Ohio
|
31-0854434
|
|
(State or other jurisdiction
of incorporation or organization)
|
(I.R.S. Employer
Identification Number)
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
|||
Non-accelerated
filer
|
☐
|
Smaller reporting company
|
☐
|
|||
|
|
Emerging growth company
|
☐
|
Title of each class:
|
Trading Symbol(s):
|
Name of each exchange on which registered:
|
||
Common Stock, Without Par Value
|
FITB
|
The NASDAQ Stock Market LLC
|
||
Depositary Shares Representing a 1/1000th Ownership Interest in a Share of 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I
|
FITBI
|
The NASDAQ Stock Market LLC
|
||
Depositary Shares Representing a 1/40th Ownership Interest in a Share
of
6.00%
Non-Cumulative Perpetual Class B Preferred Stock, Series A |
FITBP
|
The NASDAQ Stock Market LLC
|
||
Depositary Shares Representing a 1/1000th Ownership Interest in a Share of
4.95%
Non-Cumulative Perpetual Preferred Stock, Series K |
FITBO
|
The NASDAQ Stock Market LLC
|
Part I. Financial Information
|
|
|||
2
|
||||
|
||||
3
|
||||
4
|
||||
8
|
||||
9
|
||||
9
|
||||
12
|
||||
19
|
||||
26
|
||||
33
|
||||
34
|
||||
51
|
||||
56
|
||||
59
|
||||
59
|
||||
60
|
||||
62
|
||||
63
|
||||
63
|
||||
|
||||
64
|
||||
65
|
||||
66
|
||||
67
|
||||
68
|
||||
69
|
||||
Part II. Other Information
|
|
|||
129
|
||||
129
|
||||
129
|
||||
130
|
||||
131
|
||||
132
|
ACL:
ALCO:
ALLL:
AOCI:
APR:
ARM:
ASU:
ATM:
BHC:
BOLI:
BPO:
bps:
CCAR:
CDC:
CECL:
CET1:
CFPB:
C&I:
DCF:
DTCC:
DTI:
Debt-to-Income
Ratio
ERM:
ERMC:
EVE:
FASB:
FDIC:
FHA:
FHLB:
FHLMC:
FICO:
FINRA:
FNMA:
FOMC:
FRB:
FTE:
FTP:
FTS:
GDP:
|
GNMA:
IPO:
IRC:
IRLC:
ISDA:
LIBOR:
LIHTC:
Low-Income
Housing Tax Credit
LLC:
LTV:
Loan-to-Value
Ratio
MD&A:
Condition and Results of Operations
MSR:
N/A:
NAV:
NII:
NM:
OAS:
OCC:
OCI:
OREO:
OTTI:
PCI:
PCD:
RCC:
ROU:
Right-of-Use
SAR:
SBA:
SEC:
SOFR:
TBA:
TDR:
TILA:
U.S.:
U.S. GAAP:
Principles
VA:
VIE:
VRDN:
|
TABLE 1: Selected Financial Data
|
|
|
|
|
||||||||||
|
|
For the three months
|
|
|||||||||||
|
|
ended March 31,
|
%
|
|||||||||||
($ in millions, except for per share data)
|
|
2020
|
|
2019
|
Change
|
|||||||||
Income Statement Data
|
|
|
|
|
|
|
||||||||
Net interest income (U.S. GAAP)
|
$
|
|
1,229
|
|
1,082
|
14
|
||||||||
Net interest income (FTE)
(a)(b)
|
|
|
1,233
|
|
1,086
|
14
|
||||||||
Noninterest income
|
|
|
671
|
|
1,101
|
(39
|
) | |||||||
Total revenue (FTE)
(a)
|
|
|
1,904
|
|
2,187
|
(13
|
) | |||||||
Provision for credit losses
(c)
|
|
|
640
|
|
90
|
611
|
||||||||
Noninterest expense
|
|
|
1,200
|
|
1,097
|
9
|
||||||||
Net income
|
|
|
46
|
|
775
|
(94
|
) | |||||||
Net income available to common shareholders
|
|
|
29
|
|
760
|
(96
|
) | |||||||
Common Share Data
|
|
|
|
|
|
|
||||||||
Earnings per share - basic
|
$
|
|
0.04
|
|
1.14
|
(97
|
) | |||||||
Earnings per share - diluted
|
|
|
0.04
|
|
1.12
|
(97
|
) | |||||||
Cash dividends declared per common share
|
|
|
0.27
|
|
0.22
|
23
|
||||||||
Book value per share
|
|
|
28.26
|
|
24.77
|
14
|
||||||||
Market value per share
|
|
|
14.85
|
|
25.22
|
(41
|
) | |||||||
Financial Ratios
|
|
|
|
|
|
|
||||||||
Return on average assets
|
|
|
0.11
|
%
|
2.11
|
(95
|
) | |||||||
Return on average common equity
|
|
|
0.6
|
|
19.6
|
(97
|
) | |||||||
Return on average tangible common equity
(b)
|
|
|
1.0
|
|
23.9
|
(96
|
) | |||||||
Dividend payout
|
|
|
675.0
|
|
19.3
|
NM
|
||||||||
Average total Bancorp shareholders’ equity as a percent of average assets
|
|
|
12.63
|
|
11.43
|
10
|
||||||||
Tangible common equity as a percent of tangible assets (excluding AOCI)
(b)
|
|
|
7.41
|
|
8.21
|
(10
|
) | |||||||
Net interest margin
(a)(b)
|
|
|
3.28
|
|
3.28
|
-
|
||||||||
Net interest rate spread
(a)(b)
|
|
|
2.98
|
|
2.87
|
4
|
||||||||
Efficiency
(a)(b)
|
|
|
63.0
|
|
50.2
|
26
|
||||||||
Credit Quality
|
|
|
|
|
|
|
||||||||
Net losses
charged-off
|
$
|
|
122
|
|
77
|
58
|
||||||||
Net losses
charged-off
as a percent of average portfolio loans and leases
|
|
|
0.44
|
%
|
0.32
|
38
|
||||||||
ALLL as a percent of portfolio loans and leases
|
|
|
1.99
|
|
1.02
|
95
|
||||||||
ACL as a percent of portfolio loans and leases
(d)
|
|
|
2.13
|
|
1.14
|
87
|
||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO
|
|
|
0.60
|
|
0.45
|
33
|
||||||||
Average Balances
|
|
|
|
|
|
|
||||||||
Loans and leases, including held for sale
|
$
|
|
112,180
|
|
98,362
|
14
|
||||||||
Securities and other short-term investments
|
|
|
39,033
|
|
36,101
|
8
|
||||||||
Total assets
|
|
|
171,871
|
|
148,968
|
15
|
||||||||
Transaction deposits
(e)
|
|
|
118,096
|
|
100,647
|
17
|
||||||||
Core deposits
(f)
|
|
|
123,177
|
|
105,507
|
17
|
||||||||
Wholesale funding
(g)
|
|
|
21,832
|
|
22,187
|
(2
|
) | |||||||
Bancorp shareholders’ equity
|
|
|
21,713
|
|
17,025
|
28
|
||||||||
Regulatory Capital
(h)
|
|
|
||||||||||||
CET1 capital
|
|
|
9.37
|
%
|
9.60
|
(2
|
) | |||||||
Tier I risk-based capital
|
|
|
10.56
|
|
10.67
|
(1
|
) | |||||||
Total risk-based capital
|
|
|
13.59
|
|
13.68
|
(1
|
) | |||||||
Tier I leverage
|
|
|
9.37
|
|
10.32
|
(9
|
) |
(a)
|
Amounts presented on an FTE basis. The FTE adjustment for both the three months ended March 31, 2020 and 2019 was $4.
|
(b)
|
These are
non-GAAP
measures. For further information, refer to the
Non-GAAP
Financial Measures section of MD&A.
|
(c)
|
The provision for credit losses is the sum of the provision for loan and lease losses and the provision for (benefit from) the reserve for unfunded commitments.
|
(d)
|
The ACL is the sum of the ALLL and the reserve for unfunded commitments.
|
(e)
|
Includes demand deposits, interest checking deposits, savings deposits, money market deposits and foreign office deposits.
|
(f)
|
Includes transaction deposits and other time deposits.
|
(g)
|
Includes certificates $100,000 and over, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
|
(h)
|
Regulatory capital ratios for the three months ended March 31, 2020 are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital.
|
• | a Paycheck Protection Program Liquidity Facility to provide financing related to Paycheck Protection Program loans made by banks; |
• | a Main Street New Loan Facility, a Main Street Priority Loan Facility, and a Main Street Expanded Loan Facility to purchase loan participations, under specified conditions, from banks lending to small and medium U.S. businesses; |
• | a Primary Dealer Credit Facility to provide liquidity to primary dealers through a secured lending facility; |
• | a Commercial Paper Funding Facility to purchase the commercial paper of certain U.S. issuers; |
• | a Primary Market Corporate Credit Facility to purchase corporate bonds directly from, or make loans directly, to eligible participants; |
• | a Secondary Market Corporate Credit Facility to purchase corporate bonds trading in secondary markets, including from exchange-traded funds, that were issued by eligible participants; |
• | a Term Asset-Backed Securities Loan Facility to make loans secured by asset-backed securities; |
• | a Municipal Liquidity Facility to purchase bonds directly from U.S. state, city and county issuers; and |
• | a Money Market Mutual Fund Liquidity Facility to purchase certain assets from, or make loans to, financial institutions providing financing to eligible money market mutual funds. |
TABLE 2:
Non-GAAP
Financial Measures - Financial Measures and Ratios on an FTE basis
|
|
|
|
|
|
||||||
|
|
For the three months ended
|
|||||||||
|
|
March 31,
|
|||||||||
($ in millions)
|
|
2020
|
|
2019
|
|||||||
Net interest income (U.S. GAAP)
|
$
|
|
1,229
|
|
1,082
|
||||||
Add: FTE adjustment
|
|
|
4
|
|
4
|
||||||
Net interest income on an FTE basis (1)
|
$
|
|
1,233
|
|
1,086
|
||||||
Net interest income on an FTE basis (annualized) (2)
|
|
|
4,959
|
|
4,404
|
||||||
Interest income (U.S. GAAP)
|
$
|
|
1,525
|
|
1,433
|
||||||
Add: FTE adjustment
|
|
|
4
|
|
4
|
||||||
Interest income on an FTE basis
|
$
|
|
1,529
|
|
1,437
|
||||||
Interest income on an FTE basis (annualized) (3)
|
|
|
6,150
|
|
5,828
|
||||||
Interest expense (annualized) (4)
|
$
|
|
1,191
|
|
1,424
|
||||||
Noninterest income (5)
|
|
|
671
|
|
1,101
|
||||||
Noninterest expense (6)
|
|
|
1,200
|
|
1,097
|
||||||
Average interest-earning assets (7)
|
|
|
151,213
|
|
134,463
|
||||||
Average interest-bearing liabilities (8)
|
|
|
109,244
|
|
97,137
|
||||||
Ratios:
|
|
|
|
|
|
||||||
Net interest margin on an FTE basis (2) / (7)
|
|
|
3.28
|
%
|
3.28
|
||||||
Net interest rate spread on an FTE basis ((3) / (7)) - ((4) / (8))
|
|
|
2.98
|
|
2.87
|
||||||
Efficiency ratio on an FTE basis (6) / ((1) + (5))
|
|
|
63.0
|
|
50.2
|
TABLE 3:
Non-GAAP
Financial Measures - Return on Average Tangible Common Equity
|
|
|
|
|
|
||||||
|
|
|
|
||||||||
($ in millions)
|
|
March 31,
2020
|
|
March 31,
2019
|
|||||||
Net income available to common shareholders (U.S. GAAP)
|
$
|
|
29
|
|
760
|
||||||
Add: Intangible amortization, net of tax
|
|
|
10
|
|
2
|
||||||
Tangible net income available to common shareholders
|
$
|
|
39
|
|
762
|
||||||
Tangible net income available to common shareholders (annualized) (1)
|
|
|
157
|
|
3,090
|
||||||
Average Bancorp’s shareholders’ equity (U.S. GAAP)
|
$
|
|
21,713
|
|
17,025
|
||||||
Less: Average preferred stock
|
|
|
(1,770
|
)
|
(1,331
|
) | |||||
Average goodwill
|
|
|
(4,251
|
)
|
(2,682
|
) | |||||
Average intangible assets
|
|
|
(193
|
)
|
(58
|
) | |||||
Average tangible common equity (2)
|
$
|
|
15,499
|
|
12,954
|
||||||
Return on average tangible common equity (1) / (2)
|
|
|
1.0
|
%
|
23.9
|
TABLE 4:
Non-GAAP
Financial Measures - Capital Ratios
|
|
|
|
||||||||
|
|
|
|
||||||||
|
|
March 31,
|
|
December 31,
|
|||||||
As of ($ in millions)
|
|
2020
|
|
2019
|
|||||||
Total Bancorp Shareholders’ Equity (U.S. GAAP)
|
$
|
|
21,873
|
|
21,203
|
||||||
Less: Preferred stock
|
|
|
(1,770
|
)
|
(1,770
|
) | |||||
Goodwill
|
|
|
(4,261
|
)
|
(4,252
|
) | |||||
Intangible assets
|
|
|
(184
|
)
|
(201
|
) | |||||
AOCI
|
|
|
(2,477
|
)
|
(1,192
|
) | |||||
Tangible common equity, excluding AOCI (1)
|
|
|
13,181
|
|
13,788
|
||||||
Add: Preferred stock
|
|
|
1,770
|
|
1,770
|
||||||
Tangible equity (2)
|
$
|
|
14,951
|
|
15,558
|
||||||
Total Assets (U.S. GAAP)
|
$
|
|
185,391
|
|
169,369
|
||||||
Less: Goodwill
|
|
|
(4,261
|
)
|
(4,252
|
) | |||||
Intangible assets
|
|
|
(184
|
)
|
(201
|
) | |||||
AOCI, before tax
|
|
|
(3,135
|
)
|
(1,509
|
) | |||||
Tangible assets, excluding AOCI (3)
|
$
|
|
177,811
|
|
163,407
|
||||||
Ratios:
|
|
|
|
|
|
||||||
Tangible equity as a percentage of tangible assets (2) / (3)
|
|
|
8.41
|
%
|
9.52
|
||||||
Tangible common equity as a percentage of tangible assets (1) / (3)
|
|
|
7.41
|
|
8.44
|
For the three months ended
|
March 31, 2020
|
March 31, 2019
|
Attribution of Change in
Net Interest Income
(a)
|
|||||||||||||||||||||||||||||||||
|
|
|
Average
|
|
|
Average
|
|
|
|
|||||||||||||||||||||||||||
|
Average
|
Revenue/
|
Yield/
|
Average
|
Revenue/
|
Yield/
|
|
|
|
|||||||||||||||||||||||||||
($ in millions)
|
Balance
|
Cost
|
Rate
|
Balance
|
Cost
|
Rate
|
Volume
|
Yield/Rate
|
Total
|
|||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Loans and leases:
(b)
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Commercial and industrial loans
|
$
|
51,693
|
|
|
546
|
|
|
4.25
|
%
|
$ |
46,070
|
530
|
4.67
|
% | $ |
67
|
(51
|
) |
16
|
|||||||||||||||||
Commercial mortgage loans
|
|
11,020
|
|
|
122
|
|
|
4.44
|
|
7,417
|
88
|
4.80
|
41
|
(7
|
) |
34
|
||||||||||||||||||||
Commercial construction loans
|
|
5,132
|
|
|
61
|
|
|
4.82
|
|
4,838
|
66
|
5.55
|
4
|
(9
|
) |
(5
|
) | |||||||||||||||||||
Commercial leases
|
|
3,201
|
|
|
28
|
|
|
3.46
|
|
3,555
|
27
|
3.08
|
(2
|
) |
3
|
1
|
||||||||||||||||||||
Total commercial loans and leases
|
|
71,046
|
|
|
757
|
|
|
4.28
|
|
61,880
|
711
|
4.66
|
110
|
(64
|
) |
46
|
||||||||||||||||||||
Residential mortgage loans
|
|
18,024
|
|
|
163
|
|
|
3.63
|
|
16,150
|
147
|
3.71
|
20
|
(4
|
) |
16
|
||||||||||||||||||||
Home equity
|
|
6,006
|
|
|
70
|
|
|
4.71
|
|
6,356
|
84
|
5.34
|
(5
|
) |
(9
|
) |
(14
|
) | ||||||||||||||||||
Indirect secured consumer loans
|
|
11,809
|
|
|
120
|
|
|
4.09
|
|
9,176
|
86
|
3.79
|
26
|
8
|
34
|
|||||||||||||||||||||
Credit card
|
|
2,498
|
|
|
75
|
|
|
12.13
|
|
2,396
|
75
|
12.63
|
3
|
(3
|
) |
-
|
||||||||||||||||||||
Other consumer loans
|
|
2,797
|
|
|
54
|
|
|
7.71
|
|
2,404
|
44
|
7.49
|
9
|
1
|
10
|
|||||||||||||||||||||
Total consumer loans
|
|
41,134
|
|
|
482
|
|
|
4.71
|
|
36,482
|
436
|
4.85
|
53
|
(7
|
) |
46
|
||||||||||||||||||||
Total loans and leases
|
$
|
112,180
|
|
|
1,239
|
|
|
4.44
|
%
|
$ |
98,362
|
1,147
|
4.73
|
% | $ |
163
|
(71
|
) |
92
|
|||||||||||||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Taxable
|
|
35,973
|
|
|
282
|
|
|
3.15
|
|
34,320
|
281
|
3.32
|
15
|
(14
|
) |
1
|
||||||||||||||||||||
Exempt from income taxes
(b)
|
|
162
|
|
|
1
|
|
|
3.04
|
|
28
|
-
|
4.80
|
1
|
-
|
1
|
|||||||||||||||||||||
Other short-term investments
|
|
2,898
|
|
|
7
|
|
|
0.97
|
|
1,753
|
9
|
1.97
|
4
|
(6
|
) |
(2
|
) | |||||||||||||||||||
Total interest-earning assets
|
$
|
151,213
|
|
|
1,529
|
|
|
4.07
|
%
|
$ |
134,463
|
1,437
|
4.33
|
% | $ |
183
|
(91
|
) |
92
|
|||||||||||||||||
Cash and due from banks
|
|
2,880
|
|
|
|
|
|
|
|
2,217
|
|
|
|
|
|
|||||||||||||||||||||
Other assets
|
|
19,623
|
|
|
|
|
|
|
|
13,391
|
|
|
|
|
|
|||||||||||||||||||||
Allowance for loan and lease losses
|
|
(1,845
|
)
|
|
|
|
|
|
|
(1,103
|
) |
|
|
|
|
|
||||||||||||||||||||
Total assets
|
$
|
171,871
|
|
|
|
|
|
|
|
$ |
148,968
|
|
|
|
|
|
||||||||||||||||||||
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Interest checking deposits
|
$
|
40,298
|
|
|
75
|
|
|
0.75
|
%
|
$ |
33,697
|
97
|
1.18
|
% | $ |
18
|
(40
|
) |
(22
|
) | ||||||||||||||||
Savings deposits
|
|
14,715
|
|
|
5
|
|
|
0.13
|
|
13,052
|
5
|
0.15
|
1
|
(1
|
) |
-
|
||||||||||||||||||||
Money market deposits
|
|
27,109
|
|
|
48
|
|
|
0.72
|
|
23,133
|
59
|
1.03
|
9
|
(20
|
) |
(11
|
) | |||||||||||||||||||
Foreign office deposits
|
|
209
|
|
|
-
|
|
|
0.57
|
|
208
|
-
|
0.60
|
-
|
-
|
-
|
|||||||||||||||||||||
Other time deposits
|
|
5,081
|
|
|
20
|
|
|
1.56
|
|
4,860
|
22
|
1.80
|
1
|
(3
|
) |
(2
|
) | |||||||||||||||||||
Total interest-bearing core deposits
|
|
87,412
|
|
|
148
|
|
|
0.68
|
|
74,950
|
183
|
0.99
|
29
|
(64
|
) |
(35
|
) | |||||||||||||||||||
Certificates $100,000 and over
|
|
3,355
|
|
|
17
|
|
|
2.09
|
|
3,358
|
18
|
2.13
|
(1
|
) |
-
|
(1
|
) | |||||||||||||||||||
Other deposits
|
|
257
|
|
|
1
|
|
|
0.85
|
|
726
|
4
|
2.43
|
(1
|
) |
(2
|
) |
(3
|
) | ||||||||||||||||||
Federal funds purchased
|
|
654
|
|
|
2
|
|
|
1.13
|
|
2,019
|
12
|
2.43
|
(5
|
) |
(5
|
) |
(10
|
) | ||||||||||||||||||
Other short-term borrowings
|
|
1,750
|
|
|
6
|
|
|
1.32
|
|
646
|
6
|
3.62
|
5
|
(5
|
) |
-
|
||||||||||||||||||||
Long-term debt
|
|
15,816
|
|
|
122
|
|
|
3.12
|
|
15,438
|
128
|
3.35
|
3
|
(9
|
) |
(6
|
) | |||||||||||||||||||
Total interest-bearing liabilities
|
$
|
109,244
|
|
|
296
|
|
|
1.09
|
%
|
$ |
97,137
|
351
|
1.46
|
% | $ |
30
|
(85
|
) |
(55
|
) | ||||||||||||||||
Demand deposits
|
|
35,765
|
|
|
|
|
|
|
|
30,557
|
|
|
|
|
|
|||||||||||||||||||||
Other liabilities
|
|
5,149
|
|
|
|
|
|
|
|
4,227
|
|
|
|
|
|
|||||||||||||||||||||
Total liabilities
|
$
|
150,158
|
|
|
|
|
|
|
|
$ |
131,921
|
|
|
|
|
|
||||||||||||||||||||
Total equity
|
$
|
21,713
|
|
|
|
|
|
|
|
$ |
17,047
|
|
|
|
|
|
||||||||||||||||||||
Total liabilities and equity
|
$
|
171,871
|
|
|
|
|
|
|
|
$ |
148,968
|
|
|
|
|
|
||||||||||||||||||||
Net interest income (FTE)
(c)
|
|
|
|
$
|
1,233
|
|
|
|
|
|
$ |
1,086
|
|
$ |
153
|
(6
|
) |
147
|
||||||||||||||||||
Net interest margin (FTE)
(c)
|
|
|
|
|
|
|
|
3.28
|
%
|
|
|
3.28
|
% |
|
|
|
||||||||||||||||||||
Net interest rate spread (FTE)
(c)
|
|
|
|
|
|
|
|
2.98
|
|
|
|
2.87
|
|
|
|
|||||||||||||||||||||
Interest-bearing liabilities to interest-earning assets
|
|
|
|
|
72.24
|
|
|
|
72.24
|
|
|
|
(a)
|
Changes in interest not solely due to volume or yield/rate are allocated in proportion to the absolute dollar amount of change in volume and yield/rate.
|
(b)
|
The FTE adjustments included in the above table were $4 for both the three months ended March 31, 2020 and 2019.
|
(c)
|
Net interest income (FTE), net interest margin (FTE) and net interest rate spread (FTE) are
non-GAAP
measures. For further information, refer to the
Non-GAAP
Financial Measures section of MD&A.
|
|
|
|
|
|
|||||||||||||
|
|
For the three months ended
|
|
||||||||||||||
|
|
|
March 31,
|
|
|
||||||||||||
($ in millions)
|
|
|
2020
|
|
2019
|
% Change
|
|||||||||||
|
|
|
|
|
|||||||||||||
Service charges on deposits
|
$
|
|
|
|
148
|
|
131
|
13
|
|||||||||
Wealth and asset management revenue
|
|
|
|
|
134
|
|
112
|
20
|
|||||||||
Commercial banking revenue
|
|
|
|
|
124
|
|
103
|
20
|
|||||||||
Mortgage banking net revenue
|
|
|
|
|
120
|
|
56
|
114
|
|||||||||
Card and processing revenue
|
|
|
|
|
86
|
|
79
|
9
|
|||||||||
Leasing business revenue
|
|
|
|
|
73
|
|
32
|
128
|
|||||||||
Other noninterest income
|
|
|
|
|
7
|
|
569
|
(99
|
) | ||||||||
Securities (losses) gains, net
|
|
|
|
|
(24
|
)
|
16
|
NM
|
|||||||||
Securities gains, net -
non-qualifying
hedges on MSRs
|
|
|
|
|
3
|
|
3
|
-
|
|||||||||
Total noninterest income
|
$
|
|
|
|
671
|
|
1,101
|
(39
|
) |
(a)
|
During the first quarter of 2020, certain noninterest income line items were reclassified to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest income did not change as a result of these reclassifications.
|
|
|
For the three months ended
|
||||||||||
|
|
March 31,
|
||||||||||
($ in millions)
|
|
|
2020
|
|
2019
|
|||||||
Origination fees and gains on loan sales
|
$
|
|
|
|
81
|
|
25
|
|||||
Net mortgage servicing revenue:
|
|
|
|
|
|
|
|
|||||
Gross mortgage servicing fees
|
|
|
|
|
67
|
|
55
|
|||||
Net valuation adjustments on MSRs and free-standing derivatives purchased to economically hedge MSRs
|
|
|
|
|
(28
|
)
|
(24
|
) | ||||
Net mortgage servicing revenue
|
|
|
|
|
39
|
|
31
|
|||||
Total mortgage banking net revenue
|
$
|
|
|
|
120
|
|
56
|
|
|
For the three months ended
|
||||||||||
|
|
March 31,
|
||||||||||
($ in millions)
|
|
|
2020
|
|
2019
|
|||||||
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio
|
$
|
|
|
|
350
|
|
60
|
|||||
Changes in fair value:
|
|
|
|
|
|
|
|
|||||
Due to changes in inputs or assumptions
|
|
|
|
|
(331
|
)
|
(57
|
) | ||||
Other changes in fair value
|
|
|
|
|
(47
|
)
|
(27
|
) | ||||
Net valuation adjustments on MSRs and free-standing derivatives purchased to economically hedge MSRs
|
$
|
|
|
|
(28
|
)
|
(24
|
) |
|
|
For the three months ended
|
|||||||||||
|
|
March 31,
|
|||||||||||
($ in millions)
|
|
|
2020
|
|
2019
|
||||||||
BOLI income
|
$
|
|
|
|
15
|
|
14
|
||||||
Cardholder fees
|
|
|
|
|
11
|
|
14
|
||||||
Insurance income
|
|
|
|
|
6
|
|
6
|
||||||
Consumer loan and lease fees
|
|
|
|
|
5
|
|
5
|
||||||
Banking center income
|
|
|
|
|
5
|
|
5
|
||||||
Loss on swap associated with the sale of Visa, Inc. Class B Shares
|
|
|
|
|
(22
|
)
|
(31
|
) | |||||
Private equity investment (loss) income
|
|
|
|
|
(14
|
)
|
4
|
||||||
Net losses on disposition and impairment of bank premises and equipment
|
|
|
|
|
(3
|
)
|
(20
|
) | |||||
Gain on sale of Worldpay, Inc. shares
|
|
|
|
|
-
|
|
562
|
||||||
Equity method income from interest in Worldpay Holding, LLC
|
|
|
|
|
-
|
|
2
|
||||||
Net gains on loan sales
|
|
|
|
|
-
|
|
1
|
||||||
Other, net
|
|
|
|
|
4
|
|
7
|
||||||
Total other noninterest income
|
$
|
|
|
|
7
|
|
569
|
|
|
|
|
|
|||||||||||||
|
|
For the three months ended
|
|
|
|||||||||||||
|
|
March 31,
|
|
||||||||||||||
($ in millions)
|
|
|
2020
|
|
2019
|
% Change
|
|||||||||||
Compensation and benefits
|
$
|
|
|
|
647
|
|
610
|
6
|
|||||||||
Technology and communications
|
|
|
|
|
93
|
|
83
|
12
|
|||||||||
Net occupancy expense
|
|
|
|
|
82
|
|
75
|
9
|
|||||||||
Leasing business expense
|
|
|
|
|
35
|
|
19
|
84
|
|||||||||
Equipment expense
|
|
|
|
|
32
|
|
30
|
7
|
|||||||||
Marketing expense
|
|
|
|
|
31
|
|
36
|
(14
|
) | ||||||||
Card and processing expense
|
|
|
|
|
31
|
|
31
|
-
|
|||||||||
Other noninterest expense
|
|
|
|
|
249
|
|
213
|
17
|
|||||||||
Total noninterest expense
|
$
|
|
|
|
1,200
|
|
1,097
|
9
|
|||||||||
Efficiency ratio on an FTE basis
(b)
|
|
|
|
|
63.0
|
%
|
50.2
|
|
(a)
|
During the first quarter of 2020, certain noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest expense did not change as a result of these reclassifications.
|
(b)
|
This is a
non-GAAP
measure. For further information, refer to the
Non-GAAP
Financial Measures section of MD&A.
