Georgia
|
|
58-1575035
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Item 1.
|
FINANCIAL STATEMENTS (UNAUDITED)
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited)
|
2016
|
|
2015
|
||||
Interest Income
|
|
|
|
||||
Interest and fees on loans
|
|
$1,203
|
|
|
|
$1,091
|
|
Interest and fees on loans held for sale
|
19
|
|
|
22
|
|
||
Interest and dividends on securities available for sale
|
163
|
|
|
140
|
|
||
Trading account interest and other
|
26
|
|
|
19
|
|
||
Total interest income
|
1,411
|
|
|
1,272
|
|
||
Interest Expense
|
|
|
|
||||
Interest on deposits
|
59
|
|
|
56
|
|
||
Interest on long-term debt
|
59
|
|
|
68
|
|
||
Interest on other borrowings
|
11
|
|
|
8
|
|
||
Total interest expense
|
129
|
|
|
132
|
|
||
Net interest income
|
1,282
|
|
|
1,140
|
|
||
Provision for credit losses
|
101
|
|
|
55
|
|
||
Net interest income after provision for credit losses
|
1,181
|
|
|
1,085
|
|
||
Noninterest Income
|
|
|
|
||||
Service charges on deposit accounts
|
153
|
|
|
151
|
|
||
Other charges and fees
|
93
|
|
|
89
|
|
||
Card fees
|
78
|
|
|
80
|
|
||
Investment banking income
|
98
|
|
|
97
|
|
||
Trading income
|
55
|
|
|
55
|
|
||
Trust and investment management income
|
75
|
|
|
84
|
|
||
Retail investment services
|
69
|
|
|
72
|
|
||
Mortgage servicing related income
|
62
|
|
|
43
|
|
||
Mortgage production related income
|
60
|
|
|
83
|
|
||
Net securities gains/(losses)
|
—
|
|
|
—
|
|
||
Other noninterest income
|
38
|
|
|
63
|
|
||
Total noninterest income
|
781
|
|
|
817
|
|
||
Noninterest Expense
|
|
|
|
||||
Employee compensation
|
639
|
|
|
633
|
|
||
Employee benefits
|
135
|
|
|
138
|
|
||
Outside processing and software
|
198
|
|
|
189
|
|
||
Net occupancy expense
|
85
|
|
|
84
|
|
||
Marketing and customer development
|
44
|
|
|
27
|
|
||
Equipment expense
|
40
|
|
|
40
|
|
||
Regulatory assessments
|
36
|
|
|
37
|
|
||
Operating losses
|
24
|
|
|
14
|
|
||
Amortization
|
10
|
|
|
7
|
|
||
Other noninterest expense
|
107
|
|
|
111
|
|
||
Total noninterest expense
|
1,318
|
|
|
1,280
|
|
||
Income before provision for income taxes
|
644
|
|
|
622
|
|
||
Provision for income taxes
|
195
|
|
|
191
|
|
||
Net income including income attributable to noncontrolling interest
|
449
|
|
|
431
|
|
||
Net income attributable to noncontrolling interest
|
2
|
|
|
2
|
|
||
Net income
|
|
$447
|
|
|
|
$429
|
|
Net income available to common shareholders
|
|
$430
|
|
|
|
$411
|
|
|
|
|
|
||||
Net income per average common share:
|
|
|
|
||||
Diluted
|
|
$0.84
|
|
|
|
$0.78
|
|
Basic
|
0.85
|
|
|
0.79
|
|
||
Dividends declared per common share
|
0.24
|
|
|
0.20
|
|
||
Average common shares - diluted
|
509,931
|
|
|
526,837
|
|
||
Average common shares - basic
|
505,482
|
|
|
521,020
|
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions) (Unaudited)
|
2016
|
|
2015
|
||||
Net income
|
|
$447
|
|
|
|
$429
|
|
Components of other comprehensive income:
|
|
|
|
||||
Change in net unrealized gains on securities available for sale, net of tax of $165 and $53, respectively
|
279
|
|
|
86
|
|
||
Change in net unrealized gains on derivative instruments, net of tax of $89 and $27, respectively
|
150
|
|
|
44
|
|
||
Change in credit risk adjustment, net of tax of ($1) and $0, respectively
1
|
(2
|
)
|
|
—
|
|
||
Change related to employee benefit plans, net of tax of $35 and ($43), respectively
|
59
|
|
|
(73
|
)
|
||
Total other comprehensive income, net of tax
|
486
|
|
|
57
|
|
||
Total comprehensive income
|
|
$933
|
|
|
|
$486
|
|
|
March 31,
|
|
December 31,
|
||||
(Dollars in millions and shares in thousands, except per share data)
|
2016
|
|
2015
|
||||
Assets
|
(Unaudited)
|
|
|
||||
Cash and due from banks
|
|
$3,074
|
|
|
|
$4,299
|
|
Federal funds sold and securities borrowed or purchased under agreements to resell
|
1,229
|
|
|
1,277
|
|
||
Interest-bearing deposits in other banks
|
24
|
|
|
23
|
|
||
Cash and cash equivalents
|
4,327
|
|
|
5,599
|
|
||
Trading assets and derivative instruments
1
|
7,050
|
|
|
6,119
|
|
||
Securities available for sale
|
28,188
|
|
|
27,825
|
|
||
Loans held for sale ($1,593 and $1,494 at fair value at March 31, 2016 and December 31, 2015, respectively)
|
1,911
|
|
|
1,838
|
|
||
Loans
2
($255 and $257 at fair value at March 31, 2016 and December 31, 2015, respectively)
|
139,746
|
|
|
136,442
|
|
||
Allowance for loan and lease losses
|
(1,770
|
)
|
|
(1,752
|
)
|
||
Net loans
|
137,976
|
|
|
134,690
|
|
||
Premises and equipment, net
|
1,481
|
|
|
1,502
|
|
||
Goodwill
|
6,337
|
|
|
6,337
|
|
||
Other intangible assets (MSRs at fair value: $1,182 and $1,307 at March 31, 2016 and December 31, 2015, respectively)
|
1,198
|
|
|
1,325
|
|
||
Other assets
|
5,690
|
|
|
5,582
|
|
||
Total assets
|
|
$194,158
|
|
|
|
$190,817
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Noninterest-bearing deposits
|
|
$42,256
|
|
|
|
$42,272
|
|
Interest-bearing deposits
|
109,905
|
|
|
107,558
|
|
||
Total deposits
|
152,161
|
|
|
149,830
|
|
||
Funds purchased
|
1,497
|
|
|
1,949
|
|
||
Securities sold under agreements to repurchase
|
1,774
|
|
|
1,654
|
|
||
Other short-term borrowings
|
1,673
|
|
|
1,024
|
|
||
Long-term debt
3
($975 and $973 at fair value at March 31, 2016 and December 31, 2015, respectively)
|
8,514
|
|
|
8,462
|
|
||
Trading liabilities and derivative instruments
|
1,536
|
|
|
1,263
|
|
||
Other liabilities
|
2,950
|
|
|
3,198
|
|
||
Total liabilities
|
170,105
|
|
|
167,380
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Preferred stock, no par value
|
1,225
|
|
|
1,225
|
|
||
Common stock, $1.00 par value
|
550
|
|
|
550
|
|
||
Additional paid-in capital
|
9,017
|
|
|
9,094
|
|
||
Retained earnings
|
14,999
|
|
|
14,686
|
|
||
Treasury stock, at cost, and other
4
|
(1,759
|
)
|
|
(1,658
|
)
|
||
Accumulated other comprehensive income/(loss), net of tax
|
21
|
|
|
(460
|
)
|
||
Total shareholders’ equity
|
24,053
|
|
|
23,437
|
|
||
Total liabilities and shareholders’ equity
|
|
$194,158
|
|
|
|
$190,817
|
|
|
|
|
|
||||
Common shares outstanding
5
|
505,443
|
|
|
508,712
|
|
||
Common shares authorized
|
750,000
|
|
|
750,000
|
|
||
Preferred shares outstanding
|
12
|
|
|
12
|
|
||
Preferred shares authorized
|
50,000
|
|
|
50,000
|
|
||
Treasury shares of common stock
|
44,478
|
|
|
41,209
|
|
||
|
|
|
|
||||
1
Includes trading securities pledged as collateral where counterparties have the right to sell or repledge the collateral
|
|
$1,484
|
|
|
|
$1,377
|
|
2
Includes loans of consolidated VIEs
|
237
|
|
|
246
|
|
||
3
Includes debt of consolidated VIEs
|
250
|
|
|
259
|
|
||
4
Includes noncontrolling interest
|
101
|
|
|
108
|
|
||
5
Includes restricted shares
|
80
|
|
|
1,334
|
|
(Dollars and shares in millions, except per share data) (Unaudited)
|
Preferred Stock
|
|
Common Shares Outstanding
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Stock
and Other
1
|
|
Accumulated Other Comprehensive Income/(Loss)
|
|
Total
|
|||||||||||||||
Balance, January 1, 2015
|
|
$1,225
|
|
|
525
|
|
|
|
$550
|
|
|
|
$9,089
|
|
|
|
$13,295
|
|
|
|
($1,032
|
)
|
|
|
($122
|
)
|
|
|
$23,005
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
429
|
|
|
—
|
|
|
—
|
|
|
429
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
57
|
|
|||||||
Change in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||||
Common stock dividends, $0.20 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(105
|
)
|
|
—
|
|
|
—
|
|
|
(105
|
)
|
|||||||
Preferred stock dividends
2
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|||||||
Repurchase of common stock
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(115
|
)
|
|
—
|
|
|
(115
|
)
|
|||||||
Exercise of stock options and stock compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
11
|
|
|
—
|
|
|
1
|
|
|||||||
Restricted stock activity
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(2
|
)
|
|
7
|
|
|
—
|
|
|
—
|
|
|||||||
Amortization of restricted stock compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||||
Issuance of stock for employee benefit plans and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||||
Balance, March 31, 2015
|
|
$1,225
|
|
|
522
|
|
|
|
$550
|
|
|
|
$9,074
|
|
|
|
$13,600
|
|
|
|
($1,124
|
)
|
|
|
($65
|
)
|
|
|
$23,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, January 1, 2016
|
|
$1,225
|
|
|
509
|
|
|
|
$550
|
|
|
|
$9,094
|
|
|
|
$14,686
|
|
|
|
($1,658
|
)
|
|
|
($460
|
)
|
|
|
$23,437
|
|
Cumulative effect of credit risk adjustment
3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
447
|
|
|
—
|
|
|
—
|
|
|
447
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
486
|
|
|
486
|
|
|||||||
Change in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||||||
Common stock dividends, $0.24 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(121
|
)
|
|
—
|
|
|
—
|
|
|
(121
|
)
|
|||||||
Preferred stock dividends
2
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|||||||
Repurchase of common stock
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(151
|
)
|
|
—
|
|
|
(151
|
)
|
|||||||
Repurchase of common stock warrants
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|||||||
Exercise of stock options and stock compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(1
|
)
|
|||||||
Restricted stock activity
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
(1
|
)
|
|
53
|
|
|
—
|
|
|
2
|
|
|||||||
Amortization of restricted stock compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||
Balance, March 31, 2016
|
|
$1,225
|
|
|
505
|
|
|
|
$550
|
|
|
|
$9,017
|
|
|
|
$14,999
|
|
|
|
($1,759
|
)
|
|
|
$21
|
|
|
|
$24,053
|
|
SunTrust Banks, Inc.
Consolidated Statements of Cash Flows
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions) (Unaudited)
|
2016
|
|
2015
|
||||
Cash Flows from Operating Activities
|
|
|
|
||||
Net income including income attributable to noncontrolling interest
|
|
$449
|
|
|
|
$431
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
||||
Depreciation, amortization, and accretion
|
171
|
|
|
201
|
|
||
Origination of mortgage servicing rights
|
(46
|
)
|
|
(46
|
)
|
||
Provisions for credit losses and foreclosed property
|
103
|
|
|
58
|
|
||
Stock-based compensation
|
25
|
|
|
19
|
|
||
Excess tax benefits from stock-based compensation
|
(8
|
)
|
|
(16
|
)
|
||
Net gain on sale of loans held for sale, loans, and other assets
|
(84
|
)
|
|
(102
|
)
|
||
Net increase in loans held for sale
|
(4
|
)
|
|
(108
|
)
|
||
Net increase in trading assets
|
(689
|
)
|
|
(322
|
)
|
||
Net decrease/(increase) in other assets
|
138
|
|
|
(340
|
)
|
||
Net (decrease)/increase in other liabilities
|
(306
|
)
|
|
15
|
|
||
Net cash used in operating activities
|
(251
|
)
|
|
(210
|
)
|
||
|
|
|
|
||||
Cash Flows from Investing Activities
|
|
|
|
||||
Proceeds from maturities, calls, and paydowns of securities available for sale
|
1,057
|
|
|
1,421
|
|
||
Proceeds from sales of securities available for sale
|
—
|
|
|
10
|
|
||
Purchases of securities available for sale
|
(1,008
|
)
|
|
(1,344
|
)
|
||
Net (increase)/decrease in loans, including purchases of loans
|
(3,438
|
)
|
|
212
|
|
||
Proceeds from sales of loans
|
18
|
|
|
411
|
|
||
Purchases of mortgage servicing rights
|
(75
|
)
|
|
(64
|
)
|
||
Capital expenditures
|
(24
|
)
|
|
(33
|
)
|
||
Payments related to acquisitions, including contingent consideration
|
(23
|
)
|
|
(10
|
)
|
||
Proceeds from the sale of other real estate owned and other assets
|
34
|
|
|
86
|
|
||
Net cash (used in)/provided by investing activities
|
(3,459
|
)
|
|
689
|
|
||
|
|
|
|
||||
Cash Flows from Financing Activities
|
|
|
|
||||
Net increase in total deposits
|
2,331
|
|
|
3,856
|
|
||
Net increase/(decrease) in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings
|
317
|
|
|
(4,604
|
)
|
||
Proceeds from long-term debt
|
1,105
|
|
|
—
|
|
||
Repayments of long-term debt
|
(1,019
|
)
|
|
(14
|
)
|
||
Repurchase of common stock
|
(151
|
)
|
|
(115
|
)
|
||
Repurchase of common stock warrants
|
(24
|
)
|
|
—
|
|
||
Common and preferred dividends paid
|
(130
|
)
|
|
(115
|
)
|
||
Incentive compensation related activity
|
9
|
|
|
22
|
|
||
Net cash provided by/(used in) financing activities
|
2,438
|
|
|
(970
|
)
|
||
Net decrease in cash and cash equivalents
|
(1,272
|
)
|
|
(491
|
)
|
||
Cash and cash equivalents at beginning of period
|
5,599
|
|
|
8,229
|
|
||
Cash and cash equivalents at end of period
|
|
$4,327
|
|
|
|
$7,738
|
|
|
|
|
|
||||
Supplemental Disclosures:
|
|
|
|
||||
Loans transferred from loans held for sale to loans
|
|
$5
|
|
|
|
$11
|
|
Loans transferred from loans to loans held for sale
|
55
|
|
|
512
|
|
||
Loans transferred from loans and loans held for sale to other real estate owned
|
16
|
|
|
14
|
|
||
Non-cash impact of debt assumed by purchaser in lease sale
|
26
|
|
|
21
|
|
Standard
|
Description
|
Required Date of Adoption
|
Effect on the Financial Statements or Other Significant Matters
|
Standards Adopted (or partially adopted) in 2016
|
|
|
|
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.
|
January 1, 2016
|
The Company adopted this ASU on a modified retrospective basis beginning January 1, 2016. The adoption of this standard had no impact to the Consolidated Financial Statements and related disclosures during the first quarter of 2016.
|
ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities
|
The ASU amends ASC Topic 825,
Financial Instruments - Overall
, and addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require investments in equity securities to be measured at fair value through net income, unless they qualify for a practicability exception, and require fair value changes arising from changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option to be recognized in other comprehensive income. With the exception of disclosure requirements that will be adopted prospectively, the ASU must be adopted on a modified retrospective basis.
|
January 1, 2018
Early adoption is permitted beginning January 1, 2016 or 2017 for the provision related to changes in instrument-specific credit risk for financial liabilities under the fair value option.
|
The Company early adopted the provision related to changes in instrument-specific credit risk beginning January 1, 2016, which resulted in an immaterial, cumulative effect adjustment from retained earnings to AOCI. The Company is evaluating the impact of the remaining provisions of this ASU on the Consolidated Financial Statements and related disclosures; however, the impact is not expected to be material.
|
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 is permitted beginning January 1, 2017.
|
The Company is evaluating the alternative methods of adoption and the anticipated effects on the Consolidated Financial Statements and related disclosures.
|
ASU 2016-02, Leases
|
The ASU creates ASC Topic 842,
Leases
, and supersedes Topic 840,
Leases
. Topic 842 requires lessees to recognize the right-of-use assets and liabilities that arise from leases, with the exception of short-term leases. The ASU does not make significant changes to lessor accounting; however, there were certain improvements made to align lessor accounting with the lessee accounting model and Topic 606,
Revenue from Contracts with Customers
. There are several new qualitative and quantitative disclosures required. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach.
|
January 1, 2019
Early adoption is permitted.
|
The adoption of this ASU will result in an increase to the Consolidated Balance Sheets for right-of-use assets and lease liabilities associated with operating leases in which the Company is the lessee. The Company is evaluating the other effects of adoption on the Consolidated Financial Statements and related disclosures.
|
ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting
|
The ASU amends ASC Topic 323,
Investments - Equity Method and Joint Ventures
, to eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. In addition, the ASU requires that an entity that has an AFS equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in AOCI at the date the investment becomes qualified for use of the equity method. The ASU is to be applied on a prospective basis.
|
January 1, 2017
Early application is permitted.
|
This ASU will not impact the Consolidated Financial Statements and related disclosures until there is an applicable increase in investment or change in influence that results in a transition to the equity method.
|
ASU 2016-09, Improvements to Employee Share-Based Payment Accounting
|
The ASU amends ASC Topic 718,
Compensation - Stock Compensation
, to simplify and modify several aspects of accounting for share-based payment arrangements, primarily involving income tax consequences, the classification of awards as either equity or liabilities, and the related classification on the statement of cash flows. Adoption methods are specific to the component of the ASU ranging from a retrospective and modified retrospective basis to a prospective basis.
|
January 1, 2017
Early adoption is permitted.
|
The Company is evaluating how the adoption of this ASU will impact the Consolidated Financial Statements and related disclosures.
