Delaware | 05-0412693 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Common stock, $0.01 par value per share | CFG | New York Stock Exchange | ||||||
Depositary Shares, each representing a 1/40th interest in a share of 6.350% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D | CFG PrD | New York Stock Exchange | ||||||
Depositary Shares, each representing a 1/40th interest in a share of 5.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series E | CFG PrE | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Table of Contents | ||||||||||||||
2021 Form 10-K | Annual Report on Form 10-K for the year ended December 31, 2021 | |||||||
AACL | Adjusted Allowance for Credit Losses | |||||||
ACL | Allowance for Credit Losses: Allowance for Loan and Lease Losses plus Allowance for Unfunded Lending Commitments | |||||||
AFS | Available for Sale | |||||||
ALLL | Allowance for Loan and Lease Losses | |||||||
ALM | Asset and Liability Management | |||||||
AOCI | Accumulated Other Comprehensive Income (Loss) | |||||||
ASU | Accounting Standards Update | |||||||
ATM | Automated Teller Machine | |||||||
Board or Board of Directors | The Board of Directors of Citizens Financial Group, Inc. | |||||||
bps | Basis Points | |||||||
CARES Act | Coronavirus Aid, Relief, and Economic Security Act | |||||||
CBNA | Citizens Bank, National Association | |||||||
CCAR | Comprehensive Capital Analysis and Review | |||||||
CCB | Capital Conservation Buffer | |||||||
CCMI | Citizens Capital Markets, Inc. | |||||||
CECL | Current Expected Credit Losses (ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) | |||||||
CET1 | Common Equity Tier 1 | |||||||
CET1 capital ratio | Common Equity Tier 1 capital divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach | |||||||
Citizens, CFG, the Company, we, us, or our | Citizens Financial Group, Inc. and its Subsidiaries | |||||||
CLO | Collateralized Loan Obligation | |||||||
CLTV | Combined Loan-to-Value | |||||||
COVID-19 | Coronavirus Disease 2019 | |||||||
CRE | Commercial Real Estate | |||||||
DH Capital | DH Capital, LLC | |||||||
Dodd-Frank Act | The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 | |||||||
EPS | Earnings Per Share | |||||||
EVE | Economic Value of Equity | |||||||
Exchange Act | The Securities Exchange Act of 1934 | |||||||
Fannie Mae (FNMA) | Federal National Mortgage Association | |||||||
FDIC | Federal Deposit Insurance Corporation | |||||||
FHA | Federal Housing Administration | |||||||
FHLB | Federal Home Loan Bank | |||||||
FICO | Fair Isaac Corporation (credit rating) | |||||||
FRB or Federal Reserve | Board of Governors of the Federal Reserve System and, as applicable, Federal Reserve Bank(s) | |||||||
Freddie Mac (FHLMC) | Federal Home Loan Mortgage Corporation | |||||||
FTE | Fully Taxable Equivalent | |||||||
FTP | Funds Transfer Pricing | |||||||
GAAP | Accounting Principles Generally Accepted in the United States of America | |||||||
GDP | Gross Domestic Product | |||||||
Ginnie Mae (GNMA) | Government National Mortgage Association | |||||||
GSE | Government Sponsored Entity | |||||||
HSBC | HSBC Bank U.S.A., N.A. |
HSBC transaction | Acquisition of HSBC East Coast branches and national online deposit business | |||||||
HTM | Held To Maturity | |||||||
Investors | Investors Bancorp, Inc. | |||||||
JMP | JMP Group LLC | |||||||
Last-of-Layer | Last-of-layer is a fair value hedge of the interest rate risk of a portfolio of similar prepayable assets whereby the last dollar amount within the portfolio of assets is identified as the hedged item | |||||||
LHFS | Loans Held for Sale | |||||||
LIBOR | London Interbank Offered Rate | |||||||
LIHTC | Low Income Housing Tax Credit | |||||||
MBS | Mortgage-Backed Securities | |||||||
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||
Mid-Atlantic | District of Columbia, Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia, and West Virginia | |||||||
Midwest | Illinois, Indiana, Michigan, and Ohio | |||||||
Modified CECL Transition | The Day-1 CECL adoption entry booked to retained earnings plus 25% of subsequent CECL ACL reserve build | |||||||
Modified AACL Transition | The Day-1 CECL adoption entry booked to ACL plus 25% of subsequent CECL ACL reserve build | |||||||
MSRs | Mortgage Servicing Rights | |||||||
NCOs | Net charge-offs | |||||||
New England | Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont | |||||||
OCC | Office of the Comptroller of the Currency | |||||||
OCI | Other Comprehensive Income (Loss) | |||||||
Operating Leverage | Period-over-period percent change in total revenue, less the period-over-period percent change in noninterest expense | |||||||
Parent Company | Citizens Financial Group, Inc. (the Parent Company of Citizens Bank, National Association and other subsidiaries) | |||||||
PCD | Purchased Credit Deteriorated | |||||||
PPP | Paycheck Protection Program | |||||||
ROTCE | Return on Average Tangible Common Equity | |||||||
RPA | Risk Participation Agreement | |||||||
RWA | Risk-Weighted Assets | |||||||
SBA | United States Small Business Administration | |||||||
SCB | Stress Capital Buffer | |||||||
SEC | United States Securities and Exchange Commission | |||||||
SVaR | Stressed Value at Risk | |||||||
Tailoring Rules | Rules establishing risk-based categories for determining prudential standards for large U.S. and foreign banking organizations, consistent with the Dodd-Frank Act, as amended by the Economic Growth, Regulatory Relief and Consumer Protection Act | |||||||
TBAs | To-Be-Announced Mortgage Securities | |||||||
TDR | Troubled Debt Restructuring | |||||||
Tier 1 capital ratio | Tier 1 capital, which includes Common Equity Tier 1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach | |||||||
Tier 1 leverage ratio | Tier 1 capital, which includes Common Equity Tier 1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by quarterly adjusted average assets as defined under the U.S. Basel III Standardized approach | |||||||
TOP | Tapping Our Potential | |||||||
Total capital ratio | Total capital, which includes Common Equity Tier 1 capital, tier 1 capital and allowance for credit losses and qualifying subordinated debt that qualifies as tier 2 capital, divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach | |||||||
USDA | United States Department of Agriculture |
VA | United States Department of Veterans Affairs | |||||||
VaR | Value at Risk | |||||||
VIE | Variable Interest Entities |
Page | ||||||||
Table 1: Notable Items | |||||||||||||||||
Three Months Ended June 30, 2022 | |||||||||||||||||
Less: notable items | |||||||||||||||||
(in millions) | Reported results (GAAP) | Integration related costs(1) | TOP and other(2) | Provision(3) | Underlying results (non-GAAP) | ||||||||||||
Provision (benefit) for credit losses | $216 | $— | $— | $145 | $71 | ||||||||||||
Noninterest income | 494 | (31) | — | — | 525 | ||||||||||||
Noninterest expense | 1,305 | 104 | 21 | — | 1,180 | ||||||||||||
Income tax expense | 114 | (28) | (5) | (37) | 184 |
Three Months Ended June 30, 2021 | |||||||||||||||||
Less: notable items | |||||||||||||||||
(in millions) | Reported results (GAAP) | Integration related costs(1) | TOP and other(2) | Provision | Underlying results (non-GAAP) | ||||||||||||
Provision (benefit) for credit losses | ($213) | $— | $— | $— | ($213) | ||||||||||||
Noninterest income | 485 | — | — | — | 485 | ||||||||||||
Noninterest expense | 991 | 2 | 9 | — | 980 | ||||||||||||
Income tax expense | 183 | (1) | (2) | — | 186 |
Six Months Ended June 30, 2022 | |||||||||||||||||
Less: notable items | |||||||||||||||||
(in millions) | Reported results (GAAP) | Integration related costs(1) | TOP and other(2) | Provision(3) | Underlying results (non-GAAP) | ||||||||||||
Provision (benefit) for credit losses | $219 | $— | $— | $169 | $50 | ||||||||||||
Noninterest income | 992 | (31) | — | — | 1,023 | ||||||||||||
Noninterest expense | 2,411 | 141 | 32 | — | 2,238 | ||||||||||||
Income tax expense | 230 | (38) | (5) | (43) | 316 |
Six Months Ended June 30, 2021 | |||||||||||||||||
Less: notable items | |||||||||||||||||
(in millions) | Reported results (GAAP) | Integration related costs(1) | TOP and other(2) | Provision | Underlying results (non-GAAP) | ||||||||||||
Provision (benefit) for credit losses | ($353) | $— | $— | $— | ($353) | ||||||||||||
Noninterest income | 1,027 | — | — | — | 1,027 | ||||||||||||
Noninterest expense | 2,009 | 2 | 29 | — | 1,978 | ||||||||||||
Income tax expense | 353 | (1) | (7) | — | 361 |
Table 2: Major Components of Net Interest Income | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||||||||||||||
(dollars in millions) | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Yields/ Rates (bps) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Interest-bearing cash and due from banks and deposits in banks | $4,630 | $13 | 1.06 | % | $11,259 | $3 | 0.12 | % | ($6,629) | 94 bps | ||||||||||||||||||||||
Taxable investment securities | 35,900 | 201 | 2.25 | 27,597 | 124 | 1.80 | 8,303 | 45 | ||||||||||||||||||||||||
Non-taxable investment securities | 3 | — | 2.62 | 3 | — | 2.60 | — | 2 | ||||||||||||||||||||||||
Total investment securities | 35,903 | 201 | 2.25 | 27,600 | 124 | 1.80 | 8,303 | 45 | ||||||||||||||||||||||||
Commercial and industrial | 50,517 | 418 | 3.28 | 44,388 | 345 | 3.08 | 6,129 | 20 | ||||||||||||||||||||||||
Commercial real estate | 27,592 | 243 | 3.48 | 14,473 | 95 | 2.58 | 13,119 | 90 | ||||||||||||||||||||||||
Leases | 1,575 | 10 | 2.61 | 1,792 | 12 | 2.76 | (217) | (15) | ||||||||||||||||||||||||
Total commercial loans and leases | 79,684 | 671 | 3.33 | 60,653 | 452 | 2.96 | 19,031 | 37 | ||||||||||||||||||||||||
Residential mortgages | 28,486 | 221 | 3.10 | 20,242 | 154 | 3.04 | 8,244 | 6 | ||||||||||||||||||||||||
Home equity | 12,811 | 105 | 3.27 | 11,825 | 92 | 3.13 | 986 | 14 | ||||||||||||||||||||||||
Automobile | 14,172 | 127 | 3.60 | 12,526 | 125 | 4.00 | 1,646 | (40) | ||||||||||||||||||||||||
Education | 13,144 | 137 | 4.18 | 12,632 | 135 | 4.26 | 512 | (8) | ||||||||||||||||||||||||
Other retail | 5,557 | 109 | 7.87 | 5,612 | 100 | 7.13 | (55) | 74 | ||||||||||||||||||||||||
Total retail loans | 74,170 | 699 | 3.77 | 62,837 | 606 | 3.86 | 11,333 | (9) | ||||||||||||||||||||||||
Total loans and leases | 153,854 | 1,370 | 3.55 | 123,490 | 1,058 | 3.42 | 30,364 | 13 | ||||||||||||||||||||||||
Loans held for sale, at fair value | 1,937 | 17 | 3.60 | 3,751 | 24 | 2.55 | (1,814) | 105 | ||||||||||||||||||||||||
Other loans held for sale | 2,353 | 25 | 4.21 | 233 | 2 | 2.99 | 2,120 | 122 | ||||||||||||||||||||||||
Interest-earning assets | 198,677 | 1,626 | 3.26 | 166,333 | 1,211 | 2.90 | 32,344 | 36 | ||||||||||||||||||||||||
Noninterest-earning assets | 22,290 | 18,123 | 4,167 | |||||||||||||||||||||||||||||
Total assets | $220,967 | $184,456 | $36,511 | |||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Checking with interest | $38,747 | $15 | 0.16 | % | $27,278 | $5 | 0.08 | % | $11,469 | 8 | ||||||||||||||||||||||
Money market | 48,795 | 23 | 0.19 | 49,394 | 21 | 0.17 | (599) | 2 | ||||||||||||||||||||||||
Savings | 27,661 | 9 | 0.14 | 20,077 | 5 | 0.10 | 7,584 | 4 | ||||||||||||||||||||||||
Term | 6,970 | 7 | 0.31 | 6,970 | 11 | 0.61 | — | (30) | ||||||||||||||||||||||||
Total interest-bearing deposits | 122,173 | 54 | 0.18 | 103,719 | 42 | 0.16 | 18,454 | 2 | ||||||||||||||||||||||||
Short-term borrowed funds | 3,995 | 10 | 0.98 | 69 | — | 0.87 | 3,926 | 11 | ||||||||||||||||||||||||
Long-term borrowed funds | 10,222 | 57 | 2.26 | 7,434 | 45 | 2.41 | 2,788 | (15) | ||||||||||||||||||||||||
Total borrowed funds | 14,217 | 67 | 1.90 | 7,503 | 45 | 2.40 | 6,714 | (50) | ||||||||||||||||||||||||
Total interest-bearing liabilities | 136,390 | 121 | 0.36 | 111,222 | 87 | 0.31 | 25,168 | 5 | ||||||||||||||||||||||||
Demand deposits | 54,189 | 46,630 | 7,559 | |||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 5,991 | 3,741 | 2,250 | |||||||||||||||||||||||||||||
Total liabilities | 196,570 | 161,593 | 34,977 | |||||||||||||||||||||||||||||
Stockholders’ equity | 24,397 | 22,863 | 1,534 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $220,967 | $184,456 | $36,511 | |||||||||||||||||||||||||||||
Interest rate spread | 2.90 | % | 2.59 | % | 31 | |||||||||||||||||||||||||||
Net interest income and net interest margin | $1,505 | 3.04 | % | $1,124 | 2.71 | % | 33 | |||||||||||||||||||||||||
Net interest income and net interest margin, FTE(1) | $1,507 | 3.04 | % | $1,126 | 2.72 | % | 32 | |||||||||||||||||||||||||
Memo: Total deposits (interest-bearing and demand) | $176,362 | $54 | 0.12 | % | $150,349 | $42 | 0.11 | % | $26,013 | 1 | bp |
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||||||||||||||
(dollars in millions) | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Yields/ Rates (bps) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Interest-bearing cash and due from banks and deposits in banks | $6,333 | $17 | 0.52 | % | $11,061 | $6 | 0.11 | % | ($4,728) | 41 bps | ||||||||||||||||||||||
Taxable investment securities | 32,591 | 339 | 2.08 | 27,316 | 252 | 1.84 | 5,275 | 24 | ||||||||||||||||||||||||
Non-taxable investment securities | 2 | — | 2.61 | 3 | — | 2.60 | (1) | 1 | ||||||||||||||||||||||||
Total investment securities | 32,593 | 339 | 2.08 | 27,319 | 252 | 1.84 | 5,274 | 24 | ||||||||||||||||||||||||
Commercial and industrial | 47,747 | 746 | 3.11 | 44,338 | 692 | 3.10 | 3,409 | 1 | ||||||||||||||||||||||||
Commercial real estate | 20,867 | 333 | 3.17 | 14,574 | 189 | 2.58 | 6,293 | 59 | ||||||||||||||||||||||||
Leases | 1,568 | 21 | 2.71 | 1,852 | 25 | 2.73 | (284) | (2) | ||||||||||||||||||||||||
Total commercial loans and leases | 70,182 | 1,100 | 3.12 | 60,764 | 906 | 2.97 | 9,418 | 15 | ||||||||||||||||||||||||
Residential mortgages | 25,987 | 390 | 3.00 | 19,817 | 302 | 3.05 | 6,170 | (5) | ||||||||||||||||||||||||
Home equity | 12,469 | 195 | 3.15 | 11,912 | 187 | 3.16 | 557 | (1) | ||||||||||||||||||||||||
Automobile | 14,352 | 254 | 3.58 | 12,378 | 250 | 4.07 | 1,974 | (49) | ||||||||||||||||||||||||
Education | 13,091 | 268 | 4.13 | 12,534 | 269 | 4.32 | 557 | (19) | ||||||||||||||||||||||||
Other retail | 5,492 | 211 | 7.75 | 5,765 | 205 | 7.19 | (273) | 56 | ||||||||||||||||||||||||
Total retail loans | 71,391 | 1,318 | 3.71 | 62,406 | 1,213 | 3.91 | 8,985 | (20) | ||||||||||||||||||||||||
Total loans and leases | 141,573 | 2,418 | 3.42 | 123,170 | 2,119 | 3.44 | 18,403 | (2) | ||||||||||||||||||||||||
Loans held for sale, at fair value | 2,150 | 33 | 3.11 | 3,535 | 42 | 2.40 | (1,385) | 71 | ||||||||||||||||||||||||
Other loans held for sale | 1,409 | 32 | 4.48 | 348 | 8 | 4.48 | 1,061 | — | ||||||||||||||||||||||||
Interest-earning assets | 184,058 | 2,839 | 3.09 | 165,433 | 2,427 | 2.94 | 18,625 | 15 | ||||||||||||||||||||||||
Noninterest-earning assets | 20,674 | 18,085 | 2,589 | |||||||||||||||||||||||||||||
Total assets | $204,732 | $183,518 | $21,214 | |||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||||||||||
Checking with interest | $34,605 | $20 | 0.12 | % | $26,700 | $11 | 0.09 | % | $7,905 | 3 | ||||||||||||||||||||||
Money market | 48,012 | 35 | 0.15 | 49,465 | 43 | 0.17 | (1,453) | (2) | ||||||||||||||||||||||||
Savings | 25,758 | 14 | 0.11 | 19,348 | 10 | 0.10 | 6,410 | 1 | ||||||||||||||||||||||||
Term | 5,976 | 10 | 0.30 | 7,767 | 28 | 0.73 | (1,791) | (43) | ||||||||||||||||||||||||
Total interest-bearing deposits | 114,351 | 79 | 0.14 | 103,280 | 92 | 0.18 | 11,071 | (4) | ||||||||||||||||||||||||
Short-term borrowed funds | 2,023 | 10 | 1.00 | 109 | — | 0.59 | 1,914 | 41 | ||||||||||||||||||||||||
Long-term borrowed funds | 8,155 | 98 | 2.40 | 7,882 | 94 | 2.38 | 273 | 2 | ||||||||||||||||||||||||
Total borrowed funds | 10,178 | 108 | 2.13 | 7,991 | 94 | 2.36 | 2,187 | (23) | ||||||||||||||||||||||||