|
TABLE 11: Merger-Related Expenses
|
|
|
|
||||||||||
|
|
For the three months ended
|
|||||||||||
|
|
March 31,
|
|||||||||||
($ in millions)
|
|
|
2020
|
|
2019
|
||||||||
Compensation and benefits
|
$
|
|
|
|
2
|
|
35
|
||||||
Technology and communications
|
|
|
|
|
3
|
|
11
|
||||||
Net occupancy expense
|
|
|
|
|
1
|
|
-
|
||||||
Marketing expense
|
|
|
|
|
-
|
|
4
|
||||||
Other noninterest expense
|
|
|
|
|
1
|
|
26
|
||||||
Total
|
$
|
|
|
|
7
|
|
76
|
|
|
For the three months ended
|
|||||||||||
|
|
March 31,
|
|||||||||||
($ in millions)
|
|
|
2020
|
|
2019
|
||||||||
Losses and adjustments
|
$
|
|
|
|
54
|
|
22
|
||||||
Loan and lease
|
|
|
|
|
35
|
|
27
|
||||||
FDIC insurance and other taxes
|
|
|
|
|
25
|
|
20
|
||||||
Data processing
|
|
|
|
|
18
|
|
16
|
||||||
Travel
|
|
|
|
|
15
|
|
14
|
||||||
Intangible amortization
|
|
|
|
|
13
|
|
3
|
||||||
Professional service fees
|
|
|
|
|
10
|
|
19
|
||||||
Postal and courier
|
|
|
|
|
10
|
|
9
|
||||||
Recruitment and education
|
|
|
|
|
6
|
|
11
|
||||||
Supplies
|
|
|
|
|
4
|
|
3
|
||||||
Insurance
|
|
|
|
|
4
|
|
3
|
||||||
Donations
|
|
|
|
|
3
|
|
3
|
||||||
Other, net
|
|
|
|
|
52
|
|
63
|
||||||
Total other noninterest expense
|
$
|
|
|
|
249
|
|
213
|
|
|
For the three months ended
|
|||||||||||
|
|
March 31,
|
|||||||||||
($ in millions)
|
|
|
2020
|
|
2019
|
||||||||
Income before income taxes
|
$
|
|
|
|
60
|
|
996
|
||||||
Applicable income tax expense
|
|
|
|
|
14
|
|
221
|
||||||
Effective tax rate
|
|
|
|
|
22.6
|
%
|
22.2
|
|
|
|
March 31, 2020
|
December 31, 2019
|
||||||||||||||||
As of ($ in millions)
|
|
Carrying Value
|
% of Total
|
Carrying Value
|
% of Total
|
|||||||||||||||
Commercial loans and leases:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial and industrial loans
|
$
|
|
|
|
58,314
|
|
|
49
|
%
|
$ |
50,677
|
46
|
% | |||||||
Commercial mortgage loans
|
|
|
|
|
11,161
|
|
|
9
|
|
10,964
|
10
|
|||||||||
Commercial construction loans
|
|
|
|
|
5,462
|
|
|
4
|
|
5,090
|
4
|
|||||||||
Commercial leases
|
|
|
|
|
3,123
|
|
|
3
|
|
3,363
|
3
|
|||||||||
Total commercial loans and leases
|
|
|
|
|
78,060
|
|
|
65
|
|
70,094
|
63
|
|||||||||
Consumer loans:
|
|
|
|
|
|
|
|
|||||||||||||
Residential mortgage loans
|
|
|
|
|
18,266
|
|
|
15
|
|
17,988
|
16
|
|||||||||
Home equity
|
|
|
|
|
5,963
|
|
|
5
|
|
6,083
|
6
|
|||||||||
Indirect secured consumer loans
|
|
|
|
|
12,050
|
|
|
10
|
|
11,538
|
10
|
|||||||||
Credit card
|
|
|
|
|
2,417
|
|
|
2
|
|
2,532
|
2
|
|||||||||
Other consumer loans
|
|
|
|
|
2,911
|
|
|
3
|
|
2,723
|
3
|
|||||||||
Total consumer loans
|
|
|
|
|
41,607
|
|
|
35
|
|
40,864
|
37
|
|||||||||
Total loans and leases
|
$
|
|
|
|
119,667
|
|
|
100
|
%
|
$ |
110,958
|
100
|
% | |||||||
Total portfolio loans and leases (excluding loans and leases held for sale)
|
$
|
|
|
|
118,037
|
|
|
|
|
$ |
109,558
|
|
|
|
|
March 31, 2020
|
March 31, 2019
|
||||||||||||||||
For the three months ended ($ in millions)
|
|
Carrying Value
|
% of Total
|
Carrying Value
|
% of Total
|
|||||||||||||||
Commercial loans and leases:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial and industrial loans
|
$
|
|
|
|
51,693
|
|
|
46
|
%
|
$ |
46,070
|
48
|
% | |||||||
Commercial mortgage loans
|
|
|
|
|
11,020
|
|
|
10
|
|
7,417
|
8
|
|||||||||
Commercial construction loans
|
|
|
|
|
5,132
|
|
|
4
|
|
4,838
|
5
|
|||||||||
Commercial leases
|
|
|
|
|
3,201
|
|
|
3
|
|
3,555
|
4
|
|||||||||
Total commercial loans and leases
|
|
|
|
|
71,046
|
|
|
63
|
|
61,880
|
65
|
|||||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential mortgage loans
|
|
|
|
|
18,024
|
|
|
16
|
|
16,150
|
16
|
|||||||||
Home equity
|
|
|
|
|
6,006
|
|
|
5
|
|
6,356
|
6
|
|||||||||
Indirect secured consumer loans
|
|
|
|
|
11,809
|
|
|
11
|
|
9,176
|
9
|
|||||||||
Credit card
|
|
|
|
|
2,498
|
|
|
2
|
|
2,396
|
2
|
|||||||||
Other consumer loans
|
|
|
|
|
2,797
|
|
|
3
|
|
2,404
|
2
|
|||||||||
Total consumer loans
|
|
|
|
|
41,134
|
|
|
37
|
|
36,482
|
35
|
|||||||||
Total average loans and leases
|
$
|
|
|
|
112,180
|
|
|
100
|
%
|
$ |
98,362
|
100
|
% | |||||||
Total average portfolio loans and leases (excluding loans and leases held for sale)
|
$
|
|
|
|
110,779
|
|
|
$ |
97,773
|
|
|
|
|
|||||||
|
March 31,
|
|
December 31,
|
||||||
As of ($ in millions)
|
2020
|
|
2019
|
||||||
Available-for-sale
debt and other securities (amortized cost basis):
|
|
|
|
|
|||||
U.S. Treasury and federal agency securities
|
$
|
74
|
|
74
|
|||||
Obligations of states and political subdivisions securities
|
|
17
|
|
18
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|||||
Agency residential mortgage-backed securities
|
|
13,350
|
|
13,746
|
|||||
Agency commercial mortgage-backed securities
|
|
16,395
|
|
15,141
|
|||||
Non-agency
commercial mortgage-backed securities
|
|
3,229
|
|
3,242
|
|||||
Asset-backed securities and other debt securities
|
|
2,747
|
|
2,189
|
|||||
Other securities
(a)
|
|
616
|
|
556
|
|||||
Total
available-for-sale
debt and other securities
|
$
|
36,428
|
|
34,966
|
|||||
Held-to-maturity
securities (amortized cost basis):
|
|
|
|
|
|||||
Obligations of states and political subdivisions securities
|
$
|
15
|
|
15
|
|||||
Asset-backed securities and other debt securities
|
|
2
|
|
2
|
|||||
Total
held-to-maturity
securities
|
$
|
17
|
|
17
|
|||||
Trading debt securities (fair value):
|
|
|
|
|
|||||
U.S. Treasury and federal agency securities
|
$
|
50
|
|
2
|
|||||
Obligations of states and political subdivisions securities
|
|
28
|
|
9
|
|||||
Agency residential mortgage-backed securities
|
|
55
|
|
55
|
|||||
Non-agency
residential mortgage-backed securities
|
|
4
|
|
-
|
|||||
Asset-backed securities and other debt securities
|
|
296
|
|
231
|
|||||
Total trading debt securities
|
$
|
433
|
|
297
|
|||||
Total equity securities (fair value)
|
$
|
459
|
|
564
|
(a)
|
Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $136, $478 and $2, respectively, at March 31, 2020 and $76, $478 and $2, respectively, at December 31, 2019, that are carried at cost.
|
TABLE 17: Characteristics of
Available-for-Sale
Debt and Other Securities
|
|||||||||||||||||
|
|
|
Weighted-Average
|
Weighted-Average
|
|||||||||||||
As of March 31, 2020 ($ in millions)
|
Amortized Cost
|
Fair Value
|
Life (in years)
|
Yield
|
|||||||||||||
U.S. Treasury and federal agency securities:
|
|
|
|
|
|||||||||||||
Average life 1 – 5 years
|
$ |
74
|
78
|
2.8
|
2.15
|
% | |||||||||||
Total
|
$ |
74
|
78
|
2.8
|
2.15
|
% | |||||||||||
Obligations of states and political subdivisions securities:
|
|
|
|
|
|||||||||||||
Average life of 1 year or less
|
2
|
2
|
-
|
0.15
|
|||||||||||||
Average life 1 – 5 years
|
15
|
15
|
2.8
|
2.01
|
|||||||||||||
Total
|
$ |
17
|
17
|
2.5
|
1.82
|
% | |||||||||||
Agency residential mortgage-backed securities:
|
|
|
|
|
|||||||||||||
Average life of 1 year or less
|
10
|
10
|
0.7
|
3.37
|
|||||||||||||
Average life 1 – 5 years
|
7,206
|
7,610
|
3.6
|
3.06
|
|||||||||||||
Average life 5 – 10 years
|
5,401
|
5,740
|
6.8
|
3.09
|
|||||||||||||
Average life greater than 10 years
|
733
|
784
|
14.2
|
3.21
|
|||||||||||||
Total
|
$ |
13,350
|
14,144
|
5.5
|
3.08
|
% | |||||||||||
Agency commercial mortgage-backed securities:
(a)
|
|
|
|
|
|||||||||||||
Average life of 1 year or less
|
18
|
19
|
0.5
|
3.28
|
|||||||||||||
Average life 1 – 5 years
|
4,036
|
4,362
|
3.1
|
3.20
|
|||||||||||||
Average life 5 – 10 years
|
8,850
|
9,598
|
7.3
|
3.22
|
|||||||||||||
Average life greater than 10 years
|
3,491
|
3,819
|
13.4
|
3.18
|
|||||||||||||
Total
|
$ |
16,395
|
17,798
|
7.6
|
3.20
|
% | |||||||||||
Non-agency
commercial mortgage-backed securities:
|
|
|
|
|
|||||||||||||
Average life of 1 year or less
|
8
|
8
|
0.8
|
3.47
|
|||||||||||||
Average life 1 – 5 years
|
1,922
|
1,970
|
4.0
|
3.28
|
|||||||||||||
Average life 5 – 10 years
|
1,299
|
1,337
|
5.7
|
3.30
|
|||||||||||||
Total
|
$ |
3,229
|
3,315
|
4.7
|
3.28
|
% | |||||||||||
Asset-backed securities and other debt securities:
|
|
|
|
|
|||||||||||||
Average life of 1 year or less
|
105
|
101
|
0.5
|
3.23
|
|||||||||||||
Average life 1 – 5 years
|
1,141
|
1,130
|
2.6
|
3.66
|
|||||||||||||
Average life 5 – 10 years
|
1,168
|
1,123
|
6.9
|
2.91
|
|||||||||||||
Average life greater than 10 years
|
333
|
323
|
12.2
|
2.64
|
|||||||||||||
Total
|
$ |
2,747
|
2,677
|
5.6
|
3.20
|
% | |||||||||||
Other securities
|
616
|
616
|
|
|
|||||||||||||
Total
available-for-sale
debt and other securities
|
$ |
36,428
|
38,645
|
6.4
|
3.16
|
% |
(a)
|
Taxable-equivalent yield adjustments included in the above table are 0.02% and 0.01% for securities with an average life greater than 10 years and in total, respectively.
|
TABLE 18: Components of Deposits
|
|
|
|
|
|
||||||||||||||||
|
|
|
March 31, 2020
|
December 31, 2019
|
|||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
As of ($ in millions)
|
|
Balance
|
% of Total
|
Balance
|
% of Total
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
Demand
|
$
|
|
|
|
39,533
|
|
|
29
|
%
|
$ |
35,968
|
28
|
% | ||||||||
Interest checking
|
|
|
|
|
44,520
|
|
|
33
|
|
40,409
|
33
|
||||||||||
Savings
|
|
|
|
|
15,557
|
|
|
12
|
|
14,248
|
11
|
||||||||||
Money market
|
|
|
|
|
27,775
|
|
|
21
|
|
27,277
|
21
|
||||||||||
Foreign office
|
|
|
|
|
177
|
|
|
-
|
|
221
|
-
|
||||||||||
Total transaction deposits
|
|
|
|
|
127,562
|
|
|
95
|
|
118,123
|
93
|
||||||||||
Other time
|
|
|
|
|
4,683
|
|
|
3
|
|
5,237
|
4
|
||||||||||
Total core deposits
|
|
|
|
|
132,245
|
|
|
98
|
|
123,360
|
97
|
||||||||||
Certificates $100,000 and over
(a)
|
|
|
|
|
2,816
|
|
|
2
|
|
3,702
|
3
|
||||||||||
Total deposits
|
$
|
|
|
|
135,061
|
|
|
100
|
%
|
$ |
127,062
|
100
|
% |
(a)
|
Includes $1.5 billion and $2.1 billion of institutional, retail and wholesale certificates $250,000 and over at March 31, 2020 and December 31, 2019, respectively.
|
TABLE 20: Contractual Maturities of Certificates $100,000 and Over
|
||||
($ in millions)
|
|
|||
Next 3 months
|
$ |
1,292
|
||
3-6
months
|
545
|
|||
6-12
months
|
575
|
|||
After 12 months
|
404
|
|||
Total certificates $100,000 and over
|
$ |
2,816
|
TABLE 21: Contractual Maturities of Other Time Deposits and Certificates $100,000 and Over
|
|
||||
|
|
||||
($ in millions)
|
|
||||
Next 12 months
|
$ |
6,459
|
|||
13-24
months
|
755
|
||||
25-36
months
|
145
|
||||
37-48
months
|
46
|
||||
49-60
months
|
82
|
||||
After 60 months
|
12
|
||||
Total other time deposits and certificates $100,000 and over
|
$ |
7,499
|
TABLE 22: Components of Borrowings
|
|||||||||
As of ($ in millions)
|
March 31, 2020
|
|
December 31, 2019
|
||||||
Federal funds purchased
|
$
|
1,625
|
|
260
|
|||||
Other short-term borrowings
|
|
4,542
|
|
1,011
|
|||||
Long-term debt
|
|
16,282
|
|
14,970
|
|||||
Total borrowings
|
$
|
22,449
|
|
16,241
|
TABLE 25: Commercial Banking
|
||||||||||
|
|
For the three months ended
|
||||||||
|
|
March 31,
|
||||||||
($ in millions)
|
|
2020
|
|
2019
|
||||||
Income Statement Data
|
|
|
|
|||||||
Net interest income (FTE)
(a)
|
$
|
|
511
|
|
513
|
|||||
Provision for credit losses
|
|
|
45
|
|
20
|
|||||
Noninterest income:
|
|
|
|
|
|
|||||
Commercial banking revenue
|
|
|
124
|
|
103
|
|||||
Service charges on deposits
|
|
|
84
|
|
66
|
|||||
Leasing business revenue
|
|
|
73
|
|
32
|
|||||
Other noninterest income
|
|
|
6
|
|
26
|
|||||
Noninterest expense:
|
|
|
|
|
|
|||||
Compensation and benefits
|
|
|
150
|
|
109
|
|||||
Leasing business expense
|
|
|
35
|
|
19
|
|||||
Other noninterest expense
|
|
|
295
|
|
228
|
|||||
Income before income taxes (FTE)
|
|
|
273
|
|
364
|
|||||
Applicable income tax expense
(a)(b)
|
|
|
49
|
|
70
|
|||||
Net income
|
$
|
|
224
|
|
294
|
|||||
Average Balance Sheet Data
|
|
|
|
|
|
|||||
Commercial loans and leases, including held for sale
|
$
|
|
67,684
|
|
58,655
|
|||||
Demand deposits
|
|
|
17,124
|
|
14,409
|
|||||
Interest checking deposits
|
|
|
20,448
|
|
16,214
|
|||||
Savings and money market deposits
|
|
|
4,959
|
|
3,638
|
|||||
Other time deposits and certificates $100,000 and over
|
|
|
206
|
|
282
|
|||||
Foreign office deposits
|
|
|
209
|
|
208
|
(a)
|
Includes FTE adjustments of $4 for both the three months ended March 31, 2020 and 2019.
|
(b)
|
Applicable income tax expense for all periods includes the tax benefit from
tax-exempt
income,
tax-advantaged
investments and tax credits partially offset by the effect of certain nondeductible expenses. Refer to the Applicable Income Taxes subsection of the Statements of Income Analysis section of MD&A for additional information.
|
TABLE 26: Branch Banking
|
|||||||||||
|
|
For the three months ended
|
|||||||||
|
|
March 31,
|
|||||||||
|
|
|
|
||||||||
($ in millions)
|
|
2020
|
|
2019
|
|
||||||
Income Statement Data
|
|
|
|
|
|
||||||
Net interest income
|
$
|
|
505
|
|
584
|
||||||
Provision for credit losses
|
|
|
62
|
|
52
|
||||||
Noninterest income:
|
|
|
|
|
|
||||||
Card and processing revenue
|
|
|
67
|
|
63
|
||||||
Service charges on deposits
|
|
|
65
|
|
64
|
||||||
Wealth and asset management revenue
|
|
|
44
|
|
36
|
||||||
Other noninterest income
|
|
|
22
|
|
20
|
||||||
Noninterest expense:
|
|
|
|
|
|
||||||
Compensation and benefits
|
|
|
168
|
|
143
|
||||||
Net occupancy and equipment expense
|
|
|
55
|
|
55
|
||||||
Card and processing expense
|
|
|
30
|
|
29
|
||||||
Other noninterest expense
|
|
|
235
|
|
213
|
||||||
Income before income taxes
|
|
|
153
|
|
275
|
||||||
Applicable income tax expense
|
|
|
32
|
|
58
|
||||||
Net income
|
$
|
|
121
|
|
217
|
||||||
Average Balance Sheet Data
|
|
|
|
|
|
||||||
Consumer loans
|
$
|
|
13,283
|
|
13,205
|
||||||
Commercial loans
|
|
|
2,296
|
|
2,027
|
||||||
Demand deposits
|
|
|
16,376
|
|
14,563
|
||||||
Interest checking deposits
|
|
|
11,506
|
|
9,933
|
||||||
Savings and money market deposits
|
|
|
34,480
|
|
30,927
|
||||||
Other time deposits and certificates $100,000 and over
|
|
|
6,794
|
|
6,429
|
TABLE 27: Consumer Lending
|
|||||||||||
|
|
For the three months ended
|
|||||||||
|
|
March 31,
|
|||||||||
|
|
|
|
||||||||
($ in millions)
|
|
2020
|
|
2019
|
|||||||
Income Statement Data
|
|
|
|
|
|
||||||
Net interest income
|
$
|
|
89
|
|
63
|
||||||
Provision for credit losses
|
|
|
13
|
|
13
|
||||||
Noninterest income:
|
|
|
|
|
|
||||||
Mortgage banking net revenue
|
|
|
117
|
|
55
|
||||||
Other noninterest income
|
|
|
7
|
|
6
|
||||||
Noninterest expense:
|
|
|
|
|
|
||||||
Compensation and benefits
|
|
|
51
|
|
45
|
||||||
Other noninterest expense
|
|
|
71
|
|
56
|
||||||
Income before income taxes
|
|
|
78
|
|
10
|
||||||
Applicable income tax expense
|
|
|
17
|
|
2
|
||||||
Net income
|
$
|
|
61
|
|
8
|
||||||
Average Balance Sheet Data
|
|
|
|
|
|
||||||
Residential mortgage loans, including held for sale
|
$
|
|
13,551
|
|
11,896
|
||||||
Home equity
|
|
|
206
|
|
222
|
||||||
Indirect secured consumer loans
|
|
|
11,605
|
|
8,921
|
TABLE 28: Wealth and Asset Management
|
|
|
|
||||||||
|
|
For the three months ended
|
|||||||||
|
|
March 31,
|
|||||||||
($ in millions)
|
|
2020
|
|
2019
|
|||||||
Income Statement Data
|
|
|
|
|
|
||||||
Net interest income
|
$
|
|
37
|
|
49
|
||||||
Provision for credit losses
|
|
|
1
|
|
-
|
||||||
Noninterest income:
|
|
|
|
|
|
||||||
Wealth and asset management revenue
|
|
|
129
|
|
108
|
||||||
Other noninterest income
|
|
|
6
|
|
6
|
||||||
Noninterest expense:
|
|
|
|
|
|
||||||
Compensation and benefits
|
|
|
61
|
|
56
|
||||||
Other noninterest expense
|
|
|
82
|
|
74
|
||||||
Income before income taxes
|
|
|
28
|
|
33
|
||||||
Applicable income tax expense
|
|
|
6
|
|
7
|
||||||
Net income
|
$
|
|
22
|
|
26
|
||||||
Average Balance Sheet Data
|
|
|
|
|
|
||||||
Loans and leases, including held for sale
|
$
|
|
3,580
|
|
3,405
|
||||||
Core deposits
|
|
|
10,523
|
|
9,473
|
●
|
The Bancorp ensures transparency of risk through defined risk policies, governance, and a reporting structure that includes the Risk and Compliance Committee of the Board of Directors, the Enterprise Risk Management Committee and risk management committees. |
●
|
The Bancorp establishes a risk appetite in alignment with its strategic, financial, and capital plans. The Bancorp’s risk appetite is defined using quantitative metrics and qualitative measures to ensure prudent risk taking, drive balanced decision making and ensure that no excessive risks are taken. |
●
|
Fifth Third’s core values and culture provide a foundation for supporting sound risk management practices by setting expectations for appropriate conduct and accountability across the organization. All employees are expected to conduct themselves in alignment with Fifth Third’s core values and Code of Business Conduct & Ethics, which may be found on www.53.com, while carrying out their responsibilities. Fifth Third’s Corporate Responsibility and Reputation Committee provides oversight of business conduct policies, programs and strategies, and monitors reporting of potential misconduct, trends or themes across the enterprise. Prudent risk management is a responsibility that is expected from all employees across the first, second and third lines of defense and is a foundational element of Fifth Third’s culture. |
●
|
The first line of defense is comprised of front line units that create risk and are accountable for managing risk. These groups are the Bancorp’s primary risk takers and are responsible for implementing effective internal controls and maintaining processes for identifying, assessing, controlling and mitigating the risks associated with their activities consistent with established risk appetite and limits. The first line of defense also includes business units that provide information technology, operations, servicing, processing or other support. |
●
|
The second line of defense, or Independent Risk Management, consists of Risk Management, Compliance, and Credit Review. The second line is responsible for developing frameworks and policies to govern risk-taking activities, overseeing risk-taking of the organization, advising on controlling that risk and providing input on key risk decisions. Risk Management complements the front line’s management of risk taking activities through its monitoring and reporting responsibilities, including adherence to the risk appetite. Additionally, Risk Management is responsible for identifying, measuring, monitoring and controlling aggregate and emerging risks enterprise-wide. |
●
|
The third line of defense is Internal Audit, which provides oversight of the first and second lines of defense, and independent assurance to the Board on the effectiveness of governance, risk management and internal controls. |
●
|
Credit Risk |
●
|
Liquidity Risk |
●
|
Interest Rate Risk |
●
|
Price Risk |
●
|
Legal and Regulatory Compliance Risk |
●
|
Operational Risk |
●
|
Reputational Risk |
●
|
Strategic Risk |
●
|
Act with integrity in all activities. |
●
|
Understand the risks the Bancorp takes and ensure that they are in alignment with its business strategies and risk appetite. |
●
|
Avoid risks that cannot be understood, managed or monitored. |
●
|
Provide transparency of risk to the Bancorp’s management and Board, and escalate risks and issues as necessary. |
●
|
Ensure Fifth Third’s products and services are aligned to its core customer base and are designed, delivered and maintained to provide value and benefit to customers and to Fifth Third. |
●
|
Do not offer products or services that are not appropriate or suitable for customers. |
●
|
Focus on providing operational excellence by providing reliable, accurate and efficient services to meet customer’s needs. |
●
|
Maintain a strong financial position to ensure that the Bancorp meets its objectives through all economic cycles with sufficient capital and liquidity, even under stressed conditions. |
●
|
Protect the Bancorp’s reputation by thoroughly understanding the consequences of business strategies, products and processes. |
●
|
Conduct business in compliance with all applicable laws, rules and regulations and in alignment with internal policies and procedures. |
●
|
Risk-taking activities remain aligned with the Bancorp’s established risk appetite, tolerances and limits; |
●
|
Business decisions are based on a holistic and forward-looking view of risk and returns, including interactions between risks and results of stress tests, leading to an efficient use of capital; |
●
|
Risk management activities are maintained through periods of economic decline as well as periods of economic growth when risk management can be most critical and challenging. |
●
|
The Board of Directors (the “Board”) and executive management define the risk appetite, which is considered in the development of business strategies, and forms the basis for enterprise risk management. The Bancorp’s risk appetite is set annually in alignment with the strategic, capital and financial plans, and is reviewed by the Board on an annual basis. |
●
|
The Risk Management Process provides a consistent and integrated approach for managing risks and ensuring appropriate risk mitigants and controls are in place, and risks and issues are appropriately escalated. Five components are utilized for effective risk management; identifying, assessing, managing, monitoring and independent governance reporting of risk. |
●
|
The Board and executive management have identified eight risk types (defined above) for monitoring the overall risk of the Bancorp, and have also qualitatively established a risk tolerance, which is defined as the maximum amount of risk the Bancorp is willing to take for each of the eight risk types. These risk types are assessed using quantitative measurements and qualitative factors on an ongoing basis and reported to the Board each quarter, or more frequently, if necessary. In addition, each business and operational function (first line of defense) is accountable for proactively identifying and managing risk using its risk management process. Risk tolerances and risk limits are also established, where appropriate, in order to ensure that business and operational functions across the enterprise are able to monitor and manage risks at a more granular level, while ensuring that aggregate risks across the enterprise do not exceed the overall risk appetite. |
●
|
The Bancorp’s risk governance structure includes management committees operating under delegation from, and providing information directly or indirectly to, the Board. The Bancorp Board delegates certain responsibilities to Board
sub-committees,
including the RCC as outlined in each respective Committee Charter, which may be found on www.53.com. The ERMC, which reports to the RCC, comprises senior management from across the Bancorp and reviews and approves risk management frameworks and policies, oversees the management of all risk types to ensure that aggregated risks remain within the Bancorp’s risk appetite and fosters a risk culture to ensure appropriate escalation and transparency of risks.
|
|
|
Unpaid
|
|
|||||||||
|
Carrying
|
Principal
|
|
|||||||||
As of March 31, 2020 ($ in millions)
|
Value
|
Balance
|
Exposure
|
|||||||||
Commercial and industrial loans
|
$
|
1,400
|
|
|
1,411
|
|
|
1,836
|
|
|||
Commercial mortgage loans
|
|
371
|
|
|
402
|
|
|
381
|
|
|||
Commercial construction loans
|
|
45
|
|
|
45
|
|
|
51
|
|
|||
Commercial leases
|
|
52
|
|
|
52
|
|
|
52
|
|
|||
Total potential problem portfolio loans and leases
|
$
|
1,868
|
|
|
1,910
|
|
|
2,320
|
|
TABLE 30: Potential Problem Portfolio Loans and Leases
|
|
|
|
|||||||||
|
|
Unpaid
|
|
|||||||||
|
Carrying
|
Principal
|
|
|||||||||
As of December 31, 2019 ($ in millions)
|
Value
|
Balance
|
Exposure
|
|||||||||
Commercial and industrial loans
|
$ |
1,100
|
1,120
|
1,488
|
||||||||
Commercial mortgage loans
|
342
|
390
|
342
|
|||||||||
Commercial construction loans
|
75
|
82
|
84
|
|||||||||
Commercial leases
|
61
|
61
|
61
|
|||||||||
Total potential problem portfolio loans and leases
|
$ |
1,578
|
1,653
|
1,975
|
●
|
Vehicle and Personal Loan/Line of Credit Deferral Program: payment deferral for up to 90 days and no late fees during the deferral period; |
●
|
Consumer Credit Card Payment Waiver: waiver of the monthly payment requirement for up to 90 days with no late fees; |
●
|
Mortgage: Up to
180-day
payment forbearance with no late fees;
|
●
|
Home Equity Loan/Line of Credit Deferral Program: Payment deferral for up to 180 days and no late fees during the deferral period; |
●
|
Small Business Payment Deferral Program: payment deferral program for up to 90 days, no late fees and a range of loan modification options. The Bancorp is waiving fees on Fifth Third Fast Capital loans for 6 months; |
●
|
Fee Waiver Program: waiving fees for up to 90 days for a range of consumer and small business deposit products and services; |
●
|
The Bancorp suspended initiating any new repossession actions on vehicles for 60 days effective March 18, 2020; |
●
|
The Bancorp suspended all foreclosure activity on homes for 60 days effective March 18, 2020 |
|
Number of Loans
and Leases Placed |
Principal Balance
of Loans and Leases |
Balances of Accounts that were Past Due
Prior to Placement into Programs |
||||||||||||||
April 30, 2020 ($ in millions)
|
into Programs
|
Placed into Programs
|
30-89
Days
|
90 Days or More
|
|||||||||||||
Commercial loans:
|
|
|
|
|
|||||||||||||
Commercial and industrial loans
|
1,826
|
$ |
741
|
2
|
-
|
||||||||||||
Commercial mortgage owner-occupied loans
|
321
|
275
|
1
|
-
|
|||||||||||||
Commercial mortgage nonowner-occupied loans
|
79
|
291
|
-
|
-
|
|||||||||||||
Commercial construction
|
7
|
27
|
-
|
-
|
|||||||||||||
Commercial leases
(a)
|
40
|
23
|
-
|
-
|
|||||||||||||
Residential mortgage loans
(b)
|
3,671
|
817
|
78
|
64
|
|||||||||||||
Consumer loans:
|
|
|
|
|
|||||||||||||
Home equity
|
2,267
|
168
|
7
|
4
|
|||||||||||||
Indirect secured consumer loans
|
33,140
|
681
|
42
|
1
|
|||||||||||||
Credit card
|
16,229
|
81
|
13
|
3
|
|||||||||||||
Other consumer loans
|
5,438
|
60
|
3
|
1
|
|||||||||||||
Total portfolio loans and leases
|
63,018
|
$ |
3,164
|
146
|
73
|
(a) |
Net investment is presented for commercial leases.
|
(b) |
The Bancorp’s portfolio of residential mortgage loans serviced by other parties was $458 million as of March 31, 2020. The data in the table above excludes payment deferral and forbearance activity on this portfolio as the information was not available at the time of filing this Form
10-Q.
|
($ in millions)
|
Balance
|
Exposure
|
Industry Classification
(a)
|
|||||||
Commercial and industrial loans:
|
|
|
|
|||||||
Leisure and recreation
(b)
|
$ |
5,289
|
7,421
|
Accommodation and food / Entertainment and recreation
|
||||||
Retail -
non-essential
|
1,951
|
3,046
|
Retail trade
|
|||||||
Healthcare
|
985
|
1,400
|
Healthcare
|
|||||||
Leisure travel
|
478
|
766
|
Transportation and warehousing
|
|||||||
Total commercial and industrial loans
|
8,703
|
12,633
|
|
|||||||
Commercial real estate loans:
|
|
|
|
|||||||
Leisure and recreation
(b)
|
2,062
|
2,602
|
Accommodation and food / Entertainment and recreation
|
|||||||
Retail -
non-essential
|
1,573
|
1,573
|
Real estate
|
|||||||
Healthcare
|
1,614
|
3,189
|
Healthcare
|
|||||||
Total commercial real estate loans
|
5,249
|
7,364
|
|
|||||||
Total
|
$ |
13,952
|
19,997
|
|
(a)
|
As defined by the North American Industry Classification System.
|
(b)
|
Balances include exposures to casinos, restaurants, sports, fitness, hotels and other.
