Segment Information (Tables)

6 Months Ended

Jun. 30, 2020

Financial Information by Business Segment

The following tables present financial information by business segment for the periods indicated:


	Three Months Ended June 30, 2020
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	133	$	56	$	4	$	(25)	$	168
Provision (benefit) for credit losses	(3)		(2)		—		107		102
Net interest income after provision (benefit) for credit losses	136		58		4		(132)		66
Net gain on loan sales	—		303		—		—		303
Loan fees and charges	—		22		19		—		41
Loan administration (expense) income	(1)		(8)		36		(6)		21
Net return on mortgage servicing rights	—		(8)		—		—		(8)
Other noninterest income	12		1		—		8		21
Total noninterest income	11		310		55		2		378
Compensation and benefits	24		38		11		43		116
Commissions	—		61		—		—		61
Loan processing expense	1		14		9		1		25
Other noninterest expense	124		56		17		(103)		94
Total noninterest expense	149		169		37		(59)		296
Income (loss) before indirect overhead allocations and income taxes	(2)		199		22		(71)		148
Indirect overhead allocation income (expense)	(11)		(15)		(6)		32		—
Provision (benefit) for income taxes	(3)		39		3		(7)		32
Net income (loss)	$	(10)	$	145	$	13	$	(32)	$	116

Intersegment (expense) revenue	$	(69)	$	(34)	$	9	$	94	$	—

Average balances
Loans held-for-sale	—		5,645		—		—		5,645
Loans with government guarantees	—		858		—		—		858
Loans held-for-investment (2)	10,878		2,688		—		30		13,596
Total assets	11,292		10,598		69		4,302		26,261
Deposits	10,747		—		6,222		746		17,715

(1)Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients.

(2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment.


	Three Months Ended June 30, 2019
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	98	$	33	$	3	$	4	$	138
Provision for credit losses	15		1		—		1		17
Net interest income after provision for credit losses	83		32		3		3		121
Net gain (loss) on loan sales	(2)		78		—		(1)		75
Loan fees and charges	—		17		8		(1)		24
Loan administration (expense) income	—		(5)		30		(19)		6
Net return on mortgage servicing rights	—		4		—		1		5
Other noninterest income	15		3		—		40		58
Total noninterest income	13		97		38		20		168
Compensation and benefits	25		27		6		32		90
Commissions	—		25		—		—		25
Loan processing expense	2		8		10		1		21
Other noninterest expense	44		20		14		—		78
Total noninterest expense	71		80		30		33		214
Income (loss) before indirect overhead allocations and income taxes	25		49		11		(10)		75
Indirect overhead allocation income (expense)	(10)		(10)		(4)		24		—
Provision for income taxes	3		8		2		1		14
Net income	$	12	$	31	$	5	$	13	$	61

Intersegment (expense) revenue	$	(8)	$	9	$	6	$	(7)	$	—

Average balances
Loans held-for-sale	$	19	$	3,520	$	—	$	—	$	3,539
Loans with government guarantees	—		502		—		—		502
Loans held-for-investment (2)	10,563		21		—		29		10,613
Total assets	11,061		5,045		48		3,812		19,966
Deposits	10,238		—		3,501		420		14,159

(1)Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients.

(2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment.


	Six Months Ended June 30, 2020
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	237	$	98	$	8	$	(27)	$	316
Provision (benefit) for credit losses	5		(5)		—		116		116
Net interest income after provision (benefit) for credit losses	232		103		8		(143)		200
Net gain on loan sales	—		393		—		—		393
Loan fees and charges	—		39		28		—		67
Loan administration (expense) income	(2)		(15)		72		(22)		33
Net loss on mortgage servicing rights	—		(2)		—		—		(2)
Other noninterest income	28		2		—		14		44
Total noninterest income	26		417		100		(8)		535
Compensation and benefits	51		69		21		77		218
Commissions	1		89		—		—		90
Loan processing expense	3		24		16		2		45
Other noninterest expense	168		82		36		(107)		179
Total noninterest expense	223		264		73		(28)		532
Income (loss) before indirect overhead allocations and income taxes	35		256		35		(123)		203
Indirect overhead allocation income (expense)	(20)		(27)		(11)		58		—
Provision (benefit) for income taxes	3		48		5		(14)		42
Net income (loss)	$	12	$	181	$	19	$	(51)	$	161

Intersegment (expense) revenue	$	(75)	$	(34)	$	17	$	92	$	—

Average balances
Loans held-for-sale	$	—	$	5,447	$	—	$	—	$	5,447
Loans with government guarantees	—		834		—		—		834
Loans held-for-investment (2)	9,888		2,792		—		29		12,709
Total assets	10,340		10,207		59		4,231		24,837
Deposits	10,590		—		5,499		666		16,755

(1)Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients.

(2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment.


	Six Months Ended June 30, 2019
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	191	$	66	$	6	$	1	$	264
Provision for credit losses	16		1		—		—		17
Net interest income after provision for credit losses	175		65		6		1		247
Net gain (loss) on loan sales	(6)		129		—		1		124
Loan fees and charges	1		27		14		(1)		41
Loan administration (expense) income	(2)		(10)		59		(30)		17
Net return on mortgage servicing rights	—		11		—		—		11
Other noninterest income	28		7		—		49		84
Total noninterest income	21		164		73		19		277
Compensation and benefits	50		50		12		65		177
Commissions	—		38		—		—		38
Loan processing expense	4		13		20		1		38
Other noninterest expense	83		38		29		2		152
Total noninterest expense	137		139		61		68		405
Income (loss) before indirect overhead allocations and income taxes	59		90		18		(48)		119
Indirect overhead allocation income (expense)	(20)		(20)		(9)		49		—
Provision (benefit) for income taxes	8		15		2		(3)		22
Net income	$	31	$	55	$	7	$	4	$	97

Intersegment (expense) revenue	$	(8)	$	12	$	12	$	(16)	$	—

Average balances
Loans held-for-sale	$	45	$	3,358	$	—	$	—	$	3,403
Loans with government guarantees	—		478		—		—		478
Loans held-for-investment (2)	9,847		16		—		30		9,893
Total assets	10,323		4,836		52		3,995		19,206
Deposits	10,111		—		3,017		408		13,536

(1)Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients.

(2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment.