Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity File Number | 1-10853 | ||
Entity Registrant Name | TRUIST FINANCIAL CORPORATION | ||
Entity Tax Identification Number | 56-0939887 | ||
Entity Address, Address Line One | 214 North Tryon Street | ||
Entity Address, City or Town | Charlotte, | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 28202 | ||
City Area Code | (336) | ||
Local Phone Number | 733-2000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 1,347,198,511 | ||
Entity Central Index Key | 0000092230 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Transition Report | false | ||
Entity Public Float | $ 50,500 | ||
Entity Incorporation, State or Country Code | NC | ||
Common Stock, $5 par value | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock, $5 par value | ||
Trading Symbol | TFC | ||
Security Exchange Name | NYSE | ||
Series F Preferred Stock | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Depositary Shares each representing 1/1,000th interest in a share of Series F Non-Cumulative Perpetual Preferred Stock | ||
Trading Symbol | TFC.PF | ||
Security Exchange Name | NYSE | ||
Series G Preferred Stock | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Depositary Shares each representing 1/1,000th interest in a share of Series G Non-Cumulative Perpetual Preferred Stock | ||
Trading Symbol | TFC.PG | ||
Security Exchange Name | NYSE | ||
Series H Preferred Stock | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Depositary Shares each representing 1/1,000th interest in a share of Series H Non-Cumulative Perpetual Preferred Stock | ||
Trading Symbol | TFC.PH | ||
Security Exchange Name | NYSE | ||
Series I | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Depositary Shares each representing 1/4,000th interest in a share of Series I Perpetual Preferred Stock | ||
Trading Symbol | TFC.PI | ||
Security Exchange Name | NYSE | ||
Series J | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | 5.853% Fixed-to-Floating Rate Normal Preferred Purchase Securities each representing 1/100th interest in a share of Series J Perpetual Preferred Stock | ||
Trading Symbol | TFC.PJ | ||
Security Exchange Name | NYSE | ||
Series O Preferred Stock | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Depositary Shares each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock | ||
Trading Symbol | TFC.PO | ||
Security Exchange Name | NYSE | ||
Series R Preferred Stock | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Depositary Shares each representing 1/1,000th interest in a share of Series R Non-Cumulative Perpetual Preferred Stock | ||
Trading Symbol | TFC.PR | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and Due from Banks | $ 5,029 | $ 4,084 |
Interest-bearing deposits with banks | 13,839 | 14,981 |
Securities borrowed or purchased under resale agreements | 1,745 | 1,417 |
Trading assets at fair value | 3,872 | 5,733 |
AFS securities at fair value | 120,788 | 74,727 |
LHFS (including $4,955 and $5,673 at fair value, respectively) | 6,059 | 8,373 |
Loans and leases | 299,734 | 299,842 |
ALLL | (5,835) | (1,549) |
Loans and leases, net of ALLL | 293,899 | 298,293 |
Premises and equipment | 3,870 | 3,712 |
Goodwill | 24,447 | 24,154 |
CDI and other intangible assets | 2,984 | 3,142 |
MSRs (including $2,023 and $2,618 at fair value, respectively) | 2,023 | 2,630 |
Other assets (including $4,891 and $3,310 at fair value, respectively) | 30,673 | 31,832 |
Total assets | 509,228 | 473,078 |
Liabilities | ||
Noninterest-bearing deposits | 127,629 | 92,405 |
Interest-bearing deposits | 253,448 | 242,322 |
Short-term borrowings (including $1,115 and $1,074 at fair value, respectively) | 6,092 | 18,218 |
Long-term debt | 39,597 | 41,339 |
Other liabilities (including $555 and $366 at fair value, respectively) | 11,550 | 12,236 |
Total liabilities | 438,316 | 406,520 |
Shareholders' Equity | ||
Preferred stock, $5 par value, liquidation preference of $25,000 per share | 8,048 | 5,102 |
Common stock, $5 par value | 6,745 | 6,711 |
Additional paid-in capital | 35,843 | 35,609 |
Retained earnings | 19,455 | 19,806 |
AOCI, net of deferred income taxes | 716 | (844) |
Noncontrolling interests | 105 | 174 |
Total shareholders' equity | 70,912 | 66,558 |
Total liabilities and shareholders' equity | $ 509,228 | $ 473,078 |
Common shares outstanding | 1,348,961 | 1,342,166 |
Common shares authorized | 2,000,000 | 2,000,000 |
Preferred shares outstanding | 280 | 145 |
Preferred shares authorized | 5,000 | 5,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Loans Held for Sale, Fair Value | $ 4,955 | $ 5,673 |
MSRs at fair value | 2,023 | 2,618 |
Other Assets, Fair Value Disclosure | 4,891 | 3,310 |
Short-term borrowings, fair value | 1,115 | 1,074 |
Other Liabilities, Fair Value Disclosure | $ 555 | $ 366 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Income | |||
Interest and fees on loans and leases | $ 13,485 | $ 7,982 | $ 6,894 |
Interest on securities | 1,739 | 1,319 | 1,160 |
Interest on other earning assets | 324 | 108 | 66 |
Total interest income | 15,548 | 9,409 | 8,120 |
Interest Expense | |||
Interest on deposits | 785 | 1,101 | 644 |
Interest on long-term debt | 800 | 797 | 683 |
Interest on other borrowings | 137 | 198 | 111 |
Total interest expense | 1,722 | 2,096 | 1,438 |
Net Interest Income | 13,826 | 7,313 | 6,682 |
Provision for credit losses | 2,335 | 615 | 566 |
Net Interest Income After Provision for Credit Losses | 11,491 | 6,698 | 6,116 |
Noninterest Income | |||
Noninterest income | 8,879 | 5,255 | 4,876 |
Noninterest Expense | |||
Personnel expense | 8,146 | 4,833 | 4,313 |
Professional fees and outside processing | 1,252 | 433 | 365 |
Net occupancy expense | 904 | 507 | 491 |
Software expense | 862 | 338 | 272 |
Amortization of intangibles | 685 | 164 | 131 |
Equipment expense | 484 | 280 | 267 |
Marketing and customer development | 273 | 137 | 102 |
Operating lease depreciation | 258 | 136 | 120 |
Loan-related expense | 242 | 123 | 108 |
Regulatory costs | 125 | 81 | 134 |
Merger-related and restructuring charges | 860 | 360 | 146 |
Loss (gain) on early extinguishment of debt | 235 | 0 | 0 |
Other expense | 571 | 542 | 483 |
Total noninterest expense | 14,897 | 7,934 | 6,932 |
Earnings | |||
Income before income taxes | 5,473 | 4,019 | 4,060 |
Provision for income taxes | 981 | 782 | 803 |
Net income | 4,492 | 3,237 | 3,257 |
Noncontrolling interests | 10 | 13 | 20 |
Net income available to the bank holding company | 4,482 | 3,224 | 3,237 |
Dividends on preferred stock | 298 | 196 | 174 |
Net income available to common shareholders | $ 4,184 | $ 3,028 | $ 3,063 |
Basic EPS | $ 3.11 | $ 3.76 | $ 3.96 |
Diluted EPS | $ 3.08 | $ 3.71 | $ 3.91 |
Basic weighted average shares outstanding (in shares) | 1,347,080 | 805,104 | 772,963 |
Diluted weighted average shares outstanding (in shares) | 1,358,289 | 815,204 | 783,484 |
Insurance income | |||
Noninterest Income | |||
Noninterest income | $ 2,193 | $ 2,072 | $ 1,852 |
Wealth management income | |||
Noninterest Income | |||
Noninterest income | 1,277 | 715 | 660 |
Service charges on deposits | |||
Noninterest Income | |||
Noninterest income | 1,020 | 762 | 712 |
Residential mortgage income | |||
Noninterest Income | |||
Noninterest income | 1,000 | 285 | 258 |
Investment banking and trading income | |||
Noninterest Income | |||
Noninterest income | 944 | 244 | 154 |
Card and payment related fees | |||
Noninterest Income | |||
Noninterest income | 761 | 555 | 522 |
Lending related fees | |||
Noninterest Income | |||
Noninterest income | 315 | 124 | 99 |
Operating lease income | |||
Noninterest Income | |||
Noninterest income | 309 | 153 | 145 |
Commercial real estate related income | |||
Noninterest Income | |||
Noninterest income | 271 | 116 | 100 |
Income from bank-owned life insurance | |||
Noninterest Income | |||
Noninterest income | 179 | 129 | 116 |
Securities gains (losses) | |||
Noninterest Income | |||
Noninterest income | 402 | (116) | 3 |
Other income (loss) | |||
Noninterest Income | |||
Noninterest income | $ 208 | $ 216 | $ 255 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 4,492 | $ 3,237 | $ 3,257 |
OCI, net of tax: | |||
Change in unrecognized net pension and postretirement costs | 247 | 42 | (160) |
Change in unrealized net gains (losses) on cash flow hedges | 37 | (70) | 61 |
Change in unrealized net gains (losses) on AFS securities | 1,274 | 880 | (144) |
Other, net | 2 | 19 | (5) |
Total OCI, net of tax | 1,560 | 871 | (248) |
Total comprehensive income | 6,052 | 4,108 | 3,009 |
Income Tax Effect of Items Included in OCI: | |||
Change in unrecognized net pension and postretirement costs | 79 | 11 | (50) |
Change in unrealized net gains (losses) on cash flow hedges | 11 | (21) | 20 |
Change in unrealized net gains (losses) on AFS securities | 396 | 271 | (45) |
Other, net | 0 | 5 | 1 |
Other Comprehensive Income (Loss), Tax | $ 486 | $ 266 | $ (74) |
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 | 3,257 | 3,237 | 20 | ||||
OCI | (248) | (248) | |||||
Stock transactions: | |||||||
Issued in business combination | 0 | ||||||
Issued in connection with equity awards, net | (6) | $ 23 | (29) | ||||
Issued in connection with equity awards, net (in shares) | 4,554 | ||||||
Repurchase of common stock (in shares) | (23,234) | ||||||
Repurchase of common stock | (1,205) | $ (116) | (1,089) | ||||
Cash dividends declared on common stock | (1,204) | (1,204) | |||||
Cash dividends declared on preferred stock | (174) | (174) | |||||
Equity-based compensation expense | 141 | 141 | |||||
Other, net | (78) | (67) | (11) | ||||
Ending balance at Dec. 31, 2018 | 30,178 | $ 3,817 | 3,053 | 6,849 | 18,118 | (1,715) | 56 |
Ending balance (in shares) at Dec. 31, 2018 | 763,326 | ||||||
Add (Deduct): | |||||||
Net income | 3,237 | 3,224 | 13 | ||||
OCI | 871 | 871 | |||||
Stock transactions: | |||||||
Issued in business combination | 33,546 | $ 2,875 | 2,045 | 28,626 | |||
Issued in business combinations (in shares) | 575,067 | ||||||
Issued in connection with equity awards, net | (15) | $ 19 | (34) | ||||
Issued in connection with equity awards, net (in shares) | 3,773 | ||||||
Issued in connection with preferred stock offering | 1,683 | 1,683 | |||||
Redemption of preferred stock | (1,725) | (1,679) | (46) | ||||
Cash dividends declared on common stock | (1,309) | (1,309) | |||||
Cash dividends declared on preferred stock | (150) | (150) | |||||
Equity-based compensation expense | 165 | 165 | |||||
Other, net | 77 | 3 | (31) | 105 | |||
Ending balance at Dec. 31, 2019 | $ 66,558 | $ 6,711 | 5,102 | 35,609 | 19,806 | (844) | 174 |
Ending balance (in shares) at Dec. 31, 2019 | 1,342,166 | 1,342,166 | |||||
Add (Deduct): | |||||||
Net income | $ 4,492 | 4,482 | 10 | ||||
OCI | 1,560 | 1,560 | |||||
Stock transactions: | |||||||
Issued in business combination | 0 | ||||||
Issued in connection with equity awards, net | (87) | $ 34 | (119) | (2) | |||
Issued in connection with equity awards, net (in shares) | 6,795 | ||||||
Issued in connection with preferred stock offering | 3,449 | 3,449 | |||||
Redemption of preferred stock | (500) | (503) | 3 | ||||
Cash dividends declared on common stock | (2,424) | (2,424) | |||||
Cash dividends declared on preferred stock | (301) | (301) | |||||
Equity-based compensation expense | 353 | 353 | |||||
Cumulative effect adjustment for new accounting standards | (2,109) | (2,109) | |||||
Other, net | (79) | (79) | |||||
Ending balance at Dec. 31, 2020 | $ 70,912 | $ 6,745 | $ 8,048 | $ 35,843 | $ 19,455 | $ 716 | $ 105 |
Ending balance (in shares) at Dec. 31, 2020 | 1,348,961 | 1,348,961 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities: | |||
Net income | $ 4,492 | $ 3,237 | $ 3,257 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Provision for credit losses | 2,335 | 615 | 566 |
Depreciation | 923 | 466 | 424 |
Amortization of intangibles | 685 | 164 | 131 |
Equity-based compensation expense | 353 | 165 | 141 |
Securities (gains) losses | (402) | 116 | (3) |
Net change in operating assets and liabilities: | |||
LHFS | 718 | (1,895) | 188 |
MSRs | 607 | 97 | (52) |
Pension asset | (779) | (1,815) | 99 |
Derivative assets and liabilities | (2,690) | (312) | (85) |
Increase (Decrease) in Debt Securities, Trading, and Equity Securities, FV-NI | 1,861 | 368 | 242 |
Other assets and other liabilities | 186 | 379 | (33) |
Other, net | (852) | (65) | (526) |
Net cash from operating activities | 7,437 | 1,520 | 4,349 |
Cash Flows From Investing Activities: | |||
Proceeds from sales of AFS securities | 5,276 | 36,780 | 383 |
Proceeds from maturities, calls and paydowns of AFS securities | 24,627 | 4,797 | 3,674 |
Purchases of AFS securities | (72,808) | (42,646) | (4,722) |
Proceeds from maturities, calls and paydowns of HTM securities | 0 | 2,499 | 2,442 |
Originations and purchases of loans and leases, net of sales and principal collected | 2,613 | 656 | (6,266) |
Net cash received (paid) for FHLB stock | 600 | 147 | (47) |
Net cash paid for premises and equipment | (815) | (224) | (363) |
Net cash received (paid) for mergers, acquisitions and divestitures | (2,439) | 6,256 | (296) |
Other, net | (706) | 83 | 232 |
Net cash from investing activities | (43,652) | 8,348 | (4,963) |
Cash Flows From Financing Activities: | |||
Net change in deposits | 48,599 | 2,917 | 3,838 |
Net change in short-term borrowings | (12,124) | 6,293 | 240 |
Proceeds from issuance of long-term debt | 26,644 | 7,084 | 2,769 |
Repayment of long-term debt | (28,278) | (9,265) | (2,533) |
Repurchase of common stock | 0 | 0 | (1,205) |
Net proceeds from preferred stock issued | 3,449 | 1,683 | 0 |
Redemption of preferred stock | (500) | (1,725) | 0 |
Cash dividends paid on common stock | (2,424) | (1,309) | (1,204) |
Cash dividends paid on preferred stock | (301) | (150) | (174) |
Net cash received (paid) for hedge unwinds | 1,101 | (130) | (126) |
Other, net | (148) | (45) | (103) |
Net cash from financing activities | 36,018 | 5,353 | 1,502 |
Net Change in Cash and Cash Equivalents | (197) | 15,221 | 888 |
Cash and Cash Equivalents, January 1 | 19,065 | 3,844 | 2,956 |
Cash and Cash Equivalents, December 31 | 18,868 | 19,065 | 3,844 |
Supplemental Disclosure of Cash Flow Information: | |||
Net cash paid (received) during the period for interest expense | 1,834 | 1,921 | 1,408 |
Net cash paid (received) during the period for income taxes | 126 | 443 | 99 |
Noncash investing activities: | |||
Transfer of loans HFI to LHFS | 2,562 | 7,434 | 77 |
Stock issued in business combinations | 0 | 33,546 | 0 |
Transfer of HTM securities to AFS | $ 0 | $ 18,022 | $ 0 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Truist Financial Corporation is a purpose-driven financial services company committed to inspire and build better lives and communities. With the combined history of BB&T and SunTrust, Truist has leading market share in many high-growth markets in the country. The Company offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending; and wealth management. Headquartered in Charlotte, North Carolina, Truist is the sixth-largest commercial bank in the U.S. The Company operates and measures business activity across three business segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings. For additional information on the Company’s business segments, see "Note 21. Operating Segments." General See the Glossary of Defined Terms at the beginning of this Report for terms used herein. The accounting and reporting policies are in accordance with GAAP. Additionally, where applicable, the policies conform to the accounting and reporting guidelines prescribed by regulatory authorities. The following is a summary of significant accounting policies. Principles of Consolidation The consolidated financial statements include the accounts of Truist Financial Corporation and those subsidiaries that are wholly or majority owned by Truist or over which Truist exercises control. Intercompany accounts and transactions are eliminated in consolidation. The results of operations of companies or assets acquired are included from the date of acquisition. Results of operations associated with entities or net assets sold are included through the date of disposition. Truist holds investments in certain legal entities that are considered VIEs. VIEs are legal entities in which equity investors do not have sufficient equity at risk for the entity to independently finance its activities, or as a group, the holders of the equity investment at risk lack the power through voting or similar rights to direct the activities of the entity that most significantly impact its economic performance, or do not have the obligation to absorb the expected losses of the entity or the right to receive expected residual returns of the entity. Consolidation of a VIE is required if a reporting entity is the primary beneficiary of the VIE. Investments in VIEs are evaluated to determine if Truist is the primary beneficiary. This evaluation gives appropriate consideration to the design of the entity and the variability that the entity was designed to create and pass along, the relative power of each party, and to Truist's obligation to absorb losses or receive residual returns of the entity. Truist has variable interests in certain entities that are not required to be consolidated, including affordable housing and other partnership interests. Refer to "Note 16. Commitments and Contingencies" for additional disclosures regarding Truist's VIEs. Investments in entities for which the Company has the ability to exercise significant influence, but not control, over operating and financing decisions are accounted for using the equity method of accounting. These investments are included in Other assets in the Consolidated Balance Sheets at cost, adjusted to reflect the Company’s portion of income, loss, or dividends of the investee. Truist records its portion of income or loss in Other noninterest income in the Consolidated Statements of Income. These investments are periodically evaluated for impairment. The Company reports any noncontrolling interests in its subsidiaries in the equity section of the Consolidated Balance Sheets and separately presents the income or loss attributable to the noncontrolling interest of a consolidated subsidiary in its Consolidated Statements of Income. 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 during the reporting periods. Actual results could differ from those estimates. Business Combinations Truist accounts for business combinations using the acquisition method. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. See "Note 2. Business Combinations" for further discussion of the Merger and its impact on the Company’s consolidated financial statements. Cash and Cash Equivalents Cash and cash equivalents includes cash and due from banks and interest-bearing deposits with banks that have original maturities of three months or less. Accordingly, the carrying amount of such instruments is considered a reasonable estimate of fair value. Restricted cash was immaterial at December 31, 2020 and 2019. Securities Financing Activities The Company borrows securities and purchases securities under agreements to resell as part of its securities financing activities. On the acquisition date of these securities, the Company and related counterparty agree on the amount of collateral required to secure the principal amount loaned under these agreements. The Company monitors collateral values daily and calls for additional collateral to be provided as warranted under the respective agreements. Short-term borrowings include securities sold under agreements to repurchase, which are accounted for as collateralized financing transactions and are recorded at the amounts at which the securities were sold, plus accrued interest within Short-term borrowings. Trading Activities Various trading assets and liabilities are used to accommodate the investment and risk management activities of the Company's clients. Product offerings to clients include debt securities, loans traded in the secondary market, equity securities, derivative contracts, and other similar financial instruments. The Company elects to apply fair value accounting to trading loans. Trading loans include: (i) loans held in connection with the Company's trading business primarily consisting of commercial and corporate leveraged loans; (ii) certain SBA loans guaranteed by the U.S. government; and (iii) loans made or acquired in connection with the Company’s TRS business. Other trading-related activities include acting as a market maker for certain debt and equity security transactions, derivative instrument transactions, and foreign exchange transactions. Trading assets and liabilities are measured at fair value with changes in fair value recognized within Noninterest income in the Company’s Consolidated Statements of Income. Interest income on trading account securities is included in Interest on other earning assets. For additional information on the Company’s trading activities, see "Note 16. Commitments and Contingencies" and "Note 18. Fair Value Disclosures." Investment Securities The Company invests in various debt securities primarily for liquidity management purposes and as part of the overall ALM process to optimize income and market performance. Investments in debt securities that are not held for trading purposes are classified as AFS. Interest income on securities is recognized in income on an accrual basis. Premiums and discounts are amortized into interest income using the effective interest method over the contractual life of the security. As prepayments are received, a proportionate amount of the related premium or discount is recognized in income so that the effective interest rate on the remaining portion of the security continues unchanged. AFS securities are reported at estimated fair value, with unrealized gains and losses reported in AOCI, net of deferred income taxes, in the Shareholders' equity section of the Consolidated Balance Sheets. Gains or losses realized from the sale of AFS securities are determined by specific identification and are included in noninterest income. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. AFS debt securities in an unrealized loss position are evaluated at the balance sheet date to determine whether such losses are credit-related. Credit losses are measured on an individual basis and recognized in an ACL. Changes in expected credit losses are recognized in the Provision for credit losses in the Consolidated Statements of Income. Municipal securities are evaluated for impairment using a municipal bond credit scoring tool that leverages historical municipal market data to estimate probability of default and loss given default at the issuer level. U.S. Treasury securities, government guaranteed securities, and other securities issued by GSEs are either explicitly or implicitly guaranteed by the US government, are highly rated by rating agencies and have a long history of no credit losses. There was no ACL on the Company’s AFS debt securities at December 31, 2020. Prior to the adoption of CECL on January 1, 2020, investment securities in an unrealized loss position were evaluated quarterly for OTTI. Truist considered such factors as the length of time and the extent to which the fair value was below amortized cost, long term expectations and recent experience regarding principal and interest payments, Truist's intent to sell and whether it was more-likely-than-not that the Company would be required to sell those securities before the anticipated recovery of the amortized cost basis. The credit component of an OTTI loss was recognized in earnings and the non-credit component was recognized in AOCI, net of tax, in situations where Truist did not intend to sell the security and it was more-likely-than-not that Truist would have been required to sell the security prior to recovery. Subsequent to recognition of OTTI, an increase in expected cash flows was recognized as a yield adjustment over the remaining expected life of the security based on an evaluation of the nature of the increase. Equity Securities Equity securities that are not classified as trading assets or liabilities are recorded in Other assets on the Company’s Consolidated Balance Sheets. Equity securities with readily determinable fair values are considered marketable and measured at fair value, with changes in the fair value recognized as a component of Noninterest income in the Company’s Consolidated Statements of Income. Marketable equity securities include mutual fund investments and other publicly traded equity securities. Dividends received from marketable equity securities and FHLB stock are recognized within Interest income in the Consolidated Statements of Income. Equity securities that are not accounted for under the equity method and that do not have readily determinable fair values are considered non-marketable and are accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Any adjustments to the carrying value of these non-marketable equity securities are recognized in Other noninterest income in the Company’s Consolidated Statements of Income. Non-marketable equity securities include FHLB stock and other equity investments. For additional information on the Company’s equity securities, see "Note 18. Fair Value Disclosures." LHFS LHFS includes residential and commercial mortgage loans that management intends to sell in the secondary market and other loans that management has an active plan to sell. The Company elects to apply fair value accounting to substantially all residential and commercial mortgage loans that are originated with the intent to be sold in the secondary market. Direct loan origination fees associated with these loans are recorded as Residential mortgage and Commercial real estate related income. The majority of direct origination costs are recorded in Personnel expense. The fair value of these loans is derived from observable current market prices when available and includes loan servicing value. When observable market prices are not available, the Company uses judgment and estimates fair value using internal models that reflect assumptions consistent with those that would be used by a market participant in estimating fair value. First lien residential mortgage LHFS are transferred in conjunction with GNMA and GSE securitization transactions, whereby the loans are exchanged for cash or securities that are readily redeemable for cash with servicing rights retained. Net gains/losses on the sale of residential mortgage LHFS are recorded at inception of the associated interest rate lock commitments and reflect the change in value of the loans resulting from changes in interest rates from the time the Company enters into interest rate lock commitments with borrowers until the loans are sold, adjusted for pull through rates and excluding hedge transactions initiated to mitigate this market risk. Commercial mortgage LHFS are sold to FNMA and FHLMC and the Company also issues and sells GNMA commercial MBS backed by FHA insured loans. The loans and securities are exchanged for cash with servicing rights retained. Gains and losses on sales of residential and commercial mortgage loans are included in Residential mortgage and Commercial real estate income, respectively. LHFS also includes specifically identified loans where management has committed to a formal plan of sale and the loans are available for immediate sale. These loans are generally recorded at LOCOM. Origination fees and costs for such loans are capitalized in the basis of the loan and are included in the calculation of realized gains and losses upon sale. Adjustments to reflect unrealized losses resulting from changes in fair value and realized gains and losses upon ultimate sale of the loans are classified as Noninterest income in the Consolidated Statements of Income. The fair value of these loans is estimated using observable market prices when available, but may also incorporate consideration of other unobservable inputs such as indicative bids, broker price opinions or other information derived from internal or external data sources. In certain circumstances, the Company may transfer certain loans from HFI to LHFS. At the time of transfer, any credit losses are subject to charge-off in accordance with the Company’s policy and are recorded as a reduction in the ALLL. Any subsequent losses, including those related to interest rate or liquidity-related valuation adjustments are recorded as a component of Noninterest income in the Consolidated Statements of Income. For additional information on the Company’s LHFS, see "Note 18. Fair Value Disclosures." Loans and Leases The Company's accounting methods for loans differ depending on whether the loans are originated or purchased, and if purchased, whether or not the loans reflect credit deterioration since the date of origination such that at the date of acquisition there is more than an insignificant deterioration in credit. Originated Loans and Leases Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances net of any unearned income, charge-offs, and unamortized fees and costs. Interest and fees on loans and leases includes certain loan fees and deferred direct costs associated with the lending process recognized over the contractual lives of the loans using the effective interest method. Purchased Loans Purchased loans are recorded at their fair value at the acquisition date. Fair values for purchased loans are based on a discounted cash flow methodology that considers credit loss expectations, market interest rates and other market factors such as liquidity from the perspective of a market participant. Loans are grouped together according to similar characteristics and treated in the aggregate when applying various valuation techniques. The probability of default, loss given default and prepayment assumptions are the key factors driving credit losses which are embedded into the estimated cash flows. These assumptions are informed by internal data on loan characteristics, historical loss experience, and current and forecasted economic conditions. The interest and liquidity component of the estimate are determined by discounting interest and principal cash flows through the expected life of the underlying loans. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity. The discount rates do not include a factor for credit losses as that has been included as a reduction to the estimated cash flows. Beginning January 1, 2020, purchased loans are evaluated upon acquisition and classified as either PCD, which indicates that the loan reflects more-than-insignificant deterioration in credit quality since origination, or non-PCD. Truist considers a variety of factors in connection with the identification of more-than-insignificant deterioration in credit quality, including but not limited to risk grades, delinquency, nonperforming status, previous troubled debt restructurings or bankruptcies and other qualitative factors that indicate deterioration in credit quality since origination. For PCD loans, the initial estimate of expected credit losses is determined using the same methodology as other loans held for investment and recognized as an adjustment to the acquisition price of the asset; thus, the sum of the loans’ purchase price and initial ALLL estimate represents the initial amortized cost basis. The difference between the initial amortized cost basis and the par value is the non-credit discount or premium. For non-PCD loans, the difference between the fair value and the par value is considered the fair value mark. The initial ALLL for non-PCD loans is recorded with a corresponding charge to the Provision for credit losses in the Consolidated Statements of Income. Subsequent changes in the ALLL related to PCD and non-PCD loans are recognized in the Provision for credit losses. The non-credit discount or premium related to PCD loans and the fair value mark on non-PCD loans are amortized or accreted to Interest and fees on loans and leases over the contractual life of the loans using the effective interest method for amortizing loans, and using a straight-line approach for interest-only loans and loans associated with a revolving commitment. In the event of prepayment, unamortized discounts or premiums are recognized in Interest and fees on loans and leases. TDRs Modifications to a borrower's debt agreement are considered TDRs if a concession is granted for economic or legal reasons related to a borrower's financial difficulties that otherwise would not be considered. TDRs are undertaken to improve the likelihood of recovery on the loan and may take the form of modifications that result in the stated interest rate of the loan being lower than the current market rate for new debt with similar risk, other modifications to the structure of the loan that fall outside of normal underwriting policies and procedures, or in certain limited circumstances, forgiveness of principal or interest. A restructuring that results in only a delay in payments that is insignificant is not considered an economic concession. In accordance with the CARES Act, Truist implemented loan modification programs in response to the COVID-19 pandemic in order to provide borrowers with flexibility with respect to repayment terms. Payment relief assistance provided by Truist includes forbearance, deferrals, extension and re-aging programs, along with certain other modification strategies. The Company adopted certain provisions of the CARES Act and other regulatory guidance that provide relief from the requirement to apply TDR accounting to (1) certain modifications of federally backed mortgages upon request from the borrower, and (2) certain modifications of other non-federally backed mortgages for borrowers impacted by the COVID-19 pandemic that were less than 30 days past due at December 31, 2019. In other circumstances the Company applied TDR relief provided by the regulatory agencies for borrowers who received short-term modifications as a result of COVID-19 and were less than 30 days past due at the time that the Company's COVID-19 loan modification program was implemented, or for federally backed loans, the modification was mandated by the government in response to COVID-19. TDRs can be classified as performing or nonperforming, depending on the individual facts and circumstances of the borrower and an evaluation as to whether the borrower will be able to repay the loan based on the modified terms. In circumstances where the TDR involves charging off a portion of the loan balance, Truist classifies these TDRs as nonperforming. The decision to maintain a commercial TDR on performing status is based on a current, well documented credit evaluation of the borrower's financial condition and prospects for repayment under the modified terms. This evaluation includes consideration of the borrower's current capacity to pay, which among other things may include a review of the borrower's current financial statements, an analysis of cash flow available to pay debt obligations, and an evaluation of secondary sources of payment from the borrower and any guarantors. This evaluation also includes an evaluation of the borrower's current willingness to pay, which may include a review of past payment history, an evaluation of the borrower's willingness to provide information on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. The credit evaluation may also include review of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest and trends indicating improving profitability and collectability of receivables. The evaluation of mortgage and other consumer loans includes an evaluation of the client's debt-to-income ratio, credit report, property value and certain other client-specific factors that impact the clients’ ability to make timely principal and interest payments on the loan. TDR classification may be removed due to the passage of time if the loan: (i) did not include a forgiveness of principal or interest, (ii) has performed in accordance with the modified terms (generally a minimum of six months), (iii) was reported as a TDR over a year-end reporting period, and (iv) reflected an interest rate on the modified loan that was no less than a market rate at the date of modification. TDR classification may also be removed for an accruing loan upon the occurrence of a subsequent non-concessionary modification granted at market terms and within current underwriting guidelines. In connection with consumer TDRs, a NPL will be returned to accruing status when (i) the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments, (ii) management concludes that all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment, and (iii) there is a sustained period of repayment performance, generally a minimum of six months. NPAs NPAs include NPLs and foreclosed property. Foreclosed property consists of real estate and other assets acquired as a result of clients' loan defaults. Truist's policies for placing loans on nonperforming status conform to guidelines prescribed by bank regulatory authorities. Truist classifies loans and leases as past due when the payment of principal and interest based upon contractual terms is greater than 30 days delinquent or if one payment is past due. Payment deferrals granted as a result of the COVID-19 pandemic do not result in a loan becoming past due. The following table summarizes the delinquency thresholds that are a factor used in evaluating nonperforming classification and the timing of charge-off evaluations: (number of days) Placed on Nonperforming (1) Evaluated for Charge-off Commercial: Commercial and industrial 90 (2) 90 (2) CRE 90 (2) 90 (2) Commercial construction 90 (2) 90 (2) Lease financing 90 (2) 90 (2) Consumer: Residential mortgage (3) 90 to 180 90 to 210 Residential home equity and direct (3) 90 to 120 90 to 180 Indirect auto (3) 90 120 Indirect other (3) 90 to 120 120 to 180 Student (4) (5) NA 120 to 180 Credit card (6) NA 90 to 180 (1) Loans may be returned to performing status when (i) the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments, (ii) management concludes that all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment, and (iii) there is a sustained period of repayment performance, generally a minimum of six months. (2) Or when it is probable that principal or interest is not fully collectible, whichever occurs first. (3) Depends on product type, loss mitigation status, status of the government guaranty, if applicable, and certain other product-specific factors. (4) Student loans are not placed in nonperforming status, which reflects consideration of governmental guarantees or accelerated charge-off policies related to certain non-guaranteed portfolios. (5) Claims related to government guaranteed loans may be filed once the loans reach 270 days past due. The non-guaranteed balance, which ranges from 2-3%, is charged off once the claim proceeds related to the guaranteed portion have been received. (6) Credit cards are generally not placed on nonperforming status, but are fully charged off at specified delinquency dates consistent with regulatory guidelines. When commercial loans are placed on nonperforming status, a charge-off is recorded, as applicable, to decrease the carrying value of such loans to the estimated recoverable amount. Consumer and credit card loans are subject to charge-off at a specified delinquency date consistent with regulatory guidelines. Certain past due loans may remain on performing status if management determines that it does not have concern over the collectability of principal and interest. Generally, when loans are placed on nonperforming status, accrued interest receivable is reversed against interest income in the current period and amortization of deferred loan fees and expenses for originated loans, and fair value marks for purchased loans, is suspended. For commercial loans and certain consumer loans, payments received for interest and lending fees thereafter are applied as a reduction to the remaining principal balance as long as concern exists as to the ultimate collection of the principal. Interest income on nonperforming loans is recognized after the principal has been reduced to zero. If and when borrowers demonstrate the ability to repay a loan classified as nonperforming in accordance with its contractual terms, the loan may be returned to performing status upon meeting all regulatory, accounting and internal policy requirements. Accrued interest is included in Other assets in the Consolidated Balance Sheets. Accrued interest receivable balances are not considered in connection with the ACL estimation process, as such amounts are generally reversed against interest income when the loan is placed in nonperforming status. The Company has deferred interest income recognition on the estimated uncollectible portion of accrued interest on loans that were provided payment relief assistance in connection with the CARES Act. Assets acquired as a result of foreclosure are initially recorded at fair value less estimated cost to sell and subsequently carried at the lower of cost or net realizable value. Net realizable value equals fair value less estimated selling costs. Any excess of cost over net realizable value at the time of foreclosure is charged to the ALLL. NPAs are subject to periodic revaluations of the collateral underlying impaired loans and foreclosed real estate. The periodic revaluations are generally based on the appraised value of the property and may include additional liquidity adjustments based upon the expected retention period. Truist's policies require that valuations be updated at least annually and that upon foreclosure, the valuation must not be more than six months old, otherwise an update is required. Any subsequent changes in value as well as gains or losses from the disposition of these assets are recognized in Other noninterest expense in the Consolidated Statements of Income. For additional information on the Company’s loan and lease activities, see "Note 5. Loans and ACL." ACL The ACL includes the ALLL and RUFC. The ACL represents management's best estimate of expected future credit losses related to loan and lease portfolios and off-balance sheet lending commitments at the balance sheet date. The ALLL is a valuation account that is deducted from or added to the loans’ amortized cost basis to present the net amount expected to be collected on loans. The entire amount of the ACL is available to absorb losses on any loan category or lending-related commitment. Loan or lease balances deemed to be uncollectible are charged off against the ALLL. Expected recoveries of amounts previously charged off are incorporated into the ALLL estimate, with such amounts capped at the aggregate of amounts previously charged off. Changes to the ACL are made by charges to the Provision for credit losses, which is reflected in the Consolidated Statements of Income. The RUFC is recorded in Other liabilities on the Consolidated Balance Sheets. Portfolio segments represent the level at which Truist develops and documents a systematic methodology to determine its ACL. Truist’s loan and lease portfolio consists of three portfolio segments; commercial, consumer and credit card. The expected credit loss models are generally developed one level below the portfolio segment level. In certain instances, loans are further disaggregated by similar risk characteristics, such as business sector, client type, funding type, type of collateral, whether loan payments are interest-only and whether interest rates are fixed or variable. Larger loans and leases that do not share similar risk characteristics or that are considered collateral-dependent are individually evaluated. For these loans, the ALLL is determined through review of data specific to the borrower and related collateral, if any. Such estimates may be based on current loss forecasts, an evaluation of the fair value of the underlying collateral or in certain circumstances the present value of expected cash flows discounted at the loan's effective interest as described further below. The commercial portfolio segment models use a risk rating approach to estimate the ALLL. Truist may also consider specific environmental, social, and governance considerations in the risk rating methodology for commercial loans. The consumer and credit card models use a delinquency-based approach to estimate the ALLL. In addition to these quantitatively calculated components, the ALLL includes qualitatively calculated components. Truist maintains a collectively calculated ALLL for loans with similar risk characteristics. The collectively calculated ALLL is estimated using relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable forecasts. Truist maintains quantitative models to forecast expected credit losses. The credit loss forecasting models use portfolio balances, macroeconomic forecast data, portfolio composition and loan attributes as the primary inputs. Loss estimates are informed by historical loss experience adjusted for macroeconomic forecast data and current and expected portfolio risk characteristics. Expected losses are estimated through contractual maturity unless the borrower has a right to renew that is not cancellable or it is reasonably expected that the loan will be modified as a TDR. The Scenario Committee provides guidance, selection, and approval for enterprise-sanctioned macroeconomic forecast data, including the macroeconomic forecast data for |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Business Combinations Effective December 6, 2019, the Company completed its Merger with SunTrust. The Merger was accounted for as a business combination. Accordingly, the assets acquired and liabilities assumed were recorded at their fair values as of the Merger date. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. Fair value estimates related to the acquired assets and liabilities are subject to adjustment until all necessary information related to the valuation process has been received. Adjustments were finalized within one year of the closing date of the Merger. Immaterial amounts of the intangible assets recognized are deductible for income tax purposes. The following table sets forth the allocation of Merger consideration to the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of SunTrust as of December 6, 2019: (Dollars in millions) UPB Fair Value Fair value of Merger consideration $ 33,547 Assets Cash and due from banks 1,621 Interest-bearing deposits with banks 4,668 Securities borrowed or purchased under resale agreements 1,191 Trading assets 5,710 AFS securities 30,986 LHFS 3,752 Loans and leases: Commercial and industrial $ 68,687 67,101 CRE 9,509 9,357 Commercial Construction 2,136 2,096 Commercial Leases 3,967 3,743 Mortgage Loans 28,191 27,180 Home Equity and Direct Lending 15,917 15,628 Indirect Auto 12,373 12,203 Indirect Other 4,678 4,445 Student Lending 6,867 6,657 Credit Card 2,518 2,497 PCI 3,652 3,126 Total loans and leases $ 158,495 154,033 Premises and equipment 1,496 CDI and other intangible assets 2,734 MSRs 1,605 Other assets 13,646 Total assets 221,442 Liabilities and Equity Deposits (170,633) Short-term borrowings (6,837) Long-term debt (19,484) Other liabilities (5,011) Total liabilities (201,965) Noncontrolling interest (108) Less: Net assets 19,369 Goodwill $ 14,178 The following is a description of the methods used to determine the fair values of significant assets and liabilities. Cash and cash equivalents; Interest-bearing deposits with banks, and Federal Funds sold and securities purchased under resale agreements: The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets. Trading assets and AFS Securities: Fair values for trading and AFS securities are based on quoted market prices, where available. If quoted market prices are not available, fair value estimates are based on observable inputs including quoted market prices for similar instruments, quoted market prices that are not in an active market or other inputs that are observable in the market. In the absence of observable inputs, fair value is estimated based on pricing models and/or discounted cash flow methodologies. The majority of AFS securities were priced by third party vendors whereas trading securities are priced internally. All securities are subject to IPV. Trading loans are valued primarily using quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active by a third party pricing service. LHFS: The fair value is primarily based on quoted market prices for securities backed by similar types of loans, adjusted for servicing, interest rate risk and credit risk. Loans and leases: Fair values for loans are based on a discounted cash flow methodology that considered credit loss expectations, market interest rates and other market factors such as liquidity from the perspective of a market participant. Loans are grouped together according to similar characteristics and are treated in the aggregate when applying various valuation techniques. The probability of default, loss given default and prepayment assumptions are the key factors driving credit losses which are embedded into the estimated cash flows. These assumptions are informed by internal data on loan characteristics, historical loss experience, and current and forecasted economic conditions. The interest and liquidity component of the estimate was determined by discounting interest and principal cash flows through the expected life of each loan. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity. The discount rates do not include a factor for credit losses as that has been included as a reduction to the estimated cash flows. All of the merged loans were marked to fair value as of the Merger date and therefore, there was no allowance related to these loans. CDI: This intangible asset represents the value of the relationships with certain deposit clients. The fair value was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected client attrition rates, cost of the deposit base, reserve requirements, net maintenance cost attributable to client deposits and an estimate of the cost associated with alternative funding sources. The discount rates used for CDI assets are based on current market rates. The CDI is being amortized over 10 years based upon the estimated economic benefits received. 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. Commercial MSRs are valued using a cash flow valuation model that calculates the present value of estimated future net servicing cash flows. Deposits: The fair values used for the demand and savings deposits by definition equal the amount payable on demand at the Merger date. The fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered to the contractual interest rates on such time deposits. Short-term borrowings: The carrying amounts of short-term borrowings are reasonable estimates of fair value based on the short-term nature of these liabilities. The fair value of securities sold short is determined in the same manner as trading securities. 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. Preferred stock: The fair values of preferred stock are estimated based on quoted market prices for the instruments. Branch Divestitures In July 2020, Truist completed the divestiture of 30 branches to First Horizon Bank, a wholly owned subsidiary of First Horizon National Corporation, to satisfy regulatory requirements in connection with the Merger. The branches were located in North Carolina, Virginia and Georgia. There were $425 million in loans and leases and $2.2 billion in deposits divested as part of this transaction. Acquisitions |
Securities Financing Activities
Securities Financing Activities | 12 Months Ended |
Dec. 31, 2020 | |
Offsetting [Abstract] | |
