Condensed Financial Information (Parent Only)

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY)

NOTE 21—CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)



	Year Ended December 31,
	2019			2018			2017
Dividends from subsidiaries⁽¹⁾	$	1,770		$	1,150		$	350
Other revenues, net	404			410			377
Total net revenue	2,174			1,560			727
Total non-interest expense	603			575			611
Income before income tax expense and equity in income of consolidated subsidiaries	1,571			985			116
Income tax expense	184			149			75
Equity in undistributed income (loss) of subsidiaries	(432		)	216			573
Net income⁽²⁾	955			1,052			614
Other comprehensive income (loss)	247			(228		)	111
Comprehensive income	$	1,202		$	824		$	725


(1)	Dividends from subsidiaries includes the gross amount of dividends received.


(2)	Net income available to common shareholders was $915 million, $1.0 billion and $589 million for the years ended December 31, 2019, 2018, and 2017, respectively, and includes the impact of $40 million, $36 million, and $25 million of preferred stock dividends, respectively.

CONDENSED BALANCE SHEETS

(In millions)



	December 31,
	2019		2018
ASSETS
Cash and equivalents	$	614	$	340
Property and equipment, net	215		169
Investment in consolidated subsidiaries⁽¹⁾	7,578		7,722
Receivable from subsidiaries	29		24
Other assets	356		175
Total assets	$	8,792	$	8,430
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Corporate debt	$	1,410	$	1,409
Other liabilities	839		459
Total liabilities	2,249		1,868
Total shareholders’ equity	6,543		6,562
Total liabilities and shareholders’ equity	$	8,792	$	8,430


(1)	Includes $3.5 billion and $3.6 billion of investments in bank subsidiaries at December 31, 2019 and 2018, respectively.

CONDENSED STATEMENTS OF CASH FLOWS

(In millions)



	Year Ended December 31,
	2019			2018			2017
Cash flows from operating activities:
Net income	$	955		$	1,052		$	614
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	74			55			51
Equity in undistributed (income) loss from subsidiaries	432			(216		)	(573		)
Losses on early extinguishment of debt	—			—			58
Other	189			292			213
Net cash provided by operating activities	1,650			1,183			363
Cash flows from investing activities:
Capital expenditures for property and equipment	(87		)	(60		)	(59		)
Cash contributions to subsidiaries	(31		)	(464		)	(61		)
Other	—			2			6
Net cash used in investing activities	(118		)	(522		)	(114		)
Cash flows from financing activities:
Proceeds from issuance of senior notes	—			420			999
Payments on senior notes	—			—			(1,049		)
Proceeds from issuance of preferred stock	—			—			300
Repurchases of common stock	(1,085		)	(1,139		)	(362		)
Preferred stock dividends	(40		)	(36		)	(25		)
Common stock dividends	(135		)	(36		)	—
Other	2			(23		)	(35		)
Net cash used in financing activities	(1,258		)	(814		)	(172		)
Increase (decrease) in cash and equivalents	274			(153		)	77
Cash and equivalents, beginning of period	340			493			416
Cash and equivalents, end of period	$	614		$	340		$	493

Parent Company Guarantees

Guarantees are contingent commitments issued by the parent for the purpose of guaranteeing the financial obligations of a subsidiary to a third party. The financial obligations of the parent and the relevant subsidiary do not change by the existence of a parent guarantee. Rather, upon the occurrence of certain events, the guarantee shifts ultimate payment responsibility of an existing financial obligation from the relevant subsidiary to the parent company. During the year ended December 31, 2019, no claims had been made against the parent for payment under any guarantees and thus, no obligations have been recognized. The parent has not provided any guarantees that are collateralized.