|
|
March 31, 2020
|
December 31, 2019
|
|||||||||||||||||||||||
($ in millions)
|
Outstanding
|
Exposure
|
Nonaccrual
|
Outstanding
|
Exposure
|
Nonaccrual
|
|||||||||||||||||||
By Industry:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Manufacturing
|
$
|
13,183
|
|
|
21,892
|
|
|
109
|
|
11,996
|
22,079
|
87
|
|||||||||||||
Real estate
|
|
11,923
|
|
|
17,132
|
|
|
69
|
|
11,320
|
16,993
|
9
|
|||||||||||||
Financial services and insurance
|
|
8,313
|
|
|
15,118
|
|
|
25
|
|
7,214
|
15,398
|
-
|
|||||||||||||
Healthcare
|
|
5,394
|
|
|
7,277
|
|
|
35
|
|
4,984
|
7,206
|
38
|
|||||||||||||
Business services
|
|
5,327
|
|
|
8,282
|
|
|
62
|
|
5,170
|
8,579
|
75
|
|||||||||||||
Retail trade
|
|
5,245
|
|
|
8,307
|
|
|
7
|
|
3,948
|
8,255
|
39
|
|||||||||||||
Accommodation and food
|
|
4,690
|
|
|
6,490
|
|
|
20
|
|
3,745
|
6,525
|
21
|
|||||||||||||
Wholesale trade
|
|
4,674
|
|
|
8,015
|
|
|
16
|
|
4,502
|
7,715
|
17
|
|||||||||||||
Communication and information
|
|
3,515
|
|
|
5,795
|
|
|
2
|
|
3,166
|
5,567
|
2
|
|||||||||||||
Mining
|
|
3,200
|
|
|
4,952
|
|
|
36
|
|
3,046
|
4,966
|
37
|
|||||||||||||
Transportation and warehousing
|
|
3,159
|
|
|
4,754
|
|
|
6
|
|
2,880
|
4,996
|
12
|
|||||||||||||
Construction
|
|
2,865
|
|
|
5,061
|
|
|
4
|
|
2,526
|
5,327
|
4
|
|||||||||||||
Entertainment and recreation
|
|
2,635
|
|
|
3,358
|
|
|
40
|
|
1,905
|
3,327
|
40
|
|||||||||||||
Other services
|
|
1,279
|
|
|
1,666
|
|
|
4
|
|
1,224
|
1,662
|
4
|
|||||||||||||
Utilities
|
|
1,177
|
|
|
2,744
|
|
-
|
991
|
2,672
|
-
|
|||||||||||||||
Public administration
|
|
826
|
|
|
1,071
|
|
-
|
782
|
1,107
|
-
|
|||||||||||||||
Agribusiness
|
|
369
|
|
|
534
|
|
|
8
|
|
344
|
554
|
9
|
|||||||||||||
Other
|
|
150
|
|
|
151
|
|
|
2
|
|
151
|
153
|
3
|
|||||||||||||
Individuals
|
|
71
|
|
|
129
|
|
|
-
|
|
64
|
128
|
-
|
|||||||||||||
Total
|
$
|
77,995
|
|
|
122,728
|
|
|
445
|
|
69,958
|
123,209
|
397
|
|||||||||||||
By Size:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Less than $200,000
|
|
1
|
%
|
|
1
|
|
|
4
|
|
1
|
1
|
4
|
|||||||||||||
$200,000 - $1 million
|
|
3
|
|
|
3
|
|
|
6
|
|
3
|
3
|
6
|
|||||||||||||
$1 million - $5 million
|
|
8
|
|
|
7
|
|
|
19
|
|
9
|
7
|
22
|
|||||||||||||
$5 million - $10 million
|
|
6
|
|
|
6
|
|
|
7
|
|
7
|
6
|
11
|
|||||||||||||
$10 million - $25 million
|
|
18
|
|
|
17
|
|
|
31
|
|
20
|
17
|
27
|
|||||||||||||
Greater than $25 million
|
|
64
|
|
|
66
|
|
|
33
|
|
60
|
66
|
30
|
|||||||||||||
Total
|
|
100
|
%
|
|
100
|
|
|
100
|
|
100
|
100
|
100
|
|||||||||||||
By State:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Illinois
|
|
13
|
%
|
|
12
|
|
|
19
|
|
15
|
12
|
18
|
|||||||||||||
Ohio
|
|
10
|
|
|
11
|
|
|
6
|
|
10
|
11
|
6
|
|||||||||||||
Florida
|
|
8
|
|
|
7
|
|
|
4
|
|
7
|
7
|
6
|
|||||||||||||
Michigan
|
|
6
|
|
|
6
|
|
|
6
|
|
6
|
6
|
7
|
|||||||||||||
Indiana
|
|
4
|
|
|
4
|
|
|
1
|
|
4
|
4
|
2
|
|||||||||||||
Georgia
|
|
3
|
|
|
4
|
|
|
9
|
|
3
|
4
|
11
|
|||||||||||||
Tennessee
|
|
3
|
|
|
3
|
|
|
1
|
|
3
|
3
|
1
|
|||||||||||||
North Carolina
|
|
2
|
|
|
2
|
|
|
1
|
|
3
|
3
|
10
|
|||||||||||||
Kentucky
|
|
2
|
|
|
2
|
|
|
9
|
|
2
|
2
|
9
|
|||||||||||||
Other
|
|
49
|
|
|
49
|
|
|
44
|
|
47
|
48
|
30
|
|||||||||||||
Total
|
|
100
|
%
|
|
100
|
|
|
100
|
|
100
|
100
|
100
|
As of March 31, 2020 ($ in millions)
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
||||||||||
|
|
|
|
|
|
March 31, 2020
|
|
|||||||||||||
|
Outstanding
|
Exposure
|
90 Days
Past Due
|
Nonaccrual
|
Net Charge-Offs
|
|||||||||||||||
By State:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Illinois
|
$
|
3,073
|
|
|
3,582
|
|
|
13
|
|
|
-
|
|
|
-
|
|
|||||
Ohio
|
|
1,362
|
|
|
1,783
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|||||
Florida
|
|
987
|
|
|
1,561
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||
Michigan
|
|
764
|
|
|
921
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|||||
North Carolina
|
|
734
|
|
|
1,105
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||
Indiana
|
|
557
|
|
|
1,026
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||
All other states
|
|
3,665
|
|
|
5,606
|
|
|
-
|
|
|
59
|
|
|
2
|
|
|||||
Total
|
$
|
11,142
|
|
|
15,584
|
|
|
13
|
|
|
61
|
|
|
2
|
|
(a)
|
Included in commercial mortgage loans and commercial construction loans in the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A.
|
(a)
|
Included in commercial mortgage loans and commercial construction loans in the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A.
|
|
|
|
March 31, 2020
|
|
|
December 31, 2019
|
|||||||||||||||||||
($ in millions)
|
|
Outstanding
|
Weighted-
Average LTV |
|
|
Outstanding
|
Weighted-
Average LTV |
||||||||||||||||||
LTV
≤
80%
|
$
|
|
|
|
11,978
|
|
|
66.1
|
%
|
$
|
|
12,100
|
66.3
|
% | |||||||||||
LTV > 80%, with mortgage insurance
(a)
|
|
|
|
|
2,318
|
|
|
95.2
|
|
|
|
2,373
|
95.2
|
||||||||||||
LTV > 80%, no mortgage insurance
|
|
|
|
|
2,405
|
|
|
92.7
|
|
|
|
2,251
|
93.1
|
||||||||||||
Total
|
$
|
|
|
|
16,701
|
|
|
74.3
|
%
|
$
|
|
16,724
|
74.3
|
% |
(a)
|
Includes loans with both borrower and lender paid mortgage insurance.
|
|
|
|
|
|
|
|
For the three months ended
|
|
||||||||
As of March 31, 2020 ($ in millions)
|
|
|
|
|
|
|
March 31, 2020
|
|
||||||||
|
|
90 Days
|
|
|
||||||||||||
|
Outstanding
|
Past Due
|
Nonaccrual
|
Net Charge-offs
|
||||||||||||
By State:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ohio
|
$
|
515
|
|
|
4
|
|
|
3
|
|
|
-
|
|
||||
Illinois
|
|
485
|
|
|
2
|
|
|
3
|
|
|
-
|
|
||||
Florida
|
|
326
|
|
|
1
|
|
|
1
|
|
|
-
|
|
||||
Michigan
|
|
224
|
|
|
2
|
|
|
1
|
|
|
-
|
|
||||
Indiana
|
|
185
|
|
|
1
|
|
|
1
|
|
|
-
|
|
||||
North Carolina
|
|
165
|
|
|
-
|
|
|
2
|
|
|
-
|
|
||||
Kentucky
|
|
103
|
|
|
-
|
|
|
-
|
|
|
-
|
|
||||
All other states
|
|
402
|
|
|
4
|
|
|
3
|
|
|
-
|
|
||||
Total
|
$
|
2,405
|
|
|
14
|
|
|
14
|
|
|
-
|
|
TABLE 40: Residential Mortgage Portfolio Loans, LTV Greater than 80%, No Mortgage Insurance
|
||||||||||||||||
|
|
|
|
For the three months ended
|
||||||||||||
As of March 31, 2019 ($ in millions)
|
|
|
|
March 31, 2019
|
||||||||||||
|
|
90 Days
|
|
|
||||||||||||
|
Outstanding
|
Past Due
|
Nonaccrual
|
Net Charge-offs
|
||||||||||||
By State:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ohio
|
$ |
419
|
3
|
2
|
-
|
|||||||||||
Illinois
|
402
|
1
|
1
|
-
|
||||||||||||
Florida
|
280
|
-
|
1
|
-
|
||||||||||||
Michigan
|
226
|
2
|
1
|
-
|
||||||||||||
Indiana
|
142
|
1
|
1
|
-
|
||||||||||||
North Carolina
|
89
|
-
|
-
|
-
|
||||||||||||
Kentucky
|
82
|
-
|
1
|
-
|
||||||||||||
All other states
|
407
|
3
|
3
|
-
|
||||||||||||
Total
|
$ |
2,047
|
10
|
10
|
-
|
●
|
91% reside within the Bancorp’s Midwest footprint of Ohio, Michigan, Kentucky, Indiana and Illinois as of March 31, 2020; |
●
|
38% are in senior lien positions and 62% are in junior lien positions at March 31, 2020; |
●
|
79% of
non-delinquent
borrowers made at least one payment greater than the minimum payment during the three months ended March 31, 2020; and
|
●
|
The portfolio had a weighted average refreshed
|
|
|
|
|
|
|
|
||||||||||||||
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||
($ in millions)
|
|
Outstanding
|
% of Total
|
|
Outstanding
|
% of Total
|
||||||||||||||
Senior Liens:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
FICO
≤
659
|
$
|
|
213
|
|
|
4
|
%
|
$
|
219
|
4
|
% | |||||||||
FICO
660-719
|
|
|
329
|
|
|
5
|
|
|
330
|
5
|
||||||||||
FICO
≥
720
|
|
|
1,703
|
|
|
29
|
|
|
1,732
|
28
|
||||||||||
Total senior liens
|
|
|
2,245
|
|
|
38
|
|
|
2,281
|
37
|
||||||||||
Junior Liens:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
FICO
≤
659
|
|
|
438
|
|
|
7
|
|
|
446
|
7
|
||||||||||
FICO
660-719
|
|
|
714
|
|
|
12
|
|
|
716
|
12
|
||||||||||
FICO
≥
720
|
|
|
2,566
|
|
|
43
|
|
|
2,640
|
44
|
||||||||||
Total junior liens
|
|
|
3,718
|
|
|
62
|
|
|
3,802
|
63
|
||||||||||
Total
|
$
|
|
5,963
|
|
|
100
|
%
|
$
|
6,083
|
100
|
% |
|
|
|
|
|
|
|
||||||||||||||
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||
($ in millions)
|
|
Outstanding
|
Weighted-
Average LTV |
|
Outstanding
|
Weighted-
Average LTV |
||||||||||||||
Senior Liens:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LTV
≤
80%
|
$
|
|
1,927
|
|
|
53.8
|
%
|
$
|
1,964
|
53.8
|
% | |||||||||
LTV > 80%
|
|
|
318
|
|
|
88.7
|
|
|
317
|
88.8
|
||||||||||
Total senior liens
|
|
|
2,245
|
|
|
59.0
|
|
|
2,281
|
58.9
|
||||||||||
Junior Liens:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LTV
≤
80%
|
|
|
2,164
|
|
|
66.7
|
|
|
2,213
|
66.8
|
||||||||||
LTV > 80%
|
|
|
1,554
|
|
|
89.6
|
|
|
1,589
|
89.7
|
||||||||||
Total junior liens
|
|
|
3,718
|
|
|
77.3
|
|
|
3,802
|
77.4
|
||||||||||
Total
|
$
|
|
5,963
|
|
|
70.2
|
%
|
$
|
6,083
|
70.3
|
% |
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
||||||||||
As of March 31, 2020 ($ in millions)
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
||||||||||
|
|
|
90 Days
|
|
|
|||||||||||||||
|
Outstanding
|
Exposure
|
Past Due
|
Nonaccrual
|
Net Charge-offs
|
|||||||||||||||
By State:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ohio
|
$
|
1,147
|
|
|
2,478
|
|
|
-
|
|
|
11
|
|
|
1
|
|
|||||
Michigan
|
|
225
|
|
|
396
|
|
|
-
|
|
|
5
|
|
|
-
|
|
|||||
Illinois
|
|
162
|
|
|
272
|
|
|
-
|
|
|
5
|
|
|
-
|
|
|||||
Indiana
|
|
100
|
|
|
188
|
|
|
-
|
|
|
4
|
|
|
-
|
|
|||||
Kentucky
|
|
91
|
|
|
185
|
|
|
-
|
|
|
2
|
|
|
-
|
|
|||||
Florida
|
|
48
|
|
|
76
|
|
|
-
|
|
|
2
|
|
|
-
|
|
|||||
All other states
|
|
99
|
|
|
156
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|||||
Total
|
$
|
1,872
|
|
|
3,751
|
|
|
-
|
|
|
32
|
|
|
1
|
|
TABLE 44: Home Equity Portfolio Loans Outstanding with an LTV Greater than 80%
|
|
|
||||||||||||||||||
|
|
|
|
|
For the three months ended
|
|||||||||||||||
As of March 31, 2019 ($ in millions)
|
|
|
|
|
March 31, 2019
|
|||||||||||||||
|
|
|
90 Days
|
|
|
|||||||||||||||
|
Outstanding
|
Exposure
|
Past Due
|
Nonaccrual
|
Net Charge-offs
|
|||||||||||||||
By State:
|
|
|
|
|
|
|||||||||||||||
Ohio
|
$ |
1,090
|
2,222
|
-
|
9
|
1
|
||||||||||||||
Michigan
|
284
|
476
|
-
|
5
|
-
|
|||||||||||||||
Illinois
|
208
|
335
|
-
|
4
|
1
|
|||||||||||||||
Indiana
|
126
|
223
|
-
|
2
|
-
|
|||||||||||||||
Kentucky
|
111
|
217
|
-
|
2
|
-
|
|||||||||||||||
Florida
|
57
|
85
|
-
|
2
|
-
|
|||||||||||||||
All other states
|
119
|
183
|
-
|
3
|
-
|
|||||||||||||||
Total
|
$ |
1,995
|
3,741
|
-
|
27
|
2
|
|
|
|
|
|
|
||||||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||
($ in millions)
|
Outstanding
|
% of Total
|
|
Outstanding
|
% of Total
|
||||||||||||||||
FICO
≤
659
|
$
|
107
|
|
|
5
|
%
|
|
$ |
107
|
4
|
% | ||||||||||
FICO
660-719
|
|
830
|
|
|
34
|
|
|
834
|
33
|
||||||||||||
FICO
≥
720
|
|
1,480
|
|
|
61
|
|
|
1,591
|
63
|
||||||||||||
Total
|
$
|
2,417
|
|
|
100
|
%
|
|
$ |
2,532
|
100
|
% |
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||
($ in millions)
|
Outstanding
|
% of Total
|
|
Outstanding
|
% of Total
|
||||||||||||||||
Unsecured
|
$ |
792
|
|
27
|
%
|
|
|
|
$ |
783
|
29
|
% | |||||||||
Other secured
|
|
579
|
|
|
20
|
|
|
530
|
19
|
||||||||||||
Point-of-sale
|
|
1,540
|
|
|
53
|
|
|
1,410
|
52
|
||||||||||||
Total
|
$
|
2,911
|
|
|
100
|
%
|
|
$ |
2,723
|
100
|
% |
TABLE 50: Summary of Nonperforming Assets and Delinquent Loans
|
||||||||
As of ($ in millions)
|
March 31, 2020
|
|
December 31, 2019
|
|||||
Nonaccrual portfolio loans and leases:
|
|
|
|
|
||||
Commercial and industrial loans
|
$
|
100
|
|
118
|
||||
Commercial mortgage loans
|
|
83
|
|
21
|
||||
Commercial construction loans
|
|
1
|
|
1
|
||||
Commercial leases
|
|
18
|
|
26
|
||||
Residential mortgage loans
(a)
|
|
12
|
|
12
|
||||
Home equity
|
|
54
|
|
55
|
||||
Indirect secured consumer loans
|
|
1
|
|
1
|
||||
Other consumer loans
|
|
2
|
|
2
|
||||
Nonaccrual portfolio restructured loans and leases:
|
|
|
|
|
||||
Commercial and industrial loans
|
|
233
|
|
220
|
||||
Commercial mortgage loans
|
|
9
|
|
9
|
||||
Commercial leases
|
|
1
|
|
2
|
||||
Residential mortgage loans
(a)
|
|
61
|
|
79
|
||||
Home equity
|
|
36
|
|
39
|
||||
Indirect secured consumer loans
|
|
7
|
|
6
|
||||
Credit card
|
|
29
|
|
27
|
||||
Total nonaccrual portfolio loans and leases
(b)
|
|
647
|
|
618
|
||||
OREO and other repossessed property
|
|
62
|
|
62
|
||||
Total nonperforming portfolio loans and leases and OREO
|
|
709
|
|
680
|
||||
Nonaccrual restructured loans held for sale
|
|
1
|
|
7
|
||||
Total nonperforming assets
|
$
|
710
|
|
687
|
||||
Total portfolio loans and leases 90 days past due and still accruing
|
|
|
|
|
||||
Commercial and industrial loans
|
$
|
13
|
|
11
|
||||
Commercial mortgage loans
|
|
20
|
|
15
|
||||
Commercial leases
|
|
10
|
|
-
|
||||
Residential mortgage loans
(a)
|
|
54
|
|
50
|
||||
Home equity
|
|
-
|
|
1
|
||||
Indirect secured consumer loans
|
|
11
|
|
10
|
||||
Credit card
|
|
42
|
|
42
|
||||
Other consumer loans
|
|
1
|
|
1
|
||||
Total portfolio loans and leases 90 days past due and still accruing
|
$
|
151
|
|
130
|
||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO
|
|
0.60
|
%
|
0.62
|
||||
ALLL as a percent of nonperforming portfolio assets
|
|
331
|
|
177
|
(a)
|
Information for all periods presented excludes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. These advances were $270 as of March 31, 2020 and $261 as of December 31, 2019. The Bancorp recognized losses of $1 and an immaterial amount for the three months ended March 31, 2020 and 2019 due to claim denials and curtailments associated with these insured or guaranteed loans.
|
(b)
|
Includes $21 and $16 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2020 and December 31, 2019, respectively, of which $12 and $11 were restructured nonaccrual government insured commercial loans at March 31, 2020 and December 31, 2019, respectively.
|
TABLE 52: Rollforward of Portfolio Nonaccrual Loans and Leases
|
||||||||||||||||
|
|
|
|
Residential
|
|
|
||||||||||
For the three months ended March 31, 2019 ($ in millions)
|
Commercial
|
Mortgage
|
Consumer
|
Total
|
||||||||||||
Balance, beginning of period
|
$ 228
|
22
|
98
|
348
|
||||||||||||
Transfers to nonaccrual status
|
120
|
14
|
46
|
180
|
||||||||||||
Acquired nonaccrual loans
|
8
|
-
|
-
|
8
|
||||||||||||
Transfers to accrual status
|
-
|
(6
|
) |
(14
|
) |
(20
|
) | |||||||||
Loan paydowns/payoffs
|
(21
|
) |
(2
|
) |
(7
|
) |
(30
|
) | ||||||||
Transfers to OREO
|
(4
|
) |
(2
|
) |
(1
|
) |
(7
|
) | ||||||||
Charge-offs
|
(20
|
) |
(1
|
) |
(10
|
) |
(31
|
) | ||||||||
Draws/other extensions of credit
|
2
|
-
|
-
|
2
|
||||||||||||
Balance, end of period
|
$ 313
|
25
|
112
|
450
|
|
|
|
|
|
|
||||||||||||||||
|
Accruing
|
|
|
||||||||||||||||||
|
|
30-89
Days
|
90 Days or
|
|
|
||||||||||||||||
As of March 31, 2020 ($ in millions)
|
Current
|
Past Due
|
More Past Due
|
Nonaccruing
|
Total
|
||||||||||||||||
Commercial loans
(a)
|
$
|
56
|
|
|
1
|
|
|
6
|
|
|
243
|
|
|
306
|
|
||||||
Residential mortgage loans
(b)
|
|
579
|
|
|
36
|
|
|
137
|
|
|
61
|
|
|
813
|
|
||||||
Home equity
|
|
194
|
|
|
7
|
|
|
-
|
|
|
36
|
|
|
237
|
|
||||||
Indirect secured consumer loans
|
|
5
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
12
|
|
||||||
Credit card
|
|
15
|
|
|
3
|
|
|
-
|
|
|
29
|
|
|
47
|
|
||||||
Total
|
$
|
849
|
|
|
47
|
|
|
143
|
|
|
376
|
|
|
1,415
|
|
(a)
|
Excludes restructured nonaccrual loans held for sale.
|
(b)
|
Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of March 31, 2020, these advances represented $348 of current loans, $30 of
30-89
days past due loans and $112 of 90 days or more past due loans.
|
(a)
|
Excludes restructured nonaccrual loans held for sale.
|
(b)
|
Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2019, these advances represented $321 of current loans, $40 of
30-89
days past due loans and $109 of 90 days or more past due loans.
|
TABLE 55: Summary of Credit Loss Experience
|
|||||||||
|
For the three months ended
|
||||||||
|
March 31,
|
||||||||
|
|
|
|||||||
($ in millions)
|
2020
|
|
2019
|
||||||
Losses
charged-off:
|
|
|
|
|
|||||
Commercial and industrial loans
|
$
|
(54
|
)
|
(20
|
) | ||||
Commercial mortgage loans
|
|
(2
|
)
|
-
|
|||||
Commercial leases
|
|
(5
|
)
|
-
|
|||||
Residential mortgage loans
|
|
(2
|
)
|
(2
|
) | ||||
Home equity
|
|
(5
|
)
|
(6
|
) | ||||
Indirect secured consumer loans
|
|
(21
|
)
|
(20
|
) | ||||
Credit card
|
|
(42
|
)
|
(38
|
) | ||||
Other consumer loans
(a)
|
|
(28
|
)
|
(22
|
) | ||||
Total losses
charged-off
|
$
|
(159
|
)
|
(108
|
) | ||||
Recoveries of losses previously
charged-off:
|
|
|
|
|
|||||
Commercial and industrial loans
|
$
|
4
|
|
2
|
|||||
Commercial mortgage loans
|
|
-
|
|
1
|
|||||
Commercial leases
|
|
-
|
|
-
|
|||||
Residential mortgage loans
|
|
1
|
|
1
|
|||||
Home equity
|
|
2
|
|
3
|
|||||
Indirect secured consumer loans
|
|
9
|
|
7
|
|||||
Credit card
|
|
6
|
|
5
|
|||||
Other consumer loans
(a)
|
|
15
|
|
12
|
|||||
Total recoveries of losses previously
charged-off
|
$
|
37
|
|
31
|
|||||
Net losses
charged-off:
|
|
|
|
|
|||||
Commercial and industrial loans
|
$
|
(50
|
)
|
(18
|
) | ||||
Commercial mortgage loans
|
|
(2
|
)
|
1
|
|||||
Commercial leases
|
|
(5
|
)
|
-
|
|||||
Residential mortgage loans
|
|
(1
|
)
|
(1
|
) | ||||
Home equity
|
|
(3
|
)
|
(3
|
) | ||||
Indirect secured consumer loans
|
|
(12
|
)
|
(13
|
) | ||||
Credit card
|
|
(36
|
)
|
(33
|
) | ||||
Other consumer loans
|
|
(13
|
)
|
(10
|
) | ||||
Total net losses
charged-off
|
$
|
(122
|
)
|
(77
|
) | ||||
Net losses
charged-off
as a percent of average portfolio loans and leases:
|
|
|
|
|
|||||
Commercial and industrial loans
|
|
0.39
|
%
|
0.16
|
|||||
Commercial mortgage loans
|
|
0.06
|
|
(0.05
|
) | ||||
Commercial leases
|
|
0.60
|
|
-
|
|||||
Total commercial loans and leases
|
|
0.32
|
%
|
0.11
|
|||||
Residential mortgage loans
|
|
0.02
|
|
0.02
|
|||||
Home equity
|
|
0.17
|
|
0.20
|
|||||
Indirect secured consumer loans
|
|
0.43
|
|
0.57
|
|||||
Credit card
|
|
5.87
|
|
5.60
|
|||||
Other consumer loans
|
|
1.87
|
|
1.76
|
|||||
Total consumer loans
|
|
0.66
|
%
|
0.68
|
|||||
Total net losses
charged-off
as a percent of average portfolio loans and leases
|
|
0.44
|
%
|
0.32
|
(a)
|
For the three months ended March 31, 2020 and 2019, the Bancorp recorded $13 and $11, respectively, in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.
|
TABLE 56: Changes in Allowance for Credit Losses
|
|
|
|
||||||||
|
|
For the three months ended
|
|||||||||
|
|
March 31,
|
|||||||||
($ in millions)
|
|
2020
(b)
|
|
2019
(c)
|
|||||||
ALLL:
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
|
1,202
|
|
1,103
|
||||||
Impact of adoption of ASU
2016-13
|
|
|
643
|
|
-
|
||||||
Losses
charged-off
(a)
|
|
|
(159
|
)
|
(108
|
) | |||||
Recoveries of losses previously
charged-off
(a)
|
|
|
37
|
|
31
|
||||||
Provision for loan and lease losses
|
|
|
625
|
|
89
|
||||||
Balance, end of period
|
$
|
|
2,348
|
|
1,115
|
||||||
Reserve for unfunded commitments:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
$
|
|
144
|
|
131
|
||||||
Impact of adoption of ASU
2016-13
|
|
|
10
|
|
-
|
||||||
Reserve for acquired unfunded commitments
|
|
|
-
|
|
1
|
||||||
Provision for the reserve for unfunded commitments
|
|
|
15
|
|
1
|
||||||
Balance, end of period
|
$
|
|
169
|
|
133
|
(a)
|
For the three months ended March 31, 2020 and 2019, the Bancorp recorded $13 and $11, respectively, in both losses
charged-off
and recoveries of losses previously
charged-off
related to customer defaults on
point-of-sale
consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.
|
(b)
|
The ALLL and Reserve for unfunded commitments were calculated under the expected loss methodology upon the adoption of ASU
2016-13
on January 1, 2020.
|
(c)
|
The ALLL and Reserve for unfunded commitments were calculated under the incurred loss methodology for the three months ended March 31, 2019.
|
TABLE 57: Attribution of Allowance for Loan and Lease Losses to Portfolio Loans and Leases
|
|||||||||||
As of ($ in millions)
|
|
March 31, 2020
|
|
December 31, 2019
|
|||||||
Attributed ALLL:
|
|
|
|
||||||||
Commercial and industrial loans
|
$
|
|
977
|
|
561
|
||||||
Commercial mortgage loans
|
|
|
237
|
|
87
|
||||||
Commercial construction loans
|
|
|
53
|
|
45
|
||||||
Commercial leases
|
|
|
46
|
|
17
|
||||||
Residential mortgage loans
|
|
|
260
|
|
73
|
||||||
Home equity
|
|
|
218
|
|
37
|
||||||
Indirect secured consumer loans
|
|
|
129
|
|
53
|
||||||
Credit card
|
|
|
306
|
|
168
|
||||||
Other consumer loans
|
|
|
122
|
|
40
|
||||||
Unallocated
|
|
|
-
|
|
121
|
||||||
Total ALLL
|
$
|
|
2,348
|
|
1,202
|
||||||
Portfolio loans and leases:
|
|
|
|
|
|
||||||
Commercial and industrial loans
|
$
|
|
58,250
|
|
50,542
|
||||||
Commercial mortgage loans
|
|
|
11,160
|
|
10,963
|
||||||
Commercial construction loans
|
|
|
5,462
|
|
5,090
|
||||||
Commercial leases
|
|
|
3,123
|
|
3,363
|
||||||
Residential mortgage loans
|
|
|
16,701
|
|
16,724
|
||||||
Home equity
|
|
|
5,963
|
|
6,083
|
||||||
Indirect secured consumer loans
|
|
|
12,050
|
|
11,538
|
||||||
Credit card
|
|
|
2,417
|
|
2,532
|
||||||
Other consumer loans
|
|
|
2,911
|
|
2,723
|
||||||
Total portfolio loans and leases
|
$
|
|
118,037
|
|
109,558
|
||||||
Attributed ALLL as a percent of respective portfolio loans and leases:
|
|
|
|
|
|
||||||
Commercial and industrial loans
|
|
|
1.68
|
%
|
1.11
|
||||||
Commercial mortgage loans
|
|
|
2.12
|
|
0.79
|
||||||
Commercial construction loans
|
|
|
0.97
|
|
0.88
|
||||||
Commercial leases
|
|
|
1.47
|
|
0.51
|
||||||
Residential mortgage loans
|
|
|
1.56
|
|
0.44
|
||||||
Home equity
|
|
|
3.66
|
|
0.61
|
||||||
Indirect secured consumer loans
|
|
|
1.07
|
|
0.46
|
||||||
Credit card
|
|
|
12.66
|
|
6.64
|
||||||
Other consumer loans
|
|
|
4.19
|
|
1.47
|
||||||
Unallocated (as a percent of total portfolio loans and leases)
|
|
|
-
|
|
0.11
|
||||||
Total ALLL as a percent of total portfolio loans and leases
|
|
|
1.99
|
%
|
1.10
|
●
|
Assets and liabilities mature or reprice at different times; |
●
|
Short-term and long-term market interest rates change by different amounts; or |
●
|
The expected maturities of various assets or liabilities shorten or lengthen as interest rates change. |
TABLE 59: Estimated NII Sensitivity Profile at March 31, 2020 with a $1 Billion Change in Demand Deposit Assumption
|
|||||||||||||||||||||
|
% Change in NII (FTE)
|
||||||||||||||||||||
|
Immediate $1 Billion Balance
Decrease |
|
Immediate $1 Billion Balance
Increase |
||||||||||||||||||
|
12
|
13-24
|
|
12
|
13-24
|
||||||||||||||||
Change in Interest Rates (bps)
|
Months
|
Months
|
|
Months
|
Months
|
||||||||||||||||
+200 Ramp over 12 months
|
0.05
|
% |
5.17
|
|
0.45
|
6.02
|
|||||||||||||||
+100 Ramp over 12 months
|
0.03
|
2.61
|
|
0.24
|
3.04
|
TABLE 60: Estimated NII Sensitivity Profile at March 31, 2020 with Deposit Beta Assumptions Changes
|
|
|
|
|
|
|
|||||||||||||||
|
% Change in NII (FTE)
|
||||||||||||||||||||
|
Betas 25% Higher
|
|
Betas 25% Lower
|
||||||||||||||||||
|
12
|
13-24
|
|
12
|
13-24
|
||||||||||||||||
Change in Interest Rates (bps)
|
Months
|
Months
|
|
Months
|
Months
|
||||||||||||||||
+200 Ramp over 12 months
|
(3.10
|
)% |
(1.64
|
) |
|
3.60
|
11.67
|
||||||||||||||
+100 Ramp over 12 months
|
(1.54
|
) |
(0.78
|
) |
|
1.80
|
5.82
|
(a)
|
Forward starting swaps became effective January 2, 2020.
|
(a)
|
Expected cash flows from portfolio loans and leases do not reflect changes in timing due to hardship programs offered in response to the
COVID-19
pandemic.