Total interest-bearing liabilities | 124,529 | 187 | 0.30 | 111,271 | 186 | 0.34 | 13,258 | (4) | ||||||||||||||||||||||||
Demand deposits | 51,430 | 45,230 | 6,200 | |||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 5,073 | 4,297 | 776 | |||||||||||||||||||||||||||||
Total liabilities | 181,032 | 160,798 | 20,234 | |||||||||||||||||||||||||||||
Stockholders’ equity | 23,700 | 22,720 | 980 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $204,732 | $183,518 | $21,214 | |||||||||||||||||||||||||||||
Interest rate spread | 2.79 | % | 2.60 | % | 19 | |||||||||||||||||||||||||||
Net interest income and net interest margin | $2,652 | 2.91 | % | $2,241 | 2.73 | % | 18 | |||||||||||||||||||||||||
Net interest income and net interest margin, FTE(1) | $2,656 | 2.91 | % | $2,246 | 2.74 | % | 17 | |||||||||||||||||||||||||
Memo: Total deposits (interest-bearing and demand) | $165,781 | $79 | 0.10 | % | $148,510 | $92 | 0.12 | % | $17,271 | (2) | bps |
Table 3: Noninterest Income | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | Change | Percent | 2022 | 2021 | Change | Percent | |||||||||||||||||||||||||||||||||||||||
Capital markets fees | $88 | $91 | ($3) | (3 | %) | $181 | $172 | $9 | 5 | % | |||||||||||||||||||||||||||||||||||||
Service charges and fees | 108 | 100 | 8 | 8 | 206 | 199 | 7 | 4 | |||||||||||||||||||||||||||||||||||||||
Mortgage banking fees | 72 | 85 | (13) | (15) | 141 | 250 | (109) | (44) | |||||||||||||||||||||||||||||||||||||||
Card fees | 71 | 64 | 7 | 11 | 131 | 119 | 12 | 10 | |||||||||||||||||||||||||||||||||||||||
Trust and investment services fees | 66 | 60 | 6 | 10 | 127 | 118 | 9 | 8 | |||||||||||||||||||||||||||||||||||||||
Letter of credit and loan fees | 40 | 38 | 2 | 5 | 78 | 76 | 2 | 3 | |||||||||||||||||||||||||||||||||||||||
Foreign exchange and derivative products | 60 | 28 | 32 | 114 | 111 | 56 | 55 | 98 | |||||||||||||||||||||||||||||||||||||||
Securities gains, net | 1 | 3 | (2) | (67) | 5 | 6 | (1) | (17) | |||||||||||||||||||||||||||||||||||||||
Other income(1) | (12) | 16 | (28) | NM | 12 | 31 | (19) | (61) | |||||||||||||||||||||||||||||||||||||||
Noninterest income | $494 | $485 | $9 | 2 | % | $992 | $1,027 | ($35) | (3 | %) |
Table 4: Noninterest Expense | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | Change | Percent | 2022 | 2021 | Change | Percent | |||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | $683 | $524 | $159 | 30 | % | $1,277 | $1,072 | $205 | 19 | % | |||||||||||||||||||||||||||||||||||||
Equipment and software | 169 | 155 | 14 | 9 | 319 | 307 | 12 | 4 | |||||||||||||||||||||||||||||||||||||||
Outside services | 189 | 137 | 52 | 38 | 358 | 276 | 82 | 30 | |||||||||||||||||||||||||||||||||||||||
Occupancy | 111 | 82 | 29 | 35 | 194 | 170 | 24 | 14 | |||||||||||||||||||||||||||||||||||||||
Other operating expense | 153 | 93 | 60 | 65 | 263 | 184 | 79 | 43 | |||||||||||||||||||||||||||||||||||||||
Noninterest expense | $1,305 | $991 | $314 | 32 | % | $2,411 | $2,009 | $402 | 20 | % |
Table 5: Selected Financial Data for Business Operating Segments | |||||||||||||||||||||||
Consumer Banking | Commercial Banking | ||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net interest income | $995 | $897 | $534 | $419 | |||||||||||||||||||
Noninterest income | 280 | 283 | 221 | 178 | |||||||||||||||||||
Total revenue | 1,275 | 1,180 | 755 | 597 | |||||||||||||||||||
Noninterest expense | 881 | 751 | 308 | 226 | |||||||||||||||||||
Profit before credit losses | 394 | 429 | 447 | 371 | |||||||||||||||||||
Net charge-offs | 39 | 45 | 10 | 34 | |||||||||||||||||||
Income before income tax expense | 355 | 384 | 437 | 337 | |||||||||||||||||||
Income tax expense | 90 | 98 | 96 | 72 | |||||||||||||||||||
Net income | $265 | $286 | $341 | $265 | |||||||||||||||||||
Average Balances: | |||||||||||||||||||||||
Total assets | $88,881 | $75,600 | $78,638 | $57,527 | |||||||||||||||||||
Total loans and leases(1) | 83,248 | 71,389 | 74,172 | 54,758 | |||||||||||||||||||
Deposits | 118,482 | 100,933 | 51,575 | 44,049 | |||||||||||||||||||
Interest-earning assets | 84,026 | 72,308 | 74,422 | 55,143 |
Consumer Banking | Commercial Banking | ||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net interest income | $1,852 | $1,760 | $950 | $840 | |||||||||||||||||||
Noninterest income | 537 | 634 | 434 | 348 | |||||||||||||||||||
Total revenue | 2,389 | 2,394 | 1,384 | 1,188 | |||||||||||||||||||
Noninterest expense | 1,665 | 1,501 | 580 | 453 | |||||||||||||||||||
Profit before credit losses | 724 | 893 | 804 | 735 | |||||||||||||||||||
Net charge-offs | 88 | 104 | 22 | 135 | |||||||||||||||||||
Income before income tax expense | 636 | 789 | 782 | 600 | |||||||||||||||||||
Income tax expense | 162 | 201 | 170 | 124 | |||||||||||||||||||
Net income | $474 | $588 | $612 | $476 | |||||||||||||||||||
Average Balances: | |||||||||||||||||||||||
Total assets | $83,247 | $75,443 | $69,927 | $57,632 | |||||||||||||||||||
Total loans and leases(1) | 78,268 | 70,792 | 66,134 | 54,786 | |||||||||||||||||||
Deposits | 111,610 | 99,067 | 48,067 | 44,012 | |||||||||||||||||||
Interest-earning assets | 79,067 | 71,725 | 66,412 | 55,159 |
Table 6: Amortized Cost and Fair Value of AFS and HTM Securities | |||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
U.S. Treasury and other | $3,455 | $3,408 | $11 | $11 | |||||||||||||||||||
State and political subdivisions | 3 | 3 | 2 | 2 | |||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 21,568 | 20,089 | 24,607 | 24,442 | |||||||||||||||||||
Other/non-agency | 281 | 261 | 397 | 405 | |||||||||||||||||||
Total mortgage-backed securities | 21,849 | 20,350 | 25,004 | 24,847 | |||||||||||||||||||
Collateralized loan obligations | 1,248 | 1,200 | 1,208 | 1,207 | |||||||||||||||||||
Total debt securities available for sale, at fair value | $26,555 | $24,961 | $26,225 | $26,067 | |||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $8,921 | $8,747 | $1,505 | $1,557 | |||||||||||||||||||
Total mortgage-backed securities | 8,921 | 8,747 | 1,505 | 1,557 | |||||||||||||||||||
Asset-backed securities | 646 | 614 | 737 | 732 | |||||||||||||||||||
Total debt securities held to maturity | $9,567 | $9,361 | $2,242 | $2,289 | |||||||||||||||||||
Total debt securities available for sale and held to maturity | $36,122 | $34,322 | $28,467 | $28,356 | |||||||||||||||||||
Equity securities, at cost | $1,162 | $1,162 | $624 | $624 | |||||||||||||||||||
Equity securities, at fair value | 138 | 138 | 109 | 109 | |||||||||||||||||||
Table 7: Composition of Loans and Leases, Excluding LHFS | |||||||||||||||||||||||
(in millions) | June 30, 2022 | December 31, 2021 | Change | Percent | |||||||||||||||||||
Commercial and industrial | $51,801 | $44,500 | $7,301 | 16 | % | ||||||||||||||||||
Commercial real estate | 28,070 | 14,264 | 13,806 | 97 | |||||||||||||||||||
Leases | 1,574 | 1,586 | (12) | (1) | |||||||||||||||||||
Total commercial | 81,445 | 60,350 | 21,095 | 35 | |||||||||||||||||||
Residential mortgages | 29,088 | 22,822 | 6,266 | 27 | |||||||||||||||||||
Home equity | 13,122 | 12,015 | 1,107 | 9 | |||||||||||||||||||
Automobile | 13,868 | 14,549 | (681) | (5) | |||||||||||||||||||
Education | 13,141 | 12,997 | 144 | 1 | |||||||||||||||||||
Other retail | 5,508 | 5,430 | 78 | 1 | |||||||||||||||||||
Total retail | 74,727 | 67,813 | 6,914 | 10 | |||||||||||||||||||
Total loans and leases | $156,172 | $128,163 | $28,009 | 22 | % |
Table 8: ACL and Related Coverage Ratios by Portfolio | |||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
(in millions) | Loans and Leases | Allowance | Coverage | Loans and Leases | Allowance | Coverage | |||||||||||||||||
Allowance for Loan and Lease Losses | |||||||||||||||||||||||
Commercial and industrial | $51,801 | $608 | 1.17 | % | $44,500 | $555 | 1.25 | % | |||||||||||||||
Commercial real estate | 28,070 | 350 | 1.25 | 14,264 | 220 | 1.54 | |||||||||||||||||
Leases | 1,574 | 29 | 1.87 | 1,586 | 46 | 2.92 | |||||||||||||||||
Total commercial | 81,445 | 987 | 1.21 | 60,350 | 821 | 1.36 | |||||||||||||||||
Residential mortgages | 29,088 | 196 | 0.67 | 22,822 | 144 | 0.63 | |||||||||||||||||
Home equity | 13,122 | 96 | 0.73 | 12,015 | 82 | 0.69 | |||||||||||||||||
Automobile | 13,868 | 145 | 1.04 | 14,549 | 154 | 1.05 | |||||||||||||||||
Education | 13,141 | 287 | 2.18 | 12,997 | 308 | 2.37 | |||||||||||||||||
Other retail | 5,508 | 253 | 4.59 | 5,430 | 249 | 4.59 | |||||||||||||||||
Total retail | 74,727 | 977 | 1.31 | 67,813 | 937 | 1.38 | |||||||||||||||||
Total loans and leases | $156,172 | $1,964 | 1.26 | % | $128,163 | $1,758 | 1.37 | % | |||||||||||||||
Allowance for Unfunded Lending Commitments | |||||||||||||||||||||||
Commercial(1) | $166 | 1.42 | % | $153 | 1.61 | % | |||||||||||||||||
Retail(2) | 17 | 1.33 | 23 | 1.42 | |||||||||||||||||||
Total allowance for unfunded lending commitments | 183 | 176 | |||||||||||||||||||||
Allowance for credit losses | $156,172 | $2,147 | 1.37 | % | $128,163 | $1,934 | 1.51 | % |
Table 9: Nonaccrual Loans and Leases | |||||||||||||||||||||||
(dollars in millions) | June 30, 2022 | December 31, 2021 | Change | Percent | |||||||||||||||||||
Commercial and industrial | $202 | $171 | $31 | 18 | % | ||||||||||||||||||
Commercial real estate | 37 | 11 | 26 | 236 | |||||||||||||||||||
Leases | — | 1 | (1) | (100) | |||||||||||||||||||
Total commercial | 239 | 183 | 56 | 31 | |||||||||||||||||||
Residential mortgages(1) | 253 | 201 | 52 | 26 | |||||||||||||||||||
Home equity | 240 | 220 | 20 | 9 | |||||||||||||||||||
Automobile | 50 | 55 | (5) | (9) | |||||||||||||||||||
Education | 31 | 23 | 8 | 35 | |||||||||||||||||||
Other retail | 26 | 20 | 6 | 30 | |||||||||||||||||||
Total retail | 600 | 519 | 81 | 16 | |||||||||||||||||||
Nonaccrual loans and leases | $839 | $702 | $137 | 20 | % | ||||||||||||||||||
Nonaccrual loans and leases to total loans and leases | 0.54 | % | 0.55 | % | (1 | bp) | |||||||||||||||||
Allowance for loan and lease losses to nonaccrual loans and leases | 234 | 251 | (17 | %) | |||||||||||||||||||
Allowance for credit losses to nonaccrual loans and leases | 256 | 276 | (20 | %) |
Table 10: Ratio of Net Charge-Offs to Average Loans and Leases | |||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(dollars in millions) | Net Charge-Offs | Average Balance | Ratio | Net Charge-Offs | Average Balance | Ratio | |||||||||||||||||
Commercial and industrial | $10 | $50,517 | 0.08 | % | $28 | $44,388 | 0.25 | % | |||||||||||||||
Commercial real estate | — | 27,592 | — | — | 14,473 | — | |||||||||||||||||
Leases | — | 1,575 | (0.05) | 13 | 1,792 | 2.97 | |||||||||||||||||
Total commercial | 10 | 79,684 | 0.05 | 41 | 60,653 | 0.27 | |||||||||||||||||
Residential mortgages | (1) | 28,486 | (0.01) | (1) | 20,242 | (0.03) | |||||||||||||||||
Home equity | (9) | 12,811 | (0.27) | (10) | 11,825 | (0.33) | |||||||||||||||||
Automobile | 6 | 14,172 | 0.16 | (2) | 12,526 | (0.04) | |||||||||||||||||
Education | 11 | 13,144 | 0.34 | 13 | 12,632 | 0.40 | |||||||||||||||||
Other retail | 32 | 5,557 | 2.25 | 37 | 5,612 | 2.63 | |||||||||||||||||
Total retail | 39 | 74,170 | 0.21 | 37 | 62,837 | 0.24 | |||||||||||||||||
Total loans and leases | $49 | $153,854 | 0.13 | % | $78 | $123,490 | 0.25 | % |
Table 12: Commercial Loans and Leases by Regulatory Classification | |||||||||||||||||
June 30, 2022 | |||||||||||||||||
Criticized | |||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||
Commercial and industrial | $49,353 | $813 | $1,479 | $156 | $51,801 | ||||||||||||
Commercial real estate | 26,410 | 561 | 1,087 | 12 | 28,070 | ||||||||||||
Leases | 1,557 | 9 | 8 | — | 1,574 | ||||||||||||
Total commercial | $77,320 | $1,383 | $2,574 | $168 | $81,445 |
December 31, 2021 | |||||||||||||||||
Criticized | |||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||
Commercial and industrial | $42,254 | $809 | $1,294 | $143 | $44,500 | ||||||||||||
Commercial real estate | 13,319 | 406 | 528 | 11 | 14,264 | ||||||||||||
Leases | 1,512 | 49 | 24 | 1 | 1,586 | ||||||||||||
Total commercial | $57,085 | $1,264 | $1,846 | $155 | $60,350 |
Table 13: Commercial Loans and Leases by Industry Sector | |||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||
(dollars in millions) | Balance | % of Total Loans and Leases | Balance | % of Total Loans and Leases | |||||||||||||
Finance and insurance | $11,542 | 7 | % | $9,301 | 7 | % | |||||||||||
Health, pharma, and social assistance | 3,136 | 2 | 2,912 | 2 | |||||||||||||
Accommodation and food services | 3,716 | 2 | 3,438 | 3 | |||||||||||||
Professional, scientific, and technical services | 3,009 | 2 | 2,665 | 2 | |||||||||||||
Other manufacturing | 4,481 | 3 | 4,087 | 3 | |||||||||||||
Technology | 4,822 | 3 | 4,220 | 3 | |||||||||||||
Retail trade | 2,779 | 2 | 2,237 | 2 | |||||||||||||
Energy and related | 2,156 | 1 | 2,017 | 2 | |||||||||||||
Wholesale trade | 3,104 | 2 | 2,358 | 2 | |||||||||||||
Arts, entertainment, and recreation | 1,372 | 1 | 1,189 | 1 | |||||||||||||
Other services | 2,192 | 2 | 2,051 | 2 | |||||||||||||
Administrative and waste management services | 1,494 | 1 | 1,396 | 1 | |||||||||||||
Transportation and warehousing | 1,078 | 1 | 1,147 | 1 | |||||||||||||
Consumer products manufacturing | 1,434 | 1 | 1,192 | 1 | |||||||||||||
Automotive | 1,437 | 1 | 1,172 | 1 | |||||||||||||
Educational services | 659 | — | 573 | — | |||||||||||||
Chemicals | 1,161 | 1 | 896 | 1 | |||||||||||||
Real estate and rental and leasing | 1,436 | 1 | 739 | — | |||||||||||||
All other(1) | 506 | — | 123 | — | |||||||||||||
Total commercial and industrial | 51,514 | 33 | 43,713 | 34 | |||||||||||||
Real estate and rental and leasing | 25,774 | 17 | 12,773 | 10 | |||||||||||||
Accommodation and food services | 623 | — | 605 | — | |||||||||||||
Finance and insurance | 798 | 1 | 624 | 1 | |||||||||||||
Other services(2) | 312 | — | 45 | — | |||||||||||||
Health, pharma, and social assistance(2) | 273 | — | 14 | — | |||||||||||||
All other(1) | 290 | — | 203 | — | |||||||||||||
Total commercial real estate | 28,070 | 18 | 14,264 | 11 | |||||||||||||
Total leases | 1,574 | 1 | 1,586 | 1 | |||||||||||||
Total commercial(3) | $81,158 | 52 | % | $59,563 | 46 | % |
Table 14: Retail Loan Portfolio Analysis | |||||||||||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Days Past Due and Accruing | Days Past Due and Accruing | ||||||||||||||||||||||||||||||||||
(dollars in millions) | Current | 30-59 | 60-89 | 90+ | Nonaccrual | Current | 30-59 | 60-89 | 90+ | Nonaccrual | |||||||||||||||||||||||||
Residential mortgages(1) | 96.67 | % | 0.20 | % | 0.12 | % | 2.14 | % | 0.87 | % | 96.03 | % | 0.45 | % | 0.23 | % | 2.41 | % | 0.88 | % | |||||||||||||||
Home equity | 97.81 | 0.27 | 0.09 | — | 1.83 | 97.75 | 0.32 | 0.10 | — | 1.83 | |||||||||||||||||||||||||
Automobile | 98.50 | 0.87 | 0.27 | — | 0.36 | 98.45 | 0.90 | 0.27 | — | 0.38 | |||||||||||||||||||||||||
Education | 99.44 | 0.20 | 0.10 | 0.02 | 0.24 | 99.45 | 0.26 | 0.10 | 0.01 | 0.18 | |||||||||||||||||||||||||
Other retail | 98.20 | 0.64 | 0.44 | 0.25 | 0.47 | 98.18 | 0.74 | 0.42 | 0.29 | 0.37 | |||||||||||||||||||||||||
Total retail | 97.81 | % | 0.37 | % | 0.16 | % | 0.86 | % | 0.80 | % | 97.69 | % | 0.51 | % | 0.20 | % | 0.83 | % | 0.77 | % |
Table 15: Retail Asset Quality Metrics | |||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
Average refreshed FICO for total portfolio | 768 | 768 | |||||||||
CLTV ratio for secured real estate(1) | 53 | % | 56 | % | |||||||
Nonaccrual retail loans as a percentage of total retail | 0.80 | % | 0.77 | % |
December 31, 2021 | |||||||||||||||||||||||||||||
As a % of Accruing TDRs | |||||||||||||||||||||||||||||
(dollars in millions) | Accruing | 30-89 Days Past Due | 90+ Days Past Due | Nonaccrual | Total | ||||||||||||||||||||||||
Commercial and industrial | $196 | — | % | — | % | $74 | $270 | ||||||||||||||||||||||
Commercial real estate | 1 | — | — | 9 | 10 | ||||||||||||||||||||||||