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure | Securities Financing Activities Securities purchased under resale agreements are primarily collateralized by U.S. government or agency securities and are carried at the amounts at which the securities will be subsequently sold, plus accrued interest. Securities borrowed are primarily collateralized by corporate securities. The Company borrows securities and purchases securities under agreements to resell as part of its securities financing activities. On the acquisition date of these securities, the Company and the related counterparty agree on the amount of collateral required to secure the principal amount loaned under these arrangements. The Company monitors collateral values daily and calls for additional collateral to be provided as warranted under the respective agreements. At December 31, 2020 and 2019, the total market value of collateral held was $1.7 billion and $1.4 billion, of which $27 million and $135 million was repledged, respectively. The following table presents securities borrowed or purchased under resale agreements: December 31, 2020 2019 Securities purchased under resale agreements $ 1,158 $ 986 Securities borrowed 587 431 Total securities borrowed or purchased under resale agreements $ 1,745 $ 1,417 For securities sold under agreements to repurchase, the Company would be obligated to provide additional collateral in the event of a significant decline in fair value of the collateral pledged. This risk is managed by monitoring the liquidity and credit quality of the collateral, as well as the maturity profile of the transactions. Refer to "Note 16. Commitments and Contingencies" for additional information related to pledged securities. Securities sold under agreements to repurchase are accounted for as secured borrowings. The following table presents the Company’s related activity, by collateral type and remaining contractual maturity: December 31, 2020 2019 Overnight and Continuous Up to 30 days Total Overnight and Continuous Up to 30 days 30-90 days Total U.S. Treasury $ 305 $ 31 $ 336 $ 115 $ 35 $ — $ 150 GSE 45 9 54 87 37 — 124 Agency MBS - residential 442 6 448 928 41 100 1,069 Corporate and other debt securities 204 179 383 310 316 — 626 Total securities sold under agreements to repurchase $ 996 $ 225 $ 1,221 $ 1,440 $ 429 $ 100 $ 1,969 There were no securities financing transactions subject to legally enforceable master netting arrangements that were eligible for balance sheet netting for the periods presented. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Investment Securities The following tables summarize the Company's AFS securities: December 31, 2020 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 1,721 $ 25 $ — $ 1,746 GSE 1,840 77 — 1,917 Agency MBS - residential 111,589 1,975 23 113,541 Agency MBS - commercial 2,987 72 2 3,057 States and political subdivisions 447 47 1 493 Other 34 — — 34 Total AFS securities $ 118,618 $ 2,196 $ 26 $ 120,788 December 31, 2019 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 2,275 $ 7 $ 6 $ 2,276 GSE 1,847 34 — 1,881 Agency MBS - residential 67,983 411 158 68,236 Agency MBS - commercial 1,335 13 7 1,341 States and political subdivisions 557 34 6 585 Non-agency MBS 190 178 — 368 Other 40 — — 40 Total AFS securities $ 74,227 $ 677 $ 177 $ 74,727 Certain securities issued by FNMA and FHLMC exceeded 10% of shareholders' equity at December 31, 2020. The FNMA investments had total amortized cost and fair value of $28.5 billion and $29.0 billion, respectively. The FHLMC investments had total amortized cost and fair value of $29.0 billion and $29.4 billion, respectively. 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 may have the right to prepay their obligations with or without penalties. Amortized Cost Fair Value December 31, 2020 Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years Total Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years Total AFS securities: U.S. Treasury $ 253 $ 1,468 $ — $ — $ 1,721 $ 254 $ 1,492 $ — $ — $ 1,746 GSE 282 1,487 — 71 1,840 288 1,553 — 76 1,917 Agency MBS - residential — 1 427 111,161 111,589 — 1 441 113,099 113,541 Agency MBS - commercial — 1 9 2,977 2,987 — 2 10 3,045 3,057 States and political subdivisions 29 128 100 190 447 29 132 115 217 493 Other 1 7 — 26 34 1 7 — 26 34 Total AFS securities $ 565 $ 3,092 $ 536 $ 114,425 $ 118,618 $ 572 $ 3,187 $ 566 $ 116,463 $ 120,788 The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or more Total December 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 17 $ — $ — $ — $ 17 $ — Agency MBS - residential 4,028 21 203 2 4,231 23 Agency MBS - commercial 463 2 4 — 467 2 States and political subdivisions 20 — 32 1 52 1 Other 6 — — — 6 — Total $ 4,534 $ 23 $ 239 $ 3 $ 4,773 $ 26 Less than 12 months 12 months or more Total December 31, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 702 $ 6 $ — $ — $ 702 $ 6 GSE 6 — — — 6 — Agency MBS - residential 20,328 145 1,326 13 21,654 158 Agency MBS - commercial 545 5 124 2 669 7 States and political subdivisions 65 1 144 5 209 6 Total $ 21,646 $ 157 $ 1,594 $ 20 $ 23,240 $ 177 At December 31, 2020, no ACL was established for AFS securities. 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. The majority of the unrealized loss on states and political subdivisions securities was the result of fair value hedge basis adjustments that are a component of amortized cost. The following table presents gross securities gains and losses recognized in earnings: Year Ended December 31, 2020 2019 2018 Gross realized gains $ 404 $ 47 $ 4 Gross realized losses (2) (163) (1) Securities gains (losses), net $ 402 $ (116) $ 3 For 2020, the realized gains primarily relate to the sales of non-agency and agency MBS in the second and third quarter, respectively. |
Loans and ACL
Loans and ACL | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans and ACL | Loans and ACL The following tables present loans and leases HFI by aging category. Government guaranteed loans are not placed on nonaccrual status regardless of delinquency because collection of principal and interest is reasonably assured. The past due status of loans that received a deferral under the CARES Act is generally frozen during the deferral period. In certain limited circumstances, accommodation programs result in the delinquency status being reset to current. Accruing December 31, 2020 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 137,726 $ 83 $ 13 $ 532 $ 138,354 CRE 26,506 14 — 75 26,595 Commercial construction 6,472 5 — 14 6,491 Lease financing 5,206 6 — 28 5,240 Consumer: Residential mortgage 45,333 782 841 316 47,272 Residential home equity and direct 25,751 98 10 205 26,064 Indirect auto 25,498 495 2 155 26,150 Indirect other 11,102 68 2 5 11,177 Student 5,823 618 1,111 — 7,552 Credit card 4,759 51 29 — 4,839 Total $ 294,176 $ 2,220 $ 2,008 $ 1,330 $ 299,734 Accruing December 31, 2019 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 129,873 $ 94 $ 1 $ 212 $ 130,180 CRE 26,817 5 — 10 26,832 Commercial construction 6,204 1 — — 6,205 Lease financing 6,112 2 — 8 6,122 Consumer: Residential mortgage 50,975 498 543 55 52,071 Residential home equity and direct 26,846 122 9 67 27,044 Indirect auto 23,771 560 11 100 24,442 Indirect other 11,011 85 2 2 11,100 Student 5,905 650 188 — 6,743 Credit card 5,541 56 22 — 5,619 PCI 2,126 140 1,218 — 3,484 Total $ 295,181 $ 2,213 $ 1,994 $ 454 $ 299,842 The following table presents the amortized cost basis of loans by origination year and credit quality indicator: December 31, 2020 Amortized Cost Basis by Origination Year Revolving Credit Loans Converted to Term Other (1) 2020 2019 2018 2017 2016 Prior Total Commercial: Commercial and industrial: Pass $ 34,858 $ 18,881 $ 13,312 $ 7,713 $ 5,174 $ 8,888 $ 42,780 $ 231 $ (579) $ 131,258 Special mention 471 434 343 98 120 157 1,808 5 (1) 3,435 Substandard 461 445 339 121 144 256 1,353 12 (2) 3,129 Nonperforming 38 92 48 29 25 61 233 4 2 532 Total 35,828 19,852 14,042 7,961 5,463 9,362 46,174 252 (580) 138,354 CRE: Pass 4,563 6,600 4,427 2,752 1,473 2,096 617 — (69) 22,459 Special mention 171 599 585 116 77 141 — — — 1,689 Substandard 410 776 438 281 182 280 5 — — 2,372 Nonperforming 1 15 1 9 6 43 — — — 75 Total 5,145 7,990 5,451 3,158 1,738 2,560 622 — (69) 26,595 Commercial construction: Pass 1,052 2,141 1,889 232 27 110 534 — 2 5,987 Special mention — 108 64 1 — — 2 — — 175 Substandard 70 106 73 59 6 1 — — — 315 Nonperforming 1 3 — 7 — — — 3 — 14 Total 1,123 2,358 2,026 299 33 111 536 3 2 6,491 Lease financing: Pass 1,377 1,139 775 746 241 760 — — 27 5,065 Special mention 1 39 20 5 — 7 — — — 72 Substandard — 34 3 4 3 31 — — — 75 Nonperforming 2 5 3 9 4 5 — — — 28 Total 1,380 1,217 801 764 248 803 — — 27 5,240 Consumer: Residential mortgage: Performing 8,197 6,729 3,735 4,374 5,424 18,333 — — 164 46,956 Nonperforming 3 13 16 13 14 257 — — — 316 Total 8,200 6,742 3,751 4,387 5,438 18,590 — — 164 47,272 Residential home equity and direct: Performing 4,513 3,126 1,416 481 214 557 13,886 1,619 47 25,859 Nonperforming 1 4 2 1 1 7 87 101 1 205 Total 4,514 3,130 1,418 482 215 564 13,973 1,720 48 26,064 Indirect auto: Performing 10,270 7,436 4,015 2,401 1,220 506 — — 147 25,995 Nonperforming 13 50 44 27 15 12 — — (6) 155 Total 10,283 7,486 4,059 2,428 1,235 518 — — 141 26,150 Indirect other: Performing 4,433 3,019 1,706 826 431 718 — — 39 11,172 Nonperforming 1 1 1 — — 2 — — — 5 Total 4,434 3,020 1,707 826 431 720 — — 39 11,177 Student: Performing 22 110 95 81 64 7,185 — — (5) 7,552 Credit card — — — — — — 4,802 37 — 4,839 Total $ 70,929 $ 51,905 $ 33,350 $ 20,386 $ 14,865 $ 40,413 $ 66,107 $ 2,012 $ (233) $ 299,734 (1) Includes certain deferred fees and costs, unapplied payments and other adjustments. The following table presents the carrying amount of loans by risk rating and performing status. Student loans are excluded as there is nominal risk of credit loss due to government guarantees or other credit enhancements. PCI loans were excluded because their related ALLL is determined by loan pool performance, and credit card loans were excluded as these loans are charged-off rather than reclassified as nonperforming: 2019 December 31, Commercial & Industrial CRE Commercial Construction Lease Financing Commercial: Pass $ 127,229 $ 26,393 $ 6,037 $ 6,039 Special mention 1,264 145 37 19 Substandard 1,475 284 131 56 Nonperforming 212 10 — 8 Total $ 130,180 $ 26,832 $ 6,205 $ 6,122 2019 December 31, Residential Mortgage Residential home equity and direct Indirect auto Indirect Other Consumer: Performing $ 52,016 $ 26,977 $ 24,342 $ 11,098 Nonperforming 55 67 100 2 Total $ 52,071 $ 27,044 $ 24,442 $ 11,100 ACL The following tables present activity in the ACL: (Dollars in millions) Balance at Jan 1, 2018 Charge-Offs Recoveries Provision (Benefit) Other Balance at Dec 31, 2018 Commercial: Commercial and industrial $ 522 $ (92) $ 39 $ 77 $ — $ 546 CRE 118 (10) 3 31 — 142 Commercial construction 42 (3) 5 4 — 48 Lease financing 9 (4) 1 5 — 11 Consumer: Residential mortgage 209 (21) 2 42 — 232 Residential home equity and direct 113 (79) 25 45 — 104 Indirect auto 296 (342) 49 295 — 298 Indirect other 52 (49) 13 42 — 58 Credit card 101 (76) 17 68 — 110 PCI 28 (2) — (17) — 9 ALLL 1,490 (678) 154 592 — 1,558 RUFC 119 — — (26) — 93 ACL $ 1,609 $ (678) $ 154 $ 566 $ — $ 1,651 (Dollars in millions) Balance at Jan 1, 2019 Charge-Offs Recoveries Provision (Benefit) Other (1) Balance at Dec 31, 2019 Commercial: Commercial and industrial $ 546 $ (90) $ 25 $ 79 $ — $ 560 CRE 142 (33) 5 36 — 150 Commercial construction 48 — 3 1 — 52 Lease financing 11 (11) 1 9 — 10 Consumer: Residential mortgage 232 (21) 2 (37) — 176 Residential home equity and direct 104 (93) 30 66 — 107 Indirect auto 298 (370) 52 324 — 304 Indirect other 58 (62) 17 47 — 60 Credit card 110 (109) 20 101 — 122 PCI 9 — — (1) — 8 ALLL 1,558 (789) 155 625 — 1,549 RUFC 93 — — (10) 257 340 ACL $ 1,651 $ (789) $ 155 $ 615 $ 257 $ 1,889 (Dollars in millions) Balance at Jan 1, 2020 (2) Charge-Offs Recoveries Provision (Benefit) Other (3) Balance at Dec 31, 2020 Commercial: Commercial and industrial $ 560 $ (358) $ 92 $ 958 $ 904 $ 2,156 CRE 150 (78) 5 414 82 573 Commercial construction 52 (30) 11 32 16 81 Lease financing 10 (54) 4 (6) 94 48 Consumer: Residential mortgage 176 (56) 10 (27) 265 368 Residential home equity and direct 107 (231) 66 318 454 714 Indirect auto 304 (378) 87 367 818 1,198 Indirect other 60 (60) 23 35 150 208 Student — (23) 1 23 129 130 Credit card 122 (182) 32 212 175 359 PCI 8 — — — (8) — ALLL 1,549 (1,450) 331 2,326 3,079 5,835 RUFC 340 — — 9 15 364 ACL $ 1,889 $ (1,450) $ 331 $ 2,335 $ 3,094 $ 6,199 (1) Includes amounts assumed in the Merger. (2) Balance is prior to the adoption of CECL. (3) Includes the adoption of CECL, the ALLL for PCD acquisitions and other activity. The adoption of CECL increased the ALLL $3.1 billion. The following discussion summarizes the changes in the factors that influenced Truist’s ACL estimate. The commercial ALLL increased $2.1 billion for year ended December 31, 2020. The increase reflects the adoption of CECL and a more pessimistic outlook with respect to future economic conditions driven by the COVID-19 pandemic. The increase also reflects specific consideration of the risks associated with exposures to certain industries most impacted by COVID-19, including oil and gas, hospitality, and lending to small businesses. The consumer ALLL increased $2.0 billion for the year ended December 31, 2020. The increase reflects the impact of CECL and the more pessimistic outlook described above, with the largest increases seen in the unsecured portfolios and the non-prime auto lending portfolio. These increases are partially offset by a decrease in outstanding loans in the residential mortgage and residential home equity and direct portfolios. The ALLL for credit card increased $237 million for the year ended December 31, 2020. The increase reflects the adoption of CECL and the more pessimistic outlook described above, which was partially offset by a reduction due to lower loan balances. The RUFC increased $24 million for the year ended December 31, 2020. The increase reflects the adoption of CECL and the more pessimistic outlook described above. Truist’s ACL estimate represents management’s best estimate of expected credit losses related to the loan and lease portfolio, including unfunded commitments, at the balance sheet date. This estimate incorporates both quantitatively-derived output, as well as qualitative components that represent expected losses not otherwise captured by the models. The quantitative models have been designed to estimate losses using macroeconomic forecast data over a reasonable and supportable forecast period, which management has determined to be two years, followed by a reversion to long-term historical loss conditions over a one-year period. These macroeconomic forecasts data include a number of key economic variables utilized in loss forecasting that include, but are not limited to, unemployment trends, US real GDP, corporate credit spreads, rental rates, property values, the primary 30-year mortgage rate, home price indices and used car prices. The primary economic forecast incorporates a third-party baseline forecast that is adjusted to reflect Truist’s interest rate outlook. Management also considered multiple third party macroeconomic forecasts that reflected a range of possible outcomes in order to capture uncertainty in the economic environment. The economic forecast shaping the ACL estimate at December 31, 2020 included a GDP recovery to pre-pandemic levels by the end of 2021 with a stable unemployment rate through the middle of 2021 followed by continued improvement through the remainder of the reasonable and supportable period. Quantitative models have certain limitations with respect to estimating expected losses in times of rapidly changing macroeconomic forecasts. As a result, management believes that the qualitative component of the ACL, which incorporates management’s expert judgment related to expected future credit losses, will continue to be a prominent factor in establishing the ACL for the foreseeable future. The December 31, 2020 ACL estimate includes qualitative adjustments to address limitations in modeled results with respect to forecasted economic conditions that are well outside of historic economic ranges used to develop the models and to give consideration to other risks in the portfolio, including the impact of government relief programs, stimulus and client accommodations, that are not directly considered in the quantitative models. PCD Loan Activity For PCD loans, the initial estimate of expected credit losses is recognized in the ALLL on the date of acquisition using the same methodology as other loans held for investment. The following table provides a summary of purchased student loans with credit deterioration at acquisition: Year Ended December 31, 2020 Par value $ 745 ALLL at acquisition (10) Non-credit premium (discount) (1) Purchase price $ 734 Nonperforming and Impaired Loans The following table provides a summary of nonperforming loans, excluding LHFS. Interest income recognized on nonperforming loans HFI was $32 million for the year ended December 31, 2020. Recorded Investment December 31, 2020 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 82 $ 450 CRE 63 12 Commercial construction — 14 Lease financing — 28 Consumer: Residential mortgage 4 312 Residential home equity and direct 2 203 Indirect auto 1 154 Indirect other — 5 Total $ 152 $ 1,178 The following table includes certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for impairment. This table excludes guaranteed student loans and guaranteed residential mortgages for which there was nominal risk of principal loss due to the government guarantee or other credit enhancements. UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized As of / For The Year Ended December 31, 2019 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 339 $ 124 $ 167 $ 20 $ 298 $ 6 CRE 29 3 26 2 71 1 Commercial construction 39 — 38 7 5 — Lease financing 18 7 2 — 2 — Consumer: Residential mortgage 650 92 527 42 799 34 Residential home equity and direct 76 24 37 5 65 3 Indirect auto 367 9 349 64 334 53 Indirect other 5 — 5 1 4 — Credit card 31 — 31 12 28 1 Total $ 1,554 $ 259 $ 1,182 $ 153 $ 1,606 $ 98 TDRs The following table presents a summary of TDRs: December 31, 2020 2019 Performing TDRs: Commercial: Commercial and industrial $ 78 $ 47 CRE 47 6 Commercial construction — 37 Lease financing 60 — Consumer: Residential mortgage 648 470 Residential home equity and direct 88 51 Indirect auto 392 333 Indirect other 6 5 Student 5 — Credit card 37 31 Total performing TDRs 1,361 980 Nonperforming TDRs 164 82 Total TDRs $ 1,525 $ 1,062 ALLL attributable to TDRs $ 260 $ 132 The primary reason loan modifications were classified as TDRs is summarized in the tables below. New TDR balances represent the recorded investment at the end of the quarter in which the modification was made. The prior quarter balance represents recorded investment at the beginning 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. December 31, 2020 Type of Modification Prior Quarter Loan Balance ALLL at Period End Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 49 $ 93 $ 173 $ 14 CRE 39 13 45 6 Commercial construction — — 1 — Lease financing 1 70 71 4 Consumer: Residential mortgage 374 112 493 21 Residential home equity and direct 37 34 70 2 Indirect auto 129 85 223 26 Indirect other 3 3 5 — Student — 6 6 — Credit card 29 — 28 10 Re-modification of previously designated TDRs 41 22 December 31, 2019 Type of Modification Prior Quarter Loan Balance ALLL at Period End Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 56 $ 11 $ 61 $ 8 CRE 1 1 4 — Commercial construction 36 — 36 7 Lease financing — — — — Consumer: Residential mortgage 224 27 254 19 Residential home equity and direct 8 3 9 1 Indirect auto 209 8 226 44 Indirect other 4 — 4 — Student — — — — Credit card 24 — 18 9 Re-modification of previously designated TDRs 53 23 December 31, 2018 Type of Modification Prior Quarter Loan Balance ALLL at Period End Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 74 $ 62 $ 126 $ 8 CRE 31 2 26 1 Commercial construction 1 1 2 — Lease financing — — — — Consumer: Residential mortgage 250 30 280 22 Residential home equity and direct 8 2 6 1 Indirect auto 191 4 183 39 Indirect other 4 — 3 1 Student — — — — Credit card 18 — 18 8 Re-modification of previously designated TDRs 120 15 Charge-offs and forgiveness of principal and interest for TDRs were immaterial for all periods presented. The re-default balance for modifications that had been classified as TDRs during the previous 12 months that experienced a payment default was $93 million, $78 million and $76 million for the years ended December 31, 2020, 2019 and 2018, respectively. Payment default is defined as movement of the TDR to nonperforming status, foreclosure or charge-off, whichever occurs first. NPAs The following table presents a summary of nonperforming assets and residential mortgage loans in the process of foreclosure. December 31, 2020 2019 Nonperforming loans and leases HFI (1) $ 1,330 $ 454 Nonperforming LHFS 5 107 Foreclosed real estate 20 82 Other foreclosed property 32 41 Total nonperforming assets $ 1,387 $ 684 Residential mortgage loans in the process of foreclosure $ 140 $ 409 (1) Beginning January 1, 2020, nonperforming loans and leases include certain assets previously classified as PCI. Unearned Income, Discounts and Net Deferred Loan Fees and Costs The following table presents additional information about loans and leases: December 31, 2020 2019 Unearned income, discounts and net deferred loan fees and costs, excluding PCI $ 2,219 $ 4,069 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment A summary of premises and equipment is presented in the accompanying table: December 31, Estimated Useful Life 2020 2019 Land and land improvements Indefinite $ 968 $ 1,005 Buildings and building improvements 40 years 2,724 2,253 Furniture and equipment 3 - 15 1,509 1,396 Leasehold improvements 978 995 Construction in progress 179 196 Finance leases 72 152 Total 6,430 5,997 Less: Accumulated depreciation (2,560) (2,285) Net premises and equipment $ 3,870 $ 3,712 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets Truist performed a quantitative goodwill impairment test for its CB&W, C&CB and IH reporting units as of October 1, 2020. Based on the results of the impairment analyses, the Company concluded that the fair values of the reporting units exceed their respective carrying values; therefore, there was no goodwill impairment. However, for the C&CB reporting unit the fair value of the reporting unit exceeded its carrying value by less than 10%, indicating that the goodwill of this reporting unit may be at risk of impairment. The Company monitored events and circumstances during the fourth quarter of 2020, including the continuing effects of the COVID-19 pandemic, concluding that it was not more-likely-than-not that the fair value of one or more of its reporting units is below its respective carrying amount as of December 31, 2020. See "Note 1. Basis of Presentation," for additional information regarding Truist’s goodwill accounting policy. The changes in the carrying amount of goodwill attributable to operating segments are reflected in the table below. The adjustments for 2020 include measurement period adjustments to the fair value of acquired assets and liabilities and the reallocation of net assets to the underlying reporting units. The adjustments to CDI and other intangibles did not have a material impact to estimated amortization expense for the next five years. Adjustments to the reallocation of net assets to Truist's reporting units include updates to the estimated operating results and the finalization of corporate expense allocations. Refer to "Note 2. Business Combinations" for additional information on the Merger and IH acquisitions, and "Note 21. Operating Segments" for additional information on segments. (Dollars in millions) CB&W C&CB IH Total Goodwill, January 1, 2018 $ 3,907 $ 3,938 $ 1,773 $ 9,618 Mergers and acquisitions — — 201 201 Adjustments and other (1) — — (1) Goodwill, December 31, 2018 3,906 3,938 1,974 9,818 Mergers and acquisitions 10,134 4,187 21 14,342 Adjustments and other — — (6) (6) Goodwill, December 31, 2019 14,040 8,125 1,989 24,154 Mergers and acquisitions — — 450 450 Adjustments and other 1,801 (1,958) — (157) Goodwill, December 31, 2020 $ 15,841 $ 6,167 $ 2,439 $ 24,447 The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets: Weighted Average Remaining Amortization Period 2020 2019 December 31, Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount CDI 8.8 years $ 2,600 $ (852) $ 1,748 $ 2,474 $ (365) $ 2,109 Other, primarily client relationship intangibles 12.3 years 2,217 (981) 1,236 1,808 (775) 1,033 Total $ 4,817 $ (1,833) $ 2,984 $ 4,282 $ (1,140) $ 3,142 The estimated amortization expense of identifiable intangibles for the next five years and thereafter is presented as follows: Year Ended December 31, 2021 2022 2023 2024 2025 Thereafter Estimated amortization expense $ 584 $ 471 $ 392 $ 330 $ 273 $ 934 |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Loan Servicing | Loan Servicing The Company acquires servicing rights and retains servicing rights for certain of its sales or securitizations of residential mortgages and commercial loans. Servicing rights on residential and commercial mortgages are capitalized by the Company as MSRs on the Consolidated Balance Sheets. Income earned by the Company on its residential MSRs is derived primarily from contractually specified mortgage servicing fees and late fees, net of curtailment costs. Income earned by the Company on its commercial mortgage servicing rights is derived primarily from contractually specified servicing fees and other ancillary fees. Residential Mortgage Activities The following tables summarize residential mortgage servicing activities: December 31, 2020 2019 2018 UPB of residential mortgage loan servicing portfolio $ 239,034 $ 279,558 $ 118,605 UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate 188,341 219,347 87,270 Mortgage loans sold with recourse 328 371 419 Maximum recourse exposure from mortgage loans sold with recourse liability 201 212 223 Indemnification, recourse and repurchase reserves 93 44 24 As of / For the Year Ended December 31, 2020 2019 2018 UPB of residential mortgage loans sold from LHFS $ 48,366 $ 16,646 $ 10,094 Pre-tax gains recognized on mortgage loans sold and held for sale 1,034 122 116 Servicing fees recognized from mortgage loans serviced for others 630 265 256 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others 0.32 % 0.31 % 0.28 % Weighted average interest rate on mortgage loans serviced for others 3.84 4.04 4.04 The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value: Year Ended December 31, 2020 2019 2018 Residential MSRs, carrying value, January 1 $ 2,371 $ 957 914 Merger — 1,506 — Additions 653 171 116 Change in fair value due to changes in valuation inputs or assumptions: Prepayment speeds (572) (131) (12) OAS 75 32 57 Servicing costs — — 22 Realization of expected net servicing cash flows, passage of time and other (749) (164) (140) Residential MSRs, carrying value, December 31 $ 1,778 $ 2,371 $ 957 The sensitivity of the fair value of the Company's residential MSRs to changes in key assumptions is presented in the following table: 2020 2019 December 31, Range Weighted Average Range Weighted Average Min Max Min Max Prepayment speed 12.8 % 30.8 % 15.4 % 8.4 % 18.6 % 9.6 % Effect on fair value of a 10% increase $ (89) $ (102) Effect on fair value of a 20% increase (171) (195) OAS 3.5 % 13.7 % 7.3 % 4.0 % 13.5 % 6.7 % Effect on fair value of a 10% increase $ (45) $ (54) Effect on fair value of a 20% increase (88) (106) Composition of loans serviced for others: Fixed-rate residential mortgage loans 98.8 % 98.5 % Adjustable-rate residential mortgage loans 1.2 1.5 Total 100.0 % 100.0 % Weighted average life 4.8 years 5.4 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. See "Note 18. Fair Value Disclosures" for additional information on the valuation techniques used. Commercial Mortgage Activities The following table summarizes commercial mortgage servicing activities for the periods presented: December 31, 2020 2019 UPB of CRE mortgages serviced for others $ 36,670 $ 70,404 CRE mortgages serviced for others covered by recourse provisions 9,019 8,676 Maximum recourse exposure from CRE mortgages sold with recourse liability 2,624 2,479 Recorded reserves related to recourse exposure 18 13 CRE mortgages originated during the year-to-date period 6,739 8,062 Commercial MSRs at fair value 245 247 In the third quarter of 2020, the Company transferred certain servicing activities involving cancellable servicing rights to third parties, resulting in a decrease in the UPB of CRE mortgages serviced for others. This transfer did not materially impact commercial MSRs. |
Other Assets and Liabilites
Other Assets and Liabilites | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Other Assets and Liabilities Disclosure | Other Assets and Liabilities Lessee Operating and Finance Leases The Company leases certain assets, consisting primarily of real estate, and assesses at contract inception whether a contract is, or contains, a lease. At December 31, 2020, the Company had $32 million of operating leases that had not yet commenced. The following tables present additional information on leases, and excludes assets related to the lease financing businesses: December 31, 2020 Operating Leases Finance Leases ROU assets $ 1,333 $ 36 Maturities of lease liabilities: 2021 $ 361 $ 10 2022 366 11 2023 311 7 2024 258 5 2025 210 4 Thereafter 573 10 Total lease payments 2,079 47 Less: imputed interest 183 5 Total lease liabilities $ 1,896 $ 42 Weighted average remaining term 6.9 years 6.3 years Weighted average discount rate 2.4 % 4.8 % Year Ended December 31, 2020 2019 Operating lease costs $ 360 $ 209 Lessor Operating Leases The Company’s two primary lessor businesses are equipment financing and structured real estate with income recorded in Operating lease income on the Consolidated Statements of Income. The following table presents a summary of assets under operating leases and activity related to assets under operating leases. This table excludes subleases on assets included in premises and equipment. December 31, 2020 2019 Assets held under operating leases (1) $ 2,144 $ 2,236 Accumulated depreciation (517) (391) Net $ 1,627 $ 1,845 (1) Includes certain land parcels subject to operating leases that have indefinite lives. The residual value of assets no longer under operating leases was immaterial. Bank-Owned Life Insurance Bank-owned life insurance consists of life insurance policies held on certain teammates for which the Company is the beneficiary. These policies provide the Company an efficient form of funding for retirement and other employee benefits costs. The carrying value of bank-owned life insurance was $6.5 billion at December 31, 2020 and $6.4 billion December 31, 2019. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposits | Deposits The composition of deposits is presented in the following table: December 31, 2020 2019 Noninterest-bearing deposits $ 127,629 $ 92,405 Interest-bearing deposits: Interest checking 105,269 85,492 Money market and savings 126,238 120,934 Time deposits 21,941 35,896 Total deposits $ 381,077 $ 334,727 Time deposits greater than $250,000 $ 3,296 $ 9,362 The following table presents time deposits maturities: Year Ended December 31, 2021 2022 2023 2024 2025 Thereafter Future time deposit maturities $ 17,438 $ 2,987 $ 873 $ 310 $ 283 $ 50 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | Borrowings The following table presents a summary of short-term borrowings: December 31, 2020 2019 Federal funds purchased $ 79 $ 259 Securities sold under agreements to repurchase 1,221 1,969 FHLB advances 2,649 13,480 Collateral in excess of derivative exposures 385 682 Master notes 621 493 Other short-term borrowings 1,137 1,335 Total short-term borrowings $ 6,092 $ 18,218 The following table presents a summary of long-term debt: 2020 2019 December 31, Stated Rate Effective Rate (1) Carrying Amount Carrying Amount Maturity Min Max Truist Financial Corporation: Fixed rate senior notes 2021 to 2030 1.13 % 6.00 % 2.52 % $ 15,984 $ 14,431 Floating rate senior notes 2021 2022 0.43 0.88 0.64 900 1,749 Fixed rate subordinated notes (2) 2022 2029 3.88 6.00 3.78 1,283 1,227 Capital notes 2027 2028 0.87 1.21 1.69 615 611 Structured notes (3) 2021 2026 108 112 Truist Bank: Fixed rate senior notes 2021 2025 1.25 4.05 2.10 11,907 11,560 Floating rate senior notes 2022 2037 0.80 0.83 0.70 1,567 1,554 Fixed rate subordinated notes (2) 2025 2030 2.25 3.80 3.03 5,142 3,872 FHLB advances 2021 2034 — 5.36 5.32 878 4,141 Other long-term debt (4) 1,014 1,133 Nonbank subsidiaries: Other long-term debt (5) 199 949 Total long-term debt $ 39,597 $ 41,339 (1) Includes the impact of debt issuance costs and purchase accounting, and excludes hedge accounting impacts. (2) 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. (3) Consist of notes with various terms that include fixed or floating rate interest, or returns that are linked to an equity index. (4) Includes finance leases, tax credit investments, and other. (5) Includes debt associated with structured real estate leases. The Company does not consolidate certain wholly-owned trusts which were formed for the sole purpose of issuing trust preferred securities. The proceeds from the trust preferred securities issuances were invested in capital notes of the Parent Company. The Parent Company’s obligations constitute a full and unconditional guarantee of the trust preferred securities. During 2020, the Company issued and redeemed certain FHLB advances, which resulted in a loss on early extinguishment of long-term debt of $235 million. The following table presents future debt maturities: Year Ended December 31, 2021 2022 2023 2024 2025 Thereafter Future debt maturities (1) $ 5,373 $ 9,236 $ 5,139 $ 5,309 $ 5,797 $ 8,748 (1) Amounts include imputed interest of $5 million related to finance leases. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Stock The following table presents the dividends declared per share of common stock: Year Ended December 31, 2020 2019 2018 Cash dividends declared per share $ 1.80 $ 1.71 $ 1.56 Share Repurchase Activity In December 2020, Truist announced the Board of Directors had authorized the repurchase of up to $2.0 billion of common stock beginning in the first quarter of 2021 to optimize Truist's capital position. During 2018, the Company repurchased $1.2 billion of common stock, which represented 23.2 million shares, through a combination of open market and accelerated share repurchases. Repurchased shares revert to the status of authorized and unissued shares upon repurchase. Preferred Stock Dividends on the preferred stock are non-cumulative and payable when declared by the Company's Board or a duly authorized committee of the Board. The Company issued depositary shares, each of which represents a fractional ownership interest in a share of the Company's preferred stock. The preferred stock has no stated maturity and redemption is solely at the option of the Company in whole or in part after the earliest redemption date at the liquidation preference plus declared and unpaid dividends. Prior to the redemption date, the Company has the option to redeem in whole, but not in part, upon the occurrence of a regulatory capital treatment event. The following table presents a summary of the non-cumulative perpetual preferred stock as of December 31, 2020: Preferred Stock Issue Issuance Date Earliest Redemption Date Liquidation Amount Carrying Amount Dividend Rate Dividend Payments Series F 10/31/2012 11/1/2017 $ 450 $ 437 5.200 % Quarterly Series G 5/1/2013 6/1/2018 500 486 5.200 Quarterly Series H 3/9/2016 6/1/2021 465 451 5.625 Quarterly Series I 12/6/2019 (1) 12/15/2024 173 168 4.000 (2) Quarterly Series J 12/6/2019 (1) 12/15/2024 103 92 4.000 (3) Quarterly Series L 12/6/2019 (1) 12/15/2024 750 766 5.050 (4) Semi-annually (9) Series M 12/6/2019 (1) 12/15/2027 500 516 5.125 (5) Semi-annually (10) Series N 7/29/2019 9/1/2024 1,700 1,683 4.800 (6) Semi-annually Series O 5/27/2020 6/1/2025 575 559 5.250 Quarterly Series P 6/1/2020 12/1/2025 1,000 992 4.950 (7) Semi-annually Series Q 6/19/2020 9/1/2030 1,000 992 5.100 (8) Semi-annually Series R 8/3/2020 9/1/2025 925 906 4.750 Quarterly Total $ 8,141 $ 8,048 (1) Converted security from previously issued SunTrust preferred stock. (2) Dividend rate is the greater of 4.00% or 3-month LIBOR plus 0.530%. (3) Dividend rate is the greater of 4.00% or 3-month LIBOR plus 0.645%. (4) Fixed dividend rate will reset on June 15, 2022, then dividend rate will be 3-month LIBOR plus 3.102%. (5) Fixed dividend rate will reset on December 15, 2027, then dividend rate will be 3-month LIBOR plus 2.786%. (6) Fixed 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%. (7) Fixed dividend rate will reset on December 1, 2025, and on each following fifth anniversary of the reset date to the five-year U.S. Treasury rate plus 4.605%. (8) Fixed dividend rate will reset on September 1, 2030, and on each following tenth anniversary of the reset date to the ten-year U.S. Treasury rate plus 4.349%. (9) Dividend payments become quarterly beginning on September 15, 2022. (10) Dividend payments become quarterly after dividend rate reset. Issuances During 2020, Truist issued a total of $3.5 billion in series O, series P, series Q and series R preferred stock to further strengthen its capital position. During 2019, the Company issued $1.7 billion of series N non-cumulative perpetual preferred stock. Upon closing of the Merger, each outstanding share of SunTrust perpetual preferred stock was converted into the right to receive one share of an applicable newly issued series of Truist preferred stock having substantially the same terms as such share of SunTrust preferred stock. The Company issued series I, J, K, L and M non-cumulative perpetual preferred stock with a total par and fair value of $2.0 billion on the Merger closing date. Refer to the table below for additional details regarding the preferred shares and dividends and "Note 2. Business Combinations" for additional information related to the Merger. Redemptions During 2020, the Company redeemed all 5,000 outstanding shares of its perpetual preferred stock series K and the corresponding depositary shares representing fractional interests in such series for $500 million plus any unpaid dividends. The preferred stock redemption was in accordance with the terms of the Company’s Articles of Amendment to its Articles of Incorporation, effective as of December 6, 2019. During 2019, the Company redeemed all 23,000 outstanding shares of series D and 46,000 outstanding shares of series E non-cumulative perpetual preferred stock and the corresponding depositary shares representing fractional interests in each such series for $1.7 billion. Regular dividends on the redeemed shares were paid during the third quarter of 2019. In connection with the redemptions, net income available to common shareholders was reduced by $46 million to recognize the difference in the redemption price and the carrying value. Subsequent Event Early in 2021, the Company announced the forthcoming redemption of all 18,000 outstanding shares of its perpetual preferred stock series F and the corresponding depositary shares representing fractional interests in such series for $450 million and all 20,000 outstanding shares of its perpetual preferred stock series G and the corresponding depositary shares representing fractional interests in such series for $500 million. |
AOCI
AOCI | 12 Months Ended |
Dec. 31, 2020 | |
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 as well as unrealized gains and losses on cash flow hedges and AFS securities. 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 (217) 52 (159) (6) (330) Amounts reclassified from AOCI: Before tax 75 12 20 1 108 Tax effect 18 3 5 — 26 Amounts reclassified, net of tax 57 9 15 1 82 Total OCI, net of tax (160) 61 (144) (5) (248) AOCI balance, December 31, 2018 (1,164) (31) (500) (20) (1,715) OCI before reclassifications, net of tax (42) (89) 790 18 677 Amounts reclassified from AOCI: Before tax 111 25 119 1 256 Tax effect 27 6 29 — 62 Amounts reclassified, net of tax 84 19 90 1 194 Total OCI, net of tax 42 (70) 880 19 871 AOCI balance, December 31, 2019 (1,122) (101) 380 (1) (844) OCI before reclassifications, net of tax 190 1 1,298 2 1,491 Amounts reclassified from AOCI: Before tax 75 48 (32) — 91 Tax effect 18 12 (8) — 22 Amounts reclassified, net of tax 57 36 (24) — 69 Total OCI, net of tax 247 37 1,274 2 1,560 AOCI balance, December 31, 2020 $ (875) $ (64) $ 1,654 $ 1 $ 716 Primary income statement location of amounts reclassified from AOCI Other expense Net interest income Securities gains (losses) and Net interest income Net interest income |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the income tax provision are as follows: Year Ended December 31, (Dollars in millions) 2020 2019 2018 Current expense: Federal $ 979 $ 357 $ 629 State 155 97 151 Total current expense 1,134 454 780 Deferred expense: Federal (131) 290 26 State (22) 38 (3) Total deferred expense (153) 328 23 Provision for income taxes $ 981 $ 782 $ 803 A reconciliation of the provision for income taxes at the statutory federal income tax rate to the Company’s actual provision for income taxes and actual effective tax rate is presented in the following table: 2020 2019 2018 Year Ended December 31, Amount % of Income Before Taxes Amount % of Income Before Taxes Amount % of Income Before Taxes Federal income taxes at statutory rate $ 1,149 21.0 % $ 844 21.0 % $ 853 21.0 % Increase (decrease) in provision for income taxes as a result of: State income taxes, net of federal tax benefit 105 1.9 107 2.7 117 2.9 Income tax credits, net of amortization (178) (3.3) (86) (2.1) (57) (1.4) Tax-exempt interest (99) (1.8) (69) (1.8) (90) (2.2) Federal tax reform impact — — — — (27) (0.7) Other, net 4 0.1 (14) (0.3) 7 0.2 Provision for income taxes $ 981 17.9 $ 782 19.5 $ 803 19.8 Deferred income tax assets and liabilities result from differences between the timing of the recognition of assets and liabilities for financial reporting purposes and for income tax purposes. DTAs and DTLs are measured using the enacted federal and state tax rates in the periods in which the DTAs or DTLs are expected to be realized. The net deferred income tax liability is recorded in Other liabilities in the Consolidated Balance Sheets. Significant DTAs and DTLs, net of the federal impact for state taxes, are presented in the following table. December 31, (Dollars in millions) 2020 2019 DTAs: ALLL $ 1,376 $ 366 Employee compensation and benefits 698 721 Loans 369 753 Operating lease liability 469 225 Accruals and reserves 305 322 Federal and state NOLs and other carryforwards 149 156 Net unrealized losses in AOCI — 257 Other 57 77 Total gross DTAs 3,423 2,877 Valuation allowance (123) (130) Total DTAs net of valuation allowance 3,300 2,747 DTLs: Pension 1,299 1,167 Goodwill and other intangible assets 688 694 Equipment and auto leasing 599 932 MSRs 459 491 ROU assets 327 146 Net unrealized gains in AOCI 222 — Premises and equipment 147 162 Partnerships 84 23 Other 48 144 Total DTLs 3,873 3,759 Net DTL $ (573) $ (1,012) The DTAs include Federal and state NOLs and other state carryforwards that will expire, if not utilized, in varying amounts from 2021 to 2040. The Company had a valuation allowance recorded against its state carryforwards and certain state DTAs of $123 million and $130 million at December 31, 2020 and 2019, respectively. The following table provides a rollforward of the Company's gross federal and state UTBs, excluding interest and penalties: December 31, 2020 2019 Balance, January 1 $ 127 $ 2 Increases in UTBs related to prior years 4 120 Decreases in UTBs related to prior years (1) — Increases in UTBs related to the current year 18 6 Decreases in UTBs related to settlements (13) (1) Decreases in UTBs related to lapse of the applicable statues of limitations (2) — Balance, December 31 $ 133 $ 127 The amount of UTBs that would favorably affect the Company's effective tax rate, if recognized, was $100 million and $99 million at December 31, 2020 and 2019, respectively. Interest and penalties related to UTBs are recorded in the Provision for income taxes in the Consolidated Statement of Income. The Company had a gross liability of $12 million and $11 million for interest and penalties related to its UTBs at December 31, 2020 and 2019, respectively. The amount of gross expense related interest and penalties on UTBs was immaterial. The Company files U.S. federal, state and local income tax returns. The Company's federal income tax returns are no longer subject to examination by the IRS for taxable years prior to 2017. With limited exceptions, the Company is no longer subject to examination by state and local taxing authorities for taxable years prior to 2013. It is reasonably possible that the liability for unrecognized tax benefits could decrease by as much as $15 million during the next 12 months due to completion of tax authority examinations and the expiration of statutes of limitations. It is uncertain how much, if any, of this potential decrease will impact the Company’s effective tax rate. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Defined Benefit Retirement Plans Truist provides defined benefit retirement plans qualified under the IRC that cover most teammates. Benefits are based on years of service, age at retirement and the employee's compensation during the five In addition, supplemental retirement benefits are provided to certain key officers under supplemental defined benefit executive retirement plans, which are not qualified under the IRC. Although technically unfunded plans, Rabbi Trusts and insurance policies on the lives of certain of the covered employees are available to finance future benefits. The Company's defined benefit plans obtained through the Merger were combined during 2020. The following tables present a summary of the qualified and nonqualified defined benefit pension plans. On the Consolidated Balance Sheets, the qualified pension plan net asset is recorded as a component of Other assets and the nonqualified pension plans net liability is recorded as a component of Other liabilities. The data is calculated using an actuarial measurement date of December 31. Year Ended December 31, (Dollars in millions) Location 2020 2019 2018 Net periodic pension cost: Service cost Personnel expense $ 518 $ 214 $ 238 Interest cost Other expense 313 233 201 Estimated return on plan assets Other expense (866) (480) (448) Net amortization and other Other expense 76 111 81 Net periodic benefit cost 41 78 72 Pre-tax amounts recognized in OCI: Net actuarial loss (gain) (244) 34 289 Net amortization (77) (110) (81) Net amount recognized in OCI (321) (76) 208 Total net periodic pension costs (income) recognized in total comprehensive income, pre-tax $ (280) $ 2 $ 280 Weighted average assumptions used to determine net periodic pension cost: Discount rate 3.45 % 4.43 % 3.79 % Expected long-term rate of return on plan assets 6.90 7.00 7.00 Assumed long-term rate of annual compensation increases 4.50 4.50 4.50 Weighted average assumptions used to determine net periodic pension cost for SunTrust plans prior to being combined: Discount rate NA 3.22 % NA Expected long-term rate of return on plan assets NA 6.90 NA The weighted average expected long-term rate of return on plan assets represents the average rate of return expected to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. In developing the expected rate of return, Truist considers long-term compound annualized returns of historical market data for each asset category, as well as historical actual returns on the plan assets. Using this reference information, the Company develops forward-looking return expectations for each asset category and a weighted average expected long-term rate of return for the plan based on target asset allocations contained in the Company's Investment Policy Statement. For 2021, the expected rate of return on plan assets is 6.7%. Activity in the projected benefit obligation is presented in the following table: Year Ended December 31, (Dollars in millions) Qualified Plan Nonqualified Plans 2020 2019 2020 2019 Projected benefit obligation, January 1 $ 8,819 $ 4,697 $ 557 $ 386 Service cost 479 199 39 15 Interest cost 294 216 19 17 Actuarial loss 985 1,042 68 79 Benefits paid (300) (135) (22) (13) Projected benefit obligation from Merger — 2,800 — 72 Special termination benefits — — — 1 Projected benefit obligation, December 31 $ 10,277 $ 8,819 $ 661 $ 557 Accumulated benefit obligation, December 31 $ 9,044 $ 7,859 $ 503 $ 432 Weighted average assumptions used to determine projected benefit obligations: Weighted average assumed discount rate 2.94 % 3.45 % 2.94 % 3.45 % Assumed rate of annual compensation increases (1) 3.50 4.50 3.50 4.50 Weighted average assumptions used to determine projected benefit obligations for SunTrust plans prior to being combined: Weighted average assumed discount rate NA 3.22 % NA 3.22 % (1) The assumed rate for qualified and nonqualified plans is 3.50% in 2021 and increases to 4.50% thereafter. Activity in plan assets is presented in the following table: Year Ended December 31, (Dollars in millions) Qualified Plan Nonqualified Plans 2020 2019 2020 2019 Fair value of plan assets, January 1 $ 12,398 $ 5,968 $ — $ — Actual return on plan assets 2,164 1,566 — — Employer contributions 373 1,696 22 13 Benefits paid (300) (135) (22) (13) Fair value of plan assets from Merger — 3,303 — — Fair value of plan assets, December 31 $ 14,635 $ 12,398 $ — $ — Funded status, December 31 $ 4,358 $ 3,579 $ (661) $ (557) The following are the pre-tax amounts recognized in AOCI: Year Ended December 31, (Dollars in millions) Qualified Plan Nonqualified Plans 2020 2019 2020 2019 Prior service credit (cost) $ (90) $ (114) $ 77 $ 96 Net actuarial loss (858) (1,218) (263) (217) Net amount recognized $ (948) $ (1,332) $ (186) $ (121) The following table presents the amount expected to be amortized from AOCI into net periodic pension cost during 2021: (Dollars in millions) Qualified Plan Nonqualified Plans Net actuarial loss $ — $ (28) Prior service credit (cost) (25) 19 Net amount expected to be amortized $ (25) $ (9) Truist makes contributions to the qualified pension plan in amounts between the minimum required for funding and the maximum amount deductible for federal income tax purposes. Truist made discretionary contributions of $387 million during the first quarter of 2021. Management may make additional contributions in 2021. For the nonqualified plans, the employer contributions are based on benefit payments. The following table reflects the estimated benefit payments for the periods presented: (Dollars in millions) Qualified Plan Nonqualified Plans 2021 $ 305 $ 22 2022 324 23 2023 342 31 2024 360 26 2025 381 27 2026-2030 2,205 160 The Company's primary total return objective is to achieve returns that, over the long term, will fund retirement liabilities and provide for the desired plan benefits in a manner that satisfies the fiduciary requirements of the ERISA. The plan assets have a long-term time horizon that runs concurrent with the average life expectancy of the participants. As such, the Plan can assume a time horizon that extends well beyond a full market cycle, and can assume an above-average level of risk, as measured by the standard deviation of annual return. The investments are broadly diversified among economic sector, industry, quality and size in order to reduce risk and to produce incremental return. Within approved guidelines and restrictions, investment managers have wide discretion over the timing and selection of individual investments. Truist periodically reviews its asset allocation and investment policy and makes changes to its target asset allocation. Truist has established guidelines within each asset category to ensure the appropriate balance of risk and reward. The following table presents the fair values of the qualified pension plan assets by asset category: December 31, (Dollars in millions) Target Allocation 2020 2019 Min Max Total Level 1 Level 2 Total Level 1 Level 2 Cash and cash-equivalents $ 290 $ 290 $ — $ 295 $ 295 $ — U.S. equity securities (1) 30 % 50 % 6,587 3,531 3,056 5,336 3,629 1,707 International equity securities 11 18 1,614 360 1,254 1,752 328 1,424 Fixed income securities 35 53 5,368 11 5,357 4,629 11 4,618 Total $ 13,859 $ 4,192 $ 9,667 $ 12,012 $ 4,263 $ 7,749 (1) The plan may hold up to 10% of its assets in Truist common stock. International equity securities include a common/commingled fund that consists of assets from several accounts, pooled together, to reduce management and administration costs. At December 31, 2020 and 2019, investments totaling $773 million and $341 million, respectively, have been excluded from the table above as valued based on net asset value as a practical expedient. Defined Contribution Plans Truist offers a 401(k) Savings Plan and other defined contribution plans that permit teammates to contribute up to 50% of cash compensation. For full-time teammates who are 21 years of age or older with one year or more of service, Truist makes matching contributions of up to 6% of the employee's compensation. The Company's contribution expense for the 401(k) Savings Plan and nonqualified defined contribution plans totaled $272 million, $152 million and $141 million for the years ended December 31, 2020, 2019 and 2018, respectively. Certain teammates of subsidiaries participate in the 401(k) Savings Plan with different matching formulas. The Company's defined contribution plan obtained through the Merger was combined during 2020. Equity-Based Compensation Plans At December 31, 2020, RSAs, RSUs and PSUs were outstanding from equity-based compensation plans that have been approved by shareholders and plans assumed from acquired entities. Those plans are intended to assist the Company in recruiting and retaining teammates, directors and independent contractors and to align the interests of eligible participants with those of Truist and its shareholders. The majority of outstanding awards and awards available to be issued relate to plans that allow for accelerated vesting of awards for holders who retire and have met all retirement eligibility requirements or in connection with certain other events. Until vested, certain of these awards are subject to forfeiture under specified circumstances. The fair value of RSUs and PSUs is based on the common stock price on the grant date less the present value of expected dividends that will be foregone during the vesting period. Substantially all awards are granted in February of each year. Grants to non-executive teammates primarily consist of RSUs. The following table provides a summary of the equity-based compensation plans: December 31, 2020 Shares available for future grants (in thousands) 19,815 Vesting period, minimum 1.0 year Vesting period, maximum 5.0 years The following table presents a summary of selected data related to equity-based compensation costs: As of / For the Year Ended December 31, (Dollars in millions) 2020 2019 2018 Equity-based compensation expense $ 353 $ 165 $ 141 Income tax benefit from equity-based compensation expense 84 38 34 Intrinsic value of options exercised, and RSUs and PSUs that vested during the year 412 216 260 Grant date fair value of equity-based awards that vested during the year 420 134 139 Unrecognized compensation cost related to equity-based awards 234 274 135 Weighted-average life over which compensation cost is expected to be recognized 2.3 years 2.3 years 2.4 years 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, 2020 20,061 $ 46.25 Granted 7,692 47.33 Vested (8,883) 47.24 Forfeited (782) 51.22 Nonvested at December 31, 2020 18,088 47.93 Other Benefits There are various other employment contracts, deferred compensation arrangements and non-compete covenants with selected members of management and certain retirees. These plans and their obligations are not material to the financial statements. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies Truist utilizes a variety of financial instruments to meet the financing needs of clients and to mitigate exposure to risks. These financial instruments include commitments to extend credit, letters of credit and financial guarantees and derivatives. Truist also has commitments to fund certain affordable housing investments and contingent liabilities related to certain sold loans. Tax Credit and Certain Equity Investments The Company invests in certain affordable housing projects throughout its market area as a means of supporting local communities. Truist receives tax credits related to these investments, for which the Company typically acts as a limited partner and therefore does not exert control over the operating or financial policies of the partnerships. Truist typically provides financing during the construction and development of the properties; however, permanent financing is generally obtained from independent third parties upon completion of a project. Tax credits are subject to recapture by taxing authorities based on compliance features required to be met at the project level. Truist's maximum potential exposure to losses relative to investments in VIEs is generally limited to the sum of the outstanding balance, future funding commitments and any related loans to the entity, exclusive of any potential tax recapture associated with the investments. Loans to these entities are underwritten in substantially the same manner as the Company's other loans and are generally secured. Additionally, the Company invests in other community development entities as a limited partner and/or a lender. The Company receives tax credits for its limited partner investments. The Company has determined that the majority of the related partnerships are VIEs. The Company has concluded that it is not the primary beneficiary of these investments. Truist uses the equity method of accounting for these investments. The Company also invests in entities that promote renewable energy sources as a limited partner. Tax credits received for these investments are recorded as a reduction to the carrying value of these investments. The Company has determined that these renewable energy tax credit partnerships are VIEs. The Company has concluded that it is not the primary beneficiary of these VIEs because it does not have the power to direct the activities that most significantly impact the VIEs' financial performance and therefore, it is not required to consolidate these VIEs. The Company’s maximum exposure to loss related to these investments is limited to its equity investments in these partnerships and any additional unfunded equity commitments. The following table summarizes certain tax credit and certain equity investments: December 31, Balance Sheet Location 2020 2019 Investments in affordable housing projects: Carrying amount Other assets $ 3,823 $ 3,684 Amount of future funding commitments included in carrying amount Other liabilities 1,057 1,271 Lending exposure NA 546 647 Renewable energy investments: Carrying amount Other assets 167 81 Amount of future funding commitments not included in carrying amount NA 76 246 Private equity and certain other equity method investments: Carrying amount Other assets 1,574 1,556 Amount of future funding commitments not included in carrying amount NA 471 331 The following table presents a summary of tax credits and amortization associated with the Company's tax credit investment activity: Year Ended December 31, Income Statement Location 2020 2019 2018 Tax credits: Investments in affordable housing projects Provision for income taxes $ 454 $ 284 $ 262 Other community development investments Provision for income taxes 96 39 — Renewable energy investments NA 159 — — Amortization and other changes in carrying amount: Investments in affordable housing projects Provision for income taxes $ 455 $ 279 $ 260 Other community development investments Other noninterest income 81 28 — Renewable energy investments Other noninterest income 4 4 — Letters of Credit and Financial Guarantees Commitments to extend, originate or purchase credit are primarily lines of credit to businesses and consumers and have specified rates and maturity dates. Many of these commitments also have adverse change clauses, which allow Truist to cancel the commitment due to deterioration in the borrowers' creditworthiness. 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. Consumer lending and revolving credit commitments have an immaterial fair value as Truist typically has the unconditional ability to cancel such commitments. Refer to "Note 18. Fair Value Disclosures" for additional disclosures on the RUFC. Truist has sold certain mortgage-related loans that contain recourse provisions. These provisions generally require Truist to reimburse the investor for a share of any loss that is incurred after the disposal of the property. Truist also issues standard representations and warranties related to mortgage loan sales to GSEs. Refer to "Note 8. Loan Servicing" for additional disclosures related to these exposures. Letters of credit and financial guarantees are unconditional commitments issued by Truist to guarantee the performance of a client to a third party. These guarantees are primarily issued to support borrowing arrangements, including commercial paper issuance, bond financing and similar transactions. The credit risk involved in the issuance of these guarantees is essentially the same as that involved in extending loans to clients and, as such, the instruments are collateralized when necessary. The following is a summary of selected notional amounts of off-balance sheet financial instruments: December 31, 2020 2019 Commitments to extend, originate or purchase credit $ 186,731 $ 177,598 Residential mortgage loans sold with recourse 328 371 CRE mortgages serviced for others covered by recourse provisions 9,019 8,676 Letters of credit 5,066 5,181 Derivatives Truist enters into derivative contracts to manage various financial risks. A derivative is a financial instrument that derives its cash flows, and therefore its value, by reference to an underlying instrument, index or referenced interest rate. Derivative contracts are carried at fair value on the Consolidated Balance Sheets with the fair value representing the net present value of expected future cash receipts or payments based on market interest rates. For additional information on derivative instruments, see "Note 19. Derivative Financial Instruments." Total Return Swaps The Company facilitates matched book TRS transactions on behalf of clients, whereby a VIE purchases reference assets identified by a client and the Company enters into a TRS with the VIE, with a mirror-image TRS facing the client. The Company provides senior financing to the VIE in the form of demand notes to fund the purchase of the reference assets. The TRS contracts pass through interest and other cash flows on the reference assets to the third party clients, along with exposing those clients to decreases in value on the assets and providing them with the rights to appreciation on the assets. The terms of the TRS contracts require the third parties to post initial margin collateral, as well as ongoing margin as the fair values of the underlying reference assets change. The Company concluded that the associated VIEs should be consolidated because the Company has (i) the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses, and the right to receive benefits, that could potentially be significant. At December 31, 2020, the Company’s Consolidated Balance Sheet reflected $1.3 billion of assets and $41 million of other liabilities of the VIEs. At December 31, 2019, the Company’s Consolidated Balance Sheet reflected $2.7 billion of assets and $116 million of other liabilities of the VIEs. Assets at December 31, 2020 and December 31, 2019 include $1.3 billion and $2.6 billion in trading loans, respectively. The activities of the VIEs are restricted to buying and selling the reference assets and the risks/benefits of any such assets owned by the VIEs are passed to the third party clients via the TRS contracts. For additional information on TRS contracts and the related VIEs, see "Note 19. Derivative Financial Instruments." Other Commitments Truist holds public funds in certain states that do not require 100% collateralization on public fund bank deposits. In these states, should the failure of another public fund depository institution result in a loss for the public entity, the resulting uncollateralized deposit shortfall would have to be absorbed on a pro-rata basis (based upon the public deposits held by each bank within the respective state) by the remaining financial institutions holding public funds in that state. Truist monitors deposits levels relative to the total public deposits held by all depository institutions within these states. The likelihood that the Company would have to perform under this guarantee is dependent on whether any financial institutions holding public funds default, as well as the adequacy of collateral coverage. In the ordinary course of business, Truist indemnifies its officers and directors to the fullest extent permitted by law against liabilities arising from pending litigation. Truist also issues standard representations and warranties in underwriting agreements, merger and acquisition agreements, loan sales, brokerage activities and other similar arrangements. Counterparties in many of these indemnification arrangements provide similar indemnifications to Truist. Although these agreements often do not specify limitations, Truist does not believe that any payments related to these guarantees would materially change the financial position or results of operations of Truist. As a member of the FHLB, Truist is required to maintain a minimum investment in capital stock. The board of directors of the FHLB can increase the minimum investment requirements in the event it has concluded that additional capital is required to allow it to meet its own regulatory capital requirements. Any increase in the minimum investment requirements outside of specified ranges requires the approval of the Federal Housing Finance Agency. Because the extent of any obligation to increase Truist's investment in the FHLB depends entirely upon the occurrence of a future event, potential future investments in the FLHB stock are not determinable. The Company utilizes the Fixed Income Clearing Corporation for trade comparisons, netting and settlement of fixed income securities. As a Government Securities Division netting member, the Company has a commitment to the Fixed Income Clearing Corporation to meet its financial obligations as a central counterparty clearing house in the event the Fixed Income Clearing Corporation has insufficient liquidity recourses through a potential committed liquidity resource repurchase transaction. Any commitment would be based on the Company’s share of its liquidity burden on the Fixed Income Clearing Corporation. Truist does not believe that any payments related to these guarantees would materially change the financial position or results of operations of Truist. Pledged Assets Certain assets were pledged to secure municipal deposits, securities sold under agreements to repurchase, certain derivative agreements, and borrowings or borrowing capacity, as well as for other purposes as required or permitted by law. Assets pledged to the FHLB and FRB are subject to applicable asset discounts when determining borrowing capacity. The Company obtains secured financing and letters of credit from the FRB and FHLB. The Company’s letters of credit from the FHLB can be used to secure various client deposits, including public fund relationships. Excluding assets related to employee benefit plans, the majority of the agreements governing the pledged assets do not permit the other party to sell or repledge the collateral. Additional assets were pledged to the FRB of Richmond in the first quarter of 2020 following the Merger. The following table provides the total carrying amount of pledged assets by asset type. December 31, 2020 2019 Pledged securities $ 24,974 $ 11,283 Pledged loans: FRB 75,615 30,238 FHLB 69,994 80,816 Unused borrowing capacity: FRB 52,831 21,169 FHLB 52,274 37,303 Litigation and Regulatory Matters Truist and/or its subsidiaries are routinely parties to numerous legal proceedings, including private, civil litigation and regulatory investigations, arising from the ordinary conduct of its regular business activities. The matters range from individual actions involving a single plaintiff to class action lawsuits with multiple class members and can involve claims for substantial amounts. Investigations involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation and may consist of a variety of claims, including common law tort and contract claims and statutory antitrust, securities and consumer protection claims, and the ultimate resolution of any proceeding is uncertain and inherently difficult to predict. 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 Truist. In accordance with the provisions of U.S. GAAP for contingencies, Truist establishes accruals for legal matters when potential losses associated with the actions become probable and the amount of loss can be reasonably estimated. There is no assurance that the ultimate resolution of these matters will not significantly exceed the amounts that Truist has accrued. Accruals for legal matter are based on management’s best judgment after consultation with counsel and others, as warranted. The Company’s estimate of reasonably possible losses, in excess of amounts accrued, ranges from zero to approximately $200 million as of December 31, 2020. This estimated range is based upon currently available information and involves considerable judgment, given that claims often include significant legal uncertainties, damages alleged by plaintiffs are often unspecified or overstated, discovery may not have started or may not be complete, and material facts may be disputed or unsubstantiated, among other factors. In addition, the matters underlying this estimated range will change from time to time, and actual losses may vary significantly from this estimate. As a result, the Company does not believe that an estimate of reasonably possible losses can be made for certain matters. Such matters are not reflected in the range provided here. The following is a description of certain legal proceedings in which Truist is involved: Bickerstaff v. SunTrust Bank This class action case was filed in the Fulton County State Court on July 12, 2010, and an amended complaint was filed on August 9, 2010. Plaintiff asserts that all overdraft fees charged to his account which related to debit card and ATM transactions are actually interest charges and therefore subject to the usury laws of Georgia. Plaintiff has brought claims for violations of civil and criminal usury laws, conversion, and money had and received. On October 6, 2017, the trial court granted plaintiff's motion for class certification and defined the class as "Every Georgia citizen who had or has one or more accounts with SunTrust Bank and who, from July 12, 2006, to October 6, 2017 (i) had at least one overdraft of $500.00 or less resulting from an ATM or debit card transaction (the "Transaction"); (ii) paid any Overdraft Fees as a result of the Transaction; and (iii) did not receive a refund of those Fees" and the granting of a certified class was affirmed on appeal. On April 8, 2020, the Company filed a motion seeking to narrow the scope of this class and on May 29, 2020, it filed a renewed motion to compel arbitration of the claims of some of the class members. On February 9, 2021, the trial court denied both motions as premature but held that the issues could be raised again after the conclusion of discovery, which is currently underway. The Company believes that the claims are without merit. |
Regulatory Requirements and Oth
Regulatory Requirements and Other Restrictions | 12 Months Ended |
Dec. 31, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Requirements and Other Restrictions | Regulatory Requirements and Other Restrictions Truist Bank is subject to laws and regulations that limit the amount of dividends it can pay. In addition, both Truist and Truist Bank are subject to various regulatory restrictions relating to the payment of dividends, including requirements to maintain capital at or above regulatory minimums, and to remain "well-capitalized" under the prompt corrective action regulations. Truist is subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated pursuant to regulatory directives. Truist's capital amounts and classification also are subject to qualitative judgments by the regulators about components, risk weightings and other factors. Truist is in full compliance with these requirements. Banking regulations also identify five capital categories for IDIs: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. At December 31, 2020 and 2019, Truist and Truist Bank were classified as "well-capitalized," and management believes that no events or changes have occurred subsequent to year end that would change this designation. Quantitative measures established by regulation to ensure capital adequacy require Truist to maintain minimum ratios of CET1 ratio of 4.5%, Tier 1 capital ratio of 6.0%, Total capital to risk-weighted assets ratio of 8.0%, Tier 1 capital to average tangible assets (leverage ratio) of 4.0% and supplementary leverage ratio of 3.0%. Truist is subject to a 2.7% SCB that became applicable on October 1, 2020. Truist Bank is subject to a 2.5% capital conservation buffer. The SCB and capital conservation buffer are amounts above the minimum levels designed to ensure that banks remain well-capitalized, even in adverse economic scenarios. Risk-based capital ratios, which include CET1, Tier 1 capital and Total capital, are calculated based on regulatory guidance related to the measurement of capital and risk-weighted assets. December 31, (Dollars in millions) 2020 2019 Ratio Amount Ratio Amount Truist Financial Corporation CET1 10.0 % $ 37,869 9.5 % $ 35,643 Tier 1 capital 12.1 45,915 10.8 40,743 Total capital 14.5 55,011 12.6 47,511 Leverage (1) 9.6 45,915 14.7 40,743 Supplementary leverage (2) 8.7 45,915 NA NA Truist Bank CET1 11.0 40,642 10.6 38,739 Tier 1 capital 11.0 40,642 10.6 38,739 Total capital 13.0 47,882 12.0 43,984 Leverage (1) 8.7 40,642 14.5 38,739 Supplementary leverage (2) 7.5 40,642 NA NA (1) The leverage ratio is calculated using end of period Tier 1 capital and quarterly average tangible assets. The timing of the Merger impacted the 4Q19 result. (2) Truist became subject to the supplementary leverage ratio as of January 1, 2020. As an approved seller/servicer, Truist Bank is required to maintain minimum levels of capital, as specified by various agencies, including the U.S. Department of Housing and Urban Development, GNMA, FHLMC and FNMA. At December 31, 2020 and 2019, Truist Bank's capital was above all required levels. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Recurring Fair Value Measurements Accounting standards define fair value as the 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 measurement hierarchy: • Level 1: Quoted prices for identical instruments in active markets • Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets • Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis: December 31, 2020 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: Trading assets: U.S. Treasury $ 793 $ — $ 793 $ — $ — GSE 164 — 164 — — Agency MBS - residential 599 — 599 — — Agency MBS - commercial 21 — 21 — — States and political subdivisions 34 — 34 — — Corporate and other debt securities 545 — 545 — — Loans 1,586 — 1,586 — — Other 130 123 7 — — Total trading assets 3,872 123 3,749 — — AFS securities: U.S. Treasury 1,746 — 1,746 — — GSE 1,917 — 1,917 — — Agency MBS - residential 113,541 — 113,541 — — Agency MBS - commercial 3,057 — 3,057 — — States and political subdivisions 493 — 493 — — Other 34 — 34 — — Total AFS securities 120,788 — 120,788 — — LHFS at fair value 4,955 — 4,955 — — MSRs at fair value 2,023 — — 2,023 — Other assets: Derivative assets 3,837 752 4,903 186 (2,004) Equity securities 1,054 996 58 — — Total assets $ 136,529 $ 1,871 $ 134,453 $ 2,209 $ (2,004) Liabilities: Derivative liabilities $ 555 $ 386 $ 3,263 $ 14 $ (3,108) Securities sold short 1,115 3 1,112 — — Total liabilities $ 1,670 $ 389 $ 4,375 $ 14 $ (3,108) December 31, 2019 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: Trading assets: U.S. Treasury $ 227 $ — $ 227 $ — $ — GSE 296 — 296 — — Agency MBS - residential 497 — 497 — — Agency MBS - commercial 68 — 68 — — States and political subdivisions 82 — 82 — — Non-agency MBS 277 — 277 — — Corporate and other debt securities 1,204 — 1,204 — — Loans 2,948 — 2,948 — — Other 134 90 44 — — Total trading assets 5,733 90 5,643 — — AFS securities: U.S. Treasury 2,276 — 2,276 — — GSE 1,881 — 1,881 — — Agency MBS - residential 68,236 — 68,236 — — Agency MBS - commercial 1,341 — 1,341 — — States and political subdivisions 585 — 585 — — Non-agency MBS 368 — — 368 — Other 40 — 40 — — Total AFS securities 74,727 — 74,359 368 — LHFS 5,673 — 5,673 — — MSRs 2,618 — — 2,618 — Other assets: Derivative assets 2,053 606 3,620 34 (2,207) Equity securities 817 815 2 — — Private equity investments 440 — — 440 — Total assets $ 92,061 $ 1,511 $ 89,297 $ 3,460 $ (2,207) Liabilities: Derivative liabilities $ 366 $ 204 $ 3,117 $ 15 $ (2,970) Securities sold short 1,074 18 1,056 — — Total liabilities $ 1,440 $ 222 $ 4,173 $ 15 $ (2,970) (1) Refer to "Note 19. Derivative Financial Instruments" for additional discussion on netting adjustments. At December 31, 2020, investments totaling $314 million have been excluded from the table above as valued based on net asset value as a practical expedient. The following discussion focuses on the valuation techniques and significant inputs for Level 2 and Level 3 assets and liabilities that are measured at fair value on a recurring basis. Available for Sale and Trading Securities: Securities accounted for at fair value include both the available-for-sale and trading portfolios. The Company uses prices obtained from pricing services, dealer quotes or recent trades to estimate the fair value of securities. The majority of AFS securities were priced by third party vendors whereas trading securities are priced internally. The AFS securities and trading securities are subject to IPV. Management independently evaluates the fair values of AFS Securities and trading securities through comparisons to 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 pricing information received from the pricing service. Fair value measurements for trading securities are derived from observable market-based information including, but not limited to, overall market conditions, recent trades, comparable securities, broker quotes and FINRA’s Trade Reporting and Compliance Engine data when determining the value of a position. Security prices are also validated through actual cash settlement upon the sale of a security. As described by security type below, additional inputs may be used, or some inputs may not be applicable. Trading loans: The Company has elected to measure trading loans at fair value. Trading loans are valued primarily using quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active by a third party pricing service. Trading loans include: • loans held in connection with the Company's trading business primarily consisting of commercial and corporate leveraged loans; • SBA loans guaranteed by the U.S. government; and • loans made or acquired in connection with the Company’s TRS business. U.S. Treasury securities: Treasury securities are valued using quoted prices in active over-the-counter markets. GSE securities and agency MBS: GSE securities consist of debt obligations issued by HUD, the FHLB, and other agencies, as well as securities collateralized by loans that are guaranteed by the SBA, and thus, are backed by the full faith and credit of the U.S. government. Agency MBS includes pass-through securities and CMO issued by GSEs and U.S. government agencies, such as FNMA, FHLMC, and GNMA. Each security contains a guarantee by the issuing GSE or agency. 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: The Company’s investments in U.S. states and political subdivisions include obligations of county and municipal authorities and agency bonds, which are general obligations of the municipality or are supported by a specified revenue source. Holdings are geographically dispersed, with no significant concentrations in any one state or municipality. Additionally, all municipal obligations are highly rated or are otherwise collateralized by securities backed by the full faith and credit of the federal government. 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: No non-agency MBS were held as of December 31, 2020. As of December 31, 2019, Non-agency MBS in the trading portfolio included purchased interests in third party securitizations that have a high investment grade rating, and the pricing matrices for these securities were 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; as such, these securities were classified as level 2. Non-agency MBS in the AFS securities portfolio included investments in Re-REMIC trusts that primarily hold U.S. Treasury securities and non-agency MBS, which were valued based on broker pricing models that use baseline securities yields and tranche-level yield adjustments to discount cash flows using market convention prepayment speed and default assumptions. These investments were classified as level 3. Corporate and other debt securities: These securities consist primarily of corporate bonds and commercial paper. Corporate bonds are senior and subordinated debt obligations of domestic corporations. The Company acquires commercial paper that is generally short-term in nature and highly rated. These securities are valued based on a review of quoted market prices for similar assets as well as through the various other inputs discussed previously. LHFS: Certain mortgage loans that are originated to be sold to investors are carried at fair value. The fair value is primarily based on quoted market prices for securities backed by similar types of loans, adjusted for servicing, interest rate risk, and credit risk. 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 and then 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. The Company considers actual and expected loan prepayment rates, discount rates, servicing costs and other economic factors that are determined based on current market conditions. Refer to "Note 8. Loan Servicing" for additional discussion. Derivative assets and liabilities: The Company holds derivative instruments for both trading and risk management purposes. These include exchange-traded futures or option contracts, OTC swaps, options, forwards and interest rate lock commitments. The fair values of derivatives are determined based on quoted market prices and internal pricing models that use market observable assumptions for interest rates, foreign exchange, equity and credit. 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. Funding rates are based on the Company’s historical data. The fair value attributable to servicing is based on discounted cash flows, and is impacted by prepayment assumptions, discount rates, delinquency rates, contractually-specified servicing fees, servicing costs and underlying portfolio characteristics. Equity securities: Equity securities primarily consist of exchange-traded securities and are valued using quoted prices in active markets. 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 investee to multiples in the marketplace for similar entities. This analysis requires significant judgment, and actual values in a sale could differ materially from those estimated. Securities sold short: Securities sold short represent debt securities sold short that are entered into as a hedging strategy for the purposes of supporting institutional and retail client trading activities. The fair value of securities sold short is determined in the same manner as trading securities. Activity for Level 3 assets and liabilities is summarized below: Trading Assets 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 — 9 71 11 66 Purchases 5 — — — 91 Issuances — — 152 24 — Sales (2) — — — (112) Settlements — (50) (171) (26) (56) Balance at December 31, 2018 3 391 1,108 12 393 Total realized and unrealized gains (losses): Included in earnings — 13 (105) 63 47 Included in unrealized net holding gains (losses) in OCI — 4 — — — Purchases 23 — 31 (1) 137 Issuances — — 170 63 — Sales (26) — (27) — (91) Settlements — (40) (164) (118) (46) Transfers into Level 3 — — — (10) — Merger additions — — 1,605 10 — Balance at December 31, 2019 — 368 2,618 19 440 Total realized and unrealized gains (losses): Included in earnings — 306 (550) 467 2 Included in unrealized net holding gains (losses) in OCI — (178) — — — Purchases — — — — 27 Issuances — — 711 780 — Sales — (481) — — — Settlements — (15) (756) (1,094) (21) Transfers out of level 3 and other — — — — (448) Balance at December 31, 2020 $ — $ — $ 2,023 $ 172 $ — Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2020 $ — $ — $ (535) $ 179 $ — Primary income statement location of realized gains (losses) included in earnings Net interest income Gain on sale of securities Residential mortgage income and Commercial real estate related income Residential mortgage income and Commercial real estate related income Other income During 2020, Truist sold non-agency MBS previously categorized as Level 3 that represented ownership interests in various tranches of Re-REMIC trusts. The Re-REMIC tranches did not have an active market and therefore were categorized as Level 3. During 2020, as a result of a change in control of the funds’ manager, the Company deconsolidated certain SBIC funds for which it had previously concluded that it was the primary beneficiary. Following the deconsolidation, the investments in SBIC funds are valued based on net asset value per unit, as provided by the fund manager as a practical expedient, which approximates the fair value, and have not been classified in the fair value hierarchy. The SBIC funds in which the Company invests 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 over the next 10 years, is uncertain and dependent on various events such as recapitalizations, refinance transactions and ownership changes among others. As of December 31, 2020, restrictions on the ability to sell the investments include, but are not limited to, consent of a majority of members 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. Refer to "Note 8. Loan Servicing" for additional information on valuation techniques and inputs for MSRs. Fair Value Option The following table details the fair value and UPB of LHFS that were elected to be measured at fair value. Trading loans, included in other trading assets, were also elected to be measured at fair value. December 31, 2020 2019 Fair Value UPB Difference Fair Value UPB Difference Trading loans $ 1,586 $ 1,619 $ (33) $ 2,948 $ 2,982 $ (34) LHFS at fair value 4,955 4,736 219 5,673 5,563 110 Nonrecurring Fair Value Measurements The following table provides information about certain assets measured at fair value on a nonrecurring basis. 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 (2019 excludes PCI). 2020 2019 As of / For The Year Ended December 31, Carrying Value Valuation Adjustments Carrying Value Valuation Adjustments LHFS $ 979 $ (101) $ 2,700 $ (17) Loans and leases 142 (52) 95 (23) Other 92 (175) 84 (253) LHFS with valuation adjustments in the table above consisted primarily of residential mortgages and commercial loans that were valued using market prices and measured at the lower of cost or market. LHFS as of December 31, 2020 includes the small ticket loan and lease portfolio. The table above excludes $125 million of LHFS carried at cost at December 31, 2020 that did not require a valuation adjustment during the period. The remainder of LHFS is carried at fair value. Excluding government guaranteed loans, the Company held $5 million in nonperforming LHFS at December 31, 2020 and $107 million of nonperforming LHFS at December 31, 2019. LHFS that were 90 days or more past due and still accruing interest were not material at December 31, 2020. Loans and leases are primarily collateral dependent and may be subject to liquidity adjustments. Refer to "Note 1. Basis of Presentation" for additional discussion of individually evaluated loans and leases. Other includes foreclosed real estate, other foreclosed property, ROU assets, premises and equipment and OREO, and consists primarily of residential homes, commercial properties, vacant lots and automobiles. ROU assets are measured based on the fair value of the assets, which considers the potential for future sublease income. The remaining assets are measured at the lower of cost or fair value less costs to sell. Financial Instruments Not Recorded at Fair Value For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instruments. Values obtained relate to trading 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 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. In addition, changes in assumptions could significantly affect these fair value estimates. Financial assets and liabilities not recorded at fair value are summarized below: December 31, 2020 2019 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Loans and leases HFI, net of ALLL Level 3 $ 293,899 $ 295,461 $ 298,293 $ 298,586 Financial liabilities: Time deposits Level 2 21,941 22,095 35,896 35,885 Long-term debt Level 2 39,597 40,864 41,339 42,051 The carrying value of the RUFC, which approximates the fair value of unfunded commitments, was $364 million and $373 million at December 31, 2020 and December 31, 2019, respectively. Prior to the adoption of CECL, the carrying value includes deferred fees. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Impact of Derivatives on the Consolidated Balance Sheets The following table presents the gross notional amounts and estimated fair value of derivative instruments employed by the Company. Truist held no cash flow hedges as of December 31, 2020 and December 31, 2019. 2020 2019 December 31, Notional Amount Fair Value Notional Amount Fair Value Gain Loss Gain Loss Fair value hedges: Interest rate contracts: Swaps hedging long-term debt $ — $ — $ — $ 23,701 $ 113 $ (25) Options hedging long-term debt — — — 3,407 — (2) Swaps hedging commercial loans — — — 44 — — Swaps hedging AFS securities 17,765 — — — — — Total 17,765 — — 27,152 113 (27) Not designated as hedges: Client-related and other risk management: Interest rate contracts: Swaps 156,338 3,399 (862) 144,473 1,817 (673) Options 25,386 45 (18) 25,938 28 (19) Forward commitments 4,847 9 (11) 7,907 6 (7) Other 2,573 — — 1,807 — — Equity contracts 31,152 1,856 (2,297) 38,426 1,988 (2,307) Credit contracts: Loans and leases 1,056 — (5) 894 — (34) Risk participation agreements 7,802 1 (13) 6,696 — (2) Total return swaps 1,296 13 (33) 2,531 27 (11) Foreign exchange contracts 12,066 189 (219) 12,986 144 (164) Commodity 2,872 130 (124) 2,659 67 (65) Total 245,388 5,642 (3,582) 244,317 4,077 (3,282) Mortgage banking: Interest rate contracts: Swaps 687 — — 535 — — Interest rate lock commitments 8,609 186 (3) 4,427 34 (2) When issued securities, forward rate agreements and forward commitments 11,691 6 (73) 11,997 10 (18) Other 466 — — 603 2 — Total 21,453 192 (76) 17,562 46 (20) MSRs: Interest rate contracts: Swaps 36,161 — (5) 19,196 — — Options 101 — — 1,519 22 (2) When issued securities, forward rate agreements and forward commitments 1,314 7 — 5,560 2 (5) Other 760 — — 567 — — Total 38,336 7 (5) 26,842 24 (7) Total derivatives not designated as hedges 305,177 5,841 (3,663) 288,721 4,147 (3,309) Total derivatives $ 322,942 5,841 (3,663) $ 315,873 4,260 (3,336) Gross amounts in the Consolidated Balance Sheets: Amounts subject to master netting arrangements (1,561) 1,561 (1,708) 1,708 Cash collateral (received) posted for amounts subject to master netting arrangements (443) 1,547 (499) 1,262 Net amount $ 3,837 $ (555) $ 2,053 $ (366) The following table presents the offsetting of derivative instruments including financial instrument collateral related to legally enforceable master netting agreements and amounts held or pledged as collateral. U.S. GAAP does not permit netting of non-cash collateral balances in the consolidated balance sheet: December 31, 2020 Gross Amount Amount Offset Net Amount in Consolidated Balance Sheets Held/Pledged Financial Instruments Net Amount Derivative assets: Derivatives subject to master netting arrangement or similar arrangement $ 4,383 $ (1,618) $ 2,765 $ (2) $ 2,763 Derivatives not subject to master netting arrangement or similar arrangement 705 — 705 (1) 704 Exchange traded derivatives 753 (386) 367 — 367 Total derivative assets $ 5,841 $ (2,004) $ 3,837 $ (3) $ 3,834 Derivative liabilities: Derivatives subject to master netting arrangement or similar arrangement $ (3,103) $ 2,722 $ (381) $ 35 $ (346) Derivatives not subject to master netting arrangement or similar arrangement (174) — (174) — (174) Exchange traded derivatives (386) 386 — — — Total derivative liabilities $ (3,663) $ 3,108 $ (555) $ 35 $ (520) December 31, 2019 Gross Amount Net Amount in Consolidated Balance Sheets Held/Pledged Financial Instruments Net Amount Derivative assets: Derivatives subject to master netting arrangement or similar arrangement $ 3,516 $ (2,003) $ 1,513 $ (17) $ 1,496 Derivatives not subject to master netting arrangement or similar arrangement 138 — 138 (1) 137 Exchange traded derivatives 606 (204) 402 — 402 Total derivative assets $ 4,260 $ (2,207) $ 2,053 $ (18) $ 2,035 Derivative liabilities: Derivatives subject to master netting arrangement or similar arrangement $ (2,939) $ 2,761 $ (178) $ 22 $ (156) Derivatives not subject to master netting arrangement or similar arrangement (193) 5 (188) 11 (177) Exchange traded derivatives (204) 204 — — — Total derivative liabilities $ (3,336) $ 2,970 $ (366) $ 33 $ (333) The following table presents the carrying value of hedged items in fair value hedging relationships: 2020 2019 Hedge Basis Adjustment Hedge Basis Adjustment December 31, Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated AFS securities $ 100,988 $ (33) $ 50 $ 473 $ — $ 65 Loans and leases 470 — 18 528 3 15 Long-term debt 27,725 — 930 28,557 174 23 Impact of Derivatives on the Consolidated Statements of Income and Comprehensive Income Derivatives Designated as Hedging Instruments under GAAP 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. Year Ended December 31, 2020 2019 2018 Pre-tax gain (loss) recognized in OCI: Deposits $ — $ (42) $ 15 Short-term borrowings — 2 (3) Long-term debt — (76) 57 Total $ — $ (116) $ 69 Pre-tax gain (loss) reclassified from AOCI into interest expense: Deposits $ (8) $ (1) $ (1) Short-term borrowings (19) (10) 1 Long-term debt (21) (14) (12) Total $ (48) $ (25) $ (12) The following table summarizes the impact on net interest income related to fair value hedges: Year Ended December 31, 2020 2019 2018 AFS securities: Amounts related to interest settlements $ (3) $ — $ (5) Recognized on derivatives 29 (16) 12 Recognized on hedged items (41) 8 (15) Net income (expense) recognized (15) (8) $ (8) Loans and leases: Amounts related to interest settlements (1) — (2) Recognized on derivatives (3) (21) (1) Recognized on hedged items 1 19 2 Net income (expense) recognized (3) (2) (1) Long-term debt: Amounts related to interest settlements 182 (56) (30) Recognized on derivatives 831 170 (122) Recognized on hedged items (732) (151) 165 Net income (expense) recognized 281 (37) 13 Net income (expense) recognized, total $ 263 $ (47) $ 4 The following table presents information about the Company's cash flow and fair value hedges: December 31, 2020 2019 Cash flow hedges: Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) $ (64) $ (101) 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 (42) (37) Fair value hedges: Unrecognized pre-tax net gain (loss) on terminated hedges (to be recognized as interest primarily through 2029) $ 862 $ (57) Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months 292 (6) Derivatives Not Designated as Hedging Instruments under GAAP The Company also enters into derivatives that are not designated as accounting hedges under GAAP to economically hedge certain risks as well as in a trading capacity with its clients. The following table presents pre-tax gain (loss) recognized in income for derivative instruments not designated as hedges: Year Ended December 31, Location 2020 2019 2018 Client-related and other risk management: Interest rate contracts Investment banking and trading income and other income $ 44 $ 76 $ 40 Foreign exchange contracts Investment banking and trading income and other income (45) (13) 21 Equity contracts Investment banking and trading income and other income (4) (3) — Credit contracts Investment banking and trading income and other income 178 (25) — Commodity contracts Investment banking and trading income 6 — — Mortgage banking: Interest rate contracts Residential mortgage income (418) (61) 36 Interest rate contracts Commercial real estate related income 3 (4) — MSRs: Interest rate contracts Residential mortgage income 495 137 (62) Interest rate contracts Commercial real estate related income 20 7 (3) Total $ 279 $ 114 $ 32 Credit Derivative Instruments As part of the Company’s corporate investment banking business, the Company enters into contracts that are, in form or substance, written guarantees; specifically, credit default swaps, risk participations and TRS. The Company accounts for these contracts as derivatives. The Company has entered into TRS contracts on loans. To mitigate its credit risk, the Company typically receives initial margin from the counterparty upon entering into the TRS and variation margin if the fair value of the underlying reference assets deteriorates. For additional information on the Company’s TRS contracts, see "Note 16. Commitments and Contingencies." Truist has entered into risk participation agreements to share the credit exposure with other financial institutions on client-related interest rate derivative contracts. Under these agreements, the Company has guaranteed payment to a dealer counterparty in the event the counterparty experiences a loss on the derivative due to a failure to pay by the counterparty’s client. The Company manages its payment risk on its risk participations by monitoring the creditworthiness of the underlying client through the normal credit review process that the Company would have performed had it entered into a derivative directly with the obligors. At December 31, 2020, the remaining terms on these risk participations ranged from less than one year to 10 years. The potential future exposure represents the Company’s maximum estimated exposure to written risk participations, as measured by projecting a maximum value of the guaranteed derivative instruments based on scenario simulations and assuming 100% default by all obligors on the maximum value. The following table presents additional information related to interest rate derivative risk participation agreements and total return swaps: December 31, 2020 2019 Risk participation agreements: Maximum potential amount of exposure $ 530 $ 291 Total return swaps: Cash collateral held 374 653 The following table summarizes collateral positions with counterparties: December 31, 2020 2019 Dealer and other counterparties: Cash and other collateral received from counterparties $ 446 $ 514 Derivatives in a net gain position secured by collateral received 585 615 Unsecured positions in a net gain with counterparties after collateral postings 49 101 Cash collateral posted to dealer counterparties 1,524 1,255 Derivatives in a net loss position secured by collateral 1,604 1,300 Additional collateral that would have been posted had the Company's credit ratings dropped below investment grade 3 12 Central counterparties clearing: Cash collateral, including initial margin, posted to central clearing parties 172 30 Derivatives in a net loss position 90 31 Derivatives in a net gain position 5 — Securities pledged to central counterparties clearing 1,281 513 |
Computation of EPS
Computation of EPS | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of EPS | Computation of EPS Basic and diluted EPS calculations are presented in the following table: Year Ended December 31, 2020 2019 2018 Net income available to common shareholders $ 4,184 $ 3,028 $ 3,063 Weighted average number of common shares 1,347,080 805,104 772,963 Effect of dilutive outstanding equity-based awards 11,209 10,100 10,521 Weighted average number of diluted common shares 1,358,289 815,204 783,484 Basic EPS $ 3.11 $ 3.76 $ 3.96 Diluted EPS $ 3.08 $ 3.71 $ 3.91 Anti-dilutive awards 16 4 22 |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating SegmentsTruist operates and measures business activity across three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings, with functional activities included in Other, Treasury, and Corporate. The Company's business segment structure is based on the manner in which financial information is evaluated by management as well as the products and services provided or the type of client served. Consumer Banking and Wealth The CB&W segment is made up of five primary businesses: • Retail Community Banking provides banking, borrowing, investing and protection services, and advice through Premier Banking, to individuals and small business clients through an extensive network of branches and ATMs, digital channels and contact centers. Financial products and services offered include deposits and payments, credit cards, loans, mortgages, brokerage and investment advisory services and insurance solutions. Consumer Banking also serves as an entry point for clients and services for other businesses. • NCF&P provides a comprehensive set of technology-enabled lending solutions to individuals and small businesses through several national channels including LightStream, Sheffield and certain point-of-sale lending partnerships. NCF&P also provides merchant services and payment processing solutions to business clients in the community bank. • Wealth provides a full array of wealth management and banking products and professional services to individuals and institutional clients, including trust, brokerage, professional investment advisory, loans and deposits services to clients seeking active management of their financial resources. Institutional clients are served by the Institutional Investment Management Group. Full service and online/discount brokerage products are offered to individual clients; additionally, investment advisory products and services are offered to clients through an SEC registered investment advisor. Wealth also includes GenSpring Family Office Advisory Services, LLC, which provides family office solutions to clients and their families to help them manage and sustain wealth across multiple generations, including family meeting facilitation, consolidated reporting, expense management, specialty asset management and business transition advice, as well as other wealth management disciplines. • Mortgage Banking offers residential mortgage products nationally through its retail and correspondent channels, the internet and by telephone. These products are either sold in the secondary market, typically with servicing rights retained, or held in the Company’s loan portfolio. Mortgage Banking also services loans held in the Company’s loan portfolio as well as those held by third party investors. Mortgage also includes Mortgage Warehouse Lending, which provides short-term lending solutions to finance first-lien residential mortgage LHFS by independent mortgage companies. • Dealer Retail Services originates loans to individuals on a prime and nonprime basis for the purchase of automobiles. Such loans are originated on an indirect basis through approved franchised and independent automobile dealers throughout the Truist market area and nationally through Regional Acceptance Corporation. Additionally, Dealer Retail Services originates loans for the purchase of boats and other recreational vehicles through dealers in Truist’s market area. Corporate and Commercial Banking The C&CB segment is made up of four primary businesses and the Treasury Solutions product group: • Corporate and Investment Banking delivers a comprehensive range of strategic advisory, capital raising, risk management, financing, liquidity and investment solutions, with the goal of serving the needs of both public and private companies in the C&CB segment. Investment Banking and Corporate Banking teams within CIB serve clients across the nation, offering a full suite of traditional banking and investment banking products and services. Investment Banking serves select industry segments including consumer and healthcare, energy, technology, financial services, industrials, and media and communications. Corporate Banking serves clients across diversified industry sectors based on size, complexity, and frequency of capital markets issuance. • Commercial Community Banking offers an array of traditional banking products, including lending, deposits, cash management and investment banking solutions via CIB to commercial clients (generally clients with revenues between $5 million and $500 million), including not-for-profit organizations, governmental entities, healthcare and aging services and auto dealer financing (floor plan inventory financing). Local teams deliver these solutions along with the Company’s industry expertise to commercial clients to help them achieve their goals. • Commercial Real Estate provides a range of credit and deposit services as well as fee-based product offerings to developers, operators, and investors in commercial real estate properties through its National Banking Division. Additionally, Commercial Real Estate offers tailored financing and equity investment solutions for community development and affordable housing projects, with particular expertise in Low Income Housing Tax Credits and New Market Tax Credits. Real Estate Corporate and Investment Banking targets relationships with publicly-traded and privately owned REITs. • Grandbridge Real Estate Capital, LLC is a fully integrated commercial mortgage investment banking company that originates commercial and multi-family real estate loans, services loan portfolios and provides asset and portfolio management as well as real estate brokerage services. Additionally, the Investor Services Group offers loan administration, special servicing, valuation and advisory services to third party clients. • Treasury Solutions provides business clients in the C&CB and CB&W segments with services required to manage their payments and receipts, combined with the ability to manage and optimize their deposits across all aspects of their business. Treasury Solutions operates all electronic and paper payment types, including card, wire transfer, ACH, check and cash. It also provides clients the means to manage their accounts electronically online, both domestically and internationally. Insurance Holdings Truist’s IH segment is one of the largest insurance agency / brokerage networks, providing property and casualty, employee benefits and life insurance to businesses and individuals. It also provides small business and corporate services, such as workers compensation and professional liability, as well as surety coverage and title insurance. IH also includes Prime Rate Premium Finance Corporation, which includes AFCO Credit Corporation and CAFO Holding Company, insurance premium finance subsidiaries that provide funding to businesses in the United States and Canada. Other, Treasury & Corporate OT&C includes management of the Company’s investment securities portfolio, long-term debt, derivative instruments used for balance sheet hedging, short-term liquidity and funding activities, balance sheet risk management and most real estate assets, as well as the Company's functional activities such as marketing, finance, enterprise risk, legal, enterprise technology and executive leadership, among others. Additionally, OT&C houses intercompany eliminations, including intersegment net referral fees and residual interest rate risk after segment allocations have taken place. Truist emphasizes revenue growth by focusing on client service, sales effectiveness and relationship management along with an organizational focus on referring clients between businesses. The objective is to provide Truist’s entire suite of products to its clients with the end goal of providing clients the best financial experience in the marketplace. To promote revenue growth, revenues of certain products and services are reflected in the results of the segment providing those products and services and are also allocated to CB&W and C&CB. These allocated revenues between segments are reflected as net referral fees in noninterest income and eliminated in OT&C. The segment results are presented based on internal management methodologies that were designed to support these strategic objectives. Unlike financial accounting, there is no comprehensive authoritative body of guidance for management accounting equivalent to GAAP. The performance of the segments is not comparable with Truist’s consolidated results or with similar information presented by any other financial institution. Additionally, because of the interrelationships between the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Because business segment results are presented based on management accounting practices, the transition to the consolidated results prepared under U.S. GAAP creates certain differences, which are reflected as residuals in OT&C. Business segment reporting conventions include, but are not limited to, the items as detailed below. Segment net interest income reflects matched maturity funds transfer pricing, which ascribes credits or charges based on the economic value or cost created by assets and liabilities of each segment. Residual differences between these credits and charges are captured in OT&C. Noninterest income includes inter-segment referral fees, as well as federal and state tax credits that are grossed up on a pre-tax equivalent basis, related primarily to certain community development investments. Recoveries for these allocations are reported in OT&C. Corporate expense allocations, including overhead or functional expenses that are not directly charged to the segments, are allocated to segments based on various drivers (number of FTEs, number of accounts, loan balances, net revenue, etc.). Recoveries for these allocations are reported in OT&C. Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to each segment’s quarterly change in the ALLL. Provision for income taxes is calculated using a blended income tax rate for each segment and includes reversals of the noninterest income tax adjustments described above. The difference between the calculated provision for income taxes at the segment level and the consolidated provision for income taxes is reported in OT&C. The application and development of management reporting methodologies is an active process and undergoes periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment, with no impact on consolidated results. If significant changes to management reporting methodologies take place, the impact of these changes is quantified and prior period information is revised, when practicable. The following table presents results by segment: Year Ended December 31, CB&W C&CB IH OT&C (1) Total 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Net interest income (expense) $ 7,377 $ 3,633 $ 3,410 $ 5,391 $ 3,153 $ 2,723 $ 126 $ 146 $ 119 $ 932 $ 381 $ 430 $ 13,826 $ 7,313 $ 6,682 Net intersegment interest income (expense) 1,424 923 406 (213) (409) (110) (32) (44) (32) (1,179) (470) (264) — — — Segment net interest income 8,801 4,556 3,816 5,178 2,744 2,613 94 102 87 (247) (89) 166 13,826 7,313 6,682 Allocated provision for credit losses 1,004 513 506 1,304 102 111 9 9 3 18 (9) (54) 2,335 615 566 Segment net interest income after provision 7,797 4,043 3,310 3,874 2,642 2,502 85 93 84 (265) (80) 220 11,491 6,698 6,116 Noninterest income 4,056 2,316 2,047 2,476 1,168 1,019 2,241 2,112 1,872 106 (341) (62) 8,879 5,255 4,876 Amortization of intangibles 419 58 41 175 31 19 72 74 71 19 1 — 685 164 131 Other noninterest expense 7,431 3,970 3,408 3,272 1,509 1,471 1,713 1,703 1,544 1,796 588 378 14,212 7,770 6,801 Income (loss) before income taxes 4,003 2,331 1,908 2,903 2,270 2,031 541 428 341 (1,974) (1,010) (220) 5,473 4,019 4,060 Provision (benefit) for income taxes 944 566 473 582 479 433 134 110 88 (679) (373) (191) 981 782 803 Segment net income (loss) $ 3,059 $ 1,765 $ 1,435 $ 2,321 $ 1,791 $ 1,598 $ 407 $ 318 $ 253 $ (1,295) $ (637) $ (29) $ 4,492 $ 3,237 $ 3,257 Identifiable assets (period end) $ 163,548 $ 169,970 $ 74,974 $ 186,555 $ 185,855 $ 85,985 $ 7,932 $ 7,325 $ 6,622 $ 151,193 $ 109,928 $ 58,116 $ 509,228 $ 473,078 $ 225,697 (1) Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure. |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Information | Parent Company Financial Information Parent Company - Condensed Balance Sheets (Dollars in millions) December 31, 2020 2019 Assets: Cash and due from banks $ 688 $ 361 Interest-bearing deposits with banks 13,434 12,031 AFS securities at fair value 82 137 Advances to / receivables from subsidiaries: Banking 2,541 1,350 Nonbank 3,734 3,735 Total advances to / receivables from subsidiaries 6,275 5,085 Investment in subsidiaries: Banking 65,641 64,206 Nonbank 4,296 3,856 Total investment in subsidiaries 69,937 68,062 Other assets 313 655 Total assets $ 90,729 $ 86,331 Liabilities and Shareholders' Equity: Short-term borrowings $ 621 $ 603 Long-term debt 18,890 18,130 Other liabilities 306 1,040 Total liabilities 19,817 19,773 Total shareholders' equity 70,912 66,558 Total liabilities and shareholders' equity $ 90,729 $ 86,331 Parent Company - Condensed Income and Comprehensive Income Statements (Dollars in millions) Year Ended December 31, 2020 2019 2018 Income: Dividends from subsidiaries: Banking $ 2,800 $ 1,650 $ 2,825 Nonbank 5 35 147 Total dividends from subsidiaries 2,805 1,685 2,972 Interest and other income from subsidiaries 170 217 164 Other income 12 — 7 Total income 2,987 1,902 3,143 Expenses: Interest expense 333 475 364 Other expenses 174 250 82 Total expenses 507 725 446 Income before income taxes and equity in undistributed earnings of subsidiaries 2,480 1,177 2,697 Income tax benefit 56 92 52 Income before equity in undistributed earnings of subsidiaries 2,536 1,269 2,749 Equity in undistributed earnings of subsidiaries in excess of dividends from subsidiaries 1,956 1,968 508 Net income 4,492 3,237 3,257 Total OCI 1,560 871 (248) Total comprehensive income $ 6,052 $ 4,108 $ 3,009 Parent Company - Statements of Cash Flows (Dollars in millions) Year Ended December 31, 2020 2019 2018 Cash Flows From Operating Activities: Net income $ 4,492 $ 3,237 $ 3,257 Adjustments to reconcile net income to net cash from operating activities: Equity in earnings of subsidiaries in excess of dividends from subsidiaries (1,956) (1,968) (508) Other, net (704) 84 (28) Net cash from operating activities 1,832 1,353 2,721 Cash Flows From Investing Activities: Proceeds from maturities, calls, and paydowns of AFS securities 79 157 33 Purchases of AFS securities (22) (79) (28) Investment in subsidiaries (79) (1) — Advances to subsidiaries (6,711) (5,358) (4,639) Proceeds from repayment of advances to subsidiaries 5,499 8,304 3,665 Net cash from acquisitions and divestitures — 1,903 — Other, net 14 (1) (4) Net cash from investing activities (1,220) 4,925 (973) Cash Flows From Financing Activities: Net change in short-term borrowings 18 53 (5) Net change in long-term debt 397 370 1,746 Repurchase of common stock — — (1,205) Net proceeds from preferred stock issued 3,449 1,683 — Redemption of preferred stock (500) (1,725) — Cash dividends paid on common and preferred stock (2,725) (1,459) (1,378) Other, net 479 (40) (52) Net cash from financing activities 1,118 (1,118) (894) Net Change in Cash and Cash Equivalents 1,730 5,160 854 Cash and Cash Equivalents, January 1 12,392 7,232 6,378 Cash and Cash Equivalents, December 31 $ 14,122 $ 12,392 $ 7,232 The transfer of funds in the form of dividends, loans or advances from bank subsidiaries to the Parent Company is restricted. Federal law requires loans to the Parent Company or its affiliates to be secured and at market terms and generally limits loans to the Parent Company or an individual affiliate to 10% of Truist Bank's unimpaired capital and surplus. In the aggregate, loans to the Parent Company and all affiliates cannot exceed 20% of the bank's unimpaired capital and surplus. Dividend payments to the Parent Company by Truist Bank are subject to regulatory review and statutory limitations and, in some instances, regulatory approval. In general, dividends from Truist Bank to the Parent Company are limited by rules which compare dividends to net income for regulatory-defined periods. Furthermore, dividends are restricted by regulatory minimum capital constraints. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Truist Financial Corporation and those subsidiaries that are wholly or majority owned by Truist or over which Truist exercises control. Intercompany accounts and transactions are eliminated in consolidation. The results of operations of companies or assets acquired are included from the date of acquisition. Results of operations associated with entities or net assets sold are included through the date of disposition. Truist holds investments in certain legal entities that are considered VIEs. VIEs are legal entities in which equity investors do not have sufficient equity at risk for the entity to independently finance its activities, or as a group, the holders of the equity investment at risk lack the power through voting or similar rights to direct the activities of the entity that most significantly impact its economic performance, or do not have the obligation to absorb the expected losses of the entity or the right to receive expected residual returns of the entity. Consolidation of a VIE is required if a reporting entity is the primary beneficiary of the VIE. Investments in VIEs are evaluated to determine if Truist is the primary beneficiary. This evaluation gives appropriate consideration to the design of the entity and the variability that the entity was designed to create and pass along, the relative power of each party, and to Truist's obligation to absorb losses or receive residual returns of the entity. Truist has variable interests in certain entities that are not required to be consolidated, including affordable housing and other partnership interests. Refer to "Note 16. Commitments and Contingencies" for additional disclosures regarding Truist's VIEs. Investments in entities for which the Company has the ability to exercise significant influence, but not control, over operating and financing decisions are accounted for using the equity method of accounting. These investments are included in Other assets in the Consolidated Balance Sheets at cost, adjusted to reflect the Company’s portion of income, loss, or dividends of the investee. Truist records its portion of income or loss in Other noninterest income in the Consolidated Statements of Income. These investments are periodically evaluated for impairment. The Company reports any noncontrolling interests in its subsidiaries in the equity section of the Consolidated Balance Sheets and separately presents the income or loss attributable to the noncontrolling interest of a consolidated subsidiary in its Consolidated Statements of Income. |
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 during the reporting periods. Actual results could differ from those estimates. |
Business Combinations | Business Combinations Truist accounts for business combinations using the acquisition method. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. See "Note 2. Business Combinations" for further discussion of the Merger and its impact on the Company’s consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents includes cash and due from banks and interest-bearing deposits with banks that have original maturities of three months or less. Accordingly, the carrying amount of such instruments is considered a reasonable estimate of fair value. Restricted cash was immaterial at December 31, 2020 and 2019. |
Securities Financing Activities | Securities Financing Activities The Company borrows securities and purchases securities under agreements to resell as part of its securities financing activities. On the acquisition date of these securities, the Company and related counterparty agree on the amount of collateral required to secure the principal amount loaned under these agreements. The Company monitors collateral values daily and calls for additional collateral to be provided as warranted under the respective agreements. Short-term borrowings include securities sold under agreements to repurchase, which are accounted for as collateralized financing transactions and are recorded at the amounts at which the securities were sold, plus accrued interest within Short-term borrowings. |
Trading Activities | Trading Activities Various trading assets and liabilities are used to accommodate the investment and risk management activities of the Company's clients. Product offerings to clients include debt securities, loans traded in the secondary market, equity securities, derivative contracts, and other similar financial instruments. The Company elects to apply fair value accounting to trading loans. Trading loans include: (i) loans held in connection with the Company's trading business primarily consisting of commercial and corporate leveraged loans; (ii) certain SBA loans guaranteed by the U.S. government; and (iii) loans made or acquired in connection with the Company’s TRS business. Other trading-related activities include acting as a market maker for certain debt and equity security transactions, derivative instrument transactions, and foreign exchange transactions. Trading assets and liabilities are measured at fair value with changes in fair value recognized within Noninterest income in the Company’s Consolidated Statements of Income. Interest income on trading account securities is included in Interest on other earning assets. For additional information on the Company’s trading activities, see "Note 16. Commitments and Contingencies" and "Note 18. Fair Value Disclosures." |
Investment Securities | Investment Securities The Company invests in various debt securities primarily for liquidity management purposes and as part of the overall ALM process to optimize income and market performance. Investments in debt securities that are not held for trading purposes are classified as AFS. Interest income on securities is recognized in income on an accrual basis. Premiums and discounts are amortized into interest income using the effective interest method over the contractual life of the security. As prepayments are received, a proportionate amount of the related premium or discount is recognized in income so that the effective interest rate on the remaining portion of the security continues unchanged. AFS securities are reported at estimated fair value, with unrealized gains and losses reported in AOCI, net of deferred income taxes, in the Shareholders' equity section of the Consolidated Balance Sheets. Gains or losses realized from the sale of AFS securities are determined by specific identification and are included in noninterest income. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. AFS debt securities in an unrealized loss position are evaluated at the balance sheet date to determine whether such losses are credit-related. Credit losses are measured on an individual basis and recognized in an ACL. Changes in expected credit losses are recognized in the Provision for credit losses in the Consolidated Statements of Income. Municipal securities are evaluated for impairment using a municipal bond credit scoring tool that leverages historical municipal market data to estimate probability of default and loss given default at the issuer level. U.S. Treasury securities, government guaranteed securities, and other securities issued by GSEs are either explicitly or implicitly guaranteed by the US government, are highly rated by rating agencies and have a long history of no credit losses. There was no ACL on the Company’s AFS debt securities at December 31, 2020. Prior to the adoption of CECL on January 1, 2020, investment securities in an unrealized loss position were evaluated quarterly for OTTI. Truist considered such factors as the length of time and the extent to which the fair value was below amortized cost, long term expectations and recent experience regarding principal and interest payments, Truist's intent to sell and whether it was more-likely-than-not that the Company would be required to sell those securities before the anticipated recovery of the amortized cost basis. The credit component of an OTTI loss was recognized in earnings and the non-credit component was recognized in AOCI, net of tax, in situations where Truist did not intend to sell the security and it was more-likely-than-not that Truist would have been required to sell the security prior to recovery. Subsequent to recognition of OTTI, an increase in expected cash flows was recognized as a yield adjustment over the remaining expected life of the security based on an evaluation of the nature of the increase. |
Equity Securities | Equity Securities Equity securities that are not classified as trading assets or liabilities are recorded in Other assets on the Company’s Consolidated Balance Sheets. Equity securities with readily determinable fair values are considered marketable and measured at fair value, with changes in the fair value recognized as a component of Noninterest income in the Company’s Consolidated Statements of Income. Marketable equity securities include mutual fund investments and other publicly traded equity securities. Dividends received from marketable equity securities and FHLB stock are recognized within Interest income in the Consolidated Statements of Income. Equity securities that are not accounted for under the equity method and that do not have readily determinable fair values are considered non-marketable and are accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Any adjustments to the carrying value of these non-marketable equity securities are recognized in Other noninterest income in the Company’s Consolidated Statements of Income. Non-marketable equity securities include FHLB stock and other equity investments. For additional information on the Company’s equity securities, see "Note 18. Fair Value Disclosures." |
LHFS | LHFS LHFS includes residential and commercial mortgage loans that management intends to sell in the secondary market and other loans that management has an active plan to sell. The Company elects to apply fair value accounting to substantially all residential and commercial mortgage loans that are originated with the intent to be sold in the secondary market. Direct loan origination fees associated with these loans are recorded as Residential mortgage and Commercial real estate related income. The majority of direct origination costs are recorded in Personnel expense. The fair value of these loans is derived from observable current market prices when available and includes loan servicing value. When observable market prices are not available, the Company uses judgment and estimates fair value using internal models that reflect assumptions consistent with those that would be used by a market participant in estimating fair value. First lien residential mortgage LHFS are transferred in conjunction with GNMA and GSE securitization transactions, whereby the loans are exchanged for cash or securities that are readily redeemable for cash with servicing rights retained. Net gains/losses on the sale of residential mortgage LHFS are recorded at inception of the associated interest rate lock commitments and reflect the change in value of the loans resulting from changes in interest rates from the time the Company enters into interest rate lock commitments with borrowers until the loans are sold, adjusted for pull through rates and excluding hedge transactions initiated to mitigate this market risk. Commercial mortgage LHFS are sold to FNMA and FHLMC and the Company also issues and sells GNMA commercial MBS backed by FHA insured loans. The loans and securities are exchanged for cash with servicing rights retained. Gains and losses on sales of residential and commercial mortgage loans are included in Residential mortgage and Commercial real estate income, respectively. LHFS also includes specifically identified loans where management has committed to a formal plan of sale and the loans are available for immediate sale. These loans are generally recorded at LOCOM. Origination fees and costs for such loans are capitalized in the basis of the loan and are included in the calculation of realized gains and losses upon sale. Adjustments to reflect unrealized losses resulting from changes in fair value and realized gains and losses upon ultimate sale of the loans are classified as Noninterest income in the Consolidated Statements of Income. The fair value of these loans is estimated using observable market prices when available, but may also incorporate consideration of other unobservable inputs such as indicative bids, broker price opinions or other information derived from internal or external data sources. In certain circumstances, the Company may transfer certain loans from HFI to LHFS. At the time of transfer, any credit losses are subject to charge-off in accordance with the Company’s policy and are recorded as a reduction in the ALLL. Any subsequent losses, including those related to interest rate or liquidity-related valuation adjustments are recorded as a component of Noninterest income in the Consolidated Statements of Income. For additional information on the Company’s LHFS, see "Note 18. Fair Value Disclosures." |
Loans and Leases | Loans and Leases The Company's accounting methods for loans differ depending on whether the loans are originated or purchased, and if purchased, whether or not the loans reflect credit deterioration since the date of origination such that at the date of acquisition there is more than an insignificant deterioration in credit. Originated Loans and Leases Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances net of any unearned income, charge-offs, and unamortized fees and costs. Interest and fees on loans and leases includes certain loan fees and deferred direct costs associated with the lending process recognized over the contractual lives of the loans using the effective interest method. Purchased Loans Purchased loans are recorded at their fair value at the acquisition date. Fair values for purchased loans are based on a discounted cash flow methodology that considers credit loss expectations, market interest rates and other market factors such as liquidity from the perspective of a market participant. Loans are grouped together according to similar characteristics and treated in the aggregate when applying various valuation techniques. The probability of default, loss given default and prepayment assumptions are the key factors driving credit losses which are embedded into the estimated cash flows. These assumptions are informed by internal data on loan characteristics, historical loss experience, and current and forecasted economic conditions. The interest and liquidity component of the estimate are determined by discounting interest and principal cash flows through the expected life of the underlying loans. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity. The discount rates do not include a factor for credit losses as that has been included as a reduction to the estimated cash flows. Beginning January 1, 2020, purchased loans are evaluated upon acquisition and classified as either PCD, which indicates that the loan reflects more-than-insignificant deterioration in credit quality since origination, or non-PCD. Truist considers a variety of factors in connection with the identification of more-than-insignificant deterioration in credit quality, including but not limited to risk grades, delinquency, nonperforming status, previous troubled debt restructurings or bankruptcies and other qualitative factors that indicate deterioration in credit quality since origination. For PCD loans, the initial estimate of expected credit losses is determined using the same methodology as other loans held for investment and recognized as an adjustment to the acquisition price of the asset; thus, the sum of the loans’ purchase price and initial ALLL estimate represents the initial amortized cost basis. The difference between the initial amortized cost basis and the par value is the non-credit discount or premium. For non-PCD loans, the difference between the fair value and the par value is considered the fair value mark. The initial ALLL for non-PCD loans is recorded with a corresponding charge to the Provision for credit losses in the Consolidated Statements of Income. Subsequent changes in the ALLL related to PCD and non-PCD loans are recognized in the Provision for credit losses. The non-credit discount or premium related to PCD loans and the fair value mark on non-PCD loans are amortized or accreted to Interest and fees on loans and leases over the contractual life of the loans using the effective interest method for amortizing loans, and using a straight-line approach for interest-only loans and loans associated with a revolving commitment. In the event of prepayment, unamortized discounts or premiums are recognized in Interest and fees on loans and leases. |
Troubled Debt Restructuring | TDRs Modifications to a borrower's debt agreement are considered TDRs if a concession is granted for economic or legal reasons related to a borrower's financial difficulties that otherwise would not be considered. TDRs are undertaken to improve the likelihood of recovery on the loan and may take the form of modifications that result in the stated interest rate of the loan being lower than the current market rate for new debt with similar risk, other modifications to the structure of the loan that fall outside of normal underwriting policies and procedures, or in certain limited circumstances, forgiveness of principal or interest. A restructuring that results in only a delay in payments that is insignificant is not considered an economic concession. In accordance with the CARES Act, Truist implemented loan modification programs in response to the COVID-19 pandemic in order to provide borrowers with flexibility with respect to repayment terms. Payment relief assistance provided by Truist includes forbearance, deferrals, extension and re-aging programs, along with certain other modification strategies. The Company adopted certain provisions of the CARES Act and other regulatory guidance that provide relief from the requirement to apply TDR accounting to (1) certain modifications of federally backed mortgages upon request from the borrower, and (2) certain modifications of other non-federally backed mortgages for borrowers impacted by the COVID-19 pandemic that were less than 30 days past due at December 31, 2019. In other circumstances the Company applied TDR relief provided by the regulatory agencies for borrowers who received short-term modifications as a result of COVID-19 and were less than 30 days past due at the time that the Company's COVID-19 loan modification program was implemented, or for federally backed loans, the modification was mandated by the government in response to COVID-19. TDRs can be classified as performing or nonperforming, depending on the individual facts and circumstances of the borrower and an evaluation as to whether the borrower will be able to repay the loan based on the modified terms. In circumstances where the TDR involves charging off a portion of the loan balance, Truist classifies these TDRs as nonperforming. The decision to maintain a commercial TDR on performing status is based on a current, well documented credit evaluation of the borrower's financial condition and prospects for repayment under the modified terms. This evaluation includes consideration of the borrower's current capacity to pay, which among other things may include a review of the borrower's current financial statements, an analysis of cash flow available to pay debt obligations, and an evaluation of secondary sources of payment from the borrower and any guarantors. This evaluation also includes an evaluation of the borrower's current willingness to pay, which may include a review of past payment history, an evaluation of the borrower's willingness to provide information on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. The credit evaluation may also include review of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest and trends indicating improving profitability and collectability of receivables. The evaluation of mortgage and other consumer loans includes an evaluation of the client's debt-to-income ratio, credit report, property value and certain other client-specific factors that impact the clients’ ability to make timely principal and interest payments on the loan. TDR classification may be removed due to the passage of time if the loan: (i) did not include a forgiveness of principal or interest, (ii) has performed in accordance with the modified terms (generally a minimum of six months), (iii) was reported as a TDR over a year-end reporting period, and (iv) reflected an interest rate on the modified loan that was no less than a market rate at the date of modification. TDR classification may also be removed for an accruing loan upon the occurrence of a subsequent non-concessionary modification granted at market terms and within current underwriting guidelines. In connection with consumer TDRs, a NPL will be returned to accruing status when (i) the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments, (ii) management concludes that all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment, and (iii) there is a sustained period of repayment performance, generally a minimum of six months. |
NPAs | NPAs NPAs include NPLs and foreclosed property. Foreclosed property consists of real estate and other assets acquired as a result of clients' loan defaults. Truist's policies for placing loans on nonperforming status conform to guidelines prescribed by bank regulatory authorities. Truist classifies loans and leases as past due when the payment of principal and interest based upon contractual terms is greater than 30 days delinquent or if one payment is past due. Payment deferrals granted as a result of the COVID-19 pandemic do not result in a loan becoming past due. The following table summarizes the delinquency thresholds that are a factor used in evaluating nonperforming classification and the timing of charge-off evaluations: (number of days) Placed on Nonperforming (1) Evaluated for Charge-off Commercial: Commercial and industrial 90 (2) 90 (2) CRE 90 (2) 90 (2) Commercial construction 90 (2) 90 (2) Lease financing 90 (2) 90 (2) Consumer: Residential mortgage (3) 90 to 180 90 to 210 Residential home equity and direct (3) 90 to 120 90 to 180 Indirect auto (3) 90 120 Indirect other (3) 90 to 120 120 to 180 Student (4) (5) NA 120 to 180 Credit card (6) NA 90 to 180 (1) Loans may be returned to performing status when (i) the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments, (ii) management concludes that all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment, and (iii) there is a sustained period of repayment performance, generally a minimum of six months. (2) Or when it is probable that principal or interest is not fully collectible, whichever occurs first. (3) Depends on product type, loss mitigation status, status of the government guaranty, if applicable, and certain other product-specific factors. (4) Student loans are not placed in nonperforming status, which reflects consideration of governmental guarantees or accelerated charge-off policies related to certain non-guaranteed portfolios. (5) Claims related to government guaranteed loans may be filed once the loans reach 270 days past due. The non-guaranteed balance, which ranges from 2-3%, is charged off once the claim proceeds related to the guaranteed portion have been received. (6) Credit cards are generally not placed on nonperforming status, but are fully charged off at specified delinquency dates consistent with regulatory guidelines. When commercial loans are placed on nonperforming status, a charge-off is recorded, as applicable, to decrease the carrying value of such loans to the estimated recoverable amount. Consumer and credit card loans are subject to charge-off at a specified delinquency date consistent with regulatory guidelines. Certain past due loans may remain on performing status if management determines that it does not have concern over the collectability of principal and interest. Generally, when loans are placed on nonperforming status, accrued interest receivable is reversed against interest income in the current period and amortization of deferred loan fees and expenses for originated loans, and fair value marks for purchased loans, is suspended. For commercial loans and certain consumer loans, payments received for interest and lending fees thereafter are applied as a reduction to the remaining principal balance as long as concern exists as to the ultimate collection of the principal. Interest income on nonperforming loans is recognized after the principal has been reduced to zero. If and when borrowers demonstrate the ability to repay a loan classified as nonperforming in accordance with its contractual terms, the loan may be returned to performing status upon meeting all regulatory, accounting and internal policy requirements. Accrued interest is included in Other assets in the Consolidated Balance Sheets. Accrued interest receivable balances are not considered in connection with the ACL estimation process, as such amounts are generally reversed against interest income when the loan is placed in nonperforming status. The Company has deferred interest income recognition on the estimated uncollectible portion of accrued interest on loans that were provided payment relief assistance in connection with the CARES Act. Assets acquired as a result of foreclosure are initially recorded at fair value less estimated cost to sell and subsequently carried at the lower of cost or net realizable value. Net realizable value equals fair value less estimated selling costs. Any excess of cost over net realizable value at the time of foreclosure is charged to the ALLL. NPAs are subject to periodic revaluations of the collateral underlying impaired loans and foreclosed real estate. The periodic revaluations are generally based on the appraised value of the property and may include additional liquidity adjustments based upon the expected retention period. Truist's policies require that valuations be updated at least annually and that upon foreclosure, the valuation must not be more than six months old, otherwise an update is required. Any subsequent changes in value as well as gains or losses from the disposition of these assets are recognized in Other noninterest expense in the Consolidated Statements of Income. For additional information on the Company’s loan and lease activities, see "Note 5. Loans and ACL." |
ACL | ACL The ACL includes the ALLL and RUFC. The ACL represents management's best estimate of expected future credit losses related to loan and lease portfolios and off-balance sheet lending commitments at the balance sheet date. The ALLL is a valuation account that is deducted from or added to the loans’ amortized cost basis to present the net amount expected to be collected on loans. The entire amount of the ACL is available to absorb losses on any loan category or lending-related commitment. Loan or lease balances deemed to be uncollectible are charged off against the ALLL. Expected recoveries of amounts previously charged off are incorporated into the ALLL estimate, with such amounts capped at the aggregate of amounts previously charged off. Changes to the ACL are made by charges to the Provision for credit losses, which is reflected in the Consolidated Statements of Income. The RUFC is recorded in Other liabilities on the Consolidated Balance Sheets. Portfolio segments represent the level at which Truist develops and documents a systematic methodology to determine its ACL. Truist’s loan and lease portfolio consists of three portfolio segments; commercial, consumer and credit card. The expected credit loss models are generally developed one level below the portfolio segment level. In certain instances, loans are further disaggregated by similar risk characteristics, such as business sector, client type, funding type, type of collateral, whether loan payments are interest-only and whether interest rates are fixed or variable. Larger loans and leases that do not share similar risk characteristics or that are considered collateral-dependent are individually evaluated. For these loans, the ALLL is determined through review of data specific to the borrower and related collateral, if any. Such estimates may be based on current loss forecasts, an evaluation of the fair value of the underlying collateral or in certain circumstances the present value of expected cash flows discounted at the loan's effective interest as described further below. The commercial portfolio segment models use a risk rating approach to estimate the ALLL. Truist may also consider specific environmental, social, and governance considerations in the risk rating methodology for commercial loans. The consumer and credit card models use a delinquency-based approach to estimate the ALLL. In addition to these quantitatively calculated components, the ALLL includes qualitatively calculated components. Truist maintains a collectively calculated ALLL for loans with similar risk characteristics. The collectively calculated ALLL is estimated using relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable forecasts. Truist maintains quantitative models to forecast expected credit losses. The credit loss forecasting models use portfolio balances, macroeconomic forecast data, portfolio composition and loan attributes as the primary inputs. Loss estimates are informed by historical loss experience adjusted for macroeconomic forecast data and current and expected portfolio risk characteristics. Expected losses are estimated through contractual maturity unless the borrower has a right to renew that is not cancellable or it is reasonably expected that the loan will be modified as a TDR. The Scenario Committee provides guidance, selection, and approval for enterprise-sanctioned macroeconomic forecast data, including the macroeconomic forecast data for use in the ACL process. Forecasted economic conditions are developed using third party macroeconomic forecast data across scenarios adjusted based on management’s expectations over a reasonable and supportable forecast period of two years. Assumptions revert to long term historic averages gradually over a one year period. Macroeconomic forecast data used in estimating the expected losses vary by loan portfolio and include employment factors, estimated collateral values and market indicators as described by portfolio segment below. A qualitative allowance which incorporates management’s judgement is also included in the estimation of expected future loan and lease losses, including qualitative adjustments in circumstances where the model output is inconsistent with management’s expectations with respect to expected credit losses. This allowance is used to adjust for limitations in modeled results related to the current economic conditions, and capture risks in the portfolio such as considerations with respect to the impact of current economic events, the outcomes of which are uncertain. These events may include, but are not limited to, legislation that may directly or indirectly affect the banking industry and economic conditions affecting specific geographical areas and industries in which Truist conducts business. The methodology for determining the RUFC is inherently similar to that used to determine the funded component of the ALLL and is measured over the period there is a contractual obligation to extend credit that is not unconditionally cancellable. The RUFC is adjusted for factors specific to binding commitments, including the probability of funding and exposure at default. The ACL is monitored by the ACL Committee. The ACL Committee approves the ACL estimate and may recommend adjustments where necessary based on portfolio performance and other items that may impact credit risk. Prior to the adoption of CECL on January 1, 2020, the ACL represented management’s estimate of probable credit losses incurred in the loan and lease portfolios and off-balance sheet lending commitments at the balance sheet date. The estimation of the allowance for credit losses prior to 2020 did not consider reasonable and supportable forecasts that could have affected the collectability of the reported amounts. The following provides a description of accounting policies, methodologies and credit quality indicators related to each of the portfolio segments: Commercial The majority of loans in the commercial lending portfolio are assigned risk ratings based on an assessment of conditions that affect the borrower's ability to meet contractual obligations under the loan agreement. This process includes reviewing borrowers' financial information, historical payment experience, credit documentation, public information, and other information specific to each borrower. Risk ratings are reviewed on an annual basis, or more frequently for many relationships based on the policy requirements regarding various risk characteristics. While this review is largely focused on the borrower's ability to repay the loan, Truist also considers the capacity and willingness of a loan's guarantors to support the loan as a secondary source of repayment. When a guarantor exhibits the documented capacity and willingness to support the loan, Truist may consider extending the loan maturity and/or temporarily deferring principal payments if the ultimate collection of both principal and interest is reasonably assured. In these cases, Truist may determine the loan is not impaired due to the documented capacity and willingness of the guarantor to repay the loan. Loans are considered impaired when the borrower (or guarantor in certain circumstances) does not have the cash flow capacity or willingness to service the debt according to contractual terms, or it does not appear reasonable to assume that the borrower will continue to pay according to the contractual agreement. The following table summarizes risk ratings that Truist uses to monitor credit quality in its commercial portfolio: Risk Rating Description Pass Loans not considered to be problem credits Special Mention Loans that have a potential weakness deserving management's close attention Substandard Loans for which a well-defined weakness has been identified that may put full collection of contractual cash flows at risk Nonperforming Loans for which full collection of principal and interest is not considered probable Loans are generally pooled one level below the portfolio segment for the collectively calculated ALLL based on factors such as business sector, project and property type, line of business, collateral, loan type, obligor exposure, and risk grade or score. Commercial loss forecasting models are expected loss frameworks that use macroeconomic forecast data across scenarios and current portfolio attributes as inputs. The models forecast probability of default, exposure at default and loss given default by correlating certain macroeconomic forecast data to historical experience. The primary macroeconomic drivers for the commercial portfolios include unemployment trends, U.S. real GDP, corporate credit spreads, rental rates and property values. Truist's policy is to review and individually evaluate the reserve for all nonperforming lending relationships and TDRs with an outstanding balance of $5 million or more, as such lending relationships do not typically share similar risk characteristics with others. Individually evaluated reserves are based on current forecasts, the present value of expected cash flows discounted at the loan's effective interest rate or the value of collateral, which is generally based on appraisals, recent sales of foreclosed properties and/or relevant property-specific market information. Truist has elected to measure expected credit losses on collateral-dependent loans based on the fair value of the collateral. Loans are considered collateral dependent when it is probable that Truist will be unable to collect principal and interest according to the contractual terms of the agreement and repayment is expected to be provided substantially by the sale or continued operation of the underlying collateral. Commercial loans are typically secured by real estate, business equipment, inventories and other types of collateral. Consumer and Credit Card The majority of the ALLL related to the consumer and credit card lending portfolios is calculated on a collective basis. Loans are pooled one level below the portfolio segment for the collectively calculated ALLL based on factors such as collateral, loan type, line of business and sales channel. Consumer portfolio models are expected loss frameworks that use macroeconomic forecast data across scenarios and current portfolio attributes as inputs. The models forecast probability of default, exposure at default and loss given default by correlating certain macroeconomic forecast data to historical experience. The primary macroeconomic drivers for the consumer portfolios include unemployment trends, the primary 30-year mortgage rate, home price indices and used car prices. Residential mortgages and revolving home equity lines of credit are generally collateralized by one-to-four-family residential real estate, typically have loan-to-collateral value ratios of 80% or less at origination, and are made to borrowers in good credit standing. The indirect auto and indirect other portfolios include secured indirect installment loans to consumers for the purchase of new and used automobiles, boats and recreational vehicles. The student loan portfolio is composed of government guaranteed student loans and certain private student loans. The government guarantee mitigates substantially all of the risk related to principal and interest repayment for this component of the portfolio. Private student loans were originated with a credit enhancement from a third-party which partially mitigates the Company’s credit exposure. During 2020, the Company discontinued new origination of private student loans. The credit card portfolio and other arrangements within the indirect other and residential home equity and direct portfolios are generally unsecured and are actively managed. Truist uses performing status to monitor credit quality in its consumer and credit card portfolios. Delinquency status is the primary factor considered in determining whether a loan should be classified as nonperforming. The ALLL for loans classified as a TDR is based on analyses capturing the expected credit losses and the impact of the concession over the remaining life of the asset. |
Premises and Equipment | Premises and Equipment Premises, equipment, finance leases and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed primarily using the straight-line method over the estimated useful lives of the related assets and is recorded within the corresponding Noninterest expense categories on the Consolidated Statements of Income. Leasehold improvements are amortized using the straight-line method over the shorter of the improvements’ estimated useful lives or the lease term. An impairment loss on a long-lived asset or asset group, including premises and equipment and a ROU asset, is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value based on the undiscounted cash flows. |
Lessee, Leases | Lessee operating and finance leases Truist has operating and finance leases for data centers, corporate offices, branches, retail centers, and certain equipment, and 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 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. Operating lease costs are recorded in Net occupancy expense or Equipment expense based on the underlying asset. Truist 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. 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. The impairment policy for a ROU asset is discussed within the Premises and Equipment section above. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Life insurance policies on certain current and former directors, officers and teammates, for which Truist is the owner and beneficiary are stated at the cash surrender value within Other assets in the Consolidated Balance Sheets. Changes in cash surrender value and proceeds from insurance benefits are recorded in Income from bank-owned life insurance in the Consolidated Statements of Income. |
Income Taxes | Income Taxes The Company’s provision for income taxes is based on income and expense reported for financial statement purposes after adjustments for permanent differences such as interest income from lending to tax-exempt entities, tax credits, and amortization expense related to qualified affordable housing investments. In computing the provision for income taxes, the Company evaluates the technical merits of its income tax positions based on current legislative, judicial, and regulatory guidance. The deferral method of accounting is used on investments that generate investment tax credits, such that the investment tax credits are recognized as a reduction to the related investment. Additionally, the Company recognizes all excess tax benefits and deficiencies on employee share-based payments as a component of the Provision for income taxes in the Consolidated Statements of Income. These tax effects, generally determined upon the exercise of stock options or vesting of restricted stock, are treated as discrete items in the period in which they occur. The provision for income taxes does not reflect the tax effects of unrealized gains and losses and other income and expenses recorded in AOCI. For additional information related to the Company's unrealized gains and losses, see "Note 13. AOCI." DTAs and DTLs result from differences between the timing of the recognition of assets and liabilities for financial reporting purposes and for income tax purposes. These deferred assets and liabilities are measured using the enacted tax rates and laws that are expected to apply in the periods in which the DTAs or DTLs are expected to be realized. Subsequent changes in the tax laws require adjustment to these deferred assets and liabilities with the cumulative effect included in the Provision for income taxes for the period in which the change is enacted. A valuation allowance is recognized for a DTA, if based on the weight of available evidence, it is more likely than not that some portion or all of the DTA will not be realized. |
