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 | ☐ |
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Table of Contents | ||||||||||||||
2022 Form 10-K | Annual Report on Form 10-K for the year ended December 31, 2022 | |||||||
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 | |||||||
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 | |||||||
CLTV | Combined Loan-to-Value | |||||||
COVID | Coronavirus Disease | |||||||
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, as amended | |||||||
Fannie Mae (FNMA) | Federal National Mortgage Association | |||||||
FCA | Financial Conduct Authority | |||||||
FDIC | Federal Deposit Insurance Corporation | |||||||
FDM | Financially Distressed Modification | |||||||
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 | |||||||
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. and its subsidiaries |
JMP | JMP Group LLC | |||||||
LHFS | Loans Held for Sale | |||||||
LIBOR | London Interbank Offered Rate | |||||||
LIHTC | Low Income Housing Tax Credit | |||||||
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 AACL Transition | The Day-1 CECL adoption entry booked to ACL plus 25% of subsequent CECL ACL reserve build | |||||||
Modified CECL Transition | The Day-1 CECL adoption entry booked to retained earnings plus 25% of subsequent CECL ACL reserve build | |||||||
MSRs | Mortgage Servicing Rights | |||||||
New England | Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont | |||||||
NMTC | New Markets Tax Credit | |||||||
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 | The U.S. Small Business Administration’s 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 | |||||||
SOFR | Secured Overnight Financing Rate | |||||||
SVaR | Stressed Value at Risk | |||||||
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 Entity |
Page | ||||||||
Table 1: Notable Items | |||||||||||||||||
Three Months Ended June 30, 2023 | |||||||||||||||||
Less: notable items | |||||||||||||||||
(dollars in millions) | Reported results (GAAP) | Integration related costs(1) | TOP and other(2) | Provision | Underlying results (non-GAAP) | ||||||||||||
Noninterest expense | $1,306 | $39 | $34 | $— | $1,233 | ||||||||||||
Income tax expense | 134 | (11) | (9) | — | 154 |
Three Months Ended June 30, 2022 | |||||||||||||||||
Less: notable items | |||||||||||||||||
(dollars 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 |
Six Months Ended June 30, 2023 | |||||||||||||||||
Less: notable items | |||||||||||||||||
(dollars in millions) | Reported results (GAAP) | Integration related costs(1) | TOP and other(2) | Provision | Underlying results (non-GAAP) | ||||||||||||
Noninterest expense | $2,602 | $91 | $48 | $— | $2,463 | ||||||||||||
Income tax expense | 287 | (24) | (13) | — | 324 |
Six Months Ended June 30, 2022 | |||||||||||||||||
Less: notable items | |||||||||||||||||
(dollars 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, | ||||||||||||||||||||||||||||||||
2023 | 2022 | 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 | $6,839 | $169 | 4.91 | % | $6,333 | $17 | 0.52 | % | $506 | 439 bps | ||||||||||||||||||||||
Taxable investment securities | 38,474 | 533 | 2.77 | 32,591 | 339 | 2.08 | 5,883 | 69 | ||||||||||||||||||||||||
Non-taxable investment securities | 2 | — | 2.68 | 2 | — | 2.61 | — | 7 | ||||||||||||||||||||||||
Total investment securities | 38,476 | 533 | 2.77 | 32,593 | 339 | 2.08 | 5,883 | 69 | ||||||||||||||||||||||||
Commercial and industrial | 50,876 | 1,500 | 5.87 | 47,747 | 746 | 3.11 | 3,129 | 276 | ||||||||||||||||||||||||
Commercial real estate | 29,004 | 861 | 5.90 | 20,867 | 333 | 3.17 | 8,137 | 273 | ||||||||||||||||||||||||
Leases | 1,393 | 24 | 3.50 | 1,568 | 21 | 2.71 | (175) | 79 | ||||||||||||||||||||||||
Total commercial | 81,273 | 2,385 | 5.84 | 70,182 | 1,100 | 3.12 | 11,091 | 272 | ||||||||||||||||||||||||
Residential mortgages | 30,322 | 509 | 3.35 | 25,987 | 390 | 3.00 | 4,335 | 35 | ||||||||||||||||||||||||
Home equity | 14,207 | 504 | 7.16 | 12,469 | 195 | 3.15 | 1,738 | 401 | ||||||||||||||||||||||||
Automobile | 11,465 | 232 | 4.09 | 14,352 | 254 | 3.58 | (2,887) | 51 | ||||||||||||||||||||||||
Education | 12,612 | 309 | 4.94 | 13,091 | 268 | 4.13 | (479) | 81 | ||||||||||||||||||||||||
Other retail | 5,222 | 240 | 9.27 | 5,492 | 211 | 7.75 | (270) | 152 | ||||||||||||||||||||||||
Total retail | 73,828 | 1,794 | 4.89 | 71,391 | 1,318 | 3.71 | 2,437 | 118 | ||||||||||||||||||||||||
Total loans and leases | 155,101 | 4,179 | 5.39 | 141,573 | 2,418 | 3.42 | 13,528 | 197 | ||||||||||||||||||||||||
Loans held for sale, at fair value | 1,196 | 35 | 5.79 | 2,150 | 33 | 3.11 | (954) | 268 | ||||||||||||||||||||||||
Other loans held for sale | 410 | 17 | 8.40 | 1,409 | 32 | 4.48 | (999) | 392 | ||||||||||||||||||||||||
Interest-earning assets | 202,022 | 4,933 | 4.88 | 184,058 | 2,839 | 3.09 | 17,964 | 179 | ||||||||||||||||||||||||
Noninterest-earning assets | 20,519 | 20,674 | (155) | |||||||||||||||||||||||||||||
Total assets | $222,541 | $204,732 | $17,809 | |||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||||||||||
Checking with interest | $35,276 | $207 | 1.18 | % | $34,605 | $20 | 0.12 | % | $671 | 106 | ||||||||||||||||||||||
Money market | 49,803 | 635 | 2.57 | 48,012 | 35 | 0.15 | 1,791 | 242 | ||||||||||||||||||||||||
Savings | 29,551 | 187 | 1.28 | 25,758 | 14 | 0.11 | 3,793 | 117 | ||||||||||||||||||||||||
Term | 15,021 | 244 | 3.27 | 5,976 | 10 | 0.30 | 9,045 | 297 | ||||||||||||||||||||||||
Total interest-bearing deposits | 129,651 | 1,273 | 1.98 | 114,351 | 79 | 0.14 | 15,300 | 184 | ||||||||||||||||||||||||
Short-term borrowed funds | 997 | 28 | 5.59 | 2,023 | 10 | 1.00 | (1,026) | 459 | ||||||||||||||||||||||||
Long-term borrowed funds | 17,284 | 401 | 4.63 | 8,155 | 98 | 2.40 | 9,129 | 223 | ||||||||||||||||||||||||
Total borrowed funds | 18,281 | 429 | 4.68 | 10,178 | 108 | 2.13 | 8,103 | 255 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 147,932 | 1,702 | 2.31 | 124,529 | 187 | 0.30 | 23,403 | 201 | ||||||||||||||||||||||||
Demand deposits | 44,145 | 51,430 | (7,285) | |||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 6,453 | 5,073 | 1,380 | |||||||||||||||||||||||||||||
Total liabilities | 198,530 | 181,032 | 17,498 | |||||||||||||||||||||||||||||
Stockholders’ equity | 24,011 | 23,700 | 311 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $222,541 | $204,732 | $17,809 | |||||||||||||||||||||||||||||
Interest rate spread | 2.57 | % | 2.79 | % | (22) | |||||||||||||||||||||||||||
Net interest income and net interest margin | $3,231 | 3.23 | % | $2,652 | 2.91 | % | 32 | |||||||||||||||||||||||||
Net interest income and net interest margin, FTE(1) | $3,240 | 3.23 | % | $2,656 | 2.91 | % | 32 | |||||||||||||||||||||||||
Memo: Total deposits (interest-bearing and demand) | $173,796 | $1,273 | 1.48 | % | $165,781 | $79 | 0.10 | % | $8,015 | 138 | bps |
Table 3: Noninterest Income | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | Change | Percent | 2023 | 2022 | Change | Percent | |||||||||||||||||||||||||||||||||||||||
Service charges and fees | $101 | $108 | ($7) | (6 | %) | $201 | $206 | ($5) | (2 | %) | |||||||||||||||||||||||||||||||||||||
Capital markets fees | 82 | 88 | (6) | (7) | 165 | 181 | (16) | (9) | |||||||||||||||||||||||||||||||||||||||
Card fees | 80 | 71 | 9 | 13 | 152 | 131 | 21 | 16 | |||||||||||||||||||||||||||||||||||||||
Mortgage banking fees | 59 | 72 | (13) | (18) | 116 | 141 | (25) | (18) | |||||||||||||||||||||||||||||||||||||||
Trust and investment services fees | 65 | 66 | (1) | (2) | 128 | 127 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Foreign exchange and derivative products | 44 | 60 | (16) | (27) | 92 | 111 | (19) | (17) | |||||||||||||||||||||||||||||||||||||||
Letter of credit and loan fees | 43 | 40 | 3 | 8 | 83 | 78 | 5 | 6 | |||||||||||||||||||||||||||||||||||||||
Securities gains, net | 9 | 1 | 8 | NM | 14 | 5 | 9 | 180 | |||||||||||||||||||||||||||||||||||||||
Other income(1) | 23 | (12) | 35 | NM | 40 | 12 | 28 | 233 | |||||||||||||||||||||||||||||||||||||||
Noninterest income | $506 | $494 | $12 | 2 | % | $991 | $992 | ($1) | — | % |
Table 4: Noninterest Expense | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | Change | Percent | 2023 | 2022 | Change | Percent | |||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | $615 | $683 | ($68) | (10 | %) | $1,273 | $1,277 | ($4) | — | % | |||||||||||||||||||||||||||||||||||||
Outside services | 177 | 189 | (12) | (6) | 353 | 358 | (5) | (1) | |||||||||||||||||||||||||||||||||||||||
Equipment and software | 181 | 169 | 12 | 7 | 350 | 319 | 31 | 10 | |||||||||||||||||||||||||||||||||||||||
Occupancy | 136 | 111 | 25 | 23 | 260 | 194 | 66 | 34 | |||||||||||||||||||||||||||||||||||||||
Other operating expense | 197 | 153 | 44 | 29 | 366 | 263 | 103 | 39 | |||||||||||||||||||||||||||||||||||||||
Noninterest expense | $1,306 | $1,305 | $1 | — | % | $2,602 | $2,411 | $191 | 8 | % |
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) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net interest income | $1,104 | $995 | $584 | $534 | |||||||||||||||||||
Noninterest income | 268 | 280 | 207 | 221 | |||||||||||||||||||
Total revenue | 1,372 | 1,275 | 791 | 755 | |||||||||||||||||||
Noninterest expense | 908 | 881 | 315 | 308 | |||||||||||||||||||
Profit before credit losses | 464 | 394 | 476 | 447 | |||||||||||||||||||
Net charge-offs | 82 | 39 | 71 | 10 | |||||||||||||||||||
Income before income tax expense | 382 | 355 | 405 | 437 | |||||||||||||||||||
Income tax expense | 100 | 90 | 100 | 96 | |||||||||||||||||||
Net income | $282 | $265 | $305 | $341 | |||||||||||||||||||
Average Balances: | |||||||||||||||||||||||
Total assets | $87,040 | $88,881 | $77,546 | $78,638 | |||||||||||||||||||
Total loans and leases(1) | 80,684 | 83,248 | 74,295 | 74,172 | |||||||||||||||||||
Deposits | 115,846 | 118,482 | 45,494 | 51,575 | |||||||||||||||||||
Interest-earning assets | 81,328 | 84,026 | 74,687 | 74,422 |
Consumer Banking | Commercial Banking | ||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net interest income | $2,200 | $1,852 | $1,181 | $950 | |||||||||||||||||||
Noninterest income | 524 | 537 | 408 | 434 | |||||||||||||||||||
Total revenue | 2,724 | 2,389 | 1,589 | 1,384 | |||||||||||||||||||
Noninterest expense | 1,797 | 1,665 | 646 | 580 | |||||||||||||||||||
Profit before credit losses | 927 | 724 | 943 | 804 | |||||||||||||||||||
Net charge-offs | 165 | 88 | 118 | 22 | |||||||||||||||||||
Income before income tax expense | 762 | 636 | 825 | 782 | |||||||||||||||||||
Income tax expense | 199 | 162 | 201 | 170 | |||||||||||||||||||
Net income | $563 | $474 | $624 | $612 | |||||||||||||||||||
Average Balances: | |||||||||||||||||||||||
Total assets | $87,298 | $83,247 | $78,215 | $69,927 | |||||||||||||||||||
Total loans and leases(1) | 80,935 | 78,268 | 75,010 | 66,134 | |||||||||||||||||||
Deposits | 115,713 | 111,610 | 47,220 | 48,067 | |||||||||||||||||||
Interest-earning assets | 81,598 | 79,067 | 75,405 | 66,412 |
Table 6: Amortized Cost and Fair Value of Securities | |||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(dollars in millions) | Amortized Cost(1) | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
U.S. Treasury and other | $3,429 | $3,236 | $3,678 | $3,486 | |||||||||||||||||||
State and political subdivisions | 2 | 2 | 2 | 2 | |||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 22,154 | 20,042 | 21,250 | 19,062 | |||||||||||||||||||
Other/non-agency | 279 | 247 | 280 | 251 | |||||||||||||||||||
Total mortgage-backed securities | 22,433 | 20,289 | 21,530 | 19,313 | |||||||||||||||||||
Collateralized loan obligations | 1,248 | 1,228 | 1,248 | 1,206 | |||||||||||||||||||
Total debt securities available for sale | $27,112 | $24,755 | $26,458 | $24,007 | |||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $8,990 | $8,225 | $9,253 | $8,506 | |||||||||||||||||||
Total mortgage-backed securities | 8,990 | 8,225 | 9,253 | 8,506 | |||||||||||||||||||
Asset-backed securities | 530 | 503 | 581 | 536 | |||||||||||||||||||
Total debt securities held to maturity | $9,520 | $8,728 | $9,834 | $9,042 | |||||||||||||||||||
Total debt securities available for sale and held to maturity | $36,632 | $33,483 | $36,292 | $33,049 | |||||||||||||||||||
Equity securities (at cost) | $917 | $917 | $1,058 | $1,058 | |||||||||||||||||||
Equity securities (at fair value) | 147 | 147 | 153 | 153 | |||||||||||||||||||
Table 7: Composition of Loans and Leases, Excluding LHFS | |||||||||||||||||||||||
(dollars in millions) | June 30, 2023 | December 31, 2022 | Change | Percent | |||||||||||||||||||
Commercial and industrial | $48,038 | $51,836 | ($3,798) | (7) | % | ||||||||||||||||||
Commercial real estate | 28,947 | 28,865 | 82 | — | |||||||||||||||||||
Leases | 1,294 | 1,479 | (185) | (13) | |||||||||||||||||||
Total commercial | 78,279 | 82,180 | (3,901) | (5) | |||||||||||||||||||
Residential mortgages | 30,769 | 29,921 | 848 | 3 | |||||||||||||||||||
Home equity | 14,487 | 14,043 | 444 | 3 | |||||||||||||||||||
Automobile | 10,428 | 12,292 | (1,864) | (15) | |||||||||||||||||||
Education | 12,246 | 12,808 | (562) | (4) | |||||||||||||||||||
Other retail | 5,111 | 5,418 | (307) | (6) | |||||||||||||||||||
Total retail | 73,041 | 74,482 | (1,441) | (2) | |||||||||||||||||||
Total loans and leases | $151,320 | $156,662 | ($5,342) | (3) | % |
Table 9: Nonaccrual Loans and Leases | |||||||||||||||||||||||
(dollars in millions) | June 30, 2023 | December 31, 2022 | Change | Percent | |||||||||||||||||||