Total commercial | 197 | — | — | 83 | 280 | ||||||||||||||||||||||||
Residential mortgages(1) | 295 | 2.9 | 12.0 | 42 | 337 | ||||||||||||||||||||||||
Home equity | 183 | 0.6 | — | 74 | 257 | ||||||||||||||||||||||||
Automobile | 8 | 0.2 | — | 22 | 30 | ||||||||||||||||||||||||
Education | 112 | 0.5 | 0.1 | 11 | 123 | ||||||||||||||||||||||||
Other retail | 20 | 0.2 | — | 2 | 22 | ||||||||||||||||||||||||
Total retail | 618 | 4.5 | 12.1 | 151 | 769 | ||||||||||||||||||||||||
Total | $815 | 4.5 | % | 12.1 | % | $234 | $1,049 |
Table 17: Composition of Deposits | |||||||||||||||||||||||
(in millions) | June 30, 2022 | December 31, 2021 | Change | Percent | |||||||||||||||||||
Demand | $54,169 | $49,443 | $4,726 | 10 | % | ||||||||||||||||||
Money market | 48,063 | 47,216 | 847 | 2 | |||||||||||||||||||
Checking with interest | 39,611 | 30,409 | 9,202 | 30 | |||||||||||||||||||
Savings | 27,959 | 22,030 | 5,929 | 27 | |||||||||||||||||||
Term | 9,123 | 5,263 | 3,860 | 73 | |||||||||||||||||||
Total deposits | $178,925 | $154,361 | $24,564 | 16 | % |
Table 19: Capital Composition Under the U.S. Basel III Capital Framework | |||||||||||
(in millions) | June 30, 2022 | December 31, 2021 | |||||||||
Total common stockholders' equity | $22,314 | $21,406 | |||||||||
Exclusions: | |||||||||||
Modified CECL transitional amount | 288 | 384 | |||||||||
Net unrealized (gains)/losses recorded in accumulated other comprehensive income (loss), net of tax: | |||||||||||
Debt and equity securities | 2,016 | 156 | |||||||||
Derivatives | 862 | 160 | |||||||||
Unamortized net periodic benefit costs | 340 | 349 | |||||||||
Deductions: | |||||||||||
Goodwill, net of deferred tax liability | (7,690) | (6,733) | |||||||||
Other intangible assets, net of deferred tax liability | (182) | (66) | |||||||||
Deferred tax assets that arise from tax loss and credit carryforwards | (2) | — | |||||||||
Total common equity tier 1 | 17,946 | 15,656 | |||||||||
Qualifying preferred stock | 2,014 | 2,014 | |||||||||
Total tier 1 capital | 19,960 | 17,670 | |||||||||
Qualifying subordinated debt(1) | 1,553 | 1,138 | |||||||||
Allowance for credit losses | 2,147 | 1,934 | |||||||||
Exclusions from tier 2 capital: | |||||||||||
Modified AACL transitional amount | (374) | (498) | |||||||||
Allowance on PCD assets | (102) | — | |||||||||
Adjusted allowance for credit losses | 1,671 | 1,436 | |||||||||
Total capital | $23,184 | $20,244 |
Table 20: CBNA's Capital Ratios Under the U.S. Basel III Standardized Rules | |||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||
(dollars in millions, except ratio data) | Amount | Ratio | Amount | Ratio | |||||||||||||
CET1 capital | $19,865 | 10.6 | % | $17,039 | 10.7 | % | |||||||||||
Tier 1 capital | 19,865 | 10.6 | 17,039 | 10.7 | |||||||||||||
Total capital | 22,661 | 12.1 | 19,600 | 12.4 | |||||||||||||
Tier 1 leverage | 19,865 | 9.2 | 17,039 | 9.4 | |||||||||||||
Risk-weighted assets | 187,359 | 158,550 | |||||||||||||||
Quarterly adjusted average assets | 214,905 | 181,268 |
Table 21: Credit Ratings | |||||||||||||||||
June 30, 2022 | |||||||||||||||||
Moody’s | Standard and Poor’s | Fitch | |||||||||||||||
Citizens Financial Group, Inc.: | |||||||||||||||||
Long-term issuer | NR | BBB+ | BBB+ | ||||||||||||||
Short-term issuer | NR | A-2 | F1 | ||||||||||||||
Subordinated debt | NR | BBB | BBB | ||||||||||||||
Preferred Stock | NR | BB+ | BB | ||||||||||||||
Citizens Bank, National Association: | |||||||||||||||||
Long-term issuer | Baa1 | A- | BBB+ | ||||||||||||||
Short-term issuer | NR | A-2 | F1 | ||||||||||||||
Long-term deposits | A1 | NR | A- | ||||||||||||||
Short-term deposits | P-1 | NR | F1 | ||||||||||||||
NR = Not rated |
Pronouncement | Summary of Guidance | Effects on Financial Statements | ||||||
Troubled Debt Restructurings and Vintage Disclosures Issued March 2022 | •Eliminates the separate recognition and measurement guidance for TDRs. •Requires evaluation of all modifications to borrowers experiencing financial difficulty to determine whether the modification results in a new loan or continuation of an existing loan. •Requires expected credit losses measured under a discounted cash flow method to be determined using an effective interest rate based on the modified (not original) contractual terms of the loan. •Enhances disclosures by creditors for modifications of receivables from borrowers experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay or a term extension. •Requires disclosure of current period gross charge-offs by vintage year for loans and net investments in leases. •Transition is prospective, with an option to adopt the recognition and measurement guidance for TDRs on a modified retrospective basis, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. | •Required effective date: January 1, 2023, with early adoption permitted. We do not intend to early adopt this Pronouncement. •Adoption is not expected to have a material financial impact on our Consolidated Financial Statements, but is expected to have a meaningful impact on our required disclosures in the Notes to our Consolidated Financial Statements. | ||||||
Derivatives and Hedging - Fair Value Hedging - Portfolio Layer Method Issued March 2022 | •Replaces the ‘last-of-layer’ method. •Allows the designation of multiple layers in a closed portfolio of financial assets. •Permits hedging of non-prepayable as well as prepayable assets. •Prohibits the consideration of basis adjustments when measuring expected credit losses of assets in the closed portfolio or determining whether an AFS security is impaired. •The guidance on hedging multiple layers in a closed portfolio is applied prospectively. The guidance on the accounting for fair value basis adjustments is applied on a modified retrospective basis. | •Required effective date: January 1, 2023, with early adoption permitted. We do not intend to early adopt this Pronouncement. •Adoption is not expected to have a material impact on our Consolidated Financial Statements. |
Table 22: Sensitivity of Net Interest Income | |||||||||||
Estimated % Change in Net Interest Income over 12 Months | |||||||||||
Basis points | June 30, 2022 | December 31, 2021 | |||||||||
Instantaneous Change in Interest Rates | |||||||||||
200 | 3.8 | % | 19.4 | % | |||||||
100 | 1.6 | 10.2 | |||||||||
-100 | (2.4) | (8.5) | |||||||||
Gradual Change in Interest Rates | |||||||||||
200 | 2.6 | % | 10.1 | % | |||||||
100 | 1.9 | 5.2 | |||||||||
-100 | (0.9) | (6.0) |
Table 23: Interest Rate Swap Contracts Used to Manage Non-Trading Interest Rate Exposure | |||||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
Weighted Average | Weighted Average | ||||||||||||||||||||||||||||
(dollars in millions) | Notional Amount | Maturity (Years) | Receive Rate | Pay Rate | Notional Amount | Maturity (Years) | Receive Rate | Pay Rate | |||||||||||||||||||||
Cash flow - receive-fixed/pay-variable - conventional ALM(1)(2) | $21,250 | 4.3 | 1.8 | % | 1.9 | % | $16,250 | 3.7 | 1.0 | % | 0.1 | % | |||||||||||||||||
Fair value - receive-fixed/pay-variable - conventional debt | 1,000 | 2.1 | 2.7 | 1.8 | 2,200 | 1.3 | 2.5 | 0.2 | |||||||||||||||||||||
Cash flow - pay-fixed/receive-variable - conventional ALM(1) | — | — | — | — | 3,000 | 2.5 | 0.1 | 1.7 | |||||||||||||||||||||
Fair value - pay-fixed/receive-variable - conventional ALM(1)(2) | 680 | 3.4 | 2.1 | 3.0 | 2,000 | 2.7 | 0.1 | 1.5 | |||||||||||||||||||||
Total portfolio swaps | $22,930 | 4.2 | 1.8 | % | 1.9 | % | $23,450 | 3.3 | 1.0 | % | 0.4 | % | |||||||||||||||||
Table 24: Pre-Tax Gains (Losses) Recorded in the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income on Cash Flow Hedges | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Amount of pre-tax net gains (losses) recognized in OCI | ($244) | $62 | ($905) | $34 | |||||||||||||||||||
Amount of pre-tax net gains (losses) reclassified from OCI into interest income | 12 | 49 | 49 | 95 | |||||||||||||||||||
Amount of pre-tax net gains (losses) reclassified from OCI into interest expense | (1) | (12) | (6) | (24) |
Table 25: Results of Modeled and Non-Modeled Measures for Regulatory Capital Calculations | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | For the Three Months Ended June 30, 2022 | For the Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
Market Risk Category | Period End | Average | High | Low | Period End | Average | High | Low | ||||||||||||||||||||||||||||||||||||||||||
Interest Rate | $1 | $1 | $2 | $1 | $2 | $2 | $5 | $— | ||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Currency Rate | — | — | 4 | — | 1 | — | 1 | — | ||||||||||||||||||||||||||||||||||||||||||
Credit Spread | 3 | 3 | 4 | 2 | 13 | 13 | 17 | 10 | ||||||||||||||||||||||||||||||||||||||||||
Commodity | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
General VaR | 3 | 3 | 4 | 2 | 14 | 12 | 16 | 9 | ||||||||||||||||||||||||||||||||||||||||||
Specific Risk VaR | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total VaR | $3 | $3 | $4 | $2 | $14 | $12 | $17 | $9 | ||||||||||||||||||||||||||||||||||||||||||
Stressed General VaR | $14 | $15 | $20 | $10 | $16 | $16 | $19 | $13 | ||||||||||||||||||||||||||||||||||||||||||
Stressed Specific Risk VaR | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total Stressed VaR | $14 | $15 | $20 | $10 | $16 | $16 | $19 | $13 | ||||||||||||||||||||||||||||||||||||||||||
Market Risk Regulatory Capital | $54 | $89 | ||||||||||||||||||||||||||||||||||||||||||||||||
Specific Risk Not Modeled Add-on | 22 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Market Risk Regulatory Capital | $76 | $108 | ||||||||||||||||||||||||||||||||||||||||||||||||
Market Risk-Weighted Assets | $955 | $1,350 |
Table 26: Reconciliations of Non-GAAP Measures | ||||||||||||||||||||||||||
As of and for the Three Months Ended June 30, | As of and for the Six Months Ended June 30, | |||||||||||||||||||||||||
(in millions, except share, per share and ratio data) | Ref. | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||
Noninterest income, Underlying: | ||||||||||||||||||||||||||
Noninterest income (GAAP) | A | $494 | $485 | $992 | $1,027 | |||||||||||||||||||||
Less: Notable items | (31) | — | (31) | — | ||||||||||||||||||||||
Noninterest income, Underlying (non-GAAP) | B | $525 | $485 | $1,023 | $1,027 | |||||||||||||||||||||
Total revenue, Underlying: | ||||||||||||||||||||||||||
Total revenue (GAAP) | C | $1,999 | $1,609 | $3,644 | $3,268 | |||||||||||||||||||||
Less: Notable items | (31) | — | (31) | — | ||||||||||||||||||||||
Total revenue, Underlying (non-GAAP) | D | $2,030 | $1,609 | $3,675 | $3,268 | |||||||||||||||||||||
Noninterest expense, Underlying: | ||||||||||||||||||||||||||
Noninterest expense (GAAP) | E | $1,305 | $991 | $2,411 | $2,009 | |||||||||||||||||||||
Less: Notable items | 125 | 11 | 173 | 31 | ||||||||||||||||||||||
Noninterest expense, Underlying (non-GAAP) | F | $1,180 | $980 | $2,238 | $1,978 | |||||||||||||||||||||
Pre-provision profit: | ||||||||||||||||||||||||||
Total revenue (GAAP) | C | $1,999 | $1,609 | $3,644 | $3,268 | |||||||||||||||||||||
Less: Noninterest expense (GAAP) | E | 1,305 | 991 | 2,411 | 2,009 | |||||||||||||||||||||
Pre-provision profit (GAAP) | $694 | $618 | $1,233 | $1,259 | ||||||||||||||||||||||
Pre-provision profit, Underlying | ||||||||||||||||||||||||||
Total revenue, Underlying (non-GAAP) | D | $2,030 | $1,609 | $3,675 | $3,268 | |||||||||||||||||||||
Less: Noninterest expense, Underlying (non-GAAP) | F | 1,180 | 980 | 2,238 | 1,978 | |||||||||||||||||||||
Pre-provision profit, Underlying (non-GAAP) | $850 | $629 | $1,437 | $1,290 | ||||||||||||||||||||||
Provision (benefit) for credit losses, Underlying: | ||||||||||||||||||||||||||
Provision (benefit) for credit losses (GAAP) | $216 | ($213) | $219 | ($353) | ||||||||||||||||||||||
Less: Notable items | 145 | — | 169 | — | ||||||||||||||||||||||
Provision (benefit) for credit losses, Underlying (non-GAAP) | $71 | ($213) | $50 | ($353) | ||||||||||||||||||||||
Income before income tax expense, Underlying: | ||||||||||||||||||||||||||
Income before income tax expense (GAAP) | G | $478 | $831 | $1,014 | $1,612 | |||||||||||||||||||||
Less: Income (loss) before income tax expense (benefit) related to notable items | (301) | (11) | (373) | (31) | ||||||||||||||||||||||
Income before income tax expense, Underlying (non-GAAP) | H | $779 | $842 | $1,387 | $1,643 | |||||||||||||||||||||
Income tax expense and effective income tax rate, Underlying: | ||||||||||||||||||||||||||
Income tax expense (GAAP) | I | $114 | $183 | $230 | $353 | |||||||||||||||||||||
Less: Income tax expense (benefit) related to notable items | (70) | (3) | (86) | (8) | ||||||||||||||||||||||
Income tax expense, Underlying (non-GAAP) | J | $184 | $186 | $316 | $361 | |||||||||||||||||||||
Effective income tax rate (GAAP) | I/G | 23.77 | % | 21.96 | % | 22.68 | % | 21.86 | % | |||||||||||||||||
Effective income tax rate, Underlying (non-GAAP) | J/H | 23.69 | 22.01 | 22.82 | 21.93 | |||||||||||||||||||||
Net income, Underlying: | ||||||||||||||||||||||||||
Net income (GAAP) | K | $364 | $648 | $784 | $1,259 | |||||||||||||||||||||
Add: Notable items, net of income tax benefit | 231 | 8 | 287 | 23 | ||||||||||||||||||||||
Net income, Underlying (non-GAAP) | L | $595 | $656 | $1,071 | $1,282 | |||||||||||||||||||||
Net income available to common stockholders, Underlying: | ||||||||||||||||||||||||||
Net income available to common stockholders (GAAP) | M | $332 | $616 | $728 | $1,204 | |||||||||||||||||||||
Add: Notable items, net of income tax benefit | 231 | 8 | 287 | 23 | ||||||||||||||||||||||
Net income available to common stockholders, Underlying (non-GAAP) | N | $563 | $624 | $1,015 | $1,227 | |||||||||||||||||||||
Return on average common equity and return on average common equity, Underlying: | ||||||||||||||||||||||||||
Average common equity (GAAP) | O | $22,383 | $20,833 | $21,686 | $20,723 | |||||||||||||||||||||
Return on average common equity | M/O | 5.95 | % | 11.85 | % | 6.77 | % | 11.71 | % | |||||||||||||||||
Return on average common equity, Underlying (non-GAAP) | N/O | 10.06 | 12.02 | 9.43 | 11.93 |
As of and for the Three Months Ended June 30, | As of and for the Six Months Ended June 30, | |||||||||||||||||||||||||
(in millions, except share, per share and ratio data) | Ref. | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||
Return on average tangible common equity and return on average tangible common equity, Underlying: | ||||||||||||||||||||||||||
Average common equity (GAAP) | O | $22,383 | $20,833 | $21,686 | $20,723 | |||||||||||||||||||||
Less: Average goodwill (GAAP) | 8,015 | 7,050 | 7,588 | 7,050 | ||||||||||||||||||||||
Less: Average other intangibles (GAAP) | 213 | 53 | 147 | 55 | ||||||||||||||||||||||
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 416 | 381 | 400 | 380 | ||||||||||||||||||||||
Average tangible common equity | P | $14,571 | $14,111 | $14,351 | $13,998 | |||||||||||||||||||||
Return on average tangible common equity | M/P | 9.13 | % | 17.50 | % | 10.22 | % | 17.34 | % | |||||||||||||||||
Return on average tangible common equity, Underlying (non-GAAP) | N/P | 15.45 | 17.74 | 14.25 | 17.67 | |||||||||||||||||||||
Return on average total assets and return on average total assets, Underlying: | ||||||||||||||||||||||||||
Average total assets (GAAP) | Q | $220,967 | $184,456 | $204,732 | $183,518 | |||||||||||||||||||||
Return on average total assets | K/Q | 0.66 | % | 1.41 | % | 0.77 | % | 1.38 | % | |||||||||||||||||
Return on average total assets, Underlying (non-GAAP) | L/Q | 1.08 | 1.43 | 1.05 | 1.41 | |||||||||||||||||||||
Return on average total tangible assets and return on average total tangible assets, Underlying: | ||||||||||||||||||||||||||
Average total assets (GAAP) | R | $220,967 | $184,456 | $204,732 | $183,518 | |||||||||||||||||||||
