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Georgia
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58-1575035
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(State or other jurisdiction
of incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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Page
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Glossary of Defined Terms
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i - iii
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iii
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Item 1.
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FINANCIAL STATEMENTS (UNAUDITED)
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For the Three Months Ended June 30
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For the Six Months Ended June 30
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||||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited)
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2012
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2011
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2012
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2011
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||||||||
Interest Income
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|
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||||||||
Interest and fees on loans
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$1,263
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$1,299
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$2,563
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$2,613
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Interest and fees on loans held for sale
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31
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22
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55
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50
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||||
Interest and dividends on securities available for sale:
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||||||||
Taxable interest
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153
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177
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322
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342
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Tax-exempt interest
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4
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6
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8
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11
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||||
Dividends
1
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23
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21
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45
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41
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||||
Trading account interest and other
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18
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21
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33
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43
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||||
Total interest income
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1,492
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1,546
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3,026
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3,100
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||||
Interest Expense
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||||||||
Interest on deposits
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118
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162
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245
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331
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||||
Interest on long-term debt
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90
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113
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178
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237
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||||
Interest on other borrowings
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10
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12
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18
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24
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||||
Total interest expense
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218
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287
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441
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592
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Net interest income
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1,274
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1,259
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2,585
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2,508
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Provision for credit losses
|
300
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392
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617
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839
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Net interest income after provision for credit losses
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974
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867
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1,968
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1,669
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||||
Noninterest Income
|
|
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||||||||
Service charges on deposit accounts
|
167
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170
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332
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333
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Trust and investment management income
|
130
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135
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260
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270
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Other charges and fees
|
130
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130
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245
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256
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Mortgage production related income
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103
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4
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166
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3
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Mortgage servicing related income
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70
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72
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151
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144
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Investment banking income
|
75
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95
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147
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162
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||||
Trading income
|
70
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53
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127
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105
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Card fees
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66
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105
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127
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205
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Retail investment services
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62
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59
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120
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117
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Net securities gains
2
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14
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32
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32
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96
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Other noninterest income
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53
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57
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109
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104
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||||
Total noninterest income
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940
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912
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1,816
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1,795
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Noninterest Expense
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||||||||
Employee compensation
|
654
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638
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1,306
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1,256
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Employee benefits
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108
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110
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254
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246
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Outside processing and software
|
180
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162
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356
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320
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Net occupancy expense
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88
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89
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176
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178
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Operating losses
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69
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62
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129
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89
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Credit and collection services
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61
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60
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116
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111
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Regulatory assessments
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60
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81
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111
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152
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Other real estate expense
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52
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64
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103
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133
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Equipment expense
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46
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44
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91
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88
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Marketing and customer development
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32
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46
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59
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84
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Net loss/(gain) on debt extinguishment
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13
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(1
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)
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13
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(2
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)
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Amortization of intangible assets
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11
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12
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22
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23
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Other noninterest expense
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172
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175
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351
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329
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Total noninterest expense
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1,546
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1,542
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3,087
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3,007
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Income before provision for income taxes
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368
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237
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697
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457
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Provision for income taxes
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91
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58
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160
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91
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||||
Net income including income attributable to noncontrolling interest
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277
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|
|
179
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|
537
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|
366
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||||
Net income attributable to noncontrolling interest
|
2
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|
1
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|
12
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8
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|
||||
Net income
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$275
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$178
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$525
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$358
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Net income available to common shareholders
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$270
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$174
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$515
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$212
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Net income per average common share:
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Diluted
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$0.50
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$0.33
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$0.96
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$0.41
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Basic
|
0.51
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0.33
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0.97
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0.41
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Dividends declared per common share
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0.05
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0.01
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0.10
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0.02
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Average common shares - diluted
|
537,495
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535,416
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536,951
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519,548
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|
||||
Average common shares - basic
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533,964
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531,792
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533,532
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515,819
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For the Three Months Ended June 30
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For the Six Months Ended June 30
|
||||||||||||
(Dollars in millions) (Unaudited)
|
2012
|
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2011
|
|
2012
|
|
2011
|
||||||||
Net Income
|
|
$275
|
|
|
|
$178
|
|
|
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$525
|
|
|
|
$358
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Components of Other Comprehensive Income/(Loss):
|
|
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|
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||||||||
Change in unrealized gains on securities, net of tax of $80, $110, $107 and $70, respectively
|
142
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|
|
190
|
|
|
192
|
|
|
121
|
|
||||
Change in unrealized gains on derivatives, net of tax of ($38), $41, ($96), and ($31), respectively
|
(69
|
)
|
|
72
|
|
|
(170
|
)
|
|
(53
|
)
|
||||
Change related to employee benefit plans, net of tax of ($2), ($12), ($16) and ($10), respectively
|
(4
|
)
|
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(19
|
)
|
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(28
|
)
|
|
(16
|
)
|
||||
Total Other Comprehensive Income/(Loss)
|
69
|
|
|
243
|
|
|
(6
|
)
|
|
52
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total Comprehensive Income
|
|
$344
|
|
|
|
$421
|
|
|
|
$519
|
|
|
|
$410
|
|
|
As of
|
||||||
(Dollars in millions and shares in thousands) (Unaudited)
|
June 30,
2012 |
|
December 31,
2011 |
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
|
$5,781
|
|
|
|
$3,696
|
|
Securities purchased under agreements to resell
|
937
|
|
|
792
|
|
||
Interest-bearing deposits in other banks
|
21
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|
|
21
|
|
||
Cash and cash equivalents
|
6,739
|
|
|
4,509
|
|
||
Trading assets (including encumbered securities of $712 and $574 as of June 30, 2012 and December 31, 2011, respectively)
|
6,327
|
|
|
6,279
|
|
||
Securities available for sale
|
24,409
|
|
|
28,117
|
|
||
Loans held for sale
1
(loans at fair value: $2,940 and $2,141 as of June 30, 2012 and December 31, 2011, respectively)
|
3,123
|
|
|
2,353
|
|
||
Loans
2
(loans at fair value: $406 and $433 as of June 30, 2012 and December 31, 2011, respectively)
|
124,560
|
|
|
122,495
|
|
||
Allowance for loan and lease losses
|
(2,300
|
)
|
|
(2,457
|
)
|
||
Net loans
|
122,260
|
|
|
120,038
|
|
||
Premises and equipment
|
1,578
|
|
|
1,564
|
|
||
Goodwill
|
6,376
|
|
|
6,344
|
|
||
Other intangible assets (MSRs at fair value: $865 and $921 as of June 30, 2012 and December 31, 2011, respectively)
|
939
|
|
|
1,017
|
|
||
Other real estate owned
|
331
|
|
|
479
|
|
||
Other assets
|
6,175
|
|
|
6,159
|
|
||
Total assets
|
|
$178,257
|
|
|
|
$176,859
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Noninterest-bearing consumer and commercial deposits
|
|
$37,394
|
|
|
|
$34,359
|
|
Interest-bearing consumer and commercial deposits
|
88,751
|
|
|
91,252
|
|
||
Total consumer and commercial deposits
|
126,145
|
|
|
125,611
|
|
||
Brokered time deposits (CDs at fair value: $914 and $1,018 as of June 30, 2012 and December 31, 2011, respectively)
|
2,208
|
|
|
2,281
|
|
||
Foreign deposits
|
50
|
|
|
30
|
|
||
Total deposits
|
128,403
|
|
|
127,922
|
|
||
Funds purchased
|
847
|
|
|
839
|
|
||
Securities sold under agreements to repurchase
|
1,583
|
|
|
1,644
|
|
||
Other short-term borrowings
|
7,098
|
|
|
8,983
|
|
||
Long-term debt
3
(debt at fair value: $2,010 and $1,997 as of June 30, 2012 and December 31, 2011, respectively)
|
13,076
|
|
|
10,908
|
|
||
Trading liabilities
|
1,782
|
|
|
1,806
|
|
||
Other liabilities
|
4,900
|
|
|
4,691
|
|
||
Total liabilities
|
157,689
|
|
|
156,793
|
|
||
Preferred stock, no par value
|
275
|
|
|
275
|
|
||
Common stock, $1.00 par value
|
550
|
|
|
550
|
|
||
Additional paid in capital
|
9,218
|
|
|
9,306
|
|
||
Retained earnings
|
9,443
|
|
|
8,978
|
|
||
Treasury stock, at cost, and other
4
|
(661
|
)
|
|
(792
|
)
|
||
Accumulated other comprehensive income, net of tax
|
1,743
|
|
|
1,749
|
|
||
Total shareholders’ equity
|
20,568
|
|
|
20,066
|
|
||
Total liabilities and shareholders’ equity
|
|
$178,257
|
|
|
|
$176,859
|
|
|
|
|
|
||||
Common shares outstanding
|
538,398
|
|
|
536,967
|
|
||
Common shares authorized
|
750,000
|
|
|
750,000
|
|
||
Preferred shares outstanding
|
3
|
|
|
3
|
|
||
Preferred shares authorized
|
50,000
|
|
|
50,000
|
|
||
Treasury shares of common stock
|
11,522
|
|
|
12,954
|
|
||
1
Includes loans held for sale, at fair value, of consolidated VIEs
|
|
$322
|
|
|
|
$315
|
|
2
Includes loans of consolidated VIEs
|
390
|
|
|
3,322
|
|
||
3
Includes debt of consolidated VIEs ($288 and $289 at fair value as of June 30, 2012 and December 31, 2011, respectively)
|
700
|
|
|
722
|
|
||
4
Includes noncontrolling interest held
|
111
|
|
|
107
|
|
(Dollars and shares in millions, except per share data) (Unaudited)
|
Preferred
Stock
|
|
Common
Shares
Outstanding
|
|
Common
Stock
|
|
Additional
Paid in
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock and
Other
1
|
|
Accumulated
Other
Comprehensive
Income
2
|
|
Total
|
|||||||||||||||
Balance, January 1, 2011
|
|
$4,942
|
|
|
500
|
|
|
|
$515
|
|
|
|
$8,403
|
|
|
|
$8,542
|
|
|
|
($888
|
)
|
|
|
$1,616
|
|
|
|
$23,130
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
358
|
|
|
—
|
|
|
—
|
|
|
358
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
52
|
|
|||||||
Change in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||||
