|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Pennsylvania
|
|
25-1435979
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.) |
Large accelerated filer
|
|
☒
|
|
Accelerated filer
|
|
☐
|
Non-accelerated filer
|
|
☐
|
|
Smaller reporting company
|
|
☐
|
|
|
|
|
Emerging growth company
|
|
☐
|
Title of Each Class
|
Trading Symbol(s)
|
Name of Each Exchange
on Which Registered
|
Common Stock, par value $5.00
|
PNC
|
New York Stock Exchange
|
Depositary Shares Each Representing a 1/4,000 Interest in a Share of Fixed-to-
Floating Rate Non-Cumulative Perpetual Preferred Stock, Series P |
PNC P
|
New York Stock Exchange
|
Depositary Shares Each Representing a 1/4,000 Interest in a Share of 5.375%
Non-Cumulative Perpetual Preferred Stock, Series Q |
PNC Q
|
New York Stock Exchange
|
|
|
Pages
|
PART I – FINANCIAL INFORMATION
|
|
Item 1. Financial Statements (Unaudited).
|
|
|
|
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A).
|
|
Item 3. Quantitative and Qualitative Disclosures about Market Risk.
|
18-33, 55-61 and 64-69
|
Item 4. Controls and Procedures.
|
|
|
|
|
|
|
MD&A TABLE REFERENCE
|
|
|
Table
|
Description
|
Page
|
1
|
||
2
|
||
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
9
|
||
10
|
||
11
|
||
12
|
||
13
|
||
14
|
||
15
|
||
16
|
||
17
|
||
18
|
||
19
|
||
20
|
||
21
|
||
22
|
||
23
|
||
24
|
||
25
|
||
26
|
||
27
|
||
28
|
||
29
|
||
30
|
||
31
|
||
32
|
|
|
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS TABLE REFERENCE
|
|
|
Table
|
Description
|
Page
|
33
|
||
34
|
||
35
|
||
36
|
||
37
|
||
38
|
||
39
|
||
40
|
||
41
|
||
42
|
||
43
|
||
44
|
||
45
|
||
46
|
||
47
|
||
48
|
||
49
|
||
50
|
||
51
|
||
52
|
||
53
|
||
54
|
||
55
|
||
56
|
||
57
|
||
58
|
||
59
|
||
60
|
||
61
|
||
62
|
||
63
|
||
64
|
||
65
|
||
66
|
||
67
|
||
68
|
||
69
|
||
70
|
||
71
|
||
72
|
||
73
|
||
74
|
||
75
|
||
76
|
Dollars in millions, except per share data
Unaudited
|
Three months ended
September 30 |
Nine months ended
September 30 |
|
||||||||||
2019
|
2018
|
2019
|
2018
|
|
|||||||||
Financial Results (a)
|
|
|
|
|
|
||||||||
Revenue
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
2,504
|
|
$
|
2,466
|
|
$
|
7,477
|
|
$
|
7,240
|
|
|
Noninterest income
|
1,989
|
|
1,891
|
|
5,741
|
|
5,552
|
|
|
||||
Total revenue
|
4,493
|
|
4,357
|
|
13,218
|
|
12,792
|
|
|
||||
Provision for credit losses
|
183
|
|
88
|
|
552
|
|
260
|
|
|
||||
Noninterest expense
|
2,623
|
|
2,608
|
|
7,812
|
|
7,719
|
|
|
||||
Income before income taxes and noncontrolling interests
|
$
|
1,687
|
|
$
|
1,661
|
|
$
|
4,854
|
|
$
|
4,813
|
|
|
Net income
|
$
|
1,392
|
|
$
|
1,400
|
|
$
|
4,037
|
|
$
|
3,995
|
|
|
Less:
|
|
|
|
|
|
||||||||
Net income attributable to noncontrolling interests
|
13
|
|
11
|
|
35
|
|
31
|
|
|
||||
Preferred stock dividends
|
63
|
|
63
|
|
181
|
|
181
|
|
|
||||
Preferred stock discount accretion and redemptions
|
1
|
|
1
|
|
3
|
|
3
|
|
|
||||
Net income attributable to common shareholders
|
1,315
|
|
1,325
|
|
3,818
|
|
3,780
|
|
|
||||
Less:
|
|
|
|
|
|
||||||||
Dividends and undistributed earnings allocated to participating securities
|
6
|
|
6
|
|
15
|
|
16
|
|
|
||||
Impact of BlackRock earnings per share dilution
|
2
|
|
2
|
|
7
|
|
7
|
|
|
||||
Net income attributable to diluted common shares
|
$
|
1,307
|
|
$
|
1,317
|
|
$
|
3,796
|
|
$
|
3,757
|
|
|
Diluted earnings per common share
|
$
|
2.94
|
|
$
|
2.82
|
|
$
|
8.42
|
|
$
|
7.96
|
|
|
Cash dividends declared per common share
|
$
|
1.15
|
|
$
|
.95
|
|
$
|
3.05
|
|
$
|
2.45
|
|
|
Effective tax rate (b)
|
17.5
|
%
|
15.7
|
%
|
16.8
|
%
|
17.0
|
%
|
|
||||
Performance Ratios
|
|
|
|
|
|
||||||||
Net interest margin (c)
|
2.84
|
%
|
2.99
|
%
|
2.91
|
%
|
2.95
|
%
|
|
||||
Noninterest income to total revenue
|
44
|
%
|
43
|
%
|
43
|
%
|
43
|
%
|
|
||||
Efficiency
|
58
|
%
|
60
|
%
|
59
|
%
|
60
|
%
|
|
||||
Return on:
|
|
|
|
|
|
||||||||
Average common shareholders’ equity
|
11.56
|
%
|
12.32
|
%
|
11.48
|
%
|
11.83
|
%
|
|
||||
Average assets
|
1.36
|
%
|
1.47
|
%
|
1.36
|
%
|
1.42
|
%
|
|
(a)
|
The Executive Summary and Consolidated Income Statement Review portions of this Financial Review section provide information regarding items impacting the comparability of the periods presented.
|
(b)
|
The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.
|
(c)
|
Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP in the Consolidated Income Statement. For additional information, see Reconciliation of Taxable-Equivalent Net Interest Income (Non-GAAP) in the Statistical Information (Unaudited) section in Item 1 of this Report.
|
Unaudited
|
September 30
2019 |
|
December 31
2018 |
|
September 30
2018 |
|
|
|||
Balance Sheet Data (dollars in millions, except per share data)
|
|
|
|
|
||||||
Assets
|
$
|
408,916
|
|
$
|
382,315
|
|
$
|
380,080
|
|
|
Loans
|
$
|
237,377
|
|
$
|
226,245
|
|
$
|
223,053
|
|
|
Allowance for loan and lease losses
|
$
|
2,738
|
|
$
|
2,629
|
|
$
|
2,584
|
|
|
Interest-earning deposits with banks (b)
|
$
|
19,036
|
|
$
|
10,893
|
|
$
|
19,800
|
|
|
Investment securities
|
$
|
87,883
|
|
$
|
82,701
|
|
$
|
80,804
|
|
|
Loans held for sale
|
$
|
1,872
|
|
$
|
994
|
|
$
|
1,108
|
|
|
Equity investments (c)
|
$
|
13,325
|
|
$
|
12,894
|
|
$
|
12,446
|
|
|
Mortgage servicing rights
|
$
|
1,483
|
|
$
|
1,983
|
|
$
|
2,136
|
|
|
Goodwill
|
$
|
9,233
|
|
$
|
9,218
|
|
$
|
9,218
|
|
|
Other assets
|
$
|
35,774
|
|
$
|
34,408
|
|
$
|
28,851
|
|
|
Noninterest-bearing deposits
|
$
|
74,077
|
|
$
|
73,960
|
|
$
|
74,736
|
|
|
Interest-bearing deposits
|
$
|
211,506
|
|
$
|
193,879
|
|
$
|
190,148
|
|
|
Total deposits
|
$
|
285,583
|
|
$
|
267,839
|
|
$
|
264,884
|
|
|
Borrowed funds
|
$
|
61,354
|
|
$
|
57,419
|
|
$
|
57,955
|
|
|
Total shareholders’ equity
|
$
|
49,420
|
|
$
|
47,728
|
|
$
|
47,058
|
|
|
Common shareholders’ equity
|
$
|
45,428
|
|
$
|
43,742
|
|
$
|
43,076
|
|
|
Accumulated other comprehensive income (loss)
|
$
|
837
|
|
$
|
(725
|
)
|
$
|
(1,260
|
)
|
|
Book value per common share
|
$
|
103.37
|
|
$
|
95.72
|
|
$
|
93.22
|
|
|
Period-end common shares outstanding (in millions)
|
439
|
|
457
|
|
462
|
|
|
|||
Loans to deposits
|
83
|
%
|
84
|
%
|
84
|
%
|
|
|||
Common shareholders’ equity to total assets
|
11.1
|
%
|
11.4
|
%
|
11.3
|
%
|
|
|||
Client Assets (in billions)
|
|
|
|
|
||||||
Discretionary client assets under management
|
$
|
163
|
|
$
|
148
|
|
$
|
159
|
|
|
Nondiscretionary client assets under administration
|
135
|
|
124
|
|
134
|
|
|
|||
Total client assets under administration
|
298
|
|
272
|
|
293
|
|
|
|||
Brokerage account client assets
|
52
|
|
47
|
|
51
|
|
|
|||
Total client assets
|
$
|
350
|
|
$
|
319
|
|
$
|
344
|
|
|
Basel III Capital Ratios (d)
|
|
|
|
|
||||||
Common equity Tier 1
|
9.6
|
%
|
9.6
|
%
|
9.3
|
%
|
|
|||
Tier 1 risk-based
|
10.7
|
%
|
10.8
|
%
|
10.5
|
%
|
|
|||
Total capital risk-based (e)
|
12.7
|
%
|
13.0
|
%
|
12.7
|
%
|
|
|||
Leverage
|
9.3
|
%
|
9.4
|
%
|
9.2
|
%
|
|
|||
Supplementary leverage
|
7.8
|
%
|
7.8
|
%
|
7.7
|
%
|
|
|||
Asset Quality
|
|
|
|
|
||||||
Nonperforming loans to total loans
|
.73
|
%
|
.75
|
%
|
.76
|
%
|
|
|||
Nonperforming assets to total loans, OREO and foreclosed assets
|
.78
|
%
|
.80
|
%
|
.82
|
%
|
|
|||
Nonperforming assets to total assets
|
.45
|
%
|
.47
|
%
|
.48
|
%
|
|
|||
Net charge-offs to average loans (for the three months ended) (annualized)
|
.26
|
%
|
.19
|
%
|
.16
|
%
|
|
|||
Allowance for loan and lease losses to total loans
|
1.15
|
%
|
1.16
|
%
|
1.16
|
%
|
|
|||
Allowance for loan and lease losses to total nonperforming loans
|
158
|
%
|
155
|
%
|
153
|
%
|
|
|||
Accruing loans past due 90 days or more (in millions)
|
$
|
532
|
|
$
|
629
|
|
$
|
619
|
|
|
(a)
|
The Executive Summary and Consolidated Balance Sheet Review portions of this Financial Review provide information regarding items impacting the comparability of the periods presented.
|
(b)
|
Amounts include balances held with the Federal Reserve Bank of Cleveland (Federal Reserve Bank) of $18.8 billion, $10.5 billion and $19.6 billion as of September 30, 2019, December 31, 2018 and September 30, 2018, respectively.
|
(c)
|
Amounts include our equity interest in BlackRock, Inc..
|
(d)
|
All ratios are calculated based on the standardized approach. See Basel III Capital discussion in the Capital Management portion of the Risk Management section of this Financial Review and the capital discussion in the Banking Regulation and Supervision section of Item 1 Business and Item 1A Risk Factors in our 2018 Form 10-K.
|
(e)
|
The 2019 and 2018 Basel III Total risk-based capital ratios include nonqualifying trust preferred capital securities of $60 million and $80 million, respectively, that are subject to a phase-out period that runs through 2021.
|
•
|
Expanding our leading banking franchise to new markets and digital platforms;
|
•
|
Deepening customer relationships by delivering a superior banking experience and financial solutions; and
|
•
|
Leveraging technology to innovate and enhance products, services, security and processes.
|
•
|
Total revenue increased $136 million, or 3%, to $4.5 billion.
|
•
|
Net interest income of $2.5 billion increased $38 million, or 2%.
|
•
|
Net interest margin decreased to 2.84% compared to 2.99% for the third quarter of 2018.
|
•
|
Noninterest income of $2.0 billion increased $98 million, or 5%.
|
•
|
Provision for credit losses increased to $183 million from $88 million for the third quarter of 2018.
|
•
|
Noninterest expense of $2.6 billion increased $15 million, or 1%.
|
•
|
We generated positive operating leverage in the third quarter of 2019.
|
•
|
Earnings per diluted common share increased reflecting lower average common shares outstanding due to share repurchases.
|
•
|
Total assets increased $26.6 billion, or 7%, to $408.9 billion.
|
•
|
Total loans increased $11.1 billion, or 5%, to $237.4 billion.
|
•
|
Total commercial lending grew $7.9 billion, or 5%, to $160.2 billion.
|
•
|
Total consumer lending increased $3.2 billion, or 4%, to $77.2 billion.
|
•
|
Investment securities increased $5.2 billion, or 6%, to $87.9 billion.
|
•
|
Interest-earning deposits with banks, primarily with the Federal Reserve Bank, increased $8.1 billion to $19.0 billion.
|
•
|
Total deposits increased $17.7 billion, or 7%, to $285.6 billion.
|
•
|
Borrowed funds increased $3.9 billion, or 7%, to $61.4 billion.
|
•
|
At September 30, 2019 compared to December 31, 2018:
|
•
|
Nonperforming assets of $1.8 billion increased $39 million, or 2%.
|
•
|
Overall loan delinquencies decreased $137 million, or 9%, to $1.3 billion.
|
•
|
Net charge-offs were $155 million, or .26% of average loans on annualized basis, in the third quarter of 2019 compared to $91 million, or .16%, for the third quarter of 2018.
|
•
|
The allowance for loan and lease losses (ALLL) to total loans was 1.15% at September 30, 2019 and 1.16% at December 31, 2018.
|
•
|
The Basel III common equity Tier 1 capital ratio was 9.6% at both September 30, 2019 and December 31, 2018.
|
•
|
Common shareholders' equity increased to $45.4 billion at September 30, 2019 compared to $43.7 billion at December 31, 2018.
|
•
|
In the third quarter of 2019, we returned $1.5 billion of capital to shareholders through repurchases of 7.5 million common shares for $1.0 billion and dividends on common shares of $.5 billion.
|
•
|
For the nine months ended September 30, 2019, we returned $3.9 billion of capital to shareholders through repurchases of 19.4 million common shares for $2.5 billion and dividends on common shares of $1.4 billion.
|
•
|
U.S. economic growth, after accelerating a few years ago, has slowed since mid-2018 and is expected to slow further through the rest of this year and into 2020.
|
•
|
Job growth will continue into 2020, but at a slower pace due to both difficulty in finding workers and slower economic growth. The unemployment rate is expected to increase slightly in the near term, but the labor market will remain tight, pushing wages higher and supporting continued gains in consumer spending.
|
•
|
Slower global economic growth, trade restrictions and geopolitical concerns are downside risks to the forecast, which have increased in 2019, and risks are weighted to the downside.
|
•
|
Inflation has slowed in 2019, to below the Federal Open Market Committee's (FOMC's) 2% objective, but is expected to gradually increase over the next two years.
|
•
|
Our baseline forecast includes the 0.25% federal funds rate cut on October 30, 2019. We expect the funds rate to remain in a range of 1.50% to 1.75% through the rest of 2019.
|
•
|
Average loans to be up approximately 1%;
|
•
|
Net interest income to be down approximately 1%;
|
•
|
Fee income to be stable to up 1%. Fee income consists of asset management, consumer services, corporate services, residential mortgage and service charges on deposits;
|
•
|
Other noninterest income to be in the range of $300 million to $350 million, excluding net securities gains (losses) and activity related to Visa Class B common shares;
|
•
|
Provision for credit losses to be between $175 million and $225 million; and
|
•
|
Noninterest expense to be up approximately 1%.
|
|
|
2019
|
|
2018
|
|
||||||||||||||||||
Three months ended September 30
Dollars in millions |
|
Average
Balances
|
|
|
Average
Yields/
Rates
|
|
|
Interest
Income/
Expense
|
|
|
Average
Balances
|
|
|
Average
Yields/
Rates
|
|
|
Interest
Income/
Expense
|
|
|
||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities
|
|
$
|
85,166
|
|
|
2.91
|
%
|
|
$
|
622
|
|
|
$
|
80,766
|
|
|
2.92
|
%
|
|
$
|
591
|
|
|
Loans
|
|
237,682
|
|
|
4.47
|
%
|
|
2,698
|
|
|
223,342
|
|
|
4.36
|
%
|
|
2,474
|
|
|
||||
Interest-earning deposits with banks
|
|
15,632
|
|
|
2.17
|
%
|
|
85
|
|
|
19,151
|
|
|
1.97
|
%
|
|
95
|
|
|
||||
Other
|
|
14,094
|
|
|
3.49
|
%
|
|
123
|
|
|
7,114
|
|
|
5.19
|
%
|
|
92
|
|
|
||||
Total interest-earning assets/interest income
|
|
$
|
352,574
|
|
|
3.95
|
%
|
|
3,528
|
|
|
$
|
330,373
|
|
|
3.89
|
%
|
|
3,252
|
|
|
||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
|
$
|
206,942
|
|
|
1.02
|
%
|
|
531
|
|
|
$
|
186,320
|
|
|
.71
|
%
|
|
336
|
|
|
||
Borrowed funds
|
|
63,933
|
|
|
2.87
|
%
|
|
468
|
|
|
59,838
|
|
|
2.76
|
%
|
|
421
|
|
|
||||
Total interest-bearing liabilities/interest expense
|
|
$
|
270,875
|
|
|
1.45
|
%
|
|
999
|
|
|
$
|
246,158
|
|
|
1.21
|
%
|
|
757
|
|
|
||
Net interest margin/income (Non-GAAP)
|
|
|
|
2.84
|
%
|
|
2,529
|
|
|
|
|
2.99
|
%
|
|
2,495
|
|
|
||||||
Taxable-equivalent adjustments
|
|
|
|
|
|
(25
|
)
|
|
|
|
|
|
(29
|
)
|
|
||||||||
Net interest income (GAAP)
|
|
|
|
|
|
$
|
2,504
|
|
|
|
|
|
|
$
|
2,466
|
|
|
|
|
2019
|
|
2018
|
|
||||||||||||||||||
Nine months ended September 30
Dollars in millions |
|
Average
Balances
|
|
|
Average
Yields/
Rates
|
|
|
Interest
Income/
Expense
|
|
|
Average
Balances
|
|
|
Average
Yields/
Rates
|
|
|
Interest
Income/
Expense
|
|
|
||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities
|
|
$
|
83,719
|
|
|
3.00
|
%
|
|
$
|
1,884
|
|
|
$
|
77,656
|
|
|
2.87
|
%
|
|
$
|
1,674
|
|
|
Loans
|
|
233,724
|
|
|
4.54
|
%
|
|
8,013
|
|
|
222,385
|
|
|
4.23
|
%
|
|
7,091
|
|
|
||||
Interest-earning deposits with banks
|
|
14,708
|
|
|
2.32
|
%
|
|
256
|
|
|
21,921
|
|
|
1.74
|
%
|
|
286
|
|
|
||||
Other
|
|
12,780
|
|
|
3.70
|
%
|
|
354
|
|
|
7,305
|
|
|
4.74
|
%
|
|
259
|
|
|
||||
Total interest-earning assets/interest income
|
|
$
|
344,931
|
|
|
4.04
|
%
|
|
10,507
|
|
|
$
|
329,267
|
|
|
3.75
|
%
|
|
9,310
|
|
|
||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
|
$
|
201,371
|
|
|
1.01
|
%
|
|
1,518
|
|
|
$
|
184,716
|
|
|
.59
|
%
|
|
810
|
|
|
||
Borrowed funds
|
|
62,033
|
|
|
3.05
|
%
|
|
1,433
|
|
|
59,481
|
|
|
2.60
|
%
|
|
1,173
|
|
|
||||
Total interest-bearing liabilities/interest expense
|
|
$
|
263,404
|
|
|
1.48
|
%
|
|
2,951
|
|
|
$
|
244,197
|
|
|
1.08
|
%
|
|
1,983
|
|
|
||
Net interest margin/income (Non-GAAP)
|
|
|
|
2.91
|
%
|
|
7,556
|
|
|
|
|
2.95
|
%
|
|
7,327
|
|
|
||||||
Taxable-equivalent adjustments
|
|
|
|
|
|
(79
|
)
|
|
|
|
|
|
(87
|
)
|
|
||||||||
Net interest income (GAAP)
|
|
|
|
|
|
$
|
7,477
|
|
|
|
|
|
|
$
|
7,240
|
|
|
(a)
|
Interest income calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income and yields for all interest-earning assets, as well as net interest margins, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
Change
|
|
|
|
|
|
Change
|
|
||||||||||||||||||
Dollars in millions
|
|
2019
|
|
|
2018
|
|
|
$
|
|
%
|
|
2019
|
|
|
2018
|
|
|
$
|
|
|
%
|
|
|
||||||||
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Asset management
|
|
$
|
464
|
|
|
$
|
486
|
|
|
$
|
(22
|
)
|
|
(5
|
)%
|
|
$
|
1,346
|
|
|
$
|
1,397
|
|
|
$
|
(51
|
)
|
|
(4
|
)%
|
|
Consumer services
|
|
402
|
|
|
377
|
|
|
25
|
|
|
7
|
%
|
|
1,165
|
|
|
1,115
|
|
|
50
|
|
|
4
|
%
|
|
||||||
Corporate services
|
|
469
|
|
|
465
|
|
|
4
|
|
|
1
|
%
|
|
1,415
|
|
|
1,381
|
|
|
34
|
|
|
2
|
%
|
|
||||||
Residential mortgage
|
|
134
|
|
|
76
|
|
|
58
|
|
|
76
|
%
|
|
281
|
|
|
257
|
|
|
24
|
|
|
9
|
%
|
|
||||||
Service charges on deposits
|
|
178
|
|
|
186
|
|
|
(8
|
)
|
|
(4
|
)%
|
|
517
|
|
|
522
|
|
|
(5
|
)
|
|
(1
|
)%
|
|
||||||
Other
|
|
342
|
|
|
301
|
|
|
41
|
|
|
14
|
%
|
|
1,017
|
|
|
880
|
|
|
137
|
|
|
16
|
%
|
|
||||||
Total noninterest income
|
|
$
|
1,989
|
|
|
$
|
1,891
|
|
|
$
|
98
|
|
|
5
|
%
|
|
$
|
5,741
|
|
|
$
|
5,552
|
|
|
$
|
189
|
|
|
3
|
%
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
Change
|
|
|
|
|
|
Change
|
|
||||||||||||||||||
Dollars in millions
|
|
2019
|
|
|
2018
|
|
|
$
|
|
%
|
|
2019
|
|
|
2018
|
|
|
$
|
|
|
%
|
|
|
||||||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Personnel
|
|
$
|
1,400
|
|
|
$
|
1,413
|
|
|
$
|
(13
|
)
|
|
(1
|
)%
|
|
$
|
4,179
|
|
|
$
|
4,123
|
|
|
$
|
56
|
|
|
1
|
%
|
|
Occupancy
|
|
206
|
|
|
195
|
|
|
11
|
|
|
6
|
%
|
|
633
|
|
|
616
|
|
|
17
|
|
|
3
|
%
|
|
||||||
Equipment
|
|
291
|
|
|
264
|
|
|
27
|
|
|
10
|
%
|
|
862
|
|
|
818
|
|
|
44
|
|
|
5
|
%
|
|
||||||
Marketing
|
|
76
|
|
|
71
|
|
|
5
|
|
|
7
|
%
|
|
224
|
|
|
201
|
|
|
23
|
|
|
11
|
%
|
|
||||||
Other
|
|
650
|
|
|
665
|
|
|
(15
|
)
|
|
(2
|
)%
|
|
1,914
|
|
|
1,961
|
|
|
(47
|
)
|
|
(2
|
)%
|
|
||||||
Total noninterest expense
|
|
$
|
2,623
|
|
|
$
|
2,608
|
|
|
$
|
15
|
|
|
1
|
%
|
|
$
|
7,812
|
|
|
$
|
7,719
|
|
|
$
|
93
|
|
|
1
|
%
|
|
|
September 30
|
|
|
December 31
|
|
|
Change
|
|
||||||
Dollars in millions
|
2019
|
|
|
2018
|
|
|
$
|
%
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|||||||
Interest-earning deposits with banks
|
$
|
19,036
|
|
|
$
|
10,893
|
|
|
$
|
8,143
|
|
75
|
%
|
|
Loans held for sale
|
1,872
|
|
|
994
|
|
|
878
|
|
88
|
%
|
|
|||
Investment securities
|
87,883
|
|
|
82,701
|
|
|
5,182
|
|
6
|
%
|
|
|||
Loans
|
237,377
|
|
|
226,245
|
|
|
11,132
|
|
5
|
%
|
|
|||
Allowance for loan and lease losses
|
(2,738
|
)
|
|
(2,629
|
)
|
|
(109
|
)
|
(4
|
)%
|
|
|||
Mortgage servicing rights
|
1,483
|
|
|
1,983
|
|
|
(500
|
)
|
(25
|
)%
|
|
|||
Goodwill
|
9,233
|
|
|
9,218
|
|
|
15
|
|
—
|
|
|
|||
Other
|
54,770
|
|
|
52,910
|
|
|
1,860
|
|
4
|
%
|
|
|||
Total assets
|
$
|
408,916
|
|
|
$
|
382,315
|
|
|
$
|
26,601
|
|
7
|
%
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
$
|
285,583
|
|
|
$
|
267,839
|
|
|
$
|
17,744
|
|
7
|
%
|
|
Borrowed funds
|
61,354
|
|
|
57,419
|
|
|
3,935
|
|
7
|
%
|
|
|||
Other
|
12,524
|
|
|
9,287
|
|
|
3,237
|
|
35
|
%
|
|
|||
Total liabilities
|
359,461
|
|
|
334,545
|
|
|
24,916
|
|
7
|
%
|
|
|||
Equity
|
|
|
|
|
|
|
|
|
|
|||||
Total shareholders’ equity
|
49,420
|
|
|
47,728
|
|
|
1,692
|
|
4
|
%
|
|
|||
Noncontrolling interests
|
35
|
|
|
42
|
|
|
(7
|
)
|
(17
|
)%
|
|
|||
Total equity
|
49,455
|
|
|
47,770
|
|
|
1,685
|
|
4
|
%
|
|
|||
Total liabilities and equity
|
$
|
408,916
|
|
|
$
|
382,315
|
|
|
$
|
26,601
|
|
7
|
%
|
|
•
|
Total assets increased as a result of loan growth, higher interest-earning deposits with banks and higher investment securities;
|
•
|
Total liabilities increased due to deposit growth and higher borrowed funds;
|
•
|
Total equity increased due to higher retained earnings driven by net income partially offset by share repurchases and common and preferred dividends and as a result of higher accumulated other comprehensive income (AOCI).
|
|
September 30
|
|
|
December 31
|
|
|
Change
|
|
||||||
Dollars in millions
|
2019
|
|
|
2018
|
|
|
$
|
%
|
|
|||||
Commercial lending
|
|
|
|
|
|
|
|
|||||||
Commercial
|
$
|
124,014
|
|
|
$
|
116,834
|
|
|
$
|
7,180
|
|
6
|
%
|
|
Commercial real estate
|
28,884
|
|
|
28,140
|
|
|
744
|
|
3
|
%
|
|
|||
Equipment lease financing
|
7,290
|
|
|
7,308
|
|
|
(18
|
)
|
—
|
|
|
|||
Total commercial lending
|
160,188
|
|
|
152,282
|
|
|
7,906
|
|
5
|
%
|
|
|||
Consumer lending
|
|
|
|
|
|
|
|
|
|
|||||
Home equity
|
24,971
|
|
|
26,123
|
|
|
(1,152
|
)
|
(4
|
)%
|
|
|||
Residential real estate
|
21,082
|
|
|
18,657
|
|
|
2,425
|
|
13
|
%
|
|
|||
Automobile
|
16,004
|
|
|
14,419
|
|
|
1,585
|
|
11
|
%
|
|
|||
Credit card
|
6,815
|
|
|
6,357
|
|
|
458
|
|
7
|
%
|
|
|||
Education
|
3,461
|
|
|
3,822
|
|
|
(361
|
)
|
(9
|
)%
|
|
|||
Other consumer
|
4,856
|
|
|
4,585
|
|
|
271
|
|
6
|
%
|
|
|||
Total consumer lending
|
77,189
|
|
|
73,963
|
|
|
3,226
|
|
4
|
%
|
|
|||
Total loans
|
$
|
237,377
|
|
|
$
|
226,245
|
|
|
$
|
11,132
|
|
5
|
%
|
|
(a)
|
Ratings percentages allocated based on amortized cost.
|
(b)
|
Collateralized primarily by retail properties, office buildings, lodging properties and multifamily housing.
|
(c)
|
Collateralized primarily by corporate debt, government guaranteed education loans and other consumer credit products.
|
(d)
|
Includes state and municipal securities.
|
(e)
|
Includes available for sale and held to maturity securities, which are recorded on our balance sheet at fair value and amortized cost, respectively.
