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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Page
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Item 1.
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FINANCIAL STATEMENTS (UNAUDITED)
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Three Months Ended June 30
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Six Months Ended June 30
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||||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited)
|
2015
|
|
2014
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|
2015
|
|
2014
|
||||||||
Interest Income
|
|
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|
|
|
|
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||||||||
Interest and fees on loans
|
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$1,115
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$1,161
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$2,206
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$2,313
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Interest and fees on loans held for sale
|
23
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17
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|
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45
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|
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32
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||||
Interest and dividends on securities available for sale
|
137
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149
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277
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|
302
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||||
Trading account interest and other
|
22
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19
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|
41
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36
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||||
Total interest income
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1,297
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1,346
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2,569
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2,683
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||||
Interest Expense
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||||||||
Interest on deposits
|
55
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61
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110
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126
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||||
Interest on long-term debt
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67
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66
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136
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124
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||||
Interest on other borrowings
|
8
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10
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|
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16
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|
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19
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||||
Total interest expense
|
130
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137
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|
262
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269
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||||
Net interest income
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1,167
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1,209
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|
2,307
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2,414
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Provision for credit losses
|
26
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73
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|
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82
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|
|
175
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||||
Net interest income after provision for credit losses
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1,141
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1,136
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2,225
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2,239
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||||
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||||||||
Noninterest Income
|
|
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|
|
|
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||||||||
Service charges on deposit accounts
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156
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160
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308
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314
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||||
Other charges and fees
|
99
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91
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188
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179
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||||
Card fees
|
84
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82
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164
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158
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||||
Investment banking income
|
145
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|
119
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|
242
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|
207
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||||
Trading income
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54
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47
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|
109
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96
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||||
Trust and investment management income
|
84
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|
116
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|
168
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|
247
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||||
Retail investment services
|
80
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|
76
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|
152
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|
|
147
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||||
Mortgage production related income
|
76
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|
52
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|
159
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|
95
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||||
Mortgage servicing related income
|
30
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45
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73
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|
99
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||||
Gain on sale of subsidiary
|
—
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105
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—
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105
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Net securities gains/(losses)
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14
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(1
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)
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14
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(2
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)
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||||
Other noninterest income
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52
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65
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|
115
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103
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||||
Total noninterest income
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874
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|
957
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1,692
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1,748
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||||
Noninterest Expense
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||||||||
Employee compensation
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653
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659
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1,285
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1,319
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||||
Employee benefits
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103
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104
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242
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244
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Outside processing and software
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204
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181
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394
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351
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Net occupancy expense
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85
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83
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169
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169
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||||
Equipment expense
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42
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42
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82
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|
86
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||||
Regulatory assessments
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35
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40
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72
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80
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||||
Marketing and customer development
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34
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30
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61
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56
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Credit and collection services
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25
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23
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43
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46
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Operating losses
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16
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218
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30
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239
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||||
Amortization
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7
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4
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13
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7
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||||
Other noninterest expense
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124
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133
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217
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277
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||||
Total noninterest expense
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1,328
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1,517
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2,608
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2,874
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Income before provision for income taxes
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687
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576
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1,309
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1,113
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||||
Provision for income taxes
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202
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173
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393
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298
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||||
Net income including income attributable to noncontrolling interest
|
485
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403
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916
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815
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Net income attributable to noncontrolling interest
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2
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4
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4
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11
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Net income
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$483
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$399
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$912
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$804
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Net income available to common shareholders
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$467
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$387
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$877
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$780
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||||||||
Net income per average common share:
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Diluted
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$0.89
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$0.72
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$1.67
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$1.45
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Basic
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0.90
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0.73
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1.69
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1.47
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Dividends declared per common share
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0.24
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0.20
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0.44
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0.30
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Average common shares - diluted
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522,479
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535,486
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524,646
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536,234
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Average common shares - basic
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516,968
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529,764
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518,983
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530,459
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Three Months Ended June 30
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Six Months Ended June 30
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||||||||||||
(Dollars in millions) (Unaudited)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net income
|
|
$483
|
|
|
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$399
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|
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$912
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$804
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Components of other comprehensive (loss)/income:
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||||||||
Change in net unrealized (losses)/gains on securities available for sale,
net of tax of ($117), $102, ($64), and $165, respectively
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(201
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)
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175
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(115
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)
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284
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||||
Change in net unrealized (losses)/gains on derivative instruments,
net of tax of ($20), ($21), $7, and ($50), respectively
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(34
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)
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(36
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)
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10
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(86
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)
|
||||
Change related to employee benefit plans,
net of tax of ($2), $1, ($45), and $19, respectively
|
6
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2
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(67
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)
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32
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|
||||
Total other comprehensive (loss)/income, net of tax
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(229
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)
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|
141
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(172
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)
|
|
230
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|
||||
Total comprehensive income
|
|
$254
|
|
|
|
$540
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|
|
|
$740
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|
$1,034
|
|
|
June 30,
|
|
December 31,
|
||||
(Dollars in millions and shares in thousands, except per share data)
|
2015
|
|
2014
|
||||
Assets
|
(Unaudited)
|
|
|
||||
Cash and due from banks
|
|
$5,915
|
|
|
|
$7,047
|
|
Federal funds sold and securities borrowed or purchased under agreements to resell
|
1,350
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|
|
1,160
|
|
||
Interest-bearing deposits in other banks
|
23
|
|
|
22
|
|
||
Cash and cash equivalents
|
7,288
|
|
|
8,229
|
|
||
Trading assets and derivative instruments
1
|
6,438
|
|
|
6,202
|
|
||
Securities available for sale
2
|
27,113
|
|
|
26,770
|
|
||
Loans held for sale ($1,866 and $1,892 at fair value at June 30, 2015 and December 31, 2014, respectively)
|
2,457
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|
3,232
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Loans
3
($263 and $272 at fair value at June 30, 2015 and December 31, 2014, respectively)
|
132,538
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|
|
133,112
|
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Allowance for loan and lease losses
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(1,834
|
)
|
|
(1,937
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)
|
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Net loans
|
130,704
|
|
|
131,175
|
|
||
Premises and equipment
|
1,448
|
|
|
1,508
|
|
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Goodwill
|
6,337
|
|
|
6,337
|
|
||
Other intangible assets (MSRs at fair value: $1,393 and $1,206 at June 30, 2015 and December 31, 2014, respectively)
|
1,416
|
|
|
1,219
|
|
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Other assets
|
5,657
|
|
|
5,656
|
|
||
Total assets
|
|
$188,858
|
|
|
|
$190,328
|
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Liabilities and Shareholders’ Equity
|
|
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|
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Noninterest-bearing deposits
|
|
$42,773
|
|
|
|
$41,096
|
|
Interest-bearing deposits
|
102,164
|
|
|
99,471
|
|
||
Total deposits
|
144,937
|
|
|
140,567
|
|
||
Funds purchased
|
1,011
|
|
|
1,276
|
|
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Securities sold under agreements to repurchase
|
1,858
|
|
|
2,276
|
|
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Other short-term borrowings
|
3,248
|
|
|
5,634
|
|
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Long-term debt
4
($1,263 and $1,283 at fair value at June 30, 2015 and December 31, 2014, respectively)
|
10,109
|
|
|
13,022
|
|
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Trading liabilities and derivative instruments
|
1,308
|
|
|
1,227
|
|
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Other liabilities
|
3,164
|
|
|
3,321
|
|
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Total liabilities
|
165,635
|
|
|
167,323
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||
Preferred stock, no par value
|
1,225
|
|
|
1,225
|
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Common stock, $1.00 par value
|
550
|
|
|
550
|
|
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Additional paid in capital
|
9,080
|
|
|
9,089
|
|
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Retained earnings
|
13,944
|
|
|
13,295
|
|
||
Treasury stock, at cost, and other
5
|
(1,282
|
)
|
|
(1,032
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
(294
|
)
|
|
(122
|
)
|
||
Total shareholders’ equity
|
23,223
|
|
|
23,005
|
|
||
Total liabilities and shareholders’ equity
|
|
$188,858
|
|
|
|
$190,328
|
|
|
|
|
|
||||
Common shares outstanding
6
|
518,045
|
|
|
524,540
|
|
||
Common shares authorized
|
750,000
|
|
|
750,000
|
|
||
Preferred shares outstanding
|
12
|
|
|
12
|
|
||
Preferred shares authorized
|
50,000
|
|
|
50,000
|
|
||
Treasury shares of common stock
|
31,876
|
|
|
25,381
|
|
||
|
|
|
|
||||
1
Includes trading securities pledged as collateral where counterparties have the right to sell or repledge the collateral
|
|
$1,481
|
|
|
|
$1,316
|
|
2
Includes securities AFS pledged as collateral where counterparties have the right to sell or repledge the collateral
|
—
|
|
|
369
|
|
||
3
Includes loans of consolidated VIEs
|
266
|
|
|
288
|
|
||
4
Includes debt of consolidated VIEs
|
281
|
|
|
302
|
|
||
5
Includes noncontrolling interest
|
108
|
|
|
108
|
|
||
6
Includes restricted shares
|
1,601
|
|
|
2,930
|
|
(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 (Loss)/Income
|
|
Total
|
|||||||||||||||
Balance, January 1, 2014
|
|
$725
|
|
|
536
|
|
|
|
$550
|
|
|
|
$9,115
|
|
|
|
$11,936
|
|
|
|
($615
|
)
|
|
|
($289
|
)
|
|
|
$21,422
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
804
|
|
|
—
|
|
|
—
|
|
|
804
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
230
|
|
|
230
|
|
|||||||
Change in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||||
Common stock dividends, $0.30 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(160
|
)
|
|
—
|
|
|
—
|
|
|
(160
|
)
|
|||||||
Preferred stock dividends
2
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|||||||
Acquisition of treasury stock
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(133
|
)
|
|
—
|
|
|
(133
|
)
|
|||||||
Exercise of stock options and stock compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
10
|
|
|
—
|
|
|
(3
|
)
|
|||||||
Restricted stock activity
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
8
|
|
|||||||
Amortization of restricted stock compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
|||||||
Change in equity related to the sale of subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(39
|
)
|
|||||||
Issuance of stock for employee benefit plans and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||||
Balance, June 30, 2014
|
|
$725
|
|
|
533
|
|
|
|
$550
|
|
|
|
$9,085
|
|
|
|
$12,560
|
|
|
|
($730
|
)
|
|
|
($59
|
)
|
|
|
$22,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, January 1, 2015
|
|
$1,225
|
|
|
525
|
|
|
|
$550
|
|
|
|
$9,089
|
|
|
|
$13,295
|
|
|
|
($1,032
|
)
|
|
|
($122
|
)
|
|
|
$23,005
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
912
|
|
|
—
|
|
|
—
|
|
|
912
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(172
|
)
|
|
(172
|
)
|
|||||||
Common stock dividends, $0.44 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(229
|
)
|
|
—
|
|
|
—
|
|
|
(229
|
)
|
|||||||
Preferred stock dividends
2
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|||||||
Acquisition of treasury stock
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(290
|
)
|
|
—
|
|
|
(290
|
)
|
|||||||
Exercise of stock options and stock compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
22
|
|
|
—
|
|
|
8
|
|
|||||||
Restricted stock activity
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(2
|
)
|
|
7
|
|
|
—
|
|
|
10
|
|
|||||||
Amortization of restricted stock compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|||||||
Issuance of stock for employee benefit plans and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||
Balance, June 30, 2015
|
|
$1,225
|
|
|
518
|
|
|
|
$550
|
|
|
|
$9,080
|
|
|
|
$13,944
|
|
|
|
($1,282
|
)
|
|
|
($294
|
)
|
|
|
$23,223
|
|
SunTrust Banks, Inc.
Consolidated Statements of Cash Flows
|
|||||||
|
Six Months Ended June 30
|
||||||
(Dollars in millions) (Unaudited)
|
2015
|
|
2014
|
||||
Cash Flows from Operating Activities
|
|
|
|
||||
Net income including income attributable to noncontrolling interest
|
|
$916
|
|
|
|
$815