Common stock dividends, $0.02 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|||||||
Preferred stock dividends, $2,022 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||||
U.S. Treasury preferred stock dividends, $1,236 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|||||||
Accretion of discount for preferred stock issued to U.S. Treasury
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Repurchase of preferred stock issued to U.S. Treasury
|
(4,776
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
(4,850
|
)
|
|||||||
Issuance of common stock
|
—
|
|
|
35
|
|
|
35
|
|
|
982
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,017
|
|
|||||||
Stock compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||||
Restricted stock activity
|
—
|
|
|
2
|
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
|
46
|
|
|
—
|
|
|
(8
|
)
|
|||||||
Amortization of restricted stock compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|||||||
Issuance of stock for employee benefit plans and other
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
19
|
|
|
—
|
|
|
11
|
|
|||||||
Balance, June 30, 2011
|
|
$172
|
|
|
537
|
|
|
|
$550
|
|
|
|
$9,330
|
|
|
|
$8,745
|
|
|
|
($805
|
)
|
|
|
$1,668
|
|
|
|
$19,660
|
|
Balance, January 1, 2012
|
|
$275
|
|
|
537
|
|
|
|
$550
|
|
|
|
$9,306
|
|
|
|
$8,978
|
|
|
|
($792
|
)
|
|
|
$1,749
|
|
|
|
$20,066
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
525
|
|
|
—
|
|
|
—
|
|
|
525
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
|||||||
Change in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||||
Common stock dividends, $0.10 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|
(54
|
)
|
|||||||
Preferred stock dividends, $2,033 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||||
Exercise of stock options and stock compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
26
|
|
|
—
|
|
|
9
|
|
|||||||
Restricted stock activity
|
—
|
|
|
1
|
|
|
—
|
|
|
(61
|
)
|
|
—
|
|
|
65
|
|
|
—
|
|
|
4
|
|
|||||||
Amortization of restricted stock compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|||||||
Issuance of stock for employee benefit plans and other
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
21
|
|
|
—
|
|
|
11
|
|
|||||||
Balance, June 30, 2012
|
|
$275
|
|
|
538
|
|
|
|
$550
|
|
|
|
$9,218
|
|
|
|
$9,443
|
|
|
|
($661
|
)
|
|
|
$1,743
|
|
|
|
$20,568
|
|
|
|||||||
|
Six Months Ended June 30
|
||||||
(Dollars in millions) (Unaudited)
|
2012
|
|
2011
|
||||
Cash Flows from Operating Activities
|
|
|
|
||||
Net income including income attributable to noncontrolling interest
|
|
$537
|
|
|
|
$366
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, amortization, and accretion
|
382
|
|
|
372
|
|
||
Origination of mortgage servicing rights
|
(161
|
)
|
|
(136
|
)
|
||
Provisions for credit losses and foreclosed property
|
706
|
|
|
930
|
|
||
Mortgage repurchase provision
|
330
|
|
|
170
|
|
||
Stock option compensation and amortization of restricted stock compensation
|
17
|
|
|
24
|
|
||
Net loss/(gain) on extinguishment of debt
|
13
|
|
|
(2
|
)
|
||
Net securities gains
|
(32
|
)
|
|
(96
|
)
|
||
Net gain on sale of assets
|
(518
|
)
|
|
(141
|
)
|
||
Net decrease in loans held for sale
|
782
|
|
|
1,718
|
|
||
Net increase in other assets
|
(282
|
)
|
|
(358
|
)
|
||
Net increase in other liabilities
|
18
|
|
|
251
|
|
||
Net cash provided by operating activities
|
1,792
|
|
|
3,098
|
|
||
Cash Flows from Investing Activities
|
|
|
|
||||
Proceeds from maturities, calls, and paydowns of securities available for sale
|
3,179
|
|
|
2,414
|
|
||
Proceeds from sales of securities available for sale
|
2,210
|
|
|
10,763
|
|
||
Purchases of securities available for sale
|
(1,451
|
)
|
|
(12,603
|
)
|
||
Proceeds from maturities, calls, and paydowns of trading securities
|
—
|
|
|
124
|
|
||
Proceeds from sales of trading securities
|
—
|
|
|
102
|
|
||
Net increase in loans, including purchases of loans
|
(4,621
|
)
|
|
(1,109
|
)
|
||
Proceeds from sales of loans
|
477
|
|
|
287
|
|
||
Capital expenditures
|
(112
|
)
|
|
(9
|
)
|
||
Contingent consideration and other payments related to acquisitions
|
(9
|
)
|
|
(18
|
)
|
||
Proceeds from the sale of other assets
|
259
|
|
|
360
|
|
||
Net cash (used in)/provided by investing activities
|
(68
|
)
|
|
311
|
|
||
Cash Flows from Financing Activities
|
|
|
|
||||
Net increase in total deposits
|
481
|
|
|
1,877
|
|
||
Net (decrease)/increase in funds purchased, securities sold under agreements
to repurchase, and other short-term borrowings
|
(1,938
|
)
|
|
162
|
|
||
Proceeds from the issuance of long-term debt
|
4,000
|
|
|
1,039
|
|
||
Repayment of long-term debt
|
(1,991
|
)
|
|
(1,170
|
)
|
||
Proceeds from the exercise of stock options
|
5
|
|
|
—
|
|
||
Excess tax benefits from stock-based compensation
|
9
|
|
|
—
|
|
||
Proceeds from the issuance of common stock
|
—
|
|
|
1,017
|
|
||
Repurchase of preferred stock
|
—
|
|
|
(4,850
|
)
|
||
Common and preferred dividends paid
|
(60
|
)
|
|
(75
|
)
|
||
Net cash provided by/(used in) financing activities
|
506
|
|
|
(2,000
|
)
|
||
Net increase in cash and cash equivalents
|
2,230
|
|
|
1,409
|
|
||
Cash and cash equivalents at beginning of period
|
4,509
|
|
|
5,378
|
|
||
Cash and cash equivalents at end of period
|
|
$6,739
|
|
|
|
$6,787
|
|
Supplemental Disclosures:
|
|
|
|
||||
Loans transferred from loans held for sale to loans
|
|
$31
|
|
|
|
$46
|
|
Loans transferred from loans to loans held for sale
|
1,116
|
|
|
198
|
|
||
Loans transferred from loans to other real estate owned
|
200
|
|
|
367
|
|
||
Accretion of discount for preferred stock issued to the U.S. Treasury
|
—
|
|
|
80
|
|
|
June 30, 2012
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Treasury securities
|
|
$214
|
|
|
|
$10
|
|
|
|
$—
|
|
|
|
$224
|
|
Federal agency securities
|
1,698
|
|
|
85
|
|
|
—
|
|
|
1,783
|
|
||||
U.S. states and political subdivisions
|
359
|
|
|
19
|
|
|
6
|
|
|
372
|
|
||||
MBS - agency
|
17,308
|
|
|
803
|
|
|
1
|
|
|
18,110
|
|
||||
MBS - private
|
225
|
|
|
—
|
|
|
17
|
|
|
208
|
|
||||
ABS
|
344
|
|
|
9
|
|
|
5
|
|
|
348
|
|
||||
Corporate and other debt securities
|
42
|
|
|
3
|
|
|
—
|
|
|
45
|
|
||||
Coke common stock
|
—
|
|
|
2,346
|
|
|
—
|
|
|
2,346
|
|
||||
Other equity securities
1
|
972
|
|
|
1
|
|
|
—
|
|
|
973
|
|
||||
Total securities AFS
|
|
$21,162
|
|
|
|
$3,276
|
|
|
|
$29
|
|
|
|
$24,409
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2011
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Treasury securities
|
|
$671
|
|
|
|
$23
|
|
|
|
$—
|
|
|
|
$694
|
|
Federal agency securities
|
1,843
|
|
|
89
|
|
|
—
|
|
|
1,932
|
|
||||
U.S. states and political subdivisions
|
437
|
|
|
21
|
|
|
4
|
|
|
454
|
|
||||
MBS - agency
|
20,480
|
|
|
743
|
|
|
—
|
|
|
21,223
|
|
||||
MBS - private
|
252
|
|
|
—
|
|
|
31
|
|
|
221
|
|
||||
CDO/CLO securities
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
||||
ABS
|
460
|
|
|
11
|
|
|
7
|
|
|
464
|
|
||||
Corporate and other debt securities
|
49
|
|
|
2
|
|
|
—
|
|
|
51
|
|
||||
Coke common stock
|
—
|
|
|
2,099
|
|
|
—
|
|
|
2,099
|
|
||||
Other equity securities
1
|
928
|
|
|
1
|
|
|
—
|
|
|
929
|
|
||||
Total securities AFS
|
|
$25,170
|
|
|
|
$2,989
|
|
|
|
$42
|
|
|
|
$28,117
|
|
|
Distribution of Maturities
|
||||||||||||||||||
(Dollars in millions)
|
1 Year
or Less
|
|
1-5
Years
|
|
5-10
Years
|
|
After 10
Years
|
|
Total
|
||||||||||
Amortized Cost:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
|
$12
|
|
|
|
$202
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$214
|
|
Federal agency securities
|
117
|
|
|
1,372
|
|
|
95
|
|
|
114
|
|
|
1,698
|
|
|||||
U.S. states and political subdivisions
|
108
|
|
|
178
|
|
|
21
|
|
|
52
|
|
|
359
|
|
|||||
MBS - agency
|
901
|
|
|
14,304
|
|
|
1,827
|
|
|
276
|
|
|
17,308
|
|
|||||
MBS - private
|
—
|
|
|
136
|
|
|
89
|
|
|
—
|
|
|
225
|
|
|||||
ABS
|
123
|
|
|
152
|
|
|
2
|
|
|
67
|
|
|
344
|
|
|||||
Corporate and other debt securities
|
3
|
|
|
2
|
|
|
37
|
|
|
—
|
|
|
42
|
|
|||||
Total debt securities
|
|
$1,264
|
|
|
|
$16,346
|
|
|
|
$2,071
|
|
|
|
$509
|
|
|
|
$20,190
|
|
Fair Value:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
|
$12
|
|
|
|
$212
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$224
|
|
Federal agency securities
|
118
|
|
|
1,441
|
|
|
105
|
|
|
119
|
|
|
1,783
|
|
|||||
U.S. states and political subdivisions
|
111
|
|
|
191
|
|
|
21
|
|
|
49
|
|
|
372
|
|
|||||
MBS - agency
|
951
|
|
|
14,957
|
|
|
1,916
|
|
|
286
|
|
|
18,110
|
|
|||||
MBS - private
|
—
|
|
|
125
|
|
|
83
|
|
|
—
|
|
|
208
|
|
|||||
ABS
|
123
|
|
|
152
|
|
|
2
|
|
|
71
|
|
|
348
|
|
|||||
Corporate and other debt securities
|
3
|
|
|
2
|
|
|
40
|
|
|
—
|
|
|
45
|
|
|||||
Total debt securities
|
|
$1,318
|
|
|
|
$17,080
|
|
|
|
$2,167
|
|
|
|
$525
|
|
|
|
$21,090
|
|
|
June 30, 2012
|
||||||||||||||||||||||
|
Less than twelve months
|
|
Twelve months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in millions)
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Temporarily impaired securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agency securities
|
|
$19
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$19
|
|
|
|
$—
|
|
U.S. states and political subdivisions
|
1
|
|
|
—
|
|
|
24
|
|
|
6
|
|
|
25
|
|
|
6
|
|
||||||
MBS - agency
|
12
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
13
|
|
|
1
|
|
||||||
ABS
|
—
|
|
|
—
|
|
|
12
|
|
|
3
|
|
|
12
|
|
|
3
|
|
||||||
Total temporarily impaired securities
|
32
|
|
|
1
|
|
|
37
|
|
|
9
|
|
|
69
|
|
|
10
|
|
||||||
Other-than-temporarily impaired securities
1
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
MBS - private
|
—
|
|
|
—
|
|
|
207
|
|
|
17
|
|
|
207
|
|
|
17
|
|
||||||
ABS
|
1
|
|
|
—
|
|
|
4
|
|
|
2
|
|
|
5
|
|
|
2
|
|
||||||
Total other-than-temporarily impaired securities
|
1
|
|
|
—
|
|
|
211
|
|
|
19
|
|
|
212
|
|
|
19
|
|
||||||
Total impaired securities
|
|
$33
|
|
|
|
$1
|
|
|
|
$248
|
|
|
|
$28
|
|
|
|
$281
|
|
|
|
$29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2011
|
||||||||||||||||||||||
|
Less than twelve months
|
|
Twelve months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in millions)
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Temporarily impaired securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agency securities
|
|
$10
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$10
|
|
|
|
$—
|
|
U.S. states and political subdivisions
|
1
|
|
|
—
|
|
|
28
|
|
|
4
|
|
|
29
|
|
|
4
|
|
||||||
MBS - agency
|
224
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
225
|
|
|
—
|
|
||||||
CDO/CLO securities
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
—
|
|
||||||
ABS
|
—
|
|
|
—
|
|
|
11
|
|
|
5
|
|
|
11
|
|
|
5
|
|
||||||
Total temporarily impaired securities
|
285
|
|
|
—
|
|
|
40
|
|
|
9
|
|
|
325
|
|
|
9
|
|
||||||
Other-than-temporarily impaired securities
1
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
MBS - private
|
15
|
|
|
1
|
|
|
206
|
|
|
30
|
|
|
221
|
|
|
31
|
|
||||||
ABS
|
1
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
4
|
|
|
2
|
|
||||||
Total other-than-temporarily impaired securities
|
16
|
|
|
1
|
|
|
209
|
|
|
32
|
|
|
225
|
|
|
33
|
|
||||||
Total impaired securities
|
|
$301
|
|
|
|
$1
|
|
|
|
$249
|
|
|
|
$41
|
|
|
|
$550
|
|
|
|
$42
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Gross realized gains
|
|
$16
|
|
|
|
$33
|
|
|
|
$36
|
|
|
|
$176
|
|
Gross realized losses
|
—
|
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
||||
OTTI
|
(2
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(2
|
)
|
||||
Net securities gains
|
|
$14
|
|
|
|
$32
|
|
|
|
$32
|
|
|
|
$96
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
(Dollars in millions)
|
MBS - Private
|
|
MBS - Private
|
|
MBS - Private
|
|
MBS - Private
|
||||||||
OTTI
1
|
|
$2
|
|
|
|
$1
|
|
|
|
$4
|
|
|
|
$2
|
|
Portion of losses recognized in OCI (before taxes)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net impairment losses recognized in earnings
|
|
$2
|
|
|
|
$1
|
|
|
|
$4
|
|
|
|
$2
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Balance, beginning of period
|
|
$27
|
|
|
|
$21
|
|
|
|
$25
|
|
|
|
$20
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
OTTI credit losses on previously impaired securities
|
2
|
|
|
1
|
|
|
4
|
|
|
2
|
|
||||
Reductions:
|
|
|
|
|
|
|
|
||||||||
Increases in expected cash flows recognized over the remaining life of the securities
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||
Balance, end of period
|
|
$28
|
|
|
|
$21
|
|
|
|
$28
|
|
|
|
$21
|
|
|
2012
|
|
2011
|
Default rate
|
2 - 6%
|
|
4 - 8%
|
Prepayment rate
|
7 - 21%
|
|
12 - 22%
|
Loss severity
|
47 - 56%
|
|
39 - 44%
|
(Dollars in millions)
|
June 30,
2012 |
|
December 31,
2011 |
||||
Commercial loans:
|
|
|
|
||||
Commercial & industrial
|
|
$52,030
|
|
|
|
$49,538
|
|
Commercial real estate
|
4,825
|
|
|
5,094
|
|
||
Commercial construction
|
959
|
|
|
1,240
|
|
||
Total commercial loans
|
57,814
|
|
|
55,872
|
|
||
Residential loans:
|
|
|
|
||||
Residential mortgages - guaranteed
|
5,663
|
|
|
6,672
|
|
||
Residential mortgages - nonguaranteed
1
|
24,405
|
|
|
23,243
|
|
||
Home equity products
|
15,281
|
|
|
15,765
|
|
||
Residential construction
|
853
|
|
|
980
|
|
||
Total residential loans
|
46,202
|
|
|
46,660
|
|
||
Consumer loans:
|
|
|
|
||||
Guaranteed student loans
|
7,248
|
|
|
7,199
|
|
||
Other direct
|
2,225
|
|
|
2,059
|
|
||
Indirect
|
10,506
|
|
|
10,165
|
|
||
Credit cards
|
565
|
|
|
540
|
|
||
Total consumer loans
|
20,544
|
|
|
19,963
|
|
||
LHFI
|
|
$124,560
|
|
|
|
$122,495
|
|
LHFS
|
|
$3,123
|
|
|
|
$2,353
|
|
|
Commercial & industrial
|
|
Commercial real estate
|
|
Commercial construction
|
||||||||||||||||||
(Dollars in millions)
|
June 30,
2012 |
|
December 31,
2011 |
|
June 30,
2012 |
|
December 31,
2011 |
|
June 30,
2012 |
|
December 31,
2011 |
||||||||||||
Credit rating:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pass
|
|
$50,130
|
|
|
|
$47,683
|
|
|
|
$3,836
|
|
|
|
$3,845
|
|
|
|
$581
|
|
|
|
$581
|
|
Criticized accruing
|
1,569
|
|
|
1,507
|
|
|
756
|
|
|
961
|
|
|
247
|
|
|
369
|
|
||||||
Criticized nonaccruing
|
331
|
|
|
348
|
|
|
233
|
|
|
288
|
|
|
131
|
|
|
290
|
|
||||||
Total
|
|
$52,030
|
|
|
|
$49,538
|
|
|
|
$4,825
|
|
|
|
$5,094
|
|
|
|
$959
|
|
|
|
$1,240
|
|
|
Residential mortgages -
nonguaranteed
2
|
|
Home equity products
|
|
Residential construction
|
||||||||||||||||||
(Dollars in millions)
|
June 30,
2012 |
|
December 31,
2011 |
|
June 30,
2012 |
|
December 31,
2011 |
|
June 30,
2012 |
|
December 31,
2011 |
||||||||||||
Current FICO score range:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
700 and above
|
|
$17,567
|
|
|
|
$16,139
|
|
|
|
$11,583
|
|
|
|
$11,084
|
|
|
|
$613
|
|
|
|
$661
|
|
620 - 699
|
4,149
|
|
|
4,132
|
|
|
2,405
|
|
|
2,903
|
|
|
158
|
|
|
202
|
|
||||||
Below 620
1
|
2,689
|
|
|
2,972
|
|
|
1,293
|
|
|
1,778
|
|
|
82
|
|
|
117
|
|
||||||
Total
|
|
$24,405
|
|
|
|
$23,243
|
|
|
|
$15,281
|
|
|
|
$15,765
|
|
|
|
$853
|
|
|
|
$980
|
|
|
Consumer - other direct
|
|
Consumer - indirect
|
|
Consumer - credit cards
|
||||||||||||||||||
(Dollars in millions)
|
June 30,
2012 |
|
December 31,
2011 |
|
June 30,
2012 |
|
December 31,
2011 |
|
June 30,
2012 |
|
December 31,
2011 |
||||||||||||
Current FICO score range:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
700 and above
|
|
$1,829
|
|
|
|
$1,614
|
|
|
|
$7,965
|
|
|
|
$7,397
|
|
|
|
$379
|
|
|
|
$347
|
|
620 - 699
|
325
|
|
|
359
|
|
|
1,886
|
|
|
1,990
|
|
|
142
|
|
|
142
|
|
||||||
Below 620
1
|
71
|
|
|
86
|
|
|
655
|
|
|
778
|
|
|
44
|
|
|
51
|
|
||||||
Total
|
|
$2,225
|
|
|
|
$2,059
|
|
|
|
$10,506
|
|
|
|
$10,165
|
|
|
|
$565
|
|
|
|
$540
|
|
|
As of June 30, 2012
|
||||||||||||||||||
(Dollars in millions)
|
Accruing
Current
|
|
Accruing
30-89 Days
Past Due
|
|
Accruing
90+ Days
Past Due
|
|
Nonaccruing
2
|
|
Total
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & industrial
|
|
$51,600
|
|
|
|
$76
|
|
|
|
$23
|
|
|
|
$331
|
|
|
|
$52,030
|
|
Commercial real estate
|
4,582
|
|
|
8
|
|
|
2
|
|
|
233
|
|
|
4,825
|
|
|||||
Commercial construction
|
826
|
|
|
2
|
|
|
—
|
|
|
131
|
|
|
959
|
|
|||||
Total commercial loans
|
57,008
|
|
|
86
|
|
|
25
|
|
|
695
|
|
|
57,814
|
|
|||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgages - guaranteed
|
4,357
|
|
|
144
|
|
|
1,162
|
|
|
—
|
|
|
5,663
|
|
|||||
Residential mortgages - nonguaranteed
1
|
22,834
|
|
|
255
|
|
|
30
|
|
|
1,286
|
|
|
24,405
|
|
|||||
Home equity products
|
14,828
|
|
|
151
|
|
|
—
|
|
|
302
|
|
|
15,281
|
|
|||||
Residential construction
|
691
|
|
|
7
|
|
|
1
|
|
|
154
|
|
|
853
|
|
|||||
Total residential loans
|
42,710
|
|
|
557
|
|
|
1,193
|
|
|
1,742
|
|
|
46,202
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Guaranteed student loans
|
5,746
|
|
|
583
|
|
|
919
|
|
|
—
|
|
|
7,248
|
|
|||||
Other direct
|
2,201
|
|
|
14
|
|
|
6
|
|
|
4
|
|
|
2,225
|
|
|||||
Indirect
|
10,443
|
|
|
45
|
|
|
1
|
|
|
17
|
|
|
10,506
|
|
|||||
Credit cards
|
553
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
565
|
|
|||||
Total consumer loans
|
18,943
|
|
|
648
|
|
|
932
|
|
|
21
|
|
|
20,544
|
|
|||||
Total LHFI
|
|
$118,661
|
|
|
|
$1,291
|
|
|
|
$2,150
|
|
|
|
$2,458
|
|
|
|
$124,560
|
|
|
As of December 31, 2011
|
||||||||||||||||||
(Dollars in millions)
|
Accruing
Current
|
|
Accruing
30-89 Days
Past Due
|
|
Accruing
90+ Days
Past Due
|
|
Nonaccruing
2
|
|
Total
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & industrial
|
|
$49,098
|
|
|
|
$80
|
|
|
|
$12
|
|
|
|
$348
|
|
|
|
$49,538
|
|
Commercial real estate
|
4,797
|
|
|
9
|
|
|
—
|
|
|
288
|
|
|
5,094
|
|
|||||
Commercial construction
|
943
|
|
|
7
|
|
|
—
|
|
|
290
|
|
|
1,240
|
|
|||||
Total commercial loans
|
54,838
|
|
|
96
|
|
|
12
|
|
|
926
|
|
|
55,872
|
|
|||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgages - guaranteed
|
5,394
|
|
|
176
|
|
|
1,102
|
|
|
—
|
|
|
6,672
|
|
|||||
Residential mortgages - nonguaranteed
1
|
21,501
|
|
|
324
|
|
|
26
|
|
|
1,392
|
|
|
23,243
|
|
|||||
Home equity products
|
15,223
|
|
|
204
|
|
|
—
|
|
|
338
|
|
|
15,765
|
|
|||||
Residential construction
|
737
|
|
|
22
|
|
|
1
|
|
|
220
|
|
|
980
|
|
|||||
Total residential loans
|
42,855
|
|
|
726
|
|
|
1,129
|
|
|
1,950
|
|
|
46,660
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Guaranteed student loans
|
5,690
|
|
|
640
|
|
|
869
|
|
|
—
|
|
|
7,199
|
|
|||||
Other direct
|
2,032
|
|
|
14
|
|
|
6
|
|
|
7
|
|
|
2,059
|
|
|||||
Indirect
|
10,074
|
|
|
66
|
|
|
5
|
|
|
20
|
|
|
10,165
|
|
|||||
Credit cards
|
526
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
540
|
|
|||||
Total consumer loans
|
18,322
|
|
|
727
|
|
|
887
|
|
|
27
|
|
|
19,963
|
|
|||||
Total LHFI
|
|
$116,015
|
|
|
|
$1,549
|
|
|
|
$2,028
|
|
|
|
$2,903
|
|
|
|
$122,495
|
|
|
As of December 31, 2011
|
|
Year Ended December 31, 2011
|
||||||||||||||||
(Dollars in millions)
|
Unpaid
Principal
Balance
|
|
Amortized
Cost
1
|
|
Related
Allowance
|
|
Average
Amortized
Cost
|
|
Interest
Income
Recognized
2
|
||||||||||
Impaired loans with no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & industrial
|
|
$93
|
|
|
|
$73
|
|
|
|
$—
|
|
|
|
$109
|
|
|
|
$3
|
|
Commercial real estate
|
58
|
|
|
50
|
|
|
—
|
|
|
56
|
|
|
1
|
|
|||||
Commercial construction
|
45
|
|
|
40
|
|
|
—
|
|
|
47
|
|
|
1
|
|
|||||
Total commercial loans
|
196
|
|
|
163
|
|
|
—
|
|
|
212
|
|
|
5
|
|
|||||
Impaired loans with an allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & industrial
|
76
|
|
|
67
|
|
|
9
|
|
|
68
|
|
|
1
|
|
|||||
Commercial real estate
|
111
|
|
|
82
|
|
|
15
|
|
|
103
|
|
|
2
|
|
|||||
Commercial construction
|
132
|
|
|
100
|
|
|
10
|
|
|
121
|
|
|
2
|
|
|||||
Total commercial loans
|
319
|
|
|
249
|
|
|
34
|
|
|
292
|
|
|
5
|
|
|||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgages - nonguaranteed
|
2,797
|
|
|
2,405
|
|
|
293
|
|
|
2,451
|
|
|
88
|
|
|||||
Home equity products
|
553
|
|
|
515
|
|
|
86
|
|
|
528
|
|
|
23
|
|
|||||
Residential construction
|
246
|
|
|
221
|
|
|
26
|
|
|
229
|
|
|
8
|
|
|||||
Total residential loans
|
3,596
|
|
|
3,141
|
|
|
405
|
|
|
3,208
|
|
|
119
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Other direct
|
12
|
|
|
12
|
|
|
1
|
|
|
13
|
|
|
1
|
|
|||||
Credit cards
|
27
|
|
|
27
|
|
|
8
|
|
|
26
|
|
|
2
|
|
|||||
Total consumer loans
|
39
|
|
|
39
|
|
|
9
|
|
|
39
|
|
|
3
|
|
|||||
Total impaired loans
|
|
$4,150
|
|
|
|
$3,592
|
|
|
|
$448
|
|
|
|
$3,751
|
|
|
|
$132
|
|
(Dollars in millions)
|
June 30, 2012
|
|
December 31, 2011
|
||||
Nonaccrual/NPLs:
|
|
|
|
||||
Commercial loans:
|
|
|
|
||||
Commercial & industrial
|
|
$331
|
|
|
|
$348
|
|
Commercial real estate
|
233
|
|
|
288
|
|
||
Commercial construction
|
131
|
|
|
290
|
|
||
Residential loans:
|
|
|
|
||||
Residential mortgages - nonguaranteed
|
1,286
|
|
|
1,392
|
|
||
Home equity products
|
302
|
|
|
338
|
|
||
Residential construction
|
154
|
|
|
220
|
|
||
Consumer loans:
|
|
|
|
||||
Other direct
|
4
|
|
|
7
|
|
||
Indirect
|
17
|
|
|
20
|
|
||
Total nonaccrual/NPLs
|
2,458
|
|
|
2,903
|
|
||
OREO
1
|
331
|
|
|
479
|
|
||
Other repossessed assets
|
11
|
|
|
10
|
|
||
Total nonperforming assets
|
|
$2,800
|
|
|
|
$3,392
|
|
|
Three Months Ended June 30, 2012
|
||||||||||||||||
(Dollars in millions)
|
Number of Loans Modified
|
|
Principal
Forgiveness
1
|
|
Rate
Modification
2
|
|
Term Extension and/or Other Concessions
|
|
Total
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial & industrial
|
80
|
|
|
$—
|
|
|
|
$1
|
|
|
|
$3
|
|
|
|
$4
|
|
Commercial real estate
|
13
|
|
6
|
|
|
6
|
|
|
—
|
|
|
12
|
|
||||
Commercial construction
|
5
|
|
1
|
|
|
—
|
|
|
10
|
|
|
11
|
|
||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
199
|
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
||||
Home equity products
|
457
|
|
—
|
|
|
33
|
|
|
2
|
|
|
35
|
|
||||
Residential construction
|
140
|
|
—
|
|
|
1
|
|
|
20
|
|
|
21
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Other direct
|
27
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Indirect
|
795
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
||||
Credit cards
|
361
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Total TDRs
|
2,077
|
|
|
$7
|
|
|
|
$64
|
|
|
|
$50
|
|
|
|
$121
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30, 2012
|
||||||||||||||||
(Dollars in millions)
|
Number of Loans Modified
|
|
Principal
Forgiveness
1
|
|
Rate
Modification
2
|
|
Term Extension and/or Other Concessions
|
|
Total
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial & industrial
|
183
|
|
|
$—
|
|
|
|
$2
|
|
|
|
$15
|
|
|
|
$17
|
|
Commercial real estate
|
23
|
|
12
|
|
|
7
|
|
|
2
|
|
|
21
|
|
||||
Commercial construction
|
12
|
|
2
|
|
|
—
