QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
Common Stock, par value $5.00 | ||
Depositary Shares Each Representing a 1/4,000 Interest in a Share of Fixed-to- Floating Rate Non-Cumulative Perpetual Preferred Stock, Series P | ||
Depositary Shares Each Representing a 1/4,000 Interest in a Share of 5.375% Non-Cumulative Perpetual Preferred Stock, Series Q |
Pages | |
PART I – FINANCIAL INFORMATION | |
Item 1. Financial Statements (Unaudited). | |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A). | |
Item 3. Quantitative and Qualitative Disclosures about Market Risk. | 18-33, 55-61 and 64-69 |
Item 4. Controls and Procedures. | |
MD&A TABLE REFERENCE | ||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS TABLE REFERENCE | ||
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Dollars in millions, except per share data Unaudited | Three months ended June 30 | Six months ended June 30 | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Financial Results (a) | |||||||||||||
Revenue | |||||||||||||
Net interest income | $ | 2,498 | $ | 2,413 | $ | 4,973 | $ | 4,774 | |||||
Noninterest income | 1,941 | 1,911 | 3,752 | 3,661 | |||||||||
Total revenue | 4,439 | 4,324 | 8,725 | 8,435 | |||||||||
Provision for credit losses | 180 | 80 | 369 | 172 | |||||||||
Noninterest expense | 2,611 | 2,584 | 5,189 | 5,111 | |||||||||
Income before income taxes and noncontrolling interests | $ | 1,648 | $ | 1,660 | $ | 3,167 | $ | 3,152 | |||||
Net income | $ | 1,374 | $ | 1,356 | $ | 2,645 | $ | 2,595 | |||||
Less: | |||||||||||||
Net income attributable to noncontrolling interests | 12 | 10 | 22 | 20 | |||||||||
Preferred stock dividends | 55 | 55 | 118 | 118 | |||||||||
Preferred stock discount accretion and redemptions | 1 | 1 | 2 | 2 | |||||||||
Net income attributable to common shareholders | 1,306 | 1,290 | 2,503 | 2,455 | |||||||||
Less: | |||||||||||||
Dividends and undistributed earnings allocated to participating securities | 4 | 5 | 9 | 10 | |||||||||
Impact of BlackRock earnings per share dilution | 2 | 3 | 5 | 5 | |||||||||
Net income attributable to diluted common shares | $ | 1,300 | $ | 1,282 | $ | 2,489 | $ | 2,440 | |||||
Diluted earnings per common share | $ | 2.88 | $ | 2.72 | $ | 5.49 | $ | 5.15 | |||||
Cash dividends declared per common share | $ | .95 | $ | .75 | $ | 1.90 | $ | 1.50 | |||||
Effective tax rate (b) | 16.6 | % | 18.3 | % | 16.5 | % | 17.7 | % | |||||
Performance Ratios | |||||||||||||
Net interest margin (c) | 2.91 | % | 2.96 | % | 2.94 | % | 2.94 | % | |||||
Noninterest income to total revenue | 44 | % | 44 | % | 43 | % | 43 | % | |||||
Efficiency | 59 | % | 60 | % | 59 | % | 61 | % | |||||
Return on: | |||||||||||||
Average common shareholders’ equity | 11.75 | % | 12.13 | % | 11.45 | % | 11.59 | % | |||||
Average assets | 1.39 | % | 1.45 | % | 1.36 | % | 1.39 | % |
(a) | The Executive Summary and Consolidated Income Statement Review portions of this Financial Review section provide information regarding items impacting the comparability of the periods presented. |
(b) | The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax. |
(c) | Calculated as annualized taxable-equivalent net interest income divided by average interest-earning assets. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP in the Consolidated Income Statement. For additional information, see Reconciliation of Taxable-Equivalent Net Interest Income (Non-GAAP) in the Statistical Information (Unaudited) section in Item 1 of this Report. |
Unaudited | June 30 2019 | December 31 2018 | June 30 2018 | |||||||
Balance Sheet Data (dollars in millions, except per share data) | ||||||||||
Assets | $ | 405,761 | $ | 382,315 | $ | 380,711 | ||||
Loans | $ | 237,215 | $ | 226,245 | $ | 222,855 | ||||
Allowance for loan and lease losses | $ | 2,721 | $ | 2,629 | $ | 2,581 | ||||
Interest-earning deposits with banks (b) | $ | 18,362 | $ | 10,893 | $ | 21,972 | ||||
Investment securities | $ | 88,303 | $ | 82,701 | $ | 80,125 | ||||
Loans held for sale | $ | 1,144 | $ | 994 | $ | 1,325 | ||||
Equity investments (c) | $ | 13,001 | $ | 12,894 | $ | 12,430 | ||||
Mortgage servicing rights | $ | 1,627 | $ | 1,983 | $ | 2,045 | ||||
Goodwill | $ | 9,221 | $ | 9,218 | $ | 9,218 | ||||
Other assets | $ | 34,193 | $ | 34,408 | $ | 27,897 | ||||
Noninterest-bearing deposits | $ | 69,867 | $ | 73,960 | $ | 79,047 | ||||
Interest-bearing deposits | $ | 203,393 | $ | 193,879 | $ | 185,838 | ||||
Total deposits | $ | 273,260 | $ | 267,839 | $ | 264,885 | ||||
Borrowed funds | $ | 69,025 | $ | 57,419 | $ | 59,222 | ||||
Total shareholders’ equity | $ | 49,340 | $ | 47,728 | $ | 46,904 | ||||
Common shareholders’ equity | $ | 45,349 | $ | 43,742 | $ | 42,917 | ||||
Accumulated other comprehensive income (loss) | $ | 631 | $ | (725 | ) | $ | (940 | ) | ||
Book value per common share | $ | 101.53 | $ | 95.72 | $ | 92.26 | ||||
Period-end common shares outstanding (in millions) | 447 | 457 | 465 | |||||||
Loans to deposits | 87 | % | 84 | % | 84 | % | ||||
Common shareholders’ equity to total assets | 11.2 | % | 11.4 | % | 11.3 | % | ||||
Client Assets (in billions) | ||||||||||
Discretionary client assets under management | $ | 162 | $ | 148 | $ | 149 | ||||
Nondiscretionary client assets under administration | 132 | 124 | 130 | |||||||
Total client assets under administration | 294 | 272 | 279 | |||||||
Brokerage account client assets | 52 | 47 | 49 | |||||||
Total client assets | $ | 346 | $ | 319 | $ | 328 | ||||
Basel III Capital Ratios (d) | ||||||||||
Common equity Tier 1 | 9.7 | % | 9.6 | % | 9.5 | % | ||||
Tier 1 risk-based | 10.9 | % | 10.8 | % | 10.7 | % | ||||
Total capital risk-based (e) | 12.8 | % | 13.0 | % | 12.6 | % | ||||
Leverage | 9.6 | % | 9.4 | % | 9.4 | % | ||||
Supplementary leverage | 8.0 | % | 7.8 | % | 7.8 | % | ||||
Asset Quality | ||||||||||
Nonperforming loans to total loans | .73 | % | .75 | % | .77 | % | ||||
Nonperforming assets to total loans, OREO and foreclosed assets | .78 | % | .80 | % | .83 | % | ||||
Nonperforming assets to total assets | .46 | % | .47 | % | .49 | % | ||||
Net charge-offs to average loans (for the three months ended) (annualized) | .24 | % | .19 | % | .20 | % | ||||
Allowance for loan and lease losses to total loans | 1.15 | % | 1.16 | % | 1.16 | % | ||||
Allowance for loan and lease losses to total nonperforming loans | 158 | % | 155 | % | 150 | % | ||||
Accruing loans past due 90 days or more (in millions) | $ | 524 | $ | 629 | $ | 586 |
(a) | The Executive Summary and Consolidated Balance Sheet Review portions of this Financial Review provide information regarding items impacting the comparability of the periods presented. |
(b) | Amounts include balances held with the Federal Reserve Bank of Cleveland (Federal Reserve Bank) of $18.1 billion, $10.5 billion and $21.6 billion as of June 30, 2019, December 31, 2018 and June 30, 2018, respectively. |
(c) | Amounts include our equity interest in BlackRock, Inc.. |
(d) | All ratios are calculated based on the standardized approach. See Basel III Capital discussion in the Capital Management portion of the Risk Management section of this Financial Review and the capital discussion in the Banking Regulation and Supervision section of Item 1 Business and Item 1A Risk Factors in our 2018 Form 10-K. |
(e) | The 2019 and 2018 Basel III Total risk-based capital ratios include nonqualifying trust preferred capital securities of $60 million and $80 million, respectively, that are subject to a phase-out period that runs through 2021. |
• | Expanding our leading banking franchise to new markets and digital platforms; |
• | Deepening customer relationships by delivering a superior banking experience and financial solutions; and |
• | Leveraging technology to innovate and enhance products, services, security and processes. |
• | Total revenue increased $115 million, or 3%, to $4.4 billion. |
• | Net interest income increased $85 million, or 4%, to $2.5 billion. |
• | Net interest margin decreased to 2.91% compared to 2.96% for the second quarter of 2018. |
• | Noninterest income of $1.9 billion increased $30 million, or 2%. |
• | Provision for credit losses increased to $180 million compared to $80 million for the second quarter of 2018. |
• | Noninterest expense of $2.6 billion increased $27 million, or 1%. |
• | We generated positive operating leverage in the second quarter of 2019. |
• | Total assets increased $23.4 billion, or 6%, to $405.8 billion. |
• | Total loans increased $11.0 billion, or 5%, to $237.2 billion. |
• | Total commercial lending grew $9.3 billion, or 6%, to $161.6 billion. |
• | Total consumer lending increased $1.7 billion, or 2%, to $75.6 billion. |
• | Investment securities increased $5.6 billion, or 7%, to $88.3 billion. |
• | Interest-earning deposits with banks, primarily with the Federal Reserve Bank, increased $7.5 billion, to $18.4 billion. |