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Gain on sale of subsidiary
|
—
|
|
|
(105
|
)
|
||
Depreciation, amortization, and accretion
|
404
|
|
|
328
|
|
||
Origination of mortgage servicing rights
|
(117
|
)
|
|
(68
|
)
|
||
Provisions for credit losses and foreclosed property
|
87
|
|
|
190
|
|
||
Stock-based compensation
|
49
|
|
|
33
|
|
||
Excess tax benefits from stock-based compensation
|
(17
|
)
|
|
(4
|
)
|
||
Net securities (gains)/losses
|
(14
|
)
|
|
2
|
|
||
Net gain on sale of loans held for sale, loans, and other assets
|
(114
|
)
|
|
(173
|
)
|
||
Net decrease in loans held for sale
|
191
|
|
|
335
|
|
||
Net increase in trading assets
|
(220
|
)
|
|
(314
|
)
|
||
Net (increase)/decrease in other assets
|
(327
|
)
|
|
152
|
|
||
Net decrease in other liabilities
|
(76
|
)
|
|
(43
|
)
|
||
Net cash provided by operating activities
|
762
|
|
|
1,148
|
|
||
|
|
|
|
||||
Cash Flows from Investing Activities
|
|
|
|
||||
Proceeds from maturities, calls, and paydowns of securities available for sale
|
3,194
|
|
|
1,730
|
|
||
Proceeds from sales of securities available for sale
|
1,477
|
|
|
69
|
|
||
Purchases of securities available for sale
|
(5,302
|
)
|
|
(2,949
|
)
|
||
Proceeds from sales of auction rate securities
|
—
|
|
|
59
|
|
||
Net increase in loans, including purchases of loans
|
(894
|
)
|
|
(5,612
|
)
|
||
Proceeds from sales of loans
|
1,886
|
|
|
651
|
|
||
Purchases of mortgage servicing rights
|
(112
|
)
|
|
(76
|
)
|
||
Capital expenditures
|
(36
|
)
|
|
(60
|
)
|
||
Payments related to acquisitions, including contingent consideration
|
(30
|
)
|
|
(8
|
)
|
||
Proceeds from sale of subsidiary
|
—
|
|
|
193
|
|
||
Proceeds from the sale of other real estate owned and other assets
|
126
|
|
|
187
|
|
||
Net cash provided by/(used in) investing activities
|
309
|
|
|
(5,816
|
)
|
||
|
|
|
|
||||
Cash Flows from Financing Activities
|
|
|
|
||||
Net increase in total deposits
|
4,370
|
|
|
3,526
|
|
||
Net (decrease)/increase in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings
|
(3,069
|
)
|
|
376
|
|
||
Proceeds from long-term debt
|
1,195
|
|
|
2,704
|
|
||
Repayments of long-term debt
|
(3,987
|
)
|
|
(39
|
)
|
||
Repurchase of common stock
|
(290
|
)
|
|
(133
|
)
|
||
Common and preferred dividends paid
|
(261
|
)
|
|
(179
|
)
|
||
Incentive compensation related activity
|
30
|
|
|
9
|
|
||
Net cash (used in)/provided by financing activities
|
(2,012
|
)
|
|
6,264
|
|
||
Net (decrease)/increase in cash and cash equivalents
|
(941
|
)
|
|
1,596
|
|
||
Cash and cash equivalents at beginning of period
|
8,229
|
|
|
5,263
|
|
||
Cash and cash equivalents at end of period
|
|
$7,288
|
|
|
|
$6,859
|
|
|
|
|
|
||||
Supplemental Disclosures:
|
|
|
|
||||
Loans transferred from loans held for sale to loans
|
|
$651
|
|
|
|
$20
|
|
Loans transferred from loans to loans held for sale
|
1,696
|
|
|
2,821
|
|
||
Loans transferred from loans and loans held for sale to other real estate owned
|
35
|
|
|
80
|
|
||
Non-cash impact of the deconsolidation of CLO
|
—
|
|
|
282
|
|
Standard
|
Description
|
Date of Adoption
|
Effect on the Financial Statements or Other Significant Matters
|
Standards not yet adopted
|
|
|
|
ASU 2014-09, Revenue from Contracts with Customers
|
The ASU supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of the ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date.
|
January 1, 2018
(early adoption permitted beginning January 1, 2017)
|
The Company is continuing to evaluate the alternative methods of adoption and the anticipated effects on the financial statements and related disclosures.
|
ASU 2015-02, Amendments to the Consolidation Analysis
|
The ASU rescinds the indefinite deferral of previous amendments to ASC Topic 810 for certain entities and amends components of the consolidation analysis under ASC Topic 810, including evaluating limited partnerships and similar legal entities, evaluating fees paid to a decision maker or service provider as a variable interest, the effects of fee arrangements and/or related parties on the primary beneficiary determination and investment fund specific matters. The ASU may be adopted either retrospectively or on a modified retrospective basis and early adoption is permitted.
|
January 1, 2016
|
The Company is continuing to evaluate the impact of this ASU on the financial statements and related disclosures. The adoption is not expected to materially impact the Company's financial position, results of operations, or EPS.
|
(Dollars in millions)
|
June 30, 2015
|
|
December 31, 2014
|
||||
Fed funds sold
|
|
$92
|
|
|
|
$38
|
|
Securities borrowed
|
313
|
|
|
290
|
|
||
Securities purchased under agreements to resell
|
945
|
|
|
832
|
|
||
Total Fed funds sold and securities borrowed or purchased under agreements to resell
|
|
$1,350
|
|
|
|
$1,160
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(Dollars in millions)
|
Overnight and Continuous
|
|
Up to
30 days
|
|
Total
|
|
Overnight and Continuous
|
|
Up to
30 days
|
|
Total
|
||||||||||||
U.S. Treasury securities
|
|
$105
|
|
|
|
$10
|
|
|
|
$115
|
|
|
|
$376
|
|
|
|
$—
|
|
|
|
$376
|
|
Federal agency securities
|
184
|
|
|
—
|
|
|
184
|
|
|
231
|
|
|
—
|
|
|
231
|
|
||||||
MBS - agency
|
1,152
|
|
|
—
|
|
|
1,152
|
|
|
1,059
|
|
|
45
|
|
|
1,104
|
|
||||||
CP
|
83
|
|
|
—
|
|
|
83
|
|
|
238
|
|
|
—
|
|
|
238
|
|
||||||
Corporate and other debt securities
|
324
|
|
|
—
|
|
|
324
|
|
|
327
|
|
|
—
|
|
|
327
|
|
||||||
Total securities sold under agreements to repurchase
|
|
$1,848
|
|
|
|
$10
|
|
|
|
$1,858
|
|
|
|
$2,231
|
|
|
|
$45
|
|
|
|
$2,276
|
|
(Dollars in millions)
|
Gross
Amount
|
|
Amount
Offset
|
|
Net Amount
Presented in
Consolidated
Balance Sheets
|
|
Held/Pledged Financial
Instruments
|
|
Net
Amount
|
||||||||||
June 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities borrowed or purchased under agreements to resell
|
|
$1,258
|
|
|
|
$—
|
|
|
|
$1,258
|
|
1
|
|
$1,246
|
|
|
|
$12
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities sold under agreements to repurchase
|
1,858
|
|
|
—
|
|
|
1,858
|
|
|
1,858
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities borrowed or purchased under agreements to resell
|
|
$1,122
|
|
|
|
$—
|
|
|
|
$1,122
|
|
1
|
|
$1,112
|
|
|
|
$10
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities sold under agreements to repurchase
|
2,276
|
|
|
—
|
|
|
2,276
|
|
|
2,276
|
|
|
—
|
|
(Dollars in millions)
|
June 30, 2015
|
|
December 31, 2014
|
||||
Trading Assets and Derivative Instruments:
|
|
|
|
||||
U.S. Treasury securities
|
|
$556
|
|
|
|
$267
|
|
Federal agency securities
|
560
|
|
|
547
|
|
||
U.S. states and political subdivisions
|
32
|
|
|
42
|
|
||
MBS - agency
|
612
|
|
|
545
|
|
||
CLO securities
|
2
|
|
|
3
|
|
||
Corporate and other debt securities
|
577
|
|
|
509
|
|
||
CP
|
165
|
|
|
327
|
|
||
Equity securities
|
58
|
|
|
45
|
|
||
Derivative instruments
1
|
1,208
|
|
|
1,307
|
|
||
Trading loans
2
|
2,668
|
|
|
2,610
|
|
||
Total trading assets and derivative instruments
|
|
$6,438
|
|
|
|
$6,202
|
|
|
|
|
|
||||
Trading Liabilities and Derivative Instruments:
|
|
|
|
||||
U.S. Treasury securities
|
|
$613
|
|
|
|
$485
|
|
MBS - agency
|
1
|
|
|
1
|
|
||
Corporate and other debt securities
|
294
|
|
|
279
|
|
||
Derivative instruments
1
|
400
|
|
|
462
|
|
||
Total trading liabilities and derivative instruments
|
|
$1,308
|
|
|
|
$1,227
|
|
|
June 30, 2015
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost |
|
Unrealized
Gains |
|
Unrealized
Losses |
|
Fair
Value |
||||||||
U.S. Treasury securities
|
|
$2,905
|
|
|
|
$16
|
|
|
|
$8
|
|
|
|
$2,913
|
|
Federal agency securities
|
466
|
|
|
13
|
|
|
2
|
|
|
477
|
|
||||
U.S. states and political subdivisions
|
178
|
|
|
6
|
|
|
—
|
|
|
184
|
|
||||
MBS - agency
|
22,431
|
|
|
461
|
|
|
159
|
|
|
22,733
|
|
||||
MBS - private
|
110
|
|
|
2
|
|
|
—
|
|
|
112
|
|
||||
ABS
|
15
|
|
|
2
|
|
|
—
|
|
|
17
|
|
||||
Corporate and other debt securities
|
35
|
|
|
2
|
|
|
—
|
|
|
37
|
|
||||
Other equity securities
1
|
639
|
|
|
1
|
|
|
—
|
|
|
640
|
|
||||
Total securities AFS
|
|
$26,779
|
|
|
|
$503
|
|
|
|
$169
|
|
|
|
$27,113
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2014
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost |
|
Unrealized
Gains |
|
Unrealized
Losses |
|
Fair
Value |
||||||||
U.S. Treasury securities
|
|
$1,913
|
|
|
|
$9
|
|
|
|
$1
|
|
|
|
$1,921
|
|
Federal agency securities
|
471
|
|
|
15
|
|
|
2
|
|
|
484
|
|
||||
U.S. states and political subdivisions
|
200
|
|
|
9
|
|
|
—
|
|
|
209
|
|
||||
MBS - agency
|
22,573
|
|
|
558
|
|
|
83
|
|
|
23,048
|
|
||||
MBS - private
|
122
|
|
|
2
|
|
|
1
|
|
|
123
|
|
||||
ABS
|
19
|
|
|
2
|
|
|
—
|
|
|
21
|
|
||||
Corporate and other debt securities
|
38
|
|
|
3
|
|
|
—
|
|
|
41
|
|
||||
Other equity securities
1
|
921
|
|
|
2
|
|
|
—
|
|
|
923
|
|
||||
Total securities AFS
|
|
$26,257
|
|
|
|
$600
|
|
|
|
$87
|
|
|
|
$26,770
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Taxable interest
|
|
$126
|
|
|
|
$138
|
|
|
|
$254
|
|
|
|
$279
|
|
Tax-exempt interest
|
2
|
|
|
2
|
|
|
4
|
|
|
5
|
|
||||
Dividends
|
9
|
|
|
9
|
|
|
19
|
|
|
18
|
|
||||
Total interest and dividends
|
|
$137
|
|
|
|
$149
|
|
|
|
$277
|
|
|
|
$302
|
|
|
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
|
|
$200
|
|
|
|
$1,717
|
|
|
|
$988
|
|
|
|
$—
|
|
|
|
$2,905
|
|
Federal agency securities
|
80
|
|
|
209
|
|
|
42
|
|
|
135
|
|
|
466
|
|
|||||
U.S. states and political subdivisions
|
42
|
|
|
20
|
|
|
101
|
|
|
15
|
|
|
178
|
|
|||||
MBS - agency
|
2,664
|
|
|
12,267
|
|
|
3,348
|
|
|
4,152
|
|
|
22,431
|
|
|||||
MBS - private
|
—
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
110
|
|
|||||
ABS
|
13
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
15
|
|
|||||
Corporate and other debt securities
|
3
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|||||
Total debt securities AFS
|
|
$3,002
|
|
|
|
$14,356
|
|
|
|
$4,480
|
|
|
|
$4,302
|
|
|
|
$26,140
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair Value:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
|
$202
|
|
|
|
$1,725
|
|
|
|
$986
|
|
|
|
$—
|
|
|
|
$2,913
|
|
Federal agency securities
|
80
|
|
|
219
|
|
|
44
|
|
|
134
|
|
|
477
|
|
|||||
U.S. states and political subdivisions
|
42
|
|
|
21
|
|
|
105
|
|
|
16
|
|
|
184
|
|
|||||
MBS - agency
|
2,819
|
|
|
12,511
|
|
|
3,322
|
|
|
4,081
|
|
|
22,733
|
|
|||||
MBS - private
|
—
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|||||
ABS
|
13
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
17
|
|
|||||
Corporate and other debt securities
|
3
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Total debt securities AFS
|
|
$3,159
|
|
|
|
$14,625
|
|
|
|
$4,458
|
|
|
|
$4,231
|
|
|
|
$26,473
|
|
Weighted average yield
1
|
2.19
|
%
|
|
2.29
|
%
|
|
2.66
|
%
|
|
2.77
|
%
|
|
2.40
|
%
|
|
June 30, 2015
|
||||||||||||||||||||||
|
Less than twelve months
|
|
Twelve months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in millions)
|
Fair
Value |
|
Unrealized
Losses 2 |
|
Fair
Value |
|
Unrealized
Losses 2 |
|
Fair
Value |
|
Unrealized
Losses 2 |
||||||||||||
Temporarily impaired securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$1,034
|
|
|
|
$8
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$1,034
|
|
|
|
$8
|
|
Federal agency securities
|
76
|
|
|
1
|
|
|
45
|
|
|
1
|
|
|
121
|
|
|
2
|
|
||||||
MBS - agency
|
10,172
|
|
|
116
|
|
|
1,048
|
|
|
43
|
|
|
11,220
|
|
|
159
|
|
||||||
ABS
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||||
Total temporarily impaired securities AFS
|
11,282
|
|
|
125
|
|
|
1,104
|
|
|
44
|
|
|
12,386
|
|
|
169
|
|
||||||
OTTI securities AFS
1
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
MBS - private
|
64
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|
—
|
|
||||||
Total OTTI securities AFS
|
64
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|
—
|
|
||||||
Total impaired securities AFS
|
|
$11,346
|
|
|
|
$125
|
|
|
|
$1,104
|
|
|
|
$44
|
|
|
|
$12,450
|
|
|
|
$169
|
|
|
December 31, 2014
|
||||||||||||||||||||||
|
Less than twelve months
|
|
Twelve months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in millions)
|
Fair
Value
|
|
Unrealized
Losses
2
|
|
Fair
Value
|
|
Unrealized
Losses 2 |
|
Fair
Value
|
|
Unrealized
Losses
2
|
||||||||||||
Temporarily impaired securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$150
|
|
|
|
$1
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$150
|
|
|
|
$1
|
|
Federal agency securities
|
20
|
|
|
—
|
|
|
132
|
|
|
2
|
|
|
152
|
|
|
2
|
|
||||||
MBS - agency
|
2,347
|
|
|
6
|
|
|
4,911
|
|
|
77
|
|
|
7,258
|
|
|
83
|
|
||||||
ABS
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||||
Total temporarily impaired securities AFS
|
2,517
|
|
|
7
|
|
|
5,057
|
|
|
79
|
|
|
7,574
|
|
|
86
|
|
||||||
OTTI securities AFS
1
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
MBS - private
|
69
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|
1
|
|
||||||
Total OTTI securities AFS
|
69
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|
1
|
|
||||||
Total impaired securities AFS
|
|
$2,586
|
|
|
|
$8
|
|
|
|
$5,057
|
|
|
|
$79
|
|
|
|
$7,643
|
|
|
|
$87
|
|
(Dollars in millions)
|
June 30, 2015
|
|
December 31, 2014
|
||||
Commercial loans:
|
|
|
|
||||
C&I
|
|
$65,713
|
|
|
|
$65,440
|
|
CRE
|
6,058
|
|
|
6,741
|
|
||
Commercial construction
|
1,530
|
|
|
1,211
|
|
||
Total commercial loans
|
73,301
|
|
|
73,392
|
|
||
Residential loans:
|
|
|
|
||||
Residential mortgages - guaranteed
|
625
|
|
|
632
|
|
||
Residential mortgages - nonguaranteed
1
|
24,038
|
|
|
23,443
|
|
||
Home equity products
|
13,672
|
|
|
14,264
|
|
||
Residential construction
|
401
|
|
|
436
|
|
||
Total residential loans
|
38,736
|
|
|
38,775
|
|
||
Consumer loans:
|
|
|
|
||||
Guaranteed student
|
4,401
|
|
|
4,827
|
|
||
Other direct
|
5,329
|
|
|
4,573
|
|
||
Indirect
|
9,834
|
|
|
10,644
|
|
||
Credit cards
|
937
|
|
|
901
|
|
||
Total consumer loans
|
20,501
|
|
|
20,945
|
|
||
LHFI
|
|
$132,538
|
|
|
|
$133,112
|
|
LHFS
2
|
|
$2,457
|
|
|
|
$3,232
|
|
|
Commercial Loans
|
||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Commercial Construction
|
||||||||||||||||||
(Dollars in millions)
|
June 30,
2015 |
|
December 31, 2014
|
|
June 30,
2015 |
|
December 31, 2014
|
|
June 30,
2015 |
|
December 31, 2014
|
||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pass
|
|
$64,190
|
|
|
|
$64,228
|
|
|
|
$5,934
|
|
|
|
$6,586
|
|
|
|
$1,515
|
|
|
|
$1,196
|
|
Criticized accruing
|
1,383
|
|
|
1,061
|
|
|
107
|
|
|
134
|
|
|
14
|
|
|
14
|
|
||||||
Criticized nonaccruing
|
140
|
|
|
151
|
|
|
17
|
|
|
21
|
|
|
1
|
|
|
1
|
|
||||||
Total
|
|
$65,713
|
|
|
|
$65,440
|
|
|
|
$6,058
|
|
|
|
$6,741
|
|
|
|
$1,530
|
|
|
|
$1,211
|
|
|
Residential Loans
1
|
||||||||||||||||||||||
|
Residential Mortgages -
Nonguaranteed
|
|
Home Equity Products
|
|
Residential Construction
|
||||||||||||||||||
(Dollars in millions)
|
June 30,
2015 |
|
December 31, 2014
|
|
June 30,
2015 |
|
December 31, 2014
|
|
June 30,
2015 |
|
December 31, 2014
|
||||||||||||
Current FICO score range:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
700 and above
|
|
$19,582
|
|
|
|
$18,780
|
|
|
|
$11,076
|
|
|
|
$11,475
|
|
|
|
$324
|
|
|
|
$347
|
|
620 - 699
|
3,298
|
|
|
3,369
|
|
|
1,878
|
|
|
1,991
|
|
|
62
|
|
|
70
|
|
||||||
Below 620
2
|
1,158
|
|
|
1,294
|
|
|
718
|
|
|
798
|
|
|
15
|
|
|
19
|
|
||||||
Total
|
|
$24,038
|
|
|
|
$23,443
|
|
|
|
$13,672
|
|
|
|
$14,264
|
|
|
|
$401
|
|
|
|
$436
|
|
|
Consumer Loans
3
|
||||||||||||||||||||||
|
Other Direct
|
|
Indirect
|
|
Credit Cards
|
||||||||||||||||||
(Dollars in millions)
|
June 30,
2015 |
|
December 31, 2014
|
|
June 30,
2015 |
|
December 31, 2014
|
|
June 30,
2015 |
|
December 31, 2014
|
||||||||||||
Current FICO score range:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
700 and above
|
|
$4,754
|
|
|
|
$4,023
|
|
|
|
$7,066
|
|
|
|
$7,661
|
|
|
|
$661
|
|
|
|
$639
|
|
620 - 699
|
520
|
|
|
476
|
|
|
2,181
|
|
|
2,335
|
|
|
226
|
|
|
212
|
|
||||||
Below 620
2
|
55
|
|
|
74
|
|
|
587
|
|
|
648
|
|
|
50
|
|
|
50
|
|
||||||
Total
|
|
$5,329
|
|
|
|
$4,573
|
|
|
|
$9,834
|
|
|
|
$10,644
|
|
|
|
$937
|
|
|
|
$901
|
|
|
June 30, 2015
|
||||||||||||||||||
(Dollars in millions)
|
Accruing
Current
|
|
Accruing
30-89 Days
Past Due
|
|
Accruing
90+ Days
Past Due
|
|
Nonaccruing
2
|
|
Total
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$65,518
|
|
|
|
$36
|
|
|
|
$19
|
|
|
|
$140
|
|
|
|
$65,713
|
|
CRE
|
6,038
|
|
|
2
|
|
|
1
|
|
|
17
|
|
|
6,058
|
|
|||||
Commercial construction
|
1,529
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1,530
|
|
|||||
Total commercial loans
|
73,085
|
|
|
38
|
|
|
20
|
|
|
158
|
|
|
73,301
|
|
|||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgages - guaranteed
|
190
|
|
|
35
|
|
|
400
|
|
|
—
|
|
|
625
|
|
|||||
Residential mortgages - nonguaranteed
1
|
23,789
|
|
|
92
|
|
|
10
|
|
|
147
|
|
|
24,038
|
|
|||||
Home equity products
|
13,443
|
|
|
76
|
|
|
—
|
|
|
153
|
|
|
13,672
|
|
|||||
Residential construction
|
378
|
|
|
5
|
|
|
—
|
|
|
18
|
|
|
401
|
|
|||||
Total residential loans
|
37,800
|
|
|
208
|
|
|
410
|
|
|
318
|
|
|
38,736
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Guaranteed student
|
3,617
|
|
|
312
|
|
|
472
|
|
|
—
|
|
|
4,401
|
|
|||||
Other direct
|
5,301
|
|
|
21
|
|
|
3
|
|
|
4
|
|
|
5,329
|
|
|||||
Indirect
|
9,755
|
|
|
78
|
|
|
—
|
|
|
1
|
|
|
9,834
|
|
|||||
Credit cards
|
926
|
|
|
6
|
|
|
5
|
|
|
—
|
|
|
937
|
|
|||||
Total consumer loans
|
19,599
|
|
|
417
|
|
|
480
|
|
|
5
|
|
|
20,501
|
|
|||||
Total LHFI
|
|
$130,484
|
|
|
|
$663
|
|
|
|
$910
|
|
|
|
$481
|
|
|
|
$132,538
|
|
|
December 31, 2014
|
||||||||||||||||||
(Dollars in millions)
|
Accruing
Current
|
|
Accruing
30-89 Days
Past Due
|
|
Accruing
90+ Days
Past Due
|
|
Nonaccruing
2
|
|
Total
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$65,246
|
|
|
|
$36
|
|
|
|
$7
|
|
|
|
$151
|
|
|
|
$65,440
|
|
CRE
|
6,716
|
|
|
3
|
|
|
1
|
|
|
21
|
|
|
6,741
|
|
|||||
Commercial construction
|
1,209
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1,211
|
|
|||||
Total commercial loans
|
73,171
|
|
|
40
|
|
|
8
|
|
|
173
|
|
|
73,392
|
|
|||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgages - guaranteed
|
176
|
|
|
34
|
|
|
422
|
|
|
—
|
|
|
632
|
|
|||||
Residential mortgages - nonguaranteed
1
|
23,067
|
|
|
108
|
|
|
14
|
|
|
254
|
|
|
23,443
|
|
|||||
Home equity products
|
13,989
|
|
|
101
|
|
|
—
|
|
|
174
|
|
|
14,264
|
|
|||||
Residential construction
|
402
|
|
|
7
|
|
|
—
|
|
|
27
|
|
|
436
|
|
|||||
Total residential loans
|
37,634
|
|
|
250
|
|
|
436
|
|
|
455
|
|
|
38,775
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Guaranteed student
|
3,801
|
|
|
425
|
|
|
601
|
|
|
—
|
|
|
4,827
|
|
|||||
Other direct
|
4,545
|
|
|
19
|
|
|
3
|
|
|
6
|
|
|
4,573
|
|
|||||
Indirect
|
10,537
|
|
|
104
|
|
|
3
|
|
|
—
|
|
|
10,644
|
|
|||||
Credit cards
|
887
|
|
|
8
|
|
|
6
|
|
|
—
|
|
|
901
|
|
|||||
Total consumer loans
|
19,770
|
|
|
556
|
|
|
613
|
|
|
6
|
|
|
20,945
|
|
|||||
Total LHFI
|
|
$130,575
|
|
|
|
$846
|
|
|
|
$1,057
|
|
|
|
$634
|
|
|
|
$133,112
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(Dollars in millions)
|
Unpaid
Principal
Balance
|
|
Amortized
Cost
1
|
|
Related
Allowance
|
|
Unpaid
Principal
Balance
|
|
Amortized
Cost
1
|
|
Related
Allowance
|
||||||||||||
Impaired loans with no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$47
|
|
|
|
$39
|
|
|
|
$—
|
|
|
|
$70
|
|
|
|
$51
|
|
|
|
$—
|
|
CRE
|
11
|
|
|
9
|
|
|
—
|
|
|
12
|
|
|
11
|
|
|
—
|
|
||||||
Total commercial loans
|
58
|
|
|
48
|
|
|
—
|
|
|
82
|
|
|
62
|
|
|
—
|
|
||||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgages - nonguaranteed
|
486
|
|
|
359
|
|
|
—
|
|
|
592
|
|
|
425
|
|
|
—
|
|
||||||
Residential construction
|
24
|
|
|
7
|
|
|
—
|
|
|
31
|
|
|
9
|
|
|
—
|
|
||||||
Total residential loans
|
510
|
|
|
366
|
|
|
—
|
|
|
623
|
|
|
434
|
|
|
—
|
|
||||||
Impaired loans with an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
31
|
|
|
16
|
|
|
5
|
|
|
27
|
|
|
26
|
|
|
7
|
|
||||||
CRE
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
4
|
|
||||||
Total commercial loans
|
31
|
|
|
16
|
|
|
5
|
|
|
31
|
|
|
30
|
|
|
11
|
|
||||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgages - nonguaranteed
|
1,410
|
|
|
1,370
|
|
|
189
|
|
|
1,381
|
|
|
1,354
|
|
|
215
|
|
||||||
Home equity products
|
706
|
|
|
634
|
|
|
69
|
|
|
703
|
|
|
630
|
|
|
66
|
|
||||||
Residential construction
|
129
|
|
|
129
|
|
|
15
|
|
|
145
|
|
|
145
|
|
|
19
|
|
||||||
Total residential loans
|
2,245
|
|
|
2,133
|
|
|
273
|
|
|
2,229
|
|
|
2,129
|
|
|
300
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other direct
|
12
|
|
|
12
|
|
|
1
|
|
|
13
|
|
|
13
|
|
|
1
|
|
||||||
Indirect
|
110
|
|
|
109
|
|
|
5
|
|
|
105
|
|
|
105
|
|
|
5
|
|
||||||
Credit cards
|
24
|
|
|
7
|
|
|
1
|
|
|
25
|
|
|
8
|
|
|
2
|
|
||||||
Total consumer loans
|
146
|
|
|
128
|
|
|
7
|
|
|
143
|
|
|
126
|
|
|
8
|
|
||||||
Total impaired loans
|
|
$2,990
|
|
|
|
$2,691
|
|
|
|
$285
|
|
|
|
$3,108
|
|
|
|
$2,781
|
|
|
|
$319
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||||||||||
(Dollars in millions)
|
Average
Amortized
Cost
|
|
Interest
Income
Recognized
1
|
|
Average
Amortized
Cost
|
|
Interest
Income
Recognized
1
|
|
Average
Amortized
Cost
|
|
Interest
Income
Recognized
1
|
|
Average
Amortized
Cost
|
|
Interest
Income
Recognized
1
|
||||||||||||||||
Impaired loans with no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
C&I
|
|
$44
|
|
|
|
$1
|
|
|
|
$72
|
|
|
|
$—
|
|
|
|
$46
|
|
|
|
$1
|
|
|
|
$76
|
|
|
|
$1
|
|
CRE
|
10
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||||||
Total commercial loans
|
54
|
|
|
1
|
|
|
87
|
|
|
—
|
|
|
56
|
|
|
1
|
|
|
91
|
|
|
1
|
|
||||||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgages - nonguaranteed
|
365
|
|
|
4
|
|
|
448
|
|
|
5
|
|
|
368
|
|
|
7
|
|
|
454
|
|
|
9
|
|
||||||||
Residential construction
|
8
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
16
|
|
|
—
|
|
||||||||
Total residential loans
|
373
|
|
|
4
|
|
|
463
|
|
|
5
|
|
|
378
|
|
|
7
|
|
|
470
|
|
|
9
|
|
||||||||
Impaired loans with an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
C&I
|
19
|
|
|
—
|
|
|
52
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
54
|
|
|
—
|
|
||||||||
CRE
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||||||
Commercial construction
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||||||
Total commercial loans
|
19
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
68
|
|
|
—
|
|
||||||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgages - nonguaranteed
|
1,366
|
|
|
17
|
|
|
1,471
|
|
|
20
|
|
|
1,367
|
|
|
34
|
|
|
1,460
|
|
|
41
|
|
||||||||
Home equity products
|
637
|
|
|
7
|
|
|
651
|
|
|
7
|
|
|
640
|
|
|
14
|
|
|
648
|
|
|
13
|
|
||||||||
Residential construction
|
129
|
|
|
2
|
|
|
164
|
|
|
2
|
|
|
128
|
|
|
4
|
|
|
162
|
|
|
4
|
|
||||||||
Total residential loans
|
2,132
|
|
|
26
|
|
|
2,286
|
|
|
29
|
|
|
2,135
|
|
|
52
|
|
|
2,270
|
|
|
58
|
|
||||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other direct
|
12
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||||||
Indirect
|
111
|
|
|
1
|
|
|
105
|
|
|
1
|
|
|
114
|
|
|
3
|
|
|
103
|
|
|
3
|
|
||||||||
Credit cards
|
7
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||||||
Total consumer loans
|
130
|
|
|
1
|
|
|
130
|
|
|
1
|
|
|
133
|
|
|
3
|
|
|
128
|
|
|
3
|
|
||||||||
Total impaired loans
|
|
$2,708
|
|
|
|
$32
|
|
|
|
$3,032
|
|
|
|
$35
|
|
|
|
$2,727
|
|
|
|
$63
|
|
|
|
$3,027
|
|
|
|
$71
|
|
(Dollars in millions)
|
June 30, 2015
|
|
December 31, 2014
|
||||
Nonaccrual/NPLs:
|
|
|
|
||||
Commercial loans:
|
|
|
|
||||
C&I
|
|
$140
|
|
|
|
$151
|
|
CRE
|
17
|
|
|
21
|
|
||
Commercial construction
|
1
|
|
|
1
|
|
||
Residential loans:
|
|
|
|
||||
Residential mortgages - nonguaranteed
|
147
|
|
|
254
|
|
||
Home equity products
|
153
|
|
|
174
|
|
||
Residential construction
|
18
|
|
|
27
|
|
||
Consumer loans:
|
|
|
|
||||
Other direct
|
4
|
|
|
6
|
|
||
Indirect
|
1
|
|
|
—
|
|
||
Total nonaccrual/NPLs
1
|
481
|
|
|
634
|
|
||
OREO
2
|
72
|
|
|
99
|
|
||
Other repossessed assets
|
6
|
|
|
9
|
|
||
Nonperforming LHFS
|
98
|
|
|
38
|
|
||
Total NPAs
|
|
$657
|
|
|
|
$780
|
|
|
Three Months Ended June 30, 2015
1
|
||||||||||||||||
(Dollars in millions)
|
Number of Loans Modified
|
|
Principal
Forgiveness 2 |
|
Rate
Modification 2, 3 |
|
Term Extension and/or Other Concessions
|
|
Total
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
23
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$1
|
|
|
|
$1
|
|
CRE
|
1
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
241
|
|
3
|
|
|
34
|
|
|
3
|
|
|
40
|
|
||||
Home equity products
|
499
|
|
—
|
|
|
9
|
|
|
17
|
|
|
26
|
|
||||
Residential construction
|
10
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Other direct
|
20
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Indirect
|
819
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
||||
Credit cards
|
136
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Total TDRs
|
1,749
|
|
|
$3
|
|
|
|
$44
|
|
|
|
$35
|
|
|
|
$82
|
|
|
Six Months Ended June 30, 2015
1
|
||||||||||||||||
(Dollars in millions)
|
Number of Loans Modified
|
|
Principal
Forgiveness 2 |
|
Rate
Modification 2, 3 |
|
Term Extension and/or Other Concessions
|
|
Total
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
45
|
|
|
$—
|
|
|
|
$1
|
|
|
|
$5
|
|
|
|
$6
|
|
CRE
|
1
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
457
|
|
7
|
|
|
63
|
|
|
11
|
|
|
81
|
|
||||
Home equity products
|
967
|
|
—
|
|
|
13
|
|
|
41
|
|
|
54
|
|
||||
Residential construction
|
11
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Other direct
|
37
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Indirect
|
1,388
|
|
—
|
|
|
—
|
|
|
26
|
|
|
26
|
|
||||
Credit cards
|
372
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Total TDRs
|
3,278
|
|
|
$7
|
|
|
|
$78
|
|
|
|
$83
|
|
|
|
$168
|
|
|
Three Months Ended June 30, 2014
1