|
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
||||
Fed funds sold
|
|
$13
|
|
|
|
$38
|
|
Securities borrowed
|
333
|
|
|
277
|
|
||
Securities purchased under agreements to resell
|
883
|
|
|
962
|
|
||
Total Fed funds sold and securities borrowed or purchased under agreements to resell
|
|
$1,229
|
|
|
|
$1,277
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(Dollars in millions)
|
Overnight and Continuous
|
|
Up to 30 days
|
|
Total
|
|
Overnight and Continuous
|
|
Up to 30 days
|
|
Total
|
||||||||||||
U.S. Treasury securities
|
|
$202
|
|
|
|
$—
|
|
|
|
$202
|
|
|
|
$112
|
|
|
|
$—
|
|
|
|
$112
|
|
Federal agency securities
|
126
|
|
|
—
|
|
|
126
|
|
|
319
|
|
|
—
|
|
|
319
|
|
||||||
MBS - agency
|
968
|
|
|
—
|
|
|
968
|
|
|
837
|
|
|
23
|
|
|
860
|
|
||||||
CP
|
205
|
|
|
—
|
|
|
205
|
|
|
49
|
|
|
—
|
|
|
49
|
|
||||||
Corporate and other debt securities
|
178
|
|
|
95
|
|
|
273
|
|
|
242
|
|
|
72
|
|
|
314
|
|
||||||
Total securities sold under agreements to repurchase
|
|
$1,679
|
|
|
|
$95
|
|
|
|
$1,774
|
|
|
|
$1,559
|
|
|
|
$95
|
|
|
|
$1,654
|
|
(Dollars in millions)
|
Gross
Amount
|
|
Amount
Offset
|
|
Net Amount
Presented in
Consolidated
Balance Sheets
|
|
Held/Pledged Financial
Instruments
|
|
Net
Amount
|
||||||||||
March 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities borrowed or purchased under agreements to resell
|
|
$1,216
|
|
|
|
$—
|
|
|
|
$1,216
|
|
1
|
|
$1,206
|
|
|
|
$10
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities sold under agreements to repurchase
|
1,774
|
|
|
—
|
|
|
1,774
|
|
|
1,774
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities borrowed or purchased under agreements to resell
|
|
$1,239
|
|
|
|
$—
|
|
|
|
$1,239
|
|
1
|
|
$1,229
|
|
|
|
$10
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities sold under agreements to repurchase
|
1,654
|
|
|
—
|
|
|
1,654
|
|
|
1,654
|
|
|
—
|
|
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
||||
Trading Assets and Derivative Instruments:
|
|
|
|
||||
U.S. Treasury securities
|
|
$707
|
|
|
|
$538
|
|
Federal agency securities
|
304
|
|
|
588
|
|
||
U.S. states and political subdivisions
|
83
|
|
|
30
|
|
||
MBS - agency
|
686
|
|
|
553
|
|
||
CLO securities
|
3
|
|
|
2
|
|
||
Corporate and other debt securities
|
454
|
|
|
468
|
|
||
CP
|
400
|
|
|
67
|
|
||
Equity securities
|
53
|
|
|
66
|
|
||
Derivative instruments
1
|
1,735
|
|
|
1,152
|
|
||
Trading loans
2
|
2,625
|
|
|
2,655
|
|
||
Total trading assets and derivative instruments
|
|
$7,050
|
|
|
|
$6,119
|
|
|
|
|
|
||||
Trading Liabilities and Derivative Instruments:
|
|
|
|
||||
U.S. Treasury securities
|
|
$568
|
|
|
|
$503
|
|
MBS - agency
|
3
|
|
|
37
|
|
||
Corporate and other debt securities
|
311
|
|
|
259
|
|
||
Derivative instruments
1
|
654
|
|
|
464
|
|
||
Total trading liabilities and derivative instruments
|
|
$1,536
|
|
|
|
$1,263
|
|
|
March 31, 2016
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost |
|
Unrealized
Gains |
|
Unrealized
Losses |
|
Fair
Value |
||||||||
U.S. Treasury securities
|
|
$3,694
|
|
|
|
$103
|
|
|
|
$—
|
|
|
|
$3,797
|
|
Federal agency securities
|
377
|
|
|
12
|
|
|
—
|
|
|
389
|
|
||||
U.S. states and political subdivisions
|
149
|
|
|
9
|
|
|
—
|
|
|
158
|
|
||||
MBS - agency
|
22,615
|
|
|
589
|
|
|
14
|
|
|
23,190
|
|
||||
MBS - non-agency residential
|
88
|
|
|
1
|
|
|
1
|
|
|
88
|
|
||||
ABS
|
10
|
|
|
2
|
|
|
1
|
|
|
11
|
|
||||
Corporate and other debt securities
|
36
|
|
|
1
|
|
|
—
|
|
|
37
|
|
||||
Other equity securities
1
|
518
|
|
|
1
|
|
|
1
|
|
|
518
|
|
||||
Total securities AFS
|
|
$27,487
|
|
|
|
$718
|
|
|
|
$17
|
|
|
|
$28,188
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2015
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost |
|
Unrealized
Gains |
|
Unrealized
Losses |
|
Fair
Value |
||||||||
U.S. Treasury securities
|
|
$3,460
|
|
|
|
$3
|
|
|
|
$14
|
|
|
|
$3,449
|
|
Federal agency securities
|
402
|
|
|
10
|
|
|
1
|
|
|
411
|
|
||||
U.S. states and political subdivisions
|
156
|
|
|
8
|
|
|
—
|
|
|
164
|
|
||||
MBS - agency
|
22,877
|
|
|
397
|
|
|
150
|
|
|
23,124
|
|
||||
MBS - non-agency residential
|
92
|
|
|
2
|
|
|
—
|
|
|
94
|
|
||||
ABS
|
11
|
|
|
2
|
|
|
1
|
|
|
12
|
|
||||
Corporate and other debt securities
|
37
|
|
|
1
|
|
|
—
|
|
|
38
|
|
||||
Other equity securities
1
|
533
|
|
|
1
|
|
|
1
|
|
|
533
|
|
||||
Total securities AFS
|
|
$27,568
|
|
|
|
$424
|
|
|
|
$167
|
|
|
|
$27,825
|
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Taxable interest
|
|
$159
|
|
|
|
$128
|
|
Tax-exempt interest
|
1
|
|
|
2
|
|
||
Dividends
|
3
|
|
|
10
|
|
||
Total interest and dividends on securities AFS
|
|
$163
|
|
|
|
$140
|
|
|
Distribution of Remaining Maturities
|
||||||||||||||||||
(Dollars in millions)
|
Due in 1 Year or Less
|
|
Due After 1 Year through 5 Years
|
|
Due After 5 Years through 10 Years
|
|
Due After 10 Years
|
|
Total
|
||||||||||
Amortized Cost:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
|
$—
|
|
|
|
$1,371
|
|
|
|
$2,323
|
|
|
|
$—
|
|
|
|
$3,694
|
|
Federal agency securities
|
142
|
|
|
106
|
|
|
13
|
|
|
116
|
|
|
377
|
|
|||||
U.S. states and political subdivisions
|
29
|
|
|
6
|
|
|
100
|
|
|
14
|
|
|
149
|
|
|||||
MBS - agency
|
2,252
|
|
|
8,598
|
|
|
8,113
|
|
|
3,652
|
|
|
22,615
|
|
|||||
MBS - non-agency residential
|
—
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|||||
ABS
|
2
|
|
|
6
|
|
|
2
|
|
|
—
|
|
|
10
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|||||
Total debt securities AFS
|
|
$2,425
|
|
|
|
$10,211
|
|
|
|
$10,551
|
|
|
|
$3,782
|
|
|
|
$26,969
|
|
Fair Value:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
|
$—
|
|
|
|
$1,395
|
|
|
|
$2,402
|
|
|
|
$—
|
|
|
|
$3,797
|
|
Federal agency securities
|
144
|
|
|
113
|
|
|
13
|
|
|
119
|
|
|
389
|
|
|||||
U.S. states and political subdivisions
|
30
|
|
|
6
|
|
|
108
|
|
|
14
|
|
|
158
|
|
|||||
MBS - agency
|
2,368
|
|
|
8,828
|
|
|
8,280
|
|
|
3,714
|
|
|
23,190
|
|
|||||
MBS - non-agency residential
|
—
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|||||
ABS
|
3
|
|
|
7
|
|
|
1
|
|
|
—
|
|
|
11
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Total debt securities AFS
|
|
$2,545
|
|
|
|
$10,474
|
|
|
|
$10,804
|
|
|
|
$3,847
|
|
|
|
$27,670
|
|
Weighted average yield
1
|
2.50
|
%
|
|
2.35
|
%
|
|
2.69
|
%
|
|
2.91
|
%
|
|
2.57
|
%
|
|
March 31, 2016
|
||||||||||||||||||||||
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agency securities
|
|
$10
|
|
|
|
$—
|
|
|
|
$34
|
|
|
|
$—
|
|
|
|
$44
|
|
|
|
$—
|
|
MBS - agency
|
859
|
|
|
3
|
|
|
1,613
|
|
|
11
|
|
|
2,472
|
|
|
14
|
|
||||||
ABS
|
—
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
6
|
|
|
1
|
|
||||||
Other equity securities
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
||||||
Total temporarily impaired securities AFS
|
872
|
|
|
4
|
|
|
1,653
|
|
|
12
|
|
|
2,525
|
|
|
16
|
|
||||||
OTTI securities AFS
1
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
MBS - non-agency residential
|
51
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
1
|
|
||||||
ABS
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total OTTI securities AFS
|
52
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
1
|
|
||||||
Total impaired securities AFS
|
|
$924
|
|
|
|
$5
|
|
|
|
$1,653
|
|
|
|
$12
|
|
|
|
$2,577
|
|
|
|
$17
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
Less than twelve months
|
|
Twelve months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in millions)
|
Fair
Value
|
|
Unrealized
Losses
2
|
|
Fair
Value
|
|
Unrealized
Losses |
|
Fair
Value
|
|
Unrealized
Losses
2
|
||||||||||||
Temporarily impaired securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$2,169
|
|
|
|
$14
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$2,169
|
|
|
|
$14
|
|
Federal agency securities
|
75
|
|
|
—
|
|
|
34
|
|
|
1
|
|
|
109
|
|
|
1
|
|
||||||
MBS - agency
|
11,434
|
|
|
114
|
|
|
958
|
|
|
36
|
|
|
12,392
|
|
|
150
|
|
||||||
ABS
|
—
|
|
|
—
|
|
|
7
|
|
|
1
|
|
|
7
|
|
|
1
|
|
||||||
Other equity securities
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
||||||
Total temporarily impaired securities AFS
|
13,681
|
|
|
129
|
|
|
999
|
|
|
38
|
|
|
14,680
|
|
|
167
|
|
||||||
OTTI securities AFS
1
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
ABS
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total OTTI securities AFS
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total impaired securities AFS
|
|
$13,682
|
|
|
|
$129
|
|
|
|
$999
|
|
|
|
$38
|
|
|
|
$14,681
|
|
|
|
$167
|
|
(Dollars in millions)
|
March 31,
2016 |
|
December 31, 2015
|
||||
Commercial loans:
|
|
|
|
||||
C&I
|
|
$68,963
|
|
|
|
$67,062
|
|
CRE
|
6,034
|
|
|
6,236
|
|
||
Commercial construction
|
2,498
|
|
|
1,954
|
|
||
Total commercial loans
|
77,495
|
|
|
75,252
|
|
||
Residential loans:
|
|
|
|
||||
Residential mortgages - guaranteed
|
623
|
|
|
629
|
|
||
Residential mortgages - nonguaranteed
1
|
25,148
|
|
|
24,744
|
|
||
Residential home equity products
|
12,845
|
|
|
13,171
|
|
||
Residential construction
|
383
|
|
|
384
|
|
||
Total residential loans
|
38,999
|
|
|
38,928
|
|
||
Consumer loans:
|
|
|
|
||||
Guaranteed student
|
5,265
|
|
|
4,922
|
|
||
Other direct
|
6,372
|
|
|
6,127
|
|
||
Indirect
|
10,522
|
|
|
10,127
|
|
||
Credit cards
|
1,093
|
|
|
1,086
|
|
||
Total consumer loans
|
23,252
|
|
|
22,262
|
|
||
LHFI
|
|
$139,746
|
|
|
|
$136,442
|
|
LHFS
2
|
|
$1,911
|
|
|
|
$1,838
|
|
|
Commercial Loans
|
||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Commercial Construction
|
||||||||||||||||||
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pass
|
|
$66,633
|
|
|
|
$65,379
|
|
|
|
$5,744
|
|
|
|
$6,067
|
|
|
|
$2,459
|
|
|
|
$1,931
|
|
Criticized accruing
|
1,765
|
|
|
1,375
|
|
|
280
|
|
|
158
|
|
|
37
|
|
|
23
|
|
||||||
Criticized nonaccruing
|
565
|
|
|
308
|
|
|
10
|
|
|
11
|
|
|
2
|
|
|
—
|
|
||||||
Total
|
|
$68,963
|
|
|
|
$67,062
|
|
|
|
$6,034
|
|
|
|
$6,236
|
|
|
|
$2,498
|
|
|
|
$1,954
|
|
|
Residential Loans
1
|
||||||||||||||||||||||
|
Residential Mortgages -
Nonguaranteed
|
|
Residential Home Equity Products
|
|
Residential Construction
|
||||||||||||||||||
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
Current FICO score range:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
700 and above
|
|
$20,846
|
|
|
|
$20,422
|
|
|
|
$10,476
|
|
|
|
$10,772
|
|
|
|
$322
|
|
|
|
$313
|
|
620 - 699
|
3,249
|
|
|
3,262
|
|
|
1,717
|
|
|
1,741
|
|
|
49
|
|
|
58
|
|
||||||
Below 620
2
|
1,053
|
|
|
1,060
|
|
|
652
|
|
|
658
|
|
|
12
|
|
|
13
|
|
||||||
Total
|
|
$25,148
|
|
|
|
$24,744
|
|
|
|
$12,845
|
|
|
|
$13,171
|
|
|
|
$383
|
|
|
|
$384
|
|
|
Consumer Loans
3
|
||||||||||||||||||||||
|
Other Direct
|
|
Indirect
|
|
Credit Cards
|
||||||||||||||||||
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
Current FICO score range:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
700 and above
|
|
$5,731
|
|
|
|
$5,501
|
|
|
|
$7,267
|
|
|
|
$7,015
|
|
|
|
$761
|
|
|
|
$759
|
|
620 - 699
|
591
|
|
|
576
|
|
|
2,565
|
|
|
2,481
|
|
|
268
|
|
|
265
|
|
||||||
Below 620
2
|
50
|
|
|
50
|
|
|
690
|
|
|
631
|
|
|
64
|
|
|
62
|
|
||||||
Total
|
|
$6,372
|
|
|
|
$6,127
|
|
|
|
$10,522
|
|
|
|
$10,127
|
|
|
|
$1,093
|
|
|
|
$1,086
|
|
|
March 31, 2016
|
||||||||||||||||||
(Dollars in millions)
|
Accruing
Current
|
|
Accruing
30-89 Days
Past Due
|
|
Accruing
90+ Days
Past Due
|
|
Nonaccruing
2
|
|
Total
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$68,274
|
|
|
|
$110
|
|
|
|
$14
|
|
|
|
$565
|
|
|
|
$68,963
|
|
CRE
|
6,020
|
|
|
4
|
|
|
—
|
|
|
10
|
|
|
6,034
|
|
|||||
Commercial construction
|
2,496
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2,498
|
|
|||||
Total commercial loans
|
76,790
|
|
|
114
|
|
|
14
|
|
|
577
|
|
|
77,495
|
|
|||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgages - guaranteed
|
200
|
|
|
51
|
|
|
372
|
|
|
—
|
|
|
623
|
|
|||||
Residential mortgages - nonguaranteed
1
|
24,852
|
|
|
89
|
|
|
9
|
|
|
198
|
|
|
25,148
|
|
|||||
Residential home equity products
|
12,589
|
|
|
76
|
|
|
—
|
|
|
180
|
|
|
12,845
|
|
|||||
Residential construction
|
369
|
|
|
2
|
|
|
—
|
|
|
12
|
|
|
383
|
|
|||||
Total residential loans
|
38,010
|
|
|
218
|
|
|
381
|
|
|
390
|
|
|
38,999
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Guaranteed student
|
4,182
|
|
|
493
|
|
|
590
|
|
|
—
|
|
|
5,265
|
|
|||||
Other direct
|
6,338
|
|
|
26
|
|
|
3
|
|
|
5
|
|
|
6,372
|
|
|||||
Indirect
|
10,442
|
|
|
77
|
|
|
—
|
|
|
3
|
|
|
10,522
|
|
|||||
Credit cards
|
1,077
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
1,093
|
|
|||||
Total consumer loans
|
22,039
|
|
|
604
|
|
|
601
|
|
|
8
|
|
|
23,252
|
|
|||||
Total LHFI
|
|
$136,839
|
|
|
|
$936
|
|
|
|
$996
|
|
|
|
$975
|
|
|
|
$139,746
|
|
|
December 31, 2015
|
||||||||||||||||||
(Dollars in millions)
|
Accruing
Current
|
|
Accruing
30-89 Days
Past Due
|
|
Accruing
90+ Days
Past Due
|
|
Nonaccruing
2
|
|
Total
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$66,670
|
|
|
|
$61
|
|
|
|
$23
|
|
|
|
$308
|
|
|
|
$67,062
|
|
CRE
|
6,222
|
|
|
3
|
|
|
—
|
|
|
11
|
|
|
6,236
|
|
|||||
Commercial construction
|
1,952
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
1,954
|
|
|||||
Total commercial loans
|
74,844
|
|
|
64
|
|
|
25
|
|
|
319
|
|
|
75,252
|
|
|||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgages - guaranteed
|
192
|
|
|
59
|
|
|
378
|
|
|
—
|
|
|
629
|
|
|||||
Residential mortgages - nonguaranteed
1
|
24,449
|
|
|
105
|
|
|
7
|
|
|
183
|
|
|
24,744
|
|
|||||
Residential home equity products
|
12,939
|
|
|
87
|
|
|
—
|
|
|
145
|
|
|
13,171
|
|
|||||
Residential construction
|
365
|
|
|
3
|
|
|
—
|
|
|
16
|
|
|
384
|
|
|||||
Total residential loans
|
37,945
|
|
|
254
|
|
|
385
|
|
|
344
|
|
|
38,928
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Guaranteed student
|
3,861
|
|
|
500
|
|
|
561
|
|
|
—
|
|
|
4,922
|
|
|||||
Other direct
|
6,094
|
|
|
24
|
|
|
3
|
|
|
6
|
|
|
6,127
|
|
|||||
Indirect
|
10,022
|
|
|
102
|
|
|
—
|
|
|
3
|
|
|
10,127
|
|
|||||
Credit cards
|
1,070
|
|
|
9
|
|
|
7
|
|
|
—
|
|
|
1,086
|
|
|||||
Total consumer loans
|
21,047
|
|
|
635
|
|
|
571
|
|
|
9
|
|
|
22,262
|
|
|||||
Total LHFI
|
|
$133,836
|
|
|
|
$953
|
|
|
|
$981
|
|
|
|
$672
|
|
|
|
$136,442
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(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
|
|
$389
|
|
|
|
$369
|
|
|
|
$—
|
|
|
|
$55
|
|
|
|
$42
|
|
|
|
$—
|
|
CRE
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
9
|
|
|
—
|
|
||||||