|
September 30, 2019
|
Years
|
|
|
Agency residential mortgage-backed
|
3.6
|
|
|
Non-agency residential mortgage-backed
|
6.6
|
|
|
Agency commercial mortgage-backed
|
4.1
|
|
|
Non-agency commercial mortgage-backed
|
2.6
|
|
|
Asset-backed
|
2.0
|
|
|
|
September 30
|
|
|
December 31
|
|
|
Change
|
|
||||||
Dollars in millions
|
2019
|
|
|
2018
|
|
|
$
|
%
|
|
|||||
Deposits
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing
|
$
|
74,077
|
|
|
$
|
73,960
|
|
|
$
|
117
|
|
—
|
|
|
Interest-bearing
|
|
|
|
|
|
|
|
|
|
|||||
Money market
|
55,215
|
|
|
53,368
|
|
|
1,847
|
|
3
|
%
|
|
|||
Demand
|
69,161
|
|
|
65,211
|
|
|
3,950
|
|
6
|
%
|
|
|||
Savings
|
65,195
|
|
|
56,793
|
|
|
8,402
|
|
15
|
%
|
|
|||
Time deposits
|
21,935
|
|
|
18,507
|
|
|
3,428
|
|
19
|
%
|
|
|||
Total interest-bearing deposits
|
211,506
|
|
|
193,879
|
|
|
17,627
|
|
9
|
%
|
|
|||
Total deposits
|
285,583
|
|
|
267,839
|
|
|
17,744
|
|
7
|
%
|
|
|||
Borrowed funds
|
|
|
|
|
|
|
|
|
|
|||||
FHLB borrowings
|
21,901
|
|
|
21,501
|
|
|
400
|
|
2
|
%
|
|
|||
Bank notes and senior debt
|
27,148
|
|
|
25,018
|
|
|
2,130
|
|
9
|
%
|
|
|||
Subordinated debt
|
5,473
|
|
|
5,895
|
|
|
(422
|
)
|
(7
|
)%
|
|
|||
Other
|
6,832
|
|
|
5,005
|
|
|
1,827
|
|
37
|
%
|
|
|||
Total borrowed funds
|
61,354
|
|
|
57,419
|
|
|
3,935
|
|
7
|
%
|
|
|||
Total funding sources
|
$
|
346,937
|
|
|
$
|
325,258
|
|
|
$
|
21,679
|
|
7
|
%
|
|
•
|
Retail Banking
|
•
|
Corporate & Institutional Banking
|
•
|
Asset Management Group
|
•
|
BlackRock
|
(Unaudited)
|
|
|
|
|
|
|
|
|||||||
Nine months ended September 30
|
|
|
|
|
Change
|
|
||||||||
Dollars in millions, except as noted
|
2019
|
|
2018
|
|
$
|
%
|
|
|||||||
Income Statement
|
|
|
|
|
|
|
|
|||||||
Net interest income
|
$
|
4,118
|
|
|
$
|
3,800
|
|
|
$
|
318
|
|
8
|
%
|
|
Noninterest income
|
1,996
|
|
|
1,935
|
|
|
61
|
|
3
|
%
|
|
|||
Total revenue
|
6,114
|
|
|
5,735
|
|
|
379
|
|
7
|
%
|
|
|||
Provision for credit losses
|
356
|
|
|
254
|
|
|
102
|
|
40
|
%
|
|
|||
Noninterest expense
|
4,531
|
|
|
4,491
|
|
|
40
|
|
1
|
%
|
|
|||
Pretax earnings
|
1,227
|
|
|
990
|
|
|
237
|
|
24
|
%
|
|
|||
Income taxes
|
291
|
|
|
239
|
|
|
52
|
|
22
|
%
|
|
|||
Earnings
|
$
|
936
|
|
|
$
|
751
|
|
|
$
|
185
|
|
25
|
%
|
|
Average Balance Sheet
|
|
|
|
|
|
|
|
|||||||
Loans held for sale
|
$
|
586
|
|
|
$
|
662
|
|
|
$
|
(76
|
)
|
(11
|
)%
|
|
Loans
|
|
|
|
|
|
|
|
|||||||
Consumer
|
|
|
|
|
|
|
|
|||||||
Home equity
|
$
|
22,679
|
|
|
$
|
24,188
|
|
|
$
|
(1,509
|
)
|
(6
|
)%
|
|
Automobile
|
15,201
|
|
|
13,643
|
|
|
1,558
|
|
11
|
%
|
|
|||
Education
|
3,672
|
|
|
4,208
|
|
|
(536
|
)
|
(13
|
)%
|
|
|||
Credit cards
|
6,403
|
|
|
5,746
|
|
|
657
|
|
11
|
%
|
|
|||
Other
|
2,187
|
|
|
1,794
|
|
|
393
|
|
22
|
%
|
|
|||
Total consumer
|
50,142
|
|
|
49,579
|
|
|
563
|
|
1
|
%
|
|
|||
Commercial and commercial real estate
|
10,440
|
|
|
10,397
|
|
|
43
|
|
—
|
|
|
|||
Residential mortgage
|
15,806
|
|
|
13,767
|
|
|
2,039
|
|
15
|
%
|
|
|||
Total loans
|
$
|
76,388
|
|
|
$
|
73,743
|
|
|
$
|
2,645
|
|
4
|
%
|
|
Total assets
|
$
|
92,282
|
|
|
$
|
89,259
|
|
|
$
|
3,023
|
|
3
|
%
|
|
Deposits
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing demand
|
$
|
31,338
|
|
|
$
|
30,555
|
|
|
$
|
783
|
|
3
|
%
|
|
Interest-bearing demand
|
42,207
|
|
|
42,172
|
|
|
35
|
|
—
|
|
|
|||
Money market
|
25,786
|
|
|
30,656
|
|
|
(4,870
|
)
|
(16
|
)%
|
|
|||
Savings
|
55,659
|
|
|
46,091
|
|
|
9,568
|
|
21
|
%
|
|
|||
Certificates of deposit
|
12,619
|
|
|
11,957
|
|
|
662
|
|
6
|
%
|
|
|||
Total deposits
|
$
|
167,609
|
|
|
$
|
161,431
|
|
|
$
|
6,178
|
|
4
|
%
|
|
Performance Ratios
|
|
|
|
|
|
|
|
|||||||
Return on average assets
|
1.36
|
%
|
|
1.12
|
%
|
|
|
|
|
|||||
Noninterest income to total revenue
|
33
|
%
|
|
34
|
%
|
|
|
|
|
|||||
Efficiency
|
74
|
%
|
|
78
|
%
|
|
|
|
|
Nine months ended September 30
|
|
|
|
|
Change
|
|
||||||||
Dollars in millions, except as noted
|
2019
|
|
|
2018
|
|
|
$
|
%
|
|
|||||
Supplemental Noninterest Income Information
|
|
|
|
|
|
|
|
|||||||
Consumer services
|
$
|
881
|
|
|
$
|
837
|
|
|
$
|
44
|
|
5
|
%
|
|
Brokerage
|
$
|
267
|
|
|
$
|
260
|
|
|
$
|
7
|
|
3
|
%
|
|
Residential mortgage
|
$
|
281
|
|
|
$
|
257
|
|
|
$
|
24
|
|
9
|
%
|
|
Service charges on deposits
|
$
|
504
|
|
|
$
|
503
|
|
|
$
|
1
|
|
—
|
|
|
Residential Mortgage Information
|
|
|
|
|
|
|
|
|||||||
Residential mortgage servicing statistics (in billions, except as noted) (a)
|
|
|
|
|
|
|
|
|||||||
Serviced portfolio balance (b)
|
$
|
123
|
|
|
$
|
127
|
|
|
$
|
(4
|
)
|
(3
|
)%
|
|
Serviced portfolio acquisitions
|
$
|
9
|
|
|
$
|
10
|
|
|
$
|
(1
|
)
|
(10
|
)%
|
|
MSR asset value (b)
|
$
|
0.9
|
|
|
$
|
1.4
|
|
|
$
|
(.5
|
)
|
(36
|
)%
|
|
MSR capitalization value (in basis points) (b)
|
72
|
|
|
108
|
|
|
(36
|
)
|
(33
|
)%
|
|
|||
Servicing income: (in millions)
|
|
|
|
|
|
|
|
|||||||
Servicing fees, net (c)
|
$
|
139
|
|
|
$
|
132
|
|
|
$
|
7
|
|
5
|
%
|
|
Mortgage servicing rights valuation, net of economic hedge
|
$
|
38
|
|
|
$
|
22
|
|
|
$
|
16
|
|
73
|
%
|
|
Residential mortgage loan statistics
|
|
|
|
|
|
|
|
|||||||
Loan origination volume (in billions)
|
$
|
8.0
|
|
|
$
|
5.8
|
|
|
$
|
2.2
|
|
38
|
%
|
|
Loan sale margin percentage
|
2.41
|
%
|
|
2.39
|
%
|
|
|
|
|
|||||
Percentage of originations represented by:
|
|
|
|
|
|
|
|
|||||||
Purchase volume (d)
|
50
|
%
|
|
67
|
%
|
|
|
|
|
|||||
Refinance volume
|
50
|
%
|
|
33
|
%
|
|
|
|
|
|||||
Other Information (b)
|
|
|
|
|
|
|
|
|||||||
Customer-related statistics (average)
|
|
|
|
|
|
|
|
|||||||
Non-teller deposit transactions (e)
|
57
|
%
|
|
54
|
%
|
|
|
|
|
|||||
Digital consumer customers (f)
|
69
|
%
|
|
65
|
%
|
|
|
|
|
|||||
Credit-related statistics
|
|
|
|
|
|
|
|
|||||||
Nonperforming assets (g)
|
$
|
1,056
|
|
|
$
|
1,145
|
|
|
$
|
(89
|
)
|
(8
|
)%
|
|
Net charge-offs
|
$
|
380
|
|
|
$
|
308
|
|
|
$
|
72
|
|
23
|
%
|
|
Other statistics
|
|
|
|
|
|
|
|
|||||||
ATMs
|
9,102
|
|
|
9,093
|
|
|
9
|
|
—
|
|
|
|||
Branches (h)
|
2,310
|
|
|
2,388
|
|
|
(78
|
)
|
(3
|
)%
|
|
|||
Brokerage account client assets (in billions) (i)
|
$
|
52
|
|
|
$
|
51
|
|
|
$
|
1
|
|
2
|
%
|
|
(a)
|
Represents mortgage loan servicing balances for third parties and the related income.
|
(b)
|
Presented as of September 30, except for customer-related statistics, which are averages for the nine months ended, and net charge-offs, which are for the nine months ended.
|
(c)
|
Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan payments, prepayments, and loans that were paid down or paid off during the period.
|
(d)
|
Mortgages with borrowers as part of residential real estate purchase transactions.
|
(e)
|
Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.
|
(f)
|
Represents consumer checking relationships that process the majority of their transactions through non-teller channels.
|
(g)
|
Primarily nonperforming loans of $1.1 billion for both September 30, 2019 and September 30, 2018.
|
(h)
|
Excludes stand-alone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.
|
(i)
|
Includes cash and money market balances.
|
•
|
Average residential mortgages increased primarily as a result of growth in nonconforming residential mortgage loans.
|
•
|
Average auto loans increased primarily due to strong new indirect auto loan volumes, including in our Southeast and expansion markets, as well as growth in direct auto loans.
|
•
|
Average credit card balances increased as we continued to focus on our long-term objective of deepening penetration within our existing customer base as well as new client acquisition.
|
•
|
Average home equity loans decreased as paydowns and payoffs on loans exceeded new originated volume.
|
•
|
Average education loans decreased driven by a decline in the runoff portfolio of government guaranteed education loans.
|
•
|
Approximately 69% of consumer customers used non-teller channels for the majority of their transactions in the first nine months of 2019 compared with 65% for the same period in 2018.
|
•
|
Deposit transactions via ATM and mobile channels increased to 57% of total deposit transactions in the first nine months of 2019 from 54% for the same period in 2018.
|
(a)
|
See the additional revenue discussion regarding treasury management, capital markets-related products and services, and commercial mortgage banking activities in the Product Revenue section of this Corporate & Institutional Banking section.
|
(b)
|
Amounts are reported in net interest income and noninterest income.
|
(c)
|
Represents other noninterest income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, originations fees, gains on sale of loans held for sale and net interest income on loans held for sale.
|
(d)
|
Represents net interest income and noninterest income (primarily in corporate service fees) from loan servicing net of reduction in commercial mortgage servicing rights due to amortization expense and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.
|
(e)
|
Amounts are reported in corporate service fees.
|
(f)
|
As of September 30.
|
(g)
|
As a result of our first quarter 2019 C&IB business realignment, average loans previously reported as Equipment Finance were reclassified to other C&IB businesses for all periods presented.
|
(h)
|
Primarily nonperforming loans of $.5 billion and $.3 billion at September 30, 2019 and September 30, 2018, respectively.
|
•
|
Corporate Banking provides lending, treasury management and capital markets-related products and services to mid-sized and large corporations, and government and not-for-profit entities. Average loans for this business grew reflecting strong production in asset-backed financing as well as increased lending to large and mid-sized corporate clients.
|
•
|
PNC Real Estate provides banking, financing and servicing solutions for commercial real estate clients nationwide. Average loans for this business decreased primarily driven by project loan payoffs, partially offset by higher commercial mortgage balances.
|
•
|
PNC Business Credit provides asset-based lending. The loan portfolio is relatively high yielding, with acceptable risk as the loans are mainly secured by short-term assets. Average loans for this business increased as new originations and higher utilization were partially offset by payoffs.
|
•
|
Commercial Banking provides lending, treasury management and capital markets-related products and services to smaller corporations and businesses. Average loans for this business were relatively unchanged.
|
(Unaudited)
|
|
|
|
|
|
|
|
|||||||
Nine months ended September 30
|
|
|
|
|
Change
|
|
||||||||
Dollars in millions, except as noted
|
2019
|
|
2018
|
|
$
|
%
|
|
|||||||
Income Statement
|
|
|
|
|
|
|
|
|||||||
Net interest income
|
$
|
208
|
|
|
$
|
217
|
|
|
$
|
(9
|
)
|
(4
|
)%
|
|
Noninterest income
|
719
|
|
|
676
|
|
|
43
|
|
6
|
%
|
|
|||
Total revenue
|
927
|
|
|
893
|
|
|
34
|
|
4
|
%
|
|
|||
Provision for credit losses (benefit)
|
(2
|
)
|
|
2
|
|
|
(4
|
)
|
*
|
|
|
|||
Noninterest expense
|
707
|
|
|
681
|
|
|
26
|
|
4
|
%
|
|
|||
Pretax earnings
|
222
|
|
|
210
|
|
|
12
|
|
6
|
%
|
|
|||
Income taxes
|
51
|
|
|
50
|
|
|
1
|
|
2
|
%
|
|
|||
Earnings
|
$
|
171
|
|
|
$
|
160
|
|
|
$
|
11
|
|
7
|
%
|
|
Average Balance Sheet
|
|
|
|
|
|
|
|
|||||||
Loans
|
|
|
|
|
|
|
|
|||||||
Consumer
|
$
|
4,261
|
|
|
$
|
4,702
|
|
|
$
|
(441
|
)
|
(9
|
)%
|
|
Commercial and commercial real estate
|
747
|
|
|
734
|
|
|
13
|
|
2
|
%
|
|
|||
Residential mortgage
|
1,833
|
|
|
1,561
|
|
|
272
|
|
17
|
%
|
|
|||
Total loans
|
$
|
6,841
|
|
|
$
|
6,997
|
|
|
$
|
(156
|
)
|
(2
|
)%
|
|
Total assets
|
$
|
7,247
|
|
|
$
|
7,455
|
|
|
$
|
(208
|
)
|
(3
|
)%
|
|
Deposits
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing demand
|
$
|
1,344
|
|
|
$
|
1,455
|
|
|
$
|
(111
|
)
|
(8
|
)%
|
|
Interest-bearing demand
|
3,121
|
|
|
3,413
|
|
|
(292
|
)
|
(9
|
)%
|
|
|||
Money market
|
1,852
|
|
|
2,339
|
|
|
(487
|
)
|
(21
|
)%
|
|
|||
Savings
|
5,969
|
|
|
4,754
|
|
|
1,215
|
|
26
|
%
|
|
|||
Other
|
797
|
|
|
408
|
|
|
389
|
|
95
|
%
|
|
|||
Total deposits
|
$
|
13,083
|
|
|
$
|
12,369
|
|
|
$
|
714
|
|
6
|
%
|
|
Performance Ratios
|
|
|
|
|
|
|
|
|||||||
Return on average assets
|
3.15
|
%
|
|
2.87
|
%
|
|
|
|
|
|||||
Noninterest income to total revenue
|
78
|
%
|
|
76
|
%
|
|
|
|
|
|||||
Efficiency
|
76
|
%
|
|
76
|
%
|
|
|
|
|
|||||
Supplemental Noninterest Income Information
|
|
|
|
|
|
|
|
|||||||
Asset management fees
|
$
|
646
|
|
|
$
|
669
|
|
|
$
|
(23
|
)
|
(3
|
)%
|
|
Other Information
|
|
|
|
|
|
|
|
|||||||
Nonperforming assets (a) (b)
|
$
|
42
|
|
|
$
|
51
|
|
|
$
|
(9
|
)
|
(18
|
)%
|
|
Net charge-offs
|
$
|
1
|
|
|
$
|
8
|
|
|
$
|
(7
|
)
|
(88
|
)%
|
|
Client Assets Under Administration (in billions) (a) (c)
|
|
|
|
|
|
|
|
|||||||
Discretionary client assets under management
|
$
|
163
|
|
|
$
|
159
|
|
|
$
|
4
|
|
3
|
%
|
|
Nondiscretionary client assets under administration
|
135
|
|
|
134
|
|
|
1
|
|
1
|
%
|
|
|||
Total
|
$
|
298
|
|
|
$
|
293
|
|
|
$
|
5
|
|
2
|
%
|
|
Discretionary client assets under management
|
|
|
|
|
|
|
|
|||||||
Personal
|
$
|
98
|
|
|
$
|
97
|
|
|
$
|
1
|
|
1
|
%
|
|
Institutional
|
65
|
|
|
62
|
|
|
3
|
|
5
|
%
|
|
|||
Total
|
$
|
163
|
|
|
$
|
159
|
|
|
$
|
4
|
|
3
|
%
|
|
(a)
|
As of September 30.
|
(b)
|
Primarily nonperforming loans of $42 million at September 30, 2019 and $48 million at September 30, 2018.
|
(c)
|
Excludes brokerage account client assets.
|
(Unaudited)
|
|
|
|
||||
Nine months ended September 30
|
|
|
|
||||
Dollars in millions
|
2019
|
2018
|
|
||||
Business segment earnings (a)
|
$
|
597
|
|
$
|
608
|
|
|
PNC’s economic interest in BlackRock (b)
|
22
|
%
|
22
|
%
|
|
(a)
|
Represents our share of BlackRock’s reported GAAP earnings net of income taxes on those earnings incurred by us.
|
(b)
|
At September 30.
|
In billions
|
September 30, 2019
|
|
December 31, 2018
|
|
|
||
Carrying value of our investment in BlackRock (c)
|
$
|
8.5
|
|
$
|
8.2
|
|
|
Market value of our investment in BlackRock (d)
|
$
|
15.5
|
|
$
|
13.7
|
|
|
(c)
|
We account for our investment in BlackRock under the equity method of accounting, exclusive of a related deferred tax liability of $1.8 billion and $1.7 billion at September 30, 2019 and December 31, 2018, respectively. Our voting interest in BlackRock common stock was approximately 22% at September 30, 2019.
|
(d)
|
Does not include liquidity discount.
|
|
September 30, 2019
|
|
|
December 31, 2018
|
|
||||||||||
Dollars in millions
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||
Manufacturing
|
$
|
21,846
|
|
|
18
|
%
|
|
|
$
|
21,207
|
|
|
18
|
%
|
|
Retail/wholesale trade
|
21,761
|
|
|
18
|
|
|
|
20,850
|
|
|
18
|
|
|
||
Service providers
|
16,189
|
|
|
13
|
|
|
|
14,869
|
|
|
13
|
|
|
||
Real estate related (a)
|
12,294
|
|
|
10
|
|
|
|
12,312
|
|
|
11
|
|
|
||
Financial services
|
10,437
|
|
|
8
|
|
|
|
9,500
|
|
|
8
|
|
|
||
Health care
|
8,137
|
|
|
7
|
|
|
|
8,886
|
|
|
8
|
|
|
||
Transportation and warehousing
|
7,216
|
|
|
6
|
|
|
|
5,781
|
|
|
5
|
|
|
||
Other industries
|
26,134
|
|
|
20
|
|
|
|
23,429
|
|
|
19
|
|
|
||
Total commercial loans
|
$
|
124,014
|
|
|
100
|
%
|
|
|
$
|
116,834
|
|
|
100
|
%
|
|
|
September 30, 2019
|
|
|
December 31, 2018
|
|
||||||||||
Dollars in millions
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
||||||
Geography
|
|
|
|
|
|
|
|
|
|
||||||
California
|
$
|
4,383
|
|
|
15
|
%
|
|
|
$
|
4,154
|
|
|
15
|
%
|
|
Florida
|
2,425
|
|
|
8
|
|
|
|
2,157
|
|
|
8
|
|
|
||
Maryland
|
1,832
|
|
|
6
|
|
|
|
1,966
|
|
|
7
|
|
|
||
Virginia
|
1,533
|
|
|
5
|
|
|
|
1,682
|
|
|
6
|
|
|
||
Texas
|
1,866
|
|
|
6
|
|
|
|
1,531
|
|
|
5
|
|
|
||
Illinois
|
1,117
|
|
|
4
|
|
|
|
1,368
|
|
|
5
|
|
|
||
Pennsylvania
|
1,235
|
|
|
4
|
|
|
|
1,214
|
|
|
4
|
|
|
||
New York
|
884
|
|
|
3
|
|
|
|
1,151
|
|
|
4
|
|
|
||
Ohio
|
1,151
|
|
|
4
|
|
|
|
1,053
|
|
|
4
|
|
|
||
North Carolina
|
1,035
|
|
|
4
|
|
|
|
915
|
|
|
3
|
|
|
||
All other states
|
11,423
|
|
|
41
|
|
|
|
10,949
|
|
|
39
|
|
|
||
Total commercial real estate loans
|
$
|
28,884
|
|
|
100
|
%
|
|
|
$
|
28,140
|
|
|
100
|
%
|
|
Property Type
|
|
|
|
|
|
|
|
|
|
||||||
Multifamily
|
$
|
9,099
|
|
|
32
|
%
|
|
|
$
|
8,770
|
|
|
31
|
%
|
|
Office
|
7,620
|
|
|
26
|
|
|
|
7,279
|
|
|
26
|
|
|
||
Retail
|
3,811
|
|
|
13
|
|
|
|
4,065
|
|
|
14
|
|
|
||
Hotel/Motel
|
1,801
|
|
|
6
|
|
|
|
1,686
|
|
|
6
|
|
|
||
Industrial/Warehouse
|
1,759
|
|
|
6
|
|
|
|
1,678
|
|
|
6
|
|
|
||
Senior Housing
|
1,195
|
|
|
4
|
|
|
|
1,092
|
|
|
4
|
|
|
||
Mixed Use
|
1,051
|
|
|
4
|
|
|
|
933
|
|
|
3
|
|
|
||
Other
|
2,548
|
|
|
9
|
|
|
|
2,637
|
|
|
10
|
|
|
||
Total commercial real estate loans
|
$
|
28,884
|
|
|
100
|
%
|
|
|
$
|
28,140
|
|
|
100
|
%
|
|
|
September 30, 2019
|
|
|
December 31, 2018
|
|
||||||||||
Dollars in millions
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
||||||
Geography
|
|
|
|
|
|
|
|
|
|
||||||
Pennsylvania
|
$
|
5,835
|
|
|
23
|
%
|
|
|
$
|
6,160
|
|
|
24
|
%
|
|
New Jersey
|
3,741
|
|
|
15
|
|
|
|
3,935
|
|
|
15
|
|
|
||
Ohio
|
2,913
|
|
|
12
|
|
|
|
3,095
|
|
|
12
|
|
|
||
Illinois
|
1,535
|
|
|
6
|
|
|
|
1,634
|
|
|
6
|
|
|
||
Maryland
|
1,419
|
|
|
6
|
|
|
|
1,481
|
|
|
6
|
|
|
||
Michigan
|
1,325
|
|
|
5
|
|
|
|
1,340
|
|
|
5
|
|
|
||
Florida
|
1,248
|
|
|
5
|
|
|
|
1,227
|
|
|
5
|
|
|
||
North Carolina
|
1,098
|
|
|
4
|
|
|
|
1,161
|
|
|
4
|
|
|
||
Kentucky
|
987
|
|
|
4
|
|
|
|
1,040
|
|
|
4
|
|
|
||
Indiana
|
813
|
|
|
3
|
|
|
|
845
|
|
|
3
|
|
|
||
All other states
|
4,057
|
|
|
17
|
|
|
|
4,205
|
|
|
16
|
|
|
||
Total home equity loans
|
$
|
24,971
|
|
|
100
|
%
|
|
|
$
|
26,123
|
|
|
100
|
%
|
|
Lien type
|
|
|
|
|
|
|
|
|
|
||||||
1st lien
|
|
|
58
|
%
|
|
|
|
|
58
|
%
|
|
||||
2nd lien
|
|
|
42
|
|
|
|
|
|
42
|
|
|
||||
Total
|
|
|
100
|
%
|
|
|
|
|
100
|
%
|
|
|
September 30, 2019
|
|
|
December 31, 2018
|
|
||||||||||
Dollars in millions
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
||||||
Geography
|
|
|
|
|
|
|
|
|
|
||||||
California
|
$
|
6,249
|
|
|
30
|
%
|
|
|
$
|
4,666
|
|
|
25
|
%
|
|
New Jersey
|
1,747
|
|
|
8
|
|
|
|
1,649
|
|
|
9
|
|
|
||
Florida
|
1,574
|
|
|
8
|
|
|
|
1,544
|
|
|
8
|
|
|
||
Illinois
|
1,122
|
|
|
5
|
|
|
|
1,161
|
|
|
6
|
|
|
||
Pennsylvania
|
1,093
|
|
|
5
|
|
|
|
1,031
|
|
|
6
|
|
|
||
New York
|
992
|
|
|
5
|
|
|
|
956
|
|
|
5
|
|
|
||
Maryland
|
927
|
|
|
4
|
|
|
|
913
|
|
|
5
|
|
|
||
North Carolina
|
873
|
|
|
4
|
|
|
|
854
|
|
|
5
|
|
|
||
Virginia
|
858
|
|
|
4
|
|
|
|
825
|
|
|
4
|
|
|
||
Ohio
|
696
|
|
|
3
|
|
|
|
682
|
|
|
4
|
|
|
||
All other states
|
4,951
|
|
|
24
|
|
|
|
4,376
|
|
|
23
|
|
|
||
Total residential real estate loans
|
$
|
21,082
|
|
|
100
|
%
|
|
|
$
|
18,657
|
|
|
100
|
%
|
|
|
September 30, 2019
|
|
December 31, 2018
|
|
|
Change
|
|||||||
Dollars in millions
|
$
|
|
%
|
||||||||||
Nonperforming loans
|
|
|
|
|
|
|
|||||||
Commercial lending
|
$
|
576
|
|
$
|
432
|
|
|
$
|
144
|
|
|
33
|
%
|
Consumer lending (a)
|
1,152
|
|
1,262
|
|
|
(110
|
)
|
|
(9
|
)%
|
|||
Total nonperforming loans
|
1,728
|
|
1,694
|
|
|
34
|
|
|
2
|
%
|
|||
OREO and foreclosed assets
|
119
|
|
114
|
|
|
5
|
|
|
4
|
%
|
|||
Total nonperforming assets
|
$
|
1,847
|
|
$
|
1,808
|
|
|
$
|
39
|
|
|
2
|
%
|
TDRs included in nonperforming loans
|
$
|
911
|
|
$
|
863
|
|
|
$
|
48
|
|
|
6
|
%
|
Percentage of total nonperforming loans
|
53
|
%
|
51
|
%
|
|
|
|
|
|||||
Nonperforming loans to total loans
|
.73
|
%
|
.75
|
%
|
|
|
|
|
|||||
Nonperforming assets to total loans, OREO and foreclosed assets
|
.78
|
%
|
.80
|
%
|
|
|
|
|
|||||
Nonperforming assets to total assets
|
.45
|
%
|
.47
|
%
|
|
|
|
|
|||||
Allowance for loan and lease losses to total nonperforming loans
|
158
|
%
|
155
|
%
|
|
|
|
|
(a)
|
Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
|
In millions
|
|
2019
|
|
|
2018
|
|
|
||
January 1
|
|
$
|
1,808
|
|
|
$
|
2,035
|
|
|
New nonperforming assets
|
|
985
|
|
|
785
|
|
|
||
Charge-offs and valuation adjustments
|
|
(446
|
)
|
|
(408
|
)
|
|
||
Principal activity, including paydowns and payoffs
|
|
(315
|
)
|
|
(379
|
)
|
|
||
Asset sales and transfers to loans held for sale
|
|
(74
|
)
|
|
(101
|
)
|
|
||
Returned to performing status
|
|
(111
|
)
|
|
(107
|
)
|
|
||
September 30
|
|
$
|
1,847
|
|
|
$
|
1,825
|
|
|
|
|
Amount
|
|
|
|
Percentage of Total Loans Outstanding
|
|
|||||||||||||||
|
|
September 30
2019 |
|
|
December 31
2018 |
|
|
Change
|
|
September 30
2019 |
|
|
December 31
2018 |
|
|
|||||||
Dollars in millions
|
|
$
|
|
%
|
|
|
||||||||||||||||
Early stage loan delinquencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Accruing loans past due 30 to 59 days
|
|
$
|
547
|
|
|
$
|
585
|
|
|
$
|
(38
|
)
|
|
(6
|
)%
|
|
.23
|
%
|
|
.26
|
%
|
|
Accruing loans past due 60 to 89 days
|
|
269
|
|
|
271
|
|
|
(2
|
)
|
|
(1
|
)%
|
|
.11
|
%
|
|
.12
|
%
|
|
|||
Total
|
|
816
|
|
|
856
|
|
|
(40
|
)
|
|
(5
|
)%
|
|
.34
|
%
|
|
.38
|
%
|
|
|||
Late stage loan delinquencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Accruing loans past due 90 days or more
|
|
532
|
|
|
629
|
|
|
(97
|
)
|
|
(15
|
)%
|
|
.22
|
%
|
|
.28
|
%
|
|
|||
Total
|
|
$
|
1,348
|
|
|
$
|
1,485
|
|
|
$
|
(137
|
)
|
|
(9
|
)%
|
|
.57
|
%
|
|
.66
|
%
|
|
(a)
|
Past due loan amounts include government insured or guaranteed loans of $.6 billion at September 30, 2019 and $.7 billion at December 31, 2018.
|
|
|
September 30
2019 |
|
|
December 31
2018 |
|
|
Change
|
|
|||||||
Dollars in millions
|
|
$
|
|
%
|
|
|||||||||||
Total commercial lending
|
|
$
|
420
|
|
|
$
|
409
|
|
|
$
|
11
|
|
|
3
|
%
|
|
Total consumer lending
|
|
1,343
|
|
|
1,442
|
|
|
(99
|
)
|
|
(7
|
)%
|
|
|||
Total TDRs
|
|
$
|
1,763
|
|
|
$
|
1,851
|
|
|
$
|
(88
|
)
|
|
(5
|
)%
|
|
Nonperforming
|
|
$
|
911
|
|
|
$
|
863
|
|
|
$
|
48
|
|
|
6
|
%
|
|
Accruing (b)
|
|
852
|
|
|
988
|
|
|
(136
|
)
|
|
(14
|
)%
|
|
|||
Total TDRs
|
|
$
|
1,763
|
|
|
$
|
1,851
|
|
|
$
|
(88
|
)
|
|
(5
|
)%
|
|
(a)
|
Amounts in table represent recorded investment, which includes the unpaid principal balance plus net accounting adjustments, less any charge-offs. Recorded investment does not include any associated valuation allowance.
|
(b)
|
Accruing loans include consumer credit card loans and loans that have demonstrated a period of at least six months of performance under the restructured terms and are excluded from nonperforming loans.
|
•
|
Industry concentrations and conditions,
|
•
|
Changes in market conditions,
|
•
|
Recent credit quality trends,
|
•
|
Recent loss experience in particular portfolios, including specific and unique events,
|
•
|
Recent macro-economic factors,
|
•
|
Model imprecision,
|
•
|
Changes in lending policies and procedures,
|
•
|
Timing of available information, including the performance of first lien positions, and
|
•
|
Limitations of available historical data.
|
Dollars in millions
|
|
2019
|
|
2018
|
|
||||
January 1
|
|
$
|
2,629
|
|
|
$
|
2,611
|
|
|
Total net charge-offs
|
|
(433
|
)
|
|
(313
|
)
|
|
||
Provision for credit losses
|
|
552
|
|
|
260
|
|
|
||
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit
|
|
(19
|
)
|
|
9
|
|
|
||
Other
|
|
9
|
|
|
17
|
|
|
||
September 30
|
|
$
|
2,738
|
|
|
$
|
2,584
|
|
|
Net charge-offs to average loans (for the nine months ended) (annualized)
|
|
.25
|
%
|
|
.19
|
%
|
|
||
Ratio of ALLL to total loans
|
|
1.15
|
%
|
|
1.16
|
%
|
|
||
Commercial lending net charge-offs
|
|
$
|
(79
|
)
|
|
$
|
(18
|
)
|
|
Consumer lending net charge-offs
|
|
(354
|
)
|
|
(295
|
)
|
|
||
Total net charge-offs
|
|
$
|
(433
|
)
|
|
$
|
(313
|
)
|
|
Net charge-offs to average loans (for the nine months ended) (annualized)
|
|
|
|
|
|
||||
Commercial lending
|
|
.07
|
%
|
|
.02
|
%
|
|
||
Consumer lending
|
|
.63
|
%
|
|
.54
|
%
|
|
Nine months ended September 30
|
|
Gross
Charge-offs
|
|
|
Recoveries
|
|
|
Net Charge-offs /
(Recoveries)
|
|
|
Percent of Average
Loans (Annualized)
|
|
|
|||
Dollars in millions
|
||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
|
$
|
116
|
|
|
$
|
45
|
|
|
$
|
71
|
|
|
.08
|
%
|
|
Commercial real estate
|
|
16
|
|
|
8
|
|
|
8
|
|
|
.04
|
%
|
|
|||
Equipment lease financing
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
%
|
|
|||
Home equity
|
|
52
|
|
|
56
|
|
|
(4
|
)
|
|
(.02
|
)%
|
|
|||
Residential real estate
|
|
5
|
|
|
11
|
|
|
(6
|
)
|
|
(.04
|
)%
|
|
|||
Automobile
|
|
183
|
|
|
85
|
|
|
98
|
|
|
.86
|
%
|
|
|||
Credit card
|
|
193
|
|
|
21
|
|
|
172
|
|
|
3.58
|
%
|
|
|||
Education
|
|
20
|
|
|
6
|
|
|
14
|
|
|
.51
|
%
|
|
|||
Other consumer
|
|
92
|
|
|
12
|
|
|
80
|
|
|
2.29
|
%
|
|
|||
Total
|
|
$
|
683
|
|
|
$
|
250
|
|
|
$
|
433
|
|
|
.25
|
%
|
|
2018
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
|
$
|
78
|
|
|
$
|
50
|
|
|
$
|
28
|
|
|
.03
|
%
|
|
Commercial real estate
|
|
8
|
|
|
18
|
|
|
(10
|
)
|
|
(.05
|
)%
|
|
|||
Equipment lease financing
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
%
|
|
|||
Home equity
|
|
85
|
|
|
67
|
|
|
18
|
|
|
.09
|
%
|
|
|||
Residential real estate
|
|
9
|
|
|
18
|
|
|
(9
|
)
|
|
(.07
|
)%
|
|
|||
Automobile
|
|
117
|
|
|
56
|
|
|
61
|
|
|
.60
|
%
|
|
|||
Credit card
|
|
161
|
|
|
18
|
|
|
143
|
|
|
3.32
|
%
|
|
|||
Education
|
|
24
|
|
|
6
|
|
|
18
|
|
|
.57
|
%
|
|
|||
Other consumer
|
|
76
|
|
|
12
|
|
|
64
|
|
|
1.94
|
%
|
|
|||
Total
|
|
$
|
564
|
|
|
$
|
251
|
|
|
$
|
313
|
|
|
.19
|
%
|
|
In billions
|
2019
|
|
|
|
January 1
|
$
|
30.9
|
|
|
Issuances
|
6.9
|
|
|
|
Calls and maturities
|
(6.3
|
)
|
|
|
Other
|
1.1
|
|
|
|
September 30
|
$
|
32.6
|
|
|
Issuance Date
|
Amount
|
Description of Issuance
|
July 23, 2019
|
$900 million
|
Senior floating rate notes with a maturity date of July 22, 2022. Redeemable in whole, but not in part, on July 22, 2021, and in whole or in part on or after June 22, 2022. Interest is payable quarterly, at the 3-month LIBOR rate, reset quarterly, plus 45 basis points, on January 22, April 22, July 22 and October 22 of each year, beginning October 22, 2019.
|
July 23, 2019
|
$600 million
|
Senior fixed-to-floating rate notes with a maturity date of July 22, 2022. Redeemable in whole, but not in part, on July 22, 2021, and in whole or in part on or after June 22, 2022. Interest is initially payable semi-annually at a fixed rate of 2.232% on July 22 and January 22 of each year, beginning January 22, 2020, and ending on July 22, 2021. Beginning on July 22, 2021, interest is payable quarterly, at the 3-month LIBOR rate, reset quarterly, plus 44 basis points, on January 22, April 22, July 22, and October 22, beginning on October 22, 2021.
|
•
|
Bank-level capital needs,
|
•
|
Laws and regulations,
|
•
|
Corporate policies,
|
•
|
Contractual restrictions, and
|
•
|
Other factors.
