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Shareholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2017
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract]  
Summary Of Preferred Stock
Preferred stock is summarized as follows:

 
 
 
 
 
Shares at
December 31, 2017
 
 
 
 
 
 
 
 
 
 
(Dollar amounts in millions)
Carrying value at
December 31,
 
Authorized
 
Outstanding
 
 
 
Dividends payable
 
Earliest
redemption date
 
Rate following earliest redemption date
 
Dividends payable after rate change
2017
 
2016
 
(thousands)
 
(thousands)
 
Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(when applicable)
Series A
$
67

 
$
67

 
140,000

 
66,139

 
> of 4.0% or 3mL+0.52%
 
Qtrly Mar,Jun,Sep,Dec
 
Dec 15, 2011
 

 

Series F
—

 
144

 
—

 
—

 
7.9%
 
Qtrly Mar,Jun,Sep,Dec
 
Jun 15, 2017
 
 
 
 
Series G
138

 
138

 
200,000

 
138,391

 
6.3%
 
Qtrly Mar,Jun,Sep,Dec
 
Mar 15, 2023
 
annual float-ing rate = 3mL+4.24%
 

Series H
126

 
126

 
126,221

 
126,221

 
5.75%
 
Qtrly Mar,Jun,Sep,Dec
 
Jun 15, 2019
 

 

Series I
99

 
99

 
300,893

 
98,555

 
5.8%
 
Semi-annually Jun,Dec
 
Jun 15, 2023
 
annual float-ing rate = 3mL+3.8%
 
Qtrly Mar,Jun,Sep,Dec
Series J
136

 
136

 
195,152

 
136,368

 
7.2%
 
Semi-annually Mar,Sep
 
Sep 15, 2023
 
annual float-ing rate = 3mL+4.44%
 
Qtrly Mar,Jun,Sep,Dec
Total
$
566

 
$
710

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
 
 
 
 
Statement of Income (SI) Balance Sheet (BS)
 
 
(In millions)
 
Amounts reclassified from AOCI 1
 
 
 
Details about AOCI components
 
2017
 
2016
 
2015
 
 
Affected line item
 
 
 
 
 
 
 
 
 
 
 
Net realized gains (losses) on investment securities
 
$
—

 
$
—

 
$
(139
)
 
SI
 
Securities losses, net
Income tax expense (benefit)
 
—

 
—

 
(53
)
 
 
 
 
 
 
$
—

 
$
—

 
$
(86
)
 
 
 
 
Net unrealized gains on derivative instruments
 
$
4

 
$
11

 
$
9

 
SI
 
Interest and fees on loans
Income tax expense
 
2

 
4

 
3

 
 
 
 
 
 
$
2

 
$
7

 
$
6

 
 
 
 
Amortization of net actuarial loss
 
$
(7
)
 
$
(8
)
 
$
(6
)
 
SI
 
Salaries and employee benefits
Income tax benefit
 
(3
)
 
(3
)
 
(2
)
 
 
 
 
 
 
$
(4
)
 
$
(5
)
 
$
(4
)
 
 
 
 
1 
Negative reclassification amounts indicate decreases to earnings in the statement of income and increases to balance sheet assets. The opposite applies to positive reclassification amounts.
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]
Changes in AOCI by component are as follows:
(In millions)

Net unrealized gains (losses) on investment securities
 
Net unrealized gains (losses) on derivatives and other
 
Pension and post-retirement
 
Total
2017
 
 
 
 
 
 
 
Balance at December 31, 2016
$
(92
)
 
$
1

 
$
(31
)
 
$
(122
)
Other comprehensive income (loss) before reclassifications, net of tax
(2
)
 
(1
)
 
9

 
6

Amounts reclassified from AOCI, net of tax
—

 
(2
)
 
4

 
2

Effect of new tax rates from Tax Cuts and Jobs Act of 2017
(20
)
 
(1
)
 
(4
)
 
(25
)
Other comprehensive income (loss)
(22
)
 
(4
)
 
9

 
(17
)
Balance at December 31, 2017
$
(114
)
 
$
(3
)
 
$
(22
)
 
$
(139
)
Income tax expense (benefit) included in other comprehensive income (loss)
$
19

 
$
(1
)
 
$
11

 
$
29

2016
 
 
 
 
 
 
 
Balance at December 31, 2015
$
(18
)
 
$
1

 
$
(38
)
 
$
(55
)
Other comprehensive income (loss) before reclassifications, net of tax
(74
)
 
7

 
2

 
(65
)
Amounts reclassified from AOCI, net of tax
—

 
(7
)
 
5

 
(2
)
Other comprehensive income (loss)
(74
)
 
—

 
7

 
(67
)
Balance at December 31, 2016
$
(92
)
 