|
||||||||||||||||
(Dollars in millions)
|
Number of Loans Modified
|
|
Principal
Forgiveness 2 |
|
Rate
Modification 2, 3 |
|
Term Extension and/or Other Concessions
|
|
Total
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
27
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$12
|
|
|
|
$12
|
|
CRE
|
2
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
365
|
|
4
|
|
|
41
|
|
|
10
|
|
|
55
|
|
||||
Home equity products
|
471
|
|
—
|
|
|
2
|
|
|
20
|
|
|
22
|
|
||||
Residential construction
|
4
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Other direct
|
21
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Indirect
|
712
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
||||
Credit cards
|
130
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Total TDRs
|
1,732
|
|
|
$7
|
|
|
|
$44
|
|
|
|
$56
|
|
|
|
$107
|
|
|
Six Months Ended June 30, 2014
1
|
||||||||||||||||
(Dollars in millions)
|
Number of Loans Modified
|
|
Principal
Forgiveness 2 |
|
Rate
Modification 2, 3 |
|
Term Extension and/or Other Concessions
|
|
Total
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
43
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$14
|
|
|
|
$14
|
|
CRE
|
4
|
|
3
|
|
|
—
|
|
|
3
|
|
|
6
|
|
||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
678
|
|
7
|
|
|
79
|
|
|
29
|
|
|
115
|
|
||||
Home equity products
|
904
|
|
—
|
|
|
5
|
|
|
38
|
|
|
43
|
|
||||
Residential construction
|
10
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Other direct
|
38
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Indirect
|
1,551
|
|
—
|
|
|
—
|
|
|
30
|
|
|
30
|
|
||||
Credit cards
|
227
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Total TDRs
|
3,455
|
|
|
$10
|
|
|
|
$86
|
|
|
|
$115
|
|
|
|
$211
|
|
|
Three Months Ended June 30, 2015
|
|
Six Months Ended June 30, 2015
|
||||||||||
(Dollars in millions)
|
Number of Loans
|
|
Amortized Cost
|
|
Number of Loans
|
|
Amortized Cost
|
||||||
Commercial loans:
|
|
|
|
|
|
|
|
||||||
C&I
|
8
|
|
|
|
$—
|
|
|
12
|
|
|
|
$1
|
|
Residential loans:
|
|
|
|
|
|
|
|
||||||
Residential mortgages
|
19
|
|
|
3
|
|
|
55
|
|
|
9
|
|
||
Home equity products
|
32
|
|
|
1
|
|
|
62
|
|
|
2
|
|
||
Consumer loans:
|
|
|
|
|
|
|
|
||||||
Other direct
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||
Indirect
|
32
|
|
|
—
|
|
|
71
|
|
|
—
|
|
||
Credit cards
|
4
|
|
|
—
|
|
|
23
|
|
|
—
|
|
||
Total TDRs
|
95
|
|
|
|
$4
|
|
|
224
|
|
|
|
$12
|
|
|
Three Months Ended June 30, 2014
|
|
Six Months Ended June 30, 2014
|
|||||||||
(Dollars in millions)
|
Number of Loans
|
|
Amortized Cost
|
|
Number of Loans
|
|
Amortized Cost
|
|||||
Commercial loans:
|
|
|
|
|
|
|
|
|||||
C&I
|
22
|
|
|
$4
|
|
|
47
|
|
|
$5
|
|
|
Residential loans:
|
|
|
|
|
|
|
|
|||||
Residential mortgages
|
40
|
|
6
|
|
|
89
|
|
10
|
|
|||
Home equity products
|
24
|
|
2
|
|
|
47
|
|
3
|
|
|||
Residential construction
|
2
|
|
—
|
|
|
6
|
|
—
|
|
|||
Consumer loans:
|
|
|
|
|
|
|
|
|||||
Other direct
|
—
|
|
|
—
|
|
|
5
|
|
—
|
|
||
Indirect
|
46
|
|
—
|
|
|
89
|
|
1
|
|
|||
Credit cards
|
63
|
|
1
|
|
|
83
|
|
1
|
|
|||
Total TDRs
|
197
|
|
|
|
$13
|
|
|
366
|
|
|
$20
|
|
(Dollars in millions)
|
June 30, 2015
|
|
December 31, 2014
|
||||
Interest only mortgages with MI or
with combined original LTV ≤ 80%
1
|
|
$2,314
|
|
|
|
$3,180
|
|
Interest only mortgages with no MI
and with combined original LTV > 80%
1
|
714
|
|
|
873
|
|
||
Total interest only mortgages
1
|
3,028
|
|
|
4,053
|
|
||
Amortizing mortgages with combined original LTV > 80% and/or second liens
2
|
7,810
|
|
|
7,368
|
|
||
Total mortgages with potential concentration of credit risk
|
|
$10,838
|
|
|
|
$11,421
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Balance, beginning of period
|
|
$1,947
|
|
|
|
$2,086
|
|
|
|
$1,991
|
|
|
|
$2,094
|
|
Provision for loan losses
|
28
|
|
|
76
|
|
|
84
|
|
|
182
|
|
||||
Benefit for unfunded commitments
|
(2
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
(7
|
)
|
||||
Loan charge-offs
|
(123
|
)
|
|
(158
|
)
|
|
(254
|
)
|
|
(309
|
)
|
||||
Loan recoveries
|
36
|
|
|
45
|
|
|
67
|
|
|
86
|
|
||||
Balance, end of period
|
|
$1,886
|
|
|
|
$2,046
|
|
|
|
$1,886
|
|
|
|
$2,046
|
|
|
|
|
|
|
|
|
|
||||||||
Components:
|
|
|
|
|
|
|
|
||||||||
ALLL
|
|
|
|
|
|
$1,834
|
|
|
|
$2,003
|
|
||||
Unfunded commitments reserve
1
|
|
|
|
|
52
|
|
|
43
|
|
||||||
Allowance for credit losses
|
|
|
|
|
|
$1,886
|
|
|
|
$2,046
|
|
|
Three Months Ended June 30, 2015
|
||||||||||||||
(Dollars in millions)
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
Balance, beginning of period
|
|
$976
|
|
|
|
$743
|
|
|
|
$174
|
|
|
|
$1,893
|
|
Provision for loan losses
|
33
|
|
|
(16
|
)
|
|
11
|
|
|
28
|
|
||||
Loan charge-offs
|
(31
|
)
|
|
(61
|
)
|
|
(31
|
)
|
|
(123
|
)
|
||||
Loan recoveries
|
15
|
|
|
10
|
|
|
11
|
|
|
36
|
|
||||
Balance, end of period
|
|
$993
|
|
|
|
$676
|
|
|
|
$165
|
|
|
|
$1,834
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, 2014
|
||||||||||||||
(Dollars in millions)
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
Balance, beginning of period
|
|
$966
|
|
|
|
$910
|
|
|
|
$164
|
|
|
|
$2,040
|
|
Provision for loan losses
|
18
|
|
|
32
|
|
|
26
|
|
|
76
|
|
||||
Loan charge-offs
|
(38
|
)
|
|
(90
|
)
|
|
(30
|
)
|
|
(158
|
)
|
||||
Loan recoveries
|
12
|
|
|
23
|
|
|
10
|
|
|
45
|
|
||||
Balance, end of period
|
|
$958
|
|
|
|
$875
|
|
|
|
$170
|
|
|
|
$2,003
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30, 2015
|
||||||||||||||
(Dollars in millions)
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
Balance, beginning of period
|
|
$986
|
|
|
|
$777
|
|
|
|
$174
|
|
|
|
$1,937
|
|
Provision for loan losses
|
40
|
|
|
9
|
|
|
35
|
|
|
84
|
|
||||
Loan charge-offs
|
(59
|
)
|
|
(129
|
)
|
|
(66
|
)
|
|
(254
|
)
|
||||
Loan recoveries
|
26
|
|
|
19
|
|
|
22
|
|
|
67
|
|
||||
Balance, end of period
|
|
$993
|
|
|
|
$676
|
|
|
|
$165
|
|
|
|
$1,834
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30, 2014
|
||||||||||||||
(Dollars in millions)
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
Balance, beginning of period
|
|
$946
|
|
|
|
$930
|
|
|
|
$168
|
|
|
|
$2,044
|
|
Provision for loan losses
|
57
|
|
|
80
|
|
|
45
|
|
|
182
|
|
||||
Loan charge-offs
|
(71
|
)
|
|
(175
|
)
|
|
(63
|
)
|
|
(309
|
)
|
||||
Loan recoveries
|
26
|
|
|
40
|
|
|
20
|
|
|
86
|
|
||||
Balance, end of period
|
|
$958
|
|
|
|
$875
|
|
|
|
$170
|
|
|
|
$2,003
|
|
|
June 30, 2015
|
||||||||||||||||||||||||||||||
|
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
|
|
$64
|
|
|
|
$5
|
|
|
|
$2,499
|
|
|
|
$273
|
|
|
|
$128
|
|
|
|
$7
|
|
|
|
$2,691
|
|
|
|
$285
|
|
Collectively evaluated
|
73,237
|
|
|
988
|
|
|
35,974
|
|
|
403
|
|
|
20,373
|
|
|
158
|
|
|
129,584
|
|
|
1,549
|
|
||||||||
Total evaluated
|
73,301
|
|
|
993
|
|
|
38,473
|
|
|
676
|
|
|
20,501
|
|
|
165
|
|
|
132,275
|
|
|
1,834
|
|
||||||||
LHFI at fair value
|
—
|
|
|
—
|
|
|
263
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
263
|
|
|
—
|
|
||||||||
Total LHFI
|
|
$73,301
|
|
|
|
$993
|
|
|
|
$38,736
|
|
|
|
$676
|
|
|
|
$20,501
|
|
|
|
$165
|
|
|
|
$132,538
|
|
|
|
$1,834
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||||||
|
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
|
|
$92
|
|
|
|
$11
|
|
|
|
$2,563
|
|
|
|
$300
|
|
|
|
$126
|
|
|
|
$8
|
|
|
|
$2,781
|
|
|
|
$319
|
|
Collectively evaluated
|
73,300
|
|
|
975
|
|
|
35,940
|
|
|
477
|
|
|
20,819
|
|
|
166
|
|
|
130,059
|
|
|
1,618
|
|
||||||||
Total evaluated
|
73,392
|
|
|
986
|
|
|
38,503
|
|
|
777
|
|
|
20,945
|
|
|
174
|
|
|
132,840
|
|
|
1,937
|
|
||||||||
LHFI at fair value
|
—
|
|
|
—
|
|
|
272
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
272
|
|
|
—
|
|
||||||||
Total LHFI
|
|
$73,392
|
|
|
|
$986
|
|
|
|
$38,775
|
|
|
|
$777
|
|
|
|
$20,945
|
|
|
|
$174
|
|
|
|
$133,112
|
|
|
|
$1,937
|
|
(Dollars in millions)
|
Consumer Banking and Private Wealth Management
|
|
Wholesale Banking
|
|
Total
|
||||||
Balance, January 1, 2014
|
|
$4,262
|
|
|
|
$2,107
|
|
|
|
$6,369
|
|
Acquisition of Lantana Oil and Gas Partners, Inc.
|
—
|
|
|
8
|
|
|
8
|
|
|||
Sale of RidgeWorth
|
—
|
|
|
(40
|
)
|
|
(40
|
)
|
|||
Balance, June 30, 2014
|
|
$4,262
|
|
|
|
$2,075
|
|
|
|
$6,337
|
|
(Dollars in millions)
|
MSRs -
Fair Value |
|
Other
|
|
Total
|
||||||
Balance, January 1, 2015
|
|
$1,206
|
|
|
|
$13
|
|
|
|
$1,219
|
|
Amortization
1
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||
Servicing rights originated
|
117
|
|
|
13
|
|
|
130
|
|
|||
Servicing rights purchased
|
109
|
|
|
—
|
|
|
109
|
|
|||
Changes in fair value:
|
|
|
|
|
|
||||||
Due to changes in inputs and assumptions
2
|
72
|
|
|
—
|
|
|
72
|
|
|||
Other changes in fair value
3
|
(109
|
)
|
|
—
|
|
|
(109
|
)
|
|||
Sale of servicing rights
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Balance, June 30, 2015
|
|
$1,393
|
|
|
|
$23
|
|
|
|
$1,416
|
|
|
|
|
|
|
|
||||||
Balance, January 1, 2014
|
|
$1,300
|
|
|
|
$34
|
|
|
|
$1,334
|
|
Amortization
1
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|||
Servicing rights originated
|
68
|
|
|
—
|
|
|
68
|
|
|||
Servicing rights purchased
|
76
|
|
|
—
|
|
|
76
|
|
|||
Changes in fair value:
|
|
|
|
|
|
|
|||||
Due to changes in inputs and assumptions
2
|
(107
|
)
|
|
—
|
|
|
(107
|
)
|
|||
Other changes in fair value
3
|
(78
|
)
|
|
—
|
|
|
(78
|
)
|
|||
Sale of RidgeWorth
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
|||
Balance, June 30, 2014
|
|
$1,259
|
|
|
|
$18
|
|
|
|
$1,277
|
|
(Dollars in millions)
|
June 30, 2015
|
|
December 31, 2014
|
||||
Fair value of MSRs
|
|
$1,393
|
|
|
|
$1,206
|
|
Prepayment rate assumption (annual)
|
9
|
%
|
|
11
|
%
|
||
Decline in fair value from 10% adverse change
|
|
$50
|
|
|
|
$46
|
|
Decline in fair value from 20% adverse change
|
96
|
|
|
88
|
|
||
Option adjusted spread (annual)
|
9
|
%
|
|
10
|
%
|
||
Decline in fair value from 10% adverse change
|
|
$64
|
|
|
|
$55
|
|
Decline in fair value from 20% adverse change
|
123
|
|
|
105
|
|
||
Weighted-average life (in years)
|
7.1
|
|
|
6.4
|
|
||
Weighted-average coupon
|
4.1
|
%
|
|
4.2
|
%
|
|
Portfolio Balance
1
|
|
Past Due and Nonaccrual
2
|
|
Net Charge-offs
|
||||||||||||||||||||||||||
|
June 30, 2015
|
|
December 31, 2014
|
|
June 30, 2015
|
|
December 31, 2014
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||||||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|||||||||||||||||||||||
Portfolio LHFI by type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Commercial
|
|
$73,301
|
|
|
|
$73,392
|
|
|
|
$178
|
|
|
|
$181
|
|
|
|
$16
|
|
|
|
$26
|
|
|
|
$33
|
|
|
|
$45
|
|
Residential
|
38,736
|
|
|
38,775
|
|
|
728
|
|
|
891
|
|
|
51
|
|
|
67
|
|
|
110
|
|
|
135
|
|
||||||||
Consumer
|
20,501
|
|
|
20,945
|
|
|
485
|
|
|
619
|
|
|
20
|
|
|
20
|
|
|
44
|
|
|
43
|
|
||||||||
Total portfolio LHFI
|
132,538
|
|
|
133,112
|
|
|
1,391
|
|
|
1,691
|
|
|
87
|
|
|
113
|
|
|
187
|
|
|
223
|
|
||||||||
Managed securitized loans by type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Residential
|
113,930
|
|
|
110,591
|
|
|
157
|
|
3
|
183
|
|
3
|
3
|
|
|
3
|
|
|
6
|
|
|
7
|
|
||||||||
Consumer
|
976
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total managed securitized loans
|
114,906
|
|
|
110,591
|
|
|
157
|
|
|
183
|
|
|
3
|
|
|
3
|
|
|
6
|
|
|
7
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total managed loans
|
|
$247,444
|
|
|
|
$243,703
|
|
|
|
$1,548
|
|
|
|
$1,874
|
|
|
|
$90
|
|
|
|
$116
|
|
|
|
$193
|
|
|
|
$230
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars and shares in millions, except per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net income
|
|
$483
|
|
|
|
$399
|
|
|
|
$912
|
|
|
|
$804
|
|
Preferred dividends
|
(15
|
)
|
|
(9
|
)
|
|
(32
|
)
|
|
(19
|
)
|
||||
Dividends and undistributed earnings allocated to unvested shares
|
(1
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(5
|
)
|
||||
Net income available to common shareholders
|
|
$467
|
|
|
|
$387
|
|
|
|
$877
|
|
|
|
$780
|
|
Average basic common shares
|
517
|
|
|
530
|
|
|
519
|
|
|
530
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Stock options
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Restricted stock and warrants
|
4
|
|
|
4
|
|
|
4
|
|
|
4
|
|
||||
Average diluted common shares
|
522
|
|
|
535
|
|
|
525
|
|
|
536
|
|
||||
Net income per average common share - diluted
|
|
$0.89
|
|
|
|
$0.72
|
|
|
|
$1.67
|
|
|
|
$1.45
|
|
Net income per average common share - basic
|
|
$0.90
|
|
|
|
$0.73
|
|
|
|
$1.69
|
|
|
|
$1.47
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Stock options
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$1
|
|
Restricted stock
|
4
|
|
|
6
|
|
|
9
|
|
|
14
|
|
||||
Performance stock units
|
9
|
|
|
4
|
|
|
17
|
|
|
6
|
|
||||
RSUs
|
10
|
|
|
7
|
|
|
28
|
|
|
21
|
|
||||
Total stock-based compensation
|
|
$23
|
|
|
|
$17
|
|
|
|
$54
|
|
|
|
$42
|
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation tax benefit
|
|
$9
|
|
|
|
$6
|
|
|
|
$21
|
|
|
|
$16
|
|
|
Pension Benefits
1
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||||||
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
Service cost
|
|
$1
|
|
|
|
$1
|
|
|
|
$2
|
|
|
|
$2
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
Interest cost
|
29
|
|
|
31
|
|
|
58
|
|
|
62
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
||||||||
Expected return on plan assets
|
(52
|
)
|
|
(50
|
)
|
|
(103
|
)
|
|
(100
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(3
|
)
|
||||||||
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
(3
|
)
|
||||||||
Amortization of actuarial loss
|
6
|
|
|
4
|
|
|
11
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net periodic benefit
|
|
($16
|
)
|
|
|
($14
|
)
|
|
|
($32
|
)
|
|
|
($28
|
)
|
|
|
($2
|
)
|
|
|
($2
|
)
|
|
|
($4
|
)
|
|
|
($4
|
)
|
(Dollars in millions)
|
2015
|
|
2014
|
||||
Beginning pending repurchase requests
|
|
$47
|
|
|
|
$126
|
|
Repurchase requests received
|
44
|
|
|
113
|
|
||
Repurchase requests resolved:
|
|
|
|
||||
Repurchased
|
(11
|
)
|
|
(11
|
)
|
||
Cured
|
(56
|
)
|
|
(176
|
)
|
||
Total resolved
|
(67
|
)
|
|
(187
|
)
|
||
Ending pending repurchase requests
1
|
|
$24
|
|
|
|
$52
|
|
|
|
|
|
||||
Percent from non-agency investors:
|
|
|
|||||
Pending repurchase requests
|
5.0
|
%
|
|
5.3
|
%
|
||
Repurchase requests received
|
0.5
|
%
|
|
0.7
|
%
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Balance, at beginning of period
|
|
$82
|
|
|
|
$83
|
|
|
|
$85
|
|
|
|
$78
|
|
Repurchase (benefit)/provision
|
(6
|
)
|
|
5
|
|
|
(8
|
)
|
|
10
|
|
||||
Charge-offs, net of recoveries
|
(16
|
)
|
|
(11
|
)
|
|
(17
|
)
|
|
(11
|
)
|
||||
Balance, at end of period
|
|
$60
|
|
|
|
$77
|
|
|
|
$60
|
|
|
|
$77
|
|
(Dollars in millions)
|
June 30, 2015
|
|
December 31, 2014
|
||||
Performing repurchased mortgage LHFI
|
|
$265
|
|
|
|
$271
|
|
Nonperforming repurchased mortgage LHFI
|
15
|
|
|
29
|
|
||
Nonperforming repurchased mortgage LHFS
|
13
|
|
|
12
|
|
||
Total carrying value of outstanding repurchased mortgage loans, net of ALLL
|
|
$293
|
|
|
|
$312
|
|
|
June 30, 2015
|
||||||||||||||
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
(Dollars in millions)
|
Notional
Amounts
|
|
Fair
Value
|
|
Notional
Amounts
|
|
Fair
Value
|
||||||||
Derivative instruments designated in cash flow hedging relationships
1
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts hedging floating rate loans
|
|
$17,600
|
|
|
|
$175
|
|
|
|
$850
|
|
|
|
$2
|
|
Derivative instruments designated in fair value hedging relationships
2
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts hedging fixed rate debt
|
2,775
|
|
|
28
|
|
|
600
|
|
|
—
|
|
||||
Interest rate contracts hedging brokered CDs
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
2,805
|
|
|
28
|
|
|
600
|
|
|
—
|
|
||||
Derivative instruments not designated as hedging instruments
3
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts hedging:
|
|
|
|
|
|
|
|
||||||||
MSRs
|
7,133
|
|
|
161
|
|
|
16,340
|
|
|
129
|
|
||||
LHFS, IRLCs
4
|
5,100
|
|
|
33
|
|
|
3,474
|
|
|
8
|
|
||||
Trading activity
5
|
69,746
|
|
|
2,163
|
|
|
68,062
|
|
|
1,975
|
|
||||
Foreign exchange rate contracts hedging trading activity
|
3,308
|
|
|
132
|
|
|
2,707
|
|
|
126
|
|
||||
Credit contracts hedging:
|
|
|
|
|
|
|
|
||||||||
Loans
|
—
|
|
|
—
|
|
|
215
|
|
|
3
|
|
||||
Trading activity
6
|
2,291
|
|
|
17
|
|
|
2,571
|
|
|
18
|
|
||||
Equity contracts hedging trading activity
5
|
23,076
|
|
|
2,438
|
|
|
27,776
|
|
|
2,781
|
|
||||
Other contracts:
|
|
|
|
|
|
|
|
||||||||
IRLCs and other
7
|
2,706
|
|
|
24
|
|
|
759
|
|
|
10
|
|
||||
Commodities
|
466
|
|
|
68
|
|
|
462
|
|
|
67
|
|
||||
Total
|
113,826
|
|
|
5,036
|
|
|
122,366
|
|
|
5,117
|
|
||||
Total derivative instruments
|
|
$134,231
|
|
|
|
$5,239
|
|
|
|
$123,816
|
|
|
|
$5,119
|
|
|
|
|
|
|
|
|
|
||||||||
Total gross derivative instruments, before netting
|
|
|
|
$5,239
|
|
|
|
|
|
$5,119
|
|
||||
Less: Legally enforceable master netting agreements
|
|
|
(3,620
|
)
|
|
|
|
(3,620
|
)
|
||||||
Less: Cash collateral received/paid
|
|
|
(411
|
)
|
|
|
|
(1,099
|
)
|
||||||
Total derivative instruments, after netting
|
|
|
|
$1,208
|
|
|
|
|
|
$400
|
|
|
December 31, 2014
|
||||||||||||||
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
(Dollars in millions)
|
Notional
Amounts
|
|
Fair
Value
|
|
Notional
Amounts
|
|
Fair
Value
|
||||||||
Derivative instruments designated in cash flow hedging relationships
1
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts hedging floating rate loans
|
|
$18,150
|
|
|
|
$208
|
|
|
|
$2,850
|
|
|
|
$8
|
|
Derivative instruments designated in fair value hedging relationships
2
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts hedging fixed rate debt
|
2,700
|
|
|
30
|
|
|
2,600
|
|
|
1
|
|
||||
Interest rate contracts hedging brokered CDs
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
2,730
|
|
|
30
|
|
|
2,600
|
|
|
1
|
|
||||
Derivative instruments not designated as hedging instruments
3
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts hedging:
|
|
|
|
|
|
|
|
||||||||
MSRs
|
5,172
|
|
|
163
|
|
|
8,807
|
|
|
30
|
|
||||
LHFS, IRLCs
4
|
1,840
|
|
|
4
|
|
|
4,923
|
|
|
23
|
|
||||
Trading activity
5
|
61,049
|
|
|
2,405
|
|
|
61,065
|
|
|
2,225
|
|
||||
Foreign exchange rate contracts hedging trading activity
|
2,429
|
|
|
104
|
|
|
2,414
|
|
|
100
|
|
||||
Credit contracts hedging:
|
|
|
|
|
|
|
|
||||||||
Loans
|
—
|
|
|
—
|
|
|
392
|
|
|
5
|
|
||||
Trading activity
6
|
2,282
|
|
|
20
|
|
|
2,452
|
|
|
20
|
|
||||
Equity contracts hedging trading activity
5
|
21,875
|
|
|
2,809
|
|
|
28,128
|
|
|
3,090
|
|
||||
Other contracts:
|
|
|
|
|
|
|
|
||||||||
IRLCs and other
7
|
2,231
|
|
|
25
|
|
|
139
|
|
|
5
|
|
||||
Commodities
|
381
|
|
|
71
|
|
|
374
|
|
|
70
|
|
||||
Total
|
97,259
|
|
|
5,601
|
|
|
108,694
|
|
|
5,568
|
|
||||
Total derivative instruments
|
|
$118,139
|
|
|
|
$5,839
|
|
|
|
$114,144
|
|
|
|
$5,577
|
|
|
|
|
|
|
|
|
|
||||||||
Total gross derivative instruments, before netting
|
|
|
|
$5,839
|
|
|
|
|
|
$5,577
|
|
||||
Less: Legally enforceable master netting agreements
|
|
|
(4,083
|
)
|
|
|
|
(4,083
|
)
|
||||||
Less: Cash collateral received/paid
|
|
|
(449
|
)
|
|
|
|
(1,032
|
)
|
||||||
Total derivative instruments, after netting
|
|
|
|
$1,307
|
|
|
|
|
|
$462
|
|
|
Three Months Ended June 30, 2015
|
|
Six Months Ended June 30, 2015
|
|
|
||||||||||||
(Dollars in millions)
|
Amount of
Pre-tax Gain
Recognized
in OCI on Derivatives
(Effective Portion) |
|
Amount of
Pre-tax Gain
Reclassified from AOCI
into Income
(Effective Portion) |
|
Amount of
Pre-tax Gain
Recognized
in OCI on Derivatives
(Effective Portion) |
|
Amount of
Pre-tax Gain
Reclassified from AOCI
into Income
(Effective Portion) |
|
Classification of Pre-tax Gain
Reclassified
from AOCI
into Income
(Effective Portion) |
||||||||
Derivative instruments in cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate contracts hedging floating rate loans
1
|
|
$9
|
|
|
|
$44
|
|
|
|
$134
|
|
|
|
$79
|
|
|
Interest and fees on loans
|
|
Three Months Ended June 30, 2015
|
|
Six Months Ended June 30, 2015
|
||||||||||||||||||||
(Dollars in millions)
|
Amount of Loss on Derivatives
Recognized in Income |
|
Amount of Gain on Related
Hedged Items
Recognized in Income |
|
Amount of Loss Recognized in Income on Hedges
(Ineffective Portion) |
|
Amount of
Gain on Derivatives
Recognized in Income |
|
Amount of Loss on
Related Hedged Items
Recognized in Income |
|
Amount of Gain/(Loss)
Recognized in Income
on Hedges
(Ineffective Portion) |
||||||||||||
Derivative instruments in fair value hedging relationships:
|
|
|
|
|
|
|
|||||||||||||||||
Interest rate contracts hedging fixed rate debt
1
|
|
($8
|
)
|
|
|
$7
|
|
|
|
($1
|
)
|
|
|
$7
|
|
|
|
($7
|
)
|
|
|
$—
|
|
Interest rate contracts hedging brokered CDs
1
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
($8
|
)
|
|
|
$7
|
|
|
|
($1
|
)
|
|
|
$7
|
|
|
|
($7
|
)
|
|
|
$—
|
|
(Dollars in millions)
|
Classification of (Loss)/Gain Recognized
in Income on Derivatives
|
|
Amount of (Loss)/Gain Recognized in Income on Derivatives
During the Three Months Ended
June 30, 2015
|
|
Amount of (Loss)/Gain Recognized in Income on Derivatives
During the Six Months Ended
June 30, 2015
|
||||
Derivative instruments not designated as hedging instruments:
|
|
|
|
|
|||||
Interest rate contracts hedging:
|
|
|
|
|
|
||||
MSRs
|
Mortgage servicing related income
|
|
|
($163
|
)
|
|
|
($74
|
)
|
LHFS, IRLCs
|
Mortgage production related income
|
|
52
|
|
|
9
|
|
||
Trading activity
|
Trading income
|
|
25
|
|
|
40
|
|
||
Foreign exchange rate contracts hedging trading activity
|
Trading income
|
|
(20
|
)
|
|
36
|
|
||
Credit contracts hedging:
|
|
|
|
|
|
||||
Loans
|
Other noninterest income
|
|
—
|
|
|
(1
|
)
|
||
Trading activity
|
Trading income
|
|
7
|
|
|
13
|
|
||
Equity contracts hedging trading activity
|
Trading income
|
|
—
|
|
|
3
|
|
||
Other contracts hedging:
|
|
|
|
|
|
||||
IRLCs
|
Mortgage production related income
|
|
12
|
|
|
93
|
|
||
Commodities
|
Trading income
|
|
1
|
|
|
1
|
|
||
Total
|
|
|
|
($86
|
)
|
|
|
$120
|
|
|
Three Months Ended June 30, 2014
|
|
Six Months Ended June 30, 2014
|
|
|
||||||||||||
(Dollars in millions)
|
Amount of
Pre-tax Gain Recognized in OCI on Derivatives (Effective Portion) |
|
Amount of
Pre-tax Gain Reclassified from AOCI into Income
(Effective Portion)
|
|
Amount of
Pre-tax Gain Recognized in OCI on Derivatives (Effective Portion) |
|
Amount of
Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) |
|
Classification of Pre-tax Gain
Reclassified from AOCI into Income (Effective Portion) |
||||||||
Derivative instruments in cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate contracts hedging floating rate loans
1
|
|
$44
|
|
|
|
$74
|
|
|
|
$67
|
|
|
|
$149
|
|
|
Interest and fees on loans
|
(Dollars in millions)
|
Classification of Gain/(Loss) Recognized
in Income on Derivatives
|
|
Amount of Gain/(Loss)
Recognized in Income
on Derivatives
During the Three Months Ended June 30, 2014 |
|
Amount of Gain/(Loss)
Recognized in Income
on Derivatives
During the Six
Months Ended
June 30, 2014
|
||||
Derivative instruments not designated as hedging instruments:
|
|
|
|
|
|||||
Interest rate contracts hedging:
|
|
|
|
|
|
||||
MSRs
|
Mortgage servicing related income
|
|
|
$66
|
|
|
|
$120
|
|
LHFS, IRLCs
|
Mortgage production related income
|
|
(61
|
)
|
|
(95
|
)
|
||
Trading activity
|
Trading income
|
|
11
|
|
|
25
|
|
||
Foreign exchange rate contracts hedging trading activity
|
Trading income
|
|
(7
|
)
|
|
(1
|
)
|
||
Credit contracts hedging:
|
|
|
|
|
|
||||
Loans
|
Other noninterest income
|
|
—
|
|
|
(1
|
)
|
||
Trading activity
|
Trading income
|
|
4
|
|
|
9
|
|
||
Equity contracts hedging trading activity
|
Trading income
|
|
2
|
|
|
3
|
|
||
Other contracts - IRLCs
|
Mortgage production related income
|
|
78
|
|
|
138
|
|
||
Total
|
|
|
|
$93
|
|
|
|
$198
|
|
(Dollars in millions)
|
Gross
Amount
|
|
Amount
Offset
|
|
Net Amount
Presented in
Consolidated
Balance Sheets
|
|
Held/Pledged
Financial
Instruments
|
|
Net
Amount
|
||||||||||
June 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$4,668
|
|
|
|
$3,669
|
|
|
|
$999
|
|
|
|
$61
|
|
|
|
$938
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
24
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|||||
Exchange traded derivatives
|
547
|
|
|
362
|
|
|
185
|
|
|
—
|
|
|
185
|
|
|||||
Total derivative instrument assets
|
|
$5,239
|
|
|
|
$4,031
|
|
|
|
$1,208
|
|
1
|
|
$61
|
|
|
|
$1,147
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$4,642
|
|
|
|
$4,357
|
|
|
|
$285
|
|
|
|
$28
|
|
|
|
$257
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
115
|
|
|
—
|
|
|
115
|
|
|
—
|
|
|
115
|
|
|||||
Exchange traded derivatives
|
362
|
|
|
362
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total derivative instrument liabilities
|
|
$5,119
|
|
|
|
$4,719
|
|
|
|
$400
|
|
2
|
|
$28
|
|
|
|
$372
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$5,127
|
|
|
|
$4,095
|
|
|
|
$1,032
|
|
|
|
$63
|
|
|
|
$969
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
25
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
|||||
Exchange traded derivatives
|
687
|
|
|
437
|
|
|
250
|
|
|
—
|
|
|
250
|
|
|||||
Total derivative instrument assets
|
|
$5,839
|
|
|
|
$4,532
|
|
|
|
$1,307
|
|
1
|
|
$63
|
|
|
|
$1,244
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$5,001
|
|
|
|
$4,678
|
|
|
|
$323
|
|
|
|
$12
|
|
|
|
$311
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
133
|
|
|
—
|
|
|
133
|
|
|
—
|
|
|
133
|
|
|||||
Exchange traded derivatives
|
443
|
|
|
437
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||
Total derivative instrument liabilities
|
|
$5,577
|
|
|
|
$5,115
|
|
|
|
$462
|
|
2
|
|
$12
|
|
|
|
$450
|
|
•
|
MSR
s
. The
Company
hedges these instruments with a combination of mortgage and interest rate derivatives,
|
•
|
IRLC
s and mortgage
LHFS
. The
Company
hedges these instruments using forward contracts, futures, and option contracts.
|
•
|
Level 1: Quoted prices for identical instruments in active markets.
|
•
|
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.
|
•
|
Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
|
|
June 30, 2015
|
||||||||||||||||||
|
Fair Value Measurements
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
Adjustments
1
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading assets and derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
|
$556
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$556
|
|
Federal agency securities
|
—
|
|
|
560
|
|
|
—
|
|
|
—
|
|
|
560
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|||||
MBS - agency
|
—
|
|
|
612
|
|
|
—
|
|
|
—
|
|
|
612
|
|
|||||
CLO securities
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
577
|
|
|
—
|
|
|
—
|
|
|
577
|
|
|||||
CP
|
—
|
|
|
165
|
|
|
—
|
|
|
—
|
|
|
165
|
|
|||||
Equity securities
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|||||
Derivative instruments
|
548
|
|
|
4,667
|
|
|
24
|
|
|
(4,031
|
)
|
|
1,208
|
|
|||||
Trading loans
|
—
|
|
|
2,668
|
|
|
—
|
|
|
—
|
|
|
2,668
|
|
|||||
Total trading assets and derivative instruments
|
1,162
|
|
|
9,283
|
|
|
24
|
|
|
(4,031
|
)
|
|
6,438
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
2,913
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,913
|
|
|||||
Federal agency securities
|
—
|
|
|
477
|
|
|
—
|
|
|
—
|
|
|
477
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
179
|
|
|
5
|
|
|
—
|
|
|
184
|
|
|||||
MBS - agency
|
—
|
|
|
22,733
|
|
|
—
|
|
|
—
|
|
|
22,733
|
|
|||||
MBS - private
|
—
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
112
|
|
|||||
ABS
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
34
|
|
|
3
|
|
|
—
|
|
|
37
|
|
|||||
Other equity securities
2
|
58
|
|
|
—
|
|
|
582
|
|
|
—
|
|
|
640
|
|
|||||
Total securities AFS
|
2,971
|
|
|
23,423
|
|
|
719
|
|
|
—
|
|
|
27,113
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential LHFS
|
—
|
|
|
1,864
|
|
|
2
|
|
|
—
|
|
|
1,866
|
|
|||||
LHFI
|
—
|
|
|
—
|
|
|
263
|
|
|
—
|
|
|
263
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
1,393
|
|
|
—
|
|
|
1,393
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading liabilities and derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
613
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
613
|
|
|||||
MBS - agency
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
294
|
|
|
—
|
|
|
—
|
|
|
294
|
|
|||||
Derivative instruments
|
362
|
|
|
4,747
|
|
|
10
|
|
|
(4,719
|
)
|
|
400
|
|
|||||
Total trading liabilities and derivative instruments
|
975
|
|
|
5,042
|
|
|
10
|
|
|
(4,719
|
)
|
|
1,308
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
—
|
|
|
1,263
|
|
|
—
|
|
|
—
|
|
|
1,263
|
|
|||||
Other liabilities
3
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
|
December 31, 2014
|
||||||||||||||||||
|
Fair Value Measurements
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
Adjustments
1
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading assets and derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
|
$267
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$267
|
|
Federal agency securities
|
—
|
|
|
547
|
|
|
—
|
|
|
—
|
|
|
547
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
MBS - agency
|
—
|
|
|
545
|
|
|
—
|
|
|
—
|
|
|
545
|
|
|||||
CLO securities
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
509
|
|
|
—
|
|
|
—
|
|
|
509
|
|
|||||
CP
|
—
|
|
|
327
|
|
|
—
|
|
|
—
|
|
|
327
|
|
|||||
Equity securities
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|||||
Derivative instruments
|
688
|
|
|
5,126
|
|
|
25
|
|
|
(4,532
|
)
|
|
1,307
|
|
|||||
Trading loans
|
—
|
|
|
2,610
|
|
|
—
|
|
|
—
|
|
|
2,610
|
|
|||||
Total trading assets and derivative instruments
|
1,000
|
|
|
9,709
|
|
|
25
|
|
|
(4,532
|
)
|
|
6,202
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
1,921
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,921
|
|
|||||
Federal agency securities
|
—
|
|
|
484
|
|
|
—
|
|
|
—
|
|
|
484
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
197
|
|
|
12
|
|
|
—
|
|
|
209
|
|
|||||
MBS - agency
|
—
|
|
|
23,048
|
|
|
—
|
|
|
—
|
|
|
23,048
|
|
|||||
MBS - private
|
—
|
|
|
—
|
|
|
123
|
|
|
—
|
|
|
123
|
|
|||||
ABS
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
36
|
|
|
5
|
|
|
—
|
|
|
41
|
|
|||||
Other equity securities
2
|
138
|
|
|
—
|
|
|
785
|
|
|
—
|
|
|
923
|
|
|||||
Total securities AFS
|
2,059
|
|
|
23,765
|
|
|
946
|
|
|
—
|
|
|
26,770
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential LHFS
|
—
|
|
|
1,891
|
|
|
1
|
|
|
—
|
|
|
1,892
|
|
|||||
LHFI
|
—
|
|
|
—
|
|
|
272
|
|
|
—
|
|
|
272
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
1,206
|
|
|
—
|
|
|
1,206
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading liabilities and derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
485
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
485
|
|
|||||
MBS - agency
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
279
|
|
|
—
|
|
|
—
|
|
|
279
|
|
|||||
Derivative instruments
|
444
|
|
|
5,128
|
|
|
5
|
|
|
(5,115
|
)
|
|
462
|
|
|||||
Total trading liabilities and derivative instruments
|
929
|
|
|
5,408
|
|
|
5
|
|
|
(5,115
|
)
|
|
1,227
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
—
|
|
|
1,283
|
|
|
—
|
|
|
—
|
|
|
1,283
|
|
|||||
Other liabilities
3
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
(Dollars in millions)
|
Aggregate Fair Value at June 30, 2015
|
|
Aggregate UPB under FVO at June 30, 2015
|
|
Fair Value
Over/(Under)
Unpaid Principal
|
||||||
Assets:
|
|
|
|
|
|
||||||
Trading loans
|
|
$2,668
|
|
|
|
$2,610
|
|
|
|
$58
|
|
LHFS
|
1,865
|
|
|
1,830
|
|
|
35
|
|
|||
Nonaccrual
|
1
|
|
|
2
|
|
|
(1
|
)
|
|||
LHFI
|
261
|
|
|
274
|
|
|
(13
|
)
|
|||
Nonaccrual
|
2
|
|
|
3
|
|
|
(1
|
)
|
|||
Liabilities:
|
|
|
|
|
|
||||||
Long-term debt
|
1,263
|
|
|
1,176
|
|
|
87
|
|
|||
|
|
|
|
|
|
||||||
(Dollars in millions)
|
Aggregate Fair Value at December 31, 2014
|
|
Aggregate UPB under FVO at December 31, 2014
|
|
Fair Value
Over/(Under)
Unpaid Principal
|
||||||
Assets:
|
|
|
|
|
|
||||||
Trading loans
|
|
$2,610
|
|
|
|
$2,589
|
|
|
|
$21
|
|
LHFS
|
1,891
|
|
|
1,817
|
|
|
74
|
|
|||
Nonaccrual
|
1
|
|
|
1
|
|
|
—
|
|
|||
LHFI
|
269
|
|
|
281
|
|
|
(12
|
)
|
|||
Nonaccrual
|
3
|
|
|
5
|
|
|
(2
|
)
|
|||
Liabilities:
|
|
|
|
|
|
||||||
Long-term debt
|
1,283
|
|
|
1,176
|
|
|
107
|
|
|
Fair Value (Loss)/Gain for the Three Months Ended
June 30, 2015 for Items Measured at Fair Value
Pursuant to Election of the FVO
|
|
Fair Value Gain/(Loss) for the Six Months Ended
June 30, 2015 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
|
|
($2
|
)
|
|
|
$—
|
|
|
|
$—
|
|
|
|
($2
|
)
|
|
|
$2
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$2
|
|
LHFS
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
||||||||
LHFI
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||
MSRs
|
—
|
|
|
—
|
|
|
89
|
|
|
89
|
|
|
—
|
|
|
1
|
|
|
(37
|
)
|
|
(36
|
)
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Long-term debt
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
Fair Value Gain/(Loss) for the Three Months Ended
June 30, 2014 for Items Measured at Fair Value
Pursuant to Election of the FVO
|
|
Fair Value Gain/(Loss) for the Six Months Ended
June 30, 2014 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
|
|
$3
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$3
|
|
|
|
$9
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$9
|
|
LHFS
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||||||
LHFI
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||||||
MSRs
|
—
|
|
|
2
|
|
|
(104
|
)
|
|
(102
|
)
|
|
—
|
|
|
2
|
|
|
(185
|
)
|
|
(183
|
)
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Brokered time deposits
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||||
Long-term debt
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
Level 3 Significant Unobservable Input Assumptions
|
||||||||
(Dollars in millions)
|
Fair value
June 30, 2015 |
|
Valuation Technique
|
|
Unobservable Input
1
|
|
Range
(weighted average)
|
||
Assets
|
|
|
|
|
|
|
|
||
Trading assets and derivative instruments:
|
|
|
|
|
|
|
|
||
Derivative instruments, net
2
|
|
$14
|
|
|
Internal model
|
|
Pull through rate
|
|
40-100% (76%)
|
|
MSR value
|
|
34-220 bps (119 bps)
|
||||||
Securities AFS:
|
|
|
|
|
|
|
|
||
U.S. states and political subdivisions
|
5
|
|
|
Cost
|
|
N/A
|
|
|
|
MBS - private
|
112
|
|
|
Third party pricing
|
|
N/A
|
|
|
|
ABS
|
17
|
|
|
Third party pricing
|
|
N/A
|
|
|
|
Corporate and other debt securities
|
3
|
|
|
Cost
|
|
N/A
|
|
|
|
Other equity securities
|
582
|
|
|
Cost
|
|
N/A
|
|
|
|
Residential LHFS
|
2
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
143-162 bps (151 bps)
|
|
Conditional prepayment rate
|
2-25 CPR (14 CPR)
|
||||||||
Conditional default rate
|
0-2 CDR (0.50 CDR)
|
||||||||
LHFI
|
261
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
0-450 bps (275 bps)
|
|
Conditional prepayment rate
|
5-35 CPR (12 CPR)
|
||||||||
Conditional default rate
|
0-5 CDR (1.75 CDR)
|
||||||||
2
|
|
Collateral based pricing
|
Appraised value
|
NM
4
|
|||||
MSRs
|
1,393
|
|
|
Monte Carlo/Discounted cash flow
|
|
Conditional prepayment rate
|
|
1-21 CPR (9 CPR)
|
|
|
Option adjusted spread
|
|
(4)-105% (9%)
|
||||||
Liabilities
|
|
|
|
|
|
|
|
||
Other liabilities
3
|
23
|
|
|
Internal model
|
|
Loan production volume
|
|
0-150% (150%)
|
|
Level 3 Significant Unobservable Input Assumptions
|
||||||||
(Dollars in millions)
|
Fair value December 31, 2014
|
|
Valuation Technique
|
|
Unobservable Input
1
|
|
Range
(weighted average)
|
||
Assets
|
|
|
|
|
|
|
|
||
Trading assets and derivative instruments:
|
|
|
|
|
|
|
|
||
Derivative instruments, net
2
|
|
$20
|
|
|
Internal model
|
|
Pull through rate
|
|
40-100% (75%)
|
|
MSR value
|
|
39-218 bps (107 bps)
|
||||||
Securities AFS:
|
|
|
|
|
|
|
|
||
U.S. states and political subdivisions
|
12
|
|
|
Cost
|
|
N/A
|
|
|
|
MBS - private
|
123
|
|
|
Third party pricing
|
|
N/A
|
|
|
|
ABS
|
21
|
|
|
Third party pricing
|
|
N/A
|
|
|
|
Corporate and other debt securities
|
5
|
|
|
Cost
|
|
N/A
|
|
|
|
Other equity securities
|
785
|
|
|
Cost
|
|
N/A
|
|
|
|
Residential LHFS
|
1
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
145-225 bps (157 bps)
|
|
|
Conditional prepayment rate
|
|
1-30 CPR (15 CPR)
|
||||||
|
Conditional default rate
|
|
0-3 CDR (0.75 CDR)
|
||||||
LHFI
|
269
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
0-450 bps (286 bps)
|
|
|
Conditional prepayment rate
|
|
4-30 CPR (13.75 CPR)
|
||||||
|
Conditional default rate
|
|
0-7 CDR (1.75 CDR)
|
||||||
3
|
|
|
Collateral based pricing
|
|
Appraised value
|
|
NM
4
|
||
MSRs
|
1,206
|
|
|
Monte Carlo/Discounted cash flow
|
|
Conditional prepayment rate
|
|
2-47 CPR (11 CPR)
|
|
|
Option adjusted spread
|
|
(1)-122% (10%)
|
||||||
Liabilities
|
|
|
|
|
|
|
|
||
Other liabilities
3
|
27
|
|
|
Internal model
|
|
Loan production volume
|
|
0-150% (107%)
|
|
Fair Value Measurements
Using Significant Unobservable Inputs
|
|
||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Beginning
balance April 1, 2015 |
|
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, 2015
|
|
Included in earnings (held at June 30, 2015)
1
|
|
||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Derivative instruments, net
|
|
$37
|
|
|
|
$12
|
|
2
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$1
|
|
|
|
($36
|
)
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$14
|
|
|
|
$—
|
|
|
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
U.S. states and political subdivisions
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
MBS - private
|
119
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
|||||||||||
ABS
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
|||||||||||
Corporate and other debt securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
|||||||||||
Other equity securities
|
616
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
(117
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
582
|
|
|
—
|
|
|
|||||||||||
Total securities AFS
|
767
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
(131
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
719
|
|
|
—
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential LHFS
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(1
|
)
|
|
5
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
|||||||||||
LHFI
|
268
|
|
|
(3
|
)
|
3
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(1
|
)
|
|
14
|
|
|
—
|
|
|
263
|
|
|
(4
|
)
|
3
|
|||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other liabilities
|
21
|
|
|
2
|
|
4
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
2
|
|
4
|
|
Fair Value Measurements
Using Significant Unobservable Inputs
|
|
||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Beginning
balance January 1, 2015 |
|
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, 2015
|
|
Included in earnings (held at June 30, 2015)
1
|
|
||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Derivative instruments, net
|
|
$20
|
|
|
|
$89
|
|
2
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$1
|
|
|
|
($96
|
)
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$14
|
|
|
|
($4
|
)
|
2
|
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
U.S. states and political subdivisions
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
MBS - private
|
123
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
|||||||||||
ABS
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
|||||||||||
Corporate and other debt securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
|||||||||||
Other equity securities
|
785
|
|
|
—
|
|
|
—
|
|
|
104
|
|
|
—
|
|
|
(307
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
582
|
|
|
—
|
|
|
|||||||||||
Total securities AFS
|
946
|
|
|
—
|
|
|
1
|
|
5
|
104
|
|
|
—
|
|
|
(332
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
719
|
|
|
—
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential LHFS
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(1
|
)
|
|
11
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
|||||||||||
LHFI
|
272
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
(1
|
)
|
|
16
|
|
|
—
|
|
|
263
|
|
|
(2
|
)
|
3
|
|||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other liabilities
|
27
|
|
|
6
|
|
4
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
6
|
|
4
|
|
Fair Value Measurements
Using Significant Unobservable Inputs
|
|
||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Beginning
balance April 1, 2014 |
|
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, 2014
|
|
Included in earnings (held at June 30, 2014)
1
|
|
||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Derivative instruments, net
|
|
$11
|
|
|
|
$72
|
|
2
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
($2
|
)
|
|
|
($60
|
)
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$21
|
|
|
|
($6
|
)
|
2
|
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
U.S. states and political subdivisions
|
13
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
|||||||||||
MBS - private
|
149
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140
|
|
|
—
|
|
|
|||||||||||
ABS
|
21
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
|||||||||||
Corporate and other debt securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
Other equity securities
|
712
|
|
|
—
|
|
|
—
|
|
|
135
|
|
|
—
|
|
|
(68
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
779
|
|
|
—
|
|
|
|||||||||||
Total securities AFS
|
900
|
|
|
—
|
|
|
2
|
|
5
|
135
|
|
|
—
|
|
|
(79
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
958
|
|
|
—
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential LHFS
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
6
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
|||||||||||
LHFI
|
299
|
|
|
4
|
|
6
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
292
|
|
|
2
|
|
6
|
|||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other liabilities
|
26
|
|
|
1
|
|
7
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
1
|
|
7
|
|
Fair Value Measurements
Using Significant Unobservable Inputs
|
|
||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Beginning
balance January 1, 2014 |
|
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, 2014
|
|
Included in earnings (held at June 30, 2014)
1
|
|
||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
CDO/CLO securities
|
|
$54
|
|
|
|
$11
|
|
3
|
|
$—
|
|
|
|
$—
|
|
|
|
($65
|
)
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
ABS
|
6
|
|
|
1
|
|
3
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||||||||
Derivative instruments, net
|
8
|
|
|
133
|
|
2
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(121
|
)
|
|
—
|
|
|
—
|
|
|
21
|
|
|
(6
|
)
|
2
|
|||||||||||
Total trading assets
|
68
|
|
|
145
|
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
|
1
|
|
|
(121
|
)
|
|
—
|
|
|
—
|
|
|
21
|
|
|
(6
|
)
|
|
|||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
U.S. states and political subdivisions
|
34
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
|||||||||||
MBS - private
|
154
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140
|
|
|
—
|
|
|
|||||||||||
ABS
|
21
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
|||||||||||
Corporate and other debt securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
Other equity securities
|
739
|
|
|
—
|
|
|
—
|
|
|
135
|
|
|
—
|
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
779
|
|
|
—
|
|
|
|||||||||||
Total securities AFS
|
953
|
|
|
(2
|
)
|
4
|
6
|
|
5
|
135
|
|
|
(20
|
)
|
|
(114
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
958
|
|
|
—
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential LHFS
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(6
|
)
|
|
11
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
|||||||||||
LHFI
|
302
|
|
|
8
|
|
6
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
5
|
|
|
—
|
|
|
—
|
|
|
292
|
|
|
5
|
|
6
|
|||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other liabilities
|
29
|
|
|
1
|
|
7
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
27
|
|
|
1
|
|
7
|
|
|
|
Fair Value Measurements
|
|
Losses for the Three Months Ended June 30, 2015
|
|
Losses for the Six Months Ended June 30, 2015
|
||||||||||||||||
(Dollars in millions)
|
June 30, 2015
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
||||||||||||||
LHFS
|
|
$97
|
|
|
|
$—
|
|
|
|
$97
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
LHFI
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
||||||
OREO
|
13
|
|
|
—
|
|
|
1
|
|
|
12
|
|
|
(2
|
)
|
|
(3
|
)
|
||||||
Other assets
|
47
|
|
|
—
|
|
|
41
|
|
|
6
|
|
|
(7
|
)
|
|
(7
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Fair Value Measurements
|
|
Losses for the
Year Ended December 31, 2014 |
|
|
||||||||||||||||
(Dollars in millions)
|
December 31, 2014
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
|
|||||||||||||
LHFS
|
|
$1,108
|
|
|
|
$121
|
|
|
|
$45
|
|
|
|
$942
|
|
|
|
($6
|
)
|
|
|
||
LHFI
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
|
|||||||
OREO
|
29
|
|
|
—
|
|
|
1
|
|
|
28
|
|
|
(6
|
)
|
|
|
|||||||
Affordable housing
|
77
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
(21
|
)
|
|
|
|||||||
Other assets
|
225
|
|
|
—
|
|
|
216
|
|
|
9
|
|
|
(64
|
)
|
|
|
|
June 30, 2015
|
|
Fair Value Measurements
|
|
||||||||||||||||
(Dollars in millions)
|
Measured
Amount
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$7,288
|
|
|
|
$7,288
|
|
|
|
$7,288
|
|
|
|
$—
|
|
|
|
$—
|
|
(a)
|
Trading assets and derivative instruments
|
6,438
|
|
|
6,438
|
|
|
1,162
|
|
|
5,252
|
|
|
24
|
|
(b)
|
|||||
Securities AFS
|
27,113
|
|
|
27,113
|
|
|
2,971
|
|
|
23,423
|
|
|
719
|
|
(b)
|
|||||
LHFS
|
2,457
|
|
|
2,460
|
|
|
—
|
|
|
2,458
|
|
|
2
|
|
(c)
|
|||||
LHFI, net
|
130,704
|
|
|
126,690
|
|
|
—
|
|
|
436
|
|
|
126,254
|
|
(d)
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
144,937
|
|
|
144,896
|
|
|
—
|
|
|
144,896
|
|
|
—
|
|
(e)
|
|||||
Short-term borrowings
|
6,117
|
|
|
6,117
|
|
|
—
|
|
|
6,117
|
|
|
—
|
|
(f)
|
|||||
Long-term debt
|
10,109
|
|
|
10,103
|
|
|
—
|
|
|
9,576
|
|
|
527
|
|
(f)
|
|||||
Trading liabilities and derivative instruments
|
1,308
|
|
|
1,308
|
|
|
975
|
|
|
323
|
|
|
10
|
|
(b)
|
|
December 31, 2014
|
|
Fair Value Measurements
|
|
||||||||||||||||
(Dollars in millions)
|
Measured
Amount
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$8,229
|
|
|
|
$8,229
|
|
|
|
$8,229
|
|
|
|
$—
|
|
|
|
$—
|
|
(a)
|
Trading assets and derivative instruments
|
6,202
|
|
|
6,202
|
|
|
1,000
|
|
|
5,177
|
|
|
25
|
|
(b)
|
|||||
Securities AFS
|
26,770
|
|
|
26,770
|
|
|
2,059
|
|
|
23,765
|
|
|
946
|
|
(b)
|
|||||
LHFS
|
3,232
|
|
|
3,240
|
|
|
—
|
|
|
2,063
|
|
|
1,177
|
|
(c)
|
|||||
LHFI, net
|
131,175
|
|
|
126,855
|
|
|
—
|
|
|
545
|
|
|
126,310
|
|
(d)
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
140,567
|
|
|
140,562
|
|
|
—
|
|
|
140,562
|
|
|
—
|
|
(e)
|
|||||
Short-term borrowings
|
9,186
|
|
|
9,186
|
|
|
—
|
|
|
9,186
|
|
|
—
|
|
(f)
|
|||||
Long-term debt
|
13,022
|
|
|
13,056
|
|
|
—
|
|
|
12,398
|
|
|
658
|
|
(f)
|
|||||
Trading liabilities and derivative instruments
|
1,227
|
|
|
1,227
|
|
|
929
|
|
|
293
|
|
|
5
|
|
(b)
|
(a)
|
Cash and cash equivalents are valued at their carrying amounts, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments.