|
|
|
11
|
|
|
13
|
|
||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
424
|
|
—
|
|
|
41
|
|
|
1
|
|
|
42
|
|
||||
Home equity products
|
841
|
|
—
|
|
|
64
|
|
|
3
|
|
|
67
|
|
||||
Residential construction
|
175
|
|
—
|
|
|
1
|
|
|
29
|
|
|
30
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Other direct
|
39
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Indirect
|
795
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
||||
Credit cards
|
863
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||
Total TDRs
|
3,355
|
|
|
$14
|
|
|
|
$120
|
|
|
|
$76
|
|
|
|
$210
|
|
|
Three Months Ended June 30, 2011
|
||||||||||||||||
(Dollars in millions)
|
Number of Loans Modified
|
|
Principal
Forgiveness
1
|
|
Rate
Modification
2
|
|
Term Extension and/or Other Concessions
|
|
Total
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial & industrial
|
56
|
|
|
$19
|
|
|
|
$22
|
|
|
|
$3
|
|
|
|
$44
|
|
Commercial real estate
|
9
|
|
4
|
|
|
—
|
|
|
3
|
|
|
7
|
|
||||
Commercial construction
|
8
|
|
3
|
|
|
—
|
|
|
31
|
|
|
34
|
|
||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
258
|
|
—
|
|
|
61
|
|
|
5
|
|
|
66
|
|
||||
Home equity products
|
398
|
|
—
|
|
|
31
|
|
|
—
|
|
|
31
|
|
||||
Residential construction
|
27
|
|
—
|
|
|
5
|
|
|
1
|
|
|
6
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Other direct
|
11
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Total TDRs
|
767
|
|
|
$26
|
|
|
|
$119
|
|
|
|
$44
|
|
|
|
$189
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30, 2011
|
||||||||||||||||
(Dollars in millions)
|
Number of Loans Modified
|
|
Principal
Forgiveness
1
|
|
Rate
Modification
2
|
|
Term Extension and/or Other Concessions
|
|
Total
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial & industrial
|
78
|
|
|
$27
|
|
|
|
$22
|
|
|
|
$8
|
|
|
|
$57
|
|
Commercial real estate
|
25
|
|
22
|
|
|
16
|
|
|
15
|
|
|
53
|
|
||||
Commercial construction
|
82
|
|
27
|
|
|
2
|
|
|
41
|
|
|
70
|
|
||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
528
|
|
—
|
|
|
142
|
|
|
8
|
|
|
150
|
|
||||
Home equity products
|
743
|
|
—
|
|
|
62
|
|
|
—
|
|
|
62
|
|
||||
Residential construction
|
50
|
|
—
|
|
|
10
|
|
|
1
|
|
|
11
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Other direct
|
51
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Total TDRs
|
1,557
|
|
|
$76
|
|
|
|
$254
|
|
|
|
$75
|
|
|
|
$405
|
|
|
Three Months Ended June 30, 2012
1
|
|
Six Months Ended June 30, 2012
2
|
|||||||||
(Dollars in millions)
|
Number of Loans
|
|
Amortized Cost
|
|
Number of Loans
|
|
Amortized Cost
|
|||||
Commercial loans:
|
|
|
|
|
|
|
|
|||||
Commercial & industrial
|
14
|
|
|
$1
|
|
|
25
|
|
|
$3
|
|
|
Commercial real estate
|
—
|
|
|
—
|
|
|
4
|
|
4
|
|
||
Commercial construction
|
4
|
|
4
|
|
|
7
|
|
6
|
|
|||
Residential loans:
|
|
|
|
|
|
|
|
|||||
Residential mortgages
|
28
|
|
9
|
|
|
56
|
|
14
|
|
|||
Home equity products
|
38
|
|
3
|
|
|
81
|
|
6
|
|
|||
Residential construction
|
6
|
|
—
|
|
|
17
|
|
2
|
|
|||
Consumer loans:
|
|
|
|
|
|
|
|
|||||
Other direct
|
—
|
|
|
—
|
|
|
2
|
|
—
|
|
||
Credit cards
|
57
|
|
—
|
|
|
135
|
|
1
|
|
|||
Total TDRs
|
147
|
|
|
$17
|
|
|
327
|
|
|
$36
|
|
|
Three Months Ended June 30, 2011
1
|
|
Six Months Ended June 30, 2011
2
|
||||||||
(Dollars in millions)
|
Number of Loans
|
|
Amortized Cost
|
|
Number of Loans
|
|
Amortized Cost
|
||||
Commercial loans:
|
|
|
|
|
|
|
|
||||
Commercial & industrial
|
10
|
|
|
$—
|
|
|
20
|
|
|
$2
|
|
Commercial real estate
|
2
|
|
1
|
|
|
6
|
|
1
|
|
||
Commercial construction
|
8
|
|
15
|
|
|
14
|
|
24
|
|
||
Residential loans:
|
|
|
|
|
|
|
|
||||
Residential mortgages
|
94
|
|
23
|
|
|
334
|
|
75
|
|
||
Home equity products
|
47
|
|
4
|
|
|
111
|
|
11
|
|
||
Residential construction
|
8
|
|
1
|
|
|
23
|
|
5
|
|
||
Consumer loans:
|
|
|
|
|
|
|
|
||||
Other direct
|
5
|
|
—
|
|
|
7
|
|
—
|
|
||
Total TDRs
|
174
|
|
|
$44
|
|
|
515
|
|
|
$118
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Balance at beginning of period
|
|
$2,400
|
|
|
|
$2,908
|
|
|
|
$2,505
|
|
|
|
$3,032
|
|
Provision for loan losses
|
302
|
|
|
395
|
|
|
615
|
|
|
846
|
|
||||
Provision/(benefit) for unfunded commitments
|
(2
|
)
|
|
(3
|
)
|
|
2
|
|
|
(7
|
)
|
||||
Loan charge-offs
|
(397
|
)
|
|
(563
|
)
|
|
(860
|
)
|
|
(1,178
|
)
|
||||
Loan recoveries
|
47
|
|
|
58
|
|
|
88
|
|
|
102
|
|
||||
Balance at end of period
|
|
$2,350
|
|
|
|
$2,795
|
|
|
|
$2,350
|
|
|
|
$2,795
|
|
Components:
|
|
|
|
|
|
|
|
||||||||
ALLL
|
|
$2,300
|
|
|
|
$2,744
|
|
|
|
|
|
||||
Unfunded commitments reserve
1
|
50
|
|
|
51
|
|
|
|
|
|
||||||
Allowance for credit losses
|
|
$2,350
|
|
|
|
$2,795
|
|
|
|
|
|
|
Three Months Ended June 30, 2012
|
||||||||||||||
(Dollars in millions)
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
Balance at beginning of period
|
|
$901
|
|
|
|
$1,315
|
|
|
|
$132
|
|
|
|
$2,348
|
|
Provision for loan losses
|
49
|
|
|
230
|
|
|
23
|
|
|
302
|
|
||||
Loan charge-offs
|
(94
|
)
|
|
(274
|
)
|
|
(29
|
)
|
|
(397
|
)
|
||||
Loan recoveries
|
31
|
|
|
6
|
|
|
10
|
|
|
47
|
|
||||
Balance at end of period
|
|
$887
|
|
|
|
$1,277
|
|
|
|
$136
|
|
|
|
$2,300
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, 2011
|
||||||||||||||
(Dollars in millions)
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
Balance at beginning of period
|
|
$1,255
|
|
|
|
$1,440
|
|
|
|
$159
|
|
|
|
$2,854
|
|
Provision for loan losses
|
124
|
|
|
252
|
|
|
19
|
|
|
395
|
|
||||
Loan charge-offs
|
(220
|
)
|
|
(303
|
)
|
|
(40
|
)
|
|
(563
|
)
|
||||
Loan recoveries
|
41
|
|
|
6
|
|
|
11
|
|
|
58
|
|
||||
Balance at end of period
|
|
$1,200
|
|
|
|
$1,395
|
|
|
|
$149
|
|
|
|
$2,744
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30, 2012
|
||||||||||||||
(Dollars in millions)
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
Balance at beginning of period
|
|
$964
|
|
|
|
$1,354
|
|
|
|
$139
|
|
|
|
$2,457
|
|
Provision for loan losses
|
87
|
|
|
488
|
|
|
40
|
|
|
615
|
|
||||
Loan charge-offs
|
(220
|
)
|
|
(576
|
)
|
|
(64
|
)
|
|
(860
|
)
|
||||
Loan recoveries
|
56
|
|
|
11
|
|
|
21
|
|
|
88
|
|
||||
Balance at end of period
|
|
$887
|
|
|
|
$1,277
|
|
|
|
$136
|
|
|
|
$2,300
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30, 2011
|
||||||||||||||
(Dollars in millions)
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
Balance at beginning of period
|
|
$1,303
|
|
|
|
$1,498
|
|
|
|
$173
|
|
|
|
$2,974
|
|
Provision for loan losses
|
232
|
|
|
574
|
|
|
40
|
|
|
846
|
|
||||
Loan charge-offs
|
(405
|
)
|
|
(688
|
)
|
|
(85
|
)
|
|
(1,178
|
)
|
||||
Loan recoveries
|
70
|
|
|
11
|
|
|
21
|
|
|
102
|
|
||||
Balance at end of period
|
|
$1,200
|
|
|
|
$1,395
|
|
|
|
$149
|
|
|
|
$2,744
|
|
|
As of June 30, 2012
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||||||||||||||||||
(Dollars in millions)
|
Carrying
Value
|
|
Associated
ALLL
|
|
Carrying
Value
|
|
Associated
ALLL
|
|
Carrying
Value
|
|
Associated
ALLL
|
|
Carrying
Value
|
|
Associated
ALLL
|
||||||||||||||||
Individually evaluated
|
|
$318
|
|
|
|
$18
|
|
|
|
$3,016
|
|
|
|
$355
|
|
|
|
$51
|
|
|
|
$8
|
|
|
|
$3,385
|
|
|
|
$381
|
|
Collectively evaluated
|
57,495
|
|
|
869
|
|
|
42,781
|
|
|
922
|
|
|
20,493
|
|
|
128
|
|
|
120,769
|
|
|
1,919
|
|
||||||||
Total evaluated
|
57,813
|
|
|
887
|
|
|
45,797
|
|
|
1,277
|
|
|
20,544
|
|
|
136
|
|
|
124,154
|
|
|
2,300
|
|
||||||||
LHFI at fair value
|
1
|
|
|
—
|
|
|
405
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
406
|
|
|
—
|
|
||||||||
Total LHFI
|
|
$57,814
|
|
|
|
$887
|
|
|
|
$46,202
|
|
|
|
$1,277
|
|
|
|
$20,544
|
|
|
|
$136
|
|
|
|
$124,560
|
|
|
|
$2,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
As of December 31, 2011
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||||||||||||||||||
(Dollars in millions)
|
Carrying
Value
|
|
Associated
ALLL
|
|
Carrying
Value
|
|
Associated
ALLL
|
|
Carrying
Value
|
|
Associated
ALLL
|
|
Carrying
Value
|
|
Associated
ALLL
|
||||||||||||||||
Individually evaluated
|
|
$412
|
|
|
|
$34
|
|
|
|
$3,141
|
|
|
|
$405
|
|
|
|
$39
|
|
|
|
$9
|
|
|
|
$3,592
|
|
|
|
$448
|
|
Collectively evaluated
|
55,458
|
|
|
930
|
|
|
43,088
|
|
|
949
|
|
|
19,924
|
|
|
130
|
|
|
118,470
|
|
|
2,009
|
|
||||||||
Total evaluated
|
55,870
|
|
|
964
|
|
|
46,229
|
|
|
1,354
|
|
|
19,963
|
|
|
139
|
|
|
122,062
|
|
|
2,457
|
|
||||||||
LHFI at fair value
|
2
|
|
|
—
|
|
|
431
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
433
|
|
|
—
|
|
||||||||
Total LHFI
|
|
$55,872
|
|
|
|
$964
|
|
|
|
$46,660
|
|
|
|
$1,354
|
|
|
|
$19,963
|
|
|
|
$139
|
|
|
|
$122,495
|
|
|
|
$2,457
|
|
(Dollars in millions)
|
|
Retail
Banking |
|
Diversified
Commercial Banking |
|
CIB
|
|
W&IM
|
|
Consumer Banking and Private Wealth Management
|
|
Wholesale Banking
|
|
Total
|
||||||||||||||
Balance, January 1, 2012
|
|
|
$4,854
|
|
|
|
$928
|
|
|
|
$180
|
|
|
|
$382
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$6,344
|
|
Acquisition of FirstAgain, LLC
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
|||||||
Intersegment transfers
|
|
(4,854
|
)
|
|
(928
|
)
|
|
(180
|
)
|
|
(382
|
)
|
|
3,930
|
|
|
2,414
|
|
|
—
|
|
|||||||
Balance, June 30, 2012
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$3,962
|
|
|
|
$2,414
|
|
|
|
$6,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, January 1, 2011
|
|
|
$4,854
|
|
|
|
$928
|
|
|
|
$180
|
|
|
|
$361
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$6,323
|
|
Contingent consideration
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Acquisition of certain additional
assets of CSI Capital Management
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|||||||
Balance, June 30, 2011
|
|
|
$4,854
|
|
|
|
$928
|
|
|
|
$180
|
|
|
|
$381
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$6,343
|
|
(Dollars in millions)
|
Core Deposit
Intangibles |
|
MSRs -
Fair Value |
|
Other
|
|
Total
|
||||||||
Balance, January 1, 2012
|
|
$38
|
|
|
|
$921
|
|
|
|
$58
|
|
|
|
$1,017
|
|
Amortization
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|
(22
|
)
|
||||
MSRs originated
|
—
|
|
|
161
|
|
|
—
|
|
|
161
|
|
||||
Changes in fair value:
|
|
|
|
|
|
|
|
||||||||
Due to changes in inputs and assumptions
1
|
—
|
|
|
(102
|
)
|
|
—
|
|
|
(102
|
)
|
||||
Other changes in fair value
2
|
—
|
|
|
(112
|
)
|
|
—
|
|
|
(112
|
)
|
||||
Sale of MSRs
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||
Balance, June 30, 2012
|
|
$27
|
|
|
|
$865
|
|
|
|
$47
|
|
|
|
$939
|
|
|
|
|
|
|
|
|
|
||||||||
Balance, January 1, 2011
|
|
$67
|
|
|
|
$1,439
|
|
|
|
$65
|
|
|
|
$1,571
|
|
Amortization
|
(16
|
)
|
|
—
|
|
|
(7
|
)
|
|
(23
|
)
|
||||
MSRs originated
|
—
|
|
|
136
|
|
|
—
|
|
|
136
|
|
||||
Changes in fair value:
|
|
|
|
|
|
|
|
||||||||
Due to changes in inputs and assumptions
1
|
—
|
|
|
(51
|
)
|
|
—
|
|
|
(51
|
)
|
||||
Other changes in fair value
2
|
—
|
|
|
(94
|
)
|
|
—
|
|
|
(94
|
)
|
||||
Sale of MSRs
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
||||
Other
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
||||
Balance, June 30, 2011
|
|
$51
|
|
|
|
$1,423
|
|
|
|
$65
|
|
|
|
$1,539
|
|
(Dollars in millions)
|
June 30, 2012
|
|
December 31, 2011
|
||||
Fair value of retained MSRs
|
|
$865
|
|
|
|
$921
|
|
Prepayment rate assumption (annual)
|
20
|
%
|
|
20
|
%
|
||
Decline in fair value from 10% adverse change
|
|
$55
|
|
|
|
$52
|
|
Decline in fair value from 20% adverse change
|
100
|
|
|
98
|
|
||
Discount rate (annual)
|
11
|
%
|
|
11
|
%
|
||
Decline in fair value from 10% adverse change
|
|
$31
|
|
|
|
$33
|
|
Decline in fair value from 20% adverse change
|
60
|
|
|
63
|
|
||
Weighted-average life (in years)
|
4.2
|
|
|
4.3
|
|
||
Weighted-average coupon
|
5.0
|
%
|
|
5.2
|
%
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Cash flows on interests held:
|
|
|
|
|
|
|
|
||||||||
Residential Mortgage Loans
|
|
$8
|
|
|
|
$13
|
|
|
|
$15
|
|
|
|
$28
|
|
Commercial and Corporate Loans
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
CDO Securities
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Total cash flows on interests held
|
|
$9
|
|
|
|
$14
|
|
|
|
$16
|
|
|
|
$30
|
|
Servicing or management fees:
|
|
|
|
|
|
|
|
||||||||
Residential Mortgage Loans
|
|
$1
|
|
|
|
$1
|
|
|
|
$1
|
|
|
|
$2
|
|
Commercial and Corporate Loans
|
2
|
|
|
2
|
|
|
5
|
|
|
5
|
|
||||
CDO Securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total servicing or management fees
|
|
$3
|
|
|
|
$3
|
|
|
|
$6
|
|
|
|
$7
|
|
|
|
|
|
|
|
|
|
|
Portfolio Balance
|
|
Past Due
|
|
|
Net Charge-offs
|
||||||||||||||||||||||||||
|
June 30, 2012
|
|
December 31, 2011
|
|
June 30, 2012
|
|
December 31, 2011
|
|
|
For the Three Months
Ended June 30
|
|
For the Six Months
Ended June 30
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|||||||||||||||||||||||||
Type of loan:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
|
$57,814
|
|
|
|
$55,872
|
|
|
|
$720
|
|
|
|
$938
|
|
|
|
|
$63
|
|
|
|
$179
|
|
|
|
$164
|
|
|
|
$335
|
|
Residential
|
46,202
|
|
|
46,660
|
|
|
2,935
|
|
|
3,079
|
|
|
|
268
|
|
|
297
|
|
|
565
|
|
|
677
|
|
||||||||
Consumer
|
20,544
|
|
|
19,963
|
|
|
953
|
|
|
914
|
|
|
|
19
|
|
|
29
|
|
|
43
|
|
|
64
|
|
||||||||
Total loan portfolio
|
124,560
|
|
|
122,495
|
|
|
4,608
|
|
|
4,931
|
|
|
|
350
|
|
|
505
|
|
|
772
|
|
|
1,076
|
|
||||||||
Managed securitized loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
1,920
|
|
|
1,978
|
|
|
20
|
|
|
43
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Residential
|
110,031
|
|
|
114,342
|
|
|
2,642
|
|
1
|
3,310
|
|
1
|
|
9
|
|
|
15
|
|
|
16
|
|
|
27
|
|
||||||||
Total managed loans
|
|
$236,511
|
|
|
|
$238,815
|
|
|
|
$7,270
|
|
|
|
$8,284
|
|
|
|
|
$359
|
|
|
|
$520
|
|
|
|
$788
|
|
|
|
$1,103
|
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(In millions, except per share data)
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Net income
|
|
|
$275
|
|
|
|
$178
|
|
|
|
$525
|
|
|
|
$358
|
|
Preferred dividends
|
|
(3
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(4
|
)
|
||||
Dividends and accretion of discount on preferred stock issued to the U.S. Treasury
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(66
|
)
|
||||
Accretion associated with repurchase of preferred stock issued to the U.S. Treasury
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(74
|
)
|
||||
Dividends and undistributed earnings allocated to unvested shares
|
|
(2
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(2
|
)
|
||||
Net income available to common shareholders
|
|
|
$270
|
|
|
|
$174
|
|
|
|
$515
|
|
|
|
$212
|
|
Average basic common shares
|
|
534
|
|
|
532
|
|
|
534
|
|
|
516
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
||||||||
Stock options
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
||||
Restricted stock
|
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
||||
Average diluted common shares
|
|
537
|
|
|
535
|
|
|
537
|
|
|
520
|
|
||||
Net income per average common share - diluted
|
|
|
$0.50
|
|
|
|
$0.33
|
|
|
|
$0.96
|
|
|
|
$0.41
|
|
Net income per average common share - basic
|
|
|
$0.51
|
|
|
|
$0.33
|
|
|
|
$0.97
|
|
|
|
$0.41
|
|
|
Six Months Ended June 30
|
||||
|
2012
|
|
2011
|
||
Dividend yield
|
0.91
|
%
|
|
0.67
|
%
|
Expected stock price volatility
|
39.88
|
|
|
34.73
|
|
Risk-free interest rate (weighted average)
|
1.07
|
|
|
2.61
|
|
Expected life of options
|
6 years
|
|
|
6 years
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Stock-based compensation expense:
|
|
|
|
|
|
|
|
||||||||
Stock options
|
|
$2
|
|
|
|
$5
|
|
|
|
$6
|
|
|
|
$8
|
|
Restricted stock
|
8
|
|
|
8
|
|
|
15
|
|
|
17
|
|
||||
RSUs
|
4
|
|
|
8
|
|
|
18
|
|
|
8
|
|
||||
Total stock-based compensation expense
|
|
$14
|
|
|
|
$21
|
|
|
|
$39
|
|
|
|
$33
|
|
|
Three Months Ended June 30
|
||||||||||||||
|
2012
|
|
2011
|
||||||||||||
(Dollars in millions)
|
Retirement Benefits
|
|
Other Postretirement
Benefits
|
|
Retirement Benefits
|
|
Other Postretirement
Benefits
|
||||||||
Service cost
|
|
$—
|
|
|
|
$—
|
|
|
|
$17
|
|
|
|
$—
|
|
Interest cost
|
31
|
|
|
1
|
|
|
32
|
|
|
2
|
|
||||
Expected return on plan assets
|
(43
|
)
|
|
(1
|
)
|
|
(47
|
)
|
|
(2
|
)
|
||||
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||
Recognized net actuarial loss
|
6
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||
Net periodic (benefit)/cost
|
|
($6
|
)
|
|
|
$—
|
|
|
|
$9
|
|
|
|
$—
|
|
|
Six Months Ended June 30
|
||||||||||||||
|
2012
|
|
2011
|
||||||||||||
(Dollars in millions)
|
Retirement Benefits
|
|
Other Postretirement
Benefits
|
|
Retirement Benefits
|
|
Other Postretirement
Benefits
|
||||||||
Service cost
|
|
$—
|
|
|
|
$—
|
|
|
|
$35
|
|
|
|
$—
|
|
Interest cost
|
60
|
|
|
3
|
|
|
64
|
|
|
5
|
|
||||
Expected return on plan assets
|
(86
|
)
|
|
(3
|
)
|
|
(94
|
)
|
|
(4
|
)
|
||||
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
||||
Recognized net actuarial loss
|
12
|
|
|
—
|
|
|
21
|
|
|
—
|
|
||||
Net periodic (benefit)/cost
|
|
($14
|
)
|
|
|
$—
|
|
|
|
$17
|
|
|
|
$1
|
|
|
|||||||||||
|
Three Months Ended June 30, 2012
|
||||||||||
(Dollars in millions)
|
Amount of gain/(loss)
on Derivatives recognized in Income |
|
Amount of gain/(loss)
on related Hedged Items recognized in Income |
|
Amount of gain/(loss)
recognized in Income on Hedges (Ineffective Portion) |
||||||
Derivatives in fair value hedging relationships
1
|
|||||||||||
Interest rate contracts hedging Fixed rate debt
|
|
$8
|
|
|
|
($8
|
)
|
|
|
$—
|
|
Interest rate contracts hedging Securities AFS
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$8
|
|
|
|
($8
|
)
|
|
|
$—
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2012
|
||||||||||
(Dollars in millions)
|
Amount of gain/(loss)
on Derivatives recognized in Income |
|
Amount of gain/(loss)
on related Hedged Items recognized in Income |
|
Amount of gain/(loss)
recognized in
Income on Hedges
(Ineffective Portion) |
||||||
Derivatives in fair value hedging relationships
1
|
|||||||||||
Interest rate contracts hedging Fixed rate debt
|
|
$7
|
|
|
|
($7
|
)
|
|
|
$—
|
|
Interest rate contracts hedging Securities AFS
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
Total
|
|
$8
|
|
|
|
($8
|
)
|
|
|
$—
|
|
(Dollars in millions)
|
Classification of gain/(loss)
recognized in Income on Derivatives |
|
Amount of gain/(loss)
recognized in Income on Derivatives for the Three Months Ended June 30, 2012 |
|
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Six Months Ended
June 30, 2012
|
||||
Derivatives not designated as hedging instruments
|
|
|
|||||||
Interest rate contracts covering:
|
|
|
|
|
|
||||
Fixed rate debt
|
Trading income
|
|
|
($2
|
)
|
|
|
($1
|
)
|
MSRs
|
Mortgage servicing related income
|
|
269
|
|
|
196
|
|
||
LHFS, IRLCs, LHFI-FV
|
Mortgage production related income
|
|
(135
|
)
|
|
(170
|
)
|
||
Trading activity
|
Trading income
|
|
27
|
|
|
54
|
|
||
Foreign exchange rate contracts covering:
|
|
|
|
|
|
||||
Commercial loans and foreign-denominated debt
|
Trading income
|
|
115
|
|
|
130
|
|
||
Trading activity
|
Trading income
|
|
11
|
|
|
14
|
|
||
Credit contracts covering:
|
|
|
|
|
|
||||
Loans
|
Other income
1
|
|
(1
|
)
|
|
(4
|
)
|
||
Trading activity
|
Trading income
|
|
6
|
|
|
12
|
|
||
Equity contracts - trading activity
|
Trading income
|
|
10
|
|
|
13
|
|
||
Other contracts:
|
|
|
|
|
|
||||
IRLCs
|
Mortgage production related income
|
|
257
|
|
|
442
|
|
||
Total
|
|
|
|
$557
|
|
|
|
$686
|
|
|
Three Months Ended June 30, 2011
|
||||||||
(Dollars in millions)
|
Amount of pre-tax gain/(loss)
recognized in OCI on Derivatives (Effective Portion) |
|
Classification of gain/(loss)
reclassified from AOCI into Income (Effective Portion) |
|
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
|
||||
Derivatives in cash flow hedging relationships
|
|||||||||
Equity contracts hedging Securities AFS
|
|
$6
|
|
|
|
|
|
$—
|
|
Interest rate contracts hedging Floating rate loans
1
|
261
|
|
|
Interest and fees on loans
|
|
105
|
|
||
Total
|
|
$267
|
|
|
|
|
|
$105
|
|
|
|
|
|
|
|
||||
|
Six Months Ended June 30, 2011
|
||||||||
(Dollars in millions)
|
Amount of pre-tax gain/(loss)
recognized in OCI on Derivatives (Effective Portion) |
|
Classification of gain/(loss)
reclassified from AOCI into Income (Effective Portion) |
|
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
|
||||
Derivatives in cash flow hedging relationships
|
|||||||||
Equity contracts hedging Securities AFS
|
|
($10
|
)
|
|
|
|
|
$—
|
|
Interest rate contracts hedging Floating rate loans
1
|
234
|
|
|
Interest and fees on loans
|
|
218
|
|
||
Total
|
|
$224
|
|
|
|
|
|
$218
|
|
|
Three Months Ended June 30, 2011
|
||||||||||
(Dollars in millions)
|
Amount of gain/(loss) on Derivatives recognized in Income
|
|
Amount of gain/(loss)
on related Hedged Items recognized in Income |
|
Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
|
||||||
Derivatives in fair value hedging relationships
|
|||||||||||
Interest rate contracts hedging Fixed rate debt
1
|
|
$15
|
|
|
|
($15
|
)
|
|
|
$—
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2011
|
||||||||||
(Dollars in millions)
|
Amount of gain/(loss) on Derivatives recognized in Income
|
|
Amount of gain/(loss)
on related Hedged Items recognized in Income |
|
Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
|
||||||
Derivatives in fair value hedging relationships
|
|||||||||||
Interest rate contracts hedging Fixed rate debt
1
|
|
$15
|
|
|
|
($15
|
)
|
|
|
$—
|
|
(Dollars in millions)
|
Classification of gain/(loss)
recognized in Income on Derivatives |
|
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
June 30, 2011
|
|
Amount of gain/(loss)
recognized in Income on Derivatives for the Six Months Ended June 30, 2011 |
||||
Derivatives not designated as hedging instruments
|
|
|
|||||||
Interest rate contracts covering:
|
|
|
|
|
|
||||
Fixed rate debt
|
Trading income
|
|
|
$—
|
|
|
|
$1
|
|
MSRs
|
Mortgage servicing related income
|
|
134
|
|
|
91
|
|
||
LHFS, IRLCs, LHFI-FV
|
Mortgage production related income
|
|
(67
|
)
|
|
(93
|
)
|
||
Trading activity
|
Trading income
|
|
33
|
|
|
37
|
|
||
Foreign exchange rate contracts covering:
|
|
|
|
|
|
||||
Commercial loans and foreign-denominated debt
|
Trading income
|
|
29
|
|
|
110
|
|
||
Trading activity
|
Trading income
|
|
(5
|
)
|
|
(6
|
)
|
||
Credit contracts covering:
|
|
|
|
|
|
||||
Loans
|
Trading income
|
|
—
|
|
|
(1
|
)
|
||
Trading activity
|
Trading income
|
|
4
|
|
|
8
|
|
||
Equity contracts - trading activity
|
Trading income
|
|
5
|
|
|
8
|
|
||
Other contracts:
|
|
|
|
|
|
||||
IRLCs
|
Mortgage production related income
|
|
48
|
|
|
84
|
|
||
Total
|
|
|
|
$181
|
|
|
|
$239
|
|
•
|
The Company utilizes interest rate derivatives to mitigate exposures from various instruments.