|
Dollars in millions
|
Basel III
September 30, 2019
|
|
||
Common equity Tier 1 capital
|
|
|
||
Common stock plus related surplus, net of treasury stock
|
$
|
3,179
|
|
|
Retained earnings
|
41,413
|
|
|
|
Accumulated other comprehensive income (loss) for securities currently, and those transferred from, available for sale
|
1,119
|
|
|
|
Accumulated other comprehensive income (loss) for pension and other postretirement plans
|
(481
|
)
|
|
|
Goodwill, net of associated deferred tax liabilities
|
(9,030
|
)
|
|
|
Other disallowed intangibles, net of deferred tax liabilities
|
(238
|
)
|
|
|
Other adjustments/(deductions)
|
(209
|
)
|
|
|
Total common equity Tier 1 capital before threshold deductions
|
35,753
|
|
|
|
Total threshold deductions
|
(2,952
|
)
|
|
|
Common equity Tier 1 capital
|
$
|
32,801
|
|
|
Additional Tier 1 capital
|
|
|
||
Preferred stock plus related surplus
|
3,992
|
|
|
|
Other adjustments/(deductions)
|
(162
|
)
|
|
|
Tier 1 capital
|
$
|
36,631
|
|
|
Additional Tier 2 capital
|
|
|
||
Qualifying subordinated debt
|
3,481
|
|
|
|
Trust preferred capital securities
|
60
|
|
|
|
Eligible credit reserves includable in Tier 2 capital
|
3,042
|
|
|
|
Total Basel III capital
|
$
|
43,214
|
|
|
Risk-weighted assets
|
|
|
||
Basel III standardized approach risk-weighted assets (a)
|
$
|
340,912
|
|
|
Basel III advanced approaches risk-weighted assets (b)
|
$
|
319,960
|
|
|
Average quarterly adjusted total assets
|
$
|
393,009
|
|
|
Supplementary leverage exposure (c)
|
$
|
471,906
|
|
|
Basel III risk-based capital and leverage ratios (d)
|
|
|
||
Common equity Tier 1
|
9.6
|
%
|
|
|
Tier 1
|
10.7
|
%
|
|
|
Total (e)
|
12.7
|
%
|
|
|
Leverage (f)
|
9.3
|
%
|
|
|
Supplementary leverage ratio (g)
|
7.8
|
%
|
|
(a)
|
Includes credit and market risk-weighted assets.
|
(b)
|
Basel III advanced approaches risk-weighted assets are calculated based on the Basel III advanced approaches rules, and include credit, market, and operational risk-weighted assets. During the parallel run qualification phase, PNC has refined the data, models, and internal processes used as part of the advanced approaches for determining risk-weighted assets.
|
(c)
|
Supplementary leverage exposure is the sum of Average quarterly adjusted total assets and certain off-balance sheet exposures including undrawn credit commitments and derivative potential future exposures.
|
(d)
|
For comparative purposes only, the advanced approaches Basel III Common equity Tier 1, Tier 1 risk-based and Total risk-based ratios for September 30, 2019 were 10.3%, 11.4% and 12.5%, respectively.
|
(e)
|
The 2019 Basel III Total risk-based capital ratio includes nonqualifying trust preferred capital securities of $60 million that are subject to a phase-out period that runs through 2021. For comparative purposes only, as of September 30, 2019 the ratio was 12.7%, assuming nonqualifying trust preferred capital securities are phased out.
|
(f)
|
Leverage ratio is calculated based on Tier 1 capital divided by Average quarterly adjusted total assets.
|
(g)
|
Supplementary leverage ratio is calculated based on Tier 1 capital divided by Supplementary leverage exposure.
|
|
Third Quarter 2019
|
|
|
Third Quarter 2018
|
|
|
Net Interest Income Sensitivity Simulation (a)
|
|
|
|
|
||
Effect on net interest income in first year from gradual interest rate change over the
following 12 months of:
|
|
|
|
|
||
100 basis point increase
|
1.9
|
%
|
|
1.8
|
%
|
|
100 basis point decrease
|
(2.6
|
)%
|
|
(2.3
|
)%
|
|
Effect on net interest income in second year from gradual interest rate change over the
preceding 12 months of:
|
|
|
|
|
||
100 basis point increase
|
4.6
|
%
|
|
3.6
|
%
|
|
100 basis point decrease
|
(7.3
|
)%
|
|
(5.9
|
)%
|
|
Duration of Equity Model (a)
|
|
|
|
|
||
Base case duration of equity (in years)
|
(6.5
|
)
|
|
.2
|
|
|
Key Period-End Interest Rates
|
|
|
|
|
||
One-month LIBOR
|
2.02
|
%
|
|
2.26
|
%
|
|
Three-month LIBOR
|
2.09
|
%
|
|
2.40
|
%
|
|
Three-year swap
|
1.55
|
%
|
|
3.05
|
%
|
|
(a)
|
Given the inherent limitations in certain of these measurement tools and techniques, results become less meaningful as interest rates approach zero.
|
|
September 30, 2019
|
|
|||||
|
PNC
Economist
|
|
Market
Forward
|
|
Slope
Flattening
|
|
|
First year sensitivity
|
.2
|
%
|
.7
|
%
|
(1.2
|
)%
|
|
Second year sensitivity
|
1.3
|
%
|
.5
|
%
|
(4.7
|
)%
|
|
|
September 30
2019 |
|
|
December 31
2018 |
|
|
Change
|
|
|||||||
Dollars in millions
|
|
$
|
|
|
%
|
|
|
||||||||
BlackRock
|
$
|
8,321
|
|
|
$
|
8,016
|
|
|
$
|
305
|
|
|
4
|
%
|
|
Tax credit investments
|
2,252
|
|
|
2,219
|
|
|
33
|
|
|
1
|
%
|
|
|||
Private equity and other
|
2,752
|
|
|
2,659
|
|
|
93
|
|
|
3
|
%
|
|
|||
Total
|
$
|
13,325
|
|
|
$
|
12,894
|
|
|
$
|
431
|
|
|
3
|
%
|
|
•
|
PNC and PNC Bank will no longer be required to use the model-based advanced approaches to calculate risk-weighted assets for capital purposes;
|
•
|
PNC will no longer have to conduct a mid-cycle company-run stress test using balance sheet data as of June 30 and publicly disclose the results of such test; and
|
•
|
PNC and PNC Bank will have to conduct a company-run stress test under the Dodd-Frank Act stress testing regulations of the Federal Reserve and OCC (a “DFAST stress test”) biennially (rather than annually) using two scenarios (a baseline and severely adverse scenario), and publicly disclose the results of such tests.
|
•
|
Fair Value Measurements
|
•
|
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit
|
•
|
Residential and Commercial Mortgage Servicing Rights
|
Codification Improvements - ASU 2019-04
Topic 3: Codification Improvements to ASU 2017-12 and Other Hedging Items
Issued April 2019
|
• Required effective date of January 1, 2020 with early adoption permitted if ASU 2017-12 was previously adopted.
• Targeted improvements related to:
- Partial-term fair value hedges of interest rate risk
- Amortization of fair value hedge basis adjustments
- Disclosure of fair value hedge basis adjustments
- Consideration of the hedged contractually specified interest rate under the hypothetical derivative method
- Application of a first-payments-received cash flow hedging technique to overall cash flows on a group of variable interest payments
- Update to transition guidance for ASU 2017-12
|
• We are currently assessing the potential impact to PNC upon adoption of these codification improvements.
|
•
|
Our businesses, financial results and balance sheet values are affected by business and economic conditions, including the following:
|
–
|
Changes in interest rates and valuations in debt, equity and other financial markets.
|
–
|
Disruptions in the U.S. and global financial markets.
|
–
|
Actions by the Federal Reserve Board, U.S. Treasury and other government agencies, including those that impact money supply and market interest rates.
|
–
|
Changes in customer behavior due to changing business and economic conditions or legislative or regulatory initiatives.
|
–
|
Changes in customers’, suppliers’ and other counterparties’ performance and creditworthiness.
|
–
|
Impacts of tariffs and other trade policies of the U.S. and its global trading partners.
|
–
|
Slowing or reversal of the current U.S. economic expansion.
|
–
|
Commodity price volatility.
|
•
|
Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential legal and regulatory contingencies. These statements are based on our views that:
|
–
|
U.S. economic growth, after accelerating a few years ago, has slowed since mid-2018 and is expected to slow further through the rest of this year and into 2020.
|
–
|
Job growth will continue into 2020, but at a slower pace due to both difficulty in finding workers and slower economic growth. The unemployment rate is expected to increase slightly in the near term, but the labor market will remain tight, pushing wages higher and supporting continued gains in consumer spending.
|
–
|
Slower global economic growth, trade restrictions and geopolitical concerns are downside risks to the forecast, which have increased in 2019, and risks are weighted to the downside.
|
–
|
Inflation has slowed in 2019, to below the FOMC’s 2% objective, but is expected to gradually increase over the next two years.
|
–
|
Our baseline forecast includes the 0.25% federal funds rate cut on October 30, 2019. We expect the funds rate to remain in a range of 1.50% to 1.75% through the rest of 2019.
|
•
|
Our ability to take certain capital actions, including returning capital to shareholders, is subject to review by the Federal Reserve Board as part of our comprehensive capital plan for the applicable period in connection with the Federal Reserve Board’s CCAR process and to the acceptance of such capital plan and non-objection to such capital actions by the Federal Reserve Board.
|
•
|
Our regulatory capital ratios in the future will depend on, among other things, the company’s financial performance, the scope and terms of final capital regulations then in effect and management actions affecting the composition of our balance sheet. In addition, our ability to determine, evaluate and forecast regulatory capital ratios, and to take actions (such as capital distributions) based on actual or forecasted capital ratios, will be dependent at least in part on the development, validation and regulatory review of related models.
|
•
|
Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities. Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and ability to attract and retain management. These developments could include:
|
–
|
Changes to laws and regulations, including changes affecting oversight of the financial services industry, consumer protection, bank capital and liquidity standards, pension, bankruptcy and other industry aspects, and changes in accounting policies and principles.
|
–
|
Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries. These matters may result in monetary judgments or settlements or other remedies, including fines, penalties,
|
–
|
Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies.
|
–
|
Impact on business and operating results of any costs associated with obtaining rights in intellectual property claimed by others and of adequacy of our intellectual property protection in general.
|
•
|
Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards.
|
•
|
Business and operating results also include impacts relating to our equity interest in BlackRock, Inc. and rely to a significant extent on information provided to us by BlackRock. Risks and uncertainties that could affect BlackRock are discussed in more detail by BlackRock in its SEC filings.
|
•
|
We grow our business in part through acquisitions and new strategic initiatives. Risks and uncertainties include those presented by the nature of the business acquired and strategic initiative, including in some cases those associated with our entry into new businesses or new geographic or other markets and risks resulting from our inexperience in those new areas, as well as risks and uncertainties related to the acquisition transactions themselves, regulatory issues, and the integration of the acquired businesses into PNC after closing.
|
•
|
Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues. Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands.
|
•
|
Business and operating results can also be affected by widespread natural and other disasters, pandemics, dislocations, terrorist activities, system failures, security breaches, cyberattacks or international hostilities through impacts on the economy and financial markets generally or on us or our counterparties specifically.
|
Unaudited
|
Three months ended
September 30 |
|
Nine months ended
September 30 |
||||||||||||
In millions, except per share data
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Interest Income
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
2,678
|
|
|
$
|
2,452
|
|
|
$
|
7,952
|
|
|
$
|
7,025
|
|
Investment securities
|
617
|
|
|
584
|
|
|
1,866
|
|
|
1,653
|
|
||||
Other
|
208
|
|
|
187
|
|
|
610
|
|
|
545
|
|
||||
Total interest income
|
3,503
|
|
|
3,223
|
|
|
10,428
|
|
|
9,223
|
|
||||
Interest Expense
|
|
|
|
|
|
|
|
||||||||
Deposits
|
531
|
|
|
336
|
|
|
1,518
|
|
|
810
|
|
||||
Borrowed funds
|
468
|
|
|
421
|
|
|
1,433
|
|
|
1,173
|
|
||||
Total interest expense
|
999
|
|
|
757
|
|
|
2,951
|
|
|
1,983
|
|
||||
Net interest income
|
2,504
|
|
|
2,466
|
|
|
7,477
|
|
|
7,240
|
|
||||
Noninterest Income
|
|
|
|
|
|
|
|
||||||||
Asset management
|
464
|
|
|
486
|
|
|
1,346
|
|
|
1,397
|
|
||||
Consumer services
|
402
|
|
|
377
|
|
|
1,165
|
|
|
1,115
|
|
||||
Corporate services
|
469
|
|
|
465
|
|
|
1,415
|
|
|
1,381
|
|
||||
Residential mortgage
|
134
|
|
|
76
|
|
|
281
|
|
|
257
|
|
||||
Service charges on deposits
|
178
|
|
|
186
|
|
|
517
|
|
|
522
|
|
||||
Other
|
342
|
|
|
301
|
|
|
1,017
|
|
|
880
|
|
||||
Total noninterest income
|
1,989
|
|
|
1,891
|
|
|
5,741
|
|
|
5,552
|
|
||||
Total revenue
|
4,493
|
|
|
4,357
|
|
|
13,218
|
|
|
12,792
|
|
||||
Provision For Credit Losses
|
183
|
|
|
88
|
|
|
552
|
|
|
260
|
|
||||
Noninterest Expense
|
|
|
|
|
|
|
|
||||||||
Personnel
|
1,400
|
|
|
1,413
|
|
|
4,179
|
|
|
4,123
|
|
||||
Occupancy
|
206
|
|
|
195
|
|
|
633
|
|
|
616
|
|
||||
Equipment
|
291
|
|
|
264
|
|
|
862
|
|
|
818
|
|
||||
Marketing
|
76
|
|
|
71
|
|
|
224
|
|
|
201
|
|
||||
Other
|
650
|
|
|
665
|
|
|
1,914
|
|
|
1,961
|
|
||||
Total noninterest expense
|
2,623
|
|
|
2,608
|
|
|
7,812
|
|
|
7,719
|
|
||||
Income before income taxes and noncontrolling interests
|
1,687
|
|
|
1,661
|
|
|
4,854
|
|
|
4,813
|
|
||||
Income taxes
|
295
|
|
|
261
|
|
|
817
|
|
|
818
|
|
||||
Net income
|
1,392
|
|
|
1,400
|
|
|
4,037
|
|
|
3,995
|
|
||||
Less: Net income attributable to noncontrolling interests
|
13
|
|
|
11
|
|
|
35
|
|
|
31
|
|
||||
Preferred stock dividends
|
63
|
|
|
63
|
|
|
181
|
|
|
181
|
|
||||
Preferred stock discount accretion and redemptions
|
1
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Net income attributable to common shareholders
|
$
|
1,315
|
|
|
$
|
1,325
|
|
|
$
|
3,818
|
|
|
$
|
3,780
|
|
Earnings Per Common Share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
2.95
|
|
|
$
|
2.84
|
|
|
$
|
8.45
|
|
|
$
|
8.03
|
|
Diluted
|
$
|
2.94
|
|
|
$
|
2.82
|
|
|
$
|
8.42
|
|
|
$
|
7.96
|
|
Average Common Shares Outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
444
|
|
|
465
|
|
|
450
|
|
|
469
|
|
||||
Diluted
|
445
|
|
|
467
|
|
|
451
|
|
|
472
|
|
Unaudited
In millions
|
|
Three months ended
September 30 |
|
Nine months ended
September 30 |
|
||||||||||||
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
||||||
Net income
|
|
$
|
1,392
|
|
|
$
|
1,400
|
|
|
$
|
4,037
|
|
|
$
|
3,995
|
|
|
Other comprehensive income (loss), before tax and net of reclassifications into Net income:
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains (losses) on non-OTTI securities
|
|
196
|
|
|
(324
|
)
|
|
1,529
|
|
|
(1,125
|
)
|
|
||||
Net unrealized gains (losses) on OTTI securities
|
|
18
|
|
|
(1
|
)
|
|
27
|
|
|
16
|
|
|
||||
Net unrealized gains (losses) on cash flow hedge derivatives
|
|
79
|
|
|
(71
|
)
|
|
433
|
|
|
(377
|
)
|
|
||||
Pension and other postretirement benefit plan adjustments
|
|
2
|
|
|
1
|
|
|
63
|
|
|
70
|
|
|
||||
Other
|
|
(19
|
)
|
|
(17
|
)
|
|
(15
|
)
|
|
(25
|
)
|
|
||||
Other comprehensive income (loss), before tax and net of reclassifications into Net income
|
|
276
|
|
|
(412
|
)
|
|
2,037
|
|
|
(1,441
|
)
|
|
||||
Income tax benefit (expense) related to items of other comprehensive income
|
|
(70
|
)
|
|
92
|
|
|
(475
|
)
|
|
323
|
|
|
||||
Other comprehensive income (loss), after tax and net of reclassifications into Net income
|
|
206
|
|
|
(320
|
)
|
|
1,562
|
|
|
(1,118
|
)
|
|
||||
Comprehensive income
|
|
1,598
|
|
|
1,080
|
|
|
5,599
|
|
|
2,877
|
|
|
||||
Less: Comprehensive income attributable to noncontrolling interests
|
|
13
|
|
|
11
|
|
|
35
|
|
|
31
|
|
|
||||
Comprehensive income attributable to PNC
|
|
$
|
1,585
|
|
|
$
|
1,069
|
|
|
$
|
5,564
|
|
|
$
|
2,846
|
|
|
Unaudited
|
September 30
2019 |
|
|
December 31
2018 |
|
||
In millions, except par value
|
|||||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
5,671
|
|
|
$
|
5,608
|
|
Interest-earning deposits with banks
|
19,036
|
|
|
10,893
|
|
||
Loans held for sale (a)
|
1,872
|
|
|
994
|
|
||
Investment securities – available for sale
|
69,057
|
|
|
63,389
|
|
||
Investment securities – held to maturity
|
18,826
|
|
|
19,312
|
|
||
Loans (a)
|
237,377
|
|
|
226,245
|
|
||
Allowance for loan and lease losses
|
(2,738
|
)
|
|
(2,629
|
)
|
||
Net loans
|
234,639
|
|
|
223,616
|
|
||
Equity investments (b)
|
13,325
|
|
|
12,894
|
|
||
Mortgage servicing rights
|
1,483
|
|
|
1,983
|
|
||
Goodwill
|
9,233
|
|
|
9,218
|
|
||
Other (a)
|
35,774
|
|
|
34,408
|
|
||
Total assets
|
$
|
408,916
|
|
|
$
|
382,315
|
|
Liabilities
|
|
|
|
||||
Deposits
|
|
|
|
||||
Noninterest-bearing
|
$
|
74,077
|
|
|
$
|
73,960
|
|
Interest-bearing
|
211,506
|
|
|
193,879
|
|
||
Total deposits
|
285,583
|
|
|
267,839
|
|
||
Borrowed funds
|
|
|
|
||||
Federal Home Loan Bank borrowings
|
21,901
|
|
|
21,501
|
|
||
Bank notes and senior debt
|
27,148
|
|
|
25,018
|
|
||
Subordinated debt
|
5,473
|
|
|
5,895
|
|
||
Other (c)
|
6,832
|
|
|
5,005
|
|
||
Total borrowed funds
|
61,354
|
|
|
57,419
|
|
||
Allowance for unfunded loan commitments and letters of credit
|
304
|
|
|
285
|
|
||
Accrued expenses and other liabilities
|
12,220
|
|
|
9,002
|
|
||
Total liabilities
|
359,461
|
|
|
334,545
|
|
||
Equity
|
|
|
|
||||
Preferred stock (d)
|
|
|
|
||||
Common stock ($5 par value, Authorized 800 shares, issued 542 shares)
|
2,711
|
|
|
2,711
|
|
||
Capital surplus
|
16,297
|
|
|
16,277
|
|
||
Retained earnings
|
41,413
|
|
|
38,919
|
|
||
Accumulated other comprehensive income (loss)
|
837
|
|
|
(725
|
)
|
||
Common stock held in treasury at cost: 103 and 85 shares
|
(11,838
|
)
|
|
(9,454
|
)
|
||
Total shareholders’ equity
|
49,420
|
|
|
47,728
|
|
||
Noncontrolling interests
|
35
|
|
|
42
|
|
||
Total equity
|
49,455
|
|
|
47,770
|
|
||
Total liabilities and equity
|
$
|
408,916
|
|
|
$
|
382,315
|
|
(a)
|
Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.5 billion, Loans of $.8 billion and Other assets of $.1 billion at September 30, 2019 and Loans held for sale of $.9 billion, Loans of $.8 billion and Other assets of $.2 billion at December 31, 2018.
|
(b)
|
Amounts include our equity interest in BlackRock.
|
(c)
|
Our consolidated liabilities at both September 30, 2019 and December 31, 2018 included Other borrowed funds of $.1 billion for which we have elected the fair value option.
|
(d)
|
Par value less than $.5 million at each date.
|
Unaudited
In millions
|
|
Nine months ended
September 30 |
|
||||||
2019
|
|
|
2018
|
|
|
||||
Operating Activities
|
|
|
|
|
|
||||
Net income
|
|
$
|
4,037
|
|
|
$
|
3,995
|
|
|
Adjustments to reconcile net income to net cash provided (used) by operating activities
|
|
|
|
|
|
||||
Provision for credit losses
|
|
552
|
|
|
260
|
|
|
||
Depreciation and amortization
|
|
904
|
|
|
839
|
|
|
||
Deferred income taxes
|
|
83
|
|
|
(116
|
)
|
|
||
Changes in fair value of mortgage servicing rights
|
|
715
|
|
|
(57
|
)
|
|
||
Undistributed earnings of BlackRock
|
|
(356
|
)
|
|
(421
|
)
|
|
||
Net change in
|
|
|
|
|
|
||||
Trading securities and other short-term investments
|
|
741
|
|
|
293
|
|
|
||
Loans held for sale
|
|
(882
|
)
|
|
910
|
|
|
||
Other assets
|
|
(2,086
|
)
|
|
(2,194
|
)
|
|
||
Accrued expenses and other liabilities
|
|
831
|
|
|
2,195
|
|
|
||
Other
|
|
(291
|
)
|
|
(1
|
)
|
|
||
Net cash provided (used) by operating activities
|
|
$
|
4,248
|
|
|
$
|
5,703
|
|
|
Investing Activities
|
|
|
|
|
|
||||
Sales
|
|
|
|
|
|
||||
Securities available for sale
|
|
$
|
5,201
|
|
|
$
|
5,422
|
|
|
Loans
|
|
1,237
|
|
|
1,180
|
|
|
||
Repayments/maturities
|
|
|
|
|
|
||||
Securities available for sale
|
|
7,962
|
|
|
6,941
|
|
|
||
Securities held to maturity
|
|
2,193
|
|
|
1,917
|
|
|
||
Purchases
|
|
|
|
|
|
||||
Securities available for sale
|
|
(17,179
|
)
|
|
(17,635
|
)
|
|
||
Securities held to maturity
|
|
(1,739
|
)
|
|
(3,072
|
)
|
|
||
Loans
|
|
(898
|
)
|
|
(430
|
)
|
|
||
Net change in
|
|
|
|
|
|
||||
Federal funds sold and resale agreements
|
|
3,192
|
|
|
313
|
|
|
||
Interest-earning deposits with banks
|
|
(8,143
|
)
|
|
8,795
|
|
|
||
Loans
|
|
(11,978
|
)
|
|
(4,120
|
)
|
|
||
Other
|
|
(573
|
)
|
|
(965
|
)
|
|
||
Net cash provided (used) by investing activities
|
|
$
|
(20,725
|
)
|
|
$
|
(1,654
|
)
|
|
Unaudited
In millions
|
|
Nine Months Ended
September 30 |
|
||||||
2019
|
|
|
2018
|
|
|
||||
Financing Activities
|
|
|
|
|
|
||||
Net change in
|
|
|
|
|
|
||||
Noninterest-bearing deposits
|
|
$
|
180
|
|
|
$
|
(5,114
|
)
|
|
Interest-bearing deposits
|
|
17,627
|
|
|
4,959
|
|
|
||
Federal funds purchased and repurchase agreements
|
|
1,934
|
|
|
1,037
|
|
|
||
Federal Home Loan Bank borrowings
|
|
1,400
|
|
|
|
|
|
||
Commercial paper
|
|
|
|
(100
|
)
|
|
|||
Other borrowed funds
|
|
(77
|
)
|
|
(109
|
)
|
|
||
Sales/issuances
|
|
|
|
|
|
||||
Federal Home Loan Bank borrowings
|
|
12,000
|
|
|
6,500
|
|
|
||
Bank notes and senior debt
|
|
6,930
|
|
|
3,238
|
|
|
||
Subordinated debt
|
|
|
|
|
1,243
|
|
|
||
Other borrowed funds
|
|
929
|
|
|
400
|
|
|
||
Common and treasury stock
|
|
73
|
|
|
61
|
|
|
||
Repayments/maturities
|
|
|
|
|
|
||||
Federal Home Loan Bank borrowings
|
|
(13,000
|
)
|
|
(7,501
|
)
|
|
||
Bank notes and senior debt
|
|
(5,600
|
)
|
|
(4,175
|
)
|
|
||
Subordinated debt
|
|
(700
|
)
|
|
(575
|
)
|
|
||
Other borrowed funds
|
|
(963
|
)
|
|
(429
|
)
|
|
||
Acquisition of treasury stock
|
|
(2,626
|
)
|
|
(2,145
|
)
|
|
||
Preferred stock cash dividends paid
|
|
(181
|
)
|
|
(181
|
)
|
|
||
Common stock cash dividends paid
|
|
(1,386
|
)
|
|
(1,159
|
)
|
|
||
Net cash provided (used) by financing activities
|
|
$
|
16,540
|
|
|
$
|
(4,050
|
)
|
|
Net Increase (Decrease) In Cash And Due From Banks
|
|
63
|
|
|
(1
|
)
|
|
||
Cash and due from banks at beginning of period
|
|
5,608
|
|
|
5,249
|
|
|
||
Cash and due from banks at end of period
|
|
$
|
5,671
|
|
|
$
|
5,248
|
|
|
Supplemental Disclosures
|
|
|
|
|
|
||||
Interest paid
|
|
$
|
2,915
|
|
|
$
|
1,881
|
|
|
Income taxes paid
|
|
$
|
321
|
|
|
$
|
324
|
|
|
Income taxes refunded
|
|
$
|
7
|
|
|
$
|
463
|
|
|
Leased assets obtained in exchange for new operating lease liabilities
|
|
$
|
238
|
|
|
|
|
||
Right-of-use assets recognized at adoption of ASU 2016-02
|
|
$
|
2,004
|
|
|
|
|
||
Non-cash Investing and Financing Items
|
|
|
|
|
|
||||
Transfer from loans to loans held for sale, net
|
|
$
|
771
|
|
|
$
|
359
|
|
|
Transfer from loans to foreclosed assets
|
|
$
|
131
|
|
|
$
|
145
|
|
|
Transfer from trading securities to investment securities
|
|
$
|
228
|
|
|
|
|
|
In millions
|
Residential
Mortgages |
|
|
Commercial
Mortgages (a) |
|
|
|||
Cash Flows - Three months ended September 30, 2019
|
|
|
|
|
|
||||
Sales of loans (b)
|
$
|
1,296
|
|
|
|
$
|
1,122
|
|
|
Repurchases of previously transferred loans (c)
|
$
|
81
|
|
|
|
|
|
||
Servicing fees (d)
|
$
|
90
|
|
|
|
$
|
34
|
|
|
Servicing advances recovered/(funded), net
|
$
|
5
|
|
|
|
$
|
45
|
|
|
Cash flows on mortgage-backed securities held (e)
|
$
|
1,394
|
|
|
|
$
|
14
|
|
|
Cash Flows - Three months ended September 30, 2018
|
|
|
|
|
|
||||
Sales of loans (b)
|
$
|
1,242
|
|
|
|
$
|
953
|
|
|
Repurchases of previously transferred loans (c)
|
$
|
90
|
|
|
|
|
|
||
Servicing fees (d)
|
$
|
88
|
|
|
|
$
|
34
|
|
|
Servicing advances recovered/(funded), net
|
$
|
2
|
|
|
|
$
|
19
|
|
|
Cash flows on mortgage-backed securities held (e)
|
$
|
574
|
|
|
|
$
|
51
|
|
|
Cash Flows - Nine months ended September 30, 2019
|
|
|
|
|
|
||||
Sales of loans (b)
|
$
|
2,902
|
|
|
|
$
|
2,212
|
|
|
Repurchases of previously transferred loans (c)
|
$
|
235
|
|
|
|
$
|
4
|
|
|
Servicing fees (d)
|
$
|
264
|
|
|
|
$
|
97
|
|
|
Servicing advances recovered/(funded), net
|
$
|
33
|
|
|
|
$
|
61
|
|
|
Cash flows on mortgage-backed securities held (e)
|
$
|
2,653
|
|
|
|
$
|
43
|
|
|
Cash Flows - Nine months ended September 30, 2018
|
|
|
|
|
|
||||
Sales of loans (b)
|
$
|
3,486
|
|
|
|
$
|
2,613
|
|
|
Repurchases of previously transferred loans (c)
|
$
|
286
|
|
|
|
|
|
||
Servicing fees (d)
|
$
|
269
|
|
|
|
$
|
100
|
|
|
Servicing advances recovered/(funded), net
|
$
|
45
|
|
|
|
$
|
24
|
|
|
Cash flows on mortgage-backed securities held (e)
|
$
|
1,445
|
|
|
|
$
|
100
|
|
|
(a)
|
Represents cash flow information associated with both commercial mortgage loan transfers and servicing activities.
|
(b)
|
Gains/losses recognized on sales of loans were insignificant for the periods presented.
|
(c)
|
Includes both residential and commercial mortgage government insured or guaranteed loans eligible for repurchase through the exercise of our removal of account provision option, as well as residential mortgage loans repurchased due to alleged breaches of origination covenants or representations and warranties made to purchasers.
|
(d)
|
Includes contractually specified servicing fees, late charges and ancillary fees.
|
(e)
|
Represents cash flows on securities where we transferred to and/or service loans for a securitization SPE and we hold securities issued by that SPE. The carrying values of such securities held were $17.7 billion, $13.3 billion, and $13.0 billion in residential mortgage-backed securities and $.6 billion, $.6 billion, and $.6 billion in commercial mortgage-backed securities at September 30, 2019, December 31, 2018, and September 30, 2018, respectively.
|
In millions
|
Residential Mortgages
|
|
|
|
Commercial Mortgages (a)
|
|
|
||
September 30, 2019
|
|
|
|
|
|
||||
Total principal balance
|
$
|
50,786
|
|
|
|
$
|
50,723
|
|
|
Delinquent loans (b)
|
$
|
529
|
|
|
|
$
|
64
|
|
|
December 31, 2018
|
|
|
|
|
|
||||
Total principal balance
|
$
|
54,028
|
|
|
|
$
|
47,969
|
|
|
Delinquent loans (b)
|
$
|
622
|
|
|
|
$
|
234
|
|
|
Three months ended September 30, 2019
|
|
|
|
|
|
||||
Net charge-offs (c)
|
$
|
8
|
|
|
|
$
|
52
|
|
|
Three months ended September 30, 2018
|
|
|
|
|
|
||||
Net charge-offs (c)
|
$
|
9
|
|
|
|
$
|
117
|
|
|
Nine months ended September 30, 2019
|
|
|
|
|
|
||||
Net charge-offs (c)
|
$
|
32
|
|
|
|
$
|
348
|
|
|
Nine months ended September 30, 2018
|
|
|
|
|
|
||||
Net charge-offs (c)
|
$
|
34
|
|
|
|
$
|
169
|
|
|
(a)
|
Represents information at the securitization level in which we have sold loans and we are the servicer for the securitization.
|
(b)
|
Serviced delinquent loans are 90 days or more past due or are in process of foreclosure.
|
(c)
|
Net charge-offs for Residential mortgages represent credit losses less recoveries distributed and as reported to investors during the period. Net charge-offs for Commercial mortgages represent credit losses less recoveries distributed and as reported by the trustee for commercial mortgage-backed securitizations. Realized losses for Agency securitizations are not reflected as we do not manage the underlying real estate upon foreclosure and, as such, do not have access to loss information.
|
In millions
|
PNC Risk of Loss (a)
|
|
|
|
Carrying Value of Assets
Owned by PNC |
|
|
|
|
Carrying Value of Liabilities
Owned by PNC |
|
|
|||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage-backed securitizations (b)
|
$
|
19,084
|
|
|
|
$
|
19,084
|
|
(c)
|
|
|
|
|
||
Tax credit investments and other
|
3,077
|
|
|
|
3,048
|
|
(d)
|
|
|
$
|
1,111
|
|
(e)
|
||
Total
|
$
|
22,161
|
|
|
|
$
|
22,132
|
|
|
|
|
$
|
1,111
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage-backed securitizations (b)
|
$
|
14,266
|
|
|
|
$
|
14,266
|
|
(c)
|
|
|
|
|
||
Tax credit investments and other
|
2,949
|
|
|
|
2,911
|
|
(d)
|
|
|
$
|
806
|
|
(e)
|
||
Total
|
$
|
17,215
|
|
|
|
$
|
17,177
|
|
|
|
|
$
|
806
|
|
|
(a)
|
Represents loans, investments and other assets related to non-consolidated VIEs, net of collateral (if applicable). The risk of loss excludes any potential tax recapture associated with tax credits investments.
|
(b)
|
Amounts reflect involvement with securitization SPEs where we transferred to and/or service loans for an SPE and we hold securities issued by that SPE. Values disclosed in the PNC Risk of Loss column represent our maximum exposure to loss for those securities’ holdings.
|
(c)
|
Included in Investment securities, Mortgage servicing rights and Other assets on our Consolidated Balance Sheet.
|
(d)
|
Included in Investment securities, Loans, Equity investments and Other assets on our Consolidated Balance Sheet.
|
(e)
|
Included in Deposits and Other liabilities on our Consolidated Balance Sheet.