|
(b)
|
Trading assets and derivative instruments, securities
AFS
, and trading liabilities and derivative instruments 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, quoted market prices of similar instruments. Refer to the
LHFS
section within this footnote for further discussion. When 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 the loan portfolio when loan sales and trading markets are illiquid or nonexistent requires significant judgment.
|
(e)
|
Deposit liabilities with no defined maturity such as
DDA
s,
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
CD
s are estimated using a discounted cash flow approach 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 short-term borrowings and certain long-term debt are based on quoted market prices for similar instruments or estimated discounted cash flows utilizing the
Company
’s current incremental borrowing rate for similar types of instruments. For long-term debt that the
Company
measures at fair value, refer to the respective valuation section within this footnote. For level 3 debt, the terms are unique in nature or there are otherwise no similar instruments that can be used to value the instrument without using significant unobservable assumptions. In this situation, the
Company
reviews current borrowing rates along with the collateral levels that secure the debt in determining an appropriate fair value adjustment.
|
•
|
Consumer Banking provides services to consumers and branch-managed small business clients through an extensive network of traditional and in-store branches,
ATM
s, the internet (
www.suntrust.com
), mobile banking, and telephone (1-800-SUNTRUST). Financial products and services offered to consumers and small business clients include deposits, home equity lines and loans, credit lines, indirect auto, student lending, bank card, other lending products, and various fee-based services. Consumer Banking also serves as an entry point for clients and provides services for other lines of business.
|
•
|
PWM
provides a full array of wealth management products and professional services to both individual and institutional clients including loans, deposits, brokerage, professional investment management, and trust services to clients seeking active management of their financial resources. Institutional clients are served by the Institutional Investment Solutions business. Discount/online and full-service brokerage products are offered to individual clients through
STIS
.
PWM
also includes
GenSpring
, which 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
|
•
|
CIB
delivers comprehensive capital markets solutions, including advisory, capital raising, and financial risk management, with the goal of serving the needs of both public and private companies in the Wholesale Banking segment and
PWM
business. Investment Banking and Corporate Banking teams within
CIB
serve clients across the nation, offering a full suite of traditional banking and investment banking products and services to companies with annual revenues typically greater than $150 million. Investment Banking serves select industry segments including consumer and retail, energy, financial services, healthcare, industrials, media and communications, real estate, and technology. Corporate Banking serves clients across diversified industry sectors based on size, complexity, and frequency of capital markets issuance. Also managed within
CIB
is the Equipment Finance Group, which provides lease financing solutions (through SunTrust Equipment Finance & Leasing).
|
•
|
Commercial & Business Banking offers an array of traditional banking products, including cash management services and investment banking solutions via
STRH
to commercial clients (generally those with average revenues $1 million to $150 million), not-for-profit organizations, and governmental entities, as well as auto dealer financing (floor plan inventory financing). Also managed within Commercial & Business Banking is the Premium Assignment Corporation, which creates corporate insurance premium financing solutions.
|
•
|
Commercial Real Estate provides a full range of financial solutions for commercial real estate developers, owners, and investors, including construction, mini-perm, and permanent real estate financing as well as tailored financing
|
•
|
Treasury & Payment Solutions provides all
SunTrust
business clients with services required to manage their payments and receipts, combined with the ability to manage and optimize their deposits across all aspects of their business. Treasury & Payment Solutions operates all electronic and paper payment types, including card, wire transfer,
ACH
, check, and cash. It also provides clients the means to manage their accounts electronically online, both domestically and internationally.
|
•
|
Net interest income
– Net interest income is presented on an
FTE
basis to make income from tax-exempt assets comparable to other taxable products. The segment results
|
•
|
Provision/(benefit) for credit losses
– Represents net charge-offs by segment combined with an allocation to the segments of the provision/(benefit) attributable to each segment's quarterly change in the
ALLL
and unfunded commitment reserve balances.
|
•
|
Provision/(benefit) for income taxes
– Calculated using a blended income tax rate for each segment. This calculation includes the impact of various adjustments, such as the reversal of the
FTE
gross up on tax-exempt assets, tax adjustments, and credits that are unique to each 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, residual expenses are also allocated to the segments. The recoveries for the majority of these costs are reported in Corporate Other.
|
•
|
Support and overhead costs
– Expenses not directly attributable to a specific segment are allocated based on various drivers (e.g., number of equivalent employees, number of PCs/Laptops, and net revenue). The recoveries for these allocations are reported 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, 2015
|
||||||||||||||||||||||
(Dollars in millions)
|
Consumer
Banking and Private Wealth Management |
|
Wholesale Banking
|
|
Mortgage Banking
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average loans
|
|
$40,337
|
|
|
|
$67,645
|
|
|
|
$24,793
|
|
|
|
$64
|
|
|
|
($10
|
)
|
|
|
$132,829
|
|
Average consumer and commercial deposits
|
91,287
|
|
|
48,587
|
|
|
2,980
|
|
|
80
|
|
|
(83
|
)
|
|
142,851
|
|
||||||
Average total assets
|
46,486
|
|
|
81,026
|
|
|
28,555
|
|
|
29,568
|
|
|
2,675
|
|
|
188,310
|
|
||||||
Average total liabilities
|
91,912
|
|
|
54,175
|
|
|
3,505
|
|
|
15,597
|
|
|
(118
|
)
|
|
165,071
|
|
||||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,239
|
|
|
23,239
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statements of Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$676
|
|
|
|
$444
|
|
|
|
$123
|
|
|
|
$34
|
|
|
|
($110
|
)
|
|
|
$1,167
|
|
FTE adjustment
|
—
|
|
|
35
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
36
|
|
||||||
Net interest income - FTE
1
|
676
|
|
|
479
|
|
|
123
|
|
|
35
|
|
|
(110
|
)
|
|
1,203
|
|
||||||
Provision/(benefit) for credit losses
2
|
9
|
|
|
30
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
26
|
|
||||||
Net interest income after provision/(benefit) for credit losses - FTE
|
667
|
|
|
449
|
|
|
136
|
|
|
35
|
|
|
(110
|
)
|
|
1,177
|
|
||||||
Total noninterest income
|
390
|
|
|
344
|
|
|
105
|
|
|
39
|
|
|
(4
|
)
|
|
874
|
|
||||||
Total noninterest expense
|
725
|
|
|
395
|
|
|
180
|
|
|
32
|
|
|
(4
|
)
|
|
1,328
|
|
||||||
Income before provision for income taxes - FTE
|
332
|
|
|
398
|
|
|
61
|
|
|
42
|
|
|
(110
|
)
|
|
723
|
|
||||||
Provision for income taxes - FTE
3
|
124
|
|
|
136
|
|
|
4
|
|
|
18
|
|
|
(44
|
)
|
|
238
|
|
||||||
Net income including income attributable to noncontrolling interest
|
208
|
|
|
262
|
|
|
57
|
|
|
24
|
|
|
(66
|
)
|
|
485
|
|
||||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Net income
|
|
$208
|
|
|
|
$262
|
|
|
|
$57
|
|
|
|
$22
|
|
|
|
($66
|
)
|
|
|
$483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2014
|
||||||||||||||||||||||
(Dollars in millions)
|
Consumer
Banking and Private Wealth Management |
|
Wholesale Banking
|
|
Mortgage Banking
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average loans
|
|
$41,517
|
|
|
|
$61,366
|
|
|
|
$27,803
|
|
|
|
$52
|
|
|
|
($4
|
)
|
|
|
$130,734
|
|
Average consumer and commercial deposits
|
85,154
|
|
|
43,063
|
|
|
2,220
|
|
|
90
|
|
|
(55
|
)
|
|
130,472
|
|
||||||
Average total assets
|
47,196
|
|
|
72,691
|
|
|
31,251
|
|
|
25,971
|
|
|
2,711
|
|
|
179,820
|
|
||||||
Average total liabilities
|
85,867
|
|
|
49,815
|
|
|
2,762
|
|
|
19,378
|
|
|
4
|
|
|
157,826
|
|
||||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,994
|
|
|
21,994
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statements of Income/(Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$649
|
|
|
|
$410
|
|
|
|
$140
|
|
|
|
$73
|
|
|
|
($63
|
)
|
|
|
$1,209
|
|
FTE adjustment
|
—
|
|
|
34
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
35
|
|
||||||
Net interest income - FTE
1
|
649
|
|
|
444
|
|
|
140
|
|
|
74
|
|
|
(63
|
)
|
|
1,244
|
|
||||||
Provision for credit losses
2
|
42
|
|
|
8
|
|
|
24
|
|
|
—
|
|
|
(1
|
)
|
|
73
|
|
||||||
Net interest income after provision for credit losses - FTE
|
607
|
|
|
436
|
|
|
116
|
|
|
74
|
|
|
(62
|
)
|
|
1,171
|
|
||||||
Total noninterest income
|
381
|
|
|
312
|
|
|
119
|
|
|
150
|
|
|
(5
|
)
|
|
957
|
|
||||||
Total noninterest expense
|
727
|
|
|
390
|
|
|
364
|
|
|
38
|
|
|
(2
|
)
|
|
1,517
|
|
||||||
Income/(loss) before provision/(benefit) for income taxes - FTE
|
261
|
|
|
358
|
|
|
(129
|
)
|
|
186
|
|
|
(65
|
)
|
|
611
|
|
||||||
Provision/(benefit) for income taxes - FTE
3
|
96
|
|
|
120
|
|
|
(47
|
)
|
|
64
|
|
|
(25
|
)
|
|
208
|
|
||||||
Net income/(loss) including income attributable to noncontrolling interest
|
165
|
|
|
238
|
|
|
(82
|
)
|
|
122
|
|
|
(40
|
)
|
|
403
|
|
||||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(1
|
)
|
|
4
|
|
||||||
Net income/(loss)
|
|
$165
|
|
|
|
$238
|
|
|
|
($82
|
)
|
|
|
$117
|
|
|
|
($39
|
)
|
|
|
$399
|
|
|
Six Months Ended June 30, 2015
|
||||||||||||||||||||||
(Dollars in millions)
|
Consumer
Banking and Private Wealth Management |
|
Wholesale Banking
|
|
Mortgage Banking
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average loans
|
|
$40,727
|
|
|
|
$67,691
|
|
|
|
$24,617
|
|
|
|
$54
|
|
|
|
($7
|
)
|
|
|
$133,082
|
|
Average consumer and commercial deposits
|
90,927
|
|
|
48,051
|
|
|
2,671
|
|
|
85
|
|
|
(64
|
)
|
|
141,670
|
|
||||||
Average total assets
|
46,805
|
|
|
81,129
|
|
|
28,247
|
|
|
29,257
|
|
|
3,347
|
|
|
188,785
|
|
||||||
Average total liabilities
|
91,566
|
|
|
53,885
|
|
|
3,062
|
|
|
17,164
|
|
|
(98
|
)
|
|
165,579
|
|
||||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,206
|
|
|
23,206
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statements of Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$1,342
|
|
|
|
$874
|
|
|
|
$244
|
|
|
|
$63
|
|
|
|
($216
|
)
|
|
|
$2,307
|
|
FTE adjustment
|
—
|
|
|
69
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
71
|
|
||||||
Net interest income - FTE
1
|
1,342
|
|
|
943
|
|
|
244
|
|
|
64
|
|
|
(215
|
)
|
|
2,378
|
|
||||||
Provision/(benefit) for credit losses
2
|
79
|
|
|
26
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
82
|
|
||||||
Net interest income after provision/(benefit) for credit losses - FTE
|
1,263
|
|
|
917
|
|
|
267
|
|
|
64
|
|
|
(215
|
)
|
|
2,296
|
|
||||||
Total noninterest income
|
752
|
|
|
656
|
|
|
236
|
|
|
55
|
|
|
(7
|
)
|
|
1,692
|
|
||||||
Total noninterest expense
|
1,446
|
|
|
802
|
|
|
357
|
|
|
12
|
|
|
(9
|
)
|
|
2,608
|
|
||||||
Income before provision for income taxes - FTE
|
569
|
|
|
771
|
|
|
146
|
|
|
107
|
|
|
(213
|
)
|
|
1,380
|
|
||||||
Provision for income taxes - FTE
3
|
212
|
|
|
262
|
|
|
34
|
|
|
39
|
|
|
(83
|
)
|
|
464
|
|
||||||
Net income including income attributable to noncontrolling interest
|
357
|
|
|
509
|
|
|
112
|
|
|
68
|
|
|
(130
|
)
|
|
916
|
|
||||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(1
|
)
|
|
4
|
|
||||||
Net income
|
|
$357
|
|
|
|
$509
|
|
|
|
$112
|
|
|
|
$63
|
|
|
|
($129
|
)
|
|
|
$912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2014
|
||||||||||||||||||||||
(Dollars in millions)
|
Consumer
Banking and Private Wealth Management |
|
Wholesale Banking
|
|
Mortgage Banking
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average loans
|
|
$41,387
|
|
|
|
$60,159
|
|
|
|
$28,043
|
|
|
|
$52
|
|
|
|
($6
|
)
|
|
|
$129,635
|
|
Average consumer and commercial deposits
|
84,681
|
|
|
42,683
|
|
|
2,054
|
|
|
85
|
|
|
(63
|
)
|
|
129,440
|
|
||||||
Average total assets
|
47,066
|
|
|
71,375
|
|
|
31,400
|
|
|
25,798
|
|
|
2,765
|
|
|
178,404
|
|
||||||
Average total liabilities
|
85,448
|
|
|
49,407
|
|
|
2,600
|
|
|
19,113
|
|
|
(25
|
)
|
|
156,543
|
|
||||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,861
|
|
|
21,861
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statements of Income/(Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$1,291
|
|
|
|
$801
|
|
|
|
$274
|
|
|
|
$149
|
|
|
|
($101
|
)
|
|
|
$2,414
|
|
FTE adjustment
|
—
|
|
|
68
|
|
|
—
|
|
|
2
|
|
|
(1
|
)
|
|
69
|
|
||||||
Net interest income - FTE
1
|
1,291
|
|
|
869
|
|
|
274
|
|
|
151
|
|
|
(102
|
)
|
|
2,483
|
|
||||||
Provision for credit losses
2
|
95
|
|
|
30
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
175
|
|
||||||
Net interest income after provision for credit losses - FTE
|
1,196
|
|
|
839
|
|
|
224
|
|
|
151
|
|
|
(102
|
)
|
|
2,308
|
|
||||||
Total noninterest income
|
743
|
|
|
587
|
|
|
219
|
|
|
209
|
|
|
(10
|
)
|
|
1,748
|
|
||||||
Total noninterest expense
|
1,432
|
|
|
813
|
|
|
550
|
|
|
87
|
|
|
(8
|
)
|
|
2,874
|
|
||||||
Income/(loss) before provision/(benefit) for income taxes - FTE
|
507
|
|
|
613
|
|
|
(107
|
)
|
|
273
|
|
|
(104
|
)
|
|
1,182
|
|
||||||
Provision/(benefit) for income taxes - FTE
3
|
186
|
|
|
202
|
|
|
(41
|
)
|
|
66
|
|
|
(46
|
)
|
|
367
|
|
||||||
Net income/(loss) including income attributable to noncontrolling interest
|
321
|
|
|
411
|
|
|
(66
|
)
|
|
207
|
|
|
(58
|
)
|
|
815
|
|
||||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Net income/(loss)
|
|
$321
|
|
|
|
$411
|
|
|
|
($66
|
)
|
|
|
$196
|
|
|
|
($58
|
)
|
|
|
$804
|
|
(Dollars in millions)
|
Securities AFS
|
|
Derivative Instruments
|
|
Employee Benefit Plans
|
|
Total
|
||||||||
Three Months Ended June 30, 2015:
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
|
$384
|
|
|
|
$141
|
|
|
|
($590
|
)
|
|
|
($65
|
)
|
Net unrealized (losses)/gains arising during the period
|
(192
|
)
|
|
5
|
|
|
—
|
|
|
(187
|
)
|
||||
Amounts reclassified from AOCI
|
(9
|
)
|
|
(39
|
)
|
|
6
|
|
|
(42
|
)
|
||||
Other comprehensive (loss)/income, net of tax
|
(201
|
)
|
|
(34
|
)
|
|
6
|
|
|
(229
|
)
|
||||
Balance, end of period
|
|
$183
|
|
|
|
$107
|
|
|
|
($584
|
)
|
|
|
($294
|
)
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended June 30, 2014:
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
|
$32
|
|
|
|
$229
|
|
|
|
($461
|
)
|
|
|
($200
|
)
|
Net unrealized gains arising during the period
|
175
|
|
|
28
|
|
|
—
|
|
|
203
|
|
||||
Amounts reclassified from AOCI
|
—
|
|
|
(64
|
)
|
|
2
|
|
|
(62
|
)
|
||||
Other comprehensive income/(loss), net of tax
|
175
|
|
|
(36
|
)
|
|
2
|
|
|
141
|
|
||||
Balance, end of period
|
|
$207
|
|
|
|
$193
|
|
|
|
($459
|
)
|
|
|
($59
|
)
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2015:
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
|
$298
|
|
|
|
$97
|
|
|
|
($517
|
)
|
|
|
($122
|
)
|
Net unrealized (losses)/gains arising during the period
|
(106
|
)
|
|
83
|
|
|
—
|
|
|
(23
|
)
|
||||
Amounts reclassified from AOCI
|
(9
|
)
|
|
(73
|
)
|
|
(67
|
)
|
|
(149
|
)
|
||||
Other comprehensive (loss)/income, net of tax
|
(115
|
)
|
|
10
|
|
|
(67
|
)
|
|
(172
|
)
|
||||
Balance, end of period
|
|
$183
|
|
|
|
$107
|
|
|
|
($584
|
)
|
|
|
($294
|
)
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2014:
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
|
($77
|
)
|
|
|
$279
|
|
|
|
($491
|
)
|
|
|
($289
|
)
|
Net unrealized gains arising during the period
|
283
|
|
|
42
|
|
|
—
|
|
|
325
|
|
||||
Amounts reclassified from AOCI
|
1
|
|
|
(128
|
)
|
|
32
|
|
|
(95
|
)
|
||||
Other comprehensive income/(loss), net of tax
|
284
|
|
|
(86
|
)
|
|
32
|
|
|
230
|
|
||||
Balance, end of period
|
|
$207
|
|
|
|
$193
|
|
|
|
($459
|
)
|
|
|
($59
|
)
|
(Dollars in millions)
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
|
Affected Line Item in the Statement Where Net Income is Presented
|
||||||||||||
Details About AOCI Components
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Realized (gains)/losses on securities AFS
|
|
|
($14
|
)
|
|
|
$1
|
|
|
|
($14
|
)
|
|
|
$2
|
|
|
Net securities gains/(losses)
|
Tax effect
|
|
5
|
|
|
(1
|
)
|
|
5
|
|
|
(1
|
)
|
|
Provision for income taxes
|
||||
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|
1
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative Instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gains on cash flow hedges
|
|
(63
|
)
|
|
(101
|
)
|
|
(117
|
)
|
|
(203
|
)
|
|
Interest and fees on loans
|
||||
Tax effect
|
|
24
|