• | Total deposits increased $5.4 billion, or 2%, to $273.3 billion. |
• | At June 30, 2019 compared to December 31, 2018: |
• | Nonperforming assets increased $42 million, or 2%, to $1.9 billion. |
• | Overall loan delinquencies decreased $176 million, or 12%, to $1.3 billion. |
• | Net charge-offs were $142 million, or .24% of average loans on annualized basis, in the second quarter of 2019 compared to $109 million, or .20%, for the second quarter of 2018. |
• | The allowance for loan and lease losses (ALLL) to total loans was 1.15% at June 30, 2019 and 1.16% at December 31, 2018. |
• | The Basel III common equity Tier 1 capital ratio was 9.7% at June 30, 2019, compared with 9.6% at December 31, 2018. |
• | Common shareholders' equity increased to $45.3 billion at June 30, 2019 compared to $43.7 billion at December 31, 2018. |
• | In the second quarter of 2019, we returned $1.2 billion of capital to shareholders through repurchases of 6.0 million common shares for $802 million and dividends on common shares of $431 million. |
• | In June 2019, we announced share repurchase programs of up to $4.3 billion for the four-quarter period beginning in the third quarter of 2019. |
• | In July 2019, our board of directors raised the quarterly cash dividend on common stock to $1.15 per share, an increase of 20 cents per share, or 21%, effective with the August dividend. |
• | U.S. economic growth has accelerated over the past two years to above its long-run trend. However, growth is expected to slow over the course of 2019 and into 2020. |
• | Further gradual improvement in the labor market will occur this year, including job gains and rising wages, which would be a positive indicator for consumer spending. |
• | Slower global economic growth, trade restrictions and geopolitical concerns are downside risks to the forecast. |
• | Inflation has slowed in early 2019, to below the Federal Open Market Committee's (FOMC's) 2% objective, but is expected to gradually increase over the next two years. |
• | Our baseline forecast is for two 0.25% cuts to the federal funds rate in July and October 2019, taking the rate to a range of 1.75% to 2.00% by the end of 2019. |
• | Average loans to be up approximately 1%; |
• | Net interest income to remain stable; |
• | Fee income to increase by low-single digits, on a percentage basis. Fee income consists of asset management, consumer services, corporate services, residential mortgage and service charges on deposits; |
• | The quarterly run rate of other noninterest income to be in the range of $250 million to $300 million, excluding net securities gains (losses) and activity related to Visa Class B common shares; |
• | Provision for credit losses to be between $150 million and $200 million; and |
• | Noninterest expense to remain stable. |
• | Average loans to be up approximately 5%; |
• | Revenue growth on the higher end of low-single digits, on a percentage basis; |
• | Noninterest expense to increase on the lower end of low-single digits, on a percentage basis; |
• | The effective tax rate to be approximately 17%; and |
• | To generate positive operating leverage. |
2019 | 2018 | ||||||||||||||||||||||
Three months ended June 30 Dollars in millions | Average Balances | Average Yields/ Rates | Interest Income/ Expense | Average Balances | Average Yields/ Rates | Interest Income/ Expense | |||||||||||||||||
Assets | |||||||||||||||||||||||
Interest-earning assets | |||||||||||||||||||||||
Investment securities | $ | 83,641 | 3.03 | % | $ | 635 | $ | 77,479 | 2.91 | % | $ | 564 | |||||||||||
Loans | 234,845 | 4.56 | % | 2,693 | 222,684 | 4.23 | % | 2,367 | |||||||||||||||
Interest-earning deposits with banks | 13,469 | 2.38 | % | 80 | 21,017 | 1.78 | % | 93 | |||||||||||||||
Other | 13,145 | 3.55 | % | 116 | 6,905 | 4.98 | % | 87 | |||||||||||||||
Total interest-earning assets/interest income | $ | 345,100 | 4.06 | % | 3,524 | $ | 328,085 | 3.78 | % | 3,111 | |||||||||||||
Liabilities | |||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||
Interest-bearing deposits | $ | 201,234 | 1.03 | % | 515 | $ | 184,357 | .57 | % | 261 | |||||||||||||
Borrowed funds | 62,335 | 3.08 | % | 484 | 58,966 | 2.74 | % | 408 | |||||||||||||||
Total interest-bearing liabilities/interest expense | $ | 263,569 | 1.51 | % | 999 | $ | 243,323 | 1.10 | % | 669 | |||||||||||||
Net interest margin/income (Non-GAAP) | 2.91 | % | 2,525 | 2.96 | % | 2,442 | |||||||||||||||||
Taxable-equivalent adjustments | (27 | ) | (29 | ) | |||||||||||||||||||
Net interest income (GAAP) | $ | 2,498 | $ | 2,413 |
2019 | 2018 | ||||||||||||||||||||||
Six months ended June 30 Dollars in millions | Average Balances | Average Yields/ Rates | Interest Income/ Expense | Average Balances | Average Yields/ Rates | Interest Income/ Expense | |||||||||||||||||
Assets | |||||||||||||||||||||||
Interest-earning assets | |||||||||||||||||||||||
Investment securities | $ | 82,983 | 3.04 | % | $ | 1,262 | $ | 76,075 | 2.85 | % | $ | 1,083 | |||||||||||
Loans | 231,712 | 4.58 | % | 5,315 | 221,899 | 4.16 | % | 4,617 | |||||||||||||||
Interest-earning deposits with banks | 14,238 | 2.41 | % | 171 | 23,329 | 1.64 | % | 191 | |||||||||||||||
Other | 12,113 | 3.82 | % | 231 | 7,402 | 4.52 | % | 167 | |||||||||||||||
Total interest-earning assets/interest income | $ | 341,046 | 4.09 | % | 6,979 | $ | 328,705 | 3.68 | % | 6,058 | |||||||||||||
Liabilities | |||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||
Interest-bearing deposits | $ | 198,540 | 1.00 | % | 987 | $ | 183,900 | .52 | % | 474 | |||||||||||||
Borrowed funds | 61,066 | 3.14 | % | 965 | 59,300 | 2.52 | % | 752 | |||||||||||||||
Total interest-bearing liabilities/interest expense | $ | 259,606 | 1.50 | % | 1,952 | $ | 243,200 | 1.01 | % | 1,226 | |||||||||||||
Net interest margin/income (Non-GAAP) | 2.94 | % | 5,027 | 2.94 | % | 4,832 | |||||||||||||||||
Taxable-equivalent adjustments | (54 | ) | (58 | ) | |||||||||||||||||||
Net interest income (GAAP) | $ | 4,973 | $ | 4,774 |
(a) | Interest income calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income and yields for all interest-earning assets, as well as net interest margins, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement. For more information, see Reconciliation of Taxable-Equivalent Net Interest Income (Non-GAAP) in the Statistical Information (Unaudited) section in Item 1 of this Report. |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||||
Dollars in millions | 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||
Noninterest income | |||||||||||||||||||||||||||||||
Asset management | $ | 445 | $ | 456 | $ | (11 | ) | (2 | )% | $ | 882 | $ | 911 | $ | (29 | ) | (3 | )% | |||||||||||||
Consumer services | 392 | 381 | 11 | 3 | % | 763 | 738 | 25 | 3 | % | |||||||||||||||||||||
Corporate services | 484 | 487 | (3 | ) | (1 | )% | 946 | 916 | 30 | 3 | % | ||||||||||||||||||||
Residential mortgage | 82 | 84 | (2 | ) | (2 | )% | 147 | 181 | (34 | ) | (19 | )% | |||||||||||||||||||
Service charges on deposits | 171 | 169 | 2 | 1 | % | 339 | 336 | 3 | 1 | % | |||||||||||||||||||||
Other | 367 | 334 | 33 | 10 | % | 675 | 579 | 96 | 17 | % | |||||||||||||||||||||
Total noninterest income | $ | 1,941 | $ | 1,911 | $ | 30 | 2 | % | $ | 3,752 | $ | 3,661 | $ | 91 | 2 | % |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||||
Dollars in millions | 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||||||||||
Personnel | $ | 1,365 | $ | 1,356 | $ | 9 | 1 | % | $ | 2,779 | $ | 2,710 | $ | 69 | 3 | % | |||||||||||||||
Occupancy | 212 | 203 | 9 | 4 | % | 427 | 421 | 6 | 1 | % | |||||||||||||||||||||
Equipment | 298 | 281 | 17 | 6 | % | 571 | 554 | 17 | 3 | % | |||||||||||||||||||||
Marketing | 83 | 75 | 8 | 11 | % | 148 | 130 | 18 | 14 | % | |||||||||||||||||||||
Other | 653 | 669 | (16 | ) | (2 | )% | 1,264 | 1,296 | (32 | ) | (2 | )% | |||||||||||||||||||
Total noninterest expense | $ | 2,611 | $ | 2,584 | $ | 27 | 1 | % | $ | 5,189 | $ | 5,111 | $ | 78 | 2 | % |
June 30 | December 31 | Change | ||||||||||||
Dollars in millions | 2019 | 2018 | $ | % | ||||||||||
Assets | ||||||||||||||
Interest-earning deposits with banks | $ | 18,362 | $ | 10,893 | $ | 7,469 | 69 | % | ||||||
Loans held for sale | 1,144 | 994 | 150 | 15 | % | |||||||||
Investment securities | 88,303 | 82,701 | 5,602 | 7 | % | |||||||||
Loans | 237,215 | 226,245 | 10,970 | 5 | % | |||||||||
Allowance for loan and lease losses | (2,721 | ) | (2,629 | ) | (92 | ) | (3 | )% | ||||||
Mortgage servicing rights | 1,627 | 1,983 | (356 | ) | (18 | )% | ||||||||
Goodwill | 9,221 | 9,218 | 3 | — | ||||||||||
Other | 52,610 | 52,910 | (300 | ) | (1 | )% | ||||||||
Total assets | $ | 405,761 | $ | 382,315 | $ | 23,446 | 6 | % | ||||||
Liabilities | ||||||||||||||
Deposits | $ | 273,260 | $ | 267,839 | $ | 5,421 | 2 | % | ||||||
Borrowed funds | 69,025 | 57,419 | 11,606 | 20 | % | |||||||||
Other | 14,095 | 9,287 | 4,808 | 52 | % | |||||||||