|
|
Accruing
|
|
|
|
|
|
|
||||||||||||||||||||||
Dollars in millions
|
Current or Less
Than 30 Days
Past Due
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days
Or More
Past Due
|
|
Total Past
Due (b)
|
|
|
Nonperforming
Loans
|
|
Fair Value
Option
Nonaccrual
Loans (c)
|
|
Purchased
Impaired
Loans
|
|
Total
Loans (d)
|
|
|
|||||||||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial Lending
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
$
|
123,328
|
|
$
|
82
|
|
$
|
49
|
|
$
|
64
|
|
$
|
195
|
|
|
$
|
491
|
|
|
|
$
|
124,014
|
|
|
||||
Commercial real estate
|
28,803
|
|
3
|
|
3
|
|
|
6
|
|
|
75
|
|
|
|
28,884
|
|
|
||||||||||||
Equipment lease financing
|
7,270
|
|
6
|
|
4
|
|
|
10
|
|
|
10
|
|
|
|
7,290
|
|
|
||||||||||||
Total commercial lending
|
159,401
|
|
91
|
|
56
|
|
64
|
|
211
|
|
|
576
|
|
|
|
|
160,188
|
|
|
||||||||||
Consumer Lending
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Home equity
|
23,631
|
|
53
|
|
24
|
|
|
77
|
|
|
685
|
|
|
$
|
578
|
|
24,971
|
|
|
||||||||||
Residential real estate
|
18,867
|
|
129
|
|
77
|
|
302
|
|
508
|
|
(b)
|
325
|
|
$
|
166
|
|
1,216
|
|
21,082
|
|
|
||||||||
Automobile
|
15,684
|
|
145
|
|
36
|
|
11
|
|
192
|
|
|
128
|
|
|
|
16,004
|
|
|
|||||||||||
Credit card
|
6,660
|
|
56
|
|
33
|
|
57
|
|
146
|
|
|
9
|
|
|
|
6,815
|
|
|
|||||||||||
Education
|
3,280
|
|
56
|
|
35
|
|
90
|
|
181
|
|
(b)
|
|
|
|
3,461
|
|
|
||||||||||||
Other consumer
|
4,818
|
|
17
|
|
8
|
|
8
|
|
33
|
|
|
5
|
|
|
|
4,856
|
|
|
|||||||||||
Total consumer lending
|
72,940
|
|
456
|
|
213
|
|
468
|
|
1,137
|
|
|
1,152
|
|
166
|
|
1,794
|
|
77,189
|
|
|
|||||||||
Total
|
$
|
232,341
|
|
$
|
547
|
|
$
|
269
|
|
$
|
532
|
|
$
|
1,348
|
|
|
$
|
1,728
|
|
$
|
166
|
|
$
|
1,794
|
|
$
|
237,377
|
|
|
Percentage of total loans
|
97.88
|
%
|
.23
|
%
|
.11
|
%
|
.22
|
%
|
.56
|
%
|
|
.73
|
%
|
.07
|
%
|
.76
|
%
|
100.00
|
%
|
|
|||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial Lending
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
$
|
116,300
|
|
$
|
82
|
|
$
|
54
|
|
$
|
52
|
|
$
|
188
|
|
|
$
|
346
|
|
|
|
$
|
116,834
|
|
|
||||
Commercial real estate
|
28,056
|
|
6
|
|
3
|
|
|
9
|
|
|
75
|
|
|
|
28,140
|
|
|
||||||||||||
Equipment lease financing
|
7,229
|
|
56
|
|
12
|
|
|
68
|
|
|
11
|
|
|
|
7,308
|
|
|
||||||||||||
Total commercial lending
|
151,585
|
|
144
|
|
69
|
|
52
|
|
265
|
|
|
432
|
|
|
|
152,282
|
|
|
|||||||||||
Consumer Lending
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Home equity
|
24,556
|
|
66
|
|
25
|
|
|
|
91
|
|
|
797
|
|
|
$
|
679
|
|
26,123
|
|
|
|||||||||
Residential real estate
|
16,216
|
|
135
|
|
73
|
|
363
|
|
571
|
|
(b)
|
350
|
|
$
|
182
|
|
1,338
|
|
18,657
|
|
|
||||||||
Automobile
|
14,165
|
|
113
|
|
29
|
|
12
|
|
154
|
|
|
100
|
|
|
|
14,419
|
|
|
|||||||||||
Credit card
|
6,222
|
|
46
|
|
29
|
|
53
|
|
128
|
|
|
7
|
|
|
|
6,357
|
|
|
|||||||||||
Education
|
3,571
|
|
69
|
|
41
|
|
141
|
|
251
|
|
(b)
|
|
|
|
|
3,822
|
|
|
|||||||||||
Other consumer
|
4,552
|
|
12
|
|
5
|
|
8
|
|
25
|
|
|
8
|
|
|
|
4,585
|
|
|
|||||||||||
Total consumer lending
|
69,282
|
|
441
|
|
202
|
|
577
|
|
1,220
|
|
|
1,262
|
|
182
|
|
2,017
|
|
73,963
|
|
|
|||||||||
Total
|
$
|
220,867
|
|
$
|
585
|
|
$
|
271
|
|
$
|
629
|
|
$
|
1,485
|
|
|
$
|
1,694
|
|
$
|
182
|
|
$
|
2,017
|
|
$
|
226,245
|
|
|
Percentage of total loans
|
97.62
|
%
|
.26
|
%
|
.12
|
%
|
.28
|
%
|
.66
|
%
|
|
.75
|
%
|
.08
|
%
|
.89
|
%
|
100.00
|
%
|
|
(a)
|
Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment does not include any associated valuation allowance.
|
(b)
|
Past due loan amounts exclude purchased impaired loans, even if contractually past due (or if we do not expect to receive payment in full based on the original contractual terms), as we are currently accreting interest income over the expected life of the loans. Past due loan amounts include government insured or guaranteed Residential real estate mortgages totaling $.4 billion and $.5 billion at September 30, 2019 and December 31, 2018, respectively, and Education loans totaling $.2 billion at both September 30, 2019 and December 31, 2018.
|
(c)
|
Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policies. Given that these loans are not accounted for at amortized cost, these loans have been excluded from the nonperforming loan population.
|
(d)
|
Net of unearned income, net deferred loan fees, unamortized discounts and premiums, and purchase discounts and premiums totaling $1.2 billion at both September 30, 2019 December 31, 2018.
|
Dollars in millions
|
|
September 30
2019 |
|
|
December 31
2018 |
|
|
||
Nonperforming loans
|
|
|
|
|
|
||||
Total commercial lending
|
|
$
|
576
|
|
|
$
|
432
|
|
|
Total consumer lending (a)
|
|
1,152
|
|
|
1,262
|
|
|
||
Total nonperforming loans
|
|
1,728
|
|
|
1,694
|
|
|
||
OREO and foreclosed assets
|
|
119
|
|
|
114
|
|
|
||
Total nonperforming assets
|
|
$
|
1,847
|
|
|
$
|
1,808
|
|
|
Nonperforming loans to total loans
|
|
.73
|
%
|
|
.75
|
%
|
|
||
Nonperforming assets to total loans, OREO and foreclosed assets
|
|
.78
|
%
|
|
.80
|
%
|
|
||
Nonperforming assets to total assets
|
|
.45
|
%
|
|
.47
|
%
|
|
(a)
|
Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
|
In millions
|
|
Pass Rated
|
|
|
Criticized
|
|
|
Total Loans
|
|
|
|||
September 30, 2019
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
118,316
|
|
|
$
|
5,698
|
|
|
$
|
124,014
|
|
|
Commercial real estate
|
|
28,050
|
|
|
834
|
|
|
28,884
|
|
|
|||
Equipment lease financing
|
|
7,065
|
|
|
225
|
|
|
7,290
|
|
|
|||
Total commercial lending
|
|
$
|
153,431
|
|
|
$
|
6,757
|
|
|
$
|
160,188
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
111,276
|
|
|
$
|
5,558
|
|
|
$
|
116,834
|
|
|
Commercial real estate
|
|
27,682
|
|
|
458
|
|
|
28,140
|
|
|
|||
Equipment lease financing
|
|
7,180
|
|
|
128
|
|
|
7,308
|
|
|
|||
Total commercial lending
|
|
$
|
146,138
|
|
|
$
|
6,144
|
|
|
$
|
152,282
|
|
|
(a)
|
Loans are classified as Pass Rated and Criticized based on the Regulatory classification definitions. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of September 30, 2019 and December 31, 2018. We use probability of default and loss given default to rate loans in the commercial lending portfolio.
|
|
September 30, 2019
|
December 31, 2018
|
||||||||||
|
Home equity
|
|
Residential real estate
|
|
Home equity
|
|
Residential real estate
|
|
||||
In millions
|
||||||||||||
Current estimated LTV ratios
|
|
|
|
|
||||||||
Greater than or equal to 125%
|
$
|
382
|
|
$
|
123
|
|
$
|
461
|
|
$
|
116
|
|
Greater than or equal to 100% to less than 125%
|
911
|
|
228
|
|
1,020
|
|
255
|
|
||||
Greater than or equal to 90% to less than 100%
|
1,096
|
|
340
|
|
1,174
|
|
335
|
|
||||
Less than 90%
|
21,821
|
|
18,384
|
|
22,644
|
|
15,922
|
|
||||
No LTV ratio available
|
183
|
|
218
|
|
145
|
|
6
|
|
||||
Government insured or guaranteed loans
|
|
573
|
|
|
685
|
|
||||||
Purchased impaired loans
|
578
|
|
1,216
|
|
679
|
|
1,338
|
|
||||
Total loans
|
$
|
24,971
|
|
$
|
21,082
|
|
$
|
26,123
|
|
$
|
18,657
|
|
Updated FICO Scores
|
|
|
|
|
||||||||
Greater than 660
|
$
|
22,066
|
|
$
|
18,455
|
|
$
|
22,996
|
|
$
|
15,956
|
|
Less than or equal to 660
|
2,045
|
|
547
|
|
2,210
|
|
585
|
|
||||
No FICO score available
|
282
|
|
291
|
|
238
|
|
93
|
|
||||
Government insured or guaranteed loans
|
|
573
|
|
|
685
|
|
||||||
Purchased impaired loans
|
578
|
|
1,216
|
|
679
|
|
1,338
|
|
||||
Total loans
|
$
|
24,971
|
|
$
|
21,082
|
|
$
|
26,123
|
|
$
|
18,657
|
|
|
|
|
|
||||||||||
Dollars in millions
|
|
Automobile
|
Credit Card
|
Education
|
Other Consumer
|
||||||||
September 30, 2019
|
|
|
|
|
|
||||||||
FICO score greater than 719
|
|
$
|
8,444
|
|
$
|
3,989
|
|
$
|
1,184
|
|
$
|
1,452
|
|
650 to 719
|
|
4,845
|
|
1,955
|
|
185
|
|
755
|
|
||||
620 to 649
|
|
1,152
|
|
325
|
|
22
|
|
122
|
|
||||
Less than 620
|
|
1,240
|
|
376
|
|
22
|
|
107
|
|
||||
No FICO score available or required (a)
|
|
323
|
|
170
|
|
42
|
|
27
|
|
||||
Total loans using FICO credit metric
|
|
16,004
|
|
6,815
|
|
1,455
|
|
2,463
|
|
||||
Consumer loans using other internal credit metrics
|
|
|
|
2,006
|
|
2,393
|
|
||||||
Total loans
|
|
$
|
16,004
|
|
$
|
6,815
|
|
$
|
3,461
|
|
$
|
4,856
|
|
Weighted-average updated FICO score (b)
|
|
724
|
|
731
|
|
775
|
|
731
|
|
||||
December 31, 2018
|
|
|
|
|
|
||||||||
FICO score greater than 719
|
|
$
|
7,740
|
|
$
|
3,809
|
|
$
|
1,240
|
|
$
|
1,280
|
|
650 to 719
|
|
4,365
|
|
1,759
|
|
194
|
|
641
|
|
||||
620 to 649
|
|
1,007
|
|
280
|
|
26
|
|
106
|
|
||||
Less than 620
|
|
1,027
|
|
332
|
|
24
|
|
105
|
|
||||
No FICO score available or required (a)
|
|
280
|
|
177
|
|
57
|
|
25
|
|
||||
Total loans using FICO credit metric
|
|
14,419
|
|
6,357
|
|
1,541
|
|
2,157
|
|
||||
Consumer loans using other internal credit metrics
|
|
|
|
2,281
|
|
2,428
|
|
||||||
Total loans
|
|
$
|
14,419
|
|
$
|
6,357
|
|
$
|
3,822
|
|
$
|
4,585
|
|
Weighted-average updated FICO score (b)
|
|
726
|
|
733
|
|
774
|
|
732
|
|
(a)
|
Loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.
|
(b)
|
Weighted-average updated FICO score excludes accounts with no FICO score available or required.
|
|
|
|
Pre-TDR
Recorded
Investment (b)
|
|
|
Post-TDR Recorded Investment (c)
|
|
|||||||||||||||||
During the three months ended September 30, 2019
Dollars in millions |
Number
of Loans |
|
|
Principal
Forgiveness
|
|
|
Rate
Reduction
|
|
|
Other
|
|
|
Total
|
|
|
|||||||||
Total commercial lending
|
|
21
|
|
|
$
|
97
|
|
|
|
|
|
|
$
|
72
|
|
|
$
|
72
|
|
|
||||
Total consumer lending
|
|
3,656
|
|
|
45
|
|
|
|
|
$
|
24
|
|
|
19
|
|
|
43
|
|
|
|||||
Total TDRs
|
|
3,677
|
|
|
$
|
142
|
|
|
|
|
$
|
24
|
|
|
$
|
91
|
|
|
$
|
115
|
|
|
||
During the three months ended September 30, 2018
Dollars in millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total commercial lending
|
|
18
|
|
|
$
|
115
|
|
|
$
|
2
|
|
|
$
|
24
|
|
|
$
|
81
|
|
|
$
|
107
|
|
|
Total consumer lending
|
|
3,147
|
|
|
45
|
|
|
|
|
|
19
|
|
|
23
|
|
|
42
|
|
|
|||||
Total TDRs
|
|
3,165
|
|
|
$
|
160
|
|
|
$
|
2
|
|
|
$
|
43
|
|
|
$
|
104
|
|
|
$
|
149
|
|
|
|
|
|
Pre-TDR
Recorded
Investment (b)
|
|
|
Post-TDR Recorded Investment (c)
|
|
|||||||||||||||||
During the nine months ended September 30, 2019
Dollars in millions |
Number
of Loans |
|
|
Principal
Forgiveness
|
|
|
Rate
Reduction
|
|
|
Other
|
|
|
Total
|
|
|
|||||||||
Total commercial lending
|
|
58
|
|
|
$
|
233
|
|
|
|
|
$
|
1
|
|
|
$
|
208
|
|
|
$
|
209
|
|
|
||
Total consumer lending
|
|
11,009
|
|
|
131
|
|
|
|
|
72
|
|
|
51
|
|
|
123
|
|
|
||||||
Total TDRs
|
|
11,067
|
|
|
$
|
364
|
|
|
|
|
$
|
73
|
|
|
$
|
259
|
|
|
$
|
332
|
|
|
||
During the nine months ended September 30, 2018
Dollars in millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total commercial lending
|
|
65
|
|
|
$
|
145
|
|
|
$
|
2
|
|
|
$
|
26
|
|
|
$
|
105
|
|
|
$
|
133
|
|
|
Total consumer lending
|
|
9,015
|
|
|
129
|
|
|
1
|
|
|
66
|
|
|
52
|
|
|
119
|
|
|
|||||
Total TDRs
|
|
9,080
|
|
|
$
|
274
|
|
|
$
|
3
|
|
|
$
|
92
|
|
|
$
|
157
|
|
|
$
|
252
|
|
|
In millions
|
|
Unpaid
Principal Balance
|
|
|
Recorded
Investment
|
|
|
Associated
Allowance
|
|
|
Average Recorded
Investment (a)
|
|
|
||||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans with an associated allowance
|
|
|
|
|
|
|
|
|
|
||||||||
Total commercial lending
|
|
$
|
491
|
|
|
$
|
375
|
|
|
$
|
81
|
|
|
$
|
367
|
|
|
Total consumer lending
|
|
734
|
|
|
697
|
|
|
95
|
|
|
775
|
|
|
||||
Total impaired loans with an associated allowance
|
|
1,225
|
|
|
1,072
|
|
|
176
|
|
|
1,142
|
|
|
||||
Impaired loans without an associated allowance
|
|
|
|
|
|
|
|
|
|
||||||||
Total commercial lending
|
|
360
|
|
|
310
|
|
|
|
|
297
|
|
|
|||||
Total consumer lending
|
|
1,045
|
|
|
646
|
|
|
|
|
620
|
|
|
|||||
Total impaired loans without an associated allowance
|
|
1,405
|
|
|
956
|
|
|
|
|
|
917
|
|
|
||||
Total impaired loans
|
|
$
|
2,630
|
|
|
$
|
2,028
|
|
|
$
|
176
|
|
|
$
|
2,059
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans with an associated allowance
|
|
|
|
|
|
|
|
|
|
||||||||
Total commercial lending
|
|
$
|
440
|
|
|
$
|
315
|
|
|
$
|
73
|
|
|
$
|
349
|
|
|
Total consumer lending
|
|
863
|
|
|
817
|
|
|
136
|
|
|
904
|
|
|
||||
Total impaired loans with an associated allowance
|
|
1,303
|
|
|
1,132
|
|
|
209
|
|
|
1,253
|
|
|
||||
Impaired loans without an associated allowance
|
|
|
|
|
|
|
|
|
|
||||||||
Total commercial lending
|
|
413
|
|
|
326
|
|
|
|
|
294
|
|
|
|||||
Total consumer lending
|
|
1,042
|
|
|
625
|
|
|
|
|
645
|
|
|
|||||
Total impaired loans without an associated allowance
|
|
1,455
|
|
|
951
|
|
|
|
|
939
|
|
|
|||||
Total impaired loans
|
|
$
|
2,758
|
|
|
$
|
2,083
|
|
|
$
|
209
|
|
|
$
|
2,192
|
|
|
(a)
|
Average recorded investment is for the nine months ended September 30, 2019 and the year ended December 31, 2018, respectively.
|
|
|
2019
|
|
2018
|
|
||||||||||||||||||||
At or for the nine months ended September 30
Dollars in millions
|
|
Commercial
Lending
|
|
|
Consumer
Lending
|
|
|
Total
|
|
|
Commercial
Lending
|
|
|
Consumer
Lending
|
|
|
Total
|
|
|
||||||
Allowance for Loan and Lease Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
January 1
|
|
$
|
1,663
|
|
|
$
|
966
|
|
|
$
|
2,629
|
|
|
$
|
1,582
|
|
|
$
|
1,029
|
|
|
$
|
2,611
|
|
|
Charge-offs
|
|
(138
|
)
|
|
(545
|
)
|
|
(683
|
)
|
|
(92
|
)
|
|
(472
|
)
|
|
(564
|
)
|
|
||||||
Recoveries
|
|
59
|
|
|
191
|
|
|
250
|
|
|
74
|
|
|
177
|
|
|
251
|
|
|
||||||
Net (charge-offs)
|
|
(79
|
)
|
|
(354
|
)
|
|
(433
|
)
|
|
(18
|
)
|
|
(295
|
)
|
|
(313
|
)
|
|
||||||
Provision for credit losses
|
|
247
|
|
|
305
|
|
|
552
|
|
|
48
|
|
|
212
|
|
|
260
|
|
|
||||||
Net (increase) / decrease in allowance for unfunded loan
commitments and letters of credit
|
|
(20
|
)
|
|
1
|
|
|
(19
|
)
|
|
7
|
|
|
2
|
|
|
9
|
|
|
||||||
Other
|
|
|
|
9
|
|
|
9
|
|
|
(1
|
)
|
|
18
|
|
|
17
|
|
|
|||||||
September 30
|
|
$
|
1,811
|
|
|
$
|
927
|
|
|
$
|
2,738
|
|
|
$
|
1,618
|
|
|
$
|
966
|
|
|
$
|
2,584
|
|
|
TDRs individually evaluated for impairment
|
|
$
|
34
|
|
|
$
|
95
|
|
|
$
|
129
|
|
|
$
|
28
|
|
|
$
|
145
|
|
|
$
|
173
|
|
|
Other loans individually evaluated for impairment
|
|
47
|
|
|
|
|
47
|
|
|
37
|
|
|
|
|
37
|
|
|
||||||||
Loans collectively evaluated for impairment
|
|
1,730
|
|
|
554
|
|
|
2,284
|
|
|
1,553
|
|
|
547
|
|
|
2,100
|
|
|
||||||
Purchased impaired loans
|
|
|
|
278
|
|
|
278
|
|
|
|
|
274
|
|
|
274
|
|
|
||||||||
September 30
|
|
$
|
1,811
|
|
|
$
|
927
|
|
|
$
|
2,738
|
|
|
$
|
1,618
|
|
|
$
|
966
|
|
|
$
|
2,584
|
|
|
Loan Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TDRs individually evaluated for impairment
|
|
$
|
420
|
|
|
$
|
1,343
|
|
|
$
|
1,763
|
|
|
$
|
389
|
|
|
$
|
1,497
|
|
|
$
|
1,886
|
|
|
Other loans individually evaluated for impairment
|
|
265
|
|
|
|
|
265
|
|
|
206
|
|
|
|
|
206
|
|
|
||||||||
Loans collectively evaluated for impairment
|
|
159,503
|
|
|
73,298
|
|
|
232,801
|
|
|
148,853
|
|
|
69,253
|
|
|
218,106
|
|
|
||||||
Fair value option loans (a)
|
|
|
|
754
|
|
|
754
|
|
|
|
|
753
|
|
|
753
|
|
|
||||||||
Purchased impaired loans
|
|
|
|
1,794
|
|
|
1,794
|
|
|
|
|
2,102
|
|
|
2,102
|
|
|
||||||||
September 30
|
|
$
|
160,188
|
|
|
$
|
77,189
|
|
|
$
|
237,377
|
|
|
$
|
149,448
|
|
|
$
|
73,605
|
|
|
$
|
223,053
|
|
|
Portfolio segment ALLL as a percentage of total ALLL
|
|
66
|
%
|
|
34
|
%
|
|
100
|
%
|
|
63
|
%
|
|
37
|
%
|
|
100
|
%
|
|
||||||
Ratio of ALLL to total loans
|
|
1.13
|
%
|
|
1.20
|
%
|
|
1.15
|
%
|
|
1.08
|
%
|
|
1.31
|
%
|
|
1.16
|
%
|
|
(a)
|
Loans accounted for under the fair value option are not evaluated for impairment as these loans are accounted for at fair value. Accordingly, there is no allowance recorded on these loans.
|
|
|
September 30, 2019
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
In millions
|
|
Amortized
Cost
|
|
|
Unrealized
|
|
Fair
Value
|
|
|
|
Amortized
Cost
|
|
|
Unrealized
|
|
Fair
Value
|
|
||||||||||||||||
Gains
|
|
|
Losses
|
|
|
|
|
Gains
|
|
|
Losses
|
|
|
||||||||||||||||||||
Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and government agencies
|
|
$
|
17,597
|
|
|
$
|
420
|
|
|
$
|
(12
|
)
|
|
$
|
18,005
|
|
|
|
$
|
18,104
|
|
|
$
|
133
|
|
|
$
|
(137
|
)
|
|
$
|
18,100
|
|
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
34,130
|
|
|
506
|
|
|
(56
|
)
|
|
34,580
|
|
|
|
29,413
|
|
|
104
|
|
|
(524
|
)
|
|
28,993
|
|
||||||||
Non-agency
|
|
1,626
|
|
|
308
|
|
|
(3
|
)
|
|
1,931
|
|
|
|
1,924
|
|
|
300
|
|
|
(13
|
)
|
|
2,211
|
|
||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
2,909
|
|
|
54
|
|
|
(24
|
)
|
|
2,939
|
|
|
|
2,630
|
|
|
13
|
|
|
(66
|
)
|
|
2,577
|
|
||||||||
Non-agency
|
|
3,209
|
|
|
41
|
|
|
(4
|
)
|
|
3,246
|
|
|
|
2,689
|
|
|
5
|
|
|
(37
|
)
|
|
2,657
|
|
||||||||
Asset-backed
|
|
5,256
|
|
|
89
|
|
|
(6
|
)
|
|
5,339
|
|
|
|
4,933
|
|
|
59
|
|
|
(20
|
)
|
|
4,972
|
|
||||||||
Other
|
|
2,892
|
|
|
126
|
|
|
(1
|
)
|
|
3,017
|
|
|
|
3,821
|
|
|
96
|
|
|
(38
|
)
|
|
3,879
|
|
||||||||
Total securities available for sale
|
|
$
|
67,619
|
|
|
$
|
1,544
|
|
|
$
|
(106
|
)
|
|
$
|
69,057
|
|
|
|
$
|
63,514
|
|
|
$
|
710
|
|
|
$
|
(835
|
)
|
|
$
|
63,389
|
|
Securities Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and government agencies
|
|
$
|
772
|
|
|
$
|
75
|
|
|
|
|
$
|
847
|
|
|
|
$
|
758
|
|
|
$
|
28
|
|
|
$
|
(23
|
)
|
|
$
|
763
|
|
||
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
15,527
|
|
|
257
|
|
|
$
|
(34
|
)
|
|
15,750
|
|
|
|
15,740
|
|
|
32
|
|
|
(358
|
)
|
|
15,414
|
|
|||||||
Non-agency
|
|
140
|
|
|
7
|
|
|
|
|
147
|
|
|
|
152
|
|
|
2
|
|
|
|
|
154
|
|
||||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
89
|
|
|
3
|
|
|
|
|
92
|
|
|
|
143
|
|
|
1
|
|
|
(1
|
)
|
|
143
|
|
|||||||||
Non-agency
|
|
449
|
|
|
6
|
|
|
|
|
455
|
|
|
|
488
|
|
|
1
|
|
|
(1
|
)
|
|
488
|
|
|||||||||
Asset-backed
|
|
54
|
|
|
1
|
|
|
|
|
55
|
|
|
|
182
|
|
|
1
|
|
|
|
|
183
|
|
||||||||||
Other
|
|
1,795
|
|
|
85
|
|
|
(16
|
)
|
|
1,864
|
|
|
|
1,849
|
|
|
53
|
|
|
(28
|
)
|
|
1,874
|
|
||||||||
Total securities held to maturity
|
|
$
|
18,826
|
|
|
$
|
434
|
|
|
$
|
(50
|
)
|
|
$
|
19,210
|
|
|
|
$
|
19,312
|
|
|
$
|
118
|
|
|
$
|
(411
|
)
|
|
$
|
19,019
|
|
|
|
Unrealized loss position less than 12 months
|
|
Unrealized loss position 12 months or more
|
|
Total
|
|
||||||||||||||||||
In millions
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
||||||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and government agencies
|
|
$
|
(11
|
)
|
|
$
|
2,300
|
|
|
$
|
(1
|
)
|
|
$
|
248
|
|
|
$
|
(12
|
)
|
|
$
|
2,548
|
|
|
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
(5
|
)
|
|
1,329
|
|
|
(51
|
)
|
|
5,471
|
|
|
(56
|
)
|
|
6,800
|
|
|
||||||
Non-agency
|
|
|
|
|
|
(3
|
)
|
|
242
|
|
|
(3
|
)
|
|
242
|
|
|
||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
|
|
|
|
(24
|
)
|
|
1,121
|
|
|
(24
|
)
|
|
1,121
|
|
|
||||||||
Non-agency
|
|
(1
|
)
|
|
413
|
|
|
(3
|
)
|
|
217
|
|
|
(4
|
)
|
|
630
|
|
|
||||||
Asset-backed
|
|
(2
|
)
|
|
464
|
|
|
(4
|
)
|
|
794
|
|
|
(6
|
)
|
|
1,258
|
|
|
||||||
Other
|
|
|
|
|
|
(1
|
)
|
|
503
|
|
|
(1
|
)
|
|
503
|
|
|
||||||||
Total securities available for sale
|
|
$
|
(19
|
)
|
|
$
|
4,506
|
|
|
$
|
(87
|
)
|
|
$
|
8,596
|
|
|
$
|
(106
|
)
|
|
$
|
13,102
|
|
|
Securities Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed - Agency
|
|
|
|
|
|
$
|
(34
|
)
|
|
$
|
3,709
|
|
|
$
|
(34
|
)
|
|
$
|
3,709
|
|
|
||||
Other
|
|
$
|
(1
|
)
|
|
$
|
27
|
|
|
(15
|
)
|
|
119
|
|
|
(16
|
)
|
|
146
|
|
|
||||
Total securities held to maturity
|
|
$
|
(1
|
)
|
|
$
|
27
|
|
|
$
|
(49
|
)
|
|
$
|
3,828
|
|
|
$
|
(50
|
)
|
|
$
|
3,855
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and government agencies
|
|
$
|
(21
|
)
|
|
$
|
4,125
|
|
|
$
|
(116
|
)
|
|
$
|
5,423
|
|
|
$
|
(137
|
)
|
|
$
|
9,548
|
|
|
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
(57
|
)
|
|
4,823
|
|
|
(467
|
)
|
|
13,830
|
|
|
(524
|
)
|
|
18,653
|
|
|
||||||
Non-agency
|
|
(1
|
)
|
|
74
|
|
|
(12
|
)
|
|
310
|
|
|
(13
|
)
|
|
384
|
|
|
||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
(1
|
)
|
|
65
|
|
|
(65
|
)
|
|
1,516
|
|
|
(66
|
)
|
|
1,581
|
|
|
||||||
Non-agency
|
|
(23
|
)
|
|
1,809
|
|
|
(14
|
)
|
|
498
|
|
|
(37
|
)
|
|
2,307
|
|
|
||||||
Asset-backed
|
|
(11
|
)
|
|
2,149
|
|
|
(9
|
)
|
|
1,032
|
|
|
(20
|
)
|
|
3,181
|
|
|
||||||
Other
|
|
(12
|
)
|
|
868
|
|
|
(26
|
)
|
|
1,293
|
|
|
(38
|
)
|
|
2,161
|
|
|
||||||
Total securities available for sale
|
|
$
|
(126
|
)
|
|
$
|
13,913
|
|
|
$
|
(709
|
)
|
|
$
|
23,902
|
|
|
$
|
(835
|
)
|
|
$
|
37,815
|
|
|
Securities Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and government agencies
|
|
|
|
|
|
$
|
(23
|
)
|
|
$
|
446
|
|
|
$
|
(23
|
)
|
|
$
|
446
|
|
|
||||
Residential mortgage-backed - Agency
|
|
$
|
(58
|
)
|
|
$
|
4,191
|
|
|
(300
|
)
|
|
7,921
|
|
|
(358
|
)
|
|
12,112
|
|
|
||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
(1
|
)
|
|
88
|
|
|
|
|
|
|
(1
|
)
|
|
88
|
|
|
||||||||
Non-agency
|
|
(1
|
)
|
|
152
|
|
|
|
|
|
|
(1
|
)
|
|
152
|
|
|
||||||||
Other
|
|
(2
|
)
|
|
75
|
|
|
(26
|
)
|
|
123
|
|
|
(28
|
)
|
|
198
|
|
|
||||||
Total securities held to maturity
|
|
$
|
(62
|
)
|
|
$
|
4,506
|
|
|
$
|
(349
|
)
|
|
$
|
8,490
|
|
|
$
|
(411
|
)
|
|
$
|
12,996
|
|
|
Gross Gains
|
|
Gross Losses
|
|
Net Gains (Losses)
|
|
Tax Expense (Benefit)
|
|
|
|||||
2019
|
$
|
57
|
|
$
|
(21
|
)
|
$
|
36
|
|
$
|
8
|
|
|
2018
|
$
|
43
|
|
$
|
(48
|
)
|
$
|
(5
|
)
|
$
|
(1
|
)
|
|
September 30, 2019
Dollars in millions |
|
1 Year or Less
|
|
|
After 1 Year
through 5 Years
|
|
|
After 5 Years
through 10 Years
|
|
|
After 10
Years
|
|
|
Total
|
|
|
|||||
Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and government agencies
|
|
$
|
2,456
|
|
|
$
|
11,133
|
|
|
$
|
3,111
|
|
|
$
|
897
|
|
|
$
|
17,597
|
|
|
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
|
|
61
|
|
|
1,149
|
|
|
32,920
|
|
|
34,130
|
|
|
||||||
Non-agency
|
|
|
|
|
|
|
|
1,626
|
|
|
1,626
|
|
|
||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
17
|
|
|
610
|
|
|
292
|
|
|
1,990
|
|
|
2,909
|
|
|
|||||
Non-agency
|
|
|
|
|
|
331
|
|
|
2,878
|
|
|
3,209
|
|
|
|||||||
Asset-backed
|
|
34
|
|
|
2,350
|
|
|
1,652
|
|
|
1,220
|
|
|
5,256
|
|
|
|||||
Other
|
|
286
|
|
|
1,421
|
|
|
436
|
|
|
749
|
|
|
2,892
|
|
|
|||||
Total securities available for sale at amortized cost
|
|
$
|
2,793
|
|
|
$
|
15,575
|
|
|
$
|
6,971
|
|
|
$
|
42,280
|
|
|
$
|
67,619
|
|
|
Fair value
|
|
$
|
2,811
|
|
|
$
|
15,754
|
|
|
$
|
7,163
|
|
|
$
|
43,329
|
|
|
$
|
69,057
|
|
|
Weighted-average yield, GAAP basis
|
|
2.64
|
%
|
|
2.27
|
%
|
|
2.84
|
%
|
|
3.30
|
%
|
|
2.98
|
%
|
|
|||||
Securities Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and government agencies
|
|
|
|
$
|
198
|
|
|
$
|
297
|
|
|
$
|
277
|
|
|
$
|
772
|
|
|
||
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
|
|
59
|
|
|
500
|
|
|
14,968
|
|
|
15,527
|
|
|
||||||
Non-agency
|
|
|
|
|
|
|
|
140
|
|
|
140
|
|
|
||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
|
|
40
|
|
|
|
|
49
|
|
|
89
|
|
|
|||||||
Non-agency
|
|
|
|
|
|
|
|
449
|
|
|
449
|
|
|
||||||||
Asset-backed
|
|
|
|
6
|
|
|
20
|
|
|
28
|
|
|
54
|
|
|
||||||
Other
|
|
$
|
37
|
|
|
732
|
|
|
664
|
|
|
362
|
|
|
1,795
|
|
|
||||
Total securities held to maturity at amortized cost
|
|
$
|
37
|
|
|
$
|
1,035
|
|
|
$
|
1,481
|
|
|
$
|
16,273
|
|
|
$
|
18,826
|
|
|
Fair value
|
|
$
|
37
|
|
|
$
|
1,070
|
|
|
$
|
1,573
|
|
|
$
|
16,530
|
|
|
$
|
19,210
|
|
|
Weighted-average yield, GAAP basis
|
|
3.92
|
%
|
|
3.56
|
%
|
|
3.56
|
%
|
|
3.33
|
%
|
|
3.36
|
%
|
|
In millions
|
September 30
2019 |
|
December 31
2018 |
|
||
Pledged to others
|
$
|
12,666
|
|
$
|
7,597
|
|
Accepted from others:
|
|
|
||||
Permitted by contract or custom to sell or repledge (a)
|
$
|
3,980
|
|
$
|
6,905
|
|
Permitted amount repledged to others
|
$
|
702
|
|
$
|
923
|
|
(a)
|
Includes $3.3 billion and $6.0 billion in fair value of securities accepted from others to collateralize short-term investments in resale agreements that were not repledged at September 30, 2019 and December 31, 2018, respectively.
