Variable Interest Entities

3 Months Ended

Mar. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

NOTE 8 — VARIABLE INTEREST ENTITIES

Variable Interest Entities (“VIE”)

Described below are the results of the Company’s assessment of its variable interests in order to determine its current status with regard to being the VIE primary beneficiary (“PB”). See Note 1 — Business and Summary of Significant Accounting Policies in the 2019 Form 10-K for additional information on accounting for VIEs.

Consolidated VIEs

At March 31, 2020 and December 31, 2019, there were no consolidated VIEs.

Unconsolidated VIEs

Unconsolidated VIEs include agency and non-agency securitization structures, limited partnership interests and joint ventures where the Company’s involvement is limited to an investor interest and the Company does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance or obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

The table below presents potential losses that would be incurred under hypothetical circumstances, such that the value of its interests and any associated collateral declines to zero and assuming no recovery or offset from any economic hedges. The Company believes the possibility is remote under this hypothetical scenario; accordingly, this required disclosure is not an indication of expected loss.

Unconsolidated VIEs Carrying Value (dollars in millions)

	March 31, 2020				December 31, 2019
	Securities		Partnership Investment		Securities		Partnership Investment
Agency securities	$	5,550.4	$	—	$	5,338.6	$	—
Tax credit equity investments		—		287.3		—		277.1
Equity investments		—		102.9		—		84.0
Total Assets	$	5,550.4	$	390.2	$	5,338.6	$	361.1
Commitments to tax credit investments⁽¹⁾	$	—	$	119.1	$	—	$	120.1
Total Liabilities	$	—	$	119.1	$	—	$	120.1
Maximum loss exposure⁽²⁾	$	5,550.4	$	390.2	$	5,338.6	$	361.1

⁽¹⁾	^{Represents commitments to invest in affordable housing investments, and other investments qualifying for community reinvestment tax credits. These commitments are payable on demand and are recorded in Other liabilities.}

⁽²⁾	^{Maximum loss exposure to the unconsolidated VIEs excludes the liability for representations and warranties, for corporate guarantees, and excludes servicing advances.}