Total liabilities | 356,380 | 334,545 | 21,835 | 7 | % | |||||||||
Equity | ||||||||||||||
Total shareholders’ equity | 49,340 | 47,728 | 1,612 | 3 | % | |||||||||
Noncontrolling interests | 41 | 42 | (1 | ) | (2 | )% | ||||||||
Total equity | 49,381 | 47,770 | 1,611 | 3 | % | |||||||||
Total liabilities and equity | $ | 405,761 | $ | 382,315 | $ | 23,446 | 6 | % |
• | Total assets increased as a result of loan growth, higher interest-earning deposits with banks and higher investment securities; |
• | Total liabilities increased due to deposit growth and higher FHLB borrowings and bank notes and senior debt; |
• | Total equity increased as higher retained earnings driven by net income and higher accumulated other comprehensive income (AOCI) was partially offset by share repurchases and common and preferred dividends. |
June 30 | December 31 | Change | ||||||||||||
Dollars in millions | 2019 | 2018 | $ | % | ||||||||||
Commercial lending | ||||||||||||||
Commercial | $ | 125,624 | $ | 116,834 | $ | 8,790 | 8 | % | ||||||
Commercial real estate | 28,570 | 28,140 | 430 | 2 | % | |||||||||
Equipment lease financing | 7,409 | 7,308 | 101 | 1 | % | |||||||||
Total commercial lending | 161,603 | 152,282 | 9,321 | 6 | % | |||||||||
Consumer lending | ||||||||||||||
Home equity | 25,132 | 26,123 | (991 | ) | (4 | )% | ||||||||
Residential real estate | 20,092 | 18,657 | 1,435 | 8 | % | |||||||||
Automobile | 15,612 | 14,419 | 1,193 | 8 | % | |||||||||
Credit card | 6,511 | 6,357 | 154 | 2 | % | |||||||||
Education | 3,555 | 3,822 | (267 | ) | (7 | )% | ||||||||
Other consumer | 4,710 | 4,585 | 125 | 3 | % | |||||||||
Total consumer lending | 75,612 | 73,963 | 1,649 | 2 | % | |||||||||
Total loans | $ | 237,215 | $ | 226,245 | $ | 10,970 | 5 | % |
June 30, 2019 | December 31, 2018 | Ratings (a) as of June 30, 2019 | |||||||||||||||||||||||||||||
Dollars in millions | Amortized Cost | Fair Value | Amortized Cost | Fair Value | AAA/ AA | A | BBB | BB and Lower | No Rating | ||||||||||||||||||||||
U.S. Treasury and government agencies | $ | 19,595 | $ | 20,002 | $ | 18,862 | $ | 18,863 | 100 | % | |||||||||||||||||||||
Agency residential mortgage-backed | 49,011 | 49,436 | 45,153 | 44,407 | 100 | % | |||||||||||||||||||||||||
Non-agency residential mortgage-backed | 1,891 | 2,209 | 2,076 | 2,365 | 13 | % | 2 | % | 2 | % | 48 | % | 35 | % | |||||||||||||||||
Agency commercial mortgage-backed | 2,663 | 2,683 | 2,773 | 2,720 | 100 | % | |||||||||||||||||||||||||
Non-agency commercial mortgage-backed (b) | 3,441 | 3,474 | 3,177 | 3,145 | 87 | % | 5 | % | 8 | % | |||||||||||||||||||||
Asset-backed (c) | 5,507 | 5,589 | 5,115 | 5,155 | 89 | % | 2 | % | 1 | % | 7 | % | 1 | % | |||||||||||||||||
Other (d) | 4,972 | 5,161 | 5,670 | 5,753 | 71 | % | 17 | % | 9 | % | 1 | % | 2 | % | |||||||||||||||||
Total investment securities (e) | $ | 87,080 | $ | 88,554 | $ | 82,826 | $ | 82,408 | 95 | % | 1 | % | 1 | % | 2 | % | 1 | % |
(a) | Ratings percentages allocated based on amortized cost. |
(b) | Collateralized primarily by retail properties, office buildings, lodging properties and multi-family housing. |
(c) | Collateralized primarily by corporate debt, government guaranteed education loans and other consumer credit products. |
(d) | Includes state and municipal securities. |
(e) | Includes available for sale and held to maturity securities, which are recorded on our balance sheet at fair value and amortized cost, respectively. |
June 30, 2019 | Years | ||
Agency residential mortgage-backed | 4.6 | ||
Non-agency residential mortgage-backed | 6.1 | ||
Agency commercial mortgage-backed | 4.0 | ||
Non-agency commercial mortgage-backed | 2.6 | ||
Asset-backed | 2.1 |
June 30 | December 31 | Change | ||||||||||||
Dollars in millions | 2019 | 2018 | $ | % | ||||||||||
Deposits | ||||||||||||||
Noninterest-bearing | $ | 69,867 | $ | 73,960 | $ | (4,093 | ) | (6 | )% | |||||
Interest-bearing | ||||||||||||||
Money market | 54,938 | 53,368 | 1,570 | 3 | % | |||||||||
Demand | 65,885 | 65,211 | 674 | 1 | % | |||||||||
Savings | 62,852 | 56,793 | 6,059 | 11 | % | |||||||||
Time deposits | 19,718 | 18,507 | 1,211 | 7 | % | |||||||||
Total interest-bearing deposits | 203,393 | 193,879 | 9,514 | 5 | % | |||||||||
Total deposits | 273,260 | 267,839 | 5,421 | 2 | % | |||||||||
Borrowed funds | ||||||||||||||
FHLB borrowings | 29,376 | 21,501 | 7,875 | 37 | % | |||||||||
Bank notes and senior debt | 27,694 | 25,018 | 2,676 | 11 | % | |||||||||
Subordinated debt | 5,406 | 5,895 | (489 | ) | (8 | )% | ||||||||
Other | 6,549 | 5,005 | 1,544 | 31 | % | |||||||||
Total borrowed funds | 69,025 | 57,419 | 11,606 | 20 | % | |||||||||
Total funding sources | $ | 342,285 | $ | 325,258 | $ | 17,027 | 5 | % |
• | Retail Banking |
• | Corporate & Institutional Banking |
• | Asset Management Group |
• | BlackRock |
(Unaudited) | ||||||||||||||
Six months ended June 30 | Change | |||||||||||||
Dollars in millions, except as noted | 2019 | 2018 | $ | % | ||||||||||
Income Statement | ||||||||||||||
Net interest income | $ | 2,725 | $ | 2,495 | $ | 230 | 9 | % | ||||||
Noninterest income | 1,252 | 1,313 | (61 | ) | (5 | )% | ||||||||
Total revenue | 3,977 | 3,808 | 169 | 4 | % | |||||||||
Provision for credit losses | 209 | 141 | 68 | 48 | % | |||||||||
Noninterest expense | 2,995 | 2,977 | 18 | 1 | % | |||||||||
Pretax earnings | 773 | 690 | 83 | 12 | % | |||||||||
Income taxes | 184 | 167 | 17 | 10 | % | |||||||||
Earnings | $ | 589 | $ | 523 | $ | 66 | 13 | % | ||||||
Average Balance Sheet | ||||||||||||||
Loans held for sale | $ | 498 | $ | 640 | $ | (142 | ) | (22 | )% | |||||
Loans | ||||||||||||||
Consumer | ||||||||||||||
Home equity | $ | 22,804 | $ | 24,391 | $ | (1,587 | ) | (7 | )% | |||||
Automobile | 14,917 | 13,375 | 1,542 | 12 | % | |||||||||
Education | 3,740 | 4,294 | (554 | ) | (13 | )% | ||||||||
Credit cards | 6,291 | 5,674 | 617 | 11 | % | |||||||||
Other | 2,123 | 1,768 | 355 | 20 | % | |||||||||
Total consumer | 49,875 | 49,502 | 373 | 1 | % | |||||||||
Commercial and commercial real estate | 10,471 | 10,493 | (22 | ) | — | |||||||||
Residential mortgage | 15,388 | 13,570 | 1,818 | 13 | % | |||||||||
Total loans | $ | 75,734 | $ | 73,565 | $ | 2,169 | 3 | % | ||||||
Total assets | $ | 91,805 | $ | 88,879 | $ | 2,926 | 3 | % | ||||||
Deposits | ||||||||||||||
Noninterest-bearing demand | $ | 30,956 | $ | 30,248 | $ | 708 | 2 | % | ||||||
Interest-bearing demand | 42,607 | 42,373 | 234 | 1 | % | |||||||||
Money market | 26,283 | 31,560 | (5,277 | ) | (17 | )% | ||||||||
Savings | 54,596 | 45,139 | 9,457 | 21 | % | |||||||||
Certificates of deposit | 12,543 | 11,948 | 595 | 5 | % | |||||||||
Total deposits | $ | 166,985 | $ | 161,268 | $ | 5,717 | 4 | % | ||||||
Performance Ratios | ||||||||||||||
Return on average assets | 1.29 | % | 1.19 | % | ||||||||||
Noninterest income to total revenue | 31 | % | 34 | % | ||||||||||
Efficiency | 75 | % | 78 | % |
Six months ended June 30 | Change | |||||||||||||
Dollars in millions, except as noted | 2019 | 2018 | $ | % | ||||||||||
Supplemental Noninterest Income Information | ||||||||||||||
Consumer services | $ | 576 | $ | 553 | $ | 23 | 4 | % | ||||||
Brokerage | $ | 175 | $ | 174 | $ | 1 | 1 | % | ||||||
Residential mortgage | $ | 147 | $ | 181 | $ | (34 | ) | (19 | )% | |||||
Service charges on deposits | $ | 326 | $ | 324 | $ | 2 | 1 | % | ||||||
Residential Mortgage Information | ||||||||||||||
Residential mortgage servicing statistics (in billions, except as noted) (a) | ||||||||||||||
Serviced portfolio balance (b) | $ | 124 | $ | 124 | — | — | ||||||||
Serviced portfolio acquisitions | $ | 6 | $ | 4 | $ | 2 | 50 | % | ||||||
MSR asset value (b) | $ | 1.0 | $ | 1.3 | $ | (.3 | ) | (23 | )% | |||||
MSR capitalization value (in basis points) (b) | 80 | 104 | (24 | ) | (23 | )% | ||||||||
Servicing income: (in millions) | ||||||||||||||
Servicing fees, net (c) | $ | 95 | $ | 90 | $ | 5 | 6 | % | ||||||
Mortgage servicing rights valuation, net of economic hedge | $ | (2 | ) | $ | 22 | $ | (24 | ) | (109 | )% | ||||
Residential mortgage loan statistics | ||||||||||||||
Loan origination volume (in billions) | $ | 4.6 | $ | 3.7 | $ | .9 | 24 | % | ||||||
Loan sale margin percentage | 2.28 | % | 2.49 | % | ||||||||||
Percentage of originations represented by: | ||||||||||||||
Purchase volume (d) | 55 | % | 65 | % | ||||||||||
Refinance volume | 45 | % | 35 | % | ||||||||||
Other Information (b) | ||||||||||||||
Customer-related statistics (average) | ||||||||||||||
Non-teller deposit transactions (e) | 56 | % | 54 | % | ||||||||||
Digital consumer customers (f) | 69 | % | 65 | % | ||||||||||
Credit-related statistics | ||||||||||||||
Nonperforming assets (g) | $ | 1,074 | $ | 1,141 | $ | (67 | ) | (6 | )% | |||||
Net charge-offs | $ | 252 | $ | 212 | $ | 40 | 19 | % | ||||||
Other statistics | ||||||||||||||
ATMs | 9,072 | 9,043 | 29 | — | ||||||||||
