Cover
Cover | 6 Months Ended | |
Jun. 30, 2019shares | ||
Entity Listings [Line Items] | ||
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 1-10853 | |
Entity Registrant Name | BB&T CORPORATION | |
Entity Incorporation, State or Country Code | NC | |
Entity Tax Identification Number | 56-0939887 | |
Entity Address, Address Line One | 200 West Second Street | |
Entity Address, City or Town | Winston-Salem, | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27101 | |
City Area Code | (336) | |
Local Phone Number | 733-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 766,010,180 | |
Entity Central Index Key | 0000092230 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Common Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $5 par value | |
Trading Symbol | BBT | |
Security Exchange Name | NYSE | |
Series D | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares of Series D Non-Cumulative Perpetual Preferred Stock (1) | [1] |
Trading Symbol | BBT PrD | |
Security Exchange Name | NYSE | |
Series E | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares of Series E Non-Cumulative Perpetual Preferred Stock (1) | [1] |
Trading Symbol | BBT PrE | |
Security Exchange Name | NYSE | |
Series F | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares of Series F Non-Cumulative Perpetual Preferred Stock (1) | [1] |
Trading Symbol | BBT PrF | |
Security Exchange Name | NYSE | |
Series G | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares of Series G Non-Cumulative Perpetual Preferred Stock (1) | [1] |
Trading Symbol | BBT PrG | |
Security Exchange Name | NYSE | |
Series H | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares of Series H Non-Cumulative Perpetual Preferred Stock (1) | [1] |
Trading Symbol | BBT PrH | |
Security Exchange Name | NYSE | |
[1] | (1) Each depositary share represents a 1/1,000th interest in a share of the respective series of preferred stock |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 1,831 | $ 2,753 |
Interest-bearing deposits with banks | 707 | 984 |
Cash equivalents | 148 | 143 |
Restricted cash | 15 | 107 |
AFS securities at fair value | 25,802 | 25,038 |
HTM securities (fair value of $19,565 and $20,047 at June 30, 2019 and December 31, 2018, respectively) | 19,487 | 20,552 |
LHFS at fair value | 1,237 | 988 |
Loans and leases | 152,586 | 149,013 |
ALLL | (1,595) | (1,558) |
Loans and leases, net of ALLL | 150,991 | 147,455 |
Premises and equipment | 2,029 | 2,118 |
Goodwill | 9,830 | 9,818 |
CDI and other intangible assets | 712 | 758 |
MSRs at fair value | 970 | 1,108 |
Other assets | 17,113 | 13,875 |
Total assets | 230,872 | 225,697 |
Liabilities | ||
Deposits | 159,521 | 161,199 |
Short-term borrowings | 10,344 | 5,178 |
Long-term debt | 22,640 | 23,709 |
Accounts payable and other liabilities | 6,603 | 5,433 |
Total liabilities | 199,108 | 195,519 |
Commitments and contingencies (Note 14) | ||
Shareholders' Equity | ||
Preferred stock, $5 par, liquidation preference of $25,000 per share | 3,053 | 3,053 |
Common stock, $5 par | 3,830 | 3,817 |
Additional paid-in capital | 6,889 | 6,849 |
Retained earnings | 19,050 | 18,118 |
AOCI, net of deferred income taxes | (1,119) | (1,715) |
Noncontrolling interests | 61 | 56 |
Total shareholders' equity | 31,764 | 30,178 |
Total liabilities and shareholders' equity | $ 230,872 | $ 225,697 |
Common shares outstanding (in shares) | 766,010,000 | 763,326,000 |
Common shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Preferred shares outstanding (in shares) | 126,000 | 126,000 |
Preferred shares authorized (in shares) | 5,000,000 | 5,000,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
HTM securities, Fair Value | $ 19,565 | $ 20,047 |
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, liquidation preference (in dollars per share) | 25,000 | 25,000 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest Income | ||||
Interest and fees on loans and leases | $ 1,886 | $ 1,687 | $ 3,725 | $ 3,292 |
Interest and dividends on securities | 300 | 294 | 602 | 585 |
Interest on other earning assets | 20 | 13 | 52 | 38 |
Total interest income | 2,206 | 1,994 | 4,379 | 3,915 |
Interest Expense | ||||
Interest on deposits | 273 | 148 | 526 | 266 |
Interest on short-term borrowings | 50 | 23 | 82 | 43 |
Interest on long-term debt | 193 | 166 | 385 | 316 |
Total interest expense | 516 | 337 | 993 | 625 |
Net Interest Income | 1,690 | 1,657 | 3,386 | 3,290 |
Provision for credit losses | 172 | 135 | 327 | 285 |
Net Interest Income After Provision for Credit Losses | 1,518 | 1,522 | 3,059 | 3,005 |
Noninterest Income | ||||
Total noninterest income | 1,352 | 1,222 | 2,554 | 2,402 |
Noninterest Expense | ||||
Personnel expense | 1,120 | 1,074 | 2,207 | 2,113 |
Occupancy and equipment expense | 184 | 187 | 371 | 381 |
Software expense | 71 | 67 | 143 | 132 |
Outside IT services | 29 | 32 | 59 | 64 |
Regulatory charges | 19 | 39 | 37 | 79 |
Amortization of intangibles | 32 | 31 | 64 | 64 |
Loan-related expense | 30 | 26 | 55 | 55 |
Professional services | 31 | 32 | 62 | 62 |
Merger-related and restructuring charges, net | 23 | 24 | 103 | 52 |
Other expense | 212 | 208 | 418 | 404 |
Total noninterest expense | 1,751 | 1,720 | 3,519 | 3,406 |
Earnings | ||||
Income before income taxes | 1,119 | 1,024 | 2,094 | 2,001 |
Provision for income taxes | 234 | 202 | 411 | 388 |
Net income | 885 | 822 | 1,683 | 1,613 |
Noncontrolling interests | (1) | 3 | 5 | 6 |
Dividends on preferred stock | 44 | 44 | 87 | 87 |
Net income available to common shareholders | $ 842 | $ 775 | $ 1,591 | $ 1,520 |
Basic EPS (in dollars per share) | $ 1.10 | $ 1 | $ 2.08 | $ 1.95 |
Diluted EPS (in dollars per share) | $ 1.09 | $ 0.99 | $ 2.06 | $ 1.93 |
Basic weighted average shares outstanding (in shares) | 765,958 | 775,836 | 765,052 | 777,716 |
Diluted weighted average shares outstanding (in shares) | 774,603 | 785,750 | 774,329 | 788,362 |
Insurance income | ||||
Noninterest Income | ||||
Total noninterest income | $ 566 | $ 481 | $ 1,076 | $ 917 |
Service charges on deposits | ||||
Noninterest Income | ||||
Total noninterest income | 181 | 179 | 352 | 344 |
Investment banking and brokerage fees and commissions | ||||
Noninterest Income | ||||
Total noninterest income | 131 | 109 | 242 | 222 |
Mortgage banking income | ||||
Noninterest Income | ||||
Total noninterest income | 113 | 94 | 176 | 193 |
Trust and investment advisory revenues | ||||
Noninterest Income | ||||
Total noninterest income | 70 | 72 | 138 | 144 |
Bankcard fees and merchant discounts | ||||
Noninterest Income | ||||
Total noninterest income | 77 | 72 | 147 | 141 |
Checkcard fees | ||||
Noninterest Income | ||||
Total noninterest income | 59 | 57 | 114 | 109 |
Operating lease income | ||||
Noninterest Income | ||||
Total noninterest income | 35 | 36 | 70 | 73 |
Income from bank-owned life insurance | ||||
Noninterest Income | ||||
Total noninterest income | 34 | 30 | 62 | 61 |
Other income | ||||
Noninterest Income | ||||
Total noninterest income | 86 | 91 | 177 | 197 |
Securities gains (losses), net | ||||
Noninterest Income | ||||
Total noninterest income | 0 | 1 | 0 | 1 |
Securities gains (losses), net | ||||
Gross realized gains | 20 | 1 | 42 | 1 |
Gross realized losses | $ (20) | $ 0 | $ (42) | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 885 | $ 822 | $ 1,683 | $ 1,613 |
OCI, net of tax: | ||||
Change in unrecognized net pension and postretirement costs | 19 | 13 | 36 | 27 |
Change in unrealized net gains (losses) on cash flow hedges | (59) | 26 | (93) | 104 |
Change in unrealized net gains (losses) on AFS securities | 342 | (99) | 651 | (367) |
Other, net | 0 | (1) | 2 | (3) |
Total OCI | 302 | (61) | 596 | (239) |
Total comprehensive income | 1,187 | 761 | 2,279 | 1,374 |
Income Tax Effect of Items Included in OCI: | ||||
Change in unrecognized net pension and postretirement costs | 5 | 5 | 11 | 9 |
Change in unrealized net gains (losses) on cash flow hedges | (18) | 8 | (29) | 34 |
Change in unrealized net gains (losses) on AFS securities | 105 | (31) | 200 | (115) |
Other, net | $ 1 | $ 0 | $ 1 | $ 1 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Retained Earnings | AOCI | Noncontrolling Interests |
Beginning balance at Dec. 31, 2017 | $ 29,695 | $ 3,910 | $ 3,053 | $ 7,893 | $ 16,259 | $ (1,467) | $ 47 |
Beginning balance (in shares) at Dec. 31, 2017 | 782,006 | ||||||
Add (Deduct): | |||||||
Net income | 1,613 | 1,607 | 6 | ||||
OCI | (239) | (239) | |||||
Stock transactions: | |||||||
Issued in connection with equity awards, net | (2) | $ 20 | (22) | ||||
Issued in connection with equity awards, net (in shares) | 4,055 | ||||||
Repurchase of common stock (in shares) | (11,614) | ||||||
Repurchase of common stock | (630) | $ (58) | (572) | ||||
Cash dividends declared on common stock | (582) | (582) | |||||
Cash dividends declared on preferred stock | (87) | (87) | |||||
Equity-based compensation expense | 76 | 76 | |||||
Other, net | (12) | (11) | (1) | ||||
Ending balance at Jun. 30, 2018 | 29,832 | $ 3,872 | 3,053 | 7,364 | 17,197 | (1,706) | 52 |
Ending balance (in shares) at Jun. 30, 2018 | 774,447 | ||||||
Beginning balance at Mar. 31, 2018 | 29,662 | $ 3,899 | 3,053 | 7,593 | 16,712 | (1,645) | 50 |
Beginning balance (in shares) at Mar. 31, 2018 | 779,752 | ||||||
Add (Deduct): | |||||||
Net income | 822 | 819 | 3 | ||||
OCI | (61) | (61) | |||||
Stock transactions: | |||||||
Issued in connection with equity awards, net | 11 | $ 2 | 9 | ||||
Issued in connection with equity awards, net (in shares) | 456 | ||||||
Repurchase of common stock (in shares) | (5,761) | ||||||
Repurchase of common stock | (310) | $ (29) | (281) | ||||
Cash dividends declared on common stock | (290) | (290) | |||||
Cash dividends declared on preferred stock | (44) | (44) | |||||
Equity-based compensation expense | 45 | 45 | |||||
Other, net | (3) | (2) | (1) | ||||
Ending balance at Jun. 30, 2018 | 29,832 | $ 3,872 | 3,053 | 7,364 | 17,197 | (1,706) | 52 |
Ending balance (in shares) at Jun. 30, 2018 | 774,447 | ||||||
Beginning balance at Dec. 31, 2018 | $ 30,178 | $ 3,817 | 3,053 | 6,849 | 18,118 | (1,715) | 56 |
Beginning balance (in shares) at Dec. 31, 2018 | 763,326 | 763,326 | |||||
Add (Deduct): | |||||||
Net income | $ 1,683 | 1,678 | 5 | ||||
OCI | 596 | 596 | |||||
Stock transactions: | |||||||
Issued in connection with equity awards, net | (30) | $ 13 | (43) | ||||
Issued in connection with equity awards, net (in shares) | 2,684 | ||||||
Cash dividends declared on common stock | (619) | (619) | |||||
Cash dividends declared on preferred stock | (87) | (87) | |||||
Equity-based compensation expense | 80 | 80 | |||||
Other, net | (37) | 3 | (40) | ||||
Ending balance at Jun. 30, 2019 | $ 31,764 | $ 3,830 | 3,053 | 6,889 | 19,050 | (1,119) | 61 |
Ending balance (in shares) at Jun. 30, 2019 | 766,010 | 766,010 | |||||
Beginning balance at Mar. 31, 2019 | $ 30,883 | $ 3,830 | 3,053 | 6,843 | 18,518 | (1,421) | 60 |
Beginning balance (in shares) at Mar. 31, 2019 | 765,920 | ||||||
Add (Deduct): | |||||||
Net income | 885 | 886 | (1) | ||||
OCI | 302 | 302 | |||||
Stock transactions: | |||||||
Issued in connection with equity awards, net | (2) | (2) | |||||
Issued in connection with equity awards, net (in shares) | 90 | ||||||
Cash dividends declared on common stock | (310) | (310) | |||||
Cash dividends declared on preferred stock | (44) | (44) | |||||
Equity-based compensation expense | 48 | 48 | |||||
Other, net | 2 | 2 | |||||
Ending balance at Jun. 30, 2019 | $ 31,764 | $ 3,830 | $ 3,053 | $ 6,889 | $ 19,050 | $ (1,119) | $ 61 |
Ending balance (in shares) at Jun. 30, 2019 | 766,010 | 766,010 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net income | $ 1,683 | $ 1,613 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for credit losses | 327 | 285 |
Depreciation | 212 | 210 |
Amortization of intangibles | 64 | 64 |
Equity-based compensation expense | 80 | 76 |
(Gain) loss on securities, net | 0 | (1) |
Net change in operating assets and liabilities: | ||
LHFS | (326) | (516) |
Trading and equity securities | (1,081) | (187) |
Other assets, accounts payable and other liabilities | (1,164) | 59 |
Other, net | 394 | (176) |
Net cash from operating activities | 189 | 1,427 |
Cash Flows From Investing Activities: | ||
Proceeds from sales of AFS securities | 4,110 | 160 |
Proceeds from maturities, calls and paydowns of AFS securities | 1,848 | 1,990 |
Purchases of AFS securities | (5,828) | (1,989) |
Proceeds from maturities, calls and paydowns of HTM securities | 1,051 | 1,259 |
Purchases of HTM securities | 0 | (39) |
Originations and purchases of loans and leases, net of principal collected | (3,947) | (2,957) |
Other, net | (41) | 13 |
Net cash from investing activities | (2,807) | (1,563) |
Cash Flows From Financing Activities: | ||
Net change in deposits | (1,573) | 2,113 |
Net change in short-term borrowings | 5,166 | (1,362) |
Proceeds from issuance of long-term debt | 2,033 | 1,755 |
Repayment of long-term debt | (3,396) | (1,044) |
Repurchase of common stock | 0 | (630) |
Cash dividends paid on common stock | (619) | (582) |
Cash dividends paid on preferred stock | (87) | (87) |
Other, net | (192) | (57) |
Net cash from financing activities | 1,332 | 106 |
Net Change in Cash, Cash Equivalents and Restricted Cash | (1,286) | (30) |
Cash and Cash Equivalents at Beginning of Period | 3,987 | 3,083 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 2,701 | 3,053 |
Supplemental Disclosure of Cash Flow Information: | ||
Net cash paid (received) during the period for interest expense | 993 | 619 |
Net cash paid (received) during the period for income taxes | $ 324 | $ (60) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation General See the Glossary of Defined Terms at the beginning of this Report for terms used herein. These consolidated financial statements and notes are presented in accordance with the instructions for Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with GAAP. In the opinion of management, all normal recurring adjustments necessary for a fair statement of the consolidated financial position and consolidated results of operations have been made. The year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The information contained in the financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2018 should be referred to in connection with these unaudited interim consolidated financial statements. Reclassifications Certain 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. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL, determination of fair value for financial instruments, valuation of MSRs, goodwill, intangible assets and other purchase accounting related adjustments, benefit plan obligations and expenses, and tax assets, liabilities and expense. Leases - Lessee BB&T has operating and finance leases for data centers, corporate offices, branches, retail centers, and certain equipment. BB&T determines if an arrangement is a lease at inception. Operating leases with an original lease term in excess of one year are included in other assets and accounts payable and other liabilities in the Consolidated Balance Sheets. Finance leases are included in premises and equipment and long-term debt in the Consolidated Balance Sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating and finance lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. BB&T uses an implicit interest rate in determining the present value of lease payments when readily determinable, and a collateralized incremental borrowing rate when an implicit rate is not available. Lease terms consider options to extend or terminate based on the determination of whether such renewal or termination options are deemed reasonably certain. Rent expense and rental income on operating leases is generally recorded using the straight-line method over the appropriate lease terms. Lease agreements that contain non-lease components are generally accounted for as a single lease component. Variable costs, such as maintenance expenses, property and sales taxes, association dues and index based rate increases, are expensed as they are incurred. Leases - Lessor BB&T's commercial lease portfolio consists of dealer-based financing of equipment for small businesses and commercial equipment leasing. The fair market value of the leased asset is generally equal to the original capitalized cost. Assets under operating leases are included in other assets in the Consolidated Balance Sheets. Depreciation expense for assets under operating leases is generally recorded using the straight-line method over the appropriate lease terms in other expense in the Consolidated Statements of Income. Changes in Accounting Principles and Effects of New Accounting Pronouncements Standard/Adoption Date Description Effects on the Financial Statements Standards Adopted During the Current Year 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 established ROU assets of $860 million and lease liabilities of $997 million. The net impact to equity was a reduction of $40 million. There was no material impact to its Consolidated Statements of Income. BB&T adopted the guidance on a prospective basis and did not reassess whether any expired or existing contract contains a lease, the classification of leases or the initial direct costs. Standards Not Yet Adopted 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. The standard also requires expanded disclosures related to credit losses and asset quality. BB&T expects that the ACL could be materially higher; however, the magnitude of the increase, which is highly dependent on existing and forecasted economic conditions at the time of adoption, has not yet been quantified. BB&T performed limited parallel testing in the second quarter of 2019, and is currently conducting a more comprehensive parallel testing program that will include consideration of qualitative adjustments that among other things will include adjustments designed to capture an estimate for the inherent uncertainty related to forecasts of future economic conditions. In light of the anticipated merger with SunTrust, BB&T is also evaluating the impact of the merger on its CECL implementation project to ensure that its consolidated CECL estimate gives appropriate consideration to the acquired SunTrust loan portfolio. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Business Combinations On February 7, 2019, BB&T and SunTrust announced that both companies' Boards of Directors unanimously approved an agreement to combine in an all-stock merger-of-equals. Upon closing, each SunTrust share will be exchanged for 1.295 shares of BB&T stock. On July 10, 2019, BB&T received regulatory approval from the NCCOB for the pending merger-of-equals with SunTrust. The merger is expected to close late in the third or fourth quarter of 2019, subject to satisfaction of closing conditions, including receipt of remaining regulatory approvals. The merger is subject to a break-up fee of approximately $1.1 billion , payable in customary circumstances. On July 30, 2019, BB&T and SunTrust shareholders approved the merger. In addition, BB&T's shareholders approved Truist Financial Corporation to be the name of the new combined company. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following tables summarize AFS and HTM securities: June 30, 2019 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 1,120 $ 1 $ 9 $ 1,112 GSE 246 3 2 247 Agency MBS 23,428 184 171 23,441 States and political subdivisions 568 31 12 587 Non-agency MBS 207 175 — 382 Other 33 — — 33 Total AFS securities $ 25,602 $ 394 $ 194 $ 25,802 HTM securities: U.S. Treasury $ 1,099 $ 6 $ — $ 1,105 GSE 2,199 27 — 2,226 Agency MBS 16,186 101 56 16,231 States and political subdivisions 3 — — 3 Other — — — — Total HTM securities $ 19,487 $ 134 $ 56 $ 19,565 December 31, 2018 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 3,503 $ 22 $ 84 $ 3,441 GSE 209 — 9 200 Agency MBS 20,927 15 787 20,155 States and political subdivisions 694 25 18 701 Non-agency MBS 321 184 — 505 Other 35 1 — 36 Total AFS securities $ 25,689 $ 247 $ 898 $ 25,038 HTM securities: U.S. Treasury $ 1,099 $ — $ 6 $ 1,093 GSE 2,199 4 43 2,160 Agency MBS 17,248 27 487 16,788 States and political subdivisions 5 — — 5 Other 1 — — 1 Total HTM securities $ 20,552 $ 31 $ 536 $ 20,047 Certain securities issued by FNMA and FHLMC exceeded 10% of shareholders' equity at June 30, 2019 . The FNMA investments had total amortized cost and fair value of $13.6 billion . The FHLMC investments had total amortized cost and fair value of $9.5 billion . 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. AFS HTM June 30, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 346 $ 347 $ — $ — Due after one year through five years 1,011 1,002 3,300 3,332 Due after five years through ten years 278 280 563 564 Due after ten years 23,967 24,173 15,624 15,669 Total debt securities $ 25,602 $ 25,802 $ 19,487 $ 19,565 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 June 30, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ — $ — $ 666 $ 9 $ 666 $ 9 GSE — — 171 2 171 2 Agency MBS 544 1 10,219 170 10,763 171 States and political subdivisions 101 1 197 11 298 12 Total $ 645 $ 2 $ 11,253 $ 192 $ 11,898 $ 194 HTM securities: Agency MBS 384 3 4,461 53 4,845 56 Total $ 384 $ 3 $ 4,461 $ 53 $ 4,845 $ 56 Less than 12 months 12 months or more Total December 31, 2018 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 111 $ — $ 2,121 $ 84 $ 2,232 $ 84 GSE 3 — 176 9 179 9 Agency MBS 322 2 18,478 785 18,800 787 States and political subdivisions 100 1 288 17 388 18 Total $ 536 $ 3 $ 21,063 $ 895 $ 21,599 $ 898 HTM securities: U.S. Treasury $ 698 $ 3 $ 395 $ 3 $ 1,093 $ 6 GSE — — 1,749 43 1,749 43 Agency MBS 264 3 14,976 484 15,240 487 Total $ 962 $ 6 $ 17,120 $ 530 $ 18,082 $ 536 Substantially all of the unrealized losses on the securities portfolio were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. |
Loans and ACL