Less: Average goodwill (GAAP) | 8,015 | 7,050 | 7,588 | 7,050 | ||||||||||||||||||||||
Less: Average other intangibles (GAAP) | 213 | 53 | 147 | 55 | ||||||||||||||||||||||
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 416 | 381 | 400 | 380 | ||||||||||||||||||||||
Average tangible assets | S | $213,155 | $177,734 | $197,397 | $176,793 | |||||||||||||||||||||
Return on average total tangible assets | K/S | 0.69 | % | 1.46 | % | 0.80 | % | 1.44 | % | |||||||||||||||||
Return on average total tangible assets, Underlying (non-GAAP) | L/S | 1.12 | 1.48 | 1.09 | 1.46 | |||||||||||||||||||||
Efficiency ratio and efficiency ratio, Underlying: | ||||||||||||||||||||||||||
Efficiency ratio | E/C | 65.27 | % | 61.63 | % | 66.16 | % | 61.49 | % | |||||||||||||||||
Efficiency ratio, Underlying (non-GAAP) | F/D | 58.16 | 60.92 | 60.90 | 60.55 | |||||||||||||||||||||
Noninterest income as a % of total revenue, Underlying: | ||||||||||||||||||||||||||
Noninterest income as a % of total revenue | A/C | 24.72 | % | 30.12 | % | 27.22 | % | 31.42 | % | |||||||||||||||||
Noninterest income as a % of total revenue, Underlying (non-GAAP) | B/D | 25.88 | 30.12 | 27.84 | 31.42 | |||||||||||||||||||||
Operating leverage and operating leverage, Underlying: | ||||||||||||||||||||||||||
Increase (decrease) in total revenue | 24.24 | % | (8.00) | % | 11.51 | % | (4.08) | % | ||||||||||||||||||
Increase in noninterest expense | 31.58 | 1.42 | 19.97 | 0.94 | ||||||||||||||||||||||
Operating leverage | (7.34) | % | (9.42) | % | (8.46) | % | (5.02) | % | ||||||||||||||||||
Increase (decrease) in total revenue, Underlying (non-GAAP) | 26.18 | % | (8.00) | % | 12.46 | % | (4.08) | % | ||||||||||||||||||
Increase in noninterest expense, Underlying (non-GAAP) | 20.47 | 2.18 | 13.11 | 2.05 | ||||||||||||||||||||||
Operating leverage, Underlying (non-GAAP) | 5.71 | % | (10.18) | % | (0.65 | %) | (6.13) | % | ||||||||||||||||||
Tangible book value per common share: | ||||||||||||||||||||||||||
Common shares - at period end (GAAP) | T | 495,650,259 | 426,083,143 | 495,650,259 | 426,083,143 | |||||||||||||||||||||
Common stockholders' equity (GAAP) | $22,314 | $21,185 | $22,314 | $21,185 | ||||||||||||||||||||||
Less: Goodwill (GAAP) | 8,081 | 7,050 | 8,081 | 7,050 | ||||||||||||||||||||||
Less: Other intangible assets (GAAP) | 211 | 52 | 211 | 52 | ||||||||||||||||||||||
Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 422 | 383 | 422 | 383 | ||||||||||||||||||||||
Tangible common equity | U | $14,444 | $14,466 | $14,444 | $14,466 | |||||||||||||||||||||
Tangible book value per common share | U/T | $29.14 | $33.95 | $29.14 | $33.95 | |||||||||||||||||||||
Net income per average common share - basic and diluted and net income per average common share - basic and diluted, Underlying: | ||||||||||||||||||||||||||
Average common shares outstanding - basic (GAAP) | V | 491,497,026 | 425,948,706 | 457,140,258 | 425,951,197 | |||||||||||||||||||||
Average common shares outstanding - diluted (GAAP) | W | 493,296,114 | 427,561,572 | 459,167,747 | 427,668,242 | |||||||||||||||||||||
Net income per average common share - basic (GAAP) | M/V | $0.68 | $1.45 | $1.59 | $2.83 | |||||||||||||||||||||
Net income per average common share - diluted (GAAP) | M/W | 0.67 | 1.44 | 1.58 | 2.81 | |||||||||||||||||||||
Net income per average common share - basic, Underlying (non-GAAP) | N/V | 1.14 | 1.47 | 2.22 | 2.88 | |||||||||||||||||||||
Net income per average common share - diluted, Underlying (non-GAAP) | N/W | 1.14 | 1.46 | 2.21 | 2.87 | |||||||||||||||||||||
Dividend payout ratio and dividend payout ratio, Underlying: | ||||||||||||||||||||||||||
Cash dividends declared and paid per common share | X | $0.39 | $0.39 | $0.78 | $0.78 | |||||||||||||||||||||
Dividend payout ratio | X/(M/V) | 57 | % | 27 | % | 49 | % | 28 | % | |||||||||||||||||
Dividend payout ratio, Underlying (non-GAAP) | X/(N/V) | 34 | 27 | 35 | 27 |
Page | ||||||||
(in millions, except share data) | June 30, 2022 | December 31, 2021 | |||||||||
ASSETS: | |||||||||||
Cash and due from banks | $1,456 | $1,155 | |||||||||
Interest-bearing cash and due from banks | 5,058 | 8,003 | |||||||||
Interest-bearing deposits in banks | 469 | 316 | |||||||||
Debt securities available for sale, at fair value (including $328 and $640 pledged to creditors, respectively)(1) | 24,961 | 26,067 | |||||||||
Debt securities held to maturity (fair value of $9,361 and $2,289 respectively, and including $680 and $77 pledged to creditors, respectively)(1) | 9,567 | 2,242 | |||||||||
Loans held for sale, at fair value | 1,377 | 2,733 | |||||||||
Other loans held for sale | 2,078 | 735 | |||||||||
Loans and leases | 156,172 | 128,163 | |||||||||
Less: Allowance for loan and lease losses | (1,964) | (1,758) | |||||||||
Net loans and leases | 154,208 | 126,405 | |||||||||
Derivative assets | 1,669 | 1,216 | |||||||||
Premises and equipment, net | 885 | 768 | |||||||||
Bank-owned life insurance | 3,207 | 2,843 | |||||||||
Goodwill | 8,081 | 7,116 | |||||||||
Other assets | 13,696 | 8,810 | |||||||||
TOTAL ASSETS | $226,712 | $188,409 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||||||
LIABILITIES: | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $54,169 | $49,443 | |||||||||
Interest-bearing | 124,756 | 104,918 | |||||||||
Total deposits | 178,925 | 154,361 | |||||||||
Short-term borrowed funds | 3,763 | 74 | |||||||||
Derivative liabilities | 1,004 | 197 | |||||||||
Long-term borrowed funds | 14,440 | 6,932 | |||||||||
Other liabilities | 4,252 | 3,425 | |||||||||
TOTAL LIABILITIES | 202,384 | 164,989 | |||||||||
Commitments and Contingencies (refer to Note 13) | |||||||||||
STOCKHOLDERS’ EQUITY: | |||||||||||
Preferred stock: | |||||||||||
$25.00 par value,100,000,000 shares authorized; 2,050,000 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 2,014 | 2,014 | |||||||||
Common stock: | |||||||||||
$0.01 par value, 1,000,000,000 shares authorized; 644,827,702 shares issued and 495,650,259 shares outstanding at June 30, 2022 and 571,259,135 shares issued and 422,137,197 shares outstanding at December 31, 2021 | 6 | 6 | |||||||||
Additional paid-in capital | 22,100 | 19,005 | |||||||||
Retained earnings | 8,346 | 7,978 | |||||||||
Treasury stock, at cost, 149,177,443 and 149,121,938 shares at June 30, 2022 and December 31, 2021, respectively | (4,920) | (4,918) | |||||||||
Accumulated other comprehensive income (loss) | (3,218) | (665) | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 24,328 | 23,420 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $226,712 | $188,409 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions, except share and per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
INTEREST INCOME: | |||||||||||||||||||||||
Interest and fees on loans and leases | $1,370 | $1,058 | $2,418 | $2,119 | |||||||||||||||||||
Interest and fees on loans held for sale | 17 | 24 | 33 | 42 | |||||||||||||||||||
Interest and fees on other loans held for sale | 25 | 2 | 32 | 8 | |||||||||||||||||||
Investment securities | 201 | 124 | 339 | 252 | |||||||||||||||||||
Interest-bearing deposits in banks | 13 | 3 | 17 | 6 | |||||||||||||||||||
Total interest income | 1,626 | 1,211 | 2,839 | 2,427 | |||||||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||||||
Deposits | 54 | 42 | 79 | 92 | |||||||||||||||||||
Short-term borrowed funds | 10 | — | 10 | — | |||||||||||||||||||
Long-term borrowed funds | 57 | 45 | 98 | 94 | |||||||||||||||||||
Total interest expense | 121 | 87 | 187 | 186 | |||||||||||||||||||
Net interest income | 1,505 | 1,124 | 2,652 | 2,241 | |||||||||||||||||||
Provision (benefit) for credit losses | 216 | (213) | 219 | (353) | |||||||||||||||||||
Net interest income after provision (benefit) for credit losses | 1,289 | 1,337 | 2,433 | 2,594 | |||||||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||||||
Capital markets fees | 88 | 91 | 181 | 172 | |||||||||||||||||||
Service charges and fees | 108 | 100 | 206 | 199 | |||||||||||||||||||
Mortgage banking fees | 72 | 85 | 141 | 250 | |||||||||||||||||||
Card fees | 71 | 64 | 131 | 119 | |||||||||||||||||||
Trust and investment services fees | 66 | 60 | 127 | 118 | |||||||||||||||||||
Letter of credit and loan fees | 40 | 38 | 78 | 76 | |||||||||||||||||||
Foreign exchange and derivative products | 60 | 28 | 111 | 56 | |||||||||||||||||||
Securities gains, net | 1 | 3 | 5 | 6 | |||||||||||||||||||
Other income | (12) | 16 | 12 | 31 | |||||||||||||||||||
Total noninterest income | 494 | 485 | 992 | 1,027 | |||||||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||||||
Salaries and employee benefits | 683 | 524 | 1,277 | 1,072 | |||||||||||||||||||
Equipment and software | 169 | 155 | 319 | 307 | |||||||||||||||||||
Outside services | 189 | 137 | 358 | 276 | |||||||||||||||||||
Occupancy | 111 | 82 | 194 | 170 | |||||||||||||||||||
Other operating expense | 153 | 93 | 263 | 184 | |||||||||||||||||||
Total noninterest expense | 1,305 | 991 | 2,411 | 2,009 | |||||||||||||||||||
Income before income tax expense | 478 | 831 | 1,014 | 1,612 | |||||||||||||||||||
Income tax expense | 114 | 183 | 230 | 353 | |||||||||||||||||||
NET INCOME | $364 | $648 | $784 | $1,259 | |||||||||||||||||||
Net income available to common stockholders | $332 | $616 | $728 | $1,204 | |||||||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||
Basic | 491,497,026 | 425,948,706 | 457,140,258 | 425,951,197 | |||||||||||||||||||
Diluted | 493,296,114 | 427,561,572 | 459,167,747 | 427,668,242 | |||||||||||||||||||
Per common share information: | |||||||||||||||||||||||
Basic earnings | $0.68 | $1.45 | $1.59 | $2.83 | |||||||||||||||||||
Diluted earnings | 0.67 | 1.44 | 1.58 | 2.81 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income | $364 | $648 | $784 | $1,259 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Net unrealized derivative instruments gains (losses) arising during the periods, net of income taxes of ($66), $16, ($236) and $9, respectively | (178) | 46 | (669) | 25 | |||||||||||||||||||
Reclassification adjustment for net derivative (gains) losses included in net income, net of income taxes of ($3), ($10), ($11) and ($19), respectively | (8) | (27) | (32) | (52) | |||||||||||||||||||
Net unrealized debt securities gains (losses) arising during the periods, net of income taxes of ($271), $3, ($628) and ($97), respectively | (779) | 10 | (1,856) | (297) | |||||||||||||||||||
Reclassification of net debt securities (gains) losses to net income, net of income taxes of $0, $0, ($1) and ($1), respectively | (1) | (3) | (4) | (5) | |||||||||||||||||||
Reclassification of actuarial loss to net income, net of income taxes of ($2), $1, ($1) and $1, respectively | 6 | 4 | 8 | 8 | |||||||||||||||||||
Total other comprehensive income (loss), net of income taxes | (960) | 30 | (2,553) | (321) | |||||||||||||||||||
Total comprehensive income (loss) | ($596) | $678 | ($1,769) | $938 |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||
(in millions) | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
Balance at April 1, 2021 | 2 | $1,965 | 426 | $6 | $18,945 | $6,866 | ($4,718) | ($411) | $22,653 | |||||||||||||||||||||||
Dividends to common stockholders | — | — | — | — | — | (168) | — | — | (168) | |||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | — | (32) | — | — | (32) | |||||||||||||||||||||||
Preferred stock issued | — | 296 | — | — | — | — | — | — | 296 | |||||||||||||||||||||||
Preferred stock redemption | — | (247) | — | — | — | — | — | — | (247) | |||||||||||||||||||||||
Share-based compensation plans | — | — | — | — | 13 | — | — | — | 13 | |||||||||||||||||||||||
Employee stock purchase plan | — | — | — | — | 6 | — | — | — | 6 | |||||||||||||||||||||||
Total comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 648 | — | — | 648 | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | 30 | 30 | |||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | 648 | — | 30 | 678 | |||||||||||||||||||||||
Balance at June 30, 2021 | 2 | $2,014 | 426 | $6 | $18,964 | $7,314 | ($4,718) | ($381) | $23,199 | |||||||||||||||||||||||
Balance at April 1, 2022 | 2 | $2,014 | 423 | $6 | $19,021 | $8,209 | ($4,918) | ($2,258) | $22,074 | |||||||||||||||||||||||
Dividends to common stockholders | — | — | — | — | — | (195) | — | — | (195) | |||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | — | (32) | — | — | (32) | |||||||||||||||||||||||
Issuance of common stock - business acquisition | — | — | 72 | — | 3,036 | — | — | — | 3,036 | |||||||||||||||||||||||
Treasury stock purchased | — | — | — | — | — | — | (2) | — | (2) | |||||||||||||||||||||||
Share-based compensation plans | — | — | 1 | — | 36 | — | — | — | 36 | |||||||||||||||||||||||
Employee stock purchase plan | — | — | — | — | 7 | — | — | — | 7 | |||||||||||||||||||||||
Total comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 364 | — | — | 364 | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | (960) | (960) | |||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | 364 | — | (960) | (596) | |||||||||||||||||||||||
Balance at June 30, 2022 | 2 | $2,014 | 496 | $6 | $22,100 | $8,346 | ($4,920) | ($3,218) | $24,328 |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||
(in millions) | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
Balance at January 1, 2021 | 2 | $1,965 | 427 | $6 | $18,940 | $6,445 | ($4,623) | ($60) | $22,673 | |||||||||||||||||||||||
Dividends to common stockholders | — | — | — | — | — | (335) | — | — | (335) | |||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | — | (55) | — | — | (55) | |||||||||||||||||||||||
Preferred stock issued | — | 296 | — | — | — | — | — | — | 296 | |||||||||||||||||||||||
Preferred stock redemption | — | (247) | — | — | — | — | — | — | (247) | |||||||||||||||||||||||
Treasury stock purchased | — | — | (2) | — | — | — | (95) | — | (95) | |||||||||||||||||||||||
Share-based compensation plans | — | — | 1 | — | 13 | — | — | — | 13 | |||||||||||||||||||||||
Employee stock purchase plan | — | — | — | — | 11 | — | — | — | 11 | |||||||||||||||||||||||
Total comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,259 | — | — | 1,259 | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | (321) | (321) | |||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | 1,259 | — | (321) | 938 | |||||||||||||||||||||||
Balance at June 30, 2021 | 2 | $2,014 | 426 | $6 | $18,964 | $7,314 | ($4,718) | ($381) | $23,199 | |||||||||||||||||||||||
Balance at January 1, 2022 | 2 | $2,014 | 422 | $6 | $19,005 | $7,978 | ($4,918) | ($665) | $23,420 | |||||||||||||||||||||||
Dividends to common stockholders | — | — | — | — | — | (360) | — | — | (360) | |||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | — | (56) | — | — | (56) | |||||||||||||||||||||||
Issuance of common stock - business acquisition | — | — | 72 | — | 3,036 | — | — | — | 3,036 | |||||||||||||||||||||||
Treasury stock purchased | — | — | — | — | — | — | (2) | — | (2) | |||||||||||||||||||||||
Share-based compensation plans | — | — | 2 | — | 46 | — | — | — | 46 | |||||||||||||||||||||||
Employee stock purchase plan | — | — | — | — | 13 | — | — | — | 13 | |||||||||||||||||||||||
Total comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 784 | — | — | 784 | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | (2,553) | (2,553) | |||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | 784 | — | (2,553) | (1,769) | |||||||||||||||||||||||
Balance at June 30, 2022 | 2 | $2,014 | 496 | $6 | $22,100 | $8,346 | ($4,920) | ($3,218) | $24,328 |
Six Months Ended June 30, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $784 | $1,259 | |||||||||
Adjustments to reconcile net income to net change in cash due to operating activities: | |||||||||||
Provision (benefit) for credit losses | 219 | (353) | |||||||||
Net change in loans held for sale | 1,220 | 322 | |||||||||
Depreciation, amortization and accretion | 327 | 317 | |||||||||