Total commercial loans
|
389
|
|
|
369
|
|
|
—
|
|
|
66
|
|
|
51
|
|
|
—
|
|
||||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgages - nonguaranteed
|
505
|
|
|
386
|
|
|
—
|
|
|
500
|
|
|
380
|
|
|
—
|
|
||||||
Residential construction
|
19
|
|
|
8
|
|
|
—
|
|
|
29
|
|
|
8
|
|
|
—
|
|
||||||
Total residential loans
|
524
|
|
|
394
|
|
|
—
|
|
|
529
|
|
|
388
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired loans with an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
163
|
|
|
152
|
|
|
34
|
|
|
173
|
|
|
167
|
|
|
28
|
|
||||||
Total commercial loans
|
163
|
|
|
152
|
|
|
34
|
|
|
173
|
|
|
167
|
|
|
28
|
|
||||||
Residential loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgages - nonguaranteed
|
1,371
|
|
|
1,338
|
|
|
176
|
|
|
1,381
|
|
|
1,344
|
|
|
178
|
|
||||||
Residential home equity products
|
775
|
|
|
703
|
|
|
54
|
|
|
740
|
|
|
670
|
|
|
60
|
|
||||||
Residential construction
|
120
|
|
|
120
|
|
|
12
|
|
|
127
|
|
|
125
|
|
|
14
|
|
||||||
Total residential loans
|
2,266
|
|
|
2,161
|
|
|
242
|
|
|
2,248
|
|
|
2,139
|
|
|
252
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other direct
|
12
|
|
|
12
|
|
|
1
|
|
|
11
|
|
|
11
|
|
|
1
|
|
||||||
Indirect
|
113
|
|
|
113
|
|
|
5
|
|
|
114
|
|
|
114
|
|
|
5
|
|
||||||
Credit cards
|
6
|
|
|
6
|
|
|
1
|
|
|
24
|
|
|
6
|
|
|
1
|
|
||||||
Total consumer loans
|
131
|
|
|
131
|
|
|
7
|
|
|
149
|
|
|
131
|
|
|
7
|
|
||||||
Total impaired loans
|
|
$3,473
|
|
|
|
$3,207
|
|
|
|
$283
|
|
|
|
$3,165
|
|
|
|
$2,876
|
|
|
|
$287
|
|
|
Three Months Ended March 31
|
||||||||||||||
|
2016
|
|
2015
|
||||||||||||
(Dollars in millions)
|
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
|
|
$364
|
|
|
|
$2
|
|
|
|
$41
|
|
|
|
$—
|
|
CRE
|
3
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||
Total commercial loans
|
367
|
|
|
2
|
|
|
51
|
|
|
—
|
|
||||
Residential loans:
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
387
|
|
|
4
|
|
|
413
|
|
|
4
|
|
||||
Residential construction
|
8
|
|
|
—
|
|
|
9
|
|
|
—
|
|
||||
Total residential loans
|
395
|
|
|
4
|
|
|
422
|
|
|
4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Impaired loans with an allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
||||||||
C&I
|
161
|
|
|
—
|
|
|
38
|
|
|
1
|
|
||||
CRE
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Total commercial loans
|
161
|
|
|
—
|
|
|
41
|
|
|
1
|
|
||||
Residential loans:
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
1,339
|
|
|
16
|
|
|
1,374
|
|
|
17
|
|
||||
Residential home equity products
|
705
|
|
|
7
|
|
|
636
|
|
|
7
|
|
||||
Residential construction
|
120
|
|
|
2
|
|
|
137
|
|
|
2
|
|
||||
Total residential loans
|
2,164
|
|
|
25
|
|
|
2,147
|
|
|
26
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
||||||||
Other direct
|
12
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||
Indirect
|
115
|
|
|
1
|
|
|
108
|
|
|
1
|
|
||||
Credit cards
|
6
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||
Total consumer loans
|
133
|
|
|
1
|
|
|
129
|
|
|
1
|
|
||||
Total impaired loans
|
|
$3,220
|
|
|
|
$32
|
|
|
|
$2,790
|
|
|
|
$32
|
|
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
||||
Nonaccrual/NPLs:
|
|
|
|
||||
Commercial loans:
|
|
|
|
||||
C&I
|
|
$565
|
|
|
|
$308
|
|
CRE
|
10
|
|
|
11
|
|
||
Commercial construction
|
2
|
|
|
—
|
|
||
Residential loans:
|
|
|
|
||||
Residential mortgages - nonguaranteed
|
198
|
|
|
183
|
|
||
Residential home equity products
|
180
|
|
|
145
|
|
||
Residential construction
|
12
|
|
|
16
|
|
||
Consumer loans:
|
|
|
|
||||
Other direct
|
5
|
|
|
6
|
|
||
Indirect
|
3
|
|
|
3
|
|
||
Total nonaccrual/NPLs
1
|
975
|
|
|
672
|
|
||
OREO
2
|
52
|
|
|
56
|
|
||
Other repossessed assets
|
8
|
|
|
7
|
|
||
Total NPAs
|
|
$1,035
|
|
|
|
$735
|
|
|
Three months ended March 31, 2015
1
|
||||||||||||||||
(Dollars in millions)
|
Number of Loans Modified
|
|
Principal
Forgiveness 2 |
|
Rate Modification
|
|
Term Extension and/or Other Concessions
|
|
Total
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
22
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$5
|
|
|
|
$5
|
|
Residential loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
216
|
|
4
|
|
|
30
|
|
|
7
|
|
|
41
|
|
||||
Residential home equity products
|
468
|
|
—
|
|
|
3
|
|
|
24
|
|
|
27
|
|
||||
Residential construction
|
1
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Other direct
|
17
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Indirect
|
569
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
||||
Credit cards
|
236
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Total TDRs
|
1,529
|
|
|
$4
|
|
|
|
$34
|
|
|
|
$48
|
|
|
|
$86
|
|
|
Three Months Ended March 31, 2016
|
|||||
(Dollars in millions)
|
Number of Loans
|
|
Amortized Cost
|
|||
Commercial loans:
|
|
|
|
|||
C&I
|
5
|
|
|
|
$1
|
|
Residential loans:
|
|
|
|
|||
Residential mortgages
|
19
|
|
|
5
|
|
|
Residential home equity products
|
38
|
|
|
1
|
|
|
Consumer loans:
|
|
|
|
|||
Indirect
|
29
|
|
|
—
|
|
|
Credit cards
|
22
|
|
|
—
|
|
|
Total TDRs
|
113
|
|
|
|
$7
|
|
|
Three Months Ended March 31, 2015
|
||||
(Dollars in millions)
|
Number of Loans
|
|
Amortized Cost
|
||
Commercial loans:
|
|
|
|
||
C&I
|
4
|
|
|
$1
|
|
Residential loans:
|
|
|
|
||
Residential mortgages
|
36
|
|
6
|
|
|
Residential home equity products
|
30
|
|
1
|
|
|
Consumer loans:
|
|
|
|
||
Other direct
|
1
|
|
—
|
|
|
Indirect
|
39
|
|
—
|
|
|
Credit cards
|
19
|
|
—
|
|
|
Total TDRs
|
129
|
|
|
$8
|
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Balance, beginning of period
|
|
$1,815
|
|
|
|
$1,991
|
|
Provision for loan losses
|
103
|
|
|
55
|
|
||
(Benefit)/provision for unfunded commitments
|
(2
|
)
|
|
—
|
|
||
Loan charge-offs
|
(112
|
)
|
|
(130
|
)
|
||
Loan recoveries
|
27
|
|
|
31
|
|
||
Balance, end of period
|
|
$1,831
|
|
|
|
$1,947
|
|
|
|
|
|
||||
Components:
|
|
|
|
||||
ALLL
|
|
$1,770
|
|
|
|
$1,893
|
|
Unfunded commitments reserve
1
|
61
|
|
|
54
|
|
||
Allowance for credit losses
|
|
$1,831
|
|
|
|
$1,947
|
|
|
Three Months Ended March 31, 2016
|
||||||||||||||
(Dollars in millions)
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
Balance, beginning of period
|
|
$1,047
|
|
|
|
$534
|
|
|
|
$171
|
|
|
|
$1,752
|
|
Provision/(benefit) for loan losses
|
98
|
|
|
(32
|
)
|
|
37
|
|
|
103
|
|
||||
Loan charge-offs
|
(32
|
)
|
|
(41
|
)
|
|
(39
|
)
|
|
(112
|
)
|
||||
Loan recoveries
|
10
|
|
|
6
|
|
|
11
|
|
|
27
|
|
||||
Balance, end of period
|
|
$1,123
|
|
|
|
$467
|
|
|
|
$180
|
|
|
|
$1,770
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended March 31, 2015
|
||||||||||||||
(Dollars in millions)
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
Balance, beginning of period
|
|
$986
|
|
|
|
$777
|
|
|
|
$174
|
|
|
|
$1,937
|
|
Provision for loan losses
|
7
|
|
|
25
|
|
|
23
|
|
|
55
|
|
||||
Loan charge-offs
|
(28
|
)
|
|
(68
|
)
|
|
(34
|
)
|
|
(130
|
)
|
||||
Loan recoveries
|
11
|
|
|
9
|
|
|
11
|
|
|
31
|
|
||||
Balance, end of period
|
|
$976
|
|
|
|
$743
|
|
|
|
$174
|
|
|
|
$1,893
|
|
|
March 31, 2016
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||||||||||||||||||
(Dollars in millions)
|
Carrying
Value
|
|
ALLL
|
|
Carrying
Value
|
|
ALLL
|
|
Carrying
Value
|
|
ALLL
|
|
Carrying
Value
|
|
ALLL
|
||||||||||||||||
Individually evaluated
|
|
$521
|
|
|
|
$34
|
|
|
|
$2,555
|
|
|
|
$242
|
|
|
|
$131
|
|
|
|
$7
|
|
|
|
$3,207
|
|
|
|
$283
|
|
Collectively evaluated
|
76,974
|
|
|
1,089
|
|
|
36,189
|
|
|
225
|
|
|
23,121
|
|
|
173
|
|
|
136,284
|
|
|
1,487
|
|
||||||||
Total evaluated
|
77,495
|
|
|
1,123
|
|
|
38,744
|
|
|
467
|
|
|
23,252
|
|
|
180
|
|
|
139,491
|
|
|
1,770
|
|
||||||||
LHFI at fair value
|
—
|
|
|
—
|
|
|
255
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
255
|
|
|
—
|
|
||||||||
Total LHFI
|
|
$77,495
|
|
|
|
$1,123
|
|
|
|
$38,999
|
|
|
|
$467
|
|
|
|
$23,252
|
|
|
|
$180
|
|
|
|
$139,746
|
|
|
|
$1,770
|
|
|
December 31, 2015
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||||||||||||||||||
(Dollars in millions)
|
Carrying
Value |
|
ALLL
|
|
Carrying
Value |
|
ALLL
|
|
Carrying
Value |
|
ALLL
|
|
Carrying
Value |
|
ALLL
|
||||||||||||||||
Individually evaluated
|
|
$218
|
|
|
|
$28
|
|
|
|
$2,527
|
|
|
|
$252
|
|
|
|
$131
|
|
|
|
$7
|
|
|
|
$2,876
|
|
|
|
$287
|
|
Collectively evaluated
|
75,034
|
|
|
1,019
|
|
|
36,144
|
|
|
282
|
|
|
22,131
|
|
|
164
|
|
|
133,309
|
|
|
1,465
|
|
||||||||
Total evaluated
|
75,252
|
|
|
1,047
|
|
|
38,671
|
|
|
534
|
|
|
22,262
|
|
|
171
|
|
|
136,185
|
|
|
1,752
|
|
||||||||
LHFI at fair value
|
—
|
|
|
—
|
|
|
257
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
257
|
|
|
—
|
|
||||||||
Total LHFI
|
|
$75,252
|
|
|
|
$1,047
|
|
|
|
$38,928
|
|
|
|
$534
|
|
|
|
$22,262
|
|
|
|
$171
|
|
|
|
$136,442
|
|
|
|
$1,752
|
|
(Dollars in millions)
|
MSRs -
Fair Value |
|
Other
|
|
Total
|
||||||
Balance, January 1, 2016
|
|
$1,307
|
|
|
|
$18
|
|
|
|
$1,325
|
|
Amortization
1
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
Servicing rights originated
|
46
|
|
|
—
|
|
|
46
|
|
|||
Servicing rights purchased
|
77
|
|
|
—
|
|
|
77
|
|
|||
Changes in fair value:
|
|
|
|
|
|
||||||
Due to changes in inputs and assumptions
2
|
(204
|
)
|
|
—
|
|
|
(204
|
)
|
|||
Other changes in fair value
3
|
(43
|
)
|
|
—
|
|
|
(43
|
)
|
|||
Servicing rights sold
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Balance, March 31, 2016
|
|
$1,182
|
|
|
|
$16
|
|
|
|
$1,198
|
|
|
|
|
|
|
|
||||||
Balance, January 1, 2015
|
|
$1,206
|
|
|
|
$13
|
|
|
|
$1,219
|
|
Amortization
1
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Servicing rights originated
|
46
|
|
|
—
|
|
|
46
|
|
|||
Servicing rights purchased
|
56
|
|
|
—
|
|
|
56
|
|
|||
Changes in fair value:
|
|
|
|
|
|
|
|||||
Due to changes in inputs and assumptions
2
|
(78
|
)
|
|
—
|
|
|
(78
|
)
|
|||
Other changes in fair value
3
|
(48
|
)
|
|
—
|
|
|
(48
|
)
|
|||
Servicing rights sold
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Balance, March 31, 2015
|
|
$1,181
|
|
|
|
$12
|
|
|
|
$1,193
|
|
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
||||
Fair value of MSRs
|
|
$1,182
|
|
|
|
$1,307
|
|
Prepayment rate assumption (annual)
|
13
|
%
|
|
10
|
%
|
||
Decline in fair value from 10% adverse change
|
|
$54
|
|
|
|
$49
|
|
Decline in fair value from 20% adverse change
|
104
|
|
|
94
|
|
||
Option adjusted spread (annual)
|
8
|
%
|
|
8
|
%
|
||
Decline in fair value from 10% adverse change
|
|
$48
|
|
|
|
$64
|
|
Decline in fair value from 20% adverse change
|
92
|
|
|
123
|
|
||
Weighted-average life (in years)
|
5.6
|
|
|
6.6
|
|
||
Weighted-average coupon
|
4.1
|
%
|
|
4.1
|
%
|
|
Portfolio Balance
1
|
|
Past Due and Nonaccrual
2
|
|
Net Charge-offs
|
|
||||||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2016
|
|
December 31, 2015
|
|
Three Months Ended March 31
|
|
||||||||||||||
(Dollars in millions)
|
|
2016
|
|
2015
|
|
|||||||||||||||||||
LHFI portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
$77,495
|
|
|
|
$75,252
|
|
|
|
$591
|
|
|
|
$344
|
|
|
|
$22
|
|
|
|
$17
|
|
|
Residential
|
38,999
|
|
|
38,928
|
|
|
771
|
|
|
729
|
|
|
35
|
|
|
59
|
|
|
||||||
Consumer
|
23,252
|
|
|
22,262
|
|
|
609
|
|
|
580
|
|
|
28
|
|
|
23
|
|
|
||||||
Total LHFI portfolio
|
139,746
|
|
|
136,442
|
|
|
1,971
|
|
|
1,653
|
|
|
85
|
|
|
99
|
|
|
||||||
Managed securitized loans
3
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
117,534
|
|
|
116,990
|
|
|
127
|
|
3
|
126
|
|
3
|
2
|
|
4
|
3
|
|
4
|
||||||
Consumer
|
729
|
|
|
807
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
||||||
Total managed securitized loans
|
118,263
|
|
|
117,797
|
|
|
127
|
|
|
127
|
|
|
3
|
|
|
3
|
|
|
||||||
Managed unsecuritized loans
5
|
3,744
|
|
|
3,973
|
|
|
565
|
|
|
597
|
|
|
—
|
|
|
—
|
|
|
||||||
Total managed loans
|
|
$261,753
|
|
|
|
$258,212
|
|
|
|
$2,663
|
|
|
|
$2,377
|
|
|
|
$88
|
|
|
|
$102
|
|
|
|
Three Months Ended March 31
|
||||||
(Dollars and shares in millions, except per share data)
|
2016
|
|
2015
|
||||
Net income
|
|
$447
|
|
|
|
$429
|
|
Preferred dividends
|
(17
|
)
|
|
(17
|
)
|
||
Dividends and undistributed earnings allocated to unvested shares
|
—
|
|
|
(1
|
)
|
||
Net income available to common shareholders
|
|
$430
|
|
|
|
$411
|
|
|
|
|
|
||||
Average basic common shares
|
505
|
|
|
521
|
|
||
Effect of dilutive securities:
|
|
|
|
||||
Stock options
|
2
|
|
|
2
|
|
||
Restricted stock, RSUs, and warrants
|
3
|
|
|
4
|
|
||
Average diluted common shares
|
510
|
|
|
527
|
|
||
|
|
|
|
||||
Net income per average common share - diluted
|
|
$0.84
|
|
|
|
$0.78
|
|
Net income per average common share - basic
|
|
$0.85
|
|
|
|
$0.79
|
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Restricted stock
|
|
$2
|
|
|
|
$6
|
|
Performance stock units
|
7
|
|
|
8
|
|
||
RSUs
|
18
|
|
|
18
|
|
||
Total stock-based compensation
|
|
$27
|
|
|
|
$32
|
|
|
|
|
|
||||
Stock-based compensation tax benefit
|
|
$10
|
|
|
|
$12
|
|
|
Pension Benefits
1
|
|
Other Postretirement Benefits
|
||||||||||||
|
Three Months Ended March 31
|
|
Three Months Ended March 31
|
||||||||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Service cost
|
|
$1
|
|
|
|
$1
|
|
|
|
$—
|
|
|
|
$—
|
|
Interest cost
|
24
|
|
|
29
|
|
|
—
|
|
|
—
|
|
||||
Expected return on plan assets
|
(46
|
)
|
|
(51
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Amortization of actuarial loss
|
6
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit
|
|
($15
|
)
|
|
|
($16
|
)
|
|
|
($2
|
)
|
|
|
($2
|
)
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Pending repurchase requests, beginning of period
|
|
$17
|
|
|
|
$47
|
|
Repurchase requests received
|
11
|
|
|
20
|
|
||
Repurchase requests resolved:
|
|
|
|
||||
Repurchased
|
(5
|
)
|
|
(5
|
)
|
||
Cured
|
(9
|
)
|
|
(14
|
)
|
||
Total resolved
|
(14
|
)
|
|
(19
|
)
|
||
Pending repurchase requests, end of period
1
|
|
$14
|
|
|
|
$48
|
|
|
|
|
|
||||
Percent from non-agency investors:
|
|
|
|
||||
Ending pending repurchase requests
|
32.6
|
%
|
|
5.2
|
%
|
||
Repurchase requests received
|
—
|
%
|
|
—
|
%
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Balance, beginning of period
|
|
$57
|
|
|
|
$85
|
|
Repurchase benefit
|
(2
|
)
|
|
(2
|
)
|
||
Charge-offs, net of recoveries
|
—
|
|
|
(1
|
)
|
||
Balance, end of period
|
|
$55
|
|
|
|
$82
|
|
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
||||
Outstanding repurchased mortgage loans:
|
|
|
|
||||
Performing LHFI
|
|
$253
|
|
|
|
$255
|
|
Nonperforming LHFI
|
17
|
|
|
17
|
|
||