|
◦
|
The Company is subject to interest rate risk on its fixed rate debt. As market interest rates move, the fair value of the Company’s debt is affected. To protect against this risk on certain debt issuances that the Company has elected to carry at fair value, the Company has entered into pay variable-receive fixed interest rate swaps that decrease in value in a rising rate environment and increase in value in a declining rate environment.
|
◦
|
The Company is exposed to risk on the returns of certain of its brokered deposits that are carried at fair value. To hedge against this risk, the Company has entered into interest rate derivatives that mirror the risk profile of the returns on these instruments.
|
◦
|
The Company is exposed to interest rate risk associated with MSRs, which the Company hedges with a combination of mortgage and interest rate derivatives, including forward and option contracts, futures, and forward rate agreements.
|
◦
|
The Company enters into mortgage and interest rate derivatives, including forward contracts, futures, and option contracts to mitigate interest rate risk associated with IRLCs and mortgage LHFS. The Company also previously entered into derivative contracts on mortgage LHFI reported at fair value, but there were none outstanding during 2012.
|
•
|
The Company was exposed to foreign exchange rate risk associated with certain senior notes denominated in pound sterling. This risk was economically hedged with cross currency swaps, which received pound sterling and paid U.S. dollars. During the
three months ended June 30, 2012
, this debt and the related hedges matured. Interest expense on the Consolidated Statements of Income reflects only the contractual interest rate on the debt based on the average spot exchange rate during the applicable period, while fair value changes on the derivatives and valuation adjustments on the debt are both recognized within trading income.
|
•
|
The Company enters into CDS to hedge credit risk associated with certain loans held within its Wholesale Banking segment. The Company accounts for these contracts as derivatives and, accordingly, recognizes these contracts at fair value, with changes in fair value recognized in other income in the Consolidated Statements of Income.
|
•
|
Trading activity, as illustrated in the tables within this footnote, primarily includes interest rate swaps, equity derivatives, CDS, futures, options and foreign currency contracts. These derivatives are entered into in a dealer capacity to facilitate client transactions or are utilized as a risk management tool by the Company as an end user in certain macro-hedging strategies. The macro-hedging strategies are focused on managing the Company’s overall interest rate risk exposure that is not otherwise hedged by derivatives or in connection with specific hedges and, therefore, the Company does not specifically associate individual derivatives with specific assets or liabilities.
|
|
Remaining Outstanding Balance by Year of Sale
|
||||||||||||||||||||||||||||||||||
(Dollars in billions)
|
2005
|
|
2006
|
|
2007
|
|
2008
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
Total
|
||||||||||||||||||
GSE
1
|
|
$3.7
|
|
|
|
$4.4
|
|
|
|
$8.7
|
|
|
|
$8.8
|
|
|
|
$20.8
|
|
|
|
$12.4
|
|
|
|
$12.5
|
|
|
|
$9.7
|
|
|
|
$81.0
|
|
Ginnie Mae
1
|
0.7
|
|
|
0.5
|
|
|
0.5
|
|
|
2.4
|
|
|
5.1
|
|
|
3.7
|
|
|
2.9
|
|
|
2.3
|
|
|
18.1
|
|
|||||||||
Non-agency
|
3.9
|
|
|
5.6
|
|
|
4.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.7
|
|
|||||||||
Total
|
|
$8.3
|
|
|
|
$10.5
|
|
|
|
$13.4
|
|
|
|
$11.2
|
|
|
|
$25.9
|
|
|
|
$16.1
|
|
|
|
$15.4
|
|
|
|
$12.0
|
|
|
|
$112.8
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Balance at beginning of period
|
|
$383
|
|
|
|
$270
|
|
|
|
$320
|
|
|
|
$265
|
|
Repurchase provision
|
155
|
|
|
90
|
|
|
330
|
|
|
170
|
|
||||
Charge-offs
|
(104
|
)
|
|
(61
|
)
|
|
(216
|
)
|
|
(136
|
)
|
||||
Balance at end of period
|
|
$434
|
|
|
|
$299
|
|
|
|
$434
|
|
|
|
$299
|
|
|
|
|
Fair Value Measurements at
June 30, 2012
Using
|
||||||||||||
(Dollars in millions)
|
Assets/Liabilities
|
|
Quoted Prices In Active
Markets for Identical Assets/Liabilities (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Trading assets:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$125
|
|
|
|
$125
|
|
|
|
$—
|
|
|
|
$—
|
|
Federal agency securities
|
521
|
|
|
—
|
|
|
521
|
|
|
—
|
|
||||
U.S. states and political subdivisions
|
58
|
|
|
—
|
|
|
58
|
|
|
—
|
|
||||
MBS - agency
|
371
|
|
|
—
|
|
|
371
|
|
|
—
|
|
||||
MBS - private
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
CDO/CLO securities
|
45
|
|
|
—
|
|
|
2
|
|
|
43
|
|
||||
ABS
|
37
|
|
|
—
|
|
|
32
|
|
|
5
|
|
||||
Corporate and other debt securities
|
560
|
|
|
—
|
|
|
560
|
|
|
—
|
|
||||
CP
|
113
|
|
|
—
|
|
|
113
|
|
|
—
|
|
||||
Equity securities
|
91
|
|
|
91
|
|
|
—
|
|
|
—
|
|
||||
Derivative contracts
|
3,127
|
|
|
208
|
|
|
2,919
|
|
|
—
|
|
||||
Trading loans
|
2,215
|
|
|
—
|
|
|
2,215
|
|
|
—
|
|
||||
Gross trading assets
|
7,264
|
|
|
424
|
|
|
6,791
|
|
|
49
|
|
||||
Offsetting collateral
1
|
(937
|
)
|
|
|
|
|
|
|
|||||||
Total trading assets
|
6,327
|
|
|
|
|
|
|
|
|||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
224
|
|
|
224
|
|
|
—
|
|
|
—
|
|
||||
Federal agency securities
|
1,783
|
|
|
—
|
|
|
1,783
|
|
|
—
|
|
||||
U.S. states and political subdivisions
|
372
|
|
|
—
|
|
|
317
|
|
|
55
|
|
||||
MBS - agency
|
18,110
|
|
|
—
|
|
|
18,110
|
|
|
—
|
|
||||
MBS - private
|
208
|
|
|
—
|
|
|
—
|
|
|
208
|
|
||||
ABS
|
348
|
|
|
—
|
|
|
331
|
|
|
17
|
|
||||
Corporate and other debt securities
|
45
|
|
|
—
|
|
|
40
|
|
|
5
|
|
||||
Coke common stock
|
2,346
|
|
|
2,346
|
|
|
—
|
|
|
—
|
|
||||
Other equity securities
2
|
973
|
|
|
116
|
|
|
—
|
|
|
857
|
|
||||
Total securities AFS
|
24,409
|
|
|
2,686
|
|
|
20,581
|
|
|
1,142
|
|
||||
LHFS:
|
|
|
|
|
|
|
|
||||||||
Residential loans
|
2,618
|
|
|
—
|
|
|
2,616
|
|
|
2
|
|
||||
Corporate and other loans
|
322
|
|
|
—
|
|
|
322
|
|
|
—
|
|
||||
Total LHFS
|
2,940
|
|
|
—
|
|
|
2,938
|
|
|
2
|
|
||||
LHFI
|
406
|
|
|
—
|
|
|
—
|
|
|
406
|
|
||||
MSRs
|
865
|
|
|
—
|
|
|
—
|
|
|
865
|
|
||||
Other assets
3
|
552
|
|
|
2
|
|
|
415
|
|
|
135
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Trading liabilities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
330
|
|
|
330
|
|
|
—
|
|
|
—
|
|
||||
Corporate and other debt securities
|
301
|
|
|
—
|
|
|
301
|
|
|
—
|
|
||||
Equity securities
|
22
|
|
|
22
|
|
|
—
|
|
|
—
|
|
||||
Derivative contracts
|
2,337
|
|
|
—
|
|
|
1,988
|
|
|
349
|
|
||||
Gross trading liabilities
|
2,990
|
|
|
352
|
|
|
2,289
|
|
|
349
|
|
||||
Offsetting collateral
1
|
(1,208
|
)
|
|
|
|
|
|
|
|||||||
Total trading liabilities
|
1,782
|
|
|
|
|
|
|
|
|||||||
Brokered time deposits
|
914
|
|
|
—
|
|
|
914
|
|
|
—
|
|
||||
Long-term debt
|
2,010
|
|
|
—
|
|
|
2,010
|
|
|
—
|
|
||||
Other liabilities
3,4
|
109
|
|
|
1
|
|
|
82
|
|
|
26
|
|
|
|
|
Fair Value Measurements at
December 31, 2011
Using
|
|
|||||||||||
(Dollars in millions)
|
Assets/Liabilities
|
|
Quoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Trading assets:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$144
|
|
|
|
$144
|
|
|
|
$—
|
|
|
|
$—
|
|
Federal agency securities
|
478
|
|
|
—
|
|
|
478
|
|
|
—
|
|
||||
U.S. states and political subdivisions
|
54
|
|
|
—
|
|
|
54
|
|
|
—
|
|
||||
MBS - agency
|
412
|
|
|
—
|
|
|
412
|
|
|
—
|
|
||||
MBS - private
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
CDO/CLO securities
|
45
|
|
|
—
|
|
|
2
|
|
|
43
|
|
||||
ABS
|
37
|
|
|
—
|
|
|
32
|
|
|
5
|
|
||||
Corporate and other debt securities
|
344
|
|
|
—
|
|
|
344
|
|
|
—
|
|
||||
CP
|
229
|
|
|
—
|
|
|
229
|
|
|
—
|
|
||||
Equity securities
|
91
|
|
|
91
|
|
|
—
|
|
|
—
|
|
||||
Derivative contracts
|
3,444
|
|
|
306
|
|
|
3,138
|
|
|
—
|
|
||||
Trading loans
|
2,030
|
|
|
—
|
|
|
2,030
|
|
|
—
|
|
||||
Gross trading assets
|
7,309
|
|
|
541
|
|
|
6,719
|
|
|
49
|
|
||||
Offsetting collateral
1
|
(1,030
|
)
|
|
|
|
|
|
|
|||||||
Total trading assets
|
6,279
|
|
|
|
|
|
|
|
|||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
694
|
|
|
694
|
|
|
—
|
|
|
—
|
|
||||
Federal agency securities
|
1,932
|
|
|
—
|
|
|
1,932
|
|
|
—
|
|
||||
U.S. states and political subdivisions
|
454
|
|
|
—
|
|
|
396
|
|
|
58
|
|
||||
MBS - agency
|
21,223
|
|
|
—
|
|
|
21,223
|
|
|
—
|
|
||||
MBS - private
|
221
|
|
|
—
|
|
|
—
|
|
|
221
|
|
||||
CDO/CLO securities
|
50
|
|
|
—
|
|
|
50
|
|
|
—
|
|
||||
ABS
|
464
|
|
|
—
|
|
|
448
|
|
|
16
|
|
||||
Corporate and other debt securities
|
51
|
|
|
—
|
|
|
46
|
|
|
5
|
|
||||
Coke common stock
|
2,099
|
|
|
2,099
|
|
|
—
|
|
|
—
|
|
||||
Other equity securities
2
|
929
|
|
|
188
|
|
|
—
|
|
|
741
|
|
||||
Total securities AFS
|
28,117
|
|
|
2,981
|
|
|
24,095
|
|
|
1,041
|
|
||||
LHFS:
|
|
|
|
|
|
|
|
||||||||
Residential loans
|
1,826
|
|
|
—
|
|
|
1,825
|
|
|
1
|
|
||||
Corporate and other loans
|
315
|
|
|
—
|
|
|
315
|
|
|
—
|
|
||||
Total LHFS
|
2,141
|
|
|
—
|
|
|
2,140
|
|
|
1
|
|
||||
LHFI
|
433
|
|
|
—
|
|
|
—
|
|
|
433
|
|
||||
MSRs
|
921
|
|
|
—
|
|
|
—
|
|
|
921
|
|
||||
Other assets
3
|
554
|
|
|
7
|
|
|
463
|
|
|
84
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Trading liabilities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
569
|
|
|
569
|
|
|
—
|
|
|
—
|
|
||||
Corporate and other debt securities
|
77
|
|
|
—
|
|
|
77
|
|
|
—
|
|
||||
Equity securities
|
37
|
|
|
37
|
|
|
—
|
|
|
—
|
|
||||
Derivative contracts
|
2,293
|
|
|
174
|
|
|
1,930
|
|
|
189
|
|
||||
Gross trading liabilities
|
2,976
|
|
|
780
|
|
|
2,007
|
|
|
189
|
|
||||
Offsetting collateral
1
|
(1,170
|
)
|
|
|
|
|
|
|
|||||||
Total trading liabilities
|
1,806
|
|
|
|
|
|
|
|
|||||||
Brokered time deposits
|
1,018
|
|
|
—
|
|
|
1,018
|
|
|
—
|
|
||||
Long-term debt
|
1,997
|
|
|
—
|
|
|
1,997
|
|
|
—
|
|
||||
Other liabilities
3,4
|
84
|
|
|
1
|
|
|
61
|
|
|
22
|
|
(Dollars in millions)
|
Aggregate
Fair Value June 30, 2012 |
|
Aggregate
Unpaid Principal
Balance under FVO
June 30, 2012
|
|
Fair Value
Over/(Under)
Unpaid Principal
|
||||||
Trading loans
|
|
$2,215
|
|
|
|
$2,197
|
|
|
|
$18
|
|
LHFS
|
2,939
|
|
|
2,819
|
|
|
120
|
|
|||
Nonaccrual loans
|
1
|
|
|
8
|
|
|
(7
|
)
|
|||
LHFI
|
386
|
|
|
407
|
|
|
(21
|
)
|
|||
Past due loans of 90 days or more
|
1
|
|
|
2
|
|
|
(1
|
)
|
|||
Nonaccrual loans
|
19
|
|
|
42
|
|
|
(23
|
)
|
|||
Brokered time deposits
|
914
|
|
|
914
|
|
|
—
|
|
|||
Long-term debt
|
2,010
|
|
|
1,900
|
|
|
110
|
|
|||
(Dollars in millions)
|
Aggregate
Fair Value December 31, 2011 |
|
Aggregate
Unpaid Principal
Balance under FVO
December 31, 2011
|
|
Fair Value
Over/(Under)
Unpaid Principal
|
||||||
Trading loans
|
|
$2,030
|
|
|
|
$2,010
|
|
|
|
$20
|
|
LHFS
|
2,139
|
|
|
2,077
|
|
|
62
|
|
|||
Past due loans of 90 days or more
|
1
|
|
|
1
|
|
|
—
|
|
|||
Nonaccrual loans
|
1
|
|
|
8
|
|
|
(7
|
)
|
|||
LHFI
|
407
|
|
|
439
|
|
|
(32
|
)
|
|||
Past due loans of 90 days or more
|
1
|
|
|
2
|
|
|
(1
|
)
|
|||
Nonaccrual loans
|
25
|
|
|
48
|
|
|
(23
|
)
|
|||
Brokered time deposits
|
1,018
|
|
|
1,011
|
|
|
7
|
|
|||
Long-term debt
|
1,997
|
|
|
1,901
|
|
|
96
|
|
|
|
Fair Value Gain/(Loss) for the Three Months Ended
June 30, 2012, for Items Measured at Fair Value Pursuant to Election of the FVO
|
|
Fair Value Gain/(Loss) for the Six Months Ended
June 30, 2012, for Items Measured at Fair Value Pursuant to Election of the FVO
|
||||||||||||||||||||||||||||
(Dollars in millions)
|
|
Trading income
|
|
Mortgage
Production
Related
Income 1 |
|
Mortgage
Servicing
Related
Income
|
|
Total
Changes in
Fair Values
Included in
Current-
Period
Earnings
2
|
|
Trading income
|
|
Mortgage
Production
Related
Income 1 |
|
Mortgage
Servicing
Related
Income
|
|
Total
Changes in
Fair Values
Included in
Current-
Period
Earnings
2
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trading loans
|
|
|
$8
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$8
|
|
|
|
$16
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$16
|
|
LHFS
|
|
(2
|
)
|
|
248
|
|
|
—
|
|
|
246
|
|
|
5
|
|
|
403
|
|
|
—
|
|
|
408
|
|
||||||||
LHFI
|
|
1
|
|
|
5
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
3
|
|
||||||||
MSRs
|
|
—
|
|
|
20
|
|
|
(281
|
)
|
|
(261
|
)
|
|
—
|
|
|
30
|
|
|
(214
|
)
|
|
(184
|
)
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Brokered time deposits
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||||||
Long-term debt
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
|
Fair Value Gain/(Loss) for the Three Months Ended
June 30, 2011, for Items Measured at Fair Value Pursuant to Election of the FVO
|
|
Fair Value Gain/(Loss) for the Six Months Ended
June 30, 2011, for Items Measured at Fair Value Pursuant to Election of the FVO
|
||||||||||||||||||||||||||||
(Dollars in millions)
|
|
Trading income
|
|
Mortgage
Production
Related
Income 1 |
|
Mortgage
Servicing
Related
Income
|
|
Total
Changes in
Fair Values
Included in
Current
Period
Earnings
2
|
|
Trading income
|
|
Mortgage
Production
Related
Income 1 |
|
Mortgage
Servicing
Related
Income
|
|
Total
Changes in
Fair Values
Included in
Current
Period
Earnings
2
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trading loans
|
|
|
$5
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$5
|
|
|
|
$12
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$12
|
|
LHFS
|
|
(4
|
)
|
|
119
|
|
|
—
|
|
|
115
|
|
|
(2
|
)
|
|
149
|
|
|
—
|
|
|
147
|
|
||||||||
LHFI
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(4
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
MSRs
|
|
—
|
|
|
2
|
|
|
(162
|
)
|
|
(160
|
)
|
|
—
|
|
|
4
|
|
|
(145
|
)
|
|
(141
|
)
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Brokered time deposits
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||||
Long-term debt
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|
(38
|
)
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
Level 3 Significant Unobservable Input Assumptions
|
||||||||
(Dollars in millions)
|
Fair value
June 30, 2012 |
|
Valuation Technique
|
|
Unobservable Input
1
|
|
Range
(weighted average)
|
||
Assets:
|
|
|
|
|
|
|
|
||
Trading assets:
|
|
|
|
|
|
|
|
||
MBS - private
|
|
$1
|
|
|
Third party pricing
|
|
N/A
|
|
|
CDO/CLO securities
|
43
|
|
|
Matrix pricing
|
|
Indicative pricing based on overcollateralization ratio
|
|
23-37 (32)
|
|
|
Estimated collateral losses
|
|
37-52% (43%)
|
||||||
ABS
|
5
|
|
|
Matrix pricing
|
|
Indicative pricing
|
|
45 (45)
|
|
Securities AFS:
|
|
|
|
|
|
|
|
||
U.S. states and political subdivisions
|
55
|
|
|
Matrix pricing
|
|
Indicative pricing
|
|
72-115 (89)
|
|
MBS - private
|
208
|
|
|
Third party pricing
|
|
N/A
|
|
|
|
ABS
|
17
|
|
|
Third party pricing
|
|
N/A
|
|
|
|
Corporate and other debt securities
|
5
|
|
|
Cost
|
|
N/A
|
|
|
|
Other equity securities
|
857
|
|
|
Cost
|
|
N/A
|
|
|
|
Residential LHFS
|
2
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
(10)-275 bps (94 bps)
|
|
|
Conditional prepayment rate
|
|
0-36% (23%)
|
||||||
|
Conditional default rate
|
|
0-25% (7%)
|
||||||
LHFI
|
386
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
(10)-275 bps (94 bps)
|
|
|
Conditional prepayment rate
|
|
0-36% (23%)
|
||||||
|
Conditional default rate
|
|
0-25% (7%)
|
||||||
|
20
|
|
|
Collateral based pricing
|
|
Appraised value
|
|
NM
2
|
|
MSRs
|
865
|
|
|
Discounted cash flow
|
|
Conditional prepayment rate
|
|
8-33% (20%)
|
|
|
Discount rate
|
|
8-28% (11%)
|
||||||
Other assets/(liabilities), net
3
|
135
|
|
|
Internal model
|
|
Pull through rate
|
|
1-99% (62%)
|
|
|
MSR value
|
|
2-200bps (104 bps)
|
||||||
|
(23
|
)
|
|
Internal model
|
|
Loan production volume
|
|
0-150% (92%)
|
|
Liabilities
|
|
|
|
|
|
|
|
||
Derivative contracts
|
349
|
|
|
Counterparty pricing
|
|
N/A
|
|
|
|
Fair Value Measurements
Using Significant Unobservable Inputs
|
|
||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Beginning
balance April 1, 2012 |
|
Included in
earnings |
|
OCI
|
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Transfers
to/from other balance sheet line items |
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
Fair value
June 30, 2012 |
|
Included in earnings (held at June 30, 2012)
1
|
|
||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
MBS - private
|
|
$1
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$1
|
|
|
|
$—
|
|
|
CDO/CLO securities
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
|||||||||||
ABS
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
Total trading assets
|
49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
|||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
U.S. states and political subdivisions
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
|||||||||||
MBS - private
|
216
|
|
|
(1
|
)
|
|
4
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
208
|
|
|
(1
|
)
|
|
|||||||||||
ABS
|
17
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
|||||||||||
Corporate and other debt securities
|
5
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
Other equity securities
|
831
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
857
|
|
|
—
|
|
|
|||||||||||
Total securities AFS
|
1,126
|
|
|
(1
|
)
|
2
|
5
|
|
|
74
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,142
|
|
|
(1
|
)
|
2
|
|||||||||||
LHFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential loans
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|
2
|
|
|
—
|
|
|
|||||||||||
LHFI
|
413
|
|
|
5
|
|
3
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
1
|
|
|
1
|
|
|
—
|
|
|
406
|
|
|
—
|
|
|
|||||||||||
Other assets/(liabilities), net
|
91
|
|
|
258
|
|
4
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
1
|
|
|
(218
|
)
|
|
—
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
|||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Derivative contracts
|
(246
|
)
|
|
—
|
|
|
(103
|
)
|
6
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(349
|
)
|
|
—
|
|
|
|
Fair Value Measurements
Using Significant Unobservable Inputs
|
|
||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Beginning
balance January 1, 2012 |
|
Included in
earnings |
|
OCI
|
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Transfers
to/from other balance sheet line items |
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
Fair value
June 30, 2012 |
|
Included in earnings (held at June 30, 2012)
1
|
|
||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
MBS - private
|
|
$1
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$1
|
|
|
|
$—
|
|
|