$
1

 
$
(31
)
 
$
(122
)
Income tax expense (benefit) included in other comprehensive income (loss)
$
(45
)
 
$
—

 
$
5

 
$
(40
)
Shareholders' Equity
13.
SHAREHOLDERS’ EQUITY
Preferred Stock
Preferred stock is without par value and has a liquidation preference of $1,000 per share, or $25 per depositary share. Except for Series I and J, all preferred shares were issued in the form of depositary shares, with each depositary share representing a 1/40th ownership interest in a share of the preferred stock. All preferred shares are registered with the SEC.
In general, preferred shareholders may receive asset distributions before common shareholders; however, preferred shareholders have only limited voting rights generally with respect to certain provisions of the preferred stock, the issuance of senior preferred stock, and the election of directors. Preferred stock dividends reduce earnings applicable to common shareholders and are paid on the 15th day of the months indicated in the following schedule. Dividends are approved by the Board of Directors and are subject to regulatory non-objection to a stress test and capital plan submitted to the Federal Reserve pursuant to the annual Horizontal Capital Review, also referred to as Comprehensive Capital Analysis and Review (“HCR/CCAR”) process. Redemption of the preferred stock is at the Company’s option after the expiration of any applicable redemption restrictions. The redemption amount is computed at the per share liquidation preference plus any declared but unpaid dividends. Redemptions are subject to certain regulatory provisions, including the previously noted capital plan non-objection for a submitted capital plan in a given year.
Preferred stock is summarized as follows:

 
 
 
 
 
Shares at
December 31, 2017
 
 
 
 
 
 
 
 
 
 
(Dollar amounts in millions)
Carrying value at
December 31,
 
Authorized
 
Outstanding
 
 
 
Dividends payable
 
Earliest
redemption date
 
Rate following earliest redemption date
 
Dividends payable after rate change
2017
 
2016
 
(thousands)
 
(thousands)
 
Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(when applicable)
Series A
$
67

 
$
67

 
140,000

 
66,139

 
> of 4.0% or 3mL+0.52%
 
Qtrly Mar,Jun,Sep,Dec
 
Dec 15, 2011
 

 

Series F
—

 
144

 
—

 
—

 
7.9%
 
Qtrly Mar,Jun,Sep,Dec
 
Jun 15, 2017
 
 
 
 
Series G
138

 
138

 
200,000

 
138,391

 
6.3%
 
Qtrly Mar,Jun,Sep,Dec
 
Mar 15, 2023
 
annual float-ing rate = 3mL+4.24%
 

Series H
126

 
126

 
126,221

 
126,221

 
5.75%
 
Qtrly Mar,Jun,Sep,Dec
 
Jun 15, 2019
 

 

Series I
99

 
99

 
300,893

 
98,555

 
5.8%
 
Semi-annually Jun,Dec
 
Jun 15, 2023
 
annual float-ing rate = 3mL+3.8%
 
Qtrly Mar,Jun,Sep,Dec
Series J
136

 
136

 
195,152

 
136,368

 
7.2%
 
Semi-annually Mar,Sep
 
Sep 15, 2023
 
annual float-ing rate = 3mL+4.44%
 
Qtrly Mar,Jun,Sep,Dec
Total
$
566

 
$
710

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Preferred Stock Redemptions
During 2017, we redeemed all outstanding shares of our 7.9% Series F preferred stock for a cash payment of approximately $144 million. The total reduction to net earnings applicable to common shareholders associated with the preferred stock redemption was $2 million due to the accelerated recognition of preferred stock issuance costs.
During 2016, we launched a cash tender offer to purchase up to $120 million par amount of certain outstanding preferred stock. Our preferred stock decreased by $118 million as a result of the tender offer, including the purchase of $26 million of our Series I preferred stock, $59 million of our Series J preferred stock, and $33 million of our Series G preferred stock for an aggregate cash payment of $126 million. The total reduction to net earnings applicable to common shareholders associated with the preferred stock redemption was $10 million. The size and terms of the redemptions in 2017 and 2016 were determined in accordance with the Company’s 2016 and 2015 capital plans. These preferred stock redemptions benefit the Company by decreasing the amount of preferred dividends paid.
Common Stock
The Company’s common stock is traded on the NASDAQ Global Select Market. As of December 31, 2017, there were 198 million shares of no par common stock outstanding.
The Company continued its common stock repurchase program during 2017 and repurchased 7 million shares of common shares outstanding with a fair value of $320 million at an average price of $45.66 per share. During the first quarter of 2018, the Company repurchased an additional 2 million shares of common stock outstanding with a fair value of $115 million at an average price of $53.46 per share, leaving $120 million of repurchase capacity remaining in the 2017 capital plan (which spans the timeframe of July 2017 to June 2018).
During 2016 the Company repurchased 3 million shares of common shares outstanding with a fair value of $90 million at an average price of $31.15 per share.
Common Stock Warrants
As of December 31, 2017, 29.3 million common stock warrants with an exercise price of $35.37 were outstanding. These warrants expire on May 22, 2020. In addition, as of December 31, 2017, 5.8 million common stock warrants with an exercise price of $36.27 per share were outstanding. These warrants expire on November 14, 2018 and were associated with the preferred stock issued under the Troubled Asset Relief Program which was redeemed in 2012.
Between January 1, 2018 and February 20, 2018, 1.0 million shares of common stock were issued from the cashless exercise of 3.2 million common stock warrants which expire on November 14, 2018. After these common stock warrant exercises, 29.3 million and 2.6 million common stock warrants, which expire on May 22, 2020 and November 14, 2018, respectively, remain outstanding.
Accumulated Other Comprehensive Income
During 2017, $25 million was reclassified from AOCI to retained earnings as a result of the decreased corporate income tax rate from the Tax Cuts and Jobs Act of 2017.
Changes in AOCI by component are as follows:
(In millions)

