Georgia
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58-1575035
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of Each Class
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Trading Symbol(s)
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Name of Exchange on Which Registered
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Common Stock
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STI
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New York Stock Exchange
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Depositary Shares, Each Representing a 1/4000th Interest in a Share of Perpetual Preferred Stock, Series A
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STI PRA
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New York Stock Exchange
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5.853% Fixed-to-Floating Rate Normal Preferred Purchase Securities of SunTrust Preferred Capital I (representing interests in shares of Perpetual Preferred Stock, Series B)
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STI/PRI
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New York Stock Exchange
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Large accelerated filer
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þ
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Accelerated filer
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¨
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Non-accelerated filer
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¨ (Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
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¨
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TABLE OF CONTENTS
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Section
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Item 1.
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FINANCIAL STATEMENTS (UNAUDITED)
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Three Months Ended March 31
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||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited)
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2019
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2018
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||||
Interest Income
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||||
Interest and fees on loans held for investment
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$1,697
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$1,398
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Interest and fees on loans held for sale
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13
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21
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Interest on securities available for sale
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221
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206
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Trading account interest and other
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56
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43
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Total interest income
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1,987
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1,668
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Interest Expense
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||||
Interest on deposits
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249
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131
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Interest on long-term debt
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125
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74
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Interest on other borrowings
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69
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22
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Total interest expense
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443
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227
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Net interest income
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1,544
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1,441
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Provision for credit losses
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153
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28
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|
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Net interest income after provision for credit losses
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1,391
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1,413
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Noninterest Income
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|
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||||
Service charges on deposit accounts
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137
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146
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Other charges and fees 1
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87
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85
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Card fees
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82
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81
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Investment banking income 1
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130
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133
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Trading income
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60
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42
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Mortgage related income 2
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100
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90
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Trust and investment management income
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71
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75
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Retail investment services
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69
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72
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Commercial real estate related income
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24
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23
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Net securities gains/(losses)
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—
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1
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Other noninterest income
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24
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48
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Total noninterest income
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784
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796
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Noninterest Expense
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||||
Employee compensation
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676
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707
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Employee benefits
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148
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146
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Outside processing and software
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238
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206
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Net occupancy expense
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102
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94
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Merger-related costs
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45
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—
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Equipment expense
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42
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40
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Marketing and customer development
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41
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41
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Operating losses
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22
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6
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Regulatory assessments
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19
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41
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Amortization
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15
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15
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Other noninterest expense
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141
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121
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Total noninterest expense
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1,489
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1,417
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Income before provision for income taxes
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686
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792
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Provision for income taxes
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104
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147
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Net income including income attributable to noncontrolling interest
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582
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645
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Less: Net income attributable to noncontrolling interest
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2
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2
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Net income
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580
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643
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Less: Preferred stock dividends
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26
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31
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Net income available to common shareholders
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$554
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$612
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Net income per average common share:
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Diluted
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$1.24
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$1.29
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Basic
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1.25
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1.31
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Dividends declared per common share
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0.50
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0.40
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Average common shares outstanding - diluted
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446,662
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473,620
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Average common shares outstanding - basic
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443,566
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468,723
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Three Months Ended March 31
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(Dollars in millions) (Unaudited)
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2019
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2018
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||||
Net income
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$580
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$643
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Components of other comprehensive income/(loss):
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Change in net unrealized gains/(losses) on securities available for sale,
net of tax of $116 and ($130), respectively
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377
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(425
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)
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Change in net unrealized gains/(losses) on derivative instruments,
net of tax of $24 and ($38), respectively
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76
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(124
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)
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Change in net unrealized (losses)/gains on brokered time deposits,
net of tax of $0 and $0, respectively
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(1
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)
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1
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Change in credit risk adjustment on long-term debt,
net of tax of $0 and $1, respectively
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(1
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)
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2
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Change related to employee benefit plans,
net of tax of $2 and $1, respectively
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3
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(2
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)
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Total other comprehensive income/(loss), net of tax
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454
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(548
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)
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Total comprehensive income
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$1,034
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$95
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March 31,
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December 31,
|
||||
(Dollars in millions and shares in thousands, except per share data)
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2019
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2018
|
||||
Assets
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(Unaudited)
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||||
Cash and due from banks
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$4,521
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$5,791
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Federal funds sold and securities borrowed or purchased under agreements to resell
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1,386
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1,679
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Interest-bearing deposits in other banks
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25
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25
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Cash and cash equivalents
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5,932
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7,495
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Trading assets and derivative instruments 1
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6,259
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5,506
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Securities available for sale 2
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31,853
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31,442
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Loans held for sale ($1,059 and $1,178 at fair value at March 31, 2019 and December 31, 2018, respectively)
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1,781
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1,468
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Loans held for investment 3 ($134 and $163 at fair value at March 31, 2019 and December 31, 2018, respectively)
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155,233
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151,839
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Allowance for loan and lease losses
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(1,643
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)
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(1,615
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)
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Net loans held for investment
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153,590
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150,224
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Premises, property, and equipment, net
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1,997
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2,024
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Goodwill
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6,331
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6,331
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Other intangible assets (Residential MSRs at fair value: $1,883 and $1,983 at March 31, 2019 and December 31, 2018, respectively)
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1,963
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2,062
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Other assets ($85 and $95 at fair value at March 31, 2019 and December 31, 2018, respectively)
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10,719
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|
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8,991
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Total assets
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$220,425
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$215,543
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||||
Liabilities
|
|
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|
||||
Noninterest-bearing deposits
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|
$40,345
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$40,770
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Interest-bearing deposits ($473 and $403 at fair value at March 31, 2019 and December 31, 2018, respectively)
|
121,807
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121,819
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|
||
Total deposits
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162,152
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|
|
162,589
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|
||
Funds purchased
|
1,169
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|
|
2,141
|
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||
Securities sold under agreements to repurchase
|
1,962
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|
1,774
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|
||
Other short-term borrowings
|
7,259
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|
4,857
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|
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Long-term debt 4 ($296 and $289 at fair value at March 31, 2019 and December 31, 2018, respectively)
|
17,395
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|
|
15,072
|
|
||
Trading liabilities and derivative instruments
|
1,609
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|
|
1,604
|
|
||
Other liabilities
|
4,056
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|
3,226
|
|
||
Total liabilities
|
195,602
|
|
|
191,263
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Preferred stock, no par value
|
2,025
|
|
|
2,025
|
|
||
Common stock, $1.00 par value
|
553
|
|
|
553
|
|
||
Additional paid-in capital
|
8,938
|
|
|
9,022
|
|
||
Retained earnings
|
19,882
|
|
|
19,522
|
|
||
Treasury stock, at cost, and other 5
|
(5,609
|
)
|
|
(5,422
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
(966
|
)
|
|
(1,420
|
)
|
||
Total shareholders’ equity
|
24,823
|
|
|
24,280
|
|
||
Total liabilities and shareholders’ equity
|
|
$220,425
|
|
|
|
$215,543
|
|
|
|
|
|
||||
Common shares outstanding 6
|
443,713
|
|
|
446,888
|
|
||
Common shares authorized
|
750,000
|
|
|
750,000
|
|
||
Preferred shares outstanding
|
20
|
|
|
20
|
|
||
Preferred shares authorized
|
50,000
|
|
|
50,000
|
|
||
Treasury shares of common stock
|
109,071
|
|
|
105,896
|
|
||
|
|
|
|
||||
1 Includes trading securities pledged as collateral where counterparties have the right to sell or repledge the collateral
|
|
$1,382
|
|
|
|
$1,442
|
|
2 Includes securities AFS pledged as collateral where counterparties have the right to sell or repledge the collateral
|
210
|
|
|
222
|
|
||
3 Includes loans held for investment of consolidated VIEs
|
147
|
|
|
153
|
|
||
4 Includes debt of consolidated VIEs
|
156
|
|
|
161
|
|
||
5 Includes noncontrolling interest
|
101
|
|
|
103
|
|
||
6 Includes restricted shares
|
7
|
|
|
7
|
|
(Dollars and shares in millions, except per share data) (Unaudited)
|
Preferred Stock
|
|
Common Shares Outstanding
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury 1
Stock and Other
|
|
Accumulated Other Comprehensive Loss
|
|
Total
|
|||||||||||||||
Balance, January 1, 2018
|
|
$2,475
|
|
|
471
|
|
|
|
$550
|
|
|
|
$9,000
|
|
|
|
$17,540
|
|
|
|
($3,591
|
)
|
|
|
($820
|
)
|
|
|
$25,154
|
|
Cumulative effect of adjustment related to ASU adoptions 2
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144
|
|
|
—
|
|
|
(154
|
)
|
|
(10
|
)
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
643
|
|
|
—
|
|
|
—
|
|
|
643
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(548
|
)
|
|
(548
|
)
|
|||||||
Change in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||||
Common stock dividends, $0.40 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(187
|
)
|
|
—
|
|
|
—
|
|
|
(187
|
)
|
|||||||
Preferred stock dividends 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
|||||||
Redemption of preferred stock, Series E
|
(450
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(450
|
)
|
|||||||
Repurchase of common stock
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(330
|
)
|
|
—
|
|
|
(330
|
)
|
|||||||
Exercise of stock options and stock compensation expense
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
|||||||
Exercise of stock warrants
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||||
Restricted stock activity
|
—
|
|
|
1
|
|
|
—
|
|
|
(40
|
)
|
|
(2
|
)
|
|
38
|
|
|
—
|
|
|
(4
|
)
|
|||||||
Balance, March 31, 2018
|
|
$2,025
|
|
|
470
|
|
|
|
$552
|
|
|
|
$8,960
|
|
|
|
$18,107
|
|
|
|
($3,853
|
)
|
|
|
($1,522
|
)
|
|
|
$24,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, January 1, 2019
|
|
$2,025
|
|
|
447
|
|
|
|
$553
|
|
|
|
$9,022
|
|
|
|
$19,522
|
|
|
|
($5,422
|
)
|
|
|
($1,420
|
)
|
|
|
$24,280
|
|
Cumulative effect adjustment related to ASU adoption 4
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
580
|
|
|
—
|
|
|
—
|
|
|
580
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
454
|
|
|
454
|
|
|||||||
Change in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||||
Common stock dividends, $0.50 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(222
|
)
|
|
—
|
|
|
—
|
|
|
(222
|
)
|
|||||||
Preferred stock dividends 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|||||||
Repurchase of common stock
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
|
(250
|
)
|
|||||||
Exercise of stock options and stock compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|||||||
Restricted stock activity
|
—
|
|
|
1
|
|
|
—
|
|
|
(83
|
)
|
|
(3
|
)
|
|
62
|
|
|
—
|
|
|
(24
|
)
|
|||||||
Balance, March 31, 2019
|
|
$2,025
|
|
|
444
|
|
|
|
$553
|
|
|
|
$8,938
|
|
|
|
$19,882
|
|
|
|
($5,609
|
)
|
|
|
($966
|
)
|
|
|
$24,823
|
|
SunTrust Banks, Inc.
Consolidated Statements of Cash Flows
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions) (Unaudited)
|
2019
|
|
2018
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net income including income attributable to noncontrolling interest
|
|
$582
|
|
|
|
$645
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
||||
Depreciation, amortization, and accretion
|
172
|
|
|
175
|
|
||
Origination of servicing rights
|
(67
|
)
|
|
(80
|
)
|
||
Provisions for credit losses and foreclosed property
|
156
|
|
|
30
|
|
||
Stock-based compensation
|
37
|
|
|
56
|
|
||
Net securities (gains)/losses
|
—
|
|
|
(1
|
)
|
||
Net (gains)/losses on sale of loans held for sale, loans, and other assets
|
(46
|
)
|
|
11
|
|
||
Net increase in loans held for sale
|
(265
|
)
|
|
(100
|
)
|
||
Net increase in trading assets and derivative instruments
|
(753
|
)
|
|
(182
|
)
|
||
Net increase in other assets 1
|
(354
|
)
|
|
(644
|
)
|
||
Net decrease in other liabilities
|
(285
|
)
|
|
(110
|
)
|
||
Net cash used in operating activities
|
(823
|
)
|
|
(200
|
)
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Proceeds from maturities, calls, and paydowns of securities available for sale
|
853
|
|
|
858
|
|
||
Proceeds from sales of securities available for sale
|
111
|
|
|
1,663
|
|
||
Purchases of securities available for sale
|
(962
|
)
|
|
(2,689
|
)
|
||
Net (increase)/decrease in loans and leases, including purchases 1
|
(3,625
|
)
|
|
413
|
|
||
Proceeds from sales of loans and leases
|
40
|
|
|
36
|
|
||
Net cash paid for servicing rights
|
(1
|
)
|
|
(60
|
)
|
||
Capital expenditures
|
(81
|
)
|
|
(67
|
)
|
||
Proceeds from the sale of other real estate owned and other assets
|
29
|
|
|
52
|
|
||
Other investing activities
|
8
|
|
|
3
|
|
||
Net cash (used in)/provided by investing activities
|
(3,628
|
)
|
|
209
|
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Net (decrease)/increase in total deposits
|
(437
|
)
|
|
1,599
|
|
||
Net increase/(decrease) in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings
|
1,618
|
|
|
(1,209
|
)
|
||
Proceeds from issuance of long-term debt
|
2,264
|
|
|
1,311
|
|
||
Repayments of long-term debt
|
(35
|
)
|
|
(333
|
)
|
||
Repurchase of preferred stock
|
—
|
|
|
(450
|
)
|
||
Repurchase of common stock
|
(250
|
)
|
|
(330
|
)
|
||
Common and preferred stock dividends paid
|
(225
|
)
|
|
(197
|
)
|
||
Taxes paid related to net share settlement of equity awards
|
(49
|
)
|
|
(42
|
)
|
||
Proceeds from exercise of stock options
|
2
|
|
|
34
|
|
||
Net cash provided by financing activities
|
2,888
|
|
|
383
|
|
||
Net (decrease)/increase in cash and cash equivalents
|
(1,563
|
)
|
|
392
|
|
||
Cash and cash equivalents at beginning of period
|
7,495
|
|
|
6,912
|
|
||
Cash and cash equivalents at end of period
|
|
$5,932
|
|
|
|
$7,304
|
|
|
|
|
|
||||
Supplemental Disclosures:
|
|
|
|
||||
Loans transferred from loans held for sale to loans held for investment
|
4
|
|
|
6
|
|
||
Loans transferred from loans held for investment to loans held for sale
|
614
|
|
|
204
|
|
||
Loans transferred from loans held for investment to other real estate owned
|
10
|
|
|
19
|
|
Standard
|
Description
|
Required Date of Adoption
|
Effect on the Financial Statements or Other Significant Matters
|
Standards Adopted in 2019
|
|||
ASU 2016-02, Leases (Topic 842) and subsequent related ASUs
|
These ASUs create and amend ASC Topic 842, Leases, which supersedes ASC Topic 840, Leases. ASC Topic 842 requires lessees to recognize right-of-use assets and associated liabilities that arise from leases, with the exception of short-term leases. These ASUs do not make significant changes to lessor accounting; however, there were certain improvements made to align lessor accounting with the lessee accounting model and ASC Topic 606, Revenue from Contracts with Customers. Furthermore, there are several new qualitative and quantitative disclosures required for lessees and lessors, including updated guidance around the presentation of certain cash receipts on the Company’s Consolidated Statements of Cash Flows.
Upon transition, lessees and lessors have the option to either:
(i) Recognize and measure leases at the beginning of the earliest period presented using a modified retrospective transition approach; or
(ii) Apply a modified retrospective transition approach as of the date of adoption.
|
January 1, 2019
|
The Company adopted these ASUs on January 1, 2019, using a modified retrospective transition approach as of the date of adoption, which resulted in the recognition of $1.2 billion and $1.3 billion in right-of-use assets and associated lease liabilities, respectively, arising from operating leases in which the Company is the lessee, on the Company's Consolidated Balance Sheets. The amount of the right-of-use assets and associated lease liabilities recorded upon adoption was based primarily on the present value of unpaid future minimum lease payments, the amount of which was based on the population of leases in effect at the date of adoption. At March 31, 2019, the Company’s right-of-use assets and lease liabilities recorded on its Consolidated Balance Sheets totaled $1.2 billion and $1.3 billion, respectively.
Upon adoption, the Company also recognized a cumulative effect adjustment of $31 million to increase the beginning balance of retained earnings (as of January 1, 2019) for deferred gains on sale-leaseback transactions that occurred prior to the date of adoption and for other transition provisions. These ASUs did not have a material impact on the timing of expense or income recognition in the Company’s Consolidated Statements of Income. Furthermore, effective January 1, 2019, the Company prospectively changed its presentation of certain cash receipts related to sales-type and direct financing leases in which it is the lessor on its Consolidated Statements of Cash Flows. Specifically, the Company began including on its Consolidated Statements of Cash Flows the interest portion of lessee payments received from sales-type and direct financing leases within operating activities, with the principal portion remaining within investing activities. For periods prior to the date of adoption, interest payments were not retrospectively reclassified and remain within investing activities. For the three months ended March 31, 2019, the Company included $34 million of interest payments received related to these sales-type and direct financing leases within operating activities on its Consolidated Statements of Cash Flows. For additional information and required disclosures related to ASC 842, see Note 10, “Leases.” |
Standard
|
Description
|
Required Date of Adoption
|
Effect on the Financial Statements or Other Significant Matters
|
Standards Not Yet Adopted
|
|||
ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326) and subsequent related ASUs
|
These ASUs create and amend ASC Topic 326, Financial Instruments - Credit Losses, which replaces the incurred loss impairment methodology with a current expected credit loss methodology for financial instruments measured at amortized cost and other commitments to extend credit. For this purpose, expected credit losses reflect losses over the remaining contractual life of an asset, considering the effect of voluntary prepayments and considering available information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The resulting allowance for credit losses is deducted from the amortized cost basis of the financial assets to reflect the net amount expected to be collected on the financial assets. Additional quantitative and qualitative disclosures are required upon adoption. The change to the allowance for credit losses at the time of the adoption will be made with a cumulative effect adjustment to retained earnings.
Although the current expected credit loss methodology does not apply to AFS debt securities, the ASU does require entities to record an allowance when recognizing credit losses for AFS securities, rather than recording a direct write-down of the carrying amount. |
January 1, 2020
Early adoption is permitted beginning January 1, 2019. |
The Company formed a cross-functional team to oversee the implementation of this ASU. A detailed implementation plan has been developed and substantial progress has been made on the identification and staging of data, development and validation of models, refinement of economic forecasting processes, and documentation of accounting policy decisions. Additionally, a new credit loss forecasting process is being implemented. In conjunction with this implementation, the Company is modifying the internal control environment, as appropriate. The Company plans to perform parallel runs of its new methodology beginning in the second quarter of 2019, prior to adoption of the ASU.