Derivative Financial Instruments | Derivative Financial Instruments The Company records derivative contracts at fair value in Other assets and Other liabilities on the Consolidated Balance Sheets. Accounting for changes in the fair value of a derivative depends upon whether or not it has been designated in a formal, qualifying hedging relationship. Changes in the fair value of derivatives not designated in a hedging relationship are recognized within Noninterest income in the Consolidated Statements of Income. This includes derivatives that the Company enters into in a dealer capacity to facilitate client transactions and as a risk management tool to economically hedge certain identified risks associated with assets carried at fair value such as MSRs, along with certain interest rate lock commitments on residential mortgage and commercial loans that are a normal part of the Company’s operations. The Company also evaluates contracts, such as brokered deposits and debt, to determine whether any embedded derivatives are required to be bifurcated and separately accounted for as freestanding derivatives. Certain derivatives used as risk management tools are designated as accounting hedges and are used to mitigate the Company’s exposure to changes in interest rates or other identified market risks. The Company prepares written hedge documentation for all derivatives which are designated as hedges of (i) changes in the fair value of a recognized asset or liability (fair value hedge) attributable to a specified risk or (ii) a forecasted transaction, such as the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness, along with support for management’s assertion that the hedge will be highly effective. Methodologies related to hedge effectiveness include (i) statistical regression analysis of changes in the cash flows of the actual derivative and hypothetical derivatives, or (ii) statistical regression analysis of changes in the fair values of the actual derivative and the hedged item. For designated hedging relationships, the Company generally performs subsequent assessments of hedge effectiveness using a qualitative approach. Below is a summary of the cash flow and fair value hedge programs utilized by Truist: Cash Flow Hedges Fair Value Hedges Risk exposure Variability in cash flows of interest payments on floating rate loans, overnight funding and various LIBOR and successor rate funding instruments. Changes in value on fixed rate long-term debt, FHLB advances, loans and AFS securities due to changes in interest rates. 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 due to changes in the contractually specified interest rate. Convert the fixed rate paid or received to a floating rate, primarily through the use of swaps. 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. The amount reclassified to earnings is recorded in the same line item as the earnings effect of the hedged item. 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 asset or liability being hedged. 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 designated hedged period or the maturity date of the instrument, and cash flows from terminated hedges are reported in the same category as the cash flows from the hedged item. 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 recognized in earnings immediately. Not applicable Derivatives expose the Company to risk that the counterparty to the derivative contract does not perform as expected. The Company manages its exposures to counterparty credit risk associated with derivatives by entering into transactions with counterparties with defined exposure limits based on their credit quality and in accordance with established policies and procedures. All counterparties are reviewed regularly as part of the Company’s credit risk management practices and appropriate action is taken to adjust the exposure limits to certain counterparties as necessary. The Company’s derivative transactions are generally governed by ISDA agreements or other legally enforceable industry standard master netting agreements. In certain cases and depending on the nature of the underlying derivative transactions, bilateral collateral agreements are also utilized. The Company and its subsidiaries are subject to OTC derivative clearing requirements, which require certain derivatives to be cleared through central clearing houses. These clearing houses require the Company to post initial and variation margin to mitigate the risk of non-payment, the latter of which is received or paid daily based on the net asset or liability of the contracts. The Company applies settlement to market treatment for the cash collateralizing derivative contracts with certain centrally cleared counterparties. Derivative balances with these counterparties are considered settled by the collateral, and the implementation of the settlement to market treatment was applied based on the effective date of rulebook changes made by the applicable counterparties. When the Company has more than one outstanding derivative transaction with a single counterparty, and there exists a legal right of setoff with that counterparty, the Company considers its exposure to the counterparty to be the net fair value of its derivative positions with that counterparty. If the net fair value is positive, then the corresponding asset value also reflects cash collateral held. The Company offsets derivative transactions with a single counterparty as well as any cash collateral paid to and received from that counterparty for derivative contracts that are subject to ISDA or other legally enforceable netting arrangements and meet accounting guidance for offsetting treatment. For additional information on the Company’s derivative activities, see "Note 18. Fair Value Disclosures" and "Note 19. Derivative Financial Instruments." |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business combinations. Truist allocates goodwill to the reporting unit(s) that are expected to benefit from the synergies of the business combination. The goodwill of each reporting unit is reviewed for impairment on an annual basis as of October 1 or more often if events or circumstances indicate that it is more-likely-than-not that the fair value of a reporting unit is below its carrying value. If, after assessing all relevant events or circumstances, Truist concludes that it is more-likely-than-not that the fair value of a reporting unit is below its carrying value, then an impairment test is required. Truist may also elect to bypass the qualitative assessment and proceed directly to the impairment test. In the quantitative test, the fair value of a reporting unit is compared to the carrying value of the reporting unit. If the fair value of a reporting unit is greater than the carrying value, then there is no impairment. If the fair value is less than the carrying value, then an impairment loss is recorded for the amount that the carrying value exceeds the fair value, not to exceed the total amount of goodwill assigned to the reporting unit. The quantitative impairment test estimates the fair value of the reporting units using the income approach and the market approach. The income approach utilizes a discounted cash flow analysis. The market approach utilizes comparable public company information, key valuation multiples and considers a market control premium associated with cost synergies and other cash flow benefits that arise from obtaining control over a reporting unit. The inputs and assumptions specific to each reporting unit are incorporated in the valuations, including projections of future cash flows, discount rates and applicable valuation multiples based on comparable public company information. Truist also assesses the reasonableness of the aggregate estimated fair value of the reporting units by comparison to its market capitalization over a reasonable period of time, including consideration of historic bank control premiums and the current market. CDI and other intangible assets include premiums paid for acquisitions of core deposits and other identifiable intangible assets. Intangible assets other than goodwill, which are determined to have finite lives, are amortized over their useful lives, based upon the estimated economic benefits received. For additional information on the Company’s activities related to goodwill and other intangibles, see "Note 7. Goodwill and Other Intangible Assets." |
MSRs | MSRs Truist has two classes of MSRs for which it separately manages the economic risks: residential and commercial. Both classes of MSRs are accounted for primarily at fair value with changes in fair value recorded in Residential mortgage income and Commercial real estate related income on the Consolidated Statements of Income. The fair value of servicing rights is impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually-specified servicing fees, servicing costs, and underlying portfolio characteristics. These risks are hedged with various derivative instruments that are intended to mitigate the income statement effect to changes in fair value. The underlying assumptions and estimated values are corroborated by values received from independent third parties and comparisons to market transactions. For additional information on the Company’s servicing rights, see "Note 8. Loan Servicing." |
Fair Value Measurement, Policy | Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Company uses various valuation techniques and assumptions when estimating fair value. The Company classifies inputs used in valuation techniques within the fair value hierarchy discussed in "Note 18. Fair Value Disclosures." When measuring assets and liabilities at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Assets and liabilities that are required to be measured at fair value on a recurring basis include trading securities, derivative instruments, AFS securities, and certain other equity securities. Assets and liabilities that the Company has elected to measure at fair value on a recurring basis include trading loans, loans originated to be sold and classified as LHFS, and residential and commercial MSRs. Other assets and liabilities are measured at fair value on a non-recurring basis, such as when assets are evaluated for impairment, the basis of accounting is lower of cost or market, or for disclosure purposes. Examples of these non-recurring fair value measurements include certain LHFS and loans and leases held for investment, OREO, certain cost or equity method investments, and intangible and long-lived assets. For additional information on the Company’s valuation of assets and liabilities held at fair value, see "Note 18. Fair Value Disclosures." |
Equity-Based Compensation | Equity-Based CompensationTruist maintains various equity-based compensation plans that provide for the granting of RSAs, RSUs and PSUs to selected teammates and directors. Truist values share-based awards at the grant date fair value and recognizes the expense over the requisite service period taking into account retirement eligibility. Compensation expense is recognized in Personnel expense in the Consolidated Statements of Income. Forfeitures are recognized as they occur. For additional information on the Company’s stock-based compensation plans, see "Note 15. Benefit Plans." |
Pension and Postretirement Benefit Obligations | Pension and Postretirement Benefit Obligations Truist offers various pension plans and postretirement benefit plans to teammates. Calculation of the obligations and related expenses under these plans requires the use of actuarial valuation methods and assumptions. The discount rate assumption used to measure the pension and postretirement benefit obligations is set by reference to a high quality corporate bond yield curve and the individual characteristics of the plan such as projected cash flow patterns and payment durations. The expected long-term rate of return on assets is based on the expected returns for each major asset class in which the plan invests, adjusted for the weight of each asset class in the target mix. |
Revenue Recognition | Revenue Recognition In the ordinary course of business, the Company recognizes two primary types of revenue in its Consolidated Statements of Income, Interest income and Noninterest income. The Company’s principal source of revenue is interest income from loans and securities, which is recognized on an accrual basis using the effective interest method. For information on the Company’s policies for recognizing interest income on loans and securities, see the "Loans and Leases," "LHFS," "Trading Activities," and "Investment Securities" sections within this Note. Noninterest income includes revenue from various types of transactions and services provided to clients. The Company recognizes revenue from contracts with customers as performance obligations are satisfied. Performance obligations are typically satisfied in one year or less. Truist elected the practical expedient to expense the incremental costs of obtaining a contract when incurred when the amortization period is one year or less. As of December 31, 2020 and 2019, remaining performance obligations consisted primarily of insurance and investment banking services for contracts with an original expected length of one year or less. Insurance income Insurance commissions are received on the sale of insurance products as agent or broker, and revenue is recognized at a point in time upon the placement date of the insurance policies, representing the Company’s related performance obligations. Payment is normally received within the policy period. In addition to placement, Truist also provides insurance policy related risk management services. The Company’s execution of these risk management services represents its performance obligations. Revenue is recognized over time as these services are provided. Performance-based commissions are recognized when received or earlier when, upon consideration of past results and current conditions, the revenue is deemed not probable of reversal. Insurance commissions are included in the IH operating segment. Refer to "Note 21. Operating Segments" for information on segment results. Transaction and service-based revenues Transaction and service-based revenues include Service charges on deposits, Wealth management income, Card and payment related fees, and Investment banking income. Revenue is recognized at a point in time when the transactions occur or over time as services are performed over primarily monthly or quarterly periods. Payment is typically received in the period the transactions occur or, in some cases, within 90 days of the service period. Fees may be fixed or, where applicable, based on a percentage of transaction size or managed assets. These revenues, and their relationship to the Company’s operating segments, are further described by type below. Refer to "Note 21. Operating Segments" for information on segment results. Service charges on deposits include account maintenance, cash and treasury management, wire transfers, ATM, overdraft and other deposit-related fees. The Company’s execution of the services related to these fees represents its performance obligations. Each of these performance obligations are either satisfied over time or at a point in time as the services are provided to the client. The Company is the principal when rendering these services. Payments for services provided are either withdrawn from client accounts as services are rendered or in the billing period following the completion of the service. The transaction price for each of these fees is based on the Company’s predetermined fee schedules. Service charges on deposits are recognized in the CB&W and C&CB operating segments. Wealth management income includes trust and investment management income, retail investment and brokerage services, and investment advisory and other specialty wealth management fees. The Company’s execution of these services represents its related performance obligations. The Company generally recognizes trust and investment management and advisory revenue over time as services are rendered based on either a percentage of the market value of the assets under management or advisement, or fixed based on the services provided to the client. Fees are generally swept from the client’s account either in advance of or in arrears based on the prior period’s asset balances under management or advisement. The Company also offers selling and distribution services and earns commissions through the sale of annuity and mutual fund products, acting as agent in these transactions and recognizing revenue at a point in time when the client enters into an agreement with the product carrier. The Company may also receive trailing commissions and 12b-1 fees related to mutual fund and annuity products and recognizes this revenue in the period earned. Retail trade execution commissions are earned and recognized on the trade date with payment on the settlement date. Wealth management income is included in the CB&W operating segment. Card and payment related fees include interchange fees from credit and debit cards, merchant acquirer revenue and other card related services. Interchange fees are earned by the Company each time a request for payment is initiated by a client at a merchant for which the Company transfers the funds on behalf of the client. Interchange rates are set by the payment network and are based on purchase volumes and other factors. Interchange fees are received daily and recognized at a point in time when the card transaction is processed, which represents the Company’s related performance obligation. The Company is considered an agent of the client and incurs costs with the payment network to facilitate the interchange with the merchant; therefore, the related payment network expense is recognized as a reduction of card fees. Truist also offers rewards and/or rebates to its client based on card usage. The costs associated with these programs are recognized as a reduction of card fees. Card and payment related fees are recognized in the CB&W and C&CB operating segments. Investment banking and trading income includes securities underwriting fees, advisory fees, loan syndication fees, and trade execution services revenue. Underwriting fees are earned on the trade date when the Company, as a member of an underwriting syndicate, purchases the securities from the issuer and sells the securities to third party investors. Each member of the syndicate is responsible for selling its portion of the underwriting and is liable for the proportionate costs of the underwriting; therefore, the Company’s portion of underwriting revenue and expense is presented gross within noninterest income and noninterest expense. The transaction price is based on a percentage of the total transaction amount and payments are settled shortly after the trade date. Fees for merger and acquisition advisory services, including various activities such as business valuation, identification of potential targets or acquirers, and the issuance of fairness opinions, are generally earned and recognized by the Company when performance obligations are satisfied. The Company’s execution of the advisory services related to these fees represents its performance obligations. The Company is the principal when rendering these services. The transaction price is based on contractually specified terms agreed upon with the client for each advisory service. Loan syndication fees are typically recognized at the closing of a loan syndication transaction. Revenue related to corporate trade execution services is earned and recognized on the trade date with payment on the settlement date. Investment banking and trading income is included in the C&CB operating segment. |
Earnings Per Share | Earnings Per Share Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period, plus common share equivalents calculated for stock options, warrants, and restricted stock outstanding using the treasury stock method. For additional information on the Company’s EPS, see "Note 20. Computation of EPS." |
Related Party Transaction | Related Party Transactions The Company periodically enters into transactions with certain of its executive officers, directors, affiliates, trusts, and/or other related parties in its ordinary course of business. The Company is required to disclose material related party transactions, other than certain compensation and other arrangements entered into in the normal course of business. Information related to the Company’s relationships with VIEs and employee benefit plan arrangements is included in the Notes to the Consolidated Financial Statements in this Form 10-K. |
Subsequent Events, Policy | Subsequent Events The Company evaluated events that occurred between December 31, 2020 and the date the accompanying financial statements were issued, and there were no material events, other than those already discussed, that would require recognition in the Company’s Consolidated Financial Statements or disclosure in the accompanying Notes. |
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 Credit Losses / 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 on an amortized cost basis are presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit deteriorated loans receive an allowance for expected credit losses. Any credit impairment on AFS debt securities for which the fair value is less than cost is recorded through an allowance for expected credit losses. The standard also requires expanded disclosures related to credit losses and asset quality. Truist adopted this standard using the modified retrospective approach. Simplifying the Test for Goodwill Impairment / Simplifies the subsequent measurement of goodwill, by eliminating the second step from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The standard requires an entity to recognize an impairment charge for the amount by which a reporting unit's carrying amount exceeds its fair value, with the loss limited to the total amount of goodwill allocated to that reporting unit. The standard must be applied on a prospective basis. The standard does not currently have an impact on the Company’s consolidated financial statements; however, if subsequent to adoption, the carrying amount of a reporting unit exceeds its respective fair value, the Company would be required to recognize an impairment charge for the amount that the carrying value exceeds the fair value up to the amount of the goodwill assigned to the reporting unit. Reference Rate Reform / Provides optional expedients and exceptions regarding the accounting for contract modifications, hedging relationships and other transactions affected by reference rate reform. The standard was issued March 12, 2020, is effective upon issuance and can be applied through December 31, 2022. The company elected to apply certain of the practical expedients related to derivative contract modifications and discounting transition beginning in the fourth quarter of 2020. This election did not have a material impact on the Company's consolidated financial statements. Certain other practical expedients not yet elected by the Company may simplify the accounting for reference rate reform, if elected in the future. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Loans and Leases Past Due Policies | The following table summarizes the delinquency thresholds that are a factor used in evaluating nonperforming classification and the timing of charge-off evaluations: (number of days) Placed on Nonperforming (1) Evaluated for Charge-off Commercial: Commercial and industrial 90 (2) 90 (2) CRE 90 (2) 90 (2) Commercial construction 90 (2) 90 (2) Lease financing 90 (2) 90 (2) Consumer: Residential mortgage (3) 90 to 180 90 to 210 Residential home equity and direct (3) 90 to 120 90 to 180 Indirect auto (3) 90 120 Indirect other (3) 90 to 120 120 to 180 Student (4) (5) NA 120 to 180 Credit card (6) NA 90 to 180 (1) Loans may be returned to performing status when (i) the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments, (ii) management concludes that all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment, and (iii) there is a sustained period of repayment performance, generally a minimum of six months. (2) Or when it is probable that principal or interest is not fully collectible, whichever occurs first. (3) Depends on product type, loss mitigation status, status of the government guaranty, if applicable, and certain other product-specific factors. (4) Student loans are not placed in nonperforming status, which reflects consideration of governmental guarantees or accelerated charge-off policies related to certain non-guaranteed portfolios. (5) Claims related to government guaranteed loans may be filed once the loans reach 270 days past due. The non-guaranteed balance, which ranges from 2-3%, is charged off once the claim proceeds related to the guaranteed portion have been received. (6) Credit cards are generally not placed on nonperforming status, but are fully charged off at specified delinquency dates consistent with regulatory guidelines. |
Summary of Commercial Loans and Leases Risk Ratings | The following table summarizes risk ratings that Truist uses to monitor credit quality in its commercial portfolio: Risk Rating Description Pass Loans not considered to be problem credits Special Mention Loans that have a potential weakness deserving management's close attention Substandard Loans for which a well-defined weakness has been identified that may put full collection of contractual cash flows at risk Nonperforming Loans for which full collection of principal and interest is not considered probable |
Summary of Derivative Strategies | Below is a summary of the cash flow and fair value hedge programs utilized by Truist: Cash Flow Hedges Fair Value Hedges Risk exposure Variability in cash flows of interest payments on floating rate loans, overnight funding and various LIBOR and successor rate funding instruments. Changes in value on fixed rate long-term debt, FHLB advances, loans and AFS securities due to changes in interest rates. 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 due to changes in the contractually specified interest rate. Convert the fixed rate paid or received to a floating rate, primarily through the use of swaps. 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. The amount reclassified to earnings is recorded in the same line item as the earnings effect of the hedged item. 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 asset or liability being hedged. 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 designated hedged period or the maturity date of the instrument, and cash flows from terminated hedges are reported in the same category as the cash flows from the hedged item. 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 recognized in earnings immediately. Not applicable |
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 Credit Losses / 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 on an amortized cost basis are presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit deteriorated loans receive an allowance for expected credit losses. Any credit impairment on AFS debt securities for which the fair value is less than cost is recorded through an allowance for expected credit losses. The standard also requires expanded disclosures related to credit losses and asset quality. Truist adopted this standard using the modified retrospective approach. Simplifying the Test for Goodwill Impairment / Simplifies the subsequent measurement of goodwill, by eliminating the second step from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The standard requires an entity to recognize an impairment charge for the amount by which a reporting unit's carrying amount exceeds its fair value, with the loss limited to the total amount of goodwill allocated to that reporting unit. The standard must be applied on a prospective basis. The standard does not currently have an impact on the Company’s consolidated financial statements; however, if subsequent to adoption, the carrying amount of a reporting unit exceeds its respective fair value, the Company would be required to recognize an impairment charge for the amount that the carrying value exceeds the fair value up to the amount of the goodwill assigned to the reporting unit. Reference Rate Reform / Provides optional expedients and exceptions regarding the accounting for contract modifications, hedging relationships and other transactions affected by reference rate reform. The standard was issued March 12, 2020, is effective upon issuance and can be applied through December 31, 2022. The company elected to apply certain of the practical expedients related to derivative contract modifications and discounting transition beginning in the fourth quarter of 2020. This election did not have a material impact on the Company's consolidated financial statements. Certain other practical expedients not yet elected by the Company may simplify the accounting for reference rate reform, if elected in the future. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the allocation of Merger consideration to the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of SunTrust as of December 6, 2019: (Dollars in millions) UPB Fair Value Fair value of Merger consideration $ 33,547 Assets Cash and due from banks 1,621 Interest-bearing deposits with banks 4,668 Securities borrowed or purchased under resale agreements 1,191 Trading assets 5,710 AFS securities 30,986 LHFS 3,752 Loans and leases: Commercial and industrial $ 68,687 67,101 CRE 9,509 9,357 Commercial Construction 2,136 2,096 Commercial Leases 3,967 3,743 Mortgage Loans 28,191 27,180 Home Equity and Direct Lending 15,917 15,628 Indirect Auto 12,373 12,203 Indirect Other 4,678 4,445 Student Lending 6,867 6,657 Credit Card 2,518 2,497 PCI 3,652 3,126 Total loans and leases $ 158,495 154,033 Premises and equipment 1,496 CDI and other intangible assets 2,734 MSRs 1,605 Other assets 13,646 Total assets 221,442 Liabilities and Equity Deposits (170,633) Short-term borrowings (6,837) Long-term debt (19,484) Other liabilities (5,011) Total liabilities (201,965) Noncontrolling interest (108) Less: Net assets 19,369 Goodwill $ 14,178 |
Securities Financing Activiti_2
Securities Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Offsetting [Abstract] | |
Schedule of Resale Agreements | The following table presents securities borrowed or purchased under resale agreements: December 31, 2020 2019 Securities purchased under resale agreements $ 1,158 $ 986 Securities borrowed 587 431 Total securities borrowed or purchased under resale agreements $ 1,745 $ 1,417 |
Schedule of Repurchase Agreements | The following table presents the Company’s related activity, by collateral type and remaining contractual maturity: December 31, 2020 2019 Overnight and Continuous Up to 30 days Total Overnight and Continuous Up to 30 days 30-90 days Total U.S. Treasury $ 305 $ 31 $ 336 $ 115 $ 35 $ — $ 150 GSE 45 9 54 87 37 — 124 Agency MBS - residential 442 6 448 928 41 100 1,069 Corporate and other debt securities 204 179 383 310 316 — 626 Total securities sold under agreements to repurchase $ 996 $ 225 $ 1,221 $ 1,440 $ 429 $ 100 $ 1,969 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of AFS Securities | The following tables summarize the Company's AFS securities: December 31, 2020 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 1,721 $ 25 $ — $ 1,746 GSE 1,840 77 — 1,917 Agency MBS - residential 111,589 1,975 23 113,541 Agency MBS - commercial 2,987 72 2 3,057 States and political subdivisions 447 47 1 493 Other 34 — — 34 Total AFS securities $ 118,618 $ 2,196 $ 26 $ 120,788 December 31, 2019 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 2,275 $ 7 $ 6 $ 2,276 GSE 1,847 34 — 1,881 Agency MBS - residential 67,983 411 158 68,236 Agency MBS - commercial 1,335 13 7 1,341 States and political subdivisions 557 34 6 585 Non-agency MBS 190 178 — 368 Other 40 — — 40 Total AFS securities $ 74,227 $ 677 $ 177 $ 74,727 |
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 may have the right to prepay their obligations with or without penalties. Amortized Cost Fair Value December 31, 2020 Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years Total Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years Total AFS securities: U.S. Treasury $ 253 $ 1,468 $ — $ — $ 1,721 $ 254 $ 1,492 $ — $ — $ 1,746 GSE 282 1,487 — 71 1,840 288 1,553 — 76 1,917 Agency MBS - residential — 1 427 111,161 111,589 — 1 441 113,099 113,541 Agency MBS - commercial — 1 9 2,977 2,987 — 2 10 3,045 3,057 States and political subdivisions 29 128 100 190 447 29 132 115 217 493 Other 1 7 — 26 34 1 7 — 26 34 Total AFS securities $ 565 $ 3,092 $ 536 $ 114,425 $ 118,618 $ 572 $ 3,187 $ 566 $ 116,463 $ 120,788 |
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 December 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 17 $ — $ — $ — $ 17 $ — Agency MBS - residential 4,028 21 203 2 4,231 23 Agency MBS - commercial 463 2 4 — 467 2 States and political subdivisions 20 — 32 1 52 1 Other 6 — — — 6 — Total $ 4,534 $ 23 $ 239 $ 3 $ 4,773 $ 26 Less than 12 months 12 months or more Total December 31, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 702 $ 6 $ — $ — $ 702 $ 6 GSE 6 — — — 6 — Agency MBS - residential 20,328 145 1,326 13 21,654 158 Agency MBS - commercial 545 5 124 2 669 7 States and political subdivisions 65 1 144 5 209 6 Total $ 21,646 $ 157 $ 1,594 $ 20 $ 23,240 $ 177 |
Schedule of Realized Gain (Loss) | The following table presents gross securities gains and losses recognized in earnings: Year Ended December 31, 2020 2019 2018 Gross realized gains $ 404 $ 47 $ 4 Gross realized losses (2) (163) (1) Securities gains (losses), net $ 402 $ (116) $ 3 |
Loans and ACL (Tables)
Loans and ACL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Aging Analysis of Past Due Loans and Leases | The following tables present loans and leases HFI by aging category. Government guaranteed loans are not placed on nonaccrual status regardless of delinquency because collection of principal and interest is reasonably assured. The past due status of loans that received a deferral under the CARES Act is generally frozen during the deferral period. In certain limited circumstances, accommodation programs result in the delinquency status being reset to current. Accruing December 31, 2020 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 137,726 $ 83 $ 13 $ 532 $ 138,354 CRE 26,506 14 — 75 26,595 Commercial construction 6,472 5 — 14 6,491 Lease financing 5,206 6 — 28 5,240 Consumer: Residential mortgage 45,333 782 841 316 47,272 Residential home equity and direct 25,751 98 10 205 26,064 Indirect auto 25,498 495 2 155 26,150 Indirect other 11,102 68 2 5 11,177 Student 5,823 618 1,111 — 7,552 Credit card 4,759 51 29 — 4,839 Total $ 294,176 $ 2,220 $ 2,008 $ 1,330 $ 299,734 Accruing December 31, 2019 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 129,873 $ 94 $ 1 $ 212 $ 130,180 CRE 26,817 5 — 10 26,832 Commercial construction 6,204 1 — — 6,205 Lease financing 6,112 2 — 8 6,122 Consumer: Residential mortgage 50,975 498 543 55 52,071 Residential home equity and direct 26,846 122 9 67 27,044 Indirect auto 23,771 560 11 100 24,442 Indirect other 11,011 85 2 2 11,100 Student 5,905 650 188 — 6,743 Credit card 5,541 56 22 — 5,619 PCI 2,126 140 1,218 — 3,484 Total $ 295,181 $ 2,213 $ 1,994 $ 454 $ 299,842 |
Schedule of Carrying Amounts by Risk Rating | The following table presents the amortized cost basis of loans by origination year and credit quality indicator: December 31, 2020 Amortized Cost Basis by Origination Year Revolving Credit Loans Converted to Term Other (1) 2020 2019 2018 2017 2016 Prior Total Commercial: Commercial and industrial: Pass $ 34,858 $ 18,881 $ 13,312 $ 7,713 $ 5,174 $ 8,888 $ 42,780 $ 231 $ (579) $ 131,258 Special mention 471 434 343 98 120 157 1,808 5 (1) 3,435 Substandard 461 445 339 121 144 256 1,353 12 (2) 3,129 Nonperforming 38 92 48 29 25 61 233 4 2 532 Total 35,828 19,852 14,042 7,961 5,463 9,362 46,174 252 (580) 138,354 CRE: Pass 4,563 6,600 4,427 2,752 1,473 2,096 617 — (69) 22,459 Special mention 171 599 585 116 77 141 — — — 1,689 Substandard 410 776 438 281 182 280 5 — — 2,372 Nonperforming 1 15 1 9 6 43 — — — 75 Total 5,145 7,990 5,451 3,158 1,738 2,560 622 — (69) 26,595 Commercial construction: Pass 1,052 2,141 1,889 232 27 110 534 — 2 5,987 Special mention — 108 64 1 — — 2 — — 175 Substandard 70 106 73 59 6 1 — — — 315 Nonperforming 1 3 — 7 — — — 3 — 14 Total 1,123 2,358 2,026 299 33 111 536 3 2 6,491 Lease financing: Pass 1,377 1,139 775 746 241 760 — — 27 5,065 Special mention 1 39 20 5 — 7 — — — 72 Substandard — 34 3 4 3 31 — — — 75 Nonperforming 2 5 3 9 4 5 — — — 28 Total 1,380 1,217 801 764 248 803 — — 27 5,240 Consumer: Residential mortgage: Performing 8,197 6,729 3,735 4,374 5,424 18,333 — — 164 46,956 Nonperforming 3 13 16 13 14 257 — — — 316 Total 8,200 6,742 3,751 4,387 5,438 18,590 — — 164 47,272 Residential home equity and direct: Performing 4,513 3,126 1,416 481 214 557 13,886 1,619 47 25,859 Nonperforming 1 4 2 1 1 7 87 101 1 205 Total 4,514 3,130 1,418 482 215 564 13,973 1,720 48 26,064 Indirect auto: Performing 10,270 7,436 4,015 2,401 1,220 506 — — 147 25,995 Nonperforming 13 50 44 27 15 12 — — (6) 155 Total 10,283 7,486 4,059 2,428 1,235 518 — — 141 26,150 Indirect other: Performing 4,433 3,019 1,706 826 431 718 — — 39 11,172 Nonperforming 1 1 1 — — 2 — — — 5 Total 4,434 3,020 1,707 826 431 720 — — 39 11,177 Student: Performing 22 110 95 81 64 7,185 — — (5) 7,552 Credit card — — — — — — 4,802 37 — 4,839 Total $ 70,929 $ 51,905 $ 33,350 $ 20,386 $ 14,865 $ 40,413 $ 66,107 $ 2,012 $ (233) $ 299,734 (1) Includes certain deferred fees and costs, unapplied payments and other adjustments. The following table presents the carrying amount of loans by risk rating and performing status. Student loans are excluded as there is nominal risk of credit loss due to government guarantees or other credit enhancements. PCI loans were excluded because their related ALLL is determined by loan pool performance, and credit card loans were excluded as these loans are charged-off rather than reclassified as nonperforming: 2019 December 31, Commercial & Industrial CRE Commercial Construction Lease Financing Commercial: Pass $ 127,229 $ 26,393 $ 6,037 $ 6,039 Special mention 1,264 145 37 19 Substandard 1,475 284 131 56 Nonperforming 212 10 — 8 Total $ 130,180 $ 26,832 $ 6,205 $ 6,122 2019 December 31, Residential Mortgage Residential home equity and direct Indirect auto Indirect Other Consumer: Performing $ 52,016 $ 26,977 $ 24,342 $ 11,098 Nonperforming 55 67 100 2 Total $ 52,071 $ 27,044 $ 24,442 $ 11,100 |
Summary of Allowance for Credit Losses | The following tables present activity in the ACL: (Dollars in millions) Balance at Jan 1, 2018 Charge-Offs Recoveries Provision (Benefit) Other Balance at Dec 31, 2018 Commercial: Commercial and industrial $ 522 $ (92) $ 39 $ 77 $ — $ 546 CRE 118 (10) 3 31 — 142 Commercial construction 42 (3) 5 4 — 48 Lease financing 9 (4) 1 5 — 11 Consumer: Residential mortgage 209 (21) 2 42 — 232 Residential home equity and direct 113 (79) 25 45 — 104 Indirect auto 296 (342) 49 295 — 298 Indirect other 52 (49) 13 42 — 58 Credit card 101 (76) 17 68 — 110 PCI 28 (2) — (17) — 9 ALLL 1,490 (678) 154 592 — 1,558 RUFC 119 — — (26) — 93 ACL $ 1,609 $ (678) $ 154 $ 566 $ — $ 1,651 (Dollars in millions) Balance at Jan 1, 2019 Charge-Offs Recoveries Provision (Benefit) Other (1) Balance at Dec 31, 2019 Commercial: Commercial and industrial $ 546 $ (90) $ 25 $ 79 $ — $ 560 CRE 142 (33) 5 36 — 150 Commercial construction 48 — 3 1 — 52 Lease financing 11 (11) 1 9 — 10 Consumer: Residential mortgage 232 (21) 2 (37) — 176 Residential home equity and direct 104 (93) 30 66 — 107 Indirect auto 298 (370) 52 324 — 304 Indirect other 58 (62) 17 47 — 60 Credit card 110 (109) 20 101 — 122 PCI 9 — — (1) — 8 ALLL 1,558 (789) 155 625 — 1,549 RUFC 93 — — (10) 257 340 ACL $ 1,651 $ (789) $ 155 $ 615 $ 257 $ 1,889 (Dollars in millions) Balance at Jan 1, 2020 (2) Charge-Offs Recoveries Provision (Benefit) Other (3) Balance at Dec 31, 2020 Commercial: Commercial and industrial $ 560 $ (358) $ 92 $ 958 $ 904 $ 2,156 CRE 150 (78) 5 414 82 573 Commercial construction 52 (30) 11 32 16 81 Lease financing 10 (54) 4 (6) 94 48 Consumer: Residential mortgage 176 (56) 10 (27) 265 368 Residential home equity and direct 107 (231) 66 318 454 714 Indirect auto 304 (378) 87 367 818 1,198 Indirect other 60 (60) 23 35 150 208 Student — (23) 1 23 129 130 Credit card 122 (182) 32 212 175 359 PCI 8 — — — (8) — ALLL 1,549 (1,450) 331 2,326 3,079 5,835 RUFC 340 — — 9 15 364 ACL $ 1,889 $ (1,450) $ 331 $ 2,335 $ 3,094 $ 6,199 (1) Includes amounts assumed in the Merger. (2) Balance is prior to the adoption of CECL. (3) Includes the adoption of CECL, the ALLL for PCD acquisitions and other activity. |
Summary of purchased student loans with credit deterioration at acquisition | PCD Loan Activity For PCD loans, the initial estimate of expected credit losses is recognized in the ALLL on the date of acquisition using the same methodology as other loans held for investment. The following table provides a summary of purchased student loans with credit deterioration at acquisition: Year Ended December 31, 2020 Par value $ 745 ALLL at acquisition (10) Non-credit premium (discount) (1) Purchase price $ 734 |
Financing Receivable, Nonperforming | Nonperforming and Impaired Loans The following table provides a summary of nonperforming loans, excluding LHFS. Interest income recognized on nonperforming loans HFI was $32 million for the year ended December 31, 2020. Recorded Investment December 31, 2020 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 82 $ 450 CRE 63 12 Commercial construction — 14 Lease financing — 28 Consumer: Residential mortgage 4 312 Residential home equity and direct 2 203 Indirect auto 1 154 Indirect other — 5 Total $ 152 $ 1,178 |
Schedule of Nonperforming Loans / Loans Individually Evaluated for Impairment | The following table includes certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for impairment. This table excludes guaranteed student loans and guaranteed residential mortgages for which there was nominal risk of principal loss due to the government guarantee or other credit enhancements. UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized As of / For The Year Ended December 31, 2019 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 339 $ 124 $ 167 $ 20 $ 298 $ 6 CRE 29 3 26 2 71 1 Commercial construction 39 — 38 7 5 — Lease financing 18 7 2 — 2 — Consumer: Residential mortgage 650 92 527 42 799 34 Residential home equity and direct 76 24 37 5 65 3 Indirect auto 367 9 349 64 334 53 Indirect other 5 — 5 1 4 — Credit card 31 — 31 12 28 1 Total $ 1,554 $ 259 $ 1,182 $ 153 $ 1,606 $ 98 |
Schedule of Performing and Nonperforming TDRs | TDRs The following table presents a summary of TDRs: December 31, 2020 2019 Performing TDRs: Commercial: Commercial and industrial $ 78 $ 47 CRE 47 6 Commercial construction — 37 Lease financing 60 — Consumer: Residential mortgage 648 470 Residential home equity and direct 88 51 Indirect auto 392 333 Indirect other 6 5 Student 5 — Credit card 37 31 Total performing TDRs 1,361 980 Nonperforming TDRs 164 82 Total TDRs $ 1,525 $ 1,062 ALLL attributable to TDRs $ 260 $ 132 |
Summary Of Primary Reason Loan Modifications Were Classified as TDRs | The primary reason loan modifications were classified as TDRs is summarized in the tables below. New TDR balances represent the recorded investment at the end of the quarter in which the modification was made. The prior quarter balance represents recorded investment at the beginning 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. December 31, 2020 Type of Modification Prior Quarter Loan Balance ALLL at Period End Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 49 $ 93 $ 173 $ 14 CRE 39 13 45 6 Commercial construction — — 1 — Lease financing 1 70 71 4 Consumer: Residential mortgage 374 112 493 21 Residential home equity and direct 37 34 70 2 Indirect auto 129 85 223 26 Indirect other 3 3 5 — Student — 6 6 — Credit card 29 — 28 10 Re-modification of previously designated TDRs 41 22 December 31, 2019 Type of Modification Prior Quarter Loan Balance ALLL at Period End Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 56 $ 11 $ 61 $ 8 CRE 1 1 4 — Commercial construction 36 — 36 7 Lease financing — — — — Consumer: Residential mortgage 224 27 254 19 Residential home equity and direct 8 3 9 1 Indirect auto 209 8 226 44 Indirect other 4 — 4 — Student — — — — Credit card 24 — 18 9 Re-modification of previously designated TDRs 53 23 December 31, 2018 Type of Modification Prior Quarter Loan Balance ALLL at Period End Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 74 $ 62 $ 126 $ 8 CRE 31 2 26 1 Commercial construction 1 1 2 — Lease financing — — — — Consumer: Residential mortgage 250 30 280 22 Residential home equity and direct 8 2 6 1 Indirect auto 191 4 183 39 Indirect other 4 — 3 1 Student — — — — Credit card 18 — 18 8 Re-modification of previously designated TDRs 120 15 |
Selected Information About Nonperforming Assets | The following table presents a summary of nonperforming assets and residential mortgage loans in the process of foreclosure. December 31, 2020 2019 Nonperforming loans and leases HFI (1) $ 1,330 $ 454 Nonperforming LHFS 5 107 Foreclosed real estate 20 82 Other foreclosed property 32 41 Total nonperforming assets $ 1,387 $ 684 Residential mortgage loans in the process of foreclosure $ 140 $ 409 |
Selected Information About Loans And Leases Unearned | The following table presents additional information about loans and leases: December 31, 2020 2019 Unearned income, discounts and net deferred loan fees and costs, excluding PCI $ 2,219 $ 4,069 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises and equipment is presented in the accompanying table: December 31, Estimated Useful Life 2020 2019 Land and land improvements Indefinite $ 968 $ 1,005 Buildings and building improvements 40 years 2,724 2,253 Furniture and equipment 3 - 15 1,509 1,396 Leasehold improvements 978 995 Construction in progress 179 196 Finance leases 72 152 Total 6,430 5,997 Less: Accumulated depreciation (2,560) (2,285) Net premises and equipment $ 3,870 $ 3,712 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amounts of Goodwill Attributable to Operating Segments | (Dollars in millions) CB&W C&CB IH Total Goodwill, January 1, 2018 $ 3,907 $ 3,938 $ 1,773 $ 9,618 Mergers and acquisitions — — 201 201 Adjustments and other (1) — — (1) Goodwill, December 31, 2018 3,906 3,938 1,974 9,818 Mergers and acquisitions 10,134 4,187 21 14,342 Adjustments and other — — (6) (6) Goodwill, December 31, 2019 14,040 8,125 1,989 24,154 Mergers and acquisitions — — 450 450 Adjustments and other 1,801 (1,958) — (157) Goodwill, December 31, 2020 $ 15,841 $ 6,167 $ 2,439 $ 24,447 |
Identifiable Intangible Assets Subject to Amortization | The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets: Weighted Average Remaining Amortization Period 2020 2019 December 31, Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount CDI 8.8 years $ 2,600 $ (852) $ 1,748 $ 2,474 $ (365) $ 2,109 Other, primarily client relationship intangibles 12.3 years 2,217 (981) 1,236 1,808 (775) 1,033 Total $ 4,817 $ (1,833) $ 2,984 $ 4,282 $ (1,140) $ 3,142 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated amortization expense of identifiable intangibles for the next five years and thereafter is presented as follows: Year Ended December 31, 2021 2022 2023 2024 2025 Thereafter Estimated amortization expense $ 584 $ 471 $ 392 $ 330 $ 273 $ 934 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Summary of Residential Mortgage Banking Activities | The following tables summarize residential mortgage servicing activities: December 31, 2020 2019 2018 UPB of residential mortgage loan servicing portfolio $ 239,034 $ 279,558 $ 118,605 UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate 188,341 219,347 87,270 Mortgage loans sold with recourse 328 371 419 Maximum recourse exposure from mortgage loans sold with recourse liability 201 212 223 Indemnification, recourse and repurchase reserves 93 44 24 As of / For the Year Ended December 31, 2020 2019 2018 UPB of residential mortgage loans sold from LHFS $ 48,366 $ 16,646 $ 10,094 Pre-tax gains recognized on mortgage loans sold and held for sale 1,034 122 116 Servicing fees recognized from mortgage loans serviced for others 630 265 256 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others 0.32 % 0.31 % 0.28 % Weighted average interest rate on mortgage loans serviced for others 3.84 4.04 4.04 |
Analysis of Activity in Residential MSRs | The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value: Year Ended December 31, 2020 2019 2018 Residential MSRs, carrying value, January 1 $ 2,371 $ 957 914 Merger — 1,506 — Additions 653 171 116 Change in fair value due to changes in valuation inputs or assumptions: Prepayment speeds (572) (131) (12) OAS 75 32 57 Servicing costs — — 22 Realization of expected net servicing cash flows, passage of time and other (749) (164) (140) Residential MSRs, carrying value, December 31 $ 1,778 $ 2,371 $ 957 |
Residential MSRs Sensitivity | The sensitivity of the fair value of the Company's residential MSRs to changes in key assumptions is presented in the following table: 2020 2019 December 31, Range Weighted Average Range Weighted Average Min Max Min Max Prepayment speed 12.8 % 30.8 % 15.4 % 8.4 % 18.6 % 9.6 % Effect on fair value of a 10% increase $ (89) $ (102) Effect on fair value of a 20% increase (171) (195) OAS 3.5 % 13.7 % 7.3 % 4.0 % 13.5 % 6.7 % Effect on fair value of a 10% increase $ (45) $ (54) Effect on fair value of a 20% increase (88) (106) Composition of loans serviced for others: Fixed-rate residential mortgage loans 98.8 % 98.5 % Adjustable-rate residential mortgage loans 1.2 1.5 Total 100.0 % 100.0 % Weighted average life 4.8 years 5.4 years |
Summary of Commercial Mortgage Banking Activities | The following table summarizes commercial mortgage servicing activities for the periods presented: December 31, 2020 2019 UPB of CRE mortgages serviced for others $ 36,670 $ 70,404 CRE mortgages serviced for others covered by recourse provisions 9,019 8,676 Maximum recourse exposure from CRE mortgages sold with recourse liability 2,624 2,479 Recorded reserves related to recourse exposure 18 13 CRE mortgages originated during the year-to-date period 6,739 8,062 Commercial MSRs at fair value 245 247 |
Other Assets and Liabilites (Ta
Other Assets and Liabilites (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The following tables present additional information on leases, and excludes assets related to the lease financing businesses: December 31, 2020 Operating Leases Finance Leases ROU assets $ 1,333 $ 36 Maturities of lease liabilities: 2021 $ 361 $ 10 2022 366 11 2023 311 7 2024 258 5 2025 210 4 Thereafter 573 10 Total lease payments 2,079 47 Less: imputed interest 183 5 Total lease liabilities $ 1,896 $ 42 Weighted average remaining term 6.9 years 6.3 years Weighted average discount rate 2.4 % 4.8 % Year Ended December 31, 2020 2019 Operating lease costs $ 360 $ 209 |
Schedule of Assets Held Under Operating Leases and Related Activities | The following table presents a summary of assets under operating leases and activity related to assets under operating leases. This table excludes subleases on assets included in premises and equipment. December 31, 2020 2019 Assets held under operating leases (1) $ 2,144 $ 2,236 Accumulated depreciation (517) (391) Net $ 1,627 $ 1,845 (1) Includes certain land parcels subject to operating leases that have indefinite lives. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Summary of Deposits | The composition of deposits is presented in the following table: December 31, 2020 2019 Noninterest-bearing deposits $ 127,629 $ 92,405 Interest-bearing deposits: Interest checking 105,269 85,492 Money market and savings 126,238 120,934 Time deposits 21,941 35,896 Total deposits $ 381,077 $ 334,727 Time deposits greater than $250,000 $ 3,296 $ 9,362 |
Time Deposit Maturities | The following table presents time deposits maturities: Year Ended December 31, 2021 2022 2023 2024 2025 Thereafter Future time deposit maturities $ 17,438 $ 2,987 $ 873 $ 310 $ 283 $ 50 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The following table presents a summary of short-term borrowings: December 31, 2020 2019 Federal funds purchased $ 79 $ 259 Securities sold under agreements to repurchase 1,221 1,969 FHLB advances 2,649 13,480 Collateral in excess of derivative exposures 385 682 Master notes 621 493 Other short-term borrowings 1,137 1,335 Total short-term borrowings $ 6,092 $ 18,218 |
Schedule of Long-Term Debt, Interest Rates and Maturity Dates | The following table presents a summary of long-term debt: 2020 2019 December 31, Stated Rate Effective Rate (1) Carrying Amount Carrying Amount Maturity Min Max Truist Financial Corporation: Fixed rate senior notes 2021 to 2030 1.13 % 6.00 % 2.52 % $ 15,984 $ 14,431 Floating rate senior notes 2021 2022 0.43 0.88 0.64 900 1,749 Fixed rate subordinated notes (2) 2022 2029 3.88 6.00 3.78 1,283 1,227 Capital notes 2027 2028 0.87 1.21 1.69 615 611 Structured notes (3) 2021 2026 108 112 Truist Bank: Fixed rate senior notes 2021 2025 1.25 4.05 2.10 11,907 11,560 Floating rate senior notes 2022 2037 0.80 0.83 0.70 1,567 1,554 Fixed rate subordinated notes (2) 2025 2030 2.25 3.80 3.03 5,142 3,872 FHLB advances 2021 2034 — 5.36 5.32 878 4,141 Other long-term debt (4) 1,014 1,133 Nonbank subsidiaries: Other long-term debt (5) 199 949 Total long-term debt $ 39,597 $ 41,339 (1) Includes the impact of debt issuance costs and purchase accounting, and excludes hedge accounting impacts. (2) 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. (3) Consist of notes with various terms that include fixed or floating rate interest, or returns that are linked to an equity index. (4) Includes finance leases, tax credit investments, and other. (5) Includes debt associated with structured real estate leases. |
Schedule of Future Maturities of Long-term Debt | The following table presents future debt maturities: Year Ended December 31, 2021 2022 2023 2024 2025 Thereafter Future debt maturities (1) $ 5,373 $ 9,236 $ 5,139 $ 5,309 $ 5,797 $ 8,748 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Cash Dividends Declared per Share | The following table presents the dividends declared per share of common stock: Year Ended December 31, 2020 2019 2018 Cash dividends declared per share $ 1.80 $ 1.71 $ 1.56 |
Summary of Non-Cumulative Perpetual Preferred Stock | The following table presents a summary of the non-cumulative perpetual preferred stock as of December 31, 2020: Preferred Stock Issue Issuance Date Earliest Redemption Date Liquidation Amount Carrying Amount Dividend Rate Dividend Payments Series F 10/31/2012 11/1/2017 $ 450 $ 437 5.200 % Quarterly Series G 5/1/2013 6/1/2018 500 486 5.200 Quarterly Series H 3/9/2016 6/1/2021 465 451 5.625 Quarterly Series I 12/6/2019 (1) 12/15/2024 173 168 4.000 (2) Quarterly Series J 12/6/2019 (1) 12/15/2024 103 92 4.000 (3) Quarterly Series L 12/6/2019 (1) 12/15/2024 750 766 5.050 (4) Semi-annually (9) Series M 12/6/2019 (1) 12/15/2027 500 516 5.125 (5) Semi-annually (10) Series N 7/29/2019 9/1/2024 1,700 1,683 4.800 (6) Semi-annually Series O 5/27/2020 6/1/2025 575 559 5.250 Quarterly Series P 6/1/2020 12/1/2025 1,000 992 4.950 (7) Semi-annually Series Q 6/19/2020 9/1/2030 1,000 992 5.100 (8) Semi-annually Series R 8/3/2020 9/1/2025 925 906 4.750 Quarterly Total $ 8,141 $ 8,048 (1) Converted security from previously issued SunTrust preferred stock. (2) Dividend rate is the greater of 4.00% or 3-month LIBOR plus 0.530%. (3) Dividend rate is the greater of 4.00% or 3-month LIBOR plus 0.645%. (4) Fixed dividend rate will reset on June 15, 2022, then dividend rate will be 3-month LIBOR plus 3.102%. (5) Fixed dividend rate will reset on December 15, 2027, then dividend rate will be 3-month LIBOR plus 2.786%. (6) Fixed 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%. (7) Fixed dividend rate will reset on December 1, 2025, and on each following fifth anniversary of the reset date to the five-year U.S. Treasury rate plus 4.605%. (8) Fixed dividend rate will reset on September 1, 2030, and on each following tenth anniversary of the reset date to the ten-year U.S. Treasury rate plus 4.349%. (9) Dividend payments become quarterly beginning on September 15, 2022. (10) Dividend payments become quarterly after dividend rate reset. |
AOCI (Tables)
