☒
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Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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☐
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Delaware
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38-1998421
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(State or Other Jurisdiction of Incorporation)
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(IRS Employer Identification Number)
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Title of each class
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Trading symbol
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Name of each exchange on which registered
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Common Stock, $5 par value
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CMA
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New York Stock Exchange
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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(dollar amounts in millions)
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Comerica
Incorporated
(Consolidated)
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Comerica
Bank
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||||
December 31, 2019
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||||
CET1 capital (minimum $3.1 billion (Consolidated))
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$
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6,919
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$
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7,199
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Tier 1 capital (minimum $4.1 billion (Consolidated))
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6,919
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7,199
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Total capital (minimum $5.5 billion (Consolidated))
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8,282
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8,371
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Risk-weighted assets
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68,273
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68,071
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Adjusted average assets (fourth quarter)
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72,773
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72,564
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CET1 capital to risk-weighted assets (minimum 4.5%)
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10.13
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%
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10.58
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%
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Tier 1 capital to risk-weighted assets (minimum 6.0%)
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10.13
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10.58
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Total capital to risk-weighted assets (minimum 8.0%)
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12.13
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12.30
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Tier 1 capital to average assets (minimum 4.0%)
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9.51
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9.92
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Capital conservation buffer (minimum 2.5%)
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4.13
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4.30
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December 31, 2018
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CET1 capital (minimum $3.0 billion (Consolidated))
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$
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7,470
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$
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7,229
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Tier 1 capital (minimum $4.0 billion (Consolidated))
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7,470
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7,229
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Total capital (minimum $5.4 billion (Consolidated))
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8,855
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8,433
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Risk-weighted assets
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67,047
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66,857
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Adjusted average assets (fourth quarter)
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71,070
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70,905
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CET1 capital to risk-weighted assets (minimum 4.5%)
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11.14
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%
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10.81
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%
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Tier 1 capital to risk-weighted assets (minimum 6.0%)
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11.14
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10.81
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Total capital to risk-weighted assets (minimum 8.0%)
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13.21
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12.61
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Tier 1 capital to average assets (minimum 4.0%)
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10.51
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10.20
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Capital conservation buffer (minimum 2.5%)
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5.14
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4.61
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•
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People: Including the competence, integrity and succession planning of customers.
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•
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Purpose: The legal, logical and productive purposes of the credit facility.
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•
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Payment: Including the source, timing and probability of payment.
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•
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Protection: Including obtaining alternative sources of repayment, securing the loan, as appropriate, with collateral and/or third-party guarantees and ensuring appropriate legal documentation is obtained.
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•
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Perspective: The risk/reward relationship and pricing elements (cost of funds; servicing costs; time value of money; credit risk).
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•
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The borrower's business model and industry characteristics.
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•
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Periodic review of financial statements including financial statements audited by an independent certified public accountant when appropriate.
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•
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The proforma financial condition including financial projections.
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•
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The borrower's sources and uses of funds.
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•
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The borrower's debt service capacity.
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•
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The guarantor's financial strength.
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•
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A comprehensive review of the quality and value of collateral, including independent third-party appraisals of machinery and equipment and commercial real estate, as appropriate, to determine the advance rates.
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•
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Physical inspection of collateral and audits of receivables, as appropriate.
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•
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Unfavorable developments concerning credit quality could adversely affect Comerica's financial results.
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•
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Declines in the businesses or industries of Comerica's customers could cause increased credit losses or decreased loan balances, which could adversely affect Comerica.
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•
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Changes in customer behavior may adversely impact Comerica's business, financial condition and results of operations.
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•
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Governmental monetary and fiscal policies may adversely affect the financial services industry, and therefore impact Comerica's financial condition and results of operations.
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•
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Fluctuations in interest rates and their impact on deposit pricing could adversely affect Comerica's net interest income and balance sheet.
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•
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Interest rates on Comerica's outstanding financial instruments might be subject to change based on developments related to LIBOR, which could adversely affect its revenue, expenses, and the value of those financial instruments.
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•
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Comerica must maintain adequate sources of funding and liquidity to meet regulatory expectations, support its operations and fund outstanding liabilities.
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•
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Reduction in our credit ratings could adversely affect Comerica and/or the holders of its securities.
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•
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The soundness of other financial institutions could adversely affect Comerica.
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•
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Comerica faces security risks, including denial of service attacks, hacking, social engineering attacks targeting Comerica’s colleagues and customers, malware intrusion or data corruption attempts, and identity theft that could result in the disclosure of confidential information, adversely affect its business or reputation, and create significant legal and financial exposure.
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•
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Comerica’s operational or security systems or infrastructure, or those of third parties, could fail or be breached, which could disrupt Comerica’s business and adversely impact Comerica’s results of operations, liquidity and financial condition, as well as cause legal or reputational harm.
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•
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Comerica relies on other companies to provide certain key components of its delivery systems, and certain failures could materially adversely affect operations.
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•
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Legal and regulatory proceedings and related matters with respect to the financial services industry, including those directly involving Comerica and its subsidiaries, could adversely affect Comerica or the financial services industry in general.
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•
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Comerica may incur losses due to fraud.
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•
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Controls and procedures may not prevent or detect all errors or acts of fraud.
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Changes in regulation or oversight may have a material adverse impact on Comerica's operations.
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•
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Compliance with stringent capital requirements may adversely affect Comerica.
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•
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Tax regulations could be subject to potential legislative, administrative or judicial changes or interpretations.
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•
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Changes in accounting standards could materially impact Comerica's financial statements.
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•
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Comerica's accounting policies and processes are critical to the reporting of financial condition and results of operations. They require management to make estimates about matters that are uncertain.
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•
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Damage to Comerica’s reputation could damage its businesses.
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•
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Comerica may not be able to utilize technology to efficiently and effectively develop, market, and deliver new products and services to its customers.
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•
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Competitive product and pricing pressures within Comerica's markets may change.
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•
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The introduction, implementation, withdrawal, success and timing of business initiatives and strategies may be less successful or may be different than anticipated, which could adversely affect Comerica's business.
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•
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Management's ability to maintain and expand customer relationships may differ from expectations.
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•
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Management's ability to retain key officers and employees may change.
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•
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Any future strategic acquisitions or divestitures may present certain risks to Comerica's business and operations.
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•
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General political, economic or industry conditions, either domestically or internationally, may be less favorable than expected.
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•
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Methods of reducing risk exposures might not be effective.
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Catastrophic events may adversely affect the general economy, financial and capital markets, specific industries, and Comerica.
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•
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Comerica's stock price can be volatile.
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•
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Actual or anticipated variations in quarterly results of operations.
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•
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Recommendations or projections by securities analysts.
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•
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Operating and stock price performance of other companies that investors deem comparable to Comerica.
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•
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News reports relating to trends, concerns and other issues in the financial services industry.
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•
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Perceptions in the marketplace regarding Comerica and/or its competitors.
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•
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New technology used, or services offered, by competitors.
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•
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Significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving Comerica or its competitors.
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•
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Changes in dividends and capital returns.
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•
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Changes in government regulations.
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•
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Cyclical fluctuations.
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•
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Geopolitical conditions such as acts or threats of terrorism or military conflicts.
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•
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Activity by short sellers and changing government restrictions on such activity.
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(shares in thousands)
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Total Number of Shares
Purchased as Part of Publicly Announced Repurchase Plans or Programs |
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Remaining Repurchase Authorization
(a) |
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Total Number of Shares Purchased
(b) |
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Average Price Paid Per
Share |
|||||
Total first quarter 2019
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5,094
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14,613
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(c)
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5,216
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$
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83.48
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Total second quarter 2019
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5,656
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8,957
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5,658
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75.13
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Total third quarter 2019
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5,734
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3,223
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5,739
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64.53
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October 2019
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—
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3,223
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3
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65.47
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November 2019
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901
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9,322
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(d)
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903
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69.90
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December 2019
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1,225
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8,097
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1,231
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70.84
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Total fourth quarter 2019
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2,126
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8,097
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2,137
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70.44
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Total 2019
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18,610
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8,097
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18,750
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$
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73.67
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(a)
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Maximum number of shares that may yet be purchased under the publicly announced plans or programs.
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(b)
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Includes approximately 140,000 shares (including 11,000 shares in the quarter ended December 31, 2019) purchased pursuant to deferred compensation plans and shares purchased from employees to pay for taxes related to restricted stock vesting under the terms of an employee share-based compensation plan during the year ended December 31, 2019. These transactions are not considered part of the Corporation's repurchase program.
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(c)
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Includes January 2019 equity repurchase authorization for an additional 15 million shares.
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(d)
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Includes November 2019 equity repurchase authorization for an additional 7 million shares.
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1.
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Financial Statements: The financial statements that are filed as part of this report are included in the Financial Section on pages F-40 through F-106.
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2.
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All of the schedules for which provision is made in the applicable accounting regulations of the SEC are either not required under the related instruction, the required information is contained elsewhere in the Form 10-K, or the schedules are inapplicable and therefore have been omitted.
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3.
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Exhibits:
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2
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(not applicable)
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3.1
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3.2
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3.3
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4.1
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[Reference is made to Exhibits 3.1, 3.2 and 3.3 in respect of instruments defining the rights of security holders. In accordance with Regulation S-K Item No. 601(b)(4)(iii), the Registrant is not filing copies of instruments defining the rights of holders of long-term debt because none of those instruments authorizes debt in excess of 10% of the total assets of the Registrant and its subsidiaries on a consolidated basis. The Registrant hereby agrees to furnish a copy of any such instrument to the SEC upon request.]
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4.2
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9
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(not applicable)
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10.1†
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A†
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B†
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C†
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D†
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E†
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F†
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G†
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10.2†
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A†
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B†
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C†
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D†
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E†
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F†
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G†
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H†
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I†
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J†
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K†
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L†
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M†
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N†
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O†
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10.3†
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10.4†
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10.5†
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10.6†
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10.7†
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10.8†
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10.9†
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10.10†
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10.11†
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10.12†
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10.13†
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A†
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B†
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C†
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D†
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E†
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10.14†
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A†
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10.15†
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10.16†
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10.17A†
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10.17B†
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10.17C†
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10.17D†
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10.18†
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A†
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10.19†
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A†
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10.20†
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A†
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10.21†
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10.22†
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13
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(not applicable)
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14
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(not applicable)
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16
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(not applicable)
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18
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(not applicable)
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21
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23.1
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24
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(not applicable)
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31.1
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31.2
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32
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33
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(not applicable)
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34
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(not applicable)
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35
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|
(not applicable)
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95
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(not applicable)
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99
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(not applicable)
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101
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Financial statements from the Registrant's Annual Report on Form 10-K for the year ended December 31, 2019, formatted in Inline XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Changes in Shareholders' Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements.
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104
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The cover page from the Registrant's Annual Report on Form 10-K for the year ended December 31, 2019, formatted in Inline XBRL (included in Exhibit 101).
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†
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Management contract or compensatory plan or arrangement.
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File No. for all filings under Exchange Act, unless otherwise noted: 1-10706.
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(dollar amounts in millions, except per share data)
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||||||||||
Years Ended December 31
|
2019
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2018
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2017
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2016
|
|
2015
|
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||||||||||
EARNINGS SUMMARY
|
|
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||||||||||
Net interest income
|
$
|
2,339
|
|
|
$
|
2,352
|
|
|
$
|
2,061
|
|
|
$
|
1,797
|
|
|
$
|
1,689
|
|
|
Provision for credit losses
|
74
|
|
|
(1
|
)
|
|
74
|
|
|
248
|
|
|
147
|
|
|
|||||
Noninterest income
|
1,010
|
|
|
976
|
|
(a)
|
1,107
|
|
|
1,051
|
|
|
1,035
|
|
|
|||||
Noninterest expenses
|
1,743
|
|
|
1,794
|
|
(a), (b)
|
1,860
|
|
(b)
|
1,930
|
|
(b)
|
1,827
|
|
|
|||||
Provision for income taxes
|
334
|
|
|
300
|
|
|
491
|
|
(c)
|
193
|
|
|
229
|
|
|
|||||
Net income
|
1,198
|
|
|
1,235
|
|
|
743
|
|
|
477
|
|
|
521
|
|
|
|||||
Net income attributable to common shares
|
1,191
|
|
|
1,227
|
|
|
738
|
|
|
473
|
|
|
515
|
|
|
|||||
PER SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per common share
|
$
|
7.87
|
|
|
$
|
7.20
|
|
|
$
|
4.14
|
|
|
$
|
2.68
|
|
|
$
|
2.84
|
|
|
Cash dividends declared
|
2.68
|
|
|
1.84
|
|
|
1.09
|
|
|
0.89
|
|
|
0.83
|
|
|
|||||
Common shareholders’ equity
|
51.57
|
|
|
46.89
|
|
|
46.07
|
|
|
44.47
|
|
|
43.03
|
|
|
|||||
Tangible common equity (d)
|
47.07
|
|
|
42.89
|
|
|
42.34
|
|
|
40.79
|
|
|
39.33
|
|
|
|||||
Market value
|
71.75
|
|
|
68.69
|
|
|
86.81
|
|
|
68.11
|
|
|
41.83
|
|
|
|||||
Average diluted shares (in millions)
|
151
|
|
|
171
|
|
|
178
|
|
|
177
|
|
|
181
|
|
|
|||||
YEAR-END BALANCES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
73,402
|
|
|
$
|
70,818
|
|
|
$
|
71,567
|
|
|
$
|
72,978
|
|
|
$
|
71,877
|
|
|
Total earning assets
|
67,767
|
|
|
65,513
|
|
|
65,880
|
|
|
67,518
|
|
|
66,687
|
|
|
|||||
Total loans
|
50,369
|
|
|
50,163
|
|
|
49,173
|
|
|
49,088
|
|
|
49,084
|
|
|
|||||
Total deposits
|
57,295
|
|
|
55,561
|
|
|
57,903
|
|
|
58,985
|
|
|
59,853
|
|
|
|||||
Total medium- and long-term debt
|
7,269
|
|
|
6,463
|
|
|
4,622
|
|
|
5,160
|
|
|
3,058
|
|
|
|||||
Total common shareholders’ equity
|
7,327
|
|
|
7,507
|
|
|
7,963
|
|
|
7,796
|
|
|
7,560
|
|
|
|||||
AVERAGE BALANCES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
71,488
|
|
|
$
|
70,724
|
|
|
$
|
71,452
|
|
|
$
|
71,743
|
|
|
$
|
70,247
|
|
|
Total earning assets
|
66,134
|
|
|
65,410
|
|
|
66,300
|
|
|
66,545
|
|
|
65,129
|
|
|
|||||
Total loans
|
50,511
|
|
|
48,766
|
|
|
48,558
|
|
|
48,996
|
|
|
48,628
|
|
|
|||||
Total deposits
|
55,481
|
|
|
55,935
|
|
|
57,258
|
|
|
57,741
|
|
|
58,326
|
|
|
|||||
Total medium- and long-term debt
|
6,955
|
|
|
5,842
|
|
|
4,969
|
|
|
4,917
|
|
|
2,905
|
|
|
|||||
Total common shareholders’ equity
|
7,308
|
|
|
7,809
|
|
|
7,952
|
|
|
7,674
|
|
|
7,534
|
|
|
|||||
CREDIT QUALITY
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total allowance for credit losses
|
$
|
668
|
|
|
$
|
701
|
|
|
$
|
754
|
|
|
$
|
771
|
|
|
$
|
679
|
|
|
Total nonperforming loans
|
204
|
|
|
229
|
|
|
410
|
|
|
590
|
|
|
379
|
|
|
|||||
Foreclosed property
|
11
|
|
|
1
|
|
|
5
|
|
|
17
|
|
|
12
|
|
|
|||||
Total nonperforming assets
|
215
|
|
|
230
|
|
|
415
|
|
|
607
|
|
|
391
|
|
|
|||||
Net credit-related charge-offs
|
107
|
|
|
51
|
|
|
92
|
|
|
157
|
|
|
101
|
|
|
|||||
Net credit-related charge-offs as a percentage of average total loans
|
0.21
|
%
|
|
0.11
|
%
|
|
0.19
|
%
|
|
0.32
|
%
|
|
0.21
|
%
|
|
|||||
Allowance for loan losses as a percentage of total period-end loans
|
1.27
|
|
|
1.34
|
|
|
1.45
|
|
|
1.49
|
|
|
1.29
|
|
|
|||||
Allowance for loan losses as a multiple of total nonperforming loans
|
3.1x
|
|
|
2.9x
|
|
|
1.7x
|
|
|
1.2x
|
|
|
1.7x
|
|
|
|||||
RATIOS
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest margin
|
3.54
|
%
|
|
3.58
|
%
|
|
3.11
|
%
|
|
2.71
|
%
|
|
2.60
|
%
|
|
|||||
Return on average assets
|
1.68
|
|
|
1.75
|
|
|
1.04
|
|
|
0.67
|
|
|
0.74
|
|
|
|||||
Return on average common shareholders’ equity
|
16.39
|
|
|
15.82
|
|
|
9.34
|
|
|
6.22
|
|
|
6.91
|
|
|
|||||
Dividend payout ratio
|
33.71
|
|
|
25.17
|
|
|
25.77
|
|
|
32.48
|
|
|
28.33
|
|
|
|||||
Average common shareholders’ equity as a percentage of average assets
|
10.22
|
|
|
11.04
|
|
|
11.13
|
|
|
10.70
|
|
|
10.73
|
|
|
|||||
Common equity tier 1 capital as a percentage of risk-weighted assets
|
10.13
|
|
|
11.14
|
|
|
11.68
|
|
|
11.09
|
|
|
10.54
|
|
|
|||||
Tier 1 capital as a percentage of risk-weighted assets
|
10.13
|
|
|
11.14
|
|
|
11.68
|
|
|
11.09
|
|
|
10.54
|
|
|
|||||
Common equity ratio
|
9.98
|
|
|
10.60
|
|
|
11.13
|
|
|
10.68
|
|
|
10.52
|
|
|
|||||
Tangible common equity as a percentage of tangible assets (d)
|
9.19
|
|
|
9.78
|
|
|
10.32
|
|
|
9.89
|
|
|
9.70
|
|
|
(a)
|
Effective January 1, 2018, adoption of "Topic 606: Revenue from Contracts with Customers" (Topic 606) resulted in a change in presentation which records certain costs in the same category as the associated revenues. The effect of this change was to reduce noninterest income and expenses by $145 million for the year ended December 31, 2018.
|
(b)
|
Noninterest expenses included restructuring charges of $53 million, $45 million and $93 million in 2018, 2017 and 2016, respectively.
|
(c)
|
The provision for income taxes for 2017 was impacted by a $107 million charge to adjust deferred taxes as a result of the enactment of the Tax Cuts and Jobs Act.
|
(d)
|
See Supplemental Financial Data section for reconcilements of non-GAAP financial measures.
|
•
|
Net income decreased $37 million, or 3 percent, to $1.2 billion. Net income per diluted common share was a record $7.87 in 2019 compared to $7.20 in 2018, an increase of 9 percent.
|
•
|
Average loans increased $1.7 billion, or 4 percent, to $50.5 billion. The increase primarily reflected increases in Energy, Mortgage Banker Finance, National Dealer Services, general Middle Market and Commercial Real Estate.
|
•
|
Average deposits decreased $454 million to $55.5 billion. Average noninterest-bearing deposits decreased $2.6 billion, or 9 percent, driven by customers shifting balances to interest-bearing deposits and utilizing their deposits to fund growth, acquisitions and capital expenditures as well as choosing other investment options. Average interest-bearing deposits increased $2.1 billion, or 8 percent, driven by increases of $1.3 billion in relationship-based deposits and $703 million in other time deposits.
|
•
|
Net interest income decreased $13 million to $2.3 billion, and the net interest margin decreased 4 basis points to 3.54 percent. Both decreases were primarily driven by the impact of higher interest-bearing deposit and debt balances, partially offset by the benefit from higher loan balances and the net impact of higher short-term rates.
|
•
|
The provision for credit losses increased $75 million to $74 million in 2019 from a benefit of $1 million in 2018, primarily due to a decline in valuations of select liquidating Energy credits.
|
•
|
Noninterest income increased $34 million to $1.0 billion, including growth in card fees, a decrease in losses related to securities repositioning and higher deferred compensation asset returns, partially offset by lower service charges on deposit accounts.
|
•
|
Noninterest expenses decreased $51 million to $1.7 billion, primarily reflecting the end of restructuring charges related to the GEAR Up efficiency initiative and lower FDIC insurance expense, partially offset by increased technology-related expenses and outside processing fees.
|
•
|
The provision for income taxes increased $34 million to $334 million, primarily due to a $31 million decrease in discrete tax benefits.
|
•
|
The Corporation repurchased approximately 18.6 million shares of common stock under the equity repurchase program and issued cash dividends of $2.68 per share, a 46 percent increase. Altogether, $1.8 billion was returned to shareholders, an increase of $141 million.
|
•
|
Two percent to three percent growth in average loans, reflecting increases in most lines of business, partly offset by declines in Mortgage Banker Finance and National Dealer Services.
|
•
|
One percent to two percent increase in average deposits, with a continued focus on attracting and retaining relationship-based deposits.
|
•
|
Decrease in net interest income due to:
|
◦
|
the net impact of lower interest rates, including a net reduction of $10 million to $15 million in the first quarter of 2020 compared to the fourth quarter of 2019; followed by a modest decrease in each of the remaining quarters of the year as longer-dated assets and liabilities reprice as well as continued hedging activity;
|
◦
|
the full-year impact from 2019 funding actions and lower nonaccrual interest recoveries;
|
◦
|
partially offset by the benefit from loan growth.
|
•
|
Continued strong credit quality, with net credit-related charge-offs similar to 2019 levels (15 basis points to 25 basis points of average total loans).
|
•
|
One percent growth in noninterest income, reflecting growth in card fees and fiduciary income, partially offset by lower derivative and warrant income, and assuming no returns on deferred compensation assets.
|
•
|
Three percent increase in noninterest expenses, reflecting higher outside processing expenses in line with growing revenue, technology expenditures, typical inflationary pressures and higher pension expense.
|
•
|
Income tax expense to be approximately 23 percent of pre-tax income.
|
•
|
Common equity Tier 1 capital ratio target of approximately 10 percent.
|
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|||||||||||||||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||
|
Average
Balance
|
Interest
|
Average
Rate
|
|
Average
Balance
|
Interest
|
Average
Rate
|
|
Average
Balance
|
Interest
|
Average
Rate
|
|||||||||||||||
Commercial loans
|
$
|
32,053
|
|
$
|
1,544
|
|
4.82
|
%
|
|
$
|
30,534
|
|
$
|
1,416
|
|
4.64
|
%
|
|
$
|
30,415
|
|
$
|
1,162
|
|
3.82
|
%
|
Real estate construction loans
|
3,325
|
|
184
|
|
5.54
|
|
|
3,155
|
|
164
|
|
5.21
|
|
|
2,958
|
|
124
|
|
4.18
|
|
||||||
Commercial mortgage loans
|
9,170
|
|
447
|
|
4.88
|
|
|
9,131
|
|
429
|
|
4.69
|
|
|
9,005
|
|
358
|
|
3.97
|
|
||||||
Lease financing
|
557
|
|
19
|
|
3.44
|
|
|
470
|
|
18
|
|
3.82
|
|
|
509
|
|
13
|
|
2.63
|
|
||||||
International loans
|
1,019
|
|
52
|
|
5.13
|
|
|
1,021
|
|
51
|
|
4.97
|
|
|
1,157
|
|
47
|
|
4.07
|
|
||||||
Residential mortgage loans
|
1,929
|
|
74
|
|
3.85
|
|
|
1,983
|
|
75
|
|
3.77
|
|
|
1,989
|
|
74
|
|
3.70
|
|
||||||
Consumer loans
|
2,458
|
|
119
|
|
4.85
|
|
|
2,472
|
|
109
|
|
4.41
|
|
|
2,525
|
|
94
|
|
3.70
|
|
||||||
Total loans (a)
|
50,511
|
|
2,439
|
|
4.83
|
|
|
48,766
|
|
2,262
|
|
4.64
|
|
|
48,558
|
|
1,872
|
|
3.85
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities
|
9,348
|
|
230
|
|
2.44
|
|
|
9,099
|
|
214
|
|
2.28
|
|
|
9,330
|
|
202
|
|
2.17
|
|
||||||
Other investment securities
|
2,772
|
|
67
|
|
2.43
|
|
|
2,711
|
|
51
|
|
1.86
|
|
|
2,877
|
|
48
|
|
1.66
|
|
||||||
Total investment securities
|
12,120
|
|
297
|
|
2.44
|
|
|
11,810
|
|
265
|
|
2.19
|
|
|
12,207
|
|
250
|
|
2.05
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits with banks
|
3,360
|
|
69
|
|
2.05
|
|
|
4,700
|
|
91
|
|
1.94
|
|
|
5,443
|
|
60
|
|
1.09
|
|
||||||
Other short-term investments
|
143
|
|
2
|
|
1.26
|
|
|
134
|
|
1
|
|
0.96
|
|
|
92
|
|
—
|
|
0.64
|
|
||||||
Total earning assets
|
66,134
|
|
2,807
|
|
4.24
|
|
|
65,410
|
|
2,619
|
|
3.99
|
|
|
66,300
|
|
2,182
|
|
3.29
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and due from banks
|
887
|
|
|
|
|
1,135
|
|
|
|
|
1,209
|
|
|
|
||||||||||||
Allowance for loan losses
|
(667
|
)
|
|
|
|
(695
|
)
|
|
|
|
(728
|
)
|
|
|
||||||||||||
Accrued income and other assets
|
5,134
|
|
|
|
|
4,874
|
|
|
|
|
4,671
|
|
|
|
||||||||||||
Total assets
|
$
|
71,488
|
|
|
|
|
$
|
70,724
|
|
|
|
|
$
|
71,452
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Money market and interest-bearing checking deposits
|
$
|
23,417
|
|
214
|
|
0.91
|
|
|
$
|
22,378
|
|
111
|
|
0.50
|
|
|
$
|
21,585
|
|
33
|
|
0.15
|
|
|||
Savings deposits
|
2,166
|
|
1
|
|
0.05
|
|
|
2,199
|
|
1
|
|
0.04
|
|
|
2,133
|
|
—
|
|
0.02
|
|
||||||
Customer certificates of deposit
|
2,522
|
|
30
|
|
1.18
|
|
|
2,090
|
|
10
|
|
0.46
|
|
|
2,470
|
|
9
|
|
0.36
|
|
||||||
Other time deposits
|
705
|
|
17
|
|
2.44
|
|
|
2
|
|
—
|
|
1.86
|
|
|
1
|
|
—
|
|
1.10
|
|
||||||
Foreign office time deposits (b)
|
27
|
|
—
|
|
1.39
|
|
|
25
|
|
—
|
|
1.19
|
|
|
56
|
|
—
|
|
0.64
|
|
||||||
Total interest-bearing deposits
|
28,837
|
|
262
|
|
0.91
|
|
|
26,694
|
|
122
|
|
0.46
|
|
|
26,245
|
|
42
|
|
0.16
|
|
||||||
Short-term borrowings
|
369
|
|
9
|
|
2.39
|
|
|
62
|
|
1
|
|
1.93
|
|
|
277
|
|
3
|
|
1.14
|
|
||||||
Medium- and long-term debt
|
6,955
|
|
197
|
|
2.82
|
|
|
5,842
|
|
144
|
|
2.47
|
|
|
4,969
|
|
76
|
|
1.51
|
|
||||||
Total interest-bearing sources
|
36,161
|
|
468
|
|
1.29
|
|
|
32,598
|
|
267
|
|
0.82
|
|
|
31,491
|
|
121
|
|
0.38
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-bearing deposits
|
26,644
|
|
|
|
|
29,241
|
|
|
|
|
31,013
|
|
|
|
||||||||||||
Accrued expenses and other liabilities
|
1,375
|
|
|
|
|
1,076
|
|
|
|
|
996
|
|
|
|
||||||||||||
Total shareholders’ equity
|
7,308
|
|
|
|
|
7,809
|
|
|
|
|
7,952
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
$
|
71,488
|
|
|
|
|
$
|
70,724
|
|
|
|
|
$
|
71,452
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income/rate spread
|
|
$
|
2,339
|
|
2.95
|
|
|
|
$
|
2,352
|
|
3.17
|
|
|
|
$
|
2,061
|
|
2.91
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Impact of net noninterest-bearing sources of funds
|
|
|
0.59
|
|
|
|
|
0.41
|
|
|
|
|
0.20
|
|
||||||||||||
Net interest margin (as a percentage of average earning assets)
|
|
|
3.54
|
%
|
|
|
|
3.58
|
%
|
|
|
|
3.11
|
%
|
(a)
|
Nonaccrual loans are included in average balances reported and in the calculation of average rates.