Deferred income taxes | 78 | 199 | |||||||||
Share-based compensation | 52 | 35 | |||||||||
Net gain on sales of assets | (5) | (7) | |||||||||
Net (increase) decrease in other assets | (3,345) | (2,129) | |||||||||
Net increase (decrease) in other liabilities | 348 | 247 | |||||||||
Net change due to operating activities | (322) | (110) | |||||||||
INVESTING ACTIVITIES | |||||||||||
Investment securities: | |||||||||||
Purchases of debt securities available for sale | (8,638) | (6,413) | |||||||||
Proceeds from maturities and paydowns of debt securities available for sale | 2,164 | 4,321 | |||||||||
Proceeds from sales of debt securities available for sale | 1,057 | 104 | |||||||||
Proceeds from maturities and paydowns of debt securities held to maturity | 502 | 530 | |||||||||
Net (increase) decrease in interest-bearing deposits in banks | (153) | (95) | |||||||||
Acquisitions, net of cash acquired(1) | (234) | — | |||||||||
Purchases of loans | (979) | (1,005) | |||||||||
Sales of loans | 417 | 563 | |||||||||
Net (increase) decrease in loans and leases | (6,615) | 939 | |||||||||
Capital expenditures, net | (56) | (32) | |||||||||
Purchase of bank-owned life insurance | (100) | (500) | |||||||||
Other | (727) | (115) | |||||||||
Net change due to investing activities | (13,362) | (1,703) | |||||||||
FINANCING ACTIVITIES | |||||||||||
Net increase (decrease) in deposits | 4,347 | 3,472 | |||||||||
Net increase (decrease) in short-term borrowed funds | 3,674 | (183) | |||||||||
Proceeds from issuance of long-term borrowed funds | 5,217 | — | |||||||||
Repayments of long-term borrowed funds | (1,756) | (1,357) | |||||||||
Treasury stock purchased | (2) | (95) | |||||||||
Net proceeds from issuance of preferred stock | — | 296 | |||||||||
Dividends declared and paid to common stockholders | (360) | (335) | |||||||||
Dividends declared and paid to preferred stockholders | (56) | (55) | |||||||||
Premium paid to exchange debt | — | (1) | |||||||||
Payments of employee tax withholding for share-based compensation | (24) | (21) | |||||||||
Net change due to financing activities | 11,040 | 1,721 | |||||||||
Net change in cash and cash equivalents(2) | (2,644) | (92) | |||||||||
Cash and cash equivalents at beginning of period(2) | 9,158 | 12,733 | |||||||||
Cash and cash equivalents at end of period(2) | $6,514 | $12,641 | |||||||||
Non-cash items: | |||||||||||
Transfer of securities from available for sale to held to maturity | $7,810 | $— | |||||||||
Investors Acquisition: | |||||||||||
Fair value of assets acquired, excluding cash and cash equivalents | 27,171 | — | |||||||||
Goodwill and other intangible assets | 918 | — | |||||||||
Fair value of liabilities assumed | 24,966 | — | |||||||||
Common stock issued | 3,035 | — | |||||||||
Replacement equity awards | 19 | — |
(in millions, except share and per share data) | April 6, 2022 | ||||
Consideration | |||||
CFG common shares issued | 72,148,855 | ||||
CFG share price on April 6, 2022 | $42.08 | ||||
Fair value of consideration for outstanding common stock | $3,036 | ||||
Cash paid | 355 | ||||
Consideration related to equity awards | 19 | ||||
Fair value of merger consideration | 3,410 | ||||
Assets acquired | |||||
Cash and equivalents | 287 | ||||
Investment securities | 3,825 | ||||
Loans held for sale | 2,183 | ||||
Net loans and leases | 20,158 | ||||
Premises and equipment | 123 | ||||
Core deposit intangible and other intangible assets | 119 | ||||
Other assets | 882 | ||||
Total assets acquired | 27,577 | ||||
Liabilities assumed | |||||
Deposits | 20,217 | ||||
Borrowed funds | 4,097 | ||||
Other liabilities | 652 | ||||
Total liabilities assumed | 24,966 | ||||
Less: Net assets | 2,611 | ||||
Goodwill | $799 |
April 6, 2022 | ||||||||
(in millions) | Unpaid Principal Balance | Fair Value | ||||||
Commercial and industrial | $3,021 | $2,902 | ||||||
Commercial real estate | 13,310 | 13,082 | ||||||
Leases | 9 | 9 | ||||||
Total commercial | 16,340 | 15,993 | ||||||
Residential mortgages | 3,949 | 3,887 | ||||||
Home equity | 267 | 274 | ||||||
Other retail | 4 | 4 | ||||||
Total retail | 4,220 | 4,165 | ||||||
Net loans and leases | $20,560 | $20,158 |
(in millions) | April 6, 2022 through June 30, 2022 | ||||
Net interest income | $232 | ||||
Noninterest income | 13 | ||||
Net income | 114 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Net interest income | $1,505 | $1,339 | $2,866 | $2,652 | |||||||||||||
Noninterest income | 525 | 498 | 1,038 | 1,029 | |||||||||||||
Net income(1) | 581 | 737 | 1,083 | 1,169 |
(in millions) | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | |||||||||
Provision for credit losses(1) | $145 | $145 | |||||||||
Salaries and employee benefits(2) | 61 | 61 | |||||||||
Outside services(3) | 29 | 36 | |||||||||
Mark-to-market losses on LHFS portfolio(4) | 31 | 31 | |||||||||
Other operating expense | 2 | 2 | |||||||||
Total acquisition-related costs | $268 | $275 |
(in millions) | April 6, 2022 | ||||
Principal balance | $4,685 | ||||
ALLL at acquisition | (101) | ||||
Non-credit discount | (54) | ||||
Purchase price | $4,530 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
(in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||
U.S. Treasury and other | $3,455 | $1 | ($48) | $3,408 | $11 | $— | $— | $11 | |||||||||||||||||||||
State and political subdivisions | 3 | — | — | 3 | 2 | — | — | 2 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 21,568 | 4 | (1,483) | 20,089 | 24,607 | 210 | (375) | 24,442 | |||||||||||||||||||||
Other/non-agency | 281 | — | (20) | 261 | 397 | 9 | (1) | 405 | |||||||||||||||||||||
Total mortgage-backed securities | 21,849 | 4 | (1,503) | 20,350 | 25,004 | 219 | (376) | 24,847 | |||||||||||||||||||||
Collateralized loan obligations | 1,248 | — | (48) | 1,200 | 1,208 | — | (1) | 1,207 | |||||||||||||||||||||
Total debt securities available for sale, at fair value | $26,555 | $5 | ($1,599) | $24,961 | $26,225 | $219 | ($377) | $26,067 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $8,921 | $25 | ($199) | $8,747 | $1,505 | $52 | $— | $1,557 | |||||||||||||||||||||
Total mortgage-backed securities | 8,921 | 25 | (199) | 8,747 | 1,505 | 52 | — | 1,557 | |||||||||||||||||||||
Asset-backed securities | 646 | — | (32) | 614 | 737 | 2 | (7) | 732 | |||||||||||||||||||||
Total debt securities held to maturity | $9,567 | $25 | ($231) | $9,361 | $2,242 | $54 | ($7) | $2,289 | |||||||||||||||||||||
Equity securities, at cost | $1,162 | $— | $— | $1,162 | $624 | $— | $— | $624 | |||||||||||||||||||||
Equity securities, at fair value | 138 | — | — | 138 | 109 | — | — | 109 |
Distribution of Maturities | |||||||||||||||||
(in millions) | 1 Year or Less | After 1 Year through 5 Years | After 5 Years through 10 Years | After 10 Years | Total | ||||||||||||
Amortized cost: | |||||||||||||||||
U.S. Treasury and other | $11 | $1,911 | $1,533 | $3,455 | |||||||||||||
State and political subdivisions | 1 | — | — | 2 | 3 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | 4 | 584 | 2,879 | 18,101 | 21,568 | ||||||||||||
Other/non-agency | — | — | — | 281 | 281 | ||||||||||||
Collateralized loan obligations | — | — | 25 | 1,223 | 1,248 | ||||||||||||
Total debt securities available for sale | 16 | 2,495 | 4,437 | 19,607 | 26,555 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 8,921 | 8,921 | ||||||||||||
Asset-backed securities | — | — | 646 | — | 646 | ||||||||||||
Total debt securities held to maturity | — | — | 646 | 8,921 | 9,567 | ||||||||||||
Total amortized cost of debt securities | $16 | $2,495 | $5,083 | $28,528 | $36,122 | ||||||||||||
Fair value: | |||||||||||||||||
U.S. Treasury and other | $11 | $1,881 | $1,516 | $— | $3,408 | ||||||||||||
State and political subdivisions | 1 | — | — | 2 | 3 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | 4 | 576 | 2,783 | 16,726 | 20,089 | ||||||||||||
Other/non-agency | — | — | — | 261 | 261 | ||||||||||||
Collateralized loan obligations | — | — | 23 | 1,177 | 1,200 | ||||||||||||
Total debt securities available for sale | 16 | 2,457 | 4,322 | 18,166 | 24,961 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 8,747 | 8,747 | ||||||||||||
Asset-backed securities | — | — | 614 | — | 614 | ||||||||||||
Total debt securities held to maturity | — | — | 614 | 8,747 | 9,361 | ||||||||||||
Total fair value of debt securities | $16 | $2,457 | $4,936 | $26,913 | $34,322 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Gains on sale of securities | $2 | $3 | $9 | $6 | |||||||||||||||||||
Losses on sale of securities | (1) | — | (4) | — | |||||||||||||||||||
Securities gains, net | $1 | $3 | $5 | $6 | |||||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law | $5,763 | $5,351 | $4,816 | $4,782 | |||||||||||||
Pledged as collateral for FHLB borrowing capacity | 245 | 225 | 325 | 333 | |||||||||||||
Pledged against repurchase agreements | — | — | 1 | 1 |
June 30, 2022 | ||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
(dollars in millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||
U.S. Treasury and other | $3,236 | ($48) | $— | $— | $3,236 | ($48) | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 18,048 | (1,214) | 1,498 | (269) | 19,546 | (1,483) | ||||||||||||||||||||
Other/non-agency | 261 | (20) | — | — | 261 | (20) | ||||||||||||||||||||
Total mortgage-backed securities | 18,309 | (1,234) | 1,498 | (269) | 19,807 | (1,503) | ||||||||||||||||||||
Collateralized loan obligations | 1,201 | (48) | — | — | 1,201 | (48) | ||||||||||||||||||||
Total | $22,746 | ($1,330) | $1,498 | ($269) | $24,244 | ($1,599) |
December 31, 2021 | ||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
(dollars in millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $14,131 | ($320) | $1,236 | ($55) | $15,367 | ($375) | ||||||||||||||||||||
Other/non-agency | 123 | (1) | — | — | 123 | (1) | ||||||||||||||||||||
Total mortgage-backed securities | 14,254 | (321) | 1,236 | (55) | 15,490 | (376) | ||||||||||||||||||||
Collateralized loan obligations | 736 | (1) | — | — | 736 | (1) | ||||||||||||||||||||
Total | $14,990 | ($322) | $1,236 | ($55) | $16,226 | ($377) |
(in millions) | June 30, 2022 | December 31, 2021 | |||||||||
Commercial and industrial | $51,801 | $44,500 | |||||||||
Commercial real estate | 28,070 | 14,264 | |||||||||
Leases | 1,574 | 1,586 | |||||||||
Total commercial | 81,445 | 60,350 | |||||||||
Residential mortgages | 29,088 | 22,822 | |||||||||
Home equity | 13,122 | 12,015 | |||||||||
Automobile | 13,868 | 14,549 | |||||||||
Education | 13,141 | 12,997 | |||||||||
Other retail | 5,508 | 5,430 | |||||||||
Total retail | 74,727 | 67,813 | |||||||||
Total loans and leases | $156,172 | $128,163 |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(in millions) | Residential Mortgages(1) | Other retail(3) | Commercial(2) | Total | Residential Mortgages(1) | Commercial(2) | Total | |||||||||||||||||||
Loans held for sale at fair value | $1,278 | $— | $99 | $1,377 | $2,657 | $76 | $2,733 | |||||||||||||||||||
Other loans held for sale | — | 488 | 1,590 | 2,078 | — | 735 | 735 |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | ||||||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | |||||||||||||||||
Allowance for loan and lease losses, beginning of period | $778 | $942 | $1,720 | $821 | $937 | $1,758 | |||||||||||||||||
Allowance on PCD loans and leases at acquisition | 99 | 2 | 101 | 99 | 2 | 101 | |||||||||||||||||
Charge-offs(1) | (13) | (78) | (91) | (27) | (165) | (192) | |||||||||||||||||
Recoveries | 3 | 39 | 42 | 6 | 78 | 84 | |||||||||||||||||
Net charge-offs | (10) | (39) | (49) | (21) | (87) | (108) | |||||||||||||||||
Provision expense (benefit) for loans and leases(2) | 120 | 72 | 192 | 88 | 125 | 213 | |||||||||||||||||
Allowance for loan and lease losses, end of period | 987 | 977 | 1,964 | 987 | 977 | 1,964 | |||||||||||||||||
Allowance for unfunded lending commitments, beginning of period | 147 | 11 | 158 | 153 | 23 | 176 | |||||||||||||||||
Provision expense (benefit) for unfunded lending commitments | 18 | 6 | 24 | 12 | (6) | 6 | |||||||||||||||||
Allowance on PCD unfunded lending commitments at acquisition | 1 | — | 1 | 1 | — | 1 | |||||||||||||||||
Allowance for unfunded lending commitments, end of period | 166 | 17 | 183 | 166 | 17 | 183 | |||||||||||||||||
Total allowance for credit losses, end of period | $1,153 | $994 | $2,147 | $1,153 | $994 | $2,147 |
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | ||||||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | |||||||||||||||||
Allowance for loan and lease losses, beginning of period | $1,146 | $1,048 | $2,194 | $1,233 | $1,210 | $2,443 | |||||||||||||||||
Charge-offs | (45) | (80) | (125) | (179) | (173) | (352) | |||||||||||||||||
Recoveries | 4 | 43 | 47 | 34 | 82 | 116 | |||||||||||||||||
Net charge-offs | (41) | (37) | (78) | (145) | (91) | (236) | |||||||||||||||||
Provision expense (benefit) for loans and leases | (152) | (17) | (169) | (135) | (125) | (260) | |||||||||||||||||
Allowance for loan and lease losses, end of period | 953 | 994 | 1,947 | 953 | 994 | 1,947 | |||||||||||||||||
Allowance for unfunded lending commitments, beginning of period | 165 | 13 | 178 | 186 | 41 | 227 | |||||||||||||||||
Provision expense (benefit) for unfunded lending commitments | (44) | — | (44) | (65) | (28) | (93) | |||||||||||||||||
Allowance for unfunded lending commitments, end of period | 121 | 13 | 134 | 121 | 13 | 134 | |||||||||||||||||
Total allowance for credit losses, end of period | $1,074 | $1,007 | $2,081 | $1,074 | $1,007 | $2,081 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior to 2018 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $4,730 | $9,806 | $2,974 | $2,830 | $1,972 | $2,845 | $24,106 | $90 | $49,353 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 4 | 127 | 66 | 113 | 17 | 116 | 369 | 1 | 813 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 3 | 142 | 112 | 332 | 129 | 290 | 458 | 13 | 1,479 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 8 | 5 | 14 | 4 | 9 | 24 | 89 | 3 | 156 | |||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 4,745 | 10,080 | 3,166 | 3,279 | 2,127 | 3,275 | 25,022 | 107 | 51,801 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 3,193 | 6,487 | 3,867 | 3,638 | 2,602 | 4,449 | 2,171 | 3 | 26,410 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | — | 21 | 75 | 268 | 102 | 93 | 2 | — | 561 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 91 | 23 | — | 96 | 239 | 629 | 9 | — | 1,087 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | 1 | 9 | — | — | 2 | — | — | 12 | |||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 3,284 | 6,532 | 3,951 | 4,002 | 2,943 | 5,173 | 2,182 | 3 | 28,070 | |||||||||||||||||||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 114 | 410 | 281 | 125 | 147 | 480 | — | — | 1,557 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | — | 3 | 2 | — | 3 | 1 | — | — | 9 | |||||||||||||||||||||||||||||||||||||||||