|
|
37
|
|
|
44
|
|
|
75
|
|
|
Provision for income taxes
|
||||
|
|
(39
|
)
|
|
(64
|
)
|
|
(73
|
)
|
|
(128
|
)
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Employee Benefit Plans:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service credit
|
|
(2
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
Employee benefits
|
||||
Amortization of actuarial loss
|
|
6
|
|
|
4
|
|
|
11
|
|
|
8
|
|
|
Employee benefits
|
||||
Adjustment to funded status of employee benefit obligation
1
|
|
—
|
|
|
—
|
|
|
(120
|
)
|
|
46
|
|
|
Other assets/other liabilities
|
||||
|
|
4
|
|
|
3
|
|
|
(112
|
)
|
|
51
|
|
|
|
||||
Tax effect
|
|
2
|
|
|
(1
|
)
|
|
45
|
|
|
(19
|
)
|
|
Provision for income taxes
|
||||
|
|
6
|
|
|
2
|
|
|
(67
|
)
|
|
32
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total reclassifications from AOCI
|
|
|
($42
|
)
|
|
|
($62
|
)
|
|
|
($149
|
)
|
|
|
($95
|
)
|
|
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Selected Financial Data and Reconcilement of Non-U.S. GAAP Measures
|
|
|
|
Table 1
|
|
||||||||||
(Dollars in millions and shares in thousands, except per share data)
|
|
|
|
|
|
||||||||||
Three Months Ended June 30
|
|
Six Months Ended June 30
|
|||||||||||||
Selected Financial Data
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Summary of Operations:
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$1,297
|
|
|
|
$1,346
|
|
|
|
$2,569
|
|
|
|
$2,683
|
|
Interest expense
|
130
|
|
|
137
|
|
|
262
|
|
|
269
|
|
||||
Net interest income
|
1,167
|
|
|
1,209
|
|
|
2,307
|
|
|
2,414
|
|
||||
Provision for credit losses
|
26
|
|
|
73
|
|
|
82
|
|
|
175
|
|
||||
Net interest income after provision for credit losses
|
1,141
|
|
|
1,136
|
|
|
2,225
|
|
|
2,239
|
|
||||
Noninterest income
|
874
|
|
|
957
|
|
|
1,692
|
|
|
1,748
|
|
||||
Noninterest expense
|
1,328
|
|
|
1,517
|
|
|
2,608
|
|
|
2,874
|
|
||||
Income before provision for income taxes
|
687
|
|
|
576
|
|
|
1,309
|
|
|
1,113
|
|
||||
Provision for income taxes
|
202
|
|
|
173
|
|
|
393
|
|
|
298
|
|
||||
Net income attributable to noncontrolling interest
|
2
|
|
|
4
|
|
|
4
|
|
|
11
|
|
||||
Net income
|
|
$483
|
|
|
|
$399
|
|
|
|
$912
|
|
|
|
$804
|
|
Net income available to common shareholders
|
|
$467
|
|
|
|
$387
|
|
|
|
$877
|
|
|
|
$780
|
|
Adjusted net income available to common shareholders
1
|
|
$467
|
|
|
|
$436
|
|
|
|
$877
|
|
|
|
$829
|
|
Net interest income - FTE
2
|
|
$1,203
|
|
|
|
$1,244
|
|
|
|
$2,378
|
|
|
|
$2,483
|
|
Total revenue - FTE
2
|
2,077
|
|
|
2,201
|
|
|
4,070
|
|
|
4,231
|
|
||||
Total adjusted revenue - FTE
1, 2
|
2,077
|
|
|
2,096
|
|
|
4,070
|
|
|
4,126
|
|
||||
Net income per average common share:
|
|
|
|
|
|
|
|
||||||||
Diluted
|
0.89
|
|
|
0.72
|
|
|
1.67
|
|
|
1.45
|
|
||||
Adjusted diluted
1
|
0.89
|
|
|
0.81
|
|
|
1.67
|
|
|
1.54
|
|
||||
Basic
|
0.90
|
|
|
0.73
|
|
|
1.69
|
|
|
1.47
|
|
||||
Dividends paid per average common share
|
0.24
|
|
|
0.20
|
|
|
0.44
|
|
|
0.30
|
|
||||
Book value per common share
|
|
|
|
|
42.46
|
|
|
40.18
|
|
||||||
Tangible book value per common share
3
|
|
|
|
|
30.65
|
|
|
28.64
|
|
||||||
Market capitalization
|
|
|
|
|
22,286
|
|
|
21,344
|
|
||||||
Selected Average Balances:
|
|
|
|
|
|
|
|
||||||||
Total assets
|
|
$188,310
|
|
|
|
$179,820
|
|
|
|
$188,785
|
|
|
|
$178,404
|
|
Earning assets
|
168,461
|
|
|
160,373
|
|
|
168,321
|
|
|
158,866
|
|
||||
Loans
|
132,829
|
|
|
130,734
|
|
|
133,082
|
|
|
129,635
|
|
||||
Consumer and commercial deposits
|
142,851
|
|
|
130,472
|
|
|
141,670
|
|
|
129,440
|
|
||||
Brokered time and foreign deposits
|
1,118
|
|
|
1,893
|
|
|
1,183
|
|
|
1,953
|
|
||||
Intangible assets including MSRs
|
7,572
|
|
|
7,614
|
|
|
7,537
|
|
|
7,640
|
|
||||
MSRs
|
1,223
|
|
|
1,220
|
|
|
1,188
|
|
|
1,242
|
|
||||
Preferred stock
|
1,225
|
|
|
725
|
|
|
1,225
|
|
|
725
|
|
||||
Total shareholders’ equity
|
23,239
|
|
|
21,994
|
|
|
23,206
|
|
|
21,861
|
|
||||
Average common shares - diluted
|
522,479
|
|
|
535,486
|
|
|
524,646
|
|
|
536,234
|
|
||||
Average common shares - basic
|
516,968
|
|
|
529,764
|
|
|
518,983
|
|
|
530,459
|
|
||||
Financial Ratios (Annualized):
|
|
|
|
|
|
|
|
||||||||
ROA
|
1.03
|
%
|
|
0.89
|
%
|
|
0.97
|
%
|
|
0.91
|
%
|
||||
ROE
|
8.50
|
|
|
7.29
|
|
|
8.05
|
|
|
7.44
|
|
||||
ROTCE
4
|
11.77
|
|
|
10.29
|
|
|
11.16
|
|
|
10.53
|
|
||||
Net interest margin - FTE
2
|
2.86
|
|
|
3.11
|
|
|
2.85
|
|
|
3.15
|
|
||||
Efficiency ratio
5
|
63.92
|
|
|
68.93
|
|
|
64.07
|
|
|
67.92
|
|
||||
Tangible efficiency ratio
6
|
63.59
|
|
|
68.77
|
|
|
63.75
|
|
|
67.76
|
|
||||
Adjusted tangible efficiency ratio
1, 6
|
63.59
|
|
|
63.69
|
|
|
63.75
|
|
|
65.15
|
|
||||
Total average shareholders’ equity to total average assets
|
12.34
|
|
|
12.23
|
|
|
12.29
|
|
|
12.25
|
|
||||
Tangible equity to tangible assets
7
|
|
|
|
|
9.37
|
|
|
9.07
|
|
||||||
Capital Ratios at period end
8
:
|
|
|
|
|
|
|
|
||||||||
CET1
|
|
|
|
|
9.93
|
%
|
|
N/A
|
|
||||||
CET1 - fully phased-in
|
|
|
|
|
9.76
|
|
|
N/A
|
|
||||||
Tier 1 capital
|
|
|
|
|
10.79
|
|
|
N/A
|
|
||||||
Total capital
|
|
|
|
|
12.66
|
|
|
N/A
|
|
||||||
Leverage
|
|
|
|
|
9.56
|
|
|
N/A
|
|
Selected Financial Data and Reconcilement of Non-U.S. GAAP Measures (continued)
|
|||||||||||||||
(Dollars in millions, except per share data)
|
|
|
|
||||||||||||
Three Months Ended June 30
|
|
Six Months Ended June 30
|
|||||||||||||
Reconcilement of Non-U.S. GAAP Measures
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Efficiency ratio
5
|
63.92
|
%
|
|
68.93
|
%
|
|
64.07
|
%
|
|
67.92
|
%
|
||||
Impact of excluding amortization
|
(0.33
|
)
|
|
(0.16
|
)
|
|
(0.32
|
)
|
|
(0.16
|
)
|
||||
Tangible efficiency ratio
6
|
63.59
|
|
|
68.77
|
|
|
63.75
|
|
|
67.76
|
|
||||
Impact of excluding Form 8-K and other legacy mortgage-related items
|
—
|
|
|
(5.08
|
)
|
|
—
|
|
|
(2.61
|
)
|
||||
Adjusted tangible efficiency ratio
1, 6
|
63.59
|
%
|
|
63.69
|
%
|
|
63.75
|
%
|
|
65.15
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
ROE
|
8.50
|
%
|
|
7.29
|
%
|
|
8.05
|
%
|
|
7.44
|
%
|
||||
Impact of removing average intangible assets (net of deferred taxes), excluding MSRs, from average common shareholders' equity
|
3.27
|
|
|
3.00
|
|
|
3.11
|
|
|
3.09
|
|
||||
ROTCE
4
|
11.77
|
%
|
|
10.29
|
%
|
|
11.16
|
%
|
|
10.53
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
|
$1,167
|
|
|
|
$1,209
|
|
|
|
$2,307
|
|
|
|
$2,414
|
|
Taxable-equivalent adjustment
|
36
|
|
|
35
|
|
|
71
|
|
|
69
|
|
||||
Net interest income - FTE
2
|
1,203
|
|
|
1,244
|
|
|
2,378
|
|
|
2,483
|
|
||||
Noninterest income
|
874
|
|
|
957
|
|
|
1,692
|
|
|
1,748
|
|
||||
Total revenue - FTE
2
|
2,077
|
|
|
2,201
|
|
|
4,070
|
|
|
4,231
|
|
||||
Impact of excluding Form 8-K items
|
—
|
|
|
(105
|
)
|
|
—
|
|
|
(105
|
)
|
||||
Total adjusted revenue - FTE
1, 2
|
|
$2,077
|
|
|
|
$2,096
|
|
|
|
$4,070
|
|
|
|
$4,126
|
|
Noninterest income
|
|
$874
|
|
|
|
$957
|
|
|
|
$1,692
|
|
|
|
$1,748
|
|
Impact of excluding Form 8-K items
|
—
|
|
|
(105
|
)
|
|
—
|
|
|
(105
|
)
|
||||
Adjusted noninterest income
1
|
|
$874
|
|
|
|
$852
|
|
|
|
$1,692
|
|
|
|
$1,643
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|||||||||
(Dollars in millions, except per share data)
|
June 30, 2015
|
|
June 30, 2014
|
|
|
|
|
||||||||
Total shareholders’ equity
|
|
$23,223
|
|
|
|
$22,131
|
|
|
|
|
|
||||
Goodwill, net of deferred taxes
9
|
(6,103
|
)
|
|
(6,131
|
)
|
|
|
|
|
||||||
Other intangible assets, net of deferred taxes, and MSRs
10
|
(1,412
|
)
|
|
(1,276
|
)
|
|
|
|
|
||||||
MSRs
|
1,393
|
|
|
1,259
|
|
|
|
|
|
||||||
Tangible equity
|
17,101
|
|
|
15,983
|
|
|
|
|
|
||||||
Preferred stock
|
(1,225
|
)
|
|
(725
|
)
|
|
|
|
|
||||||
Tangible common equity
|
|
$15,876
|
|
|
|
$15,258
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total assets
|
|
$188,858
|
|
|
|
$182,559
|
|
|
|
|
|
||||
Goodwill
|
(6,337
|
)
|
|
(6,337
|
)
|
|
|
|
|
||||||
Other intangible assets including MSRs
|
(1,416
|
)
|
|
(1,277
|
)
|
|
|
|
|
||||||
MSRs
|
1,393
|
|
|
1,259
|
|
|
|
|
|
||||||
Tangible assets
|
|
$182,498
|
|
|
|
$176,204
|
|
|
|
|
|
||||
Tangible equity to tangible assets
7
|
9.37
|
%
|
|
9.07
|
%
|
|
|
|
|
||||||
Tangible book value per common share
3
|
|
$30.65
|
|
|
|
$28.64
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total LHFI
|
|
$132,538
|
|
|
|
$129,744
|
|
|
|
|
|
||||
Government-guaranteed LHFI
|
(5,026
|
)
|
|
(6,081
|
)
|
|
|
|
|
||||||
LHFI at fair value
|
(263
|
)
|
|
(292
|
)
|
|
|
|
|
||||||
Total LHFI, excluding government-guaranteed and fair value loans
|
|
$127,249
|
|
|
|
$123,371
|
|
|
|
|
|
||||
ALLL to total LHFI, excluding government-guaranteed and fair value loans
11
|
1.44
|
%
|
|
1.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data and Reconcilement of Non-U.S. GAAP Measures (continued)
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Dollars in millions, except per share data)
|
Three Months Ended June 30, 2014
|
|
Six Months Ended June 30, 2014
|
||||||||||||||||||||
Reconcilement of Non-U.S. GAAP Measures (continued)
|
As Reported
|
|
Adjustments
|
|
As Adjusted
1
|
|
As Reported
|
|
Adjustments
|
|
As Adjusted
1
|
||||||||||||
Net interest income
|
|
$1,209
|
|
|
|
$—
|
|
|
|
$1,209
|
|
|
|
$2,414
|
|
|
|
$—
|
|
|
|
$2,414
|
|
Provision for credit losses
|
73
|
|
|
—
|
|
|
73
|
|
|
175
|
|
|
—
|
|
|
175
|
|
||||||
Net interest income after provision for credit losses
|
1,136
|
|
|
—
|
|
|
1,136
|
|
|
2,239
|
|
|
—
|
|
|
2,239
|
|
||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges on deposit accounts
|
160
|
|
|
—
|
|
|
160
|
|
|
314
|
|
|
—
|
|
|
314
|
|
||||||
Other charges and fees
|
91
|
|
|
—
|
|
|
91
|
|
|
179
|
|
|
—
|
|
|
179
|
|
||||||
Card fees
|
82
|
|
|
—
|
|
|
82
|
|
|
158
|
|
|
—
|
|
|
158
|
|
||||||
Investment banking income
|
119
|
|
|
—
|
|
|
119
|
|
|
207
|
|
|
—
|
|
|
207
|
|
||||||
Trading income
|
47
|
|
|
—
|
|
|
47
|
|
|
96
|
|
|
—
|
|
|
96
|
|
||||||
Trust and investment management income
|
116
|
|
|
—
|
|
|
116
|
|
|
247
|
|
|
—
|
|
|
247
|
|
||||||
Retail investment services
|
76
|
|
|
—
|
|
|
76
|
|
|
147
|
|
|
—
|
|
|
147
|
|
||||||
Mortgage production related income
|
52
|
|
|
—
|
|
|
52
|
|
|
95
|
|
|
—
|
|
|
95
|
|
||||||
Mortgage servicing related income
|
45
|
|
|
—
|
|
|
45
|
|
|
99
|
|
|
—
|
|
|
99
|
|
||||||
Gain on sale of subsidiary
|
105
|
|
|
(105
|
)
|
12
|
—
|
|
|
105
|
|
|
(105
|
)
|
12
|
—
|
|
||||||
Net securities (losses)/gains
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Other noninterest income
|
65
|
|
|
—
|
|
|
65
|
|
|
103
|
|
|
—
|
|
|
103
|
|
||||||
Total noninterest income
|
957
|
|
|
(105
|
)
|
|
852
|
|
|
1,748
|
|
|
(105
|
)
|
|
1,643
|
|
||||||
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Employee compensation
|
659
|
|
|
—
|
|
|
659
|
|
|
1,319
|
|
|
—
|
|
|
1,319
|
|
||||||
Employee benefits
|
104
|
|
|
—
|
|
|
104
|
|
|
244
|
|
|
—
|
|
|
244
|
|
||||||
Outside processing and software
|
181
|
|
|
—
|
|
|
181
|
|
|
351
|
|
|
—
|
|
|
351
|
|
||||||
Net occupancy expense
|
83
|
|
|
—
|
|
|
83
|
|
|
169
|
|
|
—
|
|
|
169
|
|
||||||
Equipment expense
|
42
|
|
|
—
|
|
|
42
|
|
|
86
|
|
|
—
|
|
|
86
|
|
||||||
Regulatory assessments
|
40
|
|
|
—
|
|
|
40
|
|
|
80
|
|
|
—
|
|
|
80
|
|
||||||
Marketing and customer development
|
30
|
|
|
—
|
|
|
30
|
|
|
56
|
|
|
—
|
|
|
56
|
|
||||||
Credit and collection services
|
23
|
|
|
—
|
|
|
23
|
|
|
46
|
|
|
—
|
|
|
46
|
|
||||||
Operating losses
|
218
|
|
|
(179
|
)
|
13
|
39
|
|
|
239
|
|
|
(179
|
)
|
13
|
60
|
|
||||||
Amortization
|
4
|
|
|
—
|
|
|
4
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||
Other noninterest expense
|
133
|
|
|
—
|
|
|
133
|
|
|
277
|
|
|
—
|
|
|
277
|
|
||||||
Total noninterest expense
|
1,517
|
|
|
(179
|
)
|
|
1,338
|
|
|
2,874
|
|
|
(179
|
)
|
|
2,695
|
|
||||||
Income before provision for income taxes
|
576
|
|
|
74
|
|
|
650
|
|
|
1,113
|
|
|
74
|
|
|
1,187
|
|
||||||
Provision for income taxes
|
173
|
|
|
25
|
|
14
|
198
|
|
|
298
|
|
|
25
|
|
14
|
323
|
|
||||||
Income including income attributable to noncontrolling interest
|
403
|
|
|
49
|
|
|
452
|
|
|
815
|
|
|
49
|
|
|
864
|
|
||||||
Net income attributable to noncontrolling interest
|
4
|
|
|
—
|
|
|
4
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Net income
|
|
$399
|
|
|
|
$49
|
|
|
|
$448
|
|
|
|
$804
|
|
|
|
$49
|
|
|
|
$853
|
|
Net income available to common shareholders
|
|
$387
|
|
|
|
$49
|
|
|
|
$436
|
|
|
|
$780
|
|
|
|
$49
|
|
|
|
$829
|
|
Net income per average common share - diluted
|
|
$0.72
|
|
|
|
$0.09
|
|
|
|
$0.81
|
|
|
|
$1.45
|
|
|
|
$0.09
|
|
|
|
$1.54
|
|
Total revenue - FTE
2
|
|
$2,201
|
|
|
|
($105
|
)
|
|
|
$2,096
|
|
|
|
$4,231
|
|
|
|
($105
|
)
|
|
|
$4,126
|
|
Efficiency ratio
5
|
68.93
|
%
|
|
|
|
63.85
|
%
|
|
67.92
|
%
|
|
|
|
65.32
|
%
|
||||||||
Tangible efficiency ratio
6
|
68.77
|
|
|
|
|
63.69
|
|
|
67.76
|
|
|
|
|
65.15
|
|
Selected Financial Data and Reconcilement of Non-U.S. GAAP Measures (continued)
|
|
|
|
|
|
Reconciliation of CET1 Ratio
8
|
June 30, 2015
|
|
CET1
|
9.93
|
%
|
Less:
|
|
|
MSRs
|
(0.13
|
)
|
Other
15
|
(0.04
|
)
|
CET1 - fully phased-in
|
9.76
|
%
|
Consolidated Daily Average Balances, Income/Expense, and Average Yields Earned/Rates Paid
|
|
Table 2
|
|
|||||||||||||||||||||||||
|
Three Months Ended
|
|
|
|||||||||||||||||||||||||
|
June 30, 2015
|
|
June 30, 2014
|
|
Increase/(Decrease)
|
|||||||||||||||||||||||
(Dollars in millions)
|
Average
Balances
|
|
Income/
Expense
|
|
Yields/
Rates
|
|
Average
Balances
|
|
Income/
Expense
|
|
Yields/
Rates
|
|
Average
Balances
|
|
Yields/
Rates
|
|||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loans:
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
C&I - FTE
2
|
|
$65,743
|
|
|
|
$525
|
|
|
3.20
|
%
|
|
|
$60,141
|
|
|
|
$545
|
|
|
3.63
|
%
|
|
|
$5,602
|
|
|
(0.43
|
)
|
CRE
|
6,146
|
|
|
43
|
|
|
2.81
|
|
|
6,052
|
|
|
44
|
|
|
2.92
|
|
|
94
|
|
|
(0.11
|
)
|
|||||
Commercial construction
|
1,519
|
|
|
12
|
|
|
3.18
|
|
|
1,006
|
|
|
9
|
|
|
3.41
|
|
|
513
|
|
|
(0.23
|
)
|
|||||
Residential mortgages - guaranteed
|
631
|
|
|
6
|
|
|
3.85
|
|
|
2,994
|
|
|
27
|
|
|
3.62
|
|
|
(2,363
|
)
|
|
0.23
|
|
|||||
Residential mortgages - nonguaranteed
|
23,479
|
|
|
226
|
|
|
3.86
|
|
|
23,849
|
|
|
237
|
|
|
3.98
|
|
|
(370
|
)
|
|
(0.12
|
)
|
|||||
Residential home equity products
|
13,657
|
|
|
125
|
|
|
3.68
|
|
|
14,394
|
|
|
128
|
|
|
3.58
|
|
|
(737
|
)
|
|
0.10
|
|
|||||
Residential construction
|
382
|
|
|
5
|
|
|
4.83
|
|
|
474
|
|
|
5
|
|
|
4.34
|
|
|
(92
|
)
|
|
0.49
|
|
|||||
Consumer student - guaranteed
|
4,345
|
|
|
41
|
|
|
3.74
|
|
|
5,463
|
|
|
50
|
|
|
3.64
|
|
|
(1,118
|
)
|
|
0.10
|
|
|||||
Consumer other direct
|
5,140
|
|
|
55
|
|
|
4.27
|
|
|
3,342
|
|
|
35
|
|
|
4.23
|
|
|
1,798
|
|
|
0.04
|
|
|||||
Consumer indirect
|
10,284
|
|
|
82
|
|
|
3.20
|
|
|
11,388
|
|
|
91
|
|
|
3.19
|
|
|
(1,104
|
)
|
|
0.01
|
|
|||||
Consumer credit cards
|
904
|
|
|
22
|
|
|
9.85
|
|
|
732
|
|
|
18
|
|
|
9.63
|
|
|
172
|
|
|
0.22
|
|
|||||
Nonaccrual
3
|
599
|
|
|
8
|
|
|
5.33
|
|
|
899
|
|
|
6
|
|
|
2.81
|
|
|
(300
|
)
|
|
2.52
|
|
|||||
Total loans - FTE
2
|
132,829
|
|
|
1,150
|
|
|
3.47
|
|
|
130,734
|
|
|
1,195
|
|
|
3.67
|
|
|
2,095
|
|
|
(0.20
|
)
|
|||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Taxable
|
26,175
|
|
|
135
|
|
|
2.06
|
|
|
22,799
|
|
|
147
|
|
|
2.58
|
|
|
3,376
|
|
|
(0.52
|
)
|
|||||
Tax-exempt - FTE
2
|
180
|
|
|
2
|
|
|
5.18
|
|
|
263
|
|
|
3
|
|
|
5.26
|
|
|
(83
|
)
|
|
(0.08
|
)
|
|||||
Total securities AFS - FTE
2
|
26,355
|
|
|
137
|
|
|
2.09
|
|
|
23,062
|
|
|
150
|
|
|
2.61
|
|
|
3,293
|
|
|
(0.52
|
)
|
|||||
Fed funds sold and securities borrowed or purchased
under agreements to resell
|
1,220
|
|
|
—
|
|
|
—
|
|
|
1,047
|
|
|
—
|
|
|
—
|
|
|
173
|
|
|
—
|
|
|||||
LHFS - FTE
2
|
2,757
|
|
|
24
|
|
|
3.49
|
|
|
1,678
|
|
|
17
|
|
|
4.03
|
|
|
1,079
|
|
|
(0.54
|
)
|
|||||
Interest-bearing deposits
|
23
|
|
|
—
|
|
|
0.13
|
|
|
25
|
|
|
—
|
|
|
0.16
|
|
|
(2
|
)
|
|
(0.03
|
)
|
|||||
Interest earning trading assets
|
5,277
|
|
|
22
|
|
|
1.67
|
|
|
3,827
|
|
|
19
|
|
|
1.98
|
|
|
1,450
|
|
|
(0.31
|
)
|
|||||
Total earning assets - FTE
2
|
168,461
|
|
|
1,333
|
|
|
3.17
|
|
|
160,373
|
|
|
1,381
|
|
|
3.45
|
|
|
8,088
|
|
|
(0.28
|
)
|
|||||
ALLL
|
(1,864
|
)
|
|
|
|
|
|
(2,023
|
)
|
|
|
|
|
|
159
|
|
|
|
||||||||||
Cash and due from banks
|
5,209
|
|
|
|
|
|
|
5,412
|
|
|
|
|
|
|
(203
|
)
|
|
|
||||||||||
Other assets
|
14,649
|
|
|
|
|
|
|
14,675
|
|
|
|
|
|
|
(26
|
)
|
|
|
||||||||||
Noninterest earning trading assets and derivative instruments
|
1,265
|
|
|
|
|
|
|
1,155
|
|
|
|
|
|
|
110
|
|
|
|
||||||||||
Unrealized gains on securities available for sale, net
|
590
|
|
|
|
|
|
|
228
|
|
|
|
|
|
|
362
|
|
|
|
||||||||||
Total assets
|
|
$188,310
|
|
|
|
|
|
|
|
$179,820
|
|
|
|
|
|
|
|
$8,490
|
|
|
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NOW accounts
|
|
$34,356
|
|
|
|
$8
|
|
|
0.09
|
%
|
|
|
$29,198
|
|
|
|
$6
|
|
|
0.08
|
%
|
|
|
$5,158
|
|
|
0.01
|
|
Money market accounts
|
49,527
|
|
|
21
|
|
|
0.17
|
|
|
42,963
|
|
|
15
|
|
|
0.14
|
|
|
6,564
|
|
|
0.03
|
|
|||||
Savings
|
6,281
|
|
|
—
|
|
|
0.03
|
|
|
6,182
|
|
|
1
|
|
|
0.04
|
|
|
99
|
|
|
(0.01
|
)
|
|||||
Consumer time
|
6,545
|
|
|
13
|
|
|
0.77
|
|
|
7,701
|
|
|
17
|
|
|
0.89
|
|
|
(1,156
|
)
|
|
(0.12
|
)
|
|||||
Other time
|
