the end goal of providing our clients the best financial experience in the marketplace. The segment results are presented based on internal management accounting methodologies that were designed to support these strategic objectives. Unlike financial accounting, there is no comprehensive authoritative body of guidance for management accounting equivalent to GAAP. The performance of the segments is not comparable with BB&T’s consolidated results or with similar information presented by any other financial institution. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. The management accounting process uses various estimates and allocation methodologies to measure the performance of the operating segments. To determine financial performance for each segment, BB&T allocates capital, funding charges and credits, provisions for credit losses, certain noninterest expenses and income tax provisions to each segment, as applicable. To promote revenue growth, certain revenues are reflected in noninterest income in the individual segment results and also allocated to CB-Retail, CB-Commercial and FS&CF. These allocated revenues are reflected as net referral fees in non-interest income and eliminated in OT&C. Additionally, certain client groups of CB-Retail and CB-Commercial have also been identified as clients of other BUs within the business segments. Periodically, existing clients within the CB-Retail segment may be identified and assigned as Wealth Division clients, at which time, these clients’ loan and deposit balances are reported in the FS&CF segment. The net interest income and related net FTP associated with these customers’ loans and deposits are accounted for in CB-Retail in the respective line categories of net interest income (expense) and net intersegment interest income (expense). For the Wealth Division, NIM and net intersegment interest income have been combined in the net intersegment interest income (expense) line with an appropriate offsetting amount to the OT&C line item to ensure consolidated totals reflect the Company’s total NIM for loans and deposits. Allocation methodologies are subject to periodic adjustment as the internal management accounting system is revised and business or product lines within the segments change. BB&T utilizes an FTP system to eliminate the effect of interest rate risk from the segments’ net interest income because such risk is centrally managed within the Treasury function. The FTP system credits or charges the segments with the economic value or cost of the funds the segments create or use. The net FTP credit or charge, which includes intercompany interest income and expense, is reflected as net intersegment interest income (expense) in the accompanying tables. The provision for credit losses is also allocated to the relevant segments based on management’s assessment of the segments’ credit risks. The allocated provision is designed to achieve a high degree of correlation between the loan loss experience and the GAAP basis provision at the segment level, while at the same time providing management with a measure of operating performance that gives appropriate consideration to the risks inherent in each of the Company’s operating segments. Any over or under allocated provision for credit losses is reflected in OT&C to arrive at consolidated results. BB&T allocates expenses to the reportable segments based on various methodologies, including volume and amount of loans and deposits and the number of full-time equivalent employees. Allocation systems are refined from time to time along with further identification of certain cost pools. These cost pools and refinements are implemented to provide for improved managerial reporting of cost to the appropriate business segments. A portion of corporate overhead expense is not allocated, but is retained in OT&C in the accompanying tables. The majority of depreciation expense is recorded in support units and allocated to the segments as part of allocated corporate expense. Income taxes are allocated to the various segments based on taxable income and statutory rates applicable to the segment. Community Banking Retail and Consumer Finance CB-Retail serves retail clients by offering a variety of loan and deposit products, payment services, bankcard products and other financial services by connecting clients to a wide range of financial products and services. CB-Retail includes Residential Mortgage Banking, which 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 used 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. CB-Retail also includes Dealer Retail Services which 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. Additionally, CB-Retail originates loans for the purchase of boats and recreational vehicles originated through dealers in BB&T’s market area. CB-Retail includes Sheffield Financial which is a BU that provides specialty finance products to consumers; as well as BB&T Commercial Equipment Capital, which is an operating subsidiary that provides mid-market equipment leasing primarily within BB&T’s banking footprint. CB-Retail is primarily responsible for serving individual client relationships and, therefore, is credited with certain revenue from IH&PF and FS&CF, which is reflected in noninterest income. Community Banking Commercial CB-Commercial serves large, medium and small business clients by offering a variety of loan and deposit products and connecting the client with the combined organization’s broad array of financial services. CB-Commercial includes commercial real estate lending, commercial and industrial lending, corporate banking, asset based-lending, dealer inventory financing, tax exempt financing, cash management and treasury services, and commercial deposit products. CB-Commercial is primarily responsible for serving commercial client relationships and, therefore, is credited with certain revenue from CB-Retail, IH&PF and FS&CF, which is reflected in noninterest income. Financial Services and Commercial Finance FS&CF provides personal trust administration, estate planning, investment counseling, wealth management, asset management, corporate retirement services, capital markets and corporate banking services, corporate trust services and specialty finance products to businesses. FS&CF 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. FS&CF also offers clients investment alternatives, including discount brokerage services, equities, fixed-rate and variable-rate annuities, mutual funds and governmental and municipal bonds. FS&CF also includes specialty finance offered through two operating subsidiaries and a BU. Operating subsidiaries include Grandbridge, a full-service commercial mortgage banking lender providing loans on a national basis, and BB&T Equipment Finance, which provides equipment leasing for large and middle market clients. The BU is Governmental Finance which provides tax-exempt financing to meet the capital project needs of local governments. Branch Bank clients as well as nonbank clients within and outside BB&T’s primary geographic market area are served by these subsidiaries and the BU. In addition, FS&CF includes the Capital Markets Corporate Banking Division that originates and services large corporate relationships, syndicated lending relationships and client derivatives. CB-Retail and CB-Commercial receive an interoffice credit for referrals to FS&CF, with the corresponding charge retained as part of OT&C in the accompanying tables. Also captured within the net intersegment interest income for FS&CF is the NIM for the loans and deposits associated with client relationships assigned to the Wealth Division that are housed in CB-Retail. Insurance Holdings and Premium Finance BB&T's insurance agency / brokerage network is the fifth largest in the world. IH&PF 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. IH&PF also includes 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. CB-Retail, CB-Commercial and FS&CF segments receive credit for insurance commissions and referrals to IH&PF with the corresponding charge retained as part of OT&C in the accompanying tables. Other, Treasury & Corporate OT&C 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 in noninterest income and net intersegment interest income (expense). The investment balances and results related to affordable housing investments are included in the OT&C segment. Additionally, OT&C 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. 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 other segments as applicable. Year Ended December 31, CB-Retail CB-Commercial FS&CF (Dollars in millions) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net interest income (expense) $ 3,415 $ 3,290 $ 3,035 $ 1,740 $ 1,604 $ 1,345 $ 583 $ 511 $ 443 Net intersegment interest income (expense) 149 115 (119 ) 379 404 324 127 142 110 Segment net interest income 3,564 3,405 2,916 2,119 2,008 1,669 710 653 553 Allocated provision for credit losses 501 475 365 69 (40 ) 1 (15 ) 128 67 Segment net interest income after provision 3,063 2,930 2,551 2,050 2,048 1,668 725 525 486 Noninterest income 1,404 1,354 1,342 423 392 390 1,181 1,148 1,046 Noninterest expense 2,725 2,469 2,357 1,198 1,302 1,153 1,190 1,141 1,020 Income (loss) before income taxes 1,742 1,815 1,536 1,275 1,138 905 716 532 512 Provision (benefit) for income taxes 650 686 588 441 403 324 225 156 151 Segment net income (loss) $ 1,092 $ 1,129 $ 948 $ 834 $ 735 $ 581 $ 491 $ 376 $ 361 Identifiable assets (period end) $ 71,093 $ 74,642 $ 71,027 $ 56,563 $ 55,035 $ 51,231 $ 29,144 $ 26,795 $ 25,294 IH&PF OT&C (1) Total BB&T Corporation 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net interest income (expense) $ 98 $ 86 $ 79 $ 699 $ 830 $ 690 $ 6,535 $ 6,321 $ 5,592 Net intersegment interest income (expense) (21 ) (19 ) (16 ) (634 ) (642 ) (299 ) — — — Segment net interest income 77 67 63 65 188 391 6,535 6,321 5,592 Allocated provision for credit losses 4 3 4 (12 ) 6 (9 ) 547 572 428 Segment net interest income after provision 73 64 59 77 182 400 5,988 5,749 5,164 Noninterest income 1,777 1,731 1,611 (3 ) (153 ) (370 ) 4,782 4,472 4,019 Noninterest expense 1,590 1,525 1,371 741 284 365 7,444 6,721 6,266 Income (loss) before income taxes 260 270 299 (667 ) (255 ) (335 ) 3,326 3,500 2,917 Provision (benefit) for income taxes 99 104 105 (504 ) (291 ) (374 ) 911 1,058 794 Segment net income (loss) $ 161 $ 166 $ 194 $ (163 ) $ 36 $ 39 $ 2,415 $ 2,442 $ 2,123 Identifiable assets (period end) $ 6,024 $ 5,943 $ 4,998 $ 58,818 $ 56,861 $ 57,397 $ 221,642 $ 219,276 $ 209,947 (1) Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of BB&T Corporation and those subsidiaries that are majority owned by BB&T or over which BB&T exercises control. Intercompany accounts and transactions are eliminated in consolidation. The results of operations of companies or assets acquired are included from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise. BB&T holds investments in certain legal entities that are considered VIEs. VIEs are legal entities in which equity investors do not have sufficient equity at risk for the entity to independently finance its activities, or as a group, the holders of the equity investment at risk lack the power through voting or similar rights to direct the activities of the entity that most significantly impact its economic performance, or do not have the obligation to absorb the expected losses of the entity or the right to receive expected residual returns of the entity. Consolidation of a VIE is required if a reporting entity is the primary beneficiary of the VIE. Investments in VIEs are evaluated to determine if BB&T is the primary beneficiary. This evaluation gives appropriate consideration to the design of the entity and the variability that the entity was designed to pass along, the relative power of each party, and to BB&T’s relative obligation to absorb losses or receive residual returns of the entity, in relation to such obligations and rights held by each party. BB&T has variable interests in certain entities that were not required to be consolidated, including affordable housing and other partnership interests. Refer to " Note 13. Commitments and Contingencies " for additional disclosures regarding BB&T’s significant VIEs. BB&T accounts for unconsolidated partnerships and certain other investments using the equity method of accounting. BB&T records its portion of income or loss in other noninterest income in the Consolidated Statements of Income. These investments are periodically evaluated for impairment. BB&T also has investments in, and future funding commitments to, private equity investments, which are accounted for based on BB&T’s ownership and control rights specific to each investment. |
Reclassifications | Reclassifications The Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015 have 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 net effect of the revisions is as follows: (dollars in millions) 2016 2015 Net cash from operating activities $ 443 $ 216 Net cash from investing activities (326 ) (211 ) Net cash from financing activities (117 ) (5 ) Net change in cash and cash equivalents $ — $ — Certain other amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. |
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 goodwill, intangible assets and other purchase accounting related adjustments, benefit plan obligations and expenses, mortgage servicing rights, and tax assets, liabilities and expense. |
Business Combinations | Business Combinations BB&T accounts for business combinations using the acquisition method of accounting. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. BB&T typically issues common stock and/or pays cash for an acquisition, depending on the terms of the acquisition agreement. The value of common shares issued is determined based on the market price of the stock as of the closing of the acquisition. |
Cash and Cash Equivalents; Restricted Cash | Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest-bearing deposits with banks, and other cash equivalents. Cash and cash equivalents have maturities of three months or less. Accordingly, the carrying amount of such instruments is considered a reasonable estimate of fair value. Restricted Cash Restricted cash primarily represents amounts posted as collateral for derivatives in a loss position. |
Securities | Securities Marketable investment securities are classified as HTM, AFS or trading. Interest income and dividends on securities are recognized in income on an accrual basis. Premiums and discounts on debt securities are amortized as an adjustment to interest income using the effective interest method. For MBS, prepayment speeds are evaluated quarterly in order to determine the estimated lives of the securities. When the estimated lives of MBS are changed, the amortization of premiums or discounts is adjusted with a corresponding charge or credit to interest income as if the current estimated lives had been applied since the acquisition of the securities. Debt securities are classified as HTM when BB&T has both the intent and ability to hold the securities to maturity. These securities are reported at amortized cost. Debt securities that may be sold to meet liquidity needs arising from unanticipated deposit and loan fluctuations, changes in regulatory capital requirements or unforeseen changes in market conditions are classified as AFS. AFS securities are reported at estimated fair value, with unrealized gains and losses reported in AOCI, net of deferred income taxes, in the shareholders’ equity section of the Consolidated Balance Sheets. Gains or losses realized from the sale of AFS securities are determined by specific identification and are included in noninterest income. Each HTM and AFS security in a loss position is evaluated for OTTI. BB&T considers such factors as the length of time and the extent to which the fair value has been below amortized cost, long term expectations and recent experience regarding principal and interest payments, BB&T’s intent to sell and whether it is more likely than not that the Company would be required to sell those securities before the anticipated recovery of the amortized cost basis. The credit component of an OTTI loss is recognized in earnings and the non-credit component is recognized in AOCI in situations where BB&T does not intend to sell the security and it is more-likely-than-not that BB&T will not be required to sell the security prior to recovery. Subsequent to recognition of OTTI, an increase in expected cash flows is recognized as a yield adjustment over the remaining expected life of the security based on an evaluation of the nature of the increase. Trading account securities, which include both debt and equity securities, are reported at fair value and included in other assets in the Consolidated Balance Sheets. Unrealized fair value adjustments, fees, and realized gains or losses from trading account activities (determined by specific identification) are included in noninterest income. Interest income on trading account securities is included in interest on other earning assets. |
LHFS | LHFS BB&T accounts for new originations of residential and commercial mortgage LHFS at fair value. BB&T accounts for the derivatives used to economically hedge the LHFS at fair value. The fair value of LHFS is primarily based on quoted market prices for securities collateralized by similar types of loans. Direct loan origination fees and costs related to LHFS are not capitalized, and are recorded as mortgage banking income in the case of the direct loan origination fees and primarily personnel expense in the case of the direct loan origination costs. Gains and losses on sales of residential and commercial mortgage loans are included in mortgage banking income. BB&T sells a significant portion of its fixed-rate commercial and conforming residential mortgage loan originations, which are typically converted into MBS by FHLMC, FNMA and GNMA and subsequently sold to other third party investors. BB&T records these transactions as a sale when the transferred loans are legally isolated from BB&T’s creditors and other accounting criteria for a sale are met. Gains or losses recorded on these transactions are based on the net carrying amount of the loans sold and the fair value of related mortgage servicing, which BB&T generally retains on loans sold. Since quoted market prices are not typically available, BB&T estimates the fair value of these retained interests using modeling techniques to determine the net present value of expected future cash flows. Such models incorporate management’s best estimates of key variables, such as prepayment speeds, servicing costs and discount rates that would be used by market participants based on the risks involved. |
Loans and Leases | Loans and Leases The Company’s accounting methods for loans differ depending on whether the loans are originated or purchased, and if purchased, whether or not the loans reflect credit deterioration since the date of origination such that it is probable at the date of acquisition that BB&T will be unable to collect all contractually required payments. Originated Loans and Leases Loans and leases that management has the intent and ability to hold for the foreseeable future are reported at their outstanding principal balances net of any unearned income, charge-offs, and unamortized fees and costs. The net amount of nonrefundable loan origination fees and certain direct costs associated with the lending process are deferred and amortized to interest income over the contractual lives of the loans using the effective interest method. Purchased Loans Purchased loans are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an ALLL is not recorded at the acquisition date. Purchased loans are evaluated upon acquisition and classified as either purchased impaired or purchased non-impaired. PCI loans reflect credit deterioration since origination such that it is probable at acquisition that BB&T will be unable to collect all contractually required payments. For PCI loans, expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of the future cash flows is reasonably estimable. Subsequent to the acquisition date, increases in cash flows over those expected at the acquisition date are recognized prospectively as interest income. Decreases in expected cash flows due to credit deterioration are recognized by recording an ALLL. For purchased non-impaired loans, the difference between the fair value and UPB of the loan at the acquisition date is amortized or accreted to interest income over the contractual life of the loans using the effective interest method. In the event of prepayment, the remaining unamortized amount is recognized in interest income. TDRs Modifications to a borrower’s debt agreement are considered TDRs if a concession is granted for economic or legal reasons related to a borrower’s financial difficulties that otherwise would not be considered. TDRs are undertaken in order to improve the likelihood of recovery on the loan and may take the form of modifications made with the stated interest rate lower than the current market rate for new debt with similar risk, other modifications to the structure of the loan that fall outside of normal underwriting policies and procedures, or in certain limited circumstances forgiveness of principal or interest. Modifications of PCI loans that are part of a pool accounted for as a single asset are not considered TDRs. TDRs can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accruing status, depending on the individual facts and circumstances of the borrower. In circumstances where the TDR involves charging off a portion of the loan balance, BB&T typically classifies these TDRs as nonaccrual. In connection with commercial TDRs, the decision to maintain a loan that has been restructured on accrual status is based on a current, well documented credit evaluation of the borrower’s financial condition and prospects for repayment under the modified terms. This evaluation includes consideration of the borrower’s current capacity to pay, which among other things may include a review of the borrower’s current financial statements, an analysis of cash flow available to pay debt obligations, and an evaluation of secondary sources of payment from the borrower and any guarantors. This evaluation also includes an evaluation of the borrower’s current willingness to pay, which may include a review of past payment history, an evaluation of the borrower’s willingness to provide information on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. The credit evaluation may also include review of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest and trends indicating improving profitability and collectability of receivables. The evaluation of mortgage and retail loans includes an evaluation of the client’s debt to income ratio, credit report, property value, loan vintage, and certain other client-specific factors that impact their ability to make timely principal and interest payments on the loan. TDR classification may be removed for an accruing loan upon the occurrence of a non-concessionary subsequent modification granted at market terms and within current underwriting guidelines. |
NPAs | NPAs NPAs include NPLs and foreclosed property. Foreclosed property consists of real estate and other assets acquired as a result of customers’ loan defaults. BB&T’s policies for placing loans on nonaccrual status conform to guidelines prescribed by bank regulatory authorities. BB&T classifies loans and leases as past due when the payment of principal and interest based upon contractual terms is greater than 30 days delinquent or if one payment is past due. The following table summarizes the delinquency thresholds that are used in evaluating nonaccrual classification and the timing of charge-offs (PCI loans are considered to be performing due to the application of the expected cash flows method): (number of days) Placed on Nonaccrual (1) Charge-off Commercial: Commercial and industrial 90 (2) 90 CRE 90 (2) 90 Lease financing 90 (2) 90 Retail: Residential mortgage (3) 90 to 180 90 to 210 Direct (3) 90 to 120 90 to 120 Indirect (3) 90 to 120 90 to 120 Revolving credit (3) NA 90 to 180 (1) Loans may be returned to accrual status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest, generally indicated by 180 days of sustained performance. (2) Or when it is probable that principal or interest is not fully collectible, whichever occurs first. (3) Depends on product type, loss mitigation status and status of the government guaranty. When commercial loans are placed on nonaccrual status, a charge-off is recorded, as applicable, to decrease the carrying value of such loans to the estimated recoverable amount. Retail loans are subject to mandatory charge-off at a specified delinquency date consistent with regulatory guidelines. As such, retail loans are subject to collateral valuation and charge-off, as applicable, when they are moved to nonaccrual status. Certain past due loans may remain on accrual status if management determines that it does not have concern over the collectability of principal and interest. Generally, when loans are placed on nonaccrual status, accrued interest receivable is reversed against interest income in the current period and amortization of deferred loan fees and expenses is suspended. Payments received for interest and lending fees thereafter are applied as a reduction to the remaining principal balance as long as concern exists as to the ultimate collection of the principal. Assets acquired as a result of foreclosure are subsequently carried at the lower of cost or net realizable value. Net realizable value equals fair value less estimated selling costs. Any excess of cost over net realizable value at the time of foreclosure is charged to the ALLL. NPAs are subject to periodic revaluations of the collateral underlying impaired loans and foreclosed real estate. The periodic revaluations are generally based on the appraised value of the property and may include additional liquidity adjustments based upon the expected retention period. BB&T’s policies require that valuations be updated at least annually and that upon foreclosure, the valuation must not be more than six months old, otherwise an update is required. |
ACL | ACL The ACL includes the ALLL and the RUFC. The ACL represents management’s best estimate of probable credit losses inherent in the loan and lease portfolios and off-balance sheet lending commitments at the balance sheet date. Estimates for loan and lease losses are determined by analyzing historical loan and lease losses, historical loan and lease migration to charge-off experience, current trends in delinquencies and charge-offs, expected cash flows on PCI loans, current assessment of impaired loans and leases, the results of regulatory examinations and changes in the size, composition and risk assessment of the loan and lease portfolio. As part of this process, BB&T develops a series of loss estimate factors, which are modeled projections of the frequency, timing and severity of losses. Changes to the ACL are made by charges to the provision for credit losses, which is reflected in the Consolidated Statements of Income. Loan or lease balances deemed to be uncollectible are charged off against the ALLL. Recoveries of amounts previously charged off are credited to the ALLL. The methodology used to determine the RUFC is inherently similar to that used to determine the collectively evaluated component of the ALLL, adjusted for factors specific to binding commitments, including the probability of funding and exposure at default. While management uses the best information available to establish the ACL, future adjustments may be necessary if economic conditions differ substantially from the assumptions used in computing the ACL or, if required by regulators based upon information available to them at the time of their examinations. Accounting standards require the disclosure of certain information at the portfolio segment level, representing the level at which an entity develops and documents a systematic methodology to determine its ACL. BB&T concluded that its loan and lease portfolio consists of four portfolio segments; commercial, retail, revolving credit, and PCI. The commercial portfolio segment was identified based on the risk-based approach used to estimate the ALLL for the vast majority of these loans. The retail portfolio segment was identified based on the delinquency-based approach used to estimate the ALLL. The revolving credit portfolio segment, which also uses a delinquency-based ALLL approach, was identified because of the uniqueness of its lending arrangements. The PCI portfolio segment was identified based on the expected cash flows approach used to estimate the ALLL. During the fourth quarter of 2017, certain loan categories were reclassified to better reflect the nature of the underlying loans. Prior periods were revised to conform to the current presentation. See " Note 3. Loans and ACL " for additional information about the classes of financing receivables included within each of these loan portfolio segments. The entire amount of the ACL is available to absorb losses on any loan category or lending-related commitment. The following provides a description of accounting policies and methodologies related to each of the portfolio segments: Commercial The vast majority of loans in the commercial lending portfolio are assigned risk ratings based on an assessment of conditions that affect the borrower’s ability to meet contractual obligations under the loan agreement. This process includes reviewing borrowers’ financial information, historical payment experience, credit documentation, public information, and other information specific to each borrower. Risk ratings are reviewed on an annual basis for all credit relationships with total credit exposure more than $2 million , or at any point management becomes aware of information affecting the borrowers’ ability to fulfill their obligations. Risk Rating Description Pass Loans not considered to be problem credits Special Mention Loans that have a potential weakness deserving management’s close attention Substandard Loans for which a well-defined weakness has been identified that may put full collection of contractual cash flows at risk For commercial clients with total credit exposure of $2 million or less, BB&T has developed an automated loan review system to identify and proactively manage accounts with a higher risk of loss. The "score" produced by this automated system is updated quarterly. To establish a reserve, BB&T's policy is to review all commercial lending relationships with an outstanding nonaccrual balance of $3 million or more. While this review is largely focused on the borrower’s ability to repay the loan, BB&T also considers the capacity and willingness of a loan’s guarantors to support the debt service on the loan as a secondary source of repayment. When a guarantor exhibits the documented capacity and willingness to support the loan, BB&T may consider extending the loan maturity and/or temporarily deferring principal payments if the ultimate collection of both principal and interest is not in question. In these cases, BB&T may deem the loan to not be impaired due to the documented capacity and willingness of the guarantor to repay the loan. Loans are considered impaired when the borrower (or guarantor in certain circumstances) does not have the cash flow capacity or willingness to service the debt according to contractual terms, or it does not appear reasonable to assume that the borrower will continue to pay according to the contractual agreement. BB&T establishes a specific reserve for each loan that has been deemed impaired based on the criteria outlined above. The amount of the reserve is based on the present value of expected cash flows discounted at the loan’s effective interest rate and/or the value of collateral, net of costs to sell. In addition, BB&T reviews collateral-dependent commercial loan balances between $1 million and $3 million to establish a specific reserve based on the underlying collateral value, net of costs to sell. BB&T also has a review process related to TDRs and other commercial impaired loans. In connection with this process, BB&T establishes reserves related to these loans that are calculated using an expected cash flow approach. These discounted cash flow analyses incorporate adjustments to future cash flows that reflect management’s best estimate of the default risk related to TDRs based on a combination of historical experience and management judgment. BB&T also maintains reserves for collective impairment that reflect an estimate of losses related to non-impaired commercial loans as of the balance sheet date. Embedded loss estimates for BB&T’s commercial loan portfolio are based on estimated migration rates, which are based on historical experience, and current risk mix as indicated by the risk grading or scoring process described above. Embedded loss estimates may be adjusted to reflect current economic conditions and current portfolio trends including credit quality, concentrations, aging of the portfolio, and significant policy and underwriting changes. Retail and Revolving Credit The majority of the ALLL related to the retail and revolving credit lending portfolios is calculated on a collective basis using delinquency status, which is the primary factor considered in determining whether a loan should be classified as nonaccrual. Embedded loss estimates for BB&T’s retail and revolving credit lending portfolios are based on estimated migration rates that are developed based on historical experience, and current risk mix as indicated by prevailing delinquency rates. These estimates may be adjusted to reflect current economic conditions and current portfolio trends. The remaining portion of the ALLL related to the retail and revolving credit lending portfolios relates to loans that have been deemed impaired based on their classification as a TDR at the balance sheet date. BB&T establishes specific reserves related to these TDRs using an expected cash flow approach. The ALLL for retail and revolving credit TDRs is based on discounted cash flow analyses that incorporate adjustments to future cash flows that reflect management’s best estimate of the default risk related to TDRs based on a combination of historical experience and management judgment. PCI PCI loans are aggregated into loan pools based upon common risk characteristics. The ALLL for each loan pool is based on an analysis that is performed each period to estimate the expected cash flows. To the extent that the expected cash flows of a loan pool have decreased due to credit deterioration, BB&T establishes an ALLL. |
Premises and Equipment | Premises and Equipment Premises, equipment, capital leases and leasehold improvements are stated at cost less accumulated depreciation and amortization. Certain costs of software acquired or developed for internal use are capitalized provided certain criteria are met. Depreciation and amortization are computed principally using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements and capitalized leases are amortized on a straight-line basis over the lesser of the lease terms or the estimated useful lives of the assets. Rent expense and rental income on operating leases is recorded using the straight-line method over the appropriate lease terms. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Life insurance policies on certain directors, officers, and employees, for which BB&T is the owner and beneficiary are stated at the cash surrender value within other assets in the Consolidated Balance Sheet. Changes in cash surrender value and proceeds from insurance benefits are recorded in income from bank-owned life insurance in the Consolidated Statements of Income. |
Income Taxes | Income Taxes Deferred tax assets and liabilities result from differences between assets and liabilities measured for financial reporting purposes compared to income tax return purposes. In the event of changes in the tax laws, deferred tax assets and liabilities are adjusted in the period those changes are enacted, with the cumulative effects included in the current year’s income tax provision. Net deferred tax assets are included in other assets, and net deferred tax liabilities are included in accounts payable and other liabilities, in the Consolidated Balance Sheets. Interest and penalties related to income taxes are recognized as a component of the provision for income taxes in the Consolidated Statements of Income. |
Derivative Financial Instruments | Derivative Financial Instruments A derivative is a financial instrument that derives its cash flows, and therefore its value, by reference to an underlying instrument, index or referenced interest rate. These instruments include interest rate swaps, caps, floors, collars, financial forwards and futures contracts, swaptions, when-issued securities, foreign exchange contracts and options written and purchased. BB&T uses derivatives primarily to manage economic risk related to securities, commercial loans, MSRs and mortgage banking operations, long-term debt and other funding sources. BB&T also uses derivatives to facilitate transactions on behalf of its clients. The fair value of derivatives in a gain or loss position is included in other assets or liabilities, respectively, on the Consolidated Balance Sheets. Cash collateral posted for derivative instruments in a loss position is included in restricted cash on the Consolidated Balance Sheets. BB&T classifies its derivative financial instruments as either (1) a fair value hedge - hedge of an exposure to changes in the fair value of a recorded asset or liability, (2) a cash flow hedge - hedge of an exposure to changes in the cash flows of a recognized asset, liability or forecasted transaction, or (3) derivatives not designated as hedges. Changes in the fair value of derivatives not designated as hedges are recognized in current period earnings. BB&T has master netting agreements with the derivatives dealers with which it does business, but BB&T presents gross assets and liabilities on the Consolidated Balance Sheets. BB&T uses the long-haul method to assess hedge effectiveness. At inception and at least quarterly over the life of the hedge, BB&T documents its analysis of actual and expected hedge effectiveness. This analysis includes techniques such as regression analysis and hypothetical derivatives to demonstrate that the hedge has been, and is expected to be, highly effective in off-setting corresponding changes in the fair value or cash flows of the hedged item. For a qualifying fair value hedge, changes in the value of the derivatives that have been highly effective as hedges are recognized in current period earnings along with the corresponding changes in the fair value of the designated hedged item attributable to the risk being hedged. For a qualifying cash flow hedge, changes in the fair value of the derivatives that have been highly effective are recognized in OCI until the related cash flows from the hedged item are recognized in earnings. For either fair value hedges or cash flow hedges, ineffectiveness may be recognized to the extent that changes in the value of the derivative instruments do not perfectly offset changes in the value of the hedged items. If the hedge ceases to be highly effective, BB&T discontinues hedge accounting and recognizes the interim changes in fair value in current period earnings. If a derivative that qualifies as a fair value or cash flow hedge is terminated or de-designated, the cumulative changes in value are recognized in income over the life of the hedged item (fair value hedge) or in the period in which the hedged item affects earnings (cash flow hedge). Immediate recognition in earnings is required upon sale or extinguishment of the hedged item (fair value hedge) or if it is probable that the hedged cash flows will not occur (cash flow hedge). Derivatives instruments not designated as hedges are primarily used to manage economic risk from MSRs and mortgage banking operations, with gains or losses included in mortgage banking income. In connection with its mortgage banking activities, BB&T enters into loan commitments to fund residential mortgage loans at specified rates and for specified periods of time. To the extent that BB&T’s interest rate lock commitments relate to loans that will be held for sale upon funding, they are also accounted for as derivatives, with gains or losses included in mortgage banking income. Gains and losses on other derivatives used to manage economic risk are primarily associated with client derivative activity and are included in other income. Credit risk resulting from derivatives arises when amounts receivable from a counterparty exceed those payable to the same counterparty, taking into account posted collateral. The risk of loss with respect to over-the-counter derivatives, eligible margin loans and repurchase-style transactions is addressed by subjecting counterparties to a credit review and approval process similar to the process for making loans or other extensions of credit and/or by requiring collateral. Derivative dealer counterparties operate under agreements to provide cash and/or highly liquid securities on a daily basis for unsecured credit exposure beyond negotiated limits, while client derivatives that are associated with loans are cross-collateralized with the loan. BB&T only transacts with dealer counterparties that are national market makers with strong credit standings and requires liquid collateral (cash or government securities) to secure credit exposure. Due to these factors, the fair value of derivatives with dealer counterparties is primarily based on the interest rate mark of each trade. The fair value of interest rate derivatives with clients includes a credit valuation adjustment. Collateral obtained to secure margin loans includes equities, corporate and municipal securities, and repurchase-style transactions are generally secured by government and agency securities. The value of collateral for margin loans and repurchase-style transactions is monitored daily with settlement required when changes in value exceed established limits by counterparty. Due to the liquid nature of collateral, the frequency of transactions and collateral monitoring, a reserve for credit loss is established only when a risk of loss is identified. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business acquisitions. BB&T allocates goodwill to the reporting unit(s) that receives significant benefits from the acquisition. Goodwill is tested at least annually for impairment as of October 1st each year and more frequently if circumstances exist that indicate a possible reduction in the fair value of the business below its carrying value. BB&T measures impairment using the present value of estimated future cash flows. Discount rates are based upon the cost of capital specific to the industry in which the reporting unit operates. If the carrying value of the reporting unit exceeds its fair value, a second analysis is performed to measure the fair value of all assets and liabilities. If, based on the second analysis, it is determined that the fair value of the assets and liabilities of the reporting unit is less than the carrying value, BB&T would recognize impairment for the excess of carrying value over fair value. CDI and other intangible assets include premiums paid for acquisitions of core deposits and other identifiable intangible assets. Intangible assets other than goodwill, which are determined to have finite lives, are amortized based upon the estimated economic benefits received. |
MSRs | MSRs BB&T has two primary classes of MSRs for which it separately manages the economic risks: residential and commercial. Both classes of MSRs are recorded on the Consolidated Balance Sheets primarily at fair value with changes in fair value recorded as a component of mortgage banking income on the Consolidated Statements of Income. Various derivative instruments are used to mitigate the income statement effect of changes in fair value due to changes in valuation inputs and assumptions of the MSRs. |
Equity-Based Compensation | Equity-Based Compensation BB&T maintains various equity-based compensation plans that provide for the granting of stock options (incentive and nonqualified), stock appreciation rights, restricted stock, RSUs, and PSUs to selected employees and directors. BB&T values share-based awards at the grant date fair value and recognizes the expense over the requisite service period taking into account retirement eligibility. |
Pension and Postretirement Benefit Obligations | Pension and Postretirement Benefit Obligations BB&T offers various pension plans and postretirement benefit plans to employees. Calculation of the obligations and related expenses under these plans requires the use of actuarial valuation methods and assumptions. The discount rate assumption used to measure the postretirement benefit obligations is set by reference to a high quality corporate bond yield curve and the individual characteristics of the plan such as projected cash flow patterns and payment durations. The expected long-term rate of return on assets is based on the expected returns for each major asset class in which the plan invests, adjusted for the weight of each asset class in the target mix. |
Insurance Income | Insurance Income Insurance commission revenue is generally recognized at the later of the billing date or the effective date of the related insurance policies. |
FDIC Loss Share Income | FDIC Loss Share Income, Net Certain loans, securities and other assets were acquired from the FDIC in connection with the Colonial transaction and were previously subject to loss sharing agreements. During the third quarter of 2016, the loss share agreements were terminated. The accounting for the related assets was unaffected by the termination. The income statement effect of the changes in the FDIC loss share receivable/payable included the accretion due to discounting and changes in expected cash flows. |
Segments | Segments Segment results are presented based on internal management accounting policies that were designed to support BB&T’s strategic objectives. The Other, Treasury and Corporate segment includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure. During the fourth quarter of 2017, BB&T restructured its segments to reflect a change in the way management reviews performance and makes decisions. Prior periods have been revised to reflect the restructuring. Refer to " Note 19. Operating Segments " for additional disclosures. |
Changes in Accounting Principles and Effects of New Accounting Pronouncements | Changes in Accounting Principles and Effects of New Accounting Pronouncements Standard/ Adoption Date Description Effects on the Financial Statements Standards Adopted During the Current Period Stock Compensation Jan 1, 2017 Eliminated the concept of additional paid-in capital pools for equity-based awards and requires that the related excess tax benefits/deficiencies be recognized in earnings. Allows a one-time policy election to account for forfeitures when they occur. Permits tax withholding up to the maximum statutory tax rate to retain equity classification. BB&T has elected the one-time policy to account for forfeitures when they occur. See "Note 11. Income Taxes" for additional information. Reclassification of Certain Tax Effects Dec 31, 2017 Requires a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Deferred taxes within AOCI of $247 million were reclassified to retained earnings in 2017. Standards Not Yet Adopted Revenue from Contracts with Customers Jan 1, 2018 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. Does not have a material impact. BB&T will adopt this guidance using the modified retrospective approach. Derivatives and Hedging Jan 1, 2019 Expands the risk management activities that qualify for hedge accounting, and simplifies certain hedge documentation and assessment requirements. Eliminates the concept of separately recording hedge ineffectiveness, and expands disclosure requirements. BB&T is currently evaluating the impact. BB&T may elect to adopt this guidance prior to January 1, 2019. Leases Jan 1, 2019 Requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet, requires additional disclosures by lessees, and contains targeted changes to accounting by lessors. BB&T expects assets and liabilities will likely be significantly higher. Implementation efforts are on-going, including implementation of software solutions. Credit Losses Jan 1, 2020 Replaces the incurred loss impairment methodology 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 for expected credit losses. Any credit impairment on AFS debt securities for which the fair value is less than cost will be recorded through an allowance for expected credit losses. BB&T expects that the ACL could be materially higher; however, the magnitude of the increase and its impact has not yet been quantified and depends on economic conditions at the time of adoption. The standard also requires expanded disclosures related to credit losses and asset quality. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Reclassifications | The Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015 have 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 net effect of the revisions is as follows: (dollars in millions) 2016 2015 Net cash from operating activities $ 443 $ 216 Net cash from investing activities (326 ) (211 ) Net cash from financing activities (117 ) (5 ) Net change in cash and cash equivalents $ — $ — |
Schedule of Loans and Leases Past Due Policies | BB&T’s policies for placing loans on nonaccrual status conform to guidelines prescribed by bank regulatory authorities. BB&T classifies loans and leases as past due when the payment of principal and interest based upon contractual terms is greater than 30 days delinquent or if one payment is past due. The following table summarizes the delinquency thresholds that are used in evaluating nonaccrual classification and the timing of charge-offs (PCI loans are considered to be performing due to the application of the expected cash flows method): (number of days) Placed on Nonaccrual (1) Charge-off Commercial: Commercial and industrial 90 (2) 90 CRE 90 (2) 90 Lease financing 90 (2) 90 Retail: Residential mortgage (3) 90 to 180 90 to 210 Direct (3) 90 to 120 90 to 120 Indirect (3) 90 to 120 90 to 120 Revolving credit (3) NA 90 to 180 (1) Loans may be returned to accrual status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest, generally indicated by 180 days of sustained performance. (2) Or when it is probable that principal or interest is not fully collectible, whichever occurs first. (3) Depends on product type, loss mitigation status and status of the government guaranty. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost, Gross Unrealized Gains and Approximate Fair Values of AFS Securities | The amortized cost and fair value of the securities portfolio are presented in the following tables: December 31, 2017 Amortized Cost Gross Unrealized Fair Value (Dollars in millions) Gains Losses AFS securities: U.S. Treasury $ 2,368 $ — $ 77 $ 2,291 GSE 187 — 8 179 Agency MBS 20,683 8 590 20,101 States and political subdivisions 1,379 37 24 1,392 Non-agency MBS 384 192 — 576 Other 8 — — 8 Total AFS securities $ 25,009 $ 237 $ 699 $ 24,547 HTM securities: U.S. Treasury $ 1,098 $ 8 $ — $ 1,106 GSE 2,198 11 22 2,187 Agency MBS 19,660 33 222 19,471 States and political subdivisions 28 — — 28 Other 43 2 — 45 Total HTM securities $ 23,027 $ 54 $ 244 $ 22,837 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 Summary of Amortized Cost, Gross Unrealized Gains and Approximate Fair Values of HTM Securities | The amortized cost and fair value of the securities portfolio are presented in the following tables: December 31, 2017 Amortized Cost Gross Unrealized Fair Value (Dollars in millions) Gains Losses AFS securities: U.S. Treasury $ 2,368 $ — $ 77 $ 2,291 GSE 187 — 8 179 Agency MBS 20,683 8 590 20,101 States and political subdivisions 1,379 37 24 1,392 Non-agency MBS 384 192 — 576 Other 8 — — 8 Total AFS securities $ 25,009 $ 237 $ 699 $ 24,547 HTM securities: U.S. Treasury $ 1,098 $ 8 $ — $ 1,106 GSE 2,198 11 22 2,187 Agency MBS 19,660 33 222 19,471 States and political subdivisions 28 — — 28 Other 43 2 — 45 Total HTM securities $ 23,027 $ 54 $ 244 $ 22,837 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. AFS HTM December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in millions) Due in one year or less $ 336 $ 335 $ — $ — Due after one year through five years 498 496 2,237 2,242 Due after five years through ten years 2,419 2,341 1,111 1,103 Due after ten years 21,756 21,375 19,679 19,492 Total debt securities $ 25,009 $ 24,547 $ 23,027 $ 22,837 |
Schedule of Fair Values and Gross Unrealized Losses of Investments by Investment Category and Length of Time | 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: Less than 12 months 12 months or more Total December 31, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in millions) AFS securities: U.S. Treasury $ 634 $ 4 $ 1,655 $ 73 $ 2,289 $ 77 GSE 9 — 170 8 179 8 Agency MBS 5,077 64 13,920 526 18,997 590 States and political subdivisions 201 1 355 23 556 24 Total $ 5,921 $ 69 $ 16,100 $ 630 $ 22,021 $ 699 HTM securities: GSE $ 1,470 $ 12 $ 290 $ 10 $ 1,760 $ 22 Agency MBS 10,880 77 4,631 145 15,511 222 Total $ 12,350 $ 89 $ 4,921 $ 155 $ 17,271 $ 244 Less than 12 months 12 months or more Total December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in millions) 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) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Aging Analysis of Past Due Loans and Leases | The following tables summarize the delinquency status of loans HFI: Accruing December 31, 2017 Current 30-89 Days Past Due 90 Days Or More Past Due Nonaccrual Total (Dollars in millions) Commercial: Commercial and industrial $ 58,852 $ 41 $ 1 $ 259 $ 59,153 CRE 21,209 8 1 45 21,263 Lease financing 1,906 4 — 1 1,911 Retail: Residential mortgage 27,659 472 465 129 28,725 Direct 11,756 65 6 64 11,891 Indirect 16,745 412 6 72 17,235 Revolving credit 2,837 23 12 — 2,872 PCI 567 27 57 — 651 Total $ 141,531 $ 1,052 $ 548 $ 570 $ 143,701 Accruing December 31, 2016 Current 30-89 Days Past Due 90 Days Or More Past Due Nonaccrual Total (Dollars in millions) Commercial: Commercial and industrial $ 57,326 $ 44 $ — $ 369 $ 57,739 CRE 19,699 8 — 57 19,764 Lease financing 1,669 4 — 4 1,677 Retail: Residential mortgage 28,702 525 522 172 29,921 Direct 11,963 60 6 63 12,092 Indirect 18,110 377 6 71 18,564 Revolving credit 2,620 23 12 — 2,655 PCI 784 36 90 — 910 Total $ 140,873 $ 1,077 $ 636 $ 736 $ 143,322 |
Schedule of Credit Exposure Credit Risk Profile by Internal Loan Risk Rating, Excluding PCI Loans | The following table presents the carrying amount of loans by risk rating. PCI loans are excluded because their related ALLL is determined by loan pool performance and revolving credit loans are excluded as the loans are charged-off and not reclassified to nonperforming. December 31, 2017 December 31, 2016 Commercial & Industrial CRE Lease financing Commercial & Industrial CRE Lease financing (Dollars in millions) Commercial: Pass $ 57,700 $ 20,862 $ 1,881 $ 55,881 $ 19,186 $ 1,641 Special mention 268 48 6 343 162 4 Substandard-performing 926 308 23 1,146 359 28 Nonperforming 259 45 1 369 57 4 Total $ 59,153 $ 21,263 $ 1,911 $ 57,739 $ 19,764 $ 1,677 Residential Mortgage Direct Indirect Residential Mortgage Direct Indirect Retail: Performing $ 28,596 $ 11,827 $ 17,163 $ 29,749 $ 12,029 $ 18,493 Nonperforming 129 64 72 172 63 71 Total $ 28,725 $ 11,891 $ 17,235 $ 29,921 $ 12,092 $ 18,564 |
Analysis of the Allowance for Credit Losses | The following tables present a summary of activity in the ACL: Year Ended December 31, 2017 Beginning Balance Charge-Offs Recoveries Provision (Benefit) Other Ending Balance (Dollars in millions) Commercial: Commercial and industrial $ 530 $ (95 ) $ 36 $ 51 $ — $ 522 CRE 145 (10 ) 16 9 — 160 Lease financing 7 (5 ) 2 5 — 9 Retail: Residential mortgage 227 (47 ) 2 27 — 209 Direct 103 (61 ) 25 39 — 106 Indirect 327 (402 ) 60 363 — 348 Revolving credit 106 (76 ) 19 59 — 108 PCI 44 (1 ) — (15 ) — 28 ALLL 1,489 (697 ) 160 538 — 1,490 RUFC 110 — — 9 — 119 ACL $ 1,599 $ (697 ) $ 160 $ 547 $ — $ 1,609 Year Ended December 31, 2016 Beginning Balance Charge-Offs Recoveries Provision (Benefit) Other Ending Balance (Dollars in millions) Commercial: Commercial and industrial $ 488 $ (143 ) $ 44 $ 141 $ — $ 530 CRE 175 (9 ) 19 (40 ) — 145 Lease financing 5 (6 ) 2 6 — 7 Retail: Residential mortgage 217 (40 ) 3 47 — 227 Direct 105 (53 ) 26 25 — 103 Indirect 305 (366 ) 55 333 — 327 Revolving credit 104 (69 ) 20 51 — 106 PCI 61 (15 ) — (2 ) — 44 ALLL 1,460 (701 ) 169 561 — 1,489 RUFC 90 — — 11 9 110 ACL $ 1,550 $ (701 ) $ 169 $ 572 $ 9 $ 1,599 Year Ended December 31, 2015 Beginning Balance Charge-Offs Recoveries Provision (Benefit) Other Ending Balance (Dollars in millions) Commercial: Commercial and industrial $ 446 $ (90 ) $ 40 $ 92 $ — $ 488 CRE 212 (24 ) 18 (31 ) — 175 Lease financing 4 — — 1 — 5 Retail: Residential mortgage 253 (46 ) 3 7 — 217 Direct 110 (54 ) 29 20 — 105 Indirect 275 (303 ) 42 291 — 305 Revolving credit 110 (70 ) 20 44 — 104 PCI 64 (1 ) — (2 ) — 61 ALLL 1,474 (588 ) 152 422 — 1,460 RUFC 60 — — 6 24 90 ACL $ 1,534 $ (588 ) $ 152 $ 428 $ 24 $ 1,550 |
Schedule of Loans Collectively Evaluated for Impairment | The following table provides a summary of loans that are collectively evaluated for impairment: December 31, 2017 December 31, 2016 (Dollars in millions) Recorded Investment Related ALLL Recorded Investment Related ALLL Commercial: Commercial and industrial $ 58,804 $ 494 $ 57,265 $ 492 CRE 21,173 154 19,649 136 Lease financing 1,910 9 1,672 7 Retail: Residential mortgage 27,914 143 28,954 144 Direct 11,815 98 12,011 93 Indirect 16,935 296 18,308 286 Revolving credit 2,842 97 2,626 95 PCI 651 28 910 44 Total $ 142,044 $ 1,319 $ 141,395 $ 1,297 |
Schedule of Loans Individually Evaluated for Impairment | The following tables set forth certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for reserves: As Of / For The Year Ended December 31, 2017 UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized (Dollars in millions) Without an ALLL With an ALLL Commercial: Commercial and industrial $ 381 $ 136 $ 213 $ 28 $ 424 $ 6 CRE 91 26 64 6 109 3 Lease financing 1 — 1 — 3 — Retail: Residential mortgage 860 132 679 67 895 37 Direct 99 22 54 8 78 4 Indirect 308 6 294 52 269 41 Revolving credit 30 — 30 10 29 1 Total $ 1,770 $ 322 $ 1,335 $ 171 $ 1,807 $ 92 As Of / For The Year Ended December 31, 2016 UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized (Dollars in millions) Without an ALLL With an ALLL Commercial: Commercial and industrial $ 505 $ 204 $ 271 $ 38 $ 483 $ 6 CRE 121 35 80 9 114 3 Lease financing 4 1 3 — 4 — Retail: Residential mortgage 1,026 97 870 83 843 34 Direct 107 13 68 10 83 5 Indirect 265 5 251 41 227 33 Revolving credit 29 — 29 11 31 1 Total $ 2,057 $ 355 $ 1,572 $ 192 $ 1,785 $ 82 |
Schedule of Performing and Nonperforming TDRs | The following table provides a summary of TDRs, all of which are considered impaired: December 31, (Dollars in millions) 2017 2016 Performing TDRs: Commercial: Commercial and industrial $ 50 $ 57 CRE 16 25 Lease financing — — Retail: Residential mortgage 605 769 Direct 62 67 Indirect 281 240 Revolving credit 29 29 Total performing TDRs 1,043 1,187 Nonperforming TDRs (also included in NPL disclosures) 189 184 Total TDRs $ 1,232 $ 1,371 ALLL attributable to TDRs $ 142 $ 146 |
Summary of the Primary Reason Loan Modifications Were Classified 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 in this table include TDRs made with below market interest rates that also include modifications of loan structures. Year Ended December 31, 2017 2016 2015 Type of Modification ALLL Impact Type of Modification ALLL Impact Type of Modification ALLL Impact (Dollars in millions) Rate Structure Rate Structure Rate Structure Newly Designated TDRs: Commercial: Commercial and industrial $ 79 $ 101 $ 3 $ 105 $ 96 $ 3 $ 68 $ 31 $ 2 CRE 14 10 1 12 16 — 11 26 1 Retail: Residential mortgage 357 46 25 431 53 28 230 34 16 Direct 10 3 — 14 1 — 12 2 4 Indirect 192 6 21 169 7 21 129 9 18 Revolving credit 19 — 4 17 — 4 16 — 4 Re-Modification of Previously Designated TDRs 176 44 — 79 46 — 88 34 — |
Selected Information About Loans and Leases | The following table presents additional information about BB&T’s loans and leases: December 31, (Dollars in millions) 2017 2016 Unearned income, discounts and net deferred loan fees and costs, excluding PCI $ 70 $ 265 Residential mortgage loans in process of foreclosure 288 366 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises and equipment is presented in the accompanying table: Estimated Useful Life December 31, (Dollars in millions) 2017 2016 Land and land improvements $ 583 $ 611 Buildings and building improvements 40 years 1,660 1,628 Furniture and equipment 3 - 15 1,146 1,121 Leasehold improvements 733 791 Construction in progress 52 62 Capitalized leases on premises and equipment 58 66 Total 4,232 4,279 Accumulated depreciation and amortization (2,177 ) (2,172 ) Net premises and equipment $ 2,055 $ 2,107 |
Schedule of Rent Expense | The following table excludes assets related to the lease financing business: Year Ended December 31, (Dollars in millions) 2017 2016 2015 Rent expense applicable to operating leases $ 249 $ 250 $ 223 Rental income from owned properties and subleases 12 8 7 |
Schedule of Future Minimum Lease Payments for Operating Leases | Year Ended December 31, (Dollars in millions) 2018 2019 2020 2021 2022 Thereafter Future minimum lease payments for operating leases $ 255 $ 228 $ 199 $ 173 $ 147 $ 509 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Activity by Operating Segment | The changes in the carrying amounts of goodwill attributable to BB&T’s operating segments are reflected in the table below. During the fourth quarter of 2017, the operating segments were reorganized and goodwill was reallocated to the new segments based upon the relative fair value of the underlying reporting units, as applicable. Refer to " Note 19. Operating Segments " for additional information. There have been no goodwill impairments recorded to date. (Dollars in millions) Community Banking Residential Mortgage Banking Dealer Financial Services Specialized Lending Insurance Holdings Financial Services Total Goodwill, January 1, 2015 $ 4,634 $ 326 $ 111 $ 88 $ 1,518 $ 192 $ 6,869 Acquired goodwill, net 1,501 43 — 155 16 11 1,726 American Coastal sale — — — — (49 ) — (49 ) Other adjustments 5 — — — (3 ) — 2 Goodwill, December 31, 2015 6,140 369 111 243 1,482 203 8,548 Acquired goodwill, net 753 39 — 2 270 9 1,073 Other adjustments 139 8 — (132 ) — 2 17 Goodwill, December 31, 2016 7,032 416 111 113 1,752 214 9,638 Other adjustments (12 ) 6 — (9 ) (5 ) — (20 ) Goodwill, prior to reorganization $ 7,020 $ 422 $ 111 $ 104 $ 1,747 $ 214 $ 9,618 Goodwill, after reorganization CB-Retail CB-Commercial FS&CF IH&PF Total Goodwill, December 31, 2017 $ 3,724 $ 3,862 $ 259 $ 1,773 $ 9,618 |
Identifiable Intangible Assets Subject to Amortization | The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets: December 31, 2017 December 31, 2016 (Dollars in millions) Wtd. Avg. Remaining Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount CDI 7.0 years $ 605 $ (409 ) $ 196 $ 825 $ (565 ) $ 260 Other, primarily customer relationship intangibles 12.0 1,211 (696 ) 515 1,249 (655 ) 594 Total $ 1,816 $ (1,105 ) $ 711 $ 2,074 $ (1,220 ) $ 854 |
Future Amortization Expense of Identifiable Intangible Assets | The estimated amortization expense for the next five years is presented as follows: Year Ended December 31, (Dollars in millions) 2018 2019 2020 2021 2022 Estimated amortization expense of identifiable intangibles $ 122 $ 104 $ 87 $ 74 $ 64 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Summary of Residential Mortgage Banking Activities | The following tables summarize residential mortgage banking activities. BB&T manages its own residential mortgage loans, including PCI loans. As Of / For The Year Ended December 31, (Dollars in millions) 2017 2016 2015 UPB of residential mortgage and home equity loan servicing portfolio $ 118,424 $ 121,639 $ 122,169 UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate 89,124 90,325 91,132 Mortgage loans sold with recourse 490 578 702 Maximum recourse exposure from mortgage loans sold with recourse liability 251 282 326 Indemnification, recourse and repurchase reserves 37 40 79 UPB of residential mortgage loans sold 12,423 15,675 14,764 Pre-tax gains recognized on mortgage loans sold and held for sale 153 139 148 Servicing fees recognized from mortgage loans serviced for others 261 268 273 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others 0.28 % 0.28 % 0.29 % Weighted average interest rate on mortgage loans serviced for others 4.00 4.03 4.12 |
Analysis of Activity in Residential MSRs | The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value: Year Ended December 31, (Dollars in millions) 2017 2016 2015 Carrying value, beginning of year $ 915 $ 880 $ 844 Additions 123 146 156 Change in fair value due to changes in valuation inputs or assumptions: Prepayment speeds (42 ) 13 91 Weighted average OAS 46 10 (52 ) Servicing costs 9 2 (25 ) Realization of expected net servicing cash flows, passage of time and other (137 ) (136 ) (134 ) Carrying value, end of year $ 914 $ 915 $ 880 Gains (losses) on derivative financial instruments used to mitigate the income statement effect of changes in fair value $ — $ 32 $ 32 |
Residential MSRs Sensitivity | The sensitivity of the fair value of the residential MSRs to changes in key assumptions is included in the accompanying table: December 31, 2017 December 31, 2016 Range Weighted Average Range Weighted Average (Dollars in millions) Min Max Min Max Prepayment speed 7.1 % 10.1 % 9.1 % 7.5 % 8.4 % 8.1 % Effect on fair value of a 10% increase $ (31 ) $ (28 ) Effect on fair value of a 20% increase (60 ) (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: December 31, (Dollars in millions) 2017 2016 UPB of CRE mortgages serviced for others $ 28,441 $ 29,333 CRE mortgages serviced for others covered by recourse provisions 4,153 4,240 Maximum recourse exposure from CRE mortgages sold with recourse liability 1,218 1,272 Recorded reserves related to recourse exposure 5 7 Originated CRE mortgages during the year 6,753 7,145 Commercial MSRs at fair value 142 137 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Summary of Deposits | The composition of deposits is presented in the following table: December 31, (Dollars in millions) 2017 2016 Noninterest-bearing deposits $ 53,767 $ 50,697 Interest checking 27,677 30,263 Money market and savings 62,757 64,883 Time deposits 13,170 14,391 Total deposits $ 157,371 $ 160,234 Time deposits greater than $250,000 $ 2,622 $ 2,179 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt, Interest Rates and Maturity Dates | The following table presents a summary of long-term debt: December 31, 2017 December 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 2.05 % 6.85 % 2.89 % $ 8,562 $ 7,600 Floating rate senior notes 2018 2022 1.60 2.45 2.13 2,547 1,898 Fixed rate subordinated notes 2019 2022 3.95 5.25 1.98 933 1,338 Branch Bank: Fixed rate senior notes 2018 2022 1.45 2.85 2.56 5,653 4,209 Floating rate senior notes 2019 2020 1.74 1.91 2.10 1,149 250 Fixed rate subordinated notes 2025 2026 3.63 3.80 3.58 2,119 2,138 Floating rate subordinated notes — 262 FHLB advances (1) 2018 2034 — 5.50 1.49 2,480 4,118 Other long-term debt 205 152 Total long-term debt $ 23,648 $ 21,965 (1) FHLB advances had a weighted average maturity of 3.8 years at December 31, 2017 . |
Schedule of Future Maturities of Long-Term Debt | The following table presents future debt maturities: Year Ended December 31, Thereafter (Dollars in millions) 2018 2019 2020 2021 2022 Future debt maturities $ 2,446 $ 4,837 $ 6,008 $ 3,256 $ 2,851 $ 4,161 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Non-Cumulative Perpetual Preferred Stock | The following table presents a summary of the non-cumulative perpetual preferred stock as of December 31, 2017 : Preferred Stock Issue Issuance Date Earliest Redemption Date Liquidation Amount Carrying Amount Dividend Rate (Dollars in millions) Series D 5/1/2012 5/1/2017 $ 575 $ 559 5.850 % Series E 7/31/2012 8/1/2017 1,150 1,120 5.625 Series F 10/31/2012 11/1/2017 450 437 5.200 Series G 5/1/2013 6/1/2018 500 487 5.200 Series H 3/9/2016 6/1/2021 465 450 5.625 Total $ 3,140 $ 3,053 |
Summary of Selected Information Pertaining to Equity-based Compensation Plans | The following table provides a summary of the equity-based compensation plans: December 31, 2017 Shares available for future grants (in thousands) 19,408 Vesting period, minimum 1.0 years Vesting period, maximum 5.0 Option term 10.0 |
Summary of Selected Data Related to Equity-based Compensation Costs | A summary of selected data related to equity-based compensation costs follows: As of / For the Year Ended December 31, (Dollars in millions) 2017 2016 2015 Equity-based compensation expense $ 132 $ 115 $ 106 Income tax benefit from equity-based compensation expense 34 43 40 Intrinsic value of options exercised, and RSUs and PSUs that vested during the year 261 159 170 Grant date fair value of equity-based awards that vested during the year 116 98 115 Unrecognized compensation cost related to equity-based awards 132 109 103 Weighted-average life over which compensation cost is expected to be recognized (years) 2.4 2.3 2.2 |
Rollforward of RSUs, PSUs amd Restricted Shares | The following table presents the activity during 2017 related to awards of RSUs, PSUs and restricted shares: (Shares/units in thousands) Shares/Units Wtd. Avg. Grant Date Fair Value Nonvested at January 1, 2017 13,516 $ 29.39 Granted 3,924 42.88 Vested (4,142 ) 27.75 Forfeited (350 ) 33.29 Nonvested at December 31, 2017 12,948 33.90 Expected to vest at December 31, 2017 11,946 33.90 |
AOCI (Tables)
AOCI (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in AOCI | The following table summarizes activity in AOCI: (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, 2015 $ (626 ) $ (54 ) $ 152 $ (207 ) $ (16 ) $ (751 ) OCI before reclassifications, net of tax (139 ) (81 ) (206 ) 19 (9 ) (416 ) Amounts reclassified from AOCI: Before tax (1) 67 83 32 31 9 222 Tax effect 25 31 12 12 3 83 Amounts reclassified, net of tax 42 52 20 19 6 139 Total OCI, net of tax (97 ) (29 ) (186 ) 38 (3 ) (277 ) AOCI balance, December 31, 2015 (723 ) (83 ) (34 ) (169 ) (19 ) (1,028 ) OCI before reclassifications, net of tax (91 ) (16 ) (201 ) 148 1 (159 ) Amounts reclassified from AOCI: Before tax (1) 80 11 (39 ) 33 1 86 Tax effect 30 4 (15 ) 12 — 31 Amounts reclassified, net of tax 50 7 (24 ) 21 1 55 Total OCI, net of tax (41 ) (9 ) (225 ) 169 2 (104 ) AOCI balance, December 31, 2016 (764 ) (92 ) (259 ) — (17 ) (1,132 ) OCI before reclassifications, net of tax (129 ) 7 (23 ) — 5 (140 ) Amounts reclassified from AOCI: Before tax (1) 72 15 (7 ) — — 80 Tax effect 27 4 (3 ) — — 28 Amounts reclassified, net of tax 45 11 (4 ) — — 52 Total OCI, net of tax (84 ) 18 (27 ) — 5 (88 ) Reclassification of certain tax effects (156 ) (18 ) (70 ) — (3 ) (247 ) AOCI balance, December 31, 2017 $ (1,004 ) $ (92 ) $ (356 ) $ — $ (15 ) $ (1,467 ) (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 or 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 (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The components of the income tax provision are as follows: Year Ended December 31, (Dollars in millions) 2017 2016 2015 Current expense: Federal $ 539 $ 959 $ 585 State 80 97 99 Total current expense 619 1,056 684 Deferred expense: Federal 253 (14 ) 99 State 39 16 11 Total deferred expense 292 2 110 Provision for income taxes $ 911 $ 1,058 $ 794 |
Schedule of Reconciliation Between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Income Tax Rate | The reasons for the difference between the provision for income taxes and the amount computed by applying the statutory Federal income tax rate to income before income taxes were as follows: Year Ended December 31, (Dollars in millions) 2017 2016 2015 Federal income taxes at statutory rate of 35% $ 1,164 $ 1,225 $ 1,021 Increase (decrease) in provision for income taxes as a result of: State income taxes, net of federal tax benefit 77 73 72 Affordable housing projects proportional amortization 236 205 181 Affordable housing projects tax credits and other tax benefits (319 ) (279 ) (249 ) Tax exempt income (139 ) (151 ) (129 ) Federal tax reform impact (43 ) — — Excess tax benefits for equity-based compensation (52 ) — — Adjustments for uncertain tax positions — (6 ) (107 ) Other, net (13 ) (9 ) 5 Provision for income taxes $ 911 $ 1,058 $ 794 Effective income tax rate 27.4 % 30.2 % 27.2 % |
Schedule of Temporary Tax Differences That Gave Rise to Deferred Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to deferred tax assets and liabilities are reflected in the table below: December 31, (Dollars in millions) 2017 2016 Deferred tax assets: ALLL $ 359 $ 564 Postretirement plans 311 451 Net unrealized loss on AFS securities 112 155 Equity-based compensation 66 124 Reserves and expense accruals 114 238 Partnerships 70 116 Other 160 317 Total deferred tax assets 1,192 1,965 Deferred tax liabilities: Prepaid pension plan expense 436 558 MSRs 234 358 Lease financing 366 587 Loan fees and expenses 114 103 Identifiable intangible assets 163 224 Other 31 45 Total deferred tax liabilities 1,344 1,875 Net deferred tax asset (liability) $ (152 ) $ 90 |
Schedule of Changes in Unrecognized Tax Benefits | The following table presents changes in unrecognized tax benefits: As of/ For the Year Ended December 31, (Dollars in millions) 2017 2016 2015 Beginning balance of unrecognized tax benefits $ 1 $ 426 $ 503 Additions based on tax positions related to current year — — — Additions (reductions) for tax positions of prior years — (5 ) (76 ) Settlements — (420 ) (1 ) Lapse of statute of limitations — — (1 ) Unrecognized deferred tax benefits from acquisitions — — 1 Ending balance of unrecognized tax benefits $ 1 $ 1 $ 426 Unrecognized tax benefits that would have impacted effective rate if recognized Federal $ — $ — $ 422 State 1 1 3 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Significant Actuarial Assumptions Used to Determine Net Periodic Pension Costs | The following actuarial assumptions were used to determine net periodic pension costs for the qualified pension plans: December 31, 2017 2016 2015 Weighted average assumed discount rate 4.43 % 4.68 % 4.27 % Weighted average expected long-term rate of return on plan assets 7.00 7.00 7.50 Assumed long-term rate of annual compensation increases 4.50 4.50 4.50 |
Summary of the Components of Net Periodic Benefit Cost Recognized for Pension Plans | Financial data relative to qualified and nonqualified defined benefit pension plans is summarized in the following tables for the years indicated. On the Consolidated Balance Sheets, the qualified pension plan prepaid asset is recorded as a component of other assets and the nonqualified pension plans accrued liability is recorded as a component of other liabilities. The data is calculated using an actuarial measurement date of December 31. Year Ended December 31, (Dollars in millions) 2017 2016 2015 Net Periodic Pension Cost: Service cost $ 200 $ 186 $ 176 Interest cost 192 181 157 Estimated return on plan assets (372 ) (326 ) (327 ) Net amortization and other 75 80 67 Net periodic benefit cost 95 121 73 Pre-Tax Amounts Recognized in OCI: Prior service credit (cost) 30 — — Net actuarial loss (gain) 137 138 230 Net amortization (75 ) (80 ) (67 ) Net amount recognized in OCI 92 58 163 Total net periodic pension costs (income) recognized in total comprehensive income, pre-tax $ 187 $ 179 $ 236 |
Schedule of Significant Actuarial Assumptions Used to Determine Benefit Obligations | The following actuarial assumptions were used to determine benefit obligations: December 31, 2017 2016 Weighted average assumed discount rate 3.79 % 4.43 % Assumed rate of annual compensation increases 4.50 4.50 |
Changes in Projected Benefit Obligation | Activity in the projected benefit obligation is presented in the following table: Qualified Plan Nonqualified Plans Year Ended December 31, Year Ended December 31, (Dollars in millions) 2017 2016 2017 2016 Projected benefit obligation, beginning of year $ 3,939 $ 3,473 $ 426 $ 392 Service cost 188 174 12 12 Interest cost 173 163 19 18 Actuarial (gain) loss 576 152 77 15 Benefits paid (102 ) (94 ) (12 ) (11 ) Plan amendments 165 — (135 ) — Acquisitions — 71 — — Projected benefit obligation, end of year $ 4,939 $ 3,939 $ 387 $ 426 Accumulated benefit obligation, end of year $ 4,198 $ 3,403 $ 288 $ 363 |
Changes in Fair Value of Plan Assets | Activity in plan assets is presented in the following table: Qualified Plan Nonqualified Plans Year Ended December 31, Year Ended December 31, (Dollars in millions) 2017 2016 2017 2016 Fair value of plan assets, beginning of year $ 5,044 $ 4,369 $ — $ — Actual return on plan assets 888 356 — — Employer contributions 479 360 13 11 Benefits paid (102 ) (94 ) (13 ) (11 ) Acquisitions — 53 — — Fair value of plan assets, end of year $ 6,309 $ 5,044 $ — $ — Funded status at end of year $ 1,370 $ 1,105 $ (387 ) $ (426 ) |
Schedule of Pre-tax Amounts Recognized in AOCI | The following are the pre-tax amounts recognized in AOCI: Qualified Plan Nonqualified Plans Year Ended December 31, Year Ended December 31, (Dollars in millions) 2017 2016 2017 2016 Prior service credit (cost) $ (165 ) $ — $ 134 $ (1 ) Net actuarial loss (1,092 ) (1,095 ) (198 ) (135 ) Net amount recognized $ (1,257 ) $ (1,095 ) $ (64 ) $ (136 ) |
Schedule of Amounts Expected to be Amortized from AOCI Into Net Periodic Pension Cost During Next Fiscal Year | The following table presents the amount expected to be amortized from AOCI into net periodic pension cost during 2018 : (Dollars in millions) Qualified Plan Nonqualified Plans Net actuarial loss $ (49 ) $ (22 ) Prior service credit (cost) (25 ) $ 19 Net amount expected to be amortized in 2018 $ (74 ) $ (3 ) |
Schedule of Estimated Future Benefit Payments | The following table reflects the estimated benefit payments for the periods presented: (Dollars in millions) Qualified Plan Nonqualified Plans 2018 $ 114 $ 15 2019 125 15 2020 137 16 2021 150 16 2022 164 17 2023-2027 1,042 101 |
Schedule of Fair Value of Pension Plan Assets by Three Level Fair Value Hierarchy | The fair values of certain pension plan assets by asset category are reflected in the following table: December 31, 2017 December 31, 2016 (Dollars in millions) Total Level 1 Level 2 Total Level 1 Level 2 Cash and cash-equivalents $ 67 $ 67 $ — $ 179 $ 179 $ — U.S. equity securities 2,503 1,333 1,170 1,892 1,018 874 International equity securities 1,130 195 935 839 165 674 Fixed income securities 2,452 10 2,442 1,914 10 1,904 Total $ 6,152 $ 1,605 $ 4,547 $ 4,824 $ 1,372 $ 3,452 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Contingencies | December 31, (Dollars in millions) 2017 2016 Letters of credit $ 2,466 $ 2,786 Carrying amount of the liability for letters of credit 21 27 Investments in affordable housing projects: Carrying amount 1,948 1,719 Amount of future funding commitments included in carrying amount 928 738 Lending exposure 561 495 Tax credits subject to recapture 471 413 Private equity investments 471 417 Future funding commitments to private equity investments 143 199 |
Schedule of 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 are excluded from the following table. December 31, (Dollars in millions) 2017 2016 Pledged securities $ 14,636 $ 15,549 Pledged loans 74,718 75,015 |
Regulatory Requirements and O41
Regulatory Requirements and Other Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Summary Information Regarding Regulatory Capital | Risk-based capital ratios, which include CET1, Tier 1 Capital and Total Capital, are calculated based on regulatory guidance related to the measurement of capital and risk-weighted assets. December 31, 2017 December 31, 2016 Actual Capital Capital Requirements Actual Capital Capital Requirements (Dollars in millions) Ratio Amount Minimum Well-Capitalized Ratio Amount Minimum Well-Capitalized CET1 Capital: BB&T Corporation 10.2 % $ 18,051 $ 7,975 $ 11,519 10.2 % $ 18,050 $ 7,926 $ 11,449 Branch Bank 11.3 19,480 7,752 11,197 11.5 19,839 7,730 11,166 Tier 1 Capital: BB&T Corporation 11.9 21,102 10,633 14,177 12.0 21,102 10,568 14,091 Branch Bank 11.3 19,480 10,336 13,781 11.5 19,839 10,307 13,743 Total Capital: BB&T Corporation 13.9 24,653 14,177 17,722 14.1 24,872 14,091 17,614 Branch Bank 13.3 22,915 13,781 17,226 13.6 23,289 13,743 17,179 Leverage Capital: BB&T Corporation 9.9 21,102 8,567 10,708 10.0 21,102 8,460 10,576 Branch Bank 9.4 19,480 8,315 10,394 9.6 19,839 8,249 10,311 |
Parent Company Financial Stat42
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Condensed Balance Sheets | Parent Company - Condensed Balance Sheets December 31, (Dollars in millions) 2017 2016 Assets: Cash and due from banks $ 13 $ 21 Interest-bearing deposits with banks 6,365 7,094 AFS securities at fair value 133 134 HTM securities at amortized cost 1 1 Advances to / receivables from subsidiaries: Banking 2,454 850 Nonbank 3,664 2,981 Total advances to / receivables from subsidiaries 6,118 3,831 Investment in subsidiaries: Banking 27,846 28,444 Nonbank 1,373 1,279 Total investment in subsidiaries 29,219 29,723 Other assets 66 131 Total assets $ 41,915 $ 40,935 Liabilities and Shareholders' Equity: Short-term borrowings $ 7 $ 46 Long-term debt 12,042 10,836 Accounts payable and other liabilities 171 127 Total liabilities 12,220 11,009 Total shareholders' equity 29,695 29,926 Total liabilities and shareholders' equity $ 41,915 $ 40,935 |
Parent Company Condensed Income and Comprehensive Income Statements | Parent Company - Condensed Income and Comprehensive Income Statements Year Ended December 31, (Dollars in millions) 2017 2016 2015 Income: Dividends from subsidiaries: Banking $ 1,950 $ 1,350 $ 1,600 Nonbank 40 6 411 Total dividends from subsidiaries 1,990 1,356 2,011 Interest and other income from subsidiaries 112 73 64 Other income 2 3 3 Total income 2,104 1,432 2,078 Expenses: Interest expense 227 160 165 Other expenses 83 56 103 Total expenses 310 216 268 Income before income taxes and equity in undistributed earnings of subsidiaries 1,794 1,216 1,810 Income tax benefit 63 38 40 Income before equity in undistributed earnings of subsidiaries 1,857 1,254 1,850 Equity in undistributed earnings of subsidiaries in excess of dividends from subsidiaries 558 1,188 273 Net income 2,415 2,442 2,123 Total OCI (88 ) (104 ) (277 ) Total comprehensive income $ 2,327 $ 2,338 $ 1,846 |
Parent Company Condensed Statements of Cash Flows | Parent Company - Statements of Cash Flows Year Ended December 31, (Dollars in millions) 2017 2016 2015 Cash Flows From Operating Activities: Net income $ 2,415 $ 2,442 $ 2,123 Adjustments to reconcile net income to net cash from operating activities: Equity in earnings of subsidiaries in excess of dividends from subsidiaries (558 ) (1,188 ) (273 ) Other, net — (14 ) 35 Net cash from operating activities 1,857 1,240 1,885 Cash Flows From Investing Activities: Proceeds from maturities, calls and paydowns of AFS securities 29 27 49 Purchases of AFS securities (29 ) (31 ) (21 ) Proceeds from maturities, calls and paydowns of HTM securities — 2 27 Investment in subsidiaries 1,100 (85 ) 17 Advances to subsidiaries (6,958 ) (7,719 ) (7,461 ) Proceeds from repayment of advances to subsidiaries 4,671 6,975 6,831 Net cash from acquisitions and divestitures — (254 ) (595 ) Other, net 1 — — Net cash from investing activities (1,186 ) (1,085 ) (1,153 ) Cash Flows From Financing Activities: Net change in short-term borrowings (39 ) (60 ) 30 Net change in long-term debt 1,319 465 (92 ) Repurchase of common stock (1,613 ) (520 ) — Net cash from common stock transactions in connection with equity awards 108 218 68 Net proceeds from preferred stock issued — 450 — Cash dividends paid on common and preferred stock (1,179 ) (1,092 ) (937 ) Other, net (4 ) 7 — Net cash from financing activities (1,408 ) (532 ) (931 ) Net Change in Cash and Cash Equivalents (737 ) (377 ) (199 ) Cash and Cash Equivalents at Beginning of Period 7,115 7,492 7,691 Cash and Cash Equivalents at End of Period $ 6,378 $ 7,115 $ 7,492 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis: December 31, 2017 (Dollars in millions) Total Level 1 Level 2 Level 3 Assets: Trading securities $ 633 $ 363 $ 270 $ — AFS securities: U.S. Treasury 2,291 — 2,291 — GSE 179 — 179 — Agency MBS 20,101 — 20,101 — States and political subdivisions 1,392 — 1,392 — Non-agency MBS 576 — 144 432 Other 8 6 2 — Total AFS securities 24,547 6 24,109 432 LHFS 1,099 — 1,099 — MSRs 1,056 — — 1,056 Derivative assets: Interest rate contracts 440 — 434 6 Foreign exchange contracts 3 — 3 — Total derivative assets 443 — 437 6 Private equity investments 404 — — 404 Total assets $ 28,182 $ 369 $ 25,915 $ 1,898 Liabilities: Derivative liabilities: Interest rate contracts $ 708 $ — $ 705 $ 3 Foreign exchange contracts 6 — 6 — Total derivative liabilities 714 — 711 3 Securities sold short 120 — 120 — Total liabilities $ 834 $ — $ 831 $ 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 |
Roll Forward of Level 3 Assets and Liabilities | The following table summarizes activity for Level 3 assets and liabilities: Non-agency MBS MSRs Net Derivatives Private Equity Investments (Dollars in millions) Balance at January 1, 2015 $ 745 $ 844 $ 17 $ 329 Total realized and unrealized gains (losses): Included in earnings (1) 23 10 81 49 Included in unrealized holding gains (losses) in OCI (45 ) — — — Purchases — — 1 81 Issuances — 156 74 — Sales — — — (132 ) Settlements (97 ) (130 ) (169 ) (38 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Balance at December 31, 2015 626 880 4 289 Total realized and unrealized gains (losses): Included in earnings (1) 25 63 97 20 Included in unrealized net holding gains (losses) in OCI (45 ) — — — Purchases — — — 106 Issuances — 146 82 — Sales — — — (4 ) Settlements (99 ) (160 ) (196 ) (49 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Adoption of fair value option for commercial MSRs — 123 — — Balance at December 31, 2016 507 1,052 (13 ) 362 Total realized and unrealized gains (losses): Included in earnings (1) 36 48 38 58 Included in unrealized net holding gains (losses) in OCI (40 ) — — — Purchases — — — 142 Issuances — 124 43 — Sales — — — (119 ) Settlements (71 ) (168 ) (65 ) (26 ) Transfers into Level 3 — — — — Transfers out of Level 3 — — — (13 ) Balance at December 31, 2017 $ 432 $ 1,056 $ 3 $ 404 Change in unrealized gains (losses) included in earnings for the year attributable to assets and liabilities still held at December 31, 2017 $ 35 $ 48 $ 3 $ 12 (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: December 31, 2017 December 31, 2016 (Dollars in millions) Fair Value Aggregate UPB Difference Fair Value Aggregate UPB Difference LHFS reported at fair value $ 1,099 $ 1,084 $ 15 $ 1,716 $ 1,736 $ (20 ) |
Financial Assets Measured at Fair Value on Nonrecurring Basis | The following table provides information about certain financial 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). As Of / For the Year Ended December 31, 2017 December 31, 2016 (Dollars in millions) Carrying Value Valuation Adjustments Carrying Value Valuation Adjustments Impaired loans $ 163 $ (22 ) $ 278 $ (89 ) Foreclosed real estate 32 (255 ) 50 (221 ) |
Carrying Amounts and Fair Values of Financial Assets and Liabilities Not Recorded at Fair Value | Financial assets and liabilities not recorded at fair value are summarized below: December 31, 2017 Carrying Amount Total Fair Value Level 2 Level 3 (Dollars in millions) Financial assets: HTM securities $ 23,027 $ 22,837 $ 22,837 $ — Loans and leases HFI, net of ALLL 142,211 141,664 — 141,664 Financial liabilities: Deposits 157,371 157,466 157,466 — Long-term debt 23,648 23,885 23,885 — December 31, 2016 Carrying Amount Total Fair Value Level 2 Level 3 (Dollars in millions) 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 — |
Notional or Contractual Amounts and Fair Values of Off-Balance Sheet Financial Instruments | The following is a summary of selected information pertaining to off-balance sheet financial instruments: December 31, 2017 December 31, 2016 (Dollars in millions) Notional/Contract Amount Fair Value Notional/Contract Amount Fair Value Commitments to extend, originate or purchase credit $ 67,860 $ 259 $ 64,395 $ 250 Residential mortgage loans sold with recourse 490 5 578 7 Other loans sold with recourse 4,153 5 4,240 7 Letters of credit 2,466 21 2,786 27 |
Derivative Financial Instrume44
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments and Related Hedged Items | The following table presents the notional amount and estimated fair value of derivative instruments: December 31, 2017 December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value (Dollars in millions) Hedged Item or Transaction Gain Loss Gain Loss Cash flow hedges: Interest rate contracts: Pay fixed swaps 3 mo. LIBOR funding $ 6,500 $ — $ (126 ) $ 7,050 $ — $ (187 ) Fair value hedges: Interest rate contracts: Receive fixed swaps Long-term debt 15,538 118 (166 ) 12,099 202 (100 ) Options Long-term debt 6,087 — (1 ) 2,790 — (1 ) Pay fixed swaps Commercial loans 416 5 (1 ) 346 4 (2 ) Pay fixed swaps Municipal securities 231 — (76 ) 231 — (83 ) Total 22,272 123 (244 ) 15,466 206 (186 ) Not designated as hedges: Client-related and other risk management: Interest rate contracts: Receive fixed swaps 10,880 141 (61 ) 9,989 235 (44 ) Pay fixed swaps 10,962 59 (155 ) 10,263 43 (252 ) Other swaps 936 2 (2 ) 1,086 2 (5 ) Other 722 2 (2 ) 709 2 (2 ) Forward commitments 3,549 3 (2 ) 5,972 29 (28 ) Foreign exchange contracts 470 3 (6 ) 669 8 (5 ) Total 27,519 210 (228 ) 28,688 319 (336 ) Mortgage banking: Interest rate contracts: Interest rate lock commitments 1,308 7 (3 ) 2,219 7 (20 ) When issued securities, forward rate agreements and forward commitments 3,124 4 (3 ) 6,683 51 (14 ) Other 182 1 — 449 2 (1 ) Total 4,614 12 (6 ) 9,351 60 (35 ) MSRs: Interest rate contracts: Receive fixed swaps 4,498 15 (86 ) 5,034 18 (236 ) Pay fixed swaps 3,418 32 (13 ) 3,768 56 (7 ) Options 4,535 50 (11 ) 5,710 160 (8 ) When issued securities, forward rate agreements and forward commitments 1,813 1 — 3,210 3 (8 ) Other 3 — — — — — Total 14,267 98 (110 ) 17,722 237 (259 ) Total derivatives not designated as hedges 46,400 320 (344 ) 55,761 616 (630 ) Total derivatives $ 75,172 443 (714 ) $ 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 (297 ) 297 (443 ) 443 Cash collateral (received) posted (20 ) 344 (119 ) 450 Net amount $ 126 $ (73 ) $ 260 $ (110 ) |
The Effect of Derivative Instruments on the Consolidated Statements of Income | The following table presents the effect of hedging derivative instruments on the consolidated statements of income: Effective Portion Year Ended December 31 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 2015 2017 2016 2015 Cash Flow Hedges: Interest rate contracts $ 10 $ (24 ) $ (130 ) Total interest expense $ (15 ) $ (11 ) $ (83 ) Location of Amounts Recognized in Income Pre-tax Gain (Loss) Recognized in Income 2017 2016 2015 (Dollars in millions) Fair Value Hedges: Interest rate contracts Total interest income $ (19 ) $ (18 ) $ (20 ) Interest rate contracts Total interest expense 148 226 279 Total $ 129 $ 208 $ 259 Not Designated as Hedges: Client-related and other risk management: Interest rate contracts Other income $ 50 $ 52 $ 27 Foreign exchange contracts Other income 1 11 21 Mortgage Banking: Interest rate contracts Mortgage banking income (12 ) 8 7 MSRs: Interest rate contracts Mortgage banking income — 31 32 Total $ 39 $ 102 $ 87 |
Deferred Gains and Losses From Cash Flow and Fair Value Hedges | The following table presents information about BB&T's cash flow and fair value hedges: December 31, (Dollars in millions) 2017 2016 Cash flow hedges: Net unrecognized after-tax loss on active hedges recorded in AOCI $ (96 ) $ (118 ) Net unrecognized after-tax gain on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) 3 26 Estimated portion of net after-tax loss on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months (25 ) (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 yrs 6 yrs Fair value hedges: Unrecognized pre-tax net gain on terminated hedges (to be recognized as interest primarily through 2019) $ 129 $ 169 Portion of pre-tax net gain on terminated hedges to be recognized as a change in interest during the next 12 months 49 56 |
Schedule of Derivative Instruments Summary of Collateral Positions with Counterparties | December 31, (Dollars in millions) 2017 2016 Dealer Counterparties: Cash collateral received from dealer counterparties $ 21 $ 123 Derivatives in a net gain position secured by collateral received 22 123 Unsecured positions in a net gain with dealer counterparties after collateral postings 2 4 Cash collateral posted to dealer counterparties 172 138 Derivatives in a net loss position secured by collateral posted 171 144 Additional collateral that would have been posted had BB&T's credit ratings dropped below investment grade — 8 Central Clearing Parties: Cash collateral, including initial margin, posted to central clearing parties 177 313 Derivatives in a net loss position secured by that collateral 176 318 Securities pledged to central clearing parties 91 119 |
Computation of EPS (Tables)
Computation of EPS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS | Basic and diluted EPS calculations are presented in the following table: Year Ended December 31, (Dollars in millions, except per share data, shares in thousands) 2017 2016 2015 Net income available to common shareholders $ 2,220 $ 2,259 $ 1,936 Weighted average number of common shares 799,217 804,680 748,010 Effect of dilutive outstanding equity-based awards 11,760 10,236 9,755 Weighted average number of diluted common shares 810,977 814,916 757,765 Basic EPS $ 2.78 $ 2.81 $ 2.59 Diluted EPS $ 2.74 $ 2.77 $ 2.56 Anti-dilutive awards 210 5,609 8,620 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information Regarding Reportable Business Segments | Year Ended December 31, CB-Retail CB-Commercial FS&CF (Dollars in millions) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net interest income (expense) $ 3,415 $ 3,290 $ 3,035 $ 1,740 $ 1,604 $ 1,345 $ 583 $ 511 $ 443 Net intersegment interest income (expense) 149 115 (119 ) 379 404 324 127 142 110 Segment net interest income 3,564 3,405 2,916 2,119 2,008 1,669 710 653 553 Allocated provision for credit losses 501 475 365 69 (40 ) 1 (15 ) 128 67 Segment net interest income after provision 3,063 2,930 2,551 2,050 2,048 1,668 725 525 486 Noninterest income 1,404 1,354 1,342 423 392 390 1,181 1,148 1,046 Noninterest expense 2,725 2,469 2,357 1,198 1,302 1,153 1,190 1,141 1,020 Income (loss) before income taxes 1,742 1,815 1,536 1,275 1,138 905 716 532 512 Provision (benefit) for income taxes 650 686 588 441 403 324 225 156 151 Segment net income (loss) $ 1,092 $ 1,129 $ 948 $ 834 $ 735 $ 581 $ 491 $ 376 $ 361 Identifiable assets (period end) $ 71,093 $ 74,642 $ 71,027 $ 56,563 $ 55,035 $ 51,231 $ 29,144 $ 26,795 $ 25,294 IH&PF OT&C (1) Total BB&T Corporation 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net interest income (expense) $ 98 $ 86 $ 79 $ 699 $ 830 $ 690 $ 6,535 $ 6,321 $ 5,592 Net intersegment interest income (expense) (21 ) (19 ) (16 ) (634 ) (642 ) (299 ) — — — Segment net interest income 77 67 63 65 188 391 6,535 6,321 5,592 Allocated provision for credit losses 4 3 4 (12 ) 6 (9 ) 547 572 428 Segment net interest income after provision 73 64 59 77 182 400 5,988 5,749 5,164 Noninterest income 1,777 1,731 1,611 (3 ) (153 ) (370 ) 4,782 4,472 4,019 Noninterest expense 1,590 1,525 1,371 741 284 365 7,444 6,721 6,266 Income (loss) before income taxes 260 270 299 (667 ) (255 ) (335 ) 3,326 3,500 2,917 Provision (benefit) for income taxes 99 104 105 (504 ) (291 ) (374 ) 911 1,058 794 Segment net income (loss) $ 161 $ 166 $ 194 $ (163 ) $ 36 $ 39 $ 2,415 $ 2,442 $ 2,123 Identifiable assets (period end) $ 6,024 $ 5,943 $ 4,998 $ 58,818 $ 56,861 $ 57,397 $ 221,642 $ 219,276 $ 209,947 (1) Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure. |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | $ 0 |
AOCI | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | 247 |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | (247) |
Adjustments for New Accounting Pronouncement | AOCI | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | 247 |
Adjustments for New Accounting Pronouncement | Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | $ (247) |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash from operating activities | $ 4,635 | $ 3,115 | $ 3,131 |
Net cash from investing activities | (5,309) | (1,008) | (1,849) |
Net cash from financing activities | (549) | (1,882) | 104 |
Net Change in Cash and Cash Equivalents | $ (1,223) | 225 | 1,386 |
Effect of Correction | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash from operating activities | 443 | 216 | |
Net cash from investing activities | (326) | (211) | |
Net cash from financing activities | (117) | (5) | |
Net Change in Cash and Cash Equivalents | $ 0 | $ 0 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Schedule of Loans and Leases Past Due Policies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($) | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Sustained performance period to return to accrual status | 180 days | |
Threshold period for past due classification of loans and leases receivable | 30 days | |
Collateral on impaired loans and foreclosed properties, valuation period | 6 months | |
Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold amount for annual risk ratings review (or more) | $ 2 | |
Threshold amount to be subjected to automated loan review system that produces a score for evaluating reserves (less than) | 2 | |
Threshold amount to establish a reserve on nonaccrual loans (or more) | 3 | |
Commercial | Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold amount to establish a reserve on collateral dependent loans based upon the underlying collateral value, net of costs to sell | 1 | |
Commercial | Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold amount to establish a reserve on collateral dependent loans based upon the underlying collateral value, net of costs to sell | $ 3 | |
Commercial | Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold period for nonaccrual status classification of loans | 90 days | [1],[2] |
Threshold period past due for charge down of loans | 90 days | |
Commercial | CRE | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold period for nonaccrual status classification of loans | 90 days | [1],[2] |
Threshold period past due for charge down of loans | 90 days | |
Commercial | Lease financing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold period for nonaccrual status classification of loans | 90 days | [1],[2] |
Threshold period past due for charge down of loans | 90 days | |
Retail | Residential mortgage | Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold period for nonaccrual status classification of loans | 90 days | [1],[3] |
Threshold period past due for charge down of loans | 90 days | [3] |
Retail | Residential mortgage | Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold period for nonaccrual status classification of loans | 180 days | [1],[3] |
Threshold period past due for charge down of loans | 210 days | [3] |
Retail | Direct | Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold period for nonaccrual status classification of loans | 90 days | [1],[3] |
Threshold period past due for charge down of loans | 90 days | [3] |
Retail | Direct | Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold period for nonaccrual status classification of loans | 120 days | [1],[3] |
Threshold period past due for charge down of loans | 120 days | [3] |
Retail | Indirect | Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold period for nonaccrual status classification of loans | 90 days | [1],[3] |
Threshold period past due for charge down of loans | 90 days | [3] |
Retail | Indirect | Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold period for nonaccrual status classification of loans | 120 days | [1],[3] |
Threshold period past due for charge down of loans | 120 days | [3] |
Revolving credit | Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold period past due for charge down of loans | 90 days | [3] |
Revolving credit | Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold period past due for charge down of loans | 180 days | [3] |
[1] | Loans may be returned to accrual status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest, generally indicated by 180 days of sustained performance. | |
[2] | Or when it is probable that principal or interest is not fully collectible, whichever occurs first. | |
[3] | Depends on product type, loss mitigation status and status of the government guaranty. |
Securities - Narrative (Details
Securities - Narrative (Details) $ in Billions | Dec. 31, 2017USD ($)security |
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 | 10.2 |
Securities, fair value | $ 10 |
Non-agency MBS | |
Schedule of Available-for-sale Securities [Line Items] | |
Number of securities with other than temporary credit impairment | security | 0 |
Securities - Summary of Amortiz
Securities - Summary of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Approximate Fair Values of Securities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
AFS securities: | ||
Amortized Cost | $ 25,009 | $ 27,333 |
Gross Unrealized Gains | 237 | 304 |
Gross Unrealized Losses | 699 | 711 |
Fair Value | 24,547 | 26,926 |
HTM securities: | ||
Amortized Cost | 23,027 | 16,680 |
Gross Unrealized Gains | 54 | 76 |
Gross Unrealized Losses | 244 | 210 |
Fair Value | 22,837 | 16,546 |
U.S. Treasury | ||
AFS securities: | ||
Amortized Cost | 2,368 | 2,669 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | 77 | 84 |
Fair Value | 2,291 | 2,587 |
HTM securities: | ||
Amortized Cost | 1,098 | 1,098 |
Gross Unrealized Gains | 8 | 20 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,106 | 1,118 |
GSE | ||
AFS securities: | ||
Amortized Cost | 187 | 190 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 8 | 10 |
Fair Value | 179 | 180 |
HTM securities: | ||
Amortized Cost | 2,198 | 2,197 |
Gross Unrealized Gains | 11 | 14 |
Gross Unrealized Losses | 22 | 30 |
Fair Value | 2,187 | 2,181 |
Agency MBS | ||
AFS securities: | ||
Amortized Cost | 20,683 | 21,819 |
Gross Unrealized Gains | 8 | 13 |
Gross Unrealized Losses | 590 | 568 |
Fair Value | 20,101 | 21,264 |
HTM securities: | ||
Amortized Cost | 19,660 | 13,225 |
Gross Unrealized Gains | 33 | 40 |
Gross Unrealized Losses | 222 | 180 |
Fair Value | 19,471 | 13,085 |
States and political subdivisions | ||
AFS securities: | ||
Amortized Cost | 1,379 | 2,198 |
Gross Unrealized Gains | 37 | 56 |
Gross Unrealized Losses | 24 | 49 |
Fair Value | 1,392 | 2,205 |
HTM securities: | ||
Amortized Cost | 28 | 110 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 28 | 110 |
Non-agency MBS | ||
AFS securities: | ||
Amortized Cost | 384 | 446 |
Gross Unrealized Gains | 192 | 233 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 576 | 679 |
Other | ||
AFS securities: | ||
Amortized Cost | 8 | 11 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 8 | 11 |
HTM securities: | ||
Amortized Cost | 43 | 50 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 45 | $ 52 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
AFS, Amortized Cost | ||
Due in one year or less | $ 336 | |
Due after one year through five years | 498 | |
Due after five years through ten years | 2,419 | |
Due after ten years | 21,756 | |
Total debt securities | 25,009 | |
AFS, Fair Value | ||
Due in one year or less | 335 | |
Due after one year through five years | 496 | |
Due after five years through ten years | 2,341 | |
Due after ten years | 21,375 | |
Total debt securities | 24,547 | |
HTM, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 2,237 | |
Due after five years through ten years | 1,111 | |
Due after ten years | 19,679 | |
Amortized Cost | 23,027 | $ 16,680 |
HTM, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 2,242 | |
Due after five years through ten years | 1,103 | |
Due after ten years | 19,492 | |
Total debt securities | $ 22,837 | $ 16,546 |
Securities - Schedule of Fair V
Securities - Schedule of Fair Values and Gross Unrealized Losses of Investments by Investment Category and Length of Time (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
AFS securities, Fair Value | ||
Less than 12 months | $ 5,921 | $ 17,401 |
12 months or more | 16,100 | 5,452 |
Total | 22,021 | 22,853 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 69 | 443 |
12 months or more | 630 | 268 |
Total | 699 | 711 |
HTM securities, Fair Value | ||
Less than 12 months | 12,350 | 9,479 |
12 months or more | 4,921 | 305 |
Total | 17,271 | 9,784 |
HTM securities, Unrealized Losses | ||
Less than 12 months | 89 | 208 |
12 months or more | 155 | 2 |
Total | 244 | 210 |
U.S. Treasury | ||
AFS securities, Fair Value | ||
Less than 12 months | 634 | 2,014 |
12 months or more | 1,655 | 0 |
Total | 2,289 | 2,014 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 4 | 84 |
12 months or more | 73 | 0 |
Total | 77 | 84 |
GSE | ||
AFS securities, Fair Value | ||
Less than 12 months | 9 | 180 |
12 months or more | 170 | 0 |
Total | 179 | 180 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 0 | 10 |
12 months or more | 8 | 0 |
Total | 8 | 10 |
HTM securities, Fair Value | ||
Less than 12 months | 1,470 | 1,762 |
12 months or more | 290 | 0 |
Total | 1,760 | 1,762 |
HTM securities, Unrealized Losses | ||
Less than 12 months | 12 | 30 |
12 months or more | 10 | 0 |
Total | 22 | 30 |
Agency MBS | ||
AFS securities, Fair Value | ||
Less than 12 months | 5,077 | 14,842 |
12 months or more | 13,920 | 5,138 |
Total | 18,997 | 19,980 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 64 | 342 |
12 months or more | 526 | 226 |
Total | 590 | 568 |
HTM securities, Fair Value | ||
Less than 12 months | 10,880 | 7,717 |
12 months or more | 4,631 | 305 |
Total | 15,511 | 8,022 |
HTM securities, Unrealized Losses | ||
Less than 12 months | 77 | 178 |
12 months or more | 145 | 2 |
Total | 222 | 180 |
States and political subdivisions | ||
AFS securities, Fair Value | ||
Less than 12 months | 201 | 365 |
12 months or more | 355 | 314 |
Total | 556 | 679 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 1 | 7 |
12 months or more | 23 | 42 |
Total | $ 24 | $ 49 |
Loans and ACL - Narrative (Deta
Loans and ACL - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable [Line Items] | |||
Modifications that defaulted during the period that had been classified as a TDR during the previous 12 months | $ 104 | $ 73 | $ 81 |
Retail | Indirect | |||
Financing Receivable [Line Items] | |||
Purchased loan portfolio | 244 | $ 2,900 | |
Retail | Residential mortgage | |||
Financing Receivable [Line Items] | |||
Loans sold | 905 | ||
Nonaccrual loans | Retail | Residential mortgage | |||
Financing Receivable [Line Items] | |||
Loans sold | 61 | ||
Performing TDRs | Retail | Residential mortgage | |||
Financing Receivable [Line Items] | |||
Loans sold | $ 331 |
Loans and ACL - Aging Analysis
Loans and ACL - Aging Analysis of Past Due Loans and Leases (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable [Line Items] | ||
Current | $ 141,531 | $ 140,873 |
30-89 Days Past Due | 1,052 | 1,077 |
90 Days Or More Past Due | 548 | 636 |
Nonaccrual | 570 | 736 |
Total | 143,701 | 143,322 |
Commercial | Commercial and industrial | ||
Financing Receivable [Line Items] | ||
Current | 58,852 | 57,326 |
30-89 Days Past Due | 41 | 44 |
90 Days Or More Past Due | 1 | 0 |
Nonaccrual | 259 | 369 |
Total | 59,153 | 57,739 |
Commercial | CRE | ||
Financing Receivable [Line Items] | ||
Current | 21,209 | 19,699 |
30-89 Days Past Due | 8 | 8 |
90 Days Or More Past Due | 1 | 0 |
Nonaccrual | 45 | 57 |
Total | 21,263 | 19,764 |
Commercial | Lease financing | ||
Financing Receivable [Line Items] | ||
Current | 1,906 | 1,669 |
30-89 Days Past Due | 4 | 4 |
90 Days Or More Past Due | 0 | 0 |
Nonaccrual | 1 | 4 |
Total | 1,911 | 1,677 |
Retail | Residential mortgage | ||
Financing Receivable [Line Items] | ||
Current | 27,659 | 28,702 |
30-89 Days Past Due | 472 | 525 |
90 Days Or More Past Due | 465 | 522 |
Nonaccrual | 129 | 172 |
Total | 28,725 | 29,921 |
Retail | Direct | ||
Financing Receivable [Line Items] | ||
Current | 11,756 | 11,963 |
30-89 Days Past Due | 65 | 60 |
90 Days Or More Past Due | 6 | 6 |
Nonaccrual | 64 | 63 |
Total | 11,891 | 12,092 |
Retail | Indirect | ||
Financing Receivable [Line Items] | ||
Current | 16,745 | 18,110 |
30-89 Days Past Due | 412 | 377 |
90 Days Or More Past Due | 6 | 6 |
Nonaccrual | 72 | 71 |
Total | 17,235 | 18,564 |
Revolving credit | ||
Financing Receivable [Line Items] | ||
Current | 2,837 | 2,620 |
30-89 Days Past Due | 23 | 23 |
90 Days Or More Past Due | 12 | 12 |
Nonaccrual | 0 | 0 |
Total | 2,872 | 2,655 |
PCI | ||
Financing Receivable [Line Items] | ||
Current | 567 | 784 |
30-89 Days Past Due | 27 | 36 |
90 Days Or More Past Due | 57 | 90 |
Nonaccrual | 0 | 0 |
Total | $ 651 | $ 910 |
Loans and ACL - Schedule of Cre
Loans and ACL - Schedule of Credit Exposure Credit Risk Profile by Internal Loan Risk Rating, Excluding PCI Loans (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable [Line Items] | ||
Loans and leases | $ 143,701 | $ 143,322 |
Commercial | Commercial and industrial | ||
Financing Receivable [Line Items] | ||
Loans and leases | 59,153 | 57,739 |
Commercial | Commercial and industrial | Pass | ||
Financing Receivable [Line Items] | ||
Loans and leases | 57,700 | 55,881 |
Commercial | Commercial and industrial | Special mention | ||
Financing Receivable [Line Items] | ||
Loans and leases | 268 | 343 |
Commercial | Commercial and industrial | Substandard-performing | ||
Financing Receivable [Line Items] | ||
Loans and leases | 926 | 1,146 |
Commercial | Commercial and industrial | Nonperforming | ||
Financing Receivable [Line Items] | ||
Loans and leases | 259 | 369 |
Commercial | CRE | ||
Financing Receivable [Line Items] | ||
Loans and leases | 21,263 | 19,764 |
Commercial | CRE | Pass | ||
Financing Receivable [Line Items] | ||
Loans and leases | 20,862 | 19,186 |
Commercial | CRE | Special mention | ||
Financing Receivable [Line Items] | ||
Loans and leases | 48 | 162 |
Commercial | CRE | Substandard-performing | ||
Financing Receivable [Line Items] | ||
Loans and leases | 308 | 359 |
Commercial | CRE | Nonperforming | ||
Financing Receivable [Line Items] | ||
Loans and leases | 45 | 57 |
Commercial | Lease financing | ||
Financing Receivable [Line Items] | ||
Loans and leases | 1,911 | 1,677 |
Commercial | Lease financing | Pass | ||
Financing Receivable [Line Items] | ||
Loans and leases | 1,881 | 1,641 |
Commercial | Lease financing | Special mention | ||
Financing Receivable [Line Items] | ||
Loans and leases | 6 | 4 |
Commercial | Lease financing | Substandard-performing | ||
Financing Receivable [Line Items] | ||
Loans and leases | 23 | 28 |
Commercial | Lease financing | Nonperforming | ||
Financing Receivable [Line Items] | ||
Loans and leases | 1 | 4 |
Retail | Residential mortgage | ||
Financing Receivable [Line Items] | ||
Loans and leases | 28,725 | 29,921 |
Retail | Residential mortgage | Performing | ||
Financing Receivable [Line Items] | ||
Loans and leases | 28,596 | 29,749 |
Retail | Residential mortgage | Nonperforming | ||
Financing Receivable [Line Items] | ||
Loans and leases | 129 | 172 |
Retail | Direct | ||
Financing Receivable [Line Items] | ||
Loans and leases | 11,891 | 12,092 |
Retail | Direct | Performing | ||
Financing Receivable [Line Items] | ||
Loans and leases | 11,827 | 12,029 |
Retail | Direct | Nonperforming | ||
Financing Receivable [Line Items] | ||
Loans and leases | 64 | 63 |
Retail | Indirect | ||
Financing Receivable [Line Items] | ||
Loans and leases | 17,235 | 18,564 |
Retail | Indirect | Performing | ||
Financing Receivable [Line Items] | ||
Loans and leases | 17,163 | 18,493 |
Retail | Indirect | Nonperforming | ||
Financing Receivable [Line Items] | ||
Loans and leases | $ 72 | $ 71 |
Loans and ACL - Analysis of the
Loans and ACL - Analysis of the Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Provision (Benefit) | $ 547 | $ 572 | $ 428 |
Commercial | Commercial and industrial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 530 | 488 | 446 |
Charge-Offs | (95) | (143) | (90) |
Recoveries | 36 | 44 | 40 |
Provision (Benefit) | 51 | 141 | 92 |
Other | 0 | 0 | 0 |
Ending Balance | 522 | 530 | 488 |
Commercial | CRE | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 145 | 175 | 212 |
Charge-Offs | (10) | (9) | (24) |
Recoveries | 16 | 19 | 18 |
Provision (Benefit) | 9 | (40) | (31) |
Other | 0 | 0 | 0 |
Ending Balance | 160 | 145 | 175 |
Commercial | Lease financing | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 7 | 5 | 4 |
Charge-Offs | (5) | (6) | 0 |
Recoveries | 2 | 2 | 0 |
Provision (Benefit) | 5 | 6 | 1 |
Other | 0 | 0 | 0 |
Ending Balance | 9 | 7 | 5 |
Retail | Residential mortgage | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 227 | 217 | 253 |
Charge-Offs | (47) | (40) | (46) |
Recoveries | 2 | 3 | 3 |
Provision (Benefit) | 27 | 47 | 7 |
Other | 0 | 0 | 0 |
Ending Balance | 209 | 227 | 217 |
Retail | Direct | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 103 | 105 | 110 |
Charge-Offs | (61) | (53) | (54) |
Recoveries | 25 | 26 | 29 |
Provision (Benefit) | 39 | 25 | 20 |
Other | 0 | 0 | 0 |
Ending Balance | 106 | 103 | 105 |
Retail | Indirect | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 327 | 305 | 275 |
Charge-Offs | (402) | (366) | (303) |
Recoveries | 60 | 55 | 42 |
Provision (Benefit) | 363 | 333 | 291 |
Other | 0 | 0 | 0 |
Ending Balance | 348 | 327 | 305 |
Revolving credit | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 106 | 104 | 110 |
Charge-Offs | (76) | (69) | (70) |
Recoveries | 19 | 20 | 20 |
Provision (Benefit) | 59 | 51 | 44 |
Other | 0 | 0 | 0 |
Ending Balance | 108 | 106 | 104 |
PCI | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 44 | 61 | 64 |
Charge-Offs | (1) | (15) | (1) |
Recoveries | 0 | 0 | 0 |
Provision (Benefit) | (15) | (2) | (2) |
Other | 0 | 0 | 0 |
Ending Balance | 28 | 44 | 61 |
ALLL | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 1,489 | 1,460 | 1,474 |
Charge-Offs | (697) | (701) | (588) |
Recoveries | 160 | 169 | 152 |
Provision (Benefit) | 538 | 561 | 422 |
Other | 0 | 0 | 0 |
Ending Balance | 1,490 | 1,489 | 1,460 |
RUFC | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 110 | 90 | 60 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision (Benefit) | 9 | 11 | 6 |
Other | 0 | 9 | 24 |
Ending Balance | 119 | 110 | 90 |
ACL | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 1,599 | 1,550 | 1,534 |
Charge-Offs | (697) | (701) | (588) |
Recoveries | 160 | 169 | 152 |
Provision (Benefit) | 547 | 572 | 428 |
Other | 0 | 9 | 24 |
Ending Balance | $ 1,609 | $ 1,599 | $ 1,550 |
Loans and ACL - Schedule of Loa
Loans and ACL - Schedule of Loans Collectively Evaluated for Impairment (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable [Line Items] | ||
Recorded Investment | $ 142,044 | $ 141,395 |
Related ALLL | 1,319 | 1,297 |
Commercial | Commercial and industrial | ||
Financing Receivable [Line Items] | ||
Recorded Investment | 58,804 | 57,265 |
Related ALLL | 494 | 492 |
Commercial | CRE | ||
Financing Receivable [Line Items] | ||
Recorded Investment | 21,173 | 19,649 |
Related ALLL | 154 | 136 |
Commercial | Lease financing | ||
Financing Receivable [Line Items] | ||
Recorded Investment | 1,910 | 1,672 |
Related ALLL | 9 | 7 |
Retail | Residential mortgage | ||
Financing Receivable [Line Items] | ||
Recorded Investment | 27,914 | 28,954 |
Related ALLL | 143 | 144 |
Retail | Direct | ||
Financing Receivable [Line Items] | ||
Recorded Investment | 11,815 | 12,011 |
Related ALLL | 98 | 93 |
Retail | Indirect | ||
Financing Receivable [Line Items] | ||
Recorded Investment | 16,935 | 18,308 |
Related ALLL | 296 | 286 |
Revolving credit | ||
Financing Receivable [Line Items] | ||
Recorded Investment | 2,842 | 2,626 |
Related ALLL | 97 | 95 |
PCI | ||
Financing Receivable [Line Items] | ||
Recorded Investment | 651 | 910 |
Related ALLL | $ 28 | $ 44 |
Loans and ACL - Schedule of L59
Loans and ACL - Schedule of Loans Individually Evaluated for Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
UPB | $ 1,770 | $ 2,057 |
Recorded Investment Without an ALLL | 322 | 355 |
Recorded Investment With an ALLL | 1,335 | 1,572 |
Related ALLL | 171 | 192 |
Average Recorded Investment | 1,807 | 1,785 |
Interest Income Recognized | 92 | 82 |
Commercial | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 381 | 505 |
Recorded Investment Without an ALLL | 136 | 204 |
Recorded Investment With an ALLL | 213 | 271 |
Related ALLL | 28 | 38 |
Average Recorded Investment | 424 | 483 |
Interest Income Recognized | 6 | 6 |
Commercial | CRE | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 91 | 121 |
Recorded Investment Without an ALLL | 26 | 35 |
Recorded Investment With an ALLL | 64 | 80 |
Related ALLL | 6 | 9 |
Average Recorded Investment | 109 | 114 |
Interest Income Recognized | 3 | 3 |
Commercial | Lease financing | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 1 | 4 |
Recorded Investment Without an ALLL | 0 | 1 |
Recorded Investment With an ALLL | 1 | 3 |
Related ALLL | 0 | 0 |
Average Recorded Investment | 3 | 4 |
Interest Income Recognized | 0 | 0 |
Retail | Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 860 | 1,026 |
Recorded Investment Without an ALLL | 132 | 97 |
Recorded Investment With an ALLL | 679 | 870 |
Related ALLL | 67 | 83 |
Average Recorded Investment | 895 | 843 |
Interest Income Recognized | 37 | 34 |
Retail | Direct | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 99 | 107 |
Recorded Investment Without an ALLL | 22 | 13 |
Recorded Investment With an ALLL | 54 | 68 |
Related ALLL | 8 | 10 |
Average Recorded Investment | 78 | 83 |
Interest Income Recognized | 4 | 5 |
Retail | Indirect | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 308 | 265 |
Recorded Investment Without an ALLL | 6 | 5 |
Recorded Investment With an ALLL | 294 | 251 |
Related ALLL | 52 | 41 |
Average Recorded Investment | 269 | 227 |
Interest Income Recognized | 41 | 33 |
Revolving credit | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 30 | 29 |
Recorded Investment Without an ALLL | 0 | 0 |
Recorded Investment With an ALLL | 30 | 29 |
Related ALLL | 10 | 11 |
Average Recorded Investment | 29 | 31 |
Interest Income Recognized | $ 1 | $ 1 |
Loans and ACL - Schedule of Per
Loans and ACL - Schedule of Performing and Nonperforming TDRs (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable [Line Items] | ||
Total TDRs | $ 1,232 | $ 1,371 |
ALLL attributable to TDRs | 142 | 146 |
Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 1,043 | 1,187 |
Nonperforming TDRs (also included in NPL disclosures) | ||
Financing Receivable [Line Items] | ||
Total TDRs | 189 | 184 |
Commercial | Performing TDRs | Commercial and industrial | ||
Financing Receivable [Line Items] | ||
Total TDRs | 50 | 57 |
Commercial | Performing TDRs | CRE | ||
Financing Receivable [Line Items] | ||
Total TDRs | 16 | 25 |
Commercial | Performing TDRs | Lease financing | ||
Financing Receivable [Line Items] | ||
Total TDRs | 0 | 0 |
Retail | Performing TDRs | Residential mortgage | ||
Financing Receivable [Line Items] | ||
Total TDRs | 605 | 769 |
Retail | Performing TDRs | Direct | ||
Financing Receivable [Line Items] | ||
Total TDRs | 62 | 67 |
Retail | Performing TDRs | Indirect | ||
Financing Receivable [Line Items] | ||
Total TDRs | 281 | 240 |
Revolving credit | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | $ 29 | $ 29 |
Loans and ACL - Summary of the
Loans and ACL - Summary of the Primary Reason Loan Modifications Were Classified as TDRs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Newly Designated TDRs [Member] | Commercial | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
ALLL Impact | $ 3 | $ 3 | $ 2 |
Newly Designated TDRs [Member] | Commercial | CRE | |||
Financing Receivable, Modifications [Line Items] | |||
ALLL Impact | 1 | 0 | 1 |
Newly Designated TDRs [Member] | Commercial | Rate | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 79 | 105 | 68 |
Newly Designated TDRs [Member] | Commercial | Rate | CRE | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 14 | 12 | 11 |
Newly Designated TDRs [Member] | Commercial | Structure | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 101 | 96 | 31 |
Newly Designated TDRs [Member] | Commercial | Structure | CRE | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 10 | 16 | 26 |
Newly Designated TDRs [Member] | Retail | Residential mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
ALLL Impact | 25 | 28 | 16 |
Newly Designated TDRs [Member] | Retail | Direct | |||
Financing Receivable, Modifications [Line Items] | |||
ALLL Impact | 0 | 0 | 4 |
Newly Designated TDRs [Member] | Retail | Indirect | |||
Financing Receivable, Modifications [Line Items] | |||
ALLL Impact | 21 | 21 | 18 |
Newly Designated TDRs [Member] | Retail | Rate | Residential mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 357 | 431 | 230 |
Newly Designated TDRs [Member] | Retail | Rate | Direct | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 10 | 14 | 12 |
Newly Designated TDRs [Member] | Retail | Rate | Indirect | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 192 | 169 | 129 |
Newly Designated TDRs [Member] | Retail | Structure | Residential mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 46 | 53 | 34 |
Newly Designated TDRs [Member] | Retail | Structure | Direct | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 3 | 1 | 2 |
Newly Designated TDRs [Member] | Retail | Structure | Indirect | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 6 | 7 | 9 |
Newly Designated TDRs [Member] | Revolving credit | |||
Financing Receivable, Modifications [Line Items] | |||
ALLL Impact | 4 | 4 | 4 |
Newly Designated TDRs [Member] | Revolving credit | Rate | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 19 | 17 | 16 |
Newly Designated TDRs [Member] | Revolving credit | Structure | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 0 | 0 | 0 |
Re-Modification of Previously Designated TDRs [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
ALLL Impact | 0 | 0 | 0 |
Re-Modification of Previously Designated TDRs [Member] | Rate | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | 176 | 79 | 88 |
Re-Modification of Previously Designated TDRs [Member] | Structure | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs | $ 44 | $ 46 | $ 34 |
Loans and ACL - Selected Inform
Loans and ACL - Selected Information About Loans and Leases (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Unearned income, discounts and net deferred loan fees and costs, excluding PCI | $ 70 | $ 265 |
Residential mortgage loans in process of foreclosure | $ 288 | $ 366 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total | $ 4,232 | $ 4,279 |
Accumulated depreciation and amortization | (2,177) | (2,172) |
Net premises and equipment | 2,055 | 2,107 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 583 | 611 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (Years) | 40 years | |
Total | $ 1,660 | 1,628 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 1,146 | 1,121 |
Furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (Years) | 3 years | |
Furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (Years) | 15 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 733 | 791 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | 52 | 62 |
Capitalized leases on premises and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 58 | $ 66 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Rent Expense and Future Minimum Lease Payments for Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Rent expense applicable to operating leases | $ 249 | $ 250 | $ 223 |
Rental income from owned properties and subleases | 12 | $ 8 | $ 7 |
Future minimum lease payments for operating leases | |||
2,018 | 255 | ||
2,019 | 228 | ||
2,020 | 199 | ||
2,021 | 173 | ||
2,022 | 147 | ||
Thereafter | $ 509 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill impairments | $ 0 |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets - Goodwill Activity by Operating Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 9,638 | $ 8,548 | $ 6,869 |
Acquired goodwill, net | 1,073 | 1,726 | |
American Coastal sale | (49) | ||
Other adjustments | (20) | 17 | 2 |
Goodwill, ending balance | 9,618 | 9,638 | 8,548 |
Community Banking | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 7,032 | 6,140 | 4,634 |
Acquired goodwill, net | 753 | 1,501 | |
American Coastal sale | 0 | ||
Other adjustments | (12) | 139 | 5 |
Goodwill, ending balance | 7,020 | 7,032 | 6,140 |
Residential Mortgage Banking | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 416 | 369 | 326 |
Acquired goodwill, net | 39 | 43 | |
American Coastal sale | 0 | ||
Other adjustments | 6 | 8 | 0 |
Goodwill, ending balance | 422 | 416 | 369 |
Dealer Financial Services | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 111 | 111 | 111 |
Acquired goodwill, net | 0 | 0 | |
American Coastal sale | 0 | ||
Other adjustments | 0 | 0 | 0 |
Goodwill, ending balance | 111 | 111 | 111 |
Specialized Lending | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 113 | 243 | 88 |
Acquired goodwill, net | 2 | 155 | |
American Coastal sale | 0 | ||
Other adjustments | (9) | (132) | 0 |
Goodwill, ending balance | 104 | 113 | 243 |
Insurance Holdings | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 1,752 | 1,482 | 1,518 |
Acquired goodwill, net | 270 | 16 | |
American Coastal sale | (49) | ||
Other adjustments | (5) | 0 | (3) |
Goodwill, ending balance | 1,747 | 1,752 | 1,482 |
Financial Services | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 214 | 203 | 192 |
Acquired goodwill, net | 9 | 11 | |
American Coastal sale | 0 | ||
Other adjustments | 0 | 2 | 0 |
Goodwill, ending balance | 214 | $ 214 | $ 203 |
CB-Retail | |||
Goodwill [Roll Forward] | |||
Goodwill, ending balance | 3,724 | ||
CB-Commercial | |||
Goodwill [Roll Forward] | |||
Goodwill, ending balance | 3,862 | ||
FS&CF | |||
Goodwill [Roll Forward] | |||
Goodwill, ending balance | 259 | ||
IH&PF | |||
Goodwill [Roll Forward] | |||
Goodwill, ending balance | $ 1,773 |
Goodwill and Other Intangible67
Goodwill and Other Intangible Assets - Identifiable Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,816 | $ 2,074 |
Accumulated Amortization | (1,105) | (1,220) |
Net Carrying Amount | $ 711 | 854 |
CDI | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Wtd. Avg. Remaining Life | 7 years | |
Gross Carrying Amount | $ 605 | 825 |
Accumulated Amortization | (409) | (565) |
Net Carrying Amount | $ 196 | 260 |
Other, primarily customer relationship intangibles | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Wtd. Avg. Remaining Life | 12 years | |
Gross Carrying Amount | $ 1,211 | 1,249 |
Accumulated Amortization | (696) | (655) |
Net Carrying Amount | $ 515 | $ 594 |
Goodwill and Other Intangible68
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense of Identifiable Intangible Assets (Details) $ in Millions | Dec. 31, 2017USD ($) |
Estimated amortization expense of identifiable intangibles | |
2,018 | $ 122 |
2,019 | 104 |
2,020 | 87 |
2,021 | 74 |
2,022 | $ 64 |
Loan Servicing - Narrative (Det
Loan Servicing - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Transfers and Servicing [Abstract] | |
Payment for settlement of FHA matter | $ 83 |
Separate recoveries on FHA matter | 71 |
Net benefit related to FHA matter | 73 |
Release of mortgage repurchase reserves | $ 31 |
Loan Servicing - Summary of Res
Loan Servicing - Summary of Residential Mortgage Banking Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |||
UPB of residential mortgage and home equity loan servicing portfolio | $ 118,424 | $ 121,639 | $ 122,169 |
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate | 89,124 | 90,325 | 91,132 |
Mortgage loans sold with recourse | 490 | 578 | 702 |
Maximum recourse exposure from mortgage loans sold with recourse liability | 251 | 282 | 326 |
Indemnification, recourse and repurchase reserves | 37 | 40 | 79 |
UPB of residential mortgage loans sold | 12,423 | 15,675 | 14,764 |
Pre-tax gains recognized on mortgage loans sold and held for sale | 153 | 139 | 148 |
Servicing fees recognized from mortgage loans serviced for others | $ 261 | $ 268 | $ 273 |
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others | 0.28% | 0.28% | 0.29% |
Weighted average interest rate on mortgage loans serviced for others | 4.00% | 4.03% | 4.12% |
Loan Servicing - Rollforward of
Loan Servicing - Rollforward of Residential MSRs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Carrying value, beginning of year | $ 1,052 | ||
Change in fair value due to changes in valuation inputs or assumptions: | |||
Carrying value, end of year | 1,056 | $ 1,052 | |
Residential MSRs | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Carrying value, beginning of year | 915 | 880 | $ 844 |
Additions | 123 | 146 | 156 |
Change in fair value due to changes in valuation inputs or assumptions: | |||
Prepayment speeds | (42) | 13 | 91 |
Weighted average OAS | 46 | 10 | (52) |
Servicing costs | 9 | 2 | (25) |
Realization of expected net servicing cash flows, passage of time and other | (137) | (136) | (134) |
Carrying value, end of year | 914 | 915 | 880 |
Gains (losses) on derivative financial instruments used to mitigate the income statement effect of changes in fair value | $ 0 | $ 32 | $ 32 |
Loan Servicing - Residential MS
Loan Servicing - Residential MSRs Sensitivity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 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 (in years) | 6 years 4 months 24 days | 7 years |
Residential MSRs | Min | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 7.10% | 7.50% |
OAS | 8.40% | 9.80% |
Residential MSRs | Max | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 10.10% | 8.40% |
OAS | 8.90% | 10.20% |
Residential MSRs | Weighted Average | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 9.10% | 8.10% |
Effect on fair value of a 10% increase | $ (31) | $ (28) |
Effect on fair value of a 20% increase | $ (60) | $ (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 | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 99.10% | 99.10% |
Adjustable Rate Residential Mortgage | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 0.90% | 0.90% |
Loan Servicing - Summary of Com
Loan Servicing - Summary of Commercial Mortgage Banking Activities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | ||
UPB of CRE mortgages serviced for others | $ 28,441 | $ 29,333 |
CRE mortgages serviced for others covered by recourse provisions | 4,153 | 4,240 |
Maximum recourse exposure from CRE mortgages sold with recourse liability | 1,218 | 1,272 |
Recorded reserves related to recourse exposure | 5 | 7 |
Originated CRE mortgages during the year | 6,753 | 7,145 |
Servicing Assets at Fair Value [Line Items] | ||
MSRs at fair value | 1,056 | 1,052 |
CRE | ||
Servicing Assets at Fair Value [Line Items] | ||
MSRs at fair value | $ 142 | $ 137 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 53,767 | $ 50,697 |
Interest checking | 27,677 | 30,263 |
Money market and savings | 62,757 | 64,883 |
Time deposits | 13,170 | 14,391 |
Total deposits | 157,371 | 160,234 |
Time deposits greater than $250,000 | $ 2,622 | $ 2,179 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Extinguishment of Debt [Line Items] | |||
Loss (gain) on early extinguishment of debt | $ 392 | $ (1) | $ 172 |
FHLB Advances | |||
Extinguishment of Debt [Line Items] | |||
Extinguishment of long term debt | $ 2,900 | 931 | |
Loss (gain) on early extinguishment of debt | $ 392 | $ 172 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt, Interest Rates and Maturity Dates (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 23,648 | $ 21,965 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Other long-term debt | 205 | 152 |
BB&T Corporation: | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 12,042 | 10,836 |
BB&T Corporation: | Senior Notes | Fixed rate | ||
Debt Instrument [Line Items] | ||
Effective Rate | 2.89% | |
Long-term debt | $ 8,562 | 7,600 |
BB&T Corporation: | Senior Notes | Fixed rate | Min | ||
Debt Instrument [Line Items] | ||
Stated Rate | 2.05% | |
BB&T Corporation: | Senior Notes | Fixed rate | Max | ||
Debt Instrument [Line Items] | ||
Stated Rate | 6.85% | |
BB&T Corporation: | Senior Notes | Floating rate | ||
Debt Instrument [Line Items] | ||
Effective Rate | 2.13% | |
Long-term debt | $ 2,547 | 1,898 |
BB&T Corporation: | Senior Notes | Floating rate | Min | ||
Debt Instrument [Line Items] | ||
Stated Rate | 1.60% | |
BB&T Corporation: | Senior Notes | Floating rate | Max | ||
Debt Instrument [Line Items] | ||
Stated Rate | 2.45% | |
BB&T Corporation: | Subordinated Notes | Fixed rate | ||
Debt Instrument [Line Items] | ||
Effective Rate | 1.98% | |
Long-term debt | $ 933 | 1,338 |
BB&T Corporation: | Subordinated Notes | Fixed rate | Min | ||
Debt Instrument [Line Items] | ||
Stated Rate | 3.95% | |
BB&T Corporation: | Subordinated Notes | Fixed rate | Max | ||
Debt Instrument [Line Items] | ||
Stated Rate | 5.25% | |
Branch Bank | Senior Notes | Fixed rate | ||
Debt Instrument [Line Items] | ||
Effective Rate | 2.56% | |
Long-term debt | $ 5,653 | 4,209 |
Branch Bank | Senior Notes | Fixed rate | Min | ||
Debt Instrument [Line Items] | ||
Stated Rate | 1.45% | |
Branch Bank | Senior Notes | Fixed rate | Max | ||
Debt Instrument [Line Items] | ||
Stated Rate | 2.85% | |
Branch Bank | Senior Notes | Floating rate | ||
Debt Instrument [Line Items] | ||
Effective Rate | 2.10% | |
Long-term debt | $ 1,149 | 250 |
Branch Bank | Senior Notes | Floating rate | Min | ||
Debt Instrument [Line Items] | ||
Stated Rate | 1.74% | |
Branch Bank | Senior Notes | Floating rate | Max | ||
Debt Instrument [Line Items] | ||
Stated Rate | 1.91% | |
Branch Bank | Subordinated Notes | Fixed rate | ||
Debt Instrument [Line Items] | ||
Effective Rate | 3.58% | |
Long-term debt | $ 2,119 | 2,138 |
Branch Bank | Subordinated Notes | Fixed rate | Min | ||
Debt Instrument [Line Items] | ||
Stated Rate | 3.63% | |
Branch Bank | Subordinated Notes | Fixed rate | Max | ||
Debt Instrument [Line Items] | ||
Stated Rate | 3.80% | |
Branch Bank | Subordinated Notes | Floating rate | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | 262 |
Branch Bank | FHLB Advances | ||
Debt Instrument [Line Items] | ||
Effective Rate | 1.49% | |
Long-term debt | $ 2,480 | $ 4,118 |
Weighted average maturity of FHLB advances | 3 years 9 months 18 days | |
Branch Bank | FHLB Advances | Min | ||
Debt Instrument [Line Items] | ||
Stated Rate | 0.00% | |
Branch Bank | FHLB Advances | Max | ||
Debt Instrument [Line Items] | ||
Stated Rate | 5.50% |
Long-Term Debt - Schedule of Fu
Long-Term Debt - Schedule of Future Maturities of Long-Term Debt (Details) $ in Millions | Dec. 31, 2017USD ($) |
Future debt maturities | |
2,018 | $ 2,446 |
2,019 | 4,837 |
2,020 | 6,008 |
2,021 | 3,256 |
2,022 | 2,851 |
Thereafter | $ 4,161 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | ||||
Preferred stock, redemption period | 5 years | |||
Repurchase Plan | ||||
Class of Stock [Line Items] | ||||
Repurchase of common stock | $ 1,600 | $ 320 | ||
Number of shares repurchased | 910,000 | 3,400,000 | 35,500,000 | 8,400,000 |
Accelerated share repurchase program | $ 200 | |||
Common stock, remaining dollar amount authorized for repurchase | $ 640 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Preferred Stock (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | ||
Liquidation Amount | $ 3,140 | |
Carrying Amount | 3,053 | $ 3,053 |
Series D | ||
Class of Stock [Line Items] | ||
Liquidation Amount | 575 | |
Carrying Amount | $ 559 | |
Dividend Rate | 5.85% | |
Series E | ||
Class of Stock [Line Items] | ||
Liquidation Amount | $ 1,150 | |
Carrying Amount | $ 1,120 | |
Dividend Rate | 5.625% | |
Series F | ||
Class of Stock [Line Items] | ||
Liquidation Amount | $ 450 | |
Carrying Amount | $ 437 | |
Dividend Rate | 5.20% | |
Series G | ||
Class of Stock [Line Items] | ||
Liquidation Amount | $ 500 | |
Carrying Amount | $ 487 | |
Dividend Rate | 5.20% | |
Series H | ||
Class of Stock [Line Items] | ||
Liquidation Amount | $ 465 | |
Carrying Amount | $ 450 | |
Dividend Rate | 5.625% |
Shareholders' Equity - Summar80
Shareholders' Equity - Summary of Equity Based Compensation Plans (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for future grants (in thousands) | 19,408 |
Option term (in years) | 10 years |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 5 years |
Shareholders' Equity - Summar81
Shareholders' Equity - Summary of Compensation Expense Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Equity-based compensation expense | $ 132 | $ 115 | $ 106 |
Income tax benefit from equity-based compensation expense | 34 | 43 | 40 |
Intrinsic value of options exercised and RSUs that vested during the year | 261 | 159 | 170 |
Grant date fair value of equity-based awards that vested during the year | 116 | 98 | 115 |
Unrecognized compensation cost related to equity-based awards | $ 132 | $ 109 | $ 103 |
Weighted-average life over which compensation cost is expected to be recognized, years | 2 years 4 months 24 days | 2 years 3 months 18 days | 2 years 2 months 12 days |
Shareholders' Equity - Rollforw
Shareholders' Equity - Rollforward of RSUs, PSUs amd Restricted Shares (Details) - Restricted Shares/Units shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Restricted Shares/Units | |
Nonvested at beginning of period (in shares) | shares | 13,516 |
Granted (in shares) | shares | 3,924 |
Vested (in shares) | shares | (4,142) |
Forfeited (in shares) | shares | (350) |
Nonvested at end of period (in shares) | shares | 12,948 |
Expected to vest at end of period (in shares) | shares | 11,946 |
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 | 27.75 |
Forfeited (in usd per share) | $ / shares | 33.29 |
Nonvested at end of period (in usd per share) | $ / shares | 33.90 |
Expected to vest at end of period (in usd per share) | $ / shares | $ 33.90 |
AOCI (Details)
AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Amounts reclassified from AOCI: | ||||
Total OCI, net of tax | $ (88) | $ (104) | $ (277) | |
Unrecognized Net Pension and Postretirement Costs | ||||
AOCI, net of Tax [Roll Forward] | ||||
Beginning balance | (764) | (723) | (626) | |
OCI before reclassifications, net of tax | (129) | (91) | (139) | |
Amounts reclassified from AOCI: | ||||
Total OCI, net of tax | (84) | (41) | (97) | |
Ending balance | (1,004) | (764) | (723) | |
Unrecognized Net Pension and Postretirement Costs | Amounts reclassified from AOCI | ||||
Amounts reclassified from AOCI: | ||||
Before tax | [1] | 72 | 80 | 67 |
Tax effect | 27 | 30 | 25 | |
Amounts reclassified, net of tax | 45 | 50 | 42 | |
Reclassification of certain tax effects | (156) | |||
Unrealized Net Gains (Losses) on Cash Flow Hedges | ||||
AOCI, net of Tax [Roll Forward] | ||||
Beginning balance | (92) | (83) | (54) | |
OCI before reclassifications, net of tax | 7 | (16) | (81) | |
Amounts reclassified from AOCI: | ||||
Total OCI, net of tax | 18 | (9) | (29) | |
Ending balance | (92) | (92) | (83) | |
Unrealized Net Gains (Losses) on Cash Flow Hedges | Amounts reclassified from AOCI | ||||
Amounts reclassified from AOCI: | ||||
Before tax | [1] | 15 | 11 | 83 |
Tax effect | 4 | 4 | 31 | |
Amounts reclassified, net of tax | 11 | 7 | 52 | |
Reclassification of certain tax effects | (18) | |||
Unrealized Net Gains (Losses) on AFS Securities | ||||
AOCI, net of Tax [Roll Forward] | ||||
Beginning balance | (259) | (34) | 152 | |
OCI before reclassifications, net of tax | (23) | (201) | (206) | |
Amounts reclassified from AOCI: | ||||
Total OCI, net of tax | (27) | (225) | (186) | |
Ending balance | (356) | (259) | (34) | |
Unrealized Net Gains (Losses) on AFS Securities | Amounts reclassified from AOCI | ||||
Amounts reclassified from AOCI: | ||||
Before tax | [1] | (7) | (39) | 32 |
Tax effect | (3) | (15) | 12 | |
Amounts reclassified, net of tax | (4) | (24) | 20 | |
Reclassification of certain tax effects | (70) | |||
FDIC's Share of Unrealized (Gains) Losses on AFS Securities | ||||
AOCI, net of Tax [Roll Forward] | ||||
Beginning balance | 0 | (169) | (207) | |
OCI before reclassifications, net of tax | 0 | 148 | 19 | |
Amounts reclassified from AOCI: | ||||
Total OCI, net of tax | 0 | 169 | 38 | |
Ending balance | 0 | 0 | (169) | |
FDIC's Share of Unrealized (Gains) Losses on AFS Securities | Amounts reclassified from AOCI | ||||
Amounts reclassified from AOCI: | ||||
Before tax | [1] | 0 | 33 | 31 |
Tax effect | 0 | 12 | 12 | |
Amounts reclassified, net of tax | 0 | 21 | 19 | |
Reclassification of certain tax effects | 0 | |||
Other, net | ||||
AOCI, net of Tax [Roll Forward] | ||||
Beginning balance | (17) | (19) | (16) | |
OCI before reclassifications, net of tax | 5 | 1 | (9) | |
Amounts reclassified from AOCI: | ||||
Total OCI, net of tax | 5 | 2 | (3) | |
Ending balance | (15) | (17) | (19) | |
Other, net | Amounts reclassified from AOCI | ||||
Amounts reclassified from AOCI: | ||||
Before tax | [1] | 0 | 1 | 9 |
Tax effect | 0 | 0 | 3 | |
Amounts reclassified, net of tax | 0 | 1 | 6 | |
Reclassification of certain tax effects | (3) | |||
Total | ||||
AOCI, net of Tax [Roll Forward] | ||||
Beginning balance | (1,132) | (1,028) | (751) | |
OCI before reclassifications, net of tax | (140) | (159) | (416) | |
Amounts reclassified from AOCI: | ||||
Before tax | [1] | 80 | 86 | 222 |
Tax effect | 28 | 31 | 83 | |
Amounts reclassified, net of tax | 52 | 55 | 139 | |
Total OCI, net of tax | (88) | (104) | (277) | |
Reclassification of certain tax effects | (247) | |||
Ending balance | $ (1,467) | $ (1,132) | $ (1,028) | |
[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 or 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) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Adjustment to income tax provision | $ (107) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current expense: | |||
Federal | $ 539 | $ 959 | $ 585 |
State | 80 | 97 | 99 |
Total current expense | 619 | 1,056 | 684 |
Deferred expense: | |||
Federal | 253 | (14) | 99 |
State | 39 | 16 | 11 |
Total deferred expense | 292 | 2 | 110 |
Provision for income taxes | $ 911 | $ 1,058 | $ 794 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation Between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Income Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes at statutory rate of 35% | $ 1,164 | $ 1,225 | $ 1,021 |
Increase (decrease) in provision for income taxes as a result of: | |||
State income taxes, net of federal tax benefit | 77 | 73 | 72 |
Affordable housing projects proportional amortization | 236 | 205 | 181 |
Affordable housing projects tax credits and other tax benefits | (319) | (279) | (249) |
Tax exempt income | (139) | (151) | (129) |
Federal tax reform impact | (43) | 0 | 0 |
Excess tax benefits for equity-based compensation | (52) | 0 | 0 |
Adjustments for uncertain tax positions | 0 | (6) | (107) |
Other, net | (13) | (9) | 5 |
Provision for income taxes | $ 911 | $ 1,058 | $ 794 |
Effective income tax rate | 27.40% | 30.20% | 27.20% |
Income Taxes - Schedule of Temp
Income Taxes - Schedule of Temporary Tax Differences That Gave Rise to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
ALLL | $ 359 | $ 564 |
Postretirement plans | 311 | 451 |
Net unrealized loss on AFS securities | 112 | 155 |
Equity-based compensation | 66 | 124 |
Reserves and expense accruals | 114 | 238 |
Partnerships | 70 | 116 |
Other | 160 | 317 |
Total deferred tax assets | 1,192 | 1,965 |
Deferred tax liabilities: | ||
Prepaid pension plan expense | 436 | 558 |
MSRs | 234 | 358 |
Lease financing | 366 | 587 |
Loan fees and expenses | 114 | 103 |
Identifiable intangible assets | 163 | 224 |
Other | 31 | 45 |
Total deferred tax liabilities | 1,344 | 1,875 |
Net deferred tax asset (liability) | $ (152) | |
Net deferred tax asset (liability) | $ 90 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Change in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes In Unrecognized Tax Benefits | |||
Beginning balance of unrecognized tax benefits | $ 1 | $ 426 | $ 503 |
Additions based on tax positions related to current year | 0 | 0 | 0 |
Additions (reductions) for tax positions of prior years | 0 | (5) | (76) |
Settlements | 0 | (420) | (1) |
Lapse of statute of limitations | 0 | 0 | (1) |
Unrecognized deferred tax benefits from acquisitions | 0 | 0 | 1 |
Ending balance of unrecognized tax benefits | 1 | 1 | 426 |
Federal | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits that would have impacted effective rate if recognized | 0 | 0 | 422 |
State | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits that would have impacted effective rate if recognized | $ 1 | $ 1 | $ 3 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018USD ($) | Dec. 31, 2018 | Dec. 31, 2017USD ($)year | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined benefit plan, number of highest consecutive years of earnings | year | 5 | ||||
Defined benefit plan, final years of employment subject to earnings test | 10 years | ||||
Net asset values | $ 6,152 | $ 4,824 | |||
Defined contribution plan, employee contribution percentage, minimum | 1.00% | ||||
Defined contribution plan, employee contribution percentage, maximum | 50.00% | ||||
Defined contribution plan, minimum age of employees covered | 21 years | ||||
Defined contribution plan, minimum years of service of employees covered | 1 year | ||||
Defined contribution plan, employer matching contribution, percentage of employee compensation, maximum | 6.00% | ||||
Defined contribution plan, employer contribution expense | $ 133 | 129 | $ 114 | ||
U.S. Equity Securities | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net asset values | 2,503 | 1,892 | |||
International Equity Securities | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net asset values | 1,130 | 839 | |||
Fixed Income Securities | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net asset values | $ 2,452 | $ 1,914 | |||
Forecast | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Weighted average expected long-term rate of return on plan assets | 7.00% | ||||
Qualified Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Weighted average expected long-term rate of return on plan assets | 7.00% | 7.00% | 7.50% | ||
Net asset values | $ 6,309 | $ 5,044 | $ 4,369 | ||
Qualified Plan | Alternative Investments | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net asset values | $ 105 | $ 199 | |||
Qualified Plan | Subsequent Event | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Discretionary contributions made to the qualified pension plan | $ 144 | ||||
Min | Qualified Plan | U.S. Equity Securities | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30.00% | ||||
Min | Qualified Plan | International Equity Securities | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 11.00% | ||||
Min | Qualified Plan | Fixed Income Securities | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35.00% | ||||
Min | Qualified Plan | Alternative Investments | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | ||||
Max | Qualified Plan | BB&T Corporation: | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 10.00% | ||||
Max | Qualified Plan | U.S. Equity Securities | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50.00% | ||||
Max | Qualified Plan | International Equity Securities | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 18.00% | ||||
Max | Qualified Plan | Fixed Income Securities | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 53.00% | ||||
Max | Qualified Plan | Alternative Investments | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 14.00% |
Benefit Plans - Schedule of Sig
Benefit Plans - Schedule of Significant Actuarial Assumptions Used to Determine Net Periodic Pension Costs (Details) - Qualified Plan | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumed discount rate | 4.43% | 4.68% | 4.27% |
Weighted average expected long-term rate of return on plan assets | 7.00% | 7.00% | 7.50% |
Assumed long-term rate of annual compensation increases | 4.50% | 4.50% | 4.50% |
Benefit Plans - Summary of the
Benefit Plans - Summary of the Components of Net Periodic Benefit Cost Recognized for Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Periodic Pension Cost: | |||
Service cost | $ 200 | $ 186 | $ 176 |
Interest cost | 192 | 181 | 157 |
Estimated return on plan assets | (372) | (326) | (327) |
Net amortization and other | 75 | 80 | 67 |
Net periodic benefit cost | 95 | 121 | 73 |
Pre-Tax Amounts Recognized in OCI: | |||
Prior service credit (cost) | 30 | 0 | 0 |
Net actuarial loss (gain) | 137 | 138 | 230 |
Net amortization | (75) | (80) | (67) |
Net amount recognized in OCI | 92 | 58 | 163 |
Total net periodic pension costs (income) recognized in total comprehensive income, pre-tax | $ 187 | $ 179 | $ 236 |
Benefit Plans - Schedule of S92
Benefit Plans - Schedule of Significant Actuarial Assumptions Used to Determine Benefit Obligations (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Retirement Benefits [Abstract] | ||
Weighted average assumed discount rate | 3.79% | 4.43% |
Assumed rate of annual compensation increases | 4.50% | 4.50% |
Benefit Plans - Changes in Proj
Benefit Plans - Changes in Projected Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | $ 200 | $ 186 | $ 176 |
Interest cost | 192 | 181 | 157 |
Qualified Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of year | 3,939 | 3,473 | |
Service cost | 188 | 174 | |
Interest cost | 173 | 163 | |
Actuarial (gain) loss | 576 | 152 | |
Benefits paid | (102) | (94) | |
Plan amendments | 165 | 0 | |
Acquisitions | 0 | 71 | |
Projected benefit obligation, end of year | 4,939 | 3,939 | 3,473 |
Accumulated benefit obligation, end of year | 4,198 | 3,403 | |
Nonqualified Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of year | 426 | 392 | |
Service cost | 12 | 12 | |
Interest cost | 19 | 18 | |
Actuarial (gain) loss | 77 | 15 | |
Benefits paid | (12) | (11) | |
Plan amendments | (135) | 0 | |
Acquisitions | 0 | 0 | |
Projected benefit obligation, end of year | 387 | 426 | $ 392 |
Accumulated benefit obligation, end of year | $ 288 | $ 363 |
Benefit Plans - Changes in Fair
Benefit Plans - Changes in Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year | $ 4,824 | |
Fair value of plan assets, end of year | 6,152 | $ 4,824 |
Qualified Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year | 5,044 | 4,369 |
Actual return on plan assets | 888 | 356 |
Employer contributions | 479 | 360 |
Benefits paid | (102) | (94) |
Acquisitions | 0 | 53 |
Fair value of plan assets, end of year | 6,309 | 5,044 |
Funded status at end of year | 1,370 | 1,105 |
Nonqualified Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 13 | 11 |
Benefits paid | (13) | (11) |
Acquisitions | 0 | 0 |
Fair value of plan assets, end of year | 0 | 0 |
Funded status at end of year | $ (387) | $ (426) |
Benefit Plans - Schedule of Pre
Benefit Plans - Schedule of Pre-tax Amounts Recognized in AOCI (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Qualified Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prior service credit (cost) | $ (165) | $ 0 |
Net actuarial loss | (1,092) | (1,095) |
Net amount recognized | (1,257) | (1,095) |
Nonqualified Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prior service credit (cost) | 134 | (1) |
Net actuarial loss | (198) | (135) |
Net amount recognized | $ (64) | $ (136) |
Benefit Plans - Schedule of Amo
Benefit Plans - Schedule of Amounts Expected to be Amortized from AOCI into Net Periodic Pension Cost During Next Fiscal Year (Details) $ in Millions | Dec. 31, 2017USD ($) |
Qualified Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ (49) |
Prior service credit (cost) | (25) |
Net amount expected to be amortized in 2018 | (74) |
Nonqualified Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | (22) |
Prior service credit (cost) | 19 |
Net amount expected to be amortized in 2018 | $ (3) |
Benefit Plans - Schedule of Est
Benefit Plans - Schedule of Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Qualified Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 114 |
2,019 | 125 |
2,020 | 137 |
2,021 | 150 |
2,022 | 164 |
2023-2027 | 1,042 |
Nonqualified Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 15 |
2,019 | 15 |
2,020 | 16 |
2,021 | 16 |
2,022 | 17 |
2023-2027 | $ 101 |
Benefit Plans - Schedule of Fai
Benefit Plans - Schedule of Fair Value of Pension Plan Assets by Three Level Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | $ 6,152 | $ 4,824 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 1,605 | 1,372 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 4,547 | 3,452 |
Cash and cash-equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 67 | 179 |
Cash and cash-equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 67 | 179 |
Cash and cash-equivalents | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 0 | 0 |
U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 2,503 | 1,892 |
U.S. equity securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 1,333 | 1,018 |
U.S. equity securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 1,170 | 874 |
International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 1,130 | 839 |
International equity securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 195 | 165 |
International equity securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 935 | 674 |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 2,452 | 1,914 |
Fixed income securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 10 | 10 |
Fixed income securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | $ 2,442 | $ 1,904 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit | $ 2,466 | $ 2,786 |
Carrying amount of the liability for letters of credit | 21 | 27 |
Investments in affordable housing and historic building rehabilitation projects: | ||
Carrying amount | 1,948 | 1,719 |
Amount of future funding commitments included in carrying amount | 928 | 738 |
Lending exposure | 561 | 495 |
Tax credits subject to recapture | 471 | 413 |
Private equity investments | 471 | 417 |
Future funding commitments to private equity investments | $ 143 | $ 199 |
Commitments and Contingencie100
Commitments and Contingencies - Schedule of Pledged Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Pledged securities | $ 14,636 | $ 15,549 |
Pledged loans | $ 74,718 | $ 75,015 |
Regulatory Requirements and 101
Regulatory Requirements and Other Restrictions - Regulatory Requirements (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
BB&T Corporation: | ||
CET1 Capital: | ||
Actual Capital, Ratio | 10.20% | 10.20% |
Actual Capital, Amount | $ 18,051 | $ 18,050 |
Capital Requirements, Minimum | 7,975 | 7,926 |
Capital Requirements, Well-Capitalized | $ 11,519 | $ 11,449 |
Tier 1 Capital: | ||
Actual Capital, Ratio | 11.90% | 12.00% |
Actual Capital, Amount | $ 21,102 | $ 21,102 |
Capital Requirements, Minimum | 10,633 | 10,568 |
Capital Requirements, Well-Capitalized | $ 14,177 | $ 14,091 |
Total Capital: | ||
Actual Capital, Ratio | 13.90% | 14.10% |
Actual Capital, Amount | $ 24,653 | $ 24,872 |
Capital Requirements, Minimum | 14,177 | 14,091 |
Capital Requirements, Well-Capitalized | $ 17,722 | $ 17,614 |
Leverage Capital: | ||
Actual Capital, Ratio | 9.90% | 10.00% |
Actual Capital, Amount | $ 21,102 | $ 21,102 |
Capital Requirements, Minimum | 8,567 | 8,460 |
Capital Requirements, Well-Capitalized | $ 10,708 | $ 10,576 |
Branch Bank | ||
CET1 Capital: | ||
Actual Capital, Ratio | 11.30% | 11.50% |
Actual Capital, Amount | $ 19,480 | $ 19,839 |
Capital Requirements, Minimum | 7,752 | 7,730 |
Capital Requirements, Well-Capitalized | $ 11,197 | $ 11,166 |
Tier 1 Capital: | ||
Actual Capital, Ratio | 11.30% | 11.50% |
Actual Capital, Amount | $ 19,480 | $ 19,839 |
Capital Requirements, Minimum | 10,336 | 10,307 |
Capital Requirements, Well-Capitalized | $ 13,781 | $ 13,743 |
Total Capital: | ||
Actual Capital, Ratio | 13.30% | 13.60% |
Actual Capital, Amount | $ 22,915 | $ 23,289 |
Capital Requirements, Minimum | 13,781 | 13,743 |
Capital Requirements, Well-Capitalized | $ 17,226 | $ 17,179 |
Leverage Capital: | ||
Actual Capital, Ratio | 9.40% | 9.60% |
Actual Capital, Amount | $ 19,480 | $ 19,839 |
Capital Requirements, Minimum | 8,315 | 8,249 |
Capital Requirements, Well-Capitalized | $ 10,394 | $ 10,311 |
Parent Company Financial Sta102
Parent Company Financial Statements - Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and due from banks | $ 2,243 | $ 1,897 | ||
Interest-bearing deposits with banks | 343 | 1,895 | ||
AFS securities at fair value | 24,547 | 26,926 | ||
HTM securities at amortized cost | 23,027 | 16,680 | ||
Other assets | 14,235 | 14,046 | ||
Total assets | 221,642 | 219,276 | $ 209,947 | |
Liabilities and Shareholders' Equity: | ||||
Short-term borrowings | 4,938 | 1,406 | ||
Long-term debt | 23,648 | 21,965 | ||
Accounts payable and other liabilities | 5,990 | 5,745 | ||
Total liabilities | 191,947 | 189,350 | ||
Total shareholders' equity | 29,695 | 29,926 | $ 27,340 | $ 24,377 |
Total liabilities and shareholders’ equity | 221,642 | 219,276 | ||
Parent Company | ||||
Assets | ||||
Cash and due from banks | 13 | 21 | ||
Interest-bearing deposits with banks | 6,365 | 7,094 | ||
AFS securities at fair value | 133 | 134 | ||
HTM securities at amortized cost | 1 | 1 | ||
Advances to / receivables from subsidiaries | 6,118 | 3,831 | ||
Investment in subsidiaries | 29,219 | 29,723 | ||
Other assets | 66 | 131 | ||
Total assets | 41,915 | 40,935 | ||
Liabilities and Shareholders' Equity: | ||||
Short-term borrowings | 7 | 46 | ||
Long-term debt | 12,042 | 10,836 | ||
Accounts payable and other liabilities | 171 | 127 | ||
Total liabilities | 12,220 | 11,009 | ||
Total shareholders' equity | 29,695 | 29,926 | ||
Total liabilities and shareholders’ equity | 41,915 | 40,935 | ||
Parent Company | Banking | ||||
Assets | ||||
Advances to / receivables from subsidiaries | 2,454 | 850 | ||
Investment in subsidiaries | 27,846 | 28,444 | ||
Parent Company | Nonbank | ||||
Assets | ||||
Advances to / receivables from subsidiaries | 3,664 | 2,981 | ||
Investment in subsidiaries | $ 1,373 | $ 1,279 |
Parent Company Financial Sta103
Parent Company Financial Statements - Parent Company Condensed Income and Comprehensive Income Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income: | |||
Interest and other income from subsidiaries | $ 52 | $ 52 | $ 39 |
Other income | 467 | 362 | 326 |
Expenses: | |||
Interest expense | 839 | 745 | 735 |
Other expenses | 7,444 | 6,721 | 6,266 |
Income tax benefit | (911) | (1,058) | (794) |
Net income | 2,415 | 2,442 | 2,123 |
Total OCI | (88) | (104) | (277) |
Total comprehensive income | 2,327 | 2,338 | 1,846 |
Parent Company | |||
Income: | |||
Dividends from subsidiaries | 1,990 | 1,356 | 2,011 |
Interest and other income from subsidiaries | 112 | 73 | 64 |
Other income | 2 | 3 | 3 |
Total income | 2,104 | 1,432 | 2,078 |
Expenses: | |||
Interest expense | 227 | 160 | 165 |
Other expenses | 83 | 56 | 103 |
Total expenses | 310 | 216 | 268 |
Income before income taxes and equity in undistributed earnings of subsidiaries | 1,794 | 1,216 | 1,810 |
Income tax benefit | 63 | 38 | 40 |
Income before equity in undistributed earnings of subsidiaries | 1,857 | 1,254 | 1,850 |
Equity in undistributed earnings of subsidiaries in excess of dividends from subsidiaries | 558 | 1,188 | 273 |
Net income | 2,415 | 2,442 | 2,123 |
Total OCI | (88) | (104) | (277) |
Total comprehensive income | 2,327 | 2,338 | 1,846 |
Parent Company | Banking | |||
Income: | |||
Dividends from subsidiaries | 1,950 | 1,350 | 1,600 |
Parent Company | Nonbank | |||
Income: | |||
Dividends from subsidiaries | $ 40 | $ 6 | $ 411 |
Parent Company Financial Sta104
Parent Company Financial Statements - Parent Company Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operating Activities: | |||
Net Income | $ 2,415 | $ 2,442 | $ 2,123 |
Net change in operating assets and liabilities: | |||
Other, net | (120) | (62) | 128 |
Net cash from operating activities | 4,635 | 3,115 | 3,131 |
Cash Flows From Investing Activities: | |||
Proceeds from maturities, calls and paydowns of AFS securities | 4,800 | 5,888 | 5,064 |
Purchases of AFS securities | (7,397) | (10,033) | (12,698) |
Proceeds from maturities, calls and paydowns of HTM securities | 2,580 | 7,022 | 3,791 |
Net cash from acquisitions and divestitures | 0 | (785) | 1,055 |
Other, net | (31) | 398 | 390 |
Net cash from investing activities | (5,309) | (1,008) | (1,849) |
Cash Flows From Financing Activities: | |||
Net change in short-term borrowings | 3,532 | (3,581) | (982) |
Repurchase of common stock | (1,613) | (520) | 0 |
Net cash from common stock transactions in connection with equity awards | 108 | 218 | 68 |
Net proceeds from preferred stock issued | 0 | 450 | 0 |
Other, net | 15 | 107 | (390) |
Net cash from financing activities | (549) | (1,882) | 104 |
Net Change in Cash and Cash Equivalents | (1,223) | 225 | 1,386 |
Cash and Cash Equivalents at Beginning of Period | 3,936 | 3,711 | 2,325 |
Cash and Cash Equivalents at End of Period | 2,713 | 3,936 | 3,711 |
Parent Company | |||
Cash Flows From Operating Activities: | |||
Net Income | 2,415 | 2,442 | 2,123 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Equity in earnings of subsidiaries in excess of dividends from subsidiaries | (558) | (1,188) | (273) |
Net change in operating assets and liabilities: | |||
Other, net | 0 | (14) | 35 |
Net cash from operating activities | 1,857 | 1,240 | 1,885 |
Cash Flows From Investing Activities: | |||
Proceeds from maturities, calls and paydowns of AFS securities | 29 | 27 | 49 |
Purchases of AFS securities | (29) | (31) | (21) |
Proceeds from maturities, calls and paydowns of HTM securities | 0 | 2 | 27 |
Investment in subsidiaries | 1,100 | (85) | 17 |
Advances to subsidiaries | (6,958) | (7,719) | (7,461) |
Proceeds from repayment of advances to subsidiaries | 4,671 | 6,975 | 6,831 |
Net cash from acquisitions and divestitures | 0 | (254) | (595) |
Other, net | 1 | 0 | 0 |
Net cash from investing activities | (1,186) | (1,085) | (1,153) |
Cash Flows From Financing Activities: | |||
Net change in short-term borrowings | (39) | (60) | 30 |
Net change in long-term debt | 1,319 | 465 | (92) |
Repurchase of common stock | (1,613) | (520) | 0 |
Net cash from common stock transactions in connection with equity awards | 108 | 218 | 68 |
Net proceeds from preferred stock issued | 0 | 450 | 0 |
Cash dividends paid on common and preferred stock | (1,179) | (1,092) | (937) |
Other, net | (4) | 7 | 0 |
Net cash from financing activities | (1,408) | (532) | (931) |
Net Change in Cash and Cash Equivalents | (737) | (377) | (199) |
Cash and Cash Equivalents at Beginning of Period | 7,115 | 7,492 | 7,691 |
Cash and Cash Equivalents at End of Period | $ 6,378 | $ 7,115 | $ 7,492 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Non-agency MBS | Re-REMIC | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Difference between fair value of Re-REMIC non-agency MBS held and the fair value of the underlying securities, percentage | 21.10% |
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 | 14 |
Private Equity Investments | Weighted Average | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unobservable inputs, EBITDA multiples | 9 |
Fair Value Disclosures - Schedu
Fair Value Disclosures - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Trading securities | $ 633 | $ 748 |
AFS securities | 24,547 | 26,926 |
LHFS | 1,099 | 1,716 |
MSRs | 1,056 | 1,052 |
Derivative assets | 443 | 822 |
Private equity investments | 404 | 362 |
Total assets | 28,182 | 31,626 |
Liabilities: | ||
Derivative liabilities | 714 | 1,003 |
Securities sold short | 120 | 137 |
Total liabilities | 834 | 1,140 |
Level 1 | ||
Assets: | ||
Trading securities | 363 | 324 |
AFS securities | 6 | 8 |
LHFS | 0 | 0 |
MSRs | 0 | 0 |
Derivative assets | 0 | 0 |
Private equity investments | 0 | 0 |
Total assets | 369 | 332 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Securities sold short | 0 | 0 |
Level 2 | ||
Assets: | ||
Trading securities | 270 | 424 |
AFS securities | 24,109 | 26,411 |
LHFS | 1,099 | 1,716 |
MSRs | 0 | 0 |
Derivative assets | 437 | 815 |
Private equity investments | 0 | 0 |
Total assets | 25,915 | 29,366 |
Liabilities: | ||
Derivative liabilities | 711 | 983 |
Securities sold short | 120 | 137 |
Total liabilities | 831 | 1,120 |
Level 3 | ||
Assets: | ||
Trading securities | 0 | 0 |
AFS securities | 432 | 507 |
LHFS | 0 | 0 |
MSRs | 1,056 | 1,052 |
Derivative assets | 6 | 7 |
Private equity investments | 404 | 362 |
Total assets | 1,898 | 1,928 |
Liabilities: | ||
Derivative liabilities | 3 | 20 |
Securities sold short | 0 | 0 |
Total liabilities | 3 | 20 |
U.S. Treasury | ||
Assets: | ||
AFS securities | 2,291 | 2,587 |
U.S. Treasury | Level 1 | ||
Assets: | ||
AFS securities | 0 | 0 |
U.S. Treasury | Level 2 | ||
Assets: | ||
AFS securities | 2,291 | 2,587 |
U.S. Treasury | Level 3 | ||
Assets: | ||
AFS securities | 0 | 0 |
GSE | ||
Assets: | ||
AFS securities | 179 | 180 |
GSE | Level 1 | ||
Assets: | ||
AFS securities | 0 | 0 |
GSE | Level 2 | ||
Assets: | ||
AFS securities | 179 | 180 |
GSE | Level 3 | ||
Assets: | ||
AFS securities | 0 | 0 |
Agency MBS | ||
Assets: | ||
AFS securities | 20,101 | 21,264 |
Agency MBS | Level 1 | ||
Assets: | ||
AFS securities | 0 | 0 |
Agency MBS | Level 2 | ||
Assets: | ||
AFS securities | 20,101 | 21,264 |
Agency MBS | Level 3 | ||
Assets: | ||
AFS securities | 0 | 0 |
States and political subdivisions | ||
Assets: | ||
AFS securities | 1,392 | 2,205 |
States and political subdivisions | Level 1 | ||
Assets: | ||
AFS securities | 0 | 0 |
States and political subdivisions | Level 2 | ||
Assets: | ||
AFS securities | 1,392 | 2,205 |
States and political subdivisions | Level 3 | ||
Assets: | ||
AFS securities | 0 | 0 |
Non-agency MBS | ||
Assets: | ||
AFS securities | 576 | 679 |
Non-agency MBS | Level 1 | ||
Assets: | ||
AFS securities | 0 | 0 |
Non-agency MBS | Level 2 | ||
Assets: | ||
AFS securities | 144 | 172 |
Non-agency MBS | Level 3 | ||
Assets: | ||
AFS securities | 432 | 507 |
Other | ||
Assets: | ||
AFS securities | 8 | 11 |
Other | Level 1 | ||
Assets: | ||
AFS securities | 6 | 8 |
Other | Level 2 | ||
Assets: | ||
AFS securities | 2 | 3 |
Other | Level 3 | ||
Assets: | ||
AFS securities | 0 | 0 |
Interest rate contracts | ||
Assets: | ||
Derivative assets | 440 | 814 |
Liabilities: | ||
Derivative liabilities | 708 | 998 |
Interest rate contracts | Level 1 | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Interest rate contracts | Level 2 | ||
Assets: | ||
Derivative assets | 434 | 807 |
Liabilities: | ||
Derivative liabilities | 705 | 978 |
Interest rate contracts | Level 3 | ||
Assets: | ||
Derivative assets | 6 | 7 |
Liabilities: | ||
Derivative liabilities | 3 | 20 |
Foreign exchange contracts | ||
Assets: | ||
Derivative assets | 3 | 8 |
Liabilities: | ||
Derivative liabilities | 6 | 5 |
Foreign exchange contracts | Level 1 | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Foreign exchange contracts | Level 2 | ||
Assets: | ||
Derivative assets | 3 | 8 |
Liabilities: | ||
Derivative liabilities | 6 | 5 |
Foreign exchange contracts | Level 3 | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Disclosures - Roll F
Fair Value Disclosures - Roll Forward of Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Non-agency MBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $ 507 | $ 626 | $ 745 | |
Included in earnings | [1] | 36 | 25 | 23 |
Included in unrealized net holding gains (losses) in OCI | (40) | (45) | (45) | |
Purchases | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Settlements | (71) | (99) | (97) | |
Transfers into Level 3 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | |
Adoption of fair value option for commercial MSRs | 0 | |||
Balance at end of period | 432 | 507 | 626 | |
Change in unrealized gains (losses) included in earnings attributable to asset and liabilities still held at period end | 35 | |||
MSRs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | 1,052 | 880 | 844 | |
Included in earnings | [1] | 48 | 63 | 10 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Issuances | 124 | 146 | 156 | |
Sales | 0 | 0 | 0 | |
Settlements | (168) | (160) | (130) | |
Transfers into Level 3 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | |
Adoption of fair value option for commercial MSRs | 123 | |||
Balance at end of period | 1,056 | 1,052 | 880 | |
Change in unrealized gains (losses) included in earnings attributable to asset and liabilities still held at period end | 48 | |||
Net Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | (13) | 4 | 17 | |
Included in earnings | [1] | 38 | 97 | 81 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 1 | |
Issuances | 43 | 82 | 74 | |
Sales | 0 | 0 | 0 | |
Settlements | (65) | (196) | (169) | |
Transfers into Level 3 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | |
Adoption of fair value option for commercial MSRs | 0 | |||
Balance at end of period | 3 | (13) | 4 | |
Change in unrealized gains (losses) included in earnings attributable to asset and liabilities still held at period end | 3 | |||
Private Equity Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | 362 | 289 | 329 | |
Included in earnings | [1] | 58 | 20 | 49 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | 0 | |
Purchases | 142 | 106 | 81 | |
Issuances | 0 | 0 | 0 | |
Sales | (119) | (4) | (132) | |
Settlements | (26) | (49) | (38) | |
Transfers into Level 3 | 0 | 0 | 0 | |
Transfers out of Level 3 | (13) | 0 | 0 | |
Adoption of fair value option for commercial MSRs | 0 | |||
Balance at end of period | 404 | $ 362 | $ 289 | |
Change in unrealized gains (losses) included in earnings attributable to asset and liabilities still held at period end | $ 12 | |||
[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 - Fair V
Fair Value Disclosures - Fair Value and Unpaid Principal Balance of LHFS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Fair Value | $ 1,099 | $ 1,716 |
Aggregate UPB | 1,084 | 1,736 |
Difference | $ 15 | $ (20) |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 163 | $ 278 |
Valuation Adjustments | (22) | (89) |
Foreclosed Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 32 | 50 |
Valuation Adjustments | $ (255) | $ (221) |
Fair Value Disclosures - Carryi
Fair Value Disclosures - Carrying Amounts and Fair Values of Financial Assets and Liabilities Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets: | ||
HTM securities | $ 23,027 | $ 16,680 |
Loans and leases HFI, net of ALLL | 142,211 | 141,833 |
Financial liabilities: | ||
Deposits | 157,371 | 160,234 |
Long-term debt | 23,648 | 21,965 |
Carrying Amount | ||
Financial assets: | ||
HTM securities | 23,027 | 16,680 |
Loans and leases HFI, net of ALLL | 142,211 | 141,833 |
Financial liabilities: | ||
Deposits | 157,371 | 160,234 |
Long-term debt | 23,648 | 21,965 |
Total Fair Value | ||
Financial assets: | ||
HTM securities | 22,837 | 16,546 |
Loans and leases HFI, net of ALLL | 141,664 | 142,044 |
Financial liabilities: | ||
Deposits | 157,466 | 160,403 |
Long-term debt | 23,885 | 22,423 |
Total Fair Value | Level 2 | ||
Financial assets: | ||
HTM securities | 22,837 | 16,546 |
Loans and leases HFI, net of ALLL | 0 | 0 |
Financial liabilities: | ||
Deposits | 157,466 | 160,403 |
Long-term debt | 23,885 | 22,423 |
Total Fair Value | Level 3 | ||
Financial assets: | ||
HTM securities | 0 | 0 |
Loans and leases HFI, net of ALLL | 141,664 | 142,044 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Long-term debt | $ 0 | $ 0 |
Fair Value Disclosures - Notion
Fair Value Disclosures - Notional or Contractual Amounts and Fair Values of Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments to extend, originate or purchase credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | $ 67,860 | $ 64,395 |
Fair Value | 259 | 250 |
Residential mortgage loans sold with recourse | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | 490 | 578 |
Fair Value | 5 | 7 |
Other loans sold with recourse | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | 4,153 | 4,240 |
Fair Value | 5 | 7 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | 2,466 | 2,786 |
Fair Value | $ 21 | $ 27 |
Derivative Financial Instrum112
Derivative Financial Instruments - Schedule of Derivative Financial Instruments and Related Hedged Items (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedge ineffectiveness | The ineffective portion was immaterial for all periods presented. | |
Notional Amount | $ 75,172 | $ 78,277 |
Fair Value, Gain | 443 | 822 |
Fair Value, Loss | (714) | (1,003) |
Gross amounts not offset in the Consolidated Balance Sheets: Fair Value, Gain | ||
Amounts subject to master netting arrangements not offset due to policy election | (297) | (443) |
Cash collateral (received) posted | (20) | (119) |
Net amount | 126 | 260 |
Gross amounts not offset in the Consolidated Balance Sheets: Fair Value, Loss | ||
Amounts subject to master netting arrangements not offset due to policy election | 297 | 443 |
Cash collateral (received) posted | 344 | 450 |
Net amount | (73) | (110) |
Not designated as hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 46,400 | 55,761 |
Fair Value, Gain | 320 | 616 |
Fair Value, Loss | (344) | (630) |
Cash flow hedges | Interest rate contracts | Pay fixed swaps | 3 mo. LIBOR funding | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 6,500 | 7,050 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | (126) | (187) |
Fair value hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 22,272 | 15,466 |
Fair Value, Gain | 123 | 206 |
Fair Value, Loss | (244) | (186) |
Fair value hedges | Interest rate contracts | Pay fixed swaps | Commercial loans | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 416 | 346 |
Fair Value, Gain | 5 | 4 |
Fair Value, Loss | (1) | (2) |
Fair value hedges | Interest rate contracts | Pay fixed swaps | Municipal securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 231 | 231 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | (76) | (83) |
Fair value hedges | Interest rate contracts | Receive fixed swaps | Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 15,538 | 12,099 |
Fair Value, Gain | 118 | 202 |
Fair Value, Loss | (166) | (100) |
Fair value hedges | Interest rate contracts | Options | Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 6,087 | 2,790 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | (1) | (1) |
Client-related and other risk management | Not designated as hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 27,519 | 28,688 |
Fair Value, Gain | 210 | 319 |
Fair Value, Loss | (228) | (336) |
Client-related and other risk management | Not designated as hedges | Interest rate contracts | Pay fixed swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 10,962 | 10,263 |
Fair Value, Gain | 59 | 43 |
Fair Value, Loss | (155) | (252) |
Client-related and other risk management | Not designated as hedges | Interest rate contracts | Receive fixed swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 10,880 | 9,989 |
Fair Value, Gain | 141 | 235 |
Fair Value, Loss | (61) | (44) |
Client-related and other risk management | Not designated as hedges | Interest rate contracts | Other swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 936 | 1,086 |
Fair Value, Gain | 2 | 2 |
Fair Value, Loss | (2) | (5) |
Client-related and other risk management | Not designated as hedges | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 722 | 709 |
Fair Value, Gain | 2 | 2 |
Fair Value, Loss | (2) | (2) |
Client-related and other risk management | Not designated as hedges | Interest rate contracts | Forward commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 3,549 | 5,972 |
Fair Value, Gain | 3 | 29 |
Fair Value, Loss | (2) | (28) |
Client-related and other risk management | Not designated as hedges | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 470 | 669 |
Fair Value, Gain | 3 | 8 |
Fair Value, Loss | (6) | (5) |
Mortgage banking | Not designated as hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 4,614 | 9,351 |
Fair Value, Gain | 12 | 60 |
Fair Value, Loss | (6) | (35) |
Mortgage banking | Not designated as hedges | Interest rate contracts | Interest rate lock commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,308 | 2,219 |
Fair Value, Gain | 7 | 7 |
Fair Value, Loss | (3) | (20) |
Mortgage banking | Not designated as hedges | Interest rate contracts | When issued securities, forward rate agreements and forward commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 3,124 | 6,683 |
Fair Value, Gain | 4 | 51 |
Fair Value, Loss | (3) | (14) |
Mortgage banking | Not designated as hedges | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 182 | 449 |
Fair Value, Gain | 1 | 2 |
Fair Value, Loss | 0 | (1) |
MSRs | Not designated as hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 14,267 | 17,722 |
Fair Value, Gain | 98 | 237 |
Fair Value, Loss | (110) | (259) |
MSRs | Not designated as hedges | Interest rate contracts | Pay fixed swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 3,418 | 3,768 |
Fair Value, Gain | 32 | 56 |
Fair Value, Loss | (13) | (7) |
MSRs | Not designated as hedges | Interest rate contracts | Receive fixed swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 4,498 | 5,034 |
Fair Value, Gain | 15 | 18 |
Fair Value, Loss | (86) | (236) |
MSRs | Not designated as hedges | Interest rate contracts | Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 4,535 | 5,710 |
Fair Value, Gain | 50 | 160 |
Fair Value, Loss | (11) | (8) |
MSRs | Not designated as hedges | Interest rate contracts | When issued securities, forward rate agreements and forward commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,813 | 3,210 |
Fair Value, Gain | 1 | 3 |
Fair Value, Loss | 0 | (8) |
MSRs | Not designated as hedges | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 3 | 0 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | $ 0 | $ 0 |
Derivative Financial Instrum113
Derivative Financial Instruments - The Effect of Derivative Instruments on the Consolidated Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Not designated as hedges | |||
Not Designated as Hedges: | |||
Pre-tax Gain (Loss) Recognized in Income | $ 39 | $ 102 | $ 87 |
Cash flow hedges | Interest rate contracts | |||
Cash Flow Hedges: | |||
Pre-tax Gain (Loss) Recognized in OCI | 10 | (24) | (130) |
Cash flow hedges | Interest rate contracts | Interest expense | |||
Cash Flow Hedges: | |||
Pre-tax Gain (Loss) Reclassified from AOCI into Income | (15) | (11) | (83) |
Fair value hedges | Interest rate contracts | |||
Fair Value Hedges: | |||
Pre-tax Gain (Loss) Recognized in Income | 129 | 208 | 259 |
Fair value hedges | Interest rate contracts | Interest income | |||
Fair Value Hedges: | |||
Pre-tax Gain (Loss) Recognized in Income | (19) | (18) | (20) |
Fair value hedges | Interest rate contracts | Interest expense | |||
Fair Value Hedges: | |||
Pre-tax Gain (Loss) Recognized in Income | 148 | 226 | 279 |
Client-related and other risk management | Interest rate contracts | Other income | Not designated as hedges | |||
Not Designated as Hedges: | |||
Pre-tax Gain (Loss) Recognized in Income | 50 | 52 | 27 |
Client-related and other risk management | Foreign exchange contracts | Other income | Not designated as hedges | |||
Not Designated as Hedges: | |||
Pre-tax Gain (Loss) Recognized in Income | 1 | 11 | 21 |
Mortgage banking | Interest rate contracts | Mortgage banking income | Not designated as hedges | |||
Not Designated as Hedges: | |||
Pre-tax Gain (Loss) Recognized in Income | (12) | 8 | 7 |
MSRs | Interest rate contracts | Mortgage banking income | Not designated as hedges | |||
Not Designated as Hedges: | |||
Pre-tax Gain (Loss) Recognized in Income | $ 0 | $ 31 | $ 32 |
Derivative Financial Instrum114
Derivative Financial Instruments - Deferred Gains and Losses From Cash Flow and Fair Value Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flow hedges | ||
Cash flow hedges: | ||
Net unrecognized after-tax loss on active hedges recorded in AOCI | $ (96) | $ (118) |
Net unrecognized after-tax gain on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) | 3 | 26 |
Estimated portion of net after-tax loss on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months | $ (25) | $ (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 | ||
Fair value hedges: | ||
Unrecognized pre-tax net gain on terminated hedges (to be recognized as interest primarily through 2019) | $ 129 | $ 169 |
Portion of pre-tax net gain on terminated hedges to be recognized as a change in interest during the next 12 months | $ 49 | $ 56 |
Derivative Financial Instrum115
Derivative Financial Instruments - Schedule of Derivative Instruments Summary of Collateral Positions with Counterparties (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Credit Derivatives [Line Items] | ||
Cash collateral received from dealer counterparties | $ 20 | $ 119 |
Cash collateral posted | 344 | 450 |
Dealer Counterparties | ||
Credit Derivatives [Line Items] | ||
Cash collateral received from dealer counterparties | 21 | 123 |
Derivatives in a net gain position secured by collateral received | 22 | 123 |
Unsecured positions in a net gain with dealer counterparties after collateral postings | 2 | 4 |
Cash collateral posted | 172 | 138 |
Derivatives in a net loss position secured by collateral posted | 171 | 144 |
Additional collateral that would have been posted had BB&T's credit ratings dropped below investment grade | 0 | 8 |
Central Clearing Parties | ||
Credit Derivatives [Line Items] | ||
Cash collateral posted | 177 | 313 |
Derivatives in a net loss position secured by collateral posted | 176 | 318 |
Securities pledged to central clearing parties | $ 91 | $ 119 |
Computation of EPS (Details)
Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Net income available to common shareholders | $ 2,220 | $ 2,259 | $ 1,936 |
Weighted average number of common shares (in shares) | 799,217 | 804,680 | 748,010 |
Effect of dilutive outstanding equity-based awards (in shares) | 11,760 | 10,236 | 9,755 |
Weighted average number of diluted common shares (in shares) | 810,977 | 814,916 | 757,765 |
Basic EPS (in usd per share) | $ 2.78 | $ 2.81 | $ 2.59 |
Diluted EPS (in usd per share) | $ 2.74 | $ 2.77 | $ 2.56 |
Anti-dilutive awards (in shares) | 210 | 5,609 | 8,620 |
Operating Segments - Narrative
Operating Segments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Operating Segments - Reportable
Operating Segments - Reportable Segments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | $ 6,535 | $ 6,321 | $ 5,592 | |
Allocated provision for credit losses | 547 | 572 | 428 | |
Segment net interest income after provision | 5,988 | 5,749 | 5,164 | |
Noninterest income | 4,782 | 4,472 | 4,019 | |
Noninterest expense | 7,444 | 6,721 | 6,266 | |
Income (loss) before income taxes | 3,326 | 3,500 | 2,917 | |
Provision (benefit) for income taxes | 911 | 1,058 | 794 | |
Net income | 2,415 | 2,442 | 2,123 | |
Identifiable assets (period end) | 221,642 | 219,276 | 209,947 | |
CB-Retail | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 3,415 | 3,290 | 3,035 | |
CB-Commercial | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 1,740 | 1,604 | 1,345 | |
FS&CF | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 583 | 511 | 443 | |
IH&PF | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 98 | 86 | 79 | |
OT&C (1) | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | [1] | 699 | 830 | 690 |
Operating Segments | CB-Retail | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 3,564 | 3,405 | 2,916 | |
Allocated provision for credit losses | 501 | 475 | 365 | |
Segment net interest income after provision | 3,063 | 2,930 | 2,551 | |
Noninterest income | 1,404 | 1,354 | 1,342 | |
Noninterest expense | 2,725 | 2,469 | 2,357 | |
Income (loss) before income taxes | 1,742 | 1,815 | 1,536 | |
Provision (benefit) for income taxes | 650 | 686 | 588 | |
Net income | 1,092 | 1,129 | 948 | |
Identifiable assets (period end) | 71,093 | 74,642 | 71,027 | |
Operating Segments | CB-Commercial | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 2,119 | 2,008 | 1,669 | |
Allocated provision for credit losses | 69 | (40) | 1 | |
Segment net interest income after provision | 2,050 | 2,048 | 1,668 | |
Noninterest income | 423 | 392 | 390 | |
Noninterest expense | 1,198 | 1,302 | 1,153 | |
Income (loss) before income taxes | 1,275 | 1,138 | 905 | |
Provision (benefit) for income taxes | 441 | 403 | 324 | |
Net income | 834 | 735 | 581 | |
Identifiable assets (period end) | 56,563 | 55,035 | 51,231 | |
Operating Segments | FS&CF | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 710 | 653 | 553 | |
Allocated provision for credit losses | (15) | 128 | 67 | |
Segment net interest income after provision | 725 | 525 | 486 | |
Noninterest income | 1,181 | 1,148 | 1,046 | |
Noninterest expense | 1,190 | 1,141 | 1,020 | |
Income (loss) before income taxes | 716 | 532 | 512 | |
Provision (benefit) for income taxes | 225 | 156 | 151 | |
Net income | 491 | 376 | 361 | |
Identifiable assets (period end) | 29,144 | 26,795 | 25,294 | |
Operating Segments | IH&PF | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 77 | 67 | 63 | |
Allocated provision for credit losses | 4 | 3 | 4 | |
Segment net interest income after provision | 73 | 64 | 59 | |
Noninterest income | 1,777 | 1,731 | 1,611 | |
Noninterest expense | 1,590 | 1,525 | 1,371 | |
Income (loss) before income taxes | 260 | 270 | 299 | |
Provision (benefit) for income taxes | 99 | 104 | 105 | |
Net income | 161 | 166 | 194 | |
Identifiable assets (period end) | 6,024 | 5,943 | 4,998 | |
Operating Segments | OT&C (1) | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | [1] | 65 | 188 | 391 |
Allocated provision for credit losses | [1] | (12) | 6 | (9) |
Segment net interest income after provision | [1] | 77 | 182 | 400 |
Noninterest income | [1] | (3) | (153) | (370) |
Noninterest expense | [1] | 741 | 284 | 365 |
Income (loss) before income taxes | [1] | (667) | (255) | (335) |
Provision (benefit) for income taxes | [1] | (504) | (291) | (374) |
Net income | [1] | (163) | 36 | 39 |
Identifiable assets (period end) | [1] | 58,818 | 56,861 | 57,397 |
Intersegment Eliminations | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 0 | 0 | 0 | |
Intersegment Eliminations | CB-Retail | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 149 | 115 | (119) | |
Intersegment Eliminations | CB-Commercial | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 379 | 404 | 324 | |
Intersegment Eliminations | FS&CF | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | 127 | 142 | 110 | |
Intersegment Eliminations | IH&PF | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | (21) | (19) | (16) | |
Intersegment Eliminations | OT&C (1) | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Net interest income (expense) | [1] | $ (634) | $ (642) | $ (299) |
[1] | Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure. |