Total carrying value of outstanding repurchased mortgage loans
|
|
$270
|
|
|
|
$272
|
|
|
March 31, 2016
|
||||||||||||||
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
(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
|
|
$18,250
|
|
|
|
$374
|
|
|
|
$—
|
|
|
|
$—
|
|
Derivative instruments designated in fair value hedging relationships
2
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts hedging fixed rate debt
|
700
|
|
|
9
|
|
|
2,600
|
|
|
2
|
|
||||
Interest rate contracts hedging brokered CDs
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
729
|
|
|
9
|
|
|
2,600
|
|
|
2
|
|
||||
Derivative instruments not designated as hedging instruments
3
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts hedging:
|
|
|
|
|
|
|
|
||||||||
MSRs
|
23,069
|
|
|
602
|
|
|
7,603
|
|
|
373
|
|
||||
LHFS, IRLCs
4
|
2,540
|
|
|
8
|
|
|
4,290
|
|
|
25
|
|
||||
LHFI
|
5
|
|
|
1
|
|
|
50
|
|
|
4
|
|
||||
Trading activity
5
|
69,677
|
|
|
2,714
|
|
|
66,550
|
|
|
2,479
|
|
||||
Foreign exchange rate contracts hedging trading activity
|
4,323
|
|
|
131
|
|
|
4,571
|
|
|
127
|
|
||||
Credit contracts hedging:
|
|
|
|
|
|
|
|
||||||||
Loans
|
10
|
|
|
—
|
|
|
445
|
|
|
4
|
|
||||
Trading activity
6
|
2,248
|
|
|
31
|
|
|
2,437
|
|
|
28
|
|
||||
Equity contracts hedging trading activity
5
|
19,486
|
|
|
1,809
|
|
|
28,680
|
|
|
2,256
|
|
||||
Other contracts:
|
|
|
|
|
|
|
|
||||||||
IRLCs and other
7
|
3,011
|
|
|
37
|
|
|
126
|
|
|
5
|
|
||||
Commodities
|
593
|
|
|
110
|
|
|
587
|
|
|
108
|
|
||||
Total
|
124,962
|
|
|
5,443
|
|
|
115,339
|
|
|
5,409
|
|
||||
Total derivative instruments
|
|
$143,941
|
|
|
|
$5,826
|
|
|
|
$117,939
|
|
|
|
$5,411
|
|
|
|
|
|
|
|
|
|
||||||||
Total gross derivative instruments, before netting
|
|
|
|
$5,826
|
|
|
|
|
|
$5,411
|
|
||||
Less: Legally enforceable master netting agreements
|
|
|
(3,484
|
)
|
|
|
|
(3,484
|
)
|
||||||
Less: Cash collateral received/paid
|
|
|
(607
|
)
|
|
|
|
(1,273
|
)
|
||||||
Total derivative instruments, after netting
|
|
|
|
$1,735
|
|
|
|
|
|
$654
|
|
|
December 31, 2015
|
||||||||||||||
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
(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
|
|
$14,500
|
|
|
|
$130
|
|
|
|
$2,900
|
|
|
|
$11
|
|
Derivative instruments designated in fair value hedging relationships
2
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts hedging fixed rate debt
|
1,700
|
|
|
14
|
|
|
600
|
|
|
—
|
|
||||
Interest rate contracts hedging brokered CDs
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
1,730
|
|
|
14
|
|
|
600
|
|
|
—
|
|
||||
Derivative instruments not designated as hedging instruments
3
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts hedging:
|
|
|
|
|
|
|
|
||||||||
MSRs
|
7,782
|
|
|
198
|
|
|
16,882
|
|
|
98
|
|
||||
LHFS, IRLCs
4
|
4,309
|
|
|
10
|
|
|
2,520
|
|
|
5
|
|
||||
LHFI
|
15
|
|
|
—
|
|
|
40
|
|
|
1
|
|
||||
Trading activity
5
|
67,426
|
|
|
1,983
|
|
|
68,125
|
|
|
1,796
|
|
||||
Foreign exchange rate contracts hedging trading activity
|
3,648
|
|
|
127
|
|
|
3,227
|
|
|
122
|
|
||||
Credit contracts hedging:
|
|
|
|
|
|
|
|
||||||||
Loans
|
—
|
|
|
—
|
|
|
175
|
|
|
2
|
|
||||
Trading activity
6
|
2,232
|
|
|
57
|
|
|
2,385
|
|
|
54
|
|
||||
Equity contracts hedging trading activity
5
|
19,138
|
|
|
1,812
|
|
|
27,154
|
|
|
2,222
|
|
||||
Other contracts:
|
|
|
|
|
|
|
|
||||||||
IRLCs and other
7
|
2,024
|
|
|
21
|
|
|
299
|
|
|
6
|
|
||||
Commodities
|
453
|
|
|
113
|
|
|
448
|
|
|
111
|
|
||||
Total
|
107,027
|
|
|
4,321
|
|
|
121,255
|
|
|
4,417
|
|
||||
Total derivative instruments
|
|
$123,257
|
|
|
|
$4,465
|
|
|
|
$124,755
|
|
|
|
$4,428
|
|
|
|
|
|
|
|
|
|
||||||||
Total gross derivative instruments, before netting
|
|
|
|
$4,465
|
|
|
|
|
|
$4,428
|
|
||||
Less: Legally enforceable master netting agreements
|
|
|
(2,916
|
)
|
|
|
|
(2,916
|
)
|
||||||
Less: Cash collateral received/paid
|
|
|
(397
|
)
|
|
|
|
(1,048
|
)
|
||||||
Total derivative instruments, after netting
|
|
|
|
$1,152
|
|
|
|
|
|
$464
|
|
|
Three Months Ended March 31, 2016
|
||||||||
(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) |
|
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
|
|
$306
|
|
|
|
$38
|
|
|
Interest and fees on loans
|
|
Three Months Ended March 31, 2016
|
||||||||||
(Dollars in millions)
|
Amount of Loss
on Derivatives
Recognized in Income |
|
Amount of Gain on
Related Hedged Items
Recognized in Income |
|
Amount of Gain
Recognized in Income
on Hedges
(Ineffective Portion) |
||||||
Derivative instruments in fair value hedging relationships:
|
|
|
|
|
|
||||||
Interest rate contracts hedging fixed rate debt
1
|
|
($2
|
)
|
|
|
$3
|
|
|
|
$1
|
|
Interest rate contracts hedging brokered CDs
1
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
($2
|
)
|
|
|
$3
|
|
|
|
$1
|
|
(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 March 31, 2016
|
||
Derivative instruments not designated as hedging instruments:
|
|
|
|||
Interest rate contracts hedging:
|
|
|
|
||
MSRs
|
Mortgage servicing related income
|
|
|
$169
|
|
LHFS, IRLCs
|
Mortgage production related income
|
|
(62
|
)
|
|
LHFI
|
Other noninterest income
|
|
(2
|
)
|
|
Trading activity
|
Trading income
|
|
15
|
|
|
Foreign exchange rate contracts hedging trading activity
|
Trading income
|
|
(18
|
)
|
|
Credit contracts hedging:
|
|
|
|
||
Loans
|
Other noninterest income
|
|
(1
|
)
|
|
Trading activity
|
Trading income
|
|
5
|
|
|
Equity contracts hedging trading activity
|
Trading income
|
|
2
|
|
|
Other contracts:
|
|
|
|
||
IRLCs
|
Mortgage production related income
|
|
45
|
|
|
Commodities
|
Trading income
|
|
1
|
|
|
Total
|
|
|
|
$154
|
|
|
Three Months Ended March 31, 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) |
|
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
|
|
$125
|
|
|
|
$35
|
|
|
Interest and fees on loans
|
|
Three Months Ended March 31, 2015
|
||||||||||
(Dollars in millions)
|
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
|
|
$14
|
|
|
|
($14
|
)
|
|
|
$—
|
|
Interest rate contracts hedging brokered CDs
1
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$14
|
|
|
|
($14
|
)
|
|
|
$—
|
|
(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 March 31, 2015
|
||
Derivative instruments not designated as hedging instruments:
|
|
|
|||
Interest rate contracts hedging:
|
|
|
|
||
MSRs
|
Mortgage servicing related income
|
|
|
$88
|
|
LHFS, IRLCs
|
Mortgage production related income
|
|
(43
|
)
|
|
Trading activity
|
Trading income
|
|
15
|
|
|
Foreign exchange rate contracts hedging trading activity
|
Trading income
|
|
56
|
|
|
Credit contracts hedging trading activity
|
Trading income
|
|
6
|
|
|
Equity contracts hedging trading activity
|
Trading income
|
|
3
|
|
|
Other contracts - IRLCs
|
Mortgage production related income
|
|
81
|
|
|
Total
|
|
|
|
$206
|
|
(Dollars in millions)
|
Gross
Amount
|
|
Amount
Offset
|
|
Net Amount
Presented in
Consolidated
Balance Sheets
|
|
Held/Pledged
Financial
Instruments
|
|
Net
Amount
|
||||||||||
March 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$5,506
|
|
|
|
$3,943
|
|
|
|
$1,563
|
|
|
|
$103
|
|
|
|
$1,460
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
36
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
|||||
Exchange traded derivatives
|
284
|
|
|
148
|
|
|
136
|
|
|
—
|
|
|
136
|
|
|||||
Total derivative instrument assets
|
|
$5,826
|
|
|
|
$4,091
|
|
|
|
$1,735
|
|
1
|
|
$103
|
|
|
|
$1,632
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$5,169
|
|
|
|
$4,609
|
|
|
|
$560
|
|
|
|
$26
|
|
|
|
$534
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
93
|
|
|
—
|
|
|
93
|
|
|
—
|
|
|
93
|
|
|||||
Exchange traded derivatives
|
149
|
|
|
148
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Total derivative instrument liabilities
|
|
$5,411
|
|
|
|
$4,757
|
|
|
|
$654
|
|
2
|
|
$26
|
|
|
|
$628
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$4,184
|
|
|
|
$3,156
|
|
|
|
$1,028
|
|
|
|
$66
|
|
|
|
$962
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
|||||
Exchange traded derivatives
|
260
|
|
|
157
|
|
|
103
|
|
|
—
|
|
|
103
|
|
|||||
Total derivative instrument assets
|
|
$4,465
|
|
|
|
$3,313
|
|
|
|
$1,152
|
|
1
|
|
$66
|
|
|
|
$1,086
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$4,162
|
|
|
|
$3,807
|
|
|
|
$355
|
|
|
|
$19
|
|
|
|
$336
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
105
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
105
|
|
|||||
Exchange traded derivatives
|
161
|
|
|
157
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||
Total derivative instrument liabilities
|
|
$4,428
|
|
|
|
$3,964
|
|
|
|
$464
|
|
2
|
|
$19
|
|
|
|
$445
|
|
•
|
MSRs
. The Company hedges these instruments with a combination of interest rate derivatives, including forward and option contracts, futures, and forward rate agreements.
|
•
|
IRLC
s and mortgage LHFS
. The Company hedges these instruments using forward and option contracts, futures, and forward rate agreements.
|
•
|
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
|
|
March 31, 2016
|
||||||||||||||||||
|
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
|
|
$707
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$707
|
|
Federal agency securities
|
—
|
|
|
304
|
|
|
—
|
|
|
—
|
|
|
304
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|||||
MBS - agency
|
—
|
|
|
686
|
|
|
—
|
|
|
—
|
|
|
686
|
|
|||||
CLO securities
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
454
|
|
|
—
|
|
|
—
|
|
|
454
|
|
|||||
CP
|
—
|
|
|
400
|
|
|
—
|
|
|
—
|
|
|
400
|
|
|||||
Equity securities
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|||||
Derivative instruments
|
286
|
|
|
5,503
|
|
|
37
|
|
|
(4,091
|
)
|
|
1,735
|
|
|||||
Trading loans
|
—
|
|
|
2,625
|
|
|
—
|
|
|
—
|
|
|
2,625
|
|
|||||
Total trading assets and derivative instruments
|
1,046
|
|
|
10,058
|
|
|
37
|
|
|
(4,091
|
)
|
|
7,050
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
3,797
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,797
|
|
|||||
Federal agency securities
|
—
|
|
|
389
|
|
|
—
|
|
|
—
|
|
|
389
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
153
|
|
|
5
|
|
|
—
|
|
|
158
|
|
|||||
MBS - agency
|
—
|
|
|
23,190
|
|
|
—
|
|
|
—
|
|
|
23,190
|
|
|||||
MBS - non-agency residential
|
—
|
|
|
—
|
|
|
88
|
|
|
—
|
|
|
88
|
|
|||||
ABS
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
32
|
|
|
5
|
|
|
—
|
|
|
37
|
|
|||||
Other equity securities
2
|
47
|
|
|
—
|
|
|
471
|
|
|
—
|
|
|
518
|
|
|||||
Total securities AFS
|
3,844
|
|
|
23,764
|
|
|
580
|
|
|
—
|
|
|
28,188
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential LHFS
|
—
|
|
|
1,589
|
|
|
4
|
|
|
—
|
|
|
1,593
|
|
|||||
LHFI
|
—
|
|
|
—
|
|
|
255
|
|
|
—
|
|
|
255
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
1,182
|
|
|
—
|
|
|
1,182
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading liabilities and derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
568
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
568
|
|
|||||
MBS - agency
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
311
|
|
|
—
|
|
|
—
|
|
|
311
|
|
|||||
Derivative instruments
|
149
|
|
|
5,257
|
|
|
5
|
|
|
(4,757
|
)
|
|
654
|
|
|||||
Total trading liabilities and derivative instruments
|
717
|
|
|
5,571
|
|
|
5
|
|
|
(4,757
|
)
|
|
1,536
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
—
|
|
|
975
|
|
|
—
|
|
|
—
|
|
|
975
|
|
|
December 31, 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
|
|
$538
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$538
|
|
Federal agency securities
|
—
|
|
|
588
|
|
|
—
|
|
|
—
|
|
|
588
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|||||
MBS - agency
|
—
|
|
|
553
|
|
|
—
|
|
|
—
|
|
|
553
|
|
|||||
CLO securities
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
379
|
|
|
89
|
|
|
—
|
|
|
468
|
|
|||||
CP
|
—
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|||||
Equity securities
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|||||
Derivative instruments
|
262
|
|
|
4,182
|
|
|
21
|
|
|
(3,313
|
)
|
|
1,152
|
|
|||||
Trading loans
|
—
|
|
|
2,655
|
|
|
—
|
|
|
—
|
|
|
2,655
|
|
|||||
Total trading assets and derivative instruments
|
866
|
|
|
8,456
|
|
|
110
|
|
|
(3,313
|
)
|
|
6,119
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
3,449
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,449
|
|
|||||
Federal agency securities
|
—
|
|
|
411
|
|
|
—
|
|
|
—
|
|
|
411
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
159
|
|
|
5
|
|
|
—
|
|
|
164
|
|
|||||
MBS - agency
|
—
|
|
|
23,124
|
|
|
—
|
|
|
—
|
|
|
23,124
|
|
|||||
MBS - non-agency residential
|
—
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
94
|
|
|||||
ABS
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
33
|
|
|
5
|
|
|
—
|
|
|
38
|
|
|||||
Other equity securities
2
|
93
|
|
|
—
|
|
|
440
|
|
|
—
|
|
|
533
|
|
|||||
Total securities AFS
|
3,542
|
|
|
23,727
|
|
|
556
|
|
|
—
|
|
|
27,825
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential LHFS
|
—
|
|
|
1,489
|
|
|
5
|
|
|
—
|
|
|
1,494
|
|
|||||
LHFI
|
—
|
|
|
—
|
|
|
257
|
|
|
—
|
|
|
257
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
1,307
|
|
|
—
|
|
|
1,307
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading liabilities and derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
503
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
503
|
|
|||||
MBS - agency
|
—
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
259
|
|
|
—
|
|
|
—
|
|
|
259
|
|
|||||
Derivative instruments
|
161
|
|
|
4,261
|
|
|
6
|
|
|
(3,964
|
)
|
|
464
|
|
|||||
Total trading liabilities and derivative instruments
|
664
|
|
|
4,557
|
|
|
6
|
|
|
(3,964
|
)
|
|
1,263
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
—
|
|
|
973
|
|
|
—
|
|
|
—
|
|
|
973
|
|
|||||
Other liabilities
3
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
(Dollars in millions)
|
Fair Value at
March 31, 2016
|
|
Aggregate UPB at
March 31, 2016
|
|
Fair Value
Over/(Under)
Unpaid Principal
|
||||||
Assets:
|
|
|
|
|
|
||||||
Trading loans
|
|
$2,625
|
|
|
|
$2,571
|
|
|
|
$54
|
|
LHFS:
|
|
|
|
|
|
||||||
Accruing
|
1,593
|
|
|
1,531
|
|
|
62
|
|
|||
LHFI:
|
|
|
|
|
|
||||||
Accruing
|
250
|
|
|
251
|
|
|
(1
|
)
|
|||
Nonaccrual
|
5
|
|
|
7
|
|
|
(2
|
)
|
|||
Liabilities:
|
|
|
|
|
|
||||||
Long-term debt
|
975
|
|
|
907
|
|
|
68
|
|
|||
|
|
|
|
|
|
||||||
(Dollars in millions)
|
Fair Value at December 31, 2015
|
|
Aggregate UPB at
December 31, 2015
|
|
Fair Value
Over/(Under)
Unpaid Principal
|
||||||