Loans and ACL | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans and ACL | Loans and ACL During the third quarter of 2019, a residential mortgage loan portfolio totaling approximately $4 billion is expected to be sold. The following tables present loans and leases HFI by aging category: Accruing June 30, 2019 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 63,468 $ 32 $ — $ 193 $ 63,693 CRE 20,686 3 — 33 20,722 Lease financing 2,196 5 — 2 2,203 Retail: Residential mortgage 31,673 480 350 104 32,607 Direct 11,370 58 10 54 11,492 Indirect 17,734 393 7 75 18,209 Revolving credit 3,197 28 14 — 3,239 PCI 378 17 26 — 421 Total $ 150,702 $ 1,016 $ 407 $ 461 $ 152,586 Accruing December 31, 2018 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 61,701 $ 34 $ — $ 200 $ 61,935 CRE 20,990 5 — 65 21,060 Lease financing 2,014 1 — 3 2,018 Retail: Residential mortgage 30,413 456 405 119 31,393 Direct 11,463 61 7 53 11,584 Indirect 16,901 436 6 82 17,425 Revolving credit 3,090 28 14 — 3,132 PCI 413 23 30 — 466 Total $ 146,985 $ 1,044 $ 462 $ 522 $ 149,013 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 rather than reclassifying to nonperforming: June 30, 2019 December 31, 2018 (Dollars in millions) Commercial & Industrial CRE Lease Financing Commercial & Industrial CRE Lease Financing Commercial: Pass $ 62,211 $ 20,315 $ 2,188 $ 60,655 $ 20,712 $ 2,012 Special mention 386 112 1 216 61 — Substandard-performing 903 262 12 864 222 3 Nonperforming 193 33 2 200 65 3 Total $ 63,693 $ 20,722 $ 2,203 $ 61,935 $ 21,060 $ 2,018 Residential Mortgage Direct Indirect Residential Mortgage Direct Indirect Retail: Performing $ 32,503 $ 11,438 $ 18,134 $ 31,274 $ 11,531 $ 17,343 Nonperforming 104 54 75 119 53 82 Total $ 32,607 $ 11,492 $ 18,209 $ 31,393 $ 11,584 $ 17,425 The following tables present activity in the ACL: (Dollars in millions) Balance at Apr 1, 2018 Charge-Offs Recoveries Provision (Benefit) Balance at Jun 30, 2018 Commercial: Commercial and industrial $ 522 $ (23 ) $ 11 $ 25 $ 535 CRE 175 (2 ) 1 17 191 Lease financing 10 (1 ) 1 — 10 Retail: Residential mortgage 216 (5 ) 1 9 221 Direct 99 (17 ) 6 9 97 Indirect 347 (82 ) 17 71 353 Revolving credit 104 (21 ) 5 17 105 PCI 25 — — (7 ) 18 ALLL 1,498 (151 ) 42 141 1,530 RUFC 116 — — (6 ) 110 ACL $ 1,614 $ (151 ) $ 42 $ 135 $ 1,640 (Dollars in millions) Balance at Apr 1, 2019 Charge-Offs Recoveries Provision (Benefit) Balance at Jun 30, 2019 Commercial: Commercial and industrial $ 548 $ (22 ) $ 8 $ 40 $ 574 CRE 196 (18 ) 3 20 201 Lease financing 11 — — (1 ) 10 Retail: Residential mortgage 225 (5 ) — 4 224 Direct 96 (22 ) 7 18 99 Indirect 358 (91 ) 19 73 359 Revolving credit 119 (25 ) 4 22 120 PCI 8 — — — 8 ALLL 1,561 (183 ) 41 176 1,595 RUFC 98 — — (4 ) 94 ACL $ 1,659 $ (183 ) $ 41 $ 172 $ 1,689 (Dollars in millions) Balance at Jan 1, 2018 Charge-Offs Recoveries Provision (Benefit) Balance at Jun 30, 2018 Commercial: Commercial and industrial $ 522 $ (46 ) $ 19 $ 40 $ 535 CRE 160 (8 ) 3 36 191 Lease financing 9 (2 ) 1 2 10 Retail: Residential mortgage 209 (9 ) 1 20 221 Direct 106 (36 ) 12 15 97 Indirect 348 (189 ) 32 162 353 Revolving credit 108 (42 ) 10 29 105 PCI 28 — — (10 ) 18 ALLL 1,490 (332 ) 78 294 1,530 RUFC 119 — — (9 ) 110 ACL $ 1,609 $ (332 ) $ 78 $ 285 $ 1,640 (Dollars in millions) Balance at Jan 1, 2019 Charge-Offs Recoveries Provision (Benefit) Balance at Jun 30, 2019 Commercial: Commercial and industrial $ 546 $ (39 ) $ 14 $ 53 $ 574 CRE 190 (26 ) 4 33 201 Lease financing 11 (1 ) — — 10 Retail: Residential mortgage 232 (10 ) 1 1 224 Direct 97 (40 ) 13 29 99 Indirect 356 (200 ) 36 167 359 Revolving credit 117 (51 ) 10 44 120 PCI 9 — — (1 ) 8 ALLL 1,558 (367 ) 78 326 1,595 RUFC 93 — — 1 94 ACL $ 1,651 $ (367 ) $ 78 $ 327 $ 1,689 The following table provides a summary of loans that are collectively evaluated for impairment: June 30, 2019 December 31, 2018 (Dollars in millions) Recorded Investment Related ALLL Recorded Investment Related ALLL Commercial: Commercial and industrial $ 63,383 $ 546 $ 61,629 $ 521 CRE 20,667 197 20,960 181 Lease financing 2,201 10 2,015 11 Retail: Residential mortgage 31,842 168 30,539 164 Direct 11,427 94 11,517 92 Indirect 17,873 298 17,099 299 Revolving credit 3,210 109 3,104 106 PCI 421 8 466 9 Total $ 151,024 $ 1,430 $ 147,329 $ 1,383 The following tables set forth certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for impairment: UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized As of / For The Six Months Ended June 30, 2019 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 321 $ 89 $ 221 $ 28 $ 309 $ 3 CRE 62 5 50 4 100 1 Lease financing 2 — 2 — 2 — Retail: Residential mortgage 813 106 659 56 858 19 Direct 82 26 39 5 66 2 Indirect 346 5 331 61 328 26 Revolving credit 29 — 29 11 29 1 Total $ 1,655 $ 231 $ 1,331 $ 165 $ 1,692 $ 52 UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized As of / For The Year Ended December 31, 2018 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 318 $ 95 $ 211 $ 25 $ 343 $ 6 CRE 102 29 71 9 97 2 Lease financing 3 — 3 — 6 — Retail: Residential mortgage 904 122 732 68 841 34 Direct 86 26 41 5 72 4 Indirect 335 6 320 57 306 46 Revolving credit 28 — 28 11 29 1 Total $ 1,776 $ 278 $ 1,406 $ 175 $ 1,694 $ 93 The following table presents a summary of TDRs, all of which are considered impaired: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Performing TDRs: Commercial: Commercial and industrial $ 84 $ 65 CRE 8 10 Retail: Residential mortgage 581 656 Direct 53 55 Indirect 315 305 Revolving credit 29 28 Total performing TDRs 1,070 1,119 Nonperforming TDRs (also included in NPL disclosures) 135 176 Total TDRs $ 1,205 $ 1,295 ALLL attributable to TDRs $ 149 $ 146 The primary reason loan modifications were classified as TDRs is summarized below. Balances represent the recorded investment at the end of the quarter in which the modification was made. Rate modifications consist of TDRs made with below market interest rates, including those that also have modifications of loan structures. 2019 2018 Three Months Ended June 30, Type of Modification ALLL Impact Type of Modification ALLL Impact Rate Structure Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 24 $ 3 $ 1 $ 20 $ 33 $ — CRE — 1 — 8 1 — Retail: Residential mortgage 49 6 3 58 5 4 Direct 2 1 — 2 1 — Indirect 50 1 6 45 1 5 Revolving credit 5 — 1 4 — 1 Re-modification of previously designated TDRs 14 11 — 31 5 — 2019 2018 Six Months Ended June 30, Type of Modification ALLL Impact Type of Modification ALLL Impact Rate Structure Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 50 $ 6 $ 2 $ 30 $ 43 $ — CRE 1 1 — 27 2 — Retail: Residential mortgage 122 14 7 140 15 9 Direct 5 2 — 4 1 — Indirect 98 2 12 87 2 10 Revolving credit 11 — 2 9 — 2 Re-modification of previously designated TDRs 37 16 — 52 10 — Charge-offs and forgiveness of principal and interest for TDRs were immaterial for all periods presented. The pre-default balance for modifications that had been classified as TDRs during the previous 12 months that experienced a payment default was $21 million and $13 million for the three months ended June 30, 2019 and 2018, respectively, and $39 million and $36 million for the six months ended June 30, 2019 and 2018, respectively. Payment default is defined as movement of the TDR to nonperforming status, foreclosure or charge-off, whichever occurs first. Unearned income, discounts and net deferred loan fees and costs were immaterial for all periods presented. Residential mortgage loans in the process of foreclosure were $240 million at June 30, 2019 and $253 million at December 31, 2018 . |
Other Assets and Liabilites
Other Assets and Liabilites | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Other Assets and Liabilities | Other Assets and Liabilities Lessee Operating and Finance Leases Operating lease costs were $49 million and $98 million for the three and six months ended June 30, 2019 , respectively. The following table presents additional information on operating and finance leases: June 30, 2019 Operating Leases Finance Leases ROU assets $ 842 $ 18 Maturities of lease liabilities: 2019 $ 86 $ 4 2020 195 7 2021 172 6 2022 148 5 2023 118 3 2024 92 2 Thereafter 289 3 Total lease payments 1,100 30 Less: imputed interest 139 5 Total lease liabilities $ 961 $ 25 Weighted average remaining term 7.5 years 5.0 years Weighted average discount rate 3.1 % 7.1 % Lessor Operating Leases The following tables present a summary of assets under operating leases and activity related to assets under operating leases. These tables exclude subleases on assets included in premises and equipment. (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Assets held under operating leases $ 1,359 $ 1,378 Accumulated depreciation (375 ) (374 ) Net $ 984 $ 1,004 Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Depreciation expense for assets under operating leases $ 29 $ 30 $ 58 $ 60 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets: June 30, 2019 December 31, 2018 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount CDI $ 605 $ (482 ) $ 123 $ 605 $ (460 ) $ 145 Other, primarily customer relationship intangibles 1,331 (742 ) 589 1,329 (716 ) 613 Total $ 1,936 $ (1,224 ) $ 712 $ 1,934 $ (1,176 ) $ 758 |
Loan Servicing
Loan Servicing | 6 Months Ended |
Jun. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Loan Servicing | Loan Servicing Residential Mortgage Banking Activities The following tables summarize residential mortgage banking activities: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 UPB of residential mortgage loan servicing portfolio $ 117,912 $ 118,605 UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate 85,060 87,270 Mortgage loans sold with recourse 387 419 Maximum recourse exposure from mortgage loans sold with recourse liability 209 223 Indemnification, recourse and repurchase reserves 21 24 As of / For the Six Months Ended June 30, 2019 2018 UPB of residential mortgage loans sold from LHFS $ 3,597 $ 5,536 Pre-tax gains recognized on mortgage loans sold and held for sale 48 74 Servicing fees recognized from mortgage loans serviced for others 123 128 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others 0.28 % 0.28 % Weighted average interest rate on mortgage loans serviced for others 4.07 4.01 The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value: Six Months Ended June 30, 2019 2018 Residential MSRs, carrying value, January 1 $ 957 $ 914 Additions 40 63 Change in fair value due to changes in valuation inputs or assumptions: Prepayment speeds (134 ) 67 OAS 37 17 Servicing costs — — Realization of expected net servicing cash flows, passage of time and other (70 ) (70 ) Residential MSRs, carrying value, June 30 $ 830 $ 991 Gains (losses) on derivative financial instruments used to mitigate the income statement effect of changes in residential MSR fair value $ 129 $ (84 ) The sensitivity of the fair value of the residential MSRs to changes in key assumptions is presented in the following table: June 30, 2019 December 31, 2018 Range Weighted Average Range Weighted Average (Dollars in millions) Min Max Min Max Prepayment speed 10.3 % 13.4 % 12.9 % 9.1 % 10.5 % 9.9 % Effect on fair value of a 10% increase $ (40 ) $ (34 ) Effect on fair value of a 20% increase (77 ) (66 ) OAS 5.3 % 7.8 % 5.9 % 6.6 % 8.3 % 7.0 % Effect on fair value of a 10% increase $ (18 ) $ (24 ) Effect on fair value of a 20% increase (34 ) (47 ) Composition of loans serviced for others: Fixed-rate residential mortgage loans 99.2 % 99.2 % Adjustable-rate residential mortgage loans 0.8 0.8 Total 100.0 % 100.0 % Weighted average life 5.1 years 6.1 years The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in the above table, the effect of an adverse variation in one assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another, which may magnify or counteract the effect of the change. Commercial Mortgage Banking Activities The following table summarizes commercial mortgage banking activities for the periods presented: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 UPB of CRE mortgages serviced for others $ 27,683 $ 27,761 CRE mortgages serviced for others covered by recourse provisions 4,691 4,699 Maximum recourse exposure from CRE mortgages sold with recourse liability 1,312 1,317 Recorded reserves related to recourse exposure 6 6 CRE mortgages originated during the year-to-date period 3,218 7,072 Commercial MSRs at fair value 140 151 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
Deposits | Deposits The composition of deposits is presented in the following table: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Noninterest-bearing deposits $ 52,458 $ 53,025 Interest checking 28,021 28,130 Money market and savings 63,972 63,467 Time deposits 15,070 16,577 Total deposits $ 159,521 $ 161,199 Time deposits greater than $250,000 $ 3,868 $ 5,713 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table presents a summary of long-term debt: Jun 30, 2019 Dec 31, 2018 Stated Rate Effective Rate Carrying Amount Carrying Amount (Dollars in millions) Maturity Min Max BB&T Corporation: Fixed rate senior notes 2020 to 2025 2.05 % 5.38 % 2.91 % $ 10,675 $ 10,408 Floating rate senior notes 2020 2022 2.80 3.31 3.08 1,948 2,398 Fixed rate subordinated notes 2019 2029 3.88 5.25 2.50 1,586 903 Branch Bank: Fixed rate senior notes 2020 2022 2.10 2.85 2.54 3,449 4,895 Floating rate senior notes 2020 2020 2.74 3.05 3.01 900 1,149 Fixed rate subordinated notes 2025 2026 3.63 3.80 3.09 2,178 2,075 FHLB advances (1) 2019 2034 — 5.50 2.77 1,743 1,749 Other long-term debt 161 132 Total long-term debt $ 22,640 $ 23,709 (1) FHLB advances had a weighted average maturity of 3.5 years at June 30, 2019 . The effective rates above reflect the impact of fair value hedges and debt issuance costs. Subordinated notes with a remaining maturity of one year or greater qualify under the risk-based capital guidelines as Tier 2 supplementary capital, subject to certain limitations. During the third quarter of 2019, BB&T issued $1.0 billion in fixed rate medium term notes with a maturity date of 2024 . |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Preferred Stock On July 29, 2019 , BB&T issued $1.7 billion of series N non-cumulative perpetual preferred stock with a stated dividend rate of 4.800% per annum for net proceeds of $1.7 billion . Dividends, if declared by the Board of Directors, are payable on the first day of March and September of each year, commencing on March 1, 2020. The dividend rate will reset on September 1, 2024, and on each following fifth anniversary of the reset date to the five-year U.S. Treasury rate plus 3.003%. BB&T issued depositary shares, each of which represents a fractional ownership interest in a share of the 68,000 shares of the Company's series N 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 September 1, 2024. Dividends The following table presents the dividends declared related to common stock. For information related to preferred stock dividends, see Note 9. Shareholders' Equity of the Annual Report on Form 10-K for the year ended December 31, 2018 . Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cash dividends declared per share $ 0.405 $ 0.375 $ 0.810 $ 0.750 Equity-Based Compensation Plans The following table presents the activity related to awards of RSUs, PSUs and restricted shares: (Shares in thousands) Units/Shares Wtd. Avg. Grant Date Fair Value Nonvested at January 1, 2019 12,060 $ 38.03 Granted 3,914 44.39 Vested (3,262 ) 35.07 Forfeited (204 ) 43.86 Nonvested at June 30, 2019 12,508 40.69 |
AOCI
AOCI | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
AOCI | AOCI AOCI includes the after-tax change in unrecognized net costs related to defined benefit pension and OPEB plans, and unrealized gains and losses on cash flow hedges and AFS securities. Three Months Ended Pension and OPEB Costs Cash Flow Hedges AFS Securities Other, net Total AOCI balance, April 1, 2018 $ (990 ) $ (14 ) $ (624 ) $ (17 ) $ (1,645 ) OCI before reclassifications, net of tax — 23 (100 ) (2 ) (79 ) Amounts reclassified from AOCI: Before tax 18 3 1 1 23 Tax effect 5 — — — 5 Amounts reclassified, net of tax 13 3 1 1 18 Total OCI, net of tax 13 26 (99 ) (1 ) (61 ) AOCI balance, June 30, 2018 $ (977 ) $ 12 $ (723 ) $ (18 ) $ (1,706 ) AOCI balance, April 1, 2019 $ (1,147 ) $ (65 ) $ (191 ) $ (18 ) $ (1,421 ) OCI before reclassifications, net of tax — (61 ) 346 — 285 Amounts reclassified from AOCI: Before tax 24 2 (6 ) — 20 Tax effect 5 — (2 ) — 3 Amounts reclassified, net of tax 19 2 (4 ) — 17 Total OCI, net of tax 19 (59 ) 342 — 302 AOCI balance, June 30, 2019 $ (1,128 ) $ (124 ) $ 151 $ (18 ) $ (1,119 ) Six Months Ended June 30, 2019 and 2018 Pension and OPEB Costs Cash Flow Hedges AFS Securities Other, net Total AOCI balance, January 1, 2018 $ (1,004 ) $ (92 ) $ (356 ) $ (15 ) $ (1,467 ) OCI before reclassifications, net of tax — 93 (382 ) (4 ) (293 ) Amounts reclassified from AOCI: Before tax 36 14 20 1 71 Tax effect 9 3 5 — 17 Amounts reclassified, net of tax 27 11 15 1 54 Total OCI, net of tax 27 104 (367 ) (3 ) (239 ) AOCI balance, June 30, 2018 (977 ) 12 (723 ) (18 ) (1,706 ) AOCI balance, January 1, 2019 $ (1,164 ) $ (31 ) $ (500 ) $ (20 ) $ (1,715 ) OCI before reclassifications, net of tax — (91 ) 660 2 571 Amounts reclassified from AOCI: Before tax 47 (3 ) (12 ) — 32 Tax effect 11 (1 ) (3 ) — 7 Amounts reclassified, net of tax 36 (2 ) (9 ) — 25 Total OCI, net of tax 36 (93 ) 651 2 596 AOCI balance, June 30, 2019 $ (1,128 ) $ (124 ) $ 151 $ (18 ) $ (1,119 ) Primary income statement location of amounts reclassified from AOCI Other expense Net interest income Net interest income Net interest income |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates for the three months ended June 30, 2019 and 2018 were 20.9% and 19.7% The effective tax rates for the six months ended June 30, 2019 and 2018 were 19.6% and 19.4% |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The components of net periodic benefit cost for defined benefit pension plans are summarized in the following table: Three Months Ended June 30, Six Months Ended June 30, Location 2019 2018 2019 2018 Service cost Personnel expense $ 55 $ 60 $ 109 $ 120 Interest cost Other expense 54 50 111 100 Estimated return on plan assets Other expense (114 ) (112 ) (227 ) (224 ) Amortization and other Other expense 26 19 51 39 Net periodic benefit cost $ 21 $ 17 $ 44 $ 35 BB&T makes contributions to the qualified pension plan in amounts between the minimum required for funding and the maximum deductible for federal income tax purposes. Discretionary contributions totaling $549 million were made during the six months ended June 30, 2019 . There are no required contributions for the remainder of 2019 , though BB&T may elect to make additional discretionary contributions. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table summarizes certain commitments and contingencies . Refer to Note 15. Fair Value Disclosures for additional disclosures related to off-balance sheet financial instruments. (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Investments in affordable housing projects: Carrying amount $ 2,178 $ 2,088 Amount of future funding commitments included in carrying amount 914 919 Lending exposure 410 460 Tax credits subject to recapture 513 523 Private equity investments: Carrying amount 525 458 Amount of future funding commitments not included in carrying amount 312 331 Legal Proceedings The nature of BB&T's business ordinarily results in a certain amount of claims, litigation, investigations and legal and administrative cases and proceedings, all of which are considered incidental to the normal conduct of business. BB&T believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and, with respect to such legal proceedings, intends to continue to defend itself vigorously, litigating or settling cases according to management's judgment as to what is in the best interests of BB&T and its shareholders. On at least a quarterly basis, liabilities and contingencies in connection with outstanding legal proceedings are assessed utilizing the latest information available. For those matters where it is probable that BB&T will incur a loss and the amount of the loss can be reasonably estimated, and is more than nominal, a liability is recorded in the consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments on at least a quarterly basis. For other matters, where a loss is not probable or the amount of the loss is not estimable, legal reserves are not accrued. While the outcome of legal proceedings is inherently uncertain, based on information currently available, advice of counsel and available insurance coverage, management believes that the established legal reserves are adequate and the liabilities arising from legal proceedings will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the consolidated financial position, consolidated results of operations or consolidated cash flows of BB&T. Following the announcement of the proposed merger with SunTrust, six civil actions were filed challenging, among other things, the adequacy of the disclosures contained in the preliminary proxy statement/prospectus filed with the SEC in connection with the proposed transaction. Five of these suits were filed by purported SunTrust stockholders against SunTrust and its board of directors, with one suit also asserting a claim against BB&T. The sixth suit was filed by a purported BB&T stockholder against BB&T and its board of directors. Following discussions, SunTrust and BB&T reached agreement with plaintiffs to resolve these actions by making certain supplemental disclosures in the joint proxy statement/prospectus filed with the SEC in connection with the proposed transaction, which became definitive on June 19, 2019. To date, one of the suits filed by purported SunTrust stockholders has been dismissed with prejudice, and the suit filed by a purported BB&T stockholder has been discontinued with prejudice. Plaintiffs in the four remaining suits have similarly agreed to dismiss their actions in their entirety, with prejudice as to the named plaintiffs only and without prejudice to all other members of the putative class. 