|
(b)
|
Includes substantially all deposits by foreign depositors; deposits are primarily in excess of $100,000.
|
(in millions)
|
|
|
|
|
|
|
|
||||||||||||||||||
Years Ended December 31
|
2019/2018
|
|
2018/2017
|
||||||||||||||||||||||
|
Increase (Decrease)
Due to Rate
|
Increase
(Decrease)
Due to
Volume (a)
|
Net
Increase
(Decrease)
|
|
Increase
Due to Rate
|
Increase
(Decrease)
Due to
Volume (a)
|
Net
Increase
(Decrease)
|
||||||||||||||||||
Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans
|
$
|
54
|
|
|
$
|
74
|
|
|
$
|
128
|
|
|
|
$
|
248
|
|
|
$
|
6
|
|
|
$
|
254
|
|
|
Real estate construction loans
|
11
|
|
|
9
|
|
|
20
|
|
|
|
30
|
|
|
10
|
|
|
40
|
|
|
||||||
Commercial mortgage loans
|
16
|
|
|
2
|
|
|
18
|
|
|
|
65
|
|
|
6
|
|
|
71
|
|
|
||||||
Lease financing
|
(2
|
)
|
|
3
|
|
|
1
|
|
|
|
6
|
|
|
(1
|
)
|
|
5
|
|
|
||||||
International loans
|
1
|
|
|
—
|
|
|
1
|
|
|
|
11
|
|
|
(7
|
)
|
|
4
|
|
|
||||||
Residential mortgage loans
|
1
|
|
|
(2
|
)
|
|
(1
|
)
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
||||||
Consumer loans
|
11
|
|
|
(1
|
)
|
|
10
|
|
|
|
17
|
|
|
(2
|
)
|
|
15
|
|
|
||||||
Total loans
|
92
|
|
|
85
|
|
|
177
|
|
|
|
378
|
|
|
12
|
|
|
390
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
15
|
|
|
1
|
|
|
16
|
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|
||||||
Other investment securities
|
17
|
|
|
(1
|
)
|
|
16
|
|
|
|
5
|
|
|
(2
|
)
|
|
3
|
|
|
||||||
Total investment securities
|
32
|
|
|
—
|
|
|
32
|
|
|
|
17
|
|
|
(2
|
)
|
|
15
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits with banks
|
5
|
|
|
(27
|
)
|
|
(22
|
)
|
|
|
46
|
|
|
(15
|
)
|
|
31
|
|
|
||||||
Other short-term investments
|
—
|
|
|
1
|
|
|
1
|
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
||||||
Total interest income
|
129
|
|
|
59
|
|
|
188
|
|
|
|
442
|
|
|
(5
|
)
|
|
437
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Money market and interest-bearing checking deposits
|
96
|
|
|
7
|
|
|
103
|
|
|
|
74
|
|
|
4
|
|
|
78
|
|
|
||||||
Savings deposits
|
—
|
|
|
—
|
|
|
—
|
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
||||||
Customer certificates of deposit
|
10
|
|
|
10
|
|
|
20
|
|
|
|
3
|
|
|
(2
|
)
|
|
1
|
|
|
||||||
Other time deposits
|
—
|
|
|
17
|
|
|
17
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
Total interest-bearing deposits
|
106
|
|
|
34
|
|
|
140
|
|
|
|
78
|
|
|
2
|
|
|
80
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term borrowings
|
—
|
|
|
8
|
|
|
8
|
|
|
|
2
|
|
|
(4
|
)
|
|
(2
|
)
|
|
||||||
Medium- and long-term debt
|
16
|
|
|
37
|
|
|
53
|
|
|
|
50
|
|
|
18
|
|
|
68
|
|
|
||||||
Total interest expense
|
122
|
|
|
79
|
|
|
201
|
|
|
|
130
|
|
|
16
|
|
|
146
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
7
|
|
|
$
|
(20
|
)
|
|
$
|
(13
|
)
|
|
|
$
|
312
|
|
|
$
|
(21
|
)
|
|
$
|
291
|
|
|
(a)
|
Rate/volume variances are allocated to variances due to volume.
|
(in millions)
|
|
|
||||||||||
Years Ended December 31
|
2019
|
2018
|
2017 (a)
|
|||||||||
Card fees
|
$
|
257
|
|
|
$
|
244
|
|
|
$
|
333
|
|
|
Fiduciary income
|
206
|
|
|
206
|
|
|
198
|
|
|
|||
Service charges on deposit accounts
|
203
|
|
|
211
|
|
|
227
|
|
|
|||
Commercial lending fees
|
91
|
|
|
85
|
|
|
85
|
|
|
|||
Foreign exchange income
|
44
|
|
|
47
|
|
|
45
|
|
|
|||
Bank-owned life insurance
|
41
|
|
|
39
|
|
|
43
|
|
|
|||
Letter of credit fees
|
38
|
|
|
40
|
|
|
45
|
|
|
|||
Brokerage fees
|
28
|
|
|
27
|
|
|
23
|
|
|
|||
Net securities losses
|
(7
|
)
|
|
(19
|
)
|
|
—
|
|
|
|||
Other noninterest income (b)
|
109
|
|
|
96
|
|
|
108
|
|
|
|||
Total noninterest income
|
$
|
1,010
|
|
|
$
|
976
|
|
|
$
|
1,107
|
|
|
(a)
|
Card fees and fiduciary income in 2017 do not reflect the 2018 adoption of new accounting guidance for revenue from contracts with customers (Accounting Standards Codification Topic 606). Refer to page F-8 of the "Results of Operations" section in the Corporation's 2018 Annual Report for further information.
|
(b)
|
The table below provides further details on certain categories included in other noninterest income.
|
(a)
|
Compensation deferred by the Corporation's officers and directors is invested based on investment selections of the officers and directors. Income earned on these assets is reported in noninterest income and the offsetting change in deferred compensation plan liabilities is reported in salaries and benefits expense.
|
(b)
|
Gain on sale of the Corporation's Health Savings Account business.
|
(in millions)
|
|
|
||||||||||
Years Ended December 31
|
2019
|
2018
|
2017 (a)
|
|||||||||
Salaries and benefits expense
|
$
|
1,020
|
|
|
$
|
1,009
|
|
|
$
|
961
|
|
|
Outside processing fee expense
|
264
|
|
|
255
|
|
|
366
|
|
|
|||
Occupancy expense
|
154
|
|
|
152
|
|
|
154
|
|
|
|||
Software expense
|
117
|
|
|
125
|
|
|
126
|
|
|
|||
Equipment expense
|
50
|
|
|
48
|
|
|
45
|
|
|
|||
Advertising expense
|
34
|
|
|
30
|
|
|
28
|
|
|
|||
FDIC insurance expense
|
23
|
|
|
42
|
|
|
51
|
|
|
|||
Restructuring charges
|
—
|
|
|
53
|
|
|
45
|
|
|
|||
Other noninterest expenses
|
81
|
|
|
80
|
|
|
84
|
|
|
|||
Total noninterest expenses
|
$
|
1,743
|
|
|
$
|
1,794
|
|
|
$
|
1,860
|
|
|
(a)
|
Outside processing fee expense in 2017 does not reflect the 2018 adoption of new accounting guidance for revenue from contracts with customers (Accounting Standards Codification Topic 606). Refer to page F-8 of the "Results of Operations" section in the Corporation's 2018 Annual Report for further information.
|
(a)
|
Included losses, net of tax, of $6 million and $15 million in 2019 and 2018, respectively, due to repositioning the securities portfolio.
|
(b)
|
Included net discrete tax benefits of $17 million and $48 million in 2019 and 2018, respectively, and a net discrete tax charge of $72 million in 2017.
|
(a)
|
Included net discrete tax benefits of $17 million and $48 million in 2019 and 2018, respectively, and a net discrete tax charge of $72 million in 2017, as well as losses, net of tax, of $6 million and $15 million in 2019 and 2018, respectively, due to repositioning the securities portfolio.
|
December 31
|
2019
|
|
2018
|
|
2017
|
|||
Michigan
|
192
|
|
|
193
|
|
|
194
|
|
Texas
|
123
|
|
|
122
|
|
|
122
|
|
California
|
96
|
|
|
96
|
|
|
97
|
|
Other Markets:
|
|
|
|
|
|
|||
Arizona
|
17
|
|
|
17
|
|
|
17
|
|
Florida
|
7
|
|
|
7
|
|
|
7
|
|
Canada
|
1
|
|
1
|
|
|
1
|
|
|
Total Other Markets
|
25
|
|
|
25
|
|
|
25
|
|
Total
|
436
|
|
|
436
|
|
|
438
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and other U.S. government agency securities
|
$
|
2,792
|
|
|
$
|
2,727
|
|
|
$
|
2,727
|
|
|
$
|
2,779
|
|
|
$
|
2,763
|
|
Residential mortgage-backed securities (a)
|
9,606
|
|
|
9,318
|
|
(b)
|
8,124
|
|
|
7,872
|
|
|
7,545
|
|
|||||
State and municipal securities
|
—
|
|
|
—
|
|
|
5
|
|
|
7
|
|
|
9
|
|
|||||
Corporate debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Equity and other non-debt securities
|
—
|
|
|
—
|
|
|
82
|
|
|
129
|
|
|
201
|
|
|||||
Total investment securities available-for-sale
|
12,398
|
|
|
12,045
|
|
|
10,938
|
|
|
10,787
|
|
|
10,519
|
|
|||||
Investment securities held to maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed securities (a)
|
—
|
|
|
—
|
|
(b)
|
1,266
|
|
|
1,582
|
|
|
1,981
|
|
|||||
Total investment securities
|
$
|
12,398
|
|
|
$
|
12,045
|
|
|
$
|
12,204
|
|
|
$
|
12,369
|
|
|
$
|
12,500
|
|
Commercial loans
|
$
|
31,473
|
|
|
$
|
31,976
|
|
|
$
|
31,060
|
|
|
$
|
30,994
|
|
|
$
|
31,659
|
|
Real estate construction loans
|
3,455
|
|
|
3,077
|
|
|
2,961
|
|
|
2,869
|
|
|
2,001
|
|
|||||
Commercial mortgage loans
|
9,559
|
|
|
9,106
|
|
|
9,159
|
|
|
8,931
|
|
|
8,977
|
|
|||||
Lease financing
|
588
|
|
|
507
|
|
|
468
|
|
|
572
|
|
|
724
|
|
|||||
International loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Banks and other financial institutions
|
—
|
|
|
—
|
|
|
4
|
|
|
2
|
|
|
—
|
|
|||||
Commercial and industrial
|
1,009
|
|
|
1,013
|
|
|
979
|
|
|
1,256
|
|
|
1,368
|
|
|||||
Total international loans
|
1,009
|
|
|
1,013
|
|
|
983
|
|
|
1,258
|
|
|
1,368
|
|
|||||
Residential mortgage loans
|
1,845
|
|
|
1,970
|
|
|
1,988
|
|
|
1,942
|
|
|
1,870
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
1,711
|
|
|
1,765
|
|
|
1,816
|
|
|
1,800
|
|
|
1,720
|
|
|||||
Other consumer
|
729
|
|
|
749
|
|
|
738
|
|
|
722
|
|
|
765
|
|
|||||
Total consumer loans
|
2,440
|
|
|
2,514
|
|
|
2,554
|
|
|
2,522
|
|
|
2,485
|
|
|||||
Total loans
|
$
|
50,369
|
|
|
$
|
50,163
|
|
|
$
|
49,173
|
|
|
$
|
49,088
|
|
|
$
|
49,084
|
|
(a)
|
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.
|
(b)
|
Effective with the adoption of ASU 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” on January 1, 2018, the Corporation transferred residential mortgage-backed securities with a book value of approximately $1.3 billion from held-to-maturity to available-for-sale.
|
(dollar amounts in millions)
|
|
|
|
|
Percent
Change
|
|||||||||
Years Ended December 31
|
2019
|
|
2018
|
|
Change
|
|
||||||||
By Business Line:
|
|
|
|
|
|
|
|
|||||||
General Middle Market
|
$
|
12,134
|
|
|
$
|
11,800
|
|
|
$
|
334
|
|
|
3
|
%
|
National Dealer Services
|
7,652
|
|
|
7,294
|
|
|
358
|
|
|
5
|
|
|||
Energy
|
2,449
|
|
|
1,868
|
|
|
581
|
|
|
31
|
|
|||
Equity Fund Services
|
2,570
|
|
|
2,408
|
|
|
162
|
|
|
7
|
|
|||
Technology and Life Sciences
|
1,265
|
|
|
1,400
|
|
|
(135
|
)
|
|
(10
|
)
|
|||
Environmental Services
|
1,200
|
|
|
1,099
|
|
|
101
|
|
|
9
|
|
|||
Entertainment
|
739
|
|
|
731
|
|
|
8
|
|
|
1
|
|
|||
Total Middle Market
|
28,009
|
|
|
26,600
|
|
|
1,409
|
|
|
5
|
|
|||
Corporate Banking
|
4,231
|
|
|
4,337
|
|
|
(106
|
)
|
|
(2
|
)
|
|||
Mortgage Banker Finance
|
2,150
|
|
|
1,716
|
|
|
434
|
|
|
25
|
|
|||
Commercial Real Estate
|
5,595
|
|
|
5,287
|
|
|
308
|
|
|
6
|
|
|||
Small Business
|
3,487
|
|
|
3,678
|
|
|
(191
|
)
|
|
(5
|
)
|
|||
Total Business Bank
|
43,472
|
|
|
41,618
|
|
|
1,854
|
|
|
4
|
|
|||
Total Retail Bank
|
2,104
|
|
|
2,067
|
|
|
37
|
|
|
2
|
|
|||
Total Wealth Management
|
4,935
|
|
|
5,081
|
|
|
(146
|
)
|
|
(3
|
)
|
|||
Total loans
|
$
|
50,511
|
|
|
$
|
48,766
|
|
|
$
|
1,745
|
|
|
4
|
%
|
By Loan Type:
|
|
|
|
|
|
|
|
|||||||
Commercial
|
$
|
32,053
|
|
|
$
|
30,534
|
|
|
$
|
1,519
|
|
|
5
|
%
|
Real estate construction loans
|
3,325
|
|
|
3,155
|
|
|
170
|
|
|
5
|
|
|||
Commercial mortgage loans
|
9,170
|
|
|
9,131
|
|
|
39
|
|
|
—
|
|
|||
Lease financing
|
557
|
|
|
470
|
|
|
87
|
|
|
19
|
|
|||
International loans
|
1,019
|
|
|
1,021
|
|
|
(2
|
)
|
|
—
|
|
|||
Residential mortgage loans
|
1,929
|
|
|
1,983
|
|
|
(54
|
)
|
|
(3
|
)
|
|||
Consumer loans:
|
|
|
|
|
|
|
|
|||||||
Home equity
|
1,769
|
|
|
1,749
|
|
|
20
|
|
|
1
|
|
|||
Other consumer
|
689
|
|
|
723
|
|
|
(34
|
)
|
|
(5
|
)
|
|||
Total consumer loans
|
2,458
|
|
|
2,472
|
|
|
(14
|
)
|
|
(1
|
)
|
|||
Total loans
|
$
|
50,511
|
|
|
$
|
48,766
|
|
|
$
|
1,745
|
|
|
4
|
%
|
By Geographic Market:
|
|
|
|
|
|
|
|
|||||||
Michigan
|
$
|
12,553
|
|
|
$
|
12,531
|
|
|
$
|
22
|
|
|
—
|
%
|
California
|
18,540
|
|
|
18,283
|
|
|
257
|
|
|
1
|
|
|||
Texas
|
10,616
|
|
|
9,812
|
|
|
804
|
|
|
8
|
|
|||
Other Markets
|
8,802
|
|
|
8,140
|
|
|
662
|
|
|
8
|
|
|||
Total loans
|
$
|
50,511
|
|
|
$
|
48,766
|
|
|
$
|
1,745
|
|
|
4
|
%
|
|
Maturity (a)
|
Weighted
Average
Maturity
|
|||||||||||||||||||||||||
(dollar amounts in millions)
|
Within 1 Year
|
1 - 5 Years
|
5 - 10 Years
|
After 10 Years
|
Total
|
||||||||||||||||||||||
December 31, 2019
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Years
|
||||||||||||||||
U.S. Treasury and other U.S. government agency securities
|
$
|
30
|
|
1.68
|
%
|
$
|
2,762
|
|
2.48
|
%
|
$
|
—
|
|
—
|
%
|
$
|
—
|
|
—
|
%
|
$
|
2,792
|
|
2.47
|
%
|
2.2
|
|
Residential mortgage-backed securities (b)
|
—
|
|
—
|
|
132
|
|
3.62
|
|
1,013
|
|
2.26
|
|
8,461
|
|
2.42
|
|
9,606
|
|
2.42
|
|
22.3
|
|
|||||
Total investment securities
|
$
|
30
|
|
1.68
|
%
|
$
|
2,894
|
|
2.53
|
%
|
$
|
1,013
|
|
2.26
|
%
|
$
|
8,461
|
|
2.42
|
%
|
$
|
12,398
|
|
2.43
|
%
|
17.9
|
|
(dollar amounts in millions)
|
|
|
|
|
|
|
Percent
Change
|
|||||||
Years Ended December 31
|
2019
|
|
2018
|
|
Change
|
|
||||||||
Noninterest-bearing deposits
|
$
|
26,644
|
|
|
$
|
29,241
|
|
|
$
|
(2,597
|
)
|
|
(9
|
)%
|
Money market and interest-bearing checking deposits
|
23,417
|
|
|
22,378
|
|
|
1,039
|
|
|
5
|
|
|||
Savings deposits
|
2,166
|
|
|
2,199
|
|
|
(33
|
)
|
|
(2
|
)
|
|||
Customer certificates of deposit
|
2,522
|
|
|
2,090
|
|
|
432
|
|
|
21
|
|
|||
Other time deposits
|
705
|
|
|
2
|
|
|
703
|
|
|
n/m
|
|
|||
Foreign office time deposits
|
27
|
|
|
25
|
|
|
2
|
|
|
10
|
|
|||
Total deposits
|
$
|
55,481
|
|
|
$
|
55,935
|
|
|
$
|
(454
|
)
|
|
(1
|
)%
|
Short-term borrowings
|
$
|
369
|
|
|
$
|
62
|
|
|
$
|
307
|
|
|
n/m
|
|
Medium- and long-term debt
|
6,955
|
|
|
5,842
|
|
|
1,113
|
|
|
19
|
|
|||
Total borrowed funds
|
$
|
7,324
|
|
|
$
|
5,904
|
|
|
$
|
1,420
|
|
|
24
|
%
|
(shares in thousands)
|
Total Number of Shares
Purchased as Part of Publicly Announced Repurchase Plans or Programs |
|
Remaining Repurchase Authorization
(a) |
|
Total Number of Shares Purchased
(b) |
|
Average Price Paid Per
Share |
|||||
First quarter 2019
|
5,094
|
|
|
14,613
|
|
(c)
|
5,216
|
|
|
$
|
83.48
|
|
Second quarter 2019
|
5,656
|
|
|
8,957
|
|
|
5,658
|
|
|
75.13
|
|
|
Third quarter 2019
|
5,734
|
|
|
3,223
|
|
|
5,739
|
|
|
64.53
|
|
|
Fourth quarter 2019
|
2,126
|
|
|
8,097
|
|
(d)
|
2,137
|
|
|
70.44
|
|
|
Total 2019
|
18,610
|
|
|
8,097
|
|
|
18,750
|
|
|
$
|
73.67
|
|
(a)
|
In addition to the minimum risk-based capital requirements, the Corporation is required to maintain a minimum capital conservation buffer in the form of common equity, in order to avoid restrictions on capital distributions and discretionary bonuses.
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
(dollar amounts in millions)
|
Capital/Assets
|
|
Ratio
|
|
Capital/Assets
|
|
Ratio
|
||||||
Common equity tier 1 and tier 1 risk-based
|
$
|
6,919
|
|
|
10.13
|
%
|
|
$
|
7,470
|
|
|
11.14
|
%
|
Total risk-based
|
8,282
|
|
|
12.13
|
|
|
8,855
|
|
|
13.21
|
|
||
Leverage
|
6,919
|
|
|
9.51
|
|
|
7,470
|
|
|
10.51
|
|
||
Common equity
|
7,327
|
|
|
9.98
|
|
|
7,507
|
|
|
10.60
|
|
||
Tangible common equity (a)
|
6,688
|
|
|
9.19
|
|
|
6,866
|
|
|
9.78
|
|
||
Risk-weighted assets
|
68,273
|
|
|
|
|
67,047
|
|
|
|
(a)
|
See Supplemental Financial Data section for reconcilements of non-GAAP financial measures.
|
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
|||
Allowance for loan losses as a percentage of total loans at end of year
|
1.27
|
%
|
|
1.34
|
%
|
|
1.45
|
%
|
Allowance for loan losses as a multiple of total nonperforming loans at end of year
|
3.1x
|
|
|
2.9x
|
|
|
1.7x
|
|
Allowance for loan losses as a multiple of total net loan charge-offs for the year
|
6.0x
|
|
|
13.1x
|
|
|
7.7x
|
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Allocated
Allowance
|
Allowance
Ratio (a)
|
% (b)
|
|
Allocated
Allowance
|
% (b)
|
|
Allocated
Allowance
|
% (b)
|
|
Allocated
Allowance
|
% (b)
|
|
Allocated
Allowance
|
% (b)
|
||||||||||||||||
December 31
|
|
|
|
|
|||||||||||||||||||||||||||
Business loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
$
|
490
|
|
1.56
|
%
|
62
|
%
|
|
$
|
492
|
|
64
|
%
|
|
$
|
521
|
|
63
|
%
|
|
$
|
547
|
|
63
|
%
|
|
$
|
448
|
|
65
|
%
|
Real estate construction
|
17
|
|
0.49
|
|
7
|
|
|
19
|
|
6
|
|
|
19
|
|
6
|
|
|
21
|
|
6
|
|
|
12
|
|
4
|
|
|||||
Commercial mortgage
|
81
|
|
0.84
|
|
19
|
|
|
99
|
|
18
|
|
|
91
|
|
19
|
|
|
93
|
|
18
|
|
|
93
|
|
18
|
|
|||||
Lease financing
|
3
|
|
0.47
|
|
1
|
|
|
4
|
|
1
|
|
|
12
|
|
1
|
|
|
5
|
|
1
|
|
|
3
|
|
1
|
|
|||||
International
|
10
|
|
1.04
|
|
2
|
|
|
13
|
|
2
|
|
|
18
|
|
2
|
|
|
16
|
|
3
|
|
|
23
|
|
3
|
|
|||||
Total business loans
|
601
|
|
1.30
|
|
91
|
|
|
627
|
|
91
|
|
|
661
|
|
91
|
|
|
682
|
|
91
|
|
|
579
|
|
91
|
|
|||||
Retail loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
|
7
|
|
0.35
|
|
4
|
|
|
9
|
|
4
|
|
|
13
|
|
4
|
|
|
11
|
|
4
|
|
|
14
|
|
4
|
|
|||||
Consumer
|
29
|
|
1.21
|
|
5
|
|
|
35
|
|
5
|
|
|
38
|
|
5
|
|
|
37
|
|
5
|
|
|
41
|
|
5
|
|
|||||
Total retail loans
|
36
|
|
0.84
|
|
9
|
|
|
44
|
|
9
|
|
|
51
|
|
9
|
|
|
48
|
|
9
|
|
|
55
|
|
9
|
|
|||||
Total loans
|
$
|
637
|
|
1.27
|
%
|
100
|
%
|
|
$
|
671
|
|
100
|
%
|
|
$
|
712
|
|
100
|
%
|
|
$
|
730
|
|
100
|
%
|
|
$
|
634
|
|
100
|
%
|
(a)
|
Allocated allowance as a percentage of related loans outstanding.
|
(b)
|
Loans outstanding as a percentage of total loans.
|
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
148
|
|
|
$
|
141
|
|
|
$
|
309
|
|
|
$
|
445
|
|
|
$
|
238
|
|
Real estate construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Commercial mortgage
|
14
|
|
|
20
|
|
|
31
|
|
|
46
|
|
|
60
|
|
|||||
Lease financing
|
—
|
|
|
2
|
|
|
4
|
|
|
6
|
|
|
6
|
|
|||||
International
|
—
|
|
|
3
|
|
|
6
|
|
|
14
|
|
|
8
|
|
|||||
Total nonaccrual business loans
|
162
|
|
|
166
|
|
|
350
|
|
|
511
|
|
|
313
|
|
|||||
Retail loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
20
|
|
|
36
|
|
|
31
|
|
|
39
|
|
|
27
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
17
|
|
|
19
|
|
|
21
|
|
|
28
|
|
|
27
|
|
|||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|||||
Total consumer
|
17
|
|
|
19
|
|
|
21
|
|
|
32
|
|
|
27
|
|
|||||
Total nonaccrual retail loans
|
37
|
|
|
55
|
|
|
52
|
|
|
71
|
|
|
54
|
|
|||||
Total nonaccrual loans
|
199
|
|
|
221
|
|
|
402
|
|
|
582
|
|
|
367
|
|
|||||
Reduced-rate loans
|
5
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
12
|
|
|||||
Total nonperforming loans
|
204
|
|
|
229
|
|
|
410
|
|
|
590
|
|
|
379
|
|
|||||
Foreclosed property
|
11
|
|
|
1
|
|
|
5
|
|
|
17
|
|
|
12
|
|
|||||
Total nonperforming assets
|
$
|
215
|
|
|
$
|
230
|
|
|
$
|
415
|
|
|
$
|
607
|
|
|
$
|
391
|
|
Gross interest income that would have been recorded had the nonaccrual and reduced-rate loans performed in accordance with original terms
|
$
|
20
|
|
|
$
|
19
|
|
|
$
|
31
|
|
|
$
|
38
|
|
|
$
|
27
|
|
Interest income recognized
|
5
|
|
|
4
|
|
|
7
|
|
|
6
|
|
|
5
|
|
|||||
Nonperforming loans as a percentage of total loans
|
0.40
|
%
|
|
0.46
|
%
|
|
0.83
|
%
|
|
1.20
|
%
|
|
0.77
|
%
|
|||||
Loans past due 90 days or more and still accruing
|
$
|
26
|
|
|
$
|
16
|
|
|
$
|
35
|
|
|
$
|
19
|
|
|
$
|
17
|
|
(a)
|
TDRs that do not include a reduction in the original contractual interest rate which are performing in accordance with their modified terms.