The Company plans to adopt these ASUs on January 1, 2020, and is evaluating the impact that these ASUs will have on its Consolidated Financial Statements and related disclosures. The Company currently anticipates that an increase to the allowance for credit losses will be recognized upon adoption to provide for the expected credit losses over the estimated life of the financial assets. The magnitude of the increase will depend on economic conditions and trends in the Company’s portfolio at the time of adoption. |
ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
|
This ASU amends ASC Topic 350, Intangibles - Goodwill and Other, to simplify the subsequent measurement of goodwill, by eliminating Step 2 from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. This ASU requires an entity to recognize an impairment charge for the amount by which a reporting unit's carrying amount exceeds its fair value, with the loss limited to the total amount of goodwill allocated to that reporting unit. The ASU must be applied on a prospective basis.
|
January 1, 2020
Early adoption is permitted.
|
Based on the Company’s most recent qualitative goodwill impairment assessment performed as of October 1, 2018, there were no reporting units for which it was more-likely-than-not that the carrying amount of a reporting unit exceeded its respective fair value; therefore, this ASU would not currently have an impact on the Company’s Consolidated Financial Statements or related disclosures. However, if subsequent to adoption, the carrying amount of a reporting unit exceeds its respective fair value, the Company would be required to recognize an impairment charge for the amount that the carrying value exceeds the fair value.
|
ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract
|
This ASU amends ASC Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software, to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company may apply this ASU either retrospectively, or prospectively to all implementation costs incurred after the date of adoption.
|
January 1, 2020
Early adoption is permitted.
|
The Company’s current accounting policy for capitalizing implementation costs incurred in a hosting arrangement generally aligns with the requirements of this ASU; therefore, the Company's adoption of this ASU is not expected to have a material impact on the Company’s Consolidated Financial Statements or related disclosures.
|
|
Three Months Ended March 31, 2019
|
||||||||||||||
(Dollars in millions)
|
Consumer 1
|
|
Wholesale 1
|
|
Out of Scope 1, 2
|
|
Total
|
||||||||
Noninterest income
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts
|
|
$104
|
|
|
|
$33
|
|
|
|
$—
|
|
|
|
$137
|
|
Other charges and fees 3
|
27
|
|
|
4
|
|
|
56
|
|
|
87
|
|
||||
Card fees
|
55
|
|
|
26
|
|
|
1
|
|
|
82
|
|
||||
Investment banking income
|
—
|
|
|
72
|
|
|
58
|
|
|
130
|
|
||||
Trading income
|
—
|
|
|
—
|
|
|
60
|
|
|
60
|
|
||||
Mortgage related income
|
—
|
|
|
—
|
|
|
100
|
|
|
100
|
|
||||
Trust and investment management income
|
71
|
|
|
—
|
|
|
—
|
|
|
71
|
|
||||
Retail investment services 4
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
||||
Commercial real estate related income
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
||||
Net securities gains/(losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other noninterest income
|
6
|
|
|
—
|
|
|
18
|
|
|
24
|
|
||||
Total noninterest income
|
|
$332
|
|
|
|
$135
|
|
|
|
$317
|
|
|
|
$784
|
|
1
|
Consumer total noninterest income and Wholesale total noninterest income exclude $114 million and $229 million of out of scope noninterest income, respectively, which are included in the business segment results presented on a management accounting basis in Note 19, "Business Segment Reporting." Out of scope total noninterest income includes these amounts and also includes ($26) million of Corporate Other noninterest income that is not subject to ASC Topic 606.
|
2
|
The Company presents out of scope noninterest income for the purpose of reconciling noninterest income amounts within the scope of ASC Topic 606 to noninterest income amounts presented on the Company's Consolidated Statements of Income.
|
3
|
The Company recognized an immaterial amount of insurance trailing commissions, the majority of which related to performance obligations satisfied in prior periods.
|
4
|
The Company recognized $11 million of mutual fund 12b-1 fees and annuity trailing commissions, the majority of which related to performance obligations satisfied in periods prior to March 31, 2019.
|
|
Three Months Ended March 31, 2018
|
||||||||||||||
(Dollars in millions)
|
Consumer 1
|
|
Wholesale 1
|
|
Out of Scope 1, 2
|
|
Total
|
||||||||
Noninterest income
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts
|
|
$104
|
|
|
|
$42
|
|
|
|
$—
|
|
|
|
$146
|
|
Other charges and fees 3, 4
|
28
|
|
|
3
|
|
|
54
|
|
|
85
|
|
||||
Card fees
|
54
|
|
|
26
|
|
|
1
|
|
|
81
|
|
||||
Investment banking income 3
|
—
|
|
|
86
|
|
|
47
|
|
|
133
|
|
||||
Trading income
|
—
|
|
|
—
|
|
|
42
|
|
|
42
|
|
||||
Mortgage related income
|
—
|
|
|
—
|
|
|
90
|
|
|
90
|
|
||||
Trust and investment management income
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
||||
Retail investment services 5
|
71
|
|
|
1
|
|
|
—
|
|
|
72
|
|
||||
Commercial real estate related income
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
||||
Net securities gains/(losses)
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Other noninterest income
|
6
|
|
|
—
|
|
|
42
|
|
|
48
|
|
||||
Total noninterest income
|
|
$338
|
|
|
|
$158
|
|
|
|
$300
|
|
|
|
$796
|
|
1
|
Consumer total noninterest income and Wholesale total noninterest income exclude $112 million and $182 million of out of scope noninterest income, respectively, which are included in the business segment results presented on a management accounting basis in Note 19, "Business Segment Reporting." Out of scope total noninterest income includes these amounts and also includes $6 million of Corporate Other noninterest income that is not subject to ASC Topic 606.
|
2
|
The Company presents out of scope noninterest income for the purpose of reconciling noninterest income amounts within the scope of ASC Topic 606 to noninterest income amounts presented on the Company's Consolidated Statements of Income.
|
3
|
Beginning July 1, 2018, the Company began presenting bridge commitment fee income related to capital market transactions in Investment banking income on the Consolidated Statements of Income. For periods prior to July 1, 2018, this income was previously presented in Other charges and fees and has been reclassified to Investment banking income for comparability.
|
4
|
The Company recognized an immaterial amount of insurance trailing commissions, the majority of which related to performance obligations satisfied in prior periods.
|
5
|
The Company recognized $13 million of mutual fund 12b-1 fees and annuity trailing commissions, the majority of which related to performance obligations satisfied in periods prior to March 31, 2018.
|
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Fed funds sold
|
|
$—
|
|
|
|
$42
|
|
Securities borrowed
|
468
|
|
|
394
|
|
||
Securities purchased under agreements to resell
|
918
|
|
|
1,243
|
|
||
Total Fed funds sold and securities borrowed or purchased under agreements to resell
|
|
$1,386
|
|
|
|
$1,679
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
(Dollars in millions)
|
Overnight and Continuous
|
|
Up to 30 days
|
|
30-90 days
|
|
Total
|
|
Overnight and Continuous
|
|
Up to 30 days
|
|
30-90 days
|
|
Total
|
||||||||||||||||
U.S. Treasury securities
|
|
$110
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$110
|
|
|
|
$197
|
|
|
|
$7
|
|
|
|
$—
|
|
|
|
$204
|
|
Federal agency securities
|
159
|
|
|
8
|
|
|
—
|
|
|
167
|
|
|
112
|
|
|
10
|
|
|
—
|
|
|
122
|
|
||||||||
MBS - agency
|
993
|
|
|
81
|
|
|
8
|
|
|
1,082
|
|
|
881
|
|
|
35
|
|
|
—
|
|
|
916
|
|
||||||||
CP
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
78
|
|
||||||||
Corporate and other debt securities
|
418
|
|
|
64
|
|
|
72
|
|
|
554
|
|
|
216
|
|
|
158
|
|
|
80
|
|
|
454
|
|
||||||||
Total securities sold under agreements to repurchase
|
|
$1,729
|
|
|
|
$153
|
|
|
|
$80
|
|
|
|
$1,962
|
|
|
|
$1,484
|
|
|
|
$210
|
|
|
|
$80
|
|
|
|
$1,774
|
|
(Dollars in millions)
|
Gross
Amount
|
|
Amount
Offset
|
|
Net Amount
Presented in
Consolidated
Balance Sheets
|
|
Held/Pledged Financial
Instruments
|
|
Net
Amount
|
||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities borrowed or purchased under agreements to resell
|
|
$1,386
|
|
|
|
$—
|
|
|
|
$1,386
|
|
1
|
|
$1,368
|
|
|
|
$18
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities sold under agreements to repurchase
|
1,962
|
|
|
—
|
|
|
1,962
|
|
|
1,960
|
|
|
2
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities borrowed or purchased under agreements to resell
|
|
$1,637
|
|
|
|
$—
|
|
|
|
$1,637
|
|
1
|
|
$1,624
|
|
|
|
$13
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities sold under agreements to repurchase
|
1,774
|
|
|
—
|
|
|
1,774
|
|
|
1,774
|
|
|
—
|
|
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Trading Assets and Derivative Instruments:
|
|
|
|
||||
U.S. Treasury securities
|
|
$258
|
|
|
|
$262
|
|
Federal agency securities
|
281
|
|
|
188
|
|
||
U.S. states and political subdivisions
|
33
|
|
|
54
|
|
||
MBS - agency
|
814
|
|
|
860
|
|
||
Corporate and other debt securities
|
889
|
|
|
700
|
|
||
CP
|
283
|
|
|
190
|
|
||
Equity securities
|
71
|
|
|
73
|
|
||
Derivative instruments 1
|
1,028
|
|
|
639
|
|
||
Trading loans 2
|
2,602
|
|
|
2,540
|
|
||
Total trading assets and derivative instruments
|
|
$6,259
|
|
|
|
$5,506
|
|
|
|
|
|
||||
Trading Liabilities and Derivative Instruments:
|
|
|
|
||||
U.S. Treasury securities
|
|
$873
|
|
|
|
$801
|
|
MBS - agency
|
3
|
|
|
3
|
|
||
Corporate and other debt securities
|
456
|
|
|
385
|
|
||
Equity securities
|
13
|
|
|
5
|
|
||
Derivative instruments 1
|
264
|
|
|
410
|
|
||
Total trading liabilities and derivative instruments
|
|
$1,609
|
|
|
|
$1,604
|
|
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Pledged trading assets to secure repurchase agreements 1
|
|
$1,337
|
|
|
|
$1,418
|
|
Pledged trading assets to secure certain derivative agreements
|
43
|
|
|
22
|
|
||
Pledged trading assets to secure other arrangements
|
40
|
|
|
40
|
|
|
March 31, 2019
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost |
|
Unrealized
Gains |
|
Unrealized
Losses |
|
Fair
Value |
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$4,279
|
|
|
|
$4
|
|
|
|
$24
|
|
|
|
$4,259
|
|
Federal agency securities
|
143
|
|
|
1
|
|
|
2
|
|
|
142
|
|
||||
U.S. states and political subdivisions
|
594
|
|
|
6
|
|
|
7
|
|
|
593
|
|
||||
MBS - agency residential
|
23,149
|
|
|
207
|
|
|
146
|
|
|
23,210
|
|
||||
MBS - agency commercial
|
2,641
|
|
|
20
|
|
|
37
|
|
|
2,624
|
|
||||
MBS - non-agency commercial
|
1,009
|
|
|
7
|
|
|
4
|
|
|
1,012
|
|
||||
Corporate and other debt securities
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||
Total securities AFS
|
|
$31,828
|
|
|
|
$245
|
|
|
|
$220
|
|
|
|
$31,853
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2018
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost |
|
Unrealized
Gains |
|
Unrealized
Losses |
|
Fair
Value |
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$4,277
|
|
|
|
$—
|
|
|
|
$66
|
|
|
|
$4,211
|
|
Federal agency securities
|
221
|
|
|
2
|
|
|
2
|
|
|
221
|
|
||||
U.S. states and political subdivisions
|
606
|
|
|
4
|
|
|
21
|
|
|
589
|
|
||||
MBS - agency residential
|
23,161
|
|
|
128
|
|
|
425
|
|
|
22,864
|
|
||||
MBS - agency commercial
|
2,688
|
|
|
8
|
|
|
69
|
|
|
2,627
|
|
||||
MBS - non-agency commercial
|
943
|
|
|
—
|
|
|
27
|
|
|
916
|
|
||||
Corporate and other debt securities
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||
Total securities AFS
|
|
$31,910
|
|
|
|
$142
|
|
|
|
$610
|
|
|
|
$31,442
|
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2019
|
|
2018
|
||||
Taxable interest
|
|
$217
|
|
|
|
$201
|
|
Tax-exempt interest
|
4
|
|
|
5
|
|
||
Total interest on securities AFS
|
|
$221
|
|
|
|
$206
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
|
$649
|
|
|
|
$2,312
|
|
|
|
$1,318
|
|
|
|
$—
|
|
|
|
$4,279
|
|
Federal agency securities
|
39
|
|
|
33
|
|
|
4
|
|
|
67
|
|
|
143
|
|
|||||
U.S. states and political subdivisions
|
1
|
|
|
91
|
|
|
44
|
|
|
458
|
|
|
594
|
|
|||||
MBS - agency residential
|
1,494
|
|
|
3,800
|
|
|
17,081
|
|
|
774
|
|
|
23,149
|
|
|||||
MBS - agency commercial
|
—
|
|
|
646
|
|
|
1,672
|
|
|
323
|
|
|
2,641
|
|
|||||
MBS - non-agency commercial
|
—
|
|
|
12
|
|
|
976
|
|
|
21
|
|
|
1,009
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Total securities AFS
|
|
$2,183
|
|
|
|
$6,907
|
|
|
|
$21,095
|
|
|
|
$1,643
|
|
|
|
$31,828
|
|
Fair Value:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
|
$645
|
|
|
|
$2,295
|
|
|
|
$1,319
|
|
|
|
$—
|
|
|
|
$4,259
|
|
Federal agency securities
|
39
|
|
|
33
|
|
|
4
|
|
|
66
|
|
|
142
|
|
|||||
U.S. states and political subdivisions
|
1
|
|
|
95
|
|
|
45
|
|
|
452
|
|
|
593
|
|
|||||
MBS - agency residential
|
1,544
|
|
|
3,809
|
|
|
17,086
|
|
|
771
|
|
|
23,210
|
|
|||||
MBS - agency commercial
|
—
|
|
|
639
|
|
|
1,669
|
|
|
316
|
|
|
2,624
|
|
|||||
MBS - non-agency commercial
|
—
|
|
|
12
|
|
|
979
|
|
|
21
|
|
|
1,012
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Total securities AFS
|
|
$2,229
|
|
|
|
$6,896
|
|
|
|
$21,102
|
|
|
|
$1,626
|
|
|
|
$31,853
|
|
Weighted average yield 1
|
2.78
|
%
|
|
2.36
|
%
|
|
3.01
|
%
|
|
3.08
|
%
|
|
2.86
|
%
|
|
March 31, 2019
|
||||||||||||||||||||||
|
Less than twelve months
|
|
Twelve months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in millions)
|
Fair
Value |
|
Unrealized 1
Losses |
|
Fair
Value |
|
Unrealized 1
Losses |
|
Fair
Value |
|
Unrealized 1
Losses |
||||||||||||
Temporarily impaired securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$—
|
|
|
|
$—
|
|
|
|
$2,646
|
|
|
|
$24
|
|
|
|
$2,646
|
|
|
|
$24
|
|
Federal agency securities
|
5
|
|
|
—
|
|
|
61
|
|
|
2
|
|
|
66
|
|
|
2
|
|
||||||
U.S. states and political subdivisions
|
—
|
|
|
—
|
|
|
433
|
|
|
7
|
|
|
433
|
|
|
7
|
|
||||||
MBS - agency residential
|
1
|
|
|
—
|
|
|
13,125
|
|
|
146
|
|
|
13,126
|
|
|
146
|
|
||||||
MBS - agency commercial
|
19
|
|
|
—
|
|
|
1,723
|
|
|
37
|
|
|
1,742
|
|
|
37
|
|
||||||
MBS - non-agency commercial
|
21
|
|
|
—
|
|
|
370
|
|
|
4
|
|
|
391
|
|
|
4
|
|
||||||
Corporate and other debt securities
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Total temporarily impaired securities AFS
|
46
|
|
|
—
|
|
|
18,365
|
|
|
220
|
|
|
18,411
|
|
|
220
|
|
||||||
OTTI securities AFS 2:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total OTTI securities AFS
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total impaired securities AFS
|
|
$46
|
|
|
|
$—
|
|
|
|
$18,365
|
|
|
|
$220
|
|
|
|
$18,411
|
|
|
|
$220
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Less than twelve months
|
|
Twelve months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in millions)
|
Fair
Value
|
|
Unrealized 1
Losses
|
|
Fair
Value
|
|
Unrealized 1
Losses
|
|
Fair
Value
|
|
Unrealized 1
Losses
|
||||||||||||
Temporarily impaired securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$—
|
|
|
|
$—
|
|
|
|
$4,177
|
|
|
|
$66
|
|
|
|
$4,177
|
|
|
|
$66
|
|
Federal agency securities
|
—
|
|
|
—
|
|
|
63
|
|
|
2
|
|
|
63
|
|
|
2
|
|
||||||
U.S. states and political subdivisions
|
49
|
|
|
1
|
|
|
430
|
|
|
20
|
|
|
479
|
|
|
21
|
|
||||||
MBS - agency residential
|
1,229
|
|
|
5
|
|
|
15,384
|
|
|
420
|
|
|
16,613
|
|
|
425
|
|
||||||
MBS - agency commercial
|
68
|
|
|
—
|
|
|
1,986
|
|
|
69
|
|
|
2,054
|
|
|
69
|
|
||||||
MBS - non-agency commercial
|
106
|
|
|
1
|
|
|
773
|
|
|
26
|
|
|
879
|
|
|
27
|
|
||||||
Corporate and other debt securities
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|
—
|
|
||||||
Total temporarily impaired securities AFS
|
1,452
|
|
|
7
|
|
|
22,822
|
|
|
603
|
|
|
24,274
|
|
|
610
|
|
||||||
OTTI securities AFS 2:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total OTTI securities AFS
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total impaired securities AFS
|
|
$1,452
|
|
|
|
$7
|
|
|
|
$22,822
|
|
|
|
$603
|
|
|
|
$24,274
|
|
|
|
$610
|
|
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Commercial loans:
|
|
|
|
||||
C&I 1
|
|
$73,278
|
|
|
|
$71,137
|
|
CRE
|
7,889
|
|
|
7,265
|
|
||
Commercial construction
|
2,562
|
|
|
2,538
|
|
||
Total commercial LHFI
|
83,729
|
|
|
80,940
|
|
||
Consumer loans:
|
|
|
|
||||
Residential mortgages - guaranteed
|
467
|
|
|
459
|
|
||
Residential mortgages - nonguaranteed 2
|
28,461
|
|
|
28,836
|
|
||
Residential home equity products
|
9,167
|
|
|
9,468
|
|
||
Residential construction
|
167
|
|
|
184
|
|
||
Guaranteed student
|
7,308
|
|
|
7,229
|
|
||
Other direct
|
11,029
|
|
|
10,615
|
|
||
Indirect
|
13,268
|
|
|
12,419
|
|
||
Credit cards
|
1,637
|
|
|
1,689
|
|
||
Total consumer LHFI
|
71,504
|
|
|
70,899
|
|
||
LHFI
|
|
$155,233
|
|
|
|
$151,839
|
|
LHFS 3
|
|
$1,781
|
|
|
|
$1,468
|
|
Loan Purchases, Sales, and Transfers
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2019
|
|
2018
|
||||
Non-routine purchases of LHFI 1, 2:
|
|
|
|
||||
Consumer loans
|
|
$173
|
|
|
|
$—
|
|
Routine purchases of LHFI 2, 3:
|
|
|
|
||||
Consumer loans
|
445
|
|
|
475
|
|
||
Loan sales 4, 5:
|
|
|
|
||||
Commercial loans
|
40
|
|
|
36
|
|
||
Transfers of loans from:
|
|
|
|
||||
LHFI to LHFS
|
614
|
|
|
204
|
|
||
LHFS to LHFI
|
4
|
|
|
6
|
|
||
LHFI to OREO
|
10
|
|
|
19
|
|
|
Commercial Loans
|
||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Commercial Construction
|
||||||||||||||||||
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pass
|
|
$71,078
|
|
|
|
$69,095
|
|
|
|
$7,761
|
|
|
|
$7,165
|
|
|
|
$2,543
|
|
|
|
$2,459
|
|
Criticized accruing
|
2,003
|
|
|
1,885
|
|
|
126
|
|
|
98
|
|
|
19
|
|
|
79
|
|
||||||
Criticized nonaccruing
|
197
|
|
|
157
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$73,278
|
|
|
|
$71,137
|
|
|
|
$7,889
|
|
|
|
$7,265
|
|
|
|
$2,562
|
|
|
|
$2,538
|
|
|
Consumer Loans 1
|
||||||||||||||||||||||
|
Residential Mortgages -
Nonguaranteed
|
|
Residential Home Equity Products
|
|
Residential Construction
|
||||||||||||||||||
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
Current FICO score range:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
700 and above
|
|
$25,541
|
|
|
|
$25,764
|
|
|
|
$7,761
|
|
|
|
$8,060
|
|
|
|
$137
|
|
|
|
$151
|
|
620 - 699
|
2,288
|
|
|
2,367
|
|
|
1,003
|
|
|
1,015
|
|
|
24
|
|
|
27
|
|
||||||
Below 620 2
|
632
|
|
|
705
|
|
|
403
|
|
|
393
|
|
|
6
|
|
|
6
|
|
||||||
Total
|
|
$28,461
|
|
|
|
$28,836
|
|
|
|
$9,167
|
|
|
|
$9,468
|
|
|
|
$167
|
|
|
|
$184
|
|
|
Other Direct
|
|
Indirect
|
|
Credit Cards
|
||||||||||||||||||
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
Current FICO score range:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
700 and above
|
|
$9,990
|
|
|
|
$9,642
|
|
|
|
$10,008
|
|
|
|
$9,315
|
|
|
|
$1,101
|
|
|
|
$1,142
|
|
620 - 699
|
996
|
|
|
935
|
|
|
2,449
|
|
|
2,395
|
|
|
411
|
|
|
420
|
|
||||||
Below 620 2
|
43
|
|
|
38
|
|
|
811
|
|
|
709
|
|
|
125
|
|
|
127
|
|
||||||
Total
|
|
$11,029
|
|
|
|
$10,615
|
|
|
|
$13,268
|
|
|
|
$12,419
|
|
|
|
$1,637
|
|
|
|
$1,689
|
|
|
March 31, 2019
|
||||||||||||||||||
|
Accruing
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
Current
|
|
30-89 Days
Past Due
|
|
90+ Days
Past Due
|
|
Nonaccruing 1
|
|
Total
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$73,016
|
|
|
|
$49
|
|
|
|
$16
|
|
|
|
$197
|
|
|
|
$73,278
|
|
CRE
|
7,885
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
7,889
|
|
|||||
Commercial construction
|
2,561
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2,562
|
|
|||||
Total commercial LHFI
|
83,462
|
|
|
52
|
|
|
16
|
|
|
199
|
|
|
83,729
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgages - guaranteed
|
141
|
|
|
35
|
|
|
291
|
|
|
—
|
|
3
|
467
|
|
|||||
Residential mortgages - nonguaranteed 2
|
28,215
|
|
|
50
|
|
|
18
|
|
|
178
|
|
|
28,461
|
|
|||||
Residential home equity products
|
8,983
|
|
|
60
|
|
|
—
|
|
|
124
|
|
|
9,167
|
|
|||||
Residential construction
|
158
|
|
|
—
|
|
|
1
|
|
|
8
|
|
|
167
|
|
|||||
Guaranteed student
|
5,350
|
|
|
648
|
|
|
1,310
|
|
|
—
|
|
3
|
7,308
|
|
|||||
Other direct
|
10,970
|
|
|
47
|
|
|
4
|
|
|
8
|
|
|
11,029
|
|
|||||
Indirect
|
13,183
|
|
|
79
|
|
|
1
|
|
|
5
|
|
|
13,268
|
|
|||||
Credit cards
|
1,603
|
|
|
16
|
|
|
18
|
|
|
—
|
|
|
1,637
|
|
|||||
Total consumer LHFI
|
68,603
|
|
|
935
|
|
|
1,643
|
|
|
323
|
|
|
71,504
|
|
|||||
Total LHFI
|
|
$152,065
|
|
|
|
$987
|
|
|
|
$1,659
|
|
|
|
$522
|
|
|
|
$155,233
|
|
|
December 31, 2018
|
||||||||||||||||||
|
Accruing
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
Current
|
|
30-89 Days
Past Due
|
|
90+ Days
Past Due
|
|
Nonaccruing 1
|
|
Total
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$70,901
|
|
|
|
$64
|
|
|
|
$15
|
|
|
|
$157
|
|
|
|
$71,137
|
|
CRE
|
7,259
|
|
|
3
|
|
|
1
|
|
|
2
|
|
|
7,265
|
|
|||||
Commercial construction
|
2,538
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,538
|
|
|||||
Total commercial LHFI
|
80,698
|
|
|
67
|
|
|
16
|
|
|
159
|
|
|
80,940
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgages - guaranteed
|
125
|
|
|
39
|
|
|
295
|
|
|
—
|
|
3
|
459
|
|
|||||
Residential mortgages - nonguaranteed 2
|
28,552
|
|
|
70
|
|
|
10
|
|
|
204
|
|
|
28,836
|
|
|||||
Residential home equity products
|
9,268
|
|
|
62
|
|
|
—
|
|
|
138
|
|
|
9,468
|
|
|||||
Residential construction
|
170
|
|
|
3
|
|
|
—
|
|
|
11
|
|
|
184
|
|
|||||
Guaranteed student
|
5,236
|
|
|
685
|
|
|
1,308
|
|
|
—
|
|
3
|
7,229
|
|
|||||
Other direct
|
10,559
|
|
|
45
|
|
|
4
|
|
|
7
|
|
|
10,615
|
|
|||||
Indirect
|
12,286
|
|
|
125
|
|
|
1
|
|
|
7
|
|
|
12,419
|
|
|||||
Credit cards
|
1,654
|
|
|
17
|
|
|
18
|
|
|
—
|
|
|
1,689
|
|
|||||
Total consumer LHFI
|
67,850
|
|
|
1,046
|
|
|
1,636
|
|
|
367
|
|
|
70,899
|
|
|||||
Total LHFI
|
|
$148,548
|
|
|
|
$1,113
|
|
|
|
$1,652
|
|
|
|
$526
|
|
|
|
$151,839
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(Dollars in millions)
|
Unpaid
Principal
Balance
|
|
Carrying 1
Value
|
|
Related
ALLL
|
|
Unpaid
Principal
Balance
|
|
Carrying 1
Value
|
|
Related
ALLL
|
||||||||||||
Impaired LHFI with no ALLL recorded:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$88
|
|
|
|
$69
|
|
|
|
$—
|
|
|
|
$132
|
|
|
|
$79
|
|
|
|
$—
|
|
CRE
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
||||||
Total commercial LHFI with no ALLL recorded
|
88
|
|
|
69
|
|
|
—
|
|
|
142
|
|
|
79
|
|
|
—
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgages - nonguaranteed
|
376
|
|
|
299
|
|
|
—
|
|
|
501
|
|
|
397
|
|
|
—
|
|
||||||
Residential construction
|
8
|
|
|
4
|
|
|
—
|
|
|
12
|
|
|
7
|
|
|
—
|
|
||||||
Total consumer LHFI with no ALLL recorded
|
384
|
|
|
303
|
|
|
—
|
|
|
513
|
|
|
404
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired LHFI with an ALLL recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
205
|
|
|
191
|
|
|
39
|
|
|
81
|
|
|
70
|
|
|
13
|
|
||||||
Total commercial LHFI with an ALLL recorded
|
205
|
|
|
191
|
|
|
39
|
|
|
81
|
|
|
70
|
|
|
13
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgages - nonguaranteed
|
594
|
|
|
589
|
|
|
58
|
|
|
1,006
|
|
|
984
|
|
|
96
|
|
||||||
Residential home equity products
|
826
|
|
|
779
|
|
|
45
|
|
|
849
|
|
|
799
|
|
|
44
|
|
||||||
Residential construction
|
76
|
|
|
73
|
|
|
5
|
|
|
79
|
|
|
76
|
|
|
6
|
|
||||||
Other direct
|
56
|
|
|
56
|
|
|
—
|
|
|
57
|
|
|
57
|
|
|
1
|
|
||||||
Indirect
|
134
|
|
|
133
|
|
|
5
|
|
|
133
|
|
|
133
|
|
|
5
|
|
||||||
Credit cards
|
31
|
|
|
9
|
|
|
2
|
|
|
30
|
|
|
9
|
|
|
2
|
|
||||||
Total consumer LHFI with an ALLL recorded
|
1,717
|
|
|
1,639
|
|
|
115
|
|
|
2,154
|
|
|
2,058
|
|
|
154
|
|
||||||
Total impaired LHFI
|
|
$2,394
|
|
|
|
$2,202
|
|
|
|
$154
|
|
|
|
$2,890
|
|
|
|
$2,611
|
|
|
|
$167
|
|
|
Three Months Ended March 31
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
(Dollars in millions)
|
Average
Carrying
Value
|
|
Interest 1
Income
Recognized
|
|
Average
Carrying
Value
|
|
Interest 1
Income
Recognized
|
||||||||
Impaired LHFI with no ALLL recorded:
|
|
|
|
|
|
|
|||||||||
Commercial loans:
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$76
|
|
|
|
$1
|
|
|
|
$20
|
|
|
|
$—
|
|
CRE
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
||||
Total commercial LHFI with no ALLL recorded
|
76
|
|
|
1
|
|
|
41
|
|
|
—
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
300
|
|
|
4
|
|
|
353
|
|
|
4
|
|
||||
Residential construction
|
4
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Total consumer LHFI with no ALLL recorded
|
304
|
|
|
4
|
|
|
359
|
|
|
4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Impaired LHFI with an ALLL recorded:
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
||||||||
C&I
|
190
|
|
|
—
|
|
|
149
|
|
|
1
|
|
||||
CRE
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
||||
Total commercial LHFI with an ALLL recorded
|
190
|
|
|
—
|
|
|
174
|
|
|
1
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
||||||||
Residential mortgages - nonguaranteed
|
617
|
|
|
13
|
|
|
1,093
|
|
|
12
|
|
||||
Residential home equity products
|
781
|
|
|
9
|
|
|
873
|
|
|
9
|
|
||||
Residential construction
|
74
|
|
|
1
|
|
|
90
|
|
|
1
|
|
||||
Other direct
|
55
|
|
|
1
|
|
|
57
|
|
|
1
|
|
||||
Indirect
|
136
|
|
|
2
|
|
|
131
|
|
|
2
|
|
||||
Credit cards
|
9
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Total consumer LHFI with an ALLL recorded
|
1,672
|
|
|
26
|
|
|
2,251
|
|
|
25
|
|
||||
Total impaired LHFI
|
|
$2,242
|
|
|
|
$31
|
|
|
|
$2,825
|
|
|
|
$30
|
|
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
NPAs:
|
|
|
|
||||
Commercial NPLs:
|
|
|
|
||||
C&I
|
|
$197
|
|
|
|
$157
|
|
CRE
|
2
|
|
|
2
|
|
||
Consumer NPLs:
|
|
|
|
||||
Residential mortgages - nonguaranteed
|
178
|
|
|
204
|
|
||
Residential home equity products
|
124
|
|
|
138
|
|
||
Residential construction
|
8
|
|
|
11
|
|
||
Other direct
|
8
|
|
|
7
|
|
||
Indirect
|
5
|
|
|
7
|
|
||
Total nonaccrual LHFI/NPLs 1
|
522
|
|
|
526
|
|
||
OREO 2
|
53
|
|
|
54
|
|
||
Other repossessed assets
|
9
|
|
|
9
|
|
||
Nonperforming LHFS
|
64
|
|
|
—
|
|
||
Total NPAs
|
|
$648
|
|
|
|
$589
|
|
|
Three Months Ended March 31, 2019 1
|
|||||||||||||
(Dollars in millions)
|
Number of Loans Modified
|
|
Rate Modification
|
|
Term Extension and/or Other Concessions
|
|
Total
|
|||||||
Commercial loans:
|
|
|
|
|
|
|
|
|||||||
C&I
|
34
|
|
|
|
$1
|
|
|
|
$56
|
|
|
|
$57
|
|
Consumer loans:
|
|
|
|
|
|
|
|
|||||||
Residential mortgages - nonguaranteed
|
31
|
|
|
1
|
|
|
4
|
|
|
5
|
|
|||
Residential home equity products
|
84
|
|
|
1
|
|
|
6
|
|
|
7
|
|
|||
Other direct
|
140
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|||
Indirect
|
568
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|||
Credit cards
|
439
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Total TDR additions
|
1,296
|
|
|
|
$5
|
|
|
|
$83
|
|
|
|
$88
|
|
|
Three Months Ended March 31, 2018 1
|
|||||||||||||
(Dollars in millions)
|
Number of Loans Modified
|
|
Rate Modification
|
|
Term Extension and/or Other Concessions
|
|
Total
|
|||||||
Commercial loans:
|
|
|
|
|
|
|
|
|||||||
C&I
|
46
|
|
|
|
$—
|
|
|
|
$56
|
|
|
|
$56
|
|
Consumer loans:
|
|
|
|
|
|
|
|
|||||||
Residential mortgages - nonguaranteed
|
61
|
|
|
9
|
|
|
8
|
|
|
17
|
|
|||
Residential home equity products
|
136
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|||
Other direct
|
114
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||
Indirect
|
778
|
|
|
—
|
|
|
20
|
|
|
20
|
|
|||
Credit cards
|
308
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|||
Total TDR additions
|
1,443
|
|
|
|
$10
|
|
|
|
$99
|
|
|
|
$109
|
|
|
Three Months Ended March 31, 2019
|
||||||||||
(Dollars in millions)
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
ALLL, beginning of period
|
|
$1,080
|
|
|
|
$535
|
|
|
|
$1,615
|
|
Provision for loan losses
|
84
|
|
|
72
|
|
|
156
|
|
|||
Loan charge-offs
|
(33
|
)
|
|
(92
|
)
|
|
(125
|
)
|
|||
Loan recoveries
|
5
|
|
|
23
|
|
|
28
|
|
|||
Other 1
|
—
|
|
|
(31
|
)
|
|
(31
|
)
|
|||
ALLL, end of period
|
1,136
|
|
|
507
|
|
|
1,643
|
|
|||
|
|
|
|
|
|
||||||
Unfunded commitments reserve, beginning of period 2
|
69
|
|
|
—
|
|
|
69
|
|
|||
Benefit for unfunded commitments
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||
Unfunded commitments reserve, end of period 2
|
66
|
|
|
—
|
|
|
66
|
|
|||
|
|
|
|
|
|
||||||
Allowance for credit losses, end of period
|
|
$1,202
|
|
|
|
$507
|
|
|
|
$1,709
|
|
|
Three Months Ended March 31, 2018
|
||||||||||
(Dollars in millions)
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
ALLL, beginning of period
|
|
$1,101
|
|
|
|
$634
|
|
|
|
$1,735
|
|
(Benefit)/provision for loan losses
|
(16
|
)
|
|
54
|
|
|
38
|
|
|||
Loan charge-offs
|
(23
|
)
|
|
(83
|
)
|
|
(106
|
)
|
|||
Loan recoveries
|
6
|
|
|
21
|
|
|
27
|
|
|||
ALLL, end of period
|
1,068
|
|
|
626
|
|
|
1,694
|
|
|||
|
|
|
|
|
|
||||||
Unfunded commitments reserve, beginning of period 1
|
79
|
|
|
—
|
|
|
79
|
|
|||
Benefit for unfunded commitments
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||
Unfunded commitments reserve, end of period 1
|
69
|
|
|
—
|
|
|
69
|
|
|||
|
|
|
|
|
|
||||||
Allowance for credit losses, end of period
|
|
$1,137
|
|
|
|
$626
|
|
|
|
$1,763
|
|
|
March 31, 2019
|
||||||||||||||||||||||
|
Commercial Loans
|
|
Consumer Loans
|
|
Total
|
||||||||||||||||||
(Dollars in millions)
|
Carrying
Value
|
|
Related
ALLL
|
|
Carrying
Value
|
|
Related
ALLL |
|
Carrying
Value
|
|
Related
ALLL |
||||||||||||
LHFI evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated
|
|
$260
|
|
|
|
$39
|
|
|
|
$1,942
|
|
|
|
$115
|
|
|
|
$2,202
|
|
|
|
$154
|
|
Collectively evaluated
|
83,469
|
|
|
1,097
|
|
|
69,428
|
|
|
392
|
|
|
152,897
|
|
|
1,489
|
|
||||||
Total evaluated
|
83,729
|
|
|
1,136
|
|
|
71,370
|
|
|
507
|
|
|
155,099
|
|
|
1,643
|
|
||||||
LHFI measured at fair value
|
—
|
|
|
—
|
|
|
134
|
|
|
—
|
|
|
134
|
|
|
—
|
|
||||||
Total LHFI
|
|
$83,729
|
|
|
|
$1,136
|
|
|
|
$71,504
|
|
|
|
$507
|
|
|
|
$155,233
|
|
|
|
$1,643
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Commercial Loans
|
|
Consumer Loans
|
|
Total
|
||||||||||||||||||
(Dollars in millions)
|
Carrying
Value |
|
Related
ALLL
|
|
Carrying
Value |
|
Related
ALLL |
|
Carrying
Value |
|
Related
ALLL |
||||||||||||
LHFI evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated
|
|