CDO/CLO securities
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
(1
|
)
|
|
|||||||||||
ABS
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
Total trading assets
|
49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
(1
|
)
|
5
|
|||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
U.S. states and political subdivisions
|
58
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
|||||||||||
MBS - private
|
221
|
|
|
(4
|
)
|
|
14
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
208
|
|
|
(4
|
)
|
|
|||||||||||
ABS
|
16
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
|||||||||||
Corporate and other debt securities
|
5
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
Other equity securities
|
741
|
|
|
—
|
|
|
—
|
|
|
162
|
|
|
—
|
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
857
|
|
|
—
|
|
|
|||||||||||
Total securities AFS
|
1,041
|
|
|
(4
|
)
|
2
|
15
|
|
|
164
|
|
|
—
|
|
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,142
|
|
|
(4
|
)
|
2
|
|||||||||||
LHFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential loans
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
4
|
|
|
(5
|
)
|
|
2
|
|
|
—
|
|
|
|||||||||||
LHFI
|
433
|
|
|
1
|
|
3
|
—
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
(5
|
)
|
|
3
|
|
|
—
|
|
|
406
|
|
|
1
|
|
3
|
|||||||||||
Other assets/(liabilities), net
|
62
|
|
|
438
|
|
4
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
22
|
|
|
(390
|
)
|
|
—
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
|||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Derivative contracts
|
(189
|
)
|
|
1
|
|
5
|
(161
|
)
|
6
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(349
|
)
|
|
1
|
|
5
|
|
Fair Value Measurements
Using Significant Unobservable Inputs
|
|
|
||||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Beginning
balance April 1, 2011 |
|
Included in
earnings |
|
OCI
|
|
Sales
|
|
Settlements
|
|
Transfers
to/from other balance sheet line items |
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
Fair value
June 30, 2011 |
|
Included in earnings (held at June 30, 2011)
1
|
|
|||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
MBS - private
|
|
$2
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$2
|
|
|
|
$—
|
|
|
|
CDO/CLO securities
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
|||||||||||
ABS
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
Equity securities
|
56
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
|||||||||||
Total trading assets
|
105
|
|
|
4
|
|
2
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
|||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
U.S. states and political subdivisions
|
73
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
—
|
|
|
|||||||||||
MBS - private
|
338
|
|
|
(1
|
)
|
|
(7
|
)
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
311
|
|
|
1
|
|
|
|||||||||||
ABS
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
|||||||||||
Corporate and other debt securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
Other equity securities
|
690
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
597
|
|
|
—
|
|
|
|||||||||||
Total securities AFS
|
1,126
|
|
|
(1
|
)
|
3
|
(7
|
)
|
|
—
|
|
|
(118
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|
1
|
|
3
|
|||||||||||
LHFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Residential loans
|
17
|
|
|
1
|
|
6
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(7
|
)
|
|
5
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
|||||||||||
LHFI
|
457
|
|
|
1
|
|
5
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
449
|
|
|
(1
|
)
|
5
|
|||||||||||
Other assets/(liabilities), net
|
(2
|
)
|
|
48
|
|
6
|
—
|
|
|
—
|
|
|
6
|
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
|||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Derivative contracts
|
(161
|
)
|
|
1
|
|
2
|
6
|
|
7
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154
|
)
|
|
—
|
|
|
|
Fair Value Measurements
Using Significant Unobservable Inputs
|
|
|
||||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Beginning
balance January 1, 2011 |
|
Included in
earnings |
|
OCI
|
|
Sales
|
|
Settlements
|
|
Transfers
to/from other balance sheet line items |
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
Fair value
June 30, 2011 |
|
Included in earnings (held at June 30, 2011)
1
|
|
|||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
MBS - private
|
|
$6
|
|
|
|
$2
|
|
|
|
$—
|
|
|
|
($5
|
)
|
|
|
($1
|
)
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$2
|
|
|
|
$—
|
|
|
|
CDO/CLO securities
|
53
|
|
|
31
|
|
|
—
|
|
|
(21
|
)
|
|
(1
|
)
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
42
|
|
|
15
|
|
|
|||||||||||
ABS
|
27
|
|
|
9
|
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
2
|
|
|
|||||||||||
Equity securities
|
123
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
(122
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
|||||||||||
Total trading assets
|
209
|
|
|
54
|
|
2
|
—
|
|
|
(57
|
)
|
|
(124
|
)
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
62
|
|
|
17
|
|
2
|
|||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
U.S. states and political subdivisions
|
74
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
—
|
|
|
|||||||||||
MBS - private
|
347
|
|
|
(3
|
)
|
|
9
|
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
311
|
|
|
(3
|
)
|
|
|||||||||||
ABS
|
20
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
|||||||||||
Corporate and other debt securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
Other equity securities
|
690
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
597
|
|
|
—
|
|
|
|||||||||||
Total securities AFS
|
1,136
|
|
|
(2
|
)
|
3
|
10
|
|
|
—
|
|
|
(144
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|
(3
|
)
|
3
|
|||||||||||
LHFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Residential loans
|
2
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(1
|
)
|
|
2
|
|
|
16
|
|
|
(2
|
)
|
|
3
|
|
|
—
|
|
|
|||||||||||
Corporate and other loans
|
5
|
|
|
(1
|
)
|
4
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||||||||
LHFI
|
492
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
449
|
|
|
(3
|
)
|
5
|
|||||||||||
Other assets/(liabilities), net
|
(24
|
)
|
|
84
|
|
6
|
—
|
|
|
—
|
|
|
6
|
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
|||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Derivative contracts
|
(145
|
)
|
|
1
|
|
2
|
(10
|
)
|
7
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154
|
)
|
|
—
|
|
|
|
|
|
Fair Value Measurement at
June 30, 2012,
Using
|
|
|
|
|
|
|||||||||||||||||||
(Dollars in millions)
|
Net
Carrying
Value
|
|
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Valuation
Allowance
|
|
Gains/(Losses) for the Three Months Ended
June 30, 2012
|
|
Gains/(Losses) for the Six Months Ended
June 30, 2012
|
||||||||||||||
LHFS
|
|
$17
|
|
|
|
$—
|
|
|
|
$17
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
LHFI
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||||||
OREO
|
331
|
|
|
—
|
|
|
260
|
|
|
71
|
|
|
(136
|
)
|
|
—
|
|
|
3
|
|
|||||||
Other Assets
|
92
|
|
|
—
|
|
|
21
|
|
|
71
|
|
|
(60
|
)
|
|
(6
|
)
|
|
(12
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Fair Value Measurement at
December 31, 2011,
Using
|
|
|
|
|
|
|||||||||||||||||||
(Dollars in millions)
|
Net
Carrying
Value
|
|
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Valuation
Allowance
|
|
Gains/(Losses) for the Year Ended December 31, 2011
|
|
|
||||||||||||||
LHFS
|
|
$212
|
|
|
|
$—
|
|
|
|
$108
|
|
|
|
$104
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
||
LHFI
|
72
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
(7
|
)
|
|
—
|
|
|
|
||||||||
OREO
|
479
|
|
|
—
|
|
|
372
|
|
|
107
|
|
|
(127
|
)
|
|
(9
|
)
|
|
|
||||||||
Affordable Housing
|
324
|
|
|
—
|
|
|
—
|
|
|
324
|
|
|
—
|
|
|
(10
|
)
|
|
|
||||||||
Other Assets
|
45
|
|
|
—
|
|
|
24
|
|
|
21
|
|
|
(20
|
)
|
|
(17
|
)
|
|
|
|
June 30, 2012
|
|
Fair Value Measurement Using
|
|
||||||||||||||||
(Dollars in millions)
|
Carrying
Amount
|
|
Fair
Value
|
|
Quoted Prices In Active
Markets for Identical Assets/Liabilities (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$6,739
|
|
|
|
$6,739
|
|
|
|
$6,739
|
|
|
|
$—
|
|
|
|
$—
|
|
(a)
|
Trading assets
|
6,327
|
|
|
6,327
|
|
|
424
|
|
|
5,854
|
|
|
49
|
|
(b)
|
|||||
Securities AFS
|
24,409
|
|
|
24,409
|
|
|
2,686
|
|
|
20,581
|
|
|
1,142
|
|
(b)
|
|||||
LHFS
|
3,123
|
|
|
3,127
|
|
|
—
|
|
|
3,072
|
|
|
55
|
|
(c)
|
|||||
LHFI, net
|
122,260
|
|
|
118,403
|
|
|
—
|
|
|
4,941
|
|
|
113,462
|
|
(d)
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer and commercial deposits
|
|
$126,145
|
|
|
|
$126,456
|
|
|
|
$—
|
|
|
|
$126,456
|
|
|
|
$—
|
|
(e)
|
Brokered time deposits
|
2,208
|
|
|
2,227
|
|
|
—
|
|
|
2,227
|
|
|
—
|
|
(f)
|
|||||
Foreign deposits
|
50
|
|
|
50
|
|
|
—
|
|
|
50
|
|
|
—
|
|
(f)
|
|||||
Short-term borrowings
|
9,528
|
|
|
9,528
|
|
|
—
|
|
|
9,528
|
|
|
—
|
|
(f)
|
|||||
Long-term debt
|
13,076
|
|
|
12,856
|
|
|
—
|
|
|
11,116
|
|
|
1,740
|
|
(f)
|
|||||
Trading liabilities
|
1,782
|
|
|
1,782
|
|
|
352
|
|
|
1,081
|
|
|
349
|
|
(b)
|
|
December 31, 2011
|
|
||||||
(Dollars in millions)
|
Carrying
Amount
|
|
Fair
Value
|
|
||||
Financial assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$4,509
|
|
|
|
$4,509
|
|
(a)
|
Trading assets
|
6,279
|
|
|
6,279
|
|
(b)
|
||
Securities AFS
|
28,117
|
|
|
28,117
|
|
(b)
|
||
LHFS
|
2,353
|
|
|
2,355
|
|
(c)
|
||
LHFI, net
|
120,038
|
|
|
115,685
|
|
(d)
|
||
Financial liabilities
|
|
|
|
|
||||
Consumer and commercial deposits
|
|
$125,611
|
|
|
|
$125,963
|
|
(e)
|
Brokered time deposits
|
2,281
|
|
|
2,289
|
|
(f)
|
||
Foreign deposits
|
30
|
|
|
30
|
|
(f)
|
||
Short-term borrowings
|
11,466
|
|
|
11,466
|
|
(f)
|
||
Long-term debt
|
10,908
|
|
|
10,515
|
|
(f)
|
||
Trading liabilities
|
1,806
|
|
|
1,806
|
|
(b)
|
(a)
|
Cash and cash equivalents are valued at their carrying amounts reported in the balance sheet, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments.
|
(b)
|
Securities AFS, trading assets, and trading liabilities that are classified as level 1 are valued based on quoted market prices. For those instruments classified as level 2 or 3, refer to the respective valuation discussions within this footnote.
|
(c)
|
LHFS are generally valued based on observable current market prices or, if quoted market prices are not available, on quoted market prices of similar instruments. Refer to the LHFS section within this footnote for further discussion of the LHFS carried at fair value. In instances when significant valuation assumptions are not readily observable in the market, instruments are valued based on the best available data to approximate fair value. This data may be internally-developed and considers risk premiums that a market participant would require under then-current market conditions.
|
(d)
|
LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of
|
(e)
|
Deposit liabilities with no defined maturity such as DDAs, NOW/money market accounts, and savings accounts have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for CDs are estimated using a discounted cash flow calculation that applies current interest rates to a schedule of aggregated expected maturities. The assumptions used in the discounted cash flow analysis are expected to approximate those that market participants would use in valuing deposits. The value of long-term relationships with depositors is not taken into account in estimating fair values.
|
(f)
|
Fair values for foreign deposits, certain brokered time deposits, short-term borrowings, and certain long-term debt are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis and the Company’s current incremental borrowing rates for similar types of instruments. For brokered time deposits and long-term debt that the Company carries at fair value, refer to the respective valuation sections within this footnote. For Level 3 debt, the terms are unique in nature or there are otherwise no similar instruments than can be used to value the instrument without using significant unobservable assumptions. In this situation, we look at current borrowing rates along with the collateral levels that secure the debt when determining an appropriate fair value adjustment.
|
•
|
Consumer Banking provides services to consumers through an extensive network of traditional and in-store branches, ATMs, the internet (
www.suntrust.com
), and telephone (1-800-SUNTRUST). Financial products and services offered to consumers include consumer deposits, home equity lines, consumer lines, indirect auto, student lending, bank card, and other consumer loan and fee-based products. Consumer Banking also serves as an entry point for clients and provides services for other lines of business.
|
•
|
The Private Wealth Management business provides a full array of wealth management products and professional services to both individual and institutional clients including brokerage, professional investment management, and trust services to clients seeking active management of their financial resources. Private Wealth Management's primary businesses include Private Banking, STIS and IIS. Private Banking offers a full array of loan and deposit products to clients. STIS offers discount/online and full service brokerage services to individual clients. IIS includes Employee Benefit Solutions, Foundations & Endowments Specialty Group, and Escrow Services.
|
•
|
CIB offers a wide array of traditional banking products (lending and treasury management services) and investment banking services. CIB serves clients in the large, middle corporate and commercial markets. The Corporate Banking Group generally serves clients with greater than $750 million in annual revenues and is focused on selected industry sectors: consumer and retail energy, financial services and technology, healthcare, and media and communications. The Middle Market Group generally serves clients with annual revenue ranging from $100 million to $750 million. Comprehensive investment banking products and services are provided by STRH to clients in both Wholesale Banking and Private Wealth Management, including strategic advice, raising capital, and financial risk management.
|
•
|
Diversified Commercial Banking offers an array of traditional banking products and investment banking services as needed for the Company's small business clients, commercial clients, dealer services (financing dealer floor plan inventories), not-for-profit and government entities, and insurance premium financing through Premium Assignment Corporation.
|
•
|
Commercial Real Estate provides financial solutions for commercial real estate developers and investors, including construction, mini-perm, and permanent real estate financing, as well as tailored financing and equity investment solutions for community development and affordable housing projects delivered through SunTrust Community Capital. Leasing, offering equipment lease financing solutions, is also managed within this segment.
|
•
|
GenSpring provides family office solutions to ultra high net worth individuals and their families. Utilizing teams of multi-disciplinary specialists with expertise in investments, tax, accounting, estate planning and other wealth management disciplines, GenSpring helps families manage and sustain their wealth across multiple generations.
|
•
|
RidgeWorth, an SEC registered investment advisor, serves as investment manager for the RidgeWorth Funds as well as individual clients. RidgeWorth is also a holding company with ownership in other institutional asset management boutiques offering a wide array of equity and fixed income capabilities. These boutiques include Ceredex Value Advisors, Certium Asset Management, Seix Investment Advisors, Silvant Capital Management, StableRiver Capital Management, and Zevenbergen Capital Investments.
|
•
|
Treasury & Payment Solutions provides all SunTrust business clients with services required to manage their payments and receipts, and the ability to manage and optimize their deposits across all aspects of their business. Treasury & Payment Solutions operates all electronic and paper payment types, including card, wire transfer, ACH, check and cash, while providing clients the means to manage their accounts electronically online both domestically and internationally.
|
•
|
Net interest income
– All net interest income is presented on a FTE basis. The revenue gross-up has been applied to tax-exempt loans and investments to make them comparable to other taxable products. The segments have also been matched maturity funds transfer priced, generating credits or charges based on the economic value or cost created by the assets and liabilities of each segment. The mismatch between funds credits and funds charges at the segment level resides in Reconciling Items. The change in the matched maturity funds mismatch is generally attributable to corporate balance sheet management strategies.
|
•
|
Provision for credit losses
- Represents net charge-offs by segment. The difference between the segment net charge-offs and the consolidated provision for credit losses is reported in Reconciling Items.
|
•
|
Provision/(benefit) for income taxes
- Calculated using a nominal income tax rate for each segment. This calculation includes the impact of various income adjustments, such as the reversal of the FTE gross up on tax-exempt assets, tax adjustments, and credits that are unique to each business segment. The difference between the calculated provision/(benefit) for income taxes at the segment level and the consolidated provision/(benefit) for income taxes is reported in Reconciling Items.
|
•
|
Operational Costs
– Expenses are charged to the segments based on various statistical volumes multiplied by activity based cost rates. As a result of the activity based costing process, planned residual expenses are also allocated to the segments. The recoveries for the majority of these costs are in the Corporate Other.
|
•
|
Support and Overhead Costs
– Expenses not directly attributable to a specific segment are allocated based on various drivers (e.g., number of full-time equivalent employees and volume of loans and deposits). The recoveries for these allocations are in Corporate Other.
|
•
|
Sales and Referral Credits
– Segments may compensate another segment for referring or selling certain products. The majority of the revenue resides in the segment where the product is ultimately managed.