Branches (h) | 2,321 | 2,404 | (83 | ) | (3 | )% | ||||||||
Brokerage account client assets (in billions) (i) | $ | 52 | $ | 49 | $ | 3 | 6 | % |
(a) | Represents mortgage loan servicing balances for third parties and the related income. |
(b) | Presented as of June 30, except for customer-related statistics, which are averages for the six months ended, and net charge-offs, which are for the six months ended. |
(c) | Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan prepayments and loans that were paid down or paid off during the period. |
(d) | Mortgages with borrowers as part of residential real estate purchase transactions. |
(e) | Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application. |
(f) | Represents consumer checking relationships that process the majority of their transactions through non-teller channels. |
(g) | Includes nonperforming loans of $1.1 billion for both June 30, 2019 and June 30, 2018. |
(h) | Excludes stand-alone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services. |
(i) | Includes cash and money market balances. |
• | Average residential mortgages increased primarily as a result of growth in nonconforming residential mortgage loans. |
• | Average auto loans increased primarily due to strong new indirect auto loan volumes, including in our Southeast and new markets, as well as growth in direct auto loans. |
• | Average credit card balances increased as we continued to focus on our long-term objective of deepening penetration within our existing customer base as well as new client acquisition. |
• | Average home equity loans decreased as paydowns and payoffs on loans exceeded new originated volume. |
• | Average education loans decreased driven by a decline in the runoff portfolio of government guaranteed education loans. |
• | Average commercial and commercial real estate loans declined as paydowns and payoffs on loans exceeded new volume. |
• | Approximately 69% of consumer customers used non-teller channels for the majority of their transactions in the first six months of 2019 compared with 65% for the same period in 2018. |
• | Deposit transactions via ATM and mobile channels increased to 56% of total deposit transactions in the first six months of 2019 from 54% for the same period in 2018. |
(Unaudited) | ||||||||||||||
Six months ended June 30 | Change | |||||||||||||
Dollars in millions | 2019 | 2018 | $ | % | ||||||||||
Income Statement | ||||||||||||||
Net interest income | $ | 1,815 | $ | 1,782 | $ | 33 | 2 | % | ||||||
Noninterest income | 1,237 | 1,182 | 55 | 5 | % | |||||||||
Total revenue | 3,052 | 2,964 | 88 | 3 | % | |||||||||
Provision for credit losses | 171 | 56 | 115 | 205 | % | |||||||||
Noninterest expense | 1,384 | 1,321 | 63 | 5 | % | |||||||||
Pretax earnings | 1,497 | 1,587 | (90 | ) | (6 | )% | ||||||||
Income taxes | 343 | 372 | (29 | ) | (8 | )% | ||||||||
Earnings | $ | 1,154 | $ | 1,215 | $ | (61 | ) | (5 | )% | |||||
Average Balance Sheet | ||||||||||||||
Loans held for sale | $ | 338 | $ | 890 | $ | (552 | ) | (62 | )% | |||||
Loans | ||||||||||||||
Commercial | $ | 111,186 | $ | 101,767 | $ | 9,419 | 9 | % | ||||||
Commercial real estate | 26,098 | 26,723 | (625 | ) | (2 | )% | ||||||||
Equipment lease financing | 7,274 | 7,669 | (395 | ) | (5 | )% | ||||||||
Total commercial lending | 144,558 | 136,159 | 8,399 | 6 | % | |||||||||
Consumer | 18 | 58 | (40 | ) | (69 | )% | ||||||||
Total loans | $ | 144,576 | $ | 136,217 | $ | 8,359 | 6 | % | ||||||
Total assets | $ | 160,551 | $ | 152,769 | $ | 7,782 | 5 | % | ||||||
Deposits | ||||||||||||||
Noninterest-bearing demand | $ | 39,156 | $ | 45,136 | $ | (5,980 | ) | (13 | )% | |||||
Money market | 26,292 | 23,118 | 3,174 | 14 | % | |||||||||
Other | 24,097 | 18,590 | 5,507 | 30 | % | |||||||||
Total deposits | $ | 89,545 | $ | 86,844 | $ | 2,701 | 3 | % | ||||||
Performance Ratios | ||||||||||||||
Return on average assets | 1.45 | % | 1.60 | % | ||||||||||
Noninterest income to total revenue | 41 | % | 40 | % | ||||||||||
Efficiency | 45 | % | 45 | % | ||||||||||
Other Information | ||||||||||||||
Consolidated revenue from: (a) | ||||||||||||||
Treasury Management (b) | $ | 912 | $ | 865 | $ | 47 | 5 | % | ||||||
Capital Markets (b) | $ | 559 | $ | 541 | $ | 18 | 3 | % | ||||||
Commercial mortgage banking activities: | ||||||||||||||
Commercial mortgage loans held for sale (c) | $ | 35 | $ | 52 | $ | (17 | ) | (33 | )% | |||||
Commercial mortgage loan servicing income (d) | 119 | 115 | 4 | 3 | % | |||||||||
Commercial mortgage servicing rights valuation, net of economic hedge (e) | 16 | 24 | (8 | ) | (33 | )% | ||||||||
Total | $ | 170 | $ | 191 | $ | (21 | ) | (11 | )% | |||||
Commercial mortgage servicing rights asset value (f) | $ | 630 | $ | 748 | $ | (118 | ) | (16 | )% | |||||
Average Loans by C&IB business (g) | ||||||||||||||
Corporate Banking | $ | 72,736 | $ | 65,933 | $ | 6,803 | 10 | % | ||||||
Real Estate | 36,752 | 37,336 | (584 | ) | (2 | )% | ||||||||
Business Credit | 22,306 | 20,414 | 1,892 | 9 | % | |||||||||
Commercial Banking | 8,099 | 8,146 | (47 | ) | (1 | )% | ||||||||
Other | 4,683 | 4,389 | 294 | 7 | % | |||||||||
Total average loans | $ | 144,576 | $ | 136,218 | $ | 8,358 | 6 | % | ||||||
Credit-related statistics | ||||||||||||||
Nonperforming assets (f) (h) | $ | 497 | $ | 385 | $ | 112 | 29 | % | ||||||
Net charge-offs | $ | 28 | $ | 7 | $ | 21 | 300 | % |
(a) | See the additional revenue discussion regarding treasury management, capital markets-related products and services, and commercial mortgage banking activities in the Product Revenue section of this Corporate & Institutional Banking section. |
(b) | Amounts are reported in net interest income and noninterest income. |
(c) | Represents other noninterest income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, originations fees, gains on sale of loans held for sale and net interest income on loans held for sale. |
(d) | Represents net interest income and noninterest income (primarily in corporate service fees) from loan servicing net of reduction in commercial mortgage servicing rights due to amortization expense and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately. |
(e) | Amounts are reported in corporate service fees. |
(f) | As of June 30. |
(g) | As a result of our first quarter 2019 C&IB business realignment, average loans previously reported as Equipment Finance were reclassified to other C&IB businesses for all periods presented. |
(h) | Includes nonperforming loans of $.5 billion and $.3 billion at June 30, 2019 and June 30, 2018, respectively. |
• | Corporate Banking provides lending, treasury management and capital markets-related products and services to mid-sized and large corporations, and government and not-for-profit entities. Average loans for this business grew reflecting strong production in asset-backed financing as well as increased lending to large and mid-sized corporate clients. |
• | PNC Real Estate provides banking, financing and servicing solutions for commercial real estate clients across the country. Average loans for this business decreased primarily driven by project loan payoffs, partially offset by higher commercial mortgage balances. |
• | PNC Business Credit provides asset-based lending. The loan portfolio is relatively high yielding, with acceptable risk as the loans are mainly secured by short-term assets. Average loans for this business increased as higher utilization and new originations were partially offset by payoffs. |
• | Commercial Banking provides lending, treasury management and capital markets-related products and services to smaller corporations and businesses. Average loans for this business were relatively unchanged. |
(Unaudited) | ||||||||||||||
Six months ended June 30 | Change | |||||||||||||
Dollars in millions, except as noted | 2019 | 2018 | $ | % | ||||||||||
Income Statement | ||||||||||||||
Net interest income | $ | 138 | $ | 146 | $ | (8 | ) | (5 | )% | |||||
Noninterest income | 503 | 448 | 55 | 12 | % | |||||||||
Total revenue | 641 | 594 | 47 | 8 | % | |||||||||
Provision for credit losses (benefit) | (1 | ) | — | (1 | ) | * | ||||||||
Noninterest expense | 479 | 456 | 23 | 5 | % | |||||||||
Pretax earnings | 163 | 138 | 25 | 18 | % | |||||||||
Income taxes | 38 | 33 | 5 | 15 | % | |||||||||
Earnings | $ | 125 | $ | 105 | $ | 20 | 19 | % | ||||||
Average Balance Sheet | ||||||||||||||
Loans | ||||||||||||||
Consumer | $ | 4,289 | $ | 4,741 | $ | (452 | ) | (10 | )% | |||||
Commercial and commercial real estate | 741 | 738 | 3 | — | ||||||||||
Residential mortgage | 1,758 | 1,539 | 219 | 14 | % | |||||||||
Total loans | $ | 6,788 | $ | 7,018 | $ | (230 | ) | (3 | )% | |||||
Total assets | $ | 7,204 | $ | 7,484 | $ | (280 | ) | (4 | )% | |||||
Deposits | ||||||||||||||
Noninterest-bearing demand | $ | 1,368 | $ | 1,462 | $ | (94 | ) | (6 | )% | |||||