Assets:
|
|
|
|
|
|
||||||
Trading loans
|
|
$2,655
|
|
|
|
$2,605
|
|
|
|
$50
|
|
LHFS:
|
|
|
|
|
|
||||||
Accruing
|
1,494
|
|
|
1,453
|
|
|
41
|
|
|||
LHFI:
|
|
|
|
|
|
||||||
Accruing
|
254
|
|
|
259
|
|
|
(5
|
)
|
|||
Nonaccrual
|
3
|
|
|
5
|
|
|
(2
|
)
|
|||
Liabilities:
|
|
|
|
|
|
||||||
Long-term debt
|
973
|
|
|
907
|
|
|
66
|
|
|
Fair Value Gain/(Loss) for the Three Months Ended
March 31, 2016 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
|
|
Other Noninterest Income
|
|
Total Changes in Fair Values Included in Earnings
2
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading loans
|
|
$6
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$6
|
|
LHFS
|
—
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|||||
LHFI
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
(247
|
)
|
|
—
|
|
|
(247
|
)
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
Fair Value Gain/(Loss) for the Three Months Ended
March 31, 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 Earnings
2
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Trading loans
|
|
$4
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$4
|
|
LHFS
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||
LHFI
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
MSRs
|
—
|
|
|
1
|
|
|
(126
|
)
|
|
(125
|
)
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Level 3 Significant Unobservable Input Assumptions
|
||||||||
(Dollars in millions)
|
Fair value
March 31, 2016 |
|
Valuation Technique
|
|
Unobservable Input
1
|
|
Range
(weighted average)
|
||
Assets
|
|
|
|
|
|
|
|
||
Trading assets and derivative instruments:
|
|
|
|
|
|
|
|
||
Derivative instruments, net
2
|
|
$32
|
|
|
Internal model
|
|
Pull through rate
|
|
41-100% (75%)
|
|
MSR value
|
|
23-191 bps (96 bps)
|
||||||
Securities AFS:
|
|
|
|
|
|
|
|
||
U.S. states and political subdivisions
|
5
|
|
|
Cost
|
|
N/A
|
|
|
|
MBS - non-agency residential
|
88
|
|
|
Third party pricing
|
|
N/A
|
|
|
|
ABS
|
11
|
|
|
Third party pricing
|
|
N/A
|
|
|
|
Corporate and other debt securities
|
5
|
|
|
Cost
|
|
N/A
|
|
|
|
Other equity securities
|
471
|
|
|
Cost
|
|
N/A
|
|
|
|
Residential LHFS
|
4
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
104-197 bps (128 bps)
|
|
Conditional prepayment rate
|
2-21 CPR (11 CPR)
|
||||||||
Conditional default rate
|
0-2 CDR (0.6 CDR)
|
||||||||
LHFI
|
248
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
62-784 bps (198 bps)
|
|
Conditional prepayment rate
|
3-38 CPR (15 CPR)
|
||||||||
Conditional default rate
|
0-5 CDR (1.8 CDR)
|
||||||||
7
|
|
Collateral based pricing
|
Appraised value
|
NM
3
|
|||||
MSRs
|
1,182
|
|
|
Monte Carlo/Discounted cash flow
|
|
Conditional prepayment rate
|
|
2-20 CPR (13 CPR)
|
|
|
Option adjusted spread
|
|
(5)-86% (8%)
|
|
Level 3 Significant Unobservable Input Assumptions
|
||||||||
(Dollars in millions)
|
Fair value December 31, 2015
|
|
Valuation Technique
|
|
Unobservable Input
1
|
|
Range
(weighted average)
|
||
Assets
|
|
|
|
|
|
|
|
||
Trading assets and derivative instruments:
|
|
|
|
|
|
|
|
||
Corporate and other debt securities
|
|
$89
|
|
|
Market comparables
|
|
Yield adjustment
|
|
126-447 bps (287 bps)
|
Derivative instruments, net
2
|
15
|
|
|
Internal model
|
|
Pull through rate
|
|
24-100% (79%)
|
|
|
MSR value
|
|
29-210 bps (103 bps)
|
||||||
Securities AFS:
|
|
|
|
|
|
|
|
||
U.S. states and political subdivisions
|
5
|
|
|
Cost
|
|
N/A
|
|
|
|
MBS - non-agency residential
|
94
|
|
|
Third party pricing
|
|
N/A
|
|
|
|
ABS
|
12
|
|
|
Third party pricing
|
|
N/A
|
|
|
|
Corporate and other debt securities
|
5
|
|
|
Cost
|
|
N/A
|
|
|
|
Other equity securities
|
440
|
|
|
Cost
|
|
N/A
|
|
|
|
Residential LHFS
|
5
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
104-197 bps (125 bps)
|
|
|
Conditional prepayment rate
|
|
2-17 CPR (8 CPR)
|
||||||
|
Conditional default rate
|
|
0-2 CDR (0.5 CDR)
|
||||||
LHFI
|
251
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
62-784 bps (193 bps)
|
|
|
Conditional prepayment rate
|
|
5-36 CPR (14 CPR)
|
||||||
|
Conditional default rate
|
|
0-5 CDR (1.7 CDR)
|
||||||
6
|
|
|
Collateral based pricing
|
|
Appraised value
|
|
NM
4
|
||
MSRs
|
1,307
|
|
|
Monte Carlo/Discounted cash flow
|
|
Conditional prepayment rate
|
|
2-21 CPR (10 CPR)
|
|
|
Option adjusted spread
|
|
(5)-110% (8%)
|
||||||
Liabilities
|
|
|
|
|
|
|
|
||
Other liabilities
3
|
23
|
|
|
Internal model
|
|
Loan production volume
|
|
150% (150%)
|
|
Fair Value Measurements
Using Significant Unobservable Inputs
|
|
||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Beginning
Balance January 1, 2016 |
|
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 March 31, 2016
|
|
Included in Earnings (held at March 31, 2016
1
)
|
|
||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Corporate and other debt securities
|
|
$89
|
|
|
|
($1
|
)
|
2
|
|
$—
|
|
|
|
$—
|
|
|
|
($88
|
)
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
Derivative instruments, net
|
15
|
|
|
45
|
|
3
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
32
|
|
|
36
|
|
3
|
|||||||||||
Total trading assets
|
104
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
(88
|
)
|
|
1
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
32
|
|
|
36
|
|
|
|||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
U.S. states and political subdivisions
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
MBS - non-agency residential
|
94
|
|
|
—
|
|
|
(1
|
)
|
4
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|
—
|
|
|
|||||||||||
ABS
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
|||||||||||
Corporate and other debt securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
Other equity securities
|
440
|
|
|
—
|
|
|
—
|
|
|
106
|
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
471
|
|
|
—
|
|
|
|||||||||||
Total securities AFS
|
556
|
|
|
—
|
|
|
(1
|
)
|
4
|
106
|
|
|
—
|
|
|
(81
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
580
|
|
|
—
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential LHFS
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(1
|
)
|
|
9
|
|
|
(2
|
)
|
|
4
|
|
|
—
|
|
|
|||||||||||
LHFI
|
257
|
|
|
3
|
|
5
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
1
|
|
|
4
|
|
|
—
|
|
|
255
|
|
|
3
|
|
5
|
|||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other liabilities
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
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 March 31, 2015
|
|
Included in Earnings (held at Mach 31, 2015
1
)
|
|
||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Derivative instruments, net
|
|
$20
|
|
|
|
$77
|
|
2
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
($60
|
)
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$37
|
|
|
|
$41
|
|
2
|
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
U.S. states and political subdivisions
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
|||||||||||
MBS - non-agency residential
|
123
|
|
|
—
|
|
|
1
|
|
3
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
119
|
|
|
—
|
|
|
|||||||||||
ABS
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
|||||||||||
Corporate and other debt securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
|||||||||||
Other equity securities
|
785
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
(190
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
616
|
|
|
—
|
|
|
|||||||||||
Total securities AFS
|
946
|
|
|
—
|
|
|
1
|
|
3
|
21
|
|
|
—
|
|
|
(201
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
767
|
|
|
—
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential LHFS
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
|||||||||||
LHFI
|
272
|
|
|
3
|
|
4
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
268
|
|
|
2
|
|
4
|
|||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other liabilities
|
27
|
|
|
4
|
|
5
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
|
|
|
Fair Value Measurements
|
|
Losses for the
Three Months Ended
March 31, 2016
|
||||||||||||||
(Dollars in millions)
|
March 31, 2016
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||
LHFS
|
|
$198
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$198
|
|
|
|
($4
|
)
|
LHFI
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|||||
OREO
|
11
|
|
|
—
|
|
|
2
|
|
|
9
|
|
|
(1
|
)
|
|||||
Other assets
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Fair Value Measurements
|
|
Losses for the
Year Ended
December 31, 2015
|
||||||||||||||
(Dollars in millions)
|
December 31, 2015
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||
LHFS
|
|
$202
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$202
|
|
|
|
($6
|
)
|
LHFI
|
48
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|||||
OREO
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
(4
|
)
|
|||||
Other assets
|
36
|
|
|
—
|
|
|
29
|
|
|
7
|
|
|
(6
|
)
|
|
March 31, 2016
|
|
Fair Value Measurements
|
|
||||||||||||||||
(Dollars in millions)
|
Measured
Amount
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$4,327
|
|
|
|
$4,327
|
|
|
|
$4,327
|
|
|
|
$—
|
|
|
|
$—
|
|
(a)
|
Trading assets and derivative instruments
|
7,050
|
|
|
7,050
|
|
|
1,046
|
|
|
5,967
|
|
|
37
|
|
(b)
|
|||||
Securities AFS
|
28,188
|
|
|
28,188
|
|
|
3,844
|
|
|
23,764
|
|
|
580
|
|
(b)
|
|||||
LHFS
|
1,911
|
|
|
1,915
|
|
|
—
|
|
|
1,866
|
|
|
49
|
|
(c)
|
|||||
LHFI, net
|
137,976
|
|
|
135,954
|
|
|
—
|
|
|
366
|
|
|
135,588
|
|
(d)
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
152,161
|
|
|
152,144
|
|
|
—
|
|
|
152,144
|
|
|
—
|
|
(e)
|
|||||
Short-term borrowings
|
4,944
|
|
|
4,944
|
|
|
—
|
|
|
4,944
|
|
|
—
|
|
(f)
|
|||||
Long-term debt
|
8,514
|
|
|
8,435
|
|
|
—
|
|
|
7,744
|
|
|
691
|
|
(f)
|
|||||
Trading liabilities and derivative instruments
|
1,536
|
|
|
1,536
|
|
|
717
|
|
|
814
|
|
|
5
|
|
(b)
|
|
December 31, 2015
|
|
Fair Value Measurements
|
|
||||||||||||||||
(Dollars in millions)
|
Measured
Amount
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$5,599
|
|
|
|
$5,599
|
|
|
|
$5,599
|
|
|
|
$—
|
|
|
|
$—
|
|
(a)
|
Trading assets and derivative instruments
|
6,119
|
|
|
6,119
|
|
|
866
|
|
|
5,143
|
|
|
110
|
|
(b)
|
|||||
Securities AFS
|
27,825
|
|
|
27,825
|
|
|
3,542
|
|
|
23,727
|
|
|
556
|
|
(b)
|
|||||
LHFS
|
1,838
|
|
|
1,842
|
|
|
—
|
|
|
1,803
|
|
|
39
|
|
(c)
|
|||||
LHFI, net
|
134,690
|
|
|
131,178
|
|
|
—
|
|
|
397
|
|
|
130,781
|
|
(d)
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
149,830
|
|
|
149,889
|
|
|
—
|
|
|
149,889
|
|
|
—
|
|
(e)
|
|||||
Short-term borrowings
|
4,627
|
|
|
4,627
|
|
|
—
|
|
|
4,627
|
|
|
—
|
|
(f)
|
|||||
Long-term debt
|
8,462
|
|
|
8,374
|
|
|
—
|
|
|
7,772
|
|
|
602
|
|
(f)
|
|||||
Trading liabilities and derivative instruments
|
1,263
|
|
|
1,263
|
|
|
664
|
|
|
593
|
|
|
6
|
|
(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
|
(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
|
(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 no similar instruments that can be used to value the instrument without using significant unobservable assumptions. In these situations, 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 and payments, loans, brokerage, and various fee-based services. Discount/online and full-service
|
•
|
Consumer Lending offers an array of lending products to consumers and small business clients via the Company's Consumer Banking and Private Wealth Management businesses, through online channels (
www.suntrust.com
and
www.lightstream.com
), as well as through various national offices and partnerships. Products offered include home equity lines, personal credit lines and loans, direct auto, indirect auto, student lending, credit cards, and other lending products.
|
•
|
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
|
•
|
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, and technology, media and communications. 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 lending, cash management and investment banking solutions via
STRH
to commercial clients (generally those with 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 provides 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 and equity investment solutions via
STRH
. The Institutional Real Estate team targets relationships with institutional advisors, private funds, and insurance companies and the Regional team focuses on real estate owners and developers through a regional delivery structure. Commercial Real Estate also offers tailored financing and equity investment solutions for community development and affordable housing projects through
STCC
, with particular expertise in Low Income Housing Tax Credits and New Market Tax Credits.
|
•
|
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
|
•
|
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 reflect matched maturity funds transfer pricing, which ascribes credits or charges based on the economic value or cost created by the assets and liabilities of each segment. The difference between funds credits and funds charges at the segment level resides in Reconciling Items. The change in this variance is generally attributable to corporate balance sheet management strategies.
|
•
|
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 commitments reserve balances.
|
•
|
Provision 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 for income taxes at the segment level and the consolidated provision for income taxes is reported in Reconciling Items.
|
•
|
Operational costs
– Expenses are charged to the segments based on various statistical volumes multiplied by activity
|
•
|
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 March 31, 2016
|
||||||||||||||||||||||
(Dollars in millions)
|
Consumer
Banking and Private Wealth Management |
|
Wholesale Banking
|
|
Mortgage Banking
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average loans
|
|
$41,597
|
|
|
|
$70,757
|
|
|
|
$25,946
|
|
|
|
$72
|
|
|
|
$—
|
|
|
|
$138,372
|
|
Average consumer and commercial deposits
|
93,314
|
|
|
53,567
|
|
|
2,311
|
|
|
85
|
|
|
(48
|
)
|
|
149,229
|
|
||||||
Average total assets
|
47,268
|
|
|
84,375
|
|
|
29,203
|
|
|
30,564
|
|
|
1,604
|
|
|
193,014
|
|
||||||
Average total liabilities
|
93,933
|
|
|
59,439
|
|
|
2,686
|
|
|
13,178
|
|
|
(19
|
)
|
|
169,217
|
|
||||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,797
|
|
|
23,797
|
|
||||||
Statements of Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$700
|
|
|
|
$457
|
|
|
|
$112
|
|
|
|
$30
|
|
|
|
($17
|
)
|
|
|
$1,282
|