|
|
Three Months Ended June 30, 2012
|
||||||||||||||||||||||
(Dollars in millions)
|
Consumer Banking and Private Wealth Management
|
|
Wholesale Banking
|
|
Mortgage Banking
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||||
Average total assets
|
|
$46,337
|
|
|
|
$64,603
|
|
|
|
$35,788
|
|
|
|
$29,414
|
|
|
|
$1,773
|
|
|
|
$177,915
|
|
Average total liabilities
|
78,107
|
|
|
53,209
|
|
|
4,347
|
|
|
21,960
|
|
|
(180
|
)
|
|
157,443
|
|
||||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,472
|
|
|
20,472
|
|
||||||
Net interest income
|
|
$630
|
|
|
|
$433
|
|
|
|
$131
|
|
|
|
$94
|
|
|
|
($14
|
)
|
|
|
$1,274
|
|
FTE adjustment
|
—
|
|
|
32
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
32
|
|
||||||
Net interest income - FTE
1
|
630
|
|
|
465
|
|
|
131
|
|
|
95
|
|
|
(15
|
)
|
|
1,306
|
|
||||||
Provision for credit losses
2
|
118
|
|
|
67
|
|
|
165
|
|
|
—
|
|
|
(50
|
)
|
|
300
|
|
||||||
Net interest income/(loss) after provision for credit losses
|
512
|
|
|
398
|
|
|
(34
|
)
|
|
95
|
|
|
35
|
|
|
1,006
|
|
||||||
Total noninterest income
|
340
|
|
|
383
|
|
|
179
|
|
|
41
|
|
|
(3
|
)
|
|
940
|
|
||||||
Total noninterest expense
|
688
|
|
|
515
|
|
|
348
|
|
|
(3
|
)
|
|
(2
|
)
|
|
1,546
|
|
||||||
Income/(loss) before provision/(benefit) for income taxes
|
164
|
|
|
266
|
|
|
(203
|
)
|
|
139
|
|
|
34
|
|
|
400
|
|
||||||
Provision/(benefit) for income taxes
3
|
59
|
|
|
78
|
|
|
(83
|
)
|
|
54
|
|
|
15
|
|
|
123
|
|
||||||
Net income/(loss) including income attributable to noncontrolling interest
|
105
|
|
|
188
|
|
|
(120
|
)
|
|
85
|
|
|
19
|
|
|
277
|
|
||||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(1
|
)
|
|
2
|
|
||||||
Net income/(loss)
|
|
$105
|
|
|
|
$188
|
|
|
|
($120
|
)
|
|
|
$82
|
|
|
|
$20
|
|
|
|
$275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2011
|
||||||||||||||||||||||
(Dollars in millions)
|
Consumer Banking and Private Wealth Management
|
|
Wholesale Banking
|
|
Mortgage Banking
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||||
Average total assets
|
|
$43,244
|
|
|
|
$62,255
|
|
|
|
$33,363
|
|
|
|
$31,281
|
|
|
|
$384
|
|
|
|
$170,527
|
|
Average total liabilities
|
77,718
|
|
|
54,932
|
|
|
3,427
|
|
|
14,927
|
|
|
14
|
|
|
151,018
|
|
||||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,509
|
|
|
19,509
|
|
||||||
Net interest income
|
|
$620
|
|
|
|
$399
|
|
|
|
$112
|
|
|
|
$119
|
|
|
|
$9
|
|
|
|
$1,259
|
|
FTE adjustment
|
—
|
|
|
26
|
|
|
—
|
|
|
2
|
|
|
(1
|
)
|
|
27
|
|
||||||
Net interest income - FTE
1
|
620
|
|
|
425
|
|
|
112
|
|
|
121
|
|
|
8
|
|
|
1,286
|
|
||||||
Provision for credit losses
2
|
177
|
|
|
175
|
|
|
153
|
|
|
—
|
|
|
(113
|
)
|
|
392
|
|
||||||
Net interest income/(loss) after provision for credit losses
|
443
|
|
|
250
|
|
|
(41
|
)
|
|
121
|
|
|
121
|
|
|
894
|
|
||||||
Total noninterest income
|
372
|
|
|
402
|
|
|
75
|
|
|
67
|
|
|
(4
|
)
|
|
912
|
|
||||||
Total noninterest expense
|
736
|
|
|
549
|
|
|
274
|
|
|
(14
|
)
|
|
(3
|
)
|
|
1,542
|
|
||||||
Income/(loss) before provision/(benefit) for income taxes
|
79
|
|
|
103
|
|
|
(240
|
)
|
|
202
|
|
|
120
|
|
|
264
|
|
||||||
Provision/(benefit) for income taxes
3
|
29
|
|
|
18
|
|
|
(93
|
)
|
|
84
|
|
|
47
|
|
|
85
|
|
||||||
Net income/(loss) including income attributable to noncontrolling interest
|
50
|
|
|
85
|
|
|
(147
|
)
|
|
118
|
|
|
73
|
|
|
179
|
|
||||||
Net income attributable to noncontrolling interest
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
1
|
|
||||||
Net income/(loss)
|
|
$50
|
|
|
|
$86
|
|
|
|
($147
|
)
|
|
|
$116
|
|
|
|
$73
|
|
|
|
$178
|
|
|
Six Months Ended June 30, 2012
|
||||||||||||||||||||||
(Dollars in millions)
|
Consumer Banking and Private Wealth Management
|
|
Wholesale Banking
|
|
Mortgage Banking
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||||
Average total assets
|
|
$46,222
|
|
|
|
$63,979
|
|
|
|
$35,512
|
|
|
|
$30,332
|
|
|
|
$1,340
|
|
|
|
$177,385
|
|
Average total liabilities
|
77,839
|
|
|
54,234
|
|
|
4,088
|
|
|
21,185
|
|
|
(325
|
)
|
|
157,021
|
|
||||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,364
|
|
|
20,364
|
|
||||||
Net interest income
|
|
$1,263
|
|
|
|
$862
|
|
|
|
$257
|
|
|
|
$220
|
|
|
|
($17
|
)
|
|
|
$2,585
|
|
FTE adjustment
|
—
|
|
|
61
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
63
|
|
||||||
Net interest income - FTE
1
|
1,263
|
|
|
923
|
|
|
257
|
|
|
222
|
|
|
(17
|
)
|
|
2,648
|
|
||||||
Provision for credit losses
2
|
272
|
|
|
168
|
|
|
331
|
|
|
—
|
|
|
(154
|
)
|
|
617
|
|
||||||
Net interest income/(loss) after provision for credit losses
|
991
|
|
|
755
|
|
|
(74
|
)
|
|
222
|
|
|
137
|
|
|
2,031
|
|
||||||
Total noninterest income
|
662
|
|
|
762
|
|
|
336
|
|
|
61
|
|
|
(5
|
)
|
|
1,816
|
|
||||||
Total noninterest expense
|
1,387
|
|
|
1,030
|
|
|
686
|
|
|
(11
|
)
|
|
(5
|
)
|
|
3,087
|
|
||||||
Income/(loss) before provision/(benefit) for income taxes
|
266
|
|
|
487
|
|
|
(424
|
)
|
|
294
|
|
|
137
|
|
|
760
|
|
||||||
Provision/(benefit) for income taxes
3
|
96
|
|
|
137
|
|
|
(170
|
)
|
|
103
|
|
|
57
|
|
|
223
|
|
||||||
Net income/(loss) including income attributable to noncontrolling interest
|
170
|
|
|
350
|
|
|
(254
|
)
|
|
191
|
|
|
80
|
|
|
537
|
|
||||||
Net income attributable to noncontrolling interest
|
—
|
|
|
8
|
|
|
—
|
|
|
5
|
|
|
(1
|
)
|
|
12
|
|
||||||
Net income/(loss)
|
|
$170
|
|
|
|
$342
|
|
|
|
($254
|
)
|
|
|
$186
|
|
|
|
$81
|
|
|
|
$525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2011
|
||||||||||||||||||||||
(Dollars in millions)
|
Consumer Banking and Private Wealth Management
|
|
Wholesale Banking
|
|
Mortgage Banking
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||||
Average total assets
|
|
$43,329
|
|
|
|
$61,772
|
|
|
|
$33,947
|
|
|
|
$31,082
|
|
|
|
$1,659
|
|
|
|
$171,789
|
|
Average total liabilities
|
77,283
|
|
|
54,468
|
|
|
3,559
|
|
|
15,202
|
|
|
(21
|
)
|
|
150,491
|
|
||||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,298
|
|
|
21,298
|
|
||||||
Net interest income
|
|
$1,239
|
|
|
|
$789
|
|
|
|
$232
|
|
|
|
$240
|
|
|
|
$8
|
|
|
|
$2,508
|
|
FTE adjustment
|
—
|
|
|
51
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
55
|
|
||||||
Net interest income - FTE
1
|
1,239
|
|
|
840
|
|
|
232
|
|
|
243
|
|
|
9
|
|
|
2,563
|
|
||||||
Provision for credit losses
2
|
379
|
|
|
321
|
|
|
376
|
|
|
—
|
|
|
(237
|
)
|
|
839
|
|
||||||
Net interest income/(loss) after provision for credit losses
|
860
|
|
|
519
|
|
|
(144
|
)
|
|
243
|
|
|
246
|
|
|
1,724
|
|
||||||
Total noninterest income
|
731
|
|
|
791
|
|
|
156
|
|
|
135
|
|
|
(18
|
)
|
|
1,795
|
|
||||||
Total noninterest expense
|
1,433
|
|
|
1,086
|
|
|
526
|
|
|
(19
|
)
|
|
(19
|
)
|
|
3,007
|
|
||||||
Income/(loss) before provision/(benefit) for income taxes
|
158
|
|
|
224
|
|
|
(514
|
)
|
|
397
|
|
|
247
|
|
|
512
|
|
||||||
Provision/(benefit) for income taxes
3
|
58
|
|
|
39
|
|
|
(199
|
)
|
|
150
|
|
|
98
|
|
|
146
|
|
||||||
Net income/(loss) including income attributable to noncontrolling interest
|
100
|
|
|
185
|
|
|
(315
|
)
|
|
247
|
|
|
149
|
|
|
366
|
|
||||||
Net income attributable to noncontrolling interest
|
—
|
|
|
4
|
|
|
—
|
|
|
5
|
|
|
(1
|
)
|
|
8
|
|
||||||
Net income/(loss)
|
|
$100
|
|
|
|
$181
|
|
|
|
($315
|
)
|
|
|
$242
|
|
|
|
$150
|
|
|
|
$358
|
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
The Consumer Banking and Private Wealth Management segment had higher net income, driven by increased net interest income, lower credit losses, and lower noninterest expenses during the
three and six months ended June 30, 2012
compared to the same periods in 2011. Net income was
110%
and
70%
higher as net interest income grew and the provision for credit losses declined
33%
and
28%
during the
three and six months ended June 30, 2012
, respectively, compared to the same periods in 2011.
|
•
|
PPG positively impacted the segment as noninterest expense declined
7%
and
3%
during the
three and six months ended June 30, 2012
, respectively, compared to the same periods in 2011. This led to a
319
basis point and
72
basis point improvement in the efficiency ratio compared to the
three and six months ended June 30, 2011
, respectively.
|
•
|
Average loans and consumer and commercial deposits increased
7%
and
1%
, respectively, during both the
three and six months ended June 30, 2012
compared to the same periods in 2011. Additionally, favorable trends continued toward lower-cost deposit products.
|
•
|
The Wholesale Banking segment also had higher net income, driven by increased net interest income, lower credit losses, and lower noninterest expenses when compared to the
three and six months ended June 30, 2011
. Net income was
119%
and
89%
higher as net interest income grew
9%
and
10%
, and the provision for credit losses declined
62%
and
48%
during the
three and six months ended June 30, 2012
, respectively. The CIB line of business achieved its highest quarterly profit in its history during the second quarter of 2012.
|
•
|
PPG positively impacted the segment, as noninterest expense declined
6%
and
5%
during the
three and six months ended June 30, 2012
, respectively, compared to the same periods in 2011. This led to a
570
basis point and
540
basis point, improvement in the efficiency ratio compared to the
three and six months ended June 30, 2011
, respectively. The efficiency ratio was approximately
61%
during the
three and six months ended June 30, 2012
.
|
•
|
Average loans and consumer and commercial deposits increased during each of the
three and six months ended June 30, 2012
periods compared to comparable periods in 2011.
|
•
|
The Mortgage Banking segment had an improvement in net loss of
18%
and
19%
during the
three and six months ended June 30, 2012
, respectively, compared to the same periods in 2011. The results were driven by a
17%
and
11%
increase in net interest income and a
139%
and
115%
increase in noninterest income during the
three and six months ended June 30, 2012
, respectively, compared to 2011. Partially offsetting the increases in revenue were increases in noninterest expenses of
27%
and
30%
during the
three and six months ended June 30, 2012
, respectively, compared to 2011.
|
•
|
While we continue to manage through the legacy mortgage issues, we experienced healthy mortgage production, increasing
76%
and
52%
compared to the
three and six months ended June 30, 2011
, respectively. Given the current rate environment and some overall improvements in the housing market, coupled with the HARP pipeline, we expect near-term mortgage revenue to remain strong.
|
SELECTED QUARTERLY FINANCIAL DATA
|
|
|
|
|
|
|
Table 1
|
|
|||||||
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions, except per share data)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Summary of Operations
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$1,492
|
|
|
|
$1,546
|
|
|
|
$3,026
|
|
|
|
$3,100
|
|
Interest expense
|
218
|
|
|
287
|
|
|
441
|
|
|
592
|
|
||||
Net interest income
|
1,274
|
|
|
1,259
|
|
|
2,585
|
|
|
2,508
|
|
||||
Provision for credit losses
|
300
|
|
|
392
|
|
|
617
|
|
|
839
|
|
||||
Net interest income after provision for credit losses
|
974
|
|
|
867
|
|
|
1,968
|
|
|
1,669
|
|
||||
Noninterest income
|
940
|
|
|
912
|
|
|
1,816
|
|
|
1,795
|
|
||||
Noninterest expense
|
1,546
|
|
|
1,542
|
|
|
3,087
|
|
|
3,007
|
|
||||
Net income before provision for income taxes
|
368
|
|
|
237
|
|
|
697
|
|
|
457
|
|
||||
Provision for income taxes
|
91
|
|
|
58
|
|
|
160
|
|
|
91
|
|
||||
Net income attributable to noncontrolling interest
|
2
|
|
|
1
|
|
|
12
|
|
|
8
|
|
||||
Net income
|
|
$275
|
|
|
|
$178
|
|
|
|
$525
|
|
|
|
$358
|
|
Net income available to common shareholders
|
|
$270
|
|
|
|
$174
|
|
|
|
$515
|
|
|
|
$212
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income - FTE
|
|
$1,306
|
|
|
|
$1,286
|
|
|
|
$2,648
|
|
|
|
$2,563
|
|
Total revenue - FTE
|
2,246
|
|
|
2,198
|
|
|
4,464
|
|
|
4,358
|
|
||||
Total revenue - FTE excluding securities gains, net
1
|
2,232
|
|
|
2,166
|
|
|
4,432
|
|
|
4,262
|
|
||||
Net income per average common share:
|
|
|
|
|
|
|
|
||||||||
Diluted
|
0.50
|
|
|
0.33
|
|
|
0.96
|
|
|
0.41
|
|
||||
Diluted excluding effect of accelerated accretion associated with the repurchase of preferred stock issued to the U.S. Treasury
|
0.50
|
|
|
0.33
|
|
|
0.96
|
|
|
0.55
|
|
||||
Basic
|
0.51
|
|
|
0.33
|
|
|
0.97
|
|
|
0.41
|
|
||||
Dividends paid per average common share
|
0.05
|
|
|
0.01
|
|
|
0.10
|
|
|
0.02
|
|
||||
Book value per common share
|
37.69
|
|
|
36.30
|
|
|
|
|
|
||||||
Tangible book value per common share
2
|
26.02
|
|
|
24.57
|
|
|
|
|
|
||||||
Market price:
|
|
|
|
|
|
|
|
||||||||
High
|
24.83
|
|
|
30.13
|
|
|
24.93
|
|
|
33.14
|
|
||||
Low
|
20.96
|
|
|
24.63
|
|
|
18.07
|
|
|
24.63
|
|
||||
Close
|
24.23
|
|
|
25.80
|
|
|
24.23
|
|
|
25.80
|
|
||||
Selected Average Balances
|
|
|
|
|
|
|
|
||||||||
Total assets
|
|
$177,915
|
|
|
|
$170,527
|
|
|
|
$177,385
|
|
|
|
$171,789
|
|
Earning assets
|
154,890
|
|
|
145,985
|
|
|
154,757
|
|
|
146,383
|
|
||||
Loans
|
123,365
|
|
|
114,920
|
|
|
122,954
|
|
|
115,040
|
|
||||
Consumer and commercial deposits
|
125,885
|
|
|
121,879
|
|
|
125,864
|
|
|
121,298
|
|
||||
Brokered time and foreign deposits
|
2,243
|
|
|
2,340
|
|
|
2,258
|
|
|
2,472
|
|
||||
Total shareholders’ equity
|
20,472
|
|
|
19,509
|
|
|
20,364
|
|
|
21,298
|
|
||||
Average common shares - diluted (thousands)
|
537,495
|
|
|
535,416
|
|
|
536,951
|
|
|
519,548
|
|
||||
Average common shares - basic (thousands)
|
533,964
|
|
|
531,792
|
|
|
533,532
|
|
|
515,819
|
|
||||
Financial Ratios (Annualized)
|
|
|
|
|
|
|
|
||||||||
ROA
|
0.62
|
%
|
|
0.42
|
%
|
|
0.59
|
%
|
|
0.42
|
%
|
||||
ROE
|
5.37
|
|
|
3.61
|
|
|
5.16
|
|
|
2.28
|
|
||||
Net interest margin - FTE
|
3.39
|
|
|
3.53
|
|
|
3.44
|
|
|
3.53
|
|
||||
Efficiency ratio
3
|
68.83
|
|
|
70.17
|
|
|
69.17
|
|
|
69.01
|
|
||||
Tangible efficiency ratio
4
|
68.33
|
|
|
69.64
|
|
|
68.67
|
|
|
68.49
|
|
||||
Total average shareholders’ equity to total average assets
|
11.51
|
|
|
11.44
|
|
|
11.48
|
|
|
12.40
|
|
||||
Tangible equity to tangible assets
5
|
8.31
|
|
|
8.07
|
|
|
|
|
|
||||||
Capital Adequacy
|
|
|
|
|
|
|
|
||||||||
Tier 1 common equity
|
9.40
|
%
|
|
9.22
|
%
|
|
|
|
|
||||||
Tier 1 capital
|
10.15
|
|
|
11.11
|
|
|
|
|
|
||||||
Total capital
|
12.84
|
|
|
14.01
|
|
|
|
|
|
||||||
Tier 1 leverage
|
8.15
|
|
|
8.92
|
|
|
|
|
|
SELECTED QUARTERLY FINANCIAL DATA, continued
|
|
|
|
|
|||||||||||
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Reconcilement of Non U.S. GAAP Financial Measures
|
|
|
|
|
|
|
|
||||||||
Net income available to common shareholders
|
|
$270
|
|
|
|
$174
|
|
|
|
$515
|
|
|
|
$212
|
|
Accelerated accretion for repurchase of preferred stock issued to U.S. Treasury
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
||||
Net income available to common shareholders excluding accelerated accretion for repurchase of preferred stock issued to U.S. Treasury
|
|
$270
|
|
|
|
$174
|
|
|
|
$515
|
|
|
|
$286
|
|
Net income per average common share - diluted
|
|
$0.50
|
|
|
|
$0.33
|
|
|
|
$0.96
|
|
|
|
$0.41
|
|
Effect of accelerated accretion for repurchase of preferred stock issued to U.S. Treasury
|
—
|
|
|
—
|
|
|
—
|
|
|
0.14
|
|
||||
Net income per average common share - diluted, excluding effect of accelerated accretion for repurchase of preferred stock issued to U.S. Treasury
|
|
$0.50
|
|
|
|
$0.33
|
|
|
|
$0.96
|
|
|
|
$0.55
|
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$275
|
|
|
|
$178
|
|
|
|
$525
|
|
|
|
$358
|
|
Preferred dividends
|
(3
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(4
|
)
|
||||
U.S. Treasury preferred dividends and accretion of discount
|
—
|
|
|
—
|
|
|
—
|
|
|
(66
|
)
|
||||
Accelerated accretion for repurchase of preferred stock issued to U.S. Treasury
|
—
|
|
|
—
|
|
|
—
|
|
|
(74
|
)
|
||||
Dividends and undistributed earnings allocated to unvested shares
|
(2
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(2
|
)
|
||||
Net income available to common shareholders
|
|
$270
|
|
|
|
$174
|
|
|
|
$515
|
|
|
|
$212
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
|
$1,274
|
|
|
|
$1,259
|
|
|
|
$2,585
|
|
|
|
$2,508
|
|