|
(a)
|
Expected cash flows from portfolio loans and leases do not reflect changes in timing due to hardship programs offered in response to the
COVID-19
pandemic.
|
TABLE 66: Agency Ratings
|
|
|
|
|
||||||||||||
As of May 8, 2020
|
Moody’s
|
Standard and Poor’s
|
Fitch
|
DBRS
|
||||||||||||
Fifth Third Bancorp:
|
|
|
|
|
||||||||||||
Short-term borrowings
|
No rating
|
A-2
|
F1
|
R-1L
|
||||||||||||
Senior debt
|
Baa1
|
BBB+
|
A-
|
A
|
||||||||||||
Subordinated debt
|
Baa1
|
BBB
|
BBB+
|
AL
|
||||||||||||
Fifth Third Bank, National Association:
|
|
|
|
|
||||||||||||
Short-term borrowings
|
P-2
|
A-2
|
F1
|
R-1M
|
||||||||||||
Short-term deposit
|
P-1
|
No rating
|
F1
|
No rating
|
||||||||||||
Long-term deposit
|
Aa3
|
No rating
|
A
|
AH
|
||||||||||||
Senior debt
|
A3
|
A-
|
A-
|
AH
|
||||||||||||
Subordinated debt
|
Baa1
|
BBB+
|
BBB+
|
A
|
||||||||||||
Rating Agency Outlook for Fifth Third Bancorp and
|
|
|
|
|
||||||||||||
Fifth Third Bank, National Association:
|
Stable
|
Stable
|
Negative
|
Stable
|
TABLE 67: Prescribed Capital Ratios
|
|||||||||
|
Minimum
|
Well-Capitalized
|
|||||||
CET1 capital:
|
|
|
|||||||
Fifth Third Bancorp
|
4.50
|
% |
N/A
|
||||||
Fifth Third Bank, National Association
|
4.50
|
6.50
|
|||||||
Tier I risk-based capital:
|
|
|
|||||||
Fifth Third Bancorp
|
6.00
|
6.00
|
|||||||
Fifth Third Bank, National Association
|
6.00
|
8.00
|
|||||||
Total risk-based capital:
|
|
|
|||||||
Fifth Third Bancorp
|
8.00
|
10.00
|
|||||||
Fifth Third Bank, National Association
|
8.00
|
10.00
|
|||||||
Tier I leverage:
|
|
|
|||||||
Fifth Third Bancorp
|
4.00
|
N/A
|
|||||||
Fifth Third Bank, National Association
|
4.00
|
5.00
|
TABLE 68: Capital Ratios
|
|||||||||
($ in millions)
|
March 31, 2020
|
|
December 31, 2019
|
||||||
Quarterly average total Bancorp shareholders’ equity as a percent of average assets
|
|
12.63
|
%
|
12.58
|
|||||
Tangible equity as a percent of tangible assets
(a)(c)
|
|
8.41
|
|
9.52
|
|||||
Tangible common equity as a percent of tangible assets
(a)(c)
|
|
7.41
|
|
8.44
|
|||||
Regulatory capital:
|
|
|
|
|
|
|
|||
CET1 capital
(b)
|
$
|
13,840
|
|
13,847
|
|||||
Tier I capital
(b)
|
|
15,609
|
|
15,616
|
|||||
Total regulatory capital
(b)
|
|
20,081
|
|
19,661
|
|||||
Risk-weighted assets
|
|
147,756
|
|
142,065
|
|||||
Regulatory capital ratios:
(b)
|
|
|
|
|
|||||
CET1 capital
|
|
9.37
|
%
|
9.75
|
|||||
Tier I risk-based capital
|
|
10.56
|
|
10.99
|
|||||
Total risk-based capital
|
|
13.59
|
|
13.84
|
|||||
Tier I leverage
|
|
9.37
|
|
9.54
|
(a)
|
These are
non-GAAP
measures. For further information, refer to the
Non-GAAP
Financial Measures section of MD&A.
|
(b)
|
Regulatory capital ratios for the three months ended March 31, 2020 are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital.
|
(c)
|
Excludes AOCI.
|
TABLE 69: Share Repurchases
|
|
|
|
|
|
|
|
|
||||||||
Period
|
Total Number
of Shares
Purchased
(a)
|
Average Price
Paid Per Share |
Total Number of Shares
Purchased as Part of
Publicly Announced Plans
or Programs
|
Maximum Number of
Shares that May Yet be
Purchased Under the Plans
or Programs
|
||||||||||||
January 1, 2020 - January 31, 2020
|
333,737
|
$ |
29.10
|
-
|
76,437,348
|
|||||||||||
February 1, 2020 - February 29, 2020
|
818,868
|
28.98
|
-
|
76,437,348
|
||||||||||||
March 1, 2020 - March 31, 2020
|
16,634
|
20.98
|
-
|
76,437,348
|
||||||||||||
Total
|
1,169,239
|
$ |
28.90
|
-
|
76,437,348
|
(a)
|
Includes 1,169,239 shares repurchased during the first quarter of 2020 in connection with various employee compensation plans. These purchases do not count against the maximum number of shares that may yet be purchased under the Board of Directors’ authorization.
|
|
|
As of
|
||||||||
($ in millions, except share data)
|
|
March 31,
2020 |
|
December 31,
2019 |
||||||
Assets
|
|
|
|
|
|
|
|
|||
Cash and due from banks
|
$
|
|
3,282
|
|
3,278
|
|||||
Other short-term investments
(a)
|
|
|
6,319
|
|
1,950
|
|||||
Available-for-sale
debt and other securities
(b)
|
|
|
38,645
|
|
36,028
|
|||||
Held-to-maturity
securities
(c)
|
|
|
17
|
|
17
|
|||||
Trading debt securities
|
|
|
433
|
|
297
|
|||||
Equity securities
|
|
|
459
|
|
564
|
|||||
Loans and leases held for sale
(d)
|
|
|
1,630
|
|
1,400
|
|||||
Portfolio loans and leases
(a)(e)
|
|
|
118,037
|
|
109,558
|
|||||
Allowance for loan and lease losses
(a)
|
|
|
(2,348
|
)
|
(1,202
|
) | ||||
Portfolio loans and leases, net
|
|
|
115,689
|
|
108,356
|
|||||
Bank premises and equipment
(f)
|
|
|
2,009
|
|
1,995
|
|||||
Operating lease equipment
|
|
|
819
|
|
848
|
|||||
Goodwill
|
|
|
4,261
|
|
4,252
|
|||||
Intangible assets
|
|
|
184
|
|
201
|
|||||
Servicing rights
|
|
|
685
|
|
993
|
|||||
Other assets
(a)
|
|
|
10,959
|
|
9,190
|
|||||
Total Assets
|
$
|
|
185,391
|
|
169,369
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|||
Deposits:
|
|
|
|
|
|
|||||
Noninterest-bearing deposits
|
$
|
|
39,533
|
|
35,968
|
|||||
Interest-bearing deposits
|
|
|
95,528
|
|
91,094
|
|||||
Total deposits
|
|
|
135,061
|
|
127,062
|
|||||
Federal funds purchased
|
|
|
1,625
|
|
260
|
|||||
Other short-term borrowings
|
|
|
4,542
|
|
1,011
|
|||||
Accrued taxes, interest and expenses
|
|
|
2,432
|
|
2,441
|
|||||
Other liabilities
(a)
|
|
|
3,576
|
|
2,422
|
|||||
Long-term debt
(a)
|
|
|
16,282
|
|
14,970
|
|||||
Total Liabilities
|
$
|
|
163,518
|
|
148,166
|
|||||
Equity
|
|
|
|
|
|
|
|
|||
Common stock
(g)
|
$
|
|
2,051
|
|
2,051
|
|||||
Preferred stock
(h)
|
|
|
1,770
|
|
1,770
|
|||||
Capital surplus
|
|
|
3,597
|
|
3,599
|
|||||
Retained earnings
|
|
|
17,677
|
|
18,315
|
|||||
Accumulated other comprehensive income
|
|
|
2,477
|
|
1,192
|
|||||
Treasury stock
(g)
|
|
|
(5,699
|
)
|
(5,724
|
) | ||||
Total Equity
|
$
|
|
21,873
|
|
21,203
|
|||||
Total Liabilities and Equity
|
$
|
|
185,391
|
|
169,369
|
(a)
|
Includes $69 and $74 of other short-term investments, $1,185 and $1,354 of portfolio loans and leases, $(14) and $(7) of ALLL, $6 and $8 of other assets, $3 and $2 of other liabilities, and $1,083 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2020 and December 31, 2019, respectively. For further information refer to Note 13.
|
(b)
|
Amortized cost of $36,428 and $34,966 at March 31, 2020 and December 31, 2019, respectively.
|
(c)
|
Fair value of $17 and $17 at March 31, 2020 and December 31, 2019, respectively.
|
(d)
|
Includes $1,565 and $1,264 of residential mortgage loans held for sale measured at fair value and $8 and $0 of commercial loans held for sale measured at fair value at March 31, 2020 and December 31, 2019, respectively.
|
(e)
|
Includes $185 and $183 of residential mortgage loans measured at fair value at March 31, 2020 and December 31, 2019, respectively.
|
(f)
|
Includes $36 and $27 of bank premises and equipment held for sale at March 31, 2020 and December 31, 2019, respectively.
|
(g)
|
Common shares: Stated value $2.22 per share; authorized 2,000,000,000; outstanding at March 31, 2020 – 711,306,181 (excludes 212,586,400 treasury shares), December 31, 2019 – 708,915,629 (excludes 214,976,952 treasury shares).
|
(h)
|
500,000 shares of no par value preferred stock were authorized at both March 31, 2020 and December 31, 2019. There were 436,000 unissued shares of undesignated no par value preferred stock at both March 31, 2020 and December 31, 2019. Each issued share of no par value preferred stock has a liquidation preference of $25,000. 500,000 shares of no par value Class B preferred stock were authorized at both March 31, 2020 and December 31, 2019. There were 300,000 unissued shares of undesignated no par value Class B preferred stock at both Mar
ch 31, 2020 and December 31, 2019. Each issued share of no par value Class B preferred stock has a liquidation preference of $1,000.
|
|
|
For the three months ended
March 31, |
||||||||||
($ in millions, except share data)
|
|
2020
|
|
2019
|
||||||||
Interest Income
|
|
|
|
|
|
|
|
|
|
|||
Interest and fees on loans and leases
|
$
|
|
|
|
1,235
|
|
1,143
|
|||||
Interest on securities
|
|
|
|
|
283
|
|
281
|
|||||
Interest on other short-term investments
|
|
|
|
|
7
|
|
9
|
|||||
Total interest income
|
|
|
|
|
1,525
|
|
1,433
|
|||||
Interest Expense
|
|
|
|
|
|
|
|
|||||
Interest on deposits
|
|
|
|
|
166
|
|
205
|
|||||
Interest on federal funds purchased
|
|
|
|
|
2
|
|
12
|
|||||
Interest on other short-term borrowings
|
|
|
|
|
6
|
|
6
|
|||||
Interest on long-term debt
|
|
|
|
|
122
|
|
128
|
|||||
Total interest expense
|
|
|
|
|
296
|
|
351
|
|||||
Net Interest Income
|
|
|
|
|
1,229
|
|
1,082
|
|||||
Provision for credit losses
|
|
|
|
|
640
|
|
90
|
|||||
Net Interest Income After Provision for Credit Losses
|
|
|
|
|
589
|
|
992
|
|||||
Noninterest Income
(a)
|
|
|
|
|
|
|
|
|||||
Service charges on deposits
|
|
|
|
|
148
|
|
131
|
|||||
Wealth and asset management revenue
|
|
|
|
|
134
|
|
112
|
|||||
Commercial banking revenue
|
|
|
|
|
124
|
|
103
|
|||||
Mortgage banking net revenue
|
|
|
|
|
120
|
|
56
|
|||||
Card and processing revenue
|
|
|
|
|
86
|
|
79
|
|||||
Leasing business revenue
|
|
|
|
|
73
|
|
32
|
|||||
Other noninterest income
|
|
|
|
|
7
|
|
569
|
|||||
Securities (losses) gains, net
|
|
|
|
|
(24
|
)
|
16
|
|||||
Securities gains, net -
non-qualifying
hedges on mortgage servicing rights
|
|
|
|
|
3
|
|
3
|
|||||
Total noninterest income
|
|
|
|
|
671
|
|
1,101
|
|||||
Noninterest Expense
(a)
|
|
|
|
|
|
|
|
|||||
Compensation and benefits
|
|
|
|
|
647
|
|
610
|
|||||
Technology and communications
|
|
|
|
|
93
|
|
83
|
|||||
Net occupancy expense
|
|
|
|
|
82
|
|
75
|
|||||
Leasing business expense
|
|
|
|
|
35
|
|
19
|
|||||
Equipment expense
|
|
|
|
|
32
|
|
30
|
|||||
Marketing expense
|
|
|
|
|
31
|
|
36
|
|||||
Card and processing expense
|
|
|
|
|
31
|
|
31
|
|||||
Other noninterest expense
|
|
|
|
|
249
|
|
213
|
|||||
Total noninterest expense
|
|
|
|
|
1,200
|
|
1,097
|
|||||
Income Before Income Taxes
|
|
|
|
|
60
|
|
996
|
|||||
Applicable income tax expense
|
|
|
|
|
14
|
|
221
|
|||||
Net Income
|
|
|
|
|
46
|
|
775
|
|||||
Dividends on preferred stock
|
|
|
|
|
17
|
|
15
|
|||||
Net Income Available to Common Shareholders
|
$
|
|
|
|
29
|
|
760
|
|||||
Earnings per share - basic
|
$
|
|
|
|
0.04
|
|
1.14
|
|||||
Earnings per share - diluted
|
$
|
|
|
|
0.04
|
|
1.12
|
|||||
Average common shares outstanding - basic
|
|
|
|
|
713,555,693
|
|
661,057,120
|
|||||
Average common shares outstanding - diluted
|
|
|
|
|
720,362,697
|
|
670,685,025
|
(a)
|
During the first quarter of 2020, certain noninterest income and noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest income and noninterest expense did not change as a result of these reclassifications.
|
|
|
For the three months ended
March 31, |
||||||||||
($ in millions)
|
|
2020
|
|
2019
|
||||||||
Net Income
|
$
|
|
|
|
46
|
|
775
|
|||||
Other Comprehensive Income, Net of Tax:
|
|
|
|
|
|
|
|
|||||
Unrealized gains on
available-for-sale
debt securities:
|
|
|
|
|
|
|
|
|||||
Unrealized holding gains arising during period
|
|
|
|
|
882
|
|
430
|
|||||
Reclassification adjustment for net losses included in net income
|
|
|
|
|
-
|
|
1
|
|||||
Unrealized gains on cash flow hedge derivatives:
|
|
|
|
|
|
|
|
|||||
Unrealized holding gains arising during period
|
|
|
|
|
427
|
|
87
|
|||||
Reclassification adjustment for net (gains) losses included in net income
|
|
|
|
|
(25
|
)
|
2
|
|||||
Defined benefit pension plans, net:
|
|
|
|
|
|
|
|
|||||
Reclassification of amounts to net periodic benefit costs
|
|
|
|
|
1
|
|
1
|
|||||
Other comprehensive income, net of tax
|
|
|
|
|
1,285
|
|
521
|
|||||
Comprehensive Income
|
$
|
|
|
|
1,331
|
|
1,296
|
|
|
Bancorp Shareholders’ Equity
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
Accumulated
|
|
Total
|
|
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
Other
|
|
Bancorp
|
Non-
|
|
||||||||||||||||||||||||||||||
|
|
Common
|
Preferred
|
Capital
|
Retained
|
Comprehensive
|
Treasury
|
Shareholders’
|
Controlling
|
Total
|
||||||||||||||||||||||||||||||
($ in millions, except per share data)
|
|
Stock
|
Stock
|
Surplus
|
Earnings
|
Income (Loss)
|
Stock
|
Equity
|
Interests
|
Equity
|
||||||||||||||||||||||||||||||
Balance at December 31, 2018
|
$ |
|
2,051
|
1,331
|
2,873
|
16,578
|
(112
|
) |
(6,471
|
) |
16,250
|
-
|
16,250
|
|||||||||||||||||||||||||||
Impact of cumulative effect of change in accounting principle
|
|
|
|
|
10
|
|
|
10
|
|
10
|
||||||||||||||||||||||||||||||
Balance at January 1, 2019
|
$ |
|
2,051
|
1,331
|
2,873
|
16,588
|
(112
|
) |
(6,471
|
) |
16,260
|
-
|
16,260
|
|||||||||||||||||||||||||||
Net income
|
|
|
|
|
775
|
|
|
775
|
|
775
|
||||||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
521
|
|
521
|
|
521
|
||||||||||||||||||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Common stock
(a)
|
|
|
|
|
(165
|
) |
|
|
(165
|
) |
|
(165
|
) | |||||||||||||||||||||||||||
Preferred stock
(b)
|
|
|
|
|
(15
|
) |
|
|
(15
|
) |
|
(15
|
) | |||||||||||||||||||||||||||
Shares acquired for treasury
|
|
|
|
(135
|
) |
|
|
(778
|
) |
(913
|
) |
|
(913
|
) | ||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net
|
|
|
|
(5
|
) |
|
|
30
|
25
|
|
25
|
|||||||||||||||||||||||||||||
Impact of MB Financial, Inc. acquisition
|
|
|
|
712
|
|
|
2,447
|
3,159
|
197
|
3,356
|
||||||||||||||||||||||||||||||
Other
|
|
|
|
(1
|
) |
1
|
|
|
-
|
|
-
|
|||||||||||||||||||||||||||||
Balance at March 31, 2019
|
$ |
|
2,051
|
1,331
|
3,444
|
17,184
|
409
|
(4,772
|
) |
19,647
|
197
|
19,844
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Balance at December 31, 2019
|
$
|
|
|
|
2,051
|
|
|
1,770
|
|
|
3,599
|
|
|
18,315
|
|
|
1,192
|
|
|
(5,724
|
)
|
|
21,203
|
|
|
-
|
|
|
21,203
|
|
||||||||||
Impact of cumulative effect of change in accounting principle
(c)
|
|
|
|
|
|
|
|
|
|
|
|
(472
|
)
|
|
|
|
|
|
|
|
(472
|
)
|
|
|
|
|
(472
|
)
|
||||||||||||
Balance at January 1, 2020
|
$
|
|
|
|
2,051
|
|
|
1,770
|
|
|
3,599
|
|
|
17,843
|
|
|
1,192
|
|
|
(5,724
|
)
|
|
20,731
|
|
|
-
|
|
|
20,731
|
|
||||||||||
Net income
|
|
|
|
|
|
46
|
|
|
|
|
46
|
|
|
|
46
|
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
1,285
|
|
|
|
1,285
|
|
|
|
1,285
|
|
||||||||||||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock
(a)
|
|
|
|
|
|
|
|
(195
|
)
|
|
|
|
|
|
|
|
(195
|
)
|
|
|
|
|
(195
|
)
|
||||||||||||||||
Preferred stock
(b)
|
|
|
|
|
|
|
|
(17
|
)
|
|
|
|
|
|
|
|
(17
|
)
|
|
|
|
|
(17
|
)
|
||||||||||||||||
Impact of stock transactions under stock compensation plans, net
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
25
|
|
|
23
|
|
|
|
|
|
23
|
|
||||||||||||
Balance at March 31, 2020
|
$ |
|
|
2,051
|
|
|
1,770
|
|
|
3,597
|
|
|
17,677
|
|
|
2,477
|
|
|
(5,699
|
)
|
|
21,873
|
|
|
-
|
|
|
21,873
|
|
(a)
|
Dividends declared per common share were $0.27 and $0.22 for the three months ended March 31, 2020 and 2019, respectively.
|
(b)
|
For both the three months ended March 31, 2020 and 2019, dividends were $414.06 per preferred share for Perpetual Preferred Stock, Series I. For the three months ended March 31, 2020 and 2019, dividends per preferred share for Perpetual Preferred Stock, Series J were $320.55 and $612.50, respectively. For the three months ended March 31, 2020, dividends were $309.38 per preferred share for Perpetual Preferred Stock, Series K and $15.00 per preferred share for Perpetual Class B Preferred Stock, Series A.
|
(c)
|
Related to the
adoption of ASU
2016-13
as of January 1, 2020. Refer to Note 4 for additional information.
|
|
|
For the three months ended March 31,
|
||||||||||
($ in millions)
|
|
2020
|
|
2019
|
||||||||
Operating Activities
|
|
|
|
|
|
|
|
|||||
Net income
|
$
|
|
|
|
46
|
|
775
|
|||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|||||
Provision for credit losses
|
|
|
|
|
640
|
|
90
|
|||||
Depreciation, amortization and accretion
|
|
|
|
|
118
|
|
89
|
|||||
Stock-based compensation expense
|
|
|
|
|
53
|
|
54
|
|||||
Benefit from deferred income taxes
|
|
|
|
|
(3
|
)
|
(67
|
) | ||||
Securities
losses
(gains), net
|
|
|
|
|
26
|
(16
|
) | |||||
Securities gains,
net
hedges on mortgage servicing rights
-
non-qualifying
|
|
|
|
|
(3
|
)
|
(3
|
) | ||||
MSR fair value adjustment
|
|
|
|
|
378
|
|
84
|
|||||
Net gains on sales of loans and fair value adjustments on loans held for sale
|
|
|
|
|
(91
|
)
|
(21
|
) | ||||
Net losses on disposition and impairment of bank premises and equipment
|
|
|
|
|
3
|
|
20
|
|||||
Net gains on disposition and impairment of operating lease equipment
|
|
|
|
|
(6
|
)
|
-
|
|||||
Gain on sale of Worldpay, Inc. shares
|
|
|
|
|
-
|
(562
|
) | |||||
Proceeds from sales of loans held for sale
|
|
|
|
|
3,072
|
|
1,217
|
|||||
Loans originated or purchased for sale, net of repayments
|
|
|
|
|
(3,239
|
)
|
(1,302
|
) | ||||
Dividends representing return on equity investments
|
|
|
|
|
3
|
|
3
|
|||||
Net change in:
|
|
|
|
|
|
|
|
|||||
Trading debt and equity securities
|
|
|
|
|
(54
|
)
|
60
|
|||||
Other assets
|
|
|
|
|
(192
|
)
|
274
|
|||||
Accrued taxes, interest and expenses
|
|
|
|
|
(267
|
)
|
(123
|
) | ||||
Other liabilities
|
|
|
|
|
(51
|
)
|
(38
|
) | ||||
Net Cash Provided by Operating Activities
|
|
|
|
|
433
|
|
534
|
|||||
Investing Activities
|
|
|
|
|
|
|
|
|||||
Proceeds from sales:
|
|
|
|
|
|
|
|
|||||
Available-for-sale
securities and other investments
|
|
|
|
|
800
|
|
2,719
|
|||||
Loans and leases
|
|
|
|
|
46
|
|
52
|
|||||
Bank premises and equipment
|
|
|
|
|
6
|
|
2
|
|||||
Proceeds from repayments / maturities:
|
|
|
|
|
|
|
|
|||||
Available-for-sale
securities and other investments
|
|
|
|
|
564
|
|
439
|
|||||
Purchases:
|
|
|
|
|
|
|
|
|||||
Available-for-sale
securities and other investments
|
|
|
|
|
(2,570
|
)
|
(3,644
|
) | ||||
Bank premises and equipment
|
|
|
|
|
(74
|
)
|
(57
|
) | ||||
MSRs
|
|
|
|
|
(26
|
)
|
-
|
|||||
Proceeds from settlement of BOLI
|
|
|
|
|
2
|
|
3
|
|||||
Proceeds from sales and dividends representing return of equity investments
|
|
|
|
|
4
|
|
998
|
|||||
Net cash received on acquisition
|
|
|
|
|
-
|
|
1,210
|
|||||
Net change in:
|
|
|
|
|
|
|
|
|||||
Federal funds sold
|
|
|
|
|
-
|
|
35
|
|||||
Other short-term investments
|
|
|
|
|
(4,369
|
)
|
(1,678
|
) | ||||
Loans and leases
|
|
|
|
|
(8,567
|
)
|
(1,196
|
) | ||||
Operating lease equipment
|
|
|
|
|
3
|
(4
|
) | |||||
Net Cash Used in Investing Activities
|
|
|
|
|
(14,181
|
)
|
(1,121
|
) | ||||
Financing Activities
|
|
|
|
|
|
|
|
|||||
Net change in:
|
|
|
|
|
|
|
|
|||||
Deposits
|
|
|
|
|
7,999
|
|
339
|
|||||
Federal funds purchased
|
|
|
|
|
1,365
|
705
|
||||||
Other short-term borrowings
|
|
|
|
|
3,531
|
|
408
|
|||||
Dividends paid on common stock
|
|
|
|
|
(173
|
)
|
(143
|
) | ||||
Dividends paid on preferred stock
|
|
|
|
|
(17
|
)
|
-
|
|||||
Proceeds from issuance of long-term debt
|
|
|
|
|
1,260
|
|
1,790
|
|||||
Repayment of long-term debt
|
|
|
|
|
(180
|
)
|
(1,504
|
) | ||||
Repurchases of treasury stock and related forward contract
|
|
|
|
|
-
|
(913
|
) | |||||
Other
|
|
|
|
|
(33
|
)
|
(27
|
) | ||||
Net Cash Provided by Financing Activities
|
|
|
|
|
13,752
|
|
655
|
|||||
Increase in Cash and Due from Banks
|
|
|
|
|
4
|
|
68
|
|||||
Cash and Due from Banks at Beginning of Period
|
|
|
|
|
3,278
|
|
2,681
|
|||||
Cash and Due from Banks at End of Period
|
$
|
|
|
|
3,282
|
|
2,749
|
($ in millions)
|
2020
|
|
2019
|
|||||
Cash Payments:
|
|
|
|
|
||||
Interest
|
$
|
367
|
|
379
|
||||
Income taxes
|
|
14
|
|
14
|
||||
Transfers:
|
|
|
|
|
||||
Portfolio loans
and
leases
to loans
and leases
held for sale
|
|
23
|
|
38
|
||||
Loans
and leases
held for sale to portfolio loans
and leases
|
|
7
|
|
15
|
||||
Portfolio
loans
and
leases
to OREO
|
|
5
|
|
8
|
||||
Supplemental Disclosures:
|
|
|
|
|
||||
Additions to
right-of-use
assets under operating leases
|
|
17
|
|
4
|
||||
Additions to
right-of-use
assets under finance leases
|
|
13
|
|
1
|
||||
Right-of-use
assets recognized at adoption of ASU
2016-02
|
|
-
|
|
509
|
($ in millions)
|
|
|
||||||
Consideration paid
|
|
|
||||||
Cash payments
|
|
$ |
469
|
|||||
Fair value of common stock issued
|
|
3,121
|
||||||
Stock-based awards
|
|
38
|
||||||
Dividend receivable from MB Financial, Inc.
|
|
(20
|
) | |||||
Total consideration paid
|
|
$
|
3,608
|
|||||
|
|
|
||||||
Fair value of noncontrolling interest in acquiree
|
|
$ |
197
|
|||||
Net Identifiable Assets Acquired, at Fair Value:
|
|
|
||||||
Assets
|
|
|
||||||
Cash and due from banks
|
$ |
1,679
|
|
|||||
Federal funds sold
|
35
|
|
||||||
Other short-term investments
|
53
|
|
||||||
Available-for-sale
debt and other securities
|
832
|
|
||||||
Held-to-maturity
securities
|
4
|
|
||||||
Equity securities
|
51
|
|
||||||
Loans and leases held for sale
|
12
|
|
||||||
Portfolio loans and leases
|
13,414
|
(a)
|
|
|||||
Bank premises and equipment
|
266
|
(a)
|
|
|||||
Operating lease equipment
|
394
|
(a)
|
|
|||||
Intangible assets
|
219
|
(a)
|
|
|||||
Servicing rights
|
263
|
|
|
|||||
Other assets
|
750
|
(a)
|
|
|||||
Total assets acquired
|
$ |
17,972
|
|
|||||
Liabilities
|
|
|
||||||
Deposits
|
$ |
14,489
|
|
|||||
Other short-term borrowings
|
267
|
(a)
|
|
|||||
Accrued taxes, interest and expenses
|
276
|
(a)
|
|
|||||
Other liabilities
|
194
|
(a)
|
|
|||||
Long-term debt
|
727
|
(a)
|
|
|||||
Total liabilities assumed
|
$ |
15,953
|
|
|||||
|
|
|
||||||
Net identifiable assets acquired
|
|
2,019
|
||||||
Goodwill
|
|
$ |
1,786
|
(a)
|
Fair values have been updated from the preliminary estimates reported in the March 31, 2019 Form
10-Q.
|
|
|
For the three months ended
March 31, |
||||||||||
($ in millions)
|
|
2020
|
|
2019
|
||||||||
Compensation and benefits
|
$
|
|
|
|
2
|
|
35
|
|||||
Technology and communications
|
|
|
|
|
3
|
|
11
|
|||||
Net occupancy expense
|
|
|
|
|
1
|
|
-
|
|||||
Marketing expense
|
|
|
|
|
-
|
|
4
|
|||||
Other noninterest expense
|
|
|
|
|
1
|
|
26
|
|||||
Total
|
$
|
|
|
|
7
|
|
76
|
($ in millions)
|
|
Unaudited Pro Forma Information
For the three months ended March 31, 2019 |
||||||
Net interest income
|
$
|
|
|
1,233
|
||||
Noninterest income
|
|
|
|
1,204
|
||||
Net income available to common shareholders
|
|
893
|
($ in millions)
|
March 22, 2019
|
|||
Contractually required payments including interest
|
$ |
1,139
|
||
Less: Nonaccretable difference
|
81
|
|||
Cash flows expected to be collected
|
1,058
|
|||
Less: Accretable yield
|
202
|
|||
Fair value of loans acquired
|
$ |
856
|
|
|
Amortized
|
Unrealized
|
Unrealized
|
|
Fair
|
|
|||||||||||||||||||||
March 31, 2020 ($ in millions)
|
|
Cost
|
Gains
|
Losses
|
|
Value
|
|
|||||||||||||||||||||
Available-for-sale
debt and other securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. Treasury and federal agency securities
|
$
|
|
|
|
74
|
|
|
4
|
|
|
-
|
|
|
|
|
|
78
|
|
|
|
|
|||||||
Obligations of states and political subdivisions securities
|
|
|
|
|
17
|
|
|
-
|
|
|
-
|
|
|
|
|
|
17
|
|
|
|
|
|||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Agency residential mortgage-backed securities
|
|
|
|
|
13,350
|
|
|
810
|
|
|
(16
|
)
|
|
|
|
|
14,144
|
|
|
|
|
|||||||
Agency commercial mortgage-backed securities
|
|
|
|
|
16,395
|
|
|
1,408
|
|
|
(5
|
)
|
|
|
|
|
17,798
|
|
|
|
|
|||||||
Non-agency
commercial mortgage-backed securities
|
|
|
|
|
3,229
|
|
|
87
|
|
|
(1
|
)
|
|
|
|
|
3,315
|
|
|
|
|
|||||||
Asset-backed securities and other debt securities
|
|
|
|
|
2,747
|
|
|
18
|
|
|
(88
|
)
|
|
|
|
|
2,677
|
|
|
|
|
|||||||
Other securities
(a)
|
|
|
|
|
616
|
|
|
-
|
|
|
-
|
|
|
|
|
|
616
|
|
|
|
|
|||||||
Total
available-for-sale
debt and other securities
|
$
|
|
|
|
36,428
|
|
|
2,327
|
|
|
(110
|
)
|
|
|
|
|
38,645
|
|
|
|
|
|||||||
Held-to-maturity
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Obligations of states and political subdivisions securities
|
$
|
|
|
|
15
|
|
|
-
|
|
|
-
|
|
|
|
|
|
15
|
|
|
|
|
|||||||
Asset-backed securities and other debt securities
|
|
|
|
|
2
|
|
|
-
|
|
|
-
|
|
|
|
|
|
2
|
|
|
|
|
|||||||
Total
held-to-maturity
securities
|
$
|
|
|
|
17
|
|
|
-
|
|
|
-
|
|
|
|
|
|
17
|
|
|
|
|
(a)
|
Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $136, $478 and $2, respectively, at March 31, 2020, that are carried at cost.
|
|
|
Amortized
|
Unrealized
|
Unrealized
|
|
Fair
|
|
|||||||||||||||||||||
December 31, 2019 ($ in millions)
|
|
Cost
|
Gains
|
Losses
|
|
Value
|
|
|||||||||||||||||||||
Available-for-sale
debt and other securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. Treasury and federal agency securities
|
$ |
|
74
|
1
|
-
|
|
75
|
|
|
|
||||||||||||||||||
Obligations of states and political subdivisions securities
|
|
18
|
-
|
-
|
|
18
|
|
|
|
|||||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Agency residential mortgage-backed securities
|
|
13,746
|
388
|
(19
|
) |
|
14,115
|
|
|
|
||||||||||||||||||
Agency commercial mortgage-backed securities
|
|
15,141
|
564
|
(12
|
) |
|
15,693
|
|
|
|
||||||||||||||||||
Non-agency
commercial mortgage-backed securities
|
|
3,242
|
123
|
-
|
|
3,365
|
|
|
|
|||||||||||||||||||
Asset-backed securities and other debt securities
|
|
2,189
|
29
|
(12
|
) |
|
2,206
|
|
|
|
||||||||||||||||||
Other securities
(a)
|
|
556
|
-
|
-
|
|
556
|
|
|
|
|||||||||||||||||||
Total
available-for-sale
debt and other securities
|
$ |
|
34,966
|
1,105
|
(43
|
) |
|
36,028
|
|
|
|
|||||||||||||||||
Held-to-maturity
securities:
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Obligations of states and political subdivisions securities
|
$ |
|
15
|
-
|
-
|
|
15
|
|
|
|
||||||||||||||||||
Asset-backed securities and other debt securities
|
|
2
|
-
|
-
|
|
2
|
|
|
|
|||||||||||||||||||
Total
held-to-maturity
securities
|
$ |
|
17
|
-
|
-
|
|
17
|
|
|
|
(a)
|
Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $76, $478 and $2, respectively, at December 31, 2019, that are carried at cost.