|
|
September 30, 2019
|
|
|
December 31, 2018
|
|
||||||||||||||||||||||||||||
In millions
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
Fair Value
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
Fair Value
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage loans held for sale
|
|
|
$
|
781
|
|
|
$
|
4
|
|
|
$
|
785
|
|
|
|
|
|
$
|
493
|
|
|
$
|
2
|
|
|
$
|
495
|
|
|
||||
Commercial mortgage loans held for sale
|
|
|
678
|
|
|
72
|
|
|
750
|
|
|
|
|
|
309
|
|
|
87
|
|
|
396
|
|
|
||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury and government agencies
|
$
|
17,725
|
|
|
280
|
|
|
|
|
18,005
|
|
|
|
$
|
17,753
|
|
|
347
|
|
|
|
|
18,100
|
|
|
||||||||
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency
|
|
|
34,580
|
|
|
|
|
34,580
|
|
|
|
|
|
28,993
|
|
|
|
|
28,993
|
|
|
||||||||||||
Non-agency
|
|
|
78
|
|
|
1,853
|
|
|
1,931
|
|
|
|
|
|
83
|
|
|
2,128
|
|
|
2,211
|
|
|
||||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency
|
|
|
2,939
|
|
|
|
|
2,939
|
|
|
|
|
|
2,577
|
|
|
|
|
2,577
|
|
|
||||||||||||
Non-agency
|
|
|
3,246
|
|
|
|
|
3,246
|
|
|
|
|
|
2,657
|
|
|
|
|
2,657
|
|
|
||||||||||||
Asset-backed
|
|
|
5,087
|
|
|
252
|
|
|
5,339
|
|
|
|
|
|
4,698
|
|
|
274
|
|
|
4,972
|
|
|
||||||||||
Other
|
|
|
2,940
|
|
|
77
|
|
|
3,017
|
|
|
|
|
|
3,795
|
|
|
84
|
|
|
3,879
|
|
|
||||||||||
Total securities available for sale
|
17,725
|
|
|
49,150
|
|
|
2,182
|
|
|
69,057
|
|
|
|
17,753
|
|
|
43,150
|
|
|
2,486
|
|
|
63,389
|
|
|
||||||||
Loans
|
|
|
425
|
|
|
329
|
|
|
754
|
|
|
|
|
|
510
|
|
|
272
|
|
|
782
|
|
|
||||||||||
Equity investments (a)
|
590
|
|
|
|
|
1,390
|
|
|
2,177
|
|
|
|
751
|
|
|
|
|
1,255
|
|
|
2,209
|
|
|
||||||||||
Residential mortgage servicing rights
|
|
|
|
|
888
|
|
|
888
|
|
|
|
|
|
|
|
1,257
|
|
|
1,257
|
|
|
||||||||||||
Commercial mortgage servicing rights
|
|
|
|
|
595
|
|
|
595
|
|
|
|
|
|
|
|
726
|
|
|
726
|
|
|
||||||||||||
Trading securities (b)
|
854
|
|
|
2,243
|
|
|
|
|
3,097
|
|
|
|
2,137
|
|
|
1,777
|
|
|
2
|
|
|
3,916
|
|
|
|||||||||
Financial derivatives (b) (c)
|
2
|
|
|
4,546
|
|
|
90
|
|
|
4,638
|
|
|
|
3
|
|
|
2,053
|
|
|
25
|
|
|
2,081
|
|
|
||||||||
Other assets
|
323
|
|
|
129
|
|
|
|
|
452
|
|
|
|
291
|
|
|
157
|
|
|
45
|
|
|
493
|
|
|
|||||||||
Total assets
|
$
|
19,494
|
|
|
$
|
57,952
|
|
|
$
|
5,550
|
|
|
$
|
83,193
|
|
|
|
$
|
20,935
|
|
|
$
|
48,449
|
|
|
$
|
6,157
|
|
|
$
|
75,744
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other borrowed funds
|
$
|
723
|
|
|
$
|
91
|
|
|
$
|
6
|
|
|
$
|
820
|
|
|
|
$
|
868
|
|
|
$
|
132
|
|
|
$
|
7
|
|
|
$
|
1,007
|
|
|
Financial derivatives (c) (d)
|
3
|
|
|
2,123
|
|
|
206
|
|
|
2,332
|
|
|
|
1
|
|
|
2,021
|
|
|
268
|
|
|
2,290
|
|
|
||||||||
Other liabilities
|
|
|
|
|
105
|
|
|
105
|
|
|
|
|
|
|
|
58
|
|
|
58
|
|
|
||||||||||||
Total liabilities
|
$
|
726
|
|
|
$
|
2,214
|
|
|
$
|
317
|
|
|
$
|
3,257
|
|
|
|
$
|
869
|
|
|
$
|
2,153
|
|
|
$
|
333
|
|
|
$
|
3,355
|
|
|
(a)
|
Certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
|
(b)
|
Included in Other assets on the Consolidated Balance Sheet.
|
(c)
|
Amounts at September 30, 2019 and December 31, 2018 are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 9 Financial Derivatives for additional information related to derivative offsetting.
|
(d)
|
Included in Other liabilities on the Consolidated Balance Sheet.
|
|
|
Total realized / unrealized
gains or losses for the period (a) |
|
|
|
|
|
|
|
|
Unrealized
gains / losses on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2019 (a) (b) |
|||||||||||||||||||||||||
Level 3 Instruments Only
In millions |
Fair Value June 30, 2019
|
|
Included in
Earnings |
|
Included
in Other comprehensive income |
|
Purchases
|
|
Sales
|
|
Issuances
|
|
Settlements
|
|
Transfers
into Level 3 |
|
|
Transfers
out of Level 3 |
|
Fair
Value Sept. 30, 2019 |
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential mortgage loans
held for sale |
$
|
2
|
|
|
|
|
$
|
3
|
|
|
|
$
|
(1
|
)
|
$
|
8
|
|
|
$
|
(8
|
)
|
$
|
4
|
|
|
|
||||||||||
Commercial mortgage
loans held for sale |
73
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
72
|
|
|
|
|||||||||||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential mortgage-
backed non-agency |
1,976
|
|
$
|
23
|
|
|
$
|
(3
|
)
|
|
|
|
(143
|
)
|
|
|
|
1,853
|
|
|
|
|||||||||||||||
Asset-backed
|
261
|
|
2
|
|
|
|
1
|
|
|
|
(12
|
)
|
|
|
|
252
|
|
|
|
|||||||||||||||||
Other
|
80
|
|
1
|
|
|
(3
|
)
|
5
|
|
|
|
(6
|
)
|
|
|
|
77
|
|
|
|
||||||||||||||||
Total securities
available for sale |
2,317
|
|
26
|
|
|
(6
|
)
|
6
|
|
|
|
|
|
(161
|
)
|
|
|
|
|
|
2,182
|
|
|
|
||||||||||||
Loans
|
259
|
|
5
|
|
|
|
93
|
|
$
|
(7
|
)
|
$
|
1
|
|
(14
|
)
|
2
|
|
|
(10
|
)
|
329
|
|
$
|
4
|
|
|
|||||||||
Equity investments
|
1,323
|
|
48
|
|
|
|
65
|
|
(46
|
)
|
|
|
|
|
|
1,390
|
|
50
|
|
|
||||||||||||||||
Residential mortgage
servicing rights |
997
|
|
(100
|
)
|
|
|
22
|
|
|
9
|
|
(40
|
)
|
|
|
|
888
|
|
(97
|
)
|
|
|||||||||||||||
Commercial mortgage
servicing rights |
630
|
|
(38
|
)
|
|
|
25
|
|
|
13
|
|
(35
|
)
|
|
|
|
595
|
|
(38
|
)
|
|
|||||||||||||||
Trading securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Financial derivatives
|
86
|
|
17
|
|
|
|
6
|
|
|
|
(19
|
)
|
|
|
|
90
|
|
16
|
|
|
||||||||||||||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total assets
|
$
|
5,687
|
|
$
|
(42
|
)
|
|
$
|
(6
|
)
|
$
|
220
|
|
$
|
(53
|
)
|
$
|
23
|
|
$
|
(271
|
)
|
$
|
10
|
|
|
$
|
(18
|
)
|
$
|
5,550
|
|
$
|
(65
|
)
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other borrowed funds
|
$
|
5
|
|
|
|
|
|
|
$
|
13
|
|
$
|
(12
|
)
|
|
|
|
$
|
6
|
|
|
|
||||||||||||||
Financial derivatives
|
221
|
|
$
|
8
|
|
|
|
|
$
|
4
|
|
|
(27
|
)
|
|
|
|
206
|
|
$
|
13
|
|
|
|||||||||||||
Other liabilities
|
78
|
|
14
|
|
|
|
$
|
16
|
|
|
13
|
|
(16
|
)
|
|
|
|
105
|
|
8
|
|
|
||||||||||||||
Total liabilities
|
$
|
304
|
|
$
|
22
|
|
|
|
$
|
16
|
|
$
|
4
|
|
$
|
26
|
|
$
|
(55
|
)
|
|
|
|
$
|
317
|
|
$
|
21
|
|
|
||||||
Net gains (losses)
|
|
$
|
(64
|
)
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
(86
|
)
|
(d)
|
|
|
Total realized / unrealized
gains or losses for the period (a) |
|
|
|
|
|
|
|
|
Unrealized gains/losses on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2018
(a) (b) |
|||||||||||||||||||||||||
Level 3 Instruments Only
In millions |
Fair Value June 30, 2018
|
|
Included in Earnings
|
|
Included in Other comprehensive income
|
|
Purchases
|
|
Sales
|
|
Issuances
|
|
Settlements
|
|
Transfers into Level 3
|
|
Transfers out of Level 3
|
|
|
Fair Value Sept. 30, 2018
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential mortgage loans
held for sale |
$
|
4
|
|
|
|
|
$
|
2
|
|
$
|
(1
|
)
|
|
|
$
|
5
|
|
$
|
(7
|
)
|
|
$
|
3
|
|
|
|
||||||||||
Commercial mortgage
loans held for sale |
91
|
|
$
|
1
|
|
|
|
|
|
|
$
|
(3
|
)
|
|
|
|
89
|
|
|
|
||||||||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential mortgage-
backed non-agency |
2,405
|
|
18
|
|
|
$
|
(1
|
)
|
|
|
|
(154
|
)
|
|
|
|
2,268
|
|
|
|
||||||||||||||||
Asset-backed
|
308
|
|
2
|
|
|
(3
|
)
|
|
|
|
(14
|
)
|
|
|
|
293
|
|
|
|
|||||||||||||||||
Other
|
91
|
|
|
|
1
|
|
2
|
|
|
|
|
|
(5
|
)
|
|
89
|
|
|
|
|||||||||||||||||
Total securities
available for sale |
2,804
|
|
20
|
|
|
(3
|
)
|
2
|
|
|
|
(168
|
)
|
|
(5
|
)
|
|
2,650
|
|
|
|
|||||||||||||||
Loans
|
282
|
|
4
|
|
|
|
25
|
|
(18
|
)
|
|
(1
|
)
|
8
|
|
(19
|
)
|
|
281
|
|
|
|
||||||||||||||
Equity investments
|
1,167
|
|
81
|
|
|
|
52
|
|
(258
|
)
|
|
|
|
|
|
1,042
|
|
$
|
18
|
|
|
|||||||||||||||
Residential mortgage
servicing rights |
1,297
|
|
41
|
|
|
|
66
|
|
|
$
|
12
|
|
(46
|
)
|
|
|
|
1,370
|
|
41
|
|
|
||||||||||||||
Commercial mortgage
servicing rights |
748
|
|
23
|
|
|
|
16
|
|
|
16
|
|
(37
|
)
|
|
|
|
766
|
|
23
|
|
|
|||||||||||||||
Trading securities
|
2
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
||||||||||||||||||||
Financial derivatives
|
16
|
|
9
|
|
|
|
|
|
|
(17
|
)
|
|
|
|
8
|
|
11
|
|
|
|||||||||||||||||
Other assets
|
63
|
|
(3
|
)
|
|
|
|
|
|
(2
|
)
|
|
|
|
58
|
|
(3
|
)
|
|
|||||||||||||||||
Total assets
|
$
|
6,474
|
|
$
|
176
|
|
|
$
|
(3
|
)
|
$
|
163
|
|
$
|
(277
|
)
|
$
|
28
|
|
$
|
(274
|
)
|
$
|
13
|
|
$
|
(31
|
)
|
|
$
|
6,269
|
|
$
|
90
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other borrowed funds
|
$
|
7
|
|
|
|
|
|
|
$
|
18
|
|
$
|
(16
|
)
|
|
|
|
$
|
9
|
|
|
|
||||||||||||||
Financial derivatives
|
384
|
|
$
|
26
|
|
|
|
|
$
|
5
|
|
|
(73
|
)
|
|
|
|
342
|
|
$
|
32
|
|
|
|||||||||||||
Other liabilities
|
47
|
|
4
|
|
|
|
|
|
58
|
|
(54
|
)
|
|
|
|
55
|
|
|
|
|||||||||||||||||
Total liabilities
|
$
|
438
|
|
$
|
30
|
|
|
|
|
$
|
5
|
|
$
|
76
|
|
$
|
(143
|
)
|
|
|
|
$
|
406
|
|
$
|
32
|
|
|
||||||||
Net gains (losses)
|
|
$
|
146
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
58
|
|
(d)
|
|
|
Total realized / unrealized
gains or losses for the period (a) |
|
|
|
|
|
|
|
|
Unrealized gains / losses on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2019 (a) (b)
|
|||||||||||||||||||||||||
Level 3 Instruments Only
In millions
|
Fair
Value Dec. 31, 2018 |
|
Included in
Earnings |
|
Included
in Other comprehensive income |
|
Purchases
|
|
Sales
|
|
Issuances
|
|
Settlements
|
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
|
Fair Value Sept. 30, 2019
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential mortgage loans
held for sale |
$
|
2
|
|
|
|
|
$
|
5
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
$
|
12
|
|
$
|
(13
|
)
|
|
$
|
4
|
|
|
|
||||||||
Commercial mortgage
loans held for sale |
87
|
|
$
|
2
|
|
|
|
|
|
|
(17
|
)
|
|
|
|
72
|
|
$
|
2
|
|
|
|||||||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential mortgage-
backed non-agency |
2,128
|
|
59
|
|
|
$
|
18
|
|
|
|
|
(352
|
)
|
|
|
|
1,853
|
|
|
|
||||||||||||||||
Asset-backed
|
274
|
|
4
|
|
|
6
|
|
1
|
|
|
|
(33
|
)
|
|
|
|
252
|
|
|
|
||||||||||||||||
Other
|
84
|
|
1
|
|
|
(4
|
)
|
8
|
|
(3
|
)
|
|
(9
|
)
|
|
|
|
77
|
|
|
|
|||||||||||||||
Total securities
available for sale |
2,486
|
|
64
|
|
|
20
|
|
9
|
|
(3
|
)
|
|
(394
|
)
|
|
|
|
2,182
|
|
|
|
|||||||||||||||
Loans
|
272
|
|
10
|
|
|
|
126
|
|
(18
|
)
|
|
(39
|
)
|
5
|
|
(27
|
)
|
|
329
|
|
6
|
|
|
|||||||||||||
Equity investments
|
1,255
|
|
104
|
|
|
|
260
|
|
(229
|
)
|
|
|
|
|
|
1,390
|
|
53
|
|
|
||||||||||||||||
Residential mortgage
servicing rights |
1,257
|
|
(362
|
)
|
|
|
87
|
|
|
$
|
23
|
|
(117
|
)
|
|
|
|
888
|
|
(353
|
)
|
|
||||||||||||||
Commercial mortgage
servicing rights |
726
|
|
(126
|
)
|
|
|
76
|
|
|
29
|
|
(110
|
)
|
|
|
|
595
|
|
(126
|
)
|
|
|||||||||||||||
Trading securities
|
2
|
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
||||||||||||||||||||
Financial derivatives
|
25
|
|
104
|
|
|
|
6
|
|
|
|
(45
|
)
|
|
|
|
90
|
|
100
|
|
|
||||||||||||||||
Other assets
|
45
|
|
|
|
|
|
|
|
(45
|
)
|
|
|
|
|
|
|
||||||||||||||||||||
Total assets
|
$
|
6,157
|
|
$
|
(204
|
)
|
|
$
|
20
|
|
$
|
569
|
|
$
|
(251
|
)
|
$
|
52
|
|
$
|
(770
|
)
|
$
|
17
|
|
$
|
(40
|
)
|
|
$
|
5,550
|
|
$
|
(318
|
)
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other borrowed funds
|
$
|
7
|
|
|
|
|
|
|
$
|
39
|
|
$
|
(40
|
)
|
|
|
|
$
|
6
|
|
|
|
||||||||||||||
Financial derivatives
|
268
|
|
$
|
58
|
|
|
|
|
$
|
5
|
|
|
(125
|
)
|
|
|
|
206
|
|
$
|
65
|
|
|
|||||||||||||
Other liabilities
|
58
|
|
34
|
|
|
|
$
|
16
|
|
2
|
|
66
|
|
(71
|
)
|
|
|
|
105
|
|
20
|
|
|
|||||||||||||
Total liabilities
|
$
|
333
|
|
$
|
92
|
|
|
|
$
|
16
|
|
$
|
7
|
|
$
|
105
|
|
$
|
(236
|
)
|
|
|
|
$
|
317
|
|
$
|
85
|
|
|
||||||
Net gains (losses)
|
|
$
|
(296
|
)
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
(403
|
)
|
(d)
|
|
|
Total realized / unrealized
gains or losses for the period (a) |
|
|
|
|
|
|
|
|
Unrealized gains/losses on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2018 (a) (b)
|
|||||||||||||||||||||||||
Level 3 Instruments Only
In millions
|
Fair
Value Dec. 31, 2017 |
|
Included in
Earnings |
|
Included
in Other comprehensive income |
|
Purchases
|
|
Sales
|
|
Issuances
|
|
Settlements
|
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
|
Fair Value Sept. 30, 2018
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential mortgage loans
held for sale |
$
|
3
|
|
|
|
|
$
|
4
|
|
$
|
(2
|
)
|
|
|
$
|
10
|
|
$
|
(12
|
)
|
|
$
|
3
|
|
|
|
||||||||||
Commercial mortgage
loans held for sale |
107
|
|
|
|
|
|
|
|
$
|
(18
|
)
|
|
|
|
89
|
|
|
|
||||||||||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential mortgage-
backed non-agency |
2,661
|
|
$
|
38
|
|
|
$
|
7
|
|
|
|
|
(438
|
)
|
|
|
|
2,268
|
|
|
|
|||||||||||||||
Asset-backed
|
332
|
|
2
|
|
|
1
|
|
|
|
|
(42
|
)
|
|
|
|
293
|
|
|
|
|||||||||||||||||
Other
|
87
|
|
5
|
|
|
8
|
|
6
|
|
|
|
(12
|
)
|
|
(5
|
)
|
|
89
|
|
|
|
|||||||||||||||
Total securities
available for sale |
3,080
|
|
45
|
|
|
16
|
|
6
|
|
|
|
(492
|
)
|
|
(5
|
)
|
|
2,650
|
|
|
|
|||||||||||||||
Loans
|
298
|
|
9
|
|
|
|
80
|
|
(27
|
)
|
|
(44
|
)
|
8
|
|
(43
|
)
|
|
281
|
|
$
|
1
|
|
|
||||||||||||
Equity investments
|
1,036
|
|
169
|
|
|
|
213
|
|
(376
|
)
|
|
|
|
|
|
1,042
|
|
77
|
|
|
||||||||||||||||
Residential mortgage
servicing rights |
1,164
|
|
188
|
|
|
|
113
|
|
|
$
|
35
|
|
(130
|
)
|
|
|
|
1,370
|
|
180
|
|
|
||||||||||||||
Commercial mortgage
servicing rights |
668
|
|
104
|
|
|
|
60
|
|
|
39
|
|
(105
|
)
|
|
|
|
766
|
|
104
|
|
|
|||||||||||||||
Trading securities
|
2
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
||||||||||||||||||||
Financial derivatives
|
10
|
|
33
|
|
|
|
2
|
|
|
|
(37
|
)
|
|
|
|
8
|
|
37
|
|
|
||||||||||||||||
Other assets
|
107
|
|
(5
|
)
|
|
|
|
|
|
(44
|
)
|
|
|
|
58
|
|
(5
|
)
|
|
|||||||||||||||||
Total assets
|
$
|
6,475
|
|
$
|
543
|
|
|
$
|
16
|
|
$
|
478
|
|
$
|
(405
|
)
|
$
|
74
|
|
$
|
(870
|
)
|
$
|
18
|
|
$
|
(60
|
)
|
|
$
|
6,269
|
|
$
|
394
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other borrowed funds
|
$
|
11
|
|
|
|
|
|
|
$
|
50
|
|
$
|
(52
|
)
|
|
|
|
$
|
9
|
|
|
|
||||||||||||||
Financial derivatives
|
487
|
|
$
|
3
|
|
|
|
|
$
|
10
|
|
|
(158
|
)
|
|
|
|
342
|
|
$
|
5
|
|
|
|||||||||||||
Other liabilities
|
33
|
|
9
|
|
|
|
$
|
12
|
|
|
92
|
|
(91
|
)
|
|
|
|
55
|
|
8
|
|
|
||||||||||||||
Total liabilities
|
$
|
531
|
|
$
|
12
|
|
|
|
|
$
|
12
|
|
$
|
10
|
|
$
|
142
|
|
$
|
(301
|
)
|
|
|
|
|
|
$
|
406
|
|
$
|
13
|
|
|
|||
Net gains (losses)
|
|
$
|
531
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
381
|
|
(d)
|
(a)
|
Losses for assets are bracketed while losses for liabilities are not.
|
(b)
|
The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period.
|
(c)
|
Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts were included in Interest income on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized were included in Noninterest income on the Consolidated Income Statement.
|
(d)
|
Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income on the Consolidated Income Statement.
|
Level 3 Instruments Only
Dollars in millions
|
Fair Value
|
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted-Average)
|
|
Commercial mortgage loans held for sale
|
$
|
87
|
|
Discounted cash flow
|
Spread over the benchmark curve (a)
|
535bps - 1,900bps (1,217bps)
|
Residential mortgage-backed
non-agency securities |
2,128
|
|
Priced by a third-party vendor using a discounted cash flow pricing model
|
Constant prepayment rate
|
1.0% - 33.0% (11.8%)
|
|
Constant default rate
|
0.0% - 18.8% (5.1%)
|
|||||
Loss severity
|
10.0% - 100.0% (50.8%)
|
|||||
Spread over the benchmark curve (a)
|
216bps weighted-average
|
|||||
Asset-backed securities
|
274
|
|
Priced by a third-party vendor using a discounted cash flow pricing model
|
Constant prepayment rate
|
1.0% - 19.0% (8.5%)
|
|
Constant default rate
|
1.0% - 18.5% (4.0%)
|
|||||
Loss severity
|
15.0% - 100.0% (63.8%)
|
|||||
Spread over the benchmark curve (a)
|
198bps weighted-average
|
|||||
Loans
|
129
|
|
Consensus pricing (b)
|
Cumulative default rate
|
11.0% - 100.0% (81.8%)
|
|
Loss severity
|
0.0% - 100.0% (17.2%)
|
|||||
Discount rate
|
5.5% - 8.3% (5.8%)
|
|||||
|
90
|
|
Discounted cash flow
|
Loss severity
|
8.0% weighted-average
|
|
Discount rate
|
5.8% weighted-average
|
|||||
|
53
|
|
Consensus pricing (b)
|
Credit and Liquidity discount
|
0.0% - 99.0% (61.3%)
|
|
Equity investments
|
1,255
|
|
Multiple of adjusted earnings
|
Multiple of earnings
|
4.5x - 16.0x (8.4x)
|
|
Residential mortgage servicing rights
|
1,257
|
|
Discounted cash flow
|
Constant prepayment rate
|
0.0% - 54.5% (8.7%)
|
|
Spread over the benchmark curve (a)
|
492bps - 1,455bps (806bps)
|
|||||
Commercial mortgage servicing rights
|
726
|
|
Discounted cash flow
|
Constant prepayment rate
|
4.6% - 14.7% (5.7%)
|
|
Discount rate
|
6.9% - 8.5% (8.4%)
|
|||||
Financial derivatives - Swaps related to
sales of certain Visa Class B common shares |
(210
|
)
|
Discounted cash flow
|
Estimated conversion factor of Visa Class B shares into Class A shares
|
163.0% weighted-average
|
|
Estimated annual growth rate of Visa Class A share price
|
16.0%
|
|||||
Estimated length of litigation
resolution date |
Q4 2020
|
|||||
Insignificant Level 3 assets, net of
liabilities (c) |
35
|
|
|
|
|
|
Total Level 3 assets, net of liabilities (d)
|
$
|
5,824
|
|
|
|
|
(a)
|
The assumed yield spread over the benchmark curve for each instrument is generally intended to incorporate non-interest rate risks, such as credit and liquidity risks.
|
(b)
|
Consensus pricing refers to fair value estimates that are generally internally developed using information such as dealer quotes or other third-party provided valuations or comparable asset prices.
|
(c)
|
Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain financial derivative assets and liabilities, trading securities, other securities, residential mortgage loans held for sale, other assets, other borrowed funds and other liabilities.
|
(d)
|
Consisted of total Level 3 assets of $5.5 billion and total Level 3 liabilities of $.3 billion as of September 30, 2019 and $6.1 billion and $.3 billion as of December 31, 2018, respectively.
|
|
Fair Value
|
|
Gains (Losses)
Three months ended
|
|
Gains (Losses)
Nine months ended |
|
||||||||||||||||||
In millions
|
September 30
2019 |
|
|
December 31
2018 |
|
|
September 30
2019 |
|
|
September 30
2018 |
|
|
September 30
2019 |
|
|
September 30
2018 |
|
|
||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nonaccrual loans
|
$
|
166
|
|
|
$
|
128
|
|
|
$
|
(22
|
)
|
|
$
|
(11
|
)
|
|
$
|
(55
|
)
|
|
$
|
(14
|
)
|
|
OREO and foreclosed assets
|
46
|
|
|
59
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
||||||
Long-lived assets
|
3
|
|
|
11
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
||||||
Total assets
|
$
|
215
|
|
|
$
|
198
|
|
|
$
|
(25
|
)
|
|
$
|
(14
|
)
|
|
$
|
(61
|
)
|
|
$
|
(17
|
)
|
|
(a)
|
All Level 3 for the periods presented.
|
(b)
|
Valuation techniques applied were fair value of property or collateral.
|
(c)
|
Unobservable inputs used were appraised value/sales price, broker opinions or projected income/required improvement costs. Additional quantitative information was not meaningful for the periods presented.
|
|
September 30, 2019
|
|
December 31, 2018
|
|
||||||||||||||||||||
In millions
|
Fair Value
|
|
|
Aggregate Unpaid
Principal Balance
|
|
|
Difference
|
|
|
Fair Value
|
|
|
Aggregate Unpaid
Principal Balance
|
|
|
Difference
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage loans held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Performing loans
|
$
|
780
|
|
|
$
|
759
|
|
|
$
|
21
|
|
|
$
|
489
|
|
|
$
|
472
|
|
|
$
|
17
|
|
|
Accruing loans 90 days or more past due
|
1
|
|
|
1
|
|
|
|
|
|
2
|
|
|
2
|
|
|
|
|
|
||||||
Nonaccrual loans
|
4
|
|
|
4
|
|
|
|
|
|
4
|
|
|
4
|
|
|
|
|
|||||||
Total
|
$
|
785
|
|
|
$
|
764
|
|
|
$
|
21
|
|
|
$
|
495
|
|
|
$
|
478
|
|
|
$
|
17
|
|
|
Commercial mortgage loans held for sale (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Performing loans
|
$
|
749
|
|
|
$
|
751
|
|
|
$
|
(2
|
)
|
|
$
|
396
|
|
|
$
|
411
|
|
|
$
|
(15
|
)
|
|
Nonaccrual loans
|
1
|
|
|
2
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|||||||||
Total
|
$
|
750
|
|
|
$
|
753
|
|
|
$
|
(3
|
)
|
|
$
|
396
|
|
|
$
|
411
|
|
|
$
|
(15
|
)
|
|
Residential mortgage loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Performing loans
|
$
|
318
|
|
|
$
|
333
|
|
|
$
|
(15
|
)
|
|
$
|
279
|
|
|
$
|
298
|
|
|
$
|
(19
|
)
|
|
Accruing loans 90 days or more past due
|
270
|
|
|
281
|
|
|
(11
|
)
|
|
321
|
|
|
329
|
|
|
(8
|
)
|
|
||||||
Nonaccrual loans
|
166
|
|
|
266
|
|
|
(100
|
)
|
|
182
|
|
|
292
|
|
|
(110
|
)
|
|
||||||
Total
|
$
|
754
|
|
|
$
|
880
|
|
|
$
|
(126
|
)
|
|
$
|
782
|
|
|
$
|
919
|
|
|
$
|
(137
|
)
|
|
Other assets
|
$
|
128
|
|
|
$
|
121
|
|
|
$
|
7
|
|
|
$
|
156
|
|
|
$
|
176
|
|
|
$
|
(20
|
)
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other borrowed funds
|
$
|
54
|
|
|
$
|
55
|
|
|
$
|
(1
|
)
|
|
$
|
64
|
|
|
$
|
65
|
|
|
$
|
(1
|
)
|
|
(a)
|
There were no accruing loans 90 days or more past due within this category at September 30, 2019 or December 31, 2018.
|
|
Gains (Losses)
|
|
Gains (Losses)
|
|
||||||||||||
|
Three months ended
|
|
Nine months ended
|
|
||||||||||||
|
September 30
|
|
|
September 30
|
|
|
September 30
|
|
|
September 30
|
|
|
||||
In millions
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage loans held for sale
|
$
|
29
|
|
|
$
|
13
|
|
|
$
|
63
|
|
|
$
|
25
|
|
|
Commercial mortgage loans held for sale
|
$
|
25
|
|
|
$
|
16
|
|
|
$
|
48
|
|
|
$
|
41
|
|
|
Residential mortgage loans
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
16
|
|
|
$
|
17
|
|
|
Other assets
|
$
|
3
|
|
|
$
|
(1
|
)
|
|
$
|
24
|
|
|
$
|
(11
|
)
|
|
(a)
|
The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.
|
|
Carrying
|
|
|
Fair Value
|
|
|||||||||||||||
In millions
|
Amount
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|||||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
5,671
|
|
|
$
|
5,671
|
|
|
$
|
5,671
|
|
|
|
|
|
|
||||
Interest-earning deposits with banks
|
19,036
|
|
|
19,036
|
|
|
|
|
$
|
19,036
|
|
|
|
|
||||||
Securities held to maturity
|
18,826
|
|
|
19,210
|
|
|
847
|
|
|
18,201
|
|
|
$
|
162
|
|
|
||||
Net loans (excludes leases)
|
226,595
|
|
|
229,838
|
|
|
|
|
|
|
229,838
|
|
|
|||||||
Other assets
|
8,143
|
|
|
8,143
|
|
|
|
|
8,142
|
|
|
1
|
|
|
||||||
Total assets
|
$
|
278,271
|
|
|
$
|
281,898
|
|
|
$
|
6,518
|
|
|
$
|
45,379
|
|
|
$
|
230,001
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
$
|
21,935
|
|
|
$
|
21,790
|
|
|
|
|
$
|
21,790
|
|
|
|
|
||||
Borrowed funds
|
60,534
|
|
|
60,904
|
|
|
|
|
59,141
|
|
|
$
|
1,763
|
|
|
|||||
Unfunded loan commitments and letters of credit
|
304
|
|
|
304
|
|
|
|
|
|
|
304
|
|
|
|||||||
Other liabilities
|
440
|
|
|
440
|
|
|
|
|
440
|
|
|
|
|
|||||||
Total liabilities
|
$
|
83,213
|
|
|
$
|
83,438
|
|
|
|
|
$
|
81,371
|
|
|
$
|
2,067
|
|
|
||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
5,608
|
|
|
$
|
5,608
|
|
|
$
|
5,608
|
|
|
|
|
|
|
||||
Interest-earning deposits with banks
|
10,893
|
|
|
10,893
|
|
|
|
|
$
|
10,893
|
|
|
|
|
||||||
Securities held to maturity
|
19,312
|
|
|
19,019
|
|
|
763
|
|
|
18,112
|
|
|
$
|
144
|
|
|
||||
Net loans (excludes leases)
|
215,525
|
|
|
216,492
|
|
|
|
|
|
|
216,492
|
|
|
|||||||
Other assets
|
11,065
|
|
|
11,065
|
|
|
|
|
11,060
|
|
|
5
|
|
|
||||||
Total assets
|
$
|
262,403
|
|
|
$
|
263,077
|
|
|
$
|
6,371
|
|
|
$
|
40,065
|
|
|
$
|
216,641
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
$
|
18,507
|
|
|
$
|
18,246
|
|
|
|
|
$
|
18,246
|
|
|
|
|
||||
Borrowed funds
|
56,412
|
|
|
56,657
|
|
|
|
|
54,872
|
|
|
$
|
1,785
|
|
|
|||||
Unfunded loan commitments and letters of credit
|
285
|
|
|
285
|
|
|
|
|
|
|
285
|
|
|
|||||||
Other liabilities
|
393
|
|
|
393
|
|
|
|
|
393
|
|
|
|
|
|||||||
Total liabilities
|
$
|
75,597
|
|
|
$
|
75,581
|
|
|
|
|
$
|
73,511
|
|
|
$
|
2,070
|
|
|
•
|
financial instruments recorded at fair value on a recurring basis (as they are disclosed in Table 49);
|
•
|
investments accounted for under the equity method;
|
•
|
equity securities without a readily determinable fair value that apply for the alternative measurement approach to fair value under ASU 2016-01;
|
•
|
real and personal property;
|
•
|
lease financing;
|
•
|
loan customer relationships;
|
•
|
deposit customer intangibles;
|
•
|
mortgage servicing rights (MSRs);
|
•
|
retail branch networks;
|
•
|
fee-based businesses, such as asset management and brokerage;
|
•
|
trademarks and brand names;
|
•
|
trade receivables and payables due in one year or less; and
|
•
|
deposit liabilities with no defined or contractual maturities under ASU 2016-01.