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, excluding assets related to employee benefit plans: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Pledged securities $ 13,782 $ 13,237 Pledged loans 79,303 77,847 |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis: June 30, 2019 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: AFS securities: U.S. Treasury $ 1,112 $ — $ 1,112 $ — $ — GSE 247 — 247 — — Agency MBS 23,441 — 23,441 — — States and political subdivisions 587 — 587 — — Non-agency MBS 382 — — 382 — Other 33 — 33 — — Total AFS securities 25,802 — 25,420 382 — LHFS 1,237 — 1,237 — — MSRs 970 — — 970 — Other assets: Trading and equity securities 1,848 413 1,435 — — Derivative assets 498 — 638 18 (158 ) Private equity investments 449 — — 449 — Total assets $ 30,804 $ 413 $ 28,730 $ 1,819 $ (158 ) Liabilities: Derivative liabilities $ 35 $ — $ 156 $ 11 $ (132 ) Securities sold short 188 — 188 — — Total liabilities $ 223 $ — $ 344 $ 11 $ (132 ) December 31, 2018 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: AFS securities: U.S. Treasury $ 3,441 $ — $ 3,441 $ — $ — GSE 200 — 200 — — Agency MBS 20,155 — 20,155 — — States and political subdivisions 701 — 701 — — Non-agency MBS 505 — 114 391 — Other 36 — 36 — — Total AFS securities 25,038 — 24,647 391 — LHFS 988 — 988 — — MSRs 1,108 — — 1,108 — Other assets: Trading and equity securities 767 374 390 3 — Derivative assets 246 — 234 12 — Private equity investments 393 — — 393 — Total assets $ 28,540 $ 374 $ 26,259 $ 1,907 $ — Liabilities: Derivative liabilities $ 247 $ 1 $ 246 $ — $ — Securities sold short 145 — 145 — — Total liabilities $ 392 $ 1 $ 391 $ — $ — (1) Refer to Note 16. Derivative Financial Instruments for additional discussion on netting adjustments. Accounting standards define fair value as the exchange price that would be received on the measurement date to sell an asset or the price paid to transfer a liability in the principal or most advantageous market available to the entity in an orderly transaction between market participants, with a three level valuation input hierarchy. The following discussion focuses on the valuation techniques and significant inputs for Level 2 and Level 3 assets and liabilities. A third-party pricing service is generally utilized in determining the fair value of the securities portfolio. Management independently evaluates the fair values provided by the pricing service through comparisons to other external pricing sources, review of additional information provided by the pricing service and other third party sources for selected securities and back-testing to compare the price realized on any security sales to the daily pricing information received from the pricing service. Fair value measurements are derived from market-based pricing matrices that were developed using observable inputs that include benchmark yields, benchmark securities, reported trades, offers, bids, issuer spreads and broker quotes. As described by security type below, additional inputs may be used, or some inputs may not be applicable. In the event that market observable data was not available, which would generally occur due to the lack of an active market for a given security, the valuation of the security would be subjective and may involve substantial judgment by management. 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 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 corporate bonds. These securities are valued based on a review of quoted market prices for assets as well as through the various other inputs discussed previously. LHFS: Certain mortgage loans are originated to be sold to investors, which are carried at fair value. The fair value is primarily based on quoted market prices for securities backed by similar types of loans. The changes in fair value of these assets are largely driven by changes in interest rates subsequent to loan funding and changes in the fair value of servicing associated with the mortgage LHFS. MSRs: Residential MSRs are valued using an OAS valuation model to project cash flows over multiple interest rate scenarios, which are discounted at risk-adjusted rates. The model considers portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges, other ancillary revenue, costs to service and other economic factors. Fair value estimates and assumptions are compared to industry surveys, recent market activity, actual portfolio experience and, when available, other observable market data. Commercial MSRs are valued using a cash flow valuation model that calculates the present value of estimated future net servicing cash flows. BB&T considers actual and expected loan prepayment rates, discount rates, servicing costs and other economic factors that are determined based on current market conditions. Trading and equity securities: Trading and equity securities primarily consist of exchange traded equity securities, and debt securities issued by the U.S. Treasury, GSEs, or states and political subdivisions. The valuation techniques for debt securities are more fully discussed above. Derivative assets and liabilities: The fair values of derivatives are determined based on quoted market prices and internal pricing models that use market observable data. The fair values of interest rate lock commitments, which are related to mortgage loan commitments and are categorized as Level 3, are based on quoted market prices adjusted for commitments that are not expected to fund and include the value attributable to the net servicing fees. Private equity investments: In many cases there are no observable market values for these investments and therefore management must estimate the fair value based on a comparison of the operating performance of the company to multiples in the marketplace for similar entities. This analysis requires significant judgment, and actual values in a sale could differ materially from those estimated. Securities sold short: Securities sold short represent debt securities sold short that are entered into as a hedging strategy for the purposes of supporting institutional and retail client trading activities. Activity for Level 3 assets and liabilities is summarized below: Three Months Ended Trading and Equity Securities Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at April 1, 2018 $ — $ 441 $ 1,119 $ 7 $ 400 Total realized and unrealized gains (losses): Included in earnings — 7 23 1 5 Included in unrealized net holding gains (losses) in OCI — (9 ) — — — Purchases 1 — — — 3 Issuances — — 46 11 — Sales (1 ) — — — — Settlements — (14 ) (45 ) (15 ) (9 ) Balance at June 30, 2018 $ — $ 425 $ 1,143 $ 4 $ 399 Balance at April 1, 2019 $ 11 $ 386 $ 1,036 $ 7 $ 388 Total realized and unrealized gains (losses): Included in earnings — (7 ) (51 ) 13 1 Included in unrealized net holding gains (losses) in OCI — 11 — — — Purchases — — — — 61 Issuances — — 30 17 — Sales (11 ) — — — (1 ) Settlements — (8 ) (45 ) (20 ) — Transfers into Level 3 — — — (10 ) — Balance at June 30, 2019 $ — $ 382 $ 970 $ 7 $ 449 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2019 $ — $ (7 ) $ (51 ) $ 17 $ — Six Months Ended June 30, 2019 and 2018 Trading and Equity Securities Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at January 1, 2018 $ — $ 432 $ 1,056 $ 3 $ 404 Total realized and unrealized gains (losses): Included in earnings — 6 91 1 11 Included in unrealized net holding gains (losses) in OCI — 14 — — — Purchases 1 — — — 27 Issuances — — 83 6 — Sales (1 ) — — — (24 ) Settlements — (27 ) (87 ) (6 ) (19 ) Balance at June 30, 2018 $ — $ 425 $ 1,143 $ 4 $ 399 Balance at January 1, 2019 $ 3 $ 391 $ 1,108 $ 12 $ 393 Total realized and unrealized gains (losses): Included in earnings — (5 ) (105 ) 21 24 Included in unrealized net holding gains (losses) in OCI — 12 — — — Purchases 15 — — — 68 Issuances — — 52 34 — Sales (18 ) — — — (34 ) Settlements — (16 ) (85 ) (50 ) (2 ) Transfers into Level 3 — — — (10 ) — Balance at June 30, 2019 $ — $ 382 $ 970 $ 7 $ 449 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2019 $ — $ (5 ) $ (105 ) $ 18 $ 4 Primary income statement location of realized gains (losses) included in earnings Interest income Interest income Mortgage banking income Mortgage banking income Other income The non-agency MBS categorized as Level 3 represent ownership interests 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 June 30, 2019 , the fair value of Re-REMIC non-agency MBS represented a discount of 21.7% 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 2029, is uncertain and dependent on various events such as recapitalizations, refinance transactions and ownership changes among others. As of June 30, 2019 , restrictions on the ability to sell the investments include, but are not limited to, consent of a majority member or general partner approval for transfer of ownership. These investments are spread over numerous privately-held middle market companies, and thus the sensitivity to a change in fair value for any single investment is limited. The significant unobservable inputs for these investments are EBITDA multiples that ranged from 6 x to 12 x, with a weighted average of 9 x, at June 30, 2019 . The following table details the fair value and UPB of LHFS that were elected to be carried at fair value: June 30, 2019 December 31, 2018 (Dollars in millions) Fair Value UPB Difference Fair Value UPB Difference LHFS at fair value $ 1,237 $ 1,221 $ 16 $ 988 $ 975 $ 13 Excluding government guaranteed, LHFS that were nonperforming or 90 days or more past due and still accruing interest were not material at June 30, 2019 . The following table provides information about certain assets measured at fair value on a nonrecurring basis, which are primarily collateral dependent and may be subject to liquidity adjustments. The carrying values represent end of period values, which approximate the fair value measurements that occurred on the various measurement dates throughout the period. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end. These assets are considered to be Level 3 assets (excludes PCI). 2019 2018 As of / For The Six Months Ended June 30, Carrying Value Valuation Adjustments Carrying Value Valuation Adjustments Impaired loans $ 113 $ (20 ) $ 174 $ (22 ) Foreclosed real estate 36 (117 ) 43 (114 ) 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 and revolving credit commitments have an immaterial fair value as BB&T typically has the ability to cancel such commitments. Financial assets and liabilities not recorded at fair value are summarized below: June 30, 2019 December 31, 2018 (Dollars in millions) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: HTM securities Level 2 $ 19,487 $ 19,565 $ 20,552 $ 20,047 Loans and leases HFI, net of ALLL Level 3 150,991 150,295 147,455 145,591 Financial liabilities: Time deposits Level 2 15,070 15,141 16,577 16,617 Long-term debt Level 2 22,640 23,005 23,709 23,723 The following is a summary of selected information pertaining to off-balance sheet financial instruments: June 30, 2019 December 31, 2018 (Dollars in millions) Notional/Contract Amount Fair Value Notional/Contract Amount Fair Value Commitments to extend, originate or purchase credit $ 75,677 $ 262 $ 72,435 $ 280 Residential mortgage loans sold with recourse 387 3 419 3 CRE mortgages serviced for others covered by recourse provisions 4,691 6 4,699 6 Letters of credit 2,269 16 2,389 18 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The following table provides a summary of derivative strategies and the related accounting treatment: Cash Flow Hedges Fair Value Hedges Derivatives Not Designated as Hedges Risk exposure Variability in cash flows of interest payments on floating rate business loans, overnight funding and various LIBOR funding instruments. Changes in value on fixed rate long-term debt, CDs, FHLB advances, loans and state and political subdivision securities due to changes in interest rates. Risk associated with an asset or liability, including mortgage banking operations and MSRs, or for client needs. Includes exposure to changes in market rates and conditions subsequent to the interest rate lock and funding date for mortgage loans originated for sale. Risk management objective Hedge the variability in the interest payments and receipts on future cash flows for forecasted transactions related to the first unhedged payments and receipts of variable interest. Convert the fixed rate paid or received to a floating rate, primarily through the use of swaps. For interest rate lock commitment derivatives and LHFS, use mortgage-based derivatives such as forward commitments and options to mitigate market risk. For MSRs, mitigate the income statement effect of changes in the fair value of the MSRs. For client swaps, hedges are executed with dealer counterparties to offset market risk. Treatment during the hedge period Changes in value of the hedging instruments are recognized in AOCI until the related cash flows from the hedged item are recognized in earnings. Changes in value of both the hedging instruments and the assets or liabilities being hedged are recognized in the income statement line item associated with the instrument being hedged. Entire change in fair value recognized in current period income. Treatment if hedge ceases to be highly effective or is terminated Hedge is dedesignated. Changes in value recorded in AOCI before dedesignation are amortized to yield over the period the forecasted hedged transactions impact earnings. If hedged item remains outstanding, the basis adjustment that resulted from hedging is amortized into earnings over the lesser of the designated hedged period or the maturity date of the instrument, and cash flows from terminations are reported in the same category as the cash flows from the hedged item. Not applicable Treatment if transaction is no longer probable of occurring during forecast period or within a short period thereafter Hedge accounting ceases and any gain or loss in AOCI is reported in earnings immediately. Not applicable Not applicable Impact of Derivatives on the Consolidated Balance Sheets In the second quarter of 2019, BB&T began applying the offsetting provisions for contracts that are covered by legally enforceable master netting agreements. Application of these provisions was not material to BB&T's consolidated financial statements. Gross amounts are presented in the December 31, 2018 consolidated balance sheet. The following table presents the notional amount and estimated fair value of derivative instruments: June 30, 2019 December 31, 2018 Hedged Item or Transaction Notional Amount Fair Value Notional Amount Fair Value (Dollars in millions) Gain Loss Gain Loss Cash flow hedges: Interest rate contracts: Pay fixed swaps 3 mo. LIBOR funding $ 2,500 $ — $ — $ 6,500 $ — $ — Fair value hedges: Interest rate contracts: Receive fixed swaps Long-term debt 11,529 108 (25 ) 12,908 5 (74 ) Options Long-term debt 4,785 — (2 ) 4,785 — (2 ) Pay fixed swaps Commercial loans 419 — — 505 2 — Pay fixed swaps Municipal securities 151 — — 259 — — Total 16,884 108 (27 ) 18,457 7 (76 ) Not designated as hedges: Client-related and other risk management: Interest rate contracts: Receive fixed swaps 12,709 471 (6 ) 11,577 128 (98 ) Pay fixed swaps 12,520 1 (68 ) 11,523 19 (32 ) Other 1,342 2 (3 ) 1,143 2 (3 ) Forward commitments 5,345 20 (27 ) 2,883 11 (13 ) Foreign exchange contracts 524 1 (3 ) 529 5 (2 ) Total 32,440 495 (107 ) 27,655 165 (148 ) Mortgage banking: Interest rate contracts: Interest rate lock commitments 1,779 18 (1 ) 702 12 — When issued securities, forward rate agreements and forward commitments 2,339 3 (28 ) 1,753 2 (20 ) Other 56 — — 271 2 (1 ) Total 4,174 21 (29 ) 2,726 16 (21 ) MSRs: Interest rate contracts: Receive fixed swaps 3,381 — — 4,328 — — Pay fixed swaps 2,442 1 — 3,224 — — Options 1,203 22 — 3,155 48 (2 ) When issued securities, forward rate agreements and forward commitments 1,841 9 (4 ) 1,590 10 — Other 102 — — 103 — — Total 8,969 32 (4 ) 12,400 58 (2 ) Total derivatives not designated as hedges 45,583 548 (140 ) 42,781 239 (171 ) Total derivatives $ 64,967 656 (167 ) $ 67,738 246 (247 ) Gross amounts in the Consolidated Balance Sheets: Amounts subject to master netting arrangements (57 ) 57 (47 ) 47 Cash collateral (received) posted for amounts subject to master netting arrangements (101 ) 75 (53 ) 82 Net amount $ 498 $ (35 ) $ 146 $ (118 ) Derivative instruments under master netting agreements $ 159 $ (141 ) $ 102 $ (131 ) Derivative instruments not under master netting agreements 497 (26 ) 144 (116 ) Total derivatives $ 656 $ (167 ) $ 246 $ (247 ) The following table presents additional information for fair value hedging relationships: June 30, 2019 December 31, 2018 Hedge Basis Adjustment Hedge Basis Adjustment (Dollars in millions) Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated AFS securities $ 467 $ 13 $ 56 $ 493 $ 5 $ 54 Loans and leases 572 21 (1 ) 562 — (3 ) Long-term debt 13,652 212 (1 ) 15,397 (98 ) 12 Impact of Derivatives on the Consolidated Statements of Income and Comprehensive Income No portion of the change in fair value of derivatives designated as hedges has been excluded from effectiveness testing. The following table summarizes amounts related to cash flow hedges, which consist of interest rate contracts: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Pre-tax gain (loss) recognized in OCI: Deposits $ (33 ) $ 8 $ (43 ) $ 29 Short-term borrowings 12 2 2 2 Long-term debt (58 ) 21 (78 ) 93 Total $ (79 ) $ 31 (119 ) $ 124 Pre-tax gain (loss) reclassified from AOCI into interest expense: Deposits $ (1 ) (1 ) 1 (3 ) Short-term borrowings — — 1 — Long-term debt (1 ) (2 ) 1 (11 ) Total $ (2 ) $ (3 ) $ 3 $ (14 ) The following table summarizes the impact on net interest income related to fair value hedges, which consist of interest rate contracts: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 AFS securities: Amounts related to interest settlements $ — $ (2 ) $ — $ (4 ) Recognized on derivatives (10 ) 5 (17 ) 16 Recognized on hedged items 8 (5 ) 13 (16 ) Net income (expense) recognized (2 ) (2 ) (4 ) $ (4 ) Loans and leases: Amounts related to interest settlements — (1 ) — (1 ) Recognized on derivatives (14 ) 3 (22 ) 6 Recognized on hedged items 14 (3 ) 22 (6 ) Net income (expense) recognized — (1 ) — (1 ) Long-term debt: Amounts related to interest settlements (16 ) (7 ) (38 ) 1 Recognized on derivatives 192 (62 ) 308 (243 ) Recognized on hedged items (188 ) 75 (296 ) 267 Net income (expense) recognized (12 ) 6 (26 ) 25 Net income (expense) recognized, total $ (14 ) $ 3 $ (30 ) $ 20 The following table presents pre-tax gain (loss) recognized in income for derivative instruments not designated as hedges: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Client-related and other risk management: Interest rate contracts Other noninterest income $ 16 $ 10 $ 26 $ 25 Foreign exchange contracts Other noninterest income (1 ) 6 1 13 Mortgage banking: Interest rate contracts Mortgage banking income (2 ) (8 ) (5 ) (4 ) MSRs: Interest rate contracts Mortgage banking income 83 (23 ) 137 (90 ) Total $ 96 $ (15 ) $ 159 $ (56 ) The following table presents information about BB&T's cash flow and fair value hedges: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Cash flow hedges: Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI $ (12 ) $ (18 ) Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) (112 ) (13 ) Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months (45 ) 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 1 year 4 years Fair value hedges: Unrecognized pre-tax net gain (loss) on terminated hedges (to be recognized as interest primarily through 2029) $ (56 ) $ (39 ) Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months (1 ) 15 Derivatives Credit Risk – Dealer Counterparties Credit risk related to derivatives arises when amounts receivable from a counterparty exceed those payable to the same counterparty. The risk of loss is addressed by subjecting dealer counterparties to credit reviews and approvals similar to those used in making loans or other extensions of credit and by requiring collateral. Dealer counterparties operate under agreements to provide cash and/or liquid collateral when unsecured loss positions exceed minimal limits. Derivative contracts with dealer counterparties settle on a monthly, quarterly or semiannual basis, with daily movement of collateral between counterparties required within established netting agreements. BB&T only transacts with dealer counterparties with strong credit standings. Derivatives Credit Risk – Central Clearing Parties With the exception of the central clearing party used for TBA transactions that does not post variation margin to BB&T, central clearing parties exchange cash on a daily basis to settle changes in exposure. Certain derivatives are cleared through central clearing parties that require initial margin collateral. Initial margin collateral requirements are established 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. Derivatives Credit Risk – Risk Participation Agreements BB&T has entered into risk participation agreements to share the credit exposure with other financial institutions on client-related interest rate derivative contracts. These amounts are included with other client-related and other risk management interest rate contracts in the table presenting the impact of derivatives on the consolidated balance sheets. The following table presents additional information related to interest rate derivative risk participation agreements: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Notional amount $ 752 $ 446 Maximum exposure assuming all underlying third party customers referenced in the interest rate contracts defaulted in a zero LIBOR rate environment 47 26 The following table summarizes collateral positions with counterparties: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Dealer counterparties: Cash collateral received from dealer counterparties $ 103 $ 56 Derivatives in a net gain position secured by collateral received 102 55 Unsecured positions in a net gain with dealer counterparties after collateral postings 1 2 Cash collateral posted to dealer counterparties 62 75 Derivatives in a net loss position secured by collateral received 60 76 Additional collateral that would have been posted had BB&T's credit ratings dropped below investment grade — 1 Central clearing parties: Cash collateral, including initial margin, posted to central clearing parties 21 17 Derivatives in a net loss position 24 8 Securities pledged to central clearing parties 138 124 |
Computation of EPS
Computation of EPS | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of EPS | Computation of EPS Basic and diluted EPS calculations are presented in the following table: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except per share data, shares in thousands) 2019 2018 2019 2018 Net income available to common shareholders $ 842 $ 775 $ 1,591 $ 1,520 Weighted average number of common shares 765,958 775,836 765,052 777,716 Effect of dilutive outstanding equity-based awards 8,645 9,914 9,277 10,646 Weighted average number of diluted common shares 774,603 785,750 774,329 788,362 Basic EPS $ 1.10 $ 1.00 $ 2.08 $ 1.95 Diluted EPS $ 1.09 $ 0.99 $ 2.06 $ 1.93 Anti-dilutive awards 26 — 18 45 |
Operating Segments