|
(a)
|
Based on an analysis of nonaccrual loans with book balances greater than $2 million.
|
(b)
|
Includes net changes related to nonaccrual loans with balances less than $2 million, payments on nonaccrual loans with book balances greater than $2 million and transfers of nonaccrual loans to foreclosed property.
|
|
2019
|
|
2018
|
||||||||||
(dollar amounts in millions)
|
Number of
Borrowers
|
|
Balance
|
|
Number of
Borrowers
|
|
Balance
|
||||||
Under $2 million
|
708
|
|
|
$
|
74
|
|
|
799
|
|
|
$
|
78
|
|
$2 million - $5 million
|
8
|
|
|
22
|
|
|
14
|
|
|
41
|
|
||
$5 million - $10 million
|
6
|
|
|
49
|
|
|
10
|
|
|
69
|
|
||
$10 million - $25 million
|
4
|
|
|
54
|
|
|
2
|
|
|
33
|
|
||
Total
|
726
|
|
|
$
|
199
|
|
|
825
|
|
|
$
|
221
|
|
|
December 31, 2019
|
|
Year Ended December 31, 2019
|
|||||||||||||||||
(dollar amounts in millions)
|
Nonaccrual Loans
|
|
Loans Transferred to
Nonaccrual (a)
|
|
Net Loan Charge-Offs (Recoveries)
|
|||||||||||||||
Industry Category
|
|
|
||||||||||||||||||
Mining, Quarrying and Oil & Gas Extraction
|
$
|
43
|
|
|
22
|
%
|
|
$
|
128
|
|
|
56
|
%
|
|
$
|
86
|
|
|
81
|
%
|
Wholesale Trade
|
38
|
|
|
19
|
|
|
42
|
|
|
18
|
|
|
3
|
|
|
3
|
|
|||
Manufacturing
|
28
|
|
|
14
|
|
|
16
|
|
|
7
|
|
|
1
|
|
|
1
|
|
|||
Residential Mortgage
|
20
|
|
|
10
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||
Information & Communication
|
13
|
|
|
6
|
|
|
23
|
|
|
10
|
|
|
5
|
|
|
5
|
|
|||
Services
|
11
|
|
|
5
|
|
|
5
|
|
|
2
|
|
|
7
|
|
|
6
|
|
|||
Health Care & Social Assistance
|
6
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
8
|
|
|||
Real Estate & Home Builders
|
5
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
Contractors
|
4
|
|
|
2
|
|
|
3
|
|
|
1
|
|
|
(3
|
)
|
|
(3
|
)
|
|||
Other (b)
|
31
|
|
|
16
|
|
|
10
|
|
|
5
|
|
|
1
|
|
|
1
|
|
|||
Total
|
$
|
199
|
|
|
100
|
%
|
|
$
|
230
|
|
|
100
|
%
|
|
$
|
107
|
|
|
100
|
%
|
(a)
|
Based on an analysis of nonaccrual loans with book balances greater than $2 million.
|
(b)
|
Consumer, excluding residential mortgage and certain personal purpose nonaccrual loans and net charge-offs, is included in the Other category.
|
|
2019
|
|
2018
|
||||||||||
(in millions)
|
Loans
Outstanding
|
|
Percent of
Total Loans
|
|
Loans
Outstanding
|
|
Percent of
Total Loans
|
||||||
December 31
|
|
|
|
||||||||||
Production:
|
|
|
|
|
|
|
|
||||||
Domestic
|
$
|
963
|
|
|
|
|
$
|
946
|
|
|
|
||
Foreign
|
286
|
|
|
|
|
385
|
|
|
|
||||
Total production
|
1,249
|
|
|
2.5
|
%
|
|
1,331
|
|
|
2.7
|
%
|
||
Dealer:
|
|
|
|
|
|
|
|
||||||
Floor plan
|
3,967
|
|
|
|
|
4,678
|
|
|
|
||||
Other
|
3,447
|
|
|
|
|
3,419
|
|
|
|
||||
Total dealer
|
7,414
|
|
|
14.7
|
%
|
|
8,097
|
|
|
16.1
|
%
|
||
Total automotive
|
$
|
8,663
|
|
|
17.2
|
%
|
|
$
|
9,428
|
|
|
18.8
|
%
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(in millions)
|
Commercial Real Estate business line (a)
|
|
Other (b)
|
|
Total
|
|
Commercial Real Estate business line (a)
|
|
Other (b)
|
|
Total
|
||||||||||||
Real estate construction loans
|
$
|
3,044
|
|
|
$
|
411
|
|
|
$
|
3,455
|
|
|
$
|
2,687
|
|
|
$
|
390
|
|
|
$
|
3,077
|
|
Commercial mortgage loans
|
2,176
|
|
|
7,383
|
|
|
9,559
|
|
|
1,743
|
|
|
7,363
|
|
|
9,106
|
|
||||||
Total commercial real estate
|
$
|
5,220
|
|
|
$
|
7,794
|
|
|
$
|
13,014
|
|
|
$
|
4,430
|
|
|
$
|
7,753
|
|
|
$
|
12,183
|
|
(a)
|
Primarily loans to real estate developers.
|
(b)
|
Primarily loans secured by owner-occupied real estate.
|
|
2019
|
|
2018
|
||||||||||||||||||||||||
(dollar amounts in millions) December 31
|
Residential
Mortgage Loans |
|
% of
Total |
|
Home
Equity Loans |
|
% of
Total |
|
Residential
Mortgage Loans |
|
% of
Total |
|
Home
Equity Loans |
|
% of
Total |
||||||||||||
Geographic market:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Michigan
|
$
|
412
|
|
|
22
|
%
|
|
$
|
603
|
|
|
35
|
%
|
|
$
|
406
|
|
|
21
|
%
|
|
$
|
650
|
|
|
37
|
%
|
California
|
932
|
|
|
51
|
|
|
699
|
|
|
41
|
|
|
993
|
|
|
50
|
|
|
710
|
|
|
40
|
|
||||
Texas
|
275
|
|
|
15
|
|
|
346
|
|
|
20
|
|
|
310
|
|
|
16
|
|
|
346
|
|
|
20
|
|
||||
Other Markets
|
226
|
|
|
12
|
|
|
63
|
|
|
4
|
|
|
261
|
|
|
13
|
|
|
59
|
|
|
3
|
|
||||
Total
|
$
|
1,845
|
|
|
100
|
%
|
|
$
|
1,711
|
|
|
100
|
%
|
|
$
|
1,970
|
|
|
100
|
%
|
|
$
|
1,765
|
|
|
100
|
%
|
(a)
|
Includes nonaccrual loans.
|
|
Loans Maturing
|
||||||||||||||
(in millions)
December 31, 2019
|
Within One
Year (a)
|
|
After One
But Within
Five Years
|
|
After
Five Years
|
|
Total
|
||||||||
Commercial loans
|
$
|
15,068
|
|
|
$
|
15,423
|
|
|
$
|
982
|
|
|
$
|
31,473
|
|
Real estate construction loans
|
1,321
|
|
|
1,978
|
|
|
156
|
|
|
3,455
|
|
||||
Commercial mortgage loans
|
1,856
|
|
|
4,922
|
|
|
2,781
|
|
|
9,559
|
|
||||
International loans
|
343
|
|
|
583
|
|
|
83
|
|
|
1,009
|
|
||||
Total
|
$
|
18,588
|
|
|
$
|
22,906
|
|
|
$
|
4,002
|
|
|
$
|
45,496
|
|
Sensitivity of loans to changes in interest rates:
|
|
|
|
|
|
|
|
||||||||
Predetermined (fixed) interest rates
|
$
|
595
|
|
|
$
|
2,147
|
|
|
$
|
588
|
|
|
$
|
3,330
|
|
Floating interest rates
|
17,993
|
|
|
20,759
|
|
|
3,414
|
|
|
42,166
|
|
||||
Total
|
$
|
18,588
|
|
|
$
|
22,906
|
|
|
$
|
4,002
|
|
|
$
|
45,496
|
|
(a)
|
Includes demand loans, loans having no stated repayment schedule or maturity and overdrafts.
|
(in millions)
Risk Management Notional Activity
|
Interest
Rate
Contracts
|
|
Foreign
Exchange
Contracts
|
|
Totals
|
||||||
Balance at January 1, 2018
|
$
|
1,775
|
|
|
$
|
650
|
|
|
$
|
2,425
|
|
Additions
|
850
|
|
|
10,095
|
|
|
10,945
|
|
|||
Maturities/amortizations
|
—
|
|
|
(10,443
|
)
|
|
(10,443
|
)
|
|||
Balance at December 31, 2018
|
$
|
2,625
|
|
|
$
|
302
|
|
|
$
|
2,927
|
|
Additions
|
5,600
|
|
|
7,922
|
|
|
13,522
|
|
|||
Maturities/amortizations
|
(350
|
)
|
|
(7,894
|
)
|
|
(8,244
|
)
|
|||
Balance at December 31, 2019
|
$
|
7,875
|
|
|
$
|
330
|
|
|
$
|
8,205
|
|
(in millions)
Customer-Initiated and Other Notional Activity
|
Interest
Rate
Contracts
|
|
Energy
Derivative
Contracts
|
|
Foreign
Exchange
Contracts
|
|
Totals
|
||||||||
Balance at January 1, 2018
|
$
|
14,389
|
|
|
$
|
1,847
|
|
|
$
|
1,884
|
|
|
$
|
18,120
|
|
Additions
|
4,245
|
|
|
2,287
|
|
|
50,220
|
|
|
56,752
|
|
||||
Maturities/amortizations
|
(2,195
|
)
|
|
(1,481
|
)
|
|
(50,639
|
)
|
|
(54,315
|
)
|
||||
Terminations
|
(1,554
|
)
|
|
(3
|
)
|
|
(370
|
)
|
|
(1,927
|
)
|
||||
Balance at December 31, 2018
|
$
|
14,885
|
|
|
$
|
2,650
|
|
|
$
|
1,095
|
|
|
$
|
18,630
|
|
Additions
|
6,411
|
|
|
2,719
|
|
|
38,805
|
|
|
47,935
|
|
||||
Maturities/amortizations
|
(2,289
|
)
|
|
(2,198
|
)
|
|
(38,887
|
)
|
|
(43,374
|
)
|
||||
Terminations
|
(1,180
|
)
|
|
(82
|
)
|
|
—
|
|
|
(1,262
|
)
|
||||
Balance at December 31, 2019
|
$
|
17,827
|
|
|
$
|
3,089
|
|
|
$
|
1,013
|
|
|
$
|
21,929
|
|
|
Minimum Payments Due by Period
|
||||||||||||||||||
(in millions)
December 31, 2019
|
Total
|
|
Less than
1 Year
|
|
1-3
Years
|
|
4-5
Years
|
|
More than
5 Years
|
||||||||||
Deposits without a stated maturity (a)
|
$
|
54,093
|
|
|
$
|
54,093
|
|
|
|
|
|
|
|
|
|
|
|||
Certificates of deposit and other deposits with a stated maturity (a)
|
3,202
|
|
|
2,970
|
|
|
180
|
|
|
26
|
|
|
26
|
|
|||||
Short-term borrowings (a)
|
71
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Medium- and long-term debt (a)
|
7,125
|
|
|
675
|
|
|
—
|
|
|
1,350
|
|
|
5,100
|
|
|||||
Operating leases
|
438
|
|
|
60
|
|
|
115
|
|
|
88
|
|
|
175
|
|
|||||
Commitments to fund low income housing partnerships
|
160
|
|
|
98
|
|
|
52
|
|
|
5
|
|
|
5
|
|
|||||
Other long-term obligations (b)
|
356
|
|
|
101
|
|
|
92
|
|
|
34
|
|
|
129
|
|
|||||
Total contractual obligations
|
$
|
65,445
|
|
|
$
|
58,068
|
|
|
$
|
439
|
|
|
$
|
1,503
|
|
|
$
|
5,435
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Medium- and long-term debt (parent company only) (a) (c)
|
$
|
1,650
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
850
|
|
|
$
|
800
|
|
(a)
|
Deposits and borrowings exclude accrued interest.
|
(b)
|
Includes unrecognized tax benefits.
|
(c)
|
Parent company only amounts are included in the medium- and long-term debt minimum payments above.
|
|
Expected Expiration Dates by Period
|
||||||||||||||||||
(in millions)
December 31, 2019
|
Total
|
|
Less than
1 Year
|
|
1-3
Years
|
|
4-5
Years
|
|
More than
5 Years
|
||||||||||
Unused commitments to extend credit
|
$
|
26,861
|
|
|
$
|
10,863
|
|
|
$
|
8,648
|
|
|
$
|
4,507
|
|
|
$
|
2,843
|
|
Standby letters of credit and financial guarantees
|
3,320
|
|
|
2,837
|
|
|
319
|
|
|
103
|
|
|
61
|
|
|||||
Commercial letters of credit
|
18
|
|
|
17
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total commercial commitments
|
$
|
30,199
|
|
|
$
|
13,717
|
|
|
$
|
8,967
|
|
|
$
|
4,611
|
|
|
$
|
2,904
|
|
|
Comerica Incorporated
|
|
Comerica Bank
|
||||
December 31, 2019
|
Rating
|
Outlook
|
|
Rating
|
Outlook
|
||
Standard and Poor’s
|
BBB+
|
Stable
|
|
|
A-
|
Stable
|
|
Moody’s Investors Service
|
A3
|
Stable
|
|
|
A3
|
Stable
|
|
Fitch Ratings
|
A
|
Negative
|
|
|
A
|
Negative
|
|
Discount rate
|
3.43
|
%
|
Long-term rate of return on plan assets
|
6.50
|
%
|
Mortality table:
|
|
|
Base table (a)
|
Pri-2012
|
|
Mortality improvement scale (a)
|
MP-2019
|
|
(a)
|
Issued by the Society of Actuaries in October 2019.
|
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Tangible Common Equity Ratio:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shareholders' equity
|
$
|
7,327
|
|
|
$
|
7,507
|
|
|
$
|
7,963
|
|
|
$
|
7,796
|
|
|
$
|
7,560
|
|
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
635
|
|
|
635
|
|
|
635
|
|
|
635
|
|
|
635
|
|
|||||
Other intangible assets
|
4
|
|
|
6
|
|
|
8
|
|
|
10
|
|
|
14
|
|
|||||
Tangible common equity
|
$
|
6,688
|
|
|
$
|
6,866
|
|
|
$
|
7,320
|
|
|
$
|
7,151
|
|
|
$
|
6,911
|
|
Total assets
|
$
|
73,402
|
|
|
$
|
70,818
|
|
|
$
|
71,567
|
|
|
$
|
72,978
|
|
|
$
|
71,877
|
|
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
635
|
|
|
635
|
|
|
635
|
|
|
635
|
|
|
635
|
|
|||||
Other intangible assets
|
4
|
|
|
6
|
|
|
8
|
|
|
10
|
|
|
14
|
|
|||||
Tangible assets
|
$
|
72,763
|
|
|
$
|
70,177
|
|
|
$
|
70,924
|
|
|
$
|
72,333
|
|
|
$
|
71,228
|
|
Common equity ratio
|
9.98
|
%
|
|
10.60
|
%
|
|
11.13
|
%
|
|
10.68
|
%
|
|
10.52
|
%
|
|||||
Tangible common equity ratio
|
9.19
|
|
|
9.78
|
|
|
10.32
|
|
|
9.89
|
|
|
9.70
|
|
|||||
Tangible Common Equity per Share of Common Stock:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shareholders' equity
|
$
|
7,327
|
|
|
$
|
7,507
|
|
|
$
|
7,963
|
|
|
$
|
7,796
|
|
|
$
|
7,560
|
|
Tangible common equity
|
6,688
|
|
|
6,866
|
|
|
7,320
|
|
|
7,151
|
|
|
6,911
|
|
|||||
Shares of common stock outstanding (in millions)
|
142
|
|
|
160
|
|
|
173
|
|
|
175
|
|
|
176
|
|
|||||
Common shareholders' equity per share of common stock
|
$
|
51.57
|
|
|
$
|
46.89
|
|
|
$
|
46.07
|
|
|
$
|
44.47
|
|
|
$
|
43.03
|
|
Tangible common equity per share of common stock
|
47.07
|
|
|
42.89
|
|
|
42.34
|
|
|
40.79
|
|
|
39.33
|
|
•
|
unfavorable developments concerning credit quality could adversely affect the Corporation's financial results;
|
•
|
declines in the businesses or industries of the Corporation's customers could cause increased credit losses or decreased loan balances, which could adversely affect the Corporation;
|
•
|
changes in customer behavior may adversely impact the Corporation's business, financial condition and results of operations;
|
•
|
governmental monetary and fiscal policies may adversely affect the financial services industry, and therefore impact the Corporation's financial condition and results of operations;
|
•
|
fluctuations in interest rates and their impact on deposit pricing could adversely affect the Corporation's net interest income and balance sheet;
|
•
|
developments impacting LIBOR and other interest rate benchmarks could adversely affect the Corporation;
|
•
|
the Corporation must maintain adequate sources of funding and liquidity to meet regulatory expectations, support its operations and fund outstanding liabilities;
|
•
|
reduction in the Corporation's credit ratings could adversely affect the Corporation and/or the holders of its securities;
|
•
|
the soundness of other financial institutions could adversely affect the Corporation;
|
•
|
security risks, including denial of service attacks, hacking, social engineering attacks targeting the Corporation’s colleagues and customers, malware intrusion or data corruption attempts, and identity theft, could result in the disclosure of confidential information;
|
•
|
cybersecurity and data privacy are areas of heightened legislative and regulatory focus;
|
•
|
the Corporation’s operational or security systems or infrastructure, or those of third parties, could fail or be breached;
|
•
|
the Corporation relies on other companies to provide certain key components of its delivery systems, and certain failures could materially adversely affect operations;
|
•
|
legal and regulatory proceedings and related financial services industry matters, including those directly involving the Corporation and its subsidiaries, could adversely affect the Corporation or the financial services industry in general;
|
•
|
the Corporation may incur losses due to fraud;
|
•
|
controls and procedures may fail to prevent or detect all errors or acts of fraud;
|
•
|
changes in regulation or oversight may have a material adverse impact on the Corporation's operations;
|
•
|
compliance with more stringent capital requirements may adversely affect the Corporation;
|
•
|
the impacts of future legislative, administrative or judicial changes or interpretations to tax regulations are unknown;
|
•
|
changes in accounting standards could materially impact the Corporation's financial statements;
|
•
|
the Corporation's accounting policies and processes are critical to the reporting of financial condition and results of operations and require management to make estimates about matters that are uncertain;
|
•
|
damage to the Corporation’s reputation could damage its businesses;
|
•
|
the Corporation may not be able to utilize technology to develop, market and deliver new products and services to its customers;
|
•
|
competitive product and pricing pressures within the Corporation's markets may change;
|
•
|
the introduction, implementation, withdrawal, success and timing of business initiatives and strategies may be less successful or may be different than anticipated, which could adversely affect the Corporation's business;
|
•
|
management's ability to maintain and expand customer relationships may differ from expectations;
|
•
|
management's ability to retain key officers and employees may change;
|
•
|
any future strategic acquisitions or divestitures may present certain risks to the Corporation's business and operations;
|
•
|
general political, economic or industry conditions, either domestically or internationally, may be less favorable than expected;
|
•
|
methods of reducing risk exposures might not be effective;
|
•
|
catastrophic events may adversely affect the general economy, financial and capital markets, specific industries, and the Corporation; and
|
•
|
the Corporation's stock price can be volatile.