AOCI (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 as well as unrealized gains and losses on cash flow hedges and AFS securities. 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 (217) 52 (159) (6) (330) Amounts reclassified from AOCI: Before tax 75 12 20 1 108 Tax effect 18 3 5 — 26 Amounts reclassified, net of tax 57 9 15 1 82 Total OCI, net of tax (160) 61 (144) (5) (248) AOCI balance, December 31, 2018 (1,164) (31) (500) (20) (1,715) OCI before reclassifications, net of tax (42) (89) 790 18 677 Amounts reclassified from AOCI: Before tax 111 25 119 1 256 Tax effect 27 6 29 — 62 Amounts reclassified, net of tax 84 19 90 1 194 Total OCI, net of tax 42 (70) 880 19 871 AOCI balance, December 31, 2019 (1,122) (101) 380 (1) (844) OCI before reclassifications, net of tax 190 1 1,298 2 1,491 Amounts reclassified from AOCI: Before tax 75 48 (32) — 91 Tax effect 18 12 (8) — 22 Amounts reclassified, net of tax 57 36 (24) — 69 Total OCI, net of tax 247 37 1,274 2 1,560 AOCI balance, December 31, 2020 $ (875) $ (64) $ 1,654 $ 1 $ 716 Primary income statement location of amounts reclassified from AOCI Other expense Net interest income Securities gains (losses) and Net interest income Net interest income |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The components of the income tax provision are as follows: Year Ended December 31, (Dollars in millions) 2020 2019 2018 Current expense: Federal $ 979 $ 357 $ 629 State 155 97 151 Total current expense 1,134 454 780 Deferred expense: Federal (131) 290 26 State (22) 38 (3) Total deferred expense (153) 328 23 Provision for income taxes $ 981 $ 782 $ 803 |
Schedule of Reconciliation Between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Income Tax Rate | A reconciliation of the provision for income taxes at the statutory federal income tax rate to the Company’s actual provision for income taxes and actual effective tax rate is presented in the following table: 2020 2019 2018 Year Ended December 31, Amount % of Income Before Taxes Amount % of Income Before Taxes Amount % of Income Before Taxes Federal income taxes at statutory rate $ 1,149 21.0 % $ 844 21.0 % $ 853 21.0 % Increase (decrease) in provision for income taxes as a result of: State income taxes, net of federal tax benefit 105 1.9 107 2.7 117 2.9 Income tax credits, net of amortization (178) (3.3) (86) (2.1) (57) (1.4) Tax-exempt interest (99) (1.8) (69) (1.8) (90) (2.2) Federal tax reform impact — — — — (27) (0.7) Other, net 4 0.1 (14) (0.3) 7 0.2 Provision for income taxes $ 981 17.9 $ 782 19.5 $ 803 19.8 |
Schedule of Deferred Tax Assets and Liabilities | Significant DTAs and DTLs, net of the federal impact for state taxes, are presented in the following table. December 31, (Dollars in millions) 2020 2019 DTAs: ALLL $ 1,376 $ 366 Employee compensation and benefits 698 721 Loans 369 753 Operating lease liability 469 225 Accruals and reserves 305 322 Federal and state NOLs and other carryforwards 149 156 Net unrealized losses in AOCI — 257 Other 57 77 Total gross DTAs 3,423 2,877 Valuation allowance (123) (130) Total DTAs net of valuation allowance 3,300 2,747 DTLs: Pension 1,299 1,167 Goodwill and other intangible assets 688 694 Equipment and auto leasing 599 932 MSRs 459 491 ROU assets 327 146 Net unrealized gains in AOCI 222 — Premises and equipment 147 162 Partnerships 84 23 Other 48 144 Total DTLs 3,873 3,759 Net DTL $ (573) $ (1,012) |
Summary of Income Tax Contingencies | The following table provides a rollforward of the Company's gross federal and state UTBs, excluding interest and penalties: December 31, 2020 2019 Balance, January 1 $ 127 $ 2 Increases in UTBs related to prior years 4 120 Decreases in UTBs related to prior years (1) — Increases in UTBs related to the current year 18 6 Decreases in UTBs related to settlements (13) (1) Decreases in UTBs related to lapse of the applicable statues of limitations (2) — Balance, December 31 $ 133 $ 127 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Year Ended December 31, (Dollars in millions) Location 2020 2019 2018 Net periodic pension cost: Service cost Personnel expense $ 518 $ 214 $ 238 Interest cost Other expense 313 233 201 Estimated return on plan assets Other expense (866) (480) (448) Net amortization and other Other expense 76 111 81 Net periodic benefit cost 41 78 72 Pre-tax amounts recognized in OCI: Net actuarial loss (gain) (244) 34 289 Net amortization (77) (110) (81) Net amount recognized in OCI (321) (76) 208 Total net periodic pension costs (income) recognized in total comprehensive income, pre-tax $ (280) $ 2 $ 280 Weighted average assumptions used to determine net periodic pension cost: Discount rate 3.45 % 4.43 % 3.79 % Expected long-term rate of return on plan assets 6.90 7.00 7.00 Assumed long-term rate of annual compensation increases 4.50 4.50 4.50 Weighted average assumptions used to determine net periodic pension cost for SunTrust plans prior to being combined: Discount rate NA 3.22 % NA Expected long-term rate of return on plan assets NA 6.90 NA |
Schedule of Changes in Projected Benefit Obligations | Activity in the projected benefit obligation is presented in the following table: Year Ended December 31, (Dollars in millions) Qualified Plan Nonqualified Plans 2020 2019 2020 2019 Projected benefit obligation, January 1 $ 8,819 $ 4,697 $ 557 $ 386 Service cost 479 199 39 15 Interest cost 294 216 19 17 Actuarial loss 985 1,042 68 79 Benefits paid (300) (135) (22) (13) Projected benefit obligation from Merger — 2,800 — 72 Special termination benefits — — — 1 Projected benefit obligation, December 31 $ 10,277 $ 8,819 $ 661 $ 557 Accumulated benefit obligation, December 31 $ 9,044 $ 7,859 $ 503 $ 432 Weighted average assumptions used to determine projected benefit obligations: Weighted average assumed discount rate 2.94 % 3.45 % 2.94 % 3.45 % Assumed rate of annual compensation increases (1) 3.50 4.50 3.50 4.50 Weighted average assumptions used to determine projected benefit obligations for SunTrust plans prior to being combined: Weighted average assumed discount rate NA 3.22 % NA 3.22 % (1) The assumed rate for qualified and nonqualified plans is 3.50% in 2021 and increases to 4.50% thereafter. |
Schedule of Changes in Fair Value of Plan Assets | Activity in plan assets is presented in the following table: Year Ended December 31, (Dollars in millions) Qualified Plan Nonqualified Plans 2020 2019 2020 2019 Fair value of plan assets, January 1 $ 12,398 $ 5,968 $ — $ — Actual return on plan assets 2,164 1,566 — — Employer contributions 373 1,696 22 13 Benefits paid (300) (135) (22) (13) Fair value of plan assets from Merger — 3,303 — — Fair value of plan assets, December 31 $ 14,635 $ 12,398 $ — $ — Funded status, December 31 $ 4,358 $ 3,579 $ (661) $ (557) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The following are the pre-tax amounts recognized in AOCI: Year Ended December 31, (Dollars in millions) Qualified Plan Nonqualified Plans 2020 2019 2020 2019 Prior service credit (cost) $ (90) $ (114) $ 77 $ 96 Net actuarial loss (858) (1,218) (263) (217) Net amount recognized $ (948) $ (1,332) $ (186) $ (121) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following table presents the amount expected to be amortized from AOCI into net periodic pension cost during 2021: (Dollars in millions) Qualified Plan Nonqualified Plans Net actuarial loss $ — $ (28) Prior service credit (cost) (25) 19 Net amount expected to be amortized $ (25) $ (9) |
Schedule of Expected Benefit Payments | The following table reflects the estimated benefit payments for the periods presented: (Dollars in millions) Qualified Plan Nonqualified Plans 2021 $ 305 $ 22 2022 324 23 2023 342 31 2024 360 26 2025 381 27 2026-2030 2,205 160 |
Schedule of Allocation of Plan Assets | The following table presents the fair values of the qualified pension plan assets by asset category: December 31, (Dollars in millions) Target Allocation 2020 2019 Min Max Total Level 1 Level 2 Total Level 1 Level 2 Cash and cash-equivalents $ 290 $ 290 $ — $ 295 $ 295 $ — U.S. equity securities (1) 30 % 50 % 6,587 3,531 3,056 5,336 3,629 1,707 International equity securities 11 18 1,614 360 1,254 1,752 328 1,424 Fixed income securities 35 53 5,368 11 5,357 4,629 11 4,618 Total $ 13,859 $ 4,192 $ 9,667 $ 12,012 $ 4,263 $ 7,749 (1) The plan may hold up to 10% of its assets in Truist common stock. |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable | The following table provides a summary of the equity-based compensation plans: December 31, 2020 Shares available for future grants (in thousands) 19,815 Vesting period, minimum 1.0 year Vesting period, maximum 5.0 years |
Summary of Selected Data Related to Equity-based Compensation Costs | The following table presents a summary of selected data related to equity-based compensation costs: As of / For the Year Ended December 31, (Dollars in millions) 2020 2019 2018 Equity-based compensation expense $ 353 $ 165 $ 141 Income tax benefit from equity-based compensation expense 84 38 34 Intrinsic value of options exercised, and RSUs and PSUs that vested during the year 412 216 260 Grant date fair value of equity-based awards that vested during the year 420 134 139 Unrecognized compensation cost related to equity-based awards 234 274 135 Weighted-average life over which compensation cost is expected to be recognized 2.3 years 2.3 years 2.4 years |
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, 2020 20,061 $ 46.25 Granted 7,692 47.33 Vested (8,883) 47.24 Forfeited (782) 51.22 Nonvested at December 31, 2020 18,088 47.93 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Contingencies | The following table summarizes certain tax credit and certain equity investments: December 31, Balance Sheet Location 2020 2019 Investments in affordable housing projects: Carrying amount Other assets $ 3,823 $ 3,684 Amount of future funding commitments included in carrying amount Other liabilities 1,057 1,271 Lending exposure NA 546 647 Renewable energy investments: Carrying amount Other assets 167 81 Amount of future funding commitments not included in carrying amount NA 76 246 Private equity and certain other equity method investments: Carrying amount Other assets 1,574 1,556 Amount of future funding commitments not included in carrying amount NA 471 331 |
Summary of Tax Credits and Amortization, Tax Credit Investment Activity | The following table presents a summary of tax credits and amortization associated with the Company's tax credit investment activity: Year Ended December 31, Income Statement Location 2020 2019 2018 Tax credits: Investments in affordable housing projects Provision for income taxes $ 454 $ 284 $ 262 Other community development investments Provision for income taxes 96 39 — Renewable energy investments NA 159 — — Amortization and other changes in carrying amount: Investments in affordable housing projects Provision for income taxes $ 455 $ 279 $ 260 Other community development investments Other noninterest income 81 28 — Renewable energy investments Other noninterest income 4 4 — |
Schedule of Off-Balance Sheet | The following is a summary of selected notional amounts of off-balance sheet financial instruments: December 31, 2020 2019 Commitments to extend, originate or purchase credit $ 186,731 $ 177,598 Residential mortgage loans sold with recourse 328 371 CRE mortgages serviced for others covered by recourse provisions 9,019 8,676 Letters of credit 5,066 5,181 |
Schedule of Pledged Assets | The following table provides the total carrying amount of pledged assets by asset type. December 31, 2020 2019 Pledged securities $ 24,974 $ 11,283 Pledged loans: FRB 75,615 30,238 FHLB 69,994 80,816 Unused borrowing capacity: FRB 52,831 21,169 FHLB 52,274 37,303 |
Regulatory Requirements and O_2
Regulatory Requirements and Other Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Summary Information Regarding Regulatory Capital | December 31, (Dollars in millions) 2020 2019 Ratio Amount Ratio Amount Truist Financial Corporation CET1 10.0 % $ 37,869 9.5 % $ 35,643 Tier 1 capital 12.1 45,915 10.8 40,743 Total capital 14.5 55,011 12.6 47,511 Leverage (1) 9.6 45,915 14.7 40,743 Supplementary leverage (2) 8.7 45,915 NA NA Truist Bank CET1 11.0 40,642 10.6 38,739 Tier 1 capital 11.0 40,642 10.6 38,739 Total capital 13.0 47,882 12.0 43,984 Leverage (1) 8.7 40,642 14.5 38,739 Supplementary leverage (2) 7.5 40,642 NA NA (1) The leverage ratio is calculated using end of period Tier 1 capital and quarterly average tangible assets. The timing of the Merger impacted the 4Q19 result. (2) Truist became subject to the supplementary leverage ratio as of January 1, 2020. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: December 31, 2020 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: Trading assets: U.S. Treasury $ 793 $ — $ 793 $ — $ — GSE 164 — 164 — — Agency MBS - residential 599 — 599 — — Agency MBS - commercial 21 — 21 — — States and political subdivisions 34 — 34 — — Corporate and other debt securities 545 — 545 — — Loans 1,586 — 1,586 — — Other 130 123 7 — — Total trading assets 3,872 123 3,749 — — AFS securities: U.S. Treasury 1,746 — 1,746 — — GSE 1,917 — 1,917 — — Agency MBS - residential 113,541 — 113,541 — — Agency MBS - commercial 3,057 — 3,057 — — States and political subdivisions 493 — 493 — — Other 34 — 34 — — Total AFS securities 120,788 — 120,788 — — LHFS at fair value 4,955 — 4,955 — — MSRs at fair value 2,023 — — 2,023 — Other assets: Derivative assets 3,837 752 4,903 186 (2,004) Equity securities 1,054 996 58 — — Total assets $ 136,529 $ 1,871 $ 134,453 $ 2,209 $ (2,004) Liabilities: Derivative liabilities $ 555 $ 386 $ 3,263 $ 14 $ (3,108) Securities sold short 1,115 3 1,112 — — Total liabilities $ 1,670 $ 389 $ 4,375 $ 14 $ (3,108) December 31, 2019 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: Trading assets: U.S. Treasury $ 227 $ — $ 227 $ — $ — GSE 296 — 296 — — Agency MBS - residential 497 — 497 — — Agency MBS - commercial 68 — 68 — — States and political subdivisions 82 — 82 — — Non-agency MBS 277 — 277 — — Corporate and other debt securities 1,204 — 1,204 — — Loans 2,948 — 2,948 — — Other 134 90 44 — — Total trading assets 5,733 90 5,643 — — AFS securities: U.S. Treasury 2,276 — 2,276 — — GSE 1,881 — 1,881 — — Agency MBS - residential 68,236 — 68,236 — — Agency MBS - commercial 1,341 — 1,341 — — States and political subdivisions 585 — 585 — — Non-agency MBS 368 — — 368 — Other 40 — 40 — — Total AFS securities 74,727 — 74,359 368 — LHFS 5,673 — 5,673 — — MSRs 2,618 — — 2,618 — Other assets: Derivative assets 2,053 606 3,620 34 (2,207) Equity securities 817 815 2 — — Private equity investments 440 — — 440 — Total assets $ 92,061 $ 1,511 $ 89,297 $ 3,460 $ (2,207) Liabilities: Derivative liabilities $ 366 $ 204 $ 3,117 $ 15 $ (2,970) Securities sold short 1,074 18 1,056 — — Total liabilities $ 1,440 $ 222 $ 4,173 $ 15 $ (2,970) (1) Refer to "Note 19. Derivative Financial Instruments" for additional discussion on netting adjustments. |
Rollforward of Level 3 Assets and Liabilities | Activity for Level 3 assets and liabilities is summarized below: Trading Assets 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 — 9 71 11 66 Purchases 5 — — — 91 Issuances — — 152 24 — Sales (2) — — — (112) Settlements — (50) (171) (26) (56) Balance at December 31, 2018 3 391 1,108 12 393 Total realized and unrealized gains (losses): Included in earnings — 13 (105) 63 47 Included in unrealized net holding gains (losses) in OCI — 4 — — — Purchases 23 — 31 (1) 137 Issuances — — 170 63 — Sales (26) — (27) — (91) Settlements — (40) (164) (118) (46) Transfers into Level 3 — — — (10) — Merger additions — — 1,605 10 — Balance at December 31, 2019 — 368 2,618 19 440 Total realized and unrealized gains (losses): Included in earnings — 306 (550) 467 2 Included in unrealized net holding gains (losses) in OCI — (178) — — — Purchases — — — — 27 Issuances — — 711 780 — Sales — (481) — — — Settlements — (15) (756) (1,094) (21) Transfers out of level 3 and other — — — — (448) Balance at December 31, 2020 $ — $ — $ 2,023 $ 172 $ — Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2020 $ — $ — $ (535) $ 179 $ — Primary income statement location of realized gains (losses) included in earnings Net interest income Gain on sale of securities Residential mortgage income and Commercial real estate related income Residential mortgage income and Commercial real estate related 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 measured at fair value. Trading loans, included in other trading assets, were also elected to be measured at fair value. December 31, 2020 2019 Fair Value UPB Difference Fair Value UPB Difference Trading loans $ 1,586 $ 1,619 $ (33) $ 2,948 $ 2,982 $ (34) LHFS at fair value 4,955 4,736 219 5,673 5,563 110 |
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. 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 (2019 excludes PCI). 2020 2019 As of / For The Year Ended December 31, Carrying Value Valuation Adjustments Carrying Value Valuation Adjustments LHFS $ 979 $ (101) $ 2,700 $ (17) Loans and leases 142 (52) 95 (23) Other 92 (175) 84 (253) |
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: December 31, 2020 2019 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Loans and leases HFI, net of ALLL Level 3 $ 293,899 $ 295,461 $ 298,293 $ 298,586 Financial liabilities: Time deposits Level 2 21,941 22,095 35,896 35,885 Long-term debt Level 2 39,597 40,864 41,339 42,051 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the gross notional amounts and estimated fair value of derivative instruments employed by the Company. Truist held no cash flow hedges as of December 31, 2020 and December 31, 2019. 2020 2019 December 31, Notional Amount Fair Value Notional Amount Fair Value Gain Loss Gain Loss Fair value hedges: Interest rate contracts: Swaps hedging long-term debt $ — $ — $ — $ 23,701 $ 113 $ (25) Options hedging long-term debt — — — 3,407 — (2) Swaps hedging commercial loans — — — 44 — — Swaps hedging AFS securities 17,765 — — — — — Total 17,765 — — 27,152 113 (27) Not designated as hedges: Client-related and other risk management: Interest rate contracts: Swaps 156,338 3,399 (862) 144,473 1,817 (673) Options 25,386 45 (18) 25,938 28 (19) Forward commitments 4,847 9 (11) 7,907 6 (7) Other 2,573 — — 1,807 — — Equity contracts 31,152 1,856 (2,297) 38,426 1,988 (2,307) Credit contracts: Loans and leases 1,056 — (5) 894 — (34) Risk participation agreements 7,802 1 (13) 6,696 — (2) Total return swaps 1,296 13 (33) 2,531 27 (11) Foreign exchange contracts 12,066 189 (219) 12,986 144 (164) Commodity 2,872 130 (124) 2,659 67 (65) Total 245,388 5,642 (3,582) 244,317 4,077 (3,282) Mortgage banking: Interest rate contracts: Swaps 687 — — 535 — — Interest rate lock commitments 8,609 186 (3) 4,427 34 (2) When issued securities, forward rate agreements and forward commitments 11,691 6 (73) 11,997 10 (18) Other 466 — — 603 2 — Total 21,453 192 (76) 17,562 46 (20) MSRs: Interest rate contracts: Swaps 36,161 — (5) 19,196 — — Options 101 — — 1,519 22 (2) When issued securities, forward rate agreements and forward commitments 1,314 7 — 5,560 2 (5) Other 760 — — 567 — — Total 38,336 7 (5) 26,842 24 (7) Total derivatives not designated as hedges 305,177 5,841 (3,663) 288,721 4,147 (3,309) Total derivatives $ 322,942 5,841 (3,663) $ 315,873 4,260 (3,336) Gross amounts in the Consolidated Balance Sheets: Amounts subject to master netting arrangements (1,561) 1,561 (1,708) 1,708 Cash collateral (received) posted for amounts subject to master netting arrangements (443) 1,547 (499) 1,262 Net amount $ 3,837 $ (555) $ 2,053 $ (366) |
Netting of Financial Instruments - Derivatives | The following table presents the offsetting of derivative instruments including financial instrument collateral related to legally enforceable master netting agreements and amounts held or pledged as collateral. U.S. GAAP does not permit netting of non-cash collateral balances in the consolidated balance sheet: December 31, 2020 Gross Amount Amount Offset Net Amount in Consolidated Balance Sheets Held/Pledged Financial Instruments Net Amount Derivative assets: Derivatives subject to master netting arrangement or similar arrangement $ 4,383 $ (1,618) $ 2,765 $ (2) $ 2,763 Derivatives not subject to master netting arrangement or similar arrangement 705 — 705 (1) 704 Exchange traded derivatives 753 (386) 367 — 367 Total derivative assets $ 5,841 $ (2,004) $ 3,837 $ (3) $ 3,834 Derivative liabilities: Derivatives subject to master netting arrangement or similar arrangement $ (3,103) $ 2,722 $ (381) $ 35 $ (346) Derivatives not subject to master netting arrangement or similar arrangement (174) — (174) — (174) Exchange traded derivatives (386) 386 — — — Total derivative liabilities $ (3,663) $ 3,108 $ (555) $ 35 $ (520) December 31, 2019 Gross Amount Net Amount in Consolidated Balance Sheets Held/Pledged Financial Instruments Net Amount Derivative assets: Derivatives subject to master netting arrangement or similar arrangement $ 3,516 $ (2,003) $ 1,513 $ (17) $ 1,496 Derivatives not subject to master netting arrangement or similar arrangement 138 — 138 (1) 137 Exchange traded derivatives 606 (204) 402 — 402 Total derivative assets $ 4,260 $ (2,207) $ 2,053 $ (18) $ 2,035 Derivative liabilities: Derivatives subject to master netting arrangement or similar arrangement $ (2,939) $ 2,761 $ (178) $ 22 $ (156) Derivatives not subject to master netting arrangement or similar arrangement (193) 5 (188) 11 (177) Exchange traded derivatives (204) 204 — — — Total derivative liabilities $ (3,336) $ 2,970 $ (366) $ 33 $ (333) |
Schedule of Fair Value Hedging Basis Adjustments | The following table presents the carrying value of hedged items in fair value hedging relationships: 2020 2019 Hedge Basis Adjustment Hedge Basis Adjustment December 31, Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated AFS securities $ 100,988 $ (33) $ 50 $ 473 $ — $ 65 Loans and leases 470 — 18 528 3 15 Long-term debt 27,725 — 930 28,557 174 23 |
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. Year Ended December 31, 2020 2019 2018 Pre-tax gain (loss) recognized in OCI: Deposits $ — $ (42) $ 15 Short-term borrowings — 2 (3) Long-term debt — (76) 57 Total $ — $ (116) $ 69 Pre-tax gain (loss) reclassified from AOCI into interest expense: Deposits $ (8) $ (1) $ (1) Short-term borrowings (19) (10) 1 Long-term debt (21) (14) (12) Total $ (48) $ (25) $ (12) The following table summarizes the impact on net interest income related to fair value hedges: Year Ended December 31, 2020 2019 2018 AFS securities: Amounts related to interest settlements $ (3) $ — $ (5) Recognized on derivatives 29 (16) 12 Recognized on hedged items (41) 8 (15) Net income (expense) recognized (15) (8) $ (8) Loans and leases: Amounts related to interest settlements (1) — (2) Recognized on derivatives (3) (21) (1) Recognized on hedged items 1 19 2 Net income (expense) recognized (3) (2) (1) Long-term debt: Amounts related to interest settlements 182 (56) (30) Recognized on derivatives 831 170 (122) Recognized on hedged items (732) (151) 165 Net income (expense) recognized 281 (37) 13 Net income (expense) recognized, total $ 263 $ (47) $ 4 The following table presents information about the Company's cash flow and fair value hedges: December 31, 2020 2019 Cash flow hedges: Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) $ (64) $ (101) 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 (42) (37) Fair value hedges: Unrecognized pre-tax net gain (loss) on terminated hedges (to be recognized as interest primarily through 2029) $ 862 $ (57) Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months 292 (6) The following table presents pre-tax gain (loss) recognized in income for derivative instruments not designated as hedges: Year Ended December 31, Location 2020 2019 2018 Client-related and other risk management: Interest rate contracts Investment banking and trading income and other income $ 44 $ 76 $ 40 Foreign exchange contracts Investment banking and trading income and other income (45) (13) 21 Equity contracts Investment banking and trading income and other income (4) (3) — Credit contracts Investment banking and trading income and other income 178 (25) — Commodity contracts Investment banking and trading income 6 — — Mortgage banking: Interest rate contracts Residential mortgage income (418) (61) 36 Interest rate contracts Commercial real estate related income 3 (4) — MSRs: Interest rate contracts Residential mortgage income 495 137 (62) Interest rate contracts Commercial real estate related income 20 7 (3) Total $ 279 $ 114 $ 32 |
Derivatives Credit Risk - Risk Participation Agreements | The following table presents additional information related to interest rate derivative risk participation agreements and total return swaps: December 31, 2020 2019 Risk participation agreements: Maximum potential amount of exposure $ 530 $ 291 Total return swaps: Cash collateral held 374 653 |
Schedule of Derivative Instruments Summary of Collateral Positions with Counterparties | The following table summarizes collateral positions with counterparties: December 31, 2020 2019 Dealer and other counterparties: Cash and other collateral received from counterparties $ 446 $ 514 Derivatives in a net gain position secured by collateral received 585 615 Unsecured positions in a net gain with counterparties after collateral postings 49 101 Cash collateral posted to dealer counterparties 1,524 1,255 Derivatives in a net loss position secured by collateral 1,604 1,300 Additional collateral that would have been posted had the Company's credit ratings dropped below investment grade 3 12 Central counterparties clearing: Cash collateral, including initial margin, posted to central clearing parties 172 30 Derivatives in a net loss position 90 31 Derivatives in a net gain position 5 — Securities pledged to central counterparties clearing 1,281 513 |
Computation of EPS (Tables)
Computation of EPS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS | Basic and diluted EPS calculations are presented in the following table: Year Ended December 31, 2020 2019 2018 Net income available to common shareholders $ 4,184 $ 3,028 $ 3,063 Weighted average number of common shares 1,347,080 805,104 772,963 Effect of dilutive outstanding equity-based awards 11,209 10,100 10,521 Weighted average number of diluted common shares 1,358,289 815,204 783,484 Basic EPS $ 3.11 $ 3.76 $ 3.96 Diluted EPS $ 3.08 $ 3.71 $ 3.91 Anti-dilutive awards 16 4 22 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents results by segment: Year Ended December 31, CB&W C&CB IH OT&C (1) Total 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Net interest income (expense) $ 7,377 $ 3,633 $ 3,410 $ 5,391 $ 3,153 $ 2,723 $ 126 $ 146 $ 119 $ 932 $ 381 $ 430 $ 13,826 $ 7,313 $ 6,682 Net intersegment interest income (expense) 1,424 923 406 (213) (409) (110) (32) (44) (32) (1,179) (470) (264) — — — Segment net interest income 8,801 4,556 3,816 5,178 2,744 2,613 94 102 87 (247) (89) 166 13,826 7,313 6,682 Allocated provision for credit losses 1,004 513 506 1,304 102 111 9 9 3 18 (9) (54) 2,335 615 566 Segment net interest income after provision 7,797 4,043 3,310 3,874 2,642 2,502 85 93 84 (265) (80) 220 11,491 6,698 6,116 Noninterest income 4,056 2,316 2,047 2,476 1,168 1,019 2,241 2,112 1,872 106 (341) (62) 8,879 5,255 4,876 Amortization of intangibles 419 58 41 175 31 19 72 74 71 19 1 — 685 164 131 Other noninterest expense 7,431 3,970 3,408 3,272 1,509 1,471 1,713 1,703 1,544 1,796 588 378 14,212 7,770 6,801 Income (loss) before income taxes 4,003 2,331 1,908 2,903 2,270 2,031 541 428 341 (1,974) (1,010) (220) 5,473 4,019 4,060 Provision (benefit) for income taxes 944 566 473 582 479 433 134 110 88 (679) (373) (191) 981 782 803 Segment net income (loss) $ 3,059 $ 1,765 $ 1,435 $ 2,321 $ 1,791 $ 1,598 $ 407 $ 318 $ 253 $ (1,295) $ (637) $ (29) $ 4,492 $ 3,237 $ 3,257 Identifiable assets (period end) $ 163,548 $ 169,970 $ 74,974 $ 186,555 $ 185,855 $ 85,985 $ 7,932 $ 7,325 $ 6,622 $ 151,193 $ 109,928 $ 58,116 $ 509,228 $ 473,078 $ 225,697 (1) Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure. |
Parent Company Financial Info_2
Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Condensed Balance Sheet | Parent Company - Condensed Balance Sheets (Dollars in millions) December 31, 2020 2019 Assets: Cash and due from banks $ 688 $ 361 Interest-bearing deposits with banks 13,434 12,031 AFS securities at fair value 82 137 Advances to / receivables from subsidiaries: Banking 2,541 1,350 Nonbank 3,734 3,735 Total advances to / receivables from subsidiaries 6,275 5,085 Investment in subsidiaries: Banking 65,641 64,206 Nonbank 4,296 3,856 Total investment in subsidiaries 69,937 68,062 Other assets 313 655 Total assets $ 90,729 $ 86,331 Liabilities and Shareholders' Equity: Short-term borrowings $ 621 $ 603 Long-term debt 18,890 18,130 Other liabilities 306 1,040 Total liabilities 19,817 19,773 Total shareholders' equity 70,912 66,558 Total liabilities and shareholders' equity $ 90,729 $ 86,331 |
Parent Company Condensed Income and Comprehensive Income Statement | Parent Company - Condensed Income and Comprehensive Income Statements (Dollars in millions) Year Ended December 31, 2020 2019 2018 Income: Dividends from subsidiaries: Banking $ 2,800 $ 1,650 $ 2,825 Nonbank 5 35 147 Total dividends from subsidiaries 2,805 1,685 2,972 Interest and other income from subsidiaries 170 217 164 Other income 12 — 7 Total income 2,987 1,902 3,143 Expenses: Interest expense 333 475 364 Other expenses 174 250 82 Total expenses 507 725 446 Income before income taxes and equity in undistributed earnings of subsidiaries 2,480 1,177 2,697 Income tax benefit 56 92 52 Income before equity in undistributed earnings of subsidiaries 2,536 1,269 2,749 Equity in undistributed earnings of subsidiaries in excess of dividends from subsidiaries 1,956 1,968 508 Net income 4,492 3,237 3,257 Total OCI 1,560 871 (248) Total comprehensive income $ 6,052 $ 4,108 $ 3,009 |
Parent Company Condensed Cash Flow Statement | Parent Company - Statements of Cash Flows (Dollars in millions) Year Ended December 31, 2020 2019 2018 Cash Flows From Operating Activities: Net income $ 4,492 $ 3,237 $ 3,257 Adjustments to reconcile net income to net cash from operating activities: Equity in earnings of subsidiaries in excess of dividends from subsidiaries (1,956) (1,968) (508) Other, net (704) 84 (28) Net cash from operating activities 1,832 1,353 2,721 Cash Flows From Investing Activities: Proceeds from maturities, calls, and paydowns of AFS securities 79 157 33 Purchases of AFS securities (22) (79) (28) Investment in subsidiaries (79) (1) — Advances to subsidiaries (6,711) (5,358) (4,639) Proceeds from repayment of advances to subsidiaries 5,499 8,304 3,665 Net cash from acquisitions and divestitures — 1,903 — Other, net 14 (1) (4) Net cash from investing activities (1,220) 4,925 (973) Cash Flows From Financing Activities: Net change in short-term borrowings 18 53 (5) Net change in long-term debt 397 370 1,746 Repurchase of common stock — — (1,205) Net proceeds from preferred stock issued 3,449 1,683 — Redemption of preferred stock (500) (1,725) — Cash dividends paid on common and preferred stock (2,725) (1,459) (1,378) Other, net 479 (40) (52) Net cash from financing activities 1,118 (1,118) (894) Net Change in Cash and Cash Equivalents 1,730 5,160 854 Cash and Cash Equivalents, January 1 12,392 7,232 6,378 Cash and Cash Equivalents, December 31 $ 14,122 $ 12,392 $ 7,232 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - CECL impact on Allowance for Credit Losses $ in Millions | Jan. 01, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 3,100 |
PCD | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | (378) |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Decrease in Retained Earnings | $ 2,100 |
Basis of Presentation -Summary
Basis of Presentation -Summary of Loans and Leases Policies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Sustained Performance Period To Return To Accrual Status | 6 months | |
Threshold Period For Past Due Classification for Loans and Leases Receivable | 30 days | |
Collateral on Impaired Loans and Foreclosed Property, Valuation Period | 6 months | |
Threshold amount to establish a reserve on nonaccrual loans and TDRs (or more) | $ 5 | |
Commercial: | Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days | [1],[2] |
Threshold Period Past Due for Charge-off of Loans | 90 days | [2] |
Commercial: | CRE | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days | [1],[2] |
Threshold Period Past Due for Charge-off of Loans | 90 days | [2] |
Commercial: | Commercial construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days | [1],[2] |
Threshold Period Past Due for Charge-off of Loans | 90 days | [2] |
Commercial: | Lease financing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days | [1],[2] |
Threshold Period Past Due for Charge-off of Loans | 90 days | [2] |
Consumer: | Residential Mortgage | Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days | [1],[3] |
Threshold Period Past Due for Charge-off of Loans | 90 days | [3] |
Consumer: | Residential Mortgage | Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 180 days | [1],[3] |
Threshold Period Past Due for Charge-off of Loans | 210 days | [3] |
Consumer: | Residential home equity and direct | Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days | [1],[3] |
Threshold Period Past Due for Charge-off of Loans | 90 days | [3] |
Consumer: | Residential home equity and direct | Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 120 days | [1],[3] |
Threshold Period Past Due for Charge-off of Loans | 180 days | [3] |
Consumer: | Indirect auto | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days | [1],[3] |
Threshold Period Past Due for Charge-off of Loans | 120 days | [3] |
Consumer: | Indirect other | Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days | [1],[3] |
Threshold Period Past Due for Charge-off of Loans | 120 days | [3] |
Consumer: | Indirect other | Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 120 days | [1],[3] |
Threshold Period Past Due for Charge-off of Loans | 180 days | [3] |
Consumer: | Student | Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Charge-off of Loans | 120 days | [4],[5] |
Consumer: | Student | Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Charge-off of Loans | 180 days | [4],[5] |
Credit card | Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Charge-off of Loans | 90 days | [6] |
Credit card | Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Threshold Period Past Due for Charge-off of Loans | 180 days | [6] |
[1] | Loans may be returned to performing status when (i) the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments, (ii) management concludes that all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment, and (iii) there is a sustained period of repayment performance, generally a minimum of six months. | |
[2] | Or when it is probable that principal or interest is not fully collectible, whichever occurs first. | |
[3] | Depends on product type, loss mitigation status, status of the government guaranty, if applicable, and certain other product-specific factors. | |
[4] | Claims related to government guaranteed loans may be filed once the loans reach 270 days past due. The non-guaranteed balance, which ranges from 2-3%, is charged off once the claim proceeds related to the guaranteed portion have been received. | |
[5] | Student loans are not placed in nonperforming status, which reflects consideration of governmental guarantees or accelerated charge-off policies related to certain non-guaranteed portfolios. | |
[6] | Credit cards are generally not placed on nonperforming status, but are fully charged off at specified delinquency dates consistent with regulatory guidelines. |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Jul. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||
Loans and Leases | $ 299,734 | $ 299,842 | |
Deposits | 381,077 | $ 334,727 | |
IH | |||
Business Acquisition [Line Items] | |||
Goodwill, Period Increase (Decrease) | 450 | ||
Identifiable intangible assets increase | $ 346 | ||
Weighted average term | 15 years 4 months 24 days | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 171 | ||
Business Acquisition, Finite-lived Intangible Assets, Expected Tax Deductible Amount | $ 160 | ||
Divestiture [Member] | |||
Business Acquisition [Line Items] | |||
Loans and Leases | $ 425 | ||
Deposits | $ 2,200 |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Asssumed (Details) - USD ($) $ in Millions | Dec. 06, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 24,447 | $ 24,154 | $ 9,818 | $ 9,618 | |
SunTrust Banks Inc. | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Consideration Transferred | $ 33,547 | ||||
Trading assets | 5,710 | ||||
AFS securities | 30,986 | ||||
LHFS | 3,752 | ||||
UPB Loans | 158,495 | ||||
Fair Value Loans | 154,033 | ||||
Premises and equipment | 1,496 | ||||
CDI and other intangible assets | 2,734 | ||||
MSRs | 1,605 | ||||
Other assets | 13,646 | ||||
Total assets | 221,442 | ||||
Deposits | (170,633) | ||||
Short-term borrowings | (6,837) | ||||
Long-term debt | (19,484) | ||||
Other liabilities | (5,011) | ||||
Total liabilities | (201,965) | ||||
Noncontrolling interest | (108) | ||||
Less: Net assets | 19,369 | ||||
Goodwill | 14,178 | ||||
SunTrust Banks Inc. | Cash and due from banks | |||||
Business Acquisition [Line Items] | |||||
Cash and Equivalents | 1,621 | ||||
SunTrust Banks Inc. | Interest-bearing deposits with banks | |||||
Business Acquisition [Line Items] | |||||
Cash and Equivalents | 4,668 | ||||
SunTrust Banks Inc. | Securities borrowed or purchased under resale agreements | |||||
Business Acquisition [Line Items] | |||||
Cash and Equivalents | 1,191 | ||||
SunTrust Banks Inc. | Commercial and industrial | |||||
Business Acquisition [Line Items] | |||||
UPB Loans | 68,687 | ||||
Fair Value Loans | 67,101 | ||||
SunTrust Banks Inc. | CRE | |||||
Business Acquisition [Line Items] | |||||
UPB Loans | 9,509 | ||||
Fair Value Loans | 9,357 | ||||
SunTrust Banks Inc. | Commercial construction | |||||
Business Acquisition [Line Items] | |||||
UPB Loans | 2,136 | ||||
Fair Value Loans | 2,096 | ||||
SunTrust Banks Inc. | Lease financing | |||||
Business Acquisition [Line Items] | |||||
UPB Loans | 3,967 | ||||
Fair Value Loans | 3,743 | ||||
SunTrust Banks Inc. | Residential Mortgage | |||||
Business Acquisition [Line Items] | |||||
UPB Loans | 28,191 | ||||
Fair Value Loans | 27,180 | ||||
SunTrust Banks Inc. | Residential home equity and direct | |||||
Business Acquisition [Line Items] | |||||
UPB Loans | 15,917 | ||||
Fair Value Loans | 15,628 | ||||
SunTrust Banks Inc. | Indirect auto | |||||
Business Acquisition [Line Items] | |||||
UPB Loans | 12,373 | ||||
Fair Value Loans | 12,203 | ||||
SunTrust Banks Inc. | Indirect other | |||||
Business Acquisition [Line Items] | |||||
UPB Loans | 4,678 | ||||
Fair Value Loans | 4,445 | ||||
SunTrust Banks Inc. | Student | |||||
Business Acquisition [Line Items] | |||||
UPB Loans | 6,867 | ||||
Fair Value Loans | 6,657 | ||||
SunTrust Banks Inc. | Credit card | |||||
Business Acquisition [Line Items] | |||||
UPB Loans | 2,518 | ||||
Fair Value Loans | 2,497 | ||||
SunTrust Banks Inc. | PCI | |||||
Business Acquisition [Line Items] | |||||
UPB Loans | 3,652 | ||||
Fair Value Loans | $ 3,126 |
Securities Financing Activiti_3
Securities Financing Activities - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting [Abstract] | ||
Market Value of Collateral Held for Securities Borrowed and Securities Under Resell Agreements | $ 1,700 | $ 1,400 |
Market Value of Collateral that Has Been Repledged | $ 27 | $ 135 |
Securities Financing Activiti_4
Securities Financing Activities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting [Abstract] | ||
Securities purchased under resale agreements | $ 1,158 | $ 986 |
Securities borrowed | 587 | 431 |
Total securities borrowed or purchased under resale agreements | 1,745 | 1,417 |
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 6,092 | 18,218 |
Securities Sold under Agreements to Repurchase | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 1,221 | 1,969 |
Securities Sold under Agreements to Repurchase | U.S. Treasury | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 336 | 150 |
Securities Sold under Agreements to Repurchase | GSE | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 54 | 124 |
Securities Sold under Agreements to Repurchase | Agency MBS - residential | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 448 | 1,069 |
Securities Sold under Agreements to Repurchase | Corporate and other debt securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 383 | 626 |
Securities Sold under Agreements to Repurchase | Overnight and Continuous | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 996 | 1,440 |
Securities Sold under Agreements to Repurchase | Overnight and Continuous | U.S. Treasury | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 305 | 115 |
Securities Sold under Agreements to Repurchase | Overnight and Continuous | GSE | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 45 | 87 |
Securities Sold under Agreements to Repurchase | Overnight and Continuous | Agency MBS - residential | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 442 | 928 |
Securities Sold under Agreements to Repurchase | Overnight and Continuous | Corporate and other debt securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 204 | 310 |
Securities Sold under Agreements to Repurchase | Up to 30 days | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 225 | 429 |
Securities Sold under Agreements to Repurchase | Up to 30 days | U.S. Treasury | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 31 | 35 |
Securities Sold under Agreements to Repurchase | Up to 30 days | GSE | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 9 | 37 |
Securities Sold under Agreements to Repurchase | Up to 30 days | Agency MBS - residential | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 6 | 41 |
Securities Sold under Agreements to Repurchase | Up to 30 days | Corporate and other debt securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | $ 179 | 316 |
Securities Sold under Agreements to Repurchase | 30-90 days | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 100 | |
Securities Sold under Agreements to Repurchase | 30-90 days | U.S. Treasury | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 0 | |
Securities Sold under Agreements to Repurchase | 30-90 days | GSE | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 0 | |
Securities Sold under Agreements to Repurchase | 30-90 days | Agency MBS - residential | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | 100 | |
Securities Sold under Agreements to Repurchase | 30-90 days | Corporate and other debt securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term Debt | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Millions | Dec. 31, 2020USD ($) |
Debt Securities Exceeding Ten Percent of Stockholders Equity [Line Items] | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ 0 |
FNMA investments | |
Debt Securities Exceeding Ten Percent of Stockholders Equity [Line Items] | |
Securities, amortized cost | 28,500 |
Securities, fair value | 29,000 |
FHLMC investments | |
Debt Securities Exceeding Ten Percent of Stockholders Equity [Line Items] | |
Securities, amortized cost | 29,000 |
Securities, fair value | $ 29,400 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
AFS securities | ||
Amortized Cost | $ 118,618 | $ 74,227 |
Gross Unrealized Gains | 2,196 | 677 |
Gross Unrealized Losses | 26 | 177 |
AFS securities, Fair Value | 120,788 | 74,727 |
U.S. Treasury | ||
AFS securities | ||
Amortized Cost | 1,721 | 2,275 |
Gross Unrealized Gains | 25 | 7 |
Gross Unrealized Losses | 0 | 6 |
AFS securities, Fair Value | 1,746 | 2,276 |
GSE | ||
AFS securities | ||
Amortized Cost | 1,840 | 1,847 |
Gross Unrealized Gains | 77 | 34 |
Gross Unrealized Losses | 0 | 0 |
AFS securities, Fair Value | 1,917 | 1,881 |
Agency MBS | Agency MBS - residential | ||
AFS securities | ||
Amortized Cost | 111,589 | 67,983 |
Gross Unrealized Gains | 1,975 | 411 |
Gross Unrealized Losses | 23 | 158 |
AFS securities, Fair Value | 113,541 | 68,236 |
Agency MBS | Commercial Mortgage Backed Securities | ||
AFS securities | ||
Amortized Cost | 2,987 | 1,335 |
Gross Unrealized Gains | 72 | 13 |
Gross Unrealized Losses | 2 | 7 |
AFS securities, Fair Value | 3,057 | 1,341 |
States and political subdivisions | ||
AFS securities | ||
Amortized Cost | 447 | 557 |
Gross Unrealized Gains | 47 | 34 |
Gross Unrealized Losses | 1 | 6 |
AFS securities, Fair Value | 493 | 585 |
Non-agency MBS | ||
AFS securities | ||
Amortized Cost | 190 | |
Gross Unrealized Gains | 178 | |
Gross Unrealized Losses | 0 | |
AFS securities, Fair Value | 368 | |
Other | ||
AFS securities | ||
Amortized Cost | 34 | 40 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
AFS securities, Fair Value | $ 34 | $ 40 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Estimated Fair Value by Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
AFS, Amortized Cost | ||
Due in one year or less | $ 565 | |
Due after one year through five years | 3,092 | |
Due after five years through ten years | 536 | |
Due after ten years | 114,425 | |
Debt Securities, Available-for-sale, Amortized Cost, Total | 118,618 | $ 74,227 |
AFS, Fair Value | ||
Due in one year or less | 572 | |
Due after one year through five years | 3,187 | |
Due after five years through ten years | 566 | |
Due after ten years | 116,463 | |
Debt Securities, Available-for-sale, Total | 120,788 | 74,727 |
U.S. Treasury | ||
AFS, Amortized Cost | ||
Due in one year or less | 253 | |
Due after one year through five years | 1,468 | |
Due after five years through ten years | 0 | |
Due after ten years | 0 | |
Debt Securities, Available-for-sale, Amortized Cost, Total | 1,721 | 2,275 |
AFS, Fair Value | ||
Due in one year or less | 254 | |
Due after one year through five years | 1,492 | |
Due after five years through ten years | 0 | |
Due after ten years | 0 | |
Debt Securities, Available-for-sale, Total | 1,746 | 2,276 |
GSE | ||
AFS, Amortized Cost | ||
Due in one year or less | 282 | |
Due after one year through five years | 1,487 | |
Due after five years through ten years | 0 | |
Due after ten years | 71 | |
Debt Securities, Available-for-sale, Amortized Cost, Total | 1,840 | 1,847 |
AFS, Fair Value | ||
Due in one year or less | 288 | |
Due after one year through five years | 1,553 | |
Due after five years through ten years | 0 | |
Due after ten years | 76 | |
Debt Securities, Available-for-sale, Total | 1,917 | 1,881 |
Agency MBS | Agency MBS - residential | ||
AFS, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 1 | |
Due after five years through ten years | 427 | |
Due after ten years | 111,161 | |
Debt Securities, Available-for-sale, Amortized Cost, Total | 111,589 | 67,983 |
AFS, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 1 | |
Due after five years through ten years | 441 | |
Due after ten years | 113,099 | |
Debt Securities, Available-for-sale, Total | 113,541 | 68,236 |
Agency MBS | Commercial Mortgage Backed Securities | ||
AFS, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 1 | |
Due after five years through ten years | 9 | |
Due after ten years | 2,977 | |
Debt Securities, Available-for-sale, Amortized Cost, Total | 2,987 | 1,335 |
AFS, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 2 | |
Due after five years through ten years | 10 | |
Due after ten years | 3,045 | |
Debt Securities, Available-for-sale, Total | 3,057 | 1,341 |
States and political subdivisions | ||
AFS, Amortized Cost | ||
Due in one year or less | 29 | |
Due after one year through five years | 128 | |
Due after five years through ten years | 100 | |
Due after ten years | 190 | |
Debt Securities, Available-for-sale, Amortized Cost, Total | 447 | 557 |
AFS, Fair Value | ||
Due in one year or less | 29 | |
Due after one year through five years | 132 | |
Due after five years through ten years | 115 | |
Due after ten years | 217 | |
Debt Securities, Available-for-sale, Total | 493 | 585 |
Other | ||
AFS, Amortized Cost | ||
Due in one year or less | 1 | |
Due after one year through five years | 7 | |
Due after five years through ten years | 0 | |
Due after ten years | 26 | |
Debt Securities, Available-for-sale, Amortized Cost, Total | 34 | 40 |
AFS, Fair Value | ||
Due in one year or less | 1 | |
Due after one year through five years | 7 | |
Due after five years through ten years | 0 | |
Due after ten years | 26 | |
Debt Securities, Available-for-sale, Total | $ 34 | $ 40 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Values of Investments in Continuous Unrealized Loss Positions (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
AFS securities, Fair Value | ||
Less than 12 months | $ 4,534 | $ 21,646 |
12 months or more | 239 | 1,594 |
Total | 4,773 | 23,240 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 23 | 157 |
12 months or more | 3 | 20 |
Total | 26 | 177 |
U.S. Treasury | ||
AFS securities, Fair Value | ||
Less than 12 months | 17 | 702 |
12 months or more | 0 | 0 |
Total | 17 | 702 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 0 | 6 |
12 months or more | 0 | 0 |
Total | 0 | 6 |
GSE | ||
AFS securities, Fair Value | ||
Less than 12 months | 6 | |
12 months or more | 0 | |
Total | 6 | |
AFS securities, Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or more | 0 | |
Total | 0 | |
Agency MBS | Agency MBS - residential | ||
AFS securities, Fair Value | ||
Less than 12 months | 4,028 | 20,328 |
12 months or more | 203 | 1,326 |
Total | 4,231 | 21,654 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 21 | 145 |
12 months or more | 2 | 13 |
Total | 23 | 158 |
Agency MBS | Commercial Mortgage Backed Securities | ||
AFS securities, Fair Value | ||
Less than 12 months | 463 | 545 |
12 months or more | 4 | 124 |
Total | 467 | 669 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 2 | 5 |
12 months or more | 0 | 2 |
Total | 2 | 7 |
States and political subdivisions | ||
AFS securities, Fair Value | ||
Less than 12 months | 20 | 65 |
12 months or more | 32 | 144 |
Total | 52 | 209 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 0 | 1 |
12 months or more | 1 | 5 |
Total | 1 | $ 6 |
Other | ||
AFS securities, Fair Value | ||
Less than 12 months | 6 | |
12 months or more | 0 | |
Total | 6 | |
AFS securities, Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or more | 0 | |
Total | $ 0 |
Investments Securities - Gain (
Investments Securities - Gain (Loss) on Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gain (Loss) on Securities [Line Items] | |||
Gross realized gains | $ 404 | $ 47 | $ 4 |
Gross realized losses | (2) | (163) | (1) |
Noninterest income | 8,879 | 5,255 | 4,876 |
Securities gains (losses) | |||
Gain (Loss) on Securities [Line Items] | |||
Noninterest income | $ 402 | $ (116) | $ 3 |
Loans and ACL - Narrative (Deta
Loans and ACL - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||||
Modifications that defaulted during the period that had been classified as a TDR during the previous 12 months | $ 93 | $ 78 | $ 76 | |
Financing Receivable | ||||
Financing Receivable, Nonaccrual, Interest Income | 32 | |||
CECL impact on Allowance for Credit Losses | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 3,100 | |||
Commercial: | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 2,100 | |||
Credit card | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 237 | |||
Commitments to extend, originate or purchase credit | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | (24) | |||
Consumer: | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 2,000 |
Loans and ACL - Aging Analysis
Loans and ACL - Aging Analysis of Loans and Leases (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable [Line Items] | |||
Current | $ 294,176 | $ 295,181 | |
30-89 Days Past Due | 2,220 | 2,213 | |
90 Days Or More Past Due | 2,008 | 1,994 | |
Nonperforming | [1] | 1,330 | 454 |
Total | 299,734 | 299,842 | |
Commercial: | Commercial and industrial | |||
Financing Receivable [Line Items] | |||
Current | 137,726 | 129,873 | |
30-89 Days Past Due | 83 | 94 | |
90 Days Or More Past Due | 13 | 1 | |
Nonperforming | 532 | 212 | |
Total | 138,354 | 130,180 | |
Commercial: | CRE | |||
Financing Receivable [Line Items] | |||
Current | 26,506 | 26,817 | |
30-89 Days Past Due | 14 | 5 | |
90 Days Or More Past Due | 0 | 0 | |
Nonperforming | 75 | 10 | |
Total | 26,595 | 26,832 | |
Commercial: | Commercial construction | |||
Financing Receivable [Line Items] | |||
Current | 6,472 | 6,204 | |
30-89 Days Past Due | 5 | 1 | |
90 Days Or More Past Due | 0 | 0 | |
Nonperforming | 14 | 0 | |
Total | 6,491 | 6,205 | |
Commercial: | Lease financing | |||
Financing Receivable [Line Items] | |||
Current | 5,206 | 6,112 | |
30-89 Days Past Due | 6 | 2 | |
90 Days Or More Past Due | 0 | 0 | |
Nonperforming | 28 | 8 | |
Total | 5,240 | 6,122 | |
Consumer: | Residential Mortgage | |||
Financing Receivable [Line Items] | |||
Current | 45,333 | 50,975 | |
30-89 Days Past Due | 782 | 498 | |
90 Days Or More Past Due | 841 | 543 | |
Nonperforming | 316 | 55 | |
Total | 47,272 | 52,071 | |
Consumer: | Residential home equity and direct | |||
Financing Receivable [Line Items] | |||
Current | 25,751 | 26,846 | |
30-89 Days Past Due | 98 | 122 | |
90 Days Or More Past Due | 10 | 9 | |
Nonperforming | 205 | 67 | |
Total | 26,064 | 27,044 | |
Consumer: | Indirect auto | |||
Financing Receivable [Line Items] | |||
Current | 25,498 | 23,771 | |
30-89 Days Past Due | 495 | 560 | |
90 Days Or More Past Due | 2 | 11 | |
Nonperforming | 155 | 100 | |
Total | 26,150 | 24,442 | |
Consumer: | Indirect other | |||
Financing Receivable [Line Items] | |||
Current | 11,102 | 11,011 | |