Commercial and industrial | $280 | $249 | $31 | 12 | % | ||||||||||||||||||
Commercial real estate | 352 | 103 | 249 | 242 | |||||||||||||||||||
Leases | 3 | — | 3 | — | |||||||||||||||||||
Total commercial | 635 | 352 | 283 | 80 | |||||||||||||||||||
Residential mortgages | 201 | 234 | (33) | (14) | |||||||||||||||||||
Home equity | 251 | 241 | 10 | 4 | |||||||||||||||||||
Automobile | 51 | 56 | (5) | (9) | |||||||||||||||||||
Education | 22 | 33 | (11) | (33) | |||||||||||||||||||
Other retail | 31 | 28 | 3 | 11 | |||||||||||||||||||
Total retail | 556 | 592 | (36) | (6) | |||||||||||||||||||
Nonaccrual loans and leases | $1,191 | $944 | $247 | 26 | % | ||||||||||||||||||
Nonaccrual loans and leases to total loans and leases | 0.79 | % | 0.60 | % | 19 | bps | |||||||||||||||||
Allowance for loan and lease losses to nonaccrual loans and leases | 172 | % | 210 | % | (38 | %) | |||||||||||||||||
Allowance for credit losses to nonaccrual loans and leases | 193 | % | 237 | % | (44 | %) |
Six Months Ended June 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(dollars in millions) | Net Charge-Offs | Average Balance | Ratio | Net Charge-Offs | Average Balance | Ratio | |||||||||||||||||
Commercial and industrial | $67 | $50,876 | 0.26 | % | $21 | $47,747 | 0.09 | % | |||||||||||||||
Commercial real estate | 65 | 29,004 | 0.46 | — | 20,867 | — | |||||||||||||||||
Leases | (4) | 1,393 | (0.54) | — | 1,568 | 0.03 | |||||||||||||||||
Total commercial | 128 | 81,273 | 0.32 | 21 | 70,182 | 0.06 | |||||||||||||||||
Residential mortgages | 1 | 30,322 | — | (1) | 25,987 | (0.01) | |||||||||||||||||
Home equity | (6) | 14,207 | (0.08) | (18) | 12,469 | (0.30) | |||||||||||||||||
Automobile | 23 | 11,465 | 0.41 | 12 | 14,352 | 0.17 | |||||||||||||||||
Education | 40 | 12,612 | 0.63 | 27 | 13,091 | 0.41 | |||||||||||||||||
Other retail | 99 | 5,222 | 3.83 | 67 | 5,492 | 2.43 | |||||||||||||||||
Total retail | 157 | 73,828 | 0.43 | 87 | 71,391 | 0.24 | |||||||||||||||||
Total loans and leases | $285 | $155,101 | 0.37 | % | $108 | $141,573 | 0.15 | % |
Table 11: Commercial Loans and Leases | |||||||||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||||||||
(dollars in millions) | Balance | % of Total Loans and Leases | Balance | % of Total Loans and Leases | |||||||||||||
Sector | |||||||||||||||||
Finance and insurance | |||||||||||||||||
Capital call facilities | $6,335 | 4 | % | $6,753 | 4 | % | |||||||||||
Other | 5,972 | 3 | 5,310 | 3 | |||||||||||||
Other manufacturing | 3,990 | 3 | 4,474 | 3 | |||||||||||||
Technology | 3,893 | 3 | 4,367 | 3 | |||||||||||||
Accommodation and food services | 3,249 | 2 | 3,572 | 2 | |||||||||||||
Health, pharma, and social assistance | 2,781 | 2 | 3,056 | 2 | |||||||||||||
Professional, scientific, and technical services | 2,765 | 2 | 3,067 | 2 | |||||||||||||
Wholesale trade | 2,532 | 2 | 2,955 | 2 | |||||||||||||
Retail trade | 2,288 | 1 | 2,391 | 2 | |||||||||||||
Other services | 2,473 | 2 | 2,713 | 2 | |||||||||||||
Energy and related | 2,087 | 1 | 2,299 | 1 | |||||||||||||
Real estate and rental and leasing | 1,435 | 1 | 1,542 | 1 | |||||||||||||
Consumer products manufacturing | 1,166 | 1 | 1,511 | 1 | |||||||||||||
Administrative and waste management services | 1,545 | 1 | 1,710 | 1 | |||||||||||||
Arts, entertainment, and recreation | 1,593 | 1 | 1,587 | 1 | |||||||||||||
Automotive | 1,218 | 1 | 1,316 | 1 | |||||||||||||
All other(1) | 2,716 | 2 | 3,091 | 2 | |||||||||||||
Total commercial and industrial | 48,038 | 32 | 51,715 | 33 | |||||||||||||
Property type | |||||||||||||||||
Multi-family | 8,844 | 6 | 8,696 | 6 | |||||||||||||
Office | 6,213 | 4 | 6,253 | 4 | |||||||||||||
Retail | 3,431 | 2 | 3,208 | 2 | |||||||||||||
Industrial | 3,744 | 3 | 3,344 | 2 | |||||||||||||
Co-op | 1,899 | 1 | 1,824 | 1 | |||||||||||||
Data centers | 909 | 1 | 870 | 1 | |||||||||||||
Hospitality | 607 | — | 638 | — | |||||||||||||
All other(1) | 3,300 | 2 | 4,032 | 2 | |||||||||||||
Total commercial real estate | 28,947 | 19 | 28,865 | 18 | |||||||||||||
Total leases | 1,294 | 1 | 1,479 | 1 | |||||||||||||
Total commercial(2) | $78,279 | 52 | % | $82,059 | 52 | % |
Table 12: Retail Loan Portfolio Analysis | |||||||||||||||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Days Past Due and Accruing | Days Past Due and Accruing | ||||||||||||||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Nonaccrual | Current | 30-59 | 60-89 | 90+ | Nonaccrual | ||||||||||||||||||||||||||
Residential mortgages(1) | 98.12 | % | 0.29 | % | 0.10 | % | 0.84 | % | 0.65 | % | 97.68 | % | 0.32 | % | 0.15 | % | 1.07 | % | 0.78 | % | |||||||||||||||
Home equity | 97.72 | 0.38 | 0.17 | — | 1.73 | 97.68 | 0.46 | 0.14 | — | 1.72 | |||||||||||||||||||||||||
Automobile | 97.88 | 1.25 | 0.38 | — | 0.49 | 97.93 | 1.24 | 0.37 | — | 0.46 | |||||||||||||||||||||||||
Education | 99.37 | 0.27 | 0.16 | 0.02 | 0.18 | 99.30 | 0.28 | 0.13 | 0.03 | 0.26 | |||||||||||||||||||||||||
Other retail | 97.67 | 0.80 | 0.53 | 0.39 | 0.61 | 97.71 | 0.81 | 0.55 | 0.41 | 0.52 | |||||||||||||||||||||||||
Total retail | 98.19 | % | 0.48 | % | 0.19 | % | 0.38 | % | 0.76 | % | 98.02 | % | 0.52 | % | 0.21 | % | 0.46 | % | 0.79 | % |
Table 13: Retail Asset Quality Metrics | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
Average refreshed FICO for total portfolio | 772 | 770 | |||||||||
CLTV ratio for secured real estate(1) | 52 | % | 50 | % |
Table 14: Composition of Deposits | |||||||||||||||||
(dollars in millions) | June 30, 2023 | % of Total Deposits | December 31, 2022 | % of Total Deposits | |||||||||||||
Demand | $40,286 | 23 | % | $49,283 | 27 | % | |||||||||||
Money market | 52,542 | 29 | 49,905 | 28 | |||||||||||||
Checking with interest | 35,028 | 20 | 39,721 | 22 | |||||||||||||
Savings | 29,824 | 17 | 29,805 | 16 | |||||||||||||
Term | 19,987 | 11 | 12,010 | 7 | |||||||||||||
Total deposits | $177,667 | 100 | % | $180,724 | 100 | % |
Table 15: Insured/Secured Deposits | |||||
(dollars in millions) | June 30, 2023 | ||||
Total deposits | $177,667 | ||||
Estimated uninsured deposits(1) | 76,777 | ||||
Less: Uninsured affiliate deposits eliminated in consolidation | 15,795 | ||||
Less: Secured deposits(1) | 8,381 | ||||
CFG adjusted estimated uninsured, excluding secured deposits | 52,601 | ||||
Total estimated insured/secured deposits | $125,066 | ||||
Insured/secured deposits to total deposits | 70 | % |
Table 16: Term Deposits in Excess of the FDIC Insurance Limit by Remaining Maturity | |||||
(dollars in millions) | June 30, 2023 | ||||
Three months or less | $913 | ||||
After three months through six months | 236 | ||||
After six months through twelve months | 779 | ||||
After twelve months | 17 | ||||
Total term deposits(1) | $1,945 |
Table 17: Regulatory Capital Ratios Under the U.S. Basel III Standardized Rules | |||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(dollars in millions) | Amount | Ratio | Amount | Ratio | Required Minimum Capital Ratio(1) | ||||||||||||||||||
CET1 capital | |||||||||||||||||||||||
CFG | $18,381 | 10.3 | % | $18,574 | 10.0 | % | 7.9 | % | |||||||||||||||
CBNA | 19,761 | 11.1 | 20,669 | 11.2 | 7.0 | ||||||||||||||||||
Tier 1 capital | |||||||||||||||||||||||
CFG | 20,395 | 11.4 | 20,588 | 11.1 | 9.4 | ||||||||||||||||||
CBNA | 19,761 | 11.1 | 20,669 | 11.2 | 8.5 | ||||||||||||||||||
Total capital | |||||||||||||||||||||||
CFG | 23,748 | 13.3 | 23,755 | 12.8 | 11.4 | ||||||||||||||||||
CBNA | 22,808 | 12.8 | 23,534 | 12.7 | 10.5 | ||||||||||||||||||
Tier 1 leverage | |||||||||||||||||||||||
CFG | 20,395 | 9.4 | 20,588 | 9.3 | 4.0 | ||||||||||||||||||
CBNA | 19,761 | 9.1 | 20,669 | 9.4 | 4.0 | ||||||||||||||||||
Risk-weighted assets | |||||||||||||||||||||||
CFG | 179,034 | 185,224 | |||||||||||||||||||||
CBNA | 178,473 | 184,781 | |||||||||||||||||||||
Quarterly adjusted average assets(2) | |||||||||||||||||||||||
CFG | 217,264 | 220,779 | |||||||||||||||||||||
CBNA | 216,628 | 220,182 |
Table 18: Capital Composition Under the U.S. Basel III Capital Framework | |||||||||||
(dollars in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Total common stockholders' equity | $21,571 | $21,676 | |||||||||
Exclusions: | |||||||||||
Modified CECL transitional amount | 192 | 288 | |||||||||
Net unrealized (gains)/losses recorded in accumulated other comprehensive income (loss), net of tax: | |||||||||||
Debt securities | 2,643 | 2,771 | |||||||||
Derivatives | 1,553 | 1,416 | |||||||||
Unamortized net periodic benefit costs | 367 | 373 | |||||||||
Deductions: | |||||||||||
Goodwill, net of deferred tax liability | (7,793) | (7,780) | |||||||||
Other intangible assets, net of deferred tax liability | (150) | (170) | |||||||||
Deferred tax assets that arise from tax loss and credit carryforwards | (2) | — | |||||||||
Total common equity tier 1 capital | 18,381 | 18,574 | |||||||||
Qualifying preferred stock | 2,014 | 2,014 | |||||||||
Total tier 1 capital | 20,395 | 20,588 | |||||||||
Qualifying subordinated debt(1) | 1,431 | 1,427 | |||||||||
Allowance for credit losses | 2,299 | 2,240 | |||||||||
Exclusions from tier 2 capital: | |||||||||||
Modified AACL transitional amount | (249) | (374) | |||||||||
Allowance on PCD assets | (128) | (126) | |||||||||
Adjusted allowance for credit losses | 1,922 | 1,740 | |||||||||
Total capital | $23,748 | $23,755 |
Table 19: AOCI Impact on Regulatory Capital | |||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||
CFG | CBNA | ||||||||||||||||||||||
(dollars in millions) | CET1 | Tier 1 | Total | CET1 | Tier 1 | Total | |||||||||||||||||
Regulatory capital, including AOCI impact: | |||||||||||||||||||||||
Regulatory capital (as reported) | $18,381 | $20,395 | $23,748 | $19,761 | $19,761 | $22,808 | |||||||||||||||||
Unrealized gains (losses) on securities and pension | (3,010) | (3,010) | (3,010) | (2,992) | (2,992) | (2,992) | |||||||||||||||||
Deferred tax assets - securities and pension AOCI | (26) | (26) | (26) | (27) | (27) | (27) | |||||||||||||||||
Regulatory capital, including AOCI impact (non-GAAP) | $15,345 | $17,359 | $20,712 | $16,742 | $16,742 | $19,789 | |||||||||||||||||
Risk-weighted assets, including AOCI impact: | |||||||||||||||||||||||
Risk-weighted assets (as reported) | $179,034 | $179,034 | $179,034 | $178,473 | $178,473 | $178,473 | |||||||||||||||||
Unrealized gains (losses) on securities and pension | (815) | (815) | (815) | (797) | (797) | (797) | |||||||||||||||||
Deferred tax assets - securities and pension AOCI | 2,515 | 2,515 | 2,515 | 2,432 | 2,432 | 2,432 | |||||||||||||||||
Risk-weighted assets, including AOCI impact (non-GAAP) | $180,734 | $180,734 | $180,734 | $180,108 | $180,108 | $180,108 | |||||||||||||||||
Ratio: | |||||||||||||||||||||||
Regulatory capital ratio (as reported) | 10.3 | % | 11.4 | % | 13.3 | % | 11.1 | % | 11.1 | % | 12.8 | % | |||||||||||
Regulatory capital ratio, including AOCI impact (non-GAAP) | 8.5 | % | 9.6 | % | 11.5 | % | 9.3 | % | 9.3 | % | 11.0 | % |
Table 20: Credit Ratings | |||||||||||||||||
June 30, 2023 | |||||||||||||||||
Moody’s | Standard & Poor’s | Fitch | |||||||||||||||
Citizens Financial Group, Inc.: | |||||||||||||||||
Long-term issuer | Baa1 | BBB+ | BBB+ | ||||||||||||||
Short-term issuer | NR | A-2 | F1 | ||||||||||||||
Subordinated debt | Baa1 | BBB | BBB | ||||||||||||||
Preferred Stock | Baa3 | 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 |
Table 21: Sensitivity of Net Interest Income | |||||||||||
Estimated % Change in Net Interest Income over 12 Months | |||||||||||
Basis points | June 30, 2023 | December 31, 2022 | |||||||||
Instantaneous Change in Interest Rates | |||||||||||
+200 | 3.1 | % | 4.8 | % | |||||||
+100 | 1.7 | 2.4 | |||||||||
-100 | (2.6) | (2.5) | |||||||||
-200 | (6.1) | (5.6) | |||||||||
Gradual Change in Interest Rates | |||||||||||
+200 | 1.3 | % | 2.7 | % | |||||||
+100 | 0.7 | 1.4 | |||||||||
-100 | (1.4) | (1.4) | |||||||||
-200 | (3.1) | (3.0) |
Table 23: Average Active Notional for Interest Rate Derivative Contracts | ||||||||||||||||||||
Year Ended | ||||||||||||||||||||
(dollars in millions) | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | ||||||||||||||
Fair value hedges | ||||||||||||||||||||
Pay fixed/receive SOFR(1) | $433 | $433 | $433 | $433 | $433 | $433 | ||||||||||||||
Receive fixed/pay 3-month LIBOR(2) | 133 | — | — | — | — | — | ||||||||||||||
Receive fixed/pay SOFR - forward-starting(2) | 367 | 500 | 441 | — | — | — | ||||||||||||||
Cash flow hedges | ||||||||||||||||||||
Receive fixed/pay SOFR(2) | 16,734 | 3,156 | 853 | 500 | 500 | 210 | ||||||||||||||
Receive fixed/pay SOFR - forward-starting(2) | 2,710 | 22,627 | 26,460 | 13,900 | 2,370 | — | ||||||||||||||
Receive SOFR/pay 1-month term SOFR | 5,823 | 642 | — | — | — | — | ||||||||||||||
Receive SOFR/pay 1-month term SOFR - forward-starting | 1,054 | 10,669 | 11,134 | 6,721 | 870 | — | ||||||||||||||
Interest rate collars - forward-starting | 158 | 1,260 | 1,001 | 240 | — | — | ||||||||||||||
Floor spreads - forward-starting | — | 1,030 | 1,500 | 467 | — | — | ||||||||||||||
Total | $27,412 | $40,317 | $41,822 | $22,261 | $4,173 | $643 | ||||||||||||||
Weighted average receive fixed rate | 4.3 | % | 3.2 | % | 3.1 | % | 3.2 | % | 3.4 | % | 2.6 | % | ||||||||
Weighted average pay fixed rate | 3.4 | 3.4 | 3.4 | 3.4 | 3.4 | 3.4 |
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, | ||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Amount of pre-tax net gains (losses) recognized in OCI | ($680) | ($244) | ($447) | ($905) | |||||||||||||||||||
Amount of pre-tax net gains (losses) reclassified from AOCI into interest income | (137) | 12 | (264) | 49 | |||||||||||||||||||