|
(in millions, except share data)
|
|
|
|
||||
December 31
|
2019
|
|
2018
|
||||
|
|
|
|
||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
973
|
|
|
$
|
1,390
|
|
|
|
|
|
||||
Interest-bearing deposits with banks
|
4,845
|
|
|
3,171
|
|
||
Other short-term investments
|
155
|
|
|
134
|
|
||
|
|
|
|
||||
Investment securities available-for-sale
|
12,398
|
|
|
12,045
|
|
||
|
|
|
|
||||
Commercial loans
|
31,473
|
|
|
31,976
|
|
||
Real estate construction loans
|
3,455
|
|
|
3,077
|
|
||
Commercial mortgage loans
|
9,559
|
|
|
9,106
|
|
||
Lease financing
|
588
|
|
|
507
|
|
||
International loans
|
1,009
|
|
|
1,013
|
|
||
Residential mortgage loans
|
1,845
|
|
|
1,970
|
|
||
Consumer loans
|
2,440
|
|
|
2,514
|
|
||
Total loans
|
50,369
|
|
|
50,163
|
|
||
Less allowance for loan losses
|
(637
|
)
|
|
(671
|
)
|
||
Net loans
|
49,732
|
|
|
49,492
|
|
||
Premises and equipment
|
457
|
|
|
475
|
|
||
Accrued income and other assets
|
4,842
|
|
|
4,111
|
|
||
Total assets
|
$
|
73,402
|
|
|
$
|
70,818
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Noninterest-bearing deposits
|
$
|
27,382
|
|
|
$
|
28,690
|
|
|
|
|
|
||||
Money market and interest-bearing checking deposits
|
24,527
|
|
|
22,560
|
|
||
Savings deposits
|
2,184
|
|
|
2,172
|
|
||
Customer certificates of deposit
|
2,978
|
|
|
2,131
|
|
||
Other time deposits
|
133
|
|
|
—
|
|
||
Foreign office time deposits
|
91
|
|
|
8
|
|
||
Total interest-bearing deposits
|
29,913
|
|
|
26,871
|
|
||
Total deposits
|
57,295
|
|
|
55,561
|
|
||
Short-term borrowings
|
71
|
|
|
44
|
|
||
Accrued expenses and other liabilities
|
1,440
|
|
|
1,243
|
|
||
Medium- and long-term debt
|
7,269
|
|
|
6,463
|
|
||
Total liabilities
|
66,075
|
|
|
63,311
|
|
||
|
|
|
|
||||
Common stock - $5 par value:
|
|
|
|
||||
Authorized - 325,000,000 shares
|
|
|
|
||||
Issued - 228,164,824 shares
|
1,141
|
|
|
1,141
|
|
||
Capital surplus
|
2,174
|
|
|
2,148
|
|
||
Accumulated other comprehensive loss
|
(235
|
)
|
|
(609
|
)
|
||
Retained earnings
|
9,538
|
|
|
8,781
|
|
||
Less cost of common stock in treasury - 86,069,234 shares at 12/31/19 and 68,081,176 shares at 12/31/18
|
(5,291
|
)
|
|
(3,954
|
)
|
||
Total shareholders’ equity
|
7,327
|
|
|
7,507
|
|
||
Total liabilities and shareholders’ equity
|
$
|
73,402
|
|
|
$
|
70,818
|
|
(in millions)
|
|
|
|
|
|
||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
INTEREST INCOME
|
|
|
|
|
|
||||||
Interest and fees on loans
|
$
|
2,439
|
|
|
$
|
2,262
|
|
|
$
|
1,872
|
|
Interest on investment securities
|
297
|
|
|
265
|
|
|
250
|
|
|||
Interest on short-term investments
|
71
|
|
|
92
|
|
|
60
|
|
|||
Total interest income
|
2,807
|
|
|
2,619
|
|
|
2,182
|
|
|||
INTEREST EXPENSE
|
|
|
|
|
|
||||||
Interest on deposits
|
262
|
|
|
122
|
|
|
42
|
|
|||
Interest on short-term borrowings
|
9
|
|
|
1
|
|
|
3
|
|
|||
Interest on medium- and long-term debt
|
197
|
|
|
144
|
|
|
76
|
|
|||
Total interest expense
|
468
|
|
|
267
|
|
|
121
|
|
|||
Net interest income
|
2,339
|
|
|
2,352
|
|
|
2,061
|
|
|||
Provision for credit losses
|
74
|
|
|
(1
|
)
|
|
74
|
|
|||
Net interest income after provision for credit losses
|
2,265
|
|
|
2,353
|
|
|
1,987
|
|
|||
NONINTEREST INCOME
|
|
|
|
|
|
||||||
Card fees
|
257
|
|
|
244
|
|
|
333
|
|
|||
Fiduciary income
|
206
|
|
|
206
|
|
|
198
|
|
|||
Service charges on deposit accounts
|
203
|
|
|
211
|
|
|
227
|
|
|||
Commercial lending fees
|
91
|
|
|
85
|
|
|
85
|
|
|||
Foreign exchange income
|
44
|
|
|
47
|
|
|
45
|
|
|||
Bank-owned life insurance
|
41
|
|
|
39
|
|
|
43
|
|
|||
Letter of credit fees
|
38
|
|
|
40
|
|
|
45
|
|
|||
Brokerage fees
|
28
|
|
|
27
|
|
|
23
|
|
|||
Net securities losses
|
(7
|
)
|
|
(19
|
)
|
|
—
|
|
|||
Other noninterest income
|
109
|
|
|
96
|
|
|
108
|
|
|||
Total noninterest income
|
1,010
|
|
|
976
|
|
|
1,107
|
|
|||
NONINTEREST EXPENSES
|
|
|
|
|
|
||||||
Salaries and benefits expense
|
1,020
|
|
|
1,009
|
|
|
961
|
|
|||
Outside processing fee expense
|
264
|
|
|
255
|
|
|
366
|
|
|||
Occupancy expense
|
154
|
|
|
152
|
|
|
154
|
|
|||
Software expense
|
117
|
|
|
125
|
|
|
126
|
|
|||
Equipment expense
|
50
|
|
|
48
|
|
|
45
|
|
|||
Advertising expense
|
34
|
|
|
30
|
|
|
28
|
|
|||
FDIC insurance expense
|
23
|
|
|
42
|
|
|
51
|
|
|||
Restructuring charges
|
—
|
|
|
53
|
|
|
45
|
|
|||
Other noninterest expenses
|
81
|
|
|
80
|
|
|
84
|
|
|||
Total noninterest expenses
|
1,743
|
|
|
1,794
|
|
|
1,860
|
|
|||
Income before income taxes
|
1,532
|
|
|
1,535
|
|
|
1,234
|
|
|||
Provision for income taxes
|
334
|
|
|
300
|
|
|
491
|
|
|||
NET INCOME
|
1,198
|
|
|
1,235
|
|
|
743
|
|
|||
Less income allocated to participating securities
|
7
|
|
|
8
|
|
|
5
|
|
|||
Net income attributable to common shares
|
$
|
1,191
|
|
|
$
|
1,227
|
|
|
$
|
738
|
|
Earnings per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
7.95
|
|
|
$
|
7.31
|
|
|
$
|
4.23
|
|
Diluted
|
7.87
|
|
|
7.20
|
|
|
4.14
|
|
|||
|
|
|
|
|
|
||||||
Cash dividends declared on common stock
|
398
|
|
|
309
|
|
|
193
|
|
|||
Cash dividends declared per common share
|
2.68
|
|
|
1.84
|
|
|
1.09
|
|
(in millions)
|
|
|
|
|
|
||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
||||||
NET INCOME
|
$
|
1,198
|
|
|
$
|
1,235
|
|
|
$
|
743
|
|
|
|
|
|
|
|
||||||
OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
||||||
Net unrealized holding gains (losses) arising during the period
|
257
|
|
|
(69
|
)
|
|
(81
|
)
|
|||
Less:
|
|
|
|
|
|
||||||
Reclassification adjustment for net securities losses included in net income
|
(8
|
)
|
|
(20
|
)
|
|
—
|
|
|||
Net losses realized as a yield adjustment in interest on investment securities
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||
Change in net unrealized gains (losses) before income taxes
|
265
|
|
|
(49
|
)
|
|
(78
|
)
|
|||
|
|
|
|
|
|
||||||
Net gains on cash flow hedges:
|
|
|
|
|
|
||||||
Change in net cash flow hedge gains before income taxes
|
44
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Defined benefit pension and other postretirement plans adjustment:
|
|
|
|
|
|
||||||
Actuarial gain (loss) arising during the period
|
163
|
|
|
(191
|
)
|
|
72
|
|
|||
Adjustments for amounts recognized as components of net periodic benefit cost:
|
|
|
|
|
|
||||||
Amortization of actuarial net loss
|
42
|
|
|
61
|
|
|
51
|
|
|||
Amortization of prior service credit
|
(27
|
)
|
|
(27
|
)
|
|
(27
|
)
|
|||
Change in defined benefit pension and other postretirement plans adjustment before income taxes
|
178
|
|
|
(157
|
)
|
|
96
|
|
|||
|
|
|
|
|
|
||||||
Total other comprehensive income (loss) before income taxes
|
487
|
|
|
(206
|
)
|
|
18
|
|
|||
Provision (benefit) for income taxes
|
113
|
|
|
(47
|
)
|
|
(1
|
)
|
|||
Total other comprehensive income (loss), net of tax
|
374
|
|
|
(159
|
)
|
|
19
|
|
|||
|
|
|
|
|
|
||||||
COMPREHENSIVE INCOME
|
$
|
1,572
|
|
|
$
|
1,076
|
|
|
$
|
762
|
|
|
Common Stock
|
|
|
|
Accumulated
Other
Comprehensive
Loss
|
|
|
|
|
|
Total
Shareholders’
Equity
|
|||||||||||||||
(in millions, except per share data)
|
Shares
Outstanding
|
|
Amount
|
|
Capital
Surplus
|
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
|||||||||||||||
BALANCE AT DECEMBER 31, 2016
|
175.3
|
|
|
$
|
1,141
|
|
|
$
|
2,135
|
|
|
$
|
(383
|
)
|
|
$
|
7,331
|
|
|
$
|
(2,428
|
)
|
|
$
|
7,796
|
|
Cumulative effect of change in accounting principle
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
1
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
743
|
|
|
—
|
|
|
743
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
||||||
Cash dividends declared on common stock ($1.09 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(193
|
)
|
|
—
|
|
|
(193
|
)
|
||||||
Purchase of common stock
|
(7.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(544
|
)
|
|
(544
|
)
|
||||||
Net issuance of common stock under employee stock plans
|
3.3
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(26
|
)
|
|
152
|
|
|
102
|
|
||||||
Net issuance of common stock for warrants
|
1.8
|
|
|
—
|
|
|
(30
|
)
|
|
—
|
|
|
(53
|
)
|
|
83
|
|
|
—
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||||
Reclassification of certain deferred tax effects
|
—
|
|
|
—
|
|
|
—
|
|
|
(87
|
)
|
|
87
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
BALANCE AT DECEMBER 31, 2017
|
172.9
|
|
|
1,141
|
|
|
2,122
|
|
|
(451
|
)
|
|
7,887
|
|
|
(2,736
|
)
|
|
7,963
|
|
||||||
Cumulative effect of change in accounting principles
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
14
|
|
|
—
|
|
|
15
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,235
|
|
|
—
|
|
|
1,235
|
|
||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(159
|
)
|
|
—
|
|
|
—
|
|
|
(159
|
)
|
||||||
Cash dividends declared on common stock ($1.84 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(309
|
)
|
|
—
|
|
|
(309
|
)
|
||||||
Purchase of common stock
|
(14.9
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(1,326
|
)
|
|
(1,329
|
)
|
||||||
Net issuance of common stock under employee stock plans
|
1.5
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(23
|
)
|
|
75
|
|
|
43
|
|
||||||
Net issuance of common stock for warrants
|
0.6
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(23
|
)
|
|
33
|
|
|
—
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
||||||
BALANCE AT DECEMBER 31, 2018
|
160.1
|
|
|
1,141
|
|
|
2,148
|
|
|
(609
|
)
|
|
8,781
|
|
|
(3,954
|
)
|
|
7,507
|
|
||||||
Cumulative effect of change in accounting principle
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,198
|
|
|
—
|
|
|
1,198
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
374
|
|
|
—
|
|
|
—
|
|
|
374
|
|
||||||
Cash dividends declared on common stock ($2.68 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(398
|
)
|
|
—
|
|
|
(398
|
)
|
||||||
Purchase of common stock
|
(18.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,380
|
)
|
|
(1,380
|
)
|
||||||
Net issuance of common stock under employee stock plans
|
0.7
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(29
|
)
|
|
43
|
|
|
1
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||||
BALANCE AT DECEMBER 31, 2019
|
142.1
|
|
|
$
|
1,141
|
|
|
$
|
2,174
|
|
|
$
|
(235
|
)
|
|
$
|
9,538
|
|
|
$
|
(5,291
|
)
|
|
$
|
7,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(in millions)
|
|
|
|
|
|
||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
||||||
Net income
|
$
|
1,198
|
|
|
$
|
1,235
|
|
|
$
|
743
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for credit losses
|
74
|
|
|
(1
|
)
|
|
74
|
|
|||
Provision for deferred income taxes
|
12
|
|
|
24
|
|
|
79
|
|
|||
Depreciation and amortization
|
114
|
|
|
120
|
|
|
121
|
|
|||
Net periodic defined benefit credit
|
(29
|
)
|
|
(18
|
)
|
|
(18
|
)
|
|||
Share-based compensation expense
|
39
|
|
|
48
|
|
|
39
|
|
|||
Net amortization of securities
|
2
|
|
|
3
|
|
|
6
|
|
|||
Accretion of loan purchase discount
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
|||
Net securities losses
|
7
|
|
|
19
|
|
|
—
|
|
|||
Net gains on sales of foreclosed property
|
1
|
|
|
(1
|
)
|
|
(3
|
)
|
|||
Net change in:
|
|
|
|
|
|
||||||
Accrued income receivable
|
17
|
|
|
(45
|
)
|
|
(33
|
)
|
|||
Accrued expenses payable
|
(27
|
)
|
|
49
|
|
|
41
|
|
|||
Other, net
|
(318
|
)
|
|
184
|
|
|
39
|
|
|||
Net cash provided by operating activities
|
1,090
|
|
|
1,616
|
|
|
1,085
|
|
|||
INVESTING ACTIVITIES
|
|
|
|
|
|
||||||
Investment securities available-for-sale:
|
|
|
|
|
|
||||||
Maturities and redemptions
|
2,262
|
|
|
1,781
|
|
|
1,615
|
|
|||
Sales
|
987
|
|
|
1,256
|
|
|
1,259
|
|
|||
Purchases
|
(3,346
|
)
|
|
(3,032
|
)
|
|
(3,112
|
)
|
|||
Investment securities held-to-maturity:
|
|
|
|
|
|
||||||
Maturities and redemptions
|
—
|
|
|
—
|
|
|
319
|
|
|||
Net change in loans
|
(324
|
)
|
|
(1,045
|
)
|
|
(175
|
)
|
|||
Proceeds from sales of foreclosed property
|
1
|
|
|
8
|
|
|
22
|
|
|||
Net increase in premises and equipment
|
(86
|
)
|
|
(90
|
)
|
|
(69
|
)
|
|||
Federal Home Loan Bank stock:
|
|
|
|
|
|
||||||
Purchases
|
(201
|
)
|
|
(41
|
)
|
|
(42
|
)
|
|||
Redemptions
|
201
|
|
|
—
|
|
|
42
|
|
|||
Proceeds from bank-owned life insurance settlements
|
10
|
|
|
9
|
|
|
18
|
|
|||
Other, net
|
2
|
|
|
(2
|
)
|
|
3
|
|
|||
Net cash used in investing activities
|
(494
|
)
|
|
(1,156
|
)
|
|
(120
|
)
|
|||
FINANCING ACTIVITIES
|
|
|
|
|
|
||||||
Net change in:
|
|
|
|
|
|
||||||
Deposits
|
1,711
|
|
|
(2,082
|
)
|
|
(1,180
|
)
|
|||
Short-term borrowings
|
27
|
|
|
34
|
|
|
(15
|
)
|
|||
Medium- and long-term debt:
|
|
|
|
|
|
||||||
Maturities
|
(350
|
)
|
|
—
|
|
|
(500
|
)
|
|||
Issuances and advances
|
1,050
|
|
|
1,850
|
|
|
—
|
|
|||
Terminations
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||
Common stock:
|
|
|
|
|
|
||||||
Repurchases
|
(1,394
|
)
|
|
(1,338
|
)
|
|
(560
|
)
|
|||
Cash dividends paid
|
(402
|
)
|
|
(263
|
)
|
|
(180
|
)
|
|||
Issuances under employee stock plans
|
18
|
|
|
52
|
|
|
118
|
|
|||
Other, net
|
1
|
|
|
3
|
|
|
(5
|
)
|
|||
Net cash provided by (used in) financing activities
|
661
|
|
|
(1,744
|
)
|
|
(2,338
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
1,257
|
|
|
(1,284
|
)
|
|
(1,373
|
)
|
|||
Cash and cash equivalents at beginning of period
|
4,561
|
|
|
5,845
|
|
|
7,218
|
|
|||
Cash and cash equivalents at end of period
|
$
|
5,818
|
|
|
$
|
4,561
|
|
|
$
|
5,845
|
|
Interest paid
|
$
|
462
|
|
|
$
|
261
|
|
|
$
|
122
|
|
Income taxes paid
|
266
|
|
|
200
|
|
|
336
|
|
|||
Noncash investing and financing activities:
|
|
|
|
|
|
||||||
Loans transferred to other real estate
|
12
|
|
|
3
|
|
|
8
|
|
|||
Securities transferred from held-to-maturity to available-for-sale
|
—
|
|
|
1,266
|
|
|
—
|
|
|||
Securities transferred from available-for-sale to equity securities
|
—
|
|
|
81
|
|
|
—
|
|
|
Level 1
|
|
Valuation is based upon quoted prices for identical instruments traded in active markets.
|
|
|
|
|
|
Level 2
|
|
Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are less active, and model-based valuation techniques for which all significant assumptions are observable in the market.
|
|
|
|
|
|
Level 3
|
|
Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
|
•
|
Economic Forecasts: Management selects economic variables it believes to be most relevant based on the composition of the loan portfolio and customer base, including forecasted levels of employment, gross domestic product, corporate bond and
|
•
|
Forecast Period: Management believes it can reasonably forecast credit losses over a two-year horizon. The two-year forecast period, which is shorter than the loss emergence period used under the incurred methodology, encompasses most of the remaining contractual life of the portfolio of business loans. Management may adjust the forecast period in response to changes in the economic environment.
|
•
|
Reversion Methodology: For contractual periods which extend beyond the two-year forecast horizon, management elected an immediate reversion to an average historical loss experience that generally incorporates a full economic cycle.
|
(in millions)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan assets
|
$
|
95
|
|
|
$
|
95
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Equity securities
|
54
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and other U.S. government agency securities
|
2,792
|
|
|
2,792
|
|
|
—
|
|
|
—
|
|
|
||||
Residential mortgage-backed securities (a)
|
9,606
|
|
|
—
|
|
|
9,606
|
|
|
—
|
|
|
||||
Total investment securities available-for-sale
|
12,398
|
|
|
2,792
|
|
|
9,606
|
|
|
—
|
|
|
||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
211
|
|
|
—
|
|
|
189
|
|
|
22
|
|
|
||||
Energy derivative contracts
|
96
|
|
|
—
|
|
|
96
|
|
|
—
|
|
|
||||
Foreign exchange contracts
|
10
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
||||
Total derivative assets
|
317
|
|
|
—
|
|
|
295
|
|
|
22
|
|
|
||||
Total assets at fair value
|
$
|
12,864
|
|
|
$
|
2,941
|
|
|
$
|
9,901
|
|
|
$
|
22
|
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
Energy derivative contracts
|
92
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
||||
Foreign exchange contracts
|
10
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
||||
Total derivative liabilities
|
141
|
|
|
—
|
|
|
141
|
|
|
—
|
|
|
||||
Deferred compensation plan liabilities
|
95
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
||||
Total liabilities at fair value
|
$
|
236
|
|
|
$
|
95
|
|
|
$
|
141
|
|
|
$
|
—
|
|
|
(a)
|
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.
|
(in millions)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan assets
|
$
|
88
|
|
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Equity securities
|
43
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and other U.S. government agency securities
|
2,727
|
|
|
2,727
|
|
|
—
|
|
|
—
|
|
|
||||
Residential mortgage-backed securities (a)
|
9,318
|
|
|
—
|
|
|
9,318
|
|
|
—
|
|
|
||||
Total investment securities available-for-sale
|
12,045
|
|
|
2,727
|
|
|
9,318
|
|
|
—
|
|
|
||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
67
|
|
|
—
|
|
|
58
|
|
|
9
|
|
|
||||
Energy derivative contracts
|
189
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|
||||
Foreign exchange contracts
|
19
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
||||
Total derivative assets
|
275
|
|
|
—
|
|
|
266
|
|
|
9
|
|
|
||||
Total assets at fair value
|
$
|
12,451
|
|
|
$
|
2,858
|
|
|
$
|
9,584
|
|
|
$
|
9
|
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
70
|
|
|
$
|
—
|
|
|
$
|
70
|
|
|
$
|
—
|
|
|
Energy derivative contracts
|
186
|
|
|
—
|
|
|
186
|
|
|
—
|
|
|
||||
Foreign exchange contracts
|
13
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
||||
Total derivative liabilities
|
269
|
|
|
—
|
|
|
269
|
|
|
—
|
|
|
||||
Deferred compensation plan liabilities
|
88
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
||||
Total liabilities at fair value
|
$
|
357
|
|
|
$
|
88
|
|
|
$
|
269
|
|
|
$
|
—
|
|
|
(a)
|
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.
|
|
|
|
|
|
Net Realized/Unrealized Gains (Losses) (Pretax) Recorded in Earnings (b)
|
|
|
|
|||||||||||||||
|
Balance at Beginning of Period
|
|
Change in Classification (a)
|
|
Sales and Redemptions
|
|
Balance at End of Period
|
||||||||||||||||
(in millions)
|
|
|
Realized
|
Unrealized
|
|
||||||||||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
13
|
|
|
$
|
(1
|
)
|
|
$
|
22
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity securities
|
$
|
—
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(44
|
)
|
|
$
|
—
|
|
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal securities (c)
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
||||||
Equity and other non-debt securities (c)
|
44
|
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total investment securities
available-for-sale |
49
|
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
14
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
9
|
|
(a)
|
Reflects the reclassification of equity securities resulting from the adoption of ASU 2016-01.
|
(b)
|
Realized and unrealized gains and losses due to changes in fair value recorded in other noninterest income on the Consolidated Statements of Income.
|
(c)
|
Auction-rate securities.
|
(in millions)
|
Level 3
|
||
December 31, 2019
|
|
||
Loans:
|
|
||
Commercial
|
$
|
70
|
|
Total assets at fair value
|
$
|
70
|
|
December 31, 2018
|
|
||
Business loans:
|
|
||
Commercial
|
$
|
96
|
|
Commercial mortgage
|
4
|
|
|
Total business loans
|
100
|
|
|
|
|
||
Retail loans:
|
|
||
Residential mortgage
|
8
|
|
|
Total assets at fair value
|
$
|
108
|
|
|
Carrying
Amount
|
|
Estimated Fair Value
|
||||||||||||||||
(in millions)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
973
|
|
|
$
|
973
|
|
|
$
|
973
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits with banks
|
4,845
|
|
|
4,845
|
|
|
4,845
|
|
|
—
|
|
|
—
|
|
|||||
Loans held-for-sale
|
6
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|||||
Total loans, net of allowance for loan losses (a)
|
49,732
|
|
|
49,975
|
|
|
—
|
|
|
—
|
|
|
49,975
|
|
|||||
Customers’ liability on acceptances outstanding
|
2
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|||||
Restricted equity investments
|
248
|
|
|
248
|
|
|
248
|
|
|
—
|
|
|
—
|
|
|||||
Nonmarketable equity securities (b)
|
5
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits (noninterest-bearing)
|
27,382
|
|
|
27,382
|
|
|
—
|
|
|
27,382
|
|
|
—
|
|
|||||
Interest-bearing deposits
|
26,802
|
|
|
26,802
|
|
|
—
|
|
|
26,802
|
|
|
—
|
|
|||||
Customer certificates of deposit
|
2,978
|
|
|
2,968
|
|
|
—
|
|
|
2,968
|
|
|
—
|
|
|||||
Other time deposits
|
133
|
|
|
133
|
|
|
—
|
|
|
133
|
|
|
—
|
|
|||||
Total deposits
|
57,295
|
|
|
57,285
|
|
|
—
|
|
|
57,285
|
|
|
—
|
|
|||||
Short-term borrowings
|
71
|
|
|
71
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|||||
Acceptances outstanding
|
2
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|||||
Medium- and long-term debt
|
7,269
|
|
|
7,316
|
|
|
—
|
|
|
7,316
|
|
|
—
|
|
|||||
Credit-related financial instruments
|
(57
|
)
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
(57
|
)
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
1,390
|
|
|
$
|
1,390
|
|
|
$
|
1,390
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits with banks
|
3,171
|
|
|
3,171
|
|
|
3,171
|
|
|
—
|
|
|
—
|
|
|||||
Loans held-for-sale
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|||||
Total loans, net of allowance for loan losses (a)
|
49,492
|
|
|
48,889
|
|
|
—
|
|
|
—
|
|
|
48,889
|
|
|||||
Customers’ liability on acceptances outstanding
|
4
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|||||
Restricted equity investments
|
248
|
|
|
248
|
|
|
248
|
|
|
—
|
|
|
—
|
|
|||||
Nonmarketable equity securities (b)
|
6
|
|
|
11
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits (noninterest-bearing)
|
28,690
|
|
|
28,690
|
|
|
—
|
|
|
28,690
|
|
|
—
|
|
|||||
Interest-bearing deposits
|
24,740
|
|
|
24,740
|
|
|
—
|
|
|
24,740
|
|
|
—
|
|
|||||
Customer certificates of deposit
|
2,131
|
|
|
2,100
|
|
|
—
|
|
|
2,100
|
|
|
—
|
|
|||||
Total deposits
|
55,561
|
|
|
55,530
|
|
|
—
|
|
|
55,530
|
|
|
—
|
|
|||||
Short-term borrowings
|
44
|
|
|
44
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|||||
Acceptances outstanding
|
4
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|||||
Medium- and long-term debt
|
6,463
|
|
|
6,436
|
|
|
—
|
|
|
6,436
|
|
|
—
|
|
|||||
Credit-related financial instruments
|
(57
|
)
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
(57
|
)
|
(a)
|
Included $70 million and $108 million of impaired loans recorded at fair value on a nonrecurring basis at December 31, 2019 and 2018, respectively.
|
(b)
|
Certain investments that are measured at fair value using the net asset value have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets.
|
(in millions)
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and other U.S. government agency securities
|
$
|
2,745
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
2,792
|
|
Residential mortgage-backed securities (a)
|
9,568
|
|
|
66
|
|
|
28
|
|
|
9,606
|
|
||||
Total investment securities available-for-sale
|
$
|
12,313
|
|
|
$
|
113
|
|
|
$
|
28
|
|
|
$
|
12,398
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and other U.S. government agency securities
|
$
|
2,732
|
|
|
$
|
14
|
|
|
$
|
19
|
|
|
$
|
2,727
|
|
Residential mortgage-backed securities (a)
|
9,493
|
|
|
22
|
|
|
197
|
|
|
9,318
|
|
||||
Total investment securities available-for-sale
|
$
|
12,225
|
|
|
$
|
36
|
|
|
$
|
216
|
|
|
$
|
12,045
|
|
(a)
|
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.
|
|
Temporarily Impaired
|
||||||||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or more
|
|
Total
|
||||||||||||||||||||
(in millions)
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed securities (a)
|
$
|
1,494
|
|
|
$
|
7
|
|
|
$
|
1,906
|
|
|
$
|
21
|
|
|
|
$
|
3,400
|
|
|
$
|
28
|
|
|
Total temporarily impaired securities
|
$
|
1,494
|
|
|
$
|
7
|
|
|
$
|
1,906
|
|
|
$
|
21
|
|
|
|
$
|
3,400
|
|
|
$
|
28
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and other U.S. government agency securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,457
|
|
|
$
|
19
|
|
|
|
$
|
1,457
|
|
|
$
|
19
|
|
|
Residential mortgage-backed securities (a)
|
1,008
|
|
|
9
|
|
|
6,412
|
|
|
188
|
|
|
|
7,420
|
|
|
197
|
|
|
||||||
Total temporarily impaired securities
|
$
|
1,008
|
|
|
$
|
9
|
|
|
$
|
7,869
|
|
|
$
|
207
|
|
|
|
$
|
8,877
|
|
|
$
|
216
|
|
|
(a)
|
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.
|
(in millions)
|
|
|
|
||||
Year Ended December 31
|
2019
|
|
2018
|
||||
Securities gains
|
$
|
1
|
|
|
$
|
2
|
|
Securities losses
|
(8
|
)
|
|
(21
|
)
|
||
Net securities losses
|
$
|
(7
|
)
|
|
$
|
(19
|
)
|
|
Loans Past Due and Still Accruing
|
|
|
|
|
|
|
||||||||||||||||||||
(in millions)
|
30-59
Days
|
|
60-89
Days
|
|
90 Days
or More
|
|
Total
|
|
Nonaccrual
Loans
|
|
Current
Loans
|
|
Total
Loans
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Business loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
$
|
27
|
|
|
$
|
7
|
|
|
$
|
17
|
|
|
$
|
51
|
|
|
$
|
148
|
|
|
$
|
31,274
|
|
|
$
|
31,473
|
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial Real Estate business line (a)
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
3,038
|
|
|
3,044
|
|
|||||||
Other business lines (b)
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
404
|
|
|
411
|
|
|||||||
Total real estate construction
|
6
|
|
|
7
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
3,442
|
|
|
3,455
|
|
|||||||
Commercial mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial Real Estate business line (a)
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
2
|
|
|
2,165
|
|
|
2,176
|
|
|||||||
Other business lines (b)
|
16
|
|
|
18
|
|
|
9
|
|
|
43
|
|
|
12
|
|
|
7,328
|
|
|
7,383
|
|
|||||||
Total commercial mortgage
|
25
|
|
|
18
|
|
|
9
|
|
|
52
|
|
|
14
|
|
|
9,493
|
|
|
9,559
|
|
|||||||
Lease financing
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
587
|
|
|
588
|
|
|||||||
International
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
1,004
|
|
|
1,009
|
|
|||||||
Total business loans
|
59
|
|
|
37
|
|
|
26
|
|
|
122
|
|
|
162
|
|
|
45,800
|
|
|
46,084
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Retail loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
15
|
|
|
2
|
|
|
—
|
|
|
17
|
|
|
20
|
|
|
1,808
|
|
|
1,845
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
4
|
|
|
5
|
|
|
—
|
|
|
9
|
|
|
17
|
|
|
1,685
|
|
|
1,711
|
|
|||||||
Other consumer
|
2
|
|
|
3
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
724
|
|
|
729
|
|
|||||||
Total consumer
|
6
|
|
|
8
|
|
|
—
|
|
|
14
|
|
|
17
|
|
|
2,409
|
|
|
2,440
|
|
|||||||
Total retail loans
|
21
|
|
|
10
|
|
|
—
|
|
|
31
|
|
|
37
|
|
|
4,217
|
|
|
4,285
|
|
|||||||
Total loans
|
$
|
80
|
|
|
$
|
47
|
|
|
$
|
26
|
|
|
$
|
153
|
|
|
$
|
199
|
|
|
$
|
50,017
|
|
|
$
|
50,369
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Business loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
$
|
34
|
|
|
$
|
26
|
|
|
$
|
8
|
|
|
$
|
68
|
|
|
$
|
141
|
|
|
$
|
31,767
|
|
|
$
|
31,976
|
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial Real Estate business line (a)
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
2,681
|
|
|
2,687
|
|
|||||||
Other business lines (b)
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
384
|
|
|
390
|
|
|||||||
Total real estate construction
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
3,065
|
|
|
3,077
|
|
|||||||
Commercial mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial Real Estate business line (a)
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
2
|
|
|
1,737
|
|
|
1,743
|
|
|||||||
Other business lines (b)
|
32
|
|
|
5
|
|
|
8
|
|
|
45
|
|
|
18
|
|
|
7,300
|
|
|
7,363
|
|
|||||||
Total commercial mortgage
|
36
|
|
|
5
|
|
|
8
|
|
|
49
|
|
|
20
|
|
|
9,037
|
|
|
9,106
|
|
|||||||
Lease financing
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
505
|
|
|
507
|
|
|||||||
International
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1,010
|
|
|
1,013
|
|
|||||||
Total business loans
|
82
|
|
|
31
|
|
|
16
|
|
|
129
|
|
|
166
|
|
|
45,384
|
|
|
45,679
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Retail loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
11
|
|
|
3
|
|
|
—
|
|
|
14
|
|
|
36
|
|
|
1,920
|
|
|
1,970
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
4
|
|
|
1
|
|
|
—
|
|
|
5
|
|
|
19
|
|
|
1,741
|
|
|
1,765
|
|
|||||||
Other consumer
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
748
|
|
|
749
|
|
|||||||
Total consumer
|
5
|
|
|
1
|
|
|
—
|
|
|
6
|
|
|
19
|
|
|
2,489
|
|
|
2,514
|
|
|||||||
Total retail loans
|
16
|
|
|
4
|
|
|
—
|
|
|
20
|
|
|
55
|
|
|
4,409
|
|
|
4,484
|
|
|||||||
Total loans
|
$
|
98
|
|
|
$
|
35
|
|
|
$
|
16
|
|
|
$
|
149
|
|
|
$
|
221
|
|
|
$
|
49,793
|
|
|
$
|
50,163
|
|
(a)
|
Primarily loans to real estate developers.