|
|
Commercial MSRs
|
|
Residential MSRs
|
|
||||||||||
In millions
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
||||
January 1
|
$
|
726
|
|
$
|
668
|
|
|
$
|
1,257
|
|
$
|
1,164
|
|
|
Additions:
|
|
|
|
|
|
|
||||||||
From loans sold with servicing retained
|
29
|
|
39
|
|
|
23
|
|
35
|
|
|
||||
Purchases
|
76
|
|
60
|
|
|
87
|
|
113
|
|
|
||||
Changes in fair value due to:
|
|
|
|
|
|
|
||||||||
Time and payoffs (a)
|
(110
|
)
|
(105
|
)
|
|
(117
|
)
|
(130
|
)
|
|
||||
Other (b)
|
(126
|
)
|
104
|
|
|
(362
|
)
|
188
|
|
|
||||
September 30
|
$
|
595
|
|
$
|
766
|
|
|
$
|
888
|
|
$
|
1,370
|
|
|
Related unpaid principal balance at September 30
|
$
|
203,808
|
|
$
|
174,664
|
|
|
$
|
122,886
|
|
$
|
127,099
|
|
|
Servicing advances at September 30
|
$
|
159
|
|
$
|
193
|
|
|
$
|
123
|
|
$
|
156
|
|
|
(a)
|
Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period.
|
(b)
|
Represents MSR value changes resulting primarily from market-driven changes in interest rates.
|
Dollars in millions
|
September 30
2019 |
|
|
December 31
2018 |
|
|
||
Fair value
|
$
|
595
|
|
|
$
|
726
|
|
|
Weighted-average life (years)
|
4.0
|
|
|
4.1
|
|
|
||
Weighted-average constant prepayment rate
|
4.60
|
%
|
|
5.65
|
%
|
|
||
Decline in fair value from 10% adverse change
|
$
|
8
|
|
|
$
|
10
|
|
|
Decline in fair value from 20% adverse change
|
$
|
16
|
|
|
$
|
19
|
|
|
Effective discount rate
|
7.88
|
%
|
|
8.39
|
%
|
|
||
Decline in fair value from 10% adverse change
|
$
|
15
|
|
|
$
|
19
|
|
|
Decline in fair value from 20% adverse change
|
$
|
30
|
|
|
$
|
39
|
|
|
Dollars in millions
|
September 30
2019 |
|
|
December 31
2018 |
|
|
||
Fair value
|
$
|
888
|
|
|
$
|
1,257
|
|
|
Weighted-average life (years)
|
4.3
|
|
|
6.9
|
|
|
||
Weighted-average constant prepayment rate
|
17.44
|
%
|
|
8.69
|
%
|
|
||
Decline in fair value from 10% adverse change
|
$
|
46
|
|
|
$
|
41
|
|
|
Decline in fair value from 20% adverse change
|
$
|
87
|
|
|
$
|
79
|
|
|
Weighted-average option adjusted spread
|
773
|
|
bps
|
806
|
|
bps
|
||
Decline in fair value from 10% adverse change
|
$
|
22
|
|
|
$
|
37
|
|
|
Decline in fair value from 20% adverse change
|
$
|
43
|
|
|
$
|
73
|
|
|
|
Qualified Pension Plan
|
|
|
Nonqualified Pension Plan
|
|
|
Postretirement Benefits
|
|
||||||||||||||||||
Three months ended September 30
In millions |
2019
|
|
|
2018
|
|
|
|
2019
|
|
|
2018
|
|
|
|
2019
|
|
|
2018
|
|
|
||||||
Net periodic cost consists of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
29
|
|
|
$
|
29
|
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Interest cost
|
46
|
|
|
43
|
|
|
|
3
|
|
|
2
|
|
|
|
3
|
|
|
3
|
|
|
||||||
Expected return on plan assets
|
(72
|
)
|
|
(76
|
)
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
|
||||||||
Amortization of prior service credit
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Amortization of actuarial losses
|
|
|
|
|
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|||||||||
Net periodic cost/(benefit)
|
$
|
4
|
|
|
$
|
(4
|
)
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
|
Qualified Pension Plan
|
|
|
Nonqualified Pension Plan
|
|
|
Postretirement Benefits
|
|
||||||||||||||||||
Nine months ended September 30
In millions |
2019
|
|
|
2018
|
|
|
|
2019
|
|
|
2018
|
|
|
|
2019
|
|
|
2018
|
|
|
||||||
Net periodic cost consists of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
86
|
|
|
$
|
87
|
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
Interest cost
|
139
|
|
|
128
|
|
|
|
8
|
|
|
7
|
|
|
|
10
|
|
|
9
|
|
|
||||||
Expected return on plan assets
|
(215
|
)
|
|
(229
|
)
|
|
|
|
|
|
|
|
(4
|
)
|
|
(4
|
)
|
|
||||||||
Amortization of prior service credit
|
3
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Amortization of actuarial losses
|
3
|
|
|
|
|
|
|
3
|
|
|
3
|
|
|
|
|
|
|
|
||||||||
Net periodic cost/(benefit)
|
$
|
16
|
|
|
$
|
(13
|
)
|
|
|
$
|
13
|
|
|
$
|
12
|
|
|
|
$
|
9
|
|
|
$
|
8
|
|
|
(a)
|
The service cost component is included in Personnel expense on the Consolidated Income Statement. All other components are included in Other noninterest expense on the Consolidated Income Statement.
|
|
September 30, 2019
|
December 31, 2018
|
||||||||||||||||
In millions
|
Notional /
Contract Amount
|
|
Asset Fair
Value (a)
|
|
Liability Fair
Value (b)
|
|
Notional /
Contract Amount
|
|
Asset Fair
Value (a)
|
|
Liability Fair
Value (b)
|
|
||||||
Derivatives used for hedging under GAAP
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts (c):
|
|
|
|
|
|
|
||||||||||||
Fair value hedges
|
$
|
31,474
|
|
|
|
$
|
30,919
|
|
$
|
7
|
|
|
|
|||||
Cash flow hedges
|
23,427
|
|
$
|
8
|
|
$
|
4
|
|
17,337
|
|
1
|
|
|
|
||||
Foreign exchange contracts:
|
|
|
|
|
|
|
||||||||||||
Net investment hedges
|
1,097
|
|
40
|
|
|
1,012
|
|
|
|
$
|
10
|
|
||||||
Total derivatives designated for hedging under GAAP
|
$
|
55,998
|
|
$
|
48
|
|
$
|
4
|
|
$
|
49,268
|
|
$
|
8
|
|
$
|
10
|
|
Derivatives not used for hedging under GAAP
|
|
|
|
|
|
|
||||||||||||
Derivatives used for mortgage banking activities (d):
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
||||||||||||
Swaps
|
$
|
50,776
|
|
$
|
9
|
|
$
|
3
|
|
$
|
43,084
|
|
|
|
$
|
3
|
|
|
Futures (e)
|
3,697
|
|
|
|
10,658
|
|
|
|
||||||||||
Mortgage-backed commitments
|
12,046
|
|
97
|
|
85
|
|
5,771
|
|
$
|
47
|
|
39
|
|
|||||
Other
|
6,867
|
|
54
|
|
40
|
|
6,509
|
|
10
|
|
3
|
|
||||||
Subtotal
|
73,386
|
|
160
|
|
128
|
|
66,022
|
|
57
|
|
45
|
|
||||||
Derivatives used for customer-related activities:
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
||||||||||||
Swaps
|
243,626
|
|
3,553
|
|
1,329
|
|
218,496
|
|
1,352
|
|
1,432
|
|
||||||
Futures (e)
|
704
|
|
|
|
914
|
|
|
|
||||||||||
Mortgage-backed commitments
|
5,615
|
|
6
|
|
6
|
|
2,246
|
|
7
|
|
10
|
|
||||||
Other
|
22,062
|
|
167
|
|
43
|
|
20,109
|
|
77
|
|
33
|
|
||||||
Subtotal
|
272,007
|
|
3,726
|
|
1,378
|
|
241,765
|
|
1,436
|
|
1,475
|
|
||||||
Commodity contracts:
|
|
|
|
|
|
|
||||||||||||
Swaps
|
4,619
|
|
242
|
|
239
|
|
4,813
|
|
244
|
|
238
|
|
||||||
Other
|
4,080
|
|
139
|
|
138
|
|
1,418
|
|
67
|
|
67
|
|
||||||
Subtotal
|
8,699
|
|
381
|
|
377
|
|
6,231
|
|
311
|
|
305
|
|
||||||
Foreign exchange contracts and other
|
25,491
|
|
270
|
|
253
|
|
23,253
|
|
194
|
|
192
|
|
||||||
Subtotal
|
306,197
|
|
4,377
|
|
2,008
|
|
271,249
|
|
1,941
|
|
1,972
|
|
||||||
Derivatives used for other risk management activities:
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts and other
|
11,372
|
|
53
|
|
192
|
|
7,908
|
|
75
|
|
263
|
|
||||||
Total derivatives not designated for hedging under GAAP
|
$
|
390,955
|
|
$
|
4,590
|
|
$
|
2,328
|
|
$
|
345,179
|
|
$
|
2,073
|
|
$
|
2,280
|
|
Total gross derivatives
|
$
|
446,953
|
|
$
|
4,638
|
|
$
|
2,332
|
|
$
|
394,447
|
|
$
|
2,081
|
|
$
|
2,290
|
|
Less: Impact of legally enforceable master netting agreements
|
|
890
|
|
890
|
|
|
688
|
|
688
|
|
||||||||
Less: Cash collateral received/paid
|
|
914
|
|
770
|
|
|
341
|
|
539
|
|
||||||||
Total derivatives
|
|
$
|
2,834
|
|
$
|
672
|
|
|
|
$
|
1,052
|
|
$
|
1,063
|
|
(a)
|
Included in Other assets on our Consolidated Balance Sheet.
|
(b)
|
Included in Other liabilities on our Consolidated Balance Sheet.
|
(c)
|
Represents primarily swaps.
|
(d)
|
Includes both residential and commercial mortgage banking activities.
|
(e)
|
Futures contracts settle in cash daily and, therefore, no derivative asset or derivative liability is recognized on our Consolidated Balance Sheet.
|
|
Location and Amount of Gains (Losses) Recognized in Income
|
|||||||||||
|
Interest Income
|
Interest Expense
|
Noninterest Income
|
|||||||||
In millions
|
Loans
|
Investment Securities
|
Borrowed Funds
|
Other
|
||||||||
For the three months ended September 30, 2019
|
|
|
|
|
||||||||
Total amounts on the Consolidated Income Statement
|
$
|
2,678
|
|
$
|
617
|
|
$
|
468
|
|
$
|
342
|
|
Gains (losses) on fair value hedges recognized on:
|
|
|
|
|
||||||||
Hedged items (c)
|
|
$
|
76
|
|
$
|
(271
|
)
|
|
||||
Derivatives
|
|
$
|
(73
|
)
|
$
|
235
|
|
|
||||
Amounts related to interest settlements on derivatives
|
|
$
|
4
|
|
$
|
16
|
|
|
||||
Gains (losses) on cash flow hedges (d):
|
|
|
|
|
||||||||
Amount of derivative gains (losses) reclassified from AOCI
|
$
|
2
|
|
$
|
3
|
|
|
|
|
|||
For the three months ended September 30, 2018
|
|
|
|
|
||||||||
Total amounts on the Consolidated Income Statement
|
$
|
2,452
|
|
$
|
584
|
|
$
|
421
|
|
$
|
301
|
|
Gains (losses) on fair value hedges recognized on:
|
|
|
|
|
||||||||
Hedged items (c)
|
|
$
|
(31
|
)
|
$
|
107
|
|
|
||||
Derivatives
|
|
$
|
30
|
|
$
|
(137
|
)
|
|
||||
Amounts related to interest settlements on derivatives
|
|
$
|
2
|
|
$
|
24
|
|
|
||||
Gains (losses) on cash flow hedges (d):
|
|
|
|
|
||||||||
Amount of derivative gains (losses) reclassified from AOCI
|
$
|
6
|
|
$
|
2
|
|
|
$
|
1
|
|
||
For the nine months ended September 30, 2019
|
|
|
|
|
||||||||
Total amounts on the Consolidated Income Statement
|
$
|
7,952
|
|
$
|
1,866
|
|
$
|
1,433
|
|
$
|
1,017
|
|
Gains (losses) on fair value hedges recognized on:
|
|
|
|
|
||||||||
Hedged items (c)
|
|
$
|
250
|
|
$
|
(1,068
|
)
|
|
||||
Derivatives
|
|
$
|
(241
|
)
|
$
|
948
|
|
|
||||
Amounts related to interest settlements on derivatives
|
|
$
|
14
|
|
$
|
36
|
|
|
||||
Gains (losses) on cash flow hedges (d):
|
|
|
|
|
||||||||
Amount of derivative gains (losses) reclassified from AOCI
|
$
|
(18
|
)
|
$
|
5
|
|
|
$
|
18
|
|
||
For the nine months ended September 30, 2018
|
|
|
|
|
||||||||
Total amounts on the Consolidated Income Statement
|
$
|
7,025
|
|
$
|
1,653
|
|
$
|
1,173
|
|
$
|
880
|
|
Gains (losses) on fair value hedges recognized on:
|
|
|
|
|
||||||||
Hedged items (c)
|
|
$
|
(145
|
)
|
$
|
577
|
|
|
||||
Derivatives
|
|
$
|
149
|
|
$
|
(632
|
)
|
|
||||
Amounts related to interest settlements on derivatives
|
|
|
|
$
|
57
|
|
|
|||||
Gains (losses) on cash flow hedges (d):
|
|
|
|
|
||||||||
Amount of derivative gains (losses) reclassified from AOCI
|
$
|
43
|
|
$
|
9
|
|
|
$
|
8
|
|
(a)
|
For all periods presented, there were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for any of the fair value or cash flow hedge strategies.
|
(b)
|
All cash flow and fair value hedge derivatives were interest rate contracts for the periods presented.
|
(c)
|
Includes an insignificant amount of fair value hedge adjustments primarily related to discontinued borrowed funds hedge relationships.
|
(d)
|
For all periods presented, there were no gains or losses from cash flow hedge derivatives reclassified to income because it became probable that the original forecasted transaction would not occur.
|
|
September 30, 2019
|
|
December 31, 2018
|
|||||||||||||
In millions
|
Carrying Value of the Hedged Items
|
|
|
Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a)
|
|
|
Carrying Value of the Hedged Items
|
|
|
Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a)
|
|
|
||||
Investment securities - available for sale (b)
|
$
|
6,787
|
|
|
$
|
132
|
|
|
$
|
6,216
|
|
|
$
|
(103
|
)
|
|
Borrowed funds
|
$
|
26,873
|
|
|
$
|
807
|
|
|
$
|
27,121
|
|
|
$
|
(260
|
)
|
|
(a)
|
Includes $(.3) billion and $(.5) billion of fair value hedge adjustments primarily related to discontinued borrowed funds hedge relationships for September 30, 2019 and December 31, 2018, respectively.
|
(b)
|
Carrying value shown represents amortized cost.
|
|
Three months ended
September 30 |
|
Nine months ended
September 30 |
|
||||||||||
In millions
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
||||
Derivatives used for mortgage banking activities:
|
|
|
|
|
|
|
||||||||
Interest rate contracts (a)
|
$
|
184
|
|
$
|
(34
|
)
|
|
$
|
530
|
|
$
|
(166
|
)
|
|
Derivatives used for customer-related activities:
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
45
|
|
15
|
|
|
84
|
|
96
|
|
|
||||
Foreign exchange contracts and other (b)
|
11
|
|
22
|
|
|
64
|
|
79
|
|
|
||||
Gains (losses) from customer-related activities (c)
|
56
|
|
37
|
|
|
148
|
|
175
|
|
|
||||
Derivatives used for other risk management activities:
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts and other (c)
|
103
|
|
(19
|
)
|
|
39
|
|
111
|
|
|
||||
Total gains (losses) from derivatives not designated as hedging instruments
|
$
|
343
|
|
$
|
(16
|
)
|
|
$
|
717
|
|
$
|
120
|
|
|
(a)
|
Included in Residential mortgage, Corporate services and Other noninterest income on our Consolidated Income Statement.
|
(b)
|
Includes an insignificant amount of gains (losses) on commodity contracts for all periods presented.
|
(c)
|
Included in Other noninterest income on our Consolidated Income Statement.
|
In millions
|
|
|
|
Amounts Offset on the
Consolidated Balance Sheet
|
|
|
|
|
|
Securities Collateral Held/Pledged Under Master Netting Agreements
|
|
|
|
|
|||||||||||||
Gross
Fair Value
|
|
|
Fair Value
Offset Amount
|
|
|
Cash
Collateral
|
|
|
Net
Fair Value
|
|
|
|
|
Net Amounts
|
|
|
|||||||||||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Over-the-counter cleared
|
|
$
|
24
|
|
|
|
|
|
|
$
|
24
|
|
|
|
|
|
|
$
|
24
|
|
|
||||||
Over-the-counter
|
|
3,870
|
|
|
$
|
399
|
|
|
$
|
848
|
|
|
2,623
|
|
|
|
|
$
|
297
|
|
|
2,326
|
|
|
|||
Commodity contracts
|
|
381
|
|
|
244
|
|
|
58
|
|
|
79
|
|
|
|
|
|
|
79
|
|
|
|||||||
Foreign exchange and other contracts
|
|
363
|
|
|
247
|
|
|
8
|
|
|
108
|
|
|
|
|
1
|
|
|
107
|
|
|
||||||
Total derivative assets
|
|
$
|
4,638
|
|
|
$
|
890
|
|
|
$
|
914
|
|
|
$
|
2,834
|
|
|
(a)
|
|
$
|
298
|
|
|
$
|
2,536
|
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Over-the-counter cleared
|
|
$
|
26
|
|
|
|
|
|
|
$
|
26
|
|
|
|
|
|
|
$
|
26
|
|
|
||||||
Over-the-counter
|
|
1,484
|
|
|
$
|
648
|
|
|
$
|
722
|
|
|
114
|
|
|
|
|
|
|
114
|
|
|
|||||
Commodity contracts
|
|
377
|
|
|
163
|
|
|
2
|
|
|
212
|
|
|
|
|
|
|
212
|
|
|
|||||||
Foreign exchange and other contracts
|
|
445
|
|
|
79
|
|
|
46
|
|
|
320
|
|
|
|
|
|
|
320
|
|
|
|||||||
Total derivative liabilities
|
|
$
|
2,332
|
|
|
$
|
890
|
|
|
$
|
770
|
|
|
$
|
672
|
|
|
(b)
|
|
|
|
|
$
|
672
|
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Over-the-counter cleared
|
|
$
|
29
|
|
|
|
|
|
|
$
|
29
|
|
|
|
|
|
|
$
|
29
|
|
|
||||||
Over-the-counter
|
|
1,472
|
|
|
$
|
450
|
|
|
$
|
117
|
|
|
905
|
|
|
|
|
$
|
25
|
|
|
880
|
|
|
|||
Commodity contracts
|
|
311
|
|
|
76
|
|
|
210
|
|
|
25
|
|
|
|
|
|
|
25
|
|
|
|||||||
Foreign exchange and other contracts
|
|
269
|
|
|
162
|
|
|
14
|
|
|
93
|
|
|
|
|
|
|
93
|
|
|
|||||||
Total derivative assets
|
|
$
|
2,081
|
|
|
$
|
688
|
|
|
$
|
341
|
|
|
$
|
1,052
|
|
|
(a)
|
|
$
|
25
|
|
|
$
|
1,027
|
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Over-the-counter cleared
|
|
$
|
24
|
|
|
|
|
|
|
$
|
24
|
|
|
|
|
|
|
$
|
24
|
|
|
||||||
Over-the-counter
|
|
1,496
|
|
|
$
|
557
|
|
|
$
|
489
|
|
|
450
|
|
|
|
|
$
|
11
|
|
|
439
|
|
|
|||
Commodity contracts
|
|
305
|
|
|
56
|
|
|
17
|
|
|
232
|
|
|
|
|
|
|
232
|
|
|
|||||||
Foreign exchange and other contracts
|
|
465
|
|
|
75
|
|
|
33
|
|
|
357
|
|
|
|
|
|
|
357
|
|
|
|||||||
Total derivative liabilities
|
|
$
|
2,290
|
|
|
$
|
688
|
|
|
$
|
539
|
|
|
$
|
1,063
|
|
|
(b)
|
|
$
|
11
|
|
|
$
|
1,052
|
|
|
(a)
|
Represents the net amount of derivative assets included in Other assets on our Consolidated Balance Sheet.
|
(b)
|
Represents the net amount of derivative liabilities included in Other liabilities on our Consolidated Balance Sheet.
|
|
|
Three months ended
September 30 |
|
Nine months ended
September 30 |
|
||||||||||||
In millions, except per share data
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
||||
Basic
|
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
1,392
|
|
|
$
|
1,400
|
|
|
$
|
4,037
|
|
|
$
|
3,995
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to noncontrolling interests
|
|
13
|
|
|
11
|
|
|
35
|
|
|
31
|
|
|
||||
Preferred stock dividends
|
|
63
|
|
|
63
|
|
|
181
|
|
|
181
|
|
|
||||
Preferred stock discount accretion and redemptions
|
|
1
|
|
|
1
|
|
|
3
|
|
|
3
|
|
|
||||
Net income attributable to common shareholders
|
|
1,315
|
|
|
1,325
|
|
|
3,818
|
|
|
3,780
|
|
|
||||
Less: Dividends and undistributed earnings allocated to participating securities
|
|
6
|
|
|
6
|
|
|
15
|
|
|
16
|
|
|
||||
Net income attributable to basic common shareholders
|
|
$
|
1,309
|
|
|
$
|
1,319
|
|
|
$
|
3,803
|
|
|
$
|
3,764
|
|
|
Basic weighted-average common shares outstanding
|
|
444
|
|
|
465
|
|
|
450
|
|
|
469
|
|
|
||||
Basic earnings per common share (a)
|
|
$
|
2.95
|
|
|
$
|
2.84
|
|
|
$
|
8.45
|
|
|
$
|
8.03
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to basic common shareholders
|
|
$
|
1,309
|
|
|
$
|
1,319
|
|
|
$
|
3,803
|
|
|
$
|
3,764
|
|
|
Less: Impact of BlackRock earnings per share dilution
|
|
2
|
|
|
2
|
|
|
7
|
|
|
7
|
|
|
||||
Net income attributable to diluted common shareholders
|
|
$
|
1,307
|
|
|
$
|
1,317
|
|
|
$
|
3,796
|
|
|
$
|
3,757
|
|
|
Basic weighted-average common shares outstanding
|
|
444
|
|
|
465
|
|
|
450
|
|
|
469
|
|
|
||||
Dilutive potential common shares
|
|
1
|
|
|
2
|
|
|
1
|
|
|
3
|
|
|
||||
Diluted weighted-average common shares outstanding
|
|
445
|
|
|
467
|
|
|
451
|
|
|
472
|
|
|
||||
Diluted earnings per common share (a)
|
|
$
|
2.94
|
|
|
$
|
2.82
|
|
|
$
|
8.42
|
|
|
$
|
7.96
|
|
|
(a)
|
Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares and restricted share units with nonforfeitable dividends and dividend rights (participating securities).
|
|
|
|
Shareholders’ Equity
|
|
|
|
|
||||||||||||||||||||||
in millions
|
Shares
Outstanding
Common
Stock
|
|
|
Common
Stock
|
|
Capital
Surplus -
Preferred
Stock
|
|
Capital
Surplus -
Common
Stock and
Other
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
|
Non-
controlling
Interests
|
|
Total Equity
|
|
|
||||||||
Three months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at June 30, 2018 (a)
|
465
|
|
|
$
|
2,710
|
|
$
|
3,987
|
|
$
|
12,263
|
|
$
|
37,201
|
|
$
|
(940
|
)
|
$
|
(8,317
|
)
|
|
$
|
71
|
|
$
|
46,975
|
|
|
Net income
|
|
|
|
|
|
1,389
|
|
|
|
|
11
|
|
1,400
|
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
(320
|
)
|
|
|
|
(320
|
)
|
|
|||||||||||||||
Cash dividends declared - Common
|
|
|
|
|
|
(446
|
)
|
|
|
|
|
(446
|
)
|
|
|||||||||||||||
Cash dividends declared - Preferred
|
|
|
|
|
|
(63
|
)
|
|
|
|
|
(63
|
)
|
|
|||||||||||||||
Preferred stock discount accretion
|
|
|
|
1
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
||||||||||||||
Common stock activity
|
|
|
|
|
1
|
|
|
|
|
|
|
1
|
|
|
|||||||||||||||
Treasury stock activity
|
(3
|
)
|
|
|
|
(5
|
)
|
|
|
(454
|
)
|
|
|
(459
|
)
|
|
|||||||||||||
Other
|
|
|
|
(6
|
)
|
58
|
|
|
|
|
|
(38
|
)
|
14
|
|
|
|||||||||||||
Balance at September 30, 2018 (a)
|
462
|
|
|
$
|
2,710
|
|
$
|
3,982
|
|
$
|
12,317
|
|
$
|
38,080
|
|
$
|
(1,260
|
)
|
$
|
(8,771
|
)
|
|
$
|
44
|
|
$
|
47,102
|
|
|
Balance at June 30, 2019 (a)
|
447
|
|
|
$
|
2,711
|
|
$
|
3,991
|
|
$
|
12,257
|
|
$
|
40,616
|
|
$
|
631
|
|
$
|
(10,866
|
)
|
|
$
|
41
|
|
$
|
49,381
|
|
|
Net income
|
|
|
|
|
|
1,379
|
|
|
|
|
13
|
|
1,392
|
|
|
||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
206
|
|
|
|
|
206
|
|
|
|||||||||||||||
Cash dividends declared - Common
|
|
|
|
|
|
(518
|
)
|
|
|
|
|
(518
|
)
|
|
|||||||||||||||
Cash dividends declared - Preferred
|
|
|
|
|
|
(63
|
)
|
|
|
|
|
(63
|
)
|
|
|||||||||||||||
Preferred stock discount accretion
|
|
|
|
1
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
||||||||||||||
Treasury stock activity
|
(8
|
)
|
|
|
|
(5
|
)
|
|
|
(972
|
)
|
|
|
(977
|
)
|
|
|||||||||||||
Other
|
|
|
|
|
53
|
|
|
|
|
|
(19
|
)
|
34
|
|
|
||||||||||||||
Balance at September 30, 2019 (a)
|
439
|
|
|
$
|
2,711
|
|
$
|
3,992
|
|
$
|
12,305
|
|
$
|
41,413
|
|
$
|
837
|
|
$
|
(11,838
|
)
|
|
$
|
35
|
|
$
|
49,455
|
|
|
Nine months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at December 31, 2017 (a)
|
473
|
|
|
$
|
2,710
|
|
$
|
3,985
|
|
$
|
12,389
|
|
$
|
35,481
|
|
$
|
(148
|
)
|
$
|
(6,904
|
)
|
|
$
|
72
|
|
$
|
47,585
|
|
|
Cumulative effect of ASU adoptions (b)
|
|
|
|
|
|
(22
|
)
|
6
|
|
|
|
|
(16
|
)
|
|
||||||||||||||
Balance at January 1, 2018 (a)
|
473
|
|
|
$
|
2,710
|
|
$
|
3,985
|
|
$
|
12,389
|
|
$
|
35,459
|
|
$
|
(142
|
)
|
$
|
(6,904
|
)
|
|
$
|
72
|
|
$
|
47,569
|
|
|
Net income
|
|
|
|
|
|
3,964
|
|
|
|
|
31
|
|
3,995
|
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
(1,118
|
)
|
|
|
|
(1,118
|
)
|
|
|||||||||||||||
Cash dividends declared - Common
|
|
|
|
|
|
(1,159
|
)
|
|
|
|
|
(1,159
|
)
|
|
|||||||||||||||
Cash dividends declared - Preferred
|
|
|
|
|
|
(181
|
)
|
|
|
|
|
(181
|
)
|
|
|||||||||||||||
Preferred stock discount accretion
|
|
|
|
3
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
||||||||||||||
Common stock activity
|
|
|
|
|
10
|
|
|
|
|
|
|
10
|
|
|
|||||||||||||||
Treasury stock activity
|
(11
|
)
|
|
|
|
(31
|
)
|
|
|
(1,867
|
)
|
|
|
(1,898
|
)
|
|
|||||||||||||
Other
|
|
|
|
(6
|
)
|
(51
|
)
|
|
|
|
|
(59
|
)
|
(116
|
)
|
|
|||||||||||||
Balance at September 30, 2018 (a)
|
462
|
|
|
$
|
2,710
|
|
$
|
3,982
|
|
$
|
12,317
|
|
$
|
38,080
|
|
$
|
(1,260
|
)
|
$
|
(8,771
|
)
|
|
$
|
44
|
|
$
|
47,102
|
|
|
Balance at December 31, 2018 (a)
|
457
|
|
|
$
|
2,711
|
|
$
|
3,986
|
|
$
|
12,291
|
|
$
|
38,919
|
|
$
|
(725
|
)
|
$
|
(9,454
|
)
|
|
$
|
42
|
|
$
|
47,770
|
|
|
Cumulative effect of ASU 2016-02 adoption (c)
|
|
|
|
|
|
62
|
|
|
|
|
|
62
|
|
|
|||||||||||||||
Balance at January 1, 2019 (a)
|
457
|
|
|
$
|
2,711
|
|
$
|
3,986
|
|
$
|
12,291
|
|
$
|
38,981
|
|
$
|
(725
|
)
|
$
|
(9,454
|
)
|
|
$
|
42
|
|
$
|
47,832
|
|
|
Net income
|
|
|
|
|
|
4,002
|
|
|
|
|
35
|
|
4,037
|
|
|
||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
1,562
|
|
|
|
|
1,562
|
|
|
|||||||||||||||
Cash dividends declared - Common
|
|
|
|
|
|
(1,386
|
)
|
|
|
|
|
(1,386
|
)
|
|
|||||||||||||||
Cash dividends declared - Preferred
|
|
|
|
|
|
(181
|
)
|
|
|
|
|
(181
|
)
|
|
|||||||||||||||
Preferred stock discount accretion
|
|
|
|
3
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
||||||||||||||
Common stock activity
|
|
|
|
|
10
|
|
|
|
|
|
|
10
|
|
|
|||||||||||||||
Treasury stock activity
|
(18
|
)
|
|
|
|
4
|
|
|
|
(2,384
|
)
|
|
|
(2,380
|
)
|
|
|||||||||||||
Other
|
|
|
|
3
|
|
|
|
|
|
|
(42
|
)
|
(39
|
)
|
|
||||||||||||||
Balance at September 30, 2019 (a)
|
439
|
|
|
$
|
2,711
|
|
$
|
3,992
|
|
$
|
12,305
|
|
$
|
41,413
|
|
$
|
837
|
|
$
|
(11,838
|
)
|
|
$
|
35
|
|
$
|
49,455
|
|
|
(a)
|
The par value of our preferred stock outstanding was less than $.5 million at each date and, therefore, is excluded from this presentation.
|
(b)
|
Represents the cumulative effect of adopting ASU 2014-09, ASU 2016-01, ASU 2017-12 and ASU 2018-02. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in our 2018 Form 10-K for additional detail on the adoption of these ASUs.
|
(c)
|
Represents the impact of the adoption of ASU 2016-02 related primarily to deferred gains on previous sale-leaseback transactions. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in the first quarter Form 10-Q for additional detail.