Interest-bearing demand | 2,983 | 3,494 | (511 | ) | (15 | )% | ||||||||
Money market | 1,910 | 2,454 | (544 | ) | (22 | )% | ||||||||
Savings | 5,799 | 4,651 | 1,148 | 25 | % | |||||||||
Other | 747 | 345 | 402 | 117 | % | |||||||||
Total deposits | $ | 12,807 | $ | 12,406 | $ | 401 | 3 | % | ||||||
Performance Ratios | ||||||||||||||
Return on average assets | 3.50 | % | 2.83 | % | ||||||||||
Noninterest income to total revenue | 78 | % | 75 | % | ||||||||||
Efficiency | 75 | % | 77 | % | ||||||||||
Supplemental Noninterest Income Information | ||||||||||||||
Asset management fees | $ | 433 | $ | 442 | $ | (9 | ) | (2 | )% | |||||
Other Information | ||||||||||||||
Nonperforming assets (a) (b) | $ | 45 | $ | 51 | $ | (6 | ) | (12 | )% | |||||
Net charge-offs | $ | 1 | $ | 7 | $ | (6 | ) | (86 | )% | |||||
Client Assets Under Administration (in billions) (a) (c) | ||||||||||||||
Discretionary client assets under management | $ | 162 | $ | 149 | $ | 13 | 9 | % | ||||||
Nondiscretionary client assets under administration | 132 | 130 | 2 | 2 | % | |||||||||
Total | $ | 294 | $ | 279 | $ | 15 | 5 | % | ||||||
Discretionary client assets under management | ||||||||||||||
Personal | $ | 99 | $ | 92 | $ | 7 | 8 | % | ||||||
Institutional | 63 | 57 | 6 | 11 | % | |||||||||
Total | $ | 162 | $ | 149 | $ | 13 | 9 | % |
(a) | As of June 30. |
(b) | Includes nonperforming loans of $45 million at June 30, 2019 and $50 million at June 30, 2018. |
(c) | Excludes brokerage account client assets. |
(Unaudited) | |||||||
Six months ended June 30 | |||||||
Dollars in millions | 2019 | 2018 | |||||
Business segment earnings (a) | $ | 386 | $ | 392 | |||
PNC’s economic interest in BlackRock (b) | 22 | % | 22 | % |
(a) | Represents our share of BlackRock’s reported GAAP earnings net of income taxes on those earnings incurred by us. |
(b) | At June 30. |
In billions | June 30, 2019 | December 31, 2018 | |||||
Carrying value of our investment in BlackRock (c) | $ | 8.3 | $ | 8.2 | |||
Market value of our investment in BlackRock (d) | $ | 16.3 | $ | 13.7 |
(c) | We account for our investment in BlackRock under the equity method of accounting, exclusive of a related deferred tax liability of $1.7 billion at both June 30, 2019 and December 31, 2018. Our voting interest in BlackRock common stock was approximately 22% at June 30, 2019. |
(d) | Does not include liquidity discount. |
June 30, 2019 | December 31, 2018 | ||||||||||||||
Dollars in millions | Amount | % of Total | Amount | % of Total | |||||||||||
Commercial | |||||||||||||||
Manufacturing | $ | 22,191 | 18 | % | $ | 21,207 | 18 | % | |||||||
Retail/wholesale trade | 22,280 | 18 | 20,850 | 18 | |||||||||||
Service providers | 15,387 | 12 | 14,869 | 13 | |||||||||||
Real estate related (a) | 12,264 | 10 | 12,312 | 11 | |||||||||||
Financial services | 11,916 | 9 | 9,500 | 8 | |||||||||||
Health care | 8,594 | 7 | 8,886 | 8 | |||||||||||
Transportation and warehousing | 6,588 | 5 | 5,781 | 5 | |||||||||||
Other industries | 26,404 | 21 | 23,429 | 19 | |||||||||||
Total commercial loans | $ | 125,624 | 100 | % | $ | 116,834 | 100 | % |
June 30, 2019 | December 31, 2018 | ||||||||||||||
Dollars in millions | Amount | % of Total | Amount | % of Total | |||||||||||
Geography | |||||||||||||||
California | $ | 4,270 | 15 | % | $ | 4,154 | 15 | % | |||||||
Florida | 2,239 | 8 | 2,157 | 8 | |||||||||||
Maryland | 1,996 | 7 | 1,966 | 7 | |||||||||||
Virginia | 1,536 | 5 | 1,682 | 6 | |||||||||||
Texas | 1,813 | 6 | 1,531 | 5 | |||||||||||
Illinois | 1,176 | 4 | 1,368 | 5 | |||||||||||
Pennsylvania | 1,093 | 4 | 1,214 | 4 | |||||||||||
New York | 959 | 3 | 1,151 | 4 | |||||||||||
Ohio | 1,145 | 4 | 1,053 | 4 | |||||||||||
North Carolina | 941 | 3 | 915 | 3 | |||||||||||
All other states | 11,402 | 41 | 10,949 | 39 | |||||||||||
Total commercial real estate loans | $ | 28,570 | 100 | % | $ | 28,140 | 100 | % | |||||||
Property Type | |||||||||||||||
Multifamily | $ | 8,667 | 30 | % | $ | 8,770 | 31 | % | |||||||
Office | 7,502 | 26 | 7,279 | 26 | |||||||||||
Retail | 3,850 | 14 | 4,065 | 14 | |||||||||||
Hotel/Motel | 1,864 | 7 | 1,686 | 6 | |||||||||||
Industrial/Warehouse | 1,817 | 6 | 1,678 | 6 | |||||||||||
Senior Housing | 1,233 | 4 | 1,092 | 4 | |||||||||||
Mixed Use | 930 | 3 | 933 | 3 | |||||||||||
Other | 2,707 | 10 | 2,637 | 10 | |||||||||||
Total commercial real estate loans | $ | 28,570 | 100 | % | $ | 28,140 | 100 | % |
June 30, 2019 | December 31, 2018 | ||||||||||||||
Dollars in millions | Amount | % of Total | Amount | % of Total | |||||||||||
Geography | |||||||||||||||
Pennsylvania | $ | 5,891 | 23 | % | $ | 6,160 | 24 | % | |||||||
New Jersey | 3,795 | 15 | 3,935 | 15 | |||||||||||
Ohio | 2,953 | 12 | 3,095 | 12 | |||||||||||
Illinois | 1,551 | 6 | 1,634 | 6 | |||||||||||
Maryland | 1,428 | 6 | 1,481 | 6 | |||||||||||
Michigan | 1,307 | 5 | 1,340 | 5 | |||||||||||
Florida | 1,212 | 5 | 1,227 | 5 | |||||||||||
North Carolina | 1,109 | 4 | 1,161 | 4 | |||||||||||
Kentucky | 993 | 4 | 1,040 | 4 | |||||||||||
Indiana | 819 | 3 | 845 | 3 | |||||||||||
All other states | 4,074 | 17 | 4,205 | 16 | |||||||||||
Total home equity loans | $ | 25,132 | 100 | % | $ | 26,123 | 100 | % | |||||||
Lien type | |||||||||||||||
1st lien | 58 | % | 58 | % | |||||||||||
2nd lien | 42 | 42 | |||||||||||||
Total | 100 | % | 100 | % |
June 30, 2019 | December 31, 2018 | ||||||||||||||
Dollars in millions | Amount | % of Total | Amount | % of Total | |||||||||||
Geography | |||||||||||||||
California | $ | 5,592 | 28 | % | $ | 4,666 | 25 | % | |||||||
New Jersey | 1,712 | 9 | 1,649 | 9 | |||||||||||
Florida | 1,561 | 8 | 1,544 | 8 | |||||||||||
Illinois | 1,136 | 6 | 1,161 | 6 | |||||||||||
Pennsylvania | 1,070 | 5 | 1,031 | 6 | |||||||||||
New York | 973 | 5 | 956 | 5 | |||||||||||
Maryland | 919 | 5 | 913 | 5 | |||||||||||
North Carolina | 853 | 4 | 854 | 5 | |||||||||||
Virginia | 841 | 4 | 825 | 4 | |||||||||||
Ohio | 687 | 3 | 682 | 4 | |||||||||||
All other states | 4,748 | 23 | 4,376 | 23 | |||||||||||
Total residential real estate loans | $ | 20,092 | 100 | % | $ | 18,657 | 100 | % |
June 30, 2019 | December 31, 2018 | Change | |||||||||||
Dollars in millions | $ | % | |||||||||||
Nonperforming loans | |||||||||||||
Commercial lending | $ | 540 | $ | 432 | $ | 108 | 25 | ||||||
Consumer lending (a) | 1,184 | 1,262 | (78 | ) | (6 | )% | |||||||
Total nonperforming loans | 1,724 | 1,694 | 30 | 2 | % | ||||||||
OREO and foreclosed assets | 126 | 114 | 12 | 11 | % | ||||||||
Total nonperforming assets | $ | 1,850 | $ | 1,808 | $ | 42 | 2 | % | |||||
TDRs included in nonperforming loans | $ | 874 | $ | 863 | $ | 11 | 1 | % | |||||
Percentage of total nonperforming loans | 51 | % | 51 | % | |||||||||
Nonperforming loans to total loans | .73 | % | .75 | % | |||||||||
Nonperforming assets to total loans, OREO and foreclosed assets | .78 | % | .80 | % | |||||||||
Nonperforming assets to total assets | .46 | % | .47 | % | |||||||||
Allowance for loan and lease losses to total nonperforming loans | 158 | % | 155 | % |
(a) | Excludes most consumer loans and lines of credit not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming status. |
In millions | 2019 | 2018 | |||||||
January 1 | $ | 1,808 | $ | 2,035 | |||||
New nonperforming assets | 695 | 525 | |||||||
Charge-offs and valuation adjustments | (334 | ) | (282 | ) | |||||
Principal activity, including paydowns and payoffs | (193 | ) | (280 | ) | |||||
Asset sales and transfers to loans held for sale | (40 | ) | (63 | ) | |||||
Returned to performing status | (86 | ) | (81 | ) | |||||
June 30 | $ | 1,850 | $ | 1,854 |
Amount | Percentage of Total Loans Outstanding | |||||||||||||||||||||
June 30 2019 | December 31 2018 | Change | June 30 2019 | December 31 2018 | ||||||||||||||||||
Dollars in millions | $ | % | ||||||||||||||||||||
Early stage loan delinquencies | ||||||||||||||||||||||
Accruing loans past due 30 to 59 days | $ | 550 | $ | 585 | $ | (35 | ) | (6 | )% | .23 | % | .26 | % | |||||||||
Accruing loans past due 60 to 89 days | 235 | 271 | (36 | ) | (13 | )% | .10 | % | .12 | % | ||||||||||||
Total | 785 | 856 | (71 | ) | (8 | )% | .33 | % | .38 | % | ||||||||||||
Late stage loan delinquencies | ||||||||||||||||||||||
Accruing loans past due 90 days or more | 524 | 629 | (105 | ) | (17 | )% | .22 | % | .28 | % | ||||||||||||
Total | $ | 1,309 | $ | 1,485 | $ | (176 | ) | (12 | )% | .55 | % | .66 | % |
(a) | Past due loan amounts include government insured or guaranteed loans of $.6 billion at June 30, 2019 and $.7 billion at December 31, 2018. |
June 30 2019 | December 31 2018 | Change | ||||||||||||||
Dollars in millions | $ | % | ||||||||||||||
Total commercial lending | $ | 396 | $ | 409 | $ | (13 | ) | (3 | )% | |||||||
Total consumer lending | 1,381 | 1,442 | (61 | ) | (4 | )% | ||||||||||
Total TDRs | $ | 1,777 | $ | 1,851 | $ | (74 | ) | (4 | )% | |||||||
Nonperforming | $ | 874 | $ | 863 | $ | 11 | 1 | % | ||||||||