Amount of pre-tax net gains (losses) reclassified from AOCI into interest expense | 1 | (1) | 1 | (6) |
Table 25: Results of Modeled and Non-Modeled Measures for Regulatory Capital Calculations | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | For the Three Months Ended June 30, 2023 | For the Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Market Risk Category | Period End | Average | High | Low | Period End | Average | High | Low | ||||||||||||||||||||||||||||||||||||||||||
Interest Rate | $3 | $2 | $7 | $1 | $1 | $1 | $2 | $1 | ||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Currency Rate | — | — | — | — | — | — | 4 | — | ||||||||||||||||||||||||||||||||||||||||||
Credit Spread | 2 | 2 | 3 | 1 | 3 | 3 | 4 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Commodity | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
General VaR | 5 | 3 | 8 | 1 | 3 | 3 | 4 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Specific Risk VaR | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total VaR | $5 | $3 | $8 | $1 | $3 | $3 | $4 | $2 | ||||||||||||||||||||||||||||||||||||||||||
Stressed General VaR | $13 | $10 | $20 | $7 | $14 | $15 | $20 | $10 | ||||||||||||||||||||||||||||||||||||||||||
Stressed Specific Risk VaR | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total Stressed VaR | $13 | $10 | $20 | $7 | $14 | $15 | $20 | $10 | ||||||||||||||||||||||||||||||||||||||||||
Market Risk Regulatory Capital | $38 | $54 | ||||||||||||||||||||||||||||||||||||||||||||||||
Specific Risk Not Modeled Add-on | 21 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||
de Minimis Exposure Add-on | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Market Risk Regulatory Capital | $59 | $76 | ||||||||||||||||||||||||||||||||||||||||||||||||
Market Risk-Weighted Assets | $735 | $955 |
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, | |||||||||||||||||||||||||
(dollars in millions, except per share data) | Ref. | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||
Noninterest income, Underlying: | ||||||||||||||||||||||||||
Noninterest income (GAAP) | A | $506 | $494 | $991 | $992 | |||||||||||||||||||||
Less: Notable items | — | (31) | — | (31) | ||||||||||||||||||||||
Noninterest income, Underlying (non-GAAP) | B | $506 | $525 | $991 | $1,023 | |||||||||||||||||||||
Total revenue, Underlying: | ||||||||||||||||||||||||||
Total revenue (GAAP) | C | $2,094 | $1,999 | $4,222 | $3,644 | |||||||||||||||||||||
Less: Notable items | — | (31) | — | (31) | ||||||||||||||||||||||
Total revenue, Underlying (non-GAAP) | D | $2,094 | $2,030 | $4,222 | $3,675 | |||||||||||||||||||||
Noninterest expense, Underlying: | ||||||||||||||||||||||||||
Noninterest expense (GAAP) | E | $1,306 | $1,305 | $2,602 | $2,411 | |||||||||||||||||||||
Less: Notable items | 73 | 125 | 139 | 173 | ||||||||||||||||||||||
Noninterest expense, Underlying (non-GAAP) | F | $1,233 | $1,180 | $2,463 | $2,238 | |||||||||||||||||||||
Pre-provision profit: | ||||||||||||||||||||||||||
Total revenue (GAAP) | C | $2,094 | $1,999 | $4,222 | $3,644 | |||||||||||||||||||||
Less: Noninterest expense (GAAP) | E | 1,306 | 1,305 | 2,602 | 2,411 | |||||||||||||||||||||
Pre-provision profit (GAAP) | $788 | $694 | $1,620 | $1,233 | ||||||||||||||||||||||
Pre-provision profit, Underlying | ||||||||||||||||||||||||||
Total revenue, Underlying (non-GAAP) | D | $2,094 | $2,030 | $4,222 | $3,675 | |||||||||||||||||||||
Less: Noninterest expense, Underlying (non-GAAP) | F | 1,233 | 1,180 | 2,463 | 2,238 | |||||||||||||||||||||
Pre-provision profit, Underlying (non-GAAP) | $861 | $850 | $1,759 | $1,437 | ||||||||||||||||||||||
Provision (benefit) for credit losses, Underlying: | ||||||||||||||||||||||||||
Provision (benefit) for credit losses (GAAP) | $176 | $216 | $344 | $219 | ||||||||||||||||||||||
Less: Notable items | — | 145 | — | 169 | ||||||||||||||||||||||
Provision (benefit) for credit losses, Underlying (non-GAAP) | $176 | $71 | $344 | $50 | ||||||||||||||||||||||
Income before income tax expense, Underlying: | ||||||||||||||||||||||||||
Income before income tax expense (GAAP) | G | $612 | $478 | $1,276 | $1,014 | |||||||||||||||||||||
Less: Income (loss) before income tax expense (benefit) related to notable items | (73) | (301) | (139) | (373) | ||||||||||||||||||||||
Income before income tax expense, Underlying (non-GAAP) | H | $685 | $779 | $1,415 | $1,387 | |||||||||||||||||||||
Income tax expense and effective income tax rate, Underlying: | ||||||||||||||||||||||||||
Income tax expense (GAAP) | I | $134 | $114 | $287 | $230 | |||||||||||||||||||||
Less: Income tax expense (benefit) related to notable items | (20) | (70) | (37) | (86) | ||||||||||||||||||||||
Income tax expense, Underlying (non-GAAP) | J | $154 | $184 | $324 | $316 | |||||||||||||||||||||
Effective income tax rate (GAAP) | I/G | 22.09 | % | 23.77 | % | 22.55 | % | 22.68 | % | |||||||||||||||||
Effective income tax rate, Underlying (non-GAAP) | J/H | 22.51 | 23.69 | 22.89 | 22.82 | |||||||||||||||||||||
Net income, Underlying: | ||||||||||||||||||||||||||
Net income (GAAP) | K | $478 | $364 | $989 | $784 | |||||||||||||||||||||
Add: Notable items, net of income tax benefit | 53 | 231 | 102 | 287 | ||||||||||||||||||||||
Net income, Underlying (non-GAAP) | L | $531 | $595 | $1,091 | $1,071 | |||||||||||||||||||||
Net income available to common stockholders, Underlying: | ||||||||||||||||||||||||||
Net income available to common stockholders (GAAP) | M | $444 | $332 | $932 | $728 | |||||||||||||||||||||
Add: Notable items, net of income tax benefit | 53 | 231 | 102 | 287 | ||||||||||||||||||||||
Net income available to common stockholders, Underlying (non-GAAP) | N | $497 | $563 | $1,034 | $1,015 | |||||||||||||||||||||
Return on average common equity and return on average common equity, Underlying: | ||||||||||||||||||||||||||
Average common equity (GAAP) | O | $22,289 | $22,383 | $21,997 | $21,686 | |||||||||||||||||||||
Return on average common equity | M/O | 8.00 | % | 5.95 | % | 8.54 | % | 6.77 | % | |||||||||||||||||
Return on average common equity, Underlying (non-GAAP) | N/O | 8.97 | 10.06 | 9.48 | 9.43 |
As of and for the Three Months Ended June 30, | As of and for the Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions, except per share data) | Ref. | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||
Return on average tangible common equity and return on average tangible common equity, Underlying: | ||||||||||||||||||||||||||
Average common equity (GAAP) | O | $22,289 | $22,383 | $21,997 | $21,686 | |||||||||||||||||||||
Less: Average goodwill (GAAP) | 8,182 | 8,015 | 8,179 | 7,588 | ||||||||||||||||||||||
Less: Average other intangibles (GAAP) | 181 | 213 | 186 | 147 | ||||||||||||||||||||||
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 422 | 416 | 421 | 400 | ||||||||||||||||||||||
Average tangible common equity | P | $14,348 | $14,571 | $14,053 | $14,351 | |||||||||||||||||||||
Return on average tangible common equity | M/P | 12.42 | % | 9.13 | % | 13.37 | % | 10.22 | % | |||||||||||||||||
Return on average tangible common equity, Underlying (non-GAAP) | N/P | 13.93 | 15.45 | 14.84 | 14.25 | |||||||||||||||||||||
Return on average total assets and return on average total assets, Underlying: | ||||||||||||||||||||||||||
Average total assets (GAAP) | Q | $222,373 | $220,967 | $222,541 | $204,732 | |||||||||||||||||||||
Return on average total assets | K/Q | 0.86 | % | 0.66 | % | 0.90 | % | 0.77 | % | |||||||||||||||||
Return on average total assets, Underlying (non-GAAP) | L/Q | 0.96 | 1.08 | 0.99 | 1.05 | |||||||||||||||||||||
Return on average total tangible assets and return on average total tangible assets, Underlying: | ||||||||||||||||||||||||||
Average total assets (GAAP) | Q | $222,373 | $220,967 | $222,541 | $204,732 | |||||||||||||||||||||
Less: Average goodwill (GAAP) | 8,182 | 8,015 | 8,179 | 7,588 | ||||||||||||||||||||||
Less: Average other intangibles (GAAP) | 181 | 213 | 186 | 147 | ||||||||||||||||||||||
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 422 | 416 | 421 | 400 | ||||||||||||||||||||||
Average tangible assets | R | $214,432 | $213,155 | $214,597 | $197,397 | |||||||||||||||||||||
Return on average total tangible assets | K/R | 0.89 | % | 0.69 | % | 0.93 | % | 0.80 | % | |||||||||||||||||
Return on average total tangible assets, Underlying (non-GAAP) | L/R | 0.99 | 1.12 | 1.03 | 1.09 | |||||||||||||||||||||
Efficiency ratio and efficiency ratio, Underlying: | ||||||||||||||||||||||||||
Efficiency ratio | E/C | 62.34 | % | 65.27 | % | 61.62 | % | 66.16 | % | |||||||||||||||||
Efficiency ratio, Underlying (non-GAAP) | F/D | 58.86 | 58.16 | 58.34 | 60.90 | |||||||||||||||||||||
Noninterest income as a % of total revenue, Underlying: | ||||||||||||||||||||||||||
Noninterest income as a % of total revenue | A/C | 24.14 | % | 24.72 | % | 23.47 | % | 27.22 | % | |||||||||||||||||
Noninterest income as a % of total revenue, Underlying (non-GAAP) | B/D | 24.14 | 25.88 | 23.47 | 27.84 | |||||||||||||||||||||
Operating leverage and operating leverage, Underlying: | ||||||||||||||||||||||||||
Increase in total revenue | 4.77 | % | 24.24 | % | 15.88 | % | 11.51 | % | ||||||||||||||||||
Increase in noninterest expense | 0.06 | 31.58 | 7.93 | 19.97 | ||||||||||||||||||||||
Operating leverage | 4.71 | % | (7.34) | % | 7.95 | % | (8.46) | % | ||||||||||||||||||
Increase in total revenue, Underlying (non-GAAP) | 3.16 | % | 26.18 | % | 14.90 | % | 12.46 | % | ||||||||||||||||||
Increase in noninterest expense, Underlying (non-GAAP) | 4.39 | 20.47 | 10.08 | 13.11 | ||||||||||||||||||||||
Operating leverage, Underlying (non-GAAP) | (1.23) | % | 5.71 | % | 4.82 | % | (0.65) | % | ||||||||||||||||||
Tangible book value per common share: | ||||||||||||||||||||||||||
Common shares - at period end (GAAP) | S | 474,682,759 | 495,650,259 | 474,682,759 | 495,650,259 | |||||||||||||||||||||
Common stockholders' equity (GAAP) | $21,571 | $22,314 | $21,571 | $22,314 | ||||||||||||||||||||||
Less: Goodwill (GAAP) | 8,188 | 8,081 | 8,188 | 8,081 | ||||||||||||||||||||||
Less: Other intangible assets (GAAP) | 175 | 211 | 175 | 211 | ||||||||||||||||||||||
Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 422 | 422 | 422 | 422 | ||||||||||||||||||||||
Tangible common equity | T | $13,630 | $14,444 | $13,630 | $14,444 | |||||||||||||||||||||
Tangible book value per common share | T/S | $28.72 | $29.14 | $28.72 | $29.14 | |||||||||||||||||||||
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) | U | 479,470,543 | 491,497,026 | 482,440,926 | 457,140,258 | |||||||||||||||||||||
Average common shares outstanding - diluted (GAAP) | V | 480,975,281 | 493,296,114 | 484,252,103 | 459,167,747 | |||||||||||||||||||||
Net income per average common share - basic (GAAP) | M/U | $0.93 | $0.68 | $1.93 | $1.59 | |||||||||||||||||||||
Net income per average common share - diluted (GAAP) | M/V | 0.92 | 0.67 | 1.92 | 1.58 | |||||||||||||||||||||
Net income per average common share - basic, Underlying (non-GAAP) | N/U | 1.04 | 1.14 | 2.14 | 2.22 | |||||||||||||||||||||
Net income per average common share - diluted, Underlying (non-GAAP) | N/V | 1.04 | 1.14 | 2.14 | 2.21 | |||||||||||||||||||||
Dividend payout ratio and dividend payout ratio, Underlying: | ||||||||||||||||||||||||||
Cash dividends declared and paid per common share | W | $0.42 | $0.39 | $0.84 | $0.78 | |||||||||||||||||||||
Dividend payout ratio | W/(M/U) | 45 | % | 57 | % | 44 | % | 49 | % | |||||||||||||||||
Dividend payout ratio, Underlying (non-GAAP) | W/(N/U) | 40 | 34 | 39 | 35 |
Page | ||||||||
(dollars in millions, except par value) | June 30, 2023 | December 31, 2022 | |||||||||
ASSETS: | |||||||||||
Cash and due from banks(1) | $1,689 | $1,489 | |||||||||
Interest-bearing cash and due from banks | 9,878 | 9,058 | |||||||||
Interest-bearing deposits in banks | 284 | 303 | |||||||||
Debt securities available for sale, at fair value (including $1,393 and $270 pledged to creditors, respectively)(2) | 24,755 | 24,007 | |||||||||
Debt securities held to maturity (fair value of $8,728 and $9,042 respectively, and including $179 and $110 pledged to creditors, respectively)(2) | 9,520 | 9,834 | |||||||||
Loans held for sale, at fair value | 1,225 | 774 | |||||||||
Other loans held for sale | 196 | 208 | |||||||||
Loans and leases(1) | 151,320 | 156,662 | |||||||||
Less: Allowance for loan and lease losses | (2,044) | (1,983) | |||||||||
Net loans and leases | 149,276 | 154,679 | |||||||||
Derivative assets | 719 | 842 | |||||||||
Premises and equipment, net | 876 | 844 | |||||||||
Bank-owned life insurance | 3,263 | 3,236 | |||||||||
Goodwill | 8,188 | 8,173 | |||||||||
Other intangible assets(3) | 175 | 197 | |||||||||
Other assets(1) | 13,022 | 13,089 | |||||||||
TOTAL ASSETS | $223,066 | $226,733 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||||||
LIABILITIES: | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $40,286 | $49,283 | |||||||||
Interest-bearing | 137,381 | 131,441 | |||||||||
Total deposits | 177,667 | 180,724 | |||||||||
Short-term borrowed funds | 1,099 | 3 | |||||||||
Derivative liabilities | 2,270 | 1,909 | |||||||||
Long-term borrowed funds(1) | 14,100 | 15,887 | |||||||||
Other liabilities(1) | 4,345 | 4,520 | |||||||||
TOTAL LIABILITIES | 199,481 | 203,043 | |||||||||
Commitments and Contingencies (refer to Note 11) | |||||||||||
STOCKHOLDERS’ EQUITY: | |||||||||||
Preferred stock: | |||||||||||
$25.00 par value,100,000,000 shares authorized; 2,050,000 shares issued and outstanding at June 30, 2023 and December 31, 2022 | 2,014 | 2,014 | |||||||||
Common stock: | |||||||||||
$0.01 par value, 1,000,000,000 shares authorized; 647,357,402 shares issued and 474,682,759 shares outstanding at June 30, 2023 and 645,220,018 shares issued and 492,282,158 shares outstanding at December 31, 2022 | 6 | 6 | |||||||||
Additional paid-in capital | 22,207 | 22,142 | |||||||||
Retained earnings | 9,655 | 9,159 | |||||||||
Treasury stock, at cost, 172,674,643 and 152,937,860 shares at June 30, 2023 and December 31, 2022, respectively | (5,734) | (5,071) | |||||||||
Accumulated other comprehensive income (loss) | (4,563) | (4,560) | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 23,585 | 23,690 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $223,066 | $226,733 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
INTEREST INCOME: | |||||||||||||||||||||||
Interest and fees on loans and leases | $2,132 | $1,370 | $4,179 | $2,418 | |||||||||||||||||||
Interest and fees on loans held for sale | 20 | 17 | 35 | 33 | |||||||||||||||||||
Interest and fees on other loans held for sale | 12 | 25 | 17 | 32 | |||||||||||||||||||
Investment securities | 267 | 201 | 533 | 339 | |||||||||||||||||||
Interest-bearing deposits in banks | 100 | 13 | 169 | 17 | |||||||||||||||||||
Total interest income | 2,531 | 1,626 | 4,933 | 2,839 | |||||||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||||||
Deposits | 723 | 54 | 1,273 | 79 | |||||||||||||||||||
Short-term borrowed funds | 22 | 10 | 28 | 10 | |||||||||||||||||||
Long-term borrowed funds | 198 | 57 | 401 | 98 | |||||||||||||||||||
Total interest expense | 943 | 121 | 1,702 | 187 | |||||||||||||||||||
Net interest income | 1,588 | 1,505 | 3,231 | 2,652 | |||||||||||||||||||
Provision (benefit) for credit losses | 176 | 216 | 344 | 219 | |||||||||||||||||||
Net interest income after provision (benefit) for credit losses | 1,412 | 1,289 | 2,887 | 2,433 | |||||||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||||||
Service charges and fees | 101 | 108 | 201 | 206 | |||||||||||||||||||
Capital markets fees | 82 | 88 | 165 | 181 | |||||||||||||||||||
Card fees | 80 | 71 | 152 | 131 | |||||||||||||||||||
Mortgage banking fees | 59 | 72 | 116 | 141 | |||||||||||||||||||
Trust and investment services fees | 65 | 66 | 128 | 127 | |||||||||||||||||||
Foreign exchange and derivative products | 44 | 60 | 92 | 111 | |||||||||||||||||||
Letter of credit and loan fees | 43 | 40 | 83 | 78 | |||||||||||||||||||
Securities gains, net | 9 | 1 | 14 | 5 | |||||||||||||||||||
Other income | 23 | (12) | 40 | 12 | |||||||||||||||||||
Total noninterest income | 506 | 494 | 991 | 992 | |||||||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||||||
Salaries and employee benefits | 615 | 683 | 1,273 | 1,277 | |||||||||||||||||||
Outside services | 177 | 189 | 353 | 358 | |||||||||||||||||||
Equipment and software | 181 | 169 | 350 | 319 | |||||||||||||||||||
Occupancy | 136 | 111 | 260 | 194 | |||||||||||||||||||
Other operating expense | 197 | 153 | 366 | 263 | |||||||||||||||||||
Total noninterest expense | 1,306 | 1,305 | 2,602 | 2,411 | |||||||||||||||||||
Income before income tax expense | 612 | 478 | 1,276 | 1,014 | |||||||||||||||||||
Income tax expense | 134 | 114 | 287 | 230 | |||||||||||||||||||
NET INCOME | $478 | $364 | $989 | $784 | |||||||||||||||||||
Net income available to common stockholders | $444 | $332 | $932 | $728 | |||||||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||
Basic | 479,470,543 | 491,497,026 | 482,440,926 | 457,140,258 | |||||||||||||||||||
Diluted | 480,975,281 | 493,296,114 | 484,252,103 | 459,167,747 | |||||||||||||||||||
Per common share information: | |||||||||||||||||||||||
Basic earnings | $0.93 | $0.68 | $1.93 | $1.59 | |||||||||||||||||||
Diluted earnings | 0.92 | 0.67 | 1.92 | 1.58 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income | $478 | $364 | $989 | $784 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Net unrealized derivative instruments gains (losses) arising during the periods, net of income taxes of ($175), ($66), ($115) and ($236), respectively | (505) | (178) | (332) | (669) | |||||||||||||||||||
Reclassification adjustment for net derivative (gains) losses included in net income, net of income taxes of $35, ($3), $68 and ($11), respectively | 101 | (8) | 195 | (32) | |||||||||||||||||||
Net unrealized debt securities gains (losses) arising during the periods, net of income taxes of ($80), ($271), $29 and ($628), respectively | (239) | (779) | 88 | (1,856) | |||||||||||||||||||
Reclassification of net debt securities (gains) losses to net income, net of income taxes of $7, $0, $14 and ($1), respectively | 20 | (1) | 40 | (4) | |||||||||||||||||||
Reclassification of actuarial (gain) loss to net income, net of income taxes of $1, ($2), $2 and ($1), respectively | 3 | 6 | 6 | 8 | |||||||||||||||||||
Total other comprehensive income (loss), net of income taxes | (620) | (960) | (3) | (2,553) | |||||||||||||||||||
Total comprehensive income (loss) | ($142) | ($596) | $986 | ($1,769) |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||
(dollars and shares in millions) | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Balance at April 1, 2023 | 2 | $2,014 | 484 | $6 | $22,183 | $9,416 | ($5,475) | ($3,943) | $24,201 | |||||||||||||||||||||||
Dividends to common stockholders | — | — | — | — | — | (205) | — | — | (205) | |||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | — | (34) | — | — | (34) | |||||||||||||||||||||||
Treasury stock purchased | — | — | (10) | — | — | — | (256) | — | (256) | |||||||||||||||||||||||
Share repurchase excise tax | — | — | — | — | — | — | (3) | — | (3) | |||||||||||||||||||||||
Share-based compensation plans | — | — | 1 | — | 18 | — | — | — | 18 | |||||||||||||||||||||||
Employee stock purchase plan | — | — | — | — | 6 | — | — | — | 6 | |||||||||||||||||||||||
Total comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 478 | — | — | 478 | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | (620) | (620) | |||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | 478 | — | (620) | (142) | |||||||||||||||||||||||
Balance at June 30, 2023 | 2 | $2,014 | 475 | $6 | $22,207 | $9,655 | ($5,734) | ($4,563) | $23,585 |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||
(dollars and shares in millions) | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Balance at January 1, 2023 | 2 | $2,014 | 492 | $6 | $22,142 | $9,159 | ($5,071) | ($4,560) | $23,690 | |||||||||||||||||||||||
Dividends to common stockholders | — | — | — | — | — | (410) | — | — | (410) | |||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | — | (57) | — | — | (57) | |||||||||||||||||||||||
Treasury stock purchased | — | — | (20) | — | — | — | (656) | — | (656) | |||||||||||||||||||||||
Share repurchase excise tax | — | — | — | — | — | — | (7) | — | (7) | |||||||||||||||||||||||
Share-based compensation plans | — | — | 3 | — | 51 | — | — | — | 51 | |||||||||||||||||||||||
Employee stock purchase plan | — | — | — | — | 14 | — | — | — | 14 | |||||||||||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | — | — | (26) | — | — | (26) | |||||||||||||||||||||||
Total comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 989 | — | — | 989 | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | (3) | (3) | |||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | 989 | — | (3) | 986 | |||||||||||||||||||||||
Balance at June 30, 2023 | 2 | $2,014 | 475 | $6 | $22,207 | $9,655 | ($5,734) | ($4,563) | $23,585 |
Six Months Ended June 30, | |||||||||||
(dollars in millions) | 2023 | 2022 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $989 | $784 | |||||||||
Adjustments to reconcile net income to net change in cash due to operating activities: | |||||||||||
Provision (benefit) for credit losses | 344 | 219 | |||||||||
Net change in loans held for sale | (451) | 1,220 | |||||||||
Depreciation, amortization and accretion | 230 | 327 | |||||||||
Deferred income tax expense (benefit) | (40) | 78 | |||||||||
Share-based compensation | 55 | 52 | |||||||||
Net gain on sales of assets | (14) | (5) | |||||||||
Net (increase) decrease in other assets | (827) | (3,345) | |||||||||
Net increase (decrease) in other liabilities | 997 | 348 | |||||||||
Net change due to operating activities | 1,283 | (322) | |||||||||
INVESTING ACTIVITIES | |||||||||||
Investment securities: | |||||||||||
Purchases of debt securities available for sale | (3,206) | (8,638) | |||||||||
Proceeds from maturities and paydowns of debt securities available for sale | 929 | 2,164 | |||||||||
Proceeds from sales of debt securities available for sale | 1,632 | 1,057 | |||||||||
Proceeds from maturities and paydowns of debt securities held to maturity | 369 | 502 | |||||||||
Net (increase) decrease in interest-bearing deposits in banks | 19 | (153) | |||||||||
Acquisitions, net of cash acquired(1) | — | (234) | |||||||||
Purchases of loans | — | (979) | |||||||||
Sales of loans | 2,335 | 417 | |||||||||
Net (increase) decrease in loans and leases | 2,659 | (6,615) | |||||||||
Capital expenditures, net | (91) | (56) | |||||||||
Purchase of bank-owned life insurance | — | (100) | |||||||||
Other | (5) | (727) | |||||||||
Net change due to investing activities | 4,641 | (13,362) | |||||||||
FINANCING ACTIVITIES | |||||||||||
Net increase (decrease) in deposits | (3,057) | 4,347 | |||||||||
Net increase (decrease) in short-term borrowed funds | 1,096 | 3,674 | |||||||||
Proceeds from issuance of long-term borrowed funds | 12,217 | 5,217 | |||||||||
Repayments of long-term borrowed funds | (14,004) | (1,756) | |||||||||
Treasury stock purchased, including excise tax | (663) | (2) | |||||||||
Dividends paid to common stockholders | (410) | (360) | |||||||||
Dividends paid to preferred stockholders | (57) | (56) | |||||||||
Payments of employee tax withholding for share-based compensation | (26) | (24) | |||||||||
Net change due to financing activities | (4,904) | 11,040 | |||||||||
Net change in cash and cash equivalents(2) | 1,020 | (2,644) | |||||||||
Cash and cash equivalents at beginning of period(2) | 10,547 | 9,158 | |||||||||
Cash and cash equivalents at end of period(2) | $11,567 | $6,514 | |||||||||
Non-cash items: | |||||||||||
Transfer of loans from portfolio to LHFS | $2,401 | $— | |||||||||
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 |
Pronouncement | Summary of Guidance | Effects on Financial Statements | ||||||
Troubled Debt Restructurings and Vintage Disclosures Issued March 2022 | •Effective date: January 1, 2023. •Eliminates the separate recognition and measurement guidance for TDRs. •Requires evaluation of all modifications to borrowers experiencing financial difficulty (or FDMs) 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. | •The Company adopted the new standard on January 1, 2023, and elected to apply the new measurement and recognition guidance for legacy TDRs under the modified retrospective transition method. •Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Required disclosures and discussion of significant accounting policies for modifications to borrowers experiencing financial difficulty are included in Note 4. •Disclosure of gross charge-offs by vintage year did not have a material impact on the Company’s Consolidated Financial Statements. | ||||||
Fair Value Hedging - Portfolio Layer Method Issued March 2022 | •Effective date: January 1, 2023. •Replaces the ‘last-of-layer’ method. •Allows the designation of multiple layers in a closed portfolio of financial assets. •Permits hedging of non-prepayable and 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. | •The Company adopted the new standard on January 1, 2023. •Adoption did not have a material impact on the Company’s Consolidated Financial Statements. | ||||||
Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023 | •Effective date: January 1, 2024. •Permits use of the proportional amortization method of accounting for all tax equity investments provided that certain conditions are met. •Proportional amortization method is elected on a tax-credit-program-by-tax-credit-program basis. •Permits adoption under the modified retrospective method or retrospective method through a cumulative-effect adjustment to retained earnings as of the beginning of the current period or first period presented, respectively. Early adoption is permitted. | •The Company adopted the new standard on January 1, 2023 for renewable energy and new markets tax credit investments, under the modified retrospective approach. •Adoption resulted in a cumulative-effect reduction of $26 million, net of taxes, to retained earnings and a corresponding reduction to other assets of $101 million and other liabilities of $75 million, reflecting the elimination of deferred tax liabilities associated with renewable energy investments that qualify for the proportional amortization method of accounting. •Refer to Note 6 for additional information. |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
(dollars in millions) | Amortized Cost(1) | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||
U.S. Treasury and other | $3,429 | $— | ($193) | $3,236 | $3,678 | $1 | ($193) | $3,486 | |||||||||||||||||||||
State and political subdivisions | 2 | — | — | 2 | 2 | — | — | 2 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 22,154 | 4 | (2,116) | 20,042 | 21,250 | 10 | (2,198) | 19,062 | |||||||||||||||||||||
Other/non-agency | 279 | — | (32) | 247 | 280 | — | (29) | 251 | |||||||||||||||||||||
Total mortgage-backed securities | 22,433 | 4 | (2,148) | 20,289 | 21,530 | 10 | (2,227) | 19,313 | |||||||||||||||||||||
Collateralized loan obligations | 1,248 | — | (20) | 1,228 | 1,248 | — | (42) | 1,206 | |||||||||||||||||||||
Total debt securities available for sale, at fair value | $27,112 | $4 | ($2,361) | $24,755 | $26,458 | $11 | ($2,462) | $24,007 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $8,990 | $4 | ($769) | $8,225 | $9,253 | $4 | ($751) | $8,506 | |||||||||||||||||||||
Total mortgage-backed securities | 8,990 | 4 | (769) | 8,225 | 9,253 | 4 | (751) | 8,506 | |||||||||||||||||||||
Asset-backed securities | 530 | 2 | (29) | 503 | 581 | — | (45) | 536 | |||||||||||||||||||||
Total debt securities held to maturity | $9,520 | $6 | ($798) | $8,728 | $9,834 | $4 | ($796) | $9,042 | |||||||||||||||||||||
Equity securities, at cost | $917 | $— | $— | $917 | $1,058 | $— | $— | $1,058 | |||||||||||||||||||||
Equity securities, at fair value | 147 | — | — | 147 | 153 | — | — | 153 |
Distribution of Maturities | |||||||||||||||||
(dollars 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 | $— | $2,489 | $940 | $— | $3,429 | ||||||||||||
State and political subdivisions | — | — | 2 | 2 | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | 1,295 | 2,530 | 18,329 | 22,154 | ||||||||||||
Other/non-agency | — | — | — | 279 | 279 | ||||||||||||
Collateralized loan obligations | — | — | 24 | 1,224 | 1,248 | ||||||||||||
Total debt securities available for sale | — | 3,784 | 3,494 | 19,834 | 27,112 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 8,990 | 8,990 | ||||||||||||
Asset-backed securities | — | 530 | — | — | 530 | ||||||||||||
Total debt securities held to maturity | — | 530 | — | 8,990 | 9,520 | ||||||||||||
Total amortized cost of debt securities | $— | $4,314 | $3,494 | $28,824 | $36,632 | ||||||||||||
Fair value: | |||||||||||||||||
U.S. Treasury and other | $— | $2,351 | $885 | $— | $3,236 | ||||||||||||
State and political subdivisions | — | — | — | 2 | 2 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | 1,229 | 2,361 | 16,452 | 20,042 | ||||||||||||
Other/non-agency | — | — | — | 247 | 247 | ||||||||||||
Collateralized loan obligations | — | — | 24 | 1,204 | 1,228 | ||||||||||||
Total debt securities available for sale | — | 3,580 | 3,270 | 17,905 | 24,755 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 8,225 | 8,225 | ||||||||||||
Asset-backed securities | — | 503 | — | — | 503 | ||||||||||||
Total debt securities held to maturity | — | 503 | — | 8,225 | 8,728 | ||||||||||||
Total fair value of debt securities | $— | $4,083 | $3,270 | $26,130 | $33,483 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Gains | $9 | $2 | $18 | $9 | |||||||||||||||||||
Losses | — | (1) | (4) | (4) | |||||||||||||||||||
Securities gains, net | $9 | $1 | $14 | $5 | |||||||||||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||||||||
(dollars in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Pledged against derivatives, to qualify for fiduciary powers, or to secure public and other deposits as required by law | $5,336 | $4,762 | $3,966 | $3,527 | |||||||||||||
Pledged as collateral for FHLB borrowing capacity | 243 | 214 | 244 | 217 | |||||||||||||
Pledged against repurchase agreements | 1,248 | 1,228 | — | — |
June 30, 2023 | ||||||||||||||||||||||||||
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 | $2,983 | ($173) | $253 | ($20) | $3,236 | ($193) | ||||||||||||||||||||
State and political subdivisions | 2 | — | — | — | 2 | — | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 7,552 | (351) | 11,771 | (1,765) | 19,323 | (2,116) | ||||||||||||||||||||
Other/non-agency | — | — | 247 | (32) | 247 | (32) | ||||||||||||||||||||
Total mortgage-backed securities | 7,552 | (351) | 12,018 | (1,797) | 19,570 | (2,148) | ||||||||||||||||||||
Collateralized loan obligations | — | — | 1,228 | (20) | 1,228 | (20) | ||||||||||||||||||||
Total | $10,537 | ($524) | $13,499 | ($1,837) | $24,036 | ($2,361) |
December 31, 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 | $3,356 | ($193) | $— | $— | $3,356 | ($193) | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 13,353 | (1,136) | 5,042 | (1,062) | 18,395 | (2,198) | ||||||||||||||||||||
Other/non-agency | 80 | (8) | 171 | (21) | 251 | (29) | ||||||||||||||||||||
Total mortgage-backed securities | 13,433 | (1,144) | 5,213 | (1,083) | 18,646 | (2,227) | ||||||||||||||||||||
Collateralized loan obligations | 785 | (26) | 421 | (16) | 1,206 | (42) | ||||||||||||||||||||
Total | $17,574 | ($1,363) | $5,634 | ($1,099) | $23,208 | ($2,462) |
(dollars in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Commercial and industrial | $48,038 | $51,836 | |||||||||
Commercial real estate | 28,947 | 28,865 | |||||||||
Leases | 1,294 | 1,479 | |||||||||
Total commercial | 78,279 | 82,180 | |||||||||
Residential mortgages | 30,769 | 29,921 | |||||||||
Home equity | 14,487 | 14,043 | |||||||||
Automobile | 10,428 | 12,292 | |||||||||
Education | 12,246 | 12,808 | |||||||||
Other retail | 5,111 | 5,418 | |||||||||
Total retail | 73,041 | 74,482 | |||||||||
Total loans and leases | $151,320 | $156,662 |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(dollars in millions) | Residential Mortgages(1) | Commercial(2) | Total | Residential Mortgages(1) | Commercial(2) | Total | |||||||||||||||||
Loans held for sale at fair value | $1,163 | $62 | $1,225 | $666 | $108 | $774 | |||||||||||||||||
Other loans held for sale | — | 196 | 196 | — | 208 | 208 |
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | ||||||||||||||||||||||
(dollars in millions) | Commercial | Retail | Total | Commercial | Retail | Total | |||||||||||||||||
Allowance for loan and lease losses, beginning of period | $1,111 | $906 | $2,017 | $1,060 | $923 | $1,983 | |||||||||||||||||
Charge-offs | (79) | (110) | (189) | (138) | (222) | (360) | |||||||||||||||||
Recoveries | 3 | 34 | 37 | 10 | 65 | 75 | |||||||||||||||||
Net charge-offs | (76) | (76) | (152) | (128) | (157) | (285) | |||||||||||||||||
Provision expense (benefit) for loans and leases | 122 | 57 | 179 | 225 | 121 | 346 | |||||||||||||||||
Allowance for loan and lease losses, end of period | 1,157 | 887 | 2,044 | 1,157 | 887 | 2,044 | |||||||||||||||||
Allowance for unfunded lending commitments, beginning of period | 215 | 43 | 258 | 207 | 50 | 257 | |||||||||||||||||
Provision expense (benefit) for unfunded lending commitments | (2) | (1) | (3) | 6 | (8) | (2) | |||||||||||||||||
Allowance for unfunded lending commitments, end of period | 213 | 42 | 255 | 213 | 42 | 255 | |||||||||||||||||
Total allowance for credit losses, end of period | $1,370 | $929 | $2,299 | $1,370 | $929 | $2,299 |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | ||||||||||||||||||||||
(dollars 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 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior to 2019 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $1,946 | $7,317 | $6,579 | $1,502 | $1,382 | $2,553 | $22,996 | $157 | $44,432 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 8 | 145 | 256 | 137 | 64 | 186 | 493 | 1 | 1,290 | |||||||||||||||||||||||||||||||||||||||||
Substandard | — | 287 | 331 | 232 | 134 | 363 | 685 | 4 | 2,036 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | 31 | 28 | 4 | 6 | 110 | 97 | 4 | 280 | |||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 1,954 | 7,780 | 7,194 | 1,875 | 1,586 | 3,212 | 24,271 | 166 | 48,038 | |||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | — | 1 | 32 | 4 | 1 | 5 | 29 | — | 72 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 958 | 5,314 | 6,361 | 3,098 | 2,474 | 4,633 | 1,830 | 4 | 24,672 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | — | 489 | 378 | 205 | 467 | 173 | 205 | — | 1,917 | |||||||||||||||||||||||||||||||||||||||||
Substandard | — | 215 | 78 | 323 | 455 | 917 | 20 | — | 2,008 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | 91 | 1 | 6 | 103 | 148 | 1 | — | 350 | |||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 958 | 6,109 | 6,818 | 3,632 | 3,499 | 5,871 | 2,056 | 4 | 28,947 | |||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | — | — | — | 22 | 6 | 38 | — | — | 66 | |||||||||||||||||||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 63 | 190 | 306 | 210 | 76 | 358 | — | — | 1,203 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | — | 33 | 6 | 3 | 2 | 1 | — | — | 45 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 3 | 13 | 10 | 7 | 7 | 3 | — | — | 43 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | 3 | — | — | — | — | — | 3 | |||||||||||||||||||||||||||||||||||||||||
Total leases | 66 | 236 | 325 | 220 | 85 | 362 | — | — | 1,294 | |||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 2,967 | 12,821 | 13,246 | 4,810 | 3,932 | 7,544 | 24,826 | 161 | 70,307 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 8 | 667 | 640 | 345 | 533 | 360 | 698 | 1 | 3,252 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 3 | 515 | 419 | 562 | 596 | 1,283 | 705 | 4 | 4,087 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | 122 | 32 | 10 | 109 | 258 | 98 | 4 | 633 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | $2,978 | $14,125 | $14,337 | $5,727 | $5,170 | $9,445 | $26,327 | $170 | $78,279 | |||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | $— | $1 | $32 | $26 | $7 | $43 | $29 | $— | $138 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior to 2018 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $8,304 | $8,469 | $2,224 | $2,074 | $1,334 | $1,952 | $24,211 | $148 | $48,716 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 124 | 189 | 120 | 74 | 48 | 153 | 364 | — | 1,072 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 150 | 218 | 203 | 255 | 99 | 349 | 597 | 14 | 1,885 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 10 | 14 | 1 | 5 | 41 | 14 | 76 | 2 | 163 | |||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 8,588 | 8,890 | 2,548 | 2,408 | 1,522 | 2,468 | 25,248 | 164 | 51,836 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 5,767 | 6,442 | 3,639 | 3,066 | 2,145 | 3,536 | 1,888 | 3 | 26,486 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 1 | 119 | 103 | 390 | 99 | 113 | 62 | — | 887 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 92 | 18 | 79 | 253 | 350 | 610 | 23 | — | 1,425 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | 2 | 9 | 55 | — | 1 | — | — | 67 | |||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 5,860 | 6,581 | 3,830 | 3,764 | 2,594 | 4,260 | 1,973 | 3 | 28,865 | |||||||||||||||||||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 263 | 363 | 250 | 99 | 128 | 345 | — | — | 1,448 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 4 | 5 | 2 | 6 | 1 | 3 | — | — | 21 | |||||||||||||||||||||||||||||||||||||||||
Substandard | — | 4 | 3 | 3 | — | — | — | — | 10 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Total leases | 267 | 372 | 255 | 108 | 129 | 348 | — | — | 1,479 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 14,334 | 15,274 | 6,113 | 5,239 | 3,607 | 5,833 | 26,099 | 151 | 76,650 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 129 | 313 | 225 | 470 | 148 | 269 | 426 | — | 1,980 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 242 | 240 | 285 | 511 | 449 | 959 | 620 | 14 | 3,320 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 10 | 16 | 10 | 60 | 41 | 15 | 76 | 2 | 230 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | $14,715 | $15,843 | $6,633 | $6,280 | $4,245 | $7,076 | $27,221 | $167 | $82,180 | |||||||||||||||||||||||||||||||||||||||||
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior to 2019 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | $381 | $2,785 | $5,168 | $3,187 | $1,173 | $3,305 | $— | $— | $15,999 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 696 | 2,137 | 2,715 | 1,510 | 609 | 1,759 | — | — | 9,426 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 198 | 656 | 835 | 472 | 292 | 919 | — | — | 3,372 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 27 | 120 | 151 | 107 | 120 | 495 | — | — | 1,020 | |||||||||||||||||||||||||||||||||||||||||
<620 | 2 | 34 | 86 | 86 | 157 | 564 | — | — | 929 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | — | — | 2 | 1 | 3 | 17 | — | — | 23 | |||||||||||||||||||||||||||||||||||||||||
Total residential mortgages | 1,304 | 5,732 | 8,957 | 5,363 | 2,354 | 7,059 | — | — | 30,769 | |||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | — | — | — | — | 1 | 1 | — | — | 2 | |||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | — | 4 | 5 | 2 | 5 | 100 | 5,005 | 250 | 5,371 | |||||||||||||||||||||||||||||||||||||||||
740-799 | — | 2 | 2 | 1 | 4 | 94 | 4,514 | 251 | 4,868 | |||||||||||||||||||||||||||||||||||||||||
680-739 | — | — | 1 | 1 | 6 | 109 | 2,490 | 223 | 2,830 | |||||||||||||||||||||||||||||||||||||||||
620-679 | — | 1 | — | 2 | 9 | 92 | 648 | 140 | 892 | |||||||||||||||||||||||||||||||||||||||||
<620 | — | — | — | 1 | 10 | 90 | 251 | 174 | 526 | |||||||||||||||||||||||||||||||||||||||||
Total home equity | — | 7 | 8 | 7 | 34 | 485 | 12,908 | 1,038 | 14,487 | |||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | — | — | — | — | — | 2 | 3 | — | 5 | |||||||||||||||||||||||||||||||||||||||||
Automobile | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 92 | 606 | 1,274 | 478 | 238 | 97 | — | — | 2,785 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 162 | 810 | 1,306 | 502 | 246 | 104 | — | — | 3,130 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 186 | 737 | 922 | 343 | 178 | 81 | — | — | 2,447 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 122 | 418 | 445 | 152 | 95 | 50 | — | — | 1,282 | |||||||||||||||||||||||||||||||||||||||||
<620 | 30 | 214 | 293 | 112 | 81 | 53 | — | — | 783 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 1 | — | — | — | — | — | — | — | 1 | |||||||||||||||||||||||||||||||||||||||||
Total automobile | 593 | 2,785 | 4,240 | 1,587 | 838 | 385 | — | — | 10,428 | |||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | — | 15 | 21 | 7 | 6 | 5 | — | — | 54 | |||||||||||||||||||||||||||||||||||||||||
Education | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 109 | 665 | 1,702 | 1,495 | 649 | 1,326 | — | — | 5,946 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 166 | 758 | 1,176 | 982 | 413 | 755 | — | — | 4,250 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 64 | 326 | 367 | 300 | 148 | 338 | — | — | 1,543 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 10 | 62 | 66 | 55 | 34 | 116 | — | — | 343 | |||||||||||||||||||||||||||||||||||||||||
<620 | 1 | 13 | 21 | 21 | 14 | 51 | — | — | 121 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 4 | — | — | — | — | 39 | — | — | 43 | |||||||||||||||||||||||||||||||||||||||||
Total education | 354 | 1,824 | 3,332 | 2,853 | 1,258 | 2,625 | — | — | 12,246 | |||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | — | 3 | 6 | 10 | 7 | 23 | — | — | 49 | |||||||||||||||||||||||||||||||||||||||||
Other retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 32 | 144 | 65 | 58 | 30 | 32 | 522 | — | 883 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 48 | 166 | 79 | 75 | 40 | 33 | 1,042 | 1 | 1,484 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 42 | 125 | 66 | 63 | 31 | 20 | 1,060 | 3 | 1,410 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 25 | 75 | 38 | 31 | 11 | 7 | 450 | 3 | 640 | |||||||||||||||||||||||||||||||||||||||||
<620 | 5 | 37 | 23 | 18 | 6 | 3 | 212 | 3 | 307 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 2 | 4 | — | 2 | — | — | 378 | 1 | 387 | |||||||||||||||||||||||||||||||||||||||||
Total other retail | 154 | 551 | 271 | 247 | 118 | 95 | 3,664 | 11 | 5,111 | |||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | 19 | 20 | 7 | 5 | 7 | 5 | 49 | — | 112 | |||||||||||||||||||||||||||||||||||||||||
Total retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 614 | 4,204 | 8,214 | 5,220 | 2,095 | 4,860 | 5,527 | 250 | 30,984 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 1,072 | 3,873 | 5,278 | 3,070 | 1,312 | 2,745 | 5,556 | 252 | 23,158 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 490 | 1,844 | 2,191 | 1,179 | 655 | 1,467 | 3,550 | 226 | 11,602 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 184 | 676 | 700 | 347 | 269 | 760 | 1,098 | 143 | 4,177 | |||||||||||||||||||||||||||||||||||||||||
<620 | 38 | 298 | 423 | 238 | 268 | 761 | 463 | 177 | 2,666 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 7 | 4 | 2 | 3 | 3 | 56 | 378 | 1 | 454 | |||||||||||||||||||||||||||||||||||||||||
Total retail | $2,405 | $10,899 | $16,808 | $10,057 | $4,602 | $10,649 | $16,572 | $1,049 | $73,041 | |||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | $19 | $38 | $34 | $22 | $21 | $36 | $52 | $— | $222 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior to 2018 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | $2,132 | $4,943 | $3,143 | $1,180 | $363 | $3,081 | $— | $— | $14,842 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 2,376 | 2,991 | 1,660 | 638 | 257 | 1,635 | — | — | 9,557 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 769 | 899 | 502 | 308 | 149 | 851 | — | — | 3,478 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 125 | 168 | 135 | 138 | 99 | 422 | — | — | 1,087 | |||||||||||||||||||||||||||||||||||||||||
<620 | 17 | 68 | 77 | 165 | 147 | 455 | — | — | 929 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 2 | 2 | 2 | 3 | 2 | 17 | — | — | 28 | |||||||||||||||||||||||||||||||||||||||||
Total residential mortgages | 5,421 | 9,071 | 5,519 | 2,432 | 1,017 | 6,461 | — | — | 29,921 | |||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 4 | 5 | 2 | 5 | 6 | 110 | 4,958 | 267 | 5,357 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 2 | 2 | 1 | 4 | 6 | 97 | 4,350 | 274 | 4,736 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 1 | 1 | 1 | 6 | 11 | 114 | 2,296 | 234 | 2,664 | |||||||||||||||||||||||||||||||||||||||||
620-679 | — | 1 | 2 | 9 | 16 | 93 | 558 | 143 | 822 | |||||||||||||||||||||||||||||||||||||||||
<620 | — | — | 2 | 12 | 18 | 82 | 178 | 172 | 464 | |||||||||||||||||||||||||||||||||||||||||
Total home equity | 7 | 9 | 8 | 36 | 57 | 496 | 12,340 | 1,090 | 14,043 | |||||||||||||||||||||||||||||||||||||||||
Automobile | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 650 | 1,453 | 584 | 324 | 120 | 54 | — | — | 3,185 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 962 | 1,606 | 649 | 343 | 134 | 56 | — | — | 3,750 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 920 | 1,187 | 460 | 254 | 102 | 44 | — | — | 2,967 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 554 | 586 | 205 | 133 | 62 | 28 | — | — | 1,568 | |||||||||||||||||||||||||||||||||||||||||
<620 | 188 | 309 | 130 | 106 | 56 | 31 | — | — | 820 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 2 | — | — | — | — | — | — | — | 2 | |||||||||||||||||||||||||||||||||||||||||
Total automobile | 3,276 | 5,141 | 2,028 | 1,160 | 474 | 213 | — | — | 12,292 | |||||||||||||||||||||||||||||||||||||||||
Education | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 548 | 1,720 | 1,567 | 694 | 410 | 1,068 | — | — | 6,007 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 735 | 1,351 | 1,126 | 486 | 267 | 609 | — | — | 4,574 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 363 | 423 | 356 | 170 | 103 | 288 | — | — | 1,703 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 54 | 76 | 62 | 38 | 29 | 102 | — | — | 361 | |||||||||||||||||||||||||||||||||||||||||
<620 | 6 | 16 | 20 | 12 | 11 | 50 | — | — | 115 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 6 | — | — | — | — | 42 | — | — | 48 | |||||||||||||||||||||||||||||||||||||||||
Total education | 1,712 | 3,586 | 3,131 | 1,400 | 820 | 2,159 | — | — | 12,808 | |||||||||||||||||||||||||||||||||||||||||
Other retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 182 | 105 | 93 | 48 | 25 | 27 | 491 | — | 971 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 230 | 134 | 121 | 68 | 31 | 25 | 974 | 1 | 1,584 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 175 | 109 | 103 | 52 | 21 | 14 | 993 | 4 | 1,471 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 108 | 65 | 52 | 18 | 8 | 4 | 435 | 4 | 694 | |||||||||||||||||||||||||||||||||||||||||
<620 | 35 | 30 | 25 | 9 | 4 | 2 | 190 | 6 | 301 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 12 | 1 | 3 | — | — | — | 380 | 1 | 397 | |||||||||||||||||||||||||||||||||||||||||
Total other retail | 742 | 444 | 397 | 195 | 89 | 72 | 3,463 | 16 | 5,418 | |||||||||||||||||||||||||||||||||||||||||
Total retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 3,516 | 8,226 | 5,389 | 2,251 | 924 | 4,340 | 5,449 | 267 | 30,362 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 4,305 | 6,084 | 3,557 | 1,539 | 695 | 2,422 | 5,324 | 275 | 24,201 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 2,228 | 2,619 | 1,422 | 790 | 386 | 1,311 | 3,289 | 238 | 12,283 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 841 | 896 | 456 | 336 | 214 | 649 | 993 | 147 | 4,532 | |||||||||||||||||||||||||||||||||||||||||
<620 | 246 | 423 | 254 | 304 | 236 | 620 | 368 | 178 | 2,629 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 22 | 3 | 5 | 3 | 2 | 59 | 380 | 1 | 475 | |||||||||||||||||||||||||||||||||||||||||
Total retail | $11,158 | $18,251 | $11,083 | $5,223 | $2,457 | $9,401 | $15,803 | $1,106 | $74,482 | |||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||
Days Past Due and Accruing | |||||||||||||||||||||||
(dollars in millions) | Current | 30-59 | 60-89 | 90+ | Nonaccrual | Total | Nonaccrual with no related ACL | ||||||||||||||||
Commercial and industrial | $47,727 | $18 | $11 | $2 | $280 | $48,038 | $72 | ||||||||||||||||
Commercial real estate | 28,514 | 24 | 57 | — | 352 | 28,947 | 23 | ||||||||||||||||
Leases | 1,291 | — | — | — | 3 | 1,294 | — | ||||||||||||||||
Total commercial | 77,532 | 42 | 68 | 2 | 635 | 78,279 | 95 | ||||||||||||||||
Residential mortgages(1) | 30,189 | 90 | 32 | 257 | 201 | 30,769 | 145 | ||||||||||||||||
Home equity | 14,157 | 55 | 24 | — | 251 | 14,487 | 155 | ||||||||||||||||
Automobile | 10,207 | 130 | 40 | — | 51 | 10,428 | 6 | ||||||||||||||||
Education | 12,169 | 33 | 19 | 3 | 22 | 12,246 | 3 | ||||||||||||||||
Other retail | 4,992 | 41 | 27 | 20 | 31 | 5,111 | 1 | ||||||||||||||||
Total retail | 71,714 | 349 | 142 | 280 | 556 | 73,041 | 310 | ||||||||||||||||
Total | $149,246 | $391 | $210 | $282 | $1,191 | $151,320 | $405 |
December 31, 2022 | |||||||||||||||||||||||
Days Past Due and Accruing | |||||||||||||||||||||||
(dollars in millions) | Current | 30-59 | 60-89 | 90+ | Nonaccrual | Total | Nonaccrual with no related ACL | ||||||||||||||||
Commercial and industrial | $51,389 | $152 | $25 | $21 | $249 | $51,836 | $64 | ||||||||||||||||
Commercial real estate | 28,665 | 51 | 45 | 1 | 103 | 28,865 | 7 | ||||||||||||||||
Leases | 1,475 | 4 | — | — | — | 1,479 | — | ||||||||||||||||
Total commercial | 81,529 | 207 | 70 | 22 | 352 | 82,180 | 71 | ||||||||||||||||
Residential mortgages(1) | 29,228 | 95 | 45 | 319 | 234 | 29,921 | 187 | ||||||||||||||||
Home equity | 13,719 | 64 | 19 | — | 241 | 14,043 | 185 | ||||||||||||||||
Automobile | 12,039 | 152 | 45 | — | 56 | 12,292 | 9 | ||||||||||||||||
Education | 12,718 | 36 | 17 | 4 | 33 | 12,808 | 3 | ||||||||||||||||
Other retail | 5,294 | 44 | 30 | 22 | 28 | 5,418 | 1 | ||||||||||||||||
Total retail | 72,998 | 391 | 156 | 345 | 592 | 74,482 | 385 | ||||||||||||||||
Total | $154,527 | $598 | $226 | $367 | $944 | $156,662 | $456 |
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||
(dollars in millions) | Interest Rate Reduction | Term Extension | Payment Delay | Principal Forgiveness | Interest Rate Reduction and Term Extension | Term Extension and Payment Delay | Total | Total as a % of Loan Class(1) | ||||||||||||||||||
Commercial and industrial | $— | $123 | $— | $— | $1 | $1 | $125 | 0.26 | % | |||||||||||||||||
Commercial real estate | — | 298 | — | — | — | 1 | 299 | 1.03 | ||||||||||||||||||
Total commercial | — | 421 | — | — | 1 | 2 | 424 | 0.54 | ||||||||||||||||||
Residential mortgages | 2 | 17 | — | — | 8 | — | 27 | 0.09 | ||||||||||||||||||
Home equity | — | 2 | — | — | 2 | — | 4 | 0.03 | ||||||||||||||||||
Automobile | — | — | — | — | — | — | — | — | ||||||||||||||||||
Education | 2 | — | 1 | — | — | — | 3 | 0.02 | ||||||||||||||||||
Other retail | 3 | — | — | — | — | — | 3 | 0.06 | ||||||||||||||||||
Total retail | 7 | 19 | 1 | — | 10 | — | 37 | 0.05 | ||||||||||||||||||
Total(2) | $7 | $440 | $1 | $— | $11 | $2 | $461 | 0.30 | % |
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||
(dollars in millions) | Interest Rate Reduction | Term Extension | Payment Delay | Principal Forgiveness | Interest Rate Reduction and Term Extension | Term Extension and Payment Delay | Total | Total as a % of Loan Class(1) | ||||||||||||||||||
Commercial and industrial | $— | $160 | $32 | $— | $1 | $21 | $214 | 0.45 | % | |||||||||||||||||
Commercial real estate | — | 335 | — | — | — | 1 | 336 | 1.16 | ||||||||||||||||||
Total commercial | — | 495 | 32 | — | 1 | 22 | 550 | 0.70 | ||||||||||||||||||
Residential mortgages | 4 | 35 | — | — | 10 | — | 49 | 0.16 | ||||||||||||||||||
Home equity | — | 3 | — | — | 4 | — | 7 | 0.05 | ||||||||||||||||||
Automobile | — | — | — | — | — | — | — | — | ||||||||||||||||||
Education | 4 | — | 1 | — | — | — | 5 | 0.04 | ||||||||||||||||||
Other retail | 6 | — | — | — | — | — | 6 | 0.12 | ||||||||||||||||||
Total retail | 14 | 38 | 1 | — | 14 | — | 67 | 0.09 | ||||||||||||||||||
Total(2) | $14 | $533 | $33 | $— | $15 | $22 | $617 | 0.41 | % |
Three Months Ended June 30, 2023 | ||||||||||||||
Weighted-Average Interest Rate Reduction(1)(5) | Weighted-Average Term Extension (in Months)(2)(5) | Weighted-Average Payment Deferral(3)(5) | Amount of Principal Forgiven(4) | |||||||||||
Commercial and industrial | 2.87 | % | 9 | $46,369 | $— | |||||||||
Commercial real estate | — | 7 | 10,229 | — | ||||||||||
Residential mortgages | 2.04 | 52 | — | — | ||||||||||
Home equity | 2.20 | 115 | 1,062 | — | ||||||||||
Automobile | 2.40 | 19 | 1,342 | — | ||||||||||
Education | 4.90 | — | 4,728 | — | ||||||||||
Other retail | 18.76 | — | — | 1 |
Six Months Ended June 30, 2023 | ||||||||||||||
Weighted-Average Interest Rate Reduction(1)(5) | Weighted-Average Term Extension (in Months)(2)(5) | Weighted-Average Payment Deferral(3)(5) | Amount of Principal Forgiven(4) | |||||||||||
Commercial and industrial | 3.06 | % | 9 | $471,296 | $— | |||||||||
Commercial real estate | — | 8 | 10,229 | — | ||||||||||
Residential mortgages | 1.86 | 48 | — | — | ||||||||||
Home equity | 2.12 | 125 | 1,917 | — | ||||||||||
Automobile | 2.59 | 21 | 1,248 | — | ||||||||||
Education | 5.00 | — | 3,610 | — | ||||||||||
Other retail | 18.28 | 22 | — | 2 |
June 30, 2023 | ||||||||||||||||||||
Days Past Due and Accruing | ||||||||||||||||||||
(dollars in millions) | Current | 30-59 | 60-89 | 90+ | Nonaccrual | Total | ||||||||||||||
Commercial and industrial | $151 | $7 | $— | $— | $56 | $214 | ||||||||||||||
Commercial real estate | 256 | 24 | — | — | 56 | 336 | ||||||||||||||
Total commercial | 407 | 31 | — | — | 112 | 550 | ||||||||||||||