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|||||||||
($ in millions)
|
|
|
2020
|
|
2019
|
|
|
|||||||||
Trading debt securities
|
$
|
|
|
|
433
|
|
297
|
|
||||||||
Equity securities
|
|
|
|
|
459
|
|
564
|
|
|
|
For the three months ended
|
||||||||||
|
|
|
March 31,
|
|||||||||
($ in millions)
|
|
|
2020
|
|
2019
|
|||||||
Available-for-sale
debt and other securities:
|
|
|
|
|
|
|
|
|||||
Realized gains
|
$
|
|
|
|
1
|
|
13
|
|||||
Realized losses
|
|
|
|
|
(1
|
)
|
(14
|
) | ||||
Net realized losses on
available-for
sale debt and other securities
|
$
|
|
|
|
-
|
|
(1
|
) | ||||
Total trading debt securities gains
|
$
|
|
|
|
3
|
|
3
|
|||||
Total equity securities (losses) gains
(a)
|
$
|
|
|
|
(24
|
)
|
17
|
|||||
Total (losses) gains recognized in income from
available-for-sale
debt and other securities, trading debt securities and equity securities
(b)
|
$
|
|
|
|
(21
|
)
|
19
|
(a)
|
Includes net unrealized losses of $23 and net unrealized gains of $19 for the three months ended March 31, 2020 and 2019, respectively.
|
(b)
|
Excludes $2 of net securities losses for the three months ended March 31, 2020 and $3 of securities gains for the three months ended March 31, 2019 included in commercial banking revenue
and wealth and asset management revenue in the Condensed Consolidated Statements of Income related to securities held by FTS to facilitate the timely execution of customer transactions.
|
|
|
|
Available-for-Sale
Debt and Other
|
Held-to-Maturity
|
|
|||||||||||||||||||
($ in millions)
|
|
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
|
|||||||||||||||||
Debt securities:
(a)
|
|
|
|
|
|
|
||||||||||||||||||
Less than 1 year
|
$ |
|
36
|
37
|
15
|
15
|
|
|||||||||||||||||
1-5
years
|
|
13,751
|
14,523
|
-
|
-
|
|
||||||||||||||||||
5-10
years
|
|
15,746
|
16,868
|
-
|
-
|
|
||||||||||||||||||
Over 10 years
|
|
6,279
|
6,601
|
2
|
2
|
|
||||||||||||||||||
Other securities
|
|
616
|
616
|
-
|
-
|
|
||||||||||||||||||
Total
|
$ |
|
36,428
|
38,645
|
17
|
17
|
|
(a)
|
Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties.
|
|
|
|
Less than 12 months
|
12 months or more
|
Total
|
|||||||||||||||||||||||||||
|
|
|
|
Unrealized
|
|
Unrealized
|
|
Unrealized
|
|
|||||||||||||||||||||||
($ in millions)
|
|
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|
|||||||||||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Agency residential mortgage-backed securities
|
$
|
|
|
|
581
|
|
|
(16
|
)
|
|
2
|
|
|
-
|
|
|
583
|
|
|
(16
|
)
|
|
|
|
||||||||
Agency commercial mortgage-backed securities
|
|
|
|
|
319
|
|
|
(5
|
)
|
|
-
|
|
|
-
|
|
|
319
|
|
|
(5
|
)
|
|
|
|
||||||||
Non-agency
commercial mortgage-backed securities
|
|
|
|
|
109
|
|
|
(1
|
)
|
|
-
|
|
|
-
|
|
|
109
|
|
|
(1
|
)
|
|
|
|
||||||||
Asset-backed securities and other debt securities
|
|
|
|
|
1,466
|
|
|
(73
|
)
|
|
373
|
|
|
(15
|
)
|
|
1,839
|
|
|
(88
|
)
|
|
|
|
||||||||
Total
|
$
|
|
|
|
2,475
|
|
|
(95
|
)
|
|
375
|
|
|
(15
|
)
|
|
2,850
|
|
|
(110
|
)
|
|
|
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Agency residential mortgage-backed securities
|
$ |
|
2,159
|
(19
|
) |
4
|
-
|
2,163
|
(19
|
) |
|
|||||||||||||||||||||
Agency commercial mortgage-backed securities
|
|
1,602
|
(12
|
) |
-
|
-
|
1,602
|
(12
|
) |
|
||||||||||||||||||||||
Asset-backed securities and other debt securities
|
|
367
|
(3
|
) |
379
|
(9
|
) |
746
|
(12
|
) |
|
|||||||||||||||||||||
Total
|
$ |
|
4,128
|
(34
|
) |
383
|
(9
|
) |
4,511
|
(43
|
) |
|
|
|
|
March 31,
|
December 31,
|
||||||||||||||||
($ in millions)
|
|
|
2020
|
|
|
2019
|
|
|
||||||||||||
Loans and leases held for sale:
|
|
|
|
|
|
|
|
|||||||||||||
Commercial and industrial loans
|
$
|
|
|
|
64
|
|
|
135
|
|
|||||||||||
Commercial mortgage loans
|
|
|
|
|
1
|
|
|
1
|
|
|||||||||||
Residential mortgage loans
|
|
|
|
|
1,565
|
|
|
1,264
|
|
|||||||||||
Total loans and leases held for sale
|
$
|
|
|
|
1,630
|
|
|
1,400
|
|
|||||||||||
Portfolio loans and leases:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial and industrial loans
|
$
|
|
|
|
58,250
|
|
|
50,542
|
|
|||||||||||
Commercial mortgage loans
|
|
|
|
|
11,160
|
|
|
10,963
|
|
|||||||||||
Commercial construction loans
|
|
|
|
|
5,462
|
|
|
5,090
|
|
|||||||||||
Commercial leases
|
|
|
|
|
3,123
|
|
|
3,363
|
|
|||||||||||
Total commercial loans and leases
|
$
|
|
|
|
77,995
|
|
|
69,958
|
|
|||||||||||
Residential mortgage loans
|
$
|
|
|
|
16,701
|
|
|
16,724
|
|
|||||||||||
Home equity
|
|
|
|
|
5,963
|
|
|
6,083
|
|
|||||||||||
Indirect secured consumer loans
|
|
|
|
|
12,050
|
|
|
11,538
|
|
|||||||||||
Credit card
|
|
|
|
|
2,417
|
|
|
2,532
|
|
|||||||||||
Other consumer loans
|
|
|
|
|
2,911
|
|
|
2,723
|
|
|||||||||||
Total consumer loans
|
$
|
|
|
|
40,042
|
|
|
39,600
|
|
|||||||||||
Total portfolio loans and leases
|
$
|
|
|
|
118,037
|
|
|
109,558
|
|
|
|
Carrying Value
|
90 Days Past Due
and Still Accruing
|
|||||||||||||||||
($ in millions)
|
|
|
March 31,
2020 |
|
December 31,
2019 |
March 31,
2020 |
|
December 31,
2019 |
||||||||||||
Commercial and industrial loans
|
$
|
|
|
|
58,314
|
|
50,677
|
|
13
|
|
11
|
|||||||||
Commercial mortgage loans
|
|
|
|
|
11,161
|
|
10,964
|
|
20
|
|
15
|
|||||||||
Commercial construction loans
|
|
|
|
|
5,462
|
|
5,090
|
|
-
|
|
-
|
|||||||||
Commercial leases
|
|
|
|
|
3,123
|
|
3,363
|
|
10
|
|
-
|
|||||||||
Residential mortgage loans
|
|
|
|
|
18,266
|
|
17,988
|
|
54
|
|
50
|
|||||||||
Home equity
|
|
|
|
|
5,963
|
|
6,083
|
|
-
|
|
1
|
|||||||||
Indirect secured consumer loans
|
|
|
|
|
12,050
|
|
11,538
|
|
11
|
|
10
|
|||||||||
Credit card
|
|
|
|
|
2,417
|
|
2,532
|
|
42
|
|
42
|
|||||||||
Other consumer loans
|
|
|
|
|
2,911
|
|
2,723
|
|
1
|
|
1
|
|||||||||
Total loans and leases
|
$
|
|
|
|
119,667
|
|
110,958
|
|
151
|
|
130
|
|||||||||
Less: Loans and leases held for sale
|
$
|
|
|
|
1,630
|
|
1,400
|
|
|
|||||||||||
Total portfolio loans and leases
|
$
|
|
|
|
118,037
|
|
109,558
|
|
|
($ in millions)
|
|
|
2020
|
|
2019
|
|||||||
Commercial and industrial loans
|
$
|
|
|
|
50
|
|
18
|
|||||
Commercial mortgage loans
|
|
|
|
|
2
|
|
(1
|
) | ||||
Commercial leases
|
|
|
|
|
5
|
|
-
|
|||||
Residential mortgage loans
|
|
|
|
|
1
|
|
1
|
|||||
Home equity
|
|
|
|
|
3
|
|
3
|
|||||
Indirect secured consumer loans
|
|
|
|
|
12
|
|
13
|
|||||
Credit card
|
|
|
|
|
36
|
|
33
|
|||||
Other consumer loans
|
|
|
|
|
13
|
|
10
|
|||||
Total net charge-offs
|
$
|
|
|
|
122
|
|
77
|
($ in millions)
(a)
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|||||||
Net investment in direct financing leases:
|
|
|
|
|||||||||
Lease payment receivable (present value)
|
$
|
|
|
|
1,985
|
|
2,196
|
|||||
Unguaranteed residual assets (present value)
|
|
|
|
|
215
|
|
220
|
|||||
Net discount on acquired leases
|
|
|
|
|
(6
|
)
|
(7
|
) | ||||
Net investment in sales-type leases:
|
|
|
|
|
|
|
|
|||||
Lease payment receivable (present value)
|
|
|
|
|
534
|
|
510
|
|||||
Unguaranteed residual assets (present value)
|
|
|
|
|
16
|
|
15
|
(a)
|
Excludes $379 and $429 of leveraged leases at March 31, 2020 and December 31, 2019, respectively.
|
As of March 31, 2020 ($ in millions)
|
|
Direct Financing
Leases |
Sales-Type
Leases
|
|||||||||
Remainder of 2020
|
$ |
|
483
|
98
|
||||||||
2021
|
|
512
|
140
|
|||||||||
2022
|
|
415
|
120
|
|||||||||
2023
|
|
257
|
80
|
|||||||||
2024
|
|
184
|
71
|
|||||||||
2025
|
|
115
|
28
|
|||||||||
Thereafter
|
|
158
|
54
|
|||||||||
Total undiscounted cash flows
|
$ |
|
2,124
|
591
|
||||||||
Less: Difference between undiscounted cash flows and discounted cash flows
|
|
139
|
57
|
|||||||||
Present value of lease payments (recognized as lease receivables)
|
$ |
|
1,985
|
534
|
For the three months ended March 31, 2020 ($ in millions)
|
|
Commercial
|
Residential
Mortgage |
Consumer
|
Unallocated
|
Total
|
|
|||||||||||||||||||||
Balance, beginning of period
|
$
|
|
|
|
710
|
|
|
73
|
|
|
298
|
|
|
121
|
|
|
1,202
|
|
|
|
|
|||||||
Impact of adoption of ASU
2016-13
(a)
|
|
|
|
|
160
|
|
|
196
|
|
|
408
|
|
|
(121)
|
|
|
643
|
|
|
|
|
|||||||
Losses
charged-off
(b)
|
|
|
|
|
(61)
|
|
|
(2)
|
|
|
(96)
|
|
|
-
|
|
|
(159)
|
|
|
|
|
|||||||
Recoveries of losses previously
charged-off
(b)
|
|
|
|
|
4
|
|
|
1
|
|
|
32
|
|
|
-
|
|
|
37
|
|
|
|
|
|||||||
Provision for (benefit from) loan and lease losses
|
|
|
|
|
500
|
|
|
(8)
|
|
|
133
|
|
|
-
|
|
|
625
|
|
|
|
|
|||||||
Balance, end of period
|
$
|
|
|
|
1,313
|
|
|
260
|
|
|
775
|
|
|
-
|
|
|
2,348
|
|
|
|
|
(a)
|
Includes $31, $1 and $1 in Commercial, Residential Mortgage and Consumer, respectively, related to the initial recognition of an ALLL on PCD loans.
|
(b)
|
The Bancorp recorded $13 i
n both losses
charged-off
and recoveries of losses previously
charged-off
related to customer defaults on
point-of-sale
consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.
|
For the three months ended March 31, 2019 ($ in millions)
|
|
Commercial
|
Residential
Mortgage |
Consumer
|
Unallocated
|
Total
|
|
|||||||||||||||||||||
Balance, beginning of period
|
$ |
|
645
|
81
|
267
|
110
|
1,103
|
|
||||||||||||||||||||
Losses
charged-off
(a)
|
|
(20)
|
(2)
|
(86)
|
-
|
(108)
|
|
|||||||||||||||||||||
Recoveries of losses previously
charged-off
(a)
|
|
3
|
1
|
27
|
-
|
31
|
|
|||||||||||||||||||||
Provision for (benefit from) loan and lease losses
|
|
26
|
(1)
|
62
|
2
|
89
|
|
|||||||||||||||||||||
Balance, end of period
|
$ |
|
654
|
79
|
270
|
112
|
1,115
|
|
(a)
|
The Bancorp recorded $11 in both losses
charged-off
and recoveries of losses previously
charged-off
related to customer defaults on
point-of-sale
consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.
|
As of March 31, 2020 ($ in millions)
|
|
|
Commercial
|
Residential
Mortgage |
Consumer
|
Total
|
|
|||||||||||||||||
ALLL:
(a)
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated
|
$
|
|
|
|
118
|
|
|
77
|
|
|
60
|
|
|
255
|
|
|
||||||||
Collectively evaluated
|
|
|
|
|
1,195
|
|
|
183
|
|
|
715
|
|
|
2,093
|
|
|
||||||||
Total ALLL
|
$
|
|
|
|
1,313
|
|
|
260
|
|
|
775
|
|
|
2,348
|
|
|
||||||||
Portfolio loans and leases:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated
|
$
|
|
|
|
547
|
|
|
813
|
|
|
296
|
|
|
1,656
|
|
|
||||||||
Collectively evaluated
|
|
|
|
|
76,989
|
|
|
15,674
|
|
|
23,025
|
|
|
115,688
|
|
|
||||||||
Purchased credit deteriorated
|
|
|
|
|
459
|
|
|
29
|
|
|
20
|
|
|
508
|
|
|
||||||||
Total portfolio loans and leases
|
$
|
|
|
|
77,995
|
|
|
16,516
|
|
|
23,341
|
|
|
117,852
|
|
|
(a)
|
Includes $4 related to leveraged leases at March 31, 2020.
|
(b)
|
Excludes $185 of residential mortgage loans measured at fair value and includes $379 of leveraged leases, net of unearned income at March 31, 2020.
|
As of December 31, 2019 ($ in millions)
|
|
|
Commercial
|
Residential
Mortgage |
Consumer
|
Unallocated
|
Total
|
|
|
|||||||||||||||||||
ALLL:
(a)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Individually evaluated for impairment
|
$ |
|
82
|
55
|
33
|
-
|
170
|
|
||||||||||||||||||||
Collectively evaluated for impairment
|
|
628
|
18
|
265
|
-
|
911
|
|
|||||||||||||||||||||
Unallocated
|
|
-
|
-
|
-
|
121
|
121
|
|
|||||||||||||||||||||
Total ALLL
|
$ |
|
710
|
73
|
298
|
121
|
1,202
|
|
||||||||||||||||||||
Portfolio loans and leases:
(b)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Individually evaluated for impairment
|
$ |
|
413
|
814
|
302
|
-
|
1,529
|
|
||||||||||||||||||||
Collectively evaluated for impairment
|
|
69,047
|
15,690
|
22,558
|
-
|
107,295
|
|
|||||||||||||||||||||
Purchased credit impaired
|
|
498
|
37
|
16
|
-
|
551
|
|
|||||||||||||||||||||
Total portfolio loans and leases
|
$ |
|
69,958
|
16,541
|
22,876
|
-
|
109,375
|
|
(a)
|
Includes $1 related to leveraged leases at December 31, 2019.
|
(b)
|
Excludes $183 of residential mor
tgage loans measured at fair value and includes $429 of leveraged leases, net of unearned income at December 31, 2019.
|
The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class and vintage:
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
|
Term Loans and Leases
Amortized Cost Basis by Origination Year |
|
Revolving
Loans Amortized |
Revolving
Loans Converted to Term Loans Amortized Cost |
|
|
|||||||||||||||||||||||||||||||||||||||||
As of March 31, 2020 ($ in millions)
|
|
2020
|
2019
|
2018
|
2017
|
2016
|
Prior
|
|
Cost Basis
|
Basis
|
Total
|
|
||||||||||||||||||||||||||||||||||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
|
|
987
|
|
|
3,217
|
|
|
1,832
|
|
|
1,302
|
|
|
754
|
|
|
1,128
|
|
|
|
|
|
44,212
|
|
|
-
|
|
|
53,432
|
|
|
||||||||||||||
Special mention
|
|
|
|
|
28
|
|
|
89
|
|
|
188
|
|
|
63
|
|
|
42
|
|
|
8
|
|
|
|
|
|
2,631
|
|
|
-
|
|
|
3,049
|
|
|
||||||||||||||
Substandard
|
|
|
|
|
11
|
|
|
53
|
|
|
89
|
|
|
78
|
|
|
58
|
|
|
70
|
|
|
|
|
|
1,385
|
|
|
-
|
|
|
1,744
|
|
|
||||||||||||||
Doubtful
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
25
|
|
|
-
|
|
|
25
|
|
|
||||||||||||||
Total commercial and industrial loans
|
$
|
|
|
|
1,026
|
|
|
3,359
|
|
|
2,109
|
|
|
1,443
|
|
|
854
|
|
|
1,206
|
|
|
|
|
|
48,253
|
|
|
-
|
|
|
58,250
|
|
|
||||||||||||||
Commercial mortgage owner-occupied loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pass
|
$
|
|
|
|
297
|
|
|
903
|
|
|
624
|
|
|
474
|
|
|
322
|
|
|
730
|
|
|
|
|
|
1,052
|
|
|
-
|
|
|
4,402
|
|
|
||||||||||||||
Special mention
|
|
|
|
|
3
|
|
|
28
|
|
|
43
|
|
|
30
|
|
|
13
|
|
|
17
|
|
|
|
|
|
48
|
|
|
-
|
|
|
182
|
|
|
||||||||||||||
Substandard
|
|
|
|
|
16
|
|
|
64
|
|
|
38
|
|
|
39
|
|
|
13
|
|
|
46
|
|
|
|
|
|
85
|
|
|
-
|
|
|
301
|
|
|
||||||||||||||
Doubtful
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
||||||||||||||
Total commercial mortgage owner-occupied loans
|
$
|
|
|
|
316
|
|
|
995
|
|
|
705
|
|
|
543
|
|
|
348
|
|
|
793
|
|
|
|
|
|
1,185
|
|
|
-
|
|
|
4,885
|
|
|
||||||||||||||
Commercial mortgage nonowner-occupied loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pass
|
$
|
|
|
|
229
|
|
|
1,266
|
|
|
735
|
|
|
357
|
|
|
330
|
|
|
591
|
|
|
|
|
|
2,372
|
|
|
-
|
|
|
5,880
|
|
|
||||||||||||||
Special mention
|
|
|
|
|
4
|
|
|
9
|
|
|
17
|
|
|
13
|
|
|
18
|
|
|
6
|
|
|
|
|
|
151
|
|
|
-
|
|
|
218
|
|
|
||||||||||||||
Substandard
|
|
|
|
|
9
|
|
|
27
|
|
|
2
|
|
|
11
|
|
|
-
|
|
|
43
|
|
|
|
|
|
85
|
|
|
-
|
|
|
177
|
|
|
||||||||||||||
Doubtful
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
||||||||||||||
Total commercial mortgage nonowner-occupied loans
|
$
|
|
|
|
242
|
|
|
1,302
|
|
|
754
|
|
|
381
|
|
|
348
|
|
|
640
|
|
|
|
|
|
2,608
|
|
|
-
|
|
|
6,275
|
|
|
||||||||||||||
Commercial construction loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pass
|
$
|
|
|
|
9
|
|
|
90
|
|
|
28
|
|
|
-
|
|
|
10
|
|
|
29
|
|
|
|
|
|
5,075
|
|
|
-
|
|
|
5,241
|
|
|
||||||||||||||
Special mention
|
|
|
|
|
-
|
|
|
4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
172
|
|
|
-
|
|
|
176
|
|
|
||||||||||||||
Substandard
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
|
|
|
41
|
|
|
-
|
|
|
45
|
|
|
||||||||||||||
Doubtful
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
||||||||||||||
Total commercial construction loans
|
$
|
|
|
|
9
|
|
|
94
|
|
|
28
|
|
|
-
|
|
|
10
|
|
|
33
|
|
|
|
|
|
5,288
|
|
|
-
|
|
|
5,462
|
|
|
||||||||||||||
Commercial leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pass
|
$
|
|
|
|
22
|
|
|
174
|
|
|
429
|
|
|
486
|
|
|
403
|
|
|
1,438
|
|
|
|
|
|
-
|
|
|
-
|
|
|
2,952
|
|
|
||||||||||||||
Special mention
|
|
|
|
|
-
|
|
|
1
|
|
|
17
|
|
|
34
|
|
|
11
|
|
|
36
|
|
|
|
|
|
-
|
|
|
-
|
|
|
99
|
|
|
||||||||||||||
Substandard
|
|
|
|
|
-
|
|
|
3
|
|
|
7
|
|
|
18
|
|
|
12
|
|
|
32
|
|
|
|
|
|
-
|
|
|
-
|
|
|
72
|
|
|
||||||||||||||
Doubtful
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
||||||||||||||
Total commercial leases
|
$
|
|
|
|
22
|
|
|
178
|
|
|
453
|
|
|
538
|
|
|
426
|
|
|
1,506
|
|
|
|
|
|
-
|
|
|
-
|
|
|
3,123
|
|
|
||||||||||||||
Total commercial loans and leases
|
$
|
|
|
|
1,615
|
|
|
5,928
|
|
|
4,049
|
|
|
2,905
|
|
|
1,986
|
|
|
4,178
|
|
|
|
|
|
57,334
|
|
|
-
|
|
|
77,995
|
|
|
As of December 31, 2019 ($ in millions)
|
|
Pass
|
Special
Mention |
Substandard
|
Doubtful
|
Total
|
|
|||||||||||||||||||||
Commercial and industrial loans
|
$ |
|
47,671
|
1,423
|
1,406
|
42
|
50,542
|
|
||||||||||||||||||||
Commercial mortgage owner-occupied loans
|
|
4,421
|
162
|
293
|
4
|
4,880
|
|
|||||||||||||||||||||
Commercial mortgage nonowner-occupied loans
|
|
5,866
|
135
|
82
|
-
|
6,083
|
|
|||||||||||||||||||||
Commercial construction loans
|
|
4,963
|
52
|
75
|
-
|
5,090
|
|
|||||||||||||||||||||
Commercial leases
|
|
3,222
|
53
|
88
|
-
|
3,363
|
|
|||||||||||||||||||||
Total commercial loans and leases
|
$ |
|
66,143
|
1,825
|
1,944
|
46
|
69,958
|
|
|
|
Current
|
Past Due
|
|
90 Days Past
|
|||||||||||||||||||||||
|
|
Loans and
|
30-89
|
90 Days
|
Total
|
Total Loans
|
Due and Still
|
|||||||||||||||||||||
As of March 31, 2020 ($ in millions)
|
|
Leases
(a)
|
Days
(a)
|
or More
(a)
|
Past Due
|
and Leases
|
Accruing
|
|||||||||||||||||||||
Commercial loans and leases:
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial and industrial loans
|
$
|
|
|
|
57,996
|
|
|
120
|
|
|
134
|
|
|
254
|
|
|
58,250
|
|
|
13
|
|
|||||||
Commercial mortgage owner-occupied loans
|
|
|
|
|
4,846
|
|
|
16
|
|
|
23
|
|
|
39
|
|
|
4,885
|
|
|
7
|
|
|||||||
Commercial mortgage nonowner-occupied loans
|
|
|
|
|
6,255
|
|
|
6
|
|
|
14
|
|
|
20
|
|
|
6,275
|
|
|
13
|
|
|||||||
Commercial construction loans
|
|
|
|
|
5,457
|
|
|
4
|
|
|
1
|
|
|
5
|
|
|
5,462
|
|
|
-
|
|
|||||||
Commercial leases
|
|
|
|
|
3,084
|
|
|
14
|
|
|
25
|
|
|
39
|
|
|
3,123
|
|
|
10
|
|
|||||||
Total portfolio commercial loans and leases
|
$
|
|
|
|
77,638
|
|
|
160
|
|
|
197
|
|
|
357
|
|
|
77,995
|
|
|
43
|
|
(a)
|
Includes accrual and
nonaccrual loans and leases.
|
|
|
Current
|
Past Due
|
|
90 Days Past
|
|||||||||||||||||||||||
|
|
Loans and
|
30-89
|
90 Days
|
Total
|
Total Loans
|
Due and Still
|
|||||||||||||||||||||
As of December 31, 2019 ($ in millions)
|
|
Leases
(a)
|
Days
(a)
|
or More
(a)
|
Past Due
|
and Leases
|
Accruing
|
|||||||||||||||||||||
Commercial loans and leases:
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial and industrial loans
|
$ |
|
50,305
|
133
|
104
|
237
|
50,542
|
11
|
||||||||||||||||||||
Commercial mortgage owner-occupied loans
|
|
4,853
|
4
|
23
|
27
|
4,880
|
9
|
|||||||||||||||||||||
Commercial mortgage nonowner-occupied loans
|
|
6,072
|
5
|
6
|
11
|
6,083
|
6
|
|||||||||||||||||||||
Commercial construction loans
|
|
5,089
|
1
|
-
|
1
|
5,090
|
-
|
|||||||||||||||||||||
Commercial leases
|
|
3,338
|
11
|
14
|
25
|
3,363
|
-
|
|||||||||||||||||||||
Total portfolio commercial loans and leases
|
$ |
|
69,657
|
154
|
147
|
301
|
69,958
|
26
|
(a)
|
Includes accrual and nonaccrual loans and leases.