Accruing (b) | 903 | 988 | (85 | ) | (9 | )% | ||||||||||
Total TDRs | $ | 1,777 | $ | 1,851 | $ | (74 | ) | (4 | )% |
(a) | Amounts in table represent recorded investment, which includes the unpaid principal balance plus net accounting adjustments, less any charge-offs. Recorded investment does not include any associated valuation allowance. |
(b) | Accruing loans include consumer credit card loans and loans that have demonstrated a period of at least six months of performance under the restructured terms and are excluded from nonperforming loans. |
• | Industry concentrations and conditions, |
• | Changes in market conditions, |
• | Recent credit quality trends, |
• | Recent loss experience in particular portfolios, including specific and unique events, |
• | Recent macro-economic factors, |
• | Model imprecision, |
• | Changes in lending policies and procedures, |
• | Timing of available information, including the performance of first lien positions, and |
• | Limitations of available historical data. |
Dollars in millions | 2019 | 2018 | |||||||
January 1 | $ | 2,629 | $ | 2,611 | |||||
Total net charge-offs | (278 | ) | (222 | ) | |||||
Provision for credit losses | 369 | 172 | |||||||
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit | (6 | ) | 8 | ||||||
Other | 7 | 12 | |||||||
June 30 | $ | 2,721 | $ | 2,581 | |||||
Net charge-offs to average loans (for the six months ended) (annualized) | .24 | % | .20 | % | |||||
Ratio of ALLL to total loans | 1.15 | % | 1.16 | % | |||||
Commercial lending net charge-offs | $ | (44 | ) | $ | (13 | ) | |||
Consumer lending net charge-offs | (234 | ) | (209 | ) | |||||
Total net charge-offs | $ | (278 | ) | $ | (222 | ) | |||
Net charge-offs to average loans (for the six months ended) (annualized) | |||||||||
Commercial lending | .06 | % | .02 | % | |||||
Consumer lending | .64 | % | .58 | % |
Six months ended June 30 | Gross Charge-offs | Recoveries | Net Charge-offs / (Recoveries) | Percent of Average Loans (Annualized) | ||||||||||||
Dollars in millions | ||||||||||||||||
2019 | ||||||||||||||||
Commercial | $ | 75 | $ | 31 | $ | 44 | .07 | % | ||||||||
Commercial real estate | 5 | 5 | — | — | % | |||||||||||
Equipment lease financing | 4 | 4 | — | — | % | |||||||||||
Home equity | 41 | 36 | 5 | .04 | % | |||||||||||
Residential real estate | 4 | 7 | (3 | ) | (.03 | )% | ||||||||||
Automobile | 112 | 55 | 57 | .77 | % | |||||||||||
Credit card | 132 | 14 | 118 | 3.78 | % | |||||||||||
Education | 13 | 4 | 9 | .49 | % | |||||||||||
Other consumer | 56 | 8 | 48 | 2.10 | % | |||||||||||
Total | $ | 442 | $ | 164 | $ | 278 | .24 | % | ||||||||
2018 | ||||||||||||||||
Commercial | $ | 52 | $ | 32 | $ | 20 | .04 | % | ||||||||
Commercial real estate | 8 | 14 | (6 | ) | (.04 | )% | ||||||||||
Equipment lease financing | 4 | 5 | (1 | ) | (.03 | )% | ||||||||||
Home equity | 61 | 44 | 17 | .12 | % | |||||||||||
Residential real estate | 6 | 10 | (4 | ) | (.05 | )% | ||||||||||
Automobile | 77 | 35 | 42 | .63 | % | |||||||||||
Credit card | 109 | 12 | 97 | 3.44 | % | |||||||||||
Education | 17 | 4 | 13 | .61 | % | |||||||||||
Other consumer | 52 | 8 | 44 | 2.02 | % | |||||||||||
Total | $ | 386 | $ | 164 | $ | 222 | .20 | % |
In billions | 2019 | |||
January 1 | $ | 30.9 | ||
Issuances | 4.4 | |||
Calls and maturities | (3.1 | ) | ||
Other | .9 | |||
June 30 | $ | 33.1 |
Issuance Date | Amount | Description of Issuance |
June 10, 2019 | $800 million | Senior floating rate notes with a maturity date of June 10, 2021. Callable in whole, but not in part on June 10, 2020, and in whole or in part on or after May 11, 2021. Interest is payable quarterly, at the 3-month LIBOR rate, on March 10, June 10, September 10 and December 10 of each year, beginning September 10, 2019. |
• | Bank-level capital needs, |
• | Laws and regulations, |
• | Corporate policies, |
• | Contractual restrictions, and |
• | Other factors. |
June 30, 2019 | |||
Moody’s | Standard & Poor’s | Fitch | |
PNC | |||
Senior debt | A3 | A- | A+ |
Subordinated debt | A3 | BBB+ | A |
Preferred stock | Baa2 | BBB- | BBB- |
PNC Bank | |||
Senior debt | A2 | A | A+ |
Subordinated debt | A3 | A- | A |
Long-term deposits | Aa2 | A | AA- |
Short-term deposits | P-1 | A-1 | F1+ |
Short-term notes | P-1 | A-1 | F1 |
Dollars in millions | Basel III June 30, 2019 | |||
Common equity Tier 1 capital | ||||
Common stock plus related surplus, net of treasury stock | $ | 4,102 | ||
Retained earnings | 40,616 | |||
Accumulated other comprehensive income (loss) for securities currently, and those transferred from, available for sale | 954 | |||
Accumulated other comprehensive income (loss) for pension and other postretirement plans | (483 | ) | ||
Goodwill, net of associated deferred tax liabilities | (9,021 | ) | ||
Other disallowed intangibles, net of deferred tax liabilities | (230 | ) | ||
Other adjustments/(deductions) | (185 | ) | ||
Total common equity Tier 1 capital before threshold deductions | 35,752 | |||
Total threshold deductions | (2,909 | ) | ||
Common equity Tier 1 capital | $ | 32,843 | ||
Additional Tier 1 capital | ||||
Preferred stock plus related surplus | 3,991 | |||
Other adjustments/(deductions) | (159 | ) | ||
Tier 1 capital | $ | 36,675 | ||
Additional Tier 2 capital | ||||
Qualifying subordinated debt | 3,611 | |||
Trust preferred capital securities | 60 | |||
Eligible credit reserves includable in Tier 2 capital | 3,012 | |||
Total Basel III capital | $ | 43,358 | ||
Risk-weighted assets | ||||
Basel III standardized approach risk-weighted assets (a) | $ | 337,612 | ||
Basel III advanced approaches risk-weighted assets (b) | $ | 309,646 | ||
Average quarterly adjusted total assets | $ | 384,030 | ||
Supplementary leverage exposure (c) | $ | 461,016 | ||
Basel III risk-based capital and leverage ratios (d) | ||||
Common equity Tier 1 | 9.7 | % | ||
Tier 1 | 10.9 | % | ||
Total (e) | 12.8 | % | ||
Leverage (f) | 9.6 | % | ||
Supplementary leverage ratio (g) | 8.0 | % |
(a) | Includes credit and market risk-weighted assets. |
(b) | Basel III advanced approaches risk-weighted assets are calculated based on the Basel III advanced approaches rules, and include credit, market, and operational risk-weighted assets. During the parallel run qualification phase, PNC has refined the data, models, and internal processes used as part of the advanced approaches for determining risk-weighted assets. |
(c) | Supplementary leverage exposure is the sum of Adjusted average assets and certain off-balance sheet exposures including undrawn credit commitments and derivative potential future exposures. |
(d) | For comparative purposes only, the advanced approaches Basel III Common equity Tier 1, Tier 1 risk-based and Total risk-based ratios for June 30, 2019 were 10.6%, 11.8% and 13.1%, respectively. |
(e) | The 2019 Basel III Total risk-based capital ratio includes nonqualifying trust preferred capital securities of $60 million that are subject to a phase-out period that runs through 2021. For comparative purposes only, as of June 30, 2019 the ratio was 12.8%, assuming nonqualifying trust preferred capital securities are phased out. |
(f) | Leverage ratio is calculated based on Tier 1 capital divided by Average quarterly adjusted total assets. |
(g) | Supplementary leverage ratio is calculated based on Tier 1 capital divided by Supplementary leverage exposure. |
Second Quarter 2019 | Second Quarter 2018 | |||||
Net Interest Income Sensitivity Simulation (a) | ||||||
Effect on net interest income in first year from gradual interest rate change over the following 12 months of: | ||||||
100 basis point increase | 1.9 | % | 2.0 | % | ||
100 basis point decrease | (2.6 | )% | (2.5 | )% | ||
Effect on net interest income in second year from gradual interest rate change over the preceding 12 months of: | ||||||
100 basis point increase | 4.8 | % | 4.1 | % | ||
100 basis point decrease | (7.6 | )% | (6.5 | )% | ||
Duration of Equity Model (a) | ||||||
Base case duration of equity (in years) | (4.7 | ) | (.1 | ) | ||
Key Period-End Interest Rates | ||||||
One-month LIBOR | 2.40 | % | 2.09 | % | ||
Three-month LIBOR | 2.32 | % | 2.34 | % | ||
Three-year swap | 1.74 | % | 2.86 | % |
(a) | Given the inherent limitations in certain of these measurement tools and techniques, results become less meaningful as interest rates approach zero. |
June 30, 2019 | |||||||
PNC Economist | Market Forward | Slope Flattening | |||||
First year sensitivity | .3 | % | (.5 | )% | (1.3 | )% | |
Second year sensitivity | 2.7 | % | (.1 | )% | (4.8 | )% |
June 30 2019 | December 31 2018 | Change | |||||||||||||
Dollars in millions | $ | % | |||||||||||||
BlackRock | $ | 8,184 | $ | 8,016 | $ | 168 | 2 | % | |||||||
Tax credit investments | 2,047 | 2,219 | (172 | ) | (8 | )% | |||||||||
Private equity and other | 2,770 | 2,659 | 111 | 4 | % | ||||||||||
Total | $ | 13,001 | $ | 12,894 | $ | 107 | 1 | % |