FTE adjustment
|
32
|
|
|
27
|
|
|
63
|
|
|
55
|
|
||||
Net interest income - FTE
|
1,306
|
|
|
1,286
|
|
|
2,648
|
|
|
2,563
|
|
||||
Noninterest income
|
940
|
|
|
912
|
|
|
1,816
|
|
|
1,795
|
|
||||
Total revenue - FTE
|
2,246
|
|
|
2,198
|
|
|
4,464
|
|
|
4,358
|
|
||||
Net securities gains
|
(14
|
)
|
|
(32
|
)
|
|
(32
|
)
|
|
(96
|
)
|
||||
Total revenue - FTE excluding net securities gains
|
|
$2,232
|
|
|
|
$2,166
|
|
|
|
$4,432
|
|
|
|
$4,262
|
|
Efficiency ratio
3
|
68.83
|
%
|
|
70.17
|
%
|
|
69.17
|
%
|
|
69.01
|
%
|
||||
Impact of excluding amortization of intangible assets other than MSRs
|
(0.50
|
)
|
|
(0.53
|
)
|
|
(0.50
|
)
|
|
(0.52
|
)
|
||||
Tangible efficiency ratio
4
|
68.33
|
%
|
|
69.64
|
%
|
|
68.67
|
%
|
|
68.49
|
%
|
||||
Total shareholders’ equity
|
|
$20,568
|
|
|
|
$19,660
|
|
|
|
|
|
||||
Goodwill, net of deferred taxes of $156 and $144, respectively
|
(6,220
|
)
|
|
(6,199
|
)
|
|
|
|
|
||||||
Other intangible assets, net of deferred taxes of $10 and $21, respectively, and MSRs
|
(929
|
)
|
|
(1,518
|
)
|
|
|
|
|
||||||
MSRs
|
865
|
|
|
1,423
|
|
|
|
|
|
||||||
Tangible equity
|
14,284
|
|
|
13,366
|
|
|
|
|
|
||||||
Preferred stock
|
(275
|
)
|
|
(172
|
)
|
|
|
|
|
||||||
Tangible common equity
|
|
$14,009
|
|
|
|
$13,194
|
|
|
|
|
|
||||
Total assets
|
|
$178,257
|
|
|
|
$172,173
|
|
|
|
|
|
||||
Goodwill
|
(6,376
|
)
|
|
(6,343
|
)
|
|
|
|
|
||||||
Other intangible assets including MSRs
|
(939
|
)
|
|
(1,539
|
)
|
|
|
|
|
||||||
MSRs
|
865
|
|
|
1,423
|
|
|
|
|
|
||||||
Tangible assets
|
|
$171,807
|
|
|
|
$165,714
|
|
|
|
|
|
||||
Tangible equity to tangible assets
5
|
8.31
|
%
|
|
8.07
|
%
|
|
|
|
|
||||||
Tangible book value per common share
2
|
|
$26.02
|
|
|
|
$24.57
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total loans
|
|
$124,560
|
|
|
|
$114,913
|
|
|
|
|
|
||||
Government guaranteed loans
|
(12,911
|
)
|
|
(9,133
|
)
|
|
|
|
|
||||||
Loans held at fair value
|
(406
|
)
|
|
(449
|
)
|
|
|
|
|
||||||
Total loans, excluding government guaranteed and fair value loans
|
|
$111,243
|
|
|
|
$105,331
|
|
|
|
|
|
||||
Allowance to total loans, excluding government guaranteed and fair value loans
6
|
2.07
|
%
|
|
2.61
|
%
|
|
|
|
|
Consolidated Daily Average Balances, Income/Expense and Average Yields Earned and Rates Paid
|
Table 2
|
|
|||||||||||||||||||||||||||
|
|
Three Months Ended
|
|
Increase/(Decrease) From Prior Year Quarter
|
|||||||||||||||||||||||||
|
|
June 30, 2012
|
|
June 30, 2011
|
|
||||||||||||||||||||||||
(Dollars in millions; yields on taxable-equivalent basis)
|
|
Average
Balances
|
|
Income/
Expense
|
|
Yields/
Rates
|
|
Average
Balances
|
|
Income/
Expense
|
|
Yields/
Rates
|
|
Average
Balances
|
|
Yields/
Rates
|
|||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loans:
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial and industrial - FTE
2
|
|
|
$50,798
|
|
|
|
$578
|
|
|
4.58
|
%
|
|
|
$45,158
|
|
|
|
$583
|
|
|
5.17
|
%
|
|
|
$5,640
|
|
|
(0.59
|
)%
|
Commercial real estate
|
|
4,582
|
|
|
42
|
|
|
3.65
|
|
|
5,479
|
|
|
50
|
|
|
3.66
|
|
|
(897
|
)
|
|
(0.01
|
)
|
|||||
Commercial construction
|
|
862
|
|
|
8
|
|
|
3.85
|
|
|
1,204
|
|
|
11
|
|
|
3.83
|
|
|
(342
|
)
|
|
0.02
|
|
|||||
Residential mortgages - guaranteed
|
|
5,853
|
|
|
47
|
|
|
3.19
|
|
|
4,387
|
|
|
39
|
|
|
3.57
|
|
|
1,466
|
|
|
(0.38
|
)
|
|||||
Residential mortgages - nonguaranteed
|
|
22,707
|
|
|
260
|
|
|
4.59
|
|
|
21,794
|
|
|
273
|
|
|
5.01
|
|
|
913
|
|
|
(0.42
|
)
|
|||||
Home equity products
|
|
15,066
|
|
|
138
|
|
|
3.69
|
|
|
15,924
|
|
|
150
|
|
|
3.77
|
|
|
(858
|
)
|
|
(0.08
|
)
|
|||||
Residential construction
|
|
707
|
|
|
9
|
|
|
5.11
|
|
|
885
|
|
|
12
|
|
|
5.24
|
|
|
(178
|
)
|
|
(0.13
|
)
|
|||||
Guaranteed student loans
|
|
7,195
|
|
|
69
|
|
|
3.84
|
|
|
4,552
|
|
|
49
|
|
|
4.37
|
|
|
2,643
|
|
|
(0.53
|
)
|
|||||
Other direct
|
|
2,186
|
|
|
24
|
|
|
4.37
|
|
|
1,823
|
|
|
22
|
|
|
4.79
|
|
|
363
|
|
|
(0.42
|
)
|
|||||
Indirect
|
|
10,288
|
|
|
99
|
|
|
3.88
|
|
|
9,459
|
|
|
111
|
|
|
4.70
|
|
|
829
|
|
|
(0.82
|
)
|
|||||
Credit cards
|
|
537
|
|
|
14
|
|
|
10.35
|
|
|
457
|
|
|
15
|
|
|
12.98
|
|
|
80
|
|
|
(2.63
|
)
|
|||||
Nonaccrual
3
|
|
2,584
|
|
|
6
|
|
|
1.00
|
|
|
3,798
|
|
|
10
|
|
|
1.08
|
|
|
(1,214
|
)
|
|
(0.08
|
)
|
|||||
Total loans
|
|
123,365
|
|
|
1,294
|
|
|
4.22
|
|
|
114,920
|
|
|
1,325
|
|
|
4.62
|
|
|
8,445
|
|
|
(0.40
|
)
|
|||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Taxable
|
|
22,569
|
|
|
176
|
|
|
3.13
|
|
|
23,711
|
|
|
199
|
|
|
3.35
|
|
|
(1,142
|
)
|
|
(0.22
|
)
|
|||||
Tax-exempt - FTE
2
|
|
375
|
|
|
5
|
|
|
5.32
|
|
|
517
|
|
|
7
|
|
|
5.47
|
|
|
(142
|
)
|
|
(0.15
|
)
|
|||||
Total securities available for sale - FTE
|
|
22,944
|
|
|
181
|
|
|
3.16
|
|
|
24,228
|
|
|
206
|
|
|
3.40
|
|
|
(1,284
|
)
|
|
(0.24
|
)
|
|||||
Securities purchased under agreements to resell
|
|
924
|
|
|
—
|
|
|
0.01
|
|
|
1,079
|
|
|
—
|
|
|
—
|
|
|
(155
|
)
|
|
0.01
|
|
|||||
LHFS
|
|
3,352
|
|
|
31
|
|
|
3.65
|
|
|
2,104
|
|
|
22
|
|
|
4.17
|
|
|
1,248
|
|
|
(0.52
|
)
|
|||||
Interest-bearing deposits
|
|
22
|
|
|
—
|
|
|
0.26
|
|
|
23
|
|
|
—
|
|
|
0.16
|
|
|
(1
|
)
|
|
0.10
|
|
|||||
Interest earning trading assets
|
|
4,283
|
|
|
18
|
|
|
1.67
|
|
|
3,631
|
|
|
20
|
|
|
2.30
|
|
|
652
|
|
|
(0.63
|
)
|
|||||
Total earning assets
|
|
154,890
|
|
|
1,524
|
|
|
3.96
|
|
|
145,985
|
|
|
1,573
|
|
|
4.32
|
|
|
8,905
|
|
|
(0.36
|
)
|
|||||
ALLL
|
|
(2,323
|
)
|
|
|
|
|
|
(2,740
|
)
|
|
|
|
|
|
417
|
|
|
|
||||||||||
Cash and due from banks
|
|
4,721
|
|
|
|
|
|
|
4,452
|
|
|
|
|
|
|
269
|
|
|
|
||||||||||
Other assets
|
|
15,260
|
|
|
|
|
|
|
17,348
|
|
|
|
|
|
|
(2,088
|
)
|
|
|
||||||||||
Noninterest earning trading assets
|
|
2,230
|
|
|
|
|
|
|
2,999
|
|
|
|
|
|
|
(769
|
)
|
|
|
||||||||||
Unrealized gains on securities available for sale
|
|
3,137
|
|
|
|
|
|
|
2,483
|
|
|
|
|
|
|
654
|
|
|
|
||||||||||
Total assets
|
|
|
$177,915
|
|
|
|
|
|
|
|
$170,527
|
|
|
|
|
|
|
|
$7,388
|
|
|
|
|||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NOW accounts
|
|
|
$24,957
|
|
|
|
$6
|
|
|
0.10
|
%
|
|
|
$24,672
|
|
|
|
$10
|
|
|
0.16
|
%
|
|
|
$285
|
|
|
(0.06
|
)%
|
Money market accounts
|
|
41,950
|
|
|
24
|
|
|
0.23
|
|
|
42,865
|
|
|
43
|
|
|
0.40
|
|
|
(915
|
)
|
|
(0.17
|
)
|
|||||
Savings
|
|
5,169
|
|
|
1
|
|
|
0.11
|
|
|
4,587
|
|
|
2
|
|
|
0.18
|
|
|
582
|
|
|
(0.07
|
)
|
|||||
Consumer time
|
|
10,997
|
|
|
40
|
|
|
1.47
|
|
|
12,712
|
|
|
51
|
|
|
1.60
|
|
|
(1,715
|
)
|
|
(0.13
|
)
|
|||||
Other time
|
|
6,193
|
|
|
25
|
|
|
1.63
|
|
|
7,203
|
|
|
31
|
|
|
1.74
|
|
|
(1,010
|
)
|
|
(0.11
|
)
|
|||||
Total interest-bearing consumer and commercial deposits
|
|
89,266
|
|
|
96
|
|
|
0.43
|
|
|
92,039
|
|
|
137
|
|
|
0.60
|
|
|
(2,773
|
)
|
|
(0.17
|
)
|
|||||
Brokered time deposits
|
|
2,211
|
|
|
22
|
|
|
3.88
|
|
|
2,317
|
|
|
25
|
|
|
4.38
|
|
|
(106
|
)
|
|
(0.50
|
)
|
|||||
Foreign deposits
|
|
32
|
|
|
—
|
|
|
0.18
|
|
|
23
|
|
|
—
|
|
|
0.05
|
|
|
9
|
|
|
0.13
|
|
|||||
Total interest-bearing deposits
|
|
91,509
|
|
|
118
|
|
|
0.52
|
|
|
94,379
|
|
|
162
|
|
|
0.69
|
|
|
(2,870
|
)
|
|
(0.17
|
)
|
|||||
Funds purchased
|
|
810
|
|
|
—
|
|
|
0.11
|
|
|
1,001
|
|
|
—
|
|
|
0.12
|
|
|
(191
|
)
|
|
(0.01
|
)
|
|||||
Securities sold under agreements to repurchase
|
|
1,646
|
|
|
1
|
|
|
0.18
|
|
|
2,264
|
|
|
1
|
|
|
0.14
|
|
|
(618
|
)
|
|
0.04
|
|
|||||
Interest-bearing trading liabilities
|
|
751
|
|
|
4
|
|
|
2.36
|
|
|
922
|
|
|
8
|
|
|
3.39
|
|
|
(171
|
)
|
|
(1.03
|
)
|
|||||
Other short-term borrowings
|
|
6,942
|
|
|
5
|
|
|
0.27
|
|
|
2,934
|
|
|
3
|
|
|
0.38
|
|
|
4,008
|
|
|
(0.11
|
)
|
|||||
Long-term debt
|
|
13,657
|
|
|
90
|
|
|
2.65
|
|
|
13,765
|
|
|
113
|
|
|
3.30
|
|
|
(108
|
)
|
|
(0.65
|
)
|
|||||
Total interest-bearing liabilities
|
|
115,315
|
|
|
218
|
|
|
0.76
|
|
|
115,265
|
|
|
287
|
|
|
1.00
|
|
|
50
|
|
|
(0.24
|
)
|
|||||
Noninterest-bearing deposits
|
|
36,619
|
|
|
|
|
|
|
29,840
|
|
|
|
|
|
|
6,779
|
|
|
|
||||||||||
Other liabilities
|
|
4,337
|
|
|
|
|
|
|
3,823
|
|
|
|
|
|
|
514
|
|
|
|
||||||||||
Noninterest-bearing trading liabilities
|
|
1,172
|
|
|
|
|
|
|
2,090
|
|
|
|
|
|
|
(918
|
)
|
|
|
||||||||||
Shareholders’ equity
|
|
20,472
|
|
|
|
|
|
|
19,509
|
|
|
|
|
|
|
963
|
|
|
|
||||||||||
Total liabilities and shareholders’ equity
|
|
|
$177,915
|
|
|
|
|
|
|
|
$170,527
|
|
|
|
|
|
|
|
$7,388
|
|
|
|
|||||||
Interest Rate Spread
|
|
|
|
|
|
3.20
|
%
|
|
|
|
|
|
3.32
|
%
|
|
|
|
(0.12
|
)%
|
||||||||||
Net Interest Income - FTE
4
|
|
|
|
|
$1,306
|
|
|
|
|
|
|
|
$1,286
|
|
|
|
|
|
|
|
|||||||||
Net Interest Margin
5
|
|
|
|
|
|
3.39
|
%
|
|
|
|
|
|
3.53
|
%
|
|
|
|
(0.14
|
)%
|
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
Table 3
|
||||||||||
|
Three Months Ended June 30
|
|
%
|
|
Six Months Ended June 30
|
|
%
|
||||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
Change
1
|
|
2012
|
|
2011
|
|
Change
1
|
||||||||||
Service charges on deposit accounts
|
|
$167
|
|
|
|
$170
|
|
|
(2
|
%)
|
|
|
$332
|
|
|
|
$333
|
|
|
—
|
%
|
Trust and investment management income
|
130
|
|
|
135
|
|
|
(4
|
)
|
|
260
|
|
|
270
|
|
|
(4
|
)
|
||||
Other charges and fees
|
130
|
|
|
130
|
|
|
—
|
|
|
245
|
|
|
256
|
|
|
(4
|
)
|
||||
Mortgage production related income
|
103
|
|
|
4
|
|
|
NM
|
|
|
166
|
|
|
3
|
|
|
NM
|
|
||||
Mortgage servicing related income
|
70
|
|
|
72
|
|
|
(3
|
)
|
|
151
|
|
|
144
|
|
|
5
|
|
||||
Investment banking income
|
75
|
|
|
95
|
|
|
(21
|
)
|
|
147
|
|
|
162
|
|
|
(9
|
)
|
||||
Trading income
|
70
|
|
|
53
|
|
|
32
|
|
|
127
|
|
|
105
|
|
|
21
|
|
||||
Card fees
|
66
|
|
|
105
|
|
|
(37
|
)
|
|
127
|
|
|
205
|
|
|
(38
|
)
|
||||
Retail investment services
|
62
|
|
|
59
|
|
|
5
|
|
|
120
|
|
|
117
|
|
|
3
|
|
||||
Net securities gains
|
14
|
|
|
32
|
|
|
(56
|
)
|
|
32
|
|
|
96
|
|
|
(67
|
)
|
||||
Other noninterest income
|
53
|
|
|
57
|
|
|
(7
|
)
|
|
109
|
|
|
104
|
|
|
5
|
|
||||
Total noninterest income
|
|
$940
|
|
|
|
$912
|
|
|
3
|
%
|
|
|
$1,816
|
|
|
|
$1,795
|
|
|
1
|
%
|
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
Table 4
|
|
|||||||||
|
Three Months Ended June 30
|
|
%
|
|
Six Months Ended June 30
|
|
%
|
||||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
Change
1
|
|
2012
|
|
2011
|
|
Change
1
|
||||||||||
Employee compensation
|
|
$654
|
|
|
|
$638
|
|
|
3
|
%
|
|
|
$1,306
|
|
|
|
$1,256
|
|
|
4
|
%
|
Employee benefits
|
108
|
|
|
110
|
|
|
(2
|
)
|
|
254
|
|
|
246
|
|
|
3
|
|
||||
Personnel expenses
|
762
|
|
|
748
|
|
|
2
|
|
|
1,560
|
|
|
1,502
|
|
|
4
|
|
||||
Outside processing and software
|
180
|
|
|
162
|
|
|
11
|
|
|
356
|
|
|
320
|
|
|
11
|
|
||||
Net occupancy expense
|
88
|
|
|
89
|
|
|
(1
|
)
|
|
176
|
|
|
178
|
|
|
(1
|
)
|
||||
Operating losses
|
69
|
|
|
62
|
|
|
11
|
|
|
129
|
|
|
89
|
|
|
45
|
|
||||
Credit and collection services
|
61
|
|
|
60
|
|
|
2
|
|
|
116
|
|
|
111
|
|
|
5
|
|
||||
Regulatory assessments
|
60
|
|
|
81
|
|
|
(26
|
)
|
|
111
|
|
|
152
|
|
|
(27
|
)
|
||||
Other real estate expense
|
52
|
|
|
64
|
|
|
(19
|
)
|
|
103
|
|
|
133
|
|
|
(23
|
)
|
||||
Equipment expense
|
46
|
|
|
44
|
|
|
5
|
|
|
91
|
|
|
88
|
|
|
3
|
|
||||
Consulting and legal
|
41
|
|
|
29
|
|
|
41
|
|
|
76
|
|
|
43
|
|
|
77
|
|
||||
Marketing and customer development
|
32
|
|
|
46
|
|
|
(30
|
)
|
|
59
|
|
|
84
|
|
|
(30
|
)
|
||||
Net loss/(gain) on debt extinguishment
|
13
|
|
|
(1
|
)
|
|
NM
|
|
|
13
|
|
|
(2
|
)
|
|
NM
|
|
||||
Other staff expense
|
12
|
|
|
20
|
|
|
(40
|
)
|
|
34
|
|
|
35
|
|
|
(3
|
)
|
||||
Amortization of intangible assets
|
11
|
|
|
12
|
|
|
(8
|
)
|
|
22
|
|
|
23
|
|
|
(4
|
)
|
||||
Other expense
|
119
|
|
|
126
|
|
|
(6
|
)
|
|
241
|
|
|
251
|
|
|
(4
|
)
|
||||
Total noninterest expense
|
|
$1,546
|
|
|
|
$1,542
|
|
|
—
|
|
|
|
$3,087
|
|
|
|
$3,007
|
|
|
3
|
|
Loan Portfolio by Types of Loans
|
|
|
|
|
Table 5
|
|
||||
(Dollars in millions)
|
June 30, 2012
|
|
December 31, 2011
|
|
% Change
|
|||||
Commercial loans:
|
|
|
|
|
|
|||||
Commercial & industrial
|
|
$52,030
|
|
|
|
$49,538
|
|
|
5
|
%
|
Commercial real estate
|
4,825
|
|
|
5,094
|
|
|
(5
|
)
|
||
Commercial construction
|
959
|
|
|
1,240
|
|
|
(23
|
)
|
||
Total commercial loans
|
57,814
|
|
|
55,872
|
|
|
3
|
|
||
Residential loans:
|
|
|
|
|
|
|||||
Residential mortgages - guaranteed
|
5,663
|
|
|
6,672
|
|
|
(15
|
)
|
||
Residential mortgages - nonguaranteed
1
|
24,405
|
|
|
23,243
|
|
|
5
|
|
||
Home equity products
|
15,281
|
|
|
15,765
|
|
|
(3
|
)
|
||
Residential construction
|
853
|
|
|
980
|
|
|
(13
|
)
|
||
Total residential loans
|
46,202
|
|
|
46,660
|
|
|
(1
|
)
|
||
Consumer loans:
|
|
|
|
|
|
|||||
Guaranteed student loans
|
7,248
|
|
|
7,199
|
|
|
1
|
|
||
Other direct
|
2,225
|
|
|
2,059
|
|
|
8
|
|
||
Indirect
|
10,506
|
|
|
10,165
|
|
|
3
|
|
||
Credit cards
|
565
|
|
|
540
|
|
|
5
|
|
||
Total consumer loans
|
20,544
|
|
|
19,963
|
|
|
3
|
|
||
LHFI
|
|
$124,560
|
|
|
|
$122,495
|
|
|
2
|
%
|
LHFS
|
|
$3,123
|
|
|
|
$2,353
|
|
|
33
|
%
|
Loan Types by Geography
|
|
|
|
|
|
|
|
|
|
Table 6
|
|
||||||
|
Commercial
|
|
Residential
|
|
Consumer
|
||||||||||||
|
June 30,
2012 |
|
December 31,
2011 |
|
June 30,
2012 |
|
December 31,
2011 |
|
June 30,
2012 |
|
December 31,
2011 |
||||||
Geography:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Central
1
|
27
|
%
|
|
28
|
%
|
|
21
|
%
|
|
21
|
%
|
|
15
|
%
|
|
14
|
%
|
Florida
2
|
19
|
|
|
20
|
|
|
26
|
|
|
27
|
|
|
17
|
|
|
18
|
|
MidAtlantic
3
|
25
|
|
|
26
|
|
|
36
|
|
|
36
|
|
|
25
|
|
|
25
|
|
Other
|
29
|
|
|
26
|
|
|
17
|
|
|
16
|
|
|
43
|
|
|
43
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Summary of Credit Losses Experience
|
|
|
|
|
|
|
|
|
|
|
Table 7
|
|
|||||||||
|
Three Months Ended June 30
|
|
|
|
Six Months Ended June 30
|
|
|
||||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
% Change
|
|
2012
|
|
2011
|
|
% Change
5
|
||||||||||
Allowance for Credit Losses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance - beginning of period
|
|
$2,400
|
|
|
|
$2,908
|
|
|
(17
|
)%
|
|
|
$2,505
|
|
|
|
$3,032
|
|
|
(17
|
)%
|
(Benefit)/provision for unfunded commitments
|
(2
|
)
|
|
(3
|
)
|
|
(33
|
)
|
|
2
|
|
|
(7
|
)
|
|
NM
|
|
||||
Provision for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans
|
49
|
|
|
124
|
|
|
(60
|
)
|
|
87
|
|
|
232
|
|
|
(63
|
)
|
||||
Residential loans
|
230
|
|
|
252
|
|
|
(9
|
)
|
|
488
|
|
|
574
|
|
|
(15
|
)
|
||||
Consumer loans
|
23
|
|
|
19
|
|
|
21
|
|
|
40
|
|
|
40
|
|
|
—
|
|
||||
Total provision for loan losses
|
302
|
|
|
395
|
|
|
(24
|
)
|
|
615
|
|
|
846
|
|
|
(27
|
)
|
||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans
|
(94
|
)
|
|
(220
|
)
|
|
(57
|
)
|
|
(220
|
)
|
|
(405
|
)
|
|
(46
|
)
|
||||
Residential loans
|
(274
|
)
|
|
(303
|
)
|
|
(10
|
)
|
|
(576
|
)
|
|
(688
|
)
|
|
(16
|
)
|
||||
Consumer loans
|
(29
|
)
|
|
(40
|
)
|
|
(28
|
)
|
|
(64
|
)
|
|
(85
|
)
|
|
(25
|
)
|
||||
Total charge-offs
|
(397
|
)
|
|
(563
|
)
|
|
(29
|
)
|
|
(860
|
)
|
|
(1,178
|
)
|
|
(27
|
)
|
||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans
|
31
|
|
|
41
|
|
|
(24
|
)
|
|
56
|
|
|
70
|
|
|
(20
|
)
|
||||
Residential loans
|
6
|
|
|
6
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
—
|
|
||||
Consumer loans
|
10
|
|
|
11
|
|
|
(9
|
)
|
|
21
|
|
|
21
|
|
|
—
|
|
||||
Total recoveries
|
47
|
|
|
58
|
|
|
(19
|
)
|
|
88
|
|
|
102
|
|
|
(14
|
)
|
||||
Net charge-offs
|
(350
|
)
|
|
(505
|
)
|
|
(31
|
)
|
|
(772
|
)
|
|
(1,076
|
)
|
|
(28
|
)
|
||||
Balance - end of period
|
|
$2,350
|
|
|
|
$2,795
|
|
|
(16
|
)%
|
|
|
$2,350
|
|
|
|
$2,795
|
|
|
(16
|
)%
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ALLL
|
|
$2,300
|
|
|
|
$2,744
|
|
|
(16
|
)%
|
|
|
|
|
|
|
|||||
Unfunded commitments reserve
1
|
50
|
|
|
51
|
|
|
(2
|
)
|
|
|
|
|
|
|
|||||||
Allowance for credit losses
|
|
$2,350
|
|
|
|
$2,795
|
|
|
(16
|
)%
|
|
|
|
|
|
|
|
|
|||
Average loans
|
|
$123,365
|
|
|
|
$114,920
|
|
|
7
|
%
|
|
|
$122,954
|
|
|
|
$115,040
|
|
|
7
|
%
|
Period-end loans outstanding
|
124,560
|
|
|
114,913
|
|
|
8
|
|
|
|
|
|
|
|
|
||||||
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ALLL to period-end loans
2,3
|
1.85
|
%
|
|
2.40
|
%
|
|
(23
|
%)
|
|
|
|
|
|
|
|
||||||
ALLL to NPLs
4
|
94
|
|
|
77
|
|
|
22
|
|
|
|
|
|
|
|
|
||||||