|
|
|
Term Loans
Amortized Cost Basis by Origination Year
|
|
Revolving Loans Amortized
|
Revolving Loans Converted to Term Loans Amortized Cost
|
|
|
|||||||||||||||||||||||||||||||||||||||||
As of March 31, 2020 ($ in millions)
|
|
2020
|
2019
|
2018
|
2017
|
2016
|
Prior
|
|
Cost Basis
|
Basis
|
Total
|
|
||||||||||||||||||||||||||||||||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Performing:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Current
(a)
|
$
|
|
|
|
693
|
|
|
2,748
|
|
|
1,333
|
|
|
2,332
|
|
|
3,088
|
|
|
6,170
|
|
|
|
|
|
-
|
|
|
-
|
|
|
16,364
|
|
|
||||||||||||||
30-89
days past due
|
|
|
|
|
-
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
18
|
|
|
|
|
|
-
|
|
|
-
|
|
|
25
|
|
|
||||||||||||||
90 days or more past due
|
|
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
5
|
|
|
5
|
|
|
43
|
|
|
|
|
|
-
|
|
|
-
|
|
|
54
|
|
|
||||||||||||||
Total performing
|
|
|
|
|
693
|
|
|
2,750
|
|
|
1,335
|
|
|
2,338
|
|
|
3,096
|
|
|
6,231
|
|
|
|
|
|
-
|
|
|
-
|
|
|
16,443
|
|
|
||||||||||||||
Nonperforming
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
3
|
|
|
69
|
|
|
|
|
|
-
|
|
|
-
|
|
|
73
|
|
|
||||||||||||||
Total residential mortgage loans
(b)
|
$
|
|
|
|
693
|
|
|
2,750
|
|
|
1,335
|
|
|
2,339
|
|
|
3,099
|
|
|
6,300
|
|
|
|
|
|
-
|
|
|
-
|
|
|
16,516
|
|
|
||||||||||||||
Home equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Performing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current
|
$
|
|
|
|
7
|
|
|
33
|
|
|
40
|
|
|
4
|
|
|
1
|
|
|
157
|
|
|
|
|
|
5,573
|
|
|
9
|
|
|
5,824
|
|
|
||||||||||||||
30-89
days past due
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
|
|
|
45
|
|
|
-
|
|
|
49
|
|
|
||||||||||||||
90 days or more past due
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
||||||||||||||
Total performing
|
|
|
|
|
7
|
|
|
33
|
|
|
40
|
|
|
4
|
|
|
1
|
|
|
161
|
|
|
|
|
|
5,618
|
|
|
9
|
|
|
5,873
|
|
|
||||||||||||||
Nonperforming
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
11
|
|
|
|
|
|
79
|
|
|
-
|
|
|
90
|
|
|
||||||||||||||
Total home equity
|
$
|
|
|
|
7
|
|
|
33
|
|
|
40
|
|
|
4
|
|
|
1
|
|
|
172
|
|
|
|
|
|
5,697
|
|
|
9
|
|
|
5,963
|
|
|
||||||||||||||
Indirect secured consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Performing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current
|
$
|
|
|
|
1,816
|
|
|
5,124
|
|
|
2,401
|
|
|
1,343
|
|
|
677
|
|
|
529
|
|
|
|
|
|
-
|
|
|
-
|
|
|
11,890
|
|
|
||||||||||||||
30-89
days past due
|
|
|
|
|
2
|
|
|
45
|
|
|
43
|
|
|
26
|
|
|
13
|
|
|
12
|
|
|
|
|
|
-
|
|
|
-
|
|
|
141
|
|
|
||||||||||||||
90 days or more past due
|
|
|
|
|
-
|
|
|
2
|
|
|
3
|
|
|
3
|
|
|
1
|
|
|
2
|
|
|
|
|
|
-
|
|
|
-
|
|
|
11
|
|
|
||||||||||||||
Total performing
|
|
|
|
|
1,818
|
|
|
5,171
|
|
|
2,447
|
|
|
1,372
|
|
|
691
|
|
|
543
|
|
|
|
|
|
-
|
|
|
-
|
|
|
12,042
|
|
|
||||||||||||||
Nonperforming
|
|
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
|
|
|
-
|
|
|
-
|
|
|
8
|
|
|
||||||||||||||
Total indirect secured consumer loans
|
$
|
|
|
|
1,818
|
|
|
5,172
|
|
|
2,448
|
|
|
1,374
|
|
|
693
|
|
|
545
|
|
|
|
|
|
-
|
|
|
-
|
|
|
12,050
|
|
|
||||||||||||||
Credit card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Performing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current
|
$
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
2,305
|
|
|
-
|
|
|
2,305
|
|
|
||||||||||||||
30-89
days past due
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
41
|
|
|
-
|
|
|
41
|
|
|
||||||||||||||
90 days or more past due
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
42
|
|
|
-
|
|
|
42
|
|
|
||||||||||||||
Total performing
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
2,388
|
|
|
-
|
|
|
2,388
|
|
|
||||||||||||||
Nonperforming
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
29
|
|
|
-
|
|
|
29
|
|
|
||||||||||||||
Total credit card
|
$
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
2,417
|
|
|
-
|
|
|
2,417
|
|
|
||||||||||||||
Other consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Performing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current
|
$
|
|
|
|
328
|
|
|
864
|
|
|
616
|
|
|
253
|
|
|
47
|
|
|
71
|
|
|
|
|
|
707
|
|
|
-
|
|
|
2,886
|
|
|
||||||||||||||
30-89
days past due
|
|
|
|
|
-
|
|
|
6
|
|
|
7
|
|
|
4
|
|
|
1
|
|
|
1
|
|
|
|
|
|
3
|
|
|
-
|
|
|
22
|
|
|
||||||||||||||
90 days or more past due
|
|
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
||||||||||||||
Total performing
|
|
|
|
|
328
|
|
|
871
|
|
|
623
|
|
|
257
|
|
|
48
|
|
|
72
|
|
|
|
|
|
710
|
|
|
-
|
|
|
2,909
|
|
|
||||||||||||||
Nonperforming
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
2
|
|
|
-
|
|
|
2
|
|
|
||||||||||||||
Total other consumer loans
|
$
|
|
|
|
328
|
|
|
871
|
|
|
623
|
|
|
257
|
|
|
48
|
|
|
72
|
|
|
|
|
|
712
|
|
|
-
|
|
|
2,911
|
|
|
||||||||||||||
Total consumer loans
(b)
|
$
|
|
|
|
2,846
|
|
|
8,826
|
|
|
4,446
|
|
|
3,974
|
|
|
3,841
|
|
|
7,089
|
|
|
|
|
|
8,826
|
|
|
9
|
|
|
39,857
|
|
|
(a)
|
Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of March 31, 2020, $79 of these loans were
30-89
days past due and $269 were 90 days or more past due. The Bancorp recognized $1 of losses during the three months ended March 31, 2020 due to claim denials and curtailments associated with these insured or guaranteed loans.
|
(b)
|
Excludes $185 of residential mort
gage loans measured at fair value at March 31, 2020.
|
December 31, 2019 ($ in millions)
|
Performing
|
Nonperforming
|
||||||
Residential mortgage loans
(a)
|
$ |
16,450
|
91
|
|||||
Home equity
|
5,989
|
94
|
||||||
Indirect secured consumer loans
|
11,531
|
7
|
||||||
Credit card
|
2,505
|
27
|
||||||
Other consumer loans
|
2,721
|
2
|
||||||
Total residential mortgage and consumer loans
(a)
|
$ |
39,196
|
221
|
(a)
|
Excludes $183 of residential mortgage loans measured at fair value at December 31, 2019.
|
|
|
Current
|
Past Due
|
|
90 Days Past
|
|||||||||||||||||||||||
|
|
Loans and
|
30-89
|
90 Days
|
Total
|
Total Loans
|
Due and Still
|
|||||||||||||||||||||
As of December 31, 2019 ($ in millions)
|
|
Leases
(b)(c)
|
Days
(c)
|
or More
(c)
|
Past Due
|
and Leases
|
Accruing
|
|||||||||||||||||||||
Residential mortgage loans
(a)
|
|
16,372
|
27
|
142
|
169
|
16,541
|
50
|
|||||||||||||||||||||
Consumer loans:
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Home equity
|
|
5,965
|
61
|
57
|
118
|
6,083
|
1
|
|||||||||||||||||||||
Indirect secured consumer loans
|
|
11,389
|
132
|
17
|
149
|
11,538
|
10
|
|||||||||||||||||||||
Credit card
|
|
2,434
|
50
|
48
|
98
|
2,532
|
42
|
|||||||||||||||||||||
Other consumer loans
|
|
2,702
|
18
|
3
|
21
|
2,723
|
1
|
|||||||||||||||||||||
Total portfolio consumer loans
(a)
|
$ |
|
38,862
|
288
|
267
|
555
|
39,417
|
104
|
(a)
|
Excludes $183 of residential mortgage loans measured at fair value at December 31, 2019.
|
(b)
|
Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2019, $94 of these loans were
30-89
days past due and $261 were 90 days or more past due. The Bancorp recognized an immaterial amount of losses during the three months ended March 31, 2019 due to claim denials and curtailments associated with these insured or guaranteed loans.
|
(c)
|
Includes accrual and
nonaccrua
l loans and leases.
|
As of March 31, 2020 ($ in millions)
|
|
|
|
|
Amortized Cost Basis
|
|
||
Commercial loans and leases:
|
|
|
||||||
Commercial and industrial loans
|
|
$
|
392
|
|
||||
Commercial mortgage owner-occupied loans
|
|
43
|
||||||
Commercial mortgage nonowner-occupied loans
|
|
88
|
||||||
Commercial construction loans
|
|
1
|
||||||
Commercial leases
|
|
19
|
||||||
Total commercial loans and leases
|
|
543
|
||||||
Residential mortgage loans
|
|
112
|
||||||
Consumer loans:
|
|
|
||||||
Home equity
|
|
54
|
||||||
Other consumer loans
|
|
1
|
||||||
Total consumer loans
|
|
55
|
||||||
Total loans and leases
|
|
$
|
710
|
As of March 31, 2020 ($ in millions)
|
|
|
|
|
|
|
|
|
For the three months ended
March 31, 2020 |
|
||||||||||
|
|
With an ALLL
|
No Related
ALLL |
Total
|
Interest Income Recognized
|
|||||||||||||||
Commercial loans and leases:
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial loans
|
$ |
|
|
225
|
|
|
108
|
|
|
333
|
|
|
1
|
|
||||||
Commercial mortgage owner-occupied loans
|
|
|
17
|
|
|
15
|
|
|
32
|
|
|
-
|
|
|||||||
Commercial mortgage nonowner-occupied loans
|
|
|
60
|
|
|
-
|
|
|
60
|
|
|
-
|
|
|||||||
Commercial construction loans
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|||||||
Commercial leases
|
|
|
17
|
|
|
2
|
|
|
19
|
|
|
1
|
|
|||||||
Total nonaccrual portfolio commercial loans and leases
|
|
|
320
|
|
|
125
|
|
|
445
|
|
|
2
|
|
|||||||
Residential mortgage loans
|
|
|
28
|
|
|
45
|
|
|
73
|
|
|
8
|
|
|||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Home equity
|
|
|
73
|
|
|
17
|
|
|
90
|
|
|
3
|
|
|||||||
Indirect secured consumer loans
|
|
|
8
|
|
|
-
|
|
|
8
|
|
|
-
|
|
|||||||
Credit card
|
|
|
29
|
|
|
-
|
|
|
29
|
|
|
1
|
|
|||||||
Other consumer loans
|
|
|
2
|
|
|
-
|
|
|
2
|
|
|
-
|
|
|||||||
Total nonaccrual portfolio consumer loans
|
|
|
112
|
|
|
17
|
|
|
129
|
|
|
4
|
|
|||||||
Total nonaccrual portfolio loans and leases
(a)(b)
|
$ |
|
|
460
|
|
|
187
|
|
|
647
|
|
|
14
|
|
||||||
OREO and other repossessed property
|
|
|
-
|
|
|
62
|
|
|
62
|
|
|
-
|
|
|||||||
Total nonperforming portfolio assets
(a)(b)
|
$ |
|
|
460
|
|
|
249
|
|
|
709
|
|
|
14
|
|
(a)
|
Excludes $1 of nonaccrual loans and leases held for sale.
|
(b)
|
Includes $21 of nonaccrual government insured commercial loans whose repayments are insured by the SBA of which $12 are restructured nonaccrual government insured commercial loans.
|
($ in millions)
|
December 31, 2019
|
|||
Commercial loans and leases:
|
|
|||
Commercial and industrial loans
|
$ |
338
|
||
Commercial mortgage owner-occupied loans
|
29
|
|||
Commercial mortgage nonowner-occupied loans
|
1
|
|||
Commercial construction loans
|
1
|
|||
Commercial leases
|
28
|
|||
Total nonaccrual portfolio commercial loans and leases
|
397
|
|||
Residential mortgage loans
|
91
|
|||
Consumer loans:
|
|
|||
Home equity
|
94
|
|||
Indirect secured consumer loans
|
7
|
|||
Credit card
|
27
|
|||
Other consumer loans
|
2
|
|||
Total nonaccrual portfolio consumer loans
|
130
|
|||
Total nonaccrual portfolio loans and leases
(a)(b)
|
$ |
618
|
||
OREO and other repossessed property
|
62
|
|||
Total nonperforming portfolio assets
(a)(b)
|
$ |
680
|
(a)
|
Excludes $7 of nonaccrual loans and leases held for sale.
|
(b)
|
Includes $16 of
nona
ccrual government insured commercial loans whose repayments are insured by the SBA of which $11 are restructured nonaccrual government insured commercial loans.
|
March 31, 2020 ($ in millions)
(a)
|
Number of Loans
Modified in a TDR During the Period
(b)
|
Amortized Cost Basis
of Loans Modified in a TDR During the Period |
Increase
(Decrease) to ALLL Upon Modification |
Charge-offs
Recognized Upon Modification |
||||||||||||
Commercial loans:
|
|
|
|
|
||||||||||||
Commercial and industrial loans
|
|
30
|
|
|
$ 69
|
|
|
10
|
|
|
-
|
|
||||
Commercial mortgage owner-occupied loans
|
|
11
|
|
|
7
|
|
|
-
|
|
|
-
|
|
||||
Commercial mortgage nonowner-occupied loans
|
|
3
|
|
|
8
|
|
|
-
|
|
|
-
|
|
||||
Commercial construction
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
||||
Residential mortgage loans
|
|
184
|
|
|
24
|
|
|
-
|
|
|
-
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Home equity
|
|
21
|
|
|
2
|
|
|
(1)
|
|
|
-
|
|
||||
Indirect secured consumer loans
|
|
22
|
|
|
-
|
|
|
-
|
|
|
-
|
|
||||
Credit card
|
|
1,884
|
|
|
10
|
|
|
4
|
|
|
-
|
|
||||
Total portfolio loans
|
|
2,156
|
|
|
$ 120
|
|
|
13
|
|
|
-
|
|
(a)
|
Excludes all loans and leases held for sale.
|
(b)
|
Represents number
of loans post-modification and excludes loans previously modified in a TDR.
|
March 31, 2019 ($ in millions)
(a)
|
Number of Loans
Modified in a TDR During the Period
(b)
|
Recorded Investment
in Loans Modified in a TDR During the Period |
(Decrease)
Increase to ALLL Upon Modification |
Charge-offs
Recognized Upon Modification |
||||||||||||
Commercial loans:
|
|
|
|
|
||||||||||||
Commercial and industrial loans
|
13
|
$ 34
|
(5)
|
-
|
||||||||||||
Commercial mortgage owner-occupied loans
|
3
|
4
|
-
|
-
|
||||||||||||
Residential mortgage loans
|
136
|
18
|
-
|
-
|
||||||||||||
Consumer loans:
|
|
|
|
|
||||||||||||
Home equity
|
21
|
1
|
-
|
-
|
||||||||||||
Indirect secured consumer loans
|
29
|
-
|
-
|
-
|
||||||||||||
Credit card
|
1,409
|
8
|
2
|
1
|
||||||||||||
Total portfolio loans
|
1,611
|
$ 65
|
(3)
|
1
|
(a)
|
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
|
(b)
|
Represents number of loans
post-modification and excludes loans previously modified in a TDR.
|
March 31, 2020 ($ in millions)
(a)
|
Number of
Contracts |
|
|
Amortized
Cost |
|
|||||||||||||||
Commercial loans:
|
|
|
|
|
|
|||||||||||||||
Commercial mortgage owner-occupied loans
|
|
2
|
|
|
$
|
|
|
|
1
|
|
|
|||||||||
Commercial mortgage nonowner-occupied loans
|
|
1
|
|
|
|
|
|
|
5
|
|
|
|||||||||
Residential mortgage loans
|
|
47
|
|
|
|
|
|
|
6
|
|
|
|||||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Home equity
|
|
1
|
|
|
|
|
|
|
-
|
|
|
|||||||||
Indirect secured consumer loans
|
|
3
|
|
|
|
|
|
|
-
|
|
|
|||||||||
Credit card
|
|
201
|
|
|
|
|
|
|
1
|
|
|
|||||||||
Total portfolio loans
|
|
255
|
|
|
$
|
|
|
|
13
|
|
|
(a)
|
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
|
March 31, 2019 ($ in millions)
(a)
|
Number of
Contracts |
|
|
Recorded
Investment |
|
|||||||||||||||
Commercial loans:
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial loans
|
2
|
|
$ |
|
16
|
|
||||||||||||||
Residential mortgage loans
|
76
|
|
|
12
|
|
|||||||||||||||
Consumer loans:
|
|
|
|
|
|
|||||||||||||||
Home equity
|
4
|
|
|
-
|
|
|||||||||||||||
Credit card
|
283
|
|
|
2
|
|
|||||||||||||||
Total portfolio loans
|
365
|
|
$ |
|
30
|
|
(a)
|
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
|
|
Number of Loans
|
Principal Balance
of Loans |
Balances of Accounts that were Past
Due Prior to Placement
into Programs
|
|||||||||||||
March 31, 2020 ($ in millions)
|
Placed into Programs
|
Placed into Programs
|
30-89
Days
|
90 Days or More
|
||||||||||||
Commercial loans:
|
|
|
|
|
||||||||||||
Commercial and industrial loans
|
402
|
$ |
40
|
-
|
-
|
|||||||||||
Commercial mortgage owner-occupied loans
|
1
|
-
|
-
|
-
|
||||||||||||
Commercial mortgage nonowner-occupied loans
|
69
|
32
|
-
|
-
|
||||||||||||
Residential mortgage loans
|
1,592
|
361
|
32
|
35
|
||||||||||||
Consumer loans:
|
|
|
|
|
||||||||||||
Home equity
|
240
|
22
|
-
|
-
|
||||||||||||
Indirect secured consumer loans
|
5,384
|
114
|
-
|
-
|
||||||||||||
Credit card
|
4,673
|
28
|
3
|
1
|
||||||||||||
Other consumer loans
|
2,353
|
30
|
1
|
-
|
||||||||||||
Total portfolio loans
|
14,714
|
$ |
627
|
36
|
36
|
($ in millions)
|
|
|
March 31, 2020
|
|
|
|
December 31, 2019
|
|||||||||
Land and improvements
(a)
|
$
|
|
|
|
634
|
|
|
|
|
639
|
||||||
Buildings
(a)
|
|
|
|
|
1,564
|
|
|
|
|
1,575
|
||||||
Equipment
|
|
|
|
|
2,151
|
|
|
|
|
2,126
|
||||||
Leasehold improvements
|
|
|
|
|
438
|
|
|
|
|
432
|
||||||
Construction in progress
(a)
|
|
|
|
|
92
|
|
|
|
|
85
|
||||||
Bank premises and equipment held for sale:
|
|
|
|
|
|
|
|
|
|
|
||||||
Land and improvements
|
|
|
15
|
|
|
8
|
||||||||||
Buildings
|
|
|
20
|
|
|
18
|
||||||||||
Equipment
|
|
|
1
|
|
|
1
|
||||||||||
Accumulated depreciation and amortization
|
|
|
(2,906
|
)
|
|
(2,889
|
) | |||||||||
Total bank premises and equipment
|
$
|
|
|
|
2,009
|
|
|
1,995
|
(a)
|
At March 31, 2020 and December 31, 2019, land and improvements, buildings and construction in progress included $53 and $51, respectively, associated with parcels of undeveloped land intended for future branch expansion.
|
As of March 31, 2020 ($ in millions)
|
Undiscounted Cash
Flows
|
|||
Remainder of 2020
|
$ |
114
|
||
2021
|
125
|
|||
2022
|
97
|
|||
2023
|
70
|
|||
2024
|
41
|
|||
2025
|
25
|
|||
Thereafter
|
40
|
|||
Total operating lease payments
|
$ |
512
|
($ in millions)
|
Condensed Consolidated Balance Sheets Caption
|
March 31, 2020
|
|
December 31, 2019
|
||||||
Assets
|
|
|
|
|||||||
Operating lease
right-of-use
assets
|
Other assets
|
$
|
474
|
|
473
|
|||||
Finance lease
right-of-use
assets
|
Bank premises and equipment
|
|
45
|
|
34
|
|||||
Total
right-of-use
assets
(a)
|
|
$
|
519
|
|
507
|
|||||
Liabilities
|
|
|
|
|
|
|||||
Operating lease liabilities
|
Accrued taxes, interest and expenses
|
$
|
553
|
|
555
|
|||||
Finance lease liabilities
|
Long-term debt
|
|
46
|
|
35
|
|||||
Total lease liabilities
|
|
$
|
599
|
|
590
|
(a)
|
Operating and finance lease
right-of-use
assets are recorded net of accumulated amortization of $93 and $28 as of March 31, 2020, respectively and $75 and $27 as of December 31, 2019, respectively.
|
($ in millions)
|
Condensed Consolidated Statements of Income Caption
|
|
March 31, 2020
|
|
March 31, 2019
|
|||||
Lease costs:
|
|
|
|
|||||||
Amortization of
right-of-use
assets
|
Net occupancy and equipment expense
|
$
|
1
|
|
1
|
|||||
Interest on lease liabilities
|
Interest on long-term debt
|
|
1
|
|
-
|
|||||
Total finance lease costs
|
|
$
|
2
|
|
1
|
|||||
Operating lease cost
|
Net occupancy expense
|
$
|
24
|
|
22
|
|||||
Short-term lease cost
|
Net occupancy expense
|
|
1
|
|
-
|
|||||
Variable lease cost
|
Net occupancy expense
|
|
7
|
|
8
|
|||||
Sublease income
|
Net occupancy expense
|
|
(1
|
)
|
(1
|
) | ||||
Total operating lease costs
|
|
$
|
31
|
|
29
|
|||||
Total lease costs
|
|
$
|
33
|
|
30
|
As of March 31, 2020 ($ in millions)
|
Operating
Leases |
Finance
Leases |
Total
|
|
||||||||||||
Remainder of 2020
|
$ |
67
|
5
|
72
|
|
|||||||||||
2021
|
82
|
6
|
88
|
|
||||||||||||
2022
|
78
|
6
|
84
|
|
||||||||||||
2023
|
69
|
2
|
71
|
|
||||||||||||
2024
|
61
|
3
|
64
|
|
||||||||||||
2025
|
54
|
3
|
57
|
|
||||||||||||
Thereafter
|
236
|
38
|
274
|
|
||||||||||||
Total undiscounted cash flows
|
$ |
647
|
63
|
710
|
|
|||||||||||
Less: Difference between undiscounted cash flows and discounted cash flows
|
94
|
17
|
111
|
|
||||||||||||
Present value of lease liabilities
|
$ |
553
|
46
|
599
|
|
|
March 31, 2020
|
|
||||||
Weighted-average remaining lease term (years):
|
|
|
||||||
Operating leases
|
9.46
|
|
||||||
Finance leases
|
15.92
|
|
||||||
Weighted-average discount rate:
|
|
|
||||||
Operating leases
|
3.15
|
% |
|
|||||
Finance leases
|
4.06
|
|
($ in millions)
|
March 31, 2020
|
|
March 31, 2019
|
|
||||||||
Cash paid for amounts included in the measurement of lease liabilities:
(a)
|
|
|
|
|||||||||
Operating cash flows from operating leases
|
$
|
24
|
|
21
|
|
|||||||
Financing cash flows from finance leases
|
|
1
|
|
1
|
|
(a)
|
The cash flows relate
d to the short-term and variable lease payments are not included in the amounts in the table as they were not included in the measurement of lease liabilities.
|
($ in millions)
|
Commercial
Banking
|
Branch
Banking
|
Consumer
Lending
|
Wealth
and Asset
Management
|
General
Corporate
and Other
|
Total
|
|
|||||||||||||||||||||
Goodwill
|
$ |
1,380
|
1,655
|
215
|
193
|
-
|
3,443
|
|
||||||||||||||||||||
Accumulated impairment losses
|
(750
|
) |
-
|
(215
|
) |
-
|
-
|
(965
|
) |
|
||||||||||||||||||
Net carrying value as of December 31, 2018
|
$ |
630
|
1,655
|
-
|
193
|
-
|
2,478
|
|
||||||||||||||||||||
Acquisition activity
|
1,324
|
391
|
-
|
62
|
-
|
1,777
|
|
|||||||||||||||||||||
Sale of business
|
-
|
-
|
-
|
(3
|
) |
-
|
(3
|
) |
|
|||||||||||||||||||
Net carrying value as of December 31, 2019
|
$
|
1,954
|
|
|
2,046
|
|
|
-
|
|
|
252
|
|
|
-
|
|
|
4,252
|
|
|
|
|
|||||||
Acquisition activity
|
|
7
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
9
|
|
|
|
|
|||||||
Net carrying value as of March 31, 2020
|
$
|
1,961
|
|
|
2,047
|
|
|
-
|
|
|
253
|
|
|
-
|
|
|
4,261
|
|
|
|
|
($ in millions)
|
Gross Carrying
Amount |
Accumulated
Amortization |
Net Carrying
Amount |
|
||||||||||||
As of March 31, 2020
|
|
|
|
|
||||||||||||
Core deposit intangibles
|
$
|
229
|
|
|
(83
|
)
|
|
146
|
|
|
|
|
||||
Customer relationships
|
|
29
|
|
|
(6
|
)
|
|
23
|
|
|
|
|
||||
Operating leases
|
|
21
|
|
|
(11
|
)
|
|
10
|
|
|
|
|
||||
Non-compete
agreements
|
|
3
|
|
|
(1
|
)
|
|
2
|
|
|
|
|
||||
Other
|
|
4
|
|
|
(1
|
)
|
|
3
|
|
|
|
|
||||
Total intangible assets
|
$
|
286
|
|
|
(102
|
)
|
|
184
|
|
|
|
|
||||
As of December 31, 2019
|
|
|
|
|
||||||||||||
Core deposit intangibles
|
$ |
229
|
(70
|
) |
159
|
|
||||||||||
Customer relationships
|
29
|
(6
|
) |
23
|
|
|||||||||||
Operating leases
|
23
|
(9
|
) |
14
|
|
|||||||||||
Non-compete
agreements
|
13
|
(11
|
) |
2
|
|
|||||||||||
Other
|
4
|
(1
|
) |
3
|
|
|||||||||||
Total intangible assets
|
$ |
298
|
(97
|
) |
201
|
|
($ in millions)
|
Total
|
|
||||||
Remainder of 2020
|
$ |
40
|
|
|||||
2021
|
43
|
|
||||||
2022
|
34
|
|
||||||
2023
|
24
|
|
||||||
2024
|
16
|
|
($ in millions)
|
March 31, 2020
|
|
December 31, 2019
|
|
||||||||
Assets:
|
|
|
|
|||||||||
Other short-term investments
|
$
|
69
|
|
74
|
|
|||||||
Indirect secured consumer loans
|
|
1,185
|
|
1,354
|
|
|||||||
ALLL
|
|
(14
|
)
|
(7
|
) |
|
||||||
Other assets
|
|
6
|
|
8
|
|
|||||||
Total assets
|
$
|
1,246
|
|
1,429
|
|
|||||||
Liabilities:
|
|
|
|
|
|
|||||||
Other liabilities
|
$
|
3
|
|
2
|
|
|||||||
Long-term debt
|
|
1,083
|
|
1,253
|
|
|||||||
Total liabilities
|
$
|
1,086
|
|
1,255
|
|
March 31, 2020 ($ in millions)
|
Total
Assets |
|
Total
Liabilities |
|
Maximum
Exposure |
|
||||||||||||||||||
CDC investments
|
$
|
1,416
|
|
|
|
|
|
411
|
|
|
|
|
|
1,416
|
|
|
|
|
||||||
Private equity investments
|
|
89
|
|
|
|
|
|
-
|
|
|
|
|
|
161
|
|
|
|
|
||||||
Loans provided to VIEs
|
|
2,891
|
|
|
|
|
|
-
|
|
|
|
|
|
3,987
|
|
|
|
|
||||||
Lease pool entities
|
|
78
|
|
|
|
|
|
-
|
|
|
|
|
|
78
|
|
|
|
|
December 31, 2019 ($ in millions)
|
Total
Assets |
|
Total
Liabilities |
|
Maximum
Exposure |
|
||||||||||||||||||
CDC investments
|
$ |
1,435
|
|
428
|
|
1,435
|
|
|||||||||||||||||
Private equity investments
|
89
|
|
-
|
|
164
|
|
||||||||||||||||||
Loans provided to VIEs
|
2,715
|
|
-
|
|
4,083
|
|
||||||||||||||||||
Lease pool entities
|
74
|
|
-
|
|
74
|
|
($ in millions)
|
Condensed Consolidated
Statements of Income Caption
(a)
|
For the three months ended March 31,
|
||||||||
|
2020
|
|
2019
|
|||||||
Proportional amortization
|
Applicable income tax expense
|
$
|
5
|
|
37
|
|||||
Tax credits and other benefits
|
Applicable income tax expense
|
|
(6
|
)
|
(44
|
) |
(a)
|
The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during both the three months ended March 31, 2020 and 2019.
|
|
For the three months ended
March 31,
|
|||||||
($ in millions)
|
2020
|
|
2019
|
|||||
Residential mortgage loan sales
(a)
|
$
|
2,955
|
|
1,162
|
||||
Origination fees and gains on loan sales
|
|
81
|
|
25
|
||||
Gross mortgage servicing fees
|
|
67
|
|
55
|
(a)
|
Represents the unpaid principal balance at the time of the sale.
|
($ in millions)
|
2020
|
|
2019
|
|||||
Balance, beginning of period
|
$
|
993
|
|
938
|
||||
Servicing rights originated
|
|
44
|
|
24
|
||||
Servicing rights purchased
|
|
26
|
|
-
|
||||
Servicing rights obtained in acquisition
|
|
-
|
|
263
|
||||
Changes in fair value:
|
|
|
|
|
||||
Due to changes in inputs or assumptions
(a)
|
|
(331
|
)
|
(57
|
) | |||
Other changes in fair value
(b)
|
|
(47
|
)
|
(27
|
) | |||
Balance, end of period
|
$
|
685
|
|
1,141
|
(a)
|
Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates.
|
(b)
|
Primarily reflects changes due to c
ollection of contractual cash flows and the passage of time.
|
|
For the three months ended
March 31,
|
|||||||
($ in millions)
|
2020
|
|
2019
|
|||||
Securities gains, net -
non-qualifying
hedges on MSRs
|
$
|
3
|
|
3
|
||||
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio
(a)
|
|
350
|
|
60
|
||||
MSR fair value adjustment due to changes in inputs or assumptions
(a)
|
|
(331)
|
|
(57)
|
(a)
|
Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income.
|
|
|
March 31, 2020
|
|
March 31, 2019
|
||||||||||||||||||||||||||||||||
|
Rate
|
Weighted-
Average Life (in years) |
Prepayment
Speed
(annual)
|
OAS
(bps)
|
|
Weighted-
Average Life (in years) |
Prepayment
Speed
(annual)
|
OAS
(bps)
|
|
|||||||||||||||||||||||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
Servicing rights
|
Fixed
|
|
5.7
|
|
|
12.8
|
%
|
|
672
|
|
|
5.5
|
13.5
|
% |
490
|
|
||||||||||||||||||||
Servicing rights
|
Adjustable
|
|
2.9
|
|
|
27.1
|
|
|
708
|
|
|
-
|
-
|
-
|
|
|
|
|
|
Prepayment
Speed Assumption
|
OAS
Spread Assumption
|
|||||||||||||||||||||||||||||||||||
|
|
Fair
|
Weighted-
Average Life
(in years)
|
|
Impact of Adverse Change
on Fair Value |
OAS
|
Impact of
Adverse Change on Fair Value |
|||||||||||||||||||||||||||||||||
($ in millions)
(a)
|
Rate
|
Value
|
Rate
|
10%
|
20%
|
50%
|
(bps)
|
10%
|
20%
|
|||||||||||||||||||||||||||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Servicing rights
|
Fixed
|
$ |
677
|
3.9
|
19.5 %
|
$ |
(24
|
) |
(46
|
) |
(105
|
) |
926
|
$ |
(18)
|
(34)
|
||||||||||||||||||||||||
Servicing rights
|
Adjustable
|
8
|
3.3
|
23.8
|
(1
|
) |
(1
|
) |
(2
|
) |
932
|
-
|
-
|
(a)
|
The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial.
|
|
|
Fair Value
|
||||||||||
March 31, 2020 ($ in millions)
|
Notional
Amount |
Derivative
Assets |
Derivative
Liabilities |
|||||||||
Derivatives Designated as Qualifying Hedging Instruments:
|
|
|
|
|||||||||
Fair value hedges:
|
|
|
|
|||||||||
Interest rate swaps related to long-term debt
|
$
|
2,705
|
|
|
616
|
|
|
-
|
|
|||
Total fair value hedges
|
|
|
|
|
616
|
|
|
-
|
|
|||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|||
Interest rate floors related to C&I loans
|
|
3,000
|
|
|
272
|
|
|
-
|
|
|||
Interest rate swaps related to C&I loans
|
|
8,000
|
|
|
-
|
|
|
8
|
|
|||
Total cash flow hedges
|
|
|
|
|
272
|
|
|
8
|
|
|||
Total derivatives designated as qualifying hedging instruments
|
|
|
|
|
888
|
|
|
8
|
|
|||
Derivatives Not Designated as Qualifying Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
|||
Free-standing derivatives - risk management and other business purposes:
|
|
|
|
|
|
|
|
|
|
|||
Interest rate contracts related to MSR portfolio
|
|
6,220
|
|
|
287
|
|
|
4
|
|
|||
Forward contracts related to residential mortgage loans held for sale
|
|
3,987
|
|
|
11
|
|
|
72
|
|
|||
Swap associated with the sale of Visa, Inc. Class B Shares
|
|
2,643
|
|
|
-
|
|
|
171
|
|
|||
Foreign exchange contracts
|
|
198
|
|
|
8
|
|
|
-
|
|
|||
Commercial loan trading
|
|
21
|
|
|
1
|
|
|
1
|
|
|||
Total free-standing derivatives - risk management and other business purposes
|
|
|
|
|
307
|
|
|
248
|
|
|||
Free-standing derivatives - customer accommodation:
|
|
|
|
|
|
|
|
|
|
|||
Interest rate contracts
(a)
|
|
76,134
|
|
|
1,483
|
|
|
299
|
|
|||
Interest rate lock commitments
|
|
1,941
|
|
|
69
|
|
|
-
|
|
|||
Commodity contracts
|
|
8,209
|
|
|
1,016
|
|
|
1,020
|
|
|||
TBA securities
|
|
22
|
|
|
-
|
|
|
-
|
|
|||
Foreign exchange contracts
|
|
13,892
|
|
|
337
|
|
|
291
|
|
|||
Total free-standing derivatives - customer accommodation
|
|
|
|
|
2,905
|
|
|
1,610
|
|
|||
Total derivatives not designated as qualifying hedging instruments
|
|
|
|
|
3,212
|
|
|
1,858
|
|
|||
Total
|
|
|
|
$
|
4,100
|
|
|
1,866
|
|
|||
(a)
|
Derivative assets and liabilities are presented net of variation margin of $50 and $1,288, respectively.
|
|
|
Fair Value
|
||||||||||
December 31, 2019 ($ in millions)
|
Notional
Amount |
Derivative
Assets |
Derivative
Liabilities |
|||||||||
Derivatives Designated as Qualifying Hedging Instruments:
|
|
|
|
|||||||||
Fair value hedges:
|
|
|
|
|||||||||
Interest rate swaps related to long-term debt
|
$ |
2,705
|
393
|
-
|
||||||||
Total fair value hedges
|
|
393
|
-
|
|||||||||
Cash flow hedges:
|
|
|
|
|||||||||
Interest rate floors related to C&I loans
|
3,000
|
115
|
-
|
|||||||||
Interest rate swaps related to C&I loans
|
8,000
|
-
|
2
|
|||||||||
Total cash flow hedges
|
|
115
|
2
|
|||||||||
Total derivatives designated as qualifying hedging instruments
|
|
508
|
2
|
|||||||||
Derivatives Not Designated as Qualifying Hedging Instruments:
|
|
|
|
|||||||||
Free-standing derivatives - risk management and other business purposes:
|
|
|
|
|||||||||
Interest rate contracts related to MSR portfolio
|
6,420
|
131
|
2
|
|||||||||
Forward contracts related to residential mortgage loans held for sale
|
2,901
|
1
|
5
|
|||||||||
Swap associated with the sale of Visa, Inc. Class B Shares
|
3,082
|
-
|
163
|
|||||||||
Foreign exchange contracts
|
195
|
-
|
5
|
|||||||||
Total free-standing derivatives - risk management and other business purposes
|
|
132
|
175
|
|||||||||
Free-standing derivatives - customer accommodation:
|
|
|
|
|||||||||
Interest rate contracts
(a)
|
73,327
|
579
|
148
|
|||||||||
Interest rate lock commitments
|
907
|
18
|
-
|
|||||||||
Commodity contracts
|
8,525
|
271
|
270
|
|||||||||
TBA securities
|
50
|
-
|
-
|
|||||||||
Foreign exchange contracts
|
14,144
|
165
|
146
|
|||||||||
Total free-standing derivatives - customer accommodation
|
|
1,033
|
564
|
|||||||||
Total derivatives not designated as qualifying hedging instruments
|
|
1,165
|
739
|
|||||||||
Total
|
|
$ |
1,673
|
741
|
||||||||
(a)
|
Derivative assets and liabilities are presented net of variation margin of $40 and $493, respectively.
|
|
Condensed Consolidated
Statements of Income Caption |
For the three months
ended March 31, |
||||||||
($ in millions)
|
2020
|
|
2019
|
|||||||
Change in fair value of interest rate swaps hedging long-term debt
|
Interest on
long-term
debt
|
|
$ 226
|
|
54
|
|||||
Change in fair value of hedged long-term debt attributable to the risk being hedged
|
Interest on
long-term
debt
|
|
(226)
|
|
(53)
|
|||||
($ in millions)
|
Condensed Consolidated
Balance Sheets Caption |
March 31, 2020
|
||||
Carrying amount of the hedged items
|
Long-term debt
|
$ |
3,320
|
|||
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items
|
Long-term debt
|
628
|
||||
|
For the three months ended
March 31, |
|||||||
($ in millions)
|
2020
|
|
2019
|
|||||
Amount of
pre-tax
net gains recognized in OCI
|
$
|
541
|
|
110
|
||||
Amount of
pre-tax
net gains (losses) reclassified from OCI into net income
|
|
32
|
|
(2)
|
||||
|
Condensed Consolidated
Statements of Income Caption |
For the three months
ended March 31, |
||||||||
($ in millions)
|
2020
|
|
2019
|
|||||||
Interest rate contracts:
|
|
|
|
|
|
|||||
Forward contracts related to residential mortgage loans held for sale
|
Mortgage banking net revenue
|
$
|
(58
|
)
|
-
|
|||||
Interest rate contracts related to MSR portfolio
|
Mortgage banking net revenue
|
|
350
|
|
60
|
|||||
Foreign exchange contracts:
|
|
|
|
|
|
|||||
Foreign exchange contracts for risk management purposes
|
Other noninterest income
|
|
13
|
|
(2
|
) | ||||
Equity contracts:
|
|
|
|
|
|
|||||
Swap associated with sale of Visa, Inc. Class B Shares
|
Other noninterest income
|
|
(22
|
)
|
(31
|
) | ||||
($ in millions)
|
March 31,
2020 |
|
December 31,
2019 |
|||||
Pass
|
$
|
3,681
|
|
3,841
|
||||
Special mention
|
|
9
|
|
86
|
||||
Substandard
|
|
3
|
|
16
|
||||
Total
|
$
|
3,693
|
|
3,943
|
||||
|
Condensed Consolidated
Statements of Income Caption
|
For the three months
ended March 31, |
||||||||
($ in millions)
|
2020
|
|
2019
|
|||||||
Interest rate contracts:
|
|
|
|
|
|
|||||
Interest rate contracts for customers (contract revenue)
|
Commercial banking revenue
|
$
|
14
|
|
6
|
|||||
Interest rate contracts for customers (credit portion of fair value adjustment)
|
Other noninterest expense
|
|
(33
|
)
|
(7
|
) | ||||
Interest rate lock commitments
|
Mortgage banking net revenue
|
|
100
|
|
24
|
|||||
Commodity contracts:
|
|
|
|
|||||||
Commodity contracts for customers (contract revenue)
|
Commercial banking revenue
|
|
3
|
|
1
|
|||||
Commodity contracts for customers (credit portion of fair value adjustment)
|
Other noninterest expense
|
|
(1
|
)
|
-
|
|||||
Foreign exchange contracts:
|
|
|
|
|||||||
Foreign exchange contracts for customers (contract revenue)
|
Commercial banking revenue
|
|
13
|
|
12
|
|||||
Foreign exchange contracts for customers (contract revenue)
|
Other noninterest income
|
|
6
|
|
4
|
|||||
Foreign exchange contracts for customers (credit portion of fair value adjustment)
|
Other noninterest expense
|
|
(2
|
)
|
-
|
|||||
|
Gross Amount
Recognized in the Condensed Consolidated Balance Sheets
(a)
|
Gross Amounts Not Offset in the
Condensed Consolidated Balance Sheets |
|
|||||||||||||
As of March 31, 2020 ($ in millions)
|
Derivatives
|
Collateral
(b)
|
Net Amount
|
|||||||||||||
Assets:
|
|
|
|
|
||||||||||||
Derivatives
|
$
|
4,031
|
|
|
(915
|
)
|
|
(1,187
|
)
|
|
1,929
|
|
||||
Total assets
|
|
4,031
|
|
|
(915
|
)
|
|
(1,187
|
)
|
|
1,929
|
|
||||
Liabilities:
|
|
|
|
|
||||||||||||
Derivatives
|
|
1,866
|
|
|
(915
|
)
|
|
(119
|
)
|
|
832
|
|
||||
Total liabilities
|
$
|
1,866
|
|
|
(915
|
)
|
|
(119
|
)
|
|
832
|
|
||||
(a)
|
Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements.
|
(b)
|
Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excl
uded from this table.
|
|
Gross Amount
Recognized in the Condensed Consolidated Balance Sheets
(a)
|
Gross Amounts Not Offset in the
Condensed Consolidated Balance Sheets |
|
|||||||||||||
As of December 31, 2019 ($ in millions)
|
Derivatives
|
Collateral
(b)
|
Net Amount
|
|||||||||||||
Assets:
|
|
|
|
|
||||||||||||
Derivatives
|
$ |
1,655
|
(417
|
) |
(504
|
) |
734
|
|||||||||
Total assets
|
1,655
|
(417
|
) |
(504
|
) |
734
|
||||||||||
Liabilities:
|
|
|
|
|
||||||||||||
Derivatives
|
741
|
(417
|
) |
(97
|
) |
227
|
||||||||||
Total liabilities
|
$ |
741
|
(417
|
) |
(97
|
) |
227
|
|||||||||
(a)
|
Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements.
|
(b)
|
Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sh
eets were excluded from this table.
|
($ in millions)
|
March 31,
2020 |
|
December 31,
2019 |
|||||
FHLB advances
|
$
|
3,500
|
|
-
|
||||
Securities sold under repurchase agreements
|
|
595
|
|
469
|
||||
Derivative collateral
|
|
447
|
|
542
|
||||
Total other short-term borrowings
|
$
|
4,542
|
|
1,011
|
||||
($ in millions)
|
March 31,
2020 |
|
December 31,
2019 |
|||||
Commitments to extend credit
|
$
|
66,790
|
|
75,696
|
||||
Forward contracts related to residential mortgage loans held for sale
|
|
3,987
|
|
2,901
|
||||
Letters of credit
|
|
2,190
|
|
2,137
|
||||
Purchase obligations
|
|
136
|
|
113
|
||||
Capital expenditures
|
|
101
|
|
84
|
||||
Capital commitments for private equity investments
|
|
72
|
|
75
|
||||
($ in millions)
|
March 31,
2020 |
|
December 31,
2019 |
|||||
Pass
|
$
|
65,578
|
|
74,654
|
||||
Special mention
|
|
737
|
|
633
|
||||
Substandard
|
|
475
|
|
408
|
||||
Doubtful
|
|
-
|
|
1
|
||||
Total commitments to extend credit
|
$
|
66,790
|
|
75,696
|
||||
($ in millions)
|
|
|
||
Less than 1 year
(a)
|
$ |
1,137
|
||
1 - 5 years
(a)
|
1,047
|
|||
Over 5 years
|
6
|
|||
Total letters of credit
|
$ |
2,190
|
||
(a)
|
Includes $3 and $2 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively.
|
($ in millions)
|
March 31,
2020 |
|
December 31,
2019 |
|||||
Pass
|
$
|
2,045
|
|
2,005
|
||||
Special mention
|
|
30
|
|
20
|
||||
Substandard
|
|
115
|
|
111
|
||||
Doubtful
|
|
-
|
|
1
|
||||
Total letters of credit
|
$
|
2,190
|
|
2,137
|
||||
Period ($ in millions)
|
Visa
Funding Amount |
Bancorp Cash
Payment Amount |
|
|
||||||||
Q2 2010
|
$ |
500
|
20
|
|
||||||||
Q4 2010
|
800
|
35
|
|
|||||||||
Q2 2011
|
400
|
19
|
|
|||||||||
Q1 2012
|
1,565
|
75
|
|
|||||||||
Q3 2012
|
150
|
6
|
|
|||||||||
Q3 2014
|
450
|
18
|
|
|||||||||
Q2 2018
|
600
|
26
|
|
|||||||||
Q3 2019
|
300
|
12
|
|
|||||||||
|
Total OCI
|
Total AOCI
|
||||||||||||||||||||||
March 31, 2019 ($ in millions)
|
Pretax
Activity |
Tax
Effect |
Net
Activity |
Beginning
Balance |
Net
Activity |
Ending
Balance |
||||||||||||||||||
Unrealized holding gains on
available-for-sale
debt securities arising during period
|
$ 561
|
(131
|
) |
430
|
|
|
|
|||||||||||||||||
Reclassification adjustment for net losses on
available-for-sale
debt securities included in net income
|
1
|
-
|
1
|
|
|
|
||||||||||||||||||
Net unrealized gains on
available-for-sale
debt securities
|
562
|
(131
|
) |
431
|
(227
|
) |
431
|
204
|
||||||||||||||||
Unrealized holding gains on cash flow hedge derivatives arising during period
|
110
|
(23
|
) |
87
|
|
|
|
|||||||||||||||||
Reclassification adjustment for net losses on cash flow hedge derivatives included in net income
|
2
|
-
|
2
|
|
|
|
||||||||||||||||||
Net unrealized gains on cash flow hedge derivatives
|
112
|
(23
|
) |
89
|
160
|
89
|
249
|
|||||||||||||||||
Reclassification of amounts to net periodic benefit costs
|
1
|
-
|
1
|
|
|
|
||||||||||||||||||
Defined benefit pension plans, net
|
1
|
-
|
1
|
(45
|
) |
1
|
(44
|
) | ||||||||||||||||
Total
|
$ 675
|
(154
|
) |
521
|
(112
|
) |
521
|
409
|
(a)
|
This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 24 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form
10-K
for the year ended December 31, 2019 for further information.
|
(b)
|
Amounts in parentheses indicate redu
ctions to net income.
|
|
2020
|
2019
|
||||||||||||||||||||||
For the three months ended March 31,
(in millions, except per share data)
|
Income
|
Average
Shares |
Per Share
Amount |
Income
|
Average
Shares |
Per Share
Amount |
||||||||||||||||||
Earnings Per Share:
|
|
|
|
|
|
|
||||||||||||||||||
Net income available to common shareholders
|
$
|
29
|
|
|
|
|
|
|
|
$ |
760
|
|
|
|||||||||||
Less: Income allocated to participating securities
|
|
1
|
|
|
|
|
|
|
|
8
|
|
|
||||||||||||
Net income allocated to common shareholders
|
$
|
28
|
|
|
714
|
|
$
|
0.04
|
|
$ |
752
|
661
|
$ |
1.14
|
||||||||||
Earnings Per Diluted Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income available to common shareholders
|
$
|
29
|
|
|
|
|
|
|
|
$ |
760
|
|
|
|||||||||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stock-based awards
|
|
-
|
|
|
6
|
|
|
|
|
-
|
10
|
|
||||||||||||
Net income available to common shareholders
|
|
29
|
|
|
|
|
|
|
|
760
|
|
|
||||||||||||
plus assumed conversions
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less: Income allocated to participating securities
|
|
1
|
|
|
|
|
|
|
|
8
|
|
|
||||||||||||
Net income allocated to common shareholders plus assumed conversions
|
$
|
28
|
|
|
720
|
|
$
|
0.04
|
|
$ |
752
|
671
|
$ |
1.12
|
|
Fair Value Measurements Using
|
|
||||||||||||||
March 31, 2020 ($ in millions)
|
Level 1
|
Level 2
|
Level 3
|
Total Fair Value
|
||||||||||||
Assets:
|
|
|
|
|
||||||||||||
Available-for-sale
debt and other securities:
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agency securities
|
$
|
78
|
|
|
-
|
|
|
-
|
|
|
78
|
|
||||
Obligations of states and political subdivisions securities
|
|
-
|
|
|
17
|
|
|
-
|
|
|
17
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Agency residential mortgage-backed securities
|
|
-
|
|
|
14,144
|
|
|
-
|
|
|
14,144
|
|
||||
Agency commercial mortgage-backed securities
|
|
-
|
|
|
17,798
|
|
|
-
|
|
|
17,798
|
|
||||
Non-agency
commercial mortgage-backed securities
|
|
-
|
|
|
3,315
|
|
|
-
|
|
|
3,315
|
|
||||
Asset-backed securities and other debt securities
|
|
-
|
|
|
2,677
|
|
|
-
|
|
|
2,677
|
|
||||
Available-for-sale
debt and other securities
(a)
|
|
78
|
|
|
37,951
|
|
|
-
|
|
|
38,029
|
|
||||
Trading debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury and federal agency securities
|
|
49
|
|
|
1
|
|
|
-
|
|
|
50
|
|
||||
Obligations of states and political subdivisions securities
|
|
-
|
|
|
28
|
|
|
-
|
|
|
28
|
|
||||
Agency residential mortgage-backed securities
|
|
-
|
|
|
55
|
|
|
-
|
|
|
55
|
|
||||
Non-agency
residential mortgage-backed securities
|
|
-
|
|
|
4
|
|
|
-
|
|
|
4
|
|
||||
Asset-backed securities and other debt securities
|
|
-
|
|
|
296
|
|
|
-
|
|
|
296
|
|
||||
Trading debt securities
|
|
49
|
|
|
384
|
|
|
-
|
|
|
433
|
|
||||
Equity securities
|
|
450
|
|
|
9
|
|
|
-
|
|
|
459
|
|
||||
Residential mortgage loans held for sale
|
|
-
|
|
|
1,565
|
|
|
-
|
|
|
1,565
|
|
||||
Residential mortgage loans
(b)
|
|
-
|
|
|
-
|
|
|
185
|
|
|
185
|
|
||||
Commercial loans held for sale
|
|
-
|
|
|
8
|
|
|
-
|
|
|
8
|
|
||||
Servicing rights
|
|
-
|
|
|
-
|
|
|
685
|
|
|
685
|
|
||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate contracts
|
|
11
|
|
|
2,659
|
|
|
69
|
|
|
2,739
|
|
||||
Foreign exchange contracts
|
|
-
|
|
|
345
|
|
|
-
|
|
|
345
|
|
||||
Commodity contracts
|
|
283
|
|
|
733
|
|
|
-
|
|
|
1,016
|
|
||||
Derivative assets
(c)
|
|
294
|
|
|
3,737
|
|
|
69
|
|
|
4,100
|
|
||||
Total assets
|
$
|
871
|
|
|
43,654
|
|
|
939
|
|
|
45,464
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate contracts
|
$
|
72
|
|
|
304
|
|
|
8
|
|
|
384
|
|
||||
Foreign exchange contracts
|
|
-
|
|
|
291
|
|
|
-
|
|
|
291
|
|
||||
Equity contracts
|
|
-
|
|
|
-
|
|
|
171
|
|
|
171
|
|
||||
Commodity contracts
|
|
39
|
|
|
981
|
|
|
-
|
|
|
1,020
|
|
||||
Derivative liabilities
(d)
|
|
111
|
|
|
1,576
|
|
|
179
|
|
|
1,866
|
|
||||
Short positions:
(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury and federal agency securities
|
|
75
|
|
|
-
|
|
|
-
|
|
|
75
|
|
||||
Agency residential mortgage-backed securities
|
|
-
|
|
|
3
|
|
|
-
|
|
|
3
|
|
||||
Asset-backed securities and other debt securities
|
|
-
|
|
|
152
|
|
|
-
|
|
|
152
|
|
||||
Short positions
|
|
75
|
|
|
155
|
|
|
-
|
|
|
230
|
|
||||
Total liabilities
|
$
|
186
|
|
|
1,731
|
|
|
179
|
|
|
2,096
|
|
||||
(a)
|
Excludes FHLB, FRB and DTCC restricted stock holdings totaling $136, $478 and $2, respectively, at March 31, 2020.
|
(b)
|
Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
|
(c)
|
Included in other assets in the Condensed Consolidated Balance Sheets.
|
(d)
|
Included in other liabilities in the Condensed Consolidated Bala
nce Sheets.
|
|
Fair Value Measurements Using
|
Total Fair Value
|
||||||||||||||
December 31, 2019 ($ in millions)
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Assets:
|
|
|
|
|
||||||||||||
Available-for-sale
debt and other securities:
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agency securities
|
$ |
75
|
-
|
-
|
75
|
|||||||||||
Obligations of states and political subdivisions securities
|
-
|
18
|
-
|
18
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
||||||||||||
Agency residential mortgage-backed securities
|
-
|
14,115
|
-
|
14,115
|
||||||||||||
Agency commercial mortgage-backed securities
|
-
|
15,693
|
-
|
15,693
|
||||||||||||
Non-agency
commercial mortgage-backed securities
|
-
|
3,365
|
-
|
3,365
|
||||||||||||
Asset-backed securities and other debt securities
|
-
|
2,206
|
-
|
2,206
|
||||||||||||
Available-for-sale
debt and other securities
(a)
|
75
|
35,397
|
-
|
35,472
|
||||||||||||
Trading debt securities:
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agency securities
|
2
|
-
|
-
|
2
|
||||||||||||
Obligations of states and political subdivisions securities
|
-
|
9
|
-
|
9
|
||||||||||||
Agency residential mortgage-backed securities
|
-
|
55
|
-
|
55
|
||||||||||||
Asset-backed securities and other debt securities
|
-
|
231
|
-
|
231
|
||||||||||||
Trading debt securities
|
2
|
295
|
-
|
297
|
||||||||||||
Equity securities
|
554
|
10
|
-
|
564
|
||||||||||||
Residential mortgage loans held for sale
|
-
|
1,264
|
-
|
1,264
|
||||||||||||
Residential mortgage loans
(b)
|
-
|
-
|
183
|
183
|
||||||||||||
Servicing rights
|
-
|
-
|
993
|
993
|
||||||||||||
Derivative assets:
|
|
|
|
|
||||||||||||
Interest rate contracts
|
1
|
1,218
|
18
|
1,237
|
||||||||||||
Foreign exchange contracts
|
-
|
165
|
-
|
165
|
||||||||||||
Commodity contracts
|
37
|
234
|
-
|
271
|
||||||||||||
Derivative assets
(c)
|
38
|
1,617
|
18
|
1,673
|
||||||||||||
Total assets
|
$ |
669
|
38,583
|
1,194
|
40,446
|
|||||||||||
Liabilities:
|
|
|
|
|
||||||||||||
Derivative liabilities:
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$ |
5
|
144
|
8
|
157
|
|||||||||||
Foreign exchange contracts
|
-
|
151
|
-
|
151
|
||||||||||||
Equity contracts
|
-
|
-
|
163
|
163
|
||||||||||||
Commodity contracts
|
17
|
253
|
-
|
270
|
||||||||||||
Derivative liabilities
(d)
|
22
|
548
|
171
|
741
|
||||||||||||
Short positions:
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agency securities
|
49
|
-
|
-
|
49
|
||||||||||||
Asset-backed securities and other debt securities
|
-
|
100
|
-
|
100
|
||||||||||||
Short positions
(d)
|
49
|
100
|
-
|
149
|
||||||||||||
Total liabilities
|
$ |
71
|
648
|
171
|
890
|
(a)
|
Excludes FHLB, FRB, and DTCC restricted stock holdings totaling $76, $478 and $2, respectively, at December 31, 2019.
|
(b)
|
Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
|
(c)
|
Included in other assets in the Condensed Consolidated Balance Sheets.
|
(d)
|
Included in other liabilities in the Condensed Cons
olidated Balance Sheets.
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
|||||||||||||||||||
|
Residential
|
|
Interest Rate
|
|
|
|||||||||||||||
|
Mortgage
|
Servicing
|
Derivatives,
|
Equity
|
Total
|
|||||||||||||||
For the three months ended March 31, 2020 ($ in millions)
|
Loans
|
Rights
|
Net
(a)
|
Derivatives
|
Fair Value
|
|||||||||||||||
Balance, beginning of period
|
$
|
183
|
|
|
993
|
|
|
10
|
|
|
(163)
|
|
|
1,023
|
|
|||||
Total (losses) gains (realized/unrealized):
(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Included in earnings
|
|
4
|
|
|
(378)
|
|
|
103
|
|
|
(22)
|
|
|
(293
|
)
|
|||||
Purchases/originations
|
|
-
|
|
|
70
|
|
|
(1)
|
|
|
-
|
|
|
69
|
|
|||||
Settlements
|
|
(9)
|
|
|
-
|
|
|
(51)
|
|
|
14
|
|
|
(46
|
)
|
|||||
Transfers into Level 3
(b)
|
|
7
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|||||
Balance, end of period
|
$
|
185
|
|
|
685
|
|
|
61
|
|
|
(171)
|
|
|
760
|
|
|||||
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at March 31,
2020
(c)
|
$
|
4
|
|
|
(341)
|
|
|
70
|
|
|
(22)
|
|
|
(289
|
)
|
(a)
|
Net interest rate derivatives include derivative assets and liabilities of $69 and $8, respectively, as of March 31, 2020.
|
(b)
|
Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.
|
(c)
|
Includes interest income and expense.
|
(d)
|
There were no unrealized gains or losses for the period included in oth
er comprehensive income for instruments still held at March 31, 2020.
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
|||||||||||||||||||
|
Residential
|
|
Interest Rate
|
|
|
|||||||||||||||
|
Mortgage
|
Servicing
|
Derivatives,
|
Equity
|
Total
|
|||||||||||||||
For the three months ended March 31, 2019 ($ in millions)
|
Loans
|
Rights
|
Net
(a)
|
Derivatives
|
Fair Value
|
|||||||||||||||
Balance, beginning of period
|
$ |
179
|
938
|
(1)
|
(125)
|
991
|
||||||||||||||
Total (losses) gains (realized/unrealized):
|
|
|
|
|
|
|||||||||||||||
Included in earnings
|
-
|
(84)
|
24
|
(31)
|
(91
|
) | ||||||||||||||
Purchases/originations
|
-
|
287
|
(1)
|
-
|
286
|
|||||||||||||||
Settlements
|
(4)
|
-
|
(20)
|
13
|
(11
|
) | ||||||||||||||
Transfers into Level 3
(b)
|
15
|
-
|
-
|
-
|
15
|
|||||||||||||||
Balance, end of period
|
$ |
190
|
1,141
|
2
|
(143)
|
1,190
|
||||||||||||||
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at March 31,
2019
(c)
|
$ |
-
|
(69)
|
11
|
(31)
|
(89
|
) |
(a)
|
Net interest rate derivatives include derivative assets and liabilities of $11 and $9 respectively, as of March 31, 2019.
|
(b)
|
Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.
|
(c)
|
Includes interest income and exp
ense.
|
|
|
For the three months ended
|
||||||||||
|
|
March 31,
|
||||||||||
($ in millions)
|
|
2020
|
|
2019
|
||||||||
Mortgage banking net revenue
|
$
|
|
|
|
(271
|
)
|
(60)
|
|||||
Other noninterest income
|
|
|
|
|
(22
|
)
|
(31)
|
|||||
Total losses
|
$
|
|
|
|
(293
|
)
|
(91)
|
|
|
For the three months ended
|
||||||||||
|
|
March 31,
|
||||||||||
($ in millions)
|
|
2020
|
|
2019
|
||||||||
Mortgage banking net revenue
|
$
|
|
|
|
(267
|
)
|
(58)
|
|||||
Other noninterest income
|
|
|
|
|
(22
|
)
|
(31)
|
|||||
Total losses
|
$
|
|
|
|
(289
|
)
|
(89)
|
As of March 31, 2020 ($ in millions)
|
|
|
|
|
|
|
||||||||||||||
Financial Instrument
|
Fair Value
|
Valuation
Technique |
Significant Unobservable
Inputs |
Ranges of
Inputs |
Weighted-Average
|
|||||||||||||||
Residential mortgage loans
|
$
|
185
|
|
Loss rate model
|
Interest rate risk factor
|
|
(2.1)
-
13.1%
|
|
|
|
2.2%
(a)
|
|
||||||||
|
|
|
Credit risk factor
|
|
0 - 40.6%
|
|
|
|
0.7%
(a)
|
|
||||||||||
|
|
|
|
|
|
(Fixed)
|
|
|
19.5%
(b)
|
|
||||||||||
Servicing rights
|
|
685
|
|
DCF
|
Prepayment speed
|
|
0.5 - 97.0%
|
|
|
(Adjustable)
|
|
|
23.8%
(b)
|
|
||||||
|
|
|
|
|
|
|
|
|
|
(Fixed
|
)
|
|
926
(b)
|
|
||||||
|
|
|
OAS (bps)
|
|
536 - 1,513
|
|
|
(Adjustable)
|
|
|
932
(b)
|
|
||||||||
IRLCs, net
|
|
69
|
|
DCF
|
Loan closing rates
|
|
7.3 - 97.2%
|
|
|
|
70.1%
(c)
|
|
||||||||
Swap associated with the sale of Visa, Inc.
Class B Shares |
|
(171
|
)
|
DCF
|
Timing of the resolution of the Covered Litigation
|
|
Q2 2022 - Q1 2024
|
|
|
|
|
|
Q4 2022
(d)
|
|
(a)
|
Unobservable inputs were weighted by the relative carrying value of the instruments.
|
(b)
|
Unobservable inputs were weighted by the relative unpaid principal balance of the instruments.
|
(c)
|
Unobservable inputs were weighted by the relative notional amount of the instruments.
|
(d)
|
Unobservable inpu
ts were weighted by the probability of the final funding date of the instruments.
|
As of March 31, 2019 ($ in millions)
|
|
|
|
|
|
|
||||||||||||||
Financial Instrument
|
Fair Value
|
Valuation
Technique |
Significant
Unobservable Inputs |
Ranges of
Inputs |
Weighted-Average
|
|||||||||||||||
Residential mortgage loans
|
$ |
190
|
Loss rate model
|
Interest rate risk factor
|
(13.4)
-
19.4%
|
|
0.6%
|
|||||||||||||
|
|
|
Credit risk factor
|
0 - 39.9%
|
|
0.5%
|
||||||||||||||
|
|
|
|
|
(Fixed)
|
11.2%
|
||||||||||||||
Servicing rights
|
1,141
|
DCF
|
Prepayment speed
|
0 - 100.0%
|
(Adjustable)
|
23.1%
|
||||||||||||||
|
|
|
|
|
(Fixed)
|
538
|
||||||||||||||
|
|
|
OAS (bps)
|
447 - 1,513
|
(Adjustable)
|
884
|
||||||||||||||
IRLCs, net
|
11
|
DCF
|
Loan closing rates
|
7.3 - 96.6%
|
|
78.9%
|
||||||||||||||
Swap associated with the sale of Visa, Inc.