Operating Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments BB&T's business segment structure aligns with how management reviews performance and makes decisions by client, segment and business unit. There are four major reportable business segments: CB-Retail, CB-Commercial, FS&CF and IH. In addition, there is an OT&C segment. For additional information, see Note 19. Operating Segments of the Annual Report on Form 10-K for the year ended December 31, 2018. The following table presents results by segment: Three Months Ended June 30, CB-Retail CB-Commercial FS&CF 2019 2018 2019 2018 2019 2018 Net interest income (expense) $ 850 $ 853 $ 541 $ 491 $ 197 $ 169 Net intersegment interest income (expense) 126 69 47 54 13 19 Segment net interest income 976 922 588 545 210 188 Allocated provision for credit losses 123 110 39 43 14 (4 ) Segment net interest income after provision 853 812 549 502 196 192 Noninterest income 387 355 114 110 329 303 Noninterest expense 654 659 255 254 311 312 Income (loss) before income taxes 586 508 408 358 214 183 Provision (benefit) for income taxes 141 125 89 80 45 38 Segment net income (loss) $ 445 $ 383 $ 319 $ 278 $ 169 $ 145 IH OT&C (1) Total 2019 2018 2019 2018 2019 2018 Net interest income (expense) $ 35 $ 29 $ 67 $ 115 $ 1,690 $ 1,657 Net intersegment interest income (expense) (10 ) (7 ) (176 ) (135 ) — — Segment net interest income 25 22 (109 ) (20 ) 1,690 1,657 Allocated provision for credit losses 2 — (6 ) (14 ) 172 135 Segment net interest income after provision 23 22 (103 ) (6 ) 1,518 1,522 Noninterest income 570 484 (48 ) (30 ) 1,352 1,222 Noninterest expense 444 408 87 87 1,751 1,720 Income (loss) before income taxes 149 98 (238 ) (123 ) 1,119 1,024 Provision (benefit) for income taxes 38 25 (79 ) (66 ) 234 202 Segment net income (loss) $ 111 $ 73 $ (159 ) $ (57 ) $ 885 $ 822 Six Months Ended June 30, CB-Retail CB-Commercial FS&CF 2019 2018 2019 2018 2019 2018 Net interest income (expense) $ 1,693 $ 1,690 $ 1,077 $ 955 $ 386 $ 328 Net intersegment interest income (expense) 235 117 91 124 34 37 Segment net interest income 1,928 1,807 1,168 1,079 420 365 Allocated provision for credit losses 253 232 58 80 15 (9 ) Segment net interest income after provision 1,675 1,575 1,110 999 405 374 Noninterest income 709 695 223 216 613 604 Noninterest expense 1,299 1,319 506 507 608 613 Income (loss) before income taxes 1,085 951 827 708 410 365 Provision (benefit) for income taxes 261 234 180 159 85 76 Segment net income (loss) $ 824 $ 717 $ 647 $ 549 $ 325 $ 289 Identifiable assets (period end) $ 76,246 $ 72,696 $ 56,450 $ 57,011 $ 33,595 $ 30,446 IH OT&C (1) Total 2019 2018 2019 2018 2019 2018 Net interest income (expense) $ 69 $ 55 $ 161 $ 262 $ 3,386 $ 3,290 Net intersegment interest income (expense) (21 ) (13 ) (339 ) (265 ) — — Segment net interest income 48 42 (178 ) (3 ) 3,386 3,290 Allocated provision for credit losses 5 1 (4 ) (19 ) 327 285 Segment net interest income after provision 43 41 (174 ) 16 3,059 3,005 Noninterest income 1,085 923 (76 ) (36 ) 2,554 2,402 Noninterest expense 861 783 245 184 3,519 3,406 Income (loss) before income taxes 267 181 (495 ) (204 ) 2,094 2,001 Provision (benefit) for income taxes 68 46 (183 ) (127 ) 411 388 Segment net income (loss) $ 199 $ 135 $ (312 ) $ (77 ) $ 1,683 $ 1,613 Identifiable assets (period end) $ 7,162 $ 6,321 $ 57,419 $ 56,207 $ 230,872 $ 222,681 (1) Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassifications | Reclassifications Certain 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. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL, determination of fair value for financial instruments, valuation of MSRs, goodwill, intangible assets and other purchase accounting related adjustments, benefit plan obligations and expenses, and tax assets, liabilities and expense. |
Lessee, Leases | Leases - Lessee BB&T has operating and finance leases for data centers, corporate offices, branches, retail centers, and certain equipment. BB&T determines if an arrangement is a lease at inception. Operating leases with an original lease term in excess of one year are included in other assets and accounts payable and other liabilities in the Consolidated Balance Sheets. Finance leases are included in premises and equipment and long-term debt in the Consolidated Balance Sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating and finance lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. BB&T uses an implicit interest rate in determining the present value of lease payments when readily determinable, and a collateralized incremental borrowing rate when an implicit rate is not available. Lease terms consider options to extend or terminate based on the determination of whether such renewal or termination options are deemed reasonably certain. Rent expense and rental income on operating leases is generally recorded using the straight-line method over the appropriate lease terms. Lease agreements that contain non-lease components are generally accounted for as a single lease component. Variable costs, such as maintenance expenses, property and sales taxes, association dues and index based rate increases, are expensed as they are incurred. |
Lessor, Leases | Leases - Lessor BB&T's commercial lease portfolio consists of dealer-based financing of equipment for small businesses and commercial equipment leasing. The fair market value of the leased asset is generally equal to the original capitalized cost. Assets under operating leases are included in other assets in the Consolidated Balance Sheets. Depreciation expense for assets under operating leases is generally recorded using the straight-line method over the appropriate lease terms in other expense in the Consolidated Statements of Income. |
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 Year 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 established ROU assets of $860 million and lease liabilities of $997 million. The net impact to equity was a reduction of $40 million. There was no material impact to its Consolidated Statements of Income. BB&T adopted the guidance on a prospective basis and did not reassess whether any expired or existing contract contains a lease, the classification of leases or the initial direct costs. Standards Not Yet Adopted 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. The standard also requires expanded disclosures related to credit losses and asset quality. BB&T expects that the ACL could be materially higher; however, the magnitude of the increase, which is highly dependent on existing and forecasted economic conditions at the time of adoption, has not yet been quantified. BB&T performed limited parallel testing in the second quarter of 2019, and is currently conducting a more comprehensive parallel testing program that will include consideration of qualitative adjustments that among other things will include adjustments designed to capture an estimate for the inherent uncertainty related to forecasts of future economic conditions. In light of the anticipated merger with SunTrust, BB&T is also evaluating the impact of the merger on its CECL implementation project to ensure that its consolidated CECL estimate gives appropriate consideration to the acquired SunTrust loan portfolio. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 Year 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 established ROU assets of $860 million and lease liabilities of $997 million. The net impact to equity was a reduction of $40 million. There was no material impact to its Consolidated Statements of Income. BB&T adopted the guidance on a prospective basis and did not reassess whether any expired or existing contract contains a lease, the classification of leases or the initial direct costs. Standards Not Yet Adopted 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. The standard also requires expanded disclosures related to credit losses and asset quality. BB&T expects that the ACL could be materially higher; however, the magnitude of the increase, which is highly dependent on existing and forecasted economic conditions at the time of adoption, has not yet been quantified. BB&T performed limited parallel testing in the second quarter of 2019, and is currently conducting a more comprehensive parallel testing program that will include consideration of qualitative adjustments that among other things will include adjustments designed to capture an estimate for the inherent uncertainty related to forecasts of future economic conditions. In light of the anticipated merger with SunTrust, BB&T is also evaluating the impact of the merger on its CECL implementation project to ensure that its consolidated CECL estimate gives appropriate consideration to the acquired SunTrust loan portfolio. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of AFS Securities | The following tables summarize AFS and HTM securities: June 30, 2019 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 1,120 $ 1 $ 9 $ 1,112 GSE 246 3 2 247 Agency MBS 23,428 184 171 23,441 States and political subdivisions 568 31 12 587 Non-agency MBS 207 175 — 382 Other 33 — — 33 Total AFS securities $ 25,602 $ 394 $ 194 $ 25,802 HTM securities: U.S. Treasury $ 1,099 $ 6 $ — $ 1,105 GSE 2,199 27 — 2,226 Agency MBS 16,186 101 56 16,231 States and political subdivisions 3 — — 3 Other — — — — Total HTM securities $ 19,487 $ 134 $ 56 $ 19,565 December 31, 2018 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 3,503 $ 22 $ 84 $ 3,441 GSE 209 — 9 200 Agency MBS 20,927 15 787 20,155 States and political subdivisions 694 25 18 701 Non-agency MBS 321 184 — 505 Other 35 1 — 36 Total AFS securities $ 25,689 $ 247 $ 898 $ 25,038 HTM securities: U.S. Treasury $ 1,099 $ — $ 6 $ 1,093 GSE 2,199 4 43 2,160 Agency MBS 17,248 27 487 16,788 States and political subdivisions 5 — — 5 Other 1 — — 1 Total HTM securities $ 20,552 $ 31 $ 536 $ 20,047 |
Summary of HTM Securities | The following tables summarize AFS and HTM securities: June 30, 2019 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 1,120 $ 1 $ 9 $ 1,112 GSE 246 3 2 247 Agency MBS 23,428 184 171 23,441 States and political subdivisions 568 31 12 587 Non-agency MBS 207 175 — 382 Other 33 — — 33 Total AFS securities $ 25,602 $ 394 $ 194 $ 25,802 HTM securities: U.S. Treasury $ 1,099 $ 6 $ — $ 1,105 GSE 2,199 27 — 2,226 Agency MBS 16,186 101 56 16,231 States and political subdivisions 3 — — 3 Other — — — — Total HTM securities $ 19,487 $ 134 $ 56 $ 19,565 December 31, 2018 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 3,503 $ 22 $ 84 $ 3,441 GSE 209 — 9 200 Agency MBS 20,927 15 787 20,155 States and political subdivisions 694 25 18 701 Non-agency MBS 321 184 — 505 Other 35 1 — 36 Total AFS securities $ 25,689 $ 247 $ 898 $ 25,038 HTM securities: U.S. Treasury $ 1,099 $ — $ 6 $ 1,093 GSE 2,199 4 43 2,160 Agency MBS 17,248 27 487 16,788 States and political subdivisions 5 — — 5 Other 1 — — 1 Total HTM securities $ 20,552 $ 31 $ 536 $ 20,047 |
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. AFS HTM June 30, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 346 $ 347 $ — $ — Due after one year through five years 1,011 1,002 3,300 3,332 Due after five years through ten years 278 280 563 564 Due after ten years 23,967 24,173 15,624 15,669 Total debt securities $ 25,602 $ 25,802 $ 19,487 $ 19,565 |
Schedule of Fair Values and Gross Unrealized Losses | The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or more Total June 30, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ — $ — $ 666 $ 9 $ 666 $ 9 GSE — — 171 2 171 2 Agency MBS 544 1 10,219 170 10,763 171 States and political subdivisions 101 1 197 11 298 12 Total $ 645 $ 2 $ 11,253 $ 192 $ 11,898 $ 194 HTM securities: Agency MBS 384 3 4,461 53 4,845 56 Total $ 384 $ 3 $ 4,461 $ 53 $ 4,845 $ 56 Less than 12 months 12 months or more Total December 31, 2018 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 111 $ — $ 2,121 $ 84 $ 2,232 $ 84 GSE 3 — 176 9 179 9 Agency MBS 322 2 18,478 785 18,800 787 States and political subdivisions 100 1 288 17 388 18 Total $ 536 $ 3 $ 21,063 $ 895 $ 21,599 $ 898 HTM securities: U.S. Treasury $ 698 $ 3 $ 395 $ 3 $ 1,093 $ 6 GSE — — 1,749 43 1,749 43 Agency MBS 264 3 14,976 484 15,240 487 Total $ 962 $ 6 $ 17,120 $ 530 $ 18,082 $ 536 |
Loans and ACL (Tables)
Loans and ACL (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Aging Analysis of Past Due Loans and Leases | The following tables present loans and leases HFI by aging category: Accruing June 30, 2019 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 63,468 $ 32 $ — $ 193 $ 63,693 CRE 20,686 3 — 33 20,722 Lease financing 2,196 5 — 2 2,203 Retail: Residential mortgage 31,673 480 350 104 32,607 Direct 11,370 58 10 54 11,492 Indirect 17,734 393 7 75 18,209 Revolving credit 3,197 28 14 — 3,239 PCI 378 17 26 — 421 Total $ 150,702 $ 1,016 $ 407 $ 461 $ 152,586 Accruing December 31, 2018 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 61,701 $ 34 $ — $ 200 $ 61,935 CRE 20,990 5 — 65 21,060 Lease financing 2,014 1 — 3 2,018 Retail: Residential mortgage 30,413 456 405 119 31,393 Direct 11,463 61 7 53 11,584 Indirect 16,901 436 6 82 17,425 Revolving credit 3,090 28 14 — 3,132 PCI 413 23 30 — 466 Total $ 146,985 $ 1,044 $ 462 $ 522 $ 149,013 |
Schedule of Carrying Amounts by Risk Rating | 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 rather than reclassifying to nonperforming: June 30, 2019 December 31, 2018 (Dollars in millions) Commercial & Industrial CRE Lease Financing Commercial & Industrial CRE Lease Financing Commercial: Pass $ 62,211 $ 20,315 $ 2,188 $ 60,655 $ 20,712 $ 2,012 Special mention 386 112 1 216 61 — Substandard-performing 903 262 12 864 222 3 Nonperforming 193 33 2 200 65 3 Total $ 63,693 $ 20,722 $ 2,203 $ 61,935 $ 21,060 $ 2,018 Residential Mortgage Direct Indirect Residential Mortgage Direct Indirect Retail: Performing $ 32,503 $ 11,438 $ 18,134 $ 31,274 $ 11,531 $ 17,343 Nonperforming 104 54 75 119 53 82 Total $ 32,607 $ 11,492 $ 18,209 $ 31,393 $ 11,584 $ 17,425 |
Summary of Allowance for Credit Losses | The following tables present activity in the ACL: (Dollars in millions) Balance at Apr 1, 2018 Charge-Offs Recoveries Provision (Benefit) Balance at Jun 30, 2018 Commercial: Commercial and industrial $ 522 $ (23 ) $ 11 $ 25 $ 535 CRE 175 (2 ) 1 17 191 Lease financing 10 (1 ) 1 — 10 Retail: Residential mortgage 216 (5 ) 1 9 221 Direct 99 (17 ) 6 9 97 Indirect 347 (82 ) 17 71 353 Revolving credit 104 (21 ) 5 17 105 PCI 25 — — (7 ) 18 ALLL 1,498 (151 ) 42 141 1,530 RUFC 116 — — (6 ) 110 ACL $ 1,614 $ (151 ) $ 42 $ 135 $ 1,640 (Dollars in millions) Balance at Apr 1, 2019 Charge-Offs Recoveries Provision (Benefit) Balance at Jun 30, 2019 Commercial: Commercial and industrial $ 548 $ (22 ) $ 8 $ 40 $ 574 CRE 196 (18 ) 3 20 201 Lease financing 11 — — (1 ) 10 Retail: Residential mortgage 225 (5 ) — 4 224 Direct 96 (22 ) 7 18 99 Indirect 358 (91 ) 19 73 359 Revolving credit 119 (25 ) 4 22 120 PCI 8 — — — 8 ALLL 1,561 (183 ) 41 176 1,595 RUFC 98 — — (4 ) 94 ACL $ 1,659 $ (183 ) $ 41 $ 172 $ 1,689 (Dollars in millions) Balance at Jan 1, 2018 Charge-Offs Recoveries Provision (Benefit) Balance at Jun 30, 2018 Commercial: Commercial and industrial $ 522 $ (46 ) $ 19 $ 40 $ 535 CRE 160 (8 ) 3 36 191 Lease financing 9 (2 ) 1 2 10 Retail: Residential mortgage 209 (9 ) 1 20 221 Direct 106 (36 ) 12 15 97 Indirect 348 (189 ) 32 162 353 Revolving credit 108 (42 ) 10 29 105 PCI 28 — — (10 ) 18 ALLL 1,490 (332 ) 78 294 1,530 RUFC 119 — — (9 ) 110 ACL $ 1,609 $ (332 ) $ 78 $ 285 $ 1,640 (Dollars in millions) Balance at Jan 1, 2019 Charge-Offs Recoveries Provision (Benefit) Balance at Jun 30, 2019 Commercial: Commercial and industrial $ 546 $ (39 ) $ 14 $ 53 $ 574 CRE 190 (26 ) 4 33 201 Lease financing 11 (1 ) — — 10 Retail: Residential mortgage 232 (10 ) 1 1 224 Direct 97 (40 ) 13 29 99 Indirect 356 (200 ) 36 167 359 Revolving credit 117 (51 ) 10 44 120 PCI 9 — — (1 ) 8 ALLL 1,558 (367 ) 78 326 1,595 RUFC 93 — — 1 94 ACL $ 1,651 $ (367 ) $ 78 $ 327 $ 1,689 |
Schedule Of Loans Collectively Evaluated For Impairment | The following table provides a summary of loans that are collectively evaluated for impairment: June 30, 2019 December 31, 2018 (Dollars in millions) Recorded Investment Related ALLL Recorded Investment Related ALLL Commercial: Commercial and industrial $ 63,383 $ 546 $ 61,629 $ 521 CRE 20,667 197 20,960 181 Lease financing 2,201 10 2,015 11 Retail: Residential mortgage 31,842 168 30,539 164 Direct 11,427 94 11,517 92 Indirect 17,873 298 17,099 299 Revolving credit 3,210 109 3,104 106 PCI 421 8 466 9 Total $ 151,024 $ 1,430 $ 147,329 $ 1,383 |
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 impairment: UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized As of / For The Six Months Ended June 30, 2019 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 321 $ 89 $ 221 $ 28 $ 309 $ 3 CRE 62 5 50 4 100 1 Lease financing 2 — 2 — 2 — Retail: Residential mortgage 813 106 659 56 858 19 Direct 82 26 39 5 66 2 Indirect 346 5 331 61 328 26 Revolving credit 29 — 29 11 29 1 Total $ 1,655 $ 231 $ 1,331 $ 165 $ 1,692 $ 52 UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized As of / For The Year Ended December 31, 2018 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 318 $ 95 $ 211 $ 25 $ 343 $ 6 CRE 102 29 71 9 97 2 Lease financing 3 — 3 — 6 — Retail: Residential mortgage 904 122 732 68 841 34 Direct 86 26 41 5 72 4 Indirect 335 6 320 57 306 46 Revolving credit 28 — 28 11 29 1 Total $ 1,776 $ 278 $ 1,406 $ 175 $ 1,694 $ 93 |
Schedule of Performing and Nonperforming TDRs | The following table presents a summary of TDRs, all of which are considered impaired: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Performing TDRs: Commercial: Commercial and industrial $ 84 $ 65 CRE 8 10 Retail: Residential mortgage 581 656 Direct 53 55 Indirect 315 305 Revolving credit 29 28 Total performing TDRs 1,070 1,119 Nonperforming TDRs (also included in NPL disclosures) 135 176 Total TDRs $ 1,205 $ 1,295 ALLL attributable to TDRs $ 149 $ 146 |
Summary Of Primary Reason Loan Modifications Were Classified as TDRs | The primary reason loan modifications were classified as TDRs is summarized below. Balances represent the recorded investment at the end of the quarter in which the modification was made. Rate modifications consist of TDRs made with below market interest rates, including those that also have modifications of loan structures. 2019 2018 Three Months Ended June 30, Type of Modification ALLL Impact Type of Modification ALLL Impact Rate Structure Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 24 $ 3 $ 1 $ 20 $ 33 $ — CRE — 1 — 8 1 — Retail: Residential mortgage 49 6 3 58 5 4 Direct 2 1 — 2 1 — Indirect 50 1 6 45 1 5 Revolving credit 5 — 1 4 — 1 Re-modification of previously designated TDRs 14 11 — 31 5 — 2019 2018 Six Months Ended June 30, Type of Modification ALLL Impact Type of Modification ALLL Impact Rate Structure Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 50 $ 6 $ 2 $ 30 $ 43 $ — CRE 1 1 — 27 2 — Retail: Residential mortgage 122 14 7 140 15 9 Direct 5 2 — 4 1 — Indirect 98 2 12 87 2 10 Revolving credit 11 — 2 9 — 2 Re-modification of previously designated TDRs 37 16 — 52 10 — |
Other Assets and Liabilites (Ta
Other Assets and Liabilites (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets and Liabilities | |
Schedule of Right of Use Assets and Future Maturity of Lease Liabilities | The following table presents additional information on operating and finance leases: June 30, 2019 Operating Leases Finance Leases ROU assets $ 842 $ 18 Maturities of lease liabilities: 2019 $ 86 $ 4 2020 195 7 2021 172 6 2022 148 5 2023 118 3 2024 92 2 Thereafter 289 3 Total lease payments 1,100 30 Less: imputed interest 139 5 Total lease liabilities $ 961 $ 25 Weighted average remaining term 7.5 years 5.0 years Weighted average discount rate 3.1 % 7.1 % |
Schedule of Assets Held Under Operating Leases and Related Activities | The following tables present a summary of assets under operating leases and activity related to assets under operating leases. These tables exclude subleases on assets included in premises and equipment. (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Assets held under operating leases $ 1,359 $ 1,378 Accumulated depreciation (375 ) (374 ) Net $ 984 $ 1,004 Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Depreciation expense for assets under operating leases $ 29 $ 30 $ 58 $ 60 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identifiable Intangible Assets Subject to Amortization | The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets: June 30, 2019 December 31, 2018 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount CDI $ 605 $ (482 ) $ 123 $ 605 $ (460 ) $ 145 Other, primarily customer relationship intangibles 1,331 (742 ) 589 1,329 (716 ) 613 Total $ 1,936 $ (1,224 ) $ 712 $ 1,934 $ (1,176 ) $ 758 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Summary of Residential Mortgage Banking Activities | The following tables summarize residential mortgage banking activities: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 UPB of residential mortgage loan servicing portfolio $ 117,912 $ 118,605 UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate 85,060 87,270 Mortgage loans sold with recourse 387 419 Maximum recourse exposure from mortgage loans sold with recourse liability 209 223 Indemnification, recourse and repurchase reserves 21 24 As of / For the Six Months Ended June 30, 2019 2018 UPB of residential mortgage loans sold from LHFS $ 3,597 $ 5,536 Pre-tax gains recognized on mortgage loans sold and held for sale 48 74 Servicing fees recognized from mortgage loans serviced for others 123 128 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others 0.28 % 0.28 % Weighted average interest rate on mortgage loans serviced for others 4.07 4.01 |
Analysis of Activity in Residential MSRs | The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value: Six Months Ended June 30, 2019 2018 Residential MSRs, carrying value, January 1 $ 957 $ 914 Additions 40 63 Change in fair value due to changes in valuation inputs or assumptions: Prepayment speeds (134 ) 67 OAS 37 17 Servicing costs — — Realization of expected net servicing cash flows, passage of time and other (70 ) (70 ) Residential MSRs, carrying value, June 30 $ 830 $ 991 Gains (losses) on derivative financial instruments used to mitigate the income statement effect of changes in residential MSR fair value $ 129 $ (84 ) |
Residential MSRs Sensitivity | The sensitivity of the fair value of the residential MSRs to changes in key assumptions is presented in the following table: June 30, 2019 December 31, 2018 Range Weighted Average Range Weighted Average (Dollars in millions) Min Max Min Max Prepayment speed 10.3 % 13.4 % 12.9 % 9.1 % 10.5 % 9.9 % Effect on fair value of a 10% increase $ (40 ) $ (34 ) Effect on fair value of a 20% increase (77 ) (66 ) OAS 5.3 % 7.8 % 5.9 % 6.6 % 8.3 % 7.0 % Effect on fair value of a 10% increase $ (18 ) $ (24 ) Effect on fair value of a 20% increase (34 ) (47 ) Composition of loans serviced for others: Fixed-rate residential mortgage loans 99.2 % 99.2 % Adjustable-rate residential mortgage loans 0.8 0.8 Total 100.0 % 100.0 % Weighted average life 5.1 years 6.1 years |
