Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Financial Information by Business Segment

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


	Three Months Ended September 30, 2020
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	158	$	49	$	5	$	(32)	$	180
Provision (benefit) for credit losses	(2)		(3)		—		37		32
Net interest income after provision (benefit) for credit losses	160		52		5		(69)		148
Net gain on loan sales	2		344		—		—		346
Loan fees and charges	—		29		16		—		45
Net return on mortgage servicing rights	—		12		—		—		12
Loan administrative (expense) income	(1)		(10)		40		(3)		26
Other noninterest income	15		3		—		5		23
Total noninterest income	16		378		56		2		452
Compensation and benefits	28		42		12		41		123
Commissions	1		71		—		—		72
Loan processing expense	1		15		8		—		24
Other noninterest expense	63		32		21		(30)		86
Total noninterest expense	93		160		41		11		305
Income (loss) before indirect overhead allocations and income taxes	83		270		20		(78)		295
Indirect overhead allocation income (expense)	(11)		(18)		(4)		33		—
Provision (benefit) for income taxes	15		53		3		2		73
Net income (loss)	$	57	$	199	$	13	$	(47)	$	222

Intersegment (expense) revenue	$	(22)	$	(12)	$	10	$	24	$	—

Average balances
Loans held-for-sale	$	—	$	5,602	$	—	$	—	$	5,602
Loans with government guarantees	—		2,122		—		—		2,122
Loans held-for-investment (2)	12,311		2,498		—		30		14,839
Total assets	12,603		11,195		78		4,401		28,277
Deposits	11,265		—		7,329		967		19,561

(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 September 30, 2019
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	105	$	37	$	5	$	(1)	$	146
Provision (benefit) for credit losses	—		(2)		—		3		1
Net interest income after provision for credit losses	105		39		5		(4)		145
Net gain (loss) on loan sales	(4)		114		—		—		110
Loan fees and charges	—		20		8		1		29
Net return on mortgage servicing rights	—		(2)		—		—		(2)
Loan administrative (expense) income	(1)		(7)		32		(19)		5
Other noninterest income	18		2		—		9		29
Total noninterest income	13		127		40		(9)		171
Compensation and benefits	27		29		7		35		98
Commissions	—		37		—		1		38
Loan processing expense	1		10		10		1		22
Other noninterest expense	42		25		14		(1)		80
Total noninterest expense	70		101		31		36		238
Income (loss) before indirect overhead allocations and income taxes	48		65		14		(49)		78
Indirect overhead allocation income (expense)	(10)		(10)		(4)		24		—
Provision (benefit) for income taxes	8		11		2		(6)		15
Net income (loss)	$	30	$	44	$	8	$	(19)	$	63

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

Average balances
Loans held-for-sale	$	20	$	3,766	$	—	$	—	$	3,786
Loans with government guarantees	—		574		—		—		574
Loans held-for-investment (2)	11,681		33		—		29		11,743
Total assets	12,184		5,378		38		3,597		21,197
Deposits	10,513		—		4,556		748		15,817

(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.


	Nine Months Ended September 30, 2020
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	395	$	147	$	14	$	(60)	$	496
Provision (benefit) for credit losses	3		(8)		—		153		148
Net interest income after provision (benefit) for credit losses	392		155		14		(213)		348
Net gain on loan sales	2		737		—		—		739
Loan fees and charges	1		68		43		—		112
Net loss on mortgage servicing rights	—		10		—		—		10
Loan administrative (expense) income	(2)		(25)		112		(26)		59
Other noninterest income	43		5		—		20		68
Total noninterest income	44		795		155		(6)		988
Compensation and benefits	79		111		33		118		341
Commissions	2		160		—		—		162
Loan processing expense	4		39		24		2		69
Other noninterest expense	231		114		57		(137)		265
Total noninterest expense	316		424		114		(17)		837
Income (loss) before indirect overhead allocations and income taxes	120		526		55		(202)		499
Indirect overhead allocation income (expense)	(31)		(45)		(15)		91		—
Provision (benefit) for income taxes	19		101		8		(13)		115
Net income (loss)	$	70	$	380	$	32	$	(98)	$	384

Intersegment (expense) revenue	$	(97)	$	(46)	$	27	$	116	$	—

Average balances
Loans held-for-sale	$	—	$	5,499	$	—	$	—	$	5,499
Loans with government guarantees	—		1,267		—		—		1,267
Loans held-for-investment (2)	10,702		2,693		—		29		13,424
Total assets	11,100		10,539		65		4,288		25,992
Deposits	10,817		—		6,114		767		17,698

(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.


	Nine Months Ended September 30, 2019
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	296	$	103	$	11	$	—	$	410
Provision (benefit) for credit losses	17		(3)		—		4		18
Net interest income after provision for credit losses	279		106		11		(4)		392
Net gain (loss) on loan sales	(10)		243		—		1		234
Loan fees and charges	1		47		22		—		70
Net return on mortgage servicing rights	—		9		—		—		9
Loan administrative (expense) income	(3)		(16)		91		(50)		22
Other noninterest income	46		9		—		58		113
Total noninterest income	34		292		113		9		448
Compensation and benefits	77		79		19		100		275
Commissions	1		75		—		—		76
Loan processing expense	5		23		30		2		60
Other noninterest expense	125		63		43		1		232
Total noninterest expense	208		240		92		103		643
Income (loss) before indirect overhead allocations and income taxes	105		158		32		(98)		197
Indirect overhead allocation income (expense)	(30)		(30)		(13)		73		—
Provision (benefit) for income taxes	16		26		4		(9)		37
Net income (loss)	$	59	$	102	$	15	$	(16)	$	160

Intersegment (expense) revenue	$	(14)	$	19	$	19	$	(24)	$	—

Average balances
Loans held-for-sale	$	37	$	3,495	$	—	$	—	$	3,532
Loans with government guarantees	—		511		—		—		511
Loans held-for-investment (2)	10,465		22		—		29		10,516
Total assets	10,950		5,018		47		3,862		19,877
Deposits	10,247		—		3,536		522		14,305

(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.