$149
|
|
|
|
$13
|
|
|
|
$2,462
|
|
|
|
$154
|
|
|
|
$2,611
|
|
|
|
$167
|
|
Collectively evaluated
|
80,791
|
|
|
1,067
|
|
|
68,274
|
|
|
381
|
|
|
149,065
|
|
|
1,448
|
|
||||||
Total evaluated
|
80,940
|
|
|
1,080
|
|
|
70,736
|
|
|
535
|
|
|
151,676
|
|
|
1,615
|
|
||||||
LHFI measured at fair value
|
—
|
|
|
—
|
|
|
163
|
|
|
—
|
|
|
163
|
|
|
—
|
|
||||||
Total LHFI
|
|
$80,940
|
|
|
|
$1,080
|
|
|
|
$70,899
|
|
|
|
$535
|
|
|
|
$151,839
|
|
|
|
$1,615
|
|
(Dollars in millions)
|
Residential MSRs - Fair Value
|
|
Commercial Mortgage Servicing Rights and Other
|
|
Total
|
||||||
Balance, January 1, 2019
|
|
$1,983
|
|
|
|
$79
|
|
|
|
$2,062
|
|
Amortization 1
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||
Servicing rights originated
|
63
|
|
|
4
|
|
|
67
|
|
|||
Changes in fair value:
|
|
|
|
|
|
||||||
Due to changes in inputs and assumptions 2
|
(110
|
)
|
|
—
|
|
|
(110
|
)
|
|||
Other changes in fair value 3
|
(52
|
)
|
|
—
|
|
|
(52
|
)
|
|||
Servicing rights sold
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Balance, March 31, 2019
|
|
$1,883
|
|
|
|
$80
|
|
|
|
$1,963
|
|
|
|
|
|
|
|
||||||
Balance, January 1, 2018
|
|
$1,710
|
|
|
|
$81
|
|
|
|
$1,791
|
|
Amortization 1
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|||
Servicing rights originated
|
76
|
|
|
4
|
|
|
80
|
|
|||
Servicing rights purchased
|
74
|
|
|
—
|
|
|
74
|
|
|||
Changes in fair value:
|
|
|
|
|
|
|
|||||
Due to changes in inputs and assumptions 2
|
111
|
|
|
—
|
|
|
111
|
|
|||
Other changes in fair value 3
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
|||
Balance, March 31, 2018
|
|
$1,916
|
|
|
|
$80
|
|
|
|
$1,996
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(Dollars in millions)
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||||||||
Amortized other intangible assets 1:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage servicing rights
|
|
$99
|
|
|
|
($32
|
)
|
|
|
$67
|
|
|
|
$95
|
|
|
|
($29
|
)
|
|
|
$66
|
|
Other
|
6
|
|
|
(5
|
)
|
|
1
|
|
|
6
|
|
|
(5
|
)
|
|
1
|
|
||||||
Unamortized other intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential MSRs
|
1,883
|
|
|
—
|
|
|
1,883
|
|
|
1,983
|
|
|
—
|
|
|
1,983
|
|
||||||
Other
|
12
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||||
Total other intangible assets
|
|
$2,000
|
|
|
|
($37
|
)
|
|
|
$1,963
|
|
|
|
$2,096
|
|
|
|
($34
|
)
|
|
|
$2,062
|
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2019
|
|
2018
|
||||
Income from residential MSRs 1
|
|
$111
|
|
|
|
$107
|
|
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
UPB of loans underlying residential MSRs
|
|
$138,793
|
|
|
|
$140,801
|
|
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Fair value of residential MSRs
|
|
$1,883
|
|
|
|
$1,983
|
|
Prepayment rate assumption (annual)
|
13
|
%
|
|
13
|
%
|
||
Decline in fair value from 10% adverse change
|
|
$99
|
|
|
|
$96
|
|
Decline in fair value from 20% adverse change
|
188
|
|
|
183
|
|
||
Option adjusted spread (annual)
|
2
|
%
|
|
2
|
%
|
||
Decline in fair value from 10% adverse change
|
|
$40
|
|
|
|
$44
|
|
Decline in fair value from 20% adverse change
|
78
|
|
|
86
|
|
||
Weighted-average life (in years)
|
5.2
|
|
|
5.5
|
|
||
Weighted-average coupon
|
4.0
|
%
|
|
4.0
|
%
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2019
|
|
2018
|
||||
Income from commercial mortgage servicing rights 1
|
|
$6
|
|
|
|
$7
|
|
Income from subservicing third party commercial mortgages 1
|
3
|
|
|
3
|
|
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
UPB of commercial mortgages subserviced for third parties
|
|
$29,195
|
|
|
|
$28,140
|
|
UPB of loans underlying commercial mortgage servicing rights
|
6,585
|
|
|
6,399
|
|
||
Total UPB of commercial mortgages serviced for third parties
|
|
$35,780
|
|
|
|
$34,539
|
|
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Fair value of commercial mortgage servicing rights
|
|
$78
|
|
|
|
$77
|
|
Discount rate (annual)
|
12
|
%
|
|
12
|
%
|
||
Decline in fair value from 10% adverse change
|
|
$3
|
|
|
|
$3
|
|
Decline in fair value from 20% adverse change
|
6
|
|
|
6
|
|
||
Prepayment rate assumption (annual)
|
6
|
%
|
|
5
|
%
|
||
Decline in fair value from 10% adverse change
|
|
$1
|
|
|
|
$1
|
|
Decline in fair value from 20% adverse change
|
2
|
|
|
2
|
|
||
Weighted-average life (in years)
|
8.2
|
|
|
8.1
|
|
||
Float earnings rate (annual)
|
1.1
|
%
|
|
1.1
|
%
|
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Equity securities 1:
|
|
|
|
||||
Marketable equity securities:
|
|
|
|
||||
Mutual fund investments
|
|
$65
|
|
|
|
$79
|
|
Other equity
|
20
|
|
|
16
|
|
||
Nonmarketable equity securities:
|
|
|
|
||||
Federal Reserve Bank stock
|
403
|
|
|
403
|
|
||
FHLB stock
|
366
|
|
|
227
|
|
||
Other equity
|
68
|
|
|
68
|
|
||
Tax credit investments 2
|
1,767
|
|
|
1,722
|
|
||
Bank-owned life insurance
|
1,636
|
|
|
1,627
|
|
||
Lease assets:
|
|
|
|
||||
Operating lease right-of-use assets 3
|
1,164
|
|
|
—
|
|
||
Underlying lessor assets
subject to operating leases, net 3
|
1,146
|
|
|
1,205
|
|
||
Build-to-suit lease assets
|
774
|
|
|
735
|
|
||
Accrued income
|
1,163
|
|
|
1,106
|
|
||
Accounts receivable
|
854
|
|
|
602
|
|
||
Pension assets, net
|
479
|
|
|
484
|
|
||
Prepaid expenses
|
251
|
|
|
231
|
|
||
OREO
|
53
|
|
|
54
|
|
||
Other
|
510
|
|
|
432
|
|
||
Total other assets
|
|
$10,719
|
|
|
|
$8,991
|
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2019
|
|
2018
|
||||
Net gains on marketable equity securities 1
|
|
$4
|
|
|
|
$1
|
|
Net gains/(losses) on nonmarketable equity securities:
|
|
|
|
||||
Remeasurement losses and impairment
|
—
|
|
|
—
|
|
||
Remeasurement gains 1
|
—
|
|
|
23
|
|
||
Less: Net realized gains on sale
|
—
|
|
|
—
|
|
||
Total net unrealized gains on non-trading equity securities
|
|
$4
|
|
|
|
$24
|
|
(Dollars in millions)
|
Classification
|
|
March 31, 2019
|
||
Assets:
|
|
|
|
||
Operating lease right-of-use assets
|
Other assets
|
|
|
$1,164
|
|
Finance lease right-of-use assets
|
Premises, property, and equipment, net
|
|
14
|
|
|
Total right-of-use assets
|
|
|
|
$1,178
|
|
Liabilities:
|
|
|
|
||
Operating leases
|
Other liabilities
|
|
|
$1,238
|
|
Finance leases
|
Long-term debt
|
|
16
|
|
|
Total lease liabilities
|
|
|
|
$1,254
|
|
(Dollars in millions)
|
Three Months Ended March 31, 2019
|
||
Components of total lease cost:
|
|
||
Operating lease cost
|
|
$52
|
|
Finance lease cost:
|
|
||
Amortization of right-of-use assets
|
1
|
|
|
Variable lease cost
|
8
|
|
|
Less: Sublease income
|
(1
|
)
|
|
Total lease cost, net
|
|
$60
|
|
(Dollars in millions)
|
Three Months Ended March 31, 2019
|
||
Supplemental lease information
|
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
|
$49
|
|
Financing cash flows from finance leases
|
1
|
|
|
|
|
||
Lease liabilities arising from obtaining right-of-use assets (subsequent to adoption):
|
|
||
Operating leases
|
19
|
|
(Dollars in millions)
|
March 31, 2019
|
|
Weighted-average remaining lease term (in years):
|
|
|
Operating leases
|
8.3
|
|
Finance leases
|
4.6
|
|
Weighted-average discount rate (annual):
|
|
|
Operating leases
|
3.3
|
%
|
Finance leases
|
3.9
|
|
(Dollars in millions)
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
Year 1
|
|
$185
|
|
|
|
$5
|
|
|
|
$190
|
|
Year 2
|
191
|
|
|
3
|
|
|
194
|
|
|||
Year 3
|
180
|
|
|
3
|
|
|
183
|
|
|||
Year 4
|
163
|
|
|
4
|
|
|
167
|
|
|||
Year 5
|
142
|
|
|
1
|
|
|
143
|
|
|||
Thereafter
|
573
|
|
|
1
|
|
|
574
|
|
|||
Total lease payments
|
1,434
|
|
|
17
|
|
|
1,451
|
|
|||
Less: Imputed interest
|
(196
|
)
|
|
(1
|
)
|
|
(197
|
)
|
|||
Present value of lease liabilities
|
|
$1,238
|
|
|
|
$16
|
|
|
|
$1,254
|
|
(Dollars in millions)
|
Three Months Ended March 31, 2019
|
||
Interest income from sales-type and direct financing leases
|
|
$37
|
|
Lease income relating to lease payments - operating leases
|
53
|
|
|
Lease income relating to variable lease payments not included in the measurement of the lease receivable
|
2
|
|
|
Total lease income
|
|
$92
|
|
(Dollars in millions)
|
March 31, 2019
|
||
Carrying amount of lease receivables
|
3,900
|
|
|
Unguaranteed residual assets
|
184
|
|
|
Net investment in sales-type and direct financing lease assets 1
|
|
$4,084
|
|
(Dollars in millions)
|
Sales-Type and Direct Financing Leases
|
||
Year 1
|
|
$805
|
|
Year 2
|
693
|
|
|
Year 3
|
663
|
|
|
Year 4
|
428
|
|
|
Year 5
|
352
|
|
|
Thereafter
|
1,430
|
|
|
Total lease receivables
|
4,371
|
|
|
Less: Reconciling items 1
|
(471
|
)
|
|
Present value of lease receivables
|
|
$3,900
|
|
(Dollars in millions)
|
Operating Leases
|
||
Year 1
|
|
$183
|
|
Year 2
|
162
|
|
|
Year 3
|
133
|
|
|
Year 4
|
105
|
|
|
Year 5
|
100
|
|
|
Thereafter
|
287
|
|
|
Total lease payments to be received
|
|
$970
|
|
(Dollars in millions)
|
Useful life
(in years)
|
|
March 31, 2019
|
||
Underlying lessor assets subject to operating leases: 1
|
|
|
|
||
Real estate 2
|
15 - 20
|
|
|
$178
|
|
Equipment
|
2 - 30
|
|
1,532
|
|
|
Total underlying lessor assets subject to operating leases
|
|
|
1,710
|
|
|
Less: Accumulated depreciation and amortization
|
|
|
(564
|
)
|
|
Underlying lessor assets subject to operating leases, net 3
|
|
|
|
$1,146
|
|
|
Portfolio Balance
|
|
Past Due and Nonaccrual
|
|
Net Charge-offs
|
|
||||||||||||||||||
|
March 31,
2019 |
|
December 31, 2018
|
|
March 31,
2019 |
|
December 31, 2018
|
|
Three Months Ended March 31
|
|
||||||||||||||
(Dollars in millions)
|
|
2019
|
|
2018
|
|
|||||||||||||||||||
LHFI portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
$83,729
|
|
|
|
$80,940
|
|
|
|
$215
|
|
|
|
$175
|
|
|
|
$28
|
|
|
|
$17
|
|
|
Consumer
|
71,504
|
|
|
70,899
|
|
|
1,966
|
|
|
2,003
|
|
|
69
|
|
|
62
|
|
|
||||||
Total LHFI portfolio
|
155,233
|
|
|
151,839
|
|
|
2,181
|
|
|
2,178
|
|
|
97
|
|
|
79
|
|
|
||||||
Managed securitized loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial 1
|
6,585
|
|
|
6,399
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
Consumer
|
138,299
|
|
|
139,809
|
|
|
148
|
|
|
146
|
|
|
—
|
|
2
|
2
|
|
2
|
||||||
Total managed securitized loans
|
144,884
|
|
|
146,208
|
|
|
148
|
|
|
146
|
|
|
—
|
|
|
2
|
|
|
||||||
Managed unsecuritized loans 3
|
607
|
|
|
1,134
|
|
|
79
|
|
|
152
|
|
|
—
|
|
|
—
|
|
|
||||||
Total managed loans
|
|
$300,724
|
|
|
|
$299,181
|
|
|
|
$2,408
|
|
|
|
$2,476
|
|
|
|
$97
|
|
|
|
$81
|
|
|
|
Community Development Investments
|
|
Renewable Energy Partnerships
|
||||||||||||
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||
Carrying value of investments 1
|
|
$1,686
|
|
|
|
$1,636
|
|
|
|
$81
|
|
|
|
$86
|
|
Maximum exposure to loss related to investments 2
|
2,262
|
|
|
2,207
|
|
|
81
|
|
|
138
|
|
1
|
At March 31, 2019 and December 31, 2018, the carrying value of community development investments excludes $69 million and $68 million of investments in funds that do not qualify for tax credits, respectively.
|
2
|
At March 31, 2019 and December 31, 2018, the Company's maximum exposure to loss related to community development investments includes $503 million and $422 million of loans and $579 million and $639 million of unfunded equity commitments, respectively. At March 31, 2019 and December 31, 2018, the Company's maximum exposure to loss related to renewable energy partnerships includes $0 and $52 million of unfunded equity commitments, respectively.
|
|
Tax Credits
|
|
Amortization
|
||||||||||||
|
Three Months Ended March 31
|
|
Three Months Ended March 31
|
||||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Qualified affordable housing partnerships
|
|
$33
|
|
|
|
$30
|
|
|
|
$35
|
|
|
|
$32
|
|
Other community development investments
|
18
|
|
|
18
|
|
|
15
|
|
|
14
|
|
|
Three Months Ended March 31
|
||||||
(Dollars and shares in millions, except per share data)
|
2019
|
|
2018
|
||||
Net income
|
|
$580
|
|
|
|
$643
|
|
Less:
|
|
|
|
||||
Preferred stock dividends
|
(26
|
)
|
|
(31
|
)
|
||
Net income available to common shareholders
|
|
$554
|
|
|
|
$612
|
|
|
|
|
|
||||
Average common shares outstanding - basic
|
443.6
|
|
|
468.7
|
|
||
Add dilutive securities:
|
|
|
|
||||
RSUs
|
2.6
|
|
|
2.8
|
|
||
Common stock warrants, options, and restricted stock
|
0.5
|
|
|
2.1
|
|
||
Average common shares outstanding - diluted
|
446.7
|
|
|
473.6
|
|
||
|
|
|
|
||||
Net income per average common share - diluted
|
|
$1.24
|
|
|
|
$1.29
|
|
Net income per average common share - basic
|
1.25
|
|
|
1.31
|
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2019
|
|
2018
|
||||
RSUs
|
|
$25
|
|
|
|
$39
|
|
Phantom stock units 1
|
12
|
|
|
17
|
|
||
Total stock-based compensation expense
|
|
$37
|
|
|
|
$56
|
|
|
|
|
|
||||
Stock-based compensation tax benefit 2
|
|
$9
|
|
|
|
$13
|
|
|
Three Months Ended March 31
|
||||||||||||||
|
Pension Benefits 1
|
|
Other Postretirement Benefits
|
||||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service cost
|
|
$1
|
|
|
|
$1
|
|
|
|
$—
|
|
|
|
$—
|
|
Interest cost
|
24
|
|
|
23
|
|
|
—
|
|
|
—
|
|
||||
Expected return on plan assets
|
(37
|
)
|
|
(47
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||
Amortization of actuarial loss
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit
|
|
($6
|
)
|
|
|
($17
|
)
|
|
|
($3
|
)
|
|
|
($3
|
)
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2019
|
|
2018
|
||||
Balance, beginning of period
|
|
$26
|
|
|
|
$39
|
|
Repurchase (benefit)/provision
|
(2
|
)
|
|
—
|
|
||
Balance, end of period
|
|
$24
|
|
|
|
$39
|
|
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Outstanding repurchased residential mortgage loans:
|
|||||||
Performing LHFI
|
|
$181
|
|
|
|
$183
|
|
Nonperforming LHFI
|
12
|
|
|
16
|
|
||
Total carrying value of outstanding repurchased residential mortgages
|
|
$193
|
|
|
|
$199
|
|
1
|
See “Cash Flow Hedging” in this Note for further discussion.
|
2
|
See “Fair Value Hedging” in this Note for further discussion.
|
3
|
See “Economic Hedging Instruments and Trading Activities” in this Note for further discussion.
|
4
|
Notional amounts include $1.9 billion and $921 million related to interest rate futures at March 31, 2019 and December 31, 2018, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table.
|
5
|
Notional amounts include $65 million and $116 million related to interest rate futures at March 31, 2019 and December 31, 2018, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table.
|
6
|
Notional amounts include $1.5 billion and $1.2 billion related to interest rate futures at March 31, 2019 and December 31, 2018, and $268 million and $136 million related to equity futures at March 31, 2019 and December 31, 2018, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table. Notional amounts also include amounts related to interest rate swaps hedging fixed rate debt.
|
7
|
Notional amounts include $8 million and $6 million from purchased credit risk participation agreements at March 31, 2019 and December 31, 2018, and $35 million and $33 million from written credit risk participation agreements at March 31, 2019 and December 31, 2018, respectively. These notional amounts are calculated as the notional of the derivative participated adjusted by the relevant RWA conversion factor.
|
8
|
Notional amounts include $41 million related to the Visa derivative liability at both March 31, 2019 and December 31, 2018. See Note 15, "Guarantees" for additional information.