Summary of Commercial Mortgage Banking Activities | The following table summarizes commercial mortgage banking activities for the periods presented: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 UPB of CRE mortgages serviced for others $ 27,683 $ 27,761 CRE mortgages serviced for others covered by recourse provisions 4,691 4,699 Maximum recourse exposure from CRE mortgages sold with recourse liability 1,312 1,317 Recorded reserves related to recourse exposure 6 6 CRE mortgages originated during the year-to-date period 3,218 7,072 Commercial MSRs at fair value 140 151 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
Summary of Deposits | The composition of deposits is presented in the following table: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Noninterest-bearing deposits $ 52,458 $ 53,025 Interest checking 28,021 28,130 Money market and savings 63,972 63,467 Time deposits 15,070 16,577 Total deposits $ 159,521 $ 161,199 Time deposits greater than $250,000 $ 3,868 $ 5,713 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt, Interest Rates and Maturity Dates | The following table presents a summary of long-term debt: Jun 30, 2019 Dec 31, 2018 Stated Rate Effective Rate Carrying Amount Carrying Amount (Dollars in millions) Maturity Min Max BB&T Corporation: Fixed rate senior notes 2020 to 2025 2.05 % 5.38 % 2.91 % $ 10,675 $ 10,408 Floating rate senior notes 2020 2022 2.80 3.31 3.08 1,948 2,398 Fixed rate subordinated notes 2019 2029 3.88 5.25 2.50 1,586 903 Branch Bank: Fixed rate senior notes 2020 2022 2.10 2.85 2.54 3,449 4,895 Floating rate senior notes 2020 2020 2.74 3.05 3.01 900 1,149 Fixed rate subordinated notes 2025 2026 3.63 3.80 3.09 2,178 2,075 FHLB advances (1) 2019 2034 — 5.50 2.77 1,743 1,749 Other long-term debt 161 132 Total long-term debt $ 22,640 $ 23,709 (1) FHLB advances had a weighted average maturity of 3.5 years at June 30, 2019 . |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Summary of Cash Dividends Declared per Share | The following table presents the dividends declared related to common stock. For information related to preferred stock dividends, see Note 9. Shareholders' Equity of the Annual Report on Form 10-K for the year ended December 31, 2018 . Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cash dividends declared per share $ 0.405 $ 0.375 $ 0.810 $ 0.750 |
Rollforward of RSUs, PSUs and Restricted Shares | The following table presents the activity related to awards of RSUs, PSUs and restricted shares: (Shares in thousands) Units/Shares Wtd. Avg. Grant Date Fair Value Nonvested at January 1, 2019 12,060 $ 38.03 Granted 3,914 44.39 Vested (3,262 ) 35.07 Forfeited (204 ) 43.86 Nonvested at June 30, 2019 12,508 40.69 |
AOCI (Tables)
AOCI (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in AOCI | AOCI includes the after-tax change in unrecognized net costs related to defined benefit pension and OPEB plans, and unrealized gains and losses on cash flow hedges and AFS securities. Three Months Ended Pension and OPEB Costs Cash Flow Hedges AFS Securities Other, net Total AOCI balance, April 1, 2018 $ (990 ) $ (14 ) $ (624 ) $ (17 ) $ (1,645 ) OCI before reclassifications, net of tax — 23 (100 ) (2 ) (79 ) Amounts reclassified from AOCI: Before tax 18 3 1 1 23 Tax effect 5 — — — 5 Amounts reclassified, net of tax 13 3 1 1 18 Total OCI, net of tax 13 26 (99 ) (1 ) (61 ) AOCI balance, June 30, 2018 $ (977 ) $ 12 $ (723 ) $ (18 ) $ (1,706 ) AOCI balance, April 1, 2019 $ (1,147 ) $ (65 ) $ (191 ) $ (18 ) $ (1,421 ) OCI before reclassifications, net of tax — (61 ) 346 — 285 Amounts reclassified from AOCI: Before tax 24 2 (6 ) — 20 Tax effect 5 — (2 ) — 3 Amounts reclassified, net of tax 19 2 (4 ) — 17 Total OCI, net of tax 19 (59 ) 342 — 302 AOCI balance, June 30, 2019 $ (1,128 ) $ (124 ) $ 151 $ (18 ) $ (1,119 ) Six Months Ended June 30, 2019 and 2018 Pension and OPEB Costs Cash Flow Hedges AFS Securities Other, net Total AOCI balance, January 1, 2018 $ (1,004 ) $ (92 ) $ (356 ) $ (15 ) $ (1,467 ) OCI before reclassifications, net of tax — 93 (382 ) (4 ) (293 ) Amounts reclassified from AOCI: Before tax 36 14 20 1 71 Tax effect 9 3 5 — 17 Amounts reclassified, net of tax 27 11 15 1 54 Total OCI, net of tax 27 104 (367 ) (3 ) (239 ) AOCI balance, June 30, 2018 (977 ) 12 (723 ) (18 ) (1,706 ) AOCI balance, January 1, 2019 $ (1,164 ) $ (31 ) $ (500 ) $ (20 ) $ (1,715 ) OCI before reclassifications, net of tax — (91 ) 660 2 571 Amounts reclassified from AOCI: Before tax 47 (3 ) (12 ) — 32 Tax effect 11 (1 ) (3 ) — 7 Amounts reclassified, net of tax 36 (2 ) (9 ) — 25 Total OCI, net of tax 36 (93 ) 651 2 596 AOCI balance, June 30, 2019 $ (1,128 ) $ (124 ) $ 151 $ (18 ) $ (1,119 ) Primary income statement location of amounts reclassified from AOCI Other expense Net interest income Net interest income Net interest income |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for defined benefit pension plans are summarized in the following table: Three Months Ended June 30, Six Months Ended June 30, Location 2019 2018 2019 2018 Service cost Personnel expense $ 55 $ 60 $ 109 $ 120 Interest cost Other expense 54 50 111 100 Estimated return on plan assets Other expense (114 ) (112 ) (227 ) (224 ) Amortization and other Other expense 26 19 51 39 Net periodic benefit cost $ 21 $ 17 $ 44 $ 35 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Contingencies | The following table summarizes certain commitments and contingencies . Refer to Note 15. Fair Value Disclosures for additional disclosures related to off-balance sheet financial instruments. (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Investments in affordable housing projects: Carrying amount $ 2,178 $ 2,088 Amount of future funding commitments included in carrying amount 914 919 Lending exposure 410 460 Tax credits subject to recapture 513 523 Private equity investments: Carrying amount 525 458 Amount of future funding commitments not included in carrying amount 312 331 |
Schedule of 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, excluding assets related to employee benefit plans: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Pledged securities $ 13,782 $ 13,237 Pledged loans 79,303 77,847 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis: June 30, 2019 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: AFS securities: U.S. Treasury $ 1,112 $ — $ 1,112 $ — $ — GSE 247 — 247 — — Agency MBS 23,441 — 23,441 — — States and political subdivisions 587 — 587 — — Non-agency MBS 382 — — 382 — Other 33 — 33 — — Total AFS securities 25,802 — 25,420 382 — LHFS 1,237 — 1,237 — — MSRs 970 — — 970 — Other assets: Trading and equity securities 1,848 413 1,435 — — Derivative assets 498 — 638 18 (158 ) Private equity investments 449 — — 449 — Total assets $ 30,804 $ 413 $ 28,730 $ 1,819 $ (158 ) Liabilities: Derivative liabilities $ 35 $ — $ 156 $ 11 $ (132 ) Securities sold short 188 — 188 — — Total liabilities $ 223 $ — $ 344 $ 11 $ (132 ) December 31, 2018 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: AFS securities: U.S. Treasury $ 3,441 $ — $ 3,441 $ — $ — GSE 200 — 200 — — Agency MBS 20,155 — 20,155 — — States and political subdivisions 701 — 701 — — Non-agency MBS 505 — 114 391 — Other 36 — 36 — — Total AFS securities 25,038 — 24,647 391 — LHFS 988 — 988 — — MSRs 1,108 — — 1,108 — Other assets: Trading and equity securities 767 374 390 3 — Derivative assets 246 — 234 12 — Private equity investments 393 — — 393 — Total assets $ 28,540 $ 374 $ 26,259 $ 1,907 $ — Liabilities: Derivative liabilities $ 247 $ 1 $ 246 $ — $ — Securities sold short 145 — 145 — — Total liabilities $ 392 $ 1 $ 391 $ — $ — |
Rollforward of Level 3 Assets and Liabilities | Activity for Level 3 assets and liabilities is summarized below: Three Months Ended Trading and Equity Securities Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at April 1, 2018 $ — $ 441 $ 1,119 $ 7 $ 400 Total realized and unrealized gains (losses): Included in earnings — 7 23 1 5 Included in unrealized net holding gains (losses) in OCI — (9 ) — — — Purchases 1 — — — 3 Issuances — — 46 11 — Sales (1 ) — — — — Settlements — (14 ) (45 ) (15 ) (9 ) Balance at June 30, 2018 $ — $ 425 $ 1,143 $ 4 $ 399 Balance at April 1, 2019 $ 11 $ 386 $ 1,036 $ 7 $ 388 Total realized and unrealized gains (losses): Included in earnings — (7 ) (51 ) 13 1 Included in unrealized net holding gains (losses) in OCI — 11 — — — Purchases — — — — 61 Issuances — — 30 17 — Sales (11 ) — — — (1 ) Settlements — (8 ) (45 ) (20 ) — Transfers into Level 3 — — — (10 ) — Balance at June 30, 2019 $ — $ 382 $ 970 $ 7 $ 449 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2019 $ — $ (7 ) $ (51 ) $ 17 $ — Six Months Ended June 30, 2019 and 2018 Trading and Equity Securities Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at January 1, 2018 $ — $ 432 $ 1,056 $ 3 $ 404 Total realized and unrealized gains (losses): Included in earnings — 6 91 1 11 Included in unrealized net holding gains (losses) in OCI — 14 — — — Purchases 1 — — — 27 Issuances — — 83 6 — Sales (1 ) — — — (24 ) Settlements — (27 ) (87 ) (6 ) (19 ) Balance at June 30, 2018 $ — $ 425 $ 1,143 $ 4 $ 399 Balance at January 1, 2019 $ 3 $ 391 $ 1,108 $ 12 $ 393 Total realized and unrealized gains (losses): Included in earnings — (5 ) (105 ) 21 24 Included in unrealized net holding gains (losses) in OCI — 12 — — — Purchases 15 — — — 68 Issuances — — 52 34 — Sales (18 ) — — — (34 ) Settlements — (16 ) (85 ) (50 ) (2 ) Transfers into Level 3 — — — (10 ) — Balance at June 30, 2019 $ — $ 382 $ 970 $ 7 $ 449 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2019 $ — $ (5 ) $ (105 ) $ 18 $ 4 Primary income statement location of realized gains (losses) included in earnings Interest income Interest income Mortgage banking income Mortgage banking income Other 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: June 30, 2019 December 31, 2018 (Dollars in millions) Fair Value UPB Difference Fair Value UPB Difference LHFS at fair value $ 1,237 $ 1,221 $ 16 $ 988 $ 975 $ 13 |
Assets Measured at Fair Value on a Nonrecurring Basis | The following table provides information about certain assets measured at fair value on a nonrecurring basis, which are primarily collateral dependent and may be subject to liquidity adjustments. The carrying values represent end of period values, which approximate the fair value measurements that occurred on the various measurement dates throughout the period. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end. These assets are considered to be Level 3 assets (excludes PCI). 2019 2018 As of / For The Six Months Ended June 30, Carrying Value Valuation Adjustments Carrying Value Valuation Adjustments Impaired loans $ 113 $ (20 ) $ 174 $ (22 ) Foreclosed real estate 36 (117 ) 43 (114 ) |
Carrying Amounts and Fair Value of Financial Assets and Liabilities Not Recorded at Fair Value | Financial assets and liabilities not recorded at fair value are summarized below: June 30, 2019 December 31, 2018 (Dollars in millions) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: HTM securities Level 2 $ 19,487 $ 19,565 $ 20,552 $ 20,047 Loans and leases HFI, net of ALLL Level 3 150,991 150,295 147,455 145,591 Financial liabilities: Time deposits Level 2 15,070 15,141 16,577 16,617 Long-term debt Level 2 22,640 23,005 23,709 23,723 |
Selected Information Pertaining to Off-Balance Sheet Financial Instruments | The following is a summary of selected information pertaining to off-balance sheet financial instruments: June 30, 2019 December 31, 2018 (Dollars in millions) Notional/Contract Amount Fair Value Notional/Contract Amount Fair Value Commitments to extend, originate or purchase credit $ 75,677 $ 262 $ 72,435 $ 280 Residential mortgage loans sold with recourse 387 3 419 3 CRE mortgages serviced for others covered by recourse provisions 4,691 6 4,699 6 Letters of credit 2,269 16 2,389 18 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Strategies | The following table provides a summary of derivative strategies and the related accounting treatment: Cash Flow Hedges Fair Value Hedges Derivatives Not Designated as Hedges Risk exposure Variability in cash flows of interest payments on floating rate business loans, overnight funding and various LIBOR funding instruments. Changes in value on fixed rate long-term debt, CDs, FHLB advances, loans and state and political subdivision securities due to changes in interest rates. Risk associated with an asset or liability, including mortgage banking operations and MSRs, or for client needs. Includes exposure to changes in market rates and conditions subsequent to the interest rate lock and funding date for mortgage loans originated for sale. Risk management objective Hedge the variability in the interest payments and receipts on future cash flows for forecasted transactions related to the first unhedged payments and receipts of variable interest. Convert the fixed rate paid or received to a floating rate, primarily through the use of swaps. For interest rate lock commitment derivatives and LHFS, use mortgage-based derivatives such as forward commitments and options to mitigate market risk. For MSRs, mitigate the income statement effect of changes in the fair value of the MSRs. For client swaps, hedges are executed with dealer counterparties to offset market risk. Treatment during the hedge period Changes in value of the hedging instruments are recognized in AOCI until the related cash flows from the hedged item are recognized in earnings. Changes in value of both the hedging instruments and the assets or liabilities being hedged are recognized in the income statement line item associated with the instrument being hedged. Entire change in fair value recognized in current period income. Treatment if hedge ceases to be highly effective or is terminated Hedge is dedesignated. Changes in value recorded in AOCI before dedesignation are amortized to yield over the period the forecasted hedged transactions impact earnings. If hedged item remains outstanding, the basis adjustment that resulted from hedging is amortized into earnings over the lesser of the designated hedged period or the maturity date of the instrument, and cash flows from terminations are reported in the same category as the cash flows from the hedged item. Not applicable Treatment if transaction is no longer probable of occurring during forecast period or within a short period thereafter Hedge accounting ceases and any gain or loss in AOCI is reported in earnings immediately. Not applicable Not applicable |
Schedule of Derivative Instruments | The following table presents the notional amount and estimated fair value of derivative instruments: June 30, 2019 December 31, 2018 Hedged Item or Transaction Notional Amount Fair Value Notional Amount Fair Value (Dollars in millions) Gain Loss Gain Loss Cash flow hedges: Interest rate contracts: Pay fixed swaps 3 mo. LIBOR funding $ 2,500 $ — $ — $ 6,500 $ — $ — Fair value hedges: Interest rate contracts: Receive fixed swaps Long-term debt 11,529 108 (25 ) 12,908 5 (74 ) Options Long-term debt 4,785 — (2 ) 4,785 — (2 ) Pay fixed swaps Commercial loans 419 — — 505 2 — Pay fixed swaps Municipal securities 151 — — 259 — — Total 16,884 108 (27 ) 18,457 7 (76 ) Not designated as hedges: Client-related and other risk management: Interest rate contracts: Receive fixed swaps 12,709 471 (6 ) 11,577 128 (98 ) Pay fixed swaps 12,520 1 (68 ) 11,523 19 (32 ) Other 1,342 2 (3 ) 1,143 2 (3 ) Forward commitments 5,345 20 (27 ) 2,883 11 (13 ) Foreign exchange contracts 524 1 (3 ) 529 5 (2 ) Total 32,440 495 (107 ) 27,655 165 (148 ) Mortgage banking: Interest rate contracts: Interest rate lock commitments 1,779 18 (1 ) 702 12 — When issued securities, forward rate agreements and forward commitments 2,339 3 (28 ) 1,753 2 (20 ) Other 56 — — 271 2 (1 ) Total 4,174 21 (29 ) 2,726 16 (21 ) MSRs: Interest rate contracts: Receive fixed swaps 3,381 — — 4,328 — — Pay fixed swaps 2,442 1 — 3,224 — — Options 1,203 22 — 3,155 48 (2 ) When issued securities, forward rate agreements and forward commitments 1,841 9 (4 ) 1,590 10 — Other 102 — — 103 — — Total 8,969 32 (4 ) 12,400 58 (2 ) Total derivatives not designated as hedges 45,583 548 (140 ) 42,781 239 (171 ) Total derivatives $ 64,967 656 (167 ) $ 67,738 246 (247 ) Gross amounts in the Consolidated Balance Sheets: Amounts subject to master netting arrangements (57 ) 57 (47 ) 47 Cash collateral (received) posted for amounts subject to master netting arrangements (101 ) 75 (53 ) 82 Net amount $ 498 $ (35 ) $ 146 $ (118 ) Derivative instruments under master netting agreements $ 159 $ (141 ) $ 102 $ (131 ) Derivative instruments not under master netting agreements 497 (26 ) 144 (116 ) Total derivatives $ 656 $ (167 ) $ 246 $ (247 ) |
Schedule of Fair Value Hedging Basis Adjustments | The following table presents additional information for fair value hedging relationships: June 30, 2019 December 31, 2018 Hedge Basis Adjustment Hedge Basis Adjustment (Dollars in millions) Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated AFS securities $ 467 $ 13 $ 56 $ 493 $ 5 $ 54 Loans and leases 572 21 (1 ) 562 — (3 ) Long-term debt 13,652 212 (1 ) 15,397 (98 ) 12 |
Impact of Derivatives on the Consolidated Statements of Income and Comprehensive Income | The following table summarizes amounts related to cash flow hedges, which consist of interest rate contracts: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Pre-tax gain (loss) recognized in OCI: Deposits $ (33 ) $ 8 $ (43 ) $ 29 Short-term borrowings 12 2 2 2 Long-term debt (58 ) 21 (78 ) 93 Total $ (79 ) $ 31 (119 ) $ 124 Pre-tax gain (loss) reclassified from AOCI into interest expense: Deposits $ (1 ) (1 ) 1 (3 ) Short-term borrowings — — 1 — Long-term debt (1 ) (2 ) 1 (11 ) Total $ (2 ) $ (3 ) $ 3 $ (14 ) The following table summarizes the impact on net interest income related to fair value hedges, which consist of interest rate contracts: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 AFS securities: Amounts related to interest settlements $ — $ (2 ) $ — $ (4 ) Recognized on derivatives (10 ) 5 (17 ) 16 Recognized on hedged items 8 (5 ) 13 (16 ) Net income (expense) recognized (2 ) (2 ) (4 ) $ (4 ) Loans and leases: Amounts related to interest settlements — (1 ) — (1 ) Recognized on derivatives (14 ) 3 (22 ) 6 Recognized on hedged items 14 (3 ) 22 (6 ) Net income (expense) recognized — (1 ) — (1 ) Long-term debt: Amounts related to interest settlements (16 ) (7 ) (38 ) 1 Recognized on derivatives 192 (62 ) 308 (243 ) Recognized on hedged items (188 ) 75 (296 ) 267 Net income (expense) recognized (12 ) 6 (26 ) 25 Net income (expense) recognized, total $ (14 ) $ 3 $ (30 ) $ 20 The following table presents pre-tax gain (loss) recognized in income for derivative instruments not designated as hedges: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2019 2018 2019 2018 Client-related and other risk management: Interest rate contracts Other noninterest income $ 16 $ 10 $ 26 $ 25 Foreign exchange contracts Other noninterest income (1 ) 6 1 13 Mortgage banking: Interest rate contracts Mortgage banking income (2 ) (8 ) (5 ) (4 ) MSRs: Interest rate contracts Mortgage banking income 83 (23 ) 137 (90 ) Total $ 96 $ (15 ) $ 159 $ (56 ) |
Deferred Gains and Losses from Hedges | The following table presents information about BB&T's cash flow and fair value hedges: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Cash flow hedges: Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI $ (12 ) $ (18 ) Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) (112 ) (13 ) Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months (45 ) 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 1 year 4 years Fair value hedges: Unrecognized pre-tax net gain (loss) on terminated hedges (to be recognized as interest primarily through 2029) $ (56 ) $ (39 ) Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months (1 ) 15 |
Derivatives Credit Risk - Risk Participation Agreements | The following table presents additional information related to interest rate derivative risk participation agreements: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Notional amount $ 752 $ 446 Maximum exposure assuming all underlying third party customers referenced in the interest rate contracts defaulted in a zero LIBOR rate environment 47 26 |
Schedule of Derivative Instruments Summary of Collateral Positions with Counterparties | The following table summarizes collateral positions with counterparties: (Dollars in millions) Jun 30, 2019 Dec 31, 2018 Dealer counterparties: Cash collateral received from dealer counterparties $ 103 $ 56 Derivatives in a net gain position secured by collateral received 102 55 Unsecured positions in a net gain with dealer counterparties after collateral postings 1 2 Cash collateral posted to dealer counterparties 62 75 Derivatives in a net loss position secured by collateral received 60 76 Additional collateral that would have been posted had BB&T's credit ratings dropped below investment grade — 1 Central clearing parties: Cash collateral, including initial margin, posted to central clearing parties 21 17 Derivatives in a net loss position 24 8 Securities pledged to central clearing parties 138 124 |
Computation of EPS (Tables)
Computation of EPS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS | Basic and diluted EPS calculations are presented in the following table: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except per share data, shares in thousands) 2019 2018 2019 2018 Net income available to common shareholders $ 842 $ 775 $ 1,591 $ 1,520 Weighted average number of common shares 765,958 775,836 765,052 777,716 Effect of dilutive outstanding equity-based awards 8,645 9,914 9,277 10,646 Weighted average number of diluted common shares 774,603 785,750 774,329 788,362 Basic EPS $ 1.10 $ 1.00 $ 2.08 $ 1.95 Diluted EPS $ 1.09 $ 0.99 $ 2.06 $ 1.93 Anti-dilutive awards 26 — 18 45 |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents results by segment: Three Months Ended June 30, CB-Retail CB-Commercial FS&CF 2019 2018 2019 2018 2019 2018 Net interest income (expense) $ 850 $ 853 $ 541 $ 491 $ 197 $ 169 Net intersegment interest income (expense) 126 69 47 54 13 19 Segment net interest income 976 922 588 545 210 188 Allocated provision for credit losses 123 110 39 43 14 (4 ) Segment net interest income after provision 853 812 549 502 196 192 Noninterest income 387 355 114 110 329 303 Noninterest expense 654 659 255 254 311 312 Income (loss) before income taxes 586 508 408 358 214 183 Provision (benefit) for income taxes 141 125 89 80 45 38 Segment net income (loss) $ 445 $ 383 $ 319 $ 278 $ 169 $ 145 IH OT&C (1) Total 2019 2018 2019 2018 2019 2018 Net interest income (expense) $ 35 $ 29 $ 67 $ 115 $ 1,690 $ 1,657 Net intersegment interest income (expense) (10 ) (7 ) (176 ) (135 ) — — Segment net interest income 25 22 (109 ) (20 ) 1,690 1,657 Allocated provision for credit losses 2 — (6 ) (14 ) 172 135 Segment net interest income after provision 23 22 (103 ) (6 ) 1,518 1,522 Noninterest income 570 484 (48 ) (30 ) 1,352 1,222 Noninterest expense 444 408 87 87 1,751 1,720 Income (loss) before income taxes 149 98 (238 ) (123 ) 1,119 1,024 Provision (benefit) for income taxes 38 25 (79 ) (66 ) 234 202 Segment net income (loss) $ 111 $ 73 $ (159 ) $ (57 ) $ 885 $ 822 Six Months Ended June 30, CB-Retail CB-Commercial FS&CF 2019 2018 2019 2018 2019 2018 Net interest income (expense) $ 1,693 $ 1,690 $ 1,077 $ 955 $ 386 $ 328 Net intersegment interest income (expense) 235 117 91 124 34 37 Segment net interest income 1,928 1,807 1,168 1,079 420 365 Allocated provision for credit losses 253 232 58 80 15 (9 ) Segment net interest income after provision 1,675 1,575 1,110 999 405 374 Noninterest income 709 695 223 216 613 604 Noninterest expense 1,299 1,319 506 507 608 613 Income (loss) before income taxes 1,085 951 827 708 410 365 Provision (benefit) for income taxes 261 234 180 159 85 76 Segment net income (loss) $ 824 $ 717 $ 647 $ 549 $ 325 $ 289 Identifiable assets (period end) $ 76,246 $ 72,696 $ 56,450 $ 57,011 $ 33,595 $ 30,446 IH OT&C (1) Total 2019 2018 2019 2018 2019 2018 Net interest income (expense) $ 69 $ 55 $ 161 $ 262 $ 3,386 $ 3,290 Net intersegment interest income (expense) (21 ) (13 ) (339 ) (265 ) — — Segment net interest income 48 42 (178 ) (3 ) 3,386 3,290 Allocated provision for credit losses 5 1 (4 ) (19 ) 327 285 Segment net interest income after provision 43 41 (174 ) 16 3,059 3,005 Noninterest income 1,085 923 (76 ) (36 ) 2,554 2,402 Noninterest expense 861 783 245 184 3,519 3,406 Income (loss) before income taxes 267 181 (495 ) (204 ) 2,094 2,001 Provision (benefit) for income taxes 68 46 (183 ) (127 ) 411 388 Segment net income (loss) $ 199 $ 135 $ (312 ) $ (77 ) $ 1,683 $ 1,613 Identifiable assets (period end) $ 7,162 $ 6,321 $ 57,419 $ 56,207 $ 230,872 $ 222,681 (1) Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure. |
Basis of Presentation -Narrativ
Basis of Presentation -Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase in assets | $ 842 | |||||
Increase in liabilities | 961 | |||||
Decrease in shareholders' equity | 31,764 | $ 30,883 | $ 30,178 | $ 29,832 | $ 29,662 | $ 29,695 |
Estimated Impact of Lease Accounting Standard | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase in assets | 860 | |||||
Increase in liabilities | 997 | |||||
Decrease in shareholders' equity | $ 40 |
Business Combinations - Narativ
Business Combinations - Narative (Details) $ in Billions | Feb. 07, 2019USD ($)shares |
Business Acquisition [Line Items] | |
mutual break-up fee | $ | $ 1.1 |
BB&T Corporation | |
Business Acquisition [Line Items] | |
Business Combination Equity Interest Received | shares | 1.295 |
Securities - Narrative (Details
Securities - Narrative (Details) $ in Billions | Jun. 30, 2019USD ($) |
FNMA investments | |
Debt Securities Exceeding Ten Percent of Stockholders Equity [Line Items] | |
Securities, amortized cost | $ 13.6 |
Securities, fair value | 13.6 |
FHLMC investments | |
Debt Securities Exceeding Ten Percent of Stockholders Equity [Line Items] | |
Securities, amortized cost | 9.5 |
Securities, fair value | $ 9.5 |
Securities - Amortized Cost, Gr
Securities - Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
AFS securities | ||
AFS securities, Amortized Cost | $ 25,602 | $ 25,689 |
Gross Unrealized Gains | 394 | 247 |
Gross Unrealized Losses | 194 | 898 |
AFS securities, Fair Value | 25,802 | 25,038 |
HTM securities | ||
HTM securities, Amortized Cost | 19,487 | 20,552 |
Gross Unrealized Gains | 134 | 31 |
Gross Unrealized Losses | 56 | 536 |
HTM securities, Fair Value | 19,565 | 20,047 |
U.S. Treasury | ||
AFS securities | ||
AFS securities, Amortized Cost | 1,120 | 3,503 |
Gross Unrealized Gains | 1 | 22 |
Gross Unrealized Losses | 9 | 84 |
AFS securities, Fair Value | 1,112 | 3,441 |
HTM securities | ||
HTM securities, Amortized Cost | 1,099 | 1,099 |
Gross Unrealized Gains | 6 | 0 |
Gross Unrealized Losses | 0 | 6 |
HTM securities, Fair Value | 1,105 | 1,093 |
GSE | ||
AFS securities | ||
AFS securities, Amortized Cost | 246 | 209 |
Gross Unrealized Gains | 3 | 0 |
Gross Unrealized Losses | 2 | 9 |
AFS securities, Fair Value | 247 | 200 |
HTM securities | ||
HTM securities, Amortized Cost | 2,199 | 2,199 |
Gross Unrealized Gains | 27 | 4 |
Gross Unrealized Losses | 0 | 43 |
HTM securities, Fair Value | 2,226 | 2,160 |
Agency MBS | ||
AFS securities | ||
AFS securities, Amortized Cost | 23,428 | 20,927 |
Gross Unrealized Gains | 184 | 15 |
Gross Unrealized Losses | 171 | 787 |
AFS securities, Fair Value | 23,441 | 20,155 |
HTM securities | ||
HTM securities, Amortized Cost | 16,186 | 17,248 |
Gross Unrealized Gains | 101 | 27 |
Gross Unrealized Losses | 56 | 487 |
HTM securities, Fair Value | 16,231 | 16,788 |
States and political subdivisions | ||
AFS securities | ||
AFS securities, Amortized Cost | 568 | 694 |
Gross Unrealized Gains | 31 | 25 |
Gross Unrealized Losses | 12 | 18 |
AFS securities, Fair Value | 587 | 701 |
HTM securities | ||
HTM securities, Amortized Cost | 3 | 5 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
HTM securities, Fair Value | 3 | 5 |
Non-agency MBS | ||
AFS securities | ||
AFS securities, Amortized Cost | 207 | 321 |
Gross Unrealized Gains | 175 | 184 |
Gross Unrealized Losses | 0 | 0 |
AFS securities, Fair Value | 382 | 505 |
Other | ||
AFS securities | ||
AFS securities, Amortized Cost | 33 | 35 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | 0 |
AFS securities, Fair Value | 33 | 36 |
HTM securities | ||
HTM securities, Amortized Cost | 0 | 1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
HTM securities, Fair Value | $ 0 | $ 1 |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value by Contractual Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
AFS, Amortized Cost | ||
Due in one year or less | $ 346 | |
Due after one year through five years | 1,011 | |
Due after five years through ten years | 278 | |
Due after ten years | 23,967 | |
Total debt securities | 25,602 | $ 25,689 |
AFS, Fair Value | ||
Due in one year or less | 347 | |
Due after one year through five years | 1,002 | |
Due after five years through ten years | 280 | |
Due after ten years | 24,173 | |
Total debt securities | 25,802 | 25,038 |
HTM, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 3,300 | |
Due after five years through ten years | 563 | |
Due after ten years | 15,624 | |
Total debt securities | 19,487 | 20,552 |
HTM, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 3,332 | |
Due after five years through ten years | 564 | |
Due after ten years | 15,669 | |
Total debt securities | $ 19,565 | $ 20,047 |
Securities - Gross Unrealized L
Securities - Gross Unrealized Losses and Fair Values of Investments in Continuous Unrealized Loss Positions (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
AFS securities, Fair Value | ||
Less than 12 months | $ 645 | $ 536 |
12 months or more | 11,253 | 21,063 |
Total | 11,898 | 21,599 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 2 | 3 |
12 months or more | 192 | 895 |
Total | 194 | 898 |
HTM securities, Fair Value | ||
Less than 12 months | 384 | 962 |
12 months or more | 4,461 | 17,120 |
Total | 4,845 | 18,082 |
HTM securities, Unrealized Losses | ||
Less than 12 months | 3 | 6 |
12 months or more | 53 | 530 |
Total | 56 | 536 |
U.S. Treasury | ||
AFS securities, Fair Value | ||
Less than 12 months | 0 | 111 |
12 months or more | 666 | 2,121 |
Total | 666 | 2,232 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or more | 9 | 84 |
Total | 9 | 84 |
HTM securities, Fair Value | ||
Less than 12 months | 698 | |
12 months or more | 395 | |
Total | 1,093 | |
HTM securities, Unrealized Losses | ||
Less than 12 months | 3 | |
12 months or more | 3 | |
Total | 6 | |
GSE | ||
AFS securities, Fair Value | ||
Less than 12 months | 0 | 3 |
12 months or more | 171 | 176 |
Total | 171 | 179 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or more | 2 | 9 |
Total | 2 | 9 |
HTM securities, Fair Value | ||
Less than 12 months | 0 | |
12 months or more | 1,749 | |
Total | 1,749 | |
HTM securities, Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or more | 43 | |
Total | 43 | |
Agency MBS | ||
AFS securities, Fair Value | ||
Less than 12 months | 544 | 322 |
12 months or more | 10,219 | 18,478 |
Total | 10,763 | 18,800 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 1 | 2 |
12 months or more | 170 | 785 |
Total | 171 | 787 |
HTM securities, Fair Value | ||
Less than 12 months | 384 | 264 |
12 months or more | 4,461 | 14,976 |
Total | 4,845 | 15,240 |
HTM securities, Unrealized Losses | ||
Less than 12 months | 3 | 3 |
12 months or more | 53 | 484 |
Total | 56 | 487 |
States and political subdivisions | ||
AFS securities, Fair Value | ||
Less than 12 months | 101 | 100 |
12 months or more | 197 | 288 |
Total | 298 | 388 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 1 | 1 |
12 months or more | 11 | 17 |
Total | $ 12 | $ 18 |
Loans and ACL - Narrative (Deta
Loans and ACL - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | ||||||
Modifications that defaulted during the period that had been classified as a TDR during the previous 12 months | $ 21 | $ 13 | $ 39 | $ 36 | ||
Residential mortgage loans in process of foreclosure | $ 240 | 240 | $ 253 | |||
Subsequent Event [Line Items] | ||||||
Loans expected to be sold | $ 326 | $ 516 | ||||
Residential mortgage | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Loans expected to be sold | $ 4,000 |
Loans and ACL - Aging Analysis
Loans and ACL - Aging Analysis of Loans and Leases (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable [Line Items] | ||
Current | $ 150,702 | $ 146,985 |
30-89 Days Past Due | 1,016 | 1,044 |
90 Days Or More Past Due | 407 | 462 |
Nonperforming | 461 | 522 |
Total | 152,586 | 149,013 |
Commercial | Commercial and industrial | ||
Financing Receivable [Line Items] | ||
Current | 63,468 | 61,701 |
30-89 Days Past Due | 32 | 34 |
90 Days Or More Past Due | 0 | 0 |
Nonperforming | 193 | 200 |
Total | 63,693 | 61,935 |
Commercial | CRE | ||
Financing Receivable [Line Items] | ||
Current | 20,686 | 20,990 |
30-89 Days Past Due | 3 | 5 |
90 Days Or More Past Due | 0 | 0 |
Nonperforming | 33 | 65 |
Total | 20,722 | 21,060 |
Commercial | Lease financing | ||
Financing Receivable [Line Items] | ||
Current | 2,196 | 2,014 |
30-89 Days Past Due | 5 | 1 |
90 Days Or More Past Due | 0 | 0 |
Nonperforming | 2 | 3 |
Total | 2,203 | 2,018 |
Retail | Residential mortgage | ||
Financing Receivable [Line Items] | ||
Current | 31,673 | 30,413 |
30-89 Days Past Due | 480 | 456 |
90 Days Or More Past Due | 350 | 405 |
Nonperforming | 104 | 119 |
Total | 32,607 | 31,393 |
Retail | Direct | ||
Financing Receivable [Line Items] | ||
Current | 11,370 | 11,463 |
30-89 Days Past Due | 58 | 61 |
90 Days Or More Past Due | 10 | 7 |
Nonperforming | 54 | 53 |
Total | 11,492 | 11,584 |
Retail | Indirect | ||
Financing Receivable [Line Items] | ||
Current | 17,734 | 16,901 |
30-89 Days Past Due | 393 | 436 |
90 Days Or More Past Due | 7 | 6 |
Nonperforming | 75 | 82 |
Total | 18,209 | 17,425 |
Revolving credit | ||
Financing Receivable [Line Items] | ||
Current | 3,197 | 3,090 |
30-89 Days Past Due | 28 | 28 |
90 Days Or More Past Due | 14 | 14 |
Nonperforming | 0 | 0 |
Total | 3,239 | 3,132 |
PCI | ||
Financing Receivable [Line Items] | ||
Current | 378 | 413 |
30-89 Days Past Due | 17 | 23 |
90 Days Or More Past Due | 26 | 30 |
Nonperforming | 0 | 0 |
Total | $ 421 | $ 466 |
Loans and ACL - Risk Rating (De
Loans and ACL - Risk Rating (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Loans and leases | $ 152,586 | $ 149,013 |
Commercial | Commercial & Industrial | ||
Loans and leases | 63,693 | 61,935 |
Commercial | Commercial & Industrial | Pass | ||
Loans and leases | 62,211 | 60,655 |
Commercial | Commercial & Industrial | Special mention | ||
Loans and leases | 386 | 216 |
Commercial | Commercial & Industrial | Substandard-performing | ||
Loans and leases | 903 | 864 |
Commercial | Commercial & Industrial | Nonperforming | ||
Loans and leases | 193 | 200 |
Commercial | CRE | ||
Loans and leases | 20,722 | 21,060 |
Commercial | CRE | Pass | ||
Loans and leases | 20,315 | 20,712 |
Commercial | CRE | Special mention | ||
Loans and leases | 112 | 61 |
Commercial | CRE | Substandard-performing | ||
Loans and leases | 262 | 222 |
Commercial | CRE | Nonperforming | ||
Loans and leases | 33 | 65 |
Commercial | Lease Financing | ||
Loans and leases | 2,203 | 2,018 |
Commercial | Lease Financing | Pass | ||
Loans and leases | 2,188 | 2,012 |
Commercial | Lease Financing | Special mention | ||
Loans and leases | 1 | 0 |
Commercial | Lease Financing | Substandard-performing | ||
Loans and leases | 12 | 3 |
Commercial | Lease Financing | Nonperforming | ||
Loans and leases | 2 | 3 |
Retail | Residential mortgage | ||
Loans and leases | 32,607 | 31,393 |
Retail | Residential mortgage | Performing | ||
Loans and leases | 32,503 | 31,274 |
Retail | Residential mortgage | Nonperforming | ||
Loans and leases | 104 | 119 |
Retail | Direct | ||
Loans and leases | 11,492 | 11,584 |
Retail | Direct | Performing | ||
Loans and leases | 11,438 | 11,531 |
Retail | Direct | Nonperforming | ||
Loans and leases | 54 | 53 |
Retail | Indirect | ||
Loans and leases | 18,209 | 17,425 |
Retail | Indirect | Performing | ||
Loans and leases | 18,134 | 17,343 |
Retail | Indirect | Nonperforming | ||
Loans and leases | $ 75 | $ 82 |
Loans and ACL - Allowance for C
Loans and ACL - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Provision for credit losses | $ 172 | $ 135 | $ 327 | $ 285 |
Commercial | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
ACL, beginning balance | 548 | 522 | 546 | 522 |
Charge-Offs | (22) | (23) | (39) | (46) |
Recoveries | 8 | 11 | 14 | 19 |
Provision for credit losses | 40 | 25 | 53 | 40 |
ACL, ending balance | 574 | 535 | 574 | 535 |
Commercial | CRE | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
ACL, beginning balance | 196 | 175 | 190 | 160 |
Charge-Offs | (18) | (2) | (26) | (8) |
Recoveries | 3 | 1 | 4 | 3 |
Provision for credit losses | 20 | 17 | 33 | 36 |
ACL, ending balance | 201 | 191 | 201 | 191 |
Commercial | Lease financing | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
ACL, beginning balance | 11 | 10 | 11 | 9 |
Charge-Offs | 0 | (1) | (1) | (2) |
Recoveries | 0 | 1 | 0 | 1 |
Provision for credit losses | (1) | 0 | 0 | 2 |
ACL, ending balance | 10 | 10 | 10 | 10 |
Retail | Residential mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
ACL, beginning balance | 225 | 216 | 232 | 209 |
Charge-Offs | (5) | (5) | (10) | (9) |
Recoveries | 0 | 1 | 1 | 1 |
Provision for credit losses | 4 | 9 | 1 | 20 |
ACL, ending balance | 224 | 221 | 224 | 221 |
Retail | Direct | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
ACL, beginning balance | 96 | 99 | 97 | 106 |
Charge-Offs | (22) | (17) | (40) | (36) |
Recoveries | 7 | 6 | 13 | 12 |
Provision for credit losses | 18 | 9 | 29 | 15 |
ACL, ending balance | 99 | 97 | 99 | 97 |
Retail | Indirect | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
ACL, beginning balance | 358 | 347 | 356 | 348 |
Charge-Offs | (91) | (82) | (200) | (189) |
Recoveries | 19 | 17 | 36 | 32 |
Provision for credit losses | 73 | 71 | 167 | 162 |
ACL, ending balance | 359 | 353 | 359 | 353 |
Revolving credit | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
ACL, beginning balance | 119 | 104 | 117 | 108 |
Charge-Offs | (25) | (21) | (51) | (42) |
Recoveries | 4 | 5 | 10 | 10 |
Provision for credit losses | 22 | 17 | 44 | 29 |
ACL, ending balance | 120 | 105 | 120 | 105 |
PCI | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
ACL, beginning balance | 8 | 25 | 9 | 28 |
Charge-Offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for credit losses | 0 | (7) | (1) | (10) |
ACL, ending balance | 8 | 18 | 8 | 18 |
ALLL | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
ACL, beginning balance | 1,561 | 1,498 | 1,558 | 1,490 |
Charge-Offs | (183) | (151) | (367) | (332) |
Recoveries | 41 | 42 | 78 | 78 |
Provision for credit losses | 176 | 141 | 326 | 294 |
ACL, ending balance | 1,595 | 1,530 | 1,595 | 1,530 |
RUFC | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
ACL, beginning balance | 98 | 116 | 93 | 119 |
Charge-Offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for credit losses | (4) | (6) | 1 | (9) |
ACL, ending balance | 94 | 110 | 94 | 110 |
ACL | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
ACL, beginning balance | 1,659 | 1,614 | 1,651 | 1,609 |
Charge-Offs | (183) | (151) | (367) | (332) |
Recoveries | 41 | 42 | 78 | 78 |
Provision for credit losses | 172 | 135 | 327 | 285 |
ACL, ending balance | $ 1,689 | $ 1,640 | $ 1,689 | $ 1,640 |
Loans and ACL - Collectively Ev
Loans and ACL - Collectively Evaluated for Impairment (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Recorded Investment | $ 151,024 | $ 147,329 |
Related ALLL | 1,430 | 1,383 |
Commercial | Commercial and industrial | ||
Recorded Investment | 63,383 | 61,629 |
Related ALLL | 546 | 521 |
Commercial | CRE | ||
Recorded Investment | 20,667 | 20,960 |
Related ALLL | 197 | 181 |
Commercial | Lease financing | ||
Recorded Investment | 2,201 | 2,015 |
Related ALLL | 10 | 11 |
Retail | Residential mortgage | ||
Recorded Investment | 31,842 | 30,539 |
Related ALLL | 168 | 164 |
Retail | Direct | ||
Recorded Investment | 11,427 | 11,517 |
Related ALLL | 94 | 92 |
Retail | Indirect | ||
Recorded Investment | 17,873 | 17,099 |
Related ALLL | 298 | 299 |
Revolving credit | ||
Recorded Investment | 3,210 | 3,104 |
Related ALLL | 109 | 106 |
PCI | ||
Recorded Investment | 421 | 466 |
Related ALLL | $ 8 | $ 9 |
Loans and ACL - Individually Ev
Loans and ACL - Individually Evaluated for Impairment (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
UPB | $ 1,655 | $ 1,776 |
Recorded Investment Without an ALLL | 231 | 278 |
Recorded Investment With an ALLL | 1,331 | 1,406 |
Related ALLL | 165 | 175 |
Average Recorded Investment | 1,692 | 1,694 |
Interest Income Recognized | 52 | 93 |
Commercial | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 321 | 318 |
Recorded Investment Without an ALLL | 89 | 95 |
Recorded Investment With an ALLL | 221 | 211 |
Related ALLL | 28 | 25 |
Average Recorded Investment | 309 | 343 |
Interest Income Recognized | 3 | 6 |
Commercial | CRE | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 62 | 102 |
Recorded Investment Without an ALLL | 5 | 29 |
Recorded Investment With an ALLL | 50 | 71 |
Related ALLL | 4 | 9 |
Average Recorded Investment | 100 | 97 |
Interest Income Recognized | 1 | 2 |
Commercial | Lease financing | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 2 | 3 |
Recorded Investment Without an ALLL | 0 | 0 |
Recorded Investment With an ALLL | 2 | 3 |
Related ALLL | 0 | 0 |
Average Recorded Investment | 2 | 6 |
Interest Income Recognized | 0 | 0 |
Retail | Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 813 | 904 |
Recorded Investment Without an ALLL | 106 | 122 |
Recorded Investment With an ALLL | 659 | 732 |
Related ALLL | 56 | 68 |
Average Recorded Investment | 858 | 841 |
Interest Income Recognized | 19 | 34 |
Retail | Direct | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 82 | 86 |
Recorded Investment Without an ALLL | 26 | 26 |
Recorded Investment With an ALLL | 39 | 41 |
Related ALLL | 5 | 5 |
Average Recorded Investment | 66 | 72 |
Interest Income Recognized | 2 | 4 |
Retail | Indirect | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 346 | 335 |
Recorded Investment Without an ALLL | 5 | 6 |
Recorded Investment With an ALLL | 331 | 320 |
Related ALLL | 61 | 57 |
Average Recorded Investment | 328 | 306 |
Interest Income Recognized | 26 | 46 |
Revolving credit | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 29 | 28 |
Recorded Investment Without an ALLL | 0 | 0 |
Recorded Investment With an ALLL | 29 | 28 |
Related ALLL | 11 | 11 |
Average Recorded Investment | 29 | 29 |
Interest Income Recognized | $ 1 | $ 1 |
Loans and ACL - Summary of TDRs
Loans and ACL - Summary of TDRs (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable [Line Items] | ||
Total TDRs | $ 1,205 | $ 1,295 |
ALLL attributable to TDRs | 149 | 146 |
Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 1,070 | 1,119 |
Nonperforming TDRs (also included in NPL disclosures) | ||
Financing Receivable [Line Items] | ||
Total TDRs | 135 | 176 |
Commercial | Commercial and industrial | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 84 | 65 |
Commercial | CRE | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 8 | 10 |
Retail | Residential mortgage | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 581 | 656 |
Retail | Direct | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 53 | 55 |
Retail | Indirect | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | 315 | 305 |
Revolving credit | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Total TDRs | $ 29 | $ 28 |
Loans and ACL - Types of Modifi
Loans and ACL - Types of Modifications and Impact to Allowance (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Newly Designated TDRs | Commercial | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
ALLL Impact | $ 1 | $ 0 | $ 2 | $ 0 |
Newly Designated TDRs | Commercial | CRE | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
ALLL Impact | 0 | 0 | 0 | 0 |
Newly Designated TDRs | Retail | Residential mortgage | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
ALLL Impact | 3 | 4 | 7 | 9 |
Newly Designated TDRs | Retail | Direct | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
ALLL Impact | 0 | 0 | 0 | 0 |
Newly Designated TDRs | Retail | Indirect | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
ALLL Impact | 6 | 5 | 12 | 10 |
Newly Designated TDRs | Revolving credit | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
ALLL Impact | 1 | 1 | 2 | 2 |
Newly Designated TDRs | Rate | Commercial | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 24 | 20 | 50 | 30 |
Newly Designated TDRs | Rate | Commercial | CRE | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 0 | 8 | 1 | 27 |