|
FTE adjustment
|
—
|
|
|
35
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
36
|
|
||||||
Net interest income - FTE
1
|
700
|
|
|
492
|
|
|
112
|
|
|
31
|
|
|
(17
|
)
|
|
1,318
|
|
||||||
Provision/(benefit) for credit losses
2
|
29
|
|
|
82
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
101
|
|
||||||
Net interest income after provision/(benefit) for credit losses - FTE
|
671
|
|
|
410
|
|
|
122
|
|
|
31
|
|
|
(17
|
)
|
|
1,217
|
|
||||||
Total noninterest income
|
355
|
|
|
285
|
|
|
124
|
|
|
22
|
|
|
(5
|
)
|
|
781
|
|
||||||
Total noninterest expense
|
748
|
|
|
407
|
|
|
175
|
|
|
(6
|
)
|
|
(6
|
)
|
|
1,318
|
|
||||||
Income before provision for income taxes - FTE
|
278
|
|
|
288
|
|
|
71
|
|
|
59
|
|
|
(16
|
)
|
|
680
|
|
||||||
Provision for income taxes - FTE
3
|
104
|
|
|
91
|
|
|
26
|
|
|
18
|
|
|
(8
|
)
|
|
231
|
|
||||||
Net income including income attributable to noncontrolling interest
|
174
|
|
|
197
|
|
|
45
|
|
|
41
|
|
|
(8
|
)
|
|
449
|
|
||||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Net income
|
|
$174
|
|
|
|
$197
|
|
|
|
$45
|
|
|
|
$39
|
|
|
|
($8
|
)
|
|
|
$447
|
|
|
Three Months Ended March 31, 2015
|
||||||||||||||||||||||
(Dollars in millions)
|
Consumer
Banking and Private Wealth Management |
|
Wholesale Banking
|
|
Mortgage Banking
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average loans
|
|
$41,127
|
|
|
|
$67,733
|
|
|
|
$24,439
|
|
|
|
$43
|
|
|
|
($4
|
)
|
|
|
$133,338
|
|
Average consumer and commercial deposits
|
90,507
|
|
|
47,565
|
|
|
2,359
|
|
|
90
|
|
|
(45
|
)
|
|
140,476
|
|
||||||
Average total assets
|
47,129
|
|
|
81,160
|
|
|
27,936
|
|
|
29,013
|
|
|
4,027
|
|
|
189,265
|
|
||||||
Average total liabilities
|
91,158
|
|
|
53,685
|
|
|
2,615
|
|
|
18,713
|
|
|
(78
|
)
|
|
166,093
|
|
||||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,172
|
|
|
23,172
|
|
||||||
Statements of Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$666
|
|
|
|
$430
|
|
|
|
$121
|
|
|
|
$29
|
|
|
|
($106
|
)
|
|
|
$1,140
|
|
FTE adjustment
|
—
|
|
|
34
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
35
|
|
||||||
Net interest income - FTE
1
|
666
|
|
|
464
|
|
|
121
|
|
|
30
|
|
|
(106
|
)
|
|
1,175
|
|
||||||
Provision/(benefit) for credit losses
2
|
70
|
|
|
(4
|
)
|
|
(10
|
)
|
|
—
|
|
|
(1
|
)
|
|
55
|
|
||||||
Net interest income after provision/(benefit) for credit losses - FTE
|
596
|
|
|
468
|
|
|
131
|
|
|
30
|
|
|
(105
|
)
|
|
1,120
|
|
||||||
Total noninterest income
|
363
|
|
|
285
|
|
|
132
|
|
|
42
|
|
|
(5
|
)
|
|
817
|
|
||||||
Total noninterest expense
|
730
|
|
|
397
|
|
|
178
|
|
|
(19
|
)
|
|
(6
|
)
|
|
1,280
|
|
||||||
Income before provision for income taxes - FTE
|
229
|
|
|
356
|
|
|
85
|
|
|
91
|
|
|
(104
|
)
|
|
657
|
|
||||||
Provision for income taxes - FTE
3
|
85
|
|
|
120
|
|
|
30
|
|
|
31
|
|
|
(40
|
)
|
|
226
|
|
||||||
Net income including income attributable to noncontrolling interest
|
144
|
|
|
236
|
|
|
55
|
|
|
60
|
|
|
(64
|
)
|
|
431
|
|
||||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Net income
|
|
$144
|
|
|
|
$236
|
|
|
|
$55
|
|
|
|
$58
|
|
|
|
($64
|
)
|
|
|
$429
|
|
(Dollars in millions)
|
Securities AFS
|
|
Derivative Instruments
|
|
Long-Term Debt
|
|
Employee Benefit Plans
|
|
Total
|
||||||||||
Three Months Ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
|
$135
|
|
|
|
$87
|
|
|
|
$—
|
|
|
|
($682
|
)
|
|
|
($460
|
)
|
Cumulative credit risk adjustment
1
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
Net unrealized gains/(losses) arising during the period
|
279
|
|
|
192
|
|
|
(2
|
)
|
1
|
—
|
|
|
469
|
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
59
|
|
|
17
|
|
|||||
Other comprehensive income/(loss), net of tax
|
279
|
|
|
150
|
|
|
(2
|
)
|
|
59
|
|
|
486
|
|
|||||
Balance, end of period
|
|
$414
|
|
|
|
$237
|
|
|
|
($7
|
)
|
|
|
($623
|
)
|
|
|
$21
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
|
$298
|
|
|
|
$97
|
|
|
|
$—
|
|
|
|
($517
|
)
|
|
|
($122
|
)
|
Net unrealized gains arising during the period
|
86
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
164
|
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
(34
|
)
|
|
—
|
|
|
(73
|
)
|
|
(107
|
)
|
|||||
Other comprehensive income/(loss), net of tax
|
86
|
|
|
44
|
|
|
—
|
|
|
(73
|
)
|
|
57
|
|
|||||
Balance, end of period
|
|
$384
|
|
|
|
$141
|
|
|
|
$—
|
|
|
|
($590
|
)
|
|
|
($65
|
)
|
(Dollars in millions)
|
|
Three Months Ended March 31
|
|
Affected Line Item in the Statement Where Net Income is Presented
|
||||||
Details About AOCI Components
|
|
2016
|
|
2015
|
|
|||||
Derivative Instruments:
|
|
|
|
|
|
|
||||
Realized gains on cash flow hedges
|
|
|
($67
|
)
|
|
|
($54
|
)
|
|
Interest and fees on loans
|
Tax effect
|
|
25
|
|
|
20
|
|
|
Provision for income taxes
|
||
|
|
(42
|
)
|
|
(34
|
)
|
|
|
||
|
|
|
|
|
|
|
||||
Employee Benefit Plans:
|
|
|
|
|
|
|
||||
Amortization of prior service credit
|
|
(1
|
)
|
|
(1
|
)
|
|
Employee benefits
|
||
Amortization of actuarial loss
|
|
6
|
|
|
5
|
|
|
Employee benefits
|
||
Adjustment to funded status of employee benefit obligation
|
|
89
|
|
|
(120
|
)
|
|
Other assets/other liabilities
|
||
|
|
94
|
|
|
(116
|
)
|
|
|
||
Tax effect
|
|
(35
|
)
|
|
43
|
|
|
Provision for income taxes
|
||
|
|
59
|
|
|
(73
|
)
|
|
|
||
|
|
|
|
|
|
|
||||
Total reclassifications from AOCI
|
|
|
$17
|
|
|
|
($107
|
)
|
|
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
|
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 March 31
|
|||||||
Selected Financial Data
|
2016
|
|
2015
|
||||
Summary of Operations:
|
|
|
|
||||
Interest income
|
|
$1,411
|
|
|
|
$1,272
|
|
Interest expense
|
129
|
|
|
132
|
|
||
Net interest income
|
1,282
|
|
|
1,140
|
|
||
Provision for credit losses
|
101
|
|
|
55
|
|
||
Net interest income after provision for credit losses
|
1,181
|
|
|
1,085
|
|
||
Noninterest income
|
781
|
|
|
817
|
|
||
Noninterest expense
|
1,318
|
|
|
1,280
|
|
||
Income before provision for income taxes
|
644
|
|
|
622
|
|
||
Provision for income taxes
|
195
|
|
|
191
|
|
||
Net income attributable to noncontrolling interest
|
2
|
|
|
2
|
|
||
Net income
|
|
$447
|
|
|
|
$429
|
|
Net income available to common shareholders
|
|
$430
|
|
|
|
$411
|
|
Net interest income - FTE
1
|
|
$1,318
|
|
|
|
$1,175
|
|
Total revenue - FTE
1
|
2,099
|
|
|
1,992
|
|
||
Net income per average common share:
|
|
|
|
||||
Diluted
|
|
$0.84
|
|
|
|
$0.78
|
|
Basic
|
0.85
|
|
|
0.79
|
|
||
Dividends paid per average common share
|
0.24
|
|
|
0.20
|
|
||
Book value per common share
|
44.97
|
|
|
42.01
|
|
||
Tangible book value per common share
2
|
32.90
|
|
|
30.29
|
|
||
Market capitalization
|
18,236
|
|
|
21,450
|
|
||
Selected Average Balances:
|
|
|
|
||||
Total assets
|
|
$193,014
|
|
|
|
$189,265
|
|
Earning assets
|
174,189
|
|
|
168,179
|
|
||
Loans
|
138,372
|
|
|
133,338
|
|
||
Consumer and commercial deposits
|
149,229
|
|
|
140,476
|
|
||
Brokered time and foreign deposits
|
902
|
|
|
1,250
|
|
||
Intangible assets including MSRs
|
7,569
|
|
|
7,502
|
|
||
MSRs
|
1,215
|
|
|
1,152
|
|
||
Preferred stock
|
1,225
|
|
|
1,225
|
|
||
Total shareholders’ equity
|
23,797
|
|
|
23,172
|
|
||
Average common shares - diluted
|
509,931
|
|
|
526,837
|
|
||
Average common shares - basic
|
505,482
|
|
|
521,020
|
|
||
Financial Ratios (Annualized):
|
|
|
|
||||
ROA
|
0.93
|
%
|
|
0.92
|
%
|
||
ROE
3
|
7.71
|
|
|
7.63
|
|
||
ROTCE
4
|
10.60
|
|
|
10.64
|
|
||
Net interest margin - FTE
1
|
3.04
|
|
|
2.83
|
|
||
Efficiency ratio
5
|
62.81
|
|
|
64.23
|
|
||
Tangible efficiency ratio
6
|
62.33
|
|
|
63.91
|
|
||
Total average shareholders’ equity to total average assets
|
12.33
|
|
|
12.24
|
|
||
Tangible equity to tangible assets
7
|
9.56
|
|
|
9.34
|
|
||
Capital Ratios at period end
8
:
|
|
|
|
||||
CET1
|
9.90
|
%
|
|
9.89
|
%
|
||
CET1 - fully phased-in
|
9.77
|
|
|
9.74
|
|
||
Tier 1 capital
|
10.63
|
|
|
10.76
|
|
||
Total capital
|
12.39
|
|
|
12.69
|
|
||
Leverage
|
9.50
|
|
|
9.41
|
|
Selected Financial Data and Reconcilement of Non-U.S. GAAP Measures (continued)
|
|||||||
(Dollars in millions, except per share data)
|
|
||||||
Three Months Ended March 31
|
|||||||
Reconcilement of Non-U.S. GAAP Measures
|
2016
|
|
2015
|
||||
Efficiency ratio
5
|
62.81
|
%
|
|
64.23
|
%
|
||
Impact of excluding amortization
|
(0.48
|
)
|
|
(0.32
|
)
|
||
Tangible efficiency ratio
6
|
62.33
|
%
|
|
63.91
|
%
|
||
|
|
|
|
||||
ROE
3
|
7.71
|
%
|
|
7.63
|
%
|
||
Impact of removing average intangible assets (net of deferred taxes), other than MSRs and other servicing rights, from average common shareholders' equity
|
2.89
|
|
|
3.01
|
|
||
ROTCE
4
|
10.60
|
%
|
|
10.64
|
%
|
||
|
|
|
|
||||
Net interest income
|
|
$1,282
|
|
|
|
$1,140
|
|
Taxable-equivalent adjustment
|
36
|
|
|
35
|
|
||
Net interest income - FTE
1
|
1,318
|
|
|
1,175
|
|
||
Noninterest income
|
781
|
|
|
817
|
|
||
Total revenue - FTE
1
|
|
$2,099
|
|
|
|
$1,992
|
|
|
|
|
|
||||
|
|
|
|
||||
(Dollars in millions, except per share data)
|
March 31, 2016
|
|
March 31, 2015
|
||||
Total shareholders’ equity
|
|
$24,053
|
|
|
|
$23,260
|
|
Goodwill, net of deferred taxes
9
|
(6,094
|
)
|
|
(6,106
|
)
|
||
Other intangible assets (including MSRs and other servicing rights), net of deferred taxes
10
|
(1,195
|
)
|
|
(1,193
|
)
|
||
MSRs and other servicing rights
|
1,189
|
|
|
1,181
|
|
||
Tangible equity
|
17,953
|
|
|
17,142
|
|
||
Noncontrolling interest
|
(101
|
)
|
|
(106
|
)
|
||
Preferred stock
|
(1,225
|
)
|
|
(1,225
|
)
|
||
Tangible common equity
|
|
$16,627
|
|
|
|
$15,811
|
|
|
|
|
|
||||
Total assets
|
|
$194,158
|
|
|
|
$189,881
|
|
Goodwill
|
(6,337
|
)
|
|
(6,337
|
)
|
||
Other intangible assets, including MSRs and other servicing rights
|
(1,198
|
)
|
|
(1,193
|
)
|
||
MSRs and other servicing rights
|
1,189
|
|
|
1,181
|
|
||
Tangible assets
|
|
$187,812
|
|
|
|
$183,532
|
|
Tangible equity to tangible assets
7
|
9.56
|
%
|
|
9.34
|
%
|
||
Tangible book value per common share
2
|
|
$32.90
|
|
|
|
$30.29
|
|
|
|
|
|
||||
Total LHFI
|
|
$139,746
|
|
|
|
$132,380
|
|
Government-guaranteed LHFI
|
(5,888
|
)
|
|
(4,992
|
)
|
||
LHFI at fair value
|
(255
|
)
|
|
(268
|
)
|
||
Total LHFI, excluding government-guaranteed and fair value loans
|
|
$133,603
|
|
|
|
$127,120
|
|
ALLL to total LHFI, excluding government-guaranteed and fair value loans
11
|
1.32
|
%
|
|
1.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data and Reconcilement of Non-U.S. GAAP Measures (continued)
|
|
|
||||
|
|
|
|
|||
Reconciliation of CET1 Ratio
8
|
March 31, 2016
|
|
March 31, 2015
|
|||
CET1
|
9.90
|
%
|
|
9.89
|
%
|
|
Less:
|
|
|
|
|||
MSRs
|
(0.10
|
)
|
|
(0.11
|
)
|
|
Other
12
|
(0.03
|
)
|
|
(0.04
|
)
|
|
CET1 - fully phased-in
|
9.77
|
%
|
|
9.74
|
%
|
|
|
|
|
|
|||
|
|
|
|
|||
(Dollars in millions)
|
|
|
|
|||
Reconciliation of Pre-Provision Net Revenue ("PPNR")
13
|
Three Months Ended March 31, 2016
|
|
|
|||
Income before provision for income taxes
|
|
$644
|
|
|
|
|
Provision for credit losses
|
101
|
|
|
|
||
Less:
|
|
|
|
|||
Net securities gains
|
—
|
|
|
|
||
PPNR
|
|
$745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Daily Average Balances, Income/Expense, and Average Yields Earned/Rates Paid
|
|
Table 2
|
|
|||||||||||||||||||||||||
|
Three Months Ended
|
|
||||||||||||||||||||||||||
|
March 31, 2016
|
|
March 31, 2015
|
|
Increase/(Decrease)
|
|||||||||||||||||||||||
(Dollars in millions)
|
Average
Balances
|
|
Income/
Expense
|
|
Yields/
Rates
|
|
Average
Balances
|
|
Income/
Expense
|
|
Yields/
Rates
|
|
Average
Balances
|
|
Yields/
Rates
|
|||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loans held for investment:
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
C&I - FTE
2
|
|
$68,058
|
|
|
|
$564
|
|
|
3.34
|
%
|
|
|
$65,725
|
|
|
|
$511
|
|
|
3.15
|
%
|
|
|
$2,333
|
|
|
0.19
|
|
CRE
|
6,066
|
|
|
44
|
|
|
2.91
|
|
|
6,475
|
|
|
44
|
|
|
2.77
|
|
|
(409
|
)
|
|
0.14
|
|
|||||
Commercial construction
|
2,232
|
|
|
18
|
|
|
3.28
|
|
|
1,342
|
|
|
10
|
|
|
3.17
|
|
|
890
|
|
|
0.11
|
|
|||||
Residential mortgages - guaranteed
|
641
|
|
|
6
|
|
|
3.80
|
|
|
638
|
|
|
6
|
|
|
3.58
|
|
|
3
|
|
|
0.22
|
|
|||||
Residential mortgages - nonguaranteed
|
24,712
|
|
|
236
|
|
|
3.81
|
|
|
23,104
|
|
|
222
|
|
|
3.84
|
|
|
1,608
|
|
|
(0.03
|
)
|
|||||
Residential home equity products
|
12,849
|
|
|
126
|
|
|
3.95
|
|
|
13,953
|
|
|
125
|
|
|
3.63
|
|
|
(1,104
|
)
|
|
0.32
|
|
|||||
Residential construction
|
368
|
|
|
4
|
|
|
4.42
|
|
|
398
|
|
|
5
|
|
|
5.21
|
|
|
(30
|
)
|
|
(0.79
|
)
|
|||||
Consumer student - guaranteed
|
5,092
|
|
|
50
|
|
|
3.98
|
|
|
4,755
|
|
|
43
|
|
|
3.70
|
|
|
337
|
|
|
0.28
|
|
|||||
Consumer other direct
|
6,239
|
|
|
70
|
|
|
4.48
|
|
|
4,747
|
|
|
50
|
|
|
4.24
|
|
|
1,492
|
|
|
0.24
|
|
|||||
Consumer indirect
|
10,279
|
|
|
87
|
|
|
3.39
|
|
|
10,708
|
|
|
83
|
|
|
3.13
|
|
|
(429
|
)
|
|
0.26
|
|
|||||
Consumer credit cards
|
1,077
|
|
|
28
|
|
|
10.31
|
|
|
880
|
|
|
22
|
|
|
9.84
|
|
|
197
|
|
|
0.47
|
|
|||||
Nonaccrual
3
|
759
|
|
|
5
|
|
|
2.72
|
|
|
613
|
|
|
4
|
|
|
2.90
|
|
|
146
|
|
|
(0.18
|
)
|
|||||
Total LHFI - FTE
2
|
138,372
|
|
|
1,238
|
|
|
3.60
|
|
|
133,338
|
|
|
1,125
|
|
|
3.42
|
|
|
5,034
|
|
|
0.18
|
|
|||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Taxable
|
27,164
|
|
|
162
|
|
|
2.39
|
|
|
25,676
|
|
|
139
|
|
|
2.17
|
|
|
1,488
|
|
|
0.22
|
|
|||||
Tax-exempt - FTE
2
|
151
|
|
|
2
|
|
|
5.22
|
|
|
192
|
|
|
2
|
|
|
5.19
|
|
|
(41
|
)
|
|
0.03
|
|
|||||
Total securities AFS - FTE
2
|
27,315
|
|
|
164
|
|
|
2.40
|
|
|
25,868
|
|
|
141
|
|
|
2.18
|
|
|
1,447
|
|
|
0.22
|
|
|||||
Fed funds sold and securities borrowed or purchased
under agreements to resell
|
1,234
|
|
|
—
|
|
|
0.18
|
|
|
1,141
|
|
|
—
|
|
|
—
|
|
|
93
|
|
|
0.18
|
|
|||||
LHFS - FTE
2
|
1,816
|
|
|
19
|
|
|
4.15
|
|
|
2,630
|
|
|
22
|
|
|
3.33
|
|
|
(814
|
)
|
|
0.82
|
|
|||||
Interest-bearing deposits in other banks
|
23
|
|
|
—
|
|
|
0.47
|
|
|
23
|
|
|
—
|
|
|
0.12
|
|
|
—
|
|
|
0.35
|
|
|||||
Interest earning trading assets
|
5,429
|
|
|
26
|
|
|
1.86
|
|
|
5,179
|
|
|
19
|
|
|
1.49
|
|
|
250
|
|
|
0.37
|
|
|||||
Total earning assets - FTE
2
|
174,189
|
|
|
1,447
|
|
|
3.34
|
|
|
168,179
|
|
|
1,307
|
|
|
3.15
|
|
|
6,010
|
|
|
0.19
|
|
|||||
ALLL
|
(1,750
|
)
|
|
|
|
|
|
(1,910
|
)
|
|
|
|
|
|
160
|
|
|
|
||||||||||
Cash and due from banks
|
4,015
|
|
|
|
|
|
|
6,567
|
|
|
|
|
|
|
(2,552
|
)
|
|
|
||||||||||
Other assets
|
14,639
|
|
|
|
|
|
|
14,417
|
|
|
|
|
|
|
222
|
|
|
|
||||||||||