Residential mortgages | 33 | — | 2 | 4 | 10 | 49 | ||||||||||||||
Home equity | 1 | — | — | — | 6 | 7 | ||||||||||||||
Automobile | — | — | — | — | — | — | ||||||||||||||
Education | 4 | — | — | — | 1 | 5 | ||||||||||||||
Other retail | 4 | 1 | — | — | 1 | 6 | ||||||||||||||
Total retail | 42 | 1 | 2 | 4 | 18 | 67 | ||||||||||||||
Total | $449 | $32 | $2 | $4 | $130 | $617 |
Three Months Ended June 30, 2023 | |||||||||||
(dollars in millions) | Term Extension | Interest Rate Reduction and Term Extension | Total | ||||||||
Commercial real estate | $38 | $— | $38 | ||||||||
Total commercial | 38 | — | 38 | ||||||||
Residential mortgages | 2 | 2 | 4 | ||||||||
Total retail | 2 | 2 | 4 | ||||||||
Total | $40 | $2 | $42 |
Six Months Ended June 30, 2023 | ||||||||||||||
(dollars in millions) | Term Extension | Interest Rate Reduction and Term Extension | Term Extension and Payment Delay | Total | ||||||||||
Commercial and industrial | $3 | $— | $20 | $23 | ||||||||||
Commercial real estate | 38 | — | — | 38 | ||||||||||
Total commercial | 41 | — | 20 | 61 | ||||||||||
Residential mortgages | 2 | 2 | — | 4 | ||||||||||
Total retail | 2 | 2 | — | 4 | ||||||||||
Total | $43 | $2 | $20 | $65 |
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 |
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 |
Three Months Ended | Six Months Ended | |||||||
(dollars in millions) | June 30, 2022 | |||||||
Commercial TDRs | $— | $— | ||||||
Retail TDRs(1) | 181 | 196 | ||||||
Total | $181 | $196 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Cash proceeds from residential mortgage loans sold with servicing retained | $2,513 | $4,576 | $4,088 | $11,158 | |||||||||||||||||||
Repurchased residential mortgages(1) | — | — | — | 87 | |||||||||||||||||||
Gain on sales(2) | 22 | 23 | 41 | 53 | |||||||||||||||||||
Contractually specified servicing, late and other ancillary fees(2) | 76 | 71 | 154 | 138 |
As of and for the Three Months Ended June 30, | As of and for the Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Fair value as of beginning of the period | $1,496 | $1,241 | $1,530 | $1,029 | |||||||||||||||||||
Amounts capitalized | 36 | 79 | 57 | 174 | |||||||||||||||||||
Servicing rights acquired | — | 16 | — | 16 | |||||||||||||||||||
Changes in unpaid principal balance during the period(1) | (41) | (32) | (82) | (71) | |||||||||||||||||||
Changes in fair value during the period(2) | 33 | 107 | 19 | 263 | |||||||||||||||||||
Fair value at end of the period | $1,524 | $1,411 | $1,524 | $1,411 |
(dollars in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Fair value | $1,524 | $1,530 | |||||||||
Weighted average life (years) | 9.0 | 9.1 | |||||||||
Weighted average constant prepayment rate | 6.9% | 6.8% | |||||||||
Decline in fair value from 10% adverse change | $35 | $34 | |||||||||
Decline in fair value from 20% adverse change | $68 | $66 | |||||||||
Weighted average option adjusted spread | 628 bps | 629 bps | |||||||||
Decline in fair value from 10% adverse change | $42 | $43 | |||||||||
Decline in fair value from 20% adverse change | $83 | $86 |
(dollars in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Education | $546 | $602 | |||||||||
Commercial and industrial(1) | 95 | 91 |
(dollars in millions) | June 30, 2023 | ||||
Assets: | |||||
Cash and due from banks | $149 | ||||
Loans and leases | 2,207 | ||||
Other assets | 6 | ||||
Total assets | $2,362 | ||||
Liabilities: | |||||
Long-term borrowed funds | $2,000 | ||||
Other liabilities | 2 | ||||
Total liabilities | $2,002 |
(dollars in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Lending to special purpose entities included in loans and leases | $4,849 | $4,578 | |||||||||
LIHTC investments included in other assets | 2,399 | 2,230 | |||||||||
LIHTC unfunded commitments included in other liabilities | 1,115 | 1,046 | |||||||||
Asset-backed investments included in HTM securities | 530 | 581 | |||||||||
Renewable energy investments included in other assets | 249 | 374 | |||||||||
NMTC investments included in other assets | 4 | 4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Tax credits recognized | $87 | $60 | $174 | $121 | |||||||||||||||||||
Other tax benefits recognized | 20 | 16 | 38 | 31 | |||||||||||||||||||
Amortization | (85) | (65) | (166) | (129) | |||||||||||||||||||
Net benefit (expense) included in income tax expense | 22 | 11 | 46 | 23 | |||||||||||||||||||
Other income | 2 | — | 3 | — | |||||||||||||||||||
Allocated income (loss) on investments | (3) | — | (6) | — | |||||||||||||||||||
Net benefit (expense) included in noninterest income | (1) | — | (3) | — | |||||||||||||||||||
Net benefit (expense) included in the Consolidated Statements of Operations(1) | $21 | $11 | $43 | $23 |
(dollars in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Parent Company: | |||||||||||
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 | |||||||||
2.500% fixed-rate senior unsecured notes, due February 2030 | 298 | 298 | |||||||||
3.250% fixed-rate senior unsecured notes, due April 2030 | 746 | 746 | |||||||||
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 | 61 | |||||||||
2.638% fixed-rate subordinated debt, due September 2032 | 560 | 556 | |||||||||
5.641% fixed-rate reset subordinated debt, due May 2037 | 398 | 397 | |||||||||
CBNA’s Global Note Program: | |||||||||||
3.700% senior unsecured notes, due March 2023(1) | — | 497 | |||||||||
5.676% floating-rate senior unsecured notes, due March 2023(1)(2) | — | 250 | |||||||||
2.250% senior unsecured notes, due April 2025 | 748 | 748 | |||||||||
4.119% fixed/floating-rate senior unsecured notes, due May 2025 | 649 | 648 | |||||||||
6.064% fixed/floating-rate senior unsecured notes, due October 2025 | 599 | 598 | |||||||||
5.284% fixed/floating-rate senior unsecured notes, due January 2026 | 449 | — | |||||||||
3.750% senior unsecured notes, due February 2026 | 473 | 475 | |||||||||
4.575% fixed/floating-rate senior unsecured notes, due August 2028 | 797 | 797 | |||||||||
Additional Borrowings by CBNA and Other Subsidiaries: | |||||||||||
Federal Home Loan Bank advances, 5.314% weighted average rate, due through 2041(3) | 5,029 | 8,519 | |||||||||
Secured borrowings, 5.953% weighted average rate, due through 2030(3)(4) | 2,000 | — | |||||||||
Other | 16 | 19 | |||||||||
Total long-term borrowed funds | $14,100 | $15,887 |
(dollars in millions) | Parent Company | CBNA and Other Subsidiaries | Consolidated | ||||||||
Year | |||||||||||
2023 | $— | $1 | $1 | ||||||||
2024 | 107 | 5,829 | 5,936 | ||||||||
2025 | 469 | 2,020 | 2,489 | ||||||||
2026 | 498 | 1,516 | 2,014 | ||||||||
2027 | — | 2 | 2 | ||||||||
2028 and thereafter | 2,266 | 1,392 | 3,658 | ||||||||
Total | $3,340 | $10,760 | $14,100 |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(dollars in millions) | Notional Amount | Derivative Assets | Derivative Liabilities | Notional Amount | Derivative Assets | Derivative Liabilities | |||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts(1) | $76,463 | $70 | $65 | $42,250 | $16 | $53 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts(1) | 350,913 | 519 | 1,832 | 174,384 | 331 | 1,579 | |||||||||||||||||
Foreign exchange contracts | 34,072 | 440 | 383 | 29,475 | 527 | 519 | |||||||||||||||||
Commodities contracts | 1,059 | 699 | 662 | 1,103 | 953 | 942 | |||||||||||||||||
TBA contracts | 3,985 | 14 | 3 | 2,370 | 7 | 14 | |||||||||||||||||
Other contracts | 1,357 | 8 | 5 | 913 | 5 | 4 | |||||||||||||||||
Total derivatives not designated as hedging instruments | 391,386 | 1,680 | 2,885 | 208,245 | 1,823 | 3,058 | |||||||||||||||||
Total gross derivatives | 467,849 | 1,750 | 2,950 | 250,495 | 1,839 | 3,111 | |||||||||||||||||
Less: Gross amounts offset in the Consolidated Balance Sheets(2) | (519) | (519) | (623) | (623) | |||||||||||||||||||
Less: Cash collateral applied(2) | (512) | (161) | (374) | (579) | |||||||||||||||||||
Total net derivatives presented in the Consolidated Balance Sheets | $719 | $2,270 | $842 | $1,909 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | Affected Line Item in the Consolidated Statements of Operations | |||||||||||||||||||||
Interest rate swaps hedging long-term borrowed funds | ($7) | ($15) | $1 | ($52) | Interest expense - long-term borrowed funds | |||||||||||||||||||||
Hedged long-term borrowed funds attributable to the risk being hedged | 7 | 14 | (1) | 51 | Interest expense - long-term borrowed funds | |||||||||||||||||||||
Interest rate swaps hedging LHFS | — | (3) | — | (3) | Interest and fees on other loans held for sale | |||||||||||||||||||||
Hedged loans held for sale attributable to the risk being hedged | — | 4 | — | 4 | Interest and fees on other loans held for sale | |||||||||||||||||||||
Interest rate swaps hedging debt securities available for sale | 12 | — | 12 | 29 | Interest income - investment securities | |||||||||||||||||||||
Hedged debt securities available for sale attributable to the risk being hedged | (12) | — | (12) | (29) | Interest income - investment securities |
(dollars in millions) | June 30, 2023 | December 31, 2022 | |||||||||||||||
Debt securities available for sale | Long-term borrowed funds | Debt securities available for sale | Long-term borrowed funds | ||||||||||||||
Carrying amount of hedged assets | $410 | $— | $— | $— | |||||||||||||
Carrying amount of hedged liabilities | — | 473 | — | 972 | |||||||||||||
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | (9) | (26) | — | (27) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Amount of pre-tax net gains (losses) recognized in OCI | ($680) | ($244) | ($447) | ($905) | |||||||||||||||||||
Amount of pre-tax net gains (losses) reclassified from AOCI into interest income | (137) | 12 | (264) | 49 | |||||||||||||||||||
Amount of pre-tax net gains (losses) reclassified from AOCI into interest expense | 1 | (1) | 1 | (6) |
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 | ||||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Economic hedge type: | ||||||||||||||||||||||||||
Customer interest rate contracts | ($614) | ($408) | ($580) | ($1,175) | Foreign exchange and derivative products | |||||||||||||||||||||
Derivatives hedging interest rate risk | 627 | 428 | 608 | 1,221 | Foreign exchange and derivative products | |||||||||||||||||||||
Customer foreign exchange contracts | 9 | (149) | 5 | (123) | Foreign exchange and derivative products | |||||||||||||||||||||
Derivatives hedging foreign exchange risk | (18) | 246 | (20) | 249 | Foreign exchange and derivative products | |||||||||||||||||||||
Customer commodity contracts | (94) | 372 | (569) | 1,524 | Foreign exchange and derivative products | |||||||||||||||||||||
Derivatives hedging commodity price risk | 102 | (365) | 588 | (1,513) | Foreign exchange and derivative products | |||||||||||||||||||||
Residential loan commitments | (20) | (62) | (18) | (223) | Mortgage banking fees | |||||||||||||||||||||
Derivatives hedging residential loan commitments and mortgage LHFS, at fair value | 26 | 126 | 15 | 397 | Mortgage banking fees | |||||||||||||||||||||
Derivative contracts used to hedge residential MSRs | (31) | (96) | (15) | (242) | Mortgage banking fees | |||||||||||||||||||||
Total | ($13) | $92 | $14 | $115 |
As of and for the Three Months Ended June 30, | ||||||||||||||||||||||||||
(dollars in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Debt Securities | Employee Benefit Plans | Total AOCI | ||||||||||||||||||||||
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) | ||||||||||||||||||||||
Balance at April 1, 2023 | ($1,149) | ($2,424) | ($370) | ($3,943) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (505) | (239) | — | (744) | ||||||||||||||||||||||
Amounts reclassified to the Consolidated Statements of Operations | 101 | 20 | 3 | 124 | ||||||||||||||||||||||
Net other comprehensive income (loss) | (404) | (219) | 3 | (620) | ||||||||||||||||||||||
Balance at June 30, 2023 | ($1,553) | ($2,643) | ($367) | ($4,563) | ||||||||||||||||||||||
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, | ||||||||||||||||||||||||||
(dollars in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Debt Securities | Employee Benefit Plans | Total AOCI | ||||||||||||||||||||||
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) | ||||||||||||||||||||||
Balance at January 1, 2023 | ($1,416) | ($2,771) | ($373) | ($4,560) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (332) | 88 | — | (244) | ||||||||||||||||||||||
Amounts reclassified to the Consolidated Statements of Operations | 195 | 40 | 6 | 241 | ||||||||||||||||||||||
Net other comprehensive income (loss) | (137) | 128 | 6 | (3) | ||||||||||||||||||||||
Balance at June 30, 2023 | ($1,553) | ($2,643) | ($367) | ($4,563) | ||||||||||||||||||||||
Primary location in the Consolidated Statements of Operations of amounts reclassified from AOCI | Net interest income | Securities gains, net | Other operating expense |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
(dollars in millions, except per 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, 2023 | Three Months Ended June 30, 2022 | |||||||||||||||||||||||||
(dollars in millions, except per share data) | Dividends Declared per Share | Dividends Declared | Dividends Paid | Dividends Declared per Share | Dividends Declared | Dividends Paid | ||||||||||||||||||||
Common stock | $0.42 | $205 | $205 | $0.39 | $195 | $195 | ||||||||||||||||||||
Preferred stock | ||||||||||||||||||||||||||
Series B | $30.00 | $9 | $— | $30.00 | $9 | $— | ||||||||||||||||||||