Class B Shares |
(143
|
) |
DCF
|
Timing of the resolution of the Covered Litigation
|
Q1 2021 - Q4 2023
|
Q1 2022
|
|
Fair Value Measurements Using
|
|
Total (Losses) Gains
|
|||||||||||||||||
As of March 31, 2020 ($ in millions)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
For the three months
ended March 31, 2020 |
|
||||||||||||||
Commercial loans held for sale
|
$
|
-
|
|
|
41
|
|
|
16
|
|
|
57
|
|
|
(3)
|
|
|||||
Commercial and industrial loans
|
|
-
|
|
|
-
|
|
|
141
|
|
|
141
|
|
|
(36)
|
|
|||||
Commercial mortgage loans
|
|
-
|
|
|
-
|
|
|
45
|
|
|
45
|
|
|
(29)
|
|
|||||
Commercial leases
|
|
-
|
|
|
-
|
|
|
8
|
|
|
8
|
|
|
(9)
|
|
|||||
Consumer loans
|
|
|
-
|
|
|
|
-
|
|
|
|
124
|
|
|
|
124
|
|
|
|
1
|
|
OREO
|
|
-
|
|
|
-
|
|
|
17
|
|
|
17
|
|
|
(4)
|
|
|||||
Bank premises and equipment
|
|
-
|
|
|
-
|
|
|
8
|
|
|
8
|
|
|
(3)
|
|
|||||
Operating lease equipment
|
|
-
|
|
|
-
|
|
|
10
|
|
|
10
|
|
|
(3)
|
|
|||||
Private equity investments
|
|
-
|
|
|
-
|
|
|
70
|
|
|
70
|
|
|
(9)
|
|
|||||
Total
|
$
|
-
|
|
|
41
|
|
|
439
|
|
|
480
|
|
|
(95
|
)
|
|
Fair Value Measurements Using
|
|
Total (Losses) Gains
|
|||||||||||||||||
As of March 31, 2019 ($ in millions)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
For the three months
ended March 31, 2019 |
|||||||||||||||
Commercial and industrial loans
|
$ |
-
|
-
|
109
|
109
|
(20)
|
||||||||||||||
Commercial mortgage loans
|
-
|
-
|
9
|
9
|
-
|
|||||||||||||||
Commercial leases
|
-
|
-
|
13
|
13
|
(1)
|
|||||||||||||||
OREO
|
-
|
-
|
12
|
12
|
(2)
|
|||||||||||||||
Bank premises and equipment
|
-
|
-
|
22
|
22
|
(20)
|
|||||||||||||||
Private equity investments
|
-
|
1
|
7
|
8
|
2
|
|||||||||||||||
Total
|
$ |
-
|
1
|
172
|
173
|
(41)
|
As of March 31, 2020 ($ in millions)
|
|
|
|
|||||||||||||||||
Financial Instrument
|
|
Fair Value
|
Valuation Technique
|
Significant Unobservable Inputs
|
Ranges of
Inputs |
Weighted-Average
|
||||||||||||||
Commercial loans held for sale
|
$
|
|
|
|
16
|
|
Comparable company analysis
|
Market comparable transactions
|
|
NM
|
|
|
NM
|
|
||||||
Commercial and industrial loans
|
|
|
|
|
141
|
|
Appraised value
|
Collateral value
|
|
NM
|
|
|
NM
|
|
||||||
Commercial mortgage loans
|
|
|
|
|
45
|
|
Appraised value
|
Collateral value
|
|
NM
|
|
|
NM
|
|
||||||
Commercial leases
|
|
|
|
|
8
|
|
Appraised value
|
Collateral value
|
|
NM
|
|
|
NM
|
|
||||||
Consumer loans
|
|
|
|
|
|
|
124
|
|
|
Appraised value
|
|
Collateral value
|
|
|
NM
|
|
|
|
NM
|
|
OREO
|
|
|
|
|
17
|
|
Appraised value
|
Appraised value
|
|
NM
|
|
|
NM
|
|
||||||
Bank premises and equipment
|
|
|
|
|
8
|
|
Appraised value
|
Appraised value
|
|
NM
|
|
|
NM
|
|
||||||
Operating lease equipment
|
|
|
|
|
10
|
|
Appraised value
|
Appraised value
|
|
NM
|
|
|
NM
|
|
||||||
Private equity investments
|
|
|
|
|
70
|
|
Comparable company analysis
|
Market
|
|
NM
|
|
|
NM
|
|
As of March 31, 2019 ($ in millions)
|
|
|
|
|||||||||||||||||
Financial Instrument
|
|
Fair Value
|
Valuation Technique
|
Significant Unobservable Inputs
|
Ranges of
Inputs |
Weighted-Average
|
||||||||||||||
Commercial and industrial loans
|
$ |
|
109
|
Appraised value
|
Collateral value
|
NM
|
NM
|
|||||||||||||
Commercial mortgage loans
|
|
9
|
Appraised value
|
Collateral value
|
NM
|
NM
|
||||||||||||||
Commercial leases
|
|
13
|
Appraised value
|
Collateral value
|
NM
|
NM
|
||||||||||||||
OREO
|
|
12
|
Appraised value
|
Appraised value
|
NM
|
NM
|
||||||||||||||
Bank premises and equipment
|
|
|
|
22
|
Appraised value
|
Appraised value
|
|
NM
|
|
|
NM
|
|
||||||||
Private equity investments
|
|
7
|
Comparable company analysis
|
Market
|
NM
|
NM
|
March 31, 2020 ($ in millions)
|
Aggregate
Fair Value |
Aggregate Unpaid
Principal Balance |
Difference
|
|||||||||
Residential mortgage loans measured at fair value
|
$
|
1,750
|
|
|
1,659
|
|
|
91
|
|
|||
Past due loans of 90 days or more
|
|
2
|
|
|
2
|
|
|
-
|
|
|||
Nonaccrual loans
|
|
1
|
|
|
1
|
|
|
-
|
|
|||
Commercial loans measured at fair value
|
|
8
|
|
|
9
|
|
|
(1)
|
|
|||
December 31, 2019
|
|
|
|
|||||||||
Residential mortgage loans measured at fair value
|
$ |
1,447
|
1,410
|
37
|
||||||||
Past due loans of 90 days or more
|
2
|
2
|
-
|
|||||||||
Nonaccrual loans
|
1
|
1
|
-
|
As of March 31, 2020 ($ in millions)
|
Net Carrying
Amount
|
Fair Value Measurements Using
|
Total
Fair Value
|
|||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|||||||||||||||
Cash and due from banks
|
$
|
3,282
|
|
|
3,282
|
|
|
-
|
|
|
-
|
|
|
3,282
|
|
|||||
Other short-term investments
|
|
6,319
|
|
|
6,319
|
|
|
-
|
|
|
-
|
|
|
6,319
|
|
|||||
Other securities
|
|
616
|
|
|
-
|
|
|
616
|
|
|
-
|
|
|
616
|
|
|||||
Held-to-maturity
securities
|
|
17
|
|
|
-
|
|
|
-
|
|
|
17
|
|
|
17
|
|
|||||
Loans and leases held for sale
|
|
57
|
|
|
-
|
|
|
-
|
|
|
57
|
|
|
57
|
|
|||||
Portfolio loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and industrial loans
|
|
57,273
|
|
|
-
|
|
|
-
|
|
|
56,397
|
|
|
56,397
|
|
|||||
Commercial mortgage loans
|
|
10,923
|
|
|
-
|
|
|
-
|
|
|
10,767
|
|
|
10,767
|
|
|||||
Commercial construction loans
|
|
5,409
|
|
|
-
|
|
|
-
|
|
|
5,579
|
|
|
5,579
|
|
|||||
Commercial leases
|
|
3,077
|
|
|
-
|
|
|
-
|
|
|
2,772
|
|
|
2,772
|
|
|||||
Residential mortgage loans
|
|
16,256
|
|
|
-
|
|
|
-
|
|
|
17,896
|
|
|
17,896
|
|
|||||
Home equity
|
|
5,745
|
|
|
-
|
|
|
-
|
|
|
5,934
|
|
|
5,934
|
|
|||||
Indirect secured consumer loans
|
|
11,921
|
|
|
-
|
|
|
-
|
|
|
11,902
|
|
|
11,902
|
|
|||||
Credit card
|
|
2,111
|
|
|
-
|
|
|
-
|
|
|
2,339
|
|
|
2,339
|
|
|||||
Other consumer loans
|
|
2,789
|
|
|
-
|
|
|
-
|
|
|
3,002
|
|
|
3,002
|
|
|||||
Total portfolio loans and leases, net
|
$
|
115,504
|
|
|
-
|
|
|
-
|
|
|
116,588
|
|
|
116,588
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
$
|
135,061
|
|
|
-
|
|
|
135,065
|
|
|
-
|
|
|
135,065
|
|
|||||
Federal funds purchased
|
|
1,625
|
|
|
1,625
|
|
|
-
|
|
|
-
|
|
|
1,625
|
|
|||||
Other short-term borrowings
|
|
4,542
|
|
|
-
|
|
|
4,542
|
|
|
-
|
|
|
4,542
|
|
|||||
Long-term debt
|
|
16,282
|
|
|
15,990
|
|
|
885
|
|
|
-
|
|
|
16,875
|
|
As of December 31, 2019 ($ in millions)
|
Net Carrying
Amount
|
Fair Value Measurements Using
|
Total
Fair Value
|
|||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|||||||||||||||
Cash and due from banks
|
$ |
3,278
|
3,278
|
-
|
-
|
3,278
|
||||||||||||||
Other short-term investments
|
1,950
|
1,950
|
-
|
-
|
1,950
|
|||||||||||||||
Other securities
|
556
|
-
|
556
|
-
|
556
|
|||||||||||||||
Held-to-maturity
securities
|
17
|
-
|
-
|
17
|
17
|
|||||||||||||||
Loans and leases held for sale
|
136
|
-
|
-
|
136
|
136
|
|||||||||||||||
Portfolio loans and leases:
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial loans
|
49,981
|
-
|
-
|
51,128
|
51,128
|
|||||||||||||||
Commercial mortgage loans
|
10,876
|
-
|
-
|
10,823
|
10,823
|
|||||||||||||||
Commercial construction loans
|
5,045
|
-
|
-
|
5,249
|
5,249
|
|||||||||||||||
Commercial leases
|
3,346
|
-
|
-
|
3,133
|
3,133
|
|||||||||||||||
Residential mortgage loans
|
16,468
|
-
|
-
|
17,509
|
17,509
|
|||||||||||||||
Home equity
|
6,046
|
-
|
-
|
6,315
|
6,315
|
|||||||||||||||
Indirect secured consumer loans
|
11,485
|
-
|
-
|
11,331
|
11,331
|
|||||||||||||||
Credit card
|
2,364
|
-
|
-
|
2,774
|
2,774
|
|||||||||||||||
Other consumer loans
|
2,683
|
-
|
-
|
2,866
|
2,866
|
|||||||||||||||
Unallocated ALLL
|
(121
|
) |
-
|
-
|
-
|
-
|
||||||||||||||
Total portfolio loans and leases, net
|
$ |
108,173
|
-
|
-
|
111,128
|
111,128
|
||||||||||||||
Financial liabilities:
|
|
|
|
|
|
|||||||||||||||
Deposits
|
$ |
127,062
|
-
|
127,059
|
-
|
127,059
|
||||||||||||||
Federal funds purchased
|
260
|
260
|
-
|
-
|
260
|
|||||||||||||||
Other short-term borrowings
|
1,011
|
-
|
1,011
|
-
|
1,011
|
|||||||||||||||
Long-term debt
|
14,970
|
15,244
|
700
|
-
|
15,944
|
March 31, 2020 ($ in millions)
|
Commercial
Banking |
Branch
Banking |
Consumer
Lending |
Wealth
and Asset
Management |
General
Corporate and Other |
Eliminations
|
Total
|
|||||||||||||||||||||
Net interest income
|
$
|
507
|
|
|
505
|
|
|
89
|
|
|
37
|
|
|
91
|
|
|
-
|
|
|
1,229
|
|
|||||||
Provision for credit losses
|
|
45
|
|
|
62
|
|
|
13
|
|
|
1
|
|
|
519
|
|
|
-
|
|
|
640
|
|
|||||||
Net interest income after provision for credit losses
|
|
462
|
|
|
443
|
|
|
76
|
|
|
36
|
|
|
(428
|
)
|
|
-
|
|
|
589
|
|
|||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Service charges on deposits
|
|
84
|
|
|
65
|
|
|
-
|
|
|
-
|
|
|
(1
|
)
|
|
-
|
|
|
148
|
|
|||||||
Wealth and asset management revenue
|
|
1
|
|
|
44
|
|
|
-
|
|
|
129
|
|
|
-
|
|
|
(40)
(a)
|
|
134
|
|
||||||||
Commercial banking revenue
|
|
124
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
(1
|
)
|
|
-
|
|
|
124
|
|
|||||||
Mortgage banking net revenue
|
|
-
|
|
|
2
|
|
|
117
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
120
|
|
|||||||
Card and processing revenue
|
|
16
|
|
|
67
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
86
|
|
|||||||
Leasing business revenue
|
|
73
(c)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
73
|
|
|||||||
Other noninterest income
(b)
|
|
(11
|
)
|
|
19
|
|
|
4
|
|
|
5
|
|
|
(10
|
)
|
|
-
|
|
|
7
|
|
|||||||
Securities losses, net
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(24
|
)
|
|
-
|
|
|
(24
|
)
|
|||||||
Securities gains, net -
non-qualifying
hedges on MSRs
|
|
-
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|||||||
Total noninterest income
|
|
287
|
|
|
198
|
|
|
124
|
|
|
135
|
|
|
(33
|
)
|
|
(40
|
)
|
|
671
|
|
|||||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Compensation and benefits
|
|
150
|
|
|
168
|
|
|
51
|
|
|
61
|
|
|
217
|
|
|
-
|
|
|
647
|
|
|||||||
Technology and communications
|
|
3
|
|
|
1
|
|
|
2
|
|
|
-
|
|
|
87
|
|
|
-
|
|
|
93
|
|
|||||||
Net occupancy expense
(e)
|
|
7
|
|
|
44
|
|
|
2
|
|
|
3
|
|
|
26
|
|
|
-
|
|
|
82
|
|
|||||||
Leasing business expense
|
|
35
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
35
|
|
|||||||
Equipment expense
|
|
7
|
|
|
11
|
|
|
-
|
|
|
-
|
|
|
14
|
|
|
-
|
|
|
32
|
|
|||||||
Marketing expense
|
|
2
|
|
|
13
|
|
|
1
|
|
|
1
|
|
|
14
|
|
|
-
|
|
|
31
|
|
|||||||
Card and processing expense
|
|
2
|
|
|
30
|
|
|
-
|
|
|
-
|
|
|
(1
|
)
|
|
-
|
|
|
31
|
|
|||||||
Other noninterest expense
|
|
274
|
|
|
221
|
|
|
66
|
|
|
78
|
|
|
(350
|
)
|
|
(40
|
)
|
|
249
|
|
|||||||
Total noninterest expense
|
|
480
|
|
|
488
|
|
|
122
|
|
|
143
|
|
|
7
|
|
|
(40
|
)
|
|
1,200
|
|
|||||||
Income (loss) before income taxes
|
|
269
|
|
|
153
|
|
|
78
|
|
|
28
|
|
|
(468
|
)
|
|
-
|
|
|
60
|
|
|||||||
Applicable income tax expense (benefit)
|
|
45
|
|
|
32
|
|
|
17
|
|
|
6
|
|
|
(86
|
)
|
|
-
|
|
|
14
|
|
|||||||
Net income (loss)
|
|
224
|
|
|
121
|
|
|
61
|
|
|
22
|
|
|
(382
|
)
|
|
-
|
|
|
46
|
|
|||||||
Total goodwill
|
$
|
1,961
|
|
|
2,047
|
|
|
-
|
|
|
253
|
|
|
-
|
|
|
-
|
|
|
4,261
|
|
|||||||
Total assets
|
$
|
84,576
|
|
|
70,283
|
|
|
27,132
|
|
|
11,653
|
|
|
(8,253)
(d)
|
|
|
-
|
|
|
185,391
|
|
(a)
|
Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income.
|
(b)
|
Includes impairment charges of $3 for branches and land. For more information refer to Note 8 and Note 23.
|
(c)
|
Includes impairment charges of $3 for operating lease equipment. For more information refer to Note 9 and Note 23.
|
(d)
|
Includes bank premises and equipment of $36 classified as held for sale. For more information refer to Note 8.
|
(e)
|
Includes impairment losses and termination charges of $2 for ROU assets related to certain operating leases. F
or more information refer to Note 10.
|
March 31, 2019 ($ in millions)
|
Commercial
Banking |
Branch
Banking |
Consumer
Lending |
Wealth
and Asset Management |
General
Corporate and Other |
Eliminations
|
Total
|
|||||||||||||||||||||
Net interest income
|
$ |
509
|
584
|
63
|
49
|
(123
|
) |
-
|
1,082
|
|||||||||||||||||||
Provision for credit losses
|
20
|
52
|
13
|
-
|
5
|
-
|
90
|
|||||||||||||||||||||
Net interest income after provision for credit losses
|
489
|
532
|
50
|
49
|
(128
|
) |
-
|
992
|
||||||||||||||||||||
Noninterest income:
(e)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Service charges on deposits
|
66
|
64
|
-
|
-
|
1
|
-
|
131
|
|||||||||||||||||||||
Wealth and asset management revenue
|
1
|
36
|
-
|
108
|
-
|
(33)
(a)
|
112
|
|||||||||||||||||||||
Commercial banking revenue
|
103
|
1
|
-
|
-
|
(1
|
) |
-
|
103
|
||||||||||||||||||||
Mortgage banking net revenue
|
-
|
1
|
55
|
-
|
-
|
-
|
56
|
|||||||||||||||||||||
Card and processing revenue
|
15
|
63
|
-
|
1
|
-
|
-
|
79
|
|||||||||||||||||||||
Leasing business revenue
|
32
|
-
|
-
|
-
|
-
|
-
|
32
|
|||||||||||||||||||||
Other noninterest income
(b)
|
10
|
18
|
3
|
5
|
533
|
-
|
569
|
|||||||||||||||||||||
Securities gains, net
|
-
|
-
|
-
|
-
|
16
|
-
|
16
|
|||||||||||||||||||||
Securities gains, net -
non-qualifying
hedges on MSRs
|
-
|
-
|
3
|
-
|
-
|
-
|
3
|
|||||||||||||||||||||
Total noninterest income
|
227
|
183
|
61
|
114
|
549
|
(33
|
) |
1,101
|
||||||||||||||||||||
Noninterest expense:
(e)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Compensation and benefits
|
109
|
143
|
45
|
56
|
257
|
-
|
610
|
|||||||||||||||||||||
Technology and communications
|
2
|
1
|
2
|
-
|
78
|
-
|
83
|
|||||||||||||||||||||
Net occupancy expense
|
7
|
43
|
2
|
3
|
20
|
-
|
75
|
|||||||||||||||||||||
Leasing business expense
|
19
|
-
|
-
|
-
|
-
|
-
|
19
|
|||||||||||||||||||||
Equipment expense
|
6
|
12
|
-
|
-
|
12
|
-
|
30
|
|||||||||||||||||||||
Marketing expense
|
1
|
14
|
1
|
1
|
19
|
-
|
36
|
|||||||||||||||||||||
Card and processing expense
|
2
|
29
|
-
|
-
|
-
|
-
|
31
|
|||||||||||||||||||||
Other noninterest expense
|
210
|
198
|
51
|
70
|
(283
|
) |
(33
|
) |
213
|
|||||||||||||||||||
Total noninterest expense
|
356
|
440
|
101
|
130
|
103
|
(33
|
) |
1,097
|
||||||||||||||||||||
Income before income taxes
|
360
|
275
|
10
|
33
|
318
|
-
|
996
|
|||||||||||||||||||||
Applicable income tax expense
|
66
|
58
|
2
|
7
|
88
|
-
|
221
|
|||||||||||||||||||||
Net income
|
294
|
217
|
8
|
26
|
230
|
-
|
775
|
|||||||||||||||||||||
Total goodwill
|
$ |
630
|
1,655
|
-
|
193
|
(1,843)
(d)
|
-
|
4,321
|
||||||||||||||||||||
Total assets
|
$ |
74,377
|
69,599
|
24,662
|
9,916
|
(10,701)
(c)
|
-
|
167,853
|
(a)
|
Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income.
|
(b)
|
Includes impairment charges of $20 for branches and land. For more information refer to Note 8.
|
(c)
|
Includes bank premises and equipment of $78 classified as held for sale. For more information refer to Note 8.
|
(d)
|
Due to the timing of the MB Financial, Inc. acquisition, the Bancorp was in the process of completing its analysis of the allocation of the goodwill across its four business segments, therefore goodwill was presented as part of General Corporate and Other as of March 31, 2019.
|
(e)
|
During the first quarter of 2020, certain noninterest income and noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications were retrospectively applied to
all prior periods presented. Total noninterest income and noninterest expense did not change as a result of these reclassifications.
|
For the year ended December 31, 2019 ($ in millions)
|
As Previously
Reported |
Reclassifications
|
As Recast
|
|||||||||
Noninterest Income
|
|
|
|
|||||||||
Corporate banking revenue
|
$ |
570
|
(570
|
) |
-
|
|||||||
Commercial banking revenue
|
-
|
460
|
460
|
|||||||||
Leasing business revenue
|
-
|
270
|
270
|
|||||||||
Other noninterest income
|
1,224
|
(160
|
) |
1,064
|
||||||||
Total noninterest income
|
3,536
|
-
|
3,536
|
|||||||||
Noninterest Expense
|
|
|
|
|||||||||
Salaries, wages and incentives
|
$ |
2,001
|
(2,001
|
) |
-
|
|||||||
Employee benefits
|
417
|
(417
|
) |
-
|
||||||||
Compensation and benefits
|
-
|
2,418
|
2,418
|
|||||||||
Marketing expense
|
-
|
162
|
162
|
|||||||||
Leasing business expense
|
-
|
133
|
133
|
|||||||||
Other noninterest expense
|
1,229
|
(295
|
) |
934
|
||||||||
Total noninterest expense
|
4,660
|
-
|
4,660
|
|||||||||
Income Before Income Taxes
|
$ |
3,202
|
-
|
3,202
|
For the year ended December 31, 2018 ($ in millions)
|
As Previously
Reported |
Reclassifications
|
As Recast
|
|||||||||
Noninterest Income
|
|
|
|
|||||||||
Corporate banking revenue
|
$ |
438
|
(438
|
) |
-
|
|||||||
Commercial banking revenue
|
-
|
408
|
408
|
|||||||||
Leasing business revenue
|
-
|
114
|
114
|
|||||||||
Other noninterest income
|
887
|
(84
|
) |
803
|
||||||||
Total noninterest income
|
2,790
|
-
|
2,790
|
|||||||||
Noninterest Expense
|
|
|
|
|||||||||
Salaries, wages and incentives
|
$ |
1,783
|
(1,783
|
) |
-
|
|||||||
Employee benefits
|
332
|
(332
|
) |
-
|
||||||||
Compensation and benefits
|
-
|
2,115
|
2,115
|
|||||||||
Marketing expense
|
-
|
147
|
147
|
|||||||||
Leasing business expense
|
-
|
76
|
76
|
|||||||||
Other noninterest expense
|
1,020
|
(223
|
) |
797
|
||||||||
Total noninterest expense
|
3,958
|
-
|
3,958
|
|||||||||
Income Before Income Taxes
|
$ |
2,765
|
-
|
2,765
|
For the year ended December 31, 2017 ($ in millions)
|
As Previously
Reported |
Reclassifications
|
As Recast
|
|||||||||
Noninterest Income
|
|
|
|
|||||||||
Corporate banking revenue
|
$ |
353
|
(353
|
) |
-
|
|||||||
Commercial banking revenue
|
-
|
386
|
386
|
|||||||||
Leasing business revenue
|
-
|
63
|
63
|
|||||||||
Other noninterest income
|
1,357
|
(96
|
) |
1,261
|
||||||||
Total noninterest income
|
3,224
|
-
|
3,224
|
|||||||||
Noninterest Expense
|
|
|
|
|||||||||
Salaries, wages and incentives
|
$ |
1,633
|
(1,633
|
) |
-
|
|||||||
Employee benefits
|
356
|
(356
|
) |
-
|
||||||||
Compensation and benefits
|
-
|
1,989
|
1,989
|
|||||||||
Marketing expense
|
-
|
114
|
114
|
|||||||||
Leasing business expense
|
-
|
87
|
87
|
|||||||||
Other noninterest expense
|
1,007
|
(201
|
) |
806
|
||||||||
Total noninterest expense
|
3,782
|
-
|
3,782
|
|||||||||
Income Before Income Taxes
|
$ |
2,979
|
-
|
2,979
|
3.1
|
||||
3.2
|
||||
3.3
|
||||
3.4
|
||||
4.1
|
Certain instruments defining the rights of holders of long-term debt securities of the Registrant and its subsidiaries are omitted pursuant to Item 601(b)(4)(iii) of Regulation
S-K.
The Registrant hereby undertakes to furnish to the SEC, upon request, copies of any such instruments.
|
|||
10.1
|
||||
31(i)
|
||||
31(ii)
|
||||
32(i)
|
||||
32(ii)
|
||||
101.INS
|
Inline XBRL Instance Document (filed herewith).
|
|||
101.SCH
|
Inline XBRL Taxonomy Extension Schema (filed herewith).
|
|||
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase (filed herewith).
|
|||
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase (filed herewith).
|
|||
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase (filed herewith).
|
|||
101.DEF
|
Inline XBRL Taxonomy Definition Linkbase (filed herewith).
|
|||
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
Fifth Third Bancorp
|
Registrant
|
/s/ Tayfun Tuzun
|
Tayfun Tuzun
|
Executive Vice President and
Chief Financial Officer
|
(Duly Authorized Officer & Principal Financial Officer)
|
Exhibit 10.1
Restricted Stock Unit Grant Agreement
[Participant Name]
It is my pleasure to inform you that you are hereby granted an award of Restricted Stock Units (Grant) subject to the terms and conditions contained in this Grant Agreement and the terms of the Fifth Third Bancorp 2019 Incentive Compensation Plan (the Plan) (collectively, the Grant Agreement and Plan shall be referred to herein as the Grant Terms).
Grant Date of Restricted Stock Units [Grant Date]
Total Number of Restricted Units Granted [Number of shares granted]
This Restricted Stock Unit (RSU) Grant will 100% cliff vest on either the date your service as a non-employee Director of Fifth Third Bancorp ends or the distribution date you selected pursuant to the deferral election process subject to the terms and conditions of the Plan. On the vesting/distribution date, the granted RSUs will convert to Fifth Third Bancorp common stock and shares will be issued and registered in your name by the Bancorp.
You do not have voting rights on your unvested RSUs and are not eligible to receive actual dividend payments; however, you will receive dividend equivalent payments each time a dividend is declared (typically quarterly). Dividend equivalents will be distributed in accordance with the election made on the Restricted Stock Unit Deferral Election Payout form, or, in the absence of an election, paid in cash.
Articles 12.2, 12.3 or 12.4 of the Plan govern treatment of this Grant upon a separation of service. Retirement shall mean separation from service for any reason (other than death, disability or under circumstances determined by Fifth Third to constitute cause).
Any bonus, commission, compensation, or awards granted to you under the Plan is subject to recovery, or clawback by the Company in such amount and with respect to such time period as the Committee shall determine to be required by policy, applicable law, rules, or regulations if the payments were based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria, or as otherwise required by law. In addition, all executive compensation plans and awards are automatically amended as necessary to comply with the requirements and/or limitations under any other laws, rules, regulations, or regulatory agreements up to and including a revocation of this Grant.
Acceptance of this Grant confirms your agreement to the Grant Terms, copies of which were delivered with this Agreement. In the event of any conflict between the terms of this Grant Agreement and the Plan, the terms of the Plan shall control. In addition, you confirm that you have received, or have access to, the 2019 Incentive Compensation Plan Prospectus.
This Award will expire by its own terms unless accepted within 60 days.
For Fifth Third Bancorp:
|
[Grant Date] | |||||||||
Greg D. Carmichael |
Date | |||||||||
Chairman, President & Chief Executive Officer |
[Acceptance Date]
[Participant Name]
This document constitutes part of a prospectus covering securities that have been registered under the
Securities Act of 1933, as amended.
Exhibit 31(i)
CERTIFICATION PURSUANT
TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Greg D. Carmichael, certify that:
1. |
I have reviewed this report on Form 10-Q of Fifth Third Bancorp (the Registrant); |
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. |
The Registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) |
Evaluated the effectiveness of the Registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) |
Disclosed in this report any change in the Registrants internal control over financial reporting that occurred during the Registrants most recent fiscal quarter (the Registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrants internal control over financial reporting; and |
5. |
The Registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrants auditors and the audit committee of the Registrants board of directors (or persons performing the equivalent functions): |
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrants ability to record, process, summarize and report financial information; and |
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrants internal control over financial reporting. |
/s/ Greg D. Carmichael |
Greg D. Carmichael |
Chairman, President and Chief Executive Officer |
May 8, 2020 |
Exhibit 31(ii)
CERTIFICATION PURSUANT
TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Tayfun Tuzun, certify that:
1. |
I have reviewed this report on Form 10-Q of Fifth Third Bancorp (the Registrant); |
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. |
The Registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) |
Evaluated the effectiveness of the Registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) |
Disclosed in this report any change in the Registrants internal control over financial reporting that occurred during the Registrants most recent fiscal quarter (the Registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrants internal control over financial reporting; and |
5. |
The Registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrants auditors and the audit committee of the Registrants board of directors (or persons performing the equivalent functions): |
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrants ability to record, process, summarize and report financial information; and |
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrants internal control over financial reporting. |
/s/ Tayfun Tuzun |
Tayfun Tuzun |
Executive Vice President and |
Chief Financial Officer |
May 8, 2020 |
Exhibit 32(i)
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Fifth Third Bancorp (the Registrant) on Form 10-Q for the period ended March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Greg D. Carmichael, Chairman, President and Chief Executive Officer of the Registrant, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
(1) |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
/s/ Greg D. Carmichael |
Greg D. Carmichael |
Chairman, President and Chief Executive Officer |
May 8, 2020 |
Exhibit 32(ii)
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Fifth Third Bancorp (the Registrant) on Form 10-Q for the period ended March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Tayfun Tuzun, Executive Vice President and Chief Financial Officer of the Registrant, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
(1) |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
/s/ Tayfun Tuzun |
Tayfun Tuzun |
Executive Vice President and |
Chief Financial Officer |
May 8, 2020 |