Substandard | — | 1 | 3 | 3 | 1 | — | — | — | 8 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Total leases | 114 | 414 | 286 | 128 | 151 | 481 | — | — | 1,574 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass(1) | 8,037 | 16,703 | 7,122 | 6,593 | 4,721 | 7,774 | 26,277 | 93 | 77,320 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 4 | 151 | 143 | 381 | 122 | 210 | 371 | 1 | 1,383 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 94 | 166 | 115 | 431 | 369 | 919 | 467 | 13 | 2,574 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 8 | 6 | 23 | 4 | 9 | 26 | 89 | 3 | 168 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | $8,143 | $17,026 | $7,403 | $7,409 | $5,221 | $8,929 | $27,204 | $110 | $81,445 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior to 2017 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $10,218 | $3,336 | $3,599 | $2,284 | $1,426 | $1,863 | $19,406 | $122 | $42,254 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 47 | 71 | 155 | 114 | 41 | 64 | 316 | 1 | 809 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 97 | 112 | 215 | 81 | 50 | 201 | 521 | 17 | 1,294 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 1 | 9 | 9 | 22 | 10 | 16 | 74 | 2 | 143 | |||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 10,363 | 3,528 | 3,978 | 2,501 | 1,527 | 2,144 | 20,317 | 142 | 44,500 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 2,766 | 2,417 | 3,181 | 1,756 | 626 | 1,119 | 1,451 | 3 | 13,319 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 45 | 42 | 113 | 100 | 27 | 79 | — | — | 406 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 27 | — | 88 | 267 | 78 | 59 | 9 | — | 528 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 1 | 9 | — | — | — | 1 | — | — | 11 | |||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 2,839 | 2,468 | 3,382 | 2,123 | 731 | 1,258 | 1,460 | 3 | 14,264 | |||||||||||||||||||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 447 | 262 | 134 | 144 | 66 | 459 | — | — | 1,512 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 10 | 15 | — | 5 | 3 | 16 | — | — | 49 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 1 | 16 | 5 | 2 | — | — | — | — | 24 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||||||||||
Total leases | 458 | 293 | 139 | 151 | 69 | 476 | — | — | 1,586 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass(1) | 13,431 | 6,015 | 6,914 | 4,184 | 2,118 | 3,441 | 20,857 | 125 | 57,085 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 102 | 128 | 268 | 219 | 71 | 159 | 316 | 1 | 1,264 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 125 | 128 | 308 | 350 | 128 | 260 | 530 | 17 | 1,846 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 2 | 18 | 9 | 22 | 10 | 18 | 74 | 2 | 155 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | $13,660 | $6,289 | $7,499 | $4,775 | $2,327 | $3,878 | $21,777 | $145 | $60,350 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior to 2018 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | $953 | $4,170 | $3,049 | $1,156 | $343 | $3,023 | $— | $— | $12,694 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 1,987 | 3,723 | 1,936 | 738 | 315 | 2,049 | — | — | 10,748 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 525 | 1,037 | 558 | 313 | 169 | 1,005 | — | — | 3,607 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 59 | 149 | 135 | 185 | 108 | 463 | — | — | 1,099 | |||||||||||||||||||||||||||||||||||||||||
<620 | 5 | 51 | 77 | 170 | 151 | 456 | — | — | 910 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | — | 3 | 2 | 4 | 4 | 17 | — | — | 30 | |||||||||||||||||||||||||||||||||||||||||
Total residential mortgages | 3,529 | 9,133 | 5,757 | 2,566 | 1,090 | 7,013 | — | — | 29,088 | |||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 2 | 3 | 2 | 6 | 6 | 122 | 4,714 | 301 | 5,156 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 4 | 5 | 2 | 5 | 6 | 117 | 4,017 | 291 | 4,447 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 1 | 1 | 2 | 7 | 14 | 137 | 1,940 | 245 | 2,347 | |||||||||||||||||||||||||||||||||||||||||
620-679 | — | — | 2 | 9 | 17 | 110 | 448 | 162 | 748 | |||||||||||||||||||||||||||||||||||||||||
<620 | — | — | 2 | 14 | 19 | 95 | 120 | 174 | 424 | |||||||||||||||||||||||||||||||||||||||||
Total home equity | 7 | 9 | 10 | 41 | 62 | 581 | 11,239 | 1,173 | 13,122 | |||||||||||||||||||||||||||||||||||||||||
Automobile | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 505 | 1,587 | 707 | 423 | 178 | 112 | — | — | 3,512 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 760 | 1,984 | 816 | 463 | 198 | 115 | — | — | 4,336 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 699 | 1,537 | 610 | 352 | 157 | 89 | — | — | 3,444 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 412 | 787 | 273 | 183 | 90 | 57 | — | — | 1,802 | |||||||||||||||||||||||||||||||||||||||||
<620 | 86 | 289 | 137 | 128 | 76 | 55 | — | — | 771 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 3 | — | — | — | — | — | — | — | 3 | |||||||||||||||||||||||||||||||||||||||||
Total automobile | 2,465 | 6,184 | 2,543 | 1,549 | 699 | 428 | — | — | 13,868 | |||||||||||||||||||||||||||||||||||||||||
Education | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 288 | 1,703 | 1,623 | 751 | 450 | 1,201 | — | — | 6,016 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 474 | 1,563 | 1,299 | 553 | 299 | 683 | — | — | 4,871 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 254 | 489 | 395 | 190 | 118 | 316 | — | — | 1,762 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 26 | 74 | 61 | 38 | 30 | 114 | — | — | 343 | |||||||||||||||||||||||||||||||||||||||||
<620 | 2 | 11 | 15 | 12 | 11 | 48 | — | — | 99 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 2 | — | — | — | — | 48 | — | — | 50 | |||||||||||||||||||||||||||||||||||||||||
Total education | 1,046 | 3,840 | 3,393 | 1,544 | 908 | 2,410 | — | — | 13,141 | |||||||||||||||||||||||||||||||||||||||||
Other retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 89 | 192 | 147 | 81 | 41 | 41 | 440 | — | 1,031 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 128 | 245 | 196 | 109 | 51 | 39 | 891 | 1 | 1,660 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 119 | 184 | 161 | 81 | 35 | 22 | 864 | 4 | 1,470 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 79 | 104 | 79 | 28 | 13 | 7 | 385 | 4 | 699 | |||||||||||||||||||||||||||||||||||||||||
<620 | 20 | 35 | 30 | 12 | 6 | 3 | 142 | 6 | 254 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 5 | 2 | 4 | — | — | — | 382 | 1 | 394 | |||||||||||||||||||||||||||||||||||||||||
Total other retail | 440 | 762 | 617 | 311 | 146 | 112 | 3,104 | 16 | 5,508 | |||||||||||||||||||||||||||||||||||||||||
Total retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 1,837 | 7,655 | 5,528 | 2,417 | 1,018 | 4,499 | 5,154 | 301 | 28,409 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 3,353 | 7,520 | 4,249 | 1,868 | 869 | 3,003 | 4,908 | 292 | 26,062 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 1,598 | 3,248 | 1,726 | 943 | 493 | 1,569 | 2,804 | 249 | 12,630 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 576 | 1,114 | 550 | 443 | 258 | 751 | 833 | 166 | 4,691 | |||||||||||||||||||||||||||||||||||||||||
<620 | 113 | 386 | 261 | 336 | 263 | 657 | 262 | 180 | 2,458 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 10 | 5 | 6 | 4 | 4 | 65 | 382 | 1 | 477 | |||||||||||||||||||||||||||||||||||||||||
Total retail | $7,487 | $19,928 | $12,320 | $6,011 | $2,905 | $10,544 | $14,343 | $1,189 | $74,727 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior to 2017 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | $2,431 | $3,017 | $1,230 | $342 | $672 | $2,139 | $— | $— | $9,831 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 4,015 | 1,876 | 746 | 246 | 360 | 1,086 | — | — | 8,329 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 1,116 | 572 | 335 | 152 | 172 | 585 | — | — | 2,932 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 111 | 130 | 161 | 93 | 107 | 276 | — | — | 878 | |||||||||||||||||||||||||||||||||||||||||
<620 | 24 | 66 | 164 | 162 | 157 | 257 | — | — | 830 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 3 | 8 | 1 | — | — | 10 | — | — | 22 | |||||||||||||||||||||||||||||||||||||||||
Total residential mortgages | 7,700 | 5,669 | 2,637 | 995 | 1,468 | 4,353 | — | — | 22,822 | |||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | — | 2 | 5 | 5 | 3 | 134 | 4,394 | 281 | 4,824 | |||||||||||||||||||||||||||||||||||||||||
740-799 | — | 1 | 4 | 5 | 7 | 122 | 3,514 | 278 | 3,931 | |||||||||||||||||||||||||||||||||||||||||
680-739 | — | 1 | 7 | 14 | 16 | 134 | 1,738 | 243 | 2,153 | |||||||||||||||||||||||||||||||||||||||||
620-679 | — | 3 | 11 | 19 | 17 | 112 | 363 | 167 | 692 | |||||||||||||||||||||||||||||||||||||||||
<620 | — | 2 | 16 | 23 | 20 | 87 | 91 | 176 | 415 | |||||||||||||||||||||||||||||||||||||||||
Total home equity | — | 9 | 43 | 66 | 63 | 589 | 10,100 | 1,145 | 12,015 | |||||||||||||||||||||||||||||||||||||||||
Automobile | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 1,887 | 829 | 538 | 244 | 148 | 57 | — | — | 3,703 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 2,418 | 1,051 | 615 | 288 | 156 | 58 | — | — | 4,586 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 1,968 | 827 | 500 | 234 | 123 | 48 | — | — | 3,700 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 1,029 | 378 | 257 | 131 | 72 | 32 | — | — | 1,899 | |||||||||||||||||||||||||||||||||||||||||
<620 | 164 | 142 | 155 | 103 | 62 | 32 | — | — | 658 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 3 | — | — | — | — | — | — | — | 3 | |||||||||||||||||||||||||||||||||||||||||
Total automobile | 7,469 | 3,227 | 2,065 | 1,000 | 561 | 227 | — | — | 14,549 | |||||||||||||||||||||||||||||||||||||||||
Education | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 1,361 | 1,771 | 840 | 514 | 470 | 880 | — | — | 5,836 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 1,555 | 1,577 | 672 | 371 | 275 | 514 | — | — | 4,964 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 512 | 474 | 229 | 140 | 107 | 262 | — | — | 1,724 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 50 | 66 | 45 | 34 | 28 | 99 | — | — | 322 | |||||||||||||||||||||||||||||||||||||||||
<620 | 5 | 11 | 12 | 12 | 10 | 45 | — | — | 95 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 4 | — | — | — | — | 52 | — | — | 56 | |||||||||||||||||||||||||||||||||||||||||
Total education | 3,487 | 3,899 | 1,798 | 1,071 | 890 | 1,852 | — | — | 12,997 | |||||||||||||||||||||||||||||||||||||||||
Other retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 233 | 214 | 122 | 65 | 30 | 29 | 386 | — | 1,079 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 323 | 296 | 173 | 84 | 38 | 26 | 764 | 2 | 1,706 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 246 | 240 | 122 | 56 | 23 | 12 | 709 | 5 | 1,413 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 149 | 119 | 43 | 19 | 7 | 4 | 299 | 5 | 645 | |||||||||||||||||||||||||||||||||||||||||
<620 | 32 | 37 | 17 | 10 | 3 | 2 | 100 | 6 | 207 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 44 | 5 | — | — | — | — | 330 | 1 | 380 | |||||||||||||||||||||||||||||||||||||||||
Total other retail | 1,027 | 911 | 477 | 234 | 101 | 73 | 2,588 | 19 | 5,430 | |||||||||||||||||||||||||||||||||||||||||
Total retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 5,912 | 5,833 | 2,735 | 1,170 | 1,323 | 3,239 | 4,780 | 281 | 25,273 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 8,311 | 4,801 | 2,210 | 994 | 836 | 1,806 | 4,278 | 280 | 23,516 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 3,842 | 2,114 | 1,193 | 596 | 441 | 1,041 | 2,447 | 248 | 11,922 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 1,339 | 696 | 517 | 296 | 231 | 523 | 662 | 172 | 4,436 | |||||||||||||||||||||||||||||||||||||||||
<620 | 225 | 258 | 364 | 310 | 252 | 423 | 191 | 182 | 2,205 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 54 | 13 | 1 | — | — | 62 | 330 | 1 | 461 | |||||||||||||||||||||||||||||||||||||||||
Total retail | $19,683 | $13,715 | $7,020 | $3,366 | $3,083 | $7,094 | $12,688 | $1,164 | $67,813 |
June 30, 2022 | |||||||||||||||||||||||
Days Past Due and Accruing | |||||||||||||||||||||||
(in millions) | Current | 30-59 | 60-89 | 90+ | Nonaccrual | Total | Nonaccrual with no related ACL | ||||||||||||||||
Commercial and industrial | $51,514 | $37 | $9 | $39 | $202 | $51,801 | $24 | ||||||||||||||||
Commercial real estate | 27,827 | 172 | 1 | 33 | 37 | 28,070 | 7 | ||||||||||||||||
Leases | 1,554 | 17 | 3 | — | — | 1,574 | — | ||||||||||||||||
Total commercial | 80,895 | 226 | 13 | 72 | 239 | 81,445 | 31 | ||||||||||||||||
Residential mortgages(1) | 28,119 | 59 | 34 | 623 | 253 | 29,088 | 208 | ||||||||||||||||
Home equity | 12,834 | 36 | 12 | — | 240 | 13,122 | 186 | ||||||||||||||||
Automobile | 13,660 | 120 | 38 | — | 50 | 13,868 | 9 | ||||||||||||||||
Education | 13,068 | 26 | 13 | 3 | 31 | 13,141 | 3 | ||||||||||||||||
Other retail | 5,409 | 35 | 24 | 14 | 26 | 5,508 | 1 | ||||||||||||||||
Total retail | 73,090 | 276 | 121 | 640 | 600 | 74,727 | 407 | ||||||||||||||||
Total | $153,985 | $502 | $134 | $712 | $839 | $156,172 | $438 |
December 31, 2021 | |||||||||||||||||||||||
Days Past Due and Accruing | |||||||||||||||||||||||
(in millions) | Current | 30-59 | 60-89 | 90+ | Nonaccrual | Total | Nonaccrual with no related ACL | ||||||||||||||||
Commercial and industrial | $44,247 | $47 | $26 | $9 | $171 | $44,500 | $36 | ||||||||||||||||
Commercial real estate | 14,247 | 6 | — | — | 11 | 14,264 | 1 | ||||||||||||||||
Leases | 1,570 | 14 | 1 | — | 1 | 1,586 | — | ||||||||||||||||
Total commercial | 60,064 | 67 | 27 | 9 | 183 | 60,350 | 37 | ||||||||||||||||
Residential mortgages(1) | 21,918 | 102 | 52 | 549 | 201 | 22,822 | 137 | ||||||||||||||||
Home equity | 11,745 | 38 | 12 | — | 220 | 12,015 | 186 | ||||||||||||||||
Automobile | 14,324 | 131 | 39 | — | 55 | 14,549 | 22 | ||||||||||||||||
Education | 12,926 | 34 | 13 | 1 | 23 | 12,997 | 2 | ||||||||||||||||
Other retail | 5,331 | 40 | 23 | 16 | 20 | 5,430 | 2 | ||||||||||||||||
Total retail | 66,244 | 345 | 139 | 566 | 519 | 67,813 | 349 | ||||||||||||||||
Total | $126,308 | $412 | $166 | $575 | $702 | $128,163 | $386 |
Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||
Amortized Cost Basis | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Interest Rate Reduction(1) | Maturity Extension(2) | Other(3) | Total | ||||||||||||||||||||||||
Commercial and industrial | 9 | $— | $— | $27 | $27 | ||||||||||||||||||||||||
Total commercial | 9 | — | — | 27 | 27 | ||||||||||||||||||||||||
Residential mortgages | 290 | 16 | 39 | 21 | 76 | ||||||||||||||||||||||||
Home equity | 72 | — | 1 | 5 | 6 | ||||||||||||||||||||||||
Automobile | 147 | — | — | 1 | 1 | ||||||||||||||||||||||||
Education | 93 | — | — | 5 | 5 | ||||||||||||||||||||||||
Other retail | 567 | 3 | — | 1 | 4 | ||||||||||||||||||||||||
Total retail | 1,169 | 19 | 40 | 33 | 92 | ||||||||||||||||||||||||
Total | 1,178 | $19 | $40 | $60 | $119 |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
Amortized Cost Basis | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Interest Rate Reduction(1) | Maturity Extension(2) | Other(3) | Total | ||||||||||||||||||||||||
Commercial and industrial | 15 | $— | $3 | $54 | $57 | ||||||||||||||||||||||||
Total commercial | 15 | — | 3 | 54 | 57 | ||||||||||||||||||||||||
Residential mortgages | 671 | 8 | 120 | 44 | 172 | ||||||||||||||||||||||||
Home equity | 102 | 1 | 3 | 3 | 7 | ||||||||||||||||||||||||
Automobile | 379 | 1 | — | 5 | 6 | ||||||||||||||||||||||||
Education | 265 | — | — | 9 | 9 | ||||||||||||||||||||||||
Other retail | 585 | 1 | — | — | 1 | ||||||||||||||||||||||||
Total retail | 2,002 | 11 | 123 | 61 | 195 | ||||||||||||||||||||||||
Total | 2,017 | $11 | $126 | $115 | $252 |
Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||
Amortized Cost Basis | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Interest Rate Reduction(1) | Maturity Extension(2) | Other(3) | Total | ||||||||||||||||||||||||
Commercial and industrial | 19 | $— | $24 | $34 | $58 | ||||||||||||||||||||||||
Total commercial | 19 | — | 24 | 34 | 58 | ||||||||||||||||||||||||
Residential mortgages | 1,471 | 38 | 53 | 235 | 326 | ||||||||||||||||||||||||
Home equity | 250 | 2 | 1 | 14 | 17 | ||||||||||||||||||||||||
Automobile | 312 | 1 | — | 2 | 3 | ||||||||||||||||||||||||
Education | 236 | — | — | 11 | 11 | ||||||||||||||||||||||||
Other retail | 1,088 | 5 | — | 1 | 6 | ||||||||||||||||||||||||
Total retail | 3,357 | 46 | 54 | 263 | 363 | ||||||||||||||||||||||||
Total | 3,376 | $46 | $78 | $297 | $421 |
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
Amortized Cost Basis | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Interest Rate Reduction(1) | Maturity Extension(2) | Other(3) | Total | ||||||||||||||||||||||||