Newly Designated TDRs | Rate | Retail | Residential mortgage | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 49 | 58 | 122 | 140 |
Newly Designated TDRs | Rate | Retail | Direct | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 2 | 2 | 5 | 4 |
Newly Designated TDRs | Rate | Retail | Indirect | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 50 | 45 | 98 | 87 |
Newly Designated TDRs | Rate | Revolving credit | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 5 | 4 | 11 | 9 |
Newly Designated TDRs | Structure | Commercial | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 3 | 33 | 6 | 43 |
Newly Designated TDRs | Structure | Commercial | CRE | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 1 | 1 | 1 | 2 |
Newly Designated TDRs | Structure | Retail | Residential mortgage | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 6 | 5 | 14 | 15 |
Newly Designated TDRs | Structure | Retail | Direct | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 1 | 1 | 2 | 1 |
Newly Designated TDRs | Structure | Retail | Indirect | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 1 | 1 | 2 | 2 |
Newly Designated TDRs | Structure | Revolving credit | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 0 | 0 | 0 | 0 |
Re-Modification of Previously Designated TDRs | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
ALLL Impact | 0 | 0 | 0 | 0 |
Re-Modification of Previously Designated TDRs | Rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | 14 | 31 | 37 | 52 |
Re-Modification of Previously Designated TDRs | Structure | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDRs | $ 11 | $ 5 | $ 16 | $ 10 |
Other Assets and Liabilites - N
Other Assets and Liabilites - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Narrative [Abstract] | ||
Operating Lease, Cost | $ 49 | $ 98 |
Other Assets and Liabilites - S
Other Assets and Liabilites - Schedule of Right of Use Assets and Future Maturities of Lease Liabilities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Right of Use Assets | |
Right-of-Use Asset, Operating Lease | $ 842 |
Right-of-Use Asset, Finance Lease | 18 |
Operating Lease Liabilities, Payments Due | |
2019, Operating Leases | 86 |
2020, Operating Leases | 195 |
2021, Operating Leases | 172 |
2022, Operating Leases | 148 |
2023, Operating Lease | 118 |
2024, Operating Leases | 92 |
Thereafter, Operating Leases | 289 |
Total lease payments, Operating Leases | 1,100 |
Less: imputed interest, Operating Lease | 139 |
Total lease liabilities, Operating Leases | $ 961 |
Weighted Average Remaining Lease Term, Operating Lease | 7 years 6 months |
Weighted Average Discount Rate, Percent, Operating Lease | 3.10% |
Finance Lease Liabilities, Payments, Due | |
2019, Finance Leases | $ 4 |
2020, Finance Leases | 7 |
2021, Finance Leases | 6 |
2022, Finance Leases | 5 |
2023, Finance Lease | 3 |
2024, Finance Leases | 2 |
Thereafter, Finance Leases | 3 |
Total lease payments, Finance Leases | 30 |
Less: imputed interest, Finance Leases | 5 |
Total lease liabilities, Finance Leases | $ 25 |
Weighted Average Remaining Lease Term, Finance Lease | 5 years |
Weighted Average Discount Rate, Percent, Finance Lease | 7.10% |
Other Assets and Liabilites -_2
Other Assets and Liabilites - Schedule of Assets Held Under Operating Leases and Related Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Other Assets and Liabilities | |||||
Assets held under operating leases | $ 1,359 | $ 1,359 | $ 1,378 | ||
Accumulated depreciation | (375) | (375) | (374) | ||
Net | 984 | 984 | $ 1,004 | ||
Assets held under operating leases | |||||
Other Assets and Liabilities | |||||
Depreciation expense for assets under operating leases | $ 29 | $ 30 | $ 58 | $ 60 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,936 | $ 1,934 |
Accumulated Amortization | (1,224) | (1,176) |
Net Carrying Amount | 712 | 758 |
CDI | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 605 | 605 |
Accumulated Amortization | (482) | (460) |
Net Carrying Amount | 123 | 145 |
Other, primarily customer relationship intangibles | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,331 | 1,329 |
Accumulated Amortization | (742) | (716) |
Net Carrying Amount | $ 589 | $ 613 |
Loan Servicing - Residential Mo
Loan Servicing - Residential Mortgage Banking Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||||
Servicing fees recognized from mortgage loans serviced for others | $ 1,352 | $ 1,222 | $ 2,554 | $ 2,402 | |
Residential | |||||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||||
UPB of residential mortgage loan servicing portfolio | 117,912 | 117,912 | $ 118,605 | ||
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate | 85,060 | 85,060 | 87,270 | ||
Mortgage loans sold with recourse | 387 | 387 | 419 | ||
Maximum recourse exposure from mortgage loans sold with recourse liability | 209 | 209 | 223 | ||
Indemnification, recourse and repurchase reserves | $ 21 | 21 | $ 24 | ||
UPB of residential mortgage loans sold from LHFS | 3,597 | 5,536 | |||
Pre-tax gains recognized on mortgage loans sold and held for sale | $ 48 | $ 74 | |||
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others | 0.28% | 0.28% | 0.28% | 0.28% | |
Weighted average interest rate on mortgage loans serviced for others | 4.07% | 4.01% | 4.07% | 4.01% | |
Bank Servicing | Residential | |||||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||||
Servicing fees recognized from mortgage loans serviced for others | $ 123 | $ 128 |
Loan Servicing - Analysis of Ac
Loan Servicing - Analysis of Activity in Residential MSRs (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
MSRs, carrying value, beginning balance | $ 1,108 | |
Change in fair value due to changes in valuation inputs or assumptions: | ||
MSRs, carrying value, ending balance | 970 | |
Residential MSRs | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
MSRs, carrying value, beginning balance | 957 | $ 914 |
Additions | 40 | 63 |
Change in fair value due to changes in valuation inputs or assumptions: | ||
Prepayment speeds | (134) | 67 |
OAS | 37 | 17 |
Servicing costs | 0 | 0 |
Realization of expected net servicing cash flows, passage of time and other | (70) | (70) |
MSRs, carrying value, ending balance | 830 | 991 |
Gains (losses) on derivative financial instruments used to mitigate the income statement effect of changes in residential MSR fair value | $ 129 | $ (84) |
Loan Servicing - Residential MS
Loan Servicing - Residential MSR Sensitivity (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Residential MSRs | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 100.00% | 100.00% |
Weighted average life | 5 years 1 month 6 days | 6 years 1 month 6 days |
Residential MSRs | Min | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 10.30% | 9.10% |
OAS | 5.30% | 6.60% |
Residential MSRs | Max | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 13.40% | 10.50% |
OAS | 7.80% | 8.30% |
Residential MSRs | Weighted Average | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 12.90% | 9.90% |
Effect on fair value of a 10% increase | $ (40) | $ (34) |
Effect on fair value of a 20% increase | $ (77) | $ (66) |
OAS | 5.90% | 7.00% |
Effect on fair value of a 10% increase | $ (18) | $ (24) |
Effect on fair value of a 20% increase | $ (34) | $ (47) |
Fixed-rate residential mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 99.20% | 99.20% |
Adjustable-rate residential mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 0.80% | 0.80% |
Loan Servicing - Commercial Mor
Loan Servicing - Commercial Mortgage Banking Activities (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Servicing Assets at Fair Value [Line Items] | ||
MSRs at fair value | $ 970 | $ 1,108 |
CRE | ||
Servicing Assets at Fair Value [Line Items] | ||
UPB of CRE mortgages serviced for others | 27,683 | 27,761 |
CRE mortgages serviced for others covered by recourse provisions | 4,691 | 4,699 |
Maximum recourse exposure from CRE mortgages sold with recourse liability | 1,312 | 1,317 |
Recorded reserves related to recourse exposure | 6 | 6 |
CRE mortgages originated during the year-to-date period | 3,218 | 7,072 |
MSRs at fair value | $ 140 | $ 151 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 52,458 | $ 53,025 |
Interest checking | 28,021 | 28,130 |
Money market and savings | 63,972 | 63,467 |
Time deposits | 15,070 | 16,577 |
Total deposits | 159,521 | 161,199 |
Time deposits greater than $250,000 | $ 3,868 | $ 5,713 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - Subsequent Event - Fixed rate - BB&T Corporation - Senior notes - USD ($) $ in Billions | 3 Months Ended | |
Sep. 30, 2019 | Jul. 29, 2019 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 1 | |
Debt Instrument, Maturity Date | Dec. 31, 2024 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt, Interest Rates and Maturity Dates (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instruments [Line Items] | ||
Long-term Debt, Carrying Amount | $ 22,640 | $ 23,709 |
Other long-term debt | ||
Debt Instruments [Line Items] | ||
Long-term Debt, Carrying Amount | $ 161 | 132 |
BB&T Corporation | Senior notes | Fixed rate | ||
Debt Instruments [Line Items] | ||
Maturity Date Range, Start | Jan. 1, 2020 | |
Maturity Date Range, End | Dec. 31, 2025 | |
Effective Rate | 2.91% | |
Long-term Debt, Carrying Amount | $ 10,675 | 10,408 |
BB&T Corporation | Senior notes | Fixed rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 2.05% | |
BB&T Corporation | Senior notes | Fixed rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 5.38% | |
BB&T Corporation | Senior notes | Floating rate | ||
Debt Instruments [Line Items] | ||
Maturity Date Range, Start | Jan. 1, 2020 | |
Maturity Date Range, End | Dec. 31, 2022 | |
Effective Rate | 3.08% | |
Long-term Debt, Carrying Amount | $ 1,948 | 2,398 |
BB&T Corporation | Senior notes | Floating rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 2.80% | |
BB&T Corporation | Senior notes | Floating rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 3.31% | |
BB&T Corporation | Subordinated notes | Fixed rate | ||
Debt Instruments [Line Items] | ||
Maturity Date Range, Start | Jan. 1, 2019 | |
Maturity Date Range, End | Dec. 31, 2029 | |
Effective Rate | 2.50% | |
Long-term Debt, Carrying Amount | $ 1,586 | 903 |
BB&T Corporation | Subordinated notes | Fixed rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 3.88% | |
BB&T Corporation | Subordinated notes | Fixed rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 5.25% | |
Branch Bank | Senior notes | Fixed rate | ||
Debt Instruments [Line Items] | ||
Maturity Date Range, Start | Jan. 1, 2020 | |
Maturity Date Range, End | Dec. 31, 2022 | |
Effective Rate | 2.54% | |
Long-term Debt, Carrying Amount | $ 3,449 | 4,895 |
Branch Bank | Senior notes | Fixed rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 2.10% | |
Branch Bank | Senior notes | Fixed rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 2.85% | |
Branch Bank | Senior notes | Floating rate | ||
Debt Instruments [Line Items] | ||
Maturity Date Range, Start | Jan. 1, 2020 | |
Maturity Date Range, End | Dec. 31, 2020 | |
Effective Rate | 3.01% | |
Long-term Debt, Carrying Amount | $ 900 | 1,149 |
Branch Bank | Senior notes | Floating rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 2.74% | |
Branch Bank | Senior notes | Floating rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 3.05% | |
Branch Bank | Subordinated notes | Fixed rate | ||
Debt Instruments [Line Items] | ||
Maturity Date Range, Start | Jan. 1, 2025 | |
Maturity Date Range, End | Dec. 31, 2026 | |
Effective Rate | 3.09% | |
Long-term Debt, Carrying Amount | $ 2,178 | 2,075 |
Branch Bank | Subordinated notes | Fixed rate | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 3.63% | |
Branch Bank | Subordinated notes | Fixed rate | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 3.80% | |
Branch Bank | FHLB advances | ||
Debt Instruments [Line Items] | ||
Maturity Date Range, Start | Jan. 1, 2019 | |
Maturity Date Range, End | Dec. 31, 2034 | |
Effective Rate | 2.77% | |
Long-term Debt, Carrying Amount | $ 1,743 | $ 1,749 |
Weighted average maturity of FHLB advances | 3 years 6 months | |
Branch Bank | FHLB advances | Min | ||
Debt Instruments [Line Items] | ||
Stated Rate | 0.00% | |
Branch Bank | FHLB advances | Max | ||
Debt Instruments [Line Items] | ||
Stated Rate | 5.50% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - Subsequent Event $ in Billions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Class of Stock [Line Items] | |
Preferred Stock, Value, Issued | $ 1.7 |
Dividend Rate | 4.80% |
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 1.7 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Cash Dividends Declared per Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.405 | $ 0.375 | $ 0.810 | $ 0.750 |
Shareholders' Equity - Rollforw
Shareholders' Equity - Rollforward of RSUs, PSUs and Restricted Shares (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Units/Shares | |
Nonvested, beginning balance (in units/shares) | shares | 12,060 |
Granted (in units/shares) | shares | 3,914 |
Vested (in units/shares) | shares | (3,262) |
Forfeited (in units/shares) | shares | (204) |
Nonvested, ending balance (in units/shares) | shares | 12,508 |
Wtd. Avg. Grant Date Fair Value | |
Nonvested, beginning balance (in usd per units/share) | $ / shares | $ 38.03 |
Granted (in usd per units/share) | $ / shares | 44.39 |
Vested (in usd per units/share) | $ / shares | 35.07 |
Forfeited (in usd per units/share) | $ / shares | 43.86 |
Nonvested, ending balance (in usd per units/share) | $ / shares | $ 40.69 |
AOCI (Details)
AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amounts reclassified from AOCI: | ||||
OCI | $ 302 | $ (61) | $ 596 | $ (239) |
Pension and OPEB Costs | ||||
AOCI, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (1,147) | (990) | (1,164) | (1,004) |
OCI before reclassifications, net of tax | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI: | ||||
OCI | 19 | 13 | 36 | 27 |
AOCI, ending balance | (1,128) | (977) | (1,128) | (977) |
Pension and OPEB Costs | Amounts reclassified from AOCI | ||||
Amounts reclassified from AOCI: | ||||
Before tax | 24 | 18 | 47 | 36 |
Tax effect | 5 | 5 | 11 | 9 |
Amounts reclassified, net of tax | 19 | 13 | 36 | 27 |
Cash Flow Hedges | ||||
AOCI, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (65) | (14) | (31) | (92) |
OCI before reclassifications, net of tax | (61) | 23 | (91) | 93 |
Amounts reclassified from AOCI: | ||||
OCI | (59) | 26 | (93) | 104 |
AOCI, ending balance | (124) | 12 | (124) | 12 |
Cash Flow Hedges | Amounts reclassified from AOCI | ||||
Amounts reclassified from AOCI: | ||||
Before tax | 2 | 3 | (3) | 14 |
Tax effect | 0 | 0 | (1) | 3 |
Amounts reclassified, net of tax | 2 | 3 | (2) | 11 |
AFS Securities | ||||
AOCI, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (191) | (624) | (500) | (356) |
OCI before reclassifications, net of tax | 346 | (100) | 660 | (382) |
Amounts reclassified from AOCI: | ||||
OCI | 342 | (99) | 651 | (367) |
AOCI, ending balance | 151 | (723) | 151 | (723) |
AFS Securities | Amounts reclassified from AOCI | ||||
Amounts reclassified from AOCI: | ||||
Before tax | (6) | 1 | (12) | 20 |
Tax effect | (2) | 0 | (3) | 5 |
Amounts reclassified, net of tax | (4) | 1 | (9) | 15 |
Other, net | ||||
AOCI, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (18) | (17) | (20) | (15) |
OCI before reclassifications, net of tax | 0 | (2) | 2 | (4) |
Amounts reclassified from AOCI: | ||||
OCI | 0 | (1) | 2 | (3) |
AOCI, ending balance | (18) | (18) | (18) | (18) |
Other, net | Amounts reclassified from AOCI | ||||
Amounts reclassified from AOCI: | ||||
Before tax | 0 | 1 | 0 | 1 |
Tax effect | 0 | 0 | 0 | 0 |
Amounts reclassified, net of tax | 0 | 1 | 0 | 1 |
Total | ||||
AOCI, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (1,421) | (1,645) | (1,715) | (1,467) |
OCI before reclassifications, net of tax | 285 | (79) | 571 | (293) |
Amounts reclassified from AOCI: | ||||
OCI | 302 | (61) | 596 | (239) |
AOCI, ending balance | (1,119) | (1,706) | (1,119) | (1,706) |
Total | Amounts reclassified from AOCI | ||||
Amounts reclassified from AOCI: | ||||
Before tax | 20 | 23 | 32 | 71 |
Tax effect | 3 | 5 | 7 | 17 |
Amounts reclassified, net of tax | $ 17 | $ 18 | $ 25 | $ 54 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 20.90% | 19.70% | 19.60% | 19.40% |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Qualified Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Discretionary contributions | $ 549 |
Benefit Plans - Summary of the
Benefit Plans - Summary of the Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net periodic pension cost: | ||||
Service cost | $ 55 | $ 60 | $ 109 | $ 120 |
Interest cost | 54 | 50 | 111 | 100 |
Estimated return on plan assets | (114) | (112) | (227) | (224) |
Amortization and other | 26 | 19 | 51 | 39 |
Net periodic benefit cost | $ 21 | $ 17 | $ 44 | $ 35 |
Commitments and Contingencies -
Commitments and Contingencies - Summary (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments in affordable housing projects | ||
Other Commitments [Line Items] | ||
Carrying amount | $ 2,178 | $ 2,088 |
Amount of future funding commitments included in carrying amount | 914 | 919 |
Lending exposure | 410 | 460 |
Tax credits subject to recapture | 513 | 523 |
Private equity investments | ||
Other Commitments [Line Items] | ||
Carrying amount | 525 | 458 |
Amount of future funding commitments not included in carrying amount | $ 312 | $ 331 |
Commitments and Contingencies_2
Commitments and Contingencies - Pledged Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Pledged securities | $ 13,782 | $ 13,237 |
Pledged loans | $ 79,303 | $ 77,847 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) | Jun. 30, 2019Multiple |
Private Equity Investments | Minimum | EBITDA Multiple | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unobservable inputs, EBITDA multiples | 6 |
Private Equity Investments | Maximum | EBITDA Multiple | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unobservable inputs, EBITDA multiples | 12 |
Private Equity Investments | Weighted average | EBITDA Multiple | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unobservable inputs, EBITDA multiples | 9 |
Re-REMIC | Non-agency MBS | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Difference between fair value of securities held and the fair value of the underlying securities, percentage | 21.70% |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Assets | |||
AFS securities | $ 25,802 | $ 25,038 | |
LHFS at fair value | 1,237 | 988 | |
MSRs | 970 | 1,108 | |
Trading and equity securities | 1,848 | 767 | |
Derivative Asset, Net | 498 | 146 | |
Derivative Asset, Gross | 656 | 246 | |
Private equity investments | 449 | 393 | |
Total assets | 30,804 | 28,540 | |
Liabilities | |||
Derivative Liability, net | 35 | 118 | |
Derivative Liability, Gross | 167 | 247 | |
Securities sold short | 188 | 145 | |
Total liabilities | 223 | 392 | |
Level 1 | |||
Assets | |||
AFS securities | 0 | 0 | |
LHFS at fair value | 0 | 0 | |
MSRs | 0 | 0 | |
Trading and equity securities | 413 | 374 | |
Derivative Asset, Net | 0 | ||
Derivative Asset, Gross | 0 | ||
Private equity investments | 0 | 0 | |
Total assets | 413 | 374 | |
Liabilities | |||
Derivative Liability, net | 0 | ||
Derivative Liability, Gross | 1 | ||
Securities sold short | 0 | 0 | |
Total liabilities | 0 | 1 | |
Level 2 | |||
Assets | |||
AFS securities | 25,420 | 24,647 | |
LHFS at fair value | 1,237 | 988 | |
MSRs | 0 | 0 | |
Trading and equity securities | 1,435 | 390 | |
Derivative Asset, Net | 638 | ||
Derivative Asset, Gross | 234 | ||
Private equity investments | 0 | 0 | |
Total assets | 28,730 | 26,259 | |
Liabilities | |||
Derivative Liability, net | 156 | ||
Derivative Liability, Gross | 246 | ||
Securities sold short | 188 | 145 | |
Total liabilities | 344 | 391 | |
Level 3 | |||
Assets | |||
AFS securities | 382 | 391 | |
LHFS at fair value | 0 | 0 | |
MSRs | 970 | 1,108 | |
Trading and equity securities | 0 | 3 | |
Derivative Asset, Net | 18 | ||
Derivative Asset, Gross | 12 | ||
Private equity investments | 449 | 393 | |
Total assets | 1,819 | 1,907 | |
Liabilities | |||
Derivative Liability, net | 11 | ||
Derivative Liability, Gross | 0 | ||
Securities sold short | 0 | 0 | |
Total liabilities | 11 | 0 | |
U.S. Treasury | |||
Assets | |||
AFS securities | 1,112 | 3,441 | |
U.S. Treasury | Level 1 | |||
Assets | |||
AFS securities | 0 | 0 | |
U.S. Treasury | Level 2 | |||
Assets | |||
AFS securities | 1,112 | 3,441 | |
U.S. Treasury | Level 3 | |||
Assets | |||
AFS securities | 0 | 0 | |
GSE | |||
Assets | |||
AFS securities | 247 | 200 | |
GSE | Level 1 | |||
Assets | |||
AFS securities | 0 | 0 | |
GSE | Level 2 | |||
Assets | |||
AFS securities | 247 | 200 | |
GSE | Level 3 | |||
Assets | |||
AFS securities | 0 | 0 | |
Agency MBS | |||
Assets | |||
AFS securities | 23,441 | 20,155 | |
Agency MBS | Level 1 | |||
Assets | |||
AFS securities | 0 | 0 | |
Agency MBS | Level 2 | |||
Assets | |||
AFS securities | 23,441 | 20,155 | |
Agency MBS | Level 3 | |||
Assets | |||
AFS securities | 0 | 0 | |
States and political subdivisions | |||
Assets | |||
AFS securities | 587 | 701 | |
States and political subdivisions | Level 1 | |||
Assets | |||
AFS securities | 0 | 0 | |
States and political subdivisions | Level 2 | |||
Assets | |||
AFS securities | 587 | 701 | |
States and political subdivisions | Level 3 | |||
Assets | |||
AFS securities | 0 | 0 | |
Non-agency MBS | |||
Assets | |||
AFS securities | 382 | 505 | |
Non-agency MBS | Level 1 | |||
Assets | |||
AFS securities | 0 | 0 | |
Non-agency MBS | Level 2 | |||
Assets | |||
AFS securities | 0 | 114 | |
Non-agency MBS | Level 3 | |||
Assets | |||
AFS securities | 382 | 391 | |
Other | |||
Assets | |||
AFS securities | 33 | 36 | |
Other | Level 1 | |||
Assets | |||
AFS securities | 0 | 0 | |
Other | Level 2 | |||
Assets | |||
AFS securities | 33 | 36 | |
Other | Level 3 | |||
Assets | |||
AFS securities | 0 | 0 | |
Fair Value, Concentration of Credit Risk, Master Netting Arrangements | |||
Assets | |||
Derivative Asset, Net | [1] | (158) | |
Derivative Asset, Gross | [1] | 0 | |
Total assets | [1] | (158) | 0 |
Liabilities | |||
Derivative Liability, net | [1] | (132) | |
Derivative Liability, Gross | [1] | 0 | |
Total liabilities | [1] | $ (132) | $ 0 |
[1] | Refer to Note 16. Derivative Financial Instruments for additional discussion on netting adjustments. |
Fair Value Disclosures - Rollfo
Fair Value Disclosures - Rollforward of Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Trading and equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 11 | $ 0 | $ 3 | $ 0 |