|
(Dollars in millions)
|
Gross
Amount
|
|
Amount
Offset
|
|
Net Amount
Presented in
Consolidated
Balance Sheets
|
|
Held/Pledged
Financial
Instruments
|
|
Net
Amount
|
||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$2,720
|
|
|
|
$1,976
|
|
|
|
$744
|
|
|
|
$13
|
|
|
|
$731
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
24
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|||||
Exchange traded derivatives
|
384
|
|
|
124
|
|
|
260
|
|
|
—
|
|
|
260
|
|
|||||
Total derivative instrument assets
|
|
$3,128
|
|
|
|
$2,100
|
|
|
|
$1,028
|
|
1
|
|
$13
|
|
|
|
$1,015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$2,599
|
|
|
|
$2,416
|
|
|
|
$183
|
|
|
|
$30
|
|
|
|
$153
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
81
|
|
|
—
|
|
|
81
|
|
|
—
|
|
|
81
|
|
|||||
Exchange traded derivatives
|
124
|
|
|
124
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total derivative instrument liabilities
|
|
$2,804
|
|
|
|
$2,540
|
|
|
|
$264
|
|
2
|
|
$30
|
|
|
|
$234
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$2,425
|
|
|
|
$1,873
|
|
|
|
$552
|
|
|
|
$12
|
|
|
|
$540
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
20
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|||||
Exchange traded derivatives
|
186
|
|
|
119
|
|
|
67
|
|
|
—
|
|
|
67
|
|
|||||
Total derivative instrument assets
|
|
$2,631
|
|
|
|
$1,992
|
|
|
|
$639
|
|
1
|
|
$12
|
|
|
|
$627
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instrument liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to master netting arrangement or similar arrangement
|
|
$2,521
|
|
|
|
$2,187
|
|
|
|
$334
|
|
|
|
$14
|
|
|
|
$320
|
|
Derivatives not subject to master netting arrangement or similar arrangement
|
76
|
|
|
—
|
|
|
76
|
|
|
—
|
|
|
76
|
|
|||||
Exchange traded derivatives
|
119
|
|
|
119
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total derivative instrument liabilities
|
|
$2,716
|
|
|
|
$2,306
|
|
|
|
$410
|
|
2
|
|
$14
|
|
|
|
$396
|
|
|
Net Interest Income
|
|
|
||||||||
(Dollars in millions)
|
Interest and fees on LHFI
|
|
Interest on Long-term Debt
|
|
Total
|
||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
||||||
Interest income/(expense), including the effects of fair value and cash flow hedges
|
|
$1,697
|
|
|
|
($125
|
)
|
|
|
$1,572
|
|
|
|
|
|
|
|
||||||
(Loss)/gain on fair value hedging relationships:
|
|
|
|
|
|
||||||
Interest rate contracts:
|
|
|
|
|
|
||||||
Amounts related to interest settlements on derivatives
|
|
$—
|
|
|
|
($4
|
)
|
|
|
($4
|
)
|
Recognized on derivatives
|
—
|
|
|
66
|
|
|
66
|
|
|||
Recognized on hedged items
|
—
|
|
|
(71
|
)
|
1
|
(71
|
)
|
|||
Net expense recognized on fair value hedges
|
|
$—
|
|
|
|
($9
|
)
|
|
|
($9
|
)
|
|
|
|
|
|
|
||||||
Loss on cash flow hedging relationships:
|
|
|
|
|
|
||||||
Interest rate contracts:
|
|
|
|
|
|
||||||
Amount of pre-tax loss reclassified from AOCI into income
|
|
($39
|
)
|
2
|
|
$—
|
|
|
|
($39
|
)
|
Net expense recognized on cash flow hedges
|
|
($39
|
)
|
|
|
$—
|
|
|
|
($39
|
)
|
|
|
|
|
|
|
||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
||||||
Interest income/(expense), including the effects of fair value and cash flow hedges
|
|
$1,398
|
|
|
|
($74
|
)
|
|
|
$1,324
|
|
|
|
|
|
|
|
||||||
Gain/(loss) on fair value hedging relationships:
|
|
|
|
|
|
||||||
Interest rate contracts:
|
|
|
|
|
|
||||||
Amounts related to interest settlements on derivatives
|
|
$—
|
|
|
|
$3
|
|
|
|
$3
|
|
Recognized on derivatives
|
—
|
|
|
(72
|
)
|
|
(72
|
)
|
|||
Recognized on hedged items
|
—
|
|
|
69
|
|
1
|
69
|
|
|||
Net income/(expense) recognized on fair value hedges
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
|
|
|
|
||||||
Loss on cash flow hedging relationships:
|
|
|
|
|
|
||||||
Interest rate contracts:
|
|
|
|
|
|
||||||
Amount of pre-tax loss reclassified from AOCI into income
|
|
($1
|
)
|
2
|
|
$—
|
|
|
|
($1
|
)
|
Net expense recognized on cash flow hedges
|
|
($1
|
)
|
|
|
$—
|
|
|
|
($1
|
)
|
|
|
|
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Liabilities
|
||||||||
(Dollars in millions)
|
Carrying Amount of Hedged Liabilities
|
|
Hedged Items Currently Designated
|
|
Hedged Items No Longer Designated
|
||||||
March 31, 2019
|
|
|
|
|
|
||||||
Long-term debt
|
|
$9,233
|
|
|
|
$54
|
|
|
|
($114
|
)
|
|
|
|
|
|
|
||||||
December 31, 2018
|
|
|
|
|
|
||||||
Long-term debt
|
|
$8,411
|
|
|
|
($10
|
)
|
|
|
($120
|
)
|
Brokered time deposits
|
29
|
|
|
—
|
|
|
—
|
|
•
|
Residential MSRs. The Company hedges these instruments with a combination of interest rate derivatives, including forward and option contracts, futures, and forward rate agreements.
|
•
|
Residential mortgage IRLCs and 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, 2019
|
||||||||||||||||||
|
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
|
|
$258
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$258
|
|
Federal agency securities
|
—
|
|
|
281
|
|
|
—
|
|
|
—
|
|
|
281
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|||||
MBS - agency
|
—
|
|
|
814
|
|
|
—
|
|
|
—
|
|
|
814
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
889
|
|
|
—
|
|
|
—
|
|
|
889
|
|
|||||
CP
|
—
|
|
|
283
|
|
|
—
|
|
|
—
|
|
|
283
|
|
|||||
Equity securities
|
71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|||||
Derivative instruments
|
384
|
|
|
2,721
|
|
|
23
|
|
|
(2,100
|
)
|
|
1,028
|
|
|||||
Trading loans 2
|
—
|
|
|
2,602
|
|
|
—
|
|
|
—
|
|
|
2,602
|
|
|||||
Total trading assets and derivative instruments
|
713
|
|
|
7,623
|
|
|
23
|
|
|
(2,100
|
)
|
|
6,259
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
4,259
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,259
|
|
|||||
Federal agency securities
|
—
|
|
|
142
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
593
|
|
|
—
|
|
|
—
|
|
|
593
|
|
|||||
MBS - agency residential
|
—
|
|
|
23,210
|
|
|
—
|
|
|
—
|
|
|
23,210
|
|
|||||
MBS - agency commercial
|
—
|
|
|
2,624
|
|
|
—
|
|
|
—
|
|
|
2,624
|
|
|||||
MBS - non-agency commercial
|
—
|
|
|
1,012
|
|
|
—
|
|
|
—
|
|
|
1,012
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Total securities AFS
|
4,259
|
|
|
27,594
|
|
|
—
|
|
|
—
|
|
|
31,853
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LHFS
|
—
|
|
|
1,059
|
|
|
—
|
|
|
—
|
|
|
1,059
|
|
|||||
LHFI
|
—
|
|
|
—
|
|
|
134
|
|
|
—
|
|
|
134
|
|
|||||
Residential MSRs
|
—
|
|
|
—
|
|
|
1,883
|
|
|
—
|
|
|
1,883
|
|
|||||
Other assets
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading liabilities and derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
873
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
873
|
|
|||||
MBS - agency
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
456
|
|
|
—
|
|
|
—
|
|
|
456
|
|
|||||
Equity securities
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Derivative instruments
|
124
|
|
|
2,673
|
|
|
7
|
|
|
(2,540
|
)
|
|
264
|
|
|||||
Total trading liabilities and derivative instruments
|
1,010
|
|
|
3,132
|
|
|
7
|
|
|
(2,540
|
)
|
|
1,609
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Brokered time deposits
|
—
|
|
|
473
|
|
|
—
|
|
|
—
|
|
|
473
|
|
|||||
Long-term debt
|
—
|
|
|
296
|
|
|
—
|
|
|
—
|
|
|
296
|
|
|
December 31, 2018
|
||||||||||||||||||
|
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
|
|
$262
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$262
|
|
Federal agency securities
|
—
|
|
|
188
|
|
|
—
|
|
|
—
|
|
|
188
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|||||
MBS - agency
|
—
|
|
|
860
|
|
|
—
|
|
|
—
|
|
|
860
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
700
|
|
|
—
|
|
|
—
|
|
|
700
|
|
|||||
CP
|
—
|
|
|
190
|
|
|
—
|
|
|
—
|
|
|
190
|
|
|||||
Equity securities
|
73
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|||||
Derivative instruments
|
186
|
|
|
2,425
|
|
|
20
|
|
|
(1,992
|
)
|
|
639
|
|
|||||
Trading loans 2
|
—
|
|
|
2,540
|
|
|
—
|
|
|
—
|
|
|
2,540
|
|
|||||
Total trading assets and derivative instruments
|
521
|
|
|
6,957
|
|
|
20
|
|
|
(1,992
|
)
|
|
5,506
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
4,211
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,211
|
|
|||||
Federal agency securities
|
—
|
|
|
221
|
|
|
—
|
|
|
—
|
|
|
221
|
|
|||||
U.S. states and political subdivisions
|
—
|
|
|
589
|
|
|
—
|
|
|
—
|
|
|
589
|
|
|||||
MBS - agency residential
|
—
|
|
|
22,864
|
|
|
—
|
|
|
—
|
|
|
22,864
|
|
|||||
MBS - agency commercial
|
—
|
|
|
2,627
|
|
|
—
|
|
|
—
|
|
|
2,627
|
|
|||||
MBS - non-agency commercial
|
—
|
|
|
916
|
|
|
—
|
|
|
—
|
|
|
916
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||
Total securities AFS
|
4,211
|
|
|
27,231
|
|
|
—
|
|
|
—
|
|
|
31,442
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LHFS
|
—
|
|
|
1,178
|
|
|
—
|
|
|
—
|
|
|
1,178
|
|
|||||
LHFI
|
—
|
|
|
—
|
|
|
163
|
|
|
—
|
|
|
163
|
|
|||||
Residential MSRs
|
—
|
|
|
—
|
|
|
1,983
|
|
|
—
|
|
|
1,983
|
|
|||||
Other assets
|
95
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading liabilities and derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
801
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
801
|
|
|||||
MBS - agency
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Corporate and other debt securities
|
—
|
|
|
385
|
|
|
—
|
|
|
—
|
|
|
385
|
|
|||||
Equity securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Derivative instruments
|
119
|
|
|
2,590
|
|
|
7
|
|
|
(2,306
|
)
|
|
410
|
|
|||||
Total trading liabilities and derivative instruments
|
925
|
|
|
2,978
|
|
|
7
|
|
|
(2,306
|
)
|
|
1,604
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Brokered time deposits
|
—
|
|
|
403
|
|
|
—
|
|
|
—
|
|
|
403
|
|
|||||
Long-term debt
|
—
|
|
|
289
|
|
|
—
|
|
|
—
|
|
|
289
|
|
(Dollars in millions)
|
Fair Value at
March 31, 2019
|
|
Aggregate UPB at
March 31, 2019
|
|
Fair Value
Over/(Under)
Unpaid Principal
|
||||||
Assets:
|
|
|
|
|
|
||||||
Trading loans
|
|
$2,602
|
|
|
|
$2,540
|
|
|
|
$62
|
|
LHFS:
|
|
|
|
|
|
||||||
Accruing
|
1,059
|
|
|
1,024
|
|
|
35
|
|
|||
LHFI:
|
|
|
|
|
|
||||||
Accruing
|
130
|
|
|
132
|
|
|
(2
|
)
|
|||
Nonaccrual
|
4
|
|
|
5
|
|
|
(1
|
)
|
|||
Liabilities:
|
|
|
|
|
|
||||||
Brokered time deposits
|
473
|
|
|
475
|
|
|
(2
|
)
|
|||
Long-term debt
|
296
|
|
|
292
|
|
|
4
|
|
|||
|
|
|
|
|
|
||||||
(Dollars in millions)
|
Fair Value at
December 31, 2018
|
|
Aggregate UPB at
December 31, 2018
|
|
Fair Value
Over/(Under)
Unpaid Principal
|
||||||
Assets:
|
|
|
|
|
|
||||||
Trading loans
|
|
$2,540
|
|
|
|
$2,526
|
|
|
|
$14
|
|
LHFS:
|
|
|
|
|
|
||||||
Accruing
|
1,178
|
|
|
1,128
|
|
|
50
|
|
|||
LHFI:
|
|
|
|
|
|
||||||
Accruing
|
158
|
|
|
163
|
|
|
(5
|
)
|
|||
Nonaccrual
|
5
|
|
|
6
|
|
|
(1
|
)
|
|||
Liabilities:
|
|
|
|
|
|
||||||
Brokered time deposits
|
403
|
|
|
403
|
|
|
—
|
|
|||
Long-term debt
|
289
|
|
|
286
|
|
|
3
|
|
|
Fair Value Gain/(Loss) for the Three Months Ended
March 31, 2019 for Items Measured at Fair Value
Pursuant to Election of the FVO
|
||||||||||||||
(Dollars in millions)
|
Trading
Income
|
|
Mortgage
Related Income 1 |
|
Other
Noninterest
Income
|
|
Total
Changes in
Fair Values
Included in
Earnings 2
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Trading loans 3
|
|
$7
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$7
|
|
LHFS 4
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||
LHFI
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Residential MSRs
|
—
|
|
|
(160
|
)
|
|
—
|
|
|
(160
|
)
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Brokered time deposits
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
||||
Long-term debt
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
Fair Value Gain/(Loss) for the Three Months Ended
March 31, 2018 for Items Measured at Fair Value
Pursuant to Election of the FVO
|
||||||||||||||
(Dollars in millions)
|
Trading
Income |
|
Mortgage
Related Income 1 |
|
Other
Noninterest Income |
|
Total
Changes in Fair Values Included in Earnings 2 |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Trading loans 3
|
|
$2
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$2
|
|
LHFS 4
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
||||
LHFI
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||
Residential MSRs
|
—
|
|
|
59
|
|
|
—
|
|
|
59
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Brokered time deposits
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||
Long-term debt
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
Level 3 Significant Unobservable Input Assumptions
|
||||||||
(Dollars in millions)
|
Fair value
March 31, 2019
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
(Weighted Average) 1
|
||
Assets
|
|
|
|
|
|
|
|
||
Trading assets and derivative instruments:
|
|
|
|
|
|
|
|||
Derivative instruments, net 2
|
|
$16
|
|
|
Internal model
|
|
Pull through rate
|
|
37-100% (81%)
|
|
MSR value
|
|
21-160 bps (112 bps)
|
||||||
LHFI
|
130
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
62-250 bps (174 bps)
|
|
Conditional prepayment rate
|
7-28 CPR (15 CPR)
|
||||||||
Conditional default rate
|
0-1 CDR (0.5 CDR)
|
||||||||
4
|
|
Collateral based pricing
|
Appraised value
|
NM 3
|
|||||
Residential MSRs
|
1,883
|
|
|
Monte Carlo/Discounted cash flow
|
|
Conditional prepayment rate
|
|
6-30 CPR (13 CPR)
|
|
|
Option adjusted spread
|
|
0-118% (2%)
|
|
Level 3 Significant Unobservable Input Assumptions
|
||||||||
(Dollars in millions)
|
Fair value
December 31, 2018
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
(Weighted Average) 1
|
||
Assets
|
|
|
|
|
|
|
|
||
Trading assets and derivative instruments:
|
|
|
|
|
|
|
|||
Derivative instruments, net 2
|
|
$13
|
|
|
Internal model
|
|
Pull through rate
|
|
41-100% (81%)
|
|
MSR value
|
|
11-165 bps (108 bps)
|
||||||
LHFI
|
158
|
|
|
Monte Carlo/Discounted cash flow
|
|
Option adjusted spread
|
|
0-250 bps (164 bps)
|
|
|
Conditional prepayment rate
|
|
7-22 CPR (12 CPR)
|
||||||
|
Conditional default rate
|
|
0-1 CDR (0.6 CDR)
|
||||||
5
|
|
|
Collateral based pricing
|
|
Appraised value
|
|
NM 3
|
||
Residential MSRs
|
1,983
|
|
|
Monte Carlo/Discounted cash flow
|
|
Conditional prepayment rate
|
|
6-30 CPR (13 CPR)
|
|
|
Option adjusted spread
|
|
0-116% (2%)
|
|
Fair Value Measurements
Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Beginning
Balance January 1, 2019 |
|
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, 2019 |
||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Derivative instruments, net
|
|
$13
|
|
|
|
$35
|
|
1
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
($1
|
)
|
|
|
($31
|
)
|
2
|
|
$—
|
|
|
|
$—
|
|
|
|
$16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
LHFI
|
163
|
|
|
2
|
|
3
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
1
|
|
|
(25
|
)
|
|
134
|
|
|
Fair Value Measurements
Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Beginning
Balance January 1, 2018 |
|
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, 2018 |
||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Derivative instruments, net
|
|
$—
|
|
|
|
($6
|
)
|
1
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$1
|
|
|
|
$6
|
|
2
|
|
$—
|
|
|
|
$—
|
|
|
|
$1
|
|
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
MBS - non-agency residential
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(57
|
)
|
|
—
|
|
||||||||||
ABS
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
||||||||||
Corporate and other debt securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
||||||||||
Total securities AFS
|
72
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(69
|
)
|
|
—
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
LHFI
|
196
|
|
|
(2
|
)
|
3
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
188
|
|
|
|
|
Fair Value Measurements
|
|
Losses for the
Three Months Ended March 31, 2019 |
||||||||||||||
(Dollars in millions)
|
March 31, 2019
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||
LHFS
|
|
$74
|
|
|
|
$—
|
|
|
|
$10
|
|
|
|
$64
|
|
|
|
$—
|
|
LHFI
|
66
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|||||
OREO
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
(2
|
)
|
|||||
Other assets
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
(3
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Fair Value Measurements
|
|
(Losses)/Gains for the
Year Ended
December 31, 2018
|
||||||||||||||
(Dollars in millions)
|
December 31, 2018
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||
LHFS
|
|
$47
|
|
|
|
$—
|
|
|
|
$47
|
|
|
|
$—
|
|
|
|
($1
|
)
|
LHFI
|
63
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|||||
OREO
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
(4
|
)
|
|||||
Other assets
|
67
|
|
|
—
|
|
|
47
|
|
|
20
|
|
|
24
|
|
|
|
|
March 31, 2019
|
|
Fair Value Measurements
|
||||||||||||||||
(Dollars in millions)
|
Measurement
Category
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
Amortized cost
|
|
|
$5,932
|
|
|
|
$5,932
|
|
|
|
$5,932
|
|
|
|
$—
|
|
|
|
$—
|
|
Trading assets and derivative instruments
|
Fair value
|
|
6,259
|
|
|
6,259
|
|
|
713
|
|
|
5,523
|
|
|
23
|
|
|||||
Securities AFS
|
Fair value
|
|
31,853
|
|
|
31,853
|
|
|
4,259
|
|
|
27,594
|
|
|
—
|
|
|||||
LHFS
|
Amortized cost
|
|
722
|
|
|
768
|
|
|
—
|
|
|
512
|
|
|
256
|
|
|||||
Fair value
|
|
1,059
|
|
|
1,059
|
|
|
—
|
|
|
1,059
|
|
|
—
|
|
||||||
LHFI, net
|
Amortized cost
|
|
153,456
|
|
|
153,039
|
|
|
—
|
|
|
—
|
|
|
153,039
|
|
|||||
Fair value
|
|
134
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
134
|
|
||||||
Other 1
|
Amortized cost
|
|
769
|
|
|
769
|
|
|
—
|
|
|
—
|
|
|
769
|
|
|||||
Fair value
|
|
85
|
|
|
85
|
|
|
85
|
|
|
—
|
|
|
—
|
|
||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer and other time deposits
|
Amortized cost
|
|
16,108
|
|
|
15,891
|
|
|
—
|
|
|
15,891
|
|
|
—
|
|
|||||
Brokered time deposits
|
Amortized cost
|
|
587
|
|
|
564
|
|
|
—
|
|
|
564
|
|
|
—
|
|
|||||
Fair value
|
|
473
|
|
|
473
|
|
|
—
|
|
|
473
|
|
|
—
|
|
||||||
Short-term borrowings
|
Amortized cost
|
|
10,390
|
|
|
10,390
|
|
|
—
|
|
|
10,390
|
|
|
—
|
|
|||||
Long-term debt
|
Amortized cost
|
|
17,099
|
|
|
17,244
|
|
|
—
|
|
|
15,538
|
|
|
1,706
|
|
|||||
Fair value
|
|
296
|
|
|
296
|
|
|
—
|
|
|
296
|
|
|
—
|
|
||||||
Trading liabilities and derivative instruments
|
Fair value
|
|
1,609
|
|
|
1,609
|
|
|
1,010
|
|
|
592
|
|
|
7
|
|
|
|
|
December 31, 2018
|
|
Fair Value Measurements
|
||||||||||||||||
(Dollars in millions)
|
Measurement
Category
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
Amortized cost
|
|
|
$7,495
|
|
|
|
$7,495
|
|
|
|
$7,495
|
|
|
|
$—
|
|
|
|
$—
|
|
Trading assets and derivative instruments
|
Fair value
|
|
5,506
|
|
|
5,506
|
|
|
521
|
|
|
4,965
|
|
|
20
|
|
|||||
Securities AFS
|
Fair value
|
|
31,442
|
|
|
31,442
|
|
|
4,211
|
|
|
27,231
|
|
|
—
|
|
|||||
LHFS
|
Amortized cost
|
|
290
|
|
|
291
|
|
|
—
|
|
|
261
|
|
|
30
|
|
|||||
Fair value
|
|
1,178
|
|
|
1,178
|
|
|
—
|
|
|
1,178
|
|
|
—
|
|
||||||
LHFI, net
|
Amortized cost
|
|
150,061
|
|
|
148,167
|
|
|
—
|
|
|
—
|
|
|
148,167
|
|
|||||
Fair value
|
|
163
|
|
|
163
|
|
|
—
|
|
|
—
|
|
|
163
|
|
||||||
Other 1
|
Amortized cost
|
|
630
|
|
|
630
|
|
|
—
|
|
|
—
|
|
|
630
|
|
|||||
Fair value
|
|
95
|
|
|
95
|
|
|
95
|
|
|
—
|
|
|
—
|
|
||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer and other time deposits
|
Amortized cost
|
|
15,355
|
|
|
15,106
|
|
|
—
|
|
|
15,106
|
|
|
—
|
|
|||||
Brokered time deposits
|
Amortized cost
|
|
642
|
|
|
615
|
|
|
—
|
|
|
615
|
|
|
—
|
|
|||||
Fair value
|
|
403
|
|
|
403
|
|
|
—
|
|
|
403
|
|
|
—
|
|
||||||
Short-term borrowings
|
Amortized cost
|
|
8,772
|
|
|
8,772
|
|
|
—
|
|
|
8,772
|
|
|
—
|
|
|||||
Long-term debt
|
Amortized cost
|
|
14,783
|
|
|
14,729
|
|
|
—
|
|
|
13,024
|
|
|
1,705
|
|
|||||
Fair value
|
|
289
|
|
|
289
|
|
|
—
|
|
|
289
|
|
|
—
|
|
||||||
Trading liabilities and derivative instruments
|
Fair value
|
|
1,604
|
|
|
1,604
|
|
|
925
|
|
|
672
|
|
|
7
|
|
•
|
Consumer Banking provides services to individual consumers and business banking clients through an extensive network of traditional and in-store branches, ATMs, online banking (www.suntrust.com), mobile banking, and by telephone (1-800-SUNTRUST). Financial products and services offered to consumers and small business clients include deposits and payments, loans, and various fee-based services. Consumer Banking also serves as an entry point for clients and provides services for other businesses.