30-89 Days Past Due | 68 | 85 | |
90 Days Or More Past Due | 2 | 2 | |
Nonperforming | 5 | 2 | |
Total | 11,177 | 11,100 | |
Consumer: | Student | |||
Financing Receivable [Line Items] | |||
Current | 5,823 | 5,905 | |
30-89 Days Past Due | 618 | 650 | |
90 Days Or More Past Due | 1,111 | 188 | |
Nonperforming | 0 | 0 | |
Total | 7,552 | 6,743 | |
Credit card | |||
Financing Receivable [Line Items] | |||
Current | 4,759 | 5,541 | |
30-89 Days Past Due | 51 | 56 | |
90 Days Or More Past Due | 29 | 22 | |
Nonperforming | 0 | 0 | |
Total | $ 4,839 | 5,619 | |
PCI | |||
Financing Receivable [Line Items] | |||
Current | 2,126 | ||
30-89 Days Past Due | 140 | ||
90 Days Or More Past Due | 1,218 | ||
Nonperforming | 0 | ||
Total | $ 3,484 | ||
[1] | (1) Beginning January 1, 2020, nonperforming loans and leases include certain assets previously classified as PCI. |
Loans and ACL - Risk Rating (De
Loans and ACL - Risk Rating (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable | |||
Loans and leases | $ 299,734 | $ 299,842 | |
2020 | 70,929 | ||
2019 | 51,905 | ||
2018 | 33,350 | ||
2017 | 20,386 | ||
2016 | 14,865 | ||
Prior | 40,413 | ||
Revolving Credit | 66,107 | ||
Loans Converted to Term | 2,012 | ||
Other (1) | [1] | (233) | |
Credit card | |||
Financing Receivable | |||
Loans and leases | 4,839 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Credit | 4,802 | ||
Loans Converted to Term | 37 | ||
Other (1) | [1] | 0 | |
Commercial: | Commercial & Industrial | |||
Financing Receivable | |||
Loans and leases | 138,354 | 130,180 | |
2020 | 35,828 | ||
2019 | 19,852 | ||
2018 | 14,042 | ||
2017 | 7,961 | ||
2016 | 5,463 | ||
Prior | 9,362 | ||
Revolving Credit | 46,174 | ||
Loans Converted to Term | 252 | ||
Other (1) | [1] | (580) | |
Commercial: | Commercial & Industrial | Pass | |||
Financing Receivable | |||
Loans and leases | 131,258 | 127,229 | |
2020 | 34,858 | ||
2019 | 18,881 | ||
2018 | 13,312 | ||
2017 | 7,713 | ||
2016 | 5,174 | ||
Prior | 8,888 | ||
Revolving Credit | 42,780 | ||
Loans Converted to Term | 231 | ||
Other (1) | [1] | (579) | |
Commercial: | Commercial & Industrial | Special mention | |||
Financing Receivable | |||
Loans and leases | 3,435 | 1,264 | |
2020 | 471 | ||
2019 | 434 | ||
2018 | 343 | ||
2017 | 98 | ||
2016 | 120 | ||
Prior | 157 | ||
Revolving Credit | 1,808 | ||
Loans Converted to Term | 5 | ||
Other (1) | [1] | (1) | |
Commercial: | Commercial & Industrial | Substandard | |||
Financing Receivable | |||
Loans and leases | 3,129 | 1,475 | |
2020 | 461 | ||
2019 | 445 | ||
2018 | 339 | ||
2017 | 121 | ||
2016 | 144 | ||
Prior | 256 | ||
Revolving Credit | 1,353 | ||
Loans Converted to Term | 12 | ||
Other (1) | [1] | (2) | |
Commercial: | Commercial & Industrial | Nonperforming | |||
Financing Receivable | |||
Loans and leases | 532 | 212 | |
2020 | 38 | ||
2019 | 92 | ||
2018 | 48 | ||
2017 | 29 | ||
2016 | 25 | ||
Prior | 61 | ||
Revolving Credit | 233 | ||
Loans Converted to Term | 4 | ||
Other (1) | [1] | 2 | |
Commercial: | CRE | |||
Financing Receivable | |||
Loans and leases | 26,595 | 26,832 | |
2020 | 5,145 | ||
2019 | 7,990 | ||
2018 | 5,451 | ||
2017 | 3,158 | ||
2016 | 1,738 | ||
Prior | 2,560 | ||
Revolving Credit | 622 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | (69) | |
Commercial: | CRE | Pass | |||
Financing Receivable | |||
Loans and leases | 22,459 | 26,393 | |
2020 | 4,563 | ||
2019 | 6,600 | ||
2018 | 4,427 | ||
2017 | 2,752 | ||
2016 | 1,473 | ||
Prior | 2,096 | ||
Revolving Credit | 617 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | (69) | |
Commercial: | CRE | Special mention | |||
Financing Receivable | |||
Loans and leases | 1,689 | 145 | |
2020 | 171 | ||
2019 | 599 | ||
2018 | 585 | ||
2017 | 116 | ||
2016 | 77 | ||
Prior | 141 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 0 | |
Commercial: | CRE | Substandard | |||
Financing Receivable | |||
Loans and leases | 2,372 | 284 | |
2020 | 410 | ||
2019 | 776 | ||
2018 | 438 | ||
2017 | 281 | ||
2016 | 182 | ||
Prior | 280 | ||
Revolving Credit | 5 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 0 | |
Commercial: | CRE | Nonperforming | |||
Financing Receivable | |||
Loans and leases | 75 | 10 | |
2020 | 1 | ||
2019 | 15 | ||
2018 | 1 | ||
2017 | 9 | ||
2016 | 6 | ||
Prior | 43 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 0 | |
Commercial: | Commercial construction | |||
Financing Receivable | |||
Loans and leases | 6,491 | 6,205 | |
2020 | 1,123 | ||
2019 | 2,358 | ||
2018 | 2,026 | ||
2017 | 299 | ||
2016 | 33 | ||
Prior | 111 | ||
Revolving Credit | 536 | ||
Loans Converted to Term | 3 | ||
Other (1) | [1] | 2 | |
Commercial: | Commercial construction | Pass | |||
Financing Receivable | |||
Loans and leases | 5,987 | 6,037 | |
2020 | 1,052 | ||
2019 | 2,141 | ||
2018 | 1,889 | ||
2017 | 232 | ||
2016 | 27 | ||
Prior | 110 | ||
Revolving Credit | 534 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 2 | |
Commercial: | Commercial construction | Special mention | |||
Financing Receivable | |||
Loans and leases | 175 | 37 | |
2020 | 0 | ||
2019 | 108 | ||
2018 | 64 | ||
2017 | 1 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Credit | 2 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 0 | |
Commercial: | Commercial construction | Substandard | |||
Financing Receivable | |||
Loans and leases | 315 | 131 | |
2020 | 70 | ||
2019 | 106 | ||
2018 | 73 | ||
2017 | 59 | ||
2016 | 6 | ||
Prior | 1 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 0 | |
Commercial: | Commercial construction | Nonperforming | |||
Financing Receivable | |||
Loans and leases | 14 | 0 | |
2020 | 1 | ||
2019 | 3 | ||
2018 | 0 | ||
2017 | 7 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 3 | ||
Other (1) | [1] | 0 | |
Commercial: | Lease Financing | |||
Financing Receivable | |||
Loans and leases | 5,240 | 6,122 | |
2020 | 1,380 | ||
2019 | 1,217 | ||
2018 | 801 | ||
2017 | 764 | ||
2016 | 248 | ||
Prior | 803 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 27 | |
Commercial: | Lease Financing | Pass | |||
Financing Receivable | |||
Loans and leases | 5,065 | 6,039 | |
2020 | 1,377 | ||
2019 | 1,139 | ||
2018 | 775 | ||
2017 | 746 | ||
2016 | 241 | ||
Prior | 760 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 27 | |
Commercial: | Lease Financing | Special mention | |||
Financing Receivable | |||
Loans and leases | 72 | 19 | |
2020 | 1 | ||
2019 | 39 | ||
2018 | 20 | ||
2017 | 5 | ||
2016 | 0 | ||
Prior | 7 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 0 | |
Commercial: | Lease Financing | Substandard | |||
Financing Receivable | |||
Loans and leases | 75 | 56 | |
2020 | 0 | ||
2019 | 34 | ||
2018 | 3 | ||
2017 | 4 | ||
2016 | 3 | ||
Prior | 31 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 0 | |
Commercial: | Lease Financing | Nonperforming | |||
Financing Receivable | |||
Loans and leases | 28 | 8 | |
2020 | 2 | ||
2019 | 5 | ||
2018 | 3 | ||
2017 | 9 | ||
2016 | 4 | ||
Prior | 5 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 0 | |
Consumer: | Residential Mortgage | |||
Financing Receivable | |||
Loans and leases | 47,272 | 52,071 | |
2020 | 8,200 | ||
2019 | 6,742 | ||
2018 | 3,751 | ||
2017 | 4,387 | ||
2016 | 5,438 | ||
Prior | 18,590 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 164 | |
Consumer: | Residential Mortgage | Performing | |||
Financing Receivable | |||
Loans and leases | 46,956 | 52,016 | |
2020 | 8,197 | ||
2019 | 6,729 | ||
2018 | 3,735 | ||
2017 | 4,374 | ||
2016 | 5,424 | ||
Prior | 18,333 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 164 | |
Consumer: | Residential Mortgage | Nonperforming | |||
Financing Receivable | |||
Loans and leases | 316 | 55 | |
2020 | 3 | ||
2019 | 13 | ||
2018 | 16 | ||
2017 | 13 | ||
2016 | 14 | ||
Prior | 257 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 0 | |
Consumer: | Residential home equity and direct | |||
Financing Receivable | |||
Loans and leases | 26,064 | 27,044 | |
2020 | 4,514 | ||
2019 | 3,130 | ||
2018 | 1,418 | ||
2017 | 482 | ||
2016 | 215 | ||
Prior | 564 | ||
Revolving Credit | 13,973 | ||
Loans Converted to Term | 1,720 | ||
Other (1) | [1] | 48 | |
Consumer: | Residential home equity and direct | Performing | |||
Financing Receivable | |||
Loans and leases | 25,859 | 26,977 | |
2020 | 4,513 | ||
2019 | 3,126 | ||
2018 | 1,416 | ||
2017 | 481 | ||
2016 | 214 | ||
Prior | 557 | ||
Revolving Credit | 13,886 | ||
Loans Converted to Term | 1,619 | ||
Other (1) | [1] | 47 | |
Consumer: | Residential home equity and direct | Nonperforming | |||
Financing Receivable | |||
Loans and leases | 205 | 67 | |
2020 | 1 | ||
2019 | 4 | ||
2018 | 2 | ||
2017 | 1 | ||
2016 | 1 | ||
Prior | 7 | ||
Revolving Credit | 87 | ||
Loans Converted to Term | 101 | ||
Other (1) | [1] | 1 | |
Consumer: | Indirect auto | |||
Financing Receivable | |||
Loans and leases | 26,150 | 24,442 | |
2020 | 10,283 | ||
2019 | 7,486 | ||
2018 | 4,059 | ||
2017 | 2,428 | ||
2016 | 1,235 | ||
Prior | 518 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 141 | |
Consumer: | Indirect auto | Performing | |||
Financing Receivable | |||
Loans and leases | 25,995 | 24,342 | |
2020 | 10,270 | ||
2019 | 7,436 | ||
2018 | 4,015 | ||
2017 | 2,401 | ||
2016 | 1,220 | ||
Prior | 506 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 147 | |
Consumer: | Indirect auto | Nonperforming | |||
Financing Receivable | |||
Loans and leases | 155 | 100 | |
2020 | 13 | ||
2019 | 50 | ||
2018 | 44 | ||
2017 | 27 | ||
2016 | 15 | ||
Prior | 12 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | (6) | |
Consumer: | Indirect Other | |||
Financing Receivable | |||
Loans and leases | 11,177 | 11,100 | |
2020 | 4,434 | ||
2019 | 3,020 | ||
2018 | 1,707 | ||
2017 | 826 | ||
2016 | 431 | ||
Prior | 720 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 39 | |
Consumer: | Indirect Other | Performing | |||
Financing Receivable | |||
Loans and leases | 11,172 | 11,098 | |
2020 | 4,433 | ||
2019 | 3,019 | ||
2018 | 1,706 | ||
2017 | 826 | ||
2016 | 431 | ||
Prior | 718 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 39 | |
Consumer: | Indirect Other | Nonperforming | |||
Financing Receivable | |||
Loans and leases | 5 | 2 | |
2020 | 1 | ||
2019 | 1 | ||
2018 | 1 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 2 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | 0 | |
Consumer: | Student | |||
Financing Receivable | |||
Loans and leases | 7,552 | $ 6,743 | |
Consumer: | Student | Performing | |||
Financing Receivable | |||
Loans and leases | 7,552 | ||
2020 | 22 | ||
2019 | 110 | ||
2018 | 95 | ||
2017 | 81 | ||
2016 | 64 | ||
Prior | 7,185 | ||
Revolving Credit | 0 | ||
Loans Converted to Term | 0 | ||
Other (1) | [1] | $ (5) | |
[1] | Includes certain deferred fees and costs, unapplied payments and other adjustments. |
Loans and ACL - Allowance for C
Loans and ACL - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Provision for credit losses | $ 2,335 | $ 615 | $ 566 | |||
Commercial: | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 560 | [1] | 546 | 522 | ||
Charge-Offs | (358) | (90) | (92) | |||
Recoveries | 92 | 25 | 39 | |||
Provision for credit losses | 958 | 79 | 77 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 904 | [2] | 0 | |||
ACL, ending balance | 2,156 | 560 | [1] | 546 | ||
Commercial: | CRE | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 150 | [1] | 142 | 118 | ||
Charge-Offs | (78) | (33) | (10) | |||
Recoveries | 5 | 5 | 3 | |||
Provision for credit losses | 414 | 36 | 31 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 82 | [2] | 0 | |||
ACL, ending balance | 573 | 150 | [1] | 142 | ||
Commercial: | Commercial construction | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 52 | [1] | 48 | 42 | ||
Charge-Offs | (30) | 0 | (3) | |||
Recoveries | 11 | 3 | 5 | |||
Provision for credit losses | 32 | 1 | 4 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 16 | [2] | 0 | |||
ACL, ending balance | 81 | 52 | [1] | 48 | ||
Commercial: | Lease financing | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 10 | [1] | 11 | 9 | ||
Charge-Offs | (54) | (11) | (4) | |||
Recoveries | 4 | 1 | 1 | |||
Provision for credit losses | (6) | 9 | 5 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 94 | [2] | 0 | |||
ACL, ending balance | 48 | 10 | [1] | 11 | ||
Consumer: | Residential Mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 176 | [1] | 232 | 209 | ||
Charge-Offs | (56) | (21) | (21) | |||
Recoveries | 10 | 2 | 2 | |||
Provision for credit losses | (27) | (37) | 42 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 265 | [2] | 0 | |||
ACL, ending balance | 368 | 176 | [1] | 232 | ||
Consumer: | Residential home equity and direct | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 107 | [1] | 104 | 113 | ||
Charge-Offs | (231) | (93) | (79) | |||
Recoveries | 66 | 30 | 25 | |||
Provision for credit losses | 318 | 66 | 45 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 454 | [2] | 0 | |||
ACL, ending balance | 714 | 107 | [1] | 104 | ||
Consumer: | Indirect auto | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 304 | [1] | 298 | 296 | ||
Charge-Offs | (378) | (370) | (342) | |||
Recoveries | 87 | 52 | 49 | |||
Provision for credit losses | 367 | 324 | 295 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 818 | [2] | 0 | |||
ACL, ending balance | 1,198 | 304 | [1] | 298 | ||
Consumer: | Indirect other | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 60 | [1] | 58 | 52 | ||
Charge-Offs | (60) | (62) | (49) | |||
Recoveries | 23 | 17 | 13 | |||
Provision for credit losses | 35 | 47 | 42 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 150 | [2] | 0 | |||
ACL, ending balance | 208 | 60 | [1] | 58 | ||
Consumer: | Student | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | [1] | 0 | ||||
Charge-Offs | (23) | |||||
Recoveries | 1 | |||||
Provision for credit losses | 23 | |||||
Allowance for Loan and Lease Losses, Adjustments, Other | [2] | 129 | ||||
ACL, ending balance | 130 | 0 | [1] | |||
Credit card | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 122 | [1] | 110 | 101 | ||
Charge-Offs | (182) | (109) | (76) | |||
Recoveries | 32 | 20 | 17 | |||
Provision for credit losses | 212 | 101 | 68 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 175 | [2] | 0 | |||
ACL, ending balance | 359 | 122 | [1] | 110 | ||
PCI | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 8 | [1] | 9 | 28 | ||
Charge-Offs | 0 | 0 | (2) | |||
Recoveries | 0 | 0 | 0 | |||
Provision for credit losses | 0 | (1) | (17) | |||
Allowance for Loan and Lease Losses, Adjustments, Other | (8) | [2] | 0 | |||
ACL, ending balance | 0 | 8 | [1] | 9 | ||
ALLL | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 1,549 | [1] | 1,558 | 1,490 | ||
Charge-Offs | (1,450) | (789) | (678) | |||
Recoveries | 331 | 155 | 154 | |||
Provision for credit losses | 2,326 | 625 | 592 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 3,079 | [2] | 0 | |||
ACL, ending balance | 5,835 | 1,549 | [1] | 1,558 | ||
RUFC | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 340 | [1] | 93 | 119 | ||
Charge-Offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Provision for credit losses | 9 | (10) | (26) | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 15 | [2] | 257 | [3] | ||
ACL, ending balance | 364 | 340 | [1] | 93 | ||
ACL | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
ACL, beginning balance | 1,889 | [1] | 1,651 | 1,609 | ||
Charge-Offs | (1,450) | (789) | (678) | |||
Recoveries | 331 | 155 | 154 | |||
Provision for credit losses | 2,335 | 615 | 566 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 3,094 | [2] | 257 | [3] | ||
ACL, ending balance | $ 6,199 | $ 1,889 | [1] | $ 1,651 | ||
[1] | Balance is prior to the adoption of CECL. | |||||
[2] | Includes the adoption of CECL, the ALLL for PCD acquisitions and other activity. | |||||
[3] | Includes amounts assumed in the Merger. |
Loans and ACL - Summary of Purc
Loans and ACL - Summary of Purchased Student Loans With Credit Deterioration (Details) - Consumer: - Student $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Financing Receivable | |
Par value | $ 745 |
ALLL at acquisition | (10) |
Non-credit premium (discount) | (1) |
Purchase price | $ 734 |
Loans and ACL - Nonperforming _
Loans and ACL - Nonperforming / Individually Evaluated for Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Financing Receivable, Nonperforming / Impaired [Line Items] | ||
UPB | $ 1,554 | |
Recorded Investment Without an ALLL | 259 | $ 152 |
Recorded Investment With an ALLL | 1,182 | 1,178 |
Related ALLL | 153 | |
Average Recorded Investment | 1,606 | |
Interest Income Recognized | 98 | |
Commercial: | Commercial and industrial | ||
Financing Receivable, Nonperforming / Impaired [Line Items] | ||
UPB | 339 | |
Recorded Investment Without an ALLL | 124 | 82 |
Recorded Investment With an ALLL | 167 | 450 |
Related ALLL | 20 | |
Average Recorded Investment | 298 | |
Interest Income Recognized | 6 | |
Commercial: | CRE | ||
Financing Receivable, Nonperforming / Impaired [Line Items] | ||
UPB | 29 | |
Recorded Investment Without an ALLL | 3 | 63 |
Recorded Investment With an ALLL | 26 | 12 |
Related ALLL | 2 | |
Average Recorded Investment | 71 | |
Interest Income Recognized | 1 | |
Commercial: | Commercial construction | ||
Financing Receivable, Nonperforming / Impaired [Line Items] | ||
UPB | 39 | |
Recorded Investment Without an ALLL | 0 | 0 |
Recorded Investment With an ALLL | 38 | 14 |
Related ALLL | 7 | |
Average Recorded Investment | 5 | |
Interest Income Recognized | 0 | |
Commercial: | Lease financing | ||
Financing Receivable, Nonperforming / Impaired [Line Items] | ||
UPB | 18 | |
Recorded Investment Without an ALLL | 7 | 0 |
Recorded Investment With an ALLL | 2 | 28 |
Related ALLL | 0 | |
Average Recorded Investment | 2 | |
Interest Income Recognized | 0 | |
Consumer: | Residential Mortgage | ||
Financing Receivable, Nonperforming / Impaired [Line Items] | ||
UPB | 650 | |
Recorded Investment Without an ALLL | 92 | 4 |
Recorded Investment With an ALLL | 527 | 312 |
Related ALLL | 42 | |
Average Recorded Investment | 799 | |
Interest Income Recognized | 34 | |
Consumer: | Residential home equity and direct | ||
Financing Receivable, Nonperforming / Impaired [Line Items] | ||
UPB | 76 | |
Recorded Investment Without an ALLL | 24 | 2 |
Recorded Investment With an ALLL | 37 | 203 |
Related ALLL | 5 | |
Average Recorded Investment | 65 | |
Interest Income Recognized | 3 | |
Consumer: | Indirect auto | ||
Financing Receivable, Nonperforming / Impaired [Line Items] | ||
UPB | 367 | |
Recorded Investment Without an ALLL | 9 | 1 |
Recorded Investment With an ALLL | 349 | 154 |
Related ALLL | 64 | |
Average Recorded Investment | 334 | |
Interest Income Recognized | 53 | |
Consumer: | Indirect other | ||
Financing Receivable, Nonperforming / Impaired [Line Items] | ||
UPB | 5 | |
Recorded Investment Without an ALLL | 0 | 0 |
Recorded Investment With an ALLL | 5 | $ 5 |
Related ALLL | 1 | |
Average Recorded Investment | 4 | |
Interest Income Recognized | 0 | |
Credit card | ||
Financing Receivable, Nonperforming / Impaired [Line Items] | ||
UPB | 31 | |
Recorded Investment Without an ALLL | 0 | |
Recorded Investment With an ALLL | 31 | |
Related ALLL | 12 | |
Average Recorded Investment | 28 | |
Interest Income Recognized | $ 1 |
Loans and ACL - Summary of TDRs
Loans and ACL - Summary of TDRs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | $ 1,525 | $ 1,062 |
ALLL attributable to TDRs | 260 | 132 |
Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 1,361 | 980 |
Nonperforming TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 164 | 82 |
Commercial: | Commercial and industrial | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 78 | 47 |
Commercial: | CRE | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 47 | 6 |
Commercial: | Commercial construction | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 0 | 37 |
Commercial: | Lease financing | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 60 | 0 |
Consumer: | Residential Mortgage | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 648 | 470 |
Consumer: | Residential home equity and direct | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 88 | 51 |
Consumer: | Indirect auto | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 392 | 333 |
Consumer: | Indirect other | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 6 | 5 |
Consumer: | Student | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 5 | 0 |
Credit card | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | $ 37 | $ 31 |
Loans and ACL - Types of Modifi
Loans and ACL - Types of Modifications and Impact to Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Newly Designated TDRs | Commercial: | Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
ALLL at Period End | $ 14 | $ 8 | $ 8 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 173 | 61 | 126 |
Newly Designated TDRs | Commercial: | CRE | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
ALLL at Period End | 6 | 0 | 1 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 45 | 4 | 26 |
Newly Designated TDRs | Commercial: | Commercial construction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
ALLL at Period End | 0 | 7 | 0 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 1 | 36 | 2 |
Newly Designated TDRs | Commercial: | Lease financing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
ALLL at Period End | 4 | 0 | 0 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 71 | 0 | 0 |
Newly Designated TDRs | Consumer: | Residential Mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
ALLL at Period End | 21 | 19 | 22 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 493 | 254 | 280 |
Newly Designated TDRs | Consumer: | Residential home equity and direct | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
ALLL at Period End | 2 | 1 | 1 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 70 | 9 | 6 |
Newly Designated TDRs | Consumer: | Indirect auto | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
ALLL at Period End | 26 | 44 | 39 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 223 | 226 | 183 |
Newly Designated TDRs | Consumer: | Indirect other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
ALLL at Period End | 0 | 0 | 1 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 5 | 4 | 3 |
Newly Designated TDRs | Consumer: | Student | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
ALLL at Period End | 0 | 0 | 0 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 6 | 0 | 0 |
Newly Designated TDRs | Credit card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
ALLL at Period End | 10 | 9 | 8 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 28 | 18 | 18 |
Newly Designated TDRs | Rate | Commercial: | Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 49 | 56 | 74 |
Newly Designated TDRs | Rate | Commercial: | CRE | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 39 | 1 | 31 |
Newly Designated TDRs | Rate | Commercial: | Commercial construction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 0 | 36 | 1 |
Newly Designated TDRs | Rate | Commercial: | Lease financing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 1 | 0 | 0 |
Newly Designated TDRs | Rate | Consumer: | Residential Mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 374 | 224 | 250 |
Newly Designated TDRs | Rate | Consumer: | Residential home equity and direct | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 37 | 8 | 8 |
Newly Designated TDRs | Rate | Consumer: | Indirect auto | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 129 | 209 | 191 |
Newly Designated TDRs | Rate | Consumer: | Indirect other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 3 | 4 | 4 |
Newly Designated TDRs | Rate | Consumer: | Student | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 0 | 0 | 0 |
Newly Designated TDRs | Rate | Credit card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 29 | 24 | 18 |
Newly Designated TDRs | Structure | Commercial: | Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 93 | 11 | 62 |
Newly Designated TDRs | Structure | Commercial: | CRE | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 13 | 1 | 2 |
Newly Designated TDRs | Structure | Commercial: | Commercial construction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 0 | 0 | 1 |
Newly Designated TDRs | Structure | Commercial: | Lease financing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 70 | 0 | 0 |
Newly Designated TDRs | Structure | Consumer: | Residential Mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 112 | 27 | 30 |
Newly Designated TDRs | Structure | Consumer: | Residential home equity and direct | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 34 | 3 | 2 |
Newly Designated TDRs | Structure | Consumer: | Indirect auto | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 85 | 8 | 4 |
Newly Designated TDRs | Structure | Consumer: | Indirect other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 3 | 0 | 0 |
Newly Designated TDRs | Structure | Consumer: | Student | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 6 | 0 | 0 |
Newly Designated TDRs | Structure | Credit card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 0 | 0 | 0 |
Re-Modification of Previously Designated TDRs | Rate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | 41 | 53 | 120 |
Re-Modification of Previously Designated TDRs | Structure | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | $ 22 | $ 23 | $ 15 |
Loans and ACL - Summary of Nonp
Loans and ACL - Summary of Nonperforming Assets and Residential Mortgage Loans in the Process of Foreclosure (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable | |||
Nonperforming | [1] | $ 1,330 | $ 454 |
Foreclosed real estate | 20 | 82 | |
Other foreclosed property | 32 | 41 | |
Total nonperforming assets | 1,387 | 684 | |
Residential mortgage loans in the process of foreclosure | 140 | 409 | |
LHFS | |||
Financing Receivable | |||
Nonperforming | $ 5 | $ 107 | |
[1] | (1) Beginning January 1, 2020, nonperforming loans and leases include certain assets previously classified as PCI. |
Loans and ACL - Selected Inform
Loans and ACL - Selected Information About Loans and Leases (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable [Line Items] | ||
Unearned income, discounts and net deferred loan fees and costs, excluding PCI | $ 2,219 | $ 4,069 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Assets and Liabilities | ||
Total | $ 6,430 | $ 5,997 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (2,560) | (2,285) |
Property, Plant and Equipment, Net | 3,870 | 3,712 |
Land and land improvements | ||
Other Assets and Liabilities | ||
Total | 968 | 1,005 |
Buildings and building improvements | ||
Other Assets and Liabilities | ||
Total | $ 2,724 | 2,253 |
Estimated Useful Life (Years) | 40 years | |
Furniture and equipment | ||
Other Assets and Liabilities | ||
Total | $ 1,509 | 1,396 |
Furniture and equipment | Min | ||
Other Assets and Liabilities | ||
Estimated Useful Life (Years) | 3 years | |
Furniture and equipment | Max | ||
Other Assets and Liabilities | ||
Estimated Useful Life (Years) | 15 years | |
Leasehold improvements | ||
Other Assets and Liabilities | ||
Total | $ 978 | 995 |
Construction in progress | ||
Other Assets and Liabilities | ||
Total | 179 | 196 |
Finance leases | ||
Other Assets and Liabilities | ||
Total | $ 72 | $ 152 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Rollforward of Goodwill by Operating Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | $ 24,154 | $ 9,818 | $ 9,618 |
Goodwill, Acquired During Period | 450 | 14,342 | 201 |
Adjustments and other | (157) | (6) | (1) |
Goodwill, Ending Balance | 24,447 | 24,154 | 9,818 |
CB&W | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 14,040 | 3,906 | 3,907 |
Goodwill, Acquired During Period | 0 | 10,134 | 0 |
Adjustments and other | 1,801 | 0 | (1) |
Goodwill, Ending Balance | 15,841 | 14,040 | 3,906 |
C&CB | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 8,125 | 3,938 | 3,938 |
Goodwill, Acquired During Period | 0 | 4,187 | 0 |
Adjustments and other | (1,958) | 0 | 0 |
Goodwill, Ending Balance | 6,167 | 8,125 | 3,938 |
IH | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 1,989 | 1,974 | 1,773 |
Goodwill, Acquired During Period | 450 | 21 | 201 |
Adjustments and other | 0 | (6) | 0 |
Goodwill, Ending Balance | $ 2,439 | $ 1,989 | $ 1,974 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,817 | $ 4,282 |
Accumulated Amortization | (1,833) | (1,140) |
Net Carrying Amount | $ 2,984 | 3,142 |
CDI | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years 9 months 18 days | |
Gross Carrying Amount | $ 2,600 | 2,474 |
Accumulated Amortization | (852) | (365) |
Net Carrying Amount | $ 1,748 | 2,109 |
Other, primarily client relationship intangibles | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years 3 months 18 days | |
Gross Carrying Amount | $ 2,217 | 1,808 |
Accumulated Amortization | (981) | (775) |
Net Carrying Amount | $ 1,236 | $ 1,033 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Amortization of Identifiable Intangible Assets (Details) $ in Millions | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 584 |
2022 | 471 |
2023 | 392 |
2024 | 330 |
2025 | 273 |
Thereafter | $ 934 |
Loan Servicing - Residential Mo
Loan Servicing - Residential Mortgage Banking Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Servicing fees recognized from mortgage loans serviced for others | $ 8,879 | $ 5,255 | $ 4,876 |
Residential Mortgage | |||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
UPB of residential mortgage loan servicing portfolio | 239,034 | 279,558 | 118,605 |
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate | 188,341 | 219,347 | 87,270 |
Mortgage loans sold with recourse | 328 | 371 | 419 |
Maximum recourse exposure from mortgage loans sold with recourse liability | 201 | 212 | 223 |
Indemnification, recourse and repurchase reserves | 93 | 44 | 24 |
UPB of residential mortgage loans sold from LHFS | 48,366 | 16,646 | 10,094 |
Pre-tax gains recognized on mortgage loans sold and held for sale | $ 1,034 | $ 122 | $ 116 |
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others | 0.32% | 0.31% | 0.28% |
Weighted average interest rate on mortgage loans serviced for others | 3.84% | 4.04% | 4.04% |
Bank Servicing | Residential Mortgage | |||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Servicing fees recognized from mortgage loans serviced for others | $ 630 | $ 265 | $ 256 |
Loan Servicing - Analysis of Ac
Loan Servicing - Analysis of Activity in Residential MSRs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
MSRs, carrying value, beginning balance | $ 2,618 | ||
Change in fair value due to changes in valuation inputs or assumptions: | |||
MSRs, carrying value, ending balance | 2,023 | $ 2,618 | |
Residential MSRs | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
MSRs, carrying value, beginning balance | 2,371 | 957 | $ 914 |
Additions | 653 | 171 | 116 |
Change in fair value due to changes in valuation inputs or assumptions: | |||
Prepayment speeds | (572) | (131) | (12) |
OAS | 75 | 32 | 57 |
Servicing costs | 0 | 0 | 22 |
Realization of expected net servicing cash flows, passage of time and other | (749) | (164) | (140) |
MSRs, carrying value, ending balance | 1,778 | 2,371 | 957 |
Residential MSRs | Merger | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Additions | $ 0 | $ 1,506 | $ 0 |
Loan Servicing - Residential MS
Loan Servicing - Residential MSR Sensitivity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Residential MSRs | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 100.00% | 100.00% |
Residential MSRs | Min | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 12.80% | 8.40% |
OAS | 3.50% | 4.00% |
Residential MSRs | Max | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 30.80% | 18.60% |
OAS | 13.70% | 13.50% |
Residential MSRs | Weighted Average | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 15.40% | 9.60% |
Effect on fair value of a 10% increase | $ (89) | $ (102) |
Effect on fair value of a 20% increase | $ (171) | $ (195) |
OAS | 7.30% | 6.70% |
Effect on fair value of a 10% increase | $ (45) | $ (54) |
Effect on fair value of a 20% increase | $ (88) | $ (106) |
Weighted average life | 4 years 9 months 18 days | 5 years 4 months 24 days |
Fixed-rate residential mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 98.80% | 98.50% |
Adjustable-rate residential mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 1.20% | 1.50% |
Loan Servicing - Commercial Mor
Loan Servicing - Commercial Mortgage Banking Activities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Servicing Assets at Fair Value [Line Items] | ||
MSRs at fair value | $ 2,023 | $ 2,618 |
CRE | ||
Servicing Assets at Fair Value [Line Items] | ||
UPB of CRE mortgages serviced for others | 36,670 | 70,404 |
Mortgage loans sold with recourse | 9,019 | 8,676 |
Maximum recourse exposure from CRE mortgages sold with recourse liability | 2,624 | 2,479 |
Recorded reserves related to recourse exposure | 18 | 13 |
CRE mortgages originated during the year-to-date period | 6,739 | 8,062 |
MSRs at fair value | $ 245 | $ 247 |
Other Assets and Liabilites - N
Other Assets and Liabilites - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Narrative [Abstract] | ||
Bank-Owned Life Insurance | $ 6,500 | $ 6,400 |
Operating Leases Not Yet Commenced, Amount | $ 32 |
Other Assets and Liabilites - S
Other Assets and Liabilites - Schedule of Right of Use Assets and Future Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Right of Use Assets | ||
Right-of-Use Asset, Operating Leases | $ 1,333 | |
Right-of-Use Asset, Finance Leases | 36 | |
Operating Lease Liabilities, Payments Due | ||
2021 | 361 | |
2022 | 366 | |
2023 | 311 | |
2024 | 258 | |
2025 | 210 | |
Thereafter | 573 | |
Total lease payments, Operating Leases | 2,079 | |
Less: imputed interest, Operating Leases | $ 183 | |
Weighted Average Remaining Lease Term, Operating Leases | 6 years 10 months 24 days | |
Weighted Average Discount Rate, Percent, Operating Leases | 2.40% | |
Operating Lease, Cost | $ 360 | $ 209 |
Finance Lease Liabilities, Payments, Due | ||
2021 | 10 | |
2022 | 11 | |
2023 | 7 | |
2024 | 5 | |
2025 | 4 | |
Thereafter | 10 | |
Total lease payments, Finance Leases | 47 | |
Less: imputed interest, Finance Leases | 5 | |
Total lease liabilities, Finance Leases | $ 42 | |
Weighted Average Remaining Lease Term, Finance Leases | 6 years 3 months 18 days | |
Weighted Average Discount Rate, Percent, Finance Leases | 4.80% | |
Other Liabilities [Member] | ||
Other Assets and Liabilities | ||
Total lease liabilities, Operating Leases | $ 1,896 |
Other Assets and Liabilites -_2
Other Assets and Liabilites - Schedule of Assets Held Under Operating Leases and Related Activities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Assets and Liabilities | |||
Assets held under operating leases (1) | [1] | $ 2,144 | $ 2,236 |
Accumulated depreciation | (517) | (391) | |
Net | $ 1,627 | $ 1,845 | |
[1] | (1) Includes certain land parcels subject to operating leases that have indefinite lives. |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 127,629 | $ 92,405 |
Interest checking | 105,269 | 85,492 |
Money market and savings | 126,238 | 120,934 |
Time deposits | 21,941 | 35,896 |
Total deposits | 381,077 | 334,727 |
Time deposits greater than $250,000 | 3,296 | $ 9,362 |
2021 | 17,438 | |
2022 | 2,987 | |
2023 | 873 | |
2024 | 310 | |
2025 | 283 | |
Thereafter | $ 50 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Loss (gain) on early extinguishment of debt | $ 235 | $ 0 | $ 0 |
Borrowings - Short-term Borrowi
Borrowings - Short-term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Short-term Debt | $ 6,092 | $ 18,218 |
Federal Funds Purchased | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 79 | 259 |
Securities Sold under Agreements to Repurchase | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 1,221 | 1,969 |
FHLB Advances | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 2,649 | 13,480 |
Dealer Collateral | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 385 | 682 |
Master Notes | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 621 | 493 |
Other Short-term Borrowings | ||
Short-term Debt [Line Items] | ||
Short-term Debt | $ 1,137 | $ 1,335 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt, Interest Rates and Maturity Dates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Debt Instruments [Line Items] | |||
Long-term Debt, Carrying Amount | $ 39,597 | $ 41,339 | |
Truist Financial Corporation | |||
Debt Instruments [Line Items] | |||
Long-term Debt, Carrying Amount | $ 18,890 | 18,130 | |
Truist Financial Corporation | Senior notes | Fixed rate | |||
Debt Instruments [Line Items] | |||
Maturity Date Range, Start | Jan. 1, 2021 | ||
Maturity Date Range, End | Dec. 31, 2030 | ||
Effective Rate (1) | [1] | 2.52% | |
Long-term Debt, Carrying Amount | $ 15,984 | 14,431 | |
Truist Financial Corporation | Senior notes | Fixed rate | Min | |||
Debt Instruments [Line Items] | |||
Stated Rate | 1.13% | ||
Truist Financial Corporation | Senior notes | Fixed rate | Max | |||
Debt Instruments [Line Items] | |||
Stated Rate | 6.00% | ||
Truist Financial Corporation | Senior notes | Floating rate | |||
Debt Instruments [Line Items] | |||
Maturity Date Range, Start | Jan. 1, 2021 | ||
Maturity Date Range, End | Dec. 31, 2022 | ||
Effective Rate (1) | [1] | 0.64% | |
Long-term Debt, Carrying Amount | $ 900 | 1,749 | |
Truist Financial Corporation | Senior notes | Floating rate | Min | |||
Debt Instruments [Line Items] | |||
Stated Rate | 0.43% | ||
Truist Financial Corporation | Senior notes | Floating rate | Max | |||
Debt Instruments [Line Items] | |||
Stated Rate | 0.88% | ||
Truist Financial Corporation | Subordinated notes | Fixed rate | |||
Debt Instruments [Line Items] | |||
Maturity Date Range, Start | Jan. 1, 2022 | ||
Maturity Date Range, End | Dec. 31, 2029 | ||
Effective Rate (1) | [1],[2] | 3.78% | |
Long-term Debt, Carrying Amount | [2] | $ 1,283 | 1,227 |
Truist Financial Corporation | Subordinated notes | Fixed rate | Min | |||
Debt Instruments [Line Items] | |||
Stated Rate | [2] | 3.88% | |
Truist Financial Corporation | Subordinated notes | Fixed rate | Max | |||
Debt Instruments [Line Items] | |||
Stated Rate | [2] | 6.00% | |
Truist Financial Corporation | Capital Notes | |||
Debt Instruments [Line Items] | |||
Maturity Date Range, Start | Jan. 1, 2027 | ||
Maturity Date Range, End | Dec. 31, 2028 | ||
Effective Rate (1) | [1] | 1.69% | |
Long-term Debt, Carrying Amount | $ 615 | 611 | |
Truist Financial Corporation | Capital Notes | Min | |||
Debt Instruments [Line Items] | |||
Stated Rate | 0.87% | ||
Truist Financial Corporation | Capital Notes | Max | |||
Debt Instruments [Line Items] | |||
Stated Rate | 1.21% | ||
Truist Financial Corporation | Structured Notes | |||
Debt Instruments [Line Items] | |||
Maturity Date Range, Start | Jan. 31, 2021 | ||
Maturity Date Range, End | Dec. 31, 2026 | ||
Long-term Debt, Carrying Amount | [3] | $ 108 | 112 |
Truist Bank | Senior notes | Fixed rate | |||
Debt Instruments [Line Items] | |||
Maturity Date Range, Start | Jan. 1, 2021 | ||
Maturity Date Range, End | Dec. 31, 2025 | ||
Effective Rate (1) | [1] | 2.10% | |
Long-term Debt, Carrying Amount | $ 11,907 | 11,560 | |
Truist Bank | Senior notes | Fixed rate | Min | |||
Debt Instruments [Line Items] | |||
Stated Rate | 1.25% | ||
Truist Bank | Senior notes | Fixed rate | Max | |||
Debt Instruments [Line Items] | |||
Stated Rate | 4.05% | ||
Truist Bank | Senior notes | Floating rate | |||
Debt Instruments [Line Items] | |||
Maturity Date Range, Start | Jan. 1, 2022 | ||
Maturity Date Range, End | Dec. 31, 2037 | ||
Effective Rate (1) | [1] | 0.70% | |
Long-term Debt, Carrying Amount | $ 1,567 | 1,554 | |
Truist Bank | Senior notes | Floating rate | Min | |||
Debt Instruments [Line Items] | |||
Stated Rate | 0.80% | ||
Truist Bank | Senior notes | Floating rate | Max | |||
Debt Instruments [Line Items] | |||
Stated Rate | 0.83% | ||
Truist Bank | Subordinated notes | Fixed rate | |||
Debt Instruments [Line Items] | |||
Maturity Date Range, Start | Jan. 1, 2025 | ||
Maturity Date Range, End | Dec. 31, 2030 | ||
Effective Rate (1) | [1],[2] | 3.03% | |
Long-term Debt, Carrying Amount | [2] | $ 5,142 | 3,872 |
Truist Bank | Subordinated notes | Fixed rate | Min | |||
Debt Instruments [Line Items] | |||
Stated Rate | [2] | 2.25% | |
Truist Bank | Subordinated notes | Fixed rate | Max | |||
Debt Instruments [Line Items] | |||
Stated Rate | [2] | 3.80% | |
Truist Bank | FHLB advances | |||
Debt Instruments [Line Items] | |||
Maturity Date Range, Start | Jan. 1, 2021 | ||
Maturity Date Range, End | Dec. 31, 2034 | ||
Effective Rate (1) | [1] | 5.32% | |
Long-term Debt, Carrying Amount | $ 878 | 4,141 | |
Truist Bank | FHLB advances | Min | |||
Debt Instruments [Line Items] | |||
Stated Rate | 0.00% | ||
Truist Bank | FHLB advances | Max | |||
Debt Instruments [Line Items] | |||
Stated Rate | 5.36% | ||
Truist Bank | Other long-term debt | |||
Debt Instruments [Line Items] | |||
Long-term Debt, Carrying Amount | [4] | $ 1,014 | 1,133 |
Nonbank | Other long-term debt | |||
Debt Instruments [Line Items] | |||
Long-term Debt, Carrying Amount | [5] | $ 199 | $ 949 |
[1] | Includes the impact of debt issuance costs and purchase accounting, and excludes hedge accounting impacts. | ||
[2] | 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. | ||
[3] | Consist of notes with various terms that include fixed or floating rate interest, or returns that are linked to an equity index. | ||
[4] | Includes finance leases, tax credit investments, and other. | ||
[5] | Includes debt associated with structured real estate leases. |
Long-Term Debt - Schedule of Fu
Long-Term Debt - Schedule of Future Maturities of Long-Term Debt (Details) $ in Millions | Dec. 31, 2020USD ($) | [1] |
Debt Disclosure [Abstract] | ||
2021 | $ 5,373 | |
2022 | 9,236 | |
2023 | 5,139 | |
2024 | 5,309 | |
2025 | 5,797 | |
Thereafter | $ 8,748 | |
[1] | Amounts include imputed interest of $5 million related to finance leases. |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 06, 2019 | Jul. 29, 2019 | |
Class of Stock [Line Items] | ||||||
Stock and Warrants Issued During Period, Value, Preferred Stock and Warrants | $ 3,500 | |||||
Preferred Stock, Value, Issued | $ 2,000 | |||||
Preferred Stock, Value, Redeemed | 500 | $ 1,725 | ||||
Difference in redemption price and carrying value | 46 | |||||
Proceeds from Issuance of Preferred Stock and Preference Stock | 3,449 | $ 1,683 | $ 0 | |||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 2,000 | |||||
Repurchase of common stock | $ 1,200 | |||||
Number of shares repurchased | 23,200 | |||||
Series D Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Stock Redeemed or Called During Period, Shares | 23 | |||||
Series E Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Stock Redeemed or Called During Period, Shares | 46 | |||||
Redeemable preferred stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Value, Redeemed | $ (1,700) | |||||
Series K Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Stock Redeemed or Called During Period, Shares | 5 | |||||
Preferred Stock, Value, Redeemed | $ (500) | |||||
Series N | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Value, Issued | $ 1,700 | |||||
Series F | Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Stock Redeemed or Called During Period, Shares | 18 | |||||
Preferred Stock, Value, Redeemed | $ (450) | |||||
Series G | Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Stock Redeemed or Called During Period, Shares | 20 | |||||
Preferred Stock, Value, Redeemed | $ (500) |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Cash Dividends Declared per Share (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Cash dividends declared per share | $ 1.80 | $ 1.71 | $ 1.56 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Preferred Stock (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Class of Stock [Line Items] | |||
Liquidation Amount | $ 8,141 | ||
Preferred Stock, Including Additional Paid in Capital, Net of Discount | 8,048 | $ 5,102 | |
Series F | |||
Class of Stock [Line Items] | |||
Liquidation Amount | 450 | ||
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 437 | ||
Dividend Rate | 5.20% | ||
Series G | |||
Class of Stock [Line Items] | |||
Liquidation Amount | $ 500 | ||
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 486 | ||
Dividend Rate | 5.20% | ||
Series H | |||
Class of Stock [Line Items] | |||
Liquidation Amount | $ 465 | ||
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 451 | ||
Dividend Rate | 5.625% | ||
Series I | |||
Class of Stock [Line Items] | |||
Liquidation Amount | [1] | $ 173 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | [1] | $ 168 | |
Dividend Rate | [1],[2] | 4.00% | |
Series J | |||
Class of Stock [Line Items] | |||
Liquidation Amount | [1] | $ 103 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | [1] | $ 92 | |
Dividend Rate | [1],[3] | 4.00% | |
Series L | |||
Class of Stock [Line Items] | |||
Liquidation Amount | [1] | $ 750 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | [1] | $ 766 | |
Dividend Rate | [1],[4],[5] | 5.05% | |
Series M | |||
Class of Stock [Line Items] | |||
Liquidation Amount | [1] | $ 500 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | [1] | $ 516 | |
Dividend Rate | [1],[6],[7] | 5.125% | |
Series N | |||
Class of Stock [Line Items] | |||
Liquidation Amount | $ 1,700 | ||
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 1,683 | ||
Dividend Rate | [8] | 4.80% | |
Series O Preferred Stock | |||
Class of Stock [Line Items] | |||
Liquidation Amount | $ 575 | ||
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 559 | ||
Dividend Rate | 5.25% | ||
Series R Preferred Stock [Domain] | |||
Class of Stock [Line Items] | |||
Liquidation Amount | $ 925 | ||
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 906 | ||
Dividend Rate | 4.75% | ||
Series P Preferred Stock | |||
Class of Stock [Line Items] | |||
Liquidation Amount | $ 1,000 | ||
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 992 | ||
Dividend Rate | [9] | 4.95% | |
Series Q Preferred Stock | |||
Class of Stock [Line Items] | |||
Liquidation Amount | $ 1,000 | ||
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 992 | ||
Dividend Rate | [10] | 5.10% | |
[1] | Converted security from previously issued SunTrust preferred stock. | ||
[2] | Dividend rate is the greater of 4.00% or 3-month LIBOR plus 0.530% | ||
[3] | Dividend rate is the greater of 4.00% or 3-month LIBOR plus 0.645%. | ||
[4] | Dividend payments become quarterly beginning on September 15, 2022. | ||
[5] | Fixed dividend rate will reset on June 15, 2022, then dividend rate will be 3-month LIBOR plus 3.102%. | ||
[6] | Dividend payments become quarterly after dividend rate reset. | ||
[7] | Fixed dividend rate will reset on December 15, 2027, then dividend rate will be 3-month LIBOR plus 2.786%. | ||
[8] | Fixed 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%. | ||
[9] | Fixed dividend rate will reset on December 1, 2025, and on each following fifth anniversary of the reset date to the five-year U.S. Treasury rate plus 4.605%. | ||
[10] | Fixed dividend rate will reset on September 1, 2030, and on each following tenth anniversary of the reset date to the ten-year U.S. Treasury rate plus 4.349%. |
AOCI (Details)
AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amounts reclassified from AOCI: | |||
OCI | $ 1,560 | $ 871 | $ (248) |
Pension and OPEB Costs | |||
AOCI, Net of Tax [Roll Forward] | |||
AOCI, beginning balance | (1,122) | (1,164) | (1,004) |
OCI before reclassifications, net of tax | 190 | (42) | (217) |
Amounts reclassified from AOCI: | |||
OCI | 247 | 42 | (160) |
AOCI, ending balance | (875) | (1,122) | (1,164) |
Pension and OPEB Costs | Amounts reclassified from AOCI | |||
Amounts reclassified from AOCI: | |||
Before tax | 75 | 111 | 75 |
Tax effect | 18 | 27 | 18 |
Amounts reclassified, net of tax | 57 | 84 | 57 |
Cash Flow Hedges | |||
AOCI, Net of Tax [Roll Forward] | |||
AOCI, beginning balance | (101) | (31) | (92) |
OCI before reclassifications, net of tax | 1 | (89) | 52 |
Amounts reclassified from AOCI: | |||
OCI | 37 | (70) | 61 |
AOCI, ending balance | (64) | (101) | (31) |
Cash Flow Hedges | Amounts reclassified from AOCI | |||
Amounts reclassified from AOCI: | |||
Before tax | 48 | 25 | 12 |
Tax effect | 12 | 6 | 3 |
Amounts reclassified, net of tax | 36 | 19 | 9 |
AFS Securities | |||
AOCI, Net of Tax [Roll Forward] | |||
AOCI, beginning balance | 380 | (500) | (356) |
OCI before reclassifications, net of tax | 1,298 | 790 | (159) |
Amounts reclassified from AOCI: | |||
OCI | 1,274 | 880 | (144) |
AOCI, ending balance | 1,654 | 380 | (500) |
AFS Securities | Amounts reclassified from AOCI | |||
Amounts reclassified from AOCI: | |||
Before tax | (32) | 119 | 20 |
Tax effect | (8) | 29 | 5 |
Amounts reclassified, net of tax | (24) | 90 | 15 |
Other, net | |||
AOCI, Net of Tax [Roll Forward] | |||
AOCI, beginning balance | (1) | (20) | (15) |
OCI before reclassifications, net of tax | 2 | 18 | (6) |
Amounts reclassified from AOCI: | |||
OCI | 2 | 19 | (5) |
AOCI, ending balance | 1 | (1) | (20) |
Other, net | Amounts reclassified from AOCI | |||
Amounts reclassified from AOCI: | |||
Before tax | 0 | 1 | 1 |
Tax effect | 0 | 0 | 0 |
Amounts reclassified, net of tax | 0 | 1 | 1 |
Total | |||
AOCI, Net of Tax [Roll Forward] | |||
AOCI, beginning balance | (844) | (1,715) | (1,467) |
OCI before reclassifications, net of tax | 1,491 | 677 | (330) |
Amounts reclassified from AOCI: | |||
OCI | 1,560 | 871 | (248) |
AOCI, ending balance | 716 | (844) | (1,715) |
Total | Amounts reclassified from AOCI | |||
Amounts reclassified from AOCI: | |||
Before tax | 91 | 256 | 108 |
Tax effect | 22 | 62 | 26 |
Amounts reclassified, net of tax | $ 69 | $ 194 | $ 82 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Contingency [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 123 | $ 130 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 100 | 99 |
Unrecognized Tax Benefits, Interest and Penalties on Income Taxes Accrued | 12 | 11 |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 15 | |
State and Local Jurisdiction [Member] | ||
Income Tax Contingency [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 123 | $ 130 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current expense: | |||
Federal | $ 979 | $ 357 | $ 629 |
State | 155 | 97 | 151 |
Total current expense | 1,134 | 454 | 780 |
Deferred expense: | |||
Federal | (131) | 290 | 26 |
State | (22) | 38 | (3) |
Total deferred expense | (153) | 328 | 23 |
Provision for income taxes | $ 981 | $ 782 | $ 803 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation Between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Income Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes at statutory rate | $ 1,149 | $ 844 | $ 853 |
Increase (decrease) in provision for income taxes as a result of: | |||
State income taxes, net of federal tax benefit | 105 | 107 | 117 |
Income tax credits, net of amortization | (178) | (86) | (57) |
Tax-exempt interest | (99) | (69) | (90) |
Federal tax reform impact | 0 | 0 | (27) |
Other, net | 4 | (14) | 7 |
Provision for income taxes | $ 981 | $ 782 | $ 803 |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent [Abstract] | |||
Federal Income Taxes at Stuatory Rate, Percent | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal tax benefit | 1.90% | 2.70% | 2.90% |
Income tax credits, net of amortization | (3.30%) | (2.10%) | (1.40%) |
Tax-exempt interest | (1.80%) | (1.80%) | (2.20%) |
Federal tax reform impact | 0 | 0 | (0.007) |
Other, net | 0.10% | (0.30%) | 0.20% |
Effective Income Tax Rate, Percent | 17.90% | 19.50% | 19.80% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
DTAs: | ||
ALLL | $ 1,376 | $ 366 |
Employee compensation and benefits | 698 | 721 |
Loans | 369 | 753 |
Operating lease liability | 469 | 225 |
Accruals and reserves | 305 | 322 |
Federal and state NOLs and other carryforwards | 149 | 156 |
Net unrealized losses in AOCI | 0 | 257 |
Other | 57 | 77 |
Total gross DTAs | 3,423 | 2,877 |
Deferred Tax Assets, Valuation Allowance | (123) | (130) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 3,300 | 2,747 |
DTLs: | ||
Pension | 1,299 | 1,167 |
Goodwill and other intangible assets | 688 | 694 |
Equipment and auto leasing | 599 | 932 |
MSRs | 459 | 491 |
ROU assets | 327 | 146 |
Net unrealized gains in AOCI | 222 | 0 |
Premises and equipment | 147 | 162 |
Partnerships | 84 | 23 |
Other | 48 | 144 |
Total DTLs | 3,873 | 3,759 |
Net DTL | $ (573) | $ (1,012) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Unrecognized Tax Benefits, Beginning Balance | $ 127 | $ 2 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 4 | 120 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (1) | 0 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 18 | 6 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (13) | (1) |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (2) | 0 |
Unrecognized Tax Benefits, Ending Balance | $ 133 | $ 127 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Number of Highest Consecutive Years of Earnings | 5 years | ||||
Defined benefit plan, final years of employment subject to earnings test | 10 years | ||||
Expected long-term rate of return on plan assets | 6.90% | 7.00% | 7.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 50.00% | ||||
Defined Contribution Plan, Minimum Age of Employees Covered | 21 years | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Compensation, Maximum | 6.00% | ||||
Defined Contribution Plan, Employer Contribution Expense | $ 272 | $ 152 | $ 141 | ||
Fair value of plan assets | 13,859 | 12,012 | |||
Alternative Investments [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Fair value of plan assets | 773 | 341 | |||
Subsequent Event | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Discretionary contributions | $ 387 | ||||
Forecast | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Expected long-term rate of return on plan assets | 6.70% | ||||
Qualified Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Fair value of plan assets | $ 14,635 | $ 12,398 | $ 5,968 |
Benefit Plans - Summary of the
Benefit Plans - Summary of the Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net periodic pension cost: | ||||
Service cost | $ 518 | $ 214 | $ 238 | |
Interest cost | 313 | 233 | 201 | |
Estimated return on plan assets | (866) | (480) | (448) | |
Net amortization and other | 76 | 111 | 81 | |
Net periodic (benefit) cost | 41 | 78 | 72 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Net actuarial loss (gain) | (244) | 34 | 289 | |
Net amortization | (77) | (110) | (81) | |
Net amount recognized in OCI | (321) | (76) | 208 | |
Total net periodic pension costs (income) recognized in total comprehensive income, pre-tax | $ (280) | $ 2 | $ 280 | |
Weighted average assumptions used to determine net periodic pension cost: | ||||
Discount rate | 3.45% | 4.43% | 3.79% | |
Expected long-term rate of return on plan assets | 6.90% | 7.00% | 7.00% | |
Assumed long-term rate of annual compensation increases | 4.50% | 4.50% | 4.50% | |
SunTrust Banks Inc. | ||||
Weighted average assumptions used to determine net periodic pension cost: | ||||
Discount rate | 3.22% | |||
Expected long-term rate of return on plan assets | 6.90% |
Benefit Plans - Changes in Proj
Benefit Plans - Changes in Projected Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Service cost | $ 518 | $ 214 | $ 238 | |||
Interest cost | 313 | 233 | 201 | |||
Forecast | ||||||
Weighted average assumptions used to determine projected benefit obligations: | ||||||
Weighted average assumed discount rate | 4.50% | 3.50% | ||||
Qualified Plan | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Projected benefit obligation, beginning balance | 8,819 | 4,697 | ||||
Service cost | 479 | 199 | ||||
Interest cost | 294 | 216 | ||||
Actuarial loss | 985 | 1,042 | ||||
Benefits paid | (300) | (135) | ||||
Projected benefit obligation from Merger | 0 | 2,800 | ||||
Defined Benefit Plan, Cost of Providing Special and Contractual Termination Benefits | 0 | 0 | ||||
Projected benefit obligation, ending balance | 10,277 | 8,819 | 4,697 | |||
Accumulated benefit obligation, end of year | $ 9,044 | $ 7,859 | ||||
Weighted average assumptions used to determine projected benefit obligations: | ||||||
Weighted average assumed discount rate | 2.94% | 3.45% | ||||
Assumed rate of annual compensation increases (1) | [1] | 3.50% | 4.50% | |||
Qualified Plan | SunTrust Banks Inc. | ||||||
Weighted average assumptions used to determine projected benefit obligations: | ||||||
Weighted average assumed discount rate | 3.22% | |||||
Nonqualified Plans | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Projected benefit obligation, beginning balance | $ 557 | $ 386 | ||||
Service cost | 39 | 15 | ||||
Interest cost | 19 | 17 | ||||
Actuarial loss | 68 | 79 | ||||
Benefits paid | (22) | (13) | ||||
Projected benefit obligation from Merger | 0 | 72 | ||||
Defined Benefit Plan, Cost of Providing Special and Contractual Termination Benefits | 0 | 1 | ||||
Projected benefit obligation, ending balance | 661 | 557 | $ 386 | |||
Accumulated benefit obligation, end of year | $ 503 | $ 432 | ||||
Weighted average assumptions used to determine projected benefit obligations: | ||||||
Weighted average assumed discount rate | 2.94% | 3.45% | ||||
Assumed rate of annual compensation increases (1) | [1] | 3.50% | 4.50% | |||
Nonqualified Plans | SunTrust Banks Inc. | ||||||
Weighted average assumptions used to determine projected benefit obligations: | ||||||
Weighted average assumed discount rate | 3.22% | |||||
[1] | The assumed rate for qualified and nonqualified plans is 3.50% in 2021 and increases to 4.50% thereafter. |
Benefit Plans - Changes in Fair
Benefit Plans - Changes in Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning balance | $ 12,012 | |
Fair value of plan assets, ending balance | 13,859 | $ 12,012 |
Qualified Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning balance | 12,398 | 5,968 |
Actual return on plan assets | 2,164 | 1,566 |
Employer contributions | 373 | 1,696 |
Benefits paid | (300) | (135) |
Fair value of plan assets from Merger | 0 | 3,303 |
Fair value of plan assets, ending balance | 14,635 | 12,398 |
Funded status, end of year | 4,358 | 3,579 |
Nonqualified Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning balance | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 22 | 13 |
Benefits paid | (22) | (13) |
Fair value of plan assets from Merger | 0 | 0 |
Fair value of plan assets, ending balance | 0 | 0 |
Funded status, end of year | $ (661) | $ (557) |
Benefit Plans - Schedule of Pre
Benefit Plans - Schedule of Pre-tax Amounts recognized in AOCI (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Qualified Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prior service credit (cost) | $ (90) | $ (114) |
Net actuarial loss | (858) | (1,218) |
Net amount recognized | (948) | (1,332) |
Nonqualified Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prior service credit (cost) | 77 | 96 |
Net actuarial loss | (263) | (217) |
Net amount recognized | $ (186) | $ (121) |
Benefit Plans - Schedule of Amo
Benefit Plans - Schedule of Amounts Expected to be Amortized from AOCI into Net Periodic Pension Cost During Next Fiscal Year (Details) $ in Millions | Dec. 31, 2020USD ($) |
Qualified Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ 0 |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | (25) |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year | (25) |
Nonqualified Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | (28) |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | 19 |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year | $ (9) |
Benefit Plans - Schedule of Est
Benefit Plans - Schedule of Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Qualified Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 305 |
2022 | 324 |
2023 | 342 |
2024 | 360 |
2025 | 381 |
2026-2030 | 2,205 |
Nonqualified Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 22 |
2022 | 23 |
2023 | 31 |
2024 | 26 |
2025 | 27 |
2026-2030 | $ 160 |
Benefit Plans - Schedule of Fai
Benefit Plans - Schedule of Fair Value of Pension Plan Assets by Three Level Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 13,859 | $ 12,012 | |
Cash and cash-equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 290 | 295 | |
U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | [1] | 6,587 | 5,336 |
International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,614 | 1,752 | |
Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,368 | 4,629 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,192 | 4,263 | |
Level 1 | Cash and cash-equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 290 | 295 | |
Level 1 | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | [1] | 3,531 | 3,629 |
Level 1 | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 360 | 328 | |
Level 1 | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 11 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,667 | 7,749 | |
Level 2 | Cash and cash-equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | [1] | 3,056 | 1,707 |
Level 2 | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,254 | 1,424 | |
Level 2 | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 5,357 | $ 4,618 | |
Minimum | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | [1] | 30.00% | |
Minimum | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 11.00% | ||
Minimum | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35.00% | ||
Maximum | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | [1] | 50.00% | |
Maximum | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 18.00% | ||
Maximum | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 53.00% | ||
[1] | The plan may hold up to 10% of its assets in Truist common stock. |
Benefit Plans - Summary of Equi
Benefit Plans - Summary of Equity-Based Compensation Plans (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2020shares | |
Units/Shares | |
Shares available for future grants (in thousands) | 19,815 |
Min | |
Units/Shares | |
Vesting period | 1 year |
Max | |
Units/Shares | |
Vesting period | 5 years |
Benefit Plans - Summary of Eq_2
Benefit Plans - Summary of Equity-Based Compensation - (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Equity-based compensation expense | $ 353 | $ 165 | $ 141 |
Income tax benefit from equity-based compensation expense | 84 | 38 | 34 |
Intrinsic value of options exercised, and RSUs and PSUs that vested during the year | 412 | 216 | 260 |
Grant date fair value of equity-based awards that vested during the year | 420 | 134 | 139 |
Unrecognized compensation cost related to equity-based awards | $ 234 | $ 274 | $ 135 |
Weighted-average life over which compensation cost is expected to be recognized | 2 years 3 months 18 days | 2 years 3 months 18 days | 2 years 4 months 24 days |
Benefit Plans - Rollforward of
Benefit Plans - Rollforward of RSUs, PSUs and Restricted Shares - (Details) - RSUs, PSUs and Restricted Shares shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Units/Shares | |
Nonvested, beginning balance (in units/shares) | shares | 20,061 |
Granted (in units/shares) | shares | 7,692 |
Vested (in units/shares) | shares | (8,883) |
Forfeited (in units/shares) | shares | (782) |
Nonvested, ending balance (in units/shares) | shares | 18,088 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 47.93 |
Wtd. Avg. Grant Date Fair Value | |
Nonvested, beginning balance (in usd per units/share) | 46.25 |
Granted (in usd per units/share) | 47.33 |
Vested (in usd per units/share) | 47.24 |
Forfeited (in usd per units/share) | 51.22 |
Nonvested, ending balance (in usd per units/share) | $ 47.93 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative - (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Commitments [Line Items] | ||
Assets | $ 509,228 | $ 473,078 |
Other Liabilities | 11,550 | 12,236 |
Trading assets at fair value | 3,872 | 5,733 |
Variable Interest Entity & TRS Contracts | ||
Other Commitments [Line Items] | ||
Assets | 1,300 | 2,700 |
Other Liabilities | 41 | 116 |
Trading assets at fair value | 1,300 | $ 2,600 |
Min | ||
Loss Contingency [Abstract] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 0 | |
Max | ||
Loss Contingency [Abstract] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 200 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments in affordable housing projects | ||
Tax Credit and Certain Equity Investments | ||
Carrying amount | $ 3,823 | $ 3,684 |
Amount of future funding commitments included in carrying amount | 1,057 | 1,271 |
Lending exposure | 546 | 647 |
Renewable Energy Investments | ||
Tax Credit and Certain Equity Investments | ||
Carrying amount | 167 | 81 |
Amount of future funding commitments not included in carrying amount | 76 | 246 |
Private equity and certain other equity method investments: | ||
Tax Credit and Certain Equity Investments | ||
Carrying amount | 1,574 | 1,556 |
Amount of future funding commitments not included in carrying amount | $ 471 | $ 331 |
Commitments and Contingencies_3
Commitments and Contingencies - Tax Credits and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in affordable housing projects | |||
Income Tax Contingency [Line Items] | |||
Investment tax credit | $ 454 | $ 284 | $ 262 |
Amortization and other changes in carrying amount | 455 | 279 | 260 |
Other Community Development Investment | |||
Income Tax Contingency [Line Items] | |||
Investment tax credit | 96 | 39 | 0 |
Amortization and other changes in carrying amount | 81 | 28 | 0 |
Renewable energy investments | |||
Income Tax Contingency [Line Items] | |||
Investment tax credit | 159 | 0 | 0 |
Amortization and other changes in carrying amount | $ 4 | $ 4 | $ 0 |
Commitments and Contingencies_4
Commitments and Contingencies - Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Residential Mortgage | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Notional amount | $ 328 | $ 371 | $ 419 |
CRE | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Notional amount | 9,019 | 8,676 | |
Commitments to extend, originate or purchase credit | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Notional amount | 186,731 | 177,598 | |
Letters of credit | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Notional amount | $ 5,066 | $ 5,181 |
Commitments and Contingencies_5
Commitments and Contingencies - Pledged Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Pledged securities | $ 24,974 | $ 11,283 |
Federal Reserve Bank Advances [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Pledged loans | 75,615 | 30,238 |
Line of Credit Facility, Remaining Borrowing Capacity | 52,831 | 21,169 |
FHLB Advances | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Pledged loans | 69,994 | 80,816 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 52,274 | $ 37,303 |
Regulatory Requirements and O_3
Regulatory Requirements and Other Restrictions Regulatory Requirements (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Truist Financial Corporation | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tangible Capital Required for Capital Adequacy to Tangible Assets | 0.040 | ||
Banking Regulation, Supplementary Leverage Ratio, Capital Adequacy, Minimum | 0.030 | ||
CET1 Capital: | |||
Actual Capital, Ratio | 0.100 | 0.095 | |
Actual Capital, Amount | $ 37,869 | $ 35,643 | |
Tier 1 Capital: | |||
Actual Capital, Ratio | 0.121 | 0.108 | |
Actual Capital, Amount | $ 45,915 | $ 40,743 | |
Total Capital: | |||
Actual Capital, Ratio | 0.145 | 0.126 | |
Actual Capital, Amount | $ 55,011 | $ 47,511 | |
Leverage Capital: | |||
Actual Capital, Ratio | [1] | 0.096 | 0.147 |
Actual Capital, Amount | [1] | $ 45,915 | $ 40,743 |
Actual Capital, Ratio | [2] | 0.087 | |
Supplementary Leverage Capital: | |||
Actual Capital, Ratio | [2] | 0.087 | |
Actual Capital, Amount | [2] | $ 45,915 | |
Truist Financial Corporation | Min | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | ||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 0.060 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.080 | ||
Stressed Capital Conservation Buffer | 2.70% | ||
Truist Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Banking Regulation, Capital Conservation Buffer, Capital Conserved, Minimum | 0.025 | ||
CET1 Capital: | |||
Actual Capital, Ratio | 0.110 | 0.106 | |
Actual Capital, Amount | $ 40,642 | $ 38,739 | |
Tier 1 Capital: | |||
Actual Capital, Ratio | 0.110 | 0.106 | |
Actual Capital, Amount | $ 40,642 | $ 38,739 | |
Total Capital: | |||
Actual Capital, Ratio | 0.130 | 0.120 | |
Actual Capital, Amount | $ 47,882 | $ 43,984 | |
Leverage Capital: | |||
Actual Capital, Ratio | [1] | 0.087 | 0.145 |
Actual Capital, Amount | [1] | $ 40,642 | $ 38,739 |
Actual Capital, Ratio | [2] | 0.075 | |
Supplementary Leverage Capital: | |||
Actual Capital, Ratio | [2] | 0.075 | |
Actual Capital, Amount | [2] | $ 40,642 | |
[1] | The leverage ratio is calculated using end of period Tier 1 capital and quarterly average tangible assets. The timing of the Merger impacted the 4Q19 result. | ||
[2] | Truist became subject to the supplementary leverage ratio as of January 1, 2020. |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Investments excluded from Fair Value Hierarchy, net asset value practical expedient | $ 314 | |
Loans Held-for-sale | 4,955 | $ 5,673 |
Carrying value of unfunded commitments | 364 | 373 |
Nonperforming | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale | 5 | 107 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale | 125 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale | $ 0 | $ 0 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Trading assets | $ 3,872 | $ 5,733 | |
AFS securities | 120,788 | 74,727 | |
Loans Held for Sale, Fair Value | 4,955 | 5,673 | |
MSRs at fair value | 2,023 | 2,618 | |
Derivative Asset, Net | 3,837 | 2,053 | |
Derivative Asset, Gross | 5,841 | 4,260 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (2,004) | (2,207) | |
Equity securities | 1,054 | 817 | |
Private equity investments | 440 | ||
Total assets | 136,529 | 92,061 | |
Liabilities | |||
Derivative liabilities | 555 | 366 | |
Derivative Liability, Gross | 3,663 | 3,336 | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (3,108) | (2,970) | |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 1,115 | 1,074 | |
Total liabilities | 1,670 | 1,440 | |
Level 1 | |||
Assets | |||
Trading assets | 123 | 90 | |
AFS securities | 0 | 0 | |
Loans Held for Sale, Fair Value | 0 | 0 | |
MSRs at fair value | 0 | 0 | |
Derivative Asset, Gross | 752 | 606 | |
Equity securities | 996 | 815 | |
Private equity investments | 0 | ||
Total assets | 1,871 | 1,511 | |
Liabilities | |||
Derivative Liability, Gross | 386 | 204 | |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 3 | 18 | |
Total liabilities | 389 | 222 | |
Level 2 | |||
Assets | |||
Trading assets | 3,749 | 5,643 | |
AFS securities | 120,788 | 74,359 | |
Loans Held for Sale, Fair Value | 4,955 | 5,673 | |
MSRs at fair value | 0 | 0 | |
Derivative Asset, Gross | 4,903 | 3,620 | |
Equity securities | 58 | 2 | |
Private equity investments | 0 | ||
Total assets | 134,453 | 89,297 | |
Liabilities | |||
Derivative Liability, Gross | 3,263 | 3,117 | |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 1,112 | 1,056 | |
Total liabilities | 4,375 | 4,173 | |
Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 368 | |
Loans Held for Sale, Fair Value | 0 | 0 | |
MSRs at fair value | 2,023 | 2,618 | |
Derivative Asset, Gross | 186 | 34 | |
Equity securities | 0 | 0 | |
Private equity investments | 440 | ||
Total assets | 2,209 | 3,460 | |
Liabilities | |||
Derivative Liability, Gross | 14 | 15 | |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 0 | 0 | |
Total liabilities | 14 | 15 | |
U.S. Treasury | |||
Assets | |||
Trading assets | 793 | 227 | |
AFS securities | 1,746 | 2,276 | |
U.S. Treasury | Level 1 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
U.S. Treasury | Level 2 | |||
Assets | |||
Trading assets | 793 | 227 | |
AFS securities | 1,746 | 2,276 | |
U.S. Treasury | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
GSE | |||
Assets | |||
Trading assets | 164 | 296 | |
AFS securities | 1,917 | 1,881 | |
GSE | Level 1 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
GSE | Level 2 | |||
Assets | |||
Trading assets | 164 | 296 | |
AFS securities | 1,917 | 1,881 | |
GSE | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Agency MBS | Agency MBS - residential | |||
Assets | |||
Trading assets | 599 | 497 | |
AFS securities | 113,541 | 68,236 | |
Agency MBS | Commercial Mortgage Backed Securities | |||
Assets | |||
Trading assets | 21 | 68 | |
AFS securities | 3,057 | 1,341 | |
Agency MBS | Level 1 | Agency MBS - residential | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Agency MBS | Level 1 | Commercial Mortgage Backed Securities | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Agency MBS | Level 2 | Agency MBS - residential | |||
Assets | |||
Trading assets | 599 | 497 | |
AFS securities | 113,541 | 68,236 | |
Agency MBS | Level 2 | Commercial Mortgage Backed Securities | |||
Assets | |||
Trading assets | 21 | 68 | |
AFS securities | 3,057 | 1,341 | |
Agency MBS | Level 3 | Agency MBS - residential | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Agency MBS | Level 3 | Commercial Mortgage Backed Securities | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
States and political subdivisions | |||
Assets | |||
Trading assets | 34 | 82 | |
AFS securities | 493 | 585 | |
States and political subdivisions | Level 1 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
States and political subdivisions | Level 2 | |||
Assets | |||
Trading assets | 34 | 82 | |
AFS securities | 493 | 585 | |
States and political subdivisions | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Non-agency MBS | |||
Assets | |||
Trading assets | 277 | ||
AFS securities | 368 | ||
Non-agency MBS | Level 1 | |||
Assets | |||
Trading assets | 0 | ||
AFS securities | 0 | ||
Non-agency MBS | Level 2 | |||
Assets | |||
Trading assets | 277 | ||
AFS securities | 0 | ||
Non-agency MBS | Level 3 | |||
Assets | |||
Trading assets | 0 | ||
AFS securities | 368 | ||
Corporate and other debt securities | |||
Assets | |||
Trading assets | 545 | 1,204 | |
Corporate and other debt securities | Level 1 | |||
Assets | |||
Trading assets | 0 | 0 | |
Corporate and other debt securities | Level 2 | |||
Assets | |||
Trading assets | 545 | 1,204 | |
Corporate and other debt securities | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
Loans | |||
Assets | |||
Trading assets | 1,586 | 2,948 | |
Loans | Level 1 | |||
Assets | |||
Trading assets | 0 | 0 | |
Loans | Level 2 | |||
Assets | |||
Trading assets | 1,586 | 2,948 | |
Loans | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
Other | |||
Assets | |||
Trading assets | 130 | 134 | |
AFS securities | 34 | 40 | |
Other | Level 1 | |||
Assets | |||
Trading assets | 123 | 90 | |
AFS securities | 0 | 0 | |
Other | Level 2 | |||
Assets | |||
Trading assets | 7 | 44 | |
AFS securities | 34 | 40 | |
Other | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Fair Value, Concentration of Credit Risk, Master Netting Arrangements | |||
Assets | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1] | (2,004) | (2,207) |
Liabilities | |||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1] | $ 3,108 | $ 2,970 |
[1] | Refer to "Note 19. 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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Trading Assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 0 | $ 3 | $ 0 |
Included in earnings | 0 | 0 | 0 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | |
Purchases | 0 | 23 | 5 |
Issuances | 0 | 0 | 0 |
Sales | 0 | (26) | (2) |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | ||
Transfers out of level 3 and other | 0 | ||
Merger additions | 0 | ||
Ending balance | 0 | 0 | 3 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 0 | ||
Non-agency MBS | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 368 | 391 | 432 |
Included in earnings | 306 | 13 | 9 |
Included in unrealized net holding gains (losses) in OCI | (178) | 4 | |
Purchases | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Sales | (481) | 0 | 0 |
Settlements | (15) | (40) | (50) |
Transfers into Level 3 | 0 | ||
Transfers out of level 3 and other | 0 | ||
Merger additions | 0 | ||
Ending balance | 0 | 368 | 391 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 0 | ||
MSRs | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 2,618 | 1,108 | 1,056 |
Included in earnings | (550) | (105) | 71 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | |
Purchases | 0 | 31 | 0 |
Issuances | 711 | 170 | 152 |
Sales | 0 | (27) | 0 |
Settlements | (756) | (164) | (171) |
Transfers into Level 3 | 0 | ||
Transfers out of level 3 and other | 0 | ||
Merger additions | 1,605 | ||
Ending balance | 2,023 | 2,618 | 1,108 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | (535) | ||
Net Derivatives | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 19 | 12 | 3 |
Included in earnings | 467 | 63 | 11 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | |
Purchases | 0 | (1) | 0 |
Issuances | 780 | 63 | 24 |
Sales | 0 | 0 | 0 |
Settlements | (1,094) | (118) | (26) |
Transfers into Level 3 | (10) | ||
Transfers out of level 3 and other | 0 | ||
Merger additions | 10 | ||
Ending balance | 172 | 19 | 12 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 179 | ||
Private Equity Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 440 | 393 | 404 |
Included in earnings | 2 | 47 | 66 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 | |
Purchases | 27 | 137 | 91 |
Issuances | 0 | 0 | 0 |
Sales | 0 | (91) | (112) |
Settlements | (21) | (46) | (56) |
Transfers into Level 3 | 0 | ||
Transfers out of level 3 and other | 448 | ||
Merger additions | 0 | ||
Ending balance | 0 | $ 440 | $ 393 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | $ 0 |
Fair Value Disclosures - Loans
Fair Value Disclosures - Loans Held for Sale (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures | ||
Loans Held for Sale, Fair Value | $ 4,955 | $ 5,673 |
UPB | 4,736 | 5,563 |
Difference | 219 | 110 |
Trading Assets, Excluding Debt and Equity Securities | ||
Fair Value Disclosures | ||
Fair Value | 1,586 | 2,948 |
UPB | 1,619 | 2,982 |
Difference | $ (33) | $ (34) |
Fair Value Disclosures - Measur
Fair Value Disclosures - Measured on a Nonrecurring Basis (Details) - Nonrecurring - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
LHFS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 979 | $ 2,700 |
Valuation Adjustments | (101) | (17) |
Loans and leases | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 142 | 95 |
Valuation Adjustments | (52) | (23) |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 92 | 84 |
Valuation Adjustments | $ (175) | $ (253) |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Liabilities Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Loans and leases HFI, net of ALLL | $ 293,899 | $ 298,293 |
Financial liabilities: | ||
Time deposits | 21,941 | 35,896 |
Long-term debt | 39,597 | 41,339 |
Carrying Amount | ||
Financial assets: | ||
Loans and leases HFI, net of ALLL | 293,899 | 298,293 |
Financial liabilities: | ||
Time deposits | 21,941 | 35,896 |
Long-term debt | 39,597 | 41,339 |
Fair Value | Level 2 | ||
Financial liabilities: | ||
Time deposits | 22,095 | 35,885 |
Long-term debt | 40,864 | 42,051 |
Fair Value | Level 3 | ||
Financial assets: | ||
Loans and leases HFI, net of ALLL | $ 295,461 | $ 298,586 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Notional Amount | $ 322,942 | $ 315,873 |
Cash flow hedges | ||
Derivative [Line Items] | ||
Notional Amount | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Classifications and Hedging Relationships (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 322,942 | $ 315,873 |
Derivative Asset, Fair Value, Gross | 5,841 | 4,260 |
Derivative Liability, Fair Value, Gross | (3,663) | (3,336) |
Derivative Asset [Abstract] | ||
Amounts subject to master netting arrangements | (1,561) | (1,708) |
Cash collateral (received) posted for amounts subject to master netting arrangements | (443) | (499) |
Net Amount in Consolidated Balance Sheets | 3,837 | 2,053 |
Derivative Liability [Abstract] | ||
Amounts subject to master netting arrangements | 1,561 | 1,708 |
Cash collateral (received) posted for amounts subject to master netting arrangements | 1,547 | 1,262 |
Net amount | (555) | (366) |
Fair value hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 17,765 | 27,152 |
Derivative Asset, Fair Value, Gross | 0 | 113 |
Derivative Liability, Fair Value, Gross | 0 | (27) |
Fair value hedges | Interest rate contracts | Swap | Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 0 | 23,701 |
Derivative Asset, Fair Value, Gross | 0 | 113 |
Derivative Liability, Fair Value, Gross | 0 | (25) |
Fair value hedges | Interest rate contracts | Swap | Commercial Loan [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 0 | 44 |
Derivative Asset, Fair Value, Gross | 0 | 0 |
Derivative Liability, Fair Value, Gross | 0 | 0 |
Fair value hedges | Interest rate contracts | Swap | Municipal Bonds [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 17,765 | 0 |
Derivative Asset, Fair Value, Gross | 0 | 0 |
Derivative Liability, Fair Value, Gross | 0 | 0 |
Fair value hedges | Interest rate contracts | Options | Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 0 | 3,407 |
Derivative Asset, Fair Value, Gross | 0 | 0 |
Derivative Liability, Fair Value, Gross | 0 | (2) |
Not designated as hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 305,177 | 288,721 |
Derivative Asset, Fair Value, Gross | 5,841 | 4,147 |
Derivative Liability, Fair Value, Gross | (3,663) | (3,309) |
Not designated as hedges | Client-related and other risk management | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 245,388 | 244,317 |
Derivative Asset, Fair Value, Gross | 5,642 | 4,077 |
Derivative Liability, Fair Value, Gross | (3,582) | (3,282) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 156,338 | 144,473 |
Derivative Asset, Fair Value, Gross | 3,399 | 1,817 |
Derivative Liability, Fair Value, Gross | (862) | (673) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 25,386 | 25,938 |
Derivative Asset, Fair Value, Gross | 45 | 28 |
Derivative Liability, Fair Value, Gross | (18) | (19) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Forward commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 4,847 | 7,907 |
Derivative Asset, Fair Value, Gross | 9 | 6 |
Derivative Liability, Fair Value, Gross | (11) | (7) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 2,573 | 1,807 |
Derivative Asset, Fair Value, Gross | 0 | 0 |
Derivative Liability, Fair Value, Gross | 0 | 0 |
Not designated as hedges | Client-related and other risk management | Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 31,152 | 38,426 |
Derivative Asset, Fair Value, Gross | 1,856 | 1,988 |
Derivative Liability, Fair Value, Gross | (2,297) | (2,307) |
Not designated as hedges | Client-related and other risk management | Credit Contract | Loans and leases | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,056 | 894 |
Derivative Asset, Fair Value, Gross | 0 | 0 |
Derivative Liability, Fair Value, Gross | (5) | (34) |
Not designated as hedges | Client-related and other risk management | Credit Contract | Risk participation agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 7,802 | 6,696 |
Derivative Asset, Fair Value, Gross | 1 | 0 |
Derivative Liability, Fair Value, Gross | (13) | (2) |
Not designated as hedges | Client-related and other risk management | Credit Contract | Total Return Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,296 | 2,531 |
Derivative Asset, Fair Value, Gross | 13 | 27 |
Derivative Liability, Fair Value, Gross | (33) | (11) |
Not designated as hedges | Client-related and other risk management | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 12,066 | 12,986 |
Derivative Asset, Fair Value, Gross | 189 | 144 |
Derivative Liability, Fair Value, Gross | (219) | (164) |
Not designated as hedges | Client-related and other risk management | Commodity Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 2,872 | 2,659 |
Derivative Asset, Fair Value, Gross | 130 | 67 |
Derivative Liability, Fair Value, Gross | (124) | (65) |
Not designated as hedges | Mortgage banking | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 21,453 | 17,562 |
Derivative Asset, Fair Value, Gross | 192 | 46 |
Derivative Liability, Fair Value, Gross | (76) | (20) |
Not designated as hedges | Mortgage banking | Interest rate contracts | Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 687 | 535 |
Derivative Asset, Fair Value, Gross | 0 | 0 |
Derivative Liability, Fair Value, Gross | 0 | 0 |
Not designated as hedges | Mortgage banking | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 466 | 603 |
Derivative Asset, Fair Value, Gross | 0 | 2 |
Derivative Liability, Fair Value, Gross | 0 | 0 |
Not designated as hedges | Mortgage banking | Interest rate contracts | Interest rate lock commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 8,609 | 4,427 |
Derivative Asset, Fair Value, Gross | 186 | 34 |
Derivative Liability, Fair Value, Gross | (3) | (2) |
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 | 11,691 | 11,997 |
Derivative Asset, Fair Value, Gross | 6 | 10 |
Derivative Liability, Fair Value, Gross | (73) | (18) |
Not designated as hedges | MSRs | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 38,336 | 26,842 |
Derivative Asset, Fair Value, Gross | 7 | 24 |
Derivative Liability, Fair Value, Gross | (5) | (7) |
Not designated as hedges | MSRs | Interest rate contracts | Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 36,161 | 19,196 |
Derivative Asset, Fair Value, Gross | 0 | 0 |
Derivative Liability, Fair Value, Gross | (5) | 0 |
Not designated as hedges | MSRs | Interest rate contracts | Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 101 | 1,519 |
Derivative Asset, Fair Value, Gross | 0 | 22 |
Derivative Liability, Fair Value, Gross | 0 | (2) |
Not designated as hedges | MSRs | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 760 | 567 |
Derivative Asset, Fair Value, Gross | 0 | 0 |
Derivative Liability, Fair Value, Gross | 0 | 0 |
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 | 1,314 | 5,560 |
Derivative Asset, Fair Value, Gross | 7 | 2 |
Derivative Liability, Fair Value, Gross | $ 0 | $ (5) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Master Netting (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Asset [Abstract] | ||
Derivative Asset, Fair Value, Gross | $ 5,841 | $ 4,260 |
Amount Offset | (2,004) | (2,207) |
Net Amount in Consolidated Balance Sheets | 3,837 | 2,053 |
Derivative, Collateral, Obligation to Return Securities | (3) | (18) |
Net Amount | 3,834 | 2,035 |
Derivative Liability [Abstract] | ||
Derivative Liability, Fair Value, Gross | (3,663) | (3,336) |
Amount Offset | 3,108 | 2,970 |
Net amount | (555) | (366) |
Held/Pledged Financial Instruments | 35 | 33 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (520) | (333) |
Derivatives Subject to Master Netting Arrangements | ||
Derivative Asset [Abstract] | ||
Derivative Asset, Fair Value, Gross | 4,383 | 3,516 |
Amount Offset | (1,618) | (2,003) |
Net Amount in Consolidated Balance Sheets | 2,765 | 1,513 |
Derivative, Collateral, Obligation to Return Securities | (2) | (17) |
Net Amount | 2,763 | 1,496 |
Derivative Liability [Abstract] | ||
Derivative Liability, Fair Value, Gross | (3,103) | (2,939) |
Amount Offset | 2,722 | 2,761 |
Net amount | (381) | (178) |
Held/Pledged Financial Instruments | 35 | 22 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (346) | (156) |
Derivatives Not Subject to Master Netting Arrangement | ||
Derivative Asset [Abstract] | ||
Derivative Asset, Fair Value, Gross | 705 | 138 |
Amount Offset | 0 | 0 |
Net Amount in Consolidated Balance Sheets | 705 | 138 |
Derivative, Collateral, Obligation to Return Securities | (1) | (1) |
Net Amount | 704 | 137 |
Derivative Liability [Abstract] | ||
Derivative Liability, Fair Value, Gross | (174) | (193) |
Amount Offset | 0 | 5 |
Net amount | (174) | (188) |
Held/Pledged Financial Instruments | 0 | 11 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (174) | (177) |
Exchange Traded | ||
Derivative Asset [Abstract] | ||
Derivative Asset, Fair Value, Gross | 753 | 606 |
Amount Offset | (386) | (204) |
Net Amount in Consolidated Balance Sheets | 367 | 402 |
Derivative, Collateral, Obligation to Return Securities | 0 | 0 |
Net Amount | 367 | 402 |
Derivative Liability [Abstract] | ||
Derivative Liability, Fair Value, Gross | (386) | (204) |
Amount Offset | 386 | 204 |
Net amount | 0 | 0 |
Held/Pledged Financial Instruments | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $ 0 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Fair Value Hedges Basis Adjusments (Details) - Fair Value Hedges - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
AFS securities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset / Liability Basis | $ 100,988 | $ 473 |
AFS securities | Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | (33) | 0 |
AFS securities | Discontinued Hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 50 | 65 |
Loans and leases | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset / Liability Basis | 470 | 528 |
Loans and leases | Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 0 | 3 |
Loans and leases | Discontinued Hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 18 | 15 |
Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset / Liability Basis | 27,725 | 28,557 |
Long-term debt | Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 0 | 174 |
Long-term debt | Discontinued Hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | $ 930 | $ 23 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Amounts Related to Cash Flow Hedges (Details) - Cash Flow Hedges - Interest Rate Contracts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax gain (loss) recognized in OCI | $ 0 | $ (116) | $ 69 |
Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax gain (loss) reclassified from AOCI into interest expense | (48) | (25) | (12) |
Deposits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax gain (loss) recognized in OCI | 0 | (42) | 15 |
Deposits | Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax gain (loss) reclassified from AOCI into interest expense | (8) | (1) | (1) |
Short-term Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax gain (loss) recognized in OCI | 0 | 2 | (3) |
Short-term Debt | Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax gain (loss) reclassified from AOCI into interest expense | (19) | (10) | 1 |
Long-term debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax gain (loss) recognized in OCI | 0 | (76) | 57 |
Long-term debt | Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax gain (loss) reclassified from AOCI into interest expense | $ (21) | $ (14) | $ (12) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Amounts Related to Fair Value Hedges (Details) - Fair Value Hedges - Interest Rate Contracts - Net interest income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income (expense) recognized | $ 263 | $ (47) | $ 4 |
AFS securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts related to interest settlements | (3) | 0 | (5) |
Recognized on derivatives | 29 | (16) | 12 |
Recognized on hedged items | (41) | 8 | (15) |
Net income (expense) recognized | (15) | (8) | (8) |
Loans and leases | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts related to interest settlements | (1) | 0 | (2) |
Recognized on derivatives | (3) | (21) | (1) |
Recognized on hedged items | 1 | 19 | 2 |
Net income (expense) recognized | (3) | (2) | (1) |
Long-term debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts related to interest settlements | 182 | (56) | (30) |
Recognized on derivatives | 831 | 170 | (122) |
Recognized on hedged items | (732) | (151) | 165 |
Net income (expense) recognized | $ 281 | $ (37) | $ 13 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Cash Flow and Fair Value Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flow hedges | ||
Derivative [Line Items] | ||
Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) | $ (64) | $ (101) |
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 | (42) | (37) |
Fair Value Hedges | ||
Derivative [Line Items] | ||
Unrecognized pre-tax net gain (loss) on terminated hedges (to be recognized as interest primarily through 2029) | 862 | (57) |
Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months | $ 292 | $ (6) |
Derivative Financial Instrum_10
Derivative Financial Instruments - Amounts Related to Derivative Instruments Not Designated as Hedges (Details) - Not designated as hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gain (Loss) Recognized in Income | $ 279 | $ 114 | $ 32 |
Client-related and other risk management | Interest rate contracts | Investment banking and trading income and other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gain (Loss) Recognized in Income | 44 | 76 | 40 |
Client-related and other risk management | Foreign exchange contracts | Investment banking and trading income and other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gain (Loss) Recognized in Income | (45) | (13) | 21 |
Client-related and other risk management | Equity contracts | Investment banking and trading income and other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gain (Loss) Recognized in Income | (4) | (3) | 0 |
Client-related and other risk management | Credit Contract | Investment banking and trading income and other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gain (Loss) Recognized in Income | 178 | (25) | 0 |
Client-related and other risk management | Commodity Contract | Investment banking and trading income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gain (Loss) Recognized in Income | 6 | 0 | 0 |
Mortgage banking | Interest rate contracts | Residential mortgage income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gain (Loss) Recognized in Income | (418) | (61) | 36 |
Mortgage banking | Interest rate contracts | Commercial real estate related income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gain (Loss) Recognized in Income | 3 | (4) | 0 |
MSRs | Interest rate contracts | Residential mortgage income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gain (Loss) Recognized in Income | 495 | 137 | (62) |
MSRs | Interest rate contracts | Commercial real estate related income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gain (Loss) Recognized in Income | $ 20 | $ 7 | $ (3) |
Derivative Financial Instrum_11
Derivative Financial Instruments - Risk Participation Agreements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Risk Participation Agreements Sold | ||
Credit Derivatives [Line Items] | ||
Maximum potential amount of exposure | $ 530 | $ 291 |
Total Return Swap | ||
Credit Derivatives [Line Items] | ||
Cash collateral held | $ 374 | $ 653 |
Derivative Financial Instrum_12
Derivative Financial Instruments - Dealer Counterparties and Central Clearing Parties (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Credit Derivatives [Line Items] | ||
Unsecured positions in a net gain with counterparties after collateral postings | $ 3,834 | $ 2,035 |
Dealer Counterparties | ||
Credit Derivatives [Line Items] | ||
Cash and other collateral received from counterparties | 446 | 514 |
Derivatives in a net gain position secured by collateral received | 585 | 615 |
Unsecured positions in a net gain with counterparties after collateral postings | 49 | 101 |
Cash collateral posted | 1,524 | 1,255 |
Derivatives in a net loss position | 1,604 | 1,300 |
Additional collateral that would have been posted had the Company's credit ratings dropped below investment grade | 3 | 12 |
Central Clearing Parties | ||
Credit Derivatives [Line Items] | ||
Derivatives in a net gain position secured by collateral received | 5 | 0 |
Cash collateral posted | 172 | 30 |
Derivatives in a net loss position | 90 | 31 |
Securities pledged to central counterparties clearing | $ 1,281 | $ 513 |
Computation of EPS (Details)
Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Net income available to common shareholders | $ 4,184 | $ 3,028 | $ 3,063 |
Weighted average number of common shares | 1,347,080 | 805,104 | 772,963 |
Effect of dilutive outstanding equity-based awards | 11,209 | 10,100 | 10,521 |
Weighted average number of diluted common shares | 1,358,289 | 815,204 | 783,484 |
Basic EPS | $ 3.11 | $ 3.76 | $ 3.96 |
Diluted EPS | $ 3.08 | $ 3.71 | $ 3.91 |
Anti-dilutive awards | 16 | 4 | 22 |
Operating Segments - Narrative
Operating Segments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020numberOfSegments | |
Segment Reporting [Abstract] | |
Number of Major Reportable Business Segments | 3 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | $ 13,826 | $ 7,313 | $ 6,682 |
Allocated provision for credit losses | 2,335 | 615 | 566 |
Segment net interest income after provision | 11,491 | 6,698 | 6,116 |
Noninterest income | 8,879 | 5,255 | 4,876 |
Total noninterest expense | 14,897 | 7,934 | 6,932 |
Income before income taxes | 5,473 | 4,019 | 4,060 |
Provision for income taxes | 981 | 782 | 803 |
Net income | 4,492 | 3,237 | 3,257 |
Identifiable assets (period end) | 509,228 | 473,078 | |
Amortization of intangibles | 685 | 164 | 131 |
Other expense | 571 | 542 | 483 |
CB&W | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | 7,377 | 3,633 | 3,410 |
Net income | 3,059 | 1,765 | 1,435 |
C&CB | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | 5,391 | 3,153 | 2,723 |
Net income | 2,321 | 1,791 | 1,598 |
IH | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | 126 | 146 | 119 |
Net income | 407 | 318 | 253 |
OT&C | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | 932 | 381 | 430 |
Net income | (1,295) | (637) | (29) |
Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | 13,826 | 7,313 | 6,682 |
Allocated provision for credit losses | 2,335 | 615 | 566 |
Segment net interest income after provision | 11,491 | 6,698 | 6,116 |
Noninterest income | 8,879 | 5,255 | 4,876 |
Income before income taxes | 5,473 | 4,019 | 4,060 |
Provision for income taxes | 981 | 782 | 803 |
Net income | 4,492 | 3,237 | 3,257 |
Identifiable assets (period end) | 509,228 | 473,078 | 225,697 |
Amortization of intangibles | 685 | 164 | 131 |
Other expense | 14,212 | 7,770 | 6,801 |
Operating Segments | CB&W | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | 8,801 | 4,556 | 3,816 |
Allocated provision for credit losses | 1,004 | 513 | 506 |
Segment net interest income after provision | 7,797 | 4,043 | 3,310 |
Noninterest income | 4,056 | 2,316 | 2,047 |
Income before income taxes | 4,003 | 2,331 | 1,908 |
Provision for income taxes | 944 | 566 | 473 |
Identifiable assets (period end) | 163,548 | 169,970 | 74,974 |
Amortization of intangibles | 419 | 58 | 41 |
Other expense | 7,431 | 3,970 | 3,408 |
Operating Segments | C&CB | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | 5,178 | 2,744 | 2,613 |
Allocated provision for credit losses | 1,304 | 102 | 111 |
Segment net interest income after provision | 3,874 | 2,642 | 2,502 |
Noninterest income | 2,476 | 1,168 | 1,019 |
Income before income taxes | 2,903 | 2,270 | 2,031 |
Provision for income taxes | 582 | 479 | 433 |
Identifiable assets (period end) | 186,555 | 185,855 | 85,985 |
Amortization of intangibles | 175 | 31 | 19 |
Other expense | 3,272 | 1,509 | 1,471 |
Operating Segments | IH | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | 94 | 102 | 87 |
Allocated provision for credit losses | 9 | 9 | 3 |
Segment net interest income after provision | 85 | 93 | 84 |
Noninterest income | 2,241 | 2,112 | 1,872 |
Income before income taxes | 541 | 428 | 341 |
Provision for income taxes | 134 | 110 | 88 |
Identifiable assets (period end) | 7,932 | 7,325 | 6,622 |
Amortization of intangibles | 72 | 74 | 71 |
Other expense | 1,713 | 1,703 | 1,544 |
Operating Segments | OT&C | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | (247) | (89) | 166 |
Allocated provision for credit losses | 18 | (9) | (54) |
Segment net interest income after provision | (265) | (80) | 220 |
Noninterest income | 106 | (341) | (62) |
Income before income taxes | (1,974) | (1,010) | (220) |
Provision for income taxes | (679) | (373) | (191) |
Identifiable assets (period end) | 151,193 | 109,928 | 58,116 |
Amortization of intangibles | 19 | 1 | 0 |
Other expense | 1,796 | 588 | 378 |
Intersegment Eliminations | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | 0 | 0 | 0 |
Intersegment Eliminations | CB&W | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | 1,424 | 923 | 406 |
Intersegment Eliminations | C&CB | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | (213) | (409) | (110) |
Intersegment Eliminations | IH | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | (32) | (44) | (32) |
Intersegment Eliminations | OT&C | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net Interest Income | $ (1,179) | $ (470) | $ (264) |
Parent Company Financial Info_3
Parent Company Financial Information - Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash and Due from Banks | $ 5,029 | $ 4,084 | ||
Interest-bearing deposits with banks | 13,839 | 14,981 | ||
AFS securities at fair value | 120,788 | 74,727 | ||
Other Assets | 30,673 | 31,832 | ||
Assets | 509,228 | 473,078 | ||
Liabilities and Equity [Abstract] | ||||
Short-term Debt | 6,092 | 18,218 | ||
Long-term debt | 39,597 | 41,339 | ||
Other Liabilities | 11,550 | 12,236 | ||
Liabilities | 438,316 | 406,520 | ||
Total shareholders' equity | 70,912 | 66,558 | $ 30,178 | $ 29,695 |
Total liabilities and shareholders' equity | 509,228 | 473,078 | ||
Parent Company | ||||
Assets | ||||
Cash and Due from Banks | 688 | 361 | ||
Interest-bearing deposits with banks | 13,434 | 12,031 | ||
AFS securities at fair value | 82 | 137 | ||
Advances to / receivables from subsidiaries: | 6,275 | 5,085 | ||
Investment in subsidiaries: | 69,937 | 68,062 | ||
Other Assets | 313 | 655 | ||
Assets | 90,729 | 86,331 | ||
Liabilities and Equity [Abstract] | ||||
Short-term Debt | 621 | 603 | ||
Long-term debt | 18,890 | 18,130 | ||
Other Liabilities | 306 | 1,040 | ||
Liabilities | 19,817 | 19,773 | ||
Total shareholders' equity | 70,912 | 66,558 | ||
Total liabilities and shareholders' equity | 90,729 | 86,331 | ||
Parent Company | Banking | ||||
Assets | ||||
Advances to / receivables from subsidiaries: | 2,541 | 1,350 | ||
Investment in subsidiaries: | 65,641 | 64,206 | ||
Parent Company | Nonbank | ||||
Assets | ||||
Advances to / receivables from subsidiaries: | 3,734 | 3,735 | ||
Investment in subsidiaries: | $ 4,296 | $ 3,856 |
Parent Company Financial Info_4
Parent Company Financial Information - Parent Company Condensed Income and Comprehensive Income Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income: | |||
Interest and other income from subsidiaries | $ 324 | $ 108 | $ 66 |
Expenses: | |||
Interest Expense | 1,722 | 2,096 | 1,438 |
Other expenses | 14,897 | 7,934 | 6,932 |
Income tax benefit | (981) | (782) | (803) |
Net income | 4,492 | 3,237 | 3,257 |
OCI | 1,560 | 871 | (248) |
Total comprehensive income | 6,052 | 4,108 | 3,009 |
Parent Company | |||
Income: | |||
Total dividends from subsidiaries | 2,805 | 1,685 | 2,972 |
Interest and other income from subsidiaries | 170 | 217 | 164 |
Other income | 12 | 0 | 7 |
Total income | 2,987 | 1,902 | 3,143 |
Expenses: | |||
Interest Expense | 333 | 475 | 364 |
Other expenses | 174 | 250 | 82 |
Total expenses | 507 | 725 | 446 |
Income before income taxes and equity in undistributed earnings of subsidiaries | 2,480 | 1,177 | 2,697 |
Income tax benefit | 56 | 92 | 52 |
Income before equity in undistributed earnings of subsidiaries | 2,536 | 1,269 | 2,749 |
Equity in undistributed earnings of subsidiaries in excess of dividends from subsidiaries | 1,956 | 1,968 | 508 |
Net income | 4,492 | 3,237 | 3,257 |
OCI | 1,560 | 871 | (248) |
Total comprehensive income | 6,052 | 4,108 | 3,009 |
Parent Company | Nonbank | |||
Income: | |||
Total dividends from subsidiaries | 5 | 35 | 147 |
Parent Company | Banking | |||
Income: | |||
Total dividends from subsidiaries | $ 2,800 | $ 1,650 | $ 2,825 |
Parent Company Financial Info_5
Parent Company Financial Information - Parent Company Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities: | ||||
Net income | $ 4,492 | $ 3,237 | $ 3,257 | |
Adjustments to reconcile net income to net cash from operating activities: | ||||
Other, net | (852) | (65) | (526) | |
Net cash from operating activities | 7,437 | 1,520 | 4,349 | |
Cash Flows From Investing Activities: | ||||
Proceeds from maturities, calls and paydowns of AFS securities | 24,627 | 4,797 | 3,674 | |
Proceeds from maturities, calls and paydowns of HTM securities | 0 | 2,499 | 2,442 | |
Net cash from acquisitions and divestitures | (2,439) | 6,256 | (296) | |
Other, net | (706) | 83 | 232 | |
Net cash from investing activities | (43,652) | 8,348 | (4,963) | |
Cash Flows From Financing Activities: | ||||
Proceeds from (Repayments of) Other Debt | (12,124) | 6,293 | 240 | |
Repurchase of common stock | 0 | 0 | (1,205) | |
Proceeds from Issuance of Preferred Stock and Preference Stock | 3,449 | 1,683 | 0 | |
Redemption of preferred stock | (500) | (1,725) | 0 | |
Other, net | (148) | (45) | (103) | |
Net Cash Provided by (Used in) Financing Activities | 36,018 | 5,353 | 1,502 | |
Cash and Cash Equivalents, at Carrying Value | 18,868 | 19,065 | 3,844 | $ 2,956 |
Parent Company | ||||
Cash Flows From Operating Activities: | ||||
Net income | 4,492 | 3,237 | 3,257 | |
Adjustments to reconcile net income to net cash from operating activities: | ||||
Equity in earnings of subsidiaries in excess of dividends from subsidiaries | (1,956) | (1,968) | (508) | |
Other, net | (704) | 84 | (28) | |
Net cash from operating activities | 1,832 | 1,353 | 2,721 | |
Cash Flows From Investing Activities: | ||||
Proceeds from maturities, calls and paydowns of AFS securities | 79 | 157 | 33 | |
Purchases of AFS securities | (22) | (79) | (28) | |
Investment in subsidiaries | (79) | (1) | 0 | |
Advances to subsidiaries | (6,711) | (5,358) | (4,639) | |
Proceeds from repayment of advances to subsidiaries | 5,499 | 8,304 | 3,665 | |
Net cash from acquisitions and divestitures | 0 | 1,903 | 0 | |
Other, net | 14 | (1) | (4) | |
Net cash from investing activities | (1,220) | 4,925 | (973) | |
Cash Flows From Financing Activities: | ||||
Proceeds from (Repayments of) Other Debt | 18 | 53 | (5) | |
Net change in long-term debt | 397 | 370 | 1,746 | |
Repurchase of common stock | 0 | 0 | (1,205) | |
Proceeds from Issuance of Preferred Stock and Preference Stock | 3,449 | 1,683 | 0 | |
Redemption of preferred stock | (500) | (1,725) | 0 | |
Cash dividends paid on common and preferred stock | (2,725) | (1,459) | (1,378) | |
Other, net | 479 | (40) | (52) | |
Net Cash Provided by (Used in) Financing Activities | 1,118 | (1,118) | (894) | |
Cash and Cash Equivalents, Period Increase (Decrease) | 1,730 | 5,160 | 854 | |
Cash and Cash Equivalents, at Carrying Value | $ 14,122 | $ 12,392 | $ 7,232 | $ 6,378 |