|
(b)
|
Primarily loans secured by owner-occupied real estate.
|
|
Internally Assigned Rating
|
|
|
||||||||||||||||
(in millions)
|
Pass (a)
|
|
Special
Mention (b)
|
|
Substandard (c)
|
|
Nonaccrual (d)
|
|
Total
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
29,785
|
|
|
$
|
841
|
|
|
$
|
699
|
|
|
$
|
148
|
|
|
$
|
31,473
|
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Real Estate business line (e)
|
3,013
|
|
|
19
|
|
|
12
|
|
|
—
|
|
|
3,044
|
|
|||||
Other business lines (f)
|
411
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
411
|
|
|||||
Total real estate construction
|
3,424
|
|
|
19
|
|
|
12
|
|
|
—
|
|
|
3,455
|
|
|||||
Commercial mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Real Estate business line (e)
|
2,121
|
|
|
12
|
|
|
41
|
|
|
2
|
|
|
2,176
|
|
|||||
Other business lines (f)
|
7,141
|
|
|
147
|
|
|
83
|
|
|
12
|
|
|
7,383
|
|
|||||
Total commercial mortgage
|
9,262
|
|
|
159
|
|
|
124
|
|
|
14
|
|
|
9,559
|
|
|||||
Lease financing
|
579
|
|
|
7
|
|
|
2
|
|
|
—
|
|
|
588
|
|
|||||
International
|
972
|
|
|
29
|
|
|
8
|
|
|
—
|
|
|
1,009
|
|
|||||
Total business loans
|
44,022
|
|
|
1,055
|
|
|
845
|
|
|
162
|
|
|
46,084
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
1,823
|
|
|
2
|
|
|
—
|
|
|
20
|
|
|
1,845
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
1,682
|
|
|
1
|
|
|
11
|
|
|
17
|
|
|
1,711
|
|
|||||
Other consumer
|
722
|
|
|
6
|
|
|
1
|
|
|
—
|
|
|
729
|
|
|||||
Total consumer
|
2,404
|
|
|
7
|
|
|
12
|
|
|
17
|
|
|
2,440
|
|
|||||
Total retail loans
|
4,227
|
|
|
9
|
|
|
12
|
|
|
37
|
|
|
4,285
|
|
|||||
Total loans
|
$
|
48,249
|
|
|
$
|
1,064
|
|
|
$
|
857
|
|
|
$
|
199
|
|
|
$
|
50,369
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
30,817
|
|
|
$
|
464
|
|
|
$
|
554
|
|
|
$
|
141
|
|
|
$
|
31,976
|
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Real Estate business line (e)
|
2,664
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
2,687
|
|
|||||
Other business lines (f)
|
382
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
390
|
|
|||||
Total real estate construction
|
3,046
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
3,077
|
|
|||||
Commercial mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Real Estate business line (e)
|
1,682
|
|
|
14
|
|
|
45
|
|
|
2
|
|
|
1,743
|
|
|||||
Other business lines (f)
|
7,157
|
|
|
118
|
|
|
70
|
|
|
18
|
|
|
7,363
|
|
|||||
Total commercial mortgage
|
8,839
|
|
|
132
|
|
|
115
|
|
|
20
|
|
|
9,106
|
|
|||||
Lease financing
|
500
|
|
|
3
|
|
|
2
|
|
|
2
|
|
|
507
|
|
|||||
International
|
996
|
|
|
4
|
|
|
10
|
|
|
3
|
|
|
1,013
|
|
|||||
Total business loans
|
44,198
|
|
|
634
|
|
|
681
|
|
|
166
|
|
|
45,679
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
1,931
|
|
|
3
|
|
|
—
|
|
|
36
|
|
|
1,970
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
1,738
|
|
|
—
|
|
|
8
|
|
|
19
|
|
|
1,765
|
|
|||||
Other consumer
|
748
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
749
|
|
|||||
Total consumer
|
2,486
|
|
|
1
|
|
|
8
|
|
|
19
|
|
|
2,514
|
|
|||||
Total retail loans
|
4,417
|
|
|
4
|
|
|
8
|
|
|
55
|
|
|
4,484
|
|
|||||
Total loans
|
$
|
48,615
|
|
|
$
|
638
|
|
|
$
|
689
|
|
|
$
|
221
|
|
|
$
|
50,163
|
|
(a)
|
Includes all loans not included in the categories of special mention, substandard or nonaccrual.
|
(b)
|
Special mention loans are accruing loans that have potential credit weaknesses that deserve management’s close attention, such as loans to borrowers who may be experiencing financial difficulties that may result in deterioration of repayment prospects from the borrower at some future date. This category is generally consistent with the "special mention" category as defined by regulatory authorities.
|
(c)
|
Substandard loans are accruing loans that have a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans also are distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. This category is generally consistent with the "substandard" category as defined by regulatory authorities.
|
(d)
|
Nonaccrual loans are loans for which the accrual of interest has been discontinued. For further information regarding nonaccrual loans, refer to the Nonperforming Assets subheading in Note 1 - Basis of Presentation and Accounting Policies. A significant majority of nonaccrual loans are generally consistent with the "substandard" category and the remainder are generally consistent with the "doubtful" category as defined by regulatory authorities.
|
(e)
|
Primarily loans to real estate developers.
|
(f)
|
Primarily loans secured by owner-occupied real estate.
|
(in millions)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Nonaccrual loans
|
$
|
199
|
|
|
$
|
221
|
|
Reduced-rate loans (a)
|
5
|
|
|
8
|
|
||
Total nonperforming loans
|
204
|
|
|
229
|
|
||
Foreclosed property
|
11
|
|
|
1
|
|
||
Total nonperforming assets
|
$
|
215
|
|
|
$
|
230
|
|
(a)
|
Comprised of reduced-rate retail loans.
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
(dollar amounts in millions)
|
Business Loans
|
Retail Loans
|
|
Total
|
|
Business Loans
|
Retail Loans
|
|
Total
|
|
Business Loans
|
Retail Loans
|
|
Total
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Years Ended December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at beginning of period
|
$
|
627
|
|
$
|
44
|
|
|
$
|
671
|
|
|
$
|
661
|
|
$
|
51
|
|
|
$
|
712
|
|
|
$
|
682
|
|
$
|
48
|
|
|
$
|
730
|
|
Loan charge-offs
|
(147
|
)
|
(5
|
)
|
|
(152
|
)
|
|
(99
|
)
|
(4
|
)
|
|
(103
|
)
|
|
(143
|
)
|
(6
|
)
|
|
(149
|
)
|
|||||||||
Recoveries on loans previously charged-off
|
40
|
|
5
|
|
|
45
|
|
|
47
|
|
5
|
|
|
52
|
|
|
50
|
|
7
|
|
|
57
|
|
|||||||||
Net loan (charge-offs) recoveries
|
(107
|
)
|
—
|
|
|
(107
|
)
|
|
(52
|
)
|
1
|
|
|
(51
|
)
|
|
(93
|
)
|
1
|
|
|
(92
|
)
|
|||||||||
Provision for loan losses
|
81
|
|
(8
|
)
|
|
73
|
|
|
19
|
|
(8
|
)
|
|
11
|
|
|
71
|
|
2
|
|
|
73
|
|
|||||||||
Foreign currency translation adjustment
|
—
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
—
|
|
|
(1
|
)
|
|
1
|
|
—
|
|
|
1
|
|
|||||||||
Balance at end of period
|
$
|
601
|
|
$
|
36
|
|
|
$
|
637
|
|
|
$
|
627
|
|
$
|
44
|
|
|
$
|
671
|
|
|
$
|
661
|
|
$
|
51
|
|
|
$
|
712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
As a percentage of total loans
|
1.30
|
%
|
0.84
|
%
|
|
1.27
|
%
|
|
1.37
|
%
|
0.97
|
%
|
|
1.34
|
%
|
|
1.48
|
%
|
1.12
|
%
|
|
1.45
|
%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
$
|
31
|
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
27
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
67
|
|
$
|
—
|
|
|
$
|
67
|
|
Collectively evaluated for impairment
|
570
|
|
36
|
|
|
606
|
|
|
600
|
|
44
|
|
|
644
|
|
|
594
|
|
51
|
|
|
645
|
|
|||||||||
Total allowance for loan losses
|
$
|
601
|
|
$
|
36
|
|
|
$
|
637
|
|
|
$
|
627
|
|
$
|
44
|
|
|
$
|
671
|
|
|
$
|
661
|
|
$
|
51
|
|
|
$
|
712
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
$
|
199
|
|
$
|
16
|
|
|
$
|
215
|
|
|
$
|
240
|
|
$
|
36
|
|
|
$
|
276
|
|
|
$
|
443
|
|
$
|
34
|
|
|
$
|
477
|
|
Collectively evaluated for impairment
|
45,885
|
|
4,269
|
|
|
50,154
|
|
|
45,439
|
|
4,448
|
|
|
49,887
|
|
|
44,188
|
|
4,508
|
|
|
48,696
|
|
|||||||||
Total loans evaluated for impairment
|
$
|
46,084
|
|
$
|
4,285
|
|
|
$
|
50,369
|
|
|
$
|
45,679
|
|
$
|
4,484
|
|
|
$
|
50,163
|
|
|
$
|
44,631
|
|
$
|
4,542
|
|
|
$
|
49,173
|
|
|
Recorded Investment In:
|
|
|
|
|
||||||||||||||
(in millions)
|
Impaired
Loans with
No Related
Allowance
|
|
Impaired
Loans with
Related
Allowance
|
|
Total
Impaired
Loans
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
for Loan
Losses
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
30
|
|
|
$
|
120
|
|
|
$
|
150
|
|
|
$
|
251
|
|
|
$
|
30
|
|
Commercial mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Real Estate business line (a)
|
39
|
|
|
—
|
|
|
39
|
|
|
49
|
|
|
—
|
|
|||||
Other business lines (b)
|
1
|
|
|
9
|
|
|
10
|
|
|
15
|
|
|
1
|
|
|||||
Total commercial mortgage
|
40
|
|
|
9
|
|
|
49
|
|
|
64
|
|
|
1
|
|
|||||
Total business loans
|
70
|
|
|
129
|
|
|
199
|
|
|
315
|
|
|
31
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
8
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
8
|
|
|
—
|
|
|
8
|
|
|
10
|
|
|
—
|
|
|||||
Total retail loans (c)
|
16
|
|
|
—
|
|
|
16
|
|
|
18
|
|
|
—
|
|
|||||
Total individually evaluated impaired loans
|
$
|
86
|
|
|
$
|
129
|
|
|
$
|
215
|
|
|
$
|
333
|
|
|
$
|
31
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
50
|
|
|
$
|
130
|
|
|
$
|
180
|
|
|
$
|
227
|
|
|
$
|
24
|
|
Commercial mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Real Estate business line (a)
|
39
|
|
|
—
|
|
|
39
|
|
|
49
|
|
|
—
|
|
|||||
Other business lines (b)
|
2
|
|
|
16
|
|
|
18
|
|
|
23
|
|
|
3
|
|
|||||
Total commercial mortgage
|
41
|
|
|
16
|
|
|
57
|
|
|
72
|
|
|
3
|
|
|||||
International
|
2
|
|
|
1
|
|
|
3
|
|
|
8
|
|
|
—
|
|
|||||
Total business loans
|
93
|
|
|
147
|
|
|
240
|
|
|
307
|
|
|
27
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
16
|
|
|
8
|
|
|
24
|
|
|
25
|
|
|
—
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
11
|
|
|
—
|
|
|
11
|
|
|
13
|
|
|
—
|
|
|||||
Other consumer
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|||||
Total consumer
|
12
|
|
|
—
|
|
|
12
|
|
|
14
|
|
|
—
|
|
|||||
Total retail loans (c)
|
28
|
|
|
8
|
|
|
36
|
|
|
39
|
|
|
—
|
|
|||||
Total individually evaluated impaired loans
|
$
|
121
|
|
|
$
|
155
|
|
|
$
|
276
|
|
|
$
|
346
|
|
|
$
|
27
|
|
(a)
|
Primarily loans to real estate developers.
|
(b)
|
Primarily loans secured by owner-occupied real estate.
|
(c)
|
Individually evaluated retail loans generally have no related allowance for loan losses, primarily due to policy which results in direct write-downs of most restructured retail loans.
|
|
Individually Evaluated Impaired Loans
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
(in millions)
|
Average Balance for the Period
|
|
Interest Income Recognized for the Period
|
|
Average Balance for the Period
|
|
Interest Income Recognized for the Period
|
|
Average Balance for the Period
|
|
Interest Income Recognized for the Period
|
||||||||||||
Years Ended December 31
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Business loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
156
|
|
|
$
|
2
|
|
|
$
|
262
|
|
|
$
|
5
|
|
|
$
|
451
|
|
|
$
|
8
|
|
Commercial mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial Real Estate business line (a)
|
39
|
|
|
3
|
|
|
40
|
|
|
4
|
|
|
21
|
|
|
2
|
|
||||||
Other business lines (b)
|
14
|
|
|
1
|
|
|
23
|
|
|
—
|
|
|
31
|
|
|
—
|
|
||||||
Total commercial mortgage
|
53
|
|
|
4
|
|
|
63
|
|
|
4
|
|
|
52
|
|
|
2
|
|
||||||
Lease financing
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
International
|
2
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||||
Total business loans
|
212
|
|
|
6
|
|
|
329
|
|
|
9
|
|
|
511
|
|
|
10
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Retail loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
21
|
|
|
1
|
|
|
21
|
|
|
—
|
|
|
24
|
|
|
—
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity
|
9
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||||
Other consumer
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||||
Total consumer
|
9
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
16
|
|
|
—
|
|
||||||
Total retail loans
|
30
|
|
|
1
|
|
|
33
|
|
|
—
|
|
|
40
|
|
|
—
|
|
||||||
Total individually evaluated impaired loans
|
$
|
242
|
|
|
$
|
7
|
|
|
$
|
362
|
|
|
$
|
9
|
|
|
$
|
551
|
|
|
$
|
10
|
|
(a)
|
Primarily loans to real estate developers.
|
(b)
|
Primarily loans secured by owner-occupied real estate.
|
|
2019
|
|
2018
|
||||||||||||||||||
|
Type of Modification
|
|
|
Type of Modification
|
|
||||||||||||||||
(in millions)
|
Principal Deferrals (a)
|
Interest Rate Reductions
|
Total Modifications
|
|
Principal Deferrals (a)
|
Interest Rate Reductions
|
Total Modifications
|
||||||||||||||
Years Ended December 31
|
|
|
|
|
|
|
|
|
|
||||||||||||
Business loans:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
28
|
|
|
$
|
—
|
|
$
|
28
|
|
|
$
|
27
|
|
|
$
|
—
|
|
$
|
27
|
|
Commercial mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other business lines (b)
|
—
|
|
|
—
|
|
—
|
|
|
2
|
|
|
—
|
|
2
|
|
||||||
International
|
—
|
|
|
—
|
|
—
|
|
|
1
|
|
|
—
|
|
1
|
|
||||||
Total business loans
|
28
|
|
|
—
|
|
28
|
|
|
30
|
|
|
—
|
|
30
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Retail loans:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity (c)
|
—
|
|
|
1
|
|
1
|
|
|
—
|
|
|
3
|
|
3
|
|
||||||
Total loans
|
$
|
28
|
|
|
$
|
1
|
|
$
|
29
|
|
|
$
|
30
|
|
|
$
|
3
|
|
$
|
33
|
|
(a)
|
Primarily represents loan balances where terms were extended 90 days or more at or above contractual interest rates. Also includes
|
(b)
|
Primarily loans secured by owner-occupied real estate.
|
(c)
|
Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt.
|
(in millions)
|
|
|
|
||||
December 31
|
2019
|
|
2018
|
||||
Automotive loans:
|
|
|
|
||||
Production
|
$
|
1,249
|
|
|
$
|
1,331
|
|
Dealer
|
7,414
|
|
|
8,097
|
|
||
Total automotive loans
|
$
|
8,663
|
|
|
$
|
9,428
|
|
Total automotive exposure:
|
|
|
|
||||
Production
|
$
|
2,358
|
|
|
$
|
2,396
|
|
Dealer
|
9,677
|
|
|
10,044
|
|
||
Total automotive exposure
|
$
|
12,035
|
|
|
$
|
12,440
|
|
(a)
|
Primarily loans to real estate developers.
|
(b)
|
Primarily loans secured by owner-occupied real estate.
|
(in millions)
|
|
|
|
||||
December 31
|
2019
|
|
2018
|
||||
Land
|
$
|
86
|
|
|
$
|
85
|
|
Buildings and improvements
|
818
|
|
|
842
|
|
||
Furniture and equipment
|
513
|
|
|
492
|
|
||
Total cost
|
1,417
|
|
|
1,419
|
|
||
Less: Accumulated depreciation and amortization
|
(960
|
)
|
|
(944
|
)
|
||
Net book value
|
$
|
457
|
|
|
$
|
475
|
|
(in millions)
|
|
|
|
||||
December 31
|
2019
|
|
2018
|
||||
Business Bank
|
$
|
473
|
|
|
$
|
473
|
|
Retail Bank
|
101
|
|
|
101
|
|
||
Wealth Management
|
61
|
|
|
61
|
|
||
Total
|
$
|
635
|
|
|
$
|
635
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||||||
(in millions)
|
Notional/
Contract
Amount (a)
|
|
Gross Derivative Assets
|
|
Gross Derivative Liabilities
|
|
Notional/
Contract
Amount (a)
|
|
Gross Derivative Assets
|
|
Gross Derivative Liabilities
|
||||||||||||
Risk management purposes
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Swaps - fair value - receive fixed/pay floating
|
$
|
3,325
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,625
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Swaps - cash flow - receive fixed/ pay floating
|
4,550
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Derivatives used as economic hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Spot, forwards and swaps
|
330
|
|
|
—
|
|
|
2
|
|
|
302
|
|
|
1
|
|
|
1
|
|
||||||
Total risk management purposes
|
8,205
|
|
|
—
|
|
|
2
|
|
|
2,927
|
|
|
1
|
|
|
3
|
|
||||||
Customer-initiated and other activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Caps and floors written
|
671
|
|
|
—
|
|
|
—
|
|
|
885
|
|
|
—
|
|
|
1
|
|
||||||
Caps and floors purchased
|
671
|
|
|
—
|
|
|
—
|
|
|
885
|
|
|
1
|
|
|
—
|
|
||||||
Swaps
|
16,485
|
|
|
211
|
|
|
39
|
|
|
13,115
|
|
|
66
|
|
|
67
|
|
||||||
Total interest rate contracts
|
17,827
|
|
|
211
|
|
|
39
|
|
|
14,885
|
|
|
67
|
|
|
68
|
|
||||||
Energy contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Caps and floors written
|
477
|
|
|
—
|
|
|
23
|
|
|
278
|
|
|
—
|
|
|
26
|
|
||||||
Caps and floors purchased
|
477
|
|
|
23
|
|
|
—
|
|
|
278
|
|
|
26
|
|
|
—
|
|
||||||
Swaps
|
2,135
|
|
|
73
|
|
|
69
|
|
|
2,094
|
|
|
163
|
|
|
160
|
|
||||||
Total energy contracts
|
3,089
|
|
|
96
|
|
|
92
|
|
|
2,650
|
|
|
189
|
|
|
186
|
|
||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Spot, forwards, options and swaps
|
1,013
|
|
|
10
|
|
|
8
|
|
|
1,095
|
|
|
18
|
|
|
12
|
|
||||||
Total customer-initiated and other activities
|
21,929
|
|
|
317
|
|
|
139
|
|
|
18,630
|
|
|
274
|
|
|
266
|
|
||||||
Total gross derivatives
|
$
|
30,134
|
|
|
317
|
|
|
141
|
|
|
$
|
21,557
|
|
|
275
|
|
|
269
|
|
||||
Amounts offset in the Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Netting adjustment - Offsetting derivative assets/liabilities
|
|
|
(63
|
)
|
|
(63
|
)
|
|
|
|
(45
|
)
|
|
(45
|
)
|
||||||||
Netting adjustment - Cash collateral received/posted
|
|
|
(11
|
)
|
|
(12
|
)
|
|
|
|
(174
|
)
|
|
(1
|
)
|
||||||||
Net derivatives included in the Consolidated Balance Sheets (b)
|
|
|
243
|
|
|
66
|
|
|
|
|
|
56
|
|
|
223
|
|
|||||||
Amounts not offset in the Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Marketable securities pledged under bilateral collateral agreements
|
|
|
—
|
|
|
(21
|
)
|
|
|
|
(1
|
)
|
|
—
|
|
||||||||
Net derivatives after deducting amounts not offset in the Consolidated Balance Sheets
|
|
|
|
$
|
243
|
|
|
$
|
45
|
|
|
|
|
|
$
|
55
|
|
|
$
|
223
|
|
(a)
|
Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected on the Consolidated Balance Sheets.
|
(in millions)
|
Interest on Medium- and Long-Term Debt
|
||||||
Years Ended December 31
|
2019
|
|
2018
|
||||
Total interest on medium-and long-term debt (a)
|
$
|
197
|
|
|
$
|
144
|
|
|
|
|
|
||||
Fair value hedging relationships:
|
|
|
|
||||
Interest rate contracts:
|
|
|
|
||||
Hedged items
|
110
|
|
|
74
|
|
||
Derivatives designated as hedging instruments
|
(4
|
)
|
|
(7
|
)
|
(a)
|
Includes the effects of hedging.
|
|
|
|
|
|
Weighted Average
|
||||||||||
(dollar amounts in millions)
|
Derivative Notional
Amount
|
|
Carrying Value of Hedged Items (a)
|
|
Remaining
Maturity
(in years)
|
|
Receive Rate
|
|
Pay Rate (b)
|
||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Swaps - cash flow - receive fixed/pay floating rate
|
|
|
|
|
|
|
|
|
|
||||||
Variable rate loans
|
$
|
4,550
|
|
|
|
|
3.0
|
|
1.94
|
%
|
|
1.71
|
%
|
||
Swaps - fair value - receive fixed/pay floating rate
|
|
|
|
|
|
|
|
|
|
||||||
Medium- and long-term debt
|
3,325
|
|
|
$
|
3,469
|
|
|
4.6
|
|
3.44
|
|
|
2.80
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Swaps - fair value - receive fixed/pay floating rate
|
|
|
|
|
|
|
|
|
|
||||||
Medium- and long-term debt
|
2,625
|
|
|
2,663
|
|
|
3.9
|
|
3.40
|
|
|
3.45
|
|
(a)
|
Included $146 million and $49 million of cumulative hedging adjustments at December 31, 2019 and 2018, respectively, which
|
(b)
|
Variable rates paid on receive fixed swaps designated as fair value and cash flow hedges are based on one- and six-month LIBOR rates in effect at December 31, 2019 and 2018.
|
(in millions)
|
|
|
|
|
|
||||
Years Ended December 31
|
|
Location of Gain
|
2019
|
|
2018
|
||||
Interest rate contracts
|
|
Other noninterest income
|
$
|
29
|
|
|
$
|
26
|
|
Energy contracts
|
|
Other noninterest income
|
5
|
|
|
4
|
|
||
Foreign exchange contracts
|
|
Foreign exchange income
|
43
|
|
|
47
|
|
||
Total
|
|
|
$
|
77
|
|
|
$
|
77
|
|
(in millions)
|
|
|
|
||||
December 31
|
2019
|
|
2018
|
||||
Unused commitments to extend credit:
|
|
|
|
||||
Commercial and other
|
$
|
23,681
|
|
|
$
|
24,266
|
|
Bankcard, revolving check credit and home equity loan commitments
|
3,180
|
|
|
3,001
|
|
||
Total unused commitments to extend credit
|
$
|
26,861
|
|
|
$
|
27,267
|
|
Standby letters of credit
|
$
|
3,320
|
|
|
$
|
3,244
|
|
Commercial letters of credit
|
18
|
|
|
39
|
|
(dollar amounts in millions)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Total criticized standby and commercial letters of credit
|
$
|
44
|
|
|
$
|
49
|
|
As a percentage of total outstanding standby and commercial letters of credit
|
1.3
|
%
|
|
1.5
|
%
|
(in millions)
|
|
||||||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Other noninterest income:
|
|
|
|
|
|
||||||
Sales of other tax credit investments
|
$
|
2
|
|
|
$
|
5
|
|
|
$
|
2
|
|
Provision for income taxes:
|
|
|
|
|
|
||||||
Amortization of LIHTC Investments
|
65
|
|
|
65
|
|
|
67
|
|
|||
Low income housing tax credits
|
(62
|
)
|
|
(62
|
)
|
|
(63
|
)
|
|||
Other tax benefits related to tax credit entities
|
(13
|
)
|
|
(14
|
)
|
|
(24
|
)
|
|||
Total provision for income taxes
|
$
|
(10
|
)
|
|
$
|
(11
|
)
|
|
$
|
(20
|
)
|
(in millions)
|
|
||
Years Ending December 31
|
|
||
2020
|
$
|
2,970
|
|
2021
|
156
|
|
|
2022
|
24
|
|
|
2023
|
15
|
|
|
2024
|
11
|
|
|
Thereafter
|
26
|
|
|
Total
|
$
|
3,202
|
|
(in millions)
|
|
|
|
||||
December 31
|
2019
|
|
2018
|
||||
Three months or less
|
$
|
398
|
|
|
$
|
363
|
|
Over three months to six months
|
503
|
|
|
146
|
|
||
Over six months to twelve months
|
819
|
|
|
278
|
|
||
Over twelve months
|
97
|
|
|
297
|
|
||
Total
|
$
|
1,817
|
|
|
$
|
1,084
|
|
(dollar amounts in millions)
|
Federal Funds Purchased
and Securities Sold Under
Agreements to Repurchase
|
|
Other
Short-term
Borrowings
|
||||
December 31, 2019
|
|
|
|
||||
Amount outstanding at year-end
|
$
|
71
|
|
|
$
|
—
|
|
Weighted average interest rate at year-end
|
1.50
|
%
|
|
—
|
%
|
||
Maximum month-end balance during the year
|
$
|
835
|
|
|
$
|
1,200
|
|
Average balance outstanding during the year
|
113
|
|
|
256
|
|
||
Weighted average interest rate during the year
|
2.28
|
%
|
|
2.44
|
%
|
||
December 31, 2018
|
|
|
|
||||
Amount outstanding at year-end
|
$
|
44
|
|
|
$
|
—
|
|
Weighted average interest rate at year-end
|
2.39
|
%
|
|
—
|
%
|
||
Maximum month-end balance during the year
|
$
|
182
|
|
|
$
|
250
|
|
Average balance outstanding during the year
|
59
|
|
|
3
|
|
||
Weighted average interest rate during the year
|
1.91
|
%
|
|
1.75
|
%
|
||
December 31, 2017
|
|
|
|
||||
Amount outstanding at year-end
|
$
|
10
|
|
|
$
|
—
|
|
Weighted average interest rate at year-end
|
1.43
|
%
|
|
—
|
%
|
||
Maximum month-end balance during the year
|
$
|
41
|
|
|
$
|
1,024
|
|
Average balance outstanding during the year
|
20
|
|
|
257
|
|
||
Weighted average interest rate during the year
|
1.02
|
%
|
|
1.15
|
%
|
(in millions)
|
|
|
|
||||
December 31
|
2019
|
|
2018
|
||||
Parent company
|
|
|
|
||||
Subordinated notes:
|
|
|
|
||||
3.80% subordinated notes due 2026 (a)
|
$
|
264
|
|
|
$
|
250
|
|
Medium- and long-term notes:
|
|
|
|
||||
2.125% notes due 2019 (a)
|
—
|
|
|
348
|
|
||
3.70% notes due 2023 (a)
|
884
|
|
|
861
|
|
||
4.00% notes due 2029 (a)
|
587
|
|
|
—
|
|
||
Total medium- and long-term notes
|
1,471
|
|
|
1,209
|
|
||
Total parent company
|
1,735
|
|
|
1,459
|
|
||
Subsidiaries
|
|
|
|
||||
Subordinated notes:
|
|
|
|
||||
4.00% subordinated notes due 2025 (a)
|
360
|
|
|
343
|
|
||
7.875% subordinated notes due 2026 (a)
|
202
|
|
|
198
|
|
||
Total subordinated notes
|
562
|
|
|
541
|
|
||
Medium- and long-term notes:
|
|
|
|
||||
2.50% notes due 2020 (a)
|
674
|
|
|
663
|
|
||
2.50% notes due 2024 (a)
|
498
|
|
|
—
|
|
||
Total medium- and long-term notes
|
1,172
|
|
|
663
|
|
||
Federal Home Loan Bank (FHLB) advances:
|
|
|
|
||||
Floating-rate based on FHLB auction rate due 2026
|
2,800
|
|
|
2,800
|
|
||
Floating-rate based on FHLB auction rate due 2028
|
1,000
|
|
|
1,000
|
|
||
Total FHLB advances
|
3,800
|
|
|
3,800
|
|
||
Total subsidiaries
|
5,534
|
|
|
5,004
|
|
||
Total medium- and long-term debt
|
$
|
7,269
|
|
|
$
|
6,463
|
|
(a)
|
The fixed interest rates on these notes have been swapped to a variable rate and designated in a hedging relationship. Accordingly, carrying value has been adjusted to reflect the change in the fair value of the debt as a result of changes in the benchmark rate.