|
•
|
Consumer Lending Solutions offers an array of lending products to individual consumers and business banking clients via the Company's Consumer Banking and PWM businesses, correspondent channels, the internet (www.suntrust.com and www.lightstream.com), telephone (1-800-SUNTRUST), as well as through various national offices and partnerships. Products offered include
|
•
|
PWM provides a full array of wealth management products and professional services to individual consumers and institutional clients, including loans, deposits, brokerage, professional investment advisory, and trust services to clients seeking active management of their financial resources. Institutional clients are served by the Institutional Investment Solutions business. Discount/online and full-service brokerage products are offered to individual clients through STIS. Investment advisory products and services are offered to clients by STAS, an SEC registered investment advisor. PWM also includes GFO Advisory Services, LLC, which provides family office solutions to clients and their families to help them manage and sustain wealth across multiple generations, including family meeting facilitation, consolidated reporting, expense management, specialty asset management, and business transition advice, as well as other wealth management disciplines.
|
•
|
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 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, technology, financial services, healthcare, industrials, and media and communications. Corporate Banking serves clients across diversified industry sectors based on size, complexity, and frequency of capital markets issuance. CIB also includes the Company's Asset Finance Group, which offers a full complement of asset-based financing solutions such as securitizations, asset-based lending, equipment financing, and structured real estate arrangements.
|
•
|
Commercial Banking offers an array of traditional banking products, including lending, cash management, and investment banking solutions via CIB, to commercial clients (generally clients with revenues between $5 million and $250 million), including not-for-profit organizations, governmental entities, healthcare and aging services, and auto dealer financing (floor plan inventory financing). Local teams deliver these solutions along with the Company's industry expertise to commercial clients to help them achieve smart growth.
|
•
|
Commercial Real Estate provides a range of credit and deposit services as well as fee-based product offerings on a regional delivery basis to privately held developers, operators, and investors in commercial real estate properties through its National Banking Division. Commercial Real Estate also provides multi-family agency lending and servicing, advisory, and commercial mortgage brokerage services via its Agency Lending division. Additionally, Commercial Real Estate 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. Real Estate Corporate and Investment Banking targets relationships with REITs and homebuilders, both publicly-traded and privately owned. The Investor Services Group offers loan administration, special servicing, valuation, and advisory services to third party clients.
|
•
|
Treasury & Payment Solutions provides business clients in the Wholesale segment with services required to manage their payments and receipts, combined with the ability to manage and optimize their deposits across all aspects of their business. Treasury & Payment Solutions operates all electronic and paper payment types, including card, wire transfer, ACH, check, and cash. It also provides clients the means to manage their accounts electronically online, both domestically and internationally.
|
•
|
Net interest income-FTE – is reconciled from Net interest income and is grossed-up on an FTE basis to make income from tax-exempt assets comparable to other taxable products. Segment results reflect matched maturity funds transfer pricing, which ascribes credits or charges based on the economic value or cost created by assets and liabilities of each segment. Differences between these credits and charges are captured as reconciling items.
|
•
|
Provision for credit losses – represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to each segment's quarterly change in the ALLL and unfunded commitments reserve balances.
|
•
|
Noninterest income – includes federal and state tax credits that are grossed-up on a pre-tax equivalent basis, related primarily to certain community development investments.
|
•
|
Provision for income taxes-FTE – is calculated using a blended income tax rate for each segment and includes reversals of the tax adjustments and credits described above. The difference between the calculated provision for income taxes at the segment level and the consolidated provision for income taxes is reported as reconciling items.
|
•
|
Operational costs – expenses are charged to segments based on an activity-based costing process, which also allocates residual expenses to the segments. Generally, recoveries of these costs are reported in Corporate Other.
|
•
|
Support and overhead costs – expenses not directly attributable to a specific segment are allocated based on various drivers (number of equivalent employees, number of PCs/laptops, net revenue, etc.). Recoveries for these allocations are reported in Corporate Other.
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
(Dollars in millions)
|
Consumer
|
|
Wholesale
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Average LHFI
|
|
$78,683
|
|
|
|
$75,488
|
|
|
|
$88
|
|
|
|
($1
|
)
|
|
|
$154,258
|
|
Average consumer and commercial deposits
|
112,245
|
|
|
47,850
|
|
|
259
|
|
|
(433
|
)
|
|
159,921
|
|
|||||
Average total assets
|
88,033
|
|
|
90,122
|
|
|
37,822
|
|
|
1,426
|
|
|
217,403
|
|
|||||
Average total liabilities
|
113,180
|
|
|
54,384
|
|
|
25,720
|
|
|
(347
|
)
|
|
192,937
|
|
|||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
24,466
|
|
|
24,466
|
|
|||||
Statements of Income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
$1,076
|
|
|
|
$546
|
|
|
|
($78
|
)
|
|
|
$—
|
|
|
|
$1,544
|
|
FTE adjustment
|
—
|
|
|
22
|
|
|
1
|
|
|
—
|
|
|
23
|
|
|||||
Net interest income-FTE 1
|
1,076
|
|
|
568
|
|
|
(77
|
)
|
|
—
|
|
|
1,567
|
|
|||||
Provision for credit losses 2
|
83
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
153
|
|
|||||
Net interest income after provision for credit losses-FTE
|
993
|
|
|
498
|
|
|
(77
|
)
|
|
—
|
|
|
1,414
|
|
|||||
Total noninterest income
|
446
|
|
|
364
|
|
|
19
|
|
|
(45
|
)
|
|
784
|
|
|||||
Total noninterest expense
|
1,017
|
|
|
462
|
|
|
14
|
|
|
(4
|
)
|
|
1,489
|
|
|||||
Income before provision for income taxes-FTE
|
422
|
|
|
400
|
|
|
(72
|
)
|
|
(41
|
)
|
|
709
|
|
|||||
Provision for income taxes-FTE 3
|
96
|
|
|
95
|
|
|
(24
|
)
|
|
(40
|
)
|
|
127
|
|
|||||
Net income including income attributable to noncontrolling interest
|
326
|
|
|
305
|
|
|
(48
|
)
|
|
(1
|
)
|
|
582
|
|
|||||
Less: Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Net income
|
|
$326
|
|
|
|
$305
|
|
|
|
($50
|
)
|
|
|
($1
|
)
|
|
|
$580
|
|
|
Three Months Ended March 31, 2018 1
|
||||||||||||||||||
(Dollars in millions)
|
Consumer
|
|
Wholesale
|
|
Corporate Other
|
|
Reconciling
Items |
|
Consolidated
|
||||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Average LHFI
|
|
$74,840
|
|
|
|
$68,000
|
|
|
|
$84
|
|
|
|
($4
|
)
|
|
|
$142,920
|
|
Average consumer and commercial deposits
|
109,469
|
|
|
49,687
|
|
|
197
|
|
|
(184
|
)
|
|
159,169
|
|
|||||
Average total assets
|
84,272
|
|
|
81,726
|
|
|
35,680
|
|
|
2,454
|
|
|
204,132
|
|
|||||
Average total liabilities
|
110,341
|
|
|
55,499
|
|
|
13,864
|
|
|
(177
|
)
|
|
179,527
|
|
|||||
Average total equity
|
—
|
|
|
—
|
|
|
—
|
|
|
24,605
|
|
|
24,605
|
|
|||||
Statements of Income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
$998
|
|
|
|
$514
|
|
|
|
($30
|
)
|
|
|
($41
|
)
|
|
|
$1,441
|
|
FTE adjustment
|
—
|
|
|
20
|
|
|
1
|
|
|
(1
|
)
|
|
20
|
|
|||||
Net interest income-FTE 2
|
998
|
|
|
534
|
|
|
(29
|
)
|
|
(42
|
)
|
|
1,461
|
|
|||||
Provision/(benefit) for credit losses 3
|
58
|
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
28
|
|
|||||
Net interest income after provision/(benefit) for credit losses-FTE
|
940
|
|
|
564
|
|
|
(29
|
)
|
|
(42
|
)
|
|
1,433
|
|
|||||
Total noninterest income
|
450
|
|
|
340
|
|
|
38
|
|
|
(32
|
)
|
|
796
|
|
|||||
Total noninterest expense
|
1,001
|
|
|
450
|
|
|
(29
|
)
|
|
(5
|
)
|
|
1,417
|
|
|||||
Income before provision for income taxes-FTE
|
389
|
|
|
454
|
|
|
38
|
|
|
(69
|
)
|
|
812
|
|
|||||
Provision for income taxes-FTE 4
|
87
|
|
|
107
|
|
|
16
|
|
|
(43
|
)
|
|
167
|
|
|||||
Net income including income attributable to noncontrolling interest
|
302
|
|
|
347
|
|
|
22
|
|
|
(26
|
)
|
|
645
|
|
|||||
Less: Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Net income
|
|
$302
|
|
|
|
$347
|
|
|
|
$20
|
|
|
|
($26
|
)
|
|
|
$643
|
|
1
|
During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.
|
2
|
Presented on a matched maturity funds transfer price basis for the segments.
|
(Dollars in millions)
|
Securities AFS
|
|
Derivative Instruments
|
|
Brokered Time Deposits
|
|
Long-Term Debt
|
|
Employee Benefit Plans
|
|
Total
|
||||||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
($357
|
)
|
|
|
($368
|
)
|
|
|
$1
|
|
|
|
($1
|
)
|
|
|
($695
|
)
|
|
|
($1,420
|
)
|
Net unrealized gains/(losses) arising during the period
|
377
|
|
|
46
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
421
|
|
||||||
Amounts reclassified to net income
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
33
|
|
||||||
Other comprehensive income/(loss), net of tax
|
377
|
|
|
76
|
|
|
(1
|
)
|
|
(1
|
)
|
|
3
|
|
|
454
|
|
||||||
Balance, end of period
|
|
$20
|
|
|
|
($292
|
)
|
|
|
$—
|
|
|
|
($2
|
)
|
|
|
($692
|
)
|
|
|
($966
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
($1
|
)
|
|
|
($244
|
)
|
|
|
($1
|
)
|
|
|
($4
|
)
|
|
|
($570
|
)
|
|
|
($820
|
)
|
Cumulative effect adjustment related to ASU adoption 1
|
30
|
|
|
(56
|
)
|
|
—
|
|
|
(1
|
)
|
|
(127
|
)
|
|
(154
|
)
|
||||||
Net unrealized (losses)/gains arising during the period
|
(424
|
)
|
|
(125
|
)
|
|
1
|
|
|
2
|
|
|
(5
|
)
|
|
(551
|
)
|
||||||
Amounts reclassified to net income
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||||
Other comprehensive (loss)/income, net of tax
|
(425
|
)
|
|
(124
|
)
|
|
1
|
|
|
2
|
|
|
(2
|
)
|
|
(548
|
)
|
||||||
Balance, end of period
|
|
($396
|
)
|
|
|
($424
|
)
|
|
|
$—
|
|
|
|
($3
|
)
|
|
|
($699
|
)
|
|
|
($1,522
|
)
|
1
|
Related to the Company’s early adoption of ASU 2018-02 on January 1, 2018. See Note 1, “Significant Accounting Policies,” to the Company's 2018 Annual Report on Form 10-K for additional information.
|
(Dollars in millions)
|
|
Three Months Ended March 31
|
Impacted Line Item in the Consolidated Statements of Income
|
|||||||
Details About AOCI Components
|
|
2019
|
|
2018
|
|
|||||
Securities AFS:
|
|
|
|
|
|
|
||||
Net realized (gains)/losses on securities AFS
|
|
|
$—
|
|
|
|
($1
|
)
|
|
Net securities gains/(losses)
|
Tax effect
|
|
—
|
|
|
—
|
|
|
Provision for income taxes
|
||
|
|
—
|
|
|
(1
|
)
|
|
|
||
Derivative Instruments:
|
|
|
|
|
|
|
||||
Net realized losses on cash flow hedges
|
|
39
|
|
|
1
|
|
|
Interest and fees on loans held for investment
|
||
Tax effect
|
|
(9
|
)
|
|
—
|
|
|
Provision for income taxes
|
||
|
|
30
|
|
|
1
|
|
|
|
||
Employee Benefit Plans:
|
|
|
|
|
|
|
||||
Amortization of prior service credit
|
|
(2
|
)
|
|
(2
|
)
|
|
Employee benefits
|
||
Amortization of actuarial loss
|
|
6
|
|
|
6
|
|
|
Employee benefits
|
||
|
|
4
|
|
|
4
|
|
|
|
||
Tax effect
|
|
(1
|
)
|
|
(1
|
)
|
|
Provision for income taxes
|
||
|
|
3
|
|
|
3
|
|
|
|
||
|
|
|
|
|
|
|
||||
Total reclassifications from AOCI to net income
|
|
|
$33
|
|
|
|
$3
|
|
|
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION
|
NONINTEREST INCOME
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Components of Noninterest Income
|
|
|
|
|
Table 2
|
|
||||
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
% Change
|
|||||
Service charges on deposit accounts
|
|
$137
|
|
|
|
$146
|
|
|
(6
|
)%
|
Other charges and fees 1
|
87
|
|
|
85
|
|
|
2
|
|
||
Card fees
|
82
|
|
|
81
|
|
|
1
|
|
||
Total client transaction-related fee income
|
306
|
|
|
312
|
|
|
(2
|
)
|
||
|
|
|
|
|
|
|||||
Investment banking income 1
|
130
|
|
|
133
|
|
|
(2
|
)
|
||
Trading income
|
60
|
|
|
42
|
|
|
43
|
|
||
|
|
|
|
|
|
|||||
Mortgage servicing related income
|
62
|
|
|
54
|
|
|
15
|
|
||
Mortgage production related income
|
38
|
|
|
36
|
|
|
6
|
|
||
Mortgage related income
|
100
|
|
|
90
|
|
|
11
|
|
||
|
|
|
|
|
|
|||||
Trust and investment management income
|
71
|
|
|
75
|
|
|
(5
|
)
|
||
Retail investment services
|
69
|
|
|
72
|
|
|
(4
|
)
|
||
Commercial real estate related income
|
24
|
|
|
23
|
|
|
4
|
|
||
Net securities gains/(losses)
|
—
|
|
|
1
|
|
|
(100
|
)
|
||
Other noninterest income
|
24
|
|
|
48
|
|
|
(50
|
)
|
||
Total noninterest income
|
|
$784
|
|
|
|
$796
|
|
|
(2
|
)%
|
NONINTEREST EXPENSE
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Components of Noninterest Expense
|
|
|
|
|
Table 3
|
|
||||
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
% Change 1
|
|||||
Employee compensation
|
|
$676
|
|
|
|
$707
|
|
|
(4
|
)%
|
Employee benefits
|
148
|
|
|
146
|
|
|
1
|
|
||
Total personnel expenses
|
824
|
|
|
853
|
|
|
(3
|
)
|
||
|
|
|
|
|
|
|
||||
Outside processing and software
|
238
|
|
|
206
|
|
|
16
|
|
||
Net occupancy expense
|
102
|
|
|
94
|
|
|
9
|
|
||
Merger-related costs
|
45
|
|
|
—
|
|
|
NM
|
|
||
Equipment expense
|
42
|
|
|
40
|
|
|
5
|
|
||
Marketing and customer development
|
41
|
|
|
41
|
|
|
—
|
|
||
Operating losses
|
22
|
|
|
6
|
|
|
NM
|
|
||
Regulatory assessments
|
19
|
|
|
41
|
|
|
(54
|
)
|
||
Amortization
|
15
|
|
|
15
|
|
|
—
|
|
||
Other noninterest expense
|
141
|
|
|
121
|
|
|
17
|
|
||
Total noninterest expense
|
|
$1,489
|
|
|
|
$1,417
|
|
|
5
|
%
|
1
|
"NM" - Not meaningful. Those changes over 100 percent were not considered to be meaningful.