ALLL to net charge-offs (annualized)
|
1.64x
|
|
|
1.35x
|
|
|
21
|
|
|
|
|
|
|
|
|||||||
Net charge-offs to average loans (annualized)
|
1.14
|
%
|
|
1.76
|
%
|
|
(35
|
)%
|
|
1.26
|
%
|
|
1.89
|
%
|
|
(33
|
)%
|
Allowance for Loan Losses by Loan Segment
|
|
Table 8
|
|
||||||||||||||||
|
As of June 30, 2012
|
|
As of December 31, 2011
|
||||||||||||||||
(Dollars in millions)
|
ALLL
|
|
Segment ALLL
as a % of
total ALLL
|
|
Loan segment
as a % of
total loans
|
|
ALLL
|
|
Segment ALLL
as a % of
total ALLL
|
|
Loan segment
as a % of
total loans
|
||||||||
Commercial loans
|
|
$887
|
|
|
39
|
%
|
|
46
|
%
|
|
|
$964
|
|
|
39
|
%
|
|
46
|
%
|
Residential loans
|
1,277
|
|
|
55
|
|
|
37
|
|
|
1,354
|
|
|
55
|
|
|
38
|
|
||
Consumer loans
|
136
|
|
|
6
|
|
|
17
|
|
|
139
|
|
|
6
|
|
|
16
|
|
||
Total
|
|
$2,300
|
|
|
100
|
%
|
|
100
|
%
|
|
|
$2,457
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
Table 9
|
|
||||
(Dollars in millions)
|
June 30, 2012
|
|
December 31, 2011
|
|
% Change
|
|||||
Nonaccrual/NPLs:
|
|
|
|
|
|
|||||
Commercial loans
|
|
|
|
|
|
|||||
Commercial & industrial
|
|
$331
|
|
|
|
$348
|
|
|
(5
|
)%
|
Commercial real estate
|
233
|
|
|
288
|
|
|
(19
|
)
|
||
Commercial construction
|
131
|
|
|
290
|
|
|
(55
|
)
|
||
Total commercial NPLs
|
695
|
|
|
926
|
|
|
(25
|
)
|
||
Residential loans
|
|
|
|
|
|
|||||
Residential mortgages - nonguaranteed
|
1,286
|
|
|
1,392
|
|
|
(8
|
)
|
||
Home equity products
|
302
|
|
|
338
|
|
|
(11
|
)
|
||
Residential construction
|
154
|
|
|
220
|
|
|
(30
|
)
|
||
Total residential NPLs
|
1,742
|
|
|
1,950
|
|
|
(11
|
)
|
||
Consumer loans
|
|
|
|
|
|
|||||
Other direct
|
4
|
|
|
7
|
|
|
(43
|
)
|
||
Indirect
|
17
|
|
|
20
|
|
|
(15
|
)
|
||
Total consumer NPLs
|
21
|
|
|
27
|
|
|
(22
|
)
|
||
Total nonaccrual/NPLs
|
2,458
|
|
|
2,903
|
|
|
(15
|
)
|
||
OREO
1
|
331
|
|
|
479
|
|
|
(31
|
)
|
||
Other repossessed assets
|
11
|
|
|
10
|
|
|
10
|
|
||
Total nonperforming assets
|
|
$2,800
|
|
|
|
$3,392
|
|
|
(17
|
)%
|
Accruing loans past due 90 days or more
|
|
$2,150
|
|
|
|
$2,028
|
|
|
6
|
%
|
TDRs:
|
|
|
|
|
|
|||||
Accruing restructured loans
|
|
$2,699
|
|
|
|
$2,820
|
|
|
(4
|
)%
|
Nonaccruing restructured loans
2
|
694
|
|
|
802
|
|
|
(13
|
)
|
||
Ratios:
|
|
|
|
|
|
|||||
NPLs to total loans
|
1.97
|
%
|
|
2.37
|
%
|
|
(17
|
)%
|
||
Nonperforming assets to total loans plus OREO and other repossessed assets
|
2.24
|
|
|
2.76
|
|
|
(19
|
)
|
Selected Residential TDR Data
|
|
|
|
|
|
|
|
|
|
|
Table 10
|
|
|||||||||||
|
As of June 30, 2012
|
||||||||||||||||||||||
|
Accruing TDRs
|
|
Nonaccruing TDRs
|
||||||||||||||||||||
(Dollars in millions)
|
Current
|
|
Delinquent
1
|
|
Total
|
|
Current
|
|
Delinquent
1
|
|
Total
|
||||||||||||
Rate reduction
|
|
$457
|
|
|
|
$39
|
|
|
|
$496
|
|
|
|
$17
|
|
|
|
$60
|
|
|
|
$77
|
|
Term extension
|
20
|
|
|
5
|
|
|
25
|
|
|
—
|
|
|
20
|
|
|
20
|
|
||||||
Rate reduction and term extension
|
1,705
|
|
|
225
|
|
|
1,930
|
|
|
34
|
|
|
400
|
|
|
434
|
|
||||||
Other
2
|
18
|
|
|
4
|
|
|
22
|
|
|
2
|
|
|
10
|
|
|
12
|
|
||||||
Total
|
|
$2,200
|
|
|
|
$273
|
|
|
|
$2,473
|
|
|
|
$53
|
|
|
|
$490
|
|
|
|
$543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
As of December 31, 2011
|
||||||||||||||||||||||
|
Accruing TDRs
|
|
Nonaccruing TDRs
|
||||||||||||||||||||
(Dollars in millions)
|
Current
|
|
Delinquent
1
|
|
Total
|
|
Current
|
|
Delinquent
1
|
|
Total
|
||||||||||||
Rate reduction
|
|
$473
|
|
|
|
$40
|
|
|
|
$513
|
|
|
|
$16
|
|
|
|
$69
|
|
|
|
$85
|
|
Term extension
|
20
|
|
|
10
|
|
|
30
|
|
|
2
|
|
|
24
|
|
|
26
|
|
||||||
Rate reduction and term extension
|
1,682
|
|
|
290
|
|
|
1,972
|
|
|
35
|
|
|
439
|
|
|
474
|
|
||||||
Other
2
|
20
|
|
|
3
|
|
|
23
|
|
|
2
|
|
|
15
|
|
|
17
|
|
||||||
Total
|
|
$2,195
|
|
|
|
$343
|
|
|
|
$2,538
|
|
|
|
$55
|
|
|
|
$547
|
|
|
|
$602
|
|
Trading Assets and Liabilities
|
|
|
Table 11
|
|
|||
|
|
||||||
(Dollars in millions)
|
June 30, 2012
|
|
December 31, 2011
|
||||
Trading Assets
|
|
|
|
||||
U.S. Treasury securities
|
|
$125
|
|
|
|
$144
|
|
Federal agency securities
|
521
|
|
|
478
|
|
||
U.S. states and political subdivisions
|
58
|
|
|
54
|
|
||
MBS - agency
|
371
|
|
|
412
|
|
||
MBS - private
|
1
|
|
|
1
|
|
||
CDO/CLO securities
|
45
|
|
|
45
|
|
||
ABS
|
37
|
|
|
37
|
|
||
Corporate and other debt securities
|
560
|
|
|
344
|
|
||
CP
|
113
|
|
|
229
|
|
||
Equity securities
|
91
|
|
|
91
|
|
||
Derivatives
1
|
2,190
|
|
|
2,414
|
|
||
Trading loans
2
|
2,215
|
|
|
2,030
|
|
||
Total trading assets
|
|
$6,327
|
|
|
|
$6,279
|
|
|
|
|
|
||||
Trading Liabilities
|
|
|
|
||||
U.S. Treasury securities
|
|
$330
|
|
|
|
$569
|
|
Corporate and other debt securities
|
301
|
|
|
77
|
|
||
Equity securities
|
22
|
|
|
37
|
|
||
Derivatives
1
|
1,129
|
|
|
1,123
|
|
||
Total trading liabilities
|
|
$1,782
|
|
|
|
$1,806
|
|
Securities Available for Sale
|
|
|
|
|
|
|
Table 12
|
|
|||||||
|
June 30, 2012
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Treasury securities
|
|
$214
|
|
|
|
$10
|
|
|
|
$—
|
|
|
|
$224
|
|
Federal agency securities
|
1,698
|
|
|
85
|
|
|
—
|
|
|
1,783
|
|
||||
U.S. states and political subdivisions
|
359
|
|
|
19
|
|
|
6
|
|
|
372
|
|
||||
MBS - agency
|
17,308
|
|
|
803
|
|
|
1
|
|
|
18,110
|
|
||||
MBS - private
|
225
|
|
|
—
|
|
|
17
|
|
|
208
|
|
||||
ABS
|
344
|
|
|
9
|
|
|
5
|
|
|
348
|
|
||||
Corporate and other debt securities
|
42
|
|
|
3
|
|
|
—
|
|
|
45
|
|
||||
Coke common stock
|
—
|
|
|
2,346
|
|
|
—
|
|
|
2,346
|
|
||||
Other equity securities
1
|
972
|
|
|
1
|
|
|
—
|
|
|
973
|
|
||||
Total securities AFS
|
|
$21,162
|
|
|
|
$3,276
|
|
|
|
$29
|
|
|
|
$24,409
|
|
|
December 31, 2011
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Treasury securities
|
|
$671
|
|
|
|
$23
|
|
|
|
$—
|
|
|
|
$694
|
|
Federal agency securities
|
1,843
|
|
|
89
|
|
|
—
|
|
|
1,932
|
|
||||
U.S. states and political subdivisions
|
437
|
|
|
21
|
|
|
4
|
|
|
454
|
|
||||
MBS - agency
|
20,480
|
|
|
743
|
|
|
—
|
|
|
21,223
|
|
||||
MBS - private
|
252
|
|
|
—
|
|
|
31
|
|
|
221
|
|
||||
CDO/CLO securities
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
||||
ABS
|
460
|
|
|
11
|
|
|
7
|
|
|
464
|
|
||||
Corporate and other debt securities
|
49
|
|
|
2
|
|
|
—
|
|
|
51
|
|
||||
Coke common stock
|
—
|
|
|
2,099
|
|
|
—
|
|
|
2,099
|
|
||||
Other equity securities
1
|
928
|
|
|
1
|
|
|
—
|
|
|
929
|
|
||||
Total securities AFS
|
|
$25,170
|
|
|
|
$2,989
|
|
|
|
$42
|
|
|
|
$28,117
|
|
BORROWINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Short-Term Borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 13
|
|
||||||||||||
|
As of June 30, 2012
|
|
Three Months Ended June 30, 2012
|
|
Six Months Ended June 30, 2012
|
|||||||||||||||||||||||
|
|
|
Daily Average
|
|
Maximum Outstanding at any Month-End
|
|
Daily Average
|
|
Maximum Outstanding at any Month-End
|
|||||||||||||||||||
(Dollars in millions)
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
|
Balance
|
|
Rate
|
|
|||||||||||||||
Funds purchased
1
|
|
$847
|
|
|
0.09
|
%
|
|
|
$810
|
|
|
0.11
|
%
|
|
|
$847
|
|
|
|
$840
|
|
|
0.11
|
%
|
|
|
$908
|
|
Securities sold under agreements to repurchase
1
|
1,583
|
|
|
0.20
|
|
|
1,646
|
|
|
0.18
|
|
|
1,710
|
|
|
1,640
|
|
|
0.16
|
|
|
1,781
|
|
|||||
FHLB advances
|
5,500
|
|
|
0.28
|
|
|
5,225
|
|
|
0.25
|
|
|
5,500
|
|
|
6,310
|
|
|
0.20
|
|
|
9,000
|
|
|||||
Other short-term borrowings
2
|
1,598
|
|
|
0.53
|
|
|
1,717
|
|
|
0.32
|
|
|
1,875
|
|
|
1,746
|
|
|
0.36
|
|
|
1,878
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
As of June 30, 2011
|
|
Three Months Ended June 30, 2011
|
|
Six Months Ended June 30, 2011
|
|||||||||||||||||||||||
|
|
|
|
|
Daily Average
|
|
Maximum Outstanding at any Month-End
|
|
Daily Average
|
|
Maximum Outstanding at any Month-End
|
|||||||||||||||||
(Dollars in millions)
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
|
Balance
|
|
Rate
|
|
|||||||||||||||
Funds purchased
1
|
|
$939
|
|
|
0.12
|
%
|
|
|
$1,001
|
|
|
0.12
|
%
|
|
|
$990
|
|
|
|
$1,057
|
|
|
0.15
|
%
|
|
|
$1,169
|
|
Securities sold under agreements to repurchase
1
|
2,253
|
|
|
0.14
|
|
|
2,264
|
|
|
0.14
|
|
|
2,253
|
|
|
2,283
|
|
|
0.15
|
|
|
2,411
|
|
|||||
Other short-term borrowings
2
|
2,791
|
|
|
0.70
|
|
|
2,934
|
|
|
0.38
|
|
|
3,048
|
|
|
2,847
|
|
|
0.40
|
|
|
3,048
|
|
Capital Ratios
|
|
|
Table 14
|
|
|||
(Dollars in millions)
|
June 30, 2012
|
|
December 31, 2011
|
||||
Tier 1 capital
|
|
$13,774
|
|
|
|
$14,490
|
|
Total capital
|
17,431
|
|
|
18,177
|
|
||
RWA
|
135,708
|
|
|
132,940
|
|
||
Tier 1 common equity:
|
|
|
|
||||
Tier 1 capital
|
|
$13,774
|
|
|
|
$14,490
|
|
Less:
|
|
|
|
||||
Qualifying trust preferred securities
|
627
|
|
|
1,854
|
|
||
Preferred stock
|
275
|
|
|
275
|
|
||
Allowable minority interest
|
112
|
|
|
107
|
|
||
Tier 1 common equity
|
|
$12,760
|
|
|
|
$12,254
|
|
Risk-based ratios:
|
|
|
|
||||
Tier 1 common equity
|
9.40
|
%
|
|
9.22
|
%
|
||
Tier 1 capital
|
10.15
|
|
|
10.90
|
|
||
Total capital
|
12.84
|
|
|
13.67
|
|
||
Tier 1 leverage ratio
|
8.15
|
|
|
8.75
|
|
||
Total shareholders’ equity to assets
|
11.54
|
|
|
11.35
|
|
Interest Rate Sensitivity from an Economic Perspective
|
|
|
Table 15
|
|
Estimated % Change in NII
Over 12 Months |
||
(Basis points)
|
June 30, 2012
|
|
December 31, 2011
|
Rate Change
|
|
|
|
+100
|
2.5%
|
|
1.5%
|
-100
1
|
(1.8)%
|
|
(1.8)%
|
Interest Rate Sensitivity from a Financial Reporting Perspective
|
|
|
Table 16
|
|
Estimated % Change in NII
Over 12 Months |
||
(Basis points)
|
June 30, 2012
|
|
December 31, 2011
|
Rate Change
|
|
|
|
+100
|
2.8%
|
|
1.8%
|
-100
1
|
(1.9)%
|
|
(2.0)%
|
Market Value of Equity Sensitivity
|
|
|
Table 17
|
|
Estimated % Change in MVE
|
||
(Basis points)
|
June 30, 2012
|
|
December 31, 2011
|
Rate Change
|
|
|
|
+100
|
(0.1)%
|
|
(2.4)%
|
-100
1
|
(3.4)%
|
|
(0.9)%
|
Value at Risk Profile
|
|
|
|
|
|
|
Table 18
|
|
For the Three Months Ended
June 30
|
|
For the Six Months Ended
June 30
|
||||
(Dollars in millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Average VAR
|
$4
|
|
$5
|
|
$5
|
|
$5
|
High VAR
|
$5
|
|
$6
|
|
$5
|
|
$7
|
Low VAR
|
$4
|
|
$4
|
|
$4
|
|
$4
|
Contingent Liquidity Sources
|
|
|
|
Table 19
|
|
||||||||||
|
June 30, 2012
|
|
June 30, 2011
|
||||||||||||
(Dollars in billions)
|
As of
|
|
Average for the
Six Months Ended ¹ |
|
As of
|
|
Average for the
Six Months Ended ¹ |
||||||||
Excess reserves
|
|
$2.6
|
|
|
|
$1.9
|
|
|
|
$3.1
|
|
|
|
$3.0
|
|
Free and liquid investment portfolio securities
|
12.5
|
|
|
13.6
|
|
|
18.3
|
|
|
17.8
|
|
||||
FHLB borrowing capacity
|
10.9
|
|
|
10.8
|
|
|
12.5
|
|
|
12.9
|
|
||||
Discount window borrowing capacity
|
17.3
|
|
|
17.1
|
|
|
14.5
|
|
|
13.3
|
|
||||
Total
|
|
$43.3
|
|
|
|
$43.4
|
|
|
|
$48.4
|
|
|
|
$47.0
|
|
Debt Credit Ratings and Outlook
|
|
|
|
|
|
|
Table 20
|
|
As of June 30, 2012
|
||||||
|
Moody’s
|
|
S&P
|
|
Fitch
|
|
DBRS
|
SunTrust Banks, Inc.
|
|
|
|
|
|
|
|
Short-term
|
P-2
|
|
A-2
|
|
F2
|
|
R-1 (low)
|
Senior long-term
|
Baa1
|
|
BBB
|
|
BBB+
|
|
A (low)
|
SunTrust Bank
|
|
|
|
|
|
|
|
Short-term
|
P-2
|
|
A-2
|
|
F2
|
|
R-1 (low)
|
Senior long-term
|
A3
|
|
BBB+
|
|
BBB+
|
|
A
|
Outlook
|
Stable
|
|
Stable
|
|
Stable
|
|
Stable
|
Unfunded Lending Commitments
|
|
|
Table 21
|
|
|||
(Dollars in millions)
|
June 30, 2012
|
|
December 31, 2011
|
||||
Unused lines of credit:
|
|
|
|
||||
Commercial
|
|
$36,456
|
|
|
|
$35,685
|
|
Mortgage commitments
1
|
9,075
|
|
|
7,833
|
|
||
Home equity lines
|
12,227
|
|
|
12,730
|
|
||
Commercial real estate
|
1,480
|
|
|
1,465
|
|
||
CP conduit
|
—
|
|
|
765
|
|
||
Credit card
|
3,811
|
|
|
3,526
|
|
||
Total unused lines of credit
|
|
$63,049
|
|
|
|
$62,004
|
|
Letters of credit:
|
|
|
|
||||
Financial standby
|
|
$4,718
|
|
|
|
$5,081
|
|
Performance standby
|
52
|
|
|
70
|
|
||
Commercial
|
45
|
|
|
55
|
|
||
Total letters of credit
|
|
$4,815
|
|
|
|
$5,206
|
|
Net Income/(Loss) by Segment
|
|
|
|
|
|
|
Table 22
|
|
|||||||
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Consumer Banking and Private Wealth Management
|
|
$105
|
|
|
|
$50
|
|
|
|
$170
|
|
|
|
$100
|
|
Wholesale Banking
|
188
|
|
|
86
|
|
|
342
|
|
|
181
|
|
||||
Mortgage Banking
|
(120
|
)
|
|
(147
|
)
|
|
(254
|
)
|
|
(315
|
)
|
||||
Corporate Other
|
82
|
|
|
116
|
|
|
186
|
|
|
242
|
|
Average Loans and Deposits by Segment
|
|
|
|
|
|
|
Table 23
|
|
|||||||
|
Three Months Ended June 30
|
||||||||||||||
|
Average Loans
|
|
Average Consumer and Commercial Deposits
|
||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Consumer Banking and Private Wealth Management
|
|
$41,391
|
|
|
|
$38,636
|
|
|
|
$77,340
|
|
|
|
$76,802
|
|
Wholesale Banking
|
51,129
|
|
|
47,467
|
|
|
44,997
|
|
|
42,250
|
|
||||
Mortgage Banking
|
30,809
|
|
|
28,822
|
|
|
3,573
|
|
|
2,695
|
|
||||
Corporate Other
|
36
|
|
|
(5
|
)
|
|
(25
|
)
|
|
132
|
|
|
Six Months Ended June 30
|
||||||||||||||
|
Average Loans
|
|
Average Consumer and Commercial Deposits
|
||||||||||||
(Dollars in millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Consumer Banking and Private Wealth Management
|
|
$41,428
|
|
|
|
$38,745
|
|
|
|
$77,059
|
|
|
|
$76,369
|
|
Wholesale Banking
|
50,697
|
|
|
47,234
|
|
|
45,404
|
|
|
41,939
|
|
||||
Mortgage Banking
|
30,803
|
|
|
29,067
|
|
|
3,386
|
|
|
2,838
|
|
||||
Corporate Other
|
26
|
|
|
(6
|
)
|
|
15
|
|
|
152
|
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4.
|
CONTROLS AND PROCEDURES
|
Item 1
.
|
LEGAL PROCEEDINGS
|
Item 1A
.
|
RISK FACTORS
|
Item 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Item 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
Item 4.
|
MINE SAFETY DISCLOSURES
|
Item 5.
|
OTHER INFORMATION
|
Item 6.
|
EXHIBITS
|
Exhibit
|
|
Description
|
|
Sequential Page Number
|
|
3.1
|
|
|
Amended and Restated Articles of Incorporation
of the Registrant, restated effective January 16, 2009, incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed January 22, 2009.
|
|
*
|
|
|
|
|||
3.2
|
|
|
Bylaws of the Registrant
, as amended and restated on August 8, 2011, incorporated by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q filed August 9, 2011.
|
|
*
|
|
|
|
|||
10.1
|
|
|
Form of 2012 Non-Qualified Stock Option Award Agreement
(2-year cliff vested) under the SunTrust Banks, Inc. 2009 Stock Plan.
|
|
(filed herewith)
|
|
|
|
|
|
|
31.1
|
|
|
Certification of Chairman and Chief Executive Officer
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
(filed herewith)
|
|
|
|
|
|
|
31.2
|
|
|
Certification of Chief Financial Officer and Corporate Executive Vice President
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
(filed herewith)
|
|
|
|
|
|
|
32.1
|
|
|
Certification of Chairman and Chief Executive Officer
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
(filed herewith)
|
|
|
|
|
|
|
32.2
|
|
|
Certification of Chief Financial Officer and Corporate Executive Vice President
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
(filed herewith)
|
|
|
|
|
|
|
101.1
|
|
|
Interactive Data File.
|
|
(filed herewith)
|
*
|
incorporated by reference
|
|
SunTrust Banks, Inc.
|
|
(Registrant)
|
|
/s/ Thomas E. Panther
|
|
Thomas E. Panther, Senior Vice President and Director of
Corporate Finance and Controller (on behalf of the
Registrant and as Principal Accounting Officer)
|
SunTrust Banks, Inc.
|
|
2009 Stock Plan
|
|
|
2012 NONQUALIFIED
|
|
STOCK OPTION (NQO)
|
|
2-YEAR CLIFF VESTED
|
|
|
(1)
|
I have reviewed this quarterly report on Form 10-Q of SunTrust Banks, Inc.;
|
(2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
(3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
(4)
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
(5)
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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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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(1)
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I have reviewed this quarterly report on Form 10-Q of SunTrust Banks, 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.
|
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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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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