|
(in millions)
|
|
||
Years Ending December 31
|
|
||
2020
|
$
|
675
|
|
2021
|
—
|
|
|
2022
|
—
|
|
|
2023
|
850
|
|
|
2024
|
500
|
|
|
Thereafter
|
5,100
|
|
|
Total
|
$
|
7,125
|
|
(in millions)
|
|
|
|
|
|
||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Accumulated net unrealized gains (losses) on investment securities:
|
|
|
|
|
|
||||||
Balance at beginning of period, net of tax
|
$
|
(138
|
)
|
|
$
|
(101
|
)
|
|
$
|
(33
|
)
|
|
|
|
|
|
|
||||||
Cumulative effect of change in accounting principle
|
—
|
|
|
1
|
|
|
—
|
|
|||
Net unrealized holding gains (losses) arising during the period
|
257
|
|
|
(69
|
)
|
|
(81
|
)
|
|||
Less: Provision (benefit) for income taxes
|
60
|
|
|
(16
|
)
|
|
(27
|
)
|
|||
Net unrealized holding gains (losses) arising during the period, net of tax
|
197
|
|
|
(53
|
)
|
|
(54
|
)
|
|||
Less:
|
|
|
|
|
|
||||||
Net realized losses included in net securities losses
|
(8
|
)
|
|
(20
|
)
|
|
—
|
|
|||
Less: Benefit for income taxes
|
(2
|
)
|
|
(5
|
)
|
|
—
|
|
|||
Reclassification adjustment for net securities losses included in net income, net of tax
|
(6
|
)
|
|
(15
|
)
|
|
—
|
|
|||
Less:
|
|
|
|
|
|
||||||
Net losses realized as a yield adjustment in interest on investment securities
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||
Less: Benefit for income taxes
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Reclassification adjustment for net losses realized as a yield adjustment included in net income, net of tax
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||
Change in net unrealized gains (losses) on investment securities, net of tax
|
203
|
|
|
(38
|
)
|
|
(52
|
)
|
|||
Reclassification of certain deferred tax effects (a)
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||
Balance at end of period, net of tax
|
$
|
65
|
|
|
$
|
(138
|
)
|
|
$
|
(101
|
)
|
Accumulated net gains on cash flow hedges:
|
|
|
|
|
|
||||||
Balance at beginning of period, net of tax
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
Net cash flow hedge gains arising during the period
|
44
|
|
|
—
|
|
|
—
|
|
|||
Less: Provision for income taxes
|
10
|
|
|
—
|
|
|
—
|
|
|||
Change in net cash flow hedge gains, net of tax
|
34
|
|
|
—
|
|
|
—
|
|
|||
Balance at end of period, net of tax (b)
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accumulated defined benefit pension and other postretirement plans adjustment:
|
|
|
|
|
|
||||||
Balance at beginning of period, net of tax
|
$
|
(471
|
)
|
|
$
|
(350
|
)
|
|
$
|
(350
|
)
|
|
|
|
|
|
|
||||||
Actuarial gain (loss) arising during the period
|
163
|
|
|
(191
|
)
|
|
72
|
|
|||
Less: Provision (benefit) for income taxes
|
38
|
|
|
(44
|
)
|
|
17
|
|
|||
Net defined benefit pension and other postretirement adjustment arising during the period, net of tax
|
125
|
|
|
(147
|
)
|
|
55
|
|
|||
Amounts recognized in other noninterest expense:
|
|
|
|
|
|
||||||
Amortization of actuarial net loss
|
42
|
|
|
61
|
|
|
51
|
|
|||
Amortization of prior service credit
|
(27
|
)
|
|
(27
|
)
|
|
(27
|
)
|
|||
Total amounts recognized in other noninterest expense
|
15
|
|
|
34
|
|
|
24
|
|
|||
Less: Provision for income taxes
|
3
|
|
|
8
|
|
|
8
|
|
|||
Adjustment for amounts recognized as other components of net benefit cost during the period, net of tax
|
12
|
|
|
26
|
|
|
16
|
|
|||
Change in defined benefit pension and other postretirement plans adjustment, net of tax
|
137
|
|
|
(121
|
)
|
|
71
|
|
|||
Reclassification of certain deferred tax effects (a)
|
—
|
|
|
—
|
|
|
(71
|
)
|
|||
Balance at end of period, net of tax
|
$
|
(334
|
)
|
|
$
|
(471
|
)
|
|
$
|
(350
|
)
|
Total accumulated other comprehensive loss at end of period, net of tax
|
$
|
(235
|
)
|
|
$
|
(609
|
)
|
|
$
|
(451
|
)
|
(a)
|
Amounts reclassified to retained earnings due to early adoption of ASU 2018-02. For further information, refer to Note 1.
|
(b)
|
The corporation expects to reclassify $12 million of net gains, net of tax, from accumulated other comprehensive loss to earnings over the next twelve months if interest yield curves and notional amounts remain at December 31, 2019 levels.
|
(in millions, except per share data)
|
|
|
|
|
|
||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Basic and diluted
|
|
|
|
|
|
||||||
Net income
|
$
|
1,198
|
|
|
$
|
1,235
|
|
|
$
|
743
|
|
Less: Income allocated to participating securities
|
7
|
|
|
8
|
|
|
5
|
|
|||
Net income attributable to common shares
|
$
|
1,191
|
|
|
$
|
1,227
|
|
|
$
|
738
|
|
|
|
|
|
|
|
||||||
Basic average common shares
|
150
|
|
|
168
|
|
|
174
|
|
|||
|
|
|
|
|
|
||||||
Basic net income per common share
|
$
|
7.95
|
|
|
$
|
7.31
|
|
|
$
|
4.23
|
|
|
|
|
|
|
|
||||||
Basic average common shares
|
150
|
|
|
168
|
|
|
174
|
|
|||
Dilutive common stock equivalents:
|
|
|
|
|
|
||||||
Net effect of the assumed exercise of stock options
|
1
|
|
|
2
|
|
|
3
|
|
|||
Net effect of the assumed exercise of warrants
|
—
|
|
|
1
|
|
|
1
|
|
|||
Diluted average common shares
|
151
|
|
|
171
|
|
|
178
|
|
|||
|
|
|
|
|
|
||||||
Diluted net income per common share
|
$
|
7.87
|
|
|
$
|
7.20
|
|
|
$
|
4.14
|
|
|
|
|
|
Years Ended December 31
|
2019
|
|
2018
|
Average outstanding options
|
542,786
|
|
193,248
|
Range of exercise prices
|
$67.53 - $95.25
|
|
$95.25
|
(in millions)
|
|
|
|
|
|
||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Total share-based compensation expense
|
$
|
39
|
|
|
$
|
48
|
|
|
$
|
39
|
|
Related tax benefits recognized in net income
|
$
|
9
|
|
|
$
|
11
|
|
|
$
|
14
|
|
(dollar amounts in millions)
|
December 31, 2019
|
||
Total unrecognized share-based compensation expense
|
$
|
33
|
|
Weighted-average expected recognition period (in years)
|
2.3
|
|
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Weighted-average grant-date fair value per option
|
$
|
22.27
|
|
|
$
|
30.32
|
|
|
$
|
19.61
|
|
Weighted-average assumptions:
|
|
|
|
|
|
||||||
Risk-free interest rates
|
2.74
|
%
|
|
2.63
|
%
|
|
2.47
|
%
|
|||
Expected dividend yield
|
3.00
|
|
|
3.00
|
|
|
3.00
|
|
|||
Expected volatility factors of the market price of
Comerica common stock
|
30
|
|
|
36
|
|
|
34
|
|
|||
Expected option life (in years)
|
7.6
|
|
|
7.4
|
|
|
7.0
|
|
|
|
|
Weighted-Average
|
|
|
||||||||
|
Number of
Options
(in thousands)
|
|
Exercise Price
per Share
|
|
Remaining
Contractual
Term (in years)
|
|
Aggregate
Intrinsic Value
(in millions)
|
||||||
Outstanding-January 1, 2019
|
2,943
|
|
|
$
|
44.70
|
|
|
|
|
|
|||
Granted
|
283
|
|
|
80.14
|
|
|
|
|
|
||||
Forfeited or expired
|
(35
|
)
|
|
65.91
|
|
|
|
|
|
||||
Exercised
|
(511
|
)
|
|
37.32
|
|
|
|
|
|
||||
Outstanding-December 31, 2019
|
2,680
|
|
|
49.58
|
|
|
5.3
|
|
|
$
|
66
|
|
|
Exercisable-December 31, 2019
|
1,816
|
|
|
$
|
41.79
|
|
|
4.2
|
|
|
$
|
56
|
|
|
Number of
Shares
(in thousands)
|
|
Weighted-Average
Grant-Date Fair
Value per Share
|
|||
Outstanding-January 1, 2019
|
869
|
|
|
$
|
44.34
|
|
Forfeited
|
(27
|
)
|
|
49.81
|
|
|
Vested
|
(384
|
)
|
|
38.81
|
|
|
Outstanding-December 31, 2019
|
458
|
|
|
$
|
48.64
|
|
|
Service-Based Units
|
|
Performance-Based Units
|
||||||||||
|
Number of
Units
(in thousands)
|
|
Weighted-Average
Grant-Date Fair
Value per Share
|
|
Number of
Units
(in thousands)
|
|
Weighted-Average
Grant-Date Fair
Value per Share
|
||||||
Outstanding-January 1, 2019
|
367
|
|
|
$
|
68.14
|
|
|
662
|
|
|
$
|
56.64
|
|
Granted
|
237
|
|
|
78.81
|
|
|
329
|
|
|
66.80
|
|
||
Forfeited
|
(14
|
)
|
|
87.38
|
|
|
(28
|
)
|
|
81.06
|
|
||
Vested
|
(12
|
)
|
|
55.81
|
|
|
(420
|
)
|
|
32.53
|
|
||
Outstanding-December 31, 2019
|
578
|
|
|
72.34
|
|
|
543
|
|
|
80.22
|
|
|
Defined Benefit Pension Plans
|
|
|
|
|
||||||||||||||||||
|
Qualified
|
|
Non-Qualified
|
|
Postretirement Benefit Plan
|
||||||||||||||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Change in fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets at January 1
|
$
|
2,458
|
|
|
$
|
2,747
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
56
|
|
|
$
|
60
|
|
Actual return on plan assets
|
579
|
|
|
(167
|
)
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(1
|
)
|
||||||
Employer contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Benefits paid
|
(104
|
)
|
|
(122
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(4
|
)
|
||||||
Fair value of plan assets at December 31
|
$
|
2,933
|
|
|
$
|
2,458
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57
|
|
|
$
|
56
|
|
Change in projected benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Projected benefit obligation at January 1
|
$
|
1,901
|
|
|
$
|
2,061
|
|
|
$
|
211
|
|
|
$
|
212
|
|
|
$
|
46
|
|
|
$
|
51
|
|
Service cost
|
31
|
|
|
29
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
Interest cost
|
80
|
|
|
75
|
|
|
9
|
|
|
8
|
|
|
2
|
|
|
2
|
|
||||||
Actuarial loss (gain)
|
223
|
|
|
(142
|
)
|
|
25
|
|
|
—
|
|
|
5
|
|
|
(3
|
)
|
||||||
Benefits paid
|
(104
|
)
|
|
(122
|
)
|
|
(13
|
)
|
|
(11
|
)
|
|
(5
|
)
|
|
(4
|
)
|
||||||
Projected benefit obligation at December 31
|
$
|
2,131
|
|
|
$
|
1,901
|
|
|
$
|
235
|
|
|
$
|
211
|
|
|
$
|
48
|
|
|
$
|
46
|
|
Accumulated benefit obligation
|
$
|
2,121
|
|
|
$
|
1,893
|
|
|
$
|
234
|
|
|
$
|
209
|
|
|
$
|
48
|
|
|
$
|
46
|
|
Funded status at December 31 (a) (b)
|
$
|
802
|
|
|
$
|
557
|
|
|
$
|
(235
|
)
|
|
$
|
(211
|
)
|
|
$
|
9
|
|
|
$
|
10
|
|
Weighted-average assumptions used:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Discount rate
|
3.43
|
%
|
|
4.37
|
%
|
|
3.43
|
%
|
|
4.37
|
%
|
|
3.26
|
%
|
|
4.26
|
%
|
||||||
Rate of compensation increase
|
4.00
|
|
|
4.00
|
|
|
4.00
|
|
|
4.00
|
|
|
n/a
|
|
|
n/a
|
|
||||||
Healthcare cost trend rate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost trend rate assumed for next year
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
6.25
|
|
|
6.50
|
|
||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
4.50
|
|
|
4.50
|
|
||||||
Year when rate reaches the ultimate trend rate
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
2027
|
|
|
2027
|
|
||||||
Amounts recognized in accumulated other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial loss
|
$
|
(463
|
)
|
|
$
|
(687
|
)
|
|
$
|
(94
|
)
|
|
$
|
(76
|
)
|
|
$
|
(20
|
)
|
|
$
|
(19
|
)
|
Prior service credit
|
121
|
|
|
140
|
|
|
26
|
|
|
34
|
|
|
1
|
|
|
1
|
|
||||||
Balance at December 31
|
$
|
(342
|
)
|
|
$
|
(547
|
)
|
|
$
|
(68
|
)
|
|
$
|
(42
|
)
|
|
$
|
(19
|
)
|
|
$
|
(18
|
)
|
(a)
|
Based on projected benefit obligation for defined benefit pension plans and accumulated benefit obligation for postretirement benefit plan.
|
(b)
|
The Corporation recognizes the overfunded and underfunded status of the plans in accrued income and other assets and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets.
|
|
Defined Benefit Pension Plans
|
|
|
|
|
||||||||||
(in millions)
|
Qualified
|
|
Non-Qualified
|
|
Postretirement Benefit Plan
|
|
Total
|
||||||||
Actuarial gain (loss) arising during the period
|
$
|
190
|
|
|
$
|
(25
|
)
|
|
$
|
(2
|
)
|
|
$
|
163
|
|
Amortization of net actuarial loss
|
34
|
|
|
7
|
|
|
1
|
|
|
42
|
|
||||
Amortization of prior service credit
|
(19
|
)
|
|
(8
|
)
|
|
—
|
|
|
(27
|
)
|
||||
Total recognized in other comprehensive income (loss)
|
$
|
205
|
|
|
$
|
(26
|
)
|
|
$
|
(1
|
)
|
|
$
|
178
|
|
|
Defined Benefit Pension Plans
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Qualified
|
|
Non-Qualified
|
||||||||||||||||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Service cost (a)
|
$
|
31
|
|
|
$
|
29
|
|
|
$
|
29
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other components of net benefit (credit) cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest cost
|
80
|
|
|
75
|
|
|
78
|
|
|
9
|
|
|
8
|
|
|
8
|
|
||||||
Expected return on plan assets
|
(166
|
)
|
|
(165
|
)
|
|
(159
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service credit
|
(19
|
)
|
|
(19
|
)
|
|
(19
|
)
|
|
(8
|
)
|
|
(8
|
)
|
|
(8
|
)
|
||||||
Amortization of net loss
|
34
|
|
|
51
|
|
|
43
|
|
|
7
|
|
|
9
|
|
|
8
|
|
||||||
Total other components of net benefit (credit) cost (b)
|
(71
|
)
|
|
(58
|
)
|
|
(57
|
)
|
|
8
|
|
|
9
|
|
|
8
|
|
||||||
Net periodic defined benefit (credit) cost
|
$
|
(40
|
)
|
|
$
|
(29
|
)
|
|
$
|
(28
|
)
|
|
$
|
11
|
|
|
$
|
11
|
|
|
$
|
10
|
|
Actual return on plan assets
|
$
|
579
|
|
|
$
|
(167
|
)
|
|
$
|
396
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|||
Actual rate of return on plan assets
|
24.07
|
%
|
|
(6.21
|
)%
|
|
16.48
|
%
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
||||||
Weighted-average assumptions used:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Discount rate
|
4.37
|
%
|
|
3.74
|
%
|
|
4.23
|
%
|
|
4.37
|
%
|
|
3.74
|
%
|
|
4.23
|
%
|
||||||
Expected long-term return on plan assets
|
6.50
|
|
|
6.50
|
|
|
6.50
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
||||||
Rate of compensation increase
|
4.00
|
|
|
3.75
|
|
|
3.50
|
|
|
4.00
|
|
|
3.75
|
|
|
3.50
|
|
(a)
|
Included in salaries and benefits expense on the Consolidated Statements of Income.
|
(b)
|
Included in other noninterest expenses on the Consolidated Statements of Income.
|
(dollar amounts in millions)
|
Postretirement Benefit Plan
|
||||||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Other components of net benefit cost:
|
|
|
|
|
|
||||||
Interest cost
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Expected return on plan assets
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|||
Amortization of net loss
|
1
|
|
|
1
|
|
|
1
|
|
|||
Net periodic postretirement benefit cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
$
|
5
|
|
|
$
|
(1
|
)
|
|
$
|
2
|
|
Actual rate of return on plan assets
|
9.14
|
%
|
|
(2.05
|
)%
|
|
3.52
|
%
|
|||
Weighted-average assumptions used:
|
|
|
|
|
|
||||||
Discount rate
|
4.26
|
%
|
|
3.55
|
%
|
|
3.92
|
%
|
|||
Expected long-term return on plan assets
|
5.00
|
|
|
5.00
|
|
|
5.00
|
|
|||
Healthcare cost trend rate:
|
|
|
|
|
|
||||||
Cost trend rate assumed
|
6.50
|
|
|
6.50
|
|
|
6.50
|
|
|||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
4.50
|
|
|
4.50
|
|
|
4.50
|
|
|||
Year that the rate reaches the ultimate trend rate
|
2027
|
|
|
2027
|
|
|
2027
|
|
|
Defined Benefit Pension Plans
|
|
|
|
|
||||||||||
(in millions)
|
Qualified
|
|
Non-Qualified
|
|
Postretirement
Benefit Plan
|
|
Total
|
||||||||
Net loss
|
$
|
54
|
|
|
$
|
9
|
|
|
$
|
1
|
|
|
$
|
64
|
|
Prior service credit
|
(19
|
)
|
|
(8
|
)
|
|
—
|
|
|
(27
|
)
|
(in millions)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Common stock
|
1,086
|
|
|
1,086
|
|
|
—
|
|
|
—
|
|
||||
Fixed income securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and other U.S. government agency securities
|
574
|
|
|
551
|
|
|
23
|
|
|
—
|
|
||||
Corporate and municipal bonds and notes
|
734
|
|
|
—
|
|
|
734
|
|
|
—
|
|
||||
Mortgage-backed securities
|
27
|
|
|
—
|
|
|
27
|
|
|
—
|
|
||||
Private placements
|
57
|
|
|
—
|
|
|
—
|
|
|
57
|
|
||||
Total investments in the fair value hierarchy
|
2,480
|
|
|
$
|
1,639
|
|
|
$
|
784
|
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investments measured at net asset value:
|
|
|
|
|
|
|
|
||||||||
Collective investment funds
|
469
|
|
|
|
|
|
|
|
|
|
|
||||
Total investments at fair value
|
$
|
2,949
|
|
|
|
|
|
|
|
|
|
|
|||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Common stock
|
803
|
|
|
803
|
|
|
—
|
|
|
—
|
|
||||
Fixed income securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and other U.S. government agency securities
|
496
|
|
|
482
|
|
|
14
|
|
|
—
|
|
||||
Corporate and municipal bonds and notes
|
679
|
|
|
—
|
|
|
679
|
|
|
—
|
|
||||
Mortgage-backed securities
|
29
|
|
|
—
|
|
|
29
|
|
|
—
|
|
||||
Private placements
|
60
|
|
|
—
|
|
|
—
|
|
|
60
|
|
||||
Total investments in the fair value hierarchy
|
2,070
|
|
|
$
|
1,288
|
|
|
$
|
722
|
|
|
$
|
60
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investments measured at net asset value:
|
|
|
|
|
|
|
|
||||||||
Collective investment funds
|
392
|
|
|
|
|
|
|
|
|||||||
Total investments at fair value
|
$
|
2,462
|
|
|
|
|
|
|
|
|
Balance at
Beginning
of Period
|
|
|
|
|
|
|
|
|
|
Balance at
End of Period
|
||||||||||||
|
|
Net Gains (Losses)
|
|
|
|
|
|
||||||||||||||||
(in millions)
|
|
Realized
|
|
Unrealized
|
|
Purchases
|
|
Sales
|
|
||||||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Private placements
|
$
|
60
|
|
|
$
|
3
|
|
|
$
|
8
|
|
|
$
|
49
|
|
|
$
|
(63
|
)
|
|
$
|
57
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Private placements
|
$
|
80
|
|
|
$
|
(1
|
)
|
|
$
|
(7
|
)
|
|
$
|
70
|
|
|
$
|
(82
|
)
|
|
$
|
60
|
|
|
Estimated Future Benefit Payments
|
||||||||||
(in millions)
Years Ended December 31
|
Qualified
Defined Benefit
Pension Plan
|
|
Non-Qualified
Defined Benefit
Pension Plan
|
|
Postretirement
Benefit Plan (a)
|
||||||
2020
|
$
|
134
|
|
|
$
|
14
|
|
|
$
|
5
|
|
2021
|
133
|
|
|
14
|
|
|
5
|
|
|||
2022
|
136
|
|
|
14
|
|
|
5
|
|
|||
2023
|
137
|
|
|
15
|
|
|
5
|
|
|||
2024
|
139
|
|
|
15
|
|
|
4
|
|
|||
2025 - 2029
|
683
|
|
|
74
|
|
|
16
|
|
(a)
|
Estimated benefit payments in the postretirement benefit plan are net of estimated Medicare subsidies.
|
(in millions)
|
|
|
|
|
|
||||||
December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
267
|
|
|
$
|
227
|
|
|
$
|
371
|
|
Foreign
|
7
|
|
|
10
|
|
|
5
|
|
|||
State and local
|
48
|
|
|
39
|
|
|
36
|
|
|||
Total current
|
322
|
|
|
276
|
|
|
412
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
16
|
|
|
29
|
|
|
(26
|
)
|
|||
State and local
|
(4
|
)
|
|
3
|
|
|
(2
|
)
|
|||
Remeasurement of deferred taxes
|
—
|
|
|
(8
|
)
|
|
107
|
|
|||
Total deferred
|
12
|
|
|
24
|
|
|
79
|
|
|||
Total
|
$
|
334
|
|
|
$
|
300
|
|
|
$
|
491
|
|
(dollar amounts in millions)
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
Years Ended December 31
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|||||||||
Tax based on federal statutory rate
|
$
|
322
|
|
|
21.0
|
%
|
|
$
|
323
|
|
|
21.0
|
%
|
|
$
|
432
|
|
|
35.0
|
%
|
State income taxes
|
33
|
|
|
2.2
|
|
|
35
|
|
|
2.3
|
|
|
22
|
|
|
1.8
|
|
|||
Employee stock transactions
|
(12
|
)
|
|
(0.8
|
)
|
|
(23
|
)
|
|
(1.5
|
)
|
|
(35
|
)
|
|
(2.8
|
)
|
|||
Capitalization and recovery positions (a)
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|||
Affordable housing and historic credits
|
(11
|
)
|
|
(0.7
|
)
|
|
(12
|
)
|
|
(0.8
|
)
|
|
(21
|
)
|
|
(1.7
|
)
|
|||
Bank-owned life insurance
|
(9
|
)
|
|
(0.6
|
)
|
|
(9
|
)
|
|
(0.6
|
)
|
|
(16
|
)
|
|
(1.3
|
)
|
|||
Remeasurement of deferred taxes
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(0.5
|
)
|
|
107
|
|
|
8.7
|
|
|||
FDIC insurance expense (b)
|
5
|
|
|
0.3
|
|
|
8
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|||
Other changes in unrecognized tax benefits
|
—
|
|
|
—
|
|
|
4
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|||
Tax-related interest and penalties
|
2
|
|
|
0.1
|
|
|
(3
|
)
|
|
(0.2
|
)
|
|
4
|
|
|
0.3
|
|
|||
Lease termination transactions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(0.2
|
)
|
|||
Other
|
4
|
|
|
0.2
|
|
|
2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|||
Provision for income taxes
|
$
|
334
|
|
|
21.7
|
%
|
|
$
|
300
|
|
|
19.5
|
%
|
|
$
|
491
|
|
|
39.8
|
%
|
(a)
|
Tax benefits from the review of tax capitalization and recovery positions related to software and fixed assets included in the 2017 tax return.
|
(b)
|
Beginning January 1, 2018, FDIC insurance expense is no longer deductible as a result of the enactment of the Tax Cuts and Jobs Act.