Noninterest earning trading assets and derivative instruments
|
1,387
|
|
|
|
|
|
|
1,402
|
|
|
|
|
|
|
(15
|
)
|
|
|
||||||||||
Unrealized gains on securities available for sale, net
|
534
|
|
|
|
|
|
|
610
|
|
|
|
|
|
|
(76
|
)
|
|
|
||||||||||
Total assets
|
|
$193,014
|
|
|
|
|
|
|
|
$189,265
|
|
|
|
|
|
|
|
$3,749
|
|
|
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NOW accounts
|
|
$37,994
|
|
|
|
$10
|
|
|
0.10
|
%
|
|
|
$33,159
|
|
|
|
$7
|
|
|
0.09
|
%
|
|
|
$4,835
|
|
|
0.01
|
|
Money market accounts
|
53,063
|
|
|
24
|
|
|
0.18
|
|
|
49,193
|
|
|
21
|
|
|
0.18
|
|
|
3,870
|
|
|
—
|
|
|||||
Savings
|
6,179
|
|
|
—
|
|
|
0.03
|
|
|
6,082
|
|
|
1
|
|
|
0.04
|
|
|
97
|
|
|
(0.01
|
)
|
|||||
Consumer time
|
6,104
|
|
|
12
|
|
|
0.79
|
|
|
6,793
|
|
|
13
|
|
|
0.77
|
|
|
(689
|
)
|
|
0.02
|
|
|||||
Other time
|
3,813
|
|
|
10
|
|
|
1.04
|
|
|
3,957
|
|
|
10
|
|
|
1.00
|
|
|
(144
|
)
|
|
0.04
|
|
|||||
Total interest-bearing consumer and commercial deposits
|
107,153
|
|
|
56
|
|
|
0.21
|
|
|
99,184
|
|
|
52
|
|
|
0.21
|
|
|
7,969
|
|
|
—
|
|
|||||
Brokered time deposits
|
898
|
|
|
3
|
|
|
1.37
|
|
|
916
|
|
|
4
|
|
|
1.50
|
|
|
(18
|
)
|
|
(0.13
|
)
|
|||||
Foreign deposits
|
4
|
|
|
—
|
|
|
0.33
|
|
|
334
|
|
|
—
|
|
|
0.13
|
|
|
(330
|
)
|
|
0.20
|
|
|||||
Total interest-bearing deposits
|
108,055
|
|
|
59
|
|
|
0.22
|
|
|
100,434
|
|
|
56
|
|
|
0.22
|
|
|
7,621
|
|
|
—
|
|
|||||
Funds purchased
|
1,399
|
|
|
1
|
|
|
0.35
|
|
|
1,040
|
|
|
—
|
|
|
0.10
|
|
|
359
|
|
|
0.25
|
|
|||||
Securities sold under agreements to repurchase
|
1,819
|
|
|
2
|
|
|
0.40
|
|
|
1,922
|
|
|
1
|
|
|
0.19
|
|
|
(103
|
)
|
|
0.21
|
|
|||||
Interest-bearing trading liabilities
|
1,017
|
|
|
6
|
|
|
2.56
|
|
|
882
|
|
|
5
|
|
|
2.37
|
|
|
135
|
|
|
0.19
|
|
|||||
Other short-term borrowings
|
2,351
|
|
|
2
|
|
|
0.32
|
|
|
3,698
|
|
|
2
|
|
|
0.19
|
|
|
(1,347
|
)
|
|
0.13
|
|
|||||
Long-term debt
|
8,637
|
|
|
59
|
|
|
2.73
|
|
|
13,018
|
|
|
68
|
|
|
2.13
|
|
|
(4,381
|
)
|
|
0.60
|
|
|||||
Total interest-bearing liabilities
|
123,278
|
|
|
129
|
|
|
0.42
|
|
|
120,994
|
|
|
132
|
|
|
0.44
|
|
|
2,284
|
|
|
(0.02
|
)
|
|||||
Noninterest-bearing deposits
|
42,076
|
|
|
|
|
|
|
41,292
|
|
|
|
|
|
|
784
|
|
|
|
||||||||||
Other liabilities
|
3,321
|
|
|
|
|
|
|
3,279
|
|
|
|
|
|
|
42
|
|
|
|
||||||||||
Noninterest-bearing trading liabilities and derivative instruments
|
542
|
|
|
|
|
|
|
528
|
|
|
|
|
|
|
14
|
|
|
|
||||||||||
Shareholders’ equity
|
23,797
|
|
|
|
|
|
|
23,172
|
|
|
|
|
|
|
625
|
|
|
|
||||||||||
Total liabilities and shareholders’ equity
|
|
$193,014
|
|
|
|
|
|
|
|
$189,265
|
|
|
|
|
|
|
|
$3,749
|
|
|
|
|||||||
Interest rate spread
|
|
|
|
|
2.92
|
%
|
|
|
|
|
|
2.71
|
%
|
|
|
|
0.21
|
|
||||||||||
Net interest income - FTE
2, 4
|
|
|
|
$1,318
|
|
|
|
|
|
|
|
$1,175
|
|
|
|
|
|
|
|
|||||||||
Net interest margin
5
|
|
|
|
|
3.04
|
%
|
|
|
|
|
|
2.83
|
%
|
|
|
|
0.21
|
|
NONINTEREST INCOME
|
|
|
|
|
|
|||||
|
|
|
|
|
Table 3
|
|
||||
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
% Change
|
|||||
Service charges on deposit accounts
|
|
$153
|
|
|
|
$151
|
|
|
1
|
%
|
Other charges and fees
|
93
|
|
|
89
|
|
|
4
|
|
||
Card fees
|
78
|
|
|
80
|
|
|
(3
|
)
|
||
Investment banking income
|
98
|
|
|
97
|
|
|
1
|
|
||
Trading income
|
55
|
|
|
55
|
|
|
—
|
|
||
Trust and investment management income
|
75
|
|
|
84
|
|
|
(11
|
)
|
||
Retail investment services
|
69
|
|
|
72
|
|
|
(4
|
)
|
||
Mortgage servicing related income
|
62
|
|
|
43
|
|
|
44
|
|
||
Mortgage production related income
|
60
|
|
|
83
|
|
|
(28
|
)
|
||
Other noninterest income
|
38
|
|
|
63
|
|
|
(40
|
)
|
||
Total noninterest income
|
|
$781
|
|
|
|
$817
|
|
|
(4
|
)%
|
NONINTEREST EXPENSE
|
|
|
|
|
|
|||||
|
|
|
|
|
Table 4
|
|
||||
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
% Change
|
|||||
Employee compensation
|
|
$639
|
|
|
|
$633
|
|
|
1
|
%
|
Employee benefits
|
135
|
|
|
138
|
|
|
(2
|
)
|
||
Total personnel expenses
|
774
|
|
|
771
|
|
|
—
|
|
||
Outside processing and software
|
198
|
|
|
189
|
|
|
5
|
|
||
Net occupancy expense
|
85
|
|
|
84
|
|
|
1
|
|
||
Marketing and customer development
|
44
|
|
|
27
|
|
|
63
|
|
||
Equipment expense
|
40
|
|
|
40
|
|
|
—
|
|
||
Regulatory assessments
|
36
|
|
|
37
|
|
|
(3
|
)
|
||
Operating losses
|
24
|
|
|
14
|
|
|
71
|
|
||
Amortization
|
10
|
|
|
7
|
|
|
43
|
|
||
Other noninterest expense
|
107
|
|
|
111
|
|
|
(4
|
)
|
||
Total noninterest expense
|
|
$1,318
|
|
|
|
$1,280
|
|
|
3
|
%
|
Loan Portfolio by Types of Loans
|
Table 5
|
|
|||||
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
||||
Commercial loans:
|
|
|
|
||||
C&I
|
|
$68,963
|
|
|
|
$67,062
|
|
CRE
|
6,034
|
|
|
6,236
|
|
||
Commercial construction
|
2,498
|
|
|
1,954
|
|
||
Total commercial loans
|
77,495
|
|
|
75,252
|
|
||
Residential loans:
|
|
|
|
||||
Residential mortgages - guaranteed
|
623
|
|
|
629
|
|
||
Residential mortgages - nonguaranteed
1
|
25,148
|
|
|
24,744
|
|
||
Residential home equity products
|
12,845
|
|
|
13,171
|
|
||
Residential construction
|
383
|
|
|
384
|
|
||
Total residential loans
|
38,999
|
|
|
38,928
|
|
||
Consumer loans:
|
|
|
|
||||
Guaranteed student
|
5,265
|
|
|
4,922
|
|
||
Other direct
|
6,372
|
|
|
6,127
|
|
||
Indirect
|
10,522
|
|
|
10,127
|
|
||
Credit cards
|
1,093
|
|
|
1,086
|
|
||
Total consumer loans
|
23,252
|
|
|
22,262
|
|
||
LHFI
|
|
$139,746
|
|
|
|
$136,442
|
|
LHFS
2
|
|
$1,911
|
|
|
|
$1,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6
|
|
||||||||||||
|
March 31, 2016
|
||||||||||||||||||||||||||
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total LHFI
|
||||||||||||||||||||
(Dollars in millions)
|
Balance
|
|
% of Total Commercial
|
|
Balance
|
|
% of Total Residential
|
|
Balance
|
|
% of Total Consumer
|
|
Balance
|
|
% of Total LHFI
|
||||||||||||
South region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Florida
|
|
$12,722
|
|
|
16
|
%
|
|
|
$9,639
|
|
|
25
|
%
|
|
|
$3,867
|
|
|
17
|
%
|
|
|
$26,228
|
|
|
19
|
%
|
Georgia
|
10,176
|
|
|
13
|
|
|
5,887
|
|
|
15
|
|
|
1,896
|
|
|
8
|
|
|
17,959
|
|
|
13
|
|
||||
Virginia
|
6,488
|
|
|
8
|
|
|
5,981
|
|
|
15
|
|
|
1,491
|
|
|
6
|
|
|
13,960
|
|
|
10
|
|
||||
Maryland
|
4,219
|
|
|
5
|
|
|
4,342
|
|
|
11
|
|
|
1,279
|
|
|
6
|
|
|
9,840
|
|
|
7
|
|
||||
North Carolina
|
4,402
|
|
|
6
|
|
|
3,520
|
|
|
9
|
|
|
1,488
|
|
|
6
|
|
|
9,410
|
|
|
7
|
|
||||
Tennessee
|
4,646
|
|
|
6
|
|
|
2,098
|
|
|
5
|
|
|
874
|
|
|
4
|
|
|
7,618
|
|
|
5
|
|
||||
Texas
|
3,632
|
|
|
5
|
|
|
364
|
|
|
1
|
|
|
2,744
|
|
|
12
|
|
|
6,740
|
|
|
5
|
|
||||
South Carolina
|
1,524
|
|
|
2
|
|
|
1,781
|
|
|
5
|
|
|
539
|
|
|
2
|
|
|
3,844
|
|
|
3
|
|
||||
District of Columbia
|
1,408
|
|
|
2
|
|
|
816
|
|
|
2
|
|
|
90
|
|
|
—
|
|
|
2,314
|
|
|
2
|
|
||||
Other Southern states
|
4,259
|
|
|
5
|
|
|
562
|
|
|
1
|
|
|
1,410
|
|
|
6
|
|
|
6,231
|
|
|
4
|
|
||||
Total South region
|
53,476
|
|
|
69
|
|
|
34,990
|
|
|
90
|
|
|
15,678
|
|
|
67
|
|
|
104,144
|
|
|
75
|
|
||||
Northeast region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New York
|
4,604
|
|
|
6
|
|
|
143
|
|
|
—
|
|
|
756
|
|
|
3
|
|
|
5,503
|
|
|
4
|
|
||||
Pennsylvania
|
1,716
|
|
|
2
|
|
|
110
|
|
|
—
|
|
|
813
|
|
|
3
|
|
|
2,639
|
|
|
2
|
|
||||
New Jersey
|
1,498
|
|
|
2
|
|
|
141
|
|
|
—
|
|
|
419
|
|
|
2
|
|
|
2,058
|
|
|
1
|
|
||||
Other Northeastern states
|
2,267
|
|
|
3
|
|
|
231
|
|
|
1
|
|
|
532
|
|
|
2
|
|
|
3,030
|
|
|
2
|
|
||||
Total Northeast region
|
10,085
|
|
|
13
|
|
|
625
|
|
|
2
|
|
|
2,520
|
|
|
11
|
|
|
13,230
|
|
|
9
|
|
||||
West region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
California
|
3,905
|
|
|
5
|
|
|
2,096
|
|
|
5
|
|
|
1,141
|
|
|
5
|
|
|
7,142
|
|
|
5
|
|
||||
Other Western states
|
2,136
|
|
|
3
|
|
|
772
|
|
|
2
|
|
|
1,076
|
|
|
5
|
|
|
3,984
|
|
|
3
|
|
||||
Total West region
|
6,041
|
|
|
8
|
|
|
2,868
|
|
|
7
|
|
|
2,217
|
|
|
10
|
|
|
11,126
|
|
|
8
|
|
||||
Midwest region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Illinois
|
1,784
|
|
|
2
|
|
|
190
|
|
|
—
|
|
|
446
|
|
|
2
|
|
|
2,420
|
|
|
2
|
|
||||
Ohio
|
888
|
|
|
1
|
|
|
50
|
|
|
—
|
|
|
477
|
|
|
2
|
|
|
1,415
|
|
|
1
|
|
||||
Other Midwestern states
|
3,262
|
|
|
4
|
|
|
276
|
|
|
1
|
|
|
1,861
|
|
|
8
|
|
|
5,399
|
|
|
4
|
|
||||
Total Midwest region
|
5,934
|
|
|
8
|
|
|
516
|
|
|
1
|
|
|
2,784
|
|
|
12
|
|
|
9,234
|
|
|
7
|
|
||||
Foreign loans
|
1,959
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
2,012
|
|
|
1
|
|
||||
Total
|
|
$77,495
|
|
|
100
|
%
|
|
|
$38,999
|
|
|
100
|
%
|
|
|
$23,252
|
|
|
100
|
%
|
|
|
$139,746
|
|
|
100
|
%
|
|
December 31, 2015
|
||||||||||||||||||||||||||
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total LHFI
|
||||||||||||||||||||
(Dollars in millions)
|
Balance
|
|
% of Total Commercial
|
|
Balance
|
|
% of Total Residential
|
|
Balance
|
|
% of Total Consumer
|
|
Balance
|
|
% of Total LHFI
|
||||||||||||
South region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Florida
|
|
$12,712
|
|
|
17
|
%
|
|
|
$9,752
|
|
|
25
|
%
|
|
|
$3,764
|
|
|
17
|
%
|
|
|
$26,228
|
|
|
19
|
%
|
Georgia
|
9,820
|
|
|
13
|
|
|
5,917
|
|
|
15
|
|
|
1,769
|
|
|
8
|
|
|
17,506
|
|
|
13
|
|
||||
Virginia
|
6,650
|
|
|
9
|
|
|
5,976
|
|
|
15
|
|
|
1,446
|
|
|
6
|
|
|
14,072
|
|
|
10
|
|
||||
Maryland
|
4,220
|
|
|
6
|
|
|
4,280
|
|
|
11
|
|
|
1,262
|
|
|
6
|
|
|
9,762
|
|
|
7
|
|
||||
North Carolina
|
4,106
|
|
|
5
|
|
|
3,549
|
|
|
9
|
|
|
1,419
|
|
|
6
|
|
|
9,074
|
|
|
7
|
|
||||
Tennessee
|
4,710
|
|
|
6
|
|
|
2,123
|
|
|
5
|
|
|
818
|
|
|
4
|
|
|
7,651
|
|
|
6
|
|
||||
Texas
|
3,362
|
|
|
4
|
|
|
351
|
|
|
1
|
|
|
2,592
|
|
|
12
|
|
|
6,305
|
|
|
5
|
|
||||
South Carolina
|
1,517
|
|
|
2
|
|
|
1,796
|
|
|
5
|
|
|
497
|
|
|
2
|
|
|
3,810
|
|
|
3
|
|
||||
District of Columbia
|
1,375
|
|
|
2
|
|
|
790
|
|
|
2
|
|
|
85
|
|
|
—
|
|
|
2,250
|
|
|
2
|
|
||||
Other Southern states
|
4,100
|
|
|
5
|
|
|
556
|
|
|
1
|
|
|
1,346
|
|
|
6
|
|
|
6,002
|
|
|
4
|
|
||||
Total South region
|
52,572
|
|
|
70
|
|
|
35,090
|
|
|
90
|
|
|
14,998
|
|
|
67
|
|
|
102,660
|
|
|
75
|
|
||||
Northeast region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New York
|
4,489
|
|
|
6
|
|
|
142
|
|
|
—
|
|
|
717
|
|
|
3
|
|
|
5,348
|
|
|
4
|
|
||||
Pennsylvania
|
1,651
|
|
|
2
|
|
|
111
|
|
|
—
|
|
|
776
|
|
|
3
|
|
|
2,538
|
|
|
2
|
|
||||
New Jersey
|
1,563
|
|
|
2
|
|
|
137
|
|
|
—
|
|
|
400
|
|
|
2
|
|
|
2,100
|
|
|
2
|
|
||||
Other Northeastern states
|
2,165
|
|
|
3
|
|
|
230
|
|
|
1
|
|
|
516
|
|
|
2
|
|
|
2,911
|
|
|
2
|
|
||||
Total Northeast region
|
9,868
|
|
|
13
|
|
|
620
|
|
|
2
|
|
|
2,409
|
|
|
11
|
|
|
12,897
|
|
|
9
|
|
||||
West region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
California
|
3,368
|
|
|
4
|
|
|
1,954
|
|
|
5
|
|
|
1,091
|
|
|
5
|
|
|
6,413
|
|
|
5
|
|
||||
Other Western states
|
2,059
|
|
|
3
|
|
|
752
|
|
|
2
|
|
|
1,037
|
|
|
5
|
|
|
3,848
|
|
|
3
|
|
||||
Total West region
|
5,427
|
|
|
7
|
|
|
2,706
|
|
|
7
|
|
|
2,128
|
|
|
10
|
|
|
10,261
|
|
|
8
|
|
||||
Midwest region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Illinois
|
1,614
|
|
|
2
|
|
|
185
|
|
|
—
|
|
|
420
|
|
|
2
|
|
|
2,219
|
|
|
2
|
|
||||
Ohio
|
885
|
|
|
1
|
|
|
52
|
|
|
—
|
|
|
457
|
|
|
2
|
|
|
1,394
|
|
|
1
|
|
||||
Other Midwestern states
|
3,360
|
|
|
4
|
|
|
275
|
|
|
1
|
|
|
1,803
|
|
|
8
|
|
|
5,438
|
|
|
4
|
|
||||
Total Midwest region
|
5,859
|
|
|
8
|
|
|
512
|
|
|
1
|
|
|
2,680
|
|
|
12
|
|
|
9,051
|
|
|
7
|
|
||||
Foreign loans
|
1,526
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
1,573
|
|
|
1
|
|
||||
Total
|
|
$75,252
|
|
|
100
|
%
|
|
|
$38,928
|
|
|
100
|
%
|
|
|
$22,262
|
|
|
100
|
%
|
|
|
$136,442
|
|
|
100
|
%
|
Summary of Credit Losses Experience
|
|
|
|
|
|
Table 7
|
|
||||
|
|
Three Months Ended March 31
|
|||||||||
(Dollars in millions)
|
|
2016
|
|
2015
|
|
% Change
5
|
|||||
Allowance for Credit Losses
|
|
|
|
|
|
|
|||||
Balance - beginning of period
|
|
|
$1,815
|
|
|
|
$1,991
|
|
|
(9
|
)%
|
(Benefit)/provision for unfunded commitments
|
|
(2
|
)
|
|
—
|
|
|
NM
|
|
||
Provision/(benefit) for loan losses:
|
|
|
|
|
|
|
|||||
Commercial loans
|
|
98
|
|
|
7
|
|
|
NM
|
|
||
Residential loans
|
|
(32
|
)
|
|
25
|
|
|
NM
|
|
||
Consumer loans
|
|
37
|
|
|
23
|
|
|
61
|
|
||
Total provision for loan losses
|
|
103
|
|
|
55
|
|
|
87
|
|
||
Charge-offs:
|
|
|
|
|
|
|
|||||
Commercial loans
|
|
(32
|
)
|
|
(28
|
)
|
|
14
|
|
||
Residential loans
|
|
(41
|
)
|
|
(68
|
)
|
|
(40
|
)
|
||
Consumer loans
|
|
(39
|
)
|
|
(34
|
)
|
|
15
|
|
||
Total charge-offs
|
|
(112
|
)
|
|
(130
|
)
|
|
(14
|
)
|
||
Recoveries:
|
|
|
|
|
|
|
|||||
Commercial loans
|
|
10
|
|
|
11
|
|
|
(9
|
)
|
||
Residential loans
|
|
6
|
|
|
9
|
|
|
(33
|
)
|
||
Consumer loans
|
|
11
|
|
|
11
|
|
|
—
|
|
||
Total recoveries
|
|
27
|
|
|
31
|
|
|
(13
|
)
|
||
Net charge-offs
|
|
(85
|
)
|
|
(99
|
)
|
|
(14
|
)
|
||
Balance - end of period
|
|
|
$1,831
|
|
|
|
$1,947
|
|
|
(6
|
)%
|
Components:
|
|
|
|
|
|
|
|||||
ALLL
|
|
|
$1,770
|
|
|
|
$1,893
|
|
|
(6
|
)%
|
Unfunded commitments reserve
1
|
|
61
|
|
|
54
|
|
|
13
|
|
||
Allowance for credit losses
|
|
|
$1,831
|
|
|
|
$1,947
|
|
|
(6
|
)%
|
Average LHFI
|
|
|
$138,372
|
|
|
|
$133,338
|
|
|
4
|
%
|
Period-end LHFI outstanding
|
|
139,746
|
|
|
132,380
|
|
|
6
|
|
||
Ratios:
|
|
|
|
|
|
|
|||||
ALLL to period-end LHFI
2, 3
|
|
1.27
|
%
|
|
1.43
|
%
|
|
(11
|
)%
|
||
ALLL to NPLs
4
|
|
1.83x
|
|
|
3.10x
|
|
|
(41
|
)
|
||
ALLL to net charge-offs (annualized)
|
|
5.20x
|
|
|
4.69x
|
|
|
11
|
|
||
Net charge-offs to average LHFI (annualized)
|
|
0.25
|
%
|
|
0.30
|
%
|
|
(17
|
)
|
ALLL by Loan Segment
|
|
Table 8
|
|
||||
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
||||
ALLL:
|
|
|
|
||||
Commercial loans
|
|
$1,123
|
|
|
|
$1,047
|
|
Residential loans
|
467
|
|
|
534
|
|
||
Consumer loans
|
180
|
|
|
171
|
|
||
Total
|
|
$1,770
|
|
|
|
$1,752
|
|
Segment ALLL as a % of total ALLL:
|
|||||||
Commercial loans
|
64
|
%
|
|
60
|
%
|
||
Residential loans
|
26
|
|
|
30
|
|
||
Consumer loans
|
10
|
|
|
10
|
|
||
Total
|
100
|
%
|
|
100
|
%
|
||
Segment LHFI as a % of total LHFI:
|
|||||||
Commercial loans
|
55
|
%
|
|
55
|
%
|
||
Residential loans
|
28
|
|
|
29
|
|
||
Consumer loans
|
17
|
|
|
16
|
|
||
Total
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
Table 9
|
|
||||
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
|
% Change
3
|
|||||
Nonaccrual/NPLs:
|
|
|
|
|
|
|||||
Commercial loans:
|
|
|
|
|
|
|||||
C&I
|
|
$565
|
|
|
|
$308
|
|
|
83
|
%
|
CRE
|
10
|
|
|
11
|
|
|
(9
|
)
|
||