Commercial and industrial | 22 | $— | $6 | $54 | $60 | ||||||||||||||||||||||||
Total commercial | 22 | — | 6 | 54 | 60 | ||||||||||||||||||||||||
Residential mortgages | 713 | 12 | 126 | 47 | 185 | ||||||||||||||||||||||||
Home equity | 249 | 3 | 8 | 7 | 18 | ||||||||||||||||||||||||
Automobile | 1,048 | 1 | — | 13 | 14 | ||||||||||||||||||||||||
Education | 412 | — | — | 13 | 13 | ||||||||||||||||||||||||
Other retail | 1,215 | 4 | — | 1 | 5 | ||||||||||||||||||||||||
Total retail | 3,637 | 20 | 134 | 81 | 235 | ||||||||||||||||||||||||
Total | 3,659 | $20 | $140 | $135 | $295 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Commercial TDRs | $— | $1 | $— | $23 | |||||||||||||||||||
Retail TDRs(1) | 181 | 14 | 196 | 29 | |||||||||||||||||||
Total | $181 | $15 | $196 | $52 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Cash proceeds from residential mortgage loans sold with servicing retained | $4,576 | $10,540 | $11,158 | $19,577 | |||||||||||||||||||
Repurchased residential mortgages(1) | — | 1,169 | 87 | 1,169 | |||||||||||||||||||
Gain on sales(2) | 23 | 85 | 53 | 225 | |||||||||||||||||||
Contractually specified servicing, late and other ancillary fees(2) | 71 | 60 | 138 | 118 |
As of and for the Three Months Ended June 30, | As of and for the Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Fair value as of beginning of the period | $1,241 | $893 | $1,029 | $658 | |||||||||||||||||||
Amounts capitalized | 79 | 122 | 174 | 209 | |||||||||||||||||||
Servicing rights acquired | 16 | — | 16 | — | |||||||||||||||||||
Changes in unpaid principal balance during the period(1) | (32) | (47) | (71) | (105) | |||||||||||||||||||
Changes in fair value during the period(2) | 107 | (66) | 263 | 140 | |||||||||||||||||||
Fair value at end of the period | $1,411 | $902 | $1,411 | $902 |
(dollars in millions) | June 30, 2022 | December 31, 2021 | |||||||||
Fair value | $1,411 | $1,029 | |||||||||
Weighted average life (years) | 8.5 | 6.4 | |||||||||
Weighted average constant prepayment rate | 7.6% | 10.7% | |||||||||
Decline in fair value from 10% adverse change | $24 | $45 | |||||||||
Decline in fair value from 20% adverse change | $59 | $87 | |||||||||
Weighted average option adjusted spread | 615 bps | 596 bps | |||||||||
Decline in fair value from 10% adverse change | $39 | $25 | |||||||||
Decline in fair value from 20% adverse change | $77 | $50 |
(in millions) | June 30, 2022 | December 31, 2021 | |||||||||
Education | $661 | $761 | |||||||||
Commercial and industrial(1) | 89 | 80 |
(in millions) | Consumer Banking | Commercial Banking | Total | ||||||||||||||
Balance at December 31, 2021 | $2,258 | $4,858 | $7,116 | ||||||||||||||
Business acquisitions | 319 | 646 | 965 | ||||||||||||||
Balance at June 30, 2022 | $2,577 | $5,504 | $8,081 |
(in millions) | Total | ||||
2022 | $24 | ||||
2023 | 40 | ||||
2024 | 34 | ||||
2025 | 31 | ||||
2026 | 26 | ||||
2027 | 21 |
(in millions) | June 30, 2022 | December 31, 2021 | |||||||||
Lending to special purpose entities included in loans and leases | $3,341 | $2,646 | |||||||||
LIHTC investment included in other assets | 2,175 | 1,978 | |||||||||
LIHTC unfunded commitments included in other liabilities | 1,045 | 927 | |||||||||
Asset-backed investments included in HTM securities | 646 | 737 | |||||||||
Renewable energy investments included in other assets | 401 | 429 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Tax credits included in income tax expense | $60 | $51 | $121 | $102 | |||||||||||||||||||
Other tax benefits included in income tax expense | 16 | 13 | 31 | 25 | |||||||||||||||||||
Total tax benefits included in income tax expense | 76 | 64 | 152 | 127 | |||||||||||||||||||
Less: Amortization included in income tax expense | 65 | 53 | 129 | 106 | |||||||||||||||||||
Net benefit from affordable housing tax credit investments included in income tax expense | $11 | $11 | $23 | $21 |
(in millions) | June 30, 2022 | December 31, 2021 | |||||||||
Parent Company: | |||||||||||
4.150% fixed-rate subordinated debt, due September 2022 | $168 | $168 | |||||||||
3.750% fixed-rate subordinated debt, due July 2024 | 90 | 90 | |||||||||
4.023% fixed-rate subordinated debt, due October 2024 | 17 | 17 | |||||||||
4.350% fixed-rate subordinated debt, due August 2025 | 133 | 133 | |||||||||
4.300% fixed-rate subordinated debt, due December 2025 | 336 | 336 | |||||||||
2.850% fixed-rate senior unsecured notes, due July 2026 | 498 | 498 | |||||||||
6.500% fixed to floating rate subordinated debt, due October 2027(1) | 14 | — | |||||||||
2.500% fixed-rate senior unsecured notes, due February 2030 | 298 | 298 | |||||||||
3.250% fixed-rate senior unsecured notes, due April 2030 | 745 | 745 | |||||||||
3.750% fixed-rate reset subordinated debt, due February 2031 | 69 | 69 | |||||||||
4.300% fixed-rate reset subordinated debt, due February 2031 | 135 | 135 | |||||||||
4.350% fixed-rate reset subordinated debt, due February 2031 | 60 | 60 | |||||||||
2.638% fixed-rate subordinated debt, due September 2032 | 553 | 550 | |||||||||
5.641% fixed-rate reset subordinated debt, due May 2037 | 398 | — | |||||||||
CBNA’s Global Note Program: | |||||||||||
3.250% senior unsecured notes, due February 2022 | — | 700 | |||||||||
0.845% floating-rate senior unsecured notes, due February 2022(2) | — | 300 | |||||||||
1.318% floating-rate senior unsecured notes, due May 2022(2) | — | 250 | |||||||||
2.650% senior unsecured notes, due May 2022 | — | 503 | |||||||||
3.700% senior unsecured notes, due March 2023 | 499 | 512 | |||||||||
3.182% floating-rate senior unsecured notes, due March 2023(2) | 250 | 250 | |||||||||
2.250% senior unsecured notes, due April 2025 | 747 | 746 | |||||||||
4.119% fixed/floating-rate senior unsecured notes, due May 2025 | 648 | — | |||||||||
3.750% senior unsecured notes, due February 2026 | 491 | 524 | |||||||||
Additional Borrowings by CBNA and Other Subsidiaries: | |||||||||||
Federal Home Loan Bank advances, 1.695% weighted average rate, due through 2041 | 8,269 | 19 | |||||||||
Other | 22 | 29 | |||||||||
Total long-term borrowed funds | $14,440 | $6,932 |
(in millions) | Parent Company | CBNA and Other Subsidiaries | Consolidated | ||||||||
Year | |||||||||||
2022 | $168 | $4 | $172 | ||||||||
2023 | — | 9,002 | 9,002 | ||||||||
2024 | 107 | — | 107 | ||||||||
2025 | 469 | 1,409 | 1,878 | ||||||||
2026 | 498 | 491 | 989 | ||||||||
2027 and thereafter | 2,272 | 20 | 2,292 | ||||||||
Total | $3,514 | $10,926 | $14,440 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
(in millions) | Notional Amount(1) | Derivative Assets | Derivative Liabilities | Notional Amount(1) | Derivative Assets | Derivative Liabilities | |||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts | $22,930 | $100 | $1 | $23,450 | $12 | $2 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts | 188,383 | 79 | 857 | 142,987 | 680 | 174 | |||||||||||||||||
Foreign exchange contracts | 26,102 | 523 | 494 | 21,336 | 263 | 231 | |||||||||||||||||
Commodities contracts | 897 | 1,630 | 1,621 | 514 | 508 | 505 | |||||||||||||||||
TBA contracts | 4,482 | 21 | 19 | 7,776 | 8 | 8 | |||||||||||||||||
Other contracts | 2,360 | 18 | 11 | 3,555 | 38 | 2 | |||||||||||||||||
Total derivatives not designated as hedging instruments | 2,271 | 3,002 | 1,497 | 920 | |||||||||||||||||||
Gross derivative fair values | 2,371 | 3,003 | 1,509 | 922 | |||||||||||||||||||
Less: Gross amounts offset in the Consolidated Balance Sheets(2) | (461) | (461) | (235) | (235) | |||||||||||||||||||
Less: Cash collateral applied(2) | (241) | (1,538) | (58) | (490) | |||||||||||||||||||
Total net derivative fair values presented in the Consolidated Balance Sheets | $1,669 | $1,004 | $1,216 | $197 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | Affected Line Item in the Consolidated Statements of Operations | |||||||||||||||||||||
Interest rate swaps hedging borrowed funds | ($15) | ($10) | ($52) | ($38) | Interest expense - long-term borrowed funds | |||||||||||||||||||||
Hedged long-term debt attributable to the risk being hedged | 14 | 9 | 51 | 37 | Interest expense - long-term borrowed funds | |||||||||||||||||||||
Interest rate swaps hedging loans held for sale | (3) | — | (3) | — | Interest and fees on loans and leases | |||||||||||||||||||||
Hedged loans held for sale attributable to the risk being hedged | 4 | — | 4 | — | Interest and fees on loans and leases | |||||||||||||||||||||
Interest rate swaps hedging debt securities available for sale | — | 4 | 29 | 32 | Interest income - investment securities | |||||||||||||||||||||
Hedged debt securities available for sale attributable to risk being hedged | — | (4) | (29) | (32) | Interest income - investment securities |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||
(in millions) | Debt securities available for sale | Long-term borrowed funds | Loans and leases held for sale | Debt securities available for sale(1) | Long-term borrowed funds | |||||||||||||||
Carrying amount of hedged assets | $— | $— | $937 | $6,042 | $— | |||||||||||||||
Carrying amount of hedged liabilities | — | 989 | — | — | 2,239 | |||||||||||||||
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | — | (9) | 4 | 29 | 42 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Amount of pre-tax net gains (losses) recognized in OCI | ($244) | $62 | ($905) | $34 | |||||||||||||||||||
Amount of pre-tax net gains (losses) reclassified from OCI into interest income | 12 | 49 | 49 | 95 | |||||||||||||||||||
Amount of pre-tax net gains (losses) reclassified from OCI into interest expense | (1) | (12) | (6) | (24) |
Amounts Recognized in Noninterest Income for the | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Affected Line Item in the Consolidated Statements of Operations | ||||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Economic hedge type: | ||||||||||||||||||||||||||
Customer interest rate contracts | ($408) | $133 | ($1,175) | ($215) | Foreign exchange and derivative products | |||||||||||||||||||||
Derivatives hedging interest rate risk | 428 | (129) | 1,221 | 227 | Foreign exchange and derivative products | |||||||||||||||||||||
Customer foreign exchange contracts | (149) | 19 | (123) | (97) | Foreign exchange and derivative products | |||||||||||||||||||||
Derivatives hedging foreign exchange risk | 246 | (11) | 249 | 139 | Foreign exchange and derivative products | |||||||||||||||||||||
Customer commodity contracts | 372 | 319 | 1,524 | 413 | Foreign exchange and derivative products | |||||||||||||||||||||
Derivatives hedging commodity price risk | (365) | (317) | (1,513) | (409) | Foreign exchange and derivative products | |||||||||||||||||||||
Residential loan commitments | (62) | 67 | (223) | (171) | Mortgage banking fees | |||||||||||||||||||||
Derivatives hedging residential loan commitments and mortgage loans held for sale, at fair value | 126 | (141) | 397 | 134 | Mortgage banking fees | |||||||||||||||||||||
Derivative contracts used to hedge residential MSRs | (96) | 53 | (242) | (129) | Mortgage banking fees | |||||||||||||||||||||
Total | $92 | ($7) | $115 | ($108) |
As of and for the Three Months Ended June 30, | ||||||||||||||||||||||||||
(in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Debt Securities | Employee Benefit Plans | Total AOCI | ||||||||||||||||||||||
Balance at April 1, 2021 | ($57) | $71 | ($425) | ($411) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 46 | 10 | — | 56 | ||||||||||||||||||||||
Amounts reclassified to the Consolidated Statements of Operations | (27) | (3) | 4 | (26) | ||||||||||||||||||||||
Net other comprehensive income (loss) | 19 | 7 | 4 | 30 | ||||||||||||||||||||||
Balance at June 30, 2021 | ($38) | $78 | ($421) | ($381) | ||||||||||||||||||||||
Balance at April 1, 2022 | ($676) | ($1,236) | ($346) | ($2,258) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (178) | (779) | — | (957) | ||||||||||||||||||||||
Amounts reclassified to the Consolidated Statements of Operations | (8) | (1) | 6 | (3) | ||||||||||||||||||||||
Net other comprehensive income (loss) | (186) | (780) | 6 | (960) | ||||||||||||||||||||||
Balance at June 30, 2022 | ($862) | ($2,016) | ($340) | ($3,218) | ||||||||||||||||||||||
Primary location in the Consolidated Statements of Operations of amounts reclassified from AOCI | Net interest income | Securities gains, net | Other operating expense |
As of and for the Six Months Ended June 30, | ||||||||||||||||||||||||||
(in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Debt Securities | Employee Benefit Plans | Total AOCI | ||||||||||||||||||||||
Balance at January 1, 2021 | ($11) | $380 | ($429) | ($60) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 25 | (297) | — | (272) | ||||||||||||||||||||||
Amounts reclassified to the Consolidated Statements of Operations | (52) | (5) | 8 | (49) | ||||||||||||||||||||||
Net other comprehensive income (loss) | (27) | (302) | 8 | (321) | ||||||||||||||||||||||
Balance at June 30, 2021 | ($38) | $78 | ($421) | ($381) | ||||||||||||||||||||||
Balance at January 1, 2022 | ($161) | ($156) | ($348) | ($665) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (669) | (1,856) | — | (2,525) | ||||||||||||||||||||||
Amounts reclassified to the Consolidated Statements of Operations | (32) | (4) | 8 | (28) | ||||||||||||||||||||||
Net other comprehensive income (loss) | (701) | (1,860) | 8 | (2,553) | ||||||||||||||||||||||
Balance at June 30, 2022 | ($862) | ($2,016) | ($340) | ($3,218) | ||||||||||||||||||||||
Primary location in the Consolidated Statements of Operations of amounts reclassified from AOCI | Net interest income | Securities gains, net | Other operating expense |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
(in millions, except per share and share data) | Liquidation value per share | Preferred Shares | Carrying Amount | Preferred Shares | Carrying Amount | ||||||||||||||||||||||||
Authorized ($25 par value per share) | 100,000,000 | 100,000,000 | |||||||||||||||||||||||||||
Issued and outstanding: | |||||||||||||||||||||||||||||
Series B | $1,000 | 300,000 | $296 | 300,000 | $296 | ||||||||||||||||||||||||
Series C | 1,000 | 300,000 | 297 | 300,000 | 297 | ||||||||||||||||||||||||
Series D | 1,000 | (1) | 300,000 | (2) | 293 | 300,000 | 293 | ||||||||||||||||||||||
Series E | 1,000 | (1) | 450,000 | (3) | 437 | 450,000 | 437 | ||||||||||||||||||||||
Series F | 1,000 | 400,000 | 395 | 400,000 | 395 | ||||||||||||||||||||||||
Series G | 1,000 | 300,000 | 296 | 300,000 | 296 | ||||||||||||||||||||||||
Total | 2,050,000 | $2,014 | 2,050,000 | $2,014 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | |||||||||||||||||||||||||
(in millions, except per share data) | Dividends Declared per Share | Dividends Declared | Dividends Paid | Dividends Declared per Share | Dividends Declared | Dividends Paid | ||||||||||||||||||||
Common stock | $0.39 | $195 | $195 | $0.39 | $168 | $168 | ||||||||||||||||||||
Preferred stock | ||||||||||||||||||||||||||
Series A | $— | $— | $— | $10.50 | $2 | $2 | ||||||||||||||||||||
Series B | 30.00 | 9 | — | 30.00 | 9 | — | ||||||||||||||||||||
Series C | 15.94 | 5 | 5 | 15.94 | 5 | 5 | ||||||||||||||||||||
Series D | 15.87 | 4 | 4 | 15.88 | 4 | 4 | ||||||||||||||||||||
Series E | 12.50 | 6 | 6 | 12.50 | 6 | 6 | ||||||||||||||||||||
Series F | 14.12 | 5 | 5 | 14.13 | 6 | 6 | ||||||||||||||||||||
Series G | 10.00 | 3 | 3 | — | — | — | ||||||||||||||||||||
Total preferred stock | $32 | $23 | $32 | $23 |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||||||||||||||
(in millions, except per share data) | Dividends Declared per Share | Dividends Declared | Dividends Paid | Dividends Declared per Share | Dividends Declared | Dividends Paid | ||||||||||||||||||||
Common stock | $0.78 | $360 | $360 | $0.78 | $335 | $335 | ||||||||||||||||||||
Preferred stock | ||||||||||||||||||||||||||
Series A | $— | $— | $— | $20.99 | $5 | $5 | ||||||||||||||||||||
Series B | 30.00 | 9 | 9 | 30.00 | 9 | 9 | ||||||||||||||||||||
Series C | 31.88 | 10 | 10 | 31.88 | 10 | 10 | ||||||||||||||||||||
Series D | 31.75 | 9 | 9 | 31.75 | 9 | 9 | ||||||||||||||||||||
Series E | 25.00 | 11 | 11 | 25.00 | 11 | 11 | ||||||||||||||||||||
Series F | 28.25 | 11 | 11 | 28.25 | 11 | 11 | ||||||||||||||||||||
Series G | 20.00 | 6 | 6 | — | — | — | ||||||||||||||||||||
Total preferred stock | $56 | $56 | $55 | $55 |
(in millions) | June 30, 2022 | December 31, 2021 | |||||||||
Commitments to extend credit | $91,778 | $84,206 | |||||||||
Letters of credit | 2,101 | 1,998 | |||||||||
Risk participation agreements | 14 | 39 | |||||||||
Loans sold with recourse | 232 | 82 | |||||||||
Marketing rights | 23 | 26 | |||||||||
Total | $94,148 | $86,351 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
(in millions) | Aggregate Fair Value | Aggregate Unpaid Principal | Aggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal | Aggregate Fair Value | Aggregate Unpaid Principal | Aggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal | |||||||||||||||||
Residential mortgage loans held for sale, at fair value | $1,278 | $1,266 | $12 | $2,657 | $2,591 | $66 | |||||||||||||||||
Commercial and industrial, and commercial real estate loans held for sale, at fair value | 99 | 118 | (19) | 76 | 79 | (3) |
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
Debt securities available for sale: | ||||||||||||||
Mortgage-backed securities | $20,350 | $— | $20,350 | $— | ||||||||||
Collateralized loan obligations | 1,200 | — | 1,200 | — | ||||||||||
State and political subdivisions | 3 | — | 3 | — | ||||||||||
U.S. Treasury and other | 3,408 | 3,408 | — | — | ||||||||||
Total debt securities available for sale | 24,961 | 3,408 | 21,553 | — | ||||||||||
Loans held for sale, at fair value: | ||||||||||||||
Residential loans held for sale | 1,278 | — | 1,278 | — | ||||||||||
Commercial loans held for sale | 99 | — | 99 | — | ||||||||||
Total loans held for sale, at fair value | 1,377 | — | 1,377 | — | ||||||||||
Mortgage servicing rights | 1,411 | — | — | 1,411 | ||||||||||
Derivative assets: | ||||||||||||||
Interest rate contracts | 179 | — | 179 | — | ||||||||||
Foreign exchange contracts | 523 | — | 523 | — | ||||||||||
Commodities contracts | 1,630 | — | 1,630 | — | ||||||||||
TBA contracts | 21 | — | 21 | — | ||||||||||
Other contracts | 18 | — | — | 18 | ||||||||||
Total derivative assets | 2,371 | — | 2,353 | 18 | ||||||||||
Equity securities, at fair value(1) | 114 | 108 | 6 | — | ||||||||||
Total assets | $30,234 | $3,516 | $25,289 | $1,429 | ||||||||||
Derivative liabilities: | ||||||||||||||
Interest rate contracts | $858 | $— | $858 | $— | ||||||||||
Foreign exchange contracts | 494 | — | 494 | — | ||||||||||
Commodities contracts | 1,621 | — | 1,621 | — | ||||||||||
TBA contracts | 19 | — | 19 | — | ||||||||||
Other contracts | 11 | — | 4 | 7 | ||||||||||
Total derivative liabilities | 3,003 | — | 2,996 | 7 | ||||||||||
Total liabilities | $3,003 | $— | $2,996 | $7 |
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
Debt securities available for sale: | ||||||||||||||
Mortgage-backed securities | $24,847 | $— | $24,847 | $— | ||||||||||
Collateralized loan obligations | 1,207 | — | 1,207 | — | ||||||||||
State and political subdivisions | 2 | — | 2 | — | ||||||||||
U.S. Treasury and other | 11 | 11 | — | — | ||||||||||
Total debt securities available for sale | 26,067 | 11 | 26,056 | — | ||||||||||
Loans held for sale, at fair value: | ||||||||||||||
Residential loans held for sale | 2,657 | — | 2,657 | — | ||||||||||
Commercial loans held for sale | 76 | — | 76 | — | ||||||||||
Total loans held for sale, at fair value | 2,733 | — | 2,733 | — | ||||||||||
Mortgage servicing rights | 1,029 | — | — | 1,029 | ||||||||||
Derivative assets: | ||||||||||||||
Interest rate contracts | 692 | — | 692 | — | ||||||||||
Foreign exchange contracts | 263 | — | 263 | — | ||||||||||
Commodities contracts | 508 | — | 508 | — | ||||||||||
TBA contracts | 8 | — | 8 | — | ||||||||||
Other contracts | 38 | — | — | 38 | ||||||||||
Total derivative assets | 1,509 | — | 1,471 | 38 | ||||||||||
Equity securities, at fair value(1) | 102 | 95 | 7 | — | ||||||||||
Total assets | $31,440 | $106 | $30,267 | $1,067 | ||||||||||
Derivative liabilities: | ||||||||||||||
Interest rate contracts | $176 | $— | $176 | $— | ||||||||||
Foreign exchange contracts | 231 | — | 231 | — | ||||||||||
Commodities contracts | 505 | — | 505 | — | ||||||||||
TBA contracts | 8 | — | 8 | — | ||||||||||
Other contracts | 2 | — | 2 | — | ||||||||||
Total derivative liabilities | 922 | — | 922 | — | ||||||||||
Total liabilities | $922 | $— | $922 | $— |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | ||||||||||||||||
(in millions) | Mortgage Servicing Rights | Other Derivative Contracts | Mortgage Servicing Rights | Other Derivative Contracts | |||||||||||||
Beginning balance | $1,241 | ($21) | $1,029 | $38 | |||||||||||||
Issuances | 79 | 23 | 174 | 64 | |||||||||||||
Acquisitions(1) | 16 | — | 16 | — | |||||||||||||
Settlements(2) | (32) | 71 | (71) | 132 | |||||||||||||
Changes in fair value during the period recognized in earnings(3) | 107 | (62) | 263 | (223) | |||||||||||||
Ending balance | $1,411 | $11 | $1,411 | $11 |
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | ||||||||||||||||
(in millions) | Mortgage Servicing Rights | Other Derivative Contracts | Mortgage Servicing Rights | Other Derivative Contracts | |||||||||||||
Beginning balance | $893 | $38 | $658 | $197 | |||||||||||||
Issuances | 122 | 81 | 209 | 243 | |||||||||||||
Settlements(2) | (47) | (97) | (105) | (180) | |||||||||||||
Changes in fair value during the period recognized in earnings(3) | (66) | 67 | 140 | (171) | |||||||||||||
Ending balance | $902 | $89 | $902 | $89 |
As of June 30, 2022 | |||||||||||
Valuation Technique | Unobservable Input | Range (Weighted Average) | |||||||||
Mortgage servicing rights | Discounted Cash Flow | Constant prepayment rate | 6.59-20.34% CPR (7.6% CPR) | ||||||||
Option adjusted spread | 398-1,058 bps (615 bps) | ||||||||||
Other derivative contracts | Internal Model | Pull through rate | 23.72-99.90% (82.39%) | ||||||||
MSR value | 2.56-144.00 bps (94.43 bps) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Collateral-dependent loans | ($1) | $— | ($3) | ($19) |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Collateral-dependent loans | $579 | $— | $579 | $— | $645 | $— | $645 | $— |
June 30, 2022 | |||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
(in millions) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||
Debt securities held to maturity | $9,567 | $9,361 | $— | $— | $8,921 | $8,747 | $646 | $614 | |||||||||||||||||||||||||||
Other loans held for sale | 2,078 | 2,058 | — | — | — | — | 2,078 | 2,058 | |||||||||||||||||||||||||||
Loans and leases | 156,172 | 152,496 | — | — | 579 | 579 | 155,593 | 151,917 | |||||||||||||||||||||||||||
Other assets | 1,162 | 1,162 | — | — | 1,146 | 1,146 | 16 | 16 | |||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | 178,925 | 178,807 | — | — | 178,925 | 178,807 | — | — | |||||||||||||||||||||||||||
Short-term borrowed funds | 3,763 | 3,763 | — | — | 3,763 | 3,763 | — | — | |||||||||||||||||||||||||||
Long-term borrowed funds | 14,440 | 14,299 | — | — | 14,440 | 14,299 | — | — |
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
(in millions) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||
Debt securities held to maturity | $2,242 | $2,289 | $— | $— | $1,505 | $1,557 | $737 | $732 | |||||||||||||||||||||||||||
Other loans held for sale | 735 | 735 | — | — | — | — | 735 | 735 | |||||||||||||||||||||||||||
Loans and leases | 128,163 | 128,156 | — | — | 645 | 645 | 127,518 | 127,511 | |||||||||||||||||||||||||||
Other assets | 624 | 624 | — | — | 609 | 609 | 15 | 15 | |||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | 154,361 | 154,366 | — | — | 154,361 | 154,366 | — | — | |||||||||||||||||||||||||||
Short-term borrowed funds | 74 | 74 | — | — | 74 | 74 | — | — | |||||||||||||||||||||||||||
Long-term borrowed funds | 6,932 | 7,188 | — | — | 6,932 | 7,188 | — | — |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||||
Service charges and fees | $73 | $34 | $1 | $108 | $74 | $26 | $— | $100 | |||||||||||||||||||||
Card fees | 60 | 10 | — | 70 | 56 | 8 | — | 64 | |||||||||||||||||||||
Capital markets fees | — | 90 | — | 90 | — | 84 | — | 84 | |||||||||||||||||||||
Trust and investment services fees | 66 | — | — | 66 | 60 | — | — | 60 | |||||||||||||||||||||
Other banking fees | — | 5 | — | 5 | — | 2 | — | 2 | |||||||||||||||||||||
Total revenue from contracts with customers | $199 | $139 | $1 | $339 | $190 | $120 | $— | $310 | |||||||||||||||||||||
Total revenue from other sources(1) | 81 | 82 | (8) | 155 | 93 | 58 | 24 | 175 | |||||||||||||||||||||
Total noninterest income | $280 | $221 | ($7) | $494 | $283 | $178 | $24 | $485 |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||||
Service charges and fees | $142 | $61 | $2 | $205 | $148 | $51 | $— | $199 | |||||||||||||||||||||
Card fees | 110 | 20 | — | 130 | 103 | 15 | — | 118 | |||||||||||||||||||||
Capital markets fees | — | 168 | — | 168 | — | 156 | — | 156 | |||||||||||||||||||||
Trust and investment services fees | 127 | — | — | 127 | 118 | — | — | 118 | |||||||||||||||||||||
Other banking fees | 1 | 7 | 1 | 9 | — | 4 | — | 4 | |||||||||||||||||||||
Total revenue from contracts with customers | $380 | $256 | $3 | $639 | $369 | $226 | $— | $595 | |||||||||||||||||||||
Total revenue from other sources(1) | 157 | 178 | 18 | 353 | 265 | 122 | 45 | 432 | |||||||||||||||||||||
Total noninterest income | $537 | $434 | $21 | $992 | $634 | $348 | $45 | $1,027 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Marketing | $39 | $31 | $65 | $50 | |||||||||||||||||||
Deposit insurance | 26 | 16 | 46 | 31 | |||||||||||||||||||
Other | 88 | 46 | 152 | 103 | |||||||||||||||||||
Other operating expense | $153 | $93 | $263 | $184 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions, except share and per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Numerator (basic and diluted): | |||||||||||||||||||||||
Net income | $364 | $648 | $784 | $1,259 | |||||||||||||||||||
Less: Preferred stock dividends | 32 | 32 | 56 | 55 | |||||||||||||||||||
Net income available to common stockholders | $332 | $616 | $728 | $1,204 | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average common shares outstanding - basic | 491,497,026 | 425,948,706 | 457,140,258 | 425,951,197 | |||||||||||||||||||
Dilutive common shares: share-based awards | 1,799,088 | 1,612,866 | 2,027,489 | 1,717,045 | |||||||||||||||||||
Weighted-average common shares outstanding - diluted | 493,296,114 | 427,561,572 | 459,167,747 | 427,668,242 | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $0.68 | $1.45 | $1.59 | $2.83 | |||||||||||||||||||
Diluted(1) | 0.67 | 1.44 | 1.58 | 2.81 |
As of and for the Three Months Ended June 30, 2022 | |||||||||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||
Net interest income | $995 | $534 | ($24) | $1,505 | |||||||||||||||||||
Noninterest income | 280 | 221 | (7) | 494 | |||||||||||||||||||
Total revenue | 1,275 | 755 | (31) | 1,999 | |||||||||||||||||||
Noninterest expense | 881 | 308 | 116 | 1,305 | |||||||||||||||||||
Profit (loss) before provision (benefit) for credit losses | 394 | 447 | (147) | 694 | |||||||||||||||||||
Provision (benefit) for credit losses | 39 | 10 | 167 | 216 | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 355 | 437 | (314) | 478 | |||||||||||||||||||
Income tax expense (benefit) | 90 | 96 | (72) | 114 | |||||||||||||||||||
Net income (loss) | $265 | $341 | ($242) | $364 | |||||||||||||||||||
Total average assets | $88,881 | $78,638 | $53,448 | $220,967 |
As of and for the Three Months Ended June 30, 2021 | |||||||||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||
Net interest income | $897 | $419 | ($192) | $1,124 | |||||||||||||||||||
Noninterest income | 283 | 178 | 24 | 485 | |||||||||||||||||||
Total revenue | 1,180 | 597 | (168) | 1,609 | |||||||||||||||||||
Noninterest expense | 751 | 226 | 14 | 991 | |||||||||||||||||||
Profit (loss) before provision (benefit) for credit losses | 429 | 371 | (182) | 618 | |||||||||||||||||||
Provision (benefit) for credit losses | 45 | 34 | (292) | (213) | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 384 | 337 | 110 | 831 | |||||||||||||||||||
Income tax expense (benefit) | 98 | 72 | 13 | 183 | |||||||||||||||||||
Net income (loss) | $286 | $265 | $97 | $648 | |||||||||||||||||||
Total average assets | $75,600 | $57,527 | $51,329 | $184,456 |
As of and for the Six Months Ended June 30, 2022 | |||||||||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||
Net interest income | $1,852 | $950 | ($150) | $2,652 | |||||||||||||||||||
Noninterest income | 537 | 434 | 21 | 992 | |||||||||||||||||||
Total revenue | 2,389 | 1,384 | (129) | 3,644 | |||||||||||||||||||
Noninterest expense | 1,665 | 580 | 166 | 2,411 | |||||||||||||||||||
Profit (loss) before provision (benefit) for credit losses | 724 | 804 | (295) | 1,233 | |||||||||||||||||||
Provision (benefit) for credit losses | 88 | 22 | 109 | 219 | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 636 | 782 | (404) | 1,014 | |||||||||||||||||||
Income tax expense (benefit) | 162 | 170 | (102) | 230 | |||||||||||||||||||
Net income (loss) | $474 | $612 | ($302) | $784 | |||||||||||||||||||
Total average assets | $83,247 | $69,927 | $51,558 | $204,732 |
As of and for the Six Months Ended June 30, 2021 | |||||||||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||
Net interest income | $1,760 | $840 | ($359) | $2,241 | |||||||||||||||||||
Noninterest income | 634 | 348 | 45 | 1,027 | |||||||||||||||||||
Total revenue | 2,394 | 1,188 | (314) | 3,268 | |||||||||||||||||||
Noninterest expense | 1,501 | 453 | 55 | 2,009 | |||||||||||||||||||
Profit (loss) before provision (benefit) for credit losses | 893 | 735 | (369) | 1,259 | |||||||||||||||||||
Provision (benefit) for credit losses | 104 | 135 | (592) | (353) | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 789 | 600 | 223 | 1,612 | |||||||||||||||||||
Income tax expense (benefit) | 201 | 124 | 28 | 353 | |||||||||||||||||||
Net income (loss) | $588 | $476 | $195 | $1,259 | |||||||||||||||||||
Total average assets | $75,443 | $57,632 | $50,443 | $183,518 |
Period | Total Number of Shares Repurchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Maximum Dollar Amount of Shares That May Yet Be Purchased as Part of Publicly Announced Plans or Programs(2) | ||||||||||
April 1, 2022 - April 30, 2022 | 2,527 | $41.66 | — | $455,000,000 | ||||||||||
May 1, 2022 - May 31, 2022 | 9,936 | $38.48 | — | $455,000,000 | ||||||||||
June 1, 2022 - June 30, 2022 | 43,042 | $30.21 | — | $1,000,000,000 |
CITIZENS FINANCIAL GROUP, INC. | |||||
(Registrant) | |||||
By: | /s/ C. Jack Read | ||||
Name: C. Jack Read | |||||
Title: Executive Vice President, Chief Accounting Officer and Controller | |||||
(Principal Accounting Officer and Authorized Officer) |
Board Retainer …………………………………………………………. | $105,000 | ||||
Lead Director Retainer ………………………………………………… | $40,000 | ||||
Audit Committee Chair Retainer ……………………………………… | $35,000 | ||||
Risk Committee Chair Retainer………………….……………………. | $30,000 | ||||
Compensation and Human Resources Chair Retainer …….……… | $25,000 | ||||
Nominating and Governance Chair Retainer……………….……..… | $20,000 | ||||
Audit Committee Member Retainer (including Chair)..……………… | $10,000 |
/s/ Bruce Van Saun | ||
Bruce Van Saun | ||
Chief Executive Officer |
/s/ John F. Woods | ||
John F. Woods | ||
Chief Financial Officer |
/s/ Bruce Van Saun | ||
Bruce Van Saun | ||
Chief Executive Officer |
/s/ John F. Woods | ||
John F. Woods | ||
Chief Financial Officer |