|
Loan Portfolio by Types of Loans
|
Table 4
|
|
||||||||
|
|
|
|
|
|
|||||
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
% Change
|
|||||
Commercial loans:
|
|
|
|
|
|
|||||
C&I 1
|
|
$73,278
|
|
|
|
$71,137
|
|
|
3
|
%
|
CRE
|
7,889
|
|
|
7,265
|
|
|
9
|
|
||
Commercial construction
|
2,562
|
|
|
2,538
|
|
|
1
|
|
||
Total commercial LHFI
|
83,729
|
|
|
80,940
|
|
|
3
|
|
||
Consumer loans:
|
|
|
|
|
|
|||||
Residential mortgages - guaranteed
|
467
|
|
|
459
|
|
|
2
|
|
||
Residential mortgages - nonguaranteed 2
|
28,461
|
|
|
28,836
|
|
|
(1
|
)
|
||
Residential home equity products
|
9,167
|
|
|
9,468
|
|
|
(3
|
)
|
||
Residential construction
|
167
|
|
|
184
|
|
|
(9
|
)
|
||
Guaranteed student
|
7,308
|
|
|
7,229
|
|
|
1
|
|
||
Other direct
|
11,029
|
|
|
10,615
|
|
|
4
|
|
||
Indirect
|
13,268
|
|
|
12,419
|
|
|
7
|
|
||
Credit cards
|
1,637
|
|
|
1,689
|
|
|
(3
|
)
|
||
Total consumer LHFI
|
71,504
|
|
|
70,899
|
|
|
1
|
|
||
LHFI
|
|
$155,233
|
|
|
|
$151,839
|
|
|
2
|
%
|
LHFS 3
|
|
$1,781
|
|
|
|
$1,468
|
|
|
21
|
%
|
LHFI Portfolio by Geography
|
|
|
|
|
|
|
|
|
|
Table 5
|
|
|||||||||
|
March 31, 2019
|
|||||||||||||||||||
|
Commercial LHFI
|
|
Consumer LHFI
|
|
Total LHFI
|
|||||||||||||||
(Dollars in millions)
|
Balance
|
|
% of Total Commercial
|
|
Balance
|
|
% of Total Consumer
|
|
Balance
|
|
% of Total LHFI
|
|||||||||
South region:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Florida
|
|
$13,517
|
|
|
16
|
%
|
|
|
$13,289
|
|
|
19
|
%
|
|
|
$26,806
|
|
|
17
|
%
|
Georgia
|
11,022
|
|
|
13
|
|
|
8,473
|
|
|
12
|
|
|
19,495
|
|
|
13
|
|
|||
Virginia
|
6,412
|
|
|
8
|
|
|
7,570
|
|
|
11
|
|
|
13,982
|
|
|
9
|
|
|||
Maryland
|
4,672
|
|
|
6
|
|
|
6,216
|
|
|
9
|
|
|
10,888
|
|
|
7
|
|
|||
North Carolina
|
4,805
|
|
|
6
|
|
|
5,449
|
|
|
8
|
|
|
10,254
|
|
|
7
|
|
|||
Texas
|
5,018
|
|
|
6
|
|
|
5,031
|
|
|
7
|
|
|
10,049
|
|
|
6
|
|
|||
Tennessee
|
4,167
|
|
|
5
|
|
|
2,933
|
|
|
4
|
|
|
7,100
|
|
|
5
|
|
|||
South Carolina
|
1,704
|
|
|
2
|
|
|
2,420
|
|
|
3
|
|
|
4,124
|
|
|
3
|
|
|||
District of Columbia
|
1,975
|
|
|
2
|
|
|
1,112
|
|
|
2
|
|
|
3,087
|
|
|
2
|
|
|||
Other Southern states
|
2,342
|
|
|
3
|
|
|
2,695
|
|
|
4
|
|
|
5,037
|
|
|
3
|
|
|||
Total South region
|
55,634
|
|
|
66
|
|
|
55,188
|
|
|
77
|
|
|
110,822
|
|
|
71
|
|
|||
Northeast region:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
New York
|
5,299
|
|
|
6
|
|
|
1,302
|
|
|
2
|
|
|
6,601
|
|
|
4
|
|
|||
Pennsylvania
|
1,750
|
|
|
2
|
|
|
1,343
|
|
|
2
|
|
|
3,093
|
|
|
2
|
|
|||
New Jersey
|
1,394
|
|
|
2
|
|
|
756
|
|
|
1
|
|
|
2,150
|
|
|
1
|
|
|||
Other Northeastern states
|
3,090
|
|
|
4
|
|
|
1,006
|
|
|
1
|
|
|
4,096
|
|
|
3
|
|
|||
Total Northeast region
|
11,533
|
|
|
14
|
|
|
4,407
|
|
|
6
|
|
|
15,940
|
|
|
10
|
|
|||
West region:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
California
|
5,647
|
|
|
7
|
|
|
3,680
|
|
|
5
|
|
|
9,327
|
|
|
6
|
|
|||
Other Western states
|
2,767
|
|
|
3
|
|
|
2,936
|
|
|
4
|
|
|
5,703
|
|
|
4
|
|
|||
Total West region
|
8,414
|
|
|
10
|
|
|
6,616
|
|
|
9
|
|
|
15,030
|
|
|
10
|
|
|||
Midwest region:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Illinois
|
1,956
|
|
|
2
|
|
|
1,155
|
|
|
2
|
|
|
3,111
|
|
|
2
|
|
|||
Ohio
|
1,017
|
|
|
1
|
|
|
803
|
|
|
1
|
|
|
1,820
|
|
|
1
|
|
|||
Missouri
|
1,032
|
|
|
1
|
|
|
506
|
|
|
1
|
|
|
1,538
|
|
|
1
|
|
|||
Other Midwestern states
|
2,254
|
|
|
3
|
|
|
2,745
|
|
|
4
|
|
|
4,999
|
|
|
3
|
|
|||
Total Midwest region
|
6,259
|
|
|
7
|
|
|
5,209
|
|
|
7
|
|
|
11,468
|
|
|
7
|
|
|||
Foreign loans
|
1,889
|
|
|
2
|
|
|
84
|
|
|
—
|
|
|
1,973
|
|
|
1
|
|
|||
Total
|
|
$83,729
|
|
|
100
|
%
|
|
|
$71,504
|
|
|
100
|
%
|
|
|
$155,233
|
|
|
100
|
%
|
LHFI Portfolio by Geography (continued)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2018
|
|||||||||||||||||||
|
Commercial LHFI
|
|
Consumer LHFI
|
|
Total LHFI
|
|||||||||||||||
(Dollars in millions)
|
Balance
|
|
% of Total Commercial
|
|
Balance
|
|
% of Total Consumer
|
|
Balance
|
|
% of Total LHFI
|
|||||||||
South region:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Florida
|
|
$13,442
|
|
|
17
|
%
|
|
|
$13,358
|
|
|
19
|
%
|
|
|
$26,800
|
|
|
18
|
%
|
Georgia
|
10,689
|
|
|
13
|
|
|
8,519
|
|
|
12
|
|
|
19,208
|
|
|
13
|
|
|||
Virginia
|
6,481
|
|
|
8
|
|
|
7,529
|
|
|
11
|
|
|
14,010
|
|
|
9
|
|
|||
Maryland
|
4,591
|
|
|
6
|
|
|
6,236
|
|
|
9
|
|
|
10,827
|
|
|
7
|
|
|||
North Carolina
|
4,418
|
|
|
5
|
|
|
5,424
|
|
|
8
|
|
|
9,842
|
|
|
6
|
|
|||
Texas
|
4,420
|
|
|
5
|
|
|
4,782
|
|
|
7
|
|
|
9,202
|
|
|
6
|
|
|||
Tennessee
|
4,244
|
|
|
5
|
|
|
2,962
|
|
|
4
|
|
|
7,206
|
|
|
5
|
|
|||
South Carolina
|
1,522
|
|
|
2
|
|
|
2,418
|
|
|
3
|
|
|
3,940
|
|
|
3
|
|
|||
District of Columbia
|
1,746
|
|
|
2
|
|
|
1,094
|
|
|
2
|
|
|
2,840
|
|
|
2
|
|
|||
Other Southern states
|
2,325
|
|
|
3
|
|
|
2,619
|
|
|
4
|
|
|
4,944
|
|
|
3
|
|
|||
Total South region
|
53,878
|
|
|
67
|
|
|
54,941
|
|
|
77
|
|
|
108,819
|
|
|
72
|
|
|||
Northeast region:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
New York
|
5,033
|
|
|
6
|
|
|
1,278
|
|
|
2
|
|
|
6,311
|
|
|
4
|
|
|||
Pennsylvania
|
1,942
|
|
|
2
|
|
|
1,312
|
|
|
2
|
|
|
3,254
|
|
|
2
|
|
|||
New Jersey
|
1,426
|
|
|
2
|
|
|
755
|
|
|
1
|
|
|
2,181
|
|
|
1
|
|
|||
Other Northeastern states
|
2,844
|
|
|
4
|
|
|
985
|
|
|
1
|
|
|
3,829
|
|
|
3
|
|
|||
Total Northeast region
|
11,245
|
|
|
14
|
|
|
4,330
|
|
|
6
|
|
|
15,575
|
|
|
10
|
|
|||
West region:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
California
|
5,299
|
|
|
7
|
|
|
3,653
|
|
|
5
|
|
|
8,952
|
|
|
6
|
|
|||
Other Western states
|
2,705
|
|
|
3
|
|
|
2,813
|
|
|
4
|
|
|
5,518
|
|
|
4
|
|
|||
Total West region
|
8,004
|
|
|
10
|
|
|
6,466
|
|
|
9
|
|
|
14,470
|
|
|
10
|
|
|||
Midwest region:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Illinois
|
1,947
|
|
|
2
|
|
|
1,131
|
|
|
2
|
|
|
3,078
|
|
|
2
|
|
|||
Ohio
|
985
|
|
|
1
|
|
|
795
|
|
|
1
|
|
|
1,780
|
|
|
1
|
|
|||
Missouri
|
979
|
|
|
1
|
|
|
491
|
|
|
1
|
|
|
1,470
|
|
|
1
|
|
|||
Other Midwestern states
|
2,183
|
|
|
3
|
|
|
2,663
|
|
|
4
|
|
|
4,846
|
|
|
3
|
|
|||
Total Midwest region
|
6,094
|
|
|
8
|
|
|
5,080
|
|
|
7
|
|
|
11,174
|
|
|
7
|
|
|||
Foreign loans
|
1,719
|
|
|
2
|
|
|
82
|
|
|
—
|
|
|
1,801
|
|
|
1
|
|
|||
Total
|
|
$80,940
|
|
|
100
|
%
|
|
|
$70,899
|
|
|
100
|
%
|
|
|
$151,839
|
|
|
100
|
%
|
Summary of Credit Losses Experience
|
|
Table 6
|
|
|||||||
|
|
|
|
|||||||
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
% Change 5
|
|||||
Allowance for Credit Losses
|
|
|
|
|
|
|||||
Balance - beginning of period
|
|
$1,684
|
|
|
|
$1,814
|
|
|
(7
|
)%
|
Benefit for unfunded commitments
|
(3
|
)
|
|
(10
|
)
|
|
(70
|
)
|
||
Provision/(benefit) for loan losses:
|
|
|
|
|
|
|||||
Commercial LHFI
|
84
|
|
|
(16
|
)
|
|
NM
|
|
||
Consumer LHFI
|
72
|
|
|
54
|
|
|
33
|
|
||
Total provision for loan losses
|
156
|
|
|
38
|
|
|
NM
|
|
||
Charge-offs:
|
|
|
|
|
|
|||||
Commercial LHFI
|
(33
|
)
|
|
(23
|
)
|
|
43
|
|
||
Consumer LHFI
|
(92
|
)
|
|
(83
|
)
|
|
11
|
|
||
Total charge-offs
|
(125
|
)
|
|
(106
|
)
|
|
18
|
|
||
Recoveries:
|
|
|
|
|
|
|||||
Commercial LHFI
|
5
|
|
|
6
|
|
|
(17
|
)
|
||
Consumer LHFI
|
23
|
|
|
21
|
|
|
10
|
|
||
Total recoveries
|
28
|
|
|
27
|
|
|
4
|
|
||
Net charge-offs
|
(97
|
)
|
|
(79
|
)
|
|
23
|
|
||
Other 1
|
(31
|
)
|
|
—
|
|
|
NM
|
|
||
Balance - end of period
|
|
$1,709
|
|
|
|
$1,763
|
|
|
(3
|
)%
|
Components:
|
|
|
|
|
|
|||||
ALLL
|
|
$1,643
|
|
|
|
$1,694
|
|
|
(3
|
)%
|
Unfunded commitments reserve 2
|
66
|
|
|
69
|
|
|
(4
|
)
|
||
Allowance for credit losses
|
|
$1,709
|
|
|
|
$1,763
|
|
|
(3
|
)%
|
Average LHFI
|
|
$154,258
|
|
|
|
$142,920
|
|
|
8
|
%
|
Period-end LHFI outstanding
|
155,233
|
|
|
142,618
|
|
|
9
|
|
||
Ratios:
|
|
|
|
|
|
|||||
ALLL to period-end LHFI 3
|
1.06
|
%
|
|
1.19
|
%
|
|
(11
|
)%
|
||
ALLL to NPLs 4
|
3.17x
|
|
|
2.40x
|
|
|
32
|
|
||
Net charge-offs to total average LHFI
|
0.26
|
%
|
|
0.22
|
%
|
|
18
|
|
ALLL by Loan Segment
|
|
Table 7
|
|
||||
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
ALLL:
|
|
|
|
||||
Commercial LHFI
|
|
$1,136
|
|
|
|
$1,080
|
|
Consumer LHFI
|
507
|
|
|
535
|
|
||
Total
|
|
$1,643
|
|
|
|
$1,615
|
|
Segment ALLL as a % of total ALLL:
|
|||||||
Commercial LHFI
|
69
|
%
|
|
67
|
%
|
||
Consumer LHFI
|
31
|
|
|
33
|
|
||
Total
|
100
|
%
|
|
100
|
%
|
||
Segment LHFI as a % of total LHFI:
|
|||||||
Commercial LHFI
|
54
|
%
|
|
53
|
%
|
||
Consumer LHFI
|
46
|
|
|
47
|
|
||
Total
|
100
|
%
|
|
100
|
%
|
NPA and TDR Composition and Other Credit Data
|
|
|
|
|
Table 8
|
|
||||
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
% Change 3
|
|||||
NPAs:
|
|
|
|
|
|
|||||
Commercial NPLs:
|
|
|
|
|
|
|||||
C&I
|
|
$197
|
|
|
|
$157
|
|
|
25
|
%
|
CRE
|
2
|
|
|
2
|
|
|
—
|
|
||
Total commercial NPLs
|
199
|
|
|
159
|
|
|
25
|
|
||
Consumer NPLs:
|
|
|
|
|
|
|||||
Residential mortgages - nonguaranteed
|
178
|
|
|
204
|
|
|
(13
|
)
|
||
Residential home equity products
|
124
|
|
|
138
|
|
|
(10
|
)
|
||
Residential construction
|
8
|
|
|
11
|
|
|
(27
|
)
|
||
Other direct
|
8
|
|
|
7
|
|
|
14
|
|
||
Indirect
|
5
|
|
|
7
|
|
|
(29
|
)
|
||
Total consumer NPLs
|
323
|
|
|
367
|
|
|
(12
|
)
|
||
Total nonaccrual LHFI/NPLs 1
|
|
$522
|
|
|
|
$526
|
|
|
(1
|
)%
|
OREO 2
|
|
$53
|
|
|
|
$54
|
|
|
(2
|
)%
|
Other repossessed assets
|
9
|
|
|
9
|
|
|
—
|
|
||
Nonperforming LHFS
|
64
|
|
|
—
|
|
|
NM
|
|
||
Total NPAs
|
|
$648
|
|
|
|
$589
|
|
|
10
|
%
|
Accruing LHFI past due 90 days or more
|
|
$1,659
|
|
|
|
$1,652
|
|
|
—
|
%
|
Accruing LHFS past due 90 days or more
|
2
|
|
|
1
|
|
|
100
|
|
||
TDRs:
|
|
|
|
|
|
|||||
Accruing restructured LHFI
|
|
$1,807
|
|
|
|
$2,339
|
|
|
(23
|
)%
|
Nonaccruing restructured LHFI 1
|
309
|
|
|
291
|
|
|
6
|
|
||
Ratios:
|
|
|
|
|
|
|||||
NPLs to period-end LHFI
|
0.34
|
%
|
|
0.35
|
%
|
|
(3
|
)%
|
||
NPAs to period-end LHFI, OREO, other repossessed assets, and nonperforming LHFS
|
0.42
|
|
|
0.39
|
|
|
8
|
|
Investment Securities
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Investment Securities Portfolio Composition
|
|
|
|
|
|
|
Table 9
|
|
|||||||
|
March 31, 2019
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$4,279
|
|
|
|
$4
|
|
|
|
$24
|
|
|
|
$4,259
|
|
Federal agency securities
|
143
|
|
|
1
|
|
|
2
|
|
|
142
|
|
||||
U.S. states and political subdivisions
|
594
|
|
|
6
|
|
|
7
|
|
|
593
|
|
||||
MBS - agency residential
|
23,149
|
|
|
207
|
|
|
146
|
|
|
23,210
|
|
||||
MBS - agency commercial
|
2,641
|
|
|
20
|
|
|
37
|
|
|
2,624
|
|
||||
MBS - non-agency commercial
|
1,009
|
|
|
7
|
|
|
4
|
|
|
1,012
|
|
||||
Corporate and other debt securities
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||
Total securities AFS
|
|
$31,828
|
|
|
|
$245
|
|
|
|
$220
|
|
|
|
$31,853
|
|
|
December 31, 2018
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$4,277
|
|
|
|
$—
|
|
|
|
$66
|
|
|
|
$4,211
|
|
Federal agency securities
|
221
|
|
|
2
|
|
|
2
|
|
|
221
|
|
||||
U.S. states and political subdivisions
|
606
|
|
|
4
|
|
|
21
|
|
|
589
|
|
||||
MBS - agency residential
|
23,161
|
|
|
128
|
|
|
425
|
|
|
22,864
|
|
||||
MBS - agency commercial
|
2,688
|
|
|
8
|
|
|
69
|
|
|
2,627
|
|
||||
MBS - non-agency commercial
|
943
|
|
|
—
|
|
|
27
|
|
|
916
|
|
||||
Corporate and other debt securities
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||
Total securities AFS
|
|
$31,910
|
|
|
|
$142
|
|
|
|
$610
|
|
|
|
$31,442
|
|
Regulatory Capital Metrics 1
|
|
Table 10
|
|
||||
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Regulatory capital:
|
|
|
|
||||
CET1
|
|
$17,391
|
|
|
|
$17,258
|
|
Tier 1 capital
|
19,439
|
|
|
19,306
|
|
||
Total capital
|
22,690
|
|
|
22,517
|
|
||
Assets:
|
|
|
|
||||
RWA
|
|
$191,431
|
|
|
|
$187,380
|
|
Average total assets for leverage ratio
|
212,417
|
|
|
208,482
|
|
||
Risk-based ratios 2:
|
|
|
|
||||
CET1
|
9.09
|
%
|
|
9.21
|
%
|
||
Tier 1 capital
|
10.15
|
|
|
10.30
|
|
||
Total capital
|
11.85
|
|
|
12.02
|
|
||
Leverage
|
9.15
|
|
|
9.26
|
|
||
Total shareholders’ equity to assets
|
11.26
|
|
|
11.26
|
|
Value at Risk Profile
|
Table 12
|
|
|||||
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2019
|
|
2018
|
||||
VAR (1-day holding period):
|
|
|
|
||||
Period end
|
|
$2
|
|
|
|
$2
|
|
High
|
3
|
|
|
2
|
|
||
Low
|
1
|
|
|
1
|
|
||
Average
|
2
|
|
|
2
|
|
||
Stressed VAR (10-day holding period):
|
|||||||
Period end
|
|
$111
|
|
|
|
$68
|
|
High
|
127
|
|
|
85
|
|
||
Low
|
31
|
|
|
25
|
|
||
Average
|
56
|
|
|
49
|
|
||
VAR by Risk Factor at period end (1-day holding period):
|
|||||||
Equity risk
|
|
$1
|
|
|
|
$2
|
|
Interest rate risk
|
1
|
|
|
1
|
|
||
Credit spread risk
|
2
|
|
|
3
|
|
||
VAR total at period end (1-day diversified)
|
2
|
|
|
2
|
|
|
Contingency Liquidity Sources
|
|
|
|
|
|
Table 14
|
|
||||||||
|
|
|
|
|
|||||||||||
|
As of
|
|
Average for the Three Months Ended ¹
|
||||||||||||
(Dollars in billions)
|
March 31, 2019
|
|
March 31, 2018
|
|
March 31, 2019
|
|
March 31, 2018
|
||||||||
Excess reserves
|
|
$2.1
|
|
|
|
$3.6
|
|
|
|
$2.1
|
|
|
|
$3.0
|
|
Free and liquid investment portfolio securities
|
28.4
|
|
|
27.0
|
|
|
28.2
|
|
|
27.3
|
|
||||
Unused FHLB borrowing capacity
|
19.6
|
|
|
25.5
|
|
|
18.8
|
|
|
23.9
|
|
||||
Unused discount window borrowing capacity
|
22.6
|
|
|
17.6
|
|
|
22.3
|
|
|
18.0
|
|
||||
Total
|
|
$72.7
|
|
|
|
$73.7
|
|
|
|
$71.4
|
|
|
|
$72.2
|
|
Unfunded Lending Commitments
|
|
|
|
|
|
Table 15
|
|
||||||||
|
As of
|
|
Average for the Three Months Ended
|
||||||||||||
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
March 31, 2018
|
||||||||
Unused lines of credit:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
|
$63,991
|
|
|
|
$63,779
|
|
|
|
$63,885
|
|
|
|
$60,722
|
|
Residential mortgage commitments 1
|
3,148
|
|
|
2,739
|
|
|
2,944
|
|
|
3,207
|
|
||||
Home equity lines
|
10,524
|
|
|
10,338
|
|
|
10,431
|
|
|
10,130
|
|
||||
CRE 2
|
5,642
|
|
|
5,307
|
|
|
5,475
|
|
|
4,013
|
|
||||
Credit card
|
11,031
|
|
|
10,852
|
|
|
10,941
|
|
|
10,557
|
|
||||
Total unused lines of credit
|
|
$94,336
|
|
|
|
$93,015
|
|
|
|
$93,676
|
|
|
|
$88,629
|
|
|
|
|
|
|
|
|
|
||||||||
Letters of credit:
|
|
|
|
|
|
|
|
||||||||
Financial standby
|
|
$2,713
|
|
|
|
$2,769
|
|
|
|
$2,741
|
|
|
|
$2,440
|
|
Performance standby
|
90
|
|
|
102
|
|
|
96
|
|
|
122
|
|
||||
Commercial
|
24
|
|
|
38
|
|
|
31
|
|
|
15
|
|
||||
Total letters of credit
|
|
$2,827
|
|
|