|
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at January 1
|
$
|
14
|
|
|
$
|
10
|
|
|
$
|
15
|
|
Increase as a result of tax positions taken during a prior period
|
4
|
|
|
9
|
|
|
4
|
|
|||
Decrease related to settlements with tax authorities
|
(1
|
)
|
|
(4
|
)
|
|
(8
|
)
|
|||
Other
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Balance at December 31
|
$
|
17
|
|
|
$
|
14
|
|
|
$
|
10
|
|
Jurisdiction
|
Tax Years
|
Federal
|
2014-2018
|
California
|
2006-2017
|
(dollar amounts in millions)
|
Comerica
Incorporated
(Consolidated)
|
|
Comerica
Bank
|
||||
December 31, 2019
|
|
|
|
||||
CET1 capital (minimum $3.1 billion (Consolidated))
|
$
|
6,919
|
|
|
$
|
7,199
|
|
Tier 1 capital (minimum $4.1 billion (Consolidated))
|
6,919
|
|
|
7,199
|
|
||
Total capital (minimum $5.5 billion (Consolidated))
|
8,282
|
|
|
8,371
|
|
||
Risk-weighted assets
|
68,273
|
|
|
68,071
|
|
||
Average assets (fourth quarter)
|
72,773
|
|
|
72,564
|
|
||
CET1 capital to risk-weighted assets (minimum-4.5%)
|
10.13
|
%
|
|
10.58
|
%
|
||
Tier 1 capital to risk-weighted assets (minimum-6.0%)
|
10.13
|
|
|
10.58
|
|
||
Total capital to risk-weighted assets (minimum-8.0%)
|
12.13
|
|
|
12.30
|
|
||
Tier 1 capital to average assets (minimum-4.0%)
|
9.51
|
|
|
9.92
|
|
||
Capital conservation buffer (minimum-2.5%)
|
4.13
|
|
|
4.30
|
|
||
December 31, 2018
|
|
|
|
||||
CET1 capital (minimum $3.0 billion (Consolidated))
|
$
|
7,470
|
|
|
$
|
7,229
|
|
Tier 1 capital (minimum $4.0 billion (Consolidated))
|
7,470
|
|
|
7,229
|
|
||
Total capital (minimum $5.4 billion (Consolidated))
|
8,855
|
|
|
8,433
|
|
||
Risk-weighted assets
|
67,047
|
|
|
66,857
|
|
||
Average assets (fourth quarter)
|
71,070
|
|
|
70,905
|
|
||
CET1 capital to risk-weighted assets (minimum-4.5%)
|
11.14
|
%
|
|
10.81
|
%
|
||
Tier 1 capital to risk-weighted assets (minimum-6.0%)
|
11.14
|
|
|
10.81
|
|
||
Total capital to risk-weighted assets (minimum-8.0%)
|
13.21
|
|
|
12.61
|
|
||
Tier 1 capital to average assets (minimum-4.0%)
|
10.51
|
|
|
10.20
|
|
||
Capital conservation buffer (minimum-2.5%)
|
5.14
|
|
|
4.61
|
|
(dollar amounts in millions)
|
Business
Bank
|
|
Retail
Bank
|
|
Wealth Management
|
|
Finance
|
|
Other
|
|
Total
|
||||||||||||
Year Ended December 31, 2019
|
|||||||||||||||||||||||
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income (expense)
|
$
|
1,655
|
|
|
$
|
568
|
|
|
$
|
183
|
|
|
$
|
(126
|
)
|
|
$
|
59
|
|
|
$
|
2,339
|
|
Provision for credit losses
|
88
|
|
|
(4
|
)
|
|
(14
|
)
|
|
—
|
|
|
4
|
|
|
74
|
|
||||||
Noninterest income
|
555
|
|
|
132
|
|
|
270
|
|
|
43
|
|
|
10
|
|
|
1,010
|
|
||||||
Noninterest expenses
|
795
|
|
|
597
|
|
|
283
|
|
|
(1
|
)
|
|
69
|
|
|
1,743
|
|
||||||
Provision (benefit) for income taxes
|
306
|
|
|
24
|
|
|
44
|
|
|
(26
|
)
|
|
(14
|
)
|
(a)
|
334
|
|
||||||
Net income (loss)
|
$
|
1,021
|
|
|
$
|
83
|
|
|
$
|
140
|
|
|
$
|
(56
|
)
|
|
$
|
10
|
|
|
$
|
1,198
|
|
Net credit-related charge-offs (recoveries)
|
$
|
111
|
|
|
$
|
1
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selected average balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
$
|
44,946
|
|
|
$
|
2,852
|
|
|
$
|
5,083
|
|
|
$
|
14,235
|
|
|
$
|
4,372
|
|
|
$
|
71,488
|
|
Loans
|
43,472
|
|
|
2,104
|
|
|
4,935
|
|
|
—
|
|
|
—
|
|
|
50,511
|
|
||||||
Deposits
|
29,047
|
|
|
20,743
|
|
|
3,833
|
|
|
1,673
|
|
|
185
|
|
|
55,481
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Return on average assets (b)
|
2.27
|
%
|
|
0.39
|
%
|
|
2.76
|
%
|
|
n/m
|
|
|
n/m
|
|
|
1.68
|
%
|
||||||
Efficiency ratio (c)
|
35.96
|
|
|
84.49
|
|
|
62.45
|
|
|
n/m
|
|
|
n/m
|
|
|
51.82
|
|
||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income (expense)
|
$
|
1,613
|
|
|
$
|
548
|
|
|
$
|
181
|
|
|
$
|
(46
|
)
|
|
$
|
56
|
|
|
$
|
2,352
|
|
Provision for credit losses
|
6
|
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
||||||
Noninterest income
|
547
|
|
|
136
|
|
|
266
|
|
|
27
|
|
|
—
|
|
|
976
|
|
||||||
Noninterest expenses
|
847
|
|
|
602
|
|
|
293
|
|
|
(4
|
)
|
|
56
|
|
|
1,794
|
|
||||||
Provision (benefit) for income taxes
|
283
|
|
|
18
|
|
|
36
|
|
|
(14
|
)
|
|
(23
|
)
|
(a)
|
300
|
|
||||||
Net income (loss)
|
$
|
1,024
|
|
|
$
|
65
|
|
|
$
|
121
|
|
|
$
|
(1
|
)
|
|
$
|
26
|
|
|
$
|
1,235
|
|
Net credit-related charge-offs (recoveries)
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selected average balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
$
|
43,207
|
|
|
$
|
2,633
|
|
|
$
|
5,214
|
|
|
$
|
13,705
|
|
|
$
|
5,965
|
|
|
$
|
70,724
|
|
Loans
|
41,618
|
|
|
2,067
|
|
|
5,081
|
|
|
—
|
|
|
—
|
|
|
48,766
|
|
||||||
Deposits
|
30,116
|
|
|
20,812
|
|
|
3,941
|
|
|
941
|
|
|
125
|
|
|
55,935
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Return on average assets (b)
|
2.37
|
%
|
|
0.31
|
%
|
|
2.32
|
%
|
|
n/m
|
|
|
n/m
|
|
|
1.75
|
%
|
||||||
Efficiency ratio (c)
|
39.22
|
|
|
87.59
|
|
|
65.60
|
|
|
n/m
|
|
|
n/m
|
|
|
53.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in millions)
|
Business
Bank
|
|
Retail
Bank
|
|
Wealth Management
|
|
Finance
|
|
Other
|
|
Total
|
||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||||||
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income (expense)
|
$
|
1,513
|
|
|
$
|
453
|
|
|
$
|
169
|
|
|
$
|
(111
|
)
|
|
$
|
37
|
|
|
$
|
2,061
|
|
Provision for credit losses
|
69
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
74
|
|
||||||
Noninterest income
|
639
|
|
|
154
|
|
|
255
|
|
|
49
|
|
|
10
|
|
|
1,107
|
|
||||||
Noninterest expenses
|
918
|
|
|
615
|
|
|
285
|
|
|
(4
|
)
|
|
46
|
|
|
1,860
|
|
||||||
Provision (benefit) for income taxes
|
410
|
|
|
(4
|
)
|
|
51
|
|
|
(35
|
)
|
|
69
|
|
(a)
|
491
|
|
||||||
Net income (loss)
|
$
|
755
|
|
|
$
|
(6
|
)
|
|
$
|
87
|
|
|
$
|
(23
|
)
|
|
$
|
(70
|
)
|
|
$
|
743
|
|
Net credit-related charge-offs (recoveries)
|
$
|
96
|
|
|
$
|
1
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selected average balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
$
|
42,653
|
|
|
$
|
2,626
|
|
|
$
|
5,401
|
|
|
$
|
13,954
|
|
|
$
|
6,818
|
|
|
$
|
71,452
|
|
Loans
|
41,241
|
|
|
2,061
|
|
|
5,256
|
|
|
—
|
|
|
—
|
|
|
48,558
|
|
||||||
Deposits
|
31,999
|
|
|
20,775
|
|
|
4,081
|
|
|
241
|
|
|
162
|
|
|
57,258
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Return on average assets (b)
|
1.77
|
%
|
|
(0.03
|
)%
|
|
1.61
|
%
|
|
n/m
|
|
|
n/m
|
|
|
1.04
|
%
|
||||||
Efficiency ratio (c)
|
42.67
|
|
|
101.29
|
|
|
67.06
|
|
|
n/m
|
|
|
n/m
|
|
|
58.70
|
|
(a)
|
Primarily reflected discrete tax items, including benefits of $17 million and $48 million in 2019 and 2018, respectively, and a net charge of $72 million in 2017.
|
(b)
|
Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
|
(c)
|
Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities and a derivative contract tied to the conversion rate of Visa Class B shares.
|
(dollar amounts in millions)
|
Michigan
|
|
California
|
|
Texas
|
|
Other
Markets
|
|
Finance
& Other
|
|
Total
|
||||||||||||
Year Ended December 31, 2019
|
|||||||||||||||||||||||
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income (expense)
|
$
|
729
|
|
|
$
|
811
|
|
|
$
|
493
|
|
|
$
|
373
|
|
|
$
|
(67
|
)
|
|
$
|
2,339
|
|
Provision for credit losses
|
(11
|
)
|
|
(33
|
)
|
|
119
|
|
|
(5
|
)
|
|
4
|
|
|
74
|
|
||||||
Noninterest income
|
291
|
|
|
173
|
|
|
128
|
|
|
365
|
|
|
53
|
|
|
1,010
|
|
||||||
Noninterest expenses
|
554
|
|
|
406
|
|
|
345
|
|
|
369
|
|
|
69
|
|
|
1,743
|
|
||||||
Provision (benefit) for income taxes
|
108
|
|
|
155
|
|
|
38
|
|
|
74
|
|
|
(41
|
)
|
(a)
|
334
|
|
||||||
Net income (loss)
|
$
|
369
|
|
|
$
|
456
|
|
|
$
|
119
|
|
|
$
|
300
|
|
|
$
|
(46
|
)
|
|
$
|
1,198
|
|
Net credit-related charge-offs (recoveries)
|
$
|
11
|
|
|
$
|
8
|
|
|
$
|
93
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selected average balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
$
|
13,157
|
|
|
$
|
18,856
|
|
|
$
|
11,269
|
|
|
$
|
9,599
|
|
|
$
|
18,607
|
|
|
$
|
71,488
|
|
Loans
|
12,553
|
|
|
18,540
|
|
|
10,616
|
|
|
8,802
|
|
|
—
|
|
|
50,511
|
|
||||||
Deposits
|
20,081
|
|
|
16,857
|
|
|
8,780
|
|
|
7,905
|
|
|
1,858
|
|
|
55,481
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Return on average assets (b)
|
1.77
|
%
|
|
2.42
|
%
|
|
1.06
|
%
|
|
3.13
|
%
|
|
n/m
|
|
|
1.68
|
%
|
||||||
Efficiency ratio (c)
|
54.02
|
|
|
41.21
|
|
|
55.59
|
|
|
50.03
|
|
|
n/m
|
|
|
51.82
|
|
(dollar amounts in millions)
|
Michigan
|
|
California
|
|
Texas
|
|
Other
Markets
|
|
Finance
& Other
|
|
Total
|
||||||||||||
Year Ended December 31, 2018
|
|||||||||||||||||||||||
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
727
|
|
|
$
|
788
|
|
|
$
|
474
|
|
|
$
|
353
|
|
|
$
|
10
|
|
|
$
|
2,352
|
|
Provision for credit losses
|
30
|
|
|
26
|
|
|
(53
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
||||||
Noninterest income
|
296
|
|
|
164
|
|
|
130
|
|
|
359
|
|
|
27
|
|
|
976
|
|
||||||
Noninterest expenses
|
577
|
|
|
424
|
|
|
365
|
|
|
376
|
|
|
52
|
|
|
1,794
|
|
||||||
Provision (benefit) for income taxes
|
90
|
|
|
123
|
|
|
64
|
|
|
60
|
|
|
(37
|
)
|
(a)
|
300
|
|
||||||
Net income
|
$
|
326
|
|
|
$
|
379
|
|
|
$
|
228
|
|
|
$
|
277
|
|
|
$
|
25
|
|
|
$
|
1,235
|
|
Net credit-related charge-offs
|
$
|
7
|
|
|
$
|
27
|
|
|
$
|
12
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selected average balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
$
|
13,207
|
|
|
$
|
18,544
|
|
|
$
|
10,380
|
|
|
$
|
8,922
|
|
|
$
|
19,671
|
|
|
$
|
70,724
|
|
Loans
|
12,531
|
|
|
18,283
|
|
|
9,812
|
|
|
8,140
|
|
|
—
|
|
|
48,766
|
|
||||||
Deposits
|
20,770
|
|
|
16,964
|
|
|
8,992
|
|
|
8,144
|
|
|
1,065
|
|
|
55,935
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Return on average assets (b)
|
1.51
|
%
|
|
2.04
|
%
|
|
2.20
|
%
|
|
3.11
|
%
|
|
n/m
|
|
|
1.75
|
%
|
||||||
Efficiency ratio (c)
|
56.22
|
|
|
44.58
|
|
|
60.30
|
|
|
52.93
|
|
|
n/m
|
|
|
53.56
|
|
||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income (expense)
|
$
|
657
|
|
|
$
|
711
|
|
|
$
|
451
|
|
|
$
|
316
|
|
|
$
|
(74
|
)
|
|
$
|
2,061
|
|
Provision for credit losses
|
8
|
|
|
101
|
|
|
(72
|
)
|
|
36
|
|
|
1
|
|
|
74
|
|
||||||
Noninterest income
|
324
|
|
|
171
|
|
|
131
|
|
|
423
|
|
|
58
|
|
|
1,107
|
|
||||||
Noninterest expenses
|
589
|
|
|
404
|
|
|
375
|
|
|
450
|
|
|
42
|
|
|
1,860
|
|
||||||
Provision for income taxes
|
137
|
|
|
145
|
|
|
104
|
|
|
71
|
|
|
34
|
|
(a)
|
491
|
|
||||||
Net income (loss)
|
$
|
247
|
|
|
$
|
232
|
|
|
$
|
175
|
|
|
$
|
182
|
|
|
$
|
(93
|
)
|
|
$
|
743
|
|
Net credit-related (recoveries) charge-offs
|
$
|
(1
|
)
|
|
$
|
33
|
|
|
$
|
46
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selected average balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
$
|
13,393
|
|
|
$
|
18,269
|
|
|
$
|
10,434
|
|
|
$
|
8,584
|
|
|
$
|
20,772
|
|
|
$
|
71,452
|
|
Loans
|
12,676
|
|
|
18,008
|
|
|
9,960
|
|
|
7,914
|
|
|
—
|
|
|
48,558
|
|
||||||
Deposits
|
21,818
|
|
|
17,533
|
|
|
9,623
|
|
|
7,881
|
|
|
403
|
|
|
57,258
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Return on average assets (b)
|
1.09
|
%
|
|
1.25
|
%
|
|
1.61
|
%
|
|
2.12
|
%
|
|
n/m
|
|
|
1.04
|
%
|
||||||
Efficiency ratio (c)
|
60.01
|
|
|
45.83
|
|
|
64.35
|
|
|
60.98
|
|
|
n/m
|
|
|
58.70
|
|
(a)
|
Primarily reflected discrete tax items, including benefits of $17 million and $48 million in 2019 and 2018, respectively, and a net charge of $72 million in 2017.
|
(b)
|
Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
|
(c)
|
Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities and a derivative contract tied to the conversion rate of Visa Class B shares.
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except share data)
|
|
|
|
||||
December 31
|
2019
|
|
2018
|
||||
|
|
|
|
||||
Assets
|
|
|
|
||||
Cash and due from subsidiary bank
|
$
|
1,196
|
|
|
$
|
1,524
|
|
Other short-term investments
|
95
|
|
|
88
|
|
||
Investment in subsidiaries, principally banks
|
7,784
|
|
|
7,429
|
|
||
Premises and equipment
|
1
|
|
|
1
|
|
||
Other assets
|
242
|
|
|
169
|
|
||
Total assets
|
$
|
9,318
|
|
|
$
|
9,211
|
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Medium- and long-term debt
|
$
|
1,735
|
|
|
$
|
1,459
|
|
Other liabilities
|
256
|
|
|
245
|
|
||
Total liabilities
|
1,991
|
|
|
1,704
|
|
||
|
|
|
|
||||
Common stock - $5 par value:
|
|
|
|
||||
Authorized - 325,000,000 shares
|
|
|
|
||||
Issued - 228,164,824 shares
|
1,141
|
|
|
1,141
|
|
||
Capital surplus
|
2,174
|
|
|
2,148
|
|
||
Accumulated other comprehensive loss
|
(235
|
)
|
|
(609
|
)
|
||
Retained earnings
|
9,538
|
|
|
8,781
|
|
||
Less cost of common stock in treasury - 86,069,234 shares at 12/31/19 and 68,081,176 shares at 12/31/18
|
(5,291
|
)
|
|
(3,954
|
)
|
||
Total shareholders’ equity
|
7,327
|
|
|
7,507
|
|
||
Total liabilities and shareholders’ equity
|
$
|
9,318
|
|
|
$
|
9,211
|
|
(in millions)
|
|
|
|
|
|
||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Income
|
|
|
|
|
|
||||||
Income from subsidiaries:
|
|
|
|
|
|
||||||
Dividends from subsidiaries
|
$
|
1,229
|
|
|
$
|
1,135
|
|
|
$
|
915
|
|
Other interest income
|
20
|
|
|
13
|
|
|
3
|
|
|||
Intercompany management fees
|
224
|
|
|
228
|
|
|
136
|
|
|||
Other noninterest income
|
—
|
|
|
—
|
|
|
8
|
|
|||
Total income
|
1,473
|
|
|
1,376
|
|
|
1,062
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Interest on medium- and long-term debt
|
56
|
|
|
29
|
|
|
13
|
|
|||
Salaries and benefits expense
|
143
|
|
|
140
|
|
|
127
|
|
|||
Occupancy expense
|
6
|
|
|
5
|
|
|
5
|
|
|||
Equipment expense
|
1
|
|
|
1
|
|
|
1
|
|
|||
Restructuring charges
|
—
|
|
|
2
|
|
|
6
|
|
|||
Other noninterest expenses
|
72
|
|
|
75
|
|
|
80
|
|
|||
Total expenses
|
278
|
|
|
252
|
|
|
232
|
|
|||
Income before benefit for income taxes and equity in undistributed earnings of subsidiaries
|
1,195
|
|
|
1,124
|
|
|
830
|
|
|||
Benefit for income taxes
|
(9
|
)
|
|
(5
|
)
|
|
(26
|
)
|
|||
Income before equity in undistributed earnings of subsidiaries
|
1,204
|
|
|
1,129
|
|
|
856
|
|
|||
Equity in undistributed earnings of subsidiaries, principally banks
|
(6
|
)
|
|
106
|
|
|
(113
|
)
|
|||
Net income
|
1,198
|
|
|
1,235
|
|
|
743
|
|
|||
Less income allocated to participating securities
|
7
|
|
|
8
|
|
|
5
|
|
|||
Net income attributable to common shares
|
$
|
1,191
|
|
|
$
|
1,227
|
|
|
$
|
738
|
|
(in millions)
|
|
|
|
|
|
||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
1,198
|
|
|
$
|
1,235
|
|
|
$
|
743
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Undistributed earnings of subsidiaries, principally banks
|
6
|
|
|
(106
|
)
|
|
113
|
|
|||
Depreciation and amortization
|
1
|
|
|
1
|
|
|
1
|
|
|||
Net periodic defined benefit cost (credit)
|
4
|
|
|
4
|
|
|
(2
|
)
|
|||
Share-based compensation expense
|
15
|
|
|
21
|
|
|
16
|
|
|||
Benefit for deferred income taxes
|
(2
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|||
Other, net
|
28
|
|
|
10
|
|
|
59
|
|
|||
Net cash provided by operating activities
|
1,250
|
|
|
1,164
|
|
|
920
|
|
|||
Financing Activities
|
|
|
|
|
|
||||||
Medium- and long-term debt:
|
|
|
|
|
|
||||||
Maturities
|
(350
|
)
|
|
—
|
|
|
—
|
|
|||
Issuances
|
550
|
|
|
850
|
|
|
—
|
|
|||
Common Stock:
|
|
|
|
|
|
||||||
Repurchases
|
(1,394
|
)
|
|
(1,338
|
)
|
|
(560
|
)
|
|||
Cash dividends paid
|
(402
|
)
|
|
(263
|
)
|
|
(180
|
)
|
|||
Issuances of common stock under employee stock plans
|
18
|
|
|
52
|
|
|
118
|
|
|||
Net cash used in financing activities
|
(1,578
|
)
|
|
(699
|
)
|
|
(622
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
(328
|
)
|
|
465
|
|
|
298
|
|
|||
Cash and cash equivalents at beginning of period
|
1,524
|
|
|
1,059
|
|
|
761
|
|
|||
Cash and cash equivalents at end of period
|
$
|
1,196
|
|
|
$
|
1,524
|
|
|
$
|
1,059
|
|
Interest paid
|
$
|
55
|
|
|
$
|
11
|
|
|
$
|
12
|
|
Income taxes recovered
|
$
|
(226
|
)
|
|
$
|
(155
|
)
|
|
$
|
(331
|
)
|
|
2019
|
||||||||||||||
(in millions, except per share data)
|
Fourth
Quarter
|
|
Third
Quarter
|
|
Second
Quarter
|
|
First
Quarter
|
||||||||
Interest income
|
$
|
659
|
|
|
$
|
711
|
|
|
$
|
727
|
|
|
$
|
710
|
|
Interest expense
|
115
|
|
|
125
|
|
|
124
|
|
|
104
|
|
||||
Net interest income
|
544
|
|
|
586
|
|
|
603
|
|
|
606
|
|
||||
Provision for credit losses
|
8
|
|
|
35
|
|
|
44
|
|
|
(13
|
)
|
||||
Net securities gains (losses)
|
1
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||||
Noninterest income excluding net securities gains (losses)
|
265
|
|
|
256
|
|
|
250
|
|
|
246
|
|
||||
Noninterest expenses
|
451
|
|
|
435
|
|
|
424
|
|
|
433
|
|
||||
Provision for income taxes
|
82
|
|
|
80
|
|
|
87
|
|
|
85
|
|
||||
Net income
|
269
|
|
|
292
|
|
|
298
|
|
|
339
|
|
||||
Less income allocated to participating securities
|
2
|
|
|
2
|
|
|
1
|
|
|
2
|
|
||||
Net income attributable to common shares
|
$
|
267
|
|
|
$
|
290
|
|
|
$
|
297
|
|
|
$
|
337
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.87
|
|
|
$
|
1.98
|
|
|
$
|
1.95
|
|
|
$
|
2.14
|
|
Diluted
|
1.85
|
|
|
1.96
|
|
|
1.94
|
|
|
2.11
|
|
||||
Comprehensive income
|
370
|
|
|
338
|
|
|
429
|
|
|
435
|
|
|
2018
|
||||||||||||||
(in millions, except per share data)
|
Fourth
Quarter
|
|
Third
Quarter
|
|
Second
Quarter
|
|
First
Quarter
|
||||||||
Interest income
|
$
|
704
|
|
|
$
|
675
|
|
|
$
|
650
|
|
|
$
|
590
|
|
Interest expense
|
90
|
|
|
76
|
|
|
60
|
|
|
41
|
|
||||
Net interest income
|
614
|
|
|
599
|
|
|
590
|
|
|
549
|
|
||||
Provision for credit losses
|
16
|
|
|
—
|
|
|
(29
|
)
|
|
12
|
|
||||
Net securities (losses) gains
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
1
|
|
||||
Noninterest income excluding net securities (losses) gains
|
250
|
|
|
254
|
|
|
248
|
|
|
243
|
|
||||
Noninterest expenses
|
448
|
|
|
452
|
|
|
448
|
|
|
446
|
|
||||
Provision for income taxes
|
90
|
|
|
63
|
|
|
93
|
|
|
54
|
|
||||
Net income
|
310
|
|
|
318
|
|
|
326
|
|
|
281
|
|
||||
Less income allocated to participating securities
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
||||
Net income attributable to common shares
|
$
|
308
|
|
|
$
|
316
|
|
|
$
|
324
|
|
|
$
|
279
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.91
|
|
|
$
|
1.89
|
|
|
$
|
1.90
|
|
|
$
|
1.62
|
|
Diluted
|
1.88
|
|
|
1.86
|
|
|
1.87
|
|
|
1.59
|
|
||||
Comprehensive income
|
312
|
|
|
296
|
|
|
290
|
|
|
178
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Business
Bank
|
|
Retail
Bank
|
|
Wealth Management
|
|
Finance & Other
|
|
Total
|
||||||||||
(in millions)
|
|||||||||||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
||||||||||
Card fees
|
$
|
213
|
|
|
$
|
40
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
257
|
|
Fiduciary income
|
—
|
|
|
—
|
|
|
206
|
|
|
—
|
|
|
206
|
|
|||||
Service charges on deposit accounts
|
130
|
|
|
68
|
|
|
5
|
|
|
—
|
|
|
203
|
|
|||||
Commercial loan servicing fees (a)
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|||||
Brokerage fees
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|||||
Other noninterest income (b)
|
8
|
|
|
11
|
|
|
18
|
|
|
—
|
|
|
37
|
|
|||||
Total revenue from contracts with customers
|
369
|
|
|
119
|
|
|
261
|
|
|
—
|
|
|
749
|
|
|||||
Other sources of noninterest income
|
186
|
|
|
13
|
|
|
9
|
|
|
53
|
|
|
261
|
|
|||||
Total noninterest income
|
$
|
555
|
|
|
$
|
132
|
|
|
$
|
270
|
|
|
$
|
53
|
|
|
$
|
1,010
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
||||||||||
Card fees (c)
|
$
|
201
|
|
|
$
|
39
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
244
|
|
Fiduciary income
|
—
|
|
|
—
|
|
|
206
|
|
|
—
|
|
|
206
|
|
|||||
Service charges on deposit accounts (c)
|
134
|
|
|
72
|
|
|
5
|
|
|
—
|
|
|
211
|
|
|||||
Commercial loan servicing fees (a)
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|||||
Brokerage fees
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
|||||
Other noninterest income (b)
|
12
|
|
|
19
|
|
|
17
|
|
|
1
|
|
|
49
|
|
|||||
Total revenue from contracts with customers
|
365
|
|
|
130
|
|
|
259
|
|
|
1
|
|
|
755
|
|
|||||
Other sources of noninterest income
|
182
|
|
|
6
|
|
|
7
|
|
|
26
|
|
|
221
|
|
|||||
Total noninterest income
|
$
|
547
|
|
|
$
|
136
|
|
|
$
|
266
|
|
|
$
|
27
|
|
|
$
|
976
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Card fees
|
$
|
285
|
|
|
$
|
43
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
333
|
|
Fiduciary income
|
—
|
|
|
—
|
|
|
198
|
|
|
—
|
|
|
198
|
|
|||||
Services charges on deposit accounts
|
143
|
|
|
79
|
|
|
5
|
|
|
—
|
|
|
227
|
|
|||||
Commercial lending fees
|
84
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
85
|
|
|||||
Letter of credit fees
|
44
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
45
|
|
|||||
Bank-owned life insurance
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
43
|
|
|||||
Foreign exchange income
|
43
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
45
|
|
|||||
Brokerage fees
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
|||||
Other noninterest income
|
40
|
|
|
32
|
|
|
20
|
|
|
16
|
|
|
108
|
|
|||||
Total noninterest income
|
$
|
639
|
|
|
$
|
154
|
|
|
$
|
255
|
|
|
$
|
59
|
|
|
$
|
1,107
|
|
(a)
|
Included in commercial lending fees on the Consolidated Statements of Income.
|
(b)
|
Excludes derivative, warrant and other miscellaneous income.
|
(c)
|
Adoption of Topic 606 resulted in a change in presentation which records certain costs in the same category as the associated revenues. The effect of this change was to reduce card fees by $140 million and service charges on deposit accounts by $5 million for the twelve months ended December 31, 2018. Refer to Note 1 for further information.
|
(in millions)
|
|
||
Years Ending December 31
|
|
||
2020
|
$
|
60
|
|
2021
|
62
|
|
|
2022
|
53
|
|
|
2023
|
46
|
|
|
2024
|
42
|
|
|
Thereafter
|
175
|
|
|
Total contractual maturities
|
438
|
|
|
Less imputed interest
|
(71
|
)
|
|
Total operating lease liabilities
|
$
|
367
|
|
(a)
|
Excludes net investment in leveraged leases of $219 million.
|
|
|
|
|
|
|
Curtis C. Farmer
|
|
James J. Herzog
|
|
Mauricio A. Ortiz
|
Chairman, President and
|
|
Executive Vice President, Treasurer and
|
|
Senior Vice President and
|
Chief Executive Officer
|
|
Interim Chief Financial Officer
|
|
Chief Accounting Officer
|
|
|
Allowance for loan losses
|
Description of the Matter
|
|
The Company’s loan portfolio totaled $50.3 billion as of December 31, 2019, and the associated allowance for loan losses (ALL) was $637 million. As discussed in Note 1 and 4 of the financial statements, the allowance for loan losses represents management’s estimate of incurred loan losses inherent in the loan portfolio at the balance sheet date. The allowance for loan losses includes specific allowances for certain nonaccrual loans and TDR loans and allowances for homogeneous pools of loans with similar risk characteristics. The Company evaluates each impaired loan to determine the need and amount of specific allowance. The Company determines the allowance for homogeneous pools of loans with similar risk characteristics by applying loss factors to outstanding principal balances. Qualitative adjustments are then made to bring the allowance to the level management believes is appropriate based on factors that are not fully considered in the quantitative analysis. Examples of these adjustments include 1) risk factors that have not been fully addressed in internal risk ratings, 2) imprecision in the risk rating system resulting from inaccuracy in assigning and/or entering risk ratings in the loan accounting system, 3) market conditions, and 4) model imprecision.
Auditing management’s estimate of the allowance for loan losses involved a high degree of subjectivity due to the qualitative adjustments included in the ALL. Management’s identification and measurement of the qualitative adjustments is highly judgmental and could have a significant effect on the allowance for loan losses. |
How We Addressed the Matter in Our Audit
|
|
We obtained an understanding of the Company’s process for establishing the allowance for loan losses, including the qualitative adjustments made to the ALL. We evaluated the design and tested the operating effectiveness of the controls and governance over the appropriateness of the qualitative reserve methodology, including the identification and the assessment for the need for qualitative adjustments, the reliability and accuracy of data used to estimate the various components of the qualitative reserves, and management’s review and approval of qualitative adjustments.
To test the qualitative adjustments, we evaluated the identification and measurement of the qualitative adjustments, including the basis for concluding an adjustment was warranted when considering historical loss experience utilized in the quantitative analysis, tested the completeness and accuracy of data used by the Company to estimate the qualitative adjustments, recalculated the analyses used by management to determine the qualitative adjustments, and analyzed the changes in assumptions and components of the qualitative reserves relative to changes in the Company’s loan portfolio. For example, we evaluated the data and information utilized by management to estimate the qualitative adjustments by independently obtaining and comparing to historical loan data, third-party macroeconomic data, and peer bank data to assess the appropriateness of the information and to consider whether new or contradictory information existed. |
(in millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
887
|
|
|
$
|
1,135
|
|
|
$
|
1,209
|
|
|
$
|
1,146
|
|
|
$
|
1,059
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits with banks
|
3,360
|
|
|
4,700
|
|
|
5,443
|
|
|
5,099
|
|
|
6,158
|
|
|||||
Other short-term investments
|
143
|
|
|
134
|
|
|
92
|
|
|
102
|
|
|
106
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities
|
12,120
|
|
|
11,810
|
|
|
12,207
|
|
|
12,348
|
|
|
10,237
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans
|
32,053
|
|
|
30,534
|
|
|
30,415
|
|
|
31,062
|
|
|
31,501
|
|
|||||
Real estate construction loans
|
3,325
|
|
|
3,155
|
|
|
2,958
|
|
|
2,508
|
|
|
1,884
|
|
|||||
Commercial mortgage loans
|
9,170
|
|
|
9,131
|
|
|
9,005
|
|
|
8,981
|
|
|
8,697
|
|
|||||
Lease financing
|
557
|
|
|
470
|
|
|
509
|
|
|
684
|
|
|
783
|
|
|||||
International loans
|
1,019
|
|
|
1,021
|
|
|
1,157
|
|
|
1,367
|
|
|
1,441
|
|
|||||
Residential mortgage loans
|
1,929
|
|
|
1,983
|
|
|
1,989
|
|
|
1,894
|
|
|
1,878
|
|
|||||
Consumer loans
|
2,458
|
|
|
2,472
|
|
|
2,525
|
|
|
2,500
|
|
|
2,444
|
|
|||||
Total loans
|
50,511
|
|
|
48,766
|
|
|
48,558
|
|
|
48,996
|
|
|
48,628
|
|
|||||
Less allowance for loan losses
|
(667
|
)
|
|
(695
|
)
|
|
(728
|
)
|
|
(730
|
)
|
|
(621
|
)
|
|||||
Net loans
|
49,844
|
|
|
48,071
|
|
|
47,830
|
|
|
48,266
|
|
|
48,007
|
|
|||||
Accrued income and other assets
|
5,134
|
|
|
4,874
|
|
|
4,671
|
|
|
4,782
|
|
|
4,680
|
|
|||||
Total assets
|
$
|
71,488
|
|
|
$
|
70,724
|
|
|
$
|
71,452
|
|
|
$
|
71,743
|
|
|
$
|
70,247
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits
|
$
|
26,644
|
|
|
$
|
29,241
|
|
|
$
|
31,013
|
|
|
$
|
29,751
|
|
|
$
|
28,087
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market and interest-bearing checking deposits
|
23,417
|
|
|
22,378
|
|
|
21,585
|
|
|
22,744
|
|
|
24,073
|
|
|||||
Savings deposits
|
2,166
|
|
|
2,199
|
|
|
2,133
|
|
|
2,013
|
|
|
1,841
|
|
|||||
Customer certificates of deposit
|
2,522
|
|
|
2,090
|
|
|
2,470
|
|
|
3,198
|
|
|
4,208
|
|
|||||
Other time deposits
|
705
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|||||
Foreign office time deposits
|
27
|
|
|
25
|
|
|
56
|
|
|
33
|
|
|
116
|
|
|||||
Total interest-bearing deposits
|
28,837
|
|
|
26,694
|
|
|
26,245
|
|
|
27,990
|
|
|
30,239
|
|
|||||
Total deposits
|
55,481
|
|
|
55,935
|
|
|
57,258
|
|
|
57,741
|
|
|
58,326
|
|
|||||
Short-term borrowings
|
369
|
|
|
62
|
|
|
277
|
|
|
138
|
|
|
93
|
|
|||||
Accrued expenses and other liabilities
|
1,375
|
|
|
1,076
|
|
|
996
|
|
|
1,273
|
|
|
1,389
|
|
|||||
Medium- and long-term debt
|
6,955
|
|
|
5,842
|
|
|
4,969
|
|
|
4,917
|
|
|
2,905
|
|
|||||
Total liabilities
|
64,180
|
|
|
62,915
|
|
|
63,500
|
|
|
64,069
|
|
|
62,713
|
|
|||||
Total shareholders’ equity
|
7,308
|
|
|
7,809
|
|
|
7,952
|
|
|
7,674
|
|
|
7,534
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
71,488
|
|
|
$
|
70,724
|
|
|
$
|
71,452
|
|
|
$
|
71,743
|
|
|
$
|
70,247
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
||||||||||
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
INTEREST INCOME
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and fees on loans
|
$
|
2,439
|
|
|
$
|
2,262
|
|
|
$
|
1,872
|
|
|
$
|
1,635
|
|
|
$
|
1,551
|
|
Interest on investment securities
|
297
|
|
|
265
|
|
|
250
|
|
|
247
|
|
|
216
|
|
|||||
Interest on short-term investments
|
71
|
|
|
92
|
|
|
60
|
|
|
27
|
|
|
17
|
|
|||||
Total interest income
|
2,807
|
|
|
2,619
|
|
|
2,182
|
|
|
1,909
|
|
|
1,784
|
|
|||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest on deposits
|
262
|
|
|
122
|
|
|
42
|
|
|
40
|
|
|
43
|
|
|||||
Interest on short-term borrowings
|
9
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||||
Interest on medium- and long-term debt
|
197
|
|
|
144
|
|
|
76
|
|
|
72
|
|
|
52
|
|
|||||
Total interest expense
|
468
|
|
|
267
|
|
|
121
|
|
|
112
|
|
|
95
|
|
|||||
Net interest income
|
2,339
|
|
|
2,352
|
|
|
2,061
|
|
|
1,797
|
|
|
1,689
|
|
|||||
Provision for credit losses
|
74
|
|
|
(1
|
)
|
|
74
|
|
|
248
|
|
|
147
|
|
|||||
Net interest income after provision for loan losses
|
2,265
|
|
|
2,353
|
|
|
1,987
|
|
|
1,549
|
|
|
1,542
|
|
|||||
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
|
||||||||||
Card fees
|
257
|
|
|
244
|
|
|
333
|
|
|
303
|
|
|
276
|
|
|||||
Fiduciary income
|
206
|
|
|
206
|
|
|
198
|
|
|
190
|
|
|
187
|
|
|||||
Service charges on deposit accounts
|
203
|
|
|
211
|
|
|
227
|
|
|
219
|
|
|
223
|
|
|||||
Commercial lending fees
|
91
|
|
|
85
|
|
|
85
|
|
|
89
|
|
|
99
|
|
|||||
Foreign exchange income
|
44
|
|
|
47
|
|
|
45
|
|
|
42
|
|
|
40
|
|
|||||
Bank-owned life insurance
|
41
|
|
|
39
|
|
|
43
|
|
|
42
|
|
|
40
|
|
|||||
Letter of credit fees
|
38
|
|
|
40
|
|
|
45
|
|
|
50
|
|
|
53
|
|
|||||
Brokerage fees
|
28
|
|
|
27
|
|
|
23
|
|
|
19
|
|
|
17
|
|
|||||
Net securities losses
|
(7
|
)
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Other noninterest income
|
109
|
|
|
96
|
|
|
108
|
|
|
97
|
|
|
102
|
|
|||||
Total noninterest income
|
1,010
|
|
|
976
|
|
|
1,107
|
|
|
1,051
|
|
|
1,035
|
|
|||||
NONINTEREST EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and benefits expense
|
1,020
|
|
|
1,009
|
|
|
961
|
|
|
989
|
|
|
1,000
|
|
|||||
Outside processing fee expense
|
264
|
|
|
255
|
|
|
366
|
|
|
336
|
|
|
318
|
|
|||||
Occupancy expense
|
154
|
|
|
152
|
|
|
154
|
|
|
157
|
|
|
159
|
|
|||||
Software expense
|
117
|
|
|
125
|
|
|
126
|
|
|
119
|
|
|
99
|
|
|||||
Equipment expense
|
50
|
|
|
48
|
|
|
45
|
|
|
53
|
|
|
53
|
|
|||||
Advertising expense
|
34
|
|
|
30
|
|
|
28
|
|
|
21
|
|
|
24
|
|
|||||
FDIC insurance expense
|
23
|
|
|
42
|
|
|
51
|
|
|
54
|
|
|
37
|
|
|||||
Restructuring charges
|
—
|
|
|
53
|
|
|
45
|
|
|
93
|
|
|
—
|
|
|||||
Other noninterest expenses
|
81
|
|
|
80
|
|
|
84
|
|
|
108
|
|
|
137
|
|
|||||
Total noninterest expenses
|
1,743
|
|
|
1,794
|
|
|
1,860
|
|
|
1,930
|
|
|
1,827
|
|
|||||
Income before income taxes
|
1,532
|
|
|
1,535
|
|
|
1,234
|
|
|
670
|
|
|
750
|
|
|||||
Provision for income taxes
|
334
|
|
|
300
|
|
|
491
|
|
|
193
|
|
|
229
|
|
|||||
NET INCOME
|
$
|
1,198
|
|
|
$
|
1,235
|
|
|
$
|
743
|
|
|
$
|
477
|
|
|
$
|
521
|
|
Less income allocated to participating securities
|
7
|
|
|
8
|
|
|
5
|
|
|
4
|
|
|
6
|
|
|||||
Net income attributable to common shares
|
$
|
1,191
|
|
|
$
|
1,227
|
|
|
$
|
738
|
|
|
$
|
473
|
|
|
$
|
515
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
7.95
|
|
|
$
|
7.31
|
|
|
$
|
4.23
|
|
|
$
|
2.74
|
|
|
$
|
2.93
|
|
Diluted
|
7.87
|
|
|
7.20
|
|
|
4.14
|
|
|
2.68
|
|
|
2.84
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income
|
1,572
|
|
|
1,076
|
|
|
762
|
|
|
523
|
|
|
504
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends declared on common stock
|
398
|
|
|
309
|
|
|
193
|
|
|
154
|
|
|
148
|
|
|||||
Cash dividends declared per common share
|
2.68
|
|
|
1.84
|
|
|
1.09
|
|
|
0.89
|
|
|
0.83
|
|
Years Ended December 31
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Average Rates
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits with banks
|
2.05
|
%
|
|
1.94
|
%
|
|
1.09
|
%
|
|
0.51
|
%
|
|
0.26
|
%
|
|||||
Other short-term investments
|
1.26
|
|
|
0.96
|
|
|
0.64
|
|
|
0.61
|
|
|
0.81
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities
|
2.44
|
|
|
2.19
|
|
|
2.05
|
|
|
2.02
|
|
|
2.13
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans
|
4.82
|
|
|
4.64
|
|
|
3.82
|
|
|
3.25
|
|
|
3.06
|
|
|||||
Real estate construction loans
|
5.54
|
|
|
5.21
|
|
|
4.18
|
|
|
3.63
|
|
|
3.48
|
|
|||||
Commercial mortgage loans
|
4.88
|
|
|
4.69
|
|
|
3.97
|
|
|
3.49
|
|
|
3.41
|
|
|||||
Lease financing
|
3.44
|
|
|
3.82
|
|
|
2.63
|
|
|
2.64
|
|
|
3.15
|
|
|||||
International loans
|
5.13
|
|
|
4.97
|
|
|
4.07
|
|
|
3.63
|
|
|
3.58
|
|
|||||
Residential mortgage loans
|
3.85
|
|
|
3.77
|
|
|
3.70
|
|
|
3.76
|
|
|
3.77
|
|
|||||
Consumer loans
|
4.85
|
|
|
4.41
|
|
|
3.70
|
|
|
3.32
|
|
|
3.26
|
|
|||||
Total loans
|
4.83
|
|
|
4.64
|
|
|
3.85
|
|
|
3.34
|
|
|
3.19
|
|
|||||
Interest income as a percentage of earning assets
|
4.24
|
|
|
3.99
|
|
|
3.29
|
|
|
2.88
|
|
|
2.75
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic deposits
|
0.91
|
|
|
0.45
|
|
|
0.16
|
|
|
0.14
|
|
|
0.14
|
|
|||||
Deposits in foreign offices
|
1.39
|
|
|
1.19
|
|
|
0.64
|
|
|
0.35
|
|
|
1.02
|
|
|||||
Total interest-bearing deposits
|
0.91
|
|
|
0.46
|
|
|
0.16
|
|
|
0.14
|
|
|
0.14
|
|
|||||
Short-term borrowings
|
2.39
|
|
|
1.93
|
|
|
1.14
|
|
|
0.45
|
|
|
0.05
|
|
|||||
Medium- and long-term debt
|
2.82
|
|
|
2.47
|
|
|
1.51
|
|
|
1.45
|
|
|
1.80
|
|
|||||
Interest expense as a percentage of interest-bearing sources
|
1.29
|
|
|
0.82
|
|
|
0.38
|
|
|
0.34
|
|
|
0.29
|
|
|||||
Interest rate spread
|
2.95
|
|
|
3.17
|
|
|
2.91
|
|
|
2.54
|
|
|
2.46
|
|
|||||
Impact of net noninterest-bearing sources of funds
|
0.59
|
|
|
0.41
|
|
|
0.20
|
|
|
0.17
|
|
|
0.14
|
|
|||||
Net interest margin as a percentage of earning assets
|
3.54
|
%
|
|
3.58
|
%
|
|
3.11
|
%
|
|
2.71
|
%
|
|
2.60
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average common shareholders’ equity
|
16.39
|
%
|
|
15.82
|
%
|
|
9.34
|
%
|
|
6.22
|
%
|
|
6.91
|
%
|
|||||
Return on average assets
|
1.68
|
|
|
1.75
|
|
|
1.04
|
|
|
0.67
|
|
|
0.74
|
|
|||||
Efficiency ratio (a)
|
51.82
|
|
|
53.56
|
|
|
58.64
|
|
|
67.62
|
|
|
67.03
|
|
|||||
Common equity tier 1 capital as a percentage of risk weighted assets
|
10.13
|
|
|
11.14
|
|
|
11.68
|
|
|
11.09
|
|
|
10.54
|
|
|||||
Tier 1 capital as a percentage of risk-weighted assets
|
10.13
|
|
|
11.14
|
|
|
11.68
|
|
|
11.09
|
|
|
10.54
|
|
|||||
Total capital as a percentage of risk-weighted assets
|
12.13
|
|
|
13.21
|
|
|
13.84
|
|
|
13.27
|
|
|
12.69
|
|
|||||
Common equity ratio
|
9.98
|
|
|
10.60
|
|
|
11.13
|
|
|
10.68
|
|
|
10.52
|
|
|||||
Tangible common equity as a percentage of tangible assets (b)
|
9.19
|
|
|
9.78
|
|
|
10.32
|
|
|
9.89
|
|
|
9.70
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Common Share Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Book value at year-end
|
$
|
51.57
|
|
|
$
|
46.89
|
|
|
$
|
46.07
|
|
|
$
|
44.47
|
|
|
$
|
43.03
|
|
Market value at year-end
|
71.75
|
|
|
68.69
|
|
|
86.81
|
|
|
68.11
|
|
|
41.83
|
|
|||||
Market value for the year
|
|
|
|
|
|
|
|
|
|
||||||||||
High
|
88.96
|
|
|
102.66
|
|
|
88.22
|
|
|
70.44
|
|
|
53.45
|
|
|||||
Low
|
58.54
|
|
|
63.69
|
|
|
64.04
|
|
|
30.48
|
|
|
39.52
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Data (share data in millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
Average common shares outstanding - basic
|
150
|
|
|
168
|
|
|
174
|
|
|
172
|
|
|
176
|
|
|||||
Average common shares outstanding - diluted
|
151
|
|
|
171
|
|
|
178
|
|
|
177
|
|
|
181
|
|
|||||
Number of banking centers
|
436
|
|
|
436
|
|
|
438
|
|
|
458
|
|
|
477
|
|
|||||
Number of employees (full-time equivalent)
|
7,747
|
|
|
7,865
|
|
|
7,999
|
|
|
7,960
|
|
|
8,880
|
|
(a)
|
Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net securities gains (losses) from securities and a derivative contract tied to the conversion rate of Visa Class B shares.
|
(b)
|
See Supplemental Financial Data section for reconcilements of non-GAAP financial measures.
|
|
COMERICA INCORPORATED
|
||
|
|
|
|
|
By:
|
|
/s/ Curtis C. Farmer
|
|
|
|
Curtis C. Farmer
Chairman, President and Chief Executive Officer
|
/s/ Curtis C. Farmer
|
|
Chairman, President and Chief Executive Officer and
|
Curtis C. Farmer
|
|
Director (Principal Executive Officer)
|
|
|
|
/s/ James J. Herzog
|
|
Executive Vice President, Treasurer and Interim
|
James J. Herzog
|
|
Chief Financial Officer (Principal Financial Officer)
|
|
|
|
/s/ Mauricio A. Ortiz
|
|
Senior Vice President and Chief Accounting Officer
|
Mauricio A. Ortiz
|
|
(Principal Accounting Officer)
|
|
|
|
/s/ Michael E. Collins
|
|
|
Michael E. Collins
|
|
Director
|
|
|
|
/s/ Roger A. Cregg
|
|
|
Roger A. Cregg
|
|
Director
|
|
|
|
/s/ T. Kevin DeNicola
|
|
|
T. Kevin DeNicola
|
|
Director
|
|
|
|
/s/ Jacqueline P. Kane
|
|
|
Jacqueline P. Kane
|
|
Director
|
|
|
|
/s/ Richard G. Lindner
|
|
|
Richard G. Lindner
|
|
Director
|
|
|
|
/s/ Barbara R. Smith
|
|
|
Barbara R. Smith
|
|
Director
|
|
|
|
/s/ Robert S. Taubman
|
|
|
Robert S. Taubman
|
|
Director
|
|
|
|
/s/ Reginald M. Turner, Jr.
|
|
|
Reginald M. Turner, Jr.
|
|
Director
|
|
|
|
/s/ Nina G. Vaca
|
|
|
Nina G. Vaca
|
|
Director
|
|
|
|
/s/ Michael G. Van de Ven
|
|
|
Michael G. Van de Ven
|
|
Director
|
(i)
|
the Company's Management Incentive Plan; and
|
|
if to the Executive:
|
|
|
|
|
|
|
||
|
|
At the most recent address on file at the Company.
|
||
|
|
|
|
|
|
if to the Company:
|
|
|
|
|
|
|
|
|
|
|
Comerica Incorporated
|
|
|
|
|
Comerica Bank Tower
|
|
|
|
|
1717 Main Street, MC 6404
|
|
|
|
|
Dallas, Texas 75201
|
|
|
|
|
Attention: General Counsel
|
|
|
|
|
|
|
|
|
___________________________________
|
|
|
|
|
[Name of Executive]
|
|
|
|
|
|
|
|
|
|
COMERICA INCORPORATED
|
|
|
|
|
By:________________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
State or Jurisdiction of
Incorporation or Organization
|
Cass & Co.
|
Cayman Islands
|
Comerica Assurance Ltd.
|
Bermuda
|
Comerica Bank (d.b.a. Comerica - Technology & Life Sciences Co.; Sterling Bank, a division of Comerica Bank; Comerica Bank Inc.; Comerica Bank Incorporated; Comerica Bank (Inc.))
|
Texas
|
Comerica Bank & Trust, National Association
|
United States
|
Comerica Capital Advisors Incorporated
|
Delaware
|
Comerica do Brasil Participacoes e Servicos Ltda.
|
Brazil
|
Comerica Community Development Investment Fund II, LLC
|
Delaware
|
Comerica Financial Incorporated (f/k/a/ Comerica AutoLease, Inc.)
|
Michigan
|
Comerica Holdings Incorporated
|
Delaware
|
Comerica Insurance Group, Inc. (d.b.a. The Comerica Insurance Group)
|
Michigan
|
Comerica Insurance Services, Inc. (d.b.a. Comerica Insurance Agency)
|
Michigan
|
Comerica Insurance Services of Texas Incorporated (f/k/a CMA Insurance Services, Inc.)
|
Texas
|
Comerica Investment Services, Inc. (d.b.a. Comerica Investment Services)
|
Michigan
|
Comerica Leasing Corporation (f/k/a CMCA Lease, Inc.)
|
Michigan
|
Comerica Management Company
|
Michigan
|
Comerica Properties Corporation
|
Michigan
|
Comerica Securities, Inc. (d.b.a. Comerica Securities)
|
Michigan
|
Comerica Ventures Incorporated (f/k/a Imperial Ventures, Inc.)
|
California
|
Interstate Select Insurance Services, Inc. (d.b.a. Comerica of California Insurance Services)
|
California
|
Munder UK, L.L.C.
|
Delaware
|
SCFS Reverse Exchange, LLC (f/k/a NBF Reverse Exchange, LLC)
|
Delaware
|
Silver Funding Corp.
|
Delaware
|
VRB Corp. (d.b.a. VRB Properties Corp.)
|
Michigan
|
VRB Comfort, LLC
|
Delaware
|
VRB Marketplace of Rochester Hills, LLC
|
Delaware
|
VRB Ocala Ranch, LLC
|
Delaware
|
VRB Red Oak, LLC
|
Delaware
|
VRB Spanish Oaks, LLC
|
Delaware
|
WAM Holdings, Inc.
|
Delaware
|
Wilson, Kemp & Associates, Inc.
|
Michigan
|
World Asset Management, Inc.
|
Delaware
|
1.
|
I have reviewed this annual report on Form 10-K for the year ended December 31, 2019 of Comerica Incorporated (the “Registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the Registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and
|
5.
|
The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.
|
Date:
|
February 11, 2020
|
/s/ Curtis C. Farmer
|
|
|
Curtis C. Farmer
|
|
|
Chairman, President and Chief Executive Officer
|
|
|
|
1.
|
I have reviewed this annual report on Form 10-K for the year ended December 31, 2019 of Comerica Incorporated (the “Registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the Registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and
|
5.
|
The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.
|
Date:
|
February 11, 2020
|
/s/ James J. Herzog
|
|
|
James J. Herzog
|
|
|
Executive Vice President, Treasurer and
|
|
|
Interim Chief Financial Officer
|
(1)
|
the Annual Report on Form 10-K of the Company for the year ended December 31, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated:
|
February 11, 2020
|
/s/ Curtis C. Farmer
|
|
|
Curtis C. Farmer
|
|
|
Chairman, President and Chief Executive Officer
|
|
|
|
|
|
|
|
|
/s/ James J. Herzog
|
|
|
James J. Herzog
|
|
|
Executive Vice President, Treasurer and
|
|
|
Interim Chief Financial Officer
|