3,839
|
|
|
10
|
|
|
1.03
|
|
|
4,398
|
|
|
12
|
|
|
1.07
|
|
|
(559
|
)
|
|
(0.04
|
)
|
|||||
Total interest-bearing consumer and commercial deposits
|
100,548
|
|
|
52
|
|
|
0.21
|
|
|
90,442
|
|
|
51
|
|
|
0.22
|
|
|
10,106
|
|
|
(0.01
|
)
|
|||||
Brokered time deposits
|
875
|
|
|
3
|
|
|
1.39
|
|
|
1,890
|
|
|
10
|
|
|
2.19
|
|
|
(1,015
|
)
|
|
(0.80
|
)
|
|||||
Foreign deposits
|
243
|
|
|
—
|
|
|
0.12
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
240
|
|
|
0.12
|
|
|||||
Total interest-bearing deposits
|
101,666
|
|
|
55
|
|
|
0.22
|
|
|
92,335
|
|
|
61
|
|
|
0.27
|
|
|
9,331
|
|
|
(0.05
|
)
|
|||||
Funds purchased
|
710
|
|
|
—
|
|
|
0.10
|
|
|
825
|
|
|
—
|
|
|
0.09
|
|
|
(115
|
)
|
|
0.01
|
|
|||||
Securities sold under agreements to repurchase
|
1,827
|
|
|
1
|
|
|
0.20
|
|
|
2,148
|
|
|
1
|
|
|
0.12
|
|
|
(321
|
)
|
|
0.08
|
|
|||||
Interest-bearing trading liabilities
|
925
|
|
|
6
|
|
|
2.44
|
|
|
783
|
|
|
6
|
|
|
2.83
|
|
|
142
|
|
|
(0.39
|
)
|
|||||
Other short-term borrowings
|
1,582
|
|
|
1
|
|
|
0.14
|
|
|
5,796
|
|
|
3
|
|
|
0.23
|
|
|
(4,214
|
)
|
|
(0.09
|
)
|
|||||
Long-term debt
|
12,410
|
|
|
67
|
|
|
2.18
|
|
|
12,014
|
|
|
66
|
|
|
2.21
|
|
|
396
|
|
|
(0.03
|
)
|
|||||
Total interest-bearing liabilities
|
119,120
|
|
|
130
|
|
|
0.44
|
|
|
113,901
|
|
|
137
|
|
|
0.48
|
|
|
5,219
|
|
|
(0.04
|
)
|
|||||
Noninterest-bearing deposits
|
42,303
|
|
|
|
|
|
|
40,030
|
|
|
|
|
|
|
2,273
|
|
|
|
||||||||||
Other liabilities
|
3,235
|
|
|
|
|
|
|
3,599
|
|
|
|
|
|
|
(364
|
)
|
|
|
||||||||||
Noninterest-bearing trading liabilities and derivative instruments
|
413
|
|
|
|
|
|
|
296
|
|
|
|
|
|
|
117
|
|
|
|
||||||||||
Shareholders’ equity
|
23,239
|
|
|
|
|
|
|
21,994
|
|
|
|
|
|
|
1,245
|
|
|
|
||||||||||
Total liabilities and shareholders’ equity
|
|
$188,310
|
|
|
|
|
|
|
|
$179,820
|
|
|
|
|
|
|
|
$8,490
|
|
|
|
|||||||
Interest rate spread
|
|
|
|
|
2.73
|
%
|
|
|
|
|
|
2.97
|
%
|
|
|
|
(0.24
|
)
|
||||||||||
Net interest income - FTE
2, 4
|
|
|
|
$1,203
|
|
|
|
|
|
|
|
$1,244
|
|
|
|
|
|
|
|
|||||||||
Net interest margin
5
|
|
|
|
|
2.86
|
%
|
|
|
|
|
|
3.11
|
%
|
|
|
|
(0.25
|
)
|
|
|
|
Table 3
|
|
|||
|
|
|
|
||||
|
Ending Notional
Balance of Swaps
(in billions)
|
|
Estimated Net
1
Interest Income
Related to Swaps
(in millions)
|
||||
Third Quarter 2015
|
|
$18.0
|
|
|
|
$69
|
|
Fourth Quarter 2015
|
18.0
|
|
|
66
|
|
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
Table 4
|
|
|||||||||
|
Three Months Ended June 30
|
|
|
|
Six Months Ended June 30
|
|
|
||||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
% Change
1
|
|
2015
|
|
2014
|
|
% Change
1
|
||||||||||
Service charges on deposit accounts
|
|
$156
|
|
|
|
$160
|
|
|
(3
|
)%
|
|
|
$308
|
|
|
|
$314
|
|
|
(2
|
)%
|
Other charges and fees
|
99
|
|
|
91
|
|
|
9
|
|
|
188
|
|
|
179
|
|
|
5
|
|
||||
Card fees
|
84
|
|
|
82
|
|
|
2
|
|
|
164
|
|
|
158
|
|
|
4
|
|
||||
Investment banking income
|
145
|
|
|
119
|
|
|
22
|
|
|
242
|
|
|
207
|
|
|
17
|
|
||||
Trading income
|
54
|
|
|
47
|
|
|
15
|
|
|
109
|
|
|
96
|
|
|
14
|
|
||||
Trust and investment management income
|
84
|
|
|
116
|
|
|
(28
|
)
|
|
168
|
|
|
247
|
|
|
(32
|
)
|
||||
Retail investment services
|
80
|
|
|
76
|
|
|
5
|
|
|
152
|
|
|
147
|
|
|
3
|
|
||||
Mortgage production related income
|
76
|
|
|
52
|
|
|
46
|
|
|
159
|
|
|
95
|
|
|
67
|
|
||||
Mortgage servicing related income
|
30
|
|
|
45
|
|
|
(33
|
)
|
|
73
|
|
|
99
|
|
|
(26
|
)
|
||||
Gain on sale of subsidiary
|
—
|
|
|
105
|
|
|
(100
|
)
|
|
—
|
|
|
105
|
|
|
(100
|
)
|
||||
Net securities gains/(losses)
|
14
|
|
|
(1
|
)
|
|
NM
|
|
|
14
|
|
|
(2
|
)
|
|
NM
|
|
||||
Other noninterest income
|
52
|
|
|
65
|
|
|
(20
|
)
|
|
115
|
|
|
103
|
|
|
12
|
|
||||
Total noninterest income
|
|
$874
|
|
|
|
$957
|
|
|
(9
|
)%
|
|
|
$1,692
|
|
|
|
$1,748
|
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted noninterest income
2
|
|
$874
|
|
|
|
$852
|
|
|
3
|
%
|
|
|
$1,692
|
|
|
|
$1,643
|
|
|
3
|
%
|
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
Table 5
|
|
|||||||||
|
Three Months Ended June 30
|
|
|
|
Six Months Ended June 30
|
|
|
||||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
% Change
|
|
2015
|
|
2014
|
|
% Change
|
||||||||||
Employee compensation
|
|
$653
|
|
|
|
$659
|
|
|
(1
|
)%
|
|
|
$1,285
|
|
|
|
$1,319
|
|
|
(3
|
)%
|
Employee benefits
|
103
|
|
|
104
|
|
|
(1
|
)
|
|
242
|
|
|
244
|
|
|
(1
|
)
|
||||
Total personnel expenses
|
756
|
|
|
763
|
|
|
(1
|
)
|
|
1,527
|
|
|
1,563
|
|
|
(2
|
)
|
||||
Outside processing and software
|
204
|
|
|
181
|
|
|
13
|
|
|
394
|
|
|
351
|
|
|
12
|
|
||||
Net occupancy expense
|
85
|
|
|
83
|
|
|
2
|
|
|
169
|
|
|
169
|
|
|
—
|
|
||||
Equipment expense
|
42
|
|
|
42
|
|
|
—
|
|
|
82
|
|
|
86
|
|
|
(5
|
)
|
||||
Regulatory assessments
|
35
|
|
|
40
|
|
|
(13
|
)
|
|
72
|
|
|
80
|
|
|
(10
|
)
|
||||
Marketing and customer development
|
34
|
|
|
30
|
|
|
13
|
|
|
61
|
|
|
56
|
|
|
9
|
|
||||
Credit and collection services
|
25
|
|
|
23
|
|
|
9
|
|
|
43
|
|
|
46
|
|
|
(7
|
)
|
||||
Operating losses
|
16
|
|
|
218
|
|
|
(93
|
)
|
|
30
|
|
|
239
|
|
|
(87
|
)
|
||||
Amortization
|
7
|
|
|
4
|
|
|
75
|
|
|
13
|
|
|
7
|
|
|
86
|
|
||||
Other noninterest expense
|
124
|
|
|
133
|
|
|
(7
|
)
|
|
217
|
|
|
277
|
|
|
(22
|
)
|
||||
Total noninterest expense
|
|
$1,328
|
|
|
|
$1,517
|
|
|
(12
|
)%
|
|
|
$2,608
|
|
|
|
$2,874
|
|
|
(9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted noninterest expense
1
|
|
$1,328
|
|
|
|
$1,338
|
|
|
(1
|
)%
|
|
|
$2,608
|
|
|
|
$2,695
|
|
|
(3
|
)%
|
Loan Portfolio by Types of Loans
|
Table 6
|
|
||||||||
(Dollars in millions)
|
June 30, 2015
|
|
December 31, 2014
|
|
% Change
|
|||||
Commercial loans:
|
|
|
|
|
|
|||||
C&I
|
|
$65,713
|
|
|
|
$65,440
|
|
|
—
|
%
|
CRE
|
6,058
|
|
|
6,741
|
|
|
(10
|
)
|
||
Commercial construction
|
1,530
|
|
|
1,211
|
|
|
26
|
|
||
Total commercial loans
|
73,301
|
|
|
73,392
|
|
|
—
|
|
||
Residential loans:
|
|
|
|
|
|
|||||
Residential mortgages - guaranteed
|
625
|
|
|
632
|
|
|
(1
|
)
|
||
Residential mortgages - nonguaranteed
1
|
24,038
|
|
|
23,443
|
|
|
3
|
|
||
Home equity products
|
13,672
|
|
|
14,264
|
|
|
(4
|
)
|
||
Residential construction
|
401
|
|
|
436
|
|
|
(8
|
)
|
||
Total residential loans
|
38,736
|
|
|
38,775
|
|
|
—
|
|
||
Consumer loans:
|
|
|
|
|
|
|||||
Guaranteed student
|
4,401
|
|
|
4,827
|
|
|
(9
|
)
|
||
Other direct
|
5,329
|
|
|
4,573
|
|
|
17
|
|
||
Indirect
|
9,834
|
|
|
10,644
|
|
|
(8
|
)
|
||
Credit cards
|
937
|
|
|
901
|
|
|
4
|
|
||
Total consumer loans
|
20,501
|
|
|
20,945
|
|
|
(2
|
)
|
||
LHFI
|
|
$132,538
|
|
|
|
$133,112
|
|
|
—
|
%
|
LHFS
2
|
|
$2,457
|
|
|
|
$3,232
|
|
|
(24
|
)%
|
LHFI Portfolio by Geography
|
|
|
|
|
|
|
|
|
|
Table 7
|
|
|||||||||
|
June 30, 2015
|
|||||||||||||||||||
|
Commercial
|
|
Residential
|
|
Consumer
|
|||||||||||||||
(Dollars in millions)
|
Portfolio Balance
|
|
% of Total Commercial
|
|
Portfolio Balance
|
|
% of Total Residential
|
|
Portfolio Balance
|
|
% of Total Consumer
|
|||||||||
Geography:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Florida
|
|
$12,423
|
|
|
17
|
%
|
|
|
$9,849
|
|
|
25
|
%
|
|
|
$3,557
|
|
|
17
|
%
|
Georgia
|
9,323
|
|
|
13
|
|
|
5,880
|
|
|
15
|
|
|
1,595
|
|
|
8
|
|
|||
Virginia
|
6,851
|
|
|
9
|
|
|
5,883
|
|
|
15
|
|
|
1,414
|
|
|
7
|
|
|||
Tennessee
|
4,629
|
|
|
6
|
|
|
2,171
|
|
|
6
|
|
|
747
|
|
|
4
|
|
|||
North Carolina
|
4,220
|
|
|
6
|
|
|
3,579
|
|
|
9
|
|
|
1,308
|
|
|
6
|
|
|||
Maryland
|
3,880
|
|
|
5
|
|
|
4,122
|
|
|
11
|
|
|
1,251
|
|
|
6
|
|
|||
South Carolina
|
1,503
|
|
|
2
|
|
|
1,820
|
|
|
5
|
|
|
428
|
|
|
2
|
|
|||
District of Columbia
|
1,342
|
|
|
2
|
|
|
772
|
|
|
2
|
|
|
84
|
|
|
1
|
|
|||
Total banking region
|
44,171
|
|
|
60
|
|
|
34,076
|
|
|
88
|
|
|
10,384
|
|
|
51
|
|
|||
California, Illinois, Pennsylvania,
Texas, New Jersey, and New York
|
14,704
|
|
|
20
|
|
|
2,767
|
|
|
7
|
|
|
5,427
|
|
|
26
|
|
|||
All other states
|
14,426
|
|
|
20
|
|
|
1,893
|
|
|
5
|
|
|
4,690
|
|
|
23
|
|
|||
Total outside banking region
|
29,130
|
|
|
40
|
|
|
4,660
|
|
|
12
|
|
|
10,117
|
|
|
49
|
|
|||
Total
|
|
$73,301
|
|
|
100
|
%
|
|
|
$38,736
|
|
|
100
|
%
|
|
|
$20,501
|
|
|
100
|
%
|
|
December 31, 2014
|
|||||||||||||||||||
|
Commercial
|
|
Residential
|
|
Consumer
|
|||||||||||||||
(Dollars in millions)
|
Portfolio Balance
|
|
% of Total Commercial
|
|
Portfolio Balance
|
|
% of Total Residential
|
|
Portfolio Balance
|
|
% of Total Consumer
|
|||||||||
Geography:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Florida
|
|
$12,333
|
|
|
17
|
%
|
|
|
$10,152
|
|
|
26
|
%
|
|
|
$3,651
|
|
|
17
|
%
|
Georgia
|
9,221
|
|
|
13
|
|
|
5,955
|
|
|
15
|
|
|
1,579
|
|
|
8
|
|
|||
Virginia
|
7,191
|
|
|
10
|
|
|
5,721
|
|
|
15
|
|
|
1,479
|
|
|
7
|
|
|||
Tennessee
|
4,728
|
|
|
6
|
|
|
2,237
|
|
|
6
|
|
|
749
|
|
|
4
|
|
|||
North Carolina
|
3,733
|
|
|
5
|
|
|
3,623
|
|
|
9
|
|
|
1,366
|
|
|
7
|
|
|||
Maryland
|
3,903
|
|
|
5
|
|
|
3,952
|
|
|
10
|
|
|
1,304
|
|
|
6
|
|
|||
South Carolina
|
1,441
|
|
|
2
|
|
|
1,855
|
|
|
5
|
|
|
431
|
|
|
2
|
|
|||
District of Columbia
|
1,313
|
|
|
2
|
|
|
703
|
|
|
2
|
|
|
92
|
|
|
—
|
|
|||
Total banking region
|
43,863
|
|
|
60
|
|
|
34,198
|
|
|
88
|
|
|
10,651
|
|
|
51
|
|
|||
California, Illinois, Pennsylvania,
Texas, New Jersey, and New York
|
15,926
|
|
|
22
|
|
|
2,630
|
|
|
7
|
|
|
5,367
|
|
|
26
|
|
|||
All other states
|
13,603
|
|
|
18
|
|
|
1,947
|
|
|
5
|
|
|
4,927
|
|
|
23
|
|
|||
Total outside banking region
|
29,529
|
|
|
40
|
|
|
4,577
|
|
|
12
|
|
|
10,294
|
|
|
49
|
|
|||
Total
|
|
$73,392
|
|
|
100
|
%
|
|
|
$38,775
|
|
|
100
|
%
|
|
|
$20,945
|
|
|
100
|
%
|
Summary of Credit Losses Experience
|
|
Table 8
|
|
||||||||||||||||||
|
Three Months Ended June 30
|
|
|
|
Six Months Ended June 30
|
|
|
||||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
% Change
5
|
|
2015
|
|
2014
|
|
% Change
|
||||||||||
Allowance for Credit Losses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance - beginning of period
|
|
$1,947
|
|
|
|
$2,086
|
|
|
(7
|
)%
|
|
|
$1,991
|
|
|
|
$2,094
|
|
|
(5
|
)%
|
(Benefit)/provision for unfunded commitments
|
(2
|
)
|
|
(3
|
)
|
|
(33
|
)
|
|
(2
|
)
|
|
(7
|
)
|
|
(71
|
)
|
||||
Provision/(benefit) for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans
|
33
|
|
|
18
|
|
|
83
|
|
|
40
|
|
|
57
|
|
|
(30
|
)
|
||||
Residential loans
|
(16
|
)
|
|
32
|
|
|
NM
|
|
|
9
|
|
|
80
|
|
|
(89
|
)
|
||||
Consumer loans
|
11
|
|
|
26
|
|
|
(58
|
)
|
|
35
|
|
|
45
|
|
|
(22
|
)
|
||||
Total provision for loan losses
|
28
|
|
|
76
|
|
|
(63
|
)
|
|
84
|
|
|
182
|
|
|
(54
|
)
|
||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans
|
(31
|
)
|
|
(38
|
)
|
|
(18
|
)
|
|
(59
|
)
|
|
(71
|
)
|
|
(17
|
)
|
||||
Residential loans
|
(61
|
)
|
|
(90
|
)
|
|
(32
|
)
|
|
(129
|
)
|
|
(175
|
)
|
|
(26
|
)
|
||||
Consumer loans
|
(31
|
)
|
|
(30
|
)
|
|
3
|
|
|
(66
|
)
|
|
(63
|
)
|
|
5
|
|
||||
Total charge-offs
|
(123
|
)
|
|
(158
|
)
|
|
(22
|
)
|
|
(254
|
)
|
|
(309
|
)
|
|
(18
|
)
|
||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans
|
15
|
|
|
12
|
|
|
25
|
|
|
26
|
|
|
26
|
|
|
—
|
|
||||
Residential loans
|
10
|
|
|
23
|
|
|
(57
|
)
|
|
19
|
|
|
40
|
|
|
(53
|
)
|
||||
Consumer loans
|
11
|
|
|
10
|
|
|
10
|
|
|
22
|
|
|
20
|
|
|
10
|
|
||||
Total recoveries
|
36
|
|
|
45
|
|
|
(20
|
)
|
|
67
|
|
|
86
|
|
|
(22
|
)
|
||||
Net charge-offs
|
(87
|
)
|
|
(113
|
)
|
|
(23
|
)
|
|
(187
|
)
|
|
(223
|
)
|
|
(16
|
)
|
||||
Balance - end of period
|
|
$1,886
|
|
|
|
$2,046
|
|
|
(8
|
)%
|
|
|
$1,886
|
|
|
|
$2,046
|
|
|
(8
|
)%
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ALLL
|
|
|
|
|
|
|
|
|
$1,834
|
|
|
|
$2,003
|
|
|
(8
|
)%
|
||||
Unfunded commitments reserve
1
|
|
|
|
|
|
|
|
52
|
|
|
43
|
|
|
21
|
|
||||||
Allowance for credit losses
|
|
|
|
|
|
|
|
|
|
|
$1,886
|
|
|
|
$2,046
|
|
|
(8
|
)%
|
||
Average LHFI
|
|
$132,829
|
|
|
|
$130,734
|
|
|
2
|
%
|
|
|
$133,082
|
|
|
|
$129,635
|
|
|
3
|
%
|
Period-end LHFI outstanding
|
|
|
|
|
|
|
132,538
|
|
|
129,744
|
|
|
2
|
|
|||||||
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ALLL to period-end LHFI
2, 3
|
|
|
|
|
|
|
|
1.39
|
%
|
|
1.55
|
%
|
|
(10
|
)%
|
||||||
ALLL to NPLs
4
|
|
|
|
|
|
|
|
3.82x
|
|
|
2.25x
|
|
|
70
|
|
||||||
ALLL to net charge-offs (annualized)
|
5.23x
|
|
|
4.41x
|
|
|
19
|
%
|
|
4.87x
|
|
|
4.45x
|
|
|
9
|
|
||||
Net charge-offs to average LHFI (annualized)
|
0.26
|
%
|
|
0.35
|
%
|
|
(26
|
)
|
|
0.28
|
%
|
|
0.35
|
%
|
|
(20
|
)
|
ALLL by Loan Segment
|
|
Table 9
|
|
||||
(Dollars in millions)
|
June 30, 2015
|
|
December 31, 2014
|
||||
ALLL:
|
|
|
|
||||
Commercial loans
|
|
$993
|
|
|
|
$986
|
|
Residential loans
|
676
|
|
|
777
|
|
||
Consumer loans
|
165
|
|
|
174
|
|
||
Total
|
|
$1,834
|
|
|
|
$1,937
|
|
Segment ALLL as % of total ALLL:
|
|
|
|
||||
Commercial loans
|
54
|
%
|
|
51
|
%
|
||
Residential loans
|
37
|
|
|
40
|
|
||
Consumer loans
|
9
|
|
|
9
|
|
||
Total
|
100
|
%
|
|
100
|
%
|
||
Segment LHFI as % of total LHFI:
|
|
|
|
||||
Commercial loans
|
55
|
%
|
|
55
|
%
|
||
Residential loans
|
29
|
|
|
29
|
|
||
Consumer loans
|
16
|
|
|
16
|
|
||
Total
|
100
|
%
|
|
100
|
%
|
|
|
|
Table 10
|
|
||||||
(Dollars in millions)
|
June 30, 2015
|
|
December 31, 2014
|
|
% Change
3
|
|||||
Nonaccrual/NPLs:
|
|
|
|
|
|
|||||
Commercial loans:
|
|
|
|
|
|
|||||
C&I
|
|
$140
|
|
|
|
$151
|
|
|
(7
|
)%
|
CRE
|
17
|
|
|
21
|
|
|
(19
|
)
|
||
Commercial construction
|
1
|
|
|
1
|
|
|
—
|
|
||
Total commercial NPLs
|
158
|
|
|
173
|
|
|
(9
|
)
|
||
Residential loans:
|
|
|
|
|
|
|||||
Residential mortgages - nonguaranteed
|
147
|
|
|
254
|
|
|
(42
|
)
|
||
Home equity products
|
153
|
|
|
174
|
|
|
(12
|
)
|
||
Residential construction
|
18
|
|
|
27
|
|
|
(33
|
)
|
||
Total residential NPLs
|
318
|
|
|
455
|
|
|
(30
|
)
|
||
Consumer loans:
|
|
|
|
|
|
|||||
Other direct
|
4
|
|
|
6
|
|
|
(33
|
)
|
||
Indirect
|
1
|
|
|
—
|
|
|
NM
|
|
||
Total consumer NPLs
|
5
|
|
|
6
|
|
|
(17
|
)
|
||
Total nonaccrual/NPLs
1
|
481
|
|
|
634
|
|
|
(24
|
)
|
||
OREO
2
|
72
|
|
|
99
|
|
|
(27
|
)
|
||
Other repossessed assets
|
6
|
|
|
9
|
|
|
(33
|
)
|
||
Nonperforming LHFS
|
98
|
|
|
38
|
|
|
NM
|
|
||
Total NPAs
|
|
$657
|
|
|
|
$780
|
|
|
(16
|
)%
|
Accruing LHFI past due 90 days or more
|
|
$910
|
|
|
|
$1,057
|
|
|
(14
|
)%
|
Accruing LHFS past due 90 days or more
|
1
|
|
|
1
|
|
|
—
|
|
||
TDRs:
|
|
|
|
|
|
|||||
Accruing restructured loans
|
|
$2,576
|
|
|
|
$2,592
|
|
|
(1
|
)%
|
Nonaccruing restructured loans
1
|
185
|
|
|
273
|
|
|
(32
|
)
|
||
Ratios:
|
|
|
|
|
|
|||||
NPLs to period-end LHFI
|
0.36
|
%
|
|
0.48
|
%
|
|
(25
|
)%
|
||
NPAs to period-end LHFI, OREO, other repossessed assets, and nonperforming LHFS
|
0.49
|
|
|
0.59
|
|
|
(17
|
)
|
Selected Residential TDR Data
|
|
|
|
|
|
|
|
|
|
|
Table 11
|
|
|||||||||||
|
June 30, 2015
|
||||||||||||||||||||||
|
Accruing TDRs
|
|
Nonaccruing TDRs
|
||||||||||||||||||||
(Dollars in millions)
|
Current
|
|
Delinquent
1
|
|
Total
|
|
Current
|
|
Delinquent
1
|
|
Total
|
||||||||||||
Rate reduction
|
|
$888
|
|
|
|
$60
|
|
|
|
$948
|
|
|
|
$14
|
|
|
|
$31
|
|
|
|
$45
|
|
Term extension
|
9
|
|
|
4
|
|
|
13
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Rate reduction and term extension
|
1,172
|
|
|
89
|
|
|
1,261
|
|
|
16
|
|
|
45
|
|
|
61
|
|
||||||
Other
2
|
166
|
|
|
11
|
|
|
177
|
|
|
8
|
|
|
18
|
|
|
26
|
|
||||||
Total
|
|
$2,235
|
|
|
|
$164
|
|
|
|
$2,399
|
|
|
|
$38
|
|
|
|
$95
|
|
|
|
$133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2014
|
||||||||||||||||||||||
|
Accruing TDRs
|
|
Nonaccruing TDRs
|
||||||||||||||||||||
(Dollars in millions)
|
Current
|
|
Delinquent
1
|
|
Total
|
|
Current
|
|
Delinquent
1
|
|
Total
|
||||||||||||
Rate reduction
|
|
$784
|
|
|
|
$69
|
|
|
|
$853
|
|
|
|
$16
|
|
|
|
$40
|
|
|
|
$56
|
|
Term extension
|
13
|
|
|
4
|
|
|
17
|
|
|
1
|
|
|
1
|
|
|
2
|
|
||||||
Rate reduction and term extension
|
1,251
|
|
|
103
|
|
|
1,354
|
|
|
30
|
|
|
68
|
|
|
98
|
|
||||||
Other
2
|
173
|
|
|
11
|
|
|
184
|
|
|
12
|
|
|
26
|
|
|
38
|
|
||||||
Total
|
|
$2,221
|
|
|
|
$187
|
|
|
|
$2,408
|
|
|
|
$59
|
|
|
|
$135
|
|
|
|
$194
|
|
Securities Available for Sale
|
|
|
|
|
|
|
Table 12
|
|
|||||||
|
June 30, 2015
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Treasury securities
|
|
$2,905
|
|
|
|
$16
|
|
|
|
$8
|
|
|
|
$2,913
|
|
Federal agency securities
|
466
|
|
|
13
|
|
|
2
|
|
|
477
|
|
||||
U.S. states and political subdivisions
|
178
|
|
|
6
|
|
|
—
|
|
|
184
|
|
||||
MBS - agency
|
22,431
|
|
|
461
|
|
|
159
|
|
|
22,733
|
|
||||
MBS - private
|
110
|
|
|
2
|
|
|
—
|
|
|
112
|
|
||||
ABS
|
15
|
|
|
2
|
|
|
—
|
|
|
17
|
|
||||
Corporate and other debt securities
|
35
|
|
|
2
|
|
|
—
|
|
|
37
|
|
||||
Other equity securities
1
|
639
|
|
|
1
|
|
|
—
|
|
|
640
|
|
||||
Total securities AFS
|
|
$26,779
|
|
|
|
$503
|
|
|
|
$169
|
|
|
|
$27,113
|
|
|
December 31, 2014
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Treasury securities
|
|
$1,913
|
|
|
|
$9
|
|
|
|
$1
|
|
|
|
$1,921
|
|
Federal agency securities
|
471
|
|
|
15
|
|
|
2
|
|
|
484
|
|
||||
U.S. states and political subdivisions
|
200
|
|
|
9
|
|
|
—
|
|
|
209
|
|
||||
MBS - agency
|
22,573
|
|
|
558
|
|
|
83
|
|
|
23,048
|
|
||||
MBS - private
|
122
|
|
|
2
|
|
|
1
|
|
|
123
|
|
||||
ABS
|
19
|
|
|
2
|
|
|
—
|
|
|
21
|
|
||||
Corporate and other debt securities