|
$2,909
|
|
|
|
$2,868
|
|
|
|
$2,577
|
|
Selected Financial Data and Reconcilement of Non-U.S. GAAP Measures
|
|
|
Table 16
|
|
|||
(Dollars in millions and shares in thousands, except per share data)
|
|
|
|
||||
Three Months Ended March 31
|
|||||||
Selected Financial Data
|
2019
|
|
2018
|
||||
Summary of Operations:
|
|
|
|
||||
Interest income
|
|
$1,987
|
|
|
|
$1,668
|
|
Interest expense
|
443
|
|
|
227
|
|
||
Net interest income
|
1,544
|
|
|
1,441
|
|
||
Provision for credit losses
|
153
|
|
|
28
|
|
||
Net interest income after provision for credit losses
|
1,391
|
|
|
1,413
|
|
||
Noninterest income
|
784
|
|
|
796
|
|
||
Noninterest expense
|
1,489
|
|
|
1,417
|
|
||
Income before provision for income taxes
|
686
|
|
|
792
|
|
||
Provision for income taxes
|
104
|
|
|
147
|
|
||
Net income attributable to noncontrolling interest
|
2
|
|
|
2
|
|
||
Net income
|
|
$580
|
|
|
|
$643
|
|
Net income available to common shareholders
|
|
$554
|
|
|
|
$612
|
|
Net interest income-FTE 1
|
|
$1,567
|
|
|
|
$1,461
|
|
Total revenue
|
2,328
|
|
|
2,237
|
|
||
Total revenue-FTE 1
|
2,351
|
|
|
2,257
|
|
||
Net securities gains/(losses)
|
—
|
|
|
1
|
|
||
Net income per average common share:
|
|
|
|
||||
Diluted
|
|
$1.24
|
|
|
|
$1.29
|
|
Basic
|
1.25
|
|
|
1.31
|
|
||
Dividends declared per common share
|
0.50
|
|
|
0.40
|
|
||
Book value per common share
|
51.15
|
|
|
47.14
|
|
||
Tangible book value per common share 2
|
37.22
|
|
|
33.97
|
|
||
Market capitalization
|
26,290
|
|
|
31,959
|
|
||
Market price per common share (NYSE trading symbol “STI”):
|
|
|
|
||||
High
|
|
$67.25
|
|
|
|
$73.37
|
|
Low
|
49.78
|
|
|
64.32
|
|
||
Close
|
59.25
|
|
|
68.04
|
|
||
Selected Average Balances:
|
|
|
|
||||
Total assets
|
|
$217,403
|
|
|
|
$204,132
|
|
Earning assets
|
194,385
|
|
|
182,874
|
|
||
LHFI
|
154,258
|
|
|
142,920
|
|
||
Intangible assets including residential MSRs
|
8,394
|
|
|
8,244
|
|
||
Residential MSRs
|
1,984
|
|
|
1,833
|
|
||
Consumer and commercial deposits
|
159,921
|
|
|
159,169
|
|
||
Preferred stock
|
2,025
|
|
|
2,390
|
|
||
Total shareholders’ equity
|
24,466
|
|
|
24,605
|
|
||
Average common shares - diluted
|
446,662
|
|
|
473,620
|
|
||
Average common shares - basic
|
443,566
|
|
|
468,723
|
|
||
Financial Ratios (Annualized):
|
|
|
|
||||
ROA
|
1.08
|
%
|
|
1.28
|
%
|
||
ROE
|
10.06
|
|
|
11.23
|
|
||
ROTCE 3
|
13.91
|
|
|
15.60
|
|
||
Net interest margin
|
3.22
|
|
|
3.20
|
|
||
Net interest margin-FTE 1
|
3.27
|
|
|
3.24
|
|
||
Efficiency ratio 4
|
63.97
|
|
|
63.35
|
|
||
Efficiency ratio-FTE 1, 4
|
63.35
|
|
|
62.77
|
|
||
Tangible efficiency ratio-FTE 1, 4, 5
|
62.70
|
|
|
62.11
|
|
||
Adjusted tangible efficiency ratio-FTE 1, 4, 5, 6
|
60.78
|
|
|
62.11
|
|
||
Total average shareholders’ equity to total average assets
|
11.25
|
|
|
12.05
|
|
||
Tangible common equity to tangible assets 7
|
7.71
|
|
|
8.04
|
|
||
Common dividend payout ratio
|
40.1
|
|
|
30.6
|
|
Selected Financial Data and Reconcilement of Non-U.S. GAAP Measures (continued)
|
|||||
|
|
|
|
||
Selected Financial Data (continued)
|
Three Months Ended March 31
|
||||
Capital Ratios at period end 8:
|
2019
|
|
2018
|
||
CET1
|
9.09
|
%
|
|
9.84
|
%
|
Tier 1 capital
|
10.15
|
|
|
11.00
|
|
Total capital
|
11.85
|
|
|
12.90
|
|
Leverage
|
9.15
|
|
|
9.75
|
|
|
|
|
|
||||
(Dollars in millions, except per share data)
|
Three Months Ended March 31
|
||||||
Reconcilement of Non-U.S. GAAP Measures
|
2019
|
|
2018
|
||||
Net interest margin
|
3.22
|
%
|
|
3.20
|
%
|
||
Impact of FTE adjustment
|
0.05
|
|
|
0.04
|
|
||
Net interest margin-FTE 1
|
3.27
|
%
|
|
3.24
|
%
|
||
|
|
|
|
||||
Efficiency ratio 4
|
63.97
|
%
|
|
63.35
|
%
|
||
Impact of FTE adjustment
|
(0.62
|
)
|
|
(0.58
|
)
|
||
Efficiency ratio-FTE 1, 4
|
63.35
|
|
|
62.77
|
|
||
Impact of excluding amortization related to intangible assets and certain tax credits
|
(0.65
|
)
|
|
(0.66
|
)
|
||
Tangible efficiency ratio-FTE 1, 4, 5
|
62.70
|
|
|
62.11
|
|
||
Impact of excluding Merger-related costs
|
(1.92
|
)
|
|
—
|
|
||
Adjusted tangible efficiency ratio-FTE 1, 4, 5, 6
|
60.78
|
%
|
|
62.11
|
%
|
||
|
|
|
|
||||
ROE
|
10.06
|
%
|
|
11.23
|
%
|
||
Impact of removing average intangible assets other than residential MSRs and other servicing rights from average common shareholders' equity, and removing related pre-tax amortization expense from net income available to common shareholders
|
3.85
|
|
|
4.37
|
|
||
ROTCE 3
|
13.91
|
%
|
|
15.60
|
%
|
||
|
|
|
|
||||
Net interest income
|
|
$1,544
|
|
|
|
$1,441
|
|
FTE adjustment
|
23
|
|
|
20
|
|
||
Net interest income-FTE 1
|
1,567
|
|
|
1,461
|
|
||
Noninterest income
|
784
|
|
|
796
|
|
||
Total revenue-FTE 1
|
|
$2,351
|
|
|
|
$2,257
|
|
|
|
|
|
||||
|
|
|
|
||||
(Dollars in millions, except per share data)
|
March 31, 2019
|
|
March 31, 2018
|
||||
Total shareholders’ equity
|
|
$24,823
|
|
|
|
$24,269
|
|
Goodwill, net of deferred taxes 9
|
(6,169
|
)
|
|
(6,172
|
)
|
||
Other intangible assets (including residential MSRs and other servicing rights)
|
(1,963
|
)
|
|
(1,996
|
)
|
||
Residential MSRs and other servicing rights
|
1,949
|
|
|
1,981
|
|
||
Tangible equity 7
|
18,640
|
|
|
18,082
|
|
||
Noncontrolling interest
|
(101
|
)
|
|
(101
|
)
|
||
Preferred stock
|
(2,025
|
)
|
|
(2,025
|
)
|
||
Tangible common equity 7
|
|
$16,514
|
|
|
|
$15,956
|
|
|
|
|
|
||||
Total assets
|
|
$220,425
|
|
|
|
$204,885
|
|
Goodwill
|
(6,331
|
)
|
|
(6,331
|
)
|
||
Other intangible assets (including residential MSRs and other servicing rights)
|
(1,963
|
)
|
|
(1,996
|
)
|
||
Residential MSRs and other servicing rights
|
1,949
|
|
|
1,981
|
|
||
Tangible assets
|
|
$214,080
|
|
|
|
$198,539
|
|
Tangible common equity to tangible assets 7
|
7.71
|
%
|
|
8.04
|
%
|
||
Tangible book value per common share 2
|
|
$37.22
|
|
|
|
$33.97
|
|
Selected Financial Data and Reconcilement of Non-U.S. GAAP Measures (continued)
|
|
||
|
|
||
(Dollars in millions)
|
|
||
Reconciliation of PPNR 10
|
Three Months Ended March 31, 2019
|
||
Income before provision for income taxes
|
|
$686
|
|
Provision for credit losses
|
153
|
|
|
Less:
|
|
||
Net securities gains/(losses)
|
—
|
|
|
PPNR
|
|
$839
|
|
1
|
We present Net interest income-FTE, Total revenue-FTE, Net interest margin-FTE, Efficiency ratio-FTE, Tangible efficiency ratio-FTE, and Adjusted tangible efficiency ratio-FTE on a fully taxable-equivalent ("FTE") basis. The FTE basis adjusts for the tax-favored status of Net interest income from certain loans and investments using a federal tax rate of 21% as well as state income taxes, where applicable, to increase tax-exempt interest income to a taxable-equivalent basis. We believe the FTE basis is the preferred industry measurement basis for these measures and that it enhances comparability of Net interest income arising from taxable and tax-exempt sources. Total revenue-FTE is calculated as Net interest income-FTE plus Noninterest income. Net interest margin-FTE is calculated by dividing annualized Net interest income-FTE by average Total earning assets.
|
2
|
We present Tangible book value per common share, which removes the after-tax impact of purchase accounting intangible assets, noncontrolling interest, and preferred stock from shareholders' equity. We believe this measure is useful to investors because, by removing the amount of intangible assets that result from merger and acquisition activity, and removing the amounts of noncontrolling interest and preferred stock that do not represent our common shareholders' equity, it allows investors to more easily compare our capital position to other companies in the industry.
|
3
|
We present ROTCE, which removes the after-tax impact of purchase accounting intangible assets from average common shareholders' equity and removes the related intangible asset amortization from Net income available to common shareholders. We believe this measure is useful to investors because, by removing the amount of intangible assets that result from merger and acquisition activity and related pre-tax amortization expense (the level of which may vary from company to company), it allows investors to more easily compare our ROTCE to other companies in the industry who present a similar measure. We also believe that removing these items provides a more relevant measure of our Return on common shareholders' equity. This measure is utilized by management to assess our profitability.
|
4
|
Efficiency ratio is computed by dividing Noninterest expense by Total revenue. Efficiency ratio-FTE is computed by dividing Noninterest expense by Total revenue-FTE.
|
5
|
We present Tangible efficiency ratio-FTE, which excludes amortization related to intangible assets and certain tax credits. We believe this measure is useful to investors because, by removing the impact of amortization (the level of which may vary from company to company), it allows investors to more easily compare our efficiency to other companies in the industry. This measure is utilized by management to assess our efficiency and that of our lines of business.
|
6
|
We present Adjusted tangible efficiency ratio-FTE, which excludes the $45 million pre-tax impact of Merger-related costs recognized in the first quarter of 2019. We believe this measure is useful to investors because it removes the effect of material items impacting the periods' results and is more reflective of normalized operations as it reflects results that are primarily client relationship and client transaction driven. Removing these items also allows investors to more easily compare our tangible efficiency to other companies in the industry that may not have had similar items impacting their results. Additional detail on the Merger can be found in our 2018 Annual Report on Form 10-K.
|
7
|
We present certain capital information on a tangible basis, including the ratio of Tangible common equity to tangible assets, Tangible equity, and Tangible common equity, which removes the after-tax impact of purchase accounting intangible assets. We believe these measures are useful to investors because, by removing the amount of intangible assets that result from merger and acquisition activity (the level of which may vary from company to company), it allows investors to more easily compare our capital position to other companies in the industry. These measures are utilized by management to analyze capital adequacy.
|
8
|
Basel III capital ratios are calculated under the standardized approach using regulatory capital methodology applicable to us for each period presented. Refer to the "Capital Resources" section of this MD&A for additional regulatory capital information.
|
9
|
Net of deferred taxes of $162 million and $159 million at March 31, 2019 and 2018, respectively.
|
10
|
We present the reconciliation of PPNR because it is a performance metric utilized by management and in certain of our compensation plans. PPNR impacts the level of awards if certain thresholds are met. We believe this measure is useful to investors because it allows investors to compare our PPNR to other companies in the industry who present a similar measure.
|
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 17
|
||
|
Common Stock 1, 2
|
||||||||
|
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
of Equity that May Yet Be
Purchased Under the Plans
or Programs at Period End
(in millions)
|
||
January 1 - 31
|
4,578,864
|
|
|
$54.60
|
|
4,578,864
|
|
|
$500
|
February 1 - 28
|
—
|
|
|
—
|
|
—
|
|
|
500
|
March 1 - 31
|
—
|
|
|
—
|
|
—
|
|
|
500
|
Total during first quarter of 2019
|
4,578,864
|
|
|
$54.60
|
|
4,578,864
|
|
|
$500
|
Item 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
Item 4.
|
MINE SAFETY DISCLOSURES
|
Item 5.
|
OTHER INFORMATION
|
Item 6.
|
EXHIBITS
|
Exhibit Number
|
|
Description
|
|
Location
|
2
|
|
Agreement and Plan of Merger, dated February 7, 2019, by and between registrant and BB&T Corporation, incorporated by reference to Exhibit 2.1 to the registrant's Current Report on Form 8-K filed February 13, 2019.
|
|
(1)
|
|
|
|
|
|
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 (i) Articles of Amendment dated December 13, 2012, incorporated by reference to Exhibit 3.1 and 4.1 to the registrant's Current Report on Form 8-K filed December 20, 2012, (ii) the Articles of Amendment dated November 6, 2014, incorporated by reference to Exhibit 3.1 and 4.1 to the registrant's Current Report on Form 8-K filed November 7, 2014, (iii) the Articles of Amendment dated May 1, 2017, incorporated by reference to Exhibit 3.1 to the registrant's Current Report on Form 8-K filed May 2, 2017, and (iv) the Articles of Amendment dated November 13, 2017, incorporated by reference to Exhibit 3.1 to the registrant's Current Report on Form 8-K filed November 14, 2017.
|
|
(1)
|
|
|
|
|
|
3.2
|
|
Bylaws of the Registrant, as amended and restated on October 15, 2018, incorporated by reference to Exhibit 3.2 to the registrant's Current Report on Form 8-K filed October 15, 2018.
|
|
(1)
|
|
|
|
|
|
10.1*
|
|
Form of Non-Employee Director Restricted Stock Award Agreement, under 2018 Omnibus Incentive Compensation Plan
|
|
(2)
|
|
|
|
|
|
10.2*
|
|
Form of Non-Employee Director Restricted Stock Unit Award Agreement, under 2018 Omnibus Incentive Compensation Plan
|
|
(2)
|
|
|
|
|
|
|
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.
|
|
(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.
|
|
(2)
|
|
|
|
|
|
|
|
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.
|
|
(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.
|
|
(2)
|
|
|
|
|
|
|
101
|
|
Interactive Data File (XBRL tags are embedded within the Inline XBRL document).
|
|
(2)
|
*
|
Management contract or compensatory plan or arrangement
|
(1)
|
incorporated by reference
|
(2)
|
filed herewith
|
|
|
|
|
|
SUNTRUST BANKS, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
Date:
|
May 6, 2019
|
|
By: /s/ R. Ryan Richards
|
|
|
|
R. Ryan Richards,
Senior Vice President and Controller
(on behalf of the registrant and as Principal Accounting Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of Grantee
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Number of Restricted Stock Units
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Grant Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing Price of SunTrust Stock on Grant Date
|
$
|
|
|
|
|
|
|
|
|
|
|
(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.
|