Series C | 15.94 | 5 | 5 | 15.94 | 5 | 5 | ||||||||||||||||||||
Series D | 15.87 | 5 | 5 | 15.87 | 4 | 4 | ||||||||||||||||||||
Series E | 12.50 | 6 | 6 | 12.50 | 6 | 6 | ||||||||||||||||||||
Series F | 14.12 | 6 | 5 | 14.12 | 5 | 5 | ||||||||||||||||||||
Series G | 10.00 | 3 | 3 | 10.00 | 3 | 3 | ||||||||||||||||||||
Total preferred stock | $34 | $24 | $32 | $23 |
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||
(dollars in millions, except per share data) | Dividends Declared per Share | Dividends Declared | Dividends Paid | Dividends Declared per Share | Dividends Declared | Dividends Paid | ||||||||||||||||||||
Common stock | $0.84 | $410 | $410 | $0.78 | $360 | $360 | ||||||||||||||||||||
Preferred stock | ||||||||||||||||||||||||||
Series B | $30.00 | $9 | $9 | $30.00 | $9 | $9 | ||||||||||||||||||||
Series C | 31.88 | 10 | 10 | 31.88 | 10 | 10 | ||||||||||||||||||||
Series D | 31.75 | 10 | 10 | 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 | 20.00 | 6 | 6 | ||||||||||||||||||||
Total preferred stock | $57 | $57 | $56 | $56 |
(dollars in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Commitments to extend credit | $95,665 | $96,076 | |||||||||
Letters of credit | 2,177 | 2,119 | |||||||||
Loans sold with recourse | 97 | 92 | |||||||||
Marketing rights | 18 | 23 | |||||||||
Risk participation agreements | 2 | 4 | |||||||||
Total | $97,959 | $98,314 |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(dollars 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 | $1,163 | $1,151 | $12 | $666 | $656 | $10 | |||||||||||||||||
Commercial and industrial, and commercial real estate loans held for sale, at fair value | 62 | 74 | (12) | 108 | 127 | (19) |
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
Debt securities available for sale: | ||||||||||||||
Mortgage-backed securities | $20,289 | $— | $20,289 | $— | ||||||||||
Collateralized loan obligations | 1,228 | — | 1,228 | — | ||||||||||
State and political subdivisions | 2 | — | 2 | — | ||||||||||
U.S. Treasury and other | 3,236 | 3,236 | — | — | ||||||||||
Total debt securities available for sale | 24,755 | 3,236 | 21,519 | — | ||||||||||
Loans held for sale, at fair value: | ||||||||||||||
Residential loans held for sale | 1,163 | — | 1,163 | — | ||||||||||
Commercial loans held for sale | 62 | — | 62 | — | ||||||||||
Total loans held for sale, at fair value | 1,225 | — | 1,225 | — | ||||||||||
Mortgage servicing rights | 1,524 | — | — | 1,524 | ||||||||||
Derivative assets: | ||||||||||||||
Interest rate contracts | 589 | — | 589 | — | ||||||||||
Foreign exchange contracts | 440 | — | 440 | — | ||||||||||
Commodities contracts | 699 | — | 699 | — | ||||||||||
TBA contracts | 14 | — | 14 | — | ||||||||||
Other contracts | 8 | — | — | 8 | ||||||||||
Total derivative assets | 1,750 | — | 1,742 | 8 | ||||||||||
Equity securities, at fair value(1) | 99 | 99 | — | — | ||||||||||
Total assets | $29,353 | $3,335 | $24,486 | $1,532 | ||||||||||
Derivative liabilities: | ||||||||||||||
Interest rate contracts | $1,897 | $— | $1,897 | $— | ||||||||||
Foreign exchange contracts | 383 | — | 383 | — | ||||||||||
Commodities contracts | 662 | — | 662 | — | ||||||||||
TBA contracts | 3 | — | 3 | — | ||||||||||
Other contracts | 5 | — | 3 | 2 | ||||||||||
Total derivative liabilities | 2,950 | — | 2,948 | 2 | ||||||||||
Total liabilities | $2,950 | $— | $2,948 | $2 |
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
Debt securities available for sale: | ||||||||||||||
Mortgage-backed securities | $19,313 | $— | $19,313 | $— | ||||||||||
Collateralized loan obligations | 1,206 | — | 1,206 | — | ||||||||||
State and political subdivisions | 2 | — | 2 | — | ||||||||||
U.S. Treasury and other | 3,486 | 3,486 | — | — | ||||||||||
Total debt securities available for sale | 24,007 | 3,486 | 20,521 | — | ||||||||||
Loans held for sale, at fair value: | ||||||||||||||
Residential loans held for sale | 666 | — | 666 | — | ||||||||||
Commercial loans held for sale | 108 | — | 108 | — | ||||||||||
Total loans held for sale, at fair value | 774 | — | 774 | — | ||||||||||
Mortgage servicing rights | 1,530 | — | — | 1,530 | ||||||||||
Derivative assets: | ||||||||||||||
Interest rate contracts | 347 | — | 347 | — | ||||||||||
Foreign exchange contracts | 527 | — | 527 | — | ||||||||||
Commodities contracts | 953 | — | 953 | — | ||||||||||
TBA contracts | 7 | — | 7 | — | ||||||||||
Other contracts | 5 | — | — | 5 | ||||||||||
Total derivative assets | 1,839 | — | 1,834 | 5 | ||||||||||
Equity securities, at fair value(1) | 110 | 110 | — | — | ||||||||||
Total assets | 28,260 | $3,596 | $23,129 | $1,535 | ||||||||||
Derivative liabilities: | ||||||||||||||
Interest rate contracts | $1,632 | $— | $1,632 | $— | ||||||||||
Foreign exchange contracts | 519 | — | 519 | — | ||||||||||
Commodities contracts | 942 | — | 942 | — | ||||||||||
TBA contracts | 14 | — | 14 | — | ||||||||||
Other contracts | 4 | — | — | 4 | ||||||||||
Total derivative liabilities | 3,111 | — | 3,107 | 4 | ||||||||||
Total liabilities | $3,111 | $— | $3,107 | $4 |
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | ||||||||||||||||
(dollars in millions) | Mortgage Servicing Rights | Other Derivative Contracts | Mortgage Servicing Rights | Other Derivative Contracts | |||||||||||||
Beginning balance | $1,496 | $13 | $1,530 | $1 | |||||||||||||
Issuances | 36 | 20 | 57 | 35 | |||||||||||||
Settlements(2) | (41) | (7) | (82) | (12) | |||||||||||||
Changes in fair value during the period recognized in earnings(3) | 33 | (20) | 19 | (18) | |||||||||||||
Ending balance | $1,524 | $6 | $1,524 | $6 |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | ||||||||||||||||
(dollars 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 |
As of June 30, 2023 | |||||||||||
Valuation Technique | Unobservable Input | Range (Weighted Average) | |||||||||
Mortgage servicing rights | Discounted Cash Flow | Constant prepayment rate | 6.20-17.14% CPR (6.90% CPR) | ||||||||
Option adjusted spread | 398-1,058 bps (628 bps) | ||||||||||
Other derivative contracts | Internal Model | Pull through rate | 24.90-99.70% (81.79%) | ||||||||
MSR value | (7.54)-137.38 bps (91.13 bps) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Collateral-dependent loans | ($64) | ($1) | ($68) | ($3) |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Collateral-dependent loans | $835 | $— | $835 | $— | $582 | $— | $582 | $— |
June 30, 2023 | |||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
(dollars 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 | $9,520 | $8,728 | $— | $— | $8,990 | $8,225 | $530 | $503 | |||||||||||||||||||||||||||
Other loans held for sale | 196 | 196 | — | — | — | — | 196 | 196 | |||||||||||||||||||||||||||
Net loans and leases | 149,276 | 144,200 | — | — | 835 | 835 | 148,441 | 143,365 | |||||||||||||||||||||||||||
Other assets | 917 | 917 | — | — | 897 | 897 | 20 | 20 | |||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | 177,667 | 177,536 | — | — | 177,667 | 177,536 | — | — | |||||||||||||||||||||||||||
Short-term borrowed funds | 1,099 | 1,099 | — | — | 1,099 | 1,099 | — | — | |||||||||||||||||||||||||||
Long-term borrowed funds | 14,100 | 13,357 | — | — | 14,100 | 13,357 | — | — |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
(dollars 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 | $9,834 | $9,042 | $— | $— | $9,253 | $8,506 | $581 | $536 | |||||||||||||||||||||||||||
Other loans held for sale | 208 | 208 | — | — | — | — | 208 | 208 | |||||||||||||||||||||||||||
Net loans and leases | 154,679 | 151,601 | — | — | 582 | 582 | 154,097 | 151,019 | |||||||||||||||||||||||||||
Other assets | 1,058 | 1,058 | — | — | 1,038 | 1,038 | 20 | 20 | |||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | 180,724 | 180,566 | — | — | 180,724 | 180,566 | — | — | |||||||||||||||||||||||||||
Short-term borrowed funds | 3 | 3 | — | — | 3 | 3 | — | — | |||||||||||||||||||||||||||
Long-term borrowed funds | 15,887 | 15,469 | — | — | 15,887 | 15,469 | — | — |
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||
(dollars in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||||
Service charges and fees | $66 | $35 | $— | $101 | $73 | $34 | $1 | $108 | |||||||||||||||||||||
Card fees | 67 | 11 | — | 78 | 60 | 10 | — | 70 | |||||||||||||||||||||
Capital markets fees | — | 76 | — | 76 | — | 90 | — | 90 | |||||||||||||||||||||
Trust and investment services fees | 65 | — | — | 65 | 66 | — | — | 66 | |||||||||||||||||||||
Other banking fees | — | 3 | — | 3 | — | 5 | — | 5 | |||||||||||||||||||||
Total revenue from contracts with customers | $198 | $125 | $— | $323 | $199 | $139 | $1 | $339 | |||||||||||||||||||||
Total revenue from other sources(1) | 70 | 82 | 31 | 183 | 81 | 82 | (8) | 155 | |||||||||||||||||||||
Total noninterest income | $268 | $207 | $31 | $506 | $280 | $221 | ($7) | $494 |
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||
(dollars in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||||
Service charges and fees | $133 | $67 | $— | $200 | $142 | $61 | $2 | $205 | |||||||||||||||||||||
Card fees | 126 | 23 | — | 149 | 110 | 20 | — | 130 | |||||||||||||||||||||
Capital markets fees | — | 147 | — | 147 | — | 168 | — | 168 | |||||||||||||||||||||
Trust and investment services fees | 128 | — | — | 128 | 127 | — | — | 127 | |||||||||||||||||||||
Other banking fees | 1 | 7 | — | 8 | 1 | 7 | 1 | 9 | |||||||||||||||||||||
Total revenue from contracts with customers | $388 | $244 | $— | $632 | $380 | $256 | $3 | $639 | |||||||||||||||||||||
Total revenue from other sources(1) | 136 | 164 | 59 | 359 | 157 | 178 | 18 | 353 | |||||||||||||||||||||
Total noninterest income | $524 | $408 | $59 | $991 | $537 | $434 | $21 | $992 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Marketing | $56 | $39 | $94 | $65 | |||||||||||||||||||
Deposit insurance | 43 | 26 | 79 | 46 | |||||||||||||||||||
Other | 98 | 88 | 193 | 152 | |||||||||||||||||||
Other operating expense | $197 | $153 | $366 | $263 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Numerator (basic and diluted): | |||||||||||||||||||||||
Net income | $478 | $364 | $989 | $784 | |||||||||||||||||||
Less: Preferred stock dividends | 34 | 32 | 57 | 56 | |||||||||||||||||||
Net income available to common stockholders | $444 | $332 | $932 | $728 | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average common shares outstanding - basic | 479,470,543 | 491,497,026 | 482,440,926 | 457,140,258 | |||||||||||||||||||
Dilutive common shares: share-based awards | 1,504,738 | 1,799,088 | 1,811,177 | 2,027,489 | |||||||||||||||||||
Weighted-average common shares outstanding - diluted | 480,975,281 | 493,296,114 | 484,252,103 | 459,167,747 | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $0.93 | $0.68 | $1.93 | $1.59 | |||||||||||||||||||
Diluted(1) | 0.92 | 0.67 | 1.92 | 1.58 |
As of and for the Three Months Ended June 30, 2023 | |||||||||||||||||||||||
(dollars in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||
Net interest income | $1,104 | $584 | ($100) | $1,588 | |||||||||||||||||||
Noninterest income | 268 | 207 | 31 | 506 | |||||||||||||||||||
Total revenue | 1,372 | 791 | (69) | 2,094 | |||||||||||||||||||
Noninterest expense | 908 | 315 | 83 | 1,306 | |||||||||||||||||||
Profit (loss) before provision (benefit) for credit losses | 464 | 476 | (152) | 788 | |||||||||||||||||||
Provision (benefit) for credit losses | 82 | 71 | 23 | 176 | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 382 | 405 | (175) | 612 | |||||||||||||||||||
Income tax expense (benefit) | 100 | 100 | (66) | 134 | |||||||||||||||||||
Net income (loss) | $282 | $305 | ($109) | $478 | |||||||||||||||||||
Total average assets | $87,040 | $77,546 | $57,787 | $222,373 |
As of and for the Three Months Ended June 30, 2022 | |||||||||||||||||||||||
(dollars 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 Six Months Ended June 30, 2023 | |||||||||||||||||||||||
(dollars in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||
Net interest income | $2,200 | $1,181 | ($150) | $3,231 | |||||||||||||||||||
Noninterest income | 524 | 408 | 59 | 991 | |||||||||||||||||||
Total revenue | 2,724 | 1,589 | (91) | 4,222 | |||||||||||||||||||
Noninterest expense | 1,797 | 646 | 159 | 2,602 | |||||||||||||||||||
Profit (loss) before provision (benefit) for credit losses | 927 | 943 | (250) | 1,620 | |||||||||||||||||||
Provision (benefit) for credit losses | 165 | 118 | 61 | 344 | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 762 | 825 | (311) | 1,276 | |||||||||||||||||||
Income tax expense (benefit) | 199 | 201 | (113) | 287 | |||||||||||||||||||
Net income (loss) | $563 | $624 | ($198) | $989 | |||||||||||||||||||
Total average assets | $87,298 | $78,215 | $57,028 | $222,541 |
As of and for the Six Months Ended June 30, 2022 | |||||||||||||||||||||||
(dollars 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 |
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, 2023 - April 30, 2023 | 3,353 | $30.74 | — | $1,600,000,000 | ||||||||||
May 1, 2023 - May 31, 2023 | 7,603,174 | $26.41 | 7,600,963 | $1,399,254,708 | ||||||||||
June 1, 2023 - June 30, 2023 | 2,040,965 | $27.08 | 2,040,184 | $1,344,000,021 |
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 ………………………………………………… | $50,000 | ||||
Audit Committee Chair Retainer ……………………………………… | $35,000 | ||||
Risk Committee Chair Retainer………………….……………………. | $35,000 | ||||
Compensation and Human Resources Chair Retainer …….……… | $30,000 | ||||
Nominating and Governance Chair Retainer……………….……..… | $25,000 | ||||
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 |