|
38
|
|
|
3
|
|
|
—
|
|
|
41
|
|
||||
Other equity securities
1
|
921
|
|
|
2
|
|
|
—
|
|
|
923
|
|
||||
Total securities AFS
|
|
$26,257
|
|
|
|
$600
|
|
|
|
$87
|
|
|
|
$26,770
|
|
BORROWINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Short-Term Borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 13
|
|
|||||||||||||
|
June 30, 2015
|
|
Three Months Ended June 30, 2015
|
|
Six Months Ended June 30, 2015
|
|||||||||||||||||||||||
|
Balance
|
|
Rate
|
|
Daily Average
|
|
Maximum
Outstanding at
any Month-End
|
|
Daily Average
|
|
Maximum
Outstanding at
any Month-End
|
|||||||||||||||||
(Dollars in millions)
|
|
Balance
|
|
Rate
|
|
|
Balance
|
|
Rate
|
|
||||||||||||||||||
Funds purchased
1
|
|
$1,011
|
|
|
0.08
|
%
|
|
|
$710
|
|
|
0.10
|
%
|
|
|
$1,011
|
|
|
|
$874
|
|
|
0.10
|
%
|
|
|
$1,299
|
|
Securities sold under agreements to repurchase
1
|
1,858
|
|
|
0.26
|
|
|
1,827
|
|
|
0.20
|
|
|
1,858
|
|
|
1,874
|
|
|
0.20
|
|
|
1,896
|
|
|||||
Other short-term borrowings
|
3,248
|
|
|
0.18
|
|
|
1,582
|
|
|
0.14
|
|
|
3,248
|
|
|
2,635
|
|
|
0.17
|
|
|
4,426
|
|
|||||
Total
|
|
$6,117
|
|
|
|
|
|
$4,119
|
|
|
|
|
|
|
|
$5,383
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
June 30, 2014
|
|
Three Months Ended June 30, 2014
|
|
Six Months Ended June 30, 2014
|
|||||||||||||||||||||||
|
Balance
|
|
Rate
|
|
Daily Average
|
|
Maximum
Outstanding at
any Month-End
|
|
Daily Average
|
|
Maximum
Outstanding at
any Month-End
|
|||||||||||||||||
(Dollars in millions)
|
|
Balance
|
|
Rate
|
|
|
Balance
|
|
Rate
|
|
||||||||||||||||||
Funds purchased
1
|
|
$1,053
|
|
|
0.09
|
%
|
|
|
$825
|
|
|
0.09
|
%
|
|
|
$1,078
|
|
|
|
$907
|
|
|
0.09
|
%
|
|
|
$1,375
|
|
Securities sold under agreements to repurchase
1
|
2,192
|
|
|
0.14
|
|
|
2,148
|
|
|
0.12
|
|
|
2,192
|
|
|
2,175
|
|
|
0.11
|
|
|
2,228
|
|
|||||
Other short-term borrowings
|
5,870
|
|
|
0.24
|
|
|
5,796
|
|
|
0.23
|
|
|
6,395
|
|
|
5,692
|
|
|
0.24
|
|
|
6,395
|
|
|||||
Total
|
|
$9,115
|
|
|
|
|
|
$8,769
|
|
|
|
|
|
|
|
$8,774
|
|
|
|
|
|
Regulatory Capital
|
Table 14
|
|
|
(Dollars in millions)
|
June 30, 2015
|
||
CET1
|
|
$16,036
|
|
Tier 1 capital
|
17,423
|
|
|
Total capital
|
20,439
|
|
|
RWA
|
161,436
|
|
|
Average total assets for leverage ratio
|
182,289
|
|
|
|
|
||
Risk-based ratios :
|
|
||
CET1
|
9.93
|
%
|
|
CET1 - fully phased-in
1
|
9.76
|
|
|
Tier 1 capital
|
10.79
|
|
|
Total capital
|
12.66
|
|
|
Leverage
|
9.56
|
|
|
Total shareholders’ equity to assets
|
12.30
|
|
|
|
|
||
(Dollars in millions)
|
December 31, 2014
2
|
||
Tier 1 capital
|
|
$17,554
|
|
Total capital
|
20,338
|
|
|
RWA
|
162,516
|
|
|
Average total assets for leverage ratio
|
182,186
|
|
|
|
|
||
Tier 1 common equity:
|
|
||
Tier 1 capital
|
|
$17,554
|
|
Less:
|
|
||
Qualifying trust preferred securities
|
627
|
|
|
Preferred stock
|
1,225
|
|
|
Minority interest
|
108
|
|
|
Tier 1 common equity
|
|
$15,594
|
|
|
|
||
Risk-based ratios :
|
|
||
Tier 1 common equity
|
9.60
|
%
|
|
Tier 1 capital
|
10.80
|
|
|
Total capital
|
12.51
|
|
|
Tier 1 leverage ratio
|
9.64
|
|
|
Total shareholders’ equity to assets
|
12.09
|
|
Value at Risk Profile
|
|
|
|
|
|
|
Table 17
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
VAR (1-day holding period):
|
|
|
|
|
|
|
|
||||||||
Period end
|
|
$3
|
|
|
|
$2
|
|
|
|
$3
|
|
|
|
$2
|
|
High
|
3
|
|
|
3
|
|
|
3
|
|
|
3
|
|
||||
Low
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
||||
Average
|
3
|
|
|
2
|
|
|
2
|
|
|
2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Stressed VAR (10-day holding period):
|
|||||||||||||||
Period end
|
|
$93
|
|
|
|
$37
|
|
|
|
$93
|
|
|
|
$37
|
|
High
|
104
|
|
|
75
|
|
|
104
|
|
|
75
|
|
||||
Low
|
52
|
|
|
22
|
|
|
24
|
|
|
18
|
|
||||
Average
|
73
|
|
|
36
|
|
|
62
|
|
|
29
|
|
||||
|
|
|
|
|
|
|
|
||||||||
(Dollars in millions)
|
|
|
|
|
June 30, 2015
|
|
June 30, 2014
|
||||||||
VAR by Risk Factor (1-day holding period):
|
|
|
|
|
|
|
|
||||||||
Equity risk
|
|
|
|
|
|
$1
|
|
|
|
$1
|
|
||||
Interest rate risk
|
|
|
|
|
2
|
|
|
1
|
|
||||||
Credit spread risk
|
|
|
|
|
2
|
|
|
2
|
|
||||||
VAR total (1-day diversified)
|
|
|
|
|
3
|
|
|
2
|
|
Debt Credit Ratings and Outlook
|
Table 18
|
||||
|
June 30, 2015
|
||||
|
Moody’s
|
|
S&P
|
|
Fitch
|
SunTrust Banks, Inc.:
|
|
|
|
|
|
Senior debt
|
Baa1
|
|
BBB+
|
|
BBB+
|
Preferred stock
|
Baa3
|
|
BB+
|
|
BB-
|
|
|
|
|
|
|
SunTrust Bank:
|
|
|
|
|
|
Long-term deposits
|
A1
|
|
A-
|
|
A-
|
Short-term deposits
|
P-1
|
|
A-2
|
|
F2
|
Senior debt
|
Baal
|
|
A-
|
|
BBB+
|
Outlook
|
Stable
|
|
Stable
|
|
Positive
|
Contingency Liquidity Sources
|
|
|
|
|
|
Table 19
|
|
||||||||
|
|
|
|
|
|
||||||||||
|
As of
|
|
Average for the Six Months Ended ¹
|
||||||||||||
(Dollars in billions)
|
June 30, 2015
|
|
June 30, 2014
|
|
June 30, 2015
|
|
June 30, 2014
|
||||||||
Excess reserves
|
|
$3.6
|
|
|
|
$2.8
|
|
|
|
$3.8
|
|
|
|
$3.4
|
|
Free and liquid investment portfolio securities
|
23.0
|
|
|
11.7
|
|
|
22.8
|
|
|
11.6
|
|
||||
FHLB borrowing capacity
|
15.2
|
|
|
14.5
|
|
|
13.3
|
|
|
14.2
|
|
||||
Discount window borrowing capacity
|
17.2
|
|
|
20.1
|
|
|
17.6
|
|
|
20.2
|
|
||||
Total
|
|
$59.0
|
|
|
|
$49.1
|
|
|
|
$57.5
|
|
|
|
$49.4
|
|
Unfunded Lending Commitments
|
|
|
|
|
|
Table 20
|
|
||||||||
|
As of
|
|
Average for the Three Months Ended
|
||||||||||||
(Dollars in millions)
|
June 30, 2015
|
|
December 31, 2014
|
|
June 30, 2015
|
|
June 30, 2014
|
||||||||
Unused lines of credit:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
|
$54,133
|
|
|
|
$50,122
|
|
|
|
$52,642
|
|
|
|
$46,118
|
|
Mortgage commitments
1
|
4,870
|
|
|
3,259
|
|
|
5,012
|
|
|
3,110
|
|
||||
Home equity lines
|
10,757
|
|
|
10,858
|
|
|
10,835
|
|
|
11,025
|
|
||||
CRE
|
3,652
|
|
|
3,302
|
|
|
3,522
|
|
|
2,523
|
|
||||
Credit card
|
7,522
|
|
|
6,675
|
|
|
7,293
|
|
|
5,374
|
|
||||
Total unused lines of credit
|
|
$80,934
|
|
|
|
$74,216
|
|
|
|
$79,304
|
|
|
|
$68,150
|
|
|
|
|
|
|
|
|
|
||||||||
Letters of credit:
|
|
|
|
|
|
|
|
||||||||
Financial standby
|
|
$2,819
|
|
|
|
$2,917
|
|
|
|
$2,843
|
|
|
|
$3,203
|
|
Performance standby
|
131
|
|
|
121
|
|
|
129
|
|
|
62
|
|
||||
Commercial
|
33
|
|
|
32
|
|
|
36
|
|
|
26
|
|
||||
Total letters of credit
|
|
$2,983
|
|
|
|
$3,070
|
|
|
|
$3,008
|
|
|
|
$3,291
|
|
Net Income/(Loss) by Business Segment
|
|
|
|
|
|
|
Table 21
|
|
|||||||
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Consumer Banking and Private Wealth Management
|
|
$208
|
|
|
|
$165
|
|
|
|
$357
|
|
|
|
$321
|
|
Wholesale Banking
|
262
|
|
|
238
|
|
|
509
|
|
|
411
|
|
||||
Mortgage Banking
|
57
|
|
|
(82
|
)
|
|
112
|
|
|
(66
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Corporate Other
|
22
|
|
|
117
|
|
|
63
|
|
|
196
|
|
||||
Reconciling Items
1
|
(66
|
)
|
|
(39
|
)
|
|
(129
|
)
|
|
(58
|
)
|
||||
Total Corporate Other
|
(44
|
)
|
|
78
|
|
|
(66
|
)
|
|
138
|
|
||||
Consolidated Net Income
|
|
$483
|
|
|
|
$399
|
|
|
|
$912
|
|
|
|
$804
|
|
Average Loans and Deposits by Business Segment
|
|
|
|
|
|
|
Table 22
|
|
|||||||
|
Three Months Ended June 30
|
||||||||||||||
|
Average Loans
|
|
Average Consumer
and Commercial Deposits
|
||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Consumer Banking and Private Wealth Management
|
|
$40,337
|
|
|
|
$41,517
|
|
|
|
$91,287
|
|
|
|
$85,154
|
|
Wholesale Banking
|
67,645
|
|
|
61,366
|
|
|
48,587
|
|
|
43,063
|
|
||||
Mortgage Banking
|
24,793
|
|
|
27,803
|
|
|
2,980
|
|
|
2,220
|
|
||||
Corporate Other
|
54
|
|
|
48
|
|
|
(3
|
)
|
|
35
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30
|
||||||||||||||
|
Average Loans
|
|
Average Consumer
and Commercial Deposits
|
||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Consumer Banking and Private Wealth Management
|
|
$40,727
|
|
|
|
$41,387
|
|
|
|
$90,927
|
|
|
|
$84,681
|
|
Wholesale Banking
|
67,691
|
|
|
60,159
|
|
|
48,051
|
|
|
42,683
|
|
||||
Mortgage Banking
|
24,617
|
|
|
28,043
|
|
|
2,671
|
|
|
2,054
|
|
||||
Corporate Other
|
47
|
|
|
46
|
|
|
21
|
|
|
22
|
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4.
|
CONTROLS AND PROCEDURES
|
Item 1.
|
LEGAL PROCEEDINGS
|
Item 1A.
|
RISK FACTORS
|
Item 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
|
|
|
|
|
|
Table 23
|
|
Common Stock
|
||||||
|
Total number of
shares purchased
1
|
|
Average price
paid per share
|
|
Number of shares
purchased as part of
publicly announced
plans or programs
|
|
Approximate dollar
value of shares
that may yet be
purchased under the
plans or programs
at period end
($ in millions)
|
January 1 - 31
|
1,298,650
|
|
$38.75
|
|
1,298,650
|
|
$122
|
February 1 - 28
|
918,400
|
|
41.20
|
|
918,400
|
|
84
|
March 1 - 31
|
655,800
|
|
41.17
|
|
655,800
|
|
—
|
Total during first quarter of 2015
|
2,872,850
|
|
40.08
|
|
2,872,850
|
|
—
|
|
|
|
|
|
|
|
|
April 1 - 30
|
4,212,832
|
|
41.54
|
|
4,212,832
|
|
700
|
May 1 - 31
|
—
|
|
—
|
|
—
|
|
700
|
June 1 - 30
|
—
|
|
—
|
|
—
|
|
700
|
Total during second quarter of 2015
|
4,212,832
|
|
41.54
|
|
4,212,832
|
|
700
|
|
|
|
|
|
|
|
|
Total year-to-date 2015
|
7,085,682
|
|
$40.95
|
|
7,085,682
|
|
$700
|
Item 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
Item 4.
|
MINE SAFETY DISCLOSURES
|
Item 5.
|
OTHER INFORMATION
|
Item 6.
|
EXHIBITS
|
Exhibit
|
|
Description
|
|
|
3.1
|
|
Amended and Restated Articles of Incorporation
of the Registrant, restated effective January 20, 2009, incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K filed January 22, 2009, as further amended by Articles of Amendment dated December 13, 2012, incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed December 20, 2012, and as further amended by Articles of Amendment dated November 6, 2014, incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed November 7, 2014.
|
|
*
|
|
|
|
|
|
3.2
|
|
Bylaws of the Registrant,
as amended and restated on August 8, 2011, incorporated by reference to Exhibit 3.2 to the Registrant's Quarterly Report on Form 10-Q filed August 9, 2011.
|
|
*
|
|
|
|
|
|
10.1
|
|
Form of Restricted Stock Unit Award Agreement,
Type I, three-year cliff.
|
|
**
|
|
|
|
|
|
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.
|
|
**
|
|
|
|
|
|
31.2
|
|
Certification of Corporate Executive Vice President and Chief Financial Officer
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
**
|
|
|
|
|
|
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.
|
|
**
|
|
|
|
|
|
32.2
|
|
Certification of Corporate Executive Vice President and Chief Financial Officer
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
**
|
|
|
|
|
|
101.1
|
|
Interactive Data File.
|
|
**
|
*
|
incorporated by reference
|
**
|
filed herewith
|
|
|
|
|
|
SUNTRUST BANKS, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
Dated:
|
August 5, 2015
|
|
By: /s/ Thomas E. Panther
|
|
|
|
Thomas E. Panther,
Senior Vice President, Director of Corporate Finance and Controller
(on behalf of the Registrant and as Principal Accounting Officer)
|
|
|
|
|
Name of Grantee
|
Name
|
|
|
Restricted Stock Units
|
Number of Units
|
|
|
Grant Date
|
Grant Date
|
|
(i)
|
No Competitive Activity
. Absent the Committee's written consent, Grantee shall not, during the Restricted Period and within the Territory, engage in any Managerial Responsibilities for or on behalf of any corporation, partnership, venture, or other business entity that engages directly or indirectly in the Financial Services Business whether as an owner, partner, employee, agent, consultant, advisor, contractor, salesman, stockholder, investor, officer or director; provided, however, that Grantee may own up to five percent (5%) of the stock of a publicly traded company that engages in the Financial Services Business so long as Grantee is only a passive investor and is not actively involved in such company in any way.
|
|
(ii)
|
No Solicitation of Customers or Clients
. Grantee shall not during the Restricted Period solicit any customer or client of SunTrust or any SunTrust Affiliate with whom Grantee had any material business contact during the two (2) year period which ends on the date Grantee's employment by SunTrust or a SunTrust Affiliate terminates for the purpose of competing with SunTrust or any SunTrust Affiliate for any reason, either individually, or as an owner, partner, employee, agent, consultant, advisor, contractor, salesman, stockholder, investor, officer or director of, or service provider to, any corporation, partnership, venture or other business entity.
|
|
(iii)
|
Anti-pirating of Employees
. Absent the Compensation Committee's written consent, Grantee will not during the Restricted Period solicit to employ on Grantee's own behalf or on behalf of any other person, firm or corporation, any person who was employed by SunTrust or a SunTrust Affiliate during the term of Grantee's employment by SunTrust or a SunTrust Affiliate (whether or not such employee would commit a breach of contract), and who has not ceased to be employed by SunTrust or a SunTrust Affiliate for a period of at least one (1) year.
|
|
(iv)
|
Protection of Trade Secrets and Confidential Information.
Grantee hereby agrees that Grantee will hold in a fiduciary capacity for the benefit of SunTrust and each SunTrust Affiliate, and will not directly or indirectly use or disclose, any Trade Secret that Grantee may have acquired during the term of Grantee's employment by SunTrust or a SunTrust Affiliate for so long as such information remains a Trade Secret. In addition Grantee agrees that during the Restricted Period Grantee will hold in a fiduciary capacity for the benefit of SunTrust and each SunTrust Affiliate, and will not directly or indirectly use or disclose, any Confidential or Proprietary Information that Grantee may have acquired (whether or not developed or compiled by Grantee and whether or not Grantee was authorized to have access to such information) during the term of, in the course of, or as a result of Grantee's employment by SunTrust or a SunTrust Affiliate.
|
|
(v)
|
Non-Disparagement.
Grantee agrees not to knowingly make false or materially misleading statements or disparaging comments about SunTrust or any SunTrust Affiliate during the Restricted Period.
|
|
(vi)
|
Reasonable and Necessary Restrictions.
Grantee acknowledges that the restrictions, prohibitions and other provisions set forth in this Unit Agreement, including without limitation the Territory and Restricted Period, are reasonable, fair and equitable in scope, terms and duration; are necessary to protect the legitimate business interests of SunTrust; and are a material inducement to SunTrust to enter into this Unit Agreement. Grantee covenants that Grantee will not challenge the enforceability of this Unit Agreement nor will Grantee raise any equitable defense to its enforcement.
|
|
(vii)
|
Additional Definitions
. (A) The term “
Confidential or Proprietary Information
” for purposes of this Unit Agreement shall mean any secret, confidential, or proprietary information of SunTrust or a SunTrust Affiliate (other than a Trade Secret) that has not become generally available to the public by the act of one who has the right to disclose such information without violating any right of SunTrust or a SunTrust Affiliate. (B) The term “
Financial Services Business
” for purposes of this Unit Agreement shall mean the business of banking, including deposit, credit, trust and investment services, mortgage banking, asset management, and brokerage and investment banking services. (C) The term “
Managerial Responsibilities
” for purposes of this Unit Agreement shall mean managerial and supervisory responsibilities and duties that are substantially the same as those Grantee is performing for SunTrust or a SunTrust Affiliate on the date of this Unit Agreement. (D) The term “SunTrust Affiliate” for purposes of this Unit Agreement shall mean any corporation which is a subsidiary corporation (within the meaning of Section 424(f) of the Code) of SunTrust except a corporation which has subsidiary corporation status under Section 424(f) of the Code exclusively as a result of SunTrust or a SunTrust Affiliate holding stock in such corporation as a fiduciary with respect to any trust, estate, conservatorship, guardianship or agency. (E) The term “Territory” for purposes of this Unit Agreement shall mean the states of Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia, which are the states and Territories in which SunTrust has significant operations on the date of this Unit Agreement. (F) “Trade Secret” for purposes of Unit Agreement shall mean information, including, but not limited to, technical or nontechnical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, or a list of actual or potential customers or suppliers that: (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from it is disclosure or use, and (ii) is the subject of reasonable efforts by SunTrust or a SunTrust Affiliate to maintain its secrecy.
|
(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.
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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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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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(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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