Included in earnings | 0 | 0 | 0 | 0 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 1 | 15 | 1 |
Issuances | 0 | 0 | 0 | 0 |
Sales | (11) | (1) | (18) | (1) |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | 0 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 0 | 0 | ||
Non-agency MBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 386 | 441 | 391 | 432 |
Included in earnings | (7) | 7 | (5) | 6 |
Included in unrealized net holding gains (losses) in OCI | 11 | (9) | 12 | 14 |
Purchases | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (8) | (14) | (16) | (27) |
Transfers into Level 3 | 0 | 0 | ||
Ending balance | 382 | 425 | 382 | 425 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | (7) | (5) | ||
MSRs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 1,036 | 1,119 | 1,108 | 1,056 |
Included in earnings | (51) | 23 | (105) | 91 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Issuances | 30 | 46 | 52 | 83 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (45) | (45) | (85) | (87) |
Transfers into Level 3 | 0 | 0 | ||
Ending balance | 970 | 1,143 | 970 | 1,143 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | (51) | (105) | ||
Net Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 7 | 7 | 12 | 3 |
Included in earnings | 13 | 1 | 21 | 1 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Issuances | 17 | 11 | 34 | 6 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (20) | (15) | (50) | (6) |
Transfers into Level 3 | (10) | (10) | ||
Ending balance | 7 | 4 | 7 | 4 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 17 | 18 | ||
Private Equity Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 388 | 400 | 393 | 404 |
Included in earnings | 1 | 5 | 24 | 11 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | 0 | 0 |
Purchases | 61 | 3 | 68 | 27 |
Issuances | 0 | 0 | 0 | 0 |
Sales | (1) | 0 | (34) | (24) |
Settlements | 0 | (9) | (2) | (19) |
Transfers into Level 3 | 0 | 0 | ||
Ending balance | 449 | $ 399 | 449 | $ 399 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | $ 0 | $ 4 |
Fair Value Disclosures - Loans
Fair Value Disclosures - Loans Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
LHFS at fair value | $ 1,237 | $ 988 |
Aggregate UPB | 1,221 | 975 |
Difference | $ 16 | $ 13 |
Fair Value Disclosures - Measur
Fair Value Disclosures - Measured on a Nonrecurring Basis (Details) - Nonrecurring - Level 3 - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 113 | $ 174 |
Valuation Adjustments | (20) | (22) |
Foreclosed real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 36 | 43 |
Valuation Adjustments | $ (117) | $ (114) |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Liabilities Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
HTM securities | $ 19,565 | $ 20,047 |
Loans and leases HFI, net of ALLL | 150,991 | 147,455 |
Financial liabilities: | ||
Time deposits | 15,070 | 16,577 |
Long-term debt | 22,640 | 23,709 |
Carrying Amount | ||
Financial assets: | ||
HTM securities | 19,487 | 20,552 |
Loans and leases HFI, net of ALLL | 150,991 | 147,455 |
Financial liabilities: | ||
Time deposits | 15,070 | 16,577 |
Long-term debt | 22,640 | 23,709 |
Fair Value | Level 2 | ||
Financial assets: | ||
HTM securities | 19,565 | 20,047 |
Financial liabilities: | ||
Time deposits | 15,141 | 16,617 |
Long-term debt | 23,005 | 23,723 |
Fair Value | Level 3 | ||
Financial assets: | ||
Loans and leases HFI, net of ALLL | $ 150,295 | $ 145,591 |
Fair Value Disclosures - Off-Ba
Fair Value Disclosures - Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments to extend, originate or purchase credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | $ 75,677 | $ 72,435 |
Fair Value | 262 | 280 |
Residential mortgage loans sold with recourse | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | 387 | 419 |
Fair Value | 3 | 3 |
CRE mortgages serviced for others covered by recourse provisions | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | 4,691 | 4,699 |
Fair Value | 6 | 6 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional/Contract Amount | 2,269 | 2,389 |
Fair Value | $ 16 | $ 18 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Classifications and Hedging Relationships (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 64,967 | $ 67,738 |
Fair Value, Gain | 656 | 246 |
Fair Value, Loss | (167) | (247) |
Derivative Asset [Abstract] | ||
Amounts subject to master netting arrangements | (57) | |
Amounts subject to master netting arrangements | (47) | |
Cash collateral (received) posted for amounts subject to master netting arrangements | (101) | |
Cash collateral (received) posted for amounts subject to master netting arrangements | (53) | |
Net amount | 498 | 146 |
Derivative Asset, Not Subject to Master Netting Arrangement | 497 | 144 |
Derivative Liability [Abstract] | ||
Amounts subject to master netting arrangements | 57 | |
Amounts subject to master netting arrangements not offset due to policy election | 47 | |
Cash collateral (received) posted for amounts subject to master netting arrangements | 75 | |
Cash collateral (received) posted for amounts subject to master netting arrangements | 82 | |
Net amount | (35) | (118) |
Derivative instruments not under master netting agreements | (26) | (116) |
Derivatives Subject to Master Netting Arrangements | ||
Derivative Asset [Abstract] | ||
Derivative instruments under master netting arrangements | 159 | 102 |
Derivative Liability [Abstract] | ||
Derivative instruments under master netting arrangements | (141) | (131) |
Cash flow hedges | Interest rate contracts | Pay fixed swaps | 3 mo. LIBOR funding | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 2,500 | 6,500 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | 0 | 0 |
Fair value hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 16,884 | 18,457 |
Fair Value, Gain | 108 | 7 |
Fair Value, Loss | (27) | (76) |
Fair value hedges | Interest rate contracts | Pay fixed swaps | Commercial loans | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 419 | 505 |
Fair Value, Gain | 0 | 2 |
Fair Value, Loss | 0 | 0 |
Fair value hedges | Interest rate contracts | Pay fixed swaps | Municipal securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 151 | 259 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | 0 | 0 |
Fair value hedges | Interest rate contracts | Receive fixed swaps | Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 11,529 | 12,908 |
Fair Value, Gain | 108 | 5 |
Fair Value, Loss | (25) | (74) |
Fair value hedges | Interest rate contracts | Options | Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 4,785 | 4,785 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | (2) | (2) |
Not designated as hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 45,583 | 42,781 |
Fair Value, Gain | 548 | 239 |
Fair Value, Loss | (140) | (171) |
Not designated as hedges | Client-related and other risk management | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 32,440 | 27,655 |
Fair Value, Gain | 495 | 165 |
Fair Value, Loss | (107) | (148) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Pay fixed swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 12,520 | 11,523 |
Fair Value, Gain | 1 | 19 |
Fair Value, Loss | (68) | (32) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Receive fixed swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 12,709 | 11,577 |
Fair Value, Gain | 471 | 128 |
Fair Value, Loss | (6) | (98) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,342 | 1,143 |
Fair Value, Gain | 2 | 2 |
Fair Value, Loss | (3) | (3) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Forward commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 5,345 | 2,883 |
Fair Value, Gain | 20 | 11 |
Fair Value, Loss | (27) | (13) |
Not designated as hedges | Client-related and other risk management | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 524 | 529 |
Fair Value, Gain | 1 | 5 |
Fair Value, Loss | (3) | (2) |
Not designated as hedges | Mortgage banking | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 4,174 | 2,726 |
Fair Value, Gain | 21 | 16 |
Fair Value, Loss | (29) | (21) |
Not designated as hedges | Mortgage banking | Interest rate contracts | Interest rate lock commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,779 | 702 |
Fair Value, Gain | 18 | 12 |
Fair Value, Loss | (1) | 0 |
Not designated as hedges | Mortgage banking | Interest rate contracts | When issued securities, forward rate agreements and forward commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 2,339 | 1,753 |
Fair Value, Gain | 3 | 2 |
Fair Value, Loss | (28) | (20) |
Not designated as hedges | Mortgage banking | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 56 | 271 |
Fair Value, Gain | 0 | 2 |
Fair Value, Loss | 0 | (1) |
Not designated as hedges | MSRs | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 8,969 | 12,400 |
Fair Value, Gain | 32 | 58 |
Fair Value, Loss | (4) | (2) |
Not designated as hedges | MSRs | Interest rate contracts | Pay fixed swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 2,442 | 3,224 |
Fair Value, Gain | 1 | 0 |
Fair Value, Loss | 0 | 0 |
Not designated as hedges | MSRs | Interest rate contracts | Receive fixed swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 3,381 | 4,328 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | 0 | 0 |
Not designated as hedges | MSRs | Interest rate contracts | Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,203 | 3,155 |
Fair Value, Gain | 22 | 48 |
Fair Value, Loss | 0 | (2) |
Not designated as hedges | MSRs | Interest rate contracts | When issued securities, forward rate agreements and forward commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,841 | 1,590 |
Fair Value, Gain | 9 | 10 |
Fair Value, Loss | (4) | 0 |
Not designated as hedges | MSRs | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 102 | 103 |
Fair Value, Gain | 0 | 0 |
Fair Value, Loss | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value Hedges Basis Adjusments (Details) - Fair Value Hedges - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
AFS securities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset / Liability Basis | $ 467 | $ 493 |
AFS securities | Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 13 | 5 |
AFS securities | Items No Longer Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 56 | 54 |
Loans and leases | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset / Liability Basis | 572 | 562 |
Loans and leases | Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 21 | 0 |
Loans and leases | Items No Longer Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | (1) | (3) |
Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset / Liability Basis | 13,652 | 15,397 |
Long-term debt | Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 212 | (98) |
Long-term debt | Items No Longer Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | $ (1) | $ 12 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Amounts Related to Cash Flow Hedges (Details) - Cash Flow Hedges - Interest Rate Contracts - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax gain (loss) recognized in OCI | $ (79) | $ 31 | $ (119) | $ 124 |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax gain (loss) reclassified from AOCI into interest expense | (2) | (3) | 3 | (14) |
Deposits | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax gain (loss) recognized in OCI | (33) | 8 | (43) | 29 |
Deposits | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax gain (loss) reclassified from AOCI into interest expense | (1) | (1) | 1 | (3) |
Short-term borrowings | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax gain (loss) recognized in OCI | 12 | 2 | 2 | 2 |
Short-term borrowings | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax gain (loss) reclassified from AOCI into interest expense | 0 | 0 | 1 | 0 |
Long-term debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax gain (loss) recognized in OCI | (58) | 21 | (78) | 93 |
Long-term debt | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax gain (loss) reclassified from AOCI into interest expense | $ (1) | $ (2) | $ 1 | $ (11) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Amounts Related to Fair Value Hedges (Details) - Fair Value Hedges - Interest Rate Contracts - Net interest income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net income (expense) recognized | $ (14) | $ 3 | $ (30) | $ 20 |
AFS securities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts related to interest settlements | 0 | (2) | 0 | (4) |
Recognized on derivatives | (10) | 5 | (17) | 16 |
Recognized on hedged items | 8 | (5) | 13 | (16) |
Net income (expense) recognized | (2) | (2) | (4) | (4) |
Loans and leases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts related to interest settlements | 0 | (1) | 0 | (1) |
Recognized on derivatives | (14) | 3 | (22) | 6 |
Recognized on hedged items | 14 | (3) | 22 | (6) |
Net income (expense) recognized | 0 | (1) | 0 | (1) |
Long-term debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts related to interest settlements | (16) | (7) | (38) | 1 |
Recognized on derivatives | 192 | (62) | 308 | (243) |
Recognized on hedged items | (188) | 75 | (296) | 267 |
Net income (expense) recognized | $ (12) | $ 6 | $ (26) | $ 25 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Amounts Related to Derivative Instruments Not Designated as Hedges (Details) - Not designated as hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax Gain (Loss) Recognized in Income | $ 96 | $ (15) | $ 159 | $ (56) |
Client-related and other risk management | Interest rate contracts | Other noninterest income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax Gain (Loss) Recognized in Income | 16 | 10 | 26 | 25 |
Client-related and other risk management | Foreign exchange contracts | Other noninterest income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax Gain (Loss) Recognized in Income | (1) | 6 | 1 | 13 |
Mortgage banking | Interest rate contracts | Mortgage banking income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax Gain (Loss) Recognized in Income | (2) | (8) | (5) | (4) |
MSRs | Interest rate contracts | Mortgage banking income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax Gain (Loss) Recognized in Income | $ 83 | $ (23) | $ 137 | $ (90) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Cash Flow and Fair Value Hedges (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Cash flow hedges | ||
Derivative [Line Items] | ||
Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI | $ (12) | $ (18) |
Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) | (112) | (13) |
Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months | $ (45) | $ 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 | 1 year | 4 years |
Fair Value Hedges | ||
Derivative [Line Items] | ||
Unrecognized pre-tax net gain (loss) on terminated hedges (to be recognized as interest primarily through 2029) | $ (56) | $ (39) |
Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months | $ (1) | $ 15 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Risk Participation Agreements (Details) - Risk Participation Agreements Sold - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Credit Derivatives [Line Items] | ||
Notional amount | $ 752 | $ 446 |
Maximum exposure assuming all underlying third party customers referenced in the interest rate contracts defaulted in a zero LIBOR rate environment | $ 47 | $ 26 |
Derivative Financial Instrum_10
Derivative Financial Instruments - Dealer Counterparties and Central Clearing Parties (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Credit Derivatives [Line Items] | ||
Cash collateral received from dealer counterparties | $ 53 | |
Cash collateral posted | 82 | |
Dealer Counterparties | ||
Credit Derivatives [Line Items] | ||
Cash collateral received from dealer counterparties | $ 103 | 56 |
Derivatives in a net gain position secured by collateral received | 102 | 55 |
Unsecured positions in a net gain with dealer counterparties after collateral postings | 1 | 2 |
Cash collateral posted | 62 | 75 |
Derivatives in a net loss position | 60 | 76 |
Additional collateral that would have been posted had BB&T's credit ratings dropped below investment grade | 0 | 1 |
Central Clearing Parties | ||
Credit Derivatives [Line Items] | ||
Cash collateral posted | 21 | 17 |
Derivatives in a net loss position | 24 | 8 |
Securities pledged to central clearing parties | $ 138 | $ 124 |
Computation of EPS (Details)
Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income available to common shareholders | $ 842 | $ 775 | $ 1,591 | $ 1,520 |
Weighted average number of common shares (in shares) | 765,958 | 775,836 | 765,052 | 777,716 |
Effect of dilutive outstanding equity-based awards (in shares) | 8,645 | 9,914 | 9,277 | 10,646 |
Weighted average number of diluted common shares (in shares) | 774,603 | 785,750 | 774,329 | 788,362 |
Basic EPS (in dollars per share) | $ 1.10 | $ 1 | $ 2.08 | $ 1.95 |
Diluted EPS (in dollars per share) | $ 1.09 | $ 0.99 | $ 2.06 | $ 1.93 |
Anti-dilutive awards (in shares) | 26 | 0 | 18 | 45 |
Operating Segments - Narrative
Operating Segments - Narrative (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Number of Major Reportable Business Segments | 4 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | $ 1,690 | $ 1,657 | $ 3,386 | $ 3,290 | ||
Allocated provision for credit losses | 172 | 135 | 327 | 285 | ||
Segment net interest income after provision | 1,518 | 1,522 | 3,059 | 3,005 | ||
Noninterest income | 1,352 | 1,222 | 2,554 | 2,402 | ||
Noninterest expense | 1,751 | 1,720 | 3,519 | 3,406 | ||
Income before income taxes | 1,119 | 1,024 | 2,094 | 2,001 | ||
Provision for income taxes | 234 | 202 | 411 | 388 | ||
Net income | 885 | 822 | 1,683 | 1,613 | ||
Identifiable assets (period end) | 230,872 | 230,872 | $ 225,697 | |||
CB-Retail | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 850 | 853 | 1,693 | 1,690 | ||
CB-Commercial | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 541 | 491 | 1,077 | 955 | ||
FS&CF | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 197 | 169 | 386 | 328 | ||
IH | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 35 | 29 | 69 | 55 | ||
OT&C | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | [1] | 67 | 115 | 161 | 262 | |
Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 1,690 | 1,657 | 3,386 | 3,290 | ||
Allocated provision for credit losses | 172 | 135 | 327 | 285 | ||
Segment net interest income after provision | 1,518 | 1,522 | 3,059 | 3,005 | ||
Noninterest income | 1,352 | 1,222 | 2,554 | 2,402 | ||
Noninterest expense | 1,751 | 1,720 | 3,519 | 3,406 | ||
Income before income taxes | 1,119 | 1,024 | 2,094 | 2,001 | ||
Provision for income taxes | 234 | 202 | 411 | 388 | ||
Net income | 885 | 822 | 1,683 | 1,613 | ||
Identifiable assets (period end) | 230,872 | 230,872 | 222,681 | |||
Operating Segments | CB-Retail | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 976 | 922 | 1,928 | 1,807 | ||
Allocated provision for credit losses | 123 | 110 | 253 | 232 | ||
Segment net interest income after provision | 853 | 812 | 1,675 | 1,575 | ||
Noninterest income | 387 | 355 | 709 | 695 | ||
Noninterest expense | 654 | 659 | 1,299 | 1,319 | ||
Income before income taxes | 586 | 508 | 1,085 | 951 | ||
Provision for income taxes | 141 | 125 | 261 | 234 | ||
Net income | 445 | 383 | 824 | 717 | ||
Identifiable assets (period end) | 76,246 | 76,246 | 72,696 | |||
Operating Segments | CB-Commercial | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 588 | 545 | 1,168 | 1,079 | ||
Allocated provision for credit losses | 39 | 43 | 58 | 80 | ||
Segment net interest income after provision | 549 | 502 | 1,110 | 999 | ||
Noninterest income | 114 | 110 | 223 | 216 | ||
Noninterest expense | 255 | 254 | 506 | 507 | ||
Income before income taxes | 408 | 358 | 827 | 708 | ||
Provision for income taxes | 89 | 80 | 180 | 159 | ||
Net income | 319 | 278 | 647 | 549 | ||
Identifiable assets (period end) | 56,450 | 56,450 | 57,011 | |||
Operating Segments | FS&CF | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 210 | 188 | 420 | 365 | ||
Allocated provision for credit losses | 14 | (4) | 15 | (9) | ||
Segment net interest income after provision | 196 | 192 | 405 | 374 | ||
Noninterest income | 329 | 303 | 613 | 604 | ||
Noninterest expense | 311 | 312 | 608 | 613 | ||
Income before income taxes | 214 | 183 | 410 | 365 | ||
Provision for income taxes | 45 | 38 | 85 | 76 | ||
Net income | 169 | 145 | 325 | 289 | ||
Identifiable assets (period end) | 33,595 | 33,595 | 30,446 | |||
Operating Segments | IH | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 25 | 22 | 48 | 42 | ||
Allocated provision for credit losses | 2 | 0 | 5 | 1 | ||
Segment net interest income after provision | 23 | 22 | 43 | 41 | ||
Noninterest income | 570 | 484 | 1,085 | 923 | ||
Noninterest expense | 444 | 408 | 861 | 783 | ||
Income before income taxes | 149 | 98 | 267 | 181 | ||
Provision for income taxes | 38 | 25 | 68 | 46 | ||
Net income | 111 | 73 | 199 | 135 | ||
Identifiable assets (period end) | 7,162 | 7,162 | 6,321 | |||
Operating Segments | OT&C | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | [1] | (109) | (20) | (178) | (3) | |
Allocated provision for credit losses | [1] | (6) | (14) | (4) | (19) | |
Segment net interest income after provision | [1] | (103) | (6) | (174) | 16 | |
Noninterest income | [1] | (48) | (30) | (76) | (36) | |
Noninterest expense | [1] | 87 | 87 | 245 | 184 | |
Income before income taxes | [1] | (238) | (123) | (495) | (204) | |
Provision for income taxes | [1] | (79) | (66) | (183) | (127) | |
Net income | [1] | (159) | (57) | (312) | (77) | |
Identifiable assets (period end) | [1] | 57,419 | 57,419 | $ 56,207 | ||
Intersegment Eliminations | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 0 | 0 | 0 | 0 | ||
Intersegment Eliminations | CB-Retail | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 126 | 69 | 235 | 117 | ||
Intersegment Eliminations | CB-Commercial | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 47 | 54 | 91 | 124 | ||
Intersegment Eliminations | FS&CF | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | 13 | 19 | 34 | 37 | ||
Intersegment Eliminations | IH | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | (10) | (7) | (21) | (13) | ||
Intersegment Eliminations | OT&C | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net interest income (expense) | [1] | $ (176) | $ (135) | $ (339) | $ (265) | |
[1] | Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure. |