Net unrealized gains (losses) on investment securities
 
Net unrealized gains (losses) on derivatives and other
 
Pension and post-retirement
 
Total
2017
 
 
 
 
 
 
 
Balance at December 31, 2016
$
(92
)
 
$
1

 
$
(31
)
 
$
(122
)
Other comprehensive income (loss) before reclassifications, net of tax
(2
)
 
(1
)
 
9

 
6

Amounts reclassified from AOCI, net of tax
—

 
(2
)
 
4

 
2

Effect of new tax rates from Tax Cuts and Jobs Act of 2017
(20
)
 
(1
)
 
(4
)
 
(25
)
Other comprehensive income (loss)
(22
)
 
(4
)
 
9

 
(17
)
Balance at December 31, 2017
$
(114
)
 
$
(3
)
 
$
(22
)
 
$
(139
)
Income tax expense (benefit) included in other comprehensive income (loss)
$
19

 
$
(1
)
 
$
11

 
$
29

2016
 
 
 
 
 
 
 
Balance at December 31, 2015
$
(18
)
 
$
1

 
$
(38
)
 
$
(55
)
Other comprehensive income (loss) before reclassifications, net of tax
(74
)
 
7

 
2

 
(65
)
Amounts reclassified from AOCI, net of tax
—

 
(7
)
 
5

 
(2
)
Other comprehensive income (loss)
(74
)
 
—

 
7

 
(67
)
Balance at December 31, 2016
$
(92
)
 
$
1

 
$
(31
)
 
$
(122
)
Income tax expense (benefit) included in other comprehensive income (loss)
$
(45
)
 
$
—

 
$
5

 
$
(40
)

 
 
 
 
Statement of Income (SI) Balance Sheet (BS)
 
 
(In millions)
 
Amounts reclassified from AOCI 1
 
 
 
Details about AOCI components
 
2017
 
2016
 
2015
 
 
Affected line item
 
 
 
 
 
 
 
 
 
 
 
Net realized gains (losses) on investment securities
 
$
—

 
$
—

 
$
(139
)
 
SI
 
Securities losses, net
Income tax expense (benefit)
 
—

 
—

 
(53
)
 
 
 
 
 
 
$
—

 
$
—

 
$
(86
)
 
 
 
 
Net unrealized gains on derivative instruments
 
$
4

 
$
11

 
$
9

 
SI
 
Interest and fees on loans
Income tax expense
 
2

 
4

 
3

 
 
 
 
 
 
$
2

 
$
7

 
$
6

 
 
 
 
Amortization of net actuarial loss
 
$
(7
)
 
$
(8
)
 
$
(6
)
 
SI
 
Salaries and employee benefits
Income tax benefit
 
(3
)
 
(3
)
 
(2
)
 
 
 
 
 
 
$
(4
)
 
$
(5
)
 
$
(4
)
 
 
 
 
1 
Negative reclassification amounts indicate decreases to earnings in the statement of income and increases to balance sheet assets. The opposite applies to positive reclassification amounts.
Deferred Compensation
Deferred compensation consists of invested assets, including the Company’s common stock, which are held in rabbi trusts for certain employees and directors. At both December 31, 2017 and 2016, the cost of the common stock included in retained earnings was approximately $14 million. We consolidate the fair value trust invested assets along with the total obligations and include them in other assets and other liabilities, respectively, in the balance sheet. At December 31, 2017 and 2016, total invested assets were approximately $102 million and $91 million and total obligations were approximately $116 million and $105 million, respectively.