|
|
Three months ended
September 30 |
|
|
Nine months ended
September 30 |
|
||||||||||
In millions
|
2019
|
|
2018
|
|
|
|
2019
|
|
2018
|
|
|
||||
Net unrealized gains (losses) on non-OTTI securities
|
|
|
|
|
|
|
|
||||||||
Increase in net unrealized gains (losses) on non-OTTI securities
|
$
|
203
|
|
$
|
(323
|
)
|
|
|
$
|
1,556
|
|
$
|
(1,129
|
)
|
|
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest
income
|
3
|
|
3
|
|
|
|
9
|
|
9
|
|
|
||||
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income
|
4
|
|
(2
|
)
|
|
|
18
|
|
(13
|
)
|
|
||||
Net increase (decrease), pre-tax
|
196
|
|
(324
|
)
|
|
|
1,529
|
|
(1,125
|
)
|
|
||||
Effect of income taxes
|
(45
|
)
|
73
|
|
|
|
(351
|
)
|
259
|
|
|
||||
Net increase (decrease), after-tax
|
151
|
|
(251
|
)
|
|
|
1,178
|
|
(866
|
)
|
|
||||
Net unrealized gains (losses) on OTTI securities
|
|
|
|
|
|
|
|
||||||||
Increase in net unrealized gains (losses) on OTTI securities
|
18
|
|
(1
|
)
|
|
|
27
|
|
16
|
|
|
||||
Net increase (decrease), pre-tax
|
18
|
|
(1
|
)
|
|
|
27
|
|
16
|
|
|
||||
Effect of income taxes
|
(4
|
)
|
1
|
|
|
|
(6
|
)
|
(4
|
)
|
|
||||
Net increase (decrease), after-tax
|
14
|
|
—
|
|
|
|
21
|
|
12
|
|
|
||||
Net unrealized gains (losses) on cash flow hedge derivatives
|
|
|
|
|
|
|
|
||||||||
Increase in net unrealized gains (losses) on cash flow hedge derivatives
|
84
|
|
(62
|
)
|
|
|
438
|
|
(317
|
)
|
|
||||
Less: Net gains (losses) realized as a yield adjustment reclassified to loan interest income
|
2
|
|
6
|
|
|
|
(18
|
)
|
43
|
|
|
||||
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest
income
|
3
|
|
2
|
|
|
|
5
|
|
9
|
|
|
||||
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income
|
|
|
1
|
|
|
|
18
|
|
8
|
|
|
||||
Net increase (decrease), pre-tax
|
79
|
|
(71
|
)
|
|
|
433
|
|
(377
|
)
|
|
||||
Effect of income taxes
|
(18
|
)
|
17
|
|
|
|
(99
|
)
|
87
|
|
|
||||
Net increase (decrease), after-tax
|
61
|
|
(54
|
)
|
|
|
334
|
|
(290
|
)
|
|
||||
Pension and other postretirement benefit plan adjustments
|
|
|
|
|
|
|
|
||||||||
Net pension and other postretirement benefit activity
|
|
|
|
|
|
|
54
|
|
66
|
|
|
||||
Amortization of actuarial loss (gain) reclassified to other noninterest expense
|
1
|
|
1
|
|
|
|
6
|
|
3
|
|
|
||||
Amortization of prior service cost (credit) reclassified to other noninterest expense
|
1
|
|
|
|
|
|
3
|
|
1
|
|
|
||||
Net increase (decrease), pre-tax
|
2
|
|
1
|
|
|
|
63
|
|
70
|
|
|
||||
Effect of income taxes
|
|
|
|
|
|
(14
|
)
|
(16
|
)
|
|
|||||
Net increase (decrease), after-tax
|
2
|
|
1
|
|
|
|
49
|
|
54
|
|
|
||||
Other
|
|
|
|
|
|
|
|
||||||||
PNC’s portion of BlackRock’s OCI
|
(23
|
)
|
(22
|
)
|
|
|
(29
|
)
|
(37
|
)
|
|
||||
Net investment hedge derivatives
|
36
|
|
17
|
|
|
|
50
|
|
47
|
|
|
||||
Foreign currency translation adjustments and other
|
(32
|
)
|
(12
|
)
|
|
|
(36
|
)
|
(35
|
)
|
|
||||
Net increase (decrease), pre-tax
|
(19
|
)
|
(17
|
)
|
|
|
(15
|
)
|
(25
|
)
|
|
||||
Effect of income taxes
|
(3
|
)
|
1
|
|
|
|
(5
|
)
|
(3
|
)
|
|
||||
Net increase (decrease), after-tax
|
(22
|
)
|
(16
|
)
|
|
|
(20
|
)
|
(28
|
)
|
|
||||
Total other comprehensive income (loss), pre-tax
|
276
|
|
(412
|
)
|
|
|
2,037
|
|
(1,441
|
)
|
|
||||
Total other comprehensive income (loss), tax effect
|
(70
|
)
|
92
|
|
|
|
(475
|
)
|
323
|
|
|
||||
Total other comprehensive income (loss), after-tax
|
$
|
206
|
|
$
|
(320
|
)
|
|
|
$
|
1,562
|
|
$
|
(1,118
|
)
|
|
In millions, after-tax
|
Net unrealized gains (losses) on non-OTTI securities
|
|
|
Net unrealized gains (losses) on OTTI securities
|
|
|
Net unrealized gains (losses) on cash flow hedge derivatives
|
|
|
Pension and other postretirement benefit plan adjustments
|
|
|
Other
|
|
|
Total
|
|
|
||||||
Balance at June 30, 2018
|
$
|
(494
|
)
|
|
$
|
227
|
|
|
$
|
(52
|
)
|
|
$
|
(489
|
)
|
|
$
|
(132
|
)
|
|
$
|
(940
|
)
|
|
Net activity
|
(251
|
)
|
|
|
|
(54
|
)
|
|
1
|
|
|
(16
|
)
|
|
(320
|
)
|
|
|||||||
Balance at September 30, 2018
|
$
|
(745
|
)
|
|
$
|
227
|
|
|
$
|
(106
|
)
|
|
$
|
(488
|
)
|
|
$
|
(148
|
)
|
|
$
|
(1,260
|
)
|
|
Balance at June 30, 2019
|
$
|
743
|
|
|
$
|
211
|
|
|
$
|
320
|
|
|
$
|
(483
|
)
|
|
$
|
(160
|
)
|
|
$
|
631
|
|
|
Net activity
|
151
|
|
|
14
|
|
|
61
|
|
|
2
|
|
|
(22
|
)
|
|
206
|
|
|
||||||
Balance at September 30, 2019
|
$
|
894
|
|
|
$
|
225
|
|
|
$
|
381
|
|
|
$
|
(481
|
)
|
|
$
|
(182
|
)
|
|
$
|
837
|
|
|
Balance at December 31, 2017
|
$
|
62
|
|
|
$
|
215
|
|
|
$
|
151
|
|
|
$
|
(446
|
)
|
|
$
|
(130
|
)
|
|
$
|
(148
|
)
|
|
Cumulative effect of adopting ASU 2018-02 (a)
|
59
|
|
|
|
|
33
|
|
|
(96
|
)
|
|
10
|
|
|
6
|
|
|
|||||||
Balance at January 1, 2018
|
121
|
|
|
215
|
|
|
184
|
|
|
(542
|
)
|
|
(120
|
)
|
|
(142
|
)
|
|
||||||
Net activity
|
(866
|
)
|
|
12
|
|
|
(290
|
)
|
|
54
|
|
|
(28
|
)
|
|
(1,118
|
)
|
|
||||||
Balance at September 30, 2018
|
$
|
(745
|
)
|
|
$
|
227
|
|
|
$
|
(106
|
)
|
|
$
|
(488
|
)
|
|
$
|
(148
|
)
|
|
$
|
(1,260
|
)
|
|
Balance at December 31, 2018
|
$
|
(284
|
)
|
|
$
|
204
|
|
|
$
|
47
|
|
|
$
|
(530
|
)
|
|
$
|
(162
|
)
|
|
$
|
(725
|
)
|
|
Net activity
|
1,178
|
|
|
21
|
|
|
334
|
|
|
49
|
|
|
(20
|
)
|
|
1,562
|
|
|
||||||
Balance at September 30, 2019
|
$
|
894
|
|
|
$
|
225
|
|
|
$
|
381
|
|
|
$
|
(481
|
)
|
|
$
|
(182
|
)
|
|
$
|
837
|
|
|
(a)
|
Represents the cumulative impact of adopting ASU 2018-02 which permits the reclassification to retained earnings of the income tax effects stranded within AOCI. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in our 2018 Form 10-K for additional detail on this adoption.
|
|
Three months ended September 30
|
Nine months ended September 30
|
||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||
Common Stock
|
$
|
1.15
|
|
$
|
.95
|
|
$
|
3.05
|
|
$
|
2.45
|
|
Preferred Stock
|
|
|
|
|
||||||||
Series B
|
$
|
.45
|
|
$
|
.45
|
|
$
|
1.35
|
|
$
|
1.35
|
|
Series O
|
$
|
3,375
|
|
$
|
3,375
|
|
$
|
6,750
|
|
$
|
6,750
|
|
Series P
|
$
|
1,531
|
|
$
|
1,531
|
|
$
|
4,594
|
|
$
|
4,594
|
|
Series Q
|
$
|
1,343
|
|
$
|
1,343
|
|
$
|
4,031
|
|
$
|
4,031
|
|
Series R
|
|
|
$
|
2,425
|
|
$
|
2,425
|
|
||||
Series S
|
|
|
$
|
2,500
|
|
$
|
2,500
|
|
In millions
|
September 30
2019 |
|
|
December 31
2018 |
|
|
||
Commitments to extend credit
|
|
|
|
|
||||
Total commercial lending
|
$
|
129,787
|
|
|
$
|
120,165
|
|
|
Home equity lines of credit
|
16,881
|
|
|
16,944
|
|
|
||
Credit card
|
29,886
|
|
|
27,100
|
|
|
||
Other
|
6,527
|
|
|
5,069
|
|
|
||
Total commitments to extend credit
|
183,081
|
|
|
169,278
|
|
|
||
Net outstanding standby letters of credit (a)
|
9,763
|
|
|
8,655
|
|
|
||
Reinsurance agreements (b)
|
1,431
|
|
|
1,549
|
|
|
||
Standby bond purchase agreements (c)
|
1,302
|
|
|
1,000
|
|
|
||
Other commitments (d)
|
2,291
|
|
|
1,130
|
|
|
||
Total commitments to extend credit and other commitments
|
$
|
197,868
|
|
|
$
|
181,612
|
|
|
(a)
|
Net outstanding standby letters of credit include $4.1 billion and $3.7 billion at September 30, 2019 and December 31, 2018, respectively, which support remarketing programs.
|
(b)
|
Represents aggregate maximum exposure up to the specified limits of the reinsurance contracts provided by our wholly-owned captive insurance subsidiary. These amounts reflect estimates based on availability of financial information from insurance carriers. As of September 30, 2019, the aggregate maximum exposure amount comprised $1.3 billion for accidental death and dismemberment contracts, and $.1 billion for credit life, accident and health contracts. Comparable amounts at December 31, 2018 were $1.3 billion and $.2 billion, respectively.
|
(c)
|
We enter into standby bond purchase agreements to support municipal bond obligations.
|
(d)
|
Includes $.5 billion related to investments in qualified affordable housing projects at both September 30, 2019 and December 31, 2018.
|
•
|
Retail Banking
|
•
|
Corporate & Institutional Banking
|
•
|
Asset Management Group
|
•
|
BlackRock
|
Three months ended September 30
In millions |
|
Retail Banking
|
|
|
Corporate &
Institutional Banking |
|
|
Asset
Management Group |
|
|
BlackRock
|
|
|
Other
|
|
|
Consolidated (a)
|
|
||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
1,393
|
|
|
$
|
911
|
|
|
$
|
70
|
|
|
|
|
$
|
130
|
|
|
$
|
2,504
|
|
||
Noninterest income
|
|
744
|
|
|
654
|
|
|
216
|
|
|
$
|
251
|
|
|
124
|
|
|
1,989
|
|
|||||
Total revenue
|
|
2,137
|
|
|
1,565
|
|
|
286
|
|
|
251
|
|
|
254
|
|
|
4,493
|
|
||||||
Provision for credit losses (benefit)
|
|
147
|
|
|
48
|
|
|
(1
|
)
|
|
|
|
(11
|
)
|
|
183
|
|
|||||||
Depreciation and amortization
|
|
60
|
|
|
51
|
|
|
11
|
|
|
|
|
125
|
|
|
247
|
|
|||||||
Other noninterest expense
|
|
1,476
|
|
|
652
|
|
|
217
|
|
|
|
|
31
|
|
|
2,376
|
|
|||||||
Income before income taxes and noncontrolling interests
|
|
454
|
|
|
814
|
|
|
59
|
|
|
251
|
|
|
109
|
|
|
1,687
|
|
||||||
Income taxes (benefit)
|
|
107
|
|
|
169
|
|
|
13
|
|
|
40
|
|
|
(34
|
)
|
|
295
|
|
||||||
Net income
|
|
$
|
347
|
|
|
$
|
645
|
|
|
$
|
46
|
|
|
$
|
211
|
|
|
$
|
143
|
|
|
$
|
1,392
|
|
Average Assets (b)
|
|
$
|
93,222
|
|
|
$
|
168,193
|
|
|
$
|
7,331
|
|
|
$
|
8,321
|
|
|
$
|
129,642
|
|
|
$
|
406,709
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
1,305
|
|
|
$
|
903
|
|
|
$
|
71
|
|
|
|
|
$
|
187
|
|
|
$
|
2,466
|
|
||
Noninterest income
|
|
622
|
|
|
592
|
|
|
228
|
|
|
$
|
265
|
|
|
184
|
|
|
1,891
|
|
|||||
Total revenue
|
|
1,927
|
|
|
1,495
|
|
|
299
|
|
|
265
|
|
|
371
|
|
|
4,357
|
|
||||||
Provision for credit losses (benefit)
|
|
113
|
|
|
(13
|
)
|
|
2
|
|
|
|
|
(14
|
)
|
|
88
|
|
|||||||
Depreciation and amortization
|
|
52
|
|
|
47
|
|
|
13
|
|
|
|
|
112
|
|
|
224
|
|
|||||||
Other noninterest expense
|
|
1,462
|
|
|
651
|
|
|
212
|
|
|
|
|
59
|
|
|
2,384
|
|
|||||||
Income before income taxes and noncontrolling interests
|
|
300
|
|
|
810
|
|
|
72
|
|
|
265
|
|
|
214
|
|
|
1,661
|
|
||||||
Income taxes (benefit)
|
|
73
|
|
|
168
|
|
|
17
|
|
|
49
|
|
|
(46
|
)
|
|
261
|
|
||||||
Net income
|
|
$
|
227
|
|
|
$
|
642
|
|
|
$
|
55
|
|
|
$
|
216
|
|
|
$
|
260
|
|
|
$
|
1,400
|
|
Average Assets (b)
|
|
$
|
89,963
|
|
|
$
|
153,897
|
|
|
$
|
7,397
|
|
|
$
|
7,964
|
|
|
$
|
118,656
|
|
|
$
|
377,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine months ended September 30
In millions |
|
Retail
Banking |
|
|
Corporate &
Institutional Banking |
|
|
Asset
Management Group |
|
|
BlackRock
|
|
|
Other
|
|
|
Consolidated (a)
|
|
||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
4,118
|
|
|
$
|
2,685
|
|
|
$
|
208
|
|
|
|
|
$
|
466
|
|
|
$
|
7,477
|
|
||
Noninterest income
|
|
1,996
|
|
|
1,891
|
|
|
719
|
|
|
$
|
708
|
|
|
427
|
|
|
5,741
|
|
|||||
Total revenue
|
|
6,114
|
|
|
4,576
|
|
|
927
|
|
|
708
|
|
|
893
|
|
|
13,218
|
|
||||||
Provision for credit losses (benefit)
|
|
356
|
|
|
219
|
|
|
(2
|
)
|
|
|
|
(21
|
)
|
|
552
|
|
|||||||
Depreciation and amortization
|
|
170
|
|
|
151
|
|
|
51
|
|
|
|
|
366
|
|
|
738
|
|
|||||||
Other noninterest expense
|
|
4,361
|
|
|
1,936
|
|
|
656
|
|
|
|
|
121
|
|
|
7,074
|
|
|||||||
Income before income taxes and noncontrolling interests
|
|
1,227
|
|
|
2,270
|
|
|
222
|
|
|
708
|
|
|
427
|
|
|
4,854
|
|
||||||
Income taxes (benefit)
|
|
291
|
|
|
471
|
|
|
51
|
|
|
111
|
|
|
(107
|
)
|
|
817
|
|
||||||
Net income
|
|
$
|
936
|
|
|
$
|
1,799
|
|
|
$
|
171
|
|
|
$
|
597
|
|
|
$
|
534
|
|
|
$
|
4,037
|
|
Average Assets (b)
|
|
$
|
92,282
|
|
|
$
|
163,126
|
|
|
$
|
7,247
|
|
|
$
|
8,321
|
|
|
$
|
125,623
|
|
|
$
|
396,599
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
3,800
|
|
|
$
|
2,641
|
|
|
$
|
217
|
|
|
|
|
$
|
582
|
|
|
$
|
7,240
|
|
||
Noninterest income
|
|
1,935
|
|
|
1,774
|
|
|
676
|
|
|
$
|
732
|
|
|
435
|
|
|
5,552
|
|
|||||
Total revenue
|
|
5,735
|
|
|
4,415
|
|
|
893
|
|
|
732
|
|
|
1,017
|
|
|
12,792
|
|
||||||
Provision for credit losses (benefit)
|
|
254
|
|
|
43
|
|
|
2
|
|
|
|
|
(39
|
)
|
|
260
|
|
|||||||
Depreciation and amortization
|
|
144
|
|
|
140
|
|
|
38
|
|
|
|
|
372
|
|
|
694
|
|
|||||||
Other noninterest expense
|
|
4,347
|
|
|
1,879
|
|
|
643
|
|
|
|
|
156
|
|
|
7,025
|
|
|||||||
Income before income taxes and noncontrolling interests
|
|
990
|
|
|
2,353
|
|
|
210
|
|
|
732
|
|
|
528
|
|
|
4,813
|
|
||||||
Income taxes (benefit)
|
|
239
|
|
|
496
|
|
|
50
|
|
|
124
|
|
|
(91
|
)
|
|
818
|
|
||||||
Net income
|
|
$
|
751
|
|
|
$
|
1,857
|
|
|
$
|
160
|
|
|
$
|
608
|
|
|
$
|
619
|
|
|
$
|
3,995
|
|
Average Assets (b)
|
|
$
|
89,259
|
|
|
$
|
153,149
|
|
|
$
|
7,455
|
|
|
$
|
7,964
|
|
|
$
|
118,772
|
|
|
$
|
376,599
|
|
(a)
|
There were no material intersegment revenues for the three and nine months ended September 30, 2019 and 2018.
|
(b)
|
Period-end balances for BlackRock.
|
•
|
Wealth Management provides products and services to individuals and their families including investment and retirement planning, customized investment management, private banking, and trust management and administration for individuals and their families.
|
•
|
Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth clients.
|
•
|
Institutional asset management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement advisory services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.
|
|
Three months ended
September 30 |
Nine months ended
September 30 |
||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||
Product
|
|
|
|
|
||||||||
Deposit account fees
|
$
|
166
|
|
$
|
162
|
|
$
|
468
|
|
$
|
451
|
|
Debit card fees
|
139
|
|
130
|
|
399
|
|
374
|
|
||||
Brokerage fees
|
92
|
|
86
|
|
267
|
|
260
|
|
||||
Merchant services
|
55
|
|
54
|
|
159
|
|
156
|
|
||||
Net credit card fees (a)
|
50
|
|
45
|
|
149
|
|
139
|
|
||||
Other
|
65
|
|
71
|
|
193
|
|
214
|
|
||||
Total in-scope noninterest income by product
|
$
|
567
|
|
$
|
548
|
|
$
|
1,635
|
|
$
|
1,594
|
|
Reconciliation to total Retail Banking noninterest income
|
|
|
|
|
||||||||
Total in-scope noninterest income
|
$
|
567
|
|
$
|
548
|
|
$
|
1,635
|
|
$
|
1,594
|
|
Total out-of-scope noninterest income (b)
|
177
|
|
74
|
|
361
|
|
341
|
|
||||
Total Retail Banking noninterest income
|
$
|
744
|
|
$
|
622
|
|
$
|
1,996
|
|
$
|
1,935
|
|
(a)
|
Net credit card fees consists of interchange fees of $128 million and $115 million and credit card reward costs of $78 million and $70 million for the three months ended September 30, 2019 and 2018, respectively. Net credit card fees consists of interchange fees of $366 million and $332 million and credit card reward costs of $217 million and $193 million for the nine months ended September 30, 2019 and 2018, respectively.
|
(b)
|
Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606.
|
|
Three months ended
September 30 |
Nine months ended
September 30 |
||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||
Product
|
|
|
|
|
||||||||
Treasury management fees
|
$
|
210
|
|
$
|
196
|
|
$
|
621
|
|
$
|
578
|
|
Capital markets fees
|
131
|
|
147
|
|
407
|
|
397
|
|
||||
Commercial mortgage banking activities
|
26
|
|
23
|
|
75
|
|
65
|
|
||||
Other
|
17
|
|
16
|
|
53
|
|
51
|
|
||||
Total in-scope noninterest income by product
|
$
|
384
|
|
$
|
382
|
|
$
|
1,156
|
|
$
|
1,091
|
|
Reconciliation to total Corporate & Institutional Banking noninterest income
|
|
|
|
|
||||||||
Total in-scope noninterest income
|
$
|
384
|
|
$
|
382
|
|
$
|
1,156
|
|
$
|
1,091
|
|
Total out-of-scope noninterest income (a)
|
270
|
|
210
|
|
735
|
|
683
|
|
||||
Total Corporate & Institutional Banking noninterest income
|
$
|
654
|
|
$
|
592
|
|
$
|
1,891
|
|
$
|
1,774
|
|
(a)
|
Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606.
|
|
Three months ended
September 30 |
Nine months ended
September 30 |
||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||
Customer Type
|
|
|
|
|
||||||||
Personal
|
$
|
155
|
|
$
|
156
|
|
$
|
459
|
|
$
|
462
|
|
Institutional
|
58
|
|
70
|
|
187
|
|
206
|
|
||||
Total in-scope noninterest income by customer type
|
$
|
213
|
|
$
|
226
|
|
$
|
646
|
|
$
|
668
|
|
Reconciliation to Asset Management Group noninterest income
|
|
|
|
|
||||||||
Total in-scope noninterest income
|
$
|
213
|
|
$
|
226
|
|
$
|
646
|
|
$
|
668
|
|
Total out-of-scope noninterest income (a)
|
3
|
|
2
|
|
73
|
|
8
|
|
||||
Total Asset Management Group noninterest income
|
$
|
216
|
|
$
|
228
|
|
$
|
719
|
|
$
|
676
|
|
(a)
|
Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606.
|
In millions
|
September 30, 2019
|
|
||
Remainder of 2019
|
$
|
85
|
|
|
2020
|
352
|
|
|
|
2021
|
331
|
|
|
|
2022
|
297
|
|
|
|
2023
|
264
|
|
|
|
After 2023
|
1,098
|
|
|
|
Total operating lease payments
|
$
|
2,427
|
|
|
Less: Interest
|
263
|
|
|
|
Present value of operating lease liabilities
|
$
|
2,164
|
|
|
|
September 30, 2019
|
|
|
Weighted-average remaining lease term (years)
|
9
|
|
|
Weighted-average discount rate
|
2.46
|
%
|
|
|
Nine months ended September 30
|
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
||||||||||||||||||
Taxable-equivalent basis
Dollars in millions
|
Average Balances
|
|
|
Interest Income/
Expense
|
|
|
Average Yields/
Rates
|
|
|
Average
Balances
|
|
|
Interest Income/Expense
|
|
|
Average Yields/
Rates
|
|
|
||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
30,714
|
|
|
$
|
657
|
|
|
2.85
|
%
|
|
$
|
26,746
|
|
|
$
|
537
|
|
|
2.68
|
%
|
|
Non-agency
|
1,802
|
|
|
109
|
|
|
8.04
|
%
|
|
2,265
|
|
|
111
|
|
|
6.54
|
%
|
|
||||
Commercial mortgage-backed
|
5,549
|
|
|
127
|
|
|
3.05
|
%
|
|
4,449
|
|
|
92
|
|
|
2.75
|
%
|
|
||||
Asset-backed
|
5,247
|
|
|
131
|
|
|
3.33
|
%
|
|
5,260
|
|
|
123
|
|
|
3.12
|
%
|
|
||||
U.S. Treasury and government agencies
|
18,207
|
|
|
341
|
|
|
2.47
|
%
|
|
15,603
|
|
|
260
|
|
|
2.20
|
%
|
|
||||
Other
|
3,316
|
|
|
83
|
|
|
3.36
|
%
|
|
4,113
|
|
|
109
|
|
|
3.50
|
%
|
|
||||
Total securities available for sale
|
64,835
|
|
|
1,448
|
|
|
2.97
|
%
|
|
58,436
|
|
|
1,232
|
|
|
2.80
|
%
|
|
||||
Securities held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
15,582
|
|
|
340
|
|
|
2.91
|
%
|
|
15,578
|
|
|
337
|
|
|
2.88
|
%
|
|
||||
Commercial mortgage-backed
|
571
|
|
|
15
|
|
|
3.59
|
%
|
|
807
|
|
|
23
|
|
|
3.73
|
%
|
|
||||
Asset-backed
|
143
|
|
|
4
|
|
|
4.18
|
%
|
|
194
|
|
|
5
|
|
|
3.34
|
%
|
|
||||
U.S. Treasury and government agencies
|
765
|
|
|
16
|
|
|
2.84
|
%
|
|
747
|
|
|
16
|
|
|
2.83
|
%
|
|
||||
Other
|
1,823
|
|
|
61
|
|
|
4.41
|
%
|
|
1,894
|
|
|
61
|
|
|
4.42
|
%
|
|
||||
Total securities held to maturity
|
18,884
|
|
|
436
|
|
|
3.08
|
%
|
|
19,220
|
|
|
442
|
|
|
3.07
|
%
|
|
||||
Total investment securities
|
83,719
|
|
|
1,884
|
|
|
3.00
|
%
|
|
77,656
|
|
|
1,674
|
|
|
2.87
|
%
|
|
||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
123,069
|
|
|
3,919
|
|
|
4.20
|
%
|
|
112,907
|
|
|
3,363
|
|
|
3.93
|
%
|
|
||||
Commercial real estate
|
28,477
|
|
|
950
|
|
|
4.40
|
%
|
|
28,883
|
|
|
873
|
|
|
3.98
|
%
|
|
||||
Equipment lease financing
|
7,273
|
|
|
215
|
|
|
3.94
|
%
|
|
7,512
|
|
|
199
|
|
|
3.54
|
%
|
|
||||
Consumer
|
55,303
|
|
|
2,304
|
|
|
5.57
|
%
|
|
55,474
|
|
|
2,075
|
|
|
5.00
|
%
|
|
||||
Residential real estate
|
19,602
|
|
|
625
|
|
|
4.25
|
%
|
|
17,609
|
|
|
581
|
|
|
4.40
|
%
|
|
||||
Total loans
|
233,724
|
|
|
8,013
|
|
|
4.54
|
%
|
|
222,385
|
|
|
7,091
|
|
|
4.23
|
%
|
|
||||
Interest-earning deposits with banks
|
14,708
|
|
|
256
|
|
|
2.32
|
%
|
|
21,921
|
|
|
286
|
|
|
1.74
|
%
|
|
||||
Other interest-earning assets
|
12,780
|
|
|
354
|
|
|
3.70
|
%
|
|
7,305
|
|
|
259
|
|
|
4.74
|
%
|
|
||||
Total interest-earning assets/interest income
|
344,931
|
|
|
10,507
|
|
|
4.04
|
%
|
|
329,267
|
|
|
9,310
|
|
|
3.75
|
%
|
|
||||
Noninterest-earning assets
|
51,668
|
|
|
|
|
|
|
47,332
|
|
|
|
|
|
|
||||||||
Total assets
|
$
|
396,599
|
|
|
|
|
|
|
$
|
376,599
|
|
|
|
|
|
|
||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market
|
$
|
55,268
|
|
|
477
|
|
|
1.15
|
%
|
|
$
|
56,732
|
|
|
$
|
279
|
|
|
.66
|
%
|
|
|
Demand
|
64,459
|
|
|
265
|
|
|
.55
|
%
|
|
60,058
|
|
|
117
|
|
|
.26
|
%
|
|
||||
Savings
|
61,627
|
|
|
532
|
|
|
1.15
|
%
|
|
50,845
|
|
|
284
|
|
|
.75
|
%
|
|
||||
Time deposits
|
20,017
|
|
|
244
|
|
|
1.63
|
%
|
|
17,081
|
|
|
130
|
|
|
1.02
|
%
|
|
||||
Total interest-bearing deposits
|
201,371
|
|
|
1,518
|
|
|
1.01
|
%
|
|
184,716
|
|
|
810
|
|
|
.59
|
%
|
|
||||
Borrowed funds
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Home Loan Bank borrowings
|
23,368
|
|
|
467
|
|
|
2.63
|
%
|
|
21,067
|
|
|
342
|
|
|
2.14
|
%
|
|
||||
Bank notes and senior debt
|
26,571
|
|
|
675
|
|
|
3.35
|
%
|
|
28,352
|
|
|
594
|
|
|
2.76
|
%
|
|
||||
Subordinated debt
|
5,530
|
|
|
169
|
|
|
4.09
|
%
|
|
5,096
|
|
|
159
|
|
|
4.16
|
%
|
|
||||
Other
|
6,564
|
|
|
122
|
|
|
2.44
|
%
|
|
4,966
|
|
|
78
|
|
|
2.04
|
%
|
|
||||
Total borrowed funds
|
62,033
|
|
|
1,433
|
|
|
3.05
|
%
|
|
59,481
|
|
|
1,173
|
|
|
2.60
|
%
|
|
||||
Total interest-bearing liabilities/interest expense
|
263,404
|
|
|
2,951
|
|
|
1.48
|
%
|
|
244,197
|
|
|
1,983
|
|
|
1.08
|
%
|
|
||||
Noninterest-bearing liabilities and equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits
|
71,736
|
|
|
|
|
|
|
76,666
|
|
|
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
12,975
|
|
|
|
|
|
|
8,971
|
|
|
|
|
|
|
||||||||
Equity
|
48,484
|
|
|
|
|
|
|
46,765
|
|
|
|
|
|
|
||||||||
Total liabilities and equity
|
$
|
396,599
|
|
|
|
|
|
|
$
|
376,599
|
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
2.56
|
%
|
|
|
|
|
|
2.67
|
%
|
|
||||||||
Impact of noninterest-bearing sources
|
|
|
|
|
.35
|
|
|
|
|
|
|
.28
|
|
|
||||||||
Net interest income/margin
|
|
|
$
|
7,556
|
|
|
2.91
|
%
|
|
|
|
$
|
7,327
|
|
|
2.95
|
%
|
|
|
Three months ended September 30
|
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
||||||||||||||||||
Taxable-equivalent basis
Dollars in millions
|
Average
Balances
|
|
|
Interest Income/Expense
|
|
|
Average Yields/Rates
|
|
|
Average
Balances |
|
|
Interest Income/
Expense |
|
|
Average Yields/
Rates |
|
|
||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
32,926
|
|
|
$
|
223
|
|
|
2.70
|
%
|
|
$
|
28,241
|
|
|
$
|
194
|
|
|
2.76
|
%
|
|
Non-agency
|
1,716
|
|
|
38
|
|
|
8.89
|
%
|
|
2,128
|
|
|
38
|
|
|
7.18
|
%
|
|
||||
Commercial mortgage-backed
|
5,728
|
|
|
43
|
|
|
2.97
|
%
|
|
4,366
|
|
|
30
|
|
|
2.72
|
%
|
|
||||
Asset-backed
|
5,208
|
|
|
43
|
|
|
3.31
|
%
|
|
5,459
|
|
|
46
|
|
|
3.37
|
%
|
|
||||
U.S. Treasury and government agencies
|
17,573
|
|
|
109
|
|
|
2.44
|
%
|
|
16,757
|
|
|
96
|
|
|
2.25
|
%
|
|
||||
Other
|
3,053
|
|
|
26
|
|
|
3.41
|
%
|
|
3,996
|
|
|
34
|
|
|
3.28
|
%
|
|
||||
Total securities available for sale
|
66,204
|
|
|
482
|
|
|
2.90
|
%
|
|
60,947
|
|
|
438
|
|
|
2.86
|
%
|
|
||||
Securities held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
15,768
|
|
|
110
|
|
|
2.78
|
%
|
|
16,292
|
|
|
119
|
|
|
2.92
|
%
|
|
||||
Commercial mortgage-backed
|
544
|
|
|
5
|
|
|
3.68
|
%
|
|
715
|
|
|
7
|
|
|
3.71
|
%
|
|
||||
Asset-backed
|
79
|
|
|
1
|
|
|
5.48
|
%
|
|
189
|
|
|
2
|
|
|
3.65
|
%
|
|
||||
U.S. Treasury and government agencies
|
769
|
|
|
5
|
|
|
2.86
|
%
|
|
752
|
|
|
6
|
|
|
2.85
|
%
|
|
||||
Other
|
1,802
|
|
|
19
|
|
|
4.40
|
%
|
|
1,871
|
|
|
19
|
|
|
4.42
|
%
|
|
||||
Total securities held to maturity
|
18,962
|
|
|
140
|
|
|
2.98
|
%
|
|
19,819
|
|
|
153
|
|
|
3.10
|
%
|
|
||||
Total investment securities
|
85,166
|
|
|
622
|
|
|
2.91
|
%
|
|
80,766
|
|
|
591
|
|
|
2.92
|
%
|
|
||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
125,356
|
|
|
1,300
|
|
|
4.06
|
%
|
|
113,883
|
|
|
1,183
|
|
|
4.06
|
%
|
|
||||
Commercial real estate
|
28,855
|
|
|
325
|
|
|
4.40
|
%
|
|
28,860
|
|
|
302
|
|
|
4.10
|
%
|
|
||||
Equipment lease financing
|
7,272
|
|
|
70
|
|
|
3.82
|
%
|
|
7,202
|
|
|
68
|
|
|
3.78
|
%
|
|
||||
Consumer
|
55,702
|
|
|
787
|
|
|
5.61
|
%
|
|
55,449
|
|
|
722
|
|
|
5.17
|
%
|
|
||||
Residential real estate
|
20,497
|
|
|
216
|
|
|
4.21
|
%
|
|
17,948
|
|
|
199
|
|
|
4.45
|
%
|
|
||||
Total loans
|
237,682
|
|
|
2,698
|
|
|
4.47
|
%
|
|
223,342
|
|
|
2,474
|
|
|
4.36
|
%
|
|
||||
Interest-earning deposits with banks
|
15,632
|
|
|
85
|
|
|
2.17
|
%
|
|
19,151
|
|
|
95
|
|
|
1.97
|
%
|
|
||||
Other interest-earning assets
|
14,094
|
|
|
123
|
|
|
3.49
|
%
|
|
7,114
|
|
|
92
|
|
|
5.19
|
%
|
|
||||
Total interest-earning assets/interest income
|
352,574
|
|
|
3,528
|
|
|
3.95
|
%
|
|
330,373
|
|
|
3,252
|
|
|
3.89
|
%
|
|
||||
Noninterest-earning assets
|
54,135
|
|
|
|
|
|
|
47,504
|
|
|
|
|
|
|
||||||||
Total assets
|
$
|
406,709
|
|
|
|
|
|
|
$
|
377,877
|
|
|
|
|
|
|
||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market
|
$
|
56,271
|
|
|
162
|
|
|
1.14
|
%
|
|
$
|
55,507
|
|
|
$
|
112
|
|
|
.80
|
%
|
|
|
Demand
|
65,444
|
|
|
95
|
|
|
.58
|
%
|
|
60,138
|
|
|
49
|
|
|
.32
|
%
|
|
||||
Savings
|
64,054
|
|
|
185
|
|
|
1.14
|
%
|
|
52,919
|
|
|
122
|
|
|
.92
|
%
|
|
||||
Time deposits
|
21,173
|
|
|
89
|
|
|
1.66
|
%
|
|
17,756
|
|
|
53
|
|
|
1.18
|
%
|
|
||||
Total interest-bearing deposits
|
206,942
|
|
|
531
|
|
|
1.02
|
%
|
|
186,320
|
|
|
336
|
|
|
.71
|
%
|
|
||||
Borrowed funds
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Home Loan Bank borrowings
|
25,883
|
|
|
164
|
|
|
2.48
|
%
|
|
21,516
|
|
|
133
|
|
|
2.42
|
%
|
|
||||
Bank notes and senior debt
|
27,409
|
|
|
224
|
|
|
3.21
|
%
|
|
27,301
|
|
|
204
|
|
|
2.92
|
%
|
|
||||
Subordinated debt
|
5,189
|
|
|
45
|
|
|
3.53
|
%
|
|
5,253
|
|
|
54
|
|
|
4.10
|
%
|
|
||||
Other
|
5,452
|
|
|
35
|
|
|
2.43
|
%
|
|
5,768
|
|
|
30
|
|
|
2.11
|
%
|
|
||||
Total borrowed funds
|
63,933
|
|
|
468
|
|
|
2.87
|
%
|
|
59,838
|
|
|
421
|
|
|
2.76
|
%
|
|
||||
Total interest-bearing liabilities/interest expense
|
270,875
|
|
|
999
|
|
|
1.45
|
%
|
|
246,158
|
|
|
757
|
|
|
1.21
|
%
|
|
||||
Noninterest-bearing liabilities and equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits
|
72,149
|
|
|
|
|
|
|
76,155
|
|
|
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
14,529
|
|
|
|
|
|
|
8,853
|
|
|
|
|
|
|
||||||||
Equity
|
49,156
|
|
|
|
|
|
|
46,711
|
|
|
|
|
|
|
||||||||
Total liabilities and equity
|
$
|
406,709
|
|
|
|
|
|
|
$
|
377,877
|
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
2.50
|
%
|
|
|
|
|
|
2.68
|
%
|
|
||||||||
Impact of noninterest-bearing sources
|
|
|
|
|
.34
|
|
|
|
|
|
|
.31
|
|
|
||||||||
Net interest income/margin
|
|
|
$
|
2,529
|
|
|
2.84
|
%
|
|
|
|
$
|
2,495
|
|
|
2.99
|
%
|
|
(a)
|
Nonaccrual loans are included in loans, net of unearned income. The impact of financial derivatives used in interest rate risk management is included in the interest income/expense and average yields/rates of the related assets and liabilities. Basis adjustments related to hedged items are included in noninterest-earning assets and noninterest-bearing liabilities. Average balances of securities are based on amortized historical cost (excluding adjustments to fair value, which are included in other assets). Average balances for certain loans and borrowed funds accounted for at fair value are included in noninterest-earning assets and noninterest-bearing liabilities, with changes in fair value recorded in Noninterest income.
|
(b)
|
Loan fees for the three months ended September 30, 2019 and September 30, 2018 were $49 million and $34 million, respectively. Loan fees for the nine months ended September 30, 2019 and September 30, 2018 were $120 million and $99 million, respectfully.
|
(c)
|
Interest income calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income and yields for all interest-earning assets, as well as net interest margins, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP. See Reconciliation of Taxable-Equivalent Net Interest Income in this Statistical Information section for more information.
|
|
|
Nine months ended
|
Three months ended
|
||||||||||
In millions
|
|
September 30, 2019
|
|
September 30, 2018
|
|
September 30, 2019
|
|
September 30, 2018
|
|
||||
Net interest income (GAAP)
|
|
$
|
7,477
|
|
$
|
7,240
|
|
$
|
2,504
|
|
$
|
2,466
|
|
Taxable-equivalent adjustments
|
|
79
|
|
87
|
|
25
|
|
29
|
|
||||
Net interest income (Non-GAAP)
|
|
$
|
7,556
|
|
$
|
7,327
|
|
$
|
2,529
|
|
$
|
2,495
|
|
(a)
|
The interest income earned on certain interest-earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments.
|
2019 period
In thousands, except per share data |
Total shares purchased (a)
|
|
Average price paid per share
|
|
Total shares purchased as part of publicly announced programs (b)
|
|
Maximum number of shares that may yet be purchased under the programs (b)
|
|
|
July 1 - 31
|
2,364
|
|
$
|
140.77
|
|
2,358
|
|
97,642
|
|
August 1 – 31
|
3,588
|
|
$
|
129.28
|
|
3,588
|
|
94,054
|
|
September 1 – 30
|
1,512
|
|
$
|
135.09
|
|
1,512
|
|
92,542
|
|
Total
|
7,464
|
|
$
|
134.10
|
|
|
|
(a)
|
Includes PNC common stock purchased in connection with our various employee benefit plans generally related to shares used to cover employee payroll tax withholding requirements. Note 11 Employee Benefit Plans and Note 12 Stock Based Compensation Plans in the Notes To Consolidated Financial Statements of our 2018 Annual Report on Form 10-K include additional information regarding our employee benefit and equity compensation plans that use PNC common stock.
|
(b)
|
On April 4, 2019, our Board of Directors approved the establishment of a new stock repurchase program authorization in the amount of 100 million shares of PNC common stock, effective July 1, 2019. The previous 2015 authorization was terminated as of end of day on June 30, 2019. Repurchases are made in open market or privately negotiated transactions and the timing and exact amount of common stock repurchases will depend on a number of factors including, among others, market and general economic conditions, regulatory capital considerations, alternative uses of capital, the potential impact on our credit ratings, and contractual and regulatory limitations, including the results of the supervisory assessment of capital adequacy and capital planning processes undertaken by the Federal Reserve as part of the CCAR process. In June 2019, we announced share repurchase programs of up to $4.3 billion for the four quarter period beginning with the third quarter of 2019, in accordance with PNC's 2019 capital plan. In the third quarter of 2019, we repurchased 7.5 million shares of common stock on the open market, with an average price of $134.09 per share and an aggregate repurchase price of $1.0 billion.
|
/s/ Robert Q. Reilly
|
Robert Q. Reilly
|
Executive Vice President and Chief Financial Officer
|
(Principal Financial Officer)
|
A.
|
GRANT AND ACCEPTANCE OF PSUs
|
|
|
GRANTEE
|
[Name]
|
|
GRANT DATE
|
[Date]
|
|
AWARD
|
Performance share units (“PSUs”), each representing a right to receive one Share, and related Dividend Equivalents, payable in cash.
|
|
TARGET
|
[# Shares] PSUs and related Dividend Equivalents
|
|
PERFORMANCE PERIOD
|
January 1, 2019 - December 31, 2021
(other than limited exceptions in the event of death or a Change of Control, as described in Appendix C).
|
D.2
|
ACCRUED DIVIDEND EQUIVALENT PAYMENTS
|
(a) Generally. Accrued Dividend Equivalents will vest and be paid out in cash, less the payment of any applicable withholding taxes pursuant to Section 6 of Appendix A, if and when the Award vests and pays out (at which point such Dividend Equivalents will terminate). Dividend Equivalents are subject to the same vesting requirements and payout size adjustments as the Award. If the PSUs to which such Dividend Equivalents relate are forfeited and cancelled, such related Dividend Equivalents will also be forfeited and cancelled.
(b) Payment Upon a Change of Control. Accrual of Dividend Equivalents will cease as of the Change of Control. Upon a Change of Control, Dividend Equivalents accrued (without reinvestment or interest) between the Grant Date and the Change of Control will vest and be paid out in cash, less the payment of any applicable withholding taxes pursuant to Section 6 of Appendix A, if and when the Award vests and pays out, as if you were the record holder of the number of Shares equal to the number of vested Payout Share Units underlying the Award from the Grant Date through the date of the Change of Control.
|
E.
|
PAYMENT OF THE AWARD
|
|
E.1
|
PAYMENT TIMING
|
Except as otherwise provided below, vested Payout Share Units that remain outstanding will be settled as soon as practicable following the applicable Final Award Date (and no later than (x) December 31st following the year of death, in the event of your death, or (y) March 15th following the year the Award vests).
|
E.2
|
FORM OF PAYMENT; AMOUNT
|
(a) Payment Generally. Except as provided in subsection (b) below, your Final Award will be settled at the time set forth in Section E.1 by delivery to you of that number of whole Shares equal to the number of Payout Share Units under your Final Award, less the payment of any applicable withholding taxes pursuant to Section 6 of Appendix A.
(b) Payment On or After a Change of Control.
Upon vesting on or after a Change of Control, vested Payout Share Units will be settled at the time set forth in Section E.1 by payment to you of cash in an amount equal to that number of whole Shares equal to the number of vested Payout Share Units, multiplied by the then current Fair Market Value of a share of Common Stock on the date of the Change of Control (subject to any applicable adjustment pursuant to Section 2 of Appendix A), less the payment of any applicable withholding taxes pursuant to Section 6 of Appendix A. Related accrued Dividend Equivalent payments will be paid to you in cash as described in Section D.2(b).
No interest will be paid with respect to any such payments made pursuant to this Section E.
|
F.
|
RESTRICTIVE COVENANTS
|
Upon your acceptance of this Award, you shall become subject to the restrictive covenant provisions set forth in Section 1 of Appendix A.
|
G.
|
CLAWBACK
|
The Award, and any right to receive and retain any Shares (if applicable), cash or other value pursuant to the Award, is subject to rescission, cancellation or recoupment, in whole or in part, if and to the extent so provided under the Corporation’s Incentive Compensation Adjustment and Clawback Policy, as in effect from time to time with respect to the Award, or any other applicable clawback, adjustment or similar policy in effect on or established after the Grant Date and to any clawback or recoupment that may be required by applicable law or regulation.
By accepting this Award, you agree that you are obligated to provide all assistance necessary to the Corporation to recover or recoup the Shares, cash or other value pursuant to the Award which are subject to recovery or recoupment pursuant to applicable law, government regulation, stock exchange listing requirement or PNC policy. Such assistance shall include completing any documentation necessary to recover or recoup the Shares, cash or other value pursuant to the Award from any accounts you maintain with PNC or any pending or future compensation.
A copy of the Incentive Compensation Adjustment and Clawback Policy is included in the materials distributed to you with this Agreement.
|
|
|
|
1.
|
General Overview and Definitions
|
Performance-based vesting and payout of your Award is determined based on the level of satisfaction of three performance metrics during the Performance Period – two corporate performance metrics and one risk-related performance metric. These metrics are described in more detail in the paragraphs below.
“PNC” for purposes of this Appendix C as it refers to performance-based vesting conditions means the Corporation and its consolidated subsidiaries for financial reporting purposes.
Each performance metric will be measured or reviewed on an annual basis for each calendar year (i.e., calendar year 2019, calendar year 2020 and calendar year 2021) during the Performance Period (each, a “Performance Year”). A Performance Year may refer to a partial calendar year in certain limited circumstances (e.g., in connection with death or a Change of Control) as further described in this Appendix C.
The three performance metrics are:
1. Relative Average EPS Growth - Annual growth in earnings per share, measured for each Performance Year and then averaged for the Performance Period and compared to similar performance of other members of PNC’s Peer Group based on PNC’s percentile rank using a continuous percentile rank calculation (“Relative Average EPS Growth”), where for purposes of this definition:
a. “EPS” means the publicly-reported diluted earnings per share of PNC or other Peer Group members for the Performance Year, in each case as adjusted, on an after-tax basis, for the impact of the items set forth in paragraph 3 below (rounded to the nearest cent), and
b. “EPS Growth,” with respect to a given Performance Year, means the growth or decline in EPS achieved by PNC or other Peer Group members for that Performance Year as compared to EPS for the comparable period of the prior calendar year, expressed as a percentage (rounded to the nearest one-hundredth).
c. “Peer Group” refers to the Committee-determined peer group as of the Grant Date. Performance will be measured based on the Peer Group on the last day of the Performance Period, taking into account name changes and the elimination from the Peer Group of any members since the beginning of the Performance Period (e.g., due to consolidation or merger). In the event of a merger of two members of the Peer Group during the Performance Period, the resulting new company will be compared to the financial information of the acquiring member of the Peer Group (as determined on a corporate accounting basis.)
The Peer Group for this Award consists of the following members: PNC, Bank of America Corporation, BB&T Corporation, Capital One Financial Corporation, Citizens Financial Group, Inc., Fifth Third Bancorp, JPMorgan Chase & Co., KeyCorp, M&T Bank Corporation, Regions Financial Corporation, SunTrust Banks, Inc., U.S. Bancorp, and Wells Fargo & Company
2. Average ROE - Annual return on equity (“ROE”), with specified adjustments as described in paragraph 3, measured for each Performance Year and then averaged for the Performance Period (“Average ROE”) and compared to specified performance targets established by the Committee.
3. CET1 Ratio - Whether PNC has met or exceeded the common equity Tier 1 capital spot ratio limit as then in effect and applicable to The PNC Financial Services Group, Inc. (“CET1 Ratio”) (which may be on a pro forma fully phased-in basis, if applicable) as set forth in PNC’s Enterprise Capital Management Policy (or any successor policy) and monitored at least quarterly.
All performance metrics, including any adjustments, will be determined on the basis of:
(x) with respect to PNC’s absolute performance, PNC’s internal financial information;
(y) with respect to PNC’s relative performance to other members of the Peer Group, either publicly-disclosed financial information or, in the case of PNC, internal financial information that is anticipated to be publicly disclosed in an upcoming filing with the SEC; and
(z) with respect to other members of the Peer Group, publicly-disclosed financial information,
in each case, only where such amounts can be reasonably determined as of the date immediately prior to the date the Committee makes its determination as to the size of the payout.
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2.
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Calculating Corporate Performance Metrics
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(a) Calculating Average ROE. For each Performance Year, annual ROE (expressed as a percentage, rounded to the nearest one-hundredth) is calculated and adjusted for the items set forth in paragraph 3. At the end of the Performance Period, Average ROE is determined by calculating the average of PNC’s annual ROE for each Performance Year, then rounding to the nearest one-hundredth.
(b) Calculating Relative Average EPS Growth. Annual EPS Growth for PNC and each other member of the Peer Group is calculated for each Performance Year, adjusted for the items set forth in paragraph 3, expressed as a percentage and rounded to the nearest one-hundredth.
At the end of the Performance Period, the annual EPS Growth percentages for each Performance Year are averaged. PNC’s average EPS Growth is compared to the average of each other member of the Peer Group to determine PNC’s percentile rank, based on a continuous percentile rank calculation and expressed as a percentage (rounded to the nearest one-hundredth).
(c) Calculating the Corporate Performance Factor.
(i) Once the Average ROE and Relative Average EPS Growth are determined, a corporate performance factor, expressed as a percentage, is calculated using the table attached as Exhibit 1, applying bilinear interpolation and rounding to the nearest one-hundredth (such percentage, the “Corporate Performance Factor”). The Corporate Performance Factor will range from 0.00% to 150.00%. The Corporate Performance Factor may be adjusted by the Committee as described in paragraph 7.
(ii) In the event of your death or a Change of Control, the provisions of paragraph 8 will govern the calculation of the Corporate Performance Factor.
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3.
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Adjustments to Corporate Performance Metrics
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For purposes of measuring (a) EPS Growth performance for PNC and other members of the Peer Group or (b) ROE for PNC, earnings or EPS performance results, as applicable, will be adjusted, on an after-tax basis, for the impact of any of the following where such impact occurs during a given Performance Year (or, if applicable, during the prior year comparison period for a given year):
• discontinued operations (as such term is used under GAAP);
• acquisition costs and merger integration costs;
• in PNC’s case, the net impact on PNC of significant gains or losses related to BlackRock transactions; and
• items resulting from a change in U.S. federal tax law, which includes one-time adjustments to U.S. federal tax law (i.e., benefits or losses associated with the revaluation of assets or liabilities due to a change in tax law), but does not include (i) any going-forward changes to run rate income as a result of a change in U.S. federal tax law, to the extent such going-forward changes are reasonably determinable, or (ii) benefits or losses realized from the resolution of certain outstanding tax matters (e.g., court decision that reverses an earlier tax position) or changes in a company’s organizational tax structure.
In the case of the EPS growth metric and the ROE performance metric, there will be an additional adjustment to add the amount disclosed as provision for credit losses (or the equivalent) and subtract the amount disclosed as total net charge-offs.
In the case of the EPS growth metric, the impact of any stock splits (whether in the form of a stock split or a stock dividend) may result in an additional adjustment.
Adjustments will be made if the impact of such events occurs during a Performance Year (or partial year, if applicable), or, for purposes of determining EPS Growth, during the prior year comparison period for a Performance Year.
The Committee may also take into account other unusual or nonrecurring adjustments (applied on a consistent basis) in determining the Final Award.
After-tax adjustments for PNC and, where applicable, other members of the Peer Group, will be calculated using the same methodology for making such adjustments on an after-tax basis.
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6.
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Committee Discretion
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Notwithstanding the levels of corporate and risk performance achieved by PNC, the Committee may use its discretion to reduce or increase the number of Payout Share Units (including a reduction to zero) as it deems equitable to maintain the intended economics of the Award in light of changed circumstances.
Such circumstances are limited to external events affecting PNC, its financial statements or members of its Peer Group that are substantially outside of PNC’s control and could not reasonably be planned for as of the Grant Date.
Discretion in Connection with a Change of Control. The Committee will have no discretion to adjust the calculated maximum Payout Share Units following a Change of Control or during a Change of Control Coverage Period. In the event (a) your termination of employment with PNC is an Anticipatory Termination, (b) a Change of Control is pending, and (c) the Committee-determined Final Award Date occurs prior to the Change of Control, the Committee will have no discretion to adjust your calculated maximum Payout Share Units under these circumstances.
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7.
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Calculation of Payout Share Units and Determination of Final Award
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Following the end of the Performance Period, the Committee reviews performance against the performance metrics and makes its determination as to the Final Award, as follows:
(1) Application of Risk Performance Metric - The Committee first determines whether or not to reduce the target number of PSUs under the Award, based on the application of the risk performance metric, as follows:
(a) If PNC has met or exceeded the CET1 Ratio for each Performance Year, there is no reduction in the number of target PSUs under the Award.
(b) If PNC has not met the CET1 Ratio for any Performance Year, then for each Performance Year the CET1 Ratio was not met, the Committee can elect to reduce the target number of PSUs by one-third.
(2) Committee Review of Performance Factor - Next, the Committee determines whether to approve the calculated Corporate Performance Factor, a lower percentage or a higher percentage based on application of any risk-related adjustment (described in paragraph 5) or other Committee discretion consistent with paragraph 6.
(3) Final Award Determination - Once the Committee approves the final Corporate Performance Factor, it applies this percentage to (x) the target number of PSUs (as reduced for any failure to meet the CET1 Ratio during the Performance Period), and rounds down to the nearest whole share unit. The resulting amount is the number of Payout Share Units that are eligible to vest and be settled on the Final Award Date (i.e., the Final Award). In no event can the size of the Final Award be greater than 150.00% of the target number of PSUs.
(4) Special Rules Regarding the Final Award Date – The Final Award will become vested and payable as of the Final Award Date, which term is defined in Appendix B. The Final Award Date is typically the date on which the Committee makes its determination as to the size of the payout to be paid out to you, but:
• In the event of a Change of Control, the amount of Payout Share Units will be calculated (as of the date of the Change of Control) as described in paragraph 8 below and determination of the Final Award will be made as soon as practicable after the Change of Control.
• In the event of your death (prior to a Change of Control), the amount of Payout Share Units will be calculated as described in paragraph 8 below as soon as practicable following the calendar year of your death. In the event of your death following a Change of Control, the Payout Share Units and the Final Award Date will be determined as described above.
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9.
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Definition of Change of Control Coverage Period
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“Change of Control Coverage Period” means a period commencing on the occurrence of a Change of Control Triggering Event (defined below) and ending upon the earlier to occur of (a) the date of a Change of Control Failure (defined below) and (b) the date of a Change of Control. After the termination of any Change of Control Coverage Period, another Change of Control Coverage Period will commence upon the occurrence of another Change of Control Triggering Event.
For purposes of this definition:
• a “Change of Control Triggering Event” means the occurrence of either of the following: (i) the Board or the Corporation’s shareholders approve a Business Combination, other than an Excluded Combination (as defined in the definition of Change of Control in Appendix B), or (ii) the commencement of a proxy contest in which any Person seeks to replace or remove a majority of the members of the Board
• a “Change of Control Failure” means: (x) with respect to a Change of Control Triggering Event, the Corporation’s shareholders vote against the transaction approved by the Board or the agreement to consummate the transaction is terminated; or (y) with respect to a Change of Control Triggering Event described in clause (ii) of the definition above, the proxy contest fails to replace or remove a majority of the members of the Board.
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10.
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Committee Determination
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The Committee may make prospective adjustments to the Award. All determinations made by the Committee or otherwise by PNC hereunder shall be made in its sole discretion and shall be final, binding and conclusive for all purposes on all parties.
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E.2
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FORM OF PAYMENT; AMOUNT
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(a) Payment Generally.
Except as provided in subsection (b) below, vested RSUs will be settled at the time set forth in this Section E.1 by delivery to you of that number of whole Shares equal to the number of RSUs less the payment of any applicable withholding taxes pursuant to Section 6 of Appendix A.
(b) Payment On or After a Change of Control.
Upon vesting on or after a Change of Control, vested RSUs will be settled at the time set forth in Section E.1 by payment to you of cash in an amount equal to that number of whole Shares equal to the number of vested RSUs, multiplied by the then current Fair Market Value of a share of Common Stock on the date of the Change of Control (subject to any applicable adjustment pursuant to Section 2 of Appendix A), less the payment of any applicable withholding taxes pursuant to Section 6 of Appendix A. Related accrued Dividend Equivalent payments will be paid to you in cash as described in Section D.2(b).
No interest will be paid with respect to any such payments made pursuant to this Section E.
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F.
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RESTRICTIVE COVENANTS
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Upon your acceptance of this Award, you shall become subject to the restrictive covenant provisions set forth in Section 1 of Appendix A.
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G.
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CLAWBACK
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The Award, and any right to receive and retain any Shares (if applicable), cash or other value pursuant to the Award, is subject to rescission, cancellation or recoupment, in whole or in part, if and to the extent so provided under the Corporation’s Incentive Compensation Adjustment and Clawback Policy, as in effect from time to time with respect to the Award, or any other applicable clawback, adjustment or similar policy in effect on or established after the Grant Date and to any clawback or recoupment that may be required by applicable law or regulation.
By accepting this Award, you agree that you are obligated to provide all assistance necessary to the Corporation to recover or recoup the Shares, cash or other value pursuant to the Award which are subject to recovery or recoupment pursuant to applicable law, government regulation, stock exchange listing requirement or PNC policy. Such assistance shall include completing any documentation necessary to recover or recoup the Shares, cash or other value pursuant to the Award from any accounts you maintain with PNC or any pending or future compensation.
A copy of the Incentive Compensation Adjustment and Clawback Policy is included in the materials distributed to you with this Agreement.
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1.
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Generally
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The Award is divided into three Tranches, with the first Tranche relating to the 2019 performance year, the second Tranche relating to the 2020 performance year, and the third tranche relating to the 2021 performance year (each such year, a “Performance Year”).
Each Tranche must satisfy a risk-related performance metric based on whether PNC has met or exceeded the common equity Tier 1 capital spot ratio limit as then in effect and applicable to The PNC Financial Services Group, Inc. (“CET1 Ratio”) (which may be on a pro forma fully phased-in basis, if applicable) as set forth in PNC’s Enterprise Capital Management Policy (or any successor policy) and monitored at least quarterly.
“PNC” for purposes of this Appendix C as it refers to risk performance-based vesting conditions means the Corporation and its consolidated subsidiaries for financial reporting purposes.
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2.
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Applying the Risk Performance Metric
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(a) CET1 Ratio Generally. Each of Tranche is subject to a risk performance factor based on whether PNC has met or exceeded the CET1 Ratio as of the last day of each Performance Year. The current CET1 Ratio is 7.0%.
(b) Determination of Annual CET1 Ratio. As soon as practicable following the end of each Performance Year, PNC will present information to the Committee relating to (i) the CET1 Ratio compared to (ii) the actual CET1 Ratio achieved by PNC with respect to that Performance Year, based on PNC’s publicly reported financial results for the period ending on the applicable end date. Except as otherwise provided in paragraph 5 in the event of your death or a Change of Control, this will generally be the public release of earnings results for PNC’s fourth quarter that occurs after the year-end measurement date, so that the Committee will be able to make its determination in late January or early February following a Performance Year.
• If PNC meets or exceeds the CET1 Ratio for a Performance Year, the risk performance metric is satisfied.
• If PNC does not meet the CET1 Ratio for a Performance Year, the applicable Tranche is eligible for forfeiture as determined by the Committee prior to settlement of the Tranche.
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3.
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Risk Performance Review Adjustment
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In addition, and independent from the CET1 Ratio performance metric described in paragraph 2 above, with respect to each Tranche and prior to the settlement of that Tranche, the Committee has the discretion to conduct a risk performance review relating to a risk-related action of potentially material consequence to PNC.
If the Committee exercises its discretion to conduct a risk performance review, the Committee will review and determine if a downward adjustment for risk performance is appropriate for the applicable Tranche.
Any determination to conduct a risk performance review will be made shortly after the close of the Performance Year, but no later than the 45th day following the close of the Performance Year, and any required review will be conducted no later than two and a half-months after the close of the Performance Year.
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D.2
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ACCRUED DIVIDEND EQUIVALENT PAYMENTS
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(a) Generally. Accrued Dividend Equivalents will vest and be paid out in cash, less the payment of any applicable withholding taxes pursuant to Section 6 of Appendix A, if and when the applicable Tranche vests and pays out (at which point such Dividend Equivalents will terminate). Dividend Equivalents are subject to the same vesting requirements and payout size adjustments as the Tranche to which they relate. If the RSUs to which such Dividend Equivalents relate are forfeited and cancelled, such related Dividend Equivalents will also be forfeited and cancelled without payment of any consideration by PNC.
(b) Payment Upon a Change of Control. Accrual of Dividend Equivalents will cease as of the Change of Control. Upon a Change of Control, Dividend Equivalents accrued (without reinvestment or interest) between the Grant Date and the Change of Control will vest and be paid out in cash, less the payment of any applicable withholding taxes pursuant to Section 6 of Appendix A, if and when the applicable Tranche vests and pays out, as if you were the record holder of the number of Shares equal to the number of vested RSUs underlying such Tranche from the Grant Date through the date of the Change of Control.
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E.
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PAYMENT OF THE AWARD
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E.1
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PAYMENT TIMING
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Except as otherwise provided below, vested RSUs that remain outstanding will be settled as soon as practicable following (i) the applicable Scheduled Vesting Date (but no later than March 15th following the year the applicable Scheduled Vesting Date occurs), or (ii) your date of death, if your date of death is prior to the last Scheduled Vesting Date (but no later than December 31st of the year following the year of your death).
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E.2
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FORM OF PAYMENT; AMOUNT
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(a) Payment Generally.
Except as provided in subsection (b) below, vested RSUs will be settled at the time set forth in this Section E.1 by delivery to you of that number of whole Shares equal to the number of RSUs less the payment of any applicable withholding taxes pursuant to Section 6 of Appendix A.
(b) Payment On or After a Change of Control.
Upon vesting on or after a Change of Control, vested RSUs will be settled at the time set forth in Section E.1 by payment to you of cash in an amount equal to that number of whole Shares equal to the number of vested RSUs, multiplied by the then current Fair Market Value of a share of Common Stock on the date of the Change of Control (subject to any applicable adjustment pursuant to Section 2 of Appendix A), less the payment of any applicable withholding taxes pursuant to Section 6 of Appendix A. Related accrued Dividend Equivalent payments will be paid to you in cash as described in Section D.2(b).
No interest will be paid with respect to any such payments made pursuant to this Section E.
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F.
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RESTRICTIVE COVENANTS
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Upon your acceptance of this Award, you shall become subject to the restrictive covenant provisions set forth in Section 1 of Appendix A.
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G.
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CLAWBACK
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The Award, and any right to receive and retain any Shares (if applicable), cash or other value pursuant to the Award, is subject to rescission, cancellation or recoupment, in whole or in part, if and to the extent so provided under the Corporation’s Incentive Compensation Adjustment and Clawback Policy, as in effect from time to time with respect to the Award, or any other applicable clawback, adjustment or similar policy in effect on or established after the Grant Date and to any clawback or recoupment that may be required by applicable law or regulation.
By accepting this Award, you agree that you are obligated to provide all assistance necessary to the Corporation to recover or recoup the Shares, cash or other value pursuant to the Award which are subject to recovery or recoupment pursuant to applicable law, government regulation, stock exchange listing requirement or PNC policy. Such assistance shall include completing any documentation necessary to recover or recoup the Shares, cash or other value pursuant to the Award from any accounts you maintain with PNC or any pending or future compensation.
A copy of the Incentive Compensation Adjustment and Clawback Policy is included in the materials distributed to you with this Agreement.
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1.
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Generally
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The Award is divided into three Tranches, with the first Tranche relating to the 2019 performance year, the second Tranche relating to the 2020 performance year, and the third tranche relating to the 2021 performance year (each such year, a “Performance Year”).
Each Tranche must satisfy a risk-related performance metric based on whether PNC has met or exceeded the common equity Tier 1 capital spot ratio limit as then in effect and applicable to The PNC Financial Services Group, Inc. (“CET1 Ratio”) (which may be on a pro forma fully phased-in basis, if applicable) as set forth in PNC’s Enterprise Capital Management Policy (or any successor policy) and monitored at least quarterly. Each Tranche of the Award will also be subject to an annual risk review based on business unit financial performance (or at the discretion of the Committee).
“PNC” for purposes of this Appendix C as it refers to risk performance-based vesting conditions means the Corporation and its consolidated subsidiaries for financial reporting purposes.
All performance metrics, including any adjustments, will be determined on the basis of PNC’s internal financial information as of the date immediately prior to the date the Committee certifies this metric for PNC’s corporate executive group and only where such amounts can be reasonably determined.
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2.
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Applying the Risk Performance Metric
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(a) CET1 Ratio Generally. Each Tranche is subject to a risk performance factor based on whether PNC has met or exceeded the CET1 Ratio as of the last day of each Performance Year. The current CET1 Ratio is 7.0%.
(b) Determination of Annual CET1 Ratio. As soon as practicable following the end of each Performance Year, PNC will present information to the Committee relating to (i) the CET1 Ratio compared to (ii) the actual CET1 Ratio achieved by PNC with respect to that Performance Year, based on PNC’s publicly reported financial results for the period ending on the applicable end date. Except as otherwise provided in paragraph 5 in the event of your death or a Change of Control, this will generally be the public release of earnings results for PNC’s fourth quarter that occurs after the year-end measurement date, so that the Committee will be able to make its determination in late January or early February following a Performance Year.
• If PNC meets or exceeds the CET1 Ratio for a Performance Year, the risk performance metric is satisfied.
• If PNC does not meet the CET1 Ratio for a Performance Year, the applicable Tranche is eligible for forfeiture as determined by the Committee prior to settlement of the Tranche.
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3.
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Risk Performance Review Adjustments
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In addition, and independent from the CET1 Ratio performance metric described in paragraph 2 above, with respect to each Tranche and prior to the settlement of that Tranche, the Committee conducts a risk performance review either (1) as a result of business unit financial performance (as described below) or (2) at the discretion of the Committee, relating to a risk-related action of potentially material consequence to PNC.
A risk performance review is triggered under (1) above if (a) one of the specific business unit or enterprise level review triggers set forth below is met and (b) that review trigger is applicable to you because either it (i) applies to your business unit or functional area as of the Grant Date and the Committee has not determined in its discretion to apply a different review trigger to you for the Performance Year, or (ii) the Committee has determined in its discretion to apply such specific business unit or enterprise level review trigger to you for the Performance Year.
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The specific business unit or enterprise level review triggers are as follows:
• PNC’s Retail Banking segment reports a loss for the Performance Year
• PNC’s Corporate & Institutional Banking segment reports a loss for the Performance Year
• PNC’s Asset Management Group segment reports a loss for the Performance Year
If you are not assigned to one of the above-named business units as of the Grant Date, the review trigger will be applicable to you only in the event the Committee determines in its discretion to apply such review trigger, as described in (ii) above. If your affiliated business unit or functional area as of the Grant Date is eliminated or no longer reportable due to restructuring or other business reason, the specific review trigger applicable to you will be based on your newly assigned business unit or functional area.
For purposes of this Agreement, whether or not a specified business unit has a loss for a given Performance Year will be determined on the basis of the reported earnings or loss, as the case may be, of the reportable business segment that includes the results of such business unit, based on PNC’s publicly reported financial results for that year.
If a risk performance review is triggered as a result of business financial performance under (1) or if the Committee exercises its discretion to conduct a risk performance review under (2) above, the Committee will review and determine if a downward adjustment for risk performance is appropriate either for the applicable Tranche or to a specific Grantee.
Any determination to conduct a risk performance review will be made shortly after the close of the Performance Year, but no later than the 45th day following the close of the Performance Year, and any required review will be conducted no later than two and a half-months after the close of the Performance Year.
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1.
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I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 of The PNC Financial Services Group, Inc.;
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2.
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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;
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3.
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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;
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4.
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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 15d-15(f)) for the registrant and have:
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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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):
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a)
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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
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b)
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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.
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/s/ William S. Demchak
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William S. Demchak
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Chairman, President and Chief Executive Officer
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1.
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I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 of The PNC Financial Services Group, Inc.;
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2.
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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;
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3.
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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;
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4.
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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 15d-15(f)) for the registrant and have:
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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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):
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a)
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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
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b)
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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.
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/s/ Robert Q. Reilly
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Robert Q. Reilly
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Executive Vice President and Chief Financial Officer
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/s/ William S. Demchak
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William S. Demchak
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Chairman, President and Chief Executive Officer
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/s/ Robert Q. Reilly
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Robert Q. Reilly
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Executive Vice President and Chief Financial Officer
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