Commercial construction
|
2
|
|
|
—
|
|
|
NM
|
|
||
Total commercial NPLs
|
577
|
|
|
319
|
|
|
81
|
|
||
Residential loans:
|
|
|
|
|
|
|||||
Residential mortgages - nonguaranteed
|
198
|
|
|
183
|
|
|
8
|
|
||
Residential home equity products
|
180
|
|
|
145
|
|
|
24
|
|
||
Residential construction
|
12
|
|
|
16
|
|
|
(25
|
)
|
||
Total residential NPLs
|
390
|
|
|
344
|
|
|
13
|
|
||
Consumer loans:
|
|
|
|
|
|
|||||
Other direct
|
5
|
|
|
6
|
|
|
(17
|
)
|
||
Indirect
|
3
|
|
|
3
|
|
|
—
|
|
||
Total consumer NPLs
|
8
|
|
|
9
|
|
|
(11
|
)
|
||
Total nonaccrual/NPLs
1
|
|
$975
|
|
|
|
$672
|
|
|
45
|
|
OREO
2
|
|
$52
|
|
|
|
$56
|
|
|
(7
|
)
|
Other repossessed assets
|
8
|
|
|
7
|
|
|
14
|
|
||
Total NPAs
|
|
$1,035
|
|
|
|
$735
|
|
|
41
|
%
|
Accruing LHFI past due 90 days or more
|
|
$996
|
|
|
|
$981
|
|
|
2
|
%
|
Accruing LHFS past due 90 days or more
|
1
|
|
|
—
|
|
|
NM
|
|
||
TDRs:
|
|
|
|
|
|
|||||
Accruing restructured loans
|
|
$2,569
|
|
|
|
$2,603
|
|
|
(1
|
)%
|
Nonaccruing restructured loans
1
|
233
|
|
|
176
|
|
|
32
|
|
||
Ratios:
|
|
|
|
|
|
|||||
NPLs to period-end LHFI
|
0.70
|
%
|
|
0.49
|
%
|
|
43
|
%
|
||
NPAs to period-end LHFI, OREO, other repossessed assets, and nonperforming LHFS
|
0.74
|
|
|
0.54
|
|
|
37
|
|
Residential TDR Data
|
|
|
|
|
|
|
|
|
|
|
Table 10
|
|
|||||||||||
|
March 31, 2016
|
||||||||||||||||||||||
|
Accruing TDRs
|
|
Nonaccruing TDRs
|
||||||||||||||||||||
(Dollars in millions)
|
Current
|
|
Delinquent
1
|
|
Total
|
|
Current
|
|
Delinquent
1
|
|
Total
|
||||||||||||
Residential mortgages - nonguaranteed
|
|
$1,545
|
|
|
|
$122
|
|
|
|
$1,667
|
|
|
|
$14
|
|
|
|
$90
|
|
|
|
$104
|
|
Residential home equity products
|
598
|
|
|
21
|
|
|
619
|
|
|
55
|
|
|
29
|
|
|
84
|
|
||||||
Residential construction
|
119
|
|
|
4
|
|
|
123
|
|
|
—
|
|
|
5
|
|
|
5
|
|
||||||
Total residential TDRs
|
|
$2,262
|
|
|
|
$147
|
|
|
|
$2,409
|
|
|
|
$69
|
|
|
|
$124
|
|
|
|
$193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2015
|
||||||||||||||||||||||
|
Accruing TDRs
|
|
Nonaccruing TDRs
|
||||||||||||||||||||
(Dollars in millions)
|
Current
|
|
Delinquent
1
|
|
Total
|
|
Current
|
|
Delinquent
1
|
|
Total
|
||||||||||||
Residential mortgages - nonguaranteed
|
|
$1,537
|
|
|
|
$138
|
|
|
|
$1,675
|
|
|
|
$15
|
|
|
|
$83
|
|
|
|
$98
|
|
Residential home equity products
|
596
|
|
|
25
|
|
|
621
|
|
|
15
|
|
|
25
|
|
|
40
|
|
||||||
Residential construction
|
124
|
|
|
2
|
|
|
126
|
|
|
—
|
|
|
6
|
|
|
6
|
|
||||||
Total residential TDRs
|
|
$2,257
|
|
|
|
$165
|
|
|
|
$2,422
|
|
|
|
$30
|
|
|
|
$114
|
|
|
|
$144
|
|
Securities Available for Sale
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
Table 11
|
|
|||||||
|
March 31, 2016
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Treasury securities
|
|
$3,694
|
|
|
|
$103
|
|
|
|
$—
|
|
|
|
$3,797
|
|
Federal agency securities
|
377
|
|
|
12
|
|
|
—
|
|
|
389
|
|
||||
U.S. states and political subdivisions
|
149
|
|
|
9
|
|
|
—
|
|
|
158
|
|
||||
MBS - agency
|
22,615
|
|
|
589
|
|
|
14
|
|
|
23,190
|
|
||||
MBS - non-agency residential
|
88
|
|
|
1
|
|
|
1
|
|
|
88
|
|
||||
ABS
|
10
|
|
|
2
|
|
|
1
|
|
|
11
|
|
||||
Corporate and other debt securities
|
36
|
|
|
1
|
|
|
—
|
|
|
37
|
|
||||
Other equity securities
1
|
518
|
|
|
1
|
|
|
1
|
|
|
518
|
|
||||
Total securities AFS
|
|
$27,487
|
|
|
|
$718
|
|
|
|
$17
|
|
|
|
$28,188
|
|
|
December 31, 2015
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Treasury securities
|
|
$3,460
|
|
|
|
$3
|
|
|
|
$14
|
|
|
|
$3,449
|
|
Federal agency securities
|
402
|
|
|
10
|
|
|
1
|
|
|
411
|
|
||||
U.S. states and political subdivisions
|
156
|
|
|
8
|
|
|
—
|
|
|
164
|
|
||||
MBS - agency
|
22,877
|
|
|
397
|
|
|
150
|
|
|
23,124
|
|
||||
MBS - non-agency residential
|
92
|
|
|
2
|
|
|
—
|
|
|
94
|
|
||||
ABS
|
11
|
|
|
2
|
|
|
1
|
|
|
12
|
|
||||
Corporate and other debt securities
|
37
|
|
|
1
|
|
|
—
|
|
|
38
|
|
||||
Other equity securities
1
|
533
|
|
|
1
|
|
|
1
|
|
|
533
|
|
||||
Total securities AFS
|
|
$27,568
|
|
|
|
$424
|
|
|
|
$167
|
|
|
|
$27,825
|
|
Regulatory Capital Metrics
1
|
|
Table 12
|
|
||||
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
||||
Regulatory capital:
|
|
|
|
||||
CET1
|
|
$16,538
|
|
|
|
$16,421
|
|
Tier 1 capital
|
17,765
|
|
|
17,804
|
|
||
Total capital
|
20,697
|
|
|
20,668
|
|
||
Assets:
|
|
|
|
||||
RWA
|
|
$167,104
|
|
|
|
$164,851
|
|
Average total assets for leverage ratio
|
186,966
|
|
|
183,763
|
|
||
Risk-based ratios:
|
|
|
|
||||
CET1
|
9.90
|
%
|
|
9.96
|
%
|
||
CET1 - fully phased-in
2
|
9.77
|
|
|
9.80
|
|
||
Tier 1 capital
|
10.63
|
|
|
10.80
|
|
||
Total capital
|
12.39
|
|
|
12.54
|
|
||
Leverage
|
9.50
|
|
|
9.69
|
|
||
Total shareholders’ equity to assets
|
12.39
|
|
|
12.28
|
|
Credit Ratings and Outlook
|
Table 16
|
||||
|
March 31, 2016
|
||||
|
Moody’s
|
|
S&P
|
|
Fitch
|
SunTrust Banks, Inc.:
|
|
|
|
|
|
Senior debt
|
Baa1
|
|
BBB+
|
|
A-
|
Preferred stock
|
Baa3
|
|
BB+
|
|
BB
|
|
|
|
|
|
|
SunTrust Bank:
|
|
|
|
|
|
Long-term deposits
|
A1
|
|
A-
|
|
A
|
Short-term deposits
|
P-1
|
|
A-2
|
|
F1
|
Senior debt
|
Baal
|
|
A-
|
|
A-
|
Outlook
|
Stable
|
|
Stable
|
|
Stable
|
Contingency Liquidity Sources
|
|
|
|
|
|
Table 17
|
|
||||||||
|
|
|
|
|
|
||||||||||
|
As of
|
|
Average for the Three Months Ended ¹
|
||||||||||||
(Dollars in billions)
|
March 31, 2016
|
|
March 31, 2015
|
|
March 31, 2016
|
|
March 31, 2015
|
||||||||
Excess reserves
|
|
$1.1
|
|
|
|
$4.6
|
|
|
|
$2.3
|
|
|
|
$4.4
|
|
Free and liquid investment portfolio securities
|
25.6
|
|
|
22.7
|
|
|
25.2
|
|
|
22.5
|
|
||||
Unused FHLB borrowing capacity
|
20.5
|
|
|
13.6
|
|
|
19.3
|
|
|
12.3
|
|
||||
Unused discount window borrowing capacity
|
16.8
|
|
|
17.5
|
|
|
16.8
|
|
|
17.7
|
|
||||
Total
|
|
$64.0
|
|
|
|
$58.4
|
|
|
|
$63.6
|
|
|
|
$56.9
|
|
Unfunded Lending Commitments
|
|
|
|
|
|
Table 18
|
|
||||||||
|
As of
|
|
Average for the Three Months Ended
|
||||||||||||
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2016
|
|
March 31, 2015
|
||||||||
Unused lines of credit:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
|
$56,922
|
|
|
|
$58,855
|
|
|
|
$57,889
|
|
|
|
$50,636
|
|
Mortgage commitments
1
|
3,553
|
|
|
3,232
|
|
|
3,392
|
|
|
4,207
|
|
||||
Home equity lines
|
10,578
|
|
|
10,523
|
|
|
10,551
|
|
|
10,885
|
|
||||
CRE
|
4,803
|
|
|
4,455
|
|
|
4,629
|
|
|
3,347
|
|
||||
Credit card
|
8,818
|
|
|
8,478
|
|
|
8,648
|
|
|
6,870
|
|
||||
Total unused lines of credit
|
|
$84,674
|
|
|
|
$85,543
|
|
|
|
$85,109
|
|
|
|
$75,945
|
|
|
|
|
|
|
|
|
|
||||||||
Letters of credit:
|
|
|
|
|
|
|
|
||||||||
Financial standby
|
|
$2,841
|
|
|
|
$2,775
|
|
|
|
$2,808
|
|
|
|
$2,892
|
|
Performance standby
|
141
|
|
|
137
|
|
|
139
|
|
|
124
|
|
||||
Commercial
|
13
|
|
|
27
|
|
|
20
|
|
|
36
|
|
||||
Total letters of credit
|
|
$2,995
|
|
|
|
$2,939
|
|
|
|
$2,967
|
|
|
|
$3,052
|
|
Net Income by Business Segment
|
|
|
Table 19
|
|
|||
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Consumer Banking and Private Wealth Management
|
|
$174
|
|
|
|
$144
|
|
Wholesale Banking
|
197
|
|
|
236
|
|
||
Mortgage Banking
|
45
|
|
|
55
|
|
||
|
|
|
|
||||
Corporate Other
|
39
|
|
|
58
|
|
||
Reconciling Items
1
|
(8
|
)
|
|
(64
|
)
|
||
Total Corporate Other
|
31
|
|
|
(6
|
)
|
||
Consolidated Net Income
|
|
$447
|
|
|
|
$429
|
|
Average Loans and Deposits by Business Segment
|
|
|
|
|
|
Table 20
|
|
||||||||
|
|
|
|
||||||||||||
|
Average Loans
|
|
Average Consumer
and Commercial Deposits
|
||||||||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Consumer Banking and Private Wealth Management
|
|
$41,597
|
|
|
|
$41,127
|
|
|
|
$93,314
|
|
|
|
$90,507
|
|
Wholesale Banking
|
70,757
|
|
|
67,733
|
|
|
53,567
|
|
|
47,565
|
|
||||
Mortgage Banking
|
25,946
|
|
|
24,439
|
|
|
2,311
|
|
|
2,359
|
|
||||
Corporate Other
|
72
|
|
|
39
|
|
|
37
|
|
|
45
|
|
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 21
|
||
|
Common Stock
1
|
||||||||
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value
2
of Equity that May Yet Be Purchased Under the Plans or Programs at Period End
(in millions)
|
||
January 1 - 31
|
4,224,215
|
|
|
$35.37
|
|
4,224,215
|
|
|
$180
|
February 1 - 29
|
36,212
|
|
|
34.66
|
|
36,212
|
|
|
175
|
March 1 - 31
|
—
|
|
|
—
|
|
—
|
|
|
175
|
Total during first quarter of 2016
|
4,260,427
|
|
|
$35.36
|
|
4,260,427
|
|
|
$175
|
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
, 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 11, 2015, incorporated by reference to Exhibit 3.2 to the Registrant's Quarterly Report on Form 10-Q filed August 13, 2015.
|
|
*
|
|
|
|
|
|
10.1
|
|
Form of Restricted Stock Unit Award Agreement
under the SunTrust Banks, Inc. 2009 Stock Plan, Retention I, incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed February 12, 2016.
|
|
*
|
|
|
|
|
|
10.2
|
|
Form of Restricted Stock Unit Award Agreement
under the SunTrust Banks, Inc. 2009 Stock Plan, Retention II, incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed February 12, 2016.
|
|
*
|
|
|
|
|
|
10.3
|
|
Form of Restricted Stock Unit Award Agreement
under the SunTrust Banks, Inc. 2009 Stock Plan, 2016 ROTCE/TSR.
|
|
**
|
|
|
|
|
|
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:
|
May 4, 2016
|
|
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]
____________________________
|
|
|
|
Target Number of Restricted Stock Units
|
|
_
[
# of Units
]
_____
|
|
|
|
Grant Date
|
|
February 9, 2016
|
(i)
|
The Grantee shall vest in a percentage of Restricted Stock Units (between 0% and 150%) indicated by the following ROTCE Matrix adjusted by the TSR Modifier below on February 9, 2019 (the “Vesting Date”); provided, that the Grantee has remained in continuous employment with SunTrust or a Subsidiary from the Grant Date through the Vesting Date, except as provided in §5(d) hereof (pertaining to vesting after Retirement). In addition, the Restricted Stock Units may vest prior to the Vesting Date in accordance with any other provisions of §4 or §5. The Absolute ROTCE for SunTrust and each member of the Peer Group shall be calculated and ranked from high to low.
|
(ii)
|
The Payout Percentage is determined as follows: (1) Locate the column(s) in the ROTCE Matrix that correspond to SunTrust’s Absolute ROTCE; (2) Determine the ROTCE Rank of SunTrust and each member of the Peer Group ranked from high to low; (3) interpolate between the Payout Percentages in the row corresponding to SunTrust’s ROTCE Rank based on the percentages in the column(s) that correspond to SunTrust’s Absolute ROTCE.
|
|
|
(i)
|
the portion of the Vested Units comprising the “Earned Awards as a Percent of Target” equal to or less than 130% shall be paid in a lump sum upon the earliest to occur of the following: (A) the date of the Grantee's death, (B) the date of the Grantee's Disability, (C) subject to §6(d), the date of the Grantee's Separation from Service, if such Separation from Service occurs: within two (2) years following a 409A Change in Control or (D) February 9, 2019.
|
|
|
(ii)
|
the portion, if any, of the Vested Units comprising the “Award Percentage” greater than 130% shall be paid in a lump sum upon the earliest to occur of the following: (A) the date of the Grantee's death, (B) the date of the Grantee's Disability, (C) subject to §6(d), the date of the Grantee's Separation from Service, if such Separation from Service occurs: within two (2) years following a 409A Change in Control or (D) February 9, 2020.
|
|
|
|
|
(b)
|
In the event payment is made pursuant to sub-paragraph §6(a)(i)(A), §6(a)(i)(B), §6(a)(i)(C), §6(a)(ii)(A), or §6(a)(ii)(B), §6(a)(ii)(C) above, such payment shall be made on the last day of the sixty (60) day period which commences immediately following the date of the applicable event. In the event payment is made pursuant to sub-paragraphs §6(a)(i)(D) and §6(a)(ii)(D) above, such payment shall be made within 30 days following February 9, 2019 and February 9, 2020.
|
|
|
|
|
(c)
|
Except as set forth below, the Vested Units shall be paid out in an equivalent number of shares of Stock; provided, however, the Grantee's right to any fractional share of Stock shall be paid in cash. In the event the Restricted Stock Units (and related Dividend Equivalent Rights) vest following a Change in Control pursuant to §4, the Vested Units shall be paid in cash, and the amount of the payment for each Vested Unit to be paid in cash will equal the Fair Market Value of a share of Stock on the date of the Change in Control.
|
|
|
|
|
(d)
|
Notwithstanding anything herein to the contrary, distributions may not be made to a Key Employee upon a Separation from Service before the date which is six (6) months after the date of the Key Employee's Separation from Service (or, if earlier, the date of death of the Key Employee). Any payments that would otherwise be made during this period of delay shall be accumulated and paid in the seventh month following the Grantee's Separation from Service.
|
|
|
|
|
(e)
|
The Grantee shall be entitled to a Dividend Equivalent Right for each Vested Unit. At the same time that the related Vested Units are paid, SunTrust shall pay each Dividend Equivalent Right in shares of Stock to the Grantee, or, in the event the Restricted Stock Units vest pursuant to §4, in cash; provided, however, the Grantee's right to any fractional share of Stock shall be paid in cash.
|
|
|
|
|
(f)
|
The Grantee will not have any shareholder rights with respect to the Restricted Stock Units, including the right to vote or receive dividends, unless and until shares of Stock are issued to the Grantee as payment of the vested Restricted Stock Units.
|
|
|
|
|
(i)
|
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.
|
|
|
|
|
(ii)
|
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.
|
(iii)
|
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.
|
|
|
|
|
(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)
|
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.
|
|
|
1.
|
KeyCorp
|
|
|
2.
|
Comerica Incorporated
|
|
|
3.
|
Fifth Third Bancorp
|
|
|
4.
|
Regions Financial Corp
|
|
|
5.
|
PNC Financial Services Group, Inc.
|
|
|
6.
|
Wells Fargo & Company
|
|
|
7.
|
BB&T Corp.
|
|
|
8.
|
Capital One Financial Corp.
|
|
|
9.
|
U.S. Bancorp
|
|
|
10.
|
M&T Bank Corp.
|
(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;
|
(5)
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
(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;
|
(5)
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|