• | Fair Value Measurements |
• | Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit |
• | Residential and Commercial Mortgage Servicing Rights |
ASU | Description | Financial Statement Impact |
Credit Losses - ASU 2016-13 Issued June 2016 | • Required effective date of January 1, 2020. • Requires the use of an expected credit loss methodology; specifically, current expected credit losses (CECL) for the remaining life of the asset will be recognized at the time of origination or acquisition. • Methodology will apply to loans, net investment in leases, debt securities and certain financial assets not accounted for at fair value through net income. It will also apply to off-balance sheet credit exposures except for unconditionally cancellable commitments. • In-scope assets will be presented at the net amount expected to be collected after deducting the allowance for credit losses (ACL) from the amortized cost basis of the assets. • Requires enhanced credit quality disclosures including disaggregation of credit quality indicators by vintage. • Requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. | • We plan to adopt the CECL standard on its effective date. • We have a company-wide, cross-functional governance structure that we established in the third quarter of 2016 to oversee overall strategy for implementation of the CECL standard. • We have prepared CECL accounting policies and continue to refine and test our models, estimation techniques, data, operational processes and financial controls which will be used to calculate our ACL under the CECL standard. We will continue to refine our interpretations, methodology, data and operational processes based upon our reviews and tests. • The Financial Accounting Standards Board (FASB) recently issued two ASUs that clarified treatment of several topics in the CECL standard, including recoveries and accrued interest, which we plan to implement. The FASB also recently proposed an ASU providing additional guidance on selected topics and we are awaiting final guidance to implement any necessary changes. • The ACL will be based on our historical loss experience, borrower characteristics, forecasts of future economic conditions and other relevant factors. We will use forecasted scenarios produced by our economics team using a combination of structural macroeconomic models and expert judgment. These scenarios are designed to reflect a range of plausible economic conditions and their related estimated probabilities and are informed by current economic conditions and expected business cycle evolution. • We will use models and other estimation techniques that are sensitive to changes in forecasted economic conditions, to interpret borrower and economic factors in order to estimate the ACL. The estimate will include a three year reasonable and supportable forecast period, and thereafter will revert to a long-run average derived from historical information. We will also apply qualitative factors that could be related to idiosyncratic risk factors, changes in current economic conditions that may not be reflected in quantitatively derived results, or other relevant factors to ensure the ACL reflects our best estimate of current expected credit losses. • The magnitude of change to the ACL at the adoption date will depend upon the nature and characteristics of the loans, net investment in leases, debt securities and certain financial assets, as well as economic conditions and forecasts at the adoption date. Based on our forecasted economic conditions and portfolio balances at June 30, 2019, the adoption of the CECL standard could result in an overall ACL increase of 15% to 25%, as compared to our current aggregate reserve levels. We believe that given current conditions, our credit loss reserves will increase primarily for longer duration consumer loans, due to the difference between loss emergence periods currently used versus the remaining life of the asset required by the CECL standard. Additionally, the ACL could produce higher volatility in the quarterly provision for credit losses than our current reserve process. • The estimated impact of the CECL standard implementation is based on the current state of our end-to-end CECL process and is inclusive of quantitative results and qualitative factors. This process is still under development, including refinement and development of certain models, estimation techniques and the build-out of the operational and control structure supporting the end-to-end process. The reserve amount to be recorded at the January 1, 2020 transition date may differ from our estimate due to further process refinement and accounting for changes in balances and economics and other assumptions. |
Goodwill - ASU 2017-04 Issued January 2017 | • Required effective date of January 1, 2020. • Eliminates Step 2 from the goodwill impairment test to simplify the subsequent measurement of goodwill under which a loss was recognized only if the estimated implied fair value of the goodwill is below its carrying value. • Requires impairment to be recognized if the carrying amount exceeds the reporting unit’s fair value. | • We plan to adopt the standard on its effective date and we do not expect the adoption of this standard to impact our consolidated results of operations or our consolidated financial position. |
Codification Improvements - ASU 2019-04 Topic 3: Codification Improvements to ASU 2017-12 and Other Hedging Items Issued April 2019 | • Required effective date of January 1, 2020 with early adoption permitted if ASU 2017-12 was previously adopted. • Targeted improvements related to: - Partial-term fair value hedges of interest rate risk - Amortization of fair value hedge basis adjustments - Disclosure of fair value hedge basis adjustments - Consideration of the hedged contractually specified interest rate under the hypothetical derivative method - Application of a first-payments-received cash flow hedging technique to overall cash flows on a group of variable interest payments - Update to transition guidance for ASU 2017-12 | • We are currently assessing the potential impact to PNC upon adoption of these codification improvements. |
• | Our businesses, financial results and balance sheet values are affected by business and economic conditions, including the following: |
– | Changes in interest rates and valuations in debt, equity and other financial markets. |
– | Disruptions in the U.S. and global financial markets. |
– | Actions by the Federal Reserve Board, U.S. Treasury and other government agencies, including those that impact money supply and market interest rates. |
– | Changes in customer behavior due to recently enacted tax legislation, changing business and economic conditions or legislative or regulatory initiatives. |
– | Changes in customers’, suppliers’ and other counterparties’ performance and creditworthiness. |
– | Impacts of tariffs and other trade policies of the U.S. and its global trading partners. |
– | Slowing or reversal of the current U.S. economic expansion. |
– | Commodity price volatility. |
• | Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential legal and regulatory contingencies. These statements are based on our views that: |
– | U.S. economic growth has accelerated over the past two years to above its long-run trend. However, growth is expected to slow over the course of 2019 and into 2020. |
– | Further gradual improvement in the labor market will occur this year, including job gains and rising wages, which would be a positive indicator for consumer spending. |
– | Slower economic growth, trade restrictions and geopolitical concerns are downside risks to the forecast. |
– | Inflation has slowed in early 2019, to below the FOMC’s 2% objective, but is expected to gradually increase over the next two years. |
– | Our baseline forecast is for two .25% cuts to the federal funds rate in July and October 2019, taking the rate to a range of 1.75 to 2.00% by the end of 2019. |
• | Our ability to take certain capital actions, including returning capital to shareholders, is subject to review by the Federal Reserve Board as part of our comprehensive capital plan for the applicable period in connection with the Federal Reserve Board’s CCAR process and to the acceptance of such capital plan and non-objection to such capital actions by the Federal Reserve Board. |
• | Our regulatory capital ratios in the future will depend on, among other things, the company’s financial performance, the scope and terms of final capital regulations then in effect and management actions affecting the composition of our balance sheet. In addition, our ability to determine, evaluate and forecast regulatory capital ratios, and to take actions (such as capital distributions) based on actual or forecasted capital ratios, will be dependent at least in part on the development, validation and regulatory review of related models. |
• | Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities. Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and ability to attract and retain management. These developments could include: |
– | Changes to laws and regulations, including changes affecting oversight of the financial services industry, consumer protection, bank capital and liquidity standards, pension, bankruptcy and other industry aspects, and changes in accounting policies and principles. |
– | Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries. These matters may result in monetary judgments or settlements or other remedies, including fines, penalties, restitution or alterations in our business practices, and in additional expenses and collateral costs, and may cause reputational harm to us. |
– | Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies. |
– | Impact on business and operating results of any costs associated with obtaining rights in intellectual property claimed by others and of adequacy of our intellectual property protection in general. |
• | Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards. |
• | Business and operating results also include impacts relating to our equity interest in BlackRock, Inc. and rely to a significant extent on information provided to us by BlackRock. Risks and uncertainties that could affect BlackRock are discussed in more detail by BlackRock in its SEC filings. |
• | We grow our business in part through acquisitions and new strategic initiatives. Risks and uncertainties include those presented by the nature of the business acquired and strategic initiative, including in some cases those associated with our entry into new businesses or new geographic or other markets and risks resulting from our inexperience in those new areas, as well as risks and uncertainties related to the acquisition transactions themselves, regulatory issues, and the integration of the acquired businesses into PNC after closing. |
• | Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues. Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands. |
• | Business and operating results can also be affected by widespread natural and other disasters, pandemics, dislocations, terrorist activities, system failures, security breaches, cyberattacks or international hostilities through impacts on the economy and financial markets generally or on us or our counterparties specifically. |
Unaudited | Three months ended June 30 | Six months ended June 30 | |||||||||||||
In millions, except per share data | 2019 | 2018 | 2019 | 2018 | |||||||||||
Interest Income | |||||||||||||||
Loans | $ | $ | $ | $ | |||||||||||
Investment securities | |||||||||||||||
Other | |||||||||||||||
Total interest income | |||||||||||||||
Interest Expense | |||||||||||||||
Deposits | |||||||||||||||
Borrowed funds | |||||||||||||||
Total interest expense | |||||||||||||||
Net interest income | |||||||||||||||
Noninterest Income | |||||||||||||||
Asset management | |||||||||||||||
Consumer services | |||||||||||||||
Corporate services | |||||||||||||||
Residential mortgage | |||||||||||||||
Service charges on deposits | |||||||||||||||
Other | |||||||||||||||
Total noninterest income | |||||||||||||||
Total revenue | |||||||||||||||
Provision For Credit Losses | |||||||||||||||
Noninterest Expense | |||||||||||||||
Personnel | |||||||||||||||
Occupancy | |||||||||||||||
Equipment | |||||||||||||||
Marketing | |||||||||||||||
Other | |||||||||||||||
Total noninterest expense | |||||||||||||||
Income before income taxes and noncontrolling interests | |||||||||||||||
Income taxes | |||||||||||||||
Net income | |||||||||||||||
Less: Net income attributable to noncontrolling interests | |||||||||||||||
Preferred stock dividends | |||||||||||||||
Preferred stock discount accretion and redemptions | |||||||||||||||
Net income attributable to common shareholders | $ | $ | $ | $ | |||||||||||
Earnings Per Common Share | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ | |||||||||||
Average Common Shares Outstanding | |||||||||||||||
Basic | |||||||||||||||
Diluted |
Unaudited In millions | Three months ended June 30 | Six months ended June 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||
Other comprehensive income (loss), before tax and net of reclassifications into Net income: | |||||||||||||||||
Net unrealized gains (losses) on non-OTTI securities | ( | ) | ( | ) | |||||||||||||
Net unrealized gains (losses) on OTTI securities | |||||||||||||||||
Net unrealized gains (losses) on cash flow hedge derivatives | ( | ) | ( | ) | |||||||||||||
Pension and other postretirement benefit plan adjustments | ( | ) | |||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||||
Other comprehensive income (loss), before tax and net of reclassifications into Net income | ( | ) | ( | ) | |||||||||||||
Income tax benefit (expense) related to items of other comprehensive income | ( | ) | ( | ) | |||||||||||||
Other comprehensive income (loss), after tax and net of reclassifications into Net income | ( | ) | ( | ) | |||||||||||||
Comprehensive income | |||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | |||||||||||||||||
Comprehensive income attributable to PNC | $ | $ | $ | $ |
Unaudited | June 30 2019 | December 31 2018 | |||||
In millions, except par value | |||||||
Assets | |||||||
Cash and due from banks | $ | $ | |||||
Interest-earning deposits with banks | |||||||
Loans held for sale (a) | |||||||
Investment securities – available for sale | |||||||
Investment securities – held to maturity | |||||||
Loans (a) | |||||||
Allowance for loan and lease losses | ( | ) | ( | ) | |||
Net loans | |||||||
Equity investments (b) | |||||||
Mortgage servicing rights | |||||||
Goodwill | |||||||
Other (a) | |||||||
Total assets | $ | $ | |||||
Liabilities | |||||||
Deposits | |||||||
Noninterest-bearing | $ | $ | |||||
Interest-bearing | |||||||
Total deposits | |||||||
Borrowed funds | |||||||
Federal Home Loan Bank borrowings | |||||||
Bank notes and senior debt | |||||||
Subordinated debt | |||||||
Other (c) | |||||||
Total borrowed funds | |||||||
Allowance for unfunded loan commitments and letters of credit | |||||||
Accrued expenses and other liabilities | |||||||
Total liabilities | |||||||
Equity | |||||||
Preferred stock (d) | |||||||
Common stock ($5 par value, Authorized 800 shares, issued 542 shares) | |||||||
Capital surplus | |||||||
Retained earnings | |||||||
Accumulated other comprehensive income (loss) | ( | ) | |||||
Common stock held in treasury at cost: 95 and 85 shares | ( | ) | ( | ) | |||
Total shareholders’ equity | |||||||
Noncontrolling interests | |||||||
Total equity | |||||||
Total liabilities and equity | $ | $ |
(a) | Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.1 billion, Loans of $.8 billion and Other assets of $.1 billion at June 30, 2019 and Loans held for sale of $.9 billion, Loans of $.8 billion and Other assets of $.2 billion at December 31, 2018. |
(b) | Amounts include our equity interest in BlackRock. |
(c) | Our consolidated liabilities at both June 30, 2019 and December 31, 2018 included Other borrowed funds of $.1 billion for which we have elected the fair value option. |
(d) | Par value less than $.5 million at each date. |
Unaudited In millions | Six months ended June 30 | ||||||||
2019 | 2018 | ||||||||
Operating Activities | |||||||||
Net income | $ | $ | |||||||
Adjustments to reconcile net income to net cash provided (used) by operating activities | |||||||||
Provision for credit losses | |||||||||
Depreciation and amortization | |||||||||
Deferred income taxes | |||||||||
Changes in fair value of mortgage servicing rights | ( | ) | |||||||
Undistributed earnings of BlackRock | ( | ) | ( | ) | |||||
Net change in | |||||||||
Trading securities and other short-term investments | |||||||||
Loans held for sale | ( | ) | |||||||
Other assets | ( | ) | ( | ) | |||||
Accrued expenses and other liabilities | |||||||||
Other | ( | ) | |||||||
Net cash provided (used) by operating activities | $ | $ | |||||||
Investing Activities | |||||||||
Sales | |||||||||
Securities available for sale | $ | $ | |||||||
Loans | |||||||||
Repayments/maturities | |||||||||
Securities available for sale | |||||||||
Securities held to maturity | |||||||||
Purchases | |||||||||
Securities available for sale | ( | ) | ( | ) | |||||
Securities held to maturity | ( | ) | ( | ) | |||||
Loans | ( | ) | ( | ) | |||||
Net change in | |||||||||
Federal funds sold and resale agreements | |||||||||
Interest-earning deposits with banks | ( | ) | |||||||
Loans | ( | ) | ( | ) | |||||
Other | ( | ) | ( | ) | |||||
Net cash provided (used) by investing activities | $ | ( | ) | $ | ( | ) |
Unaudited In millions | Six Months Ended June 30 | ||||||||
2019 | 2018 | ||||||||
Financing Activities | |||||||||
Net change in | |||||||||
Noninterest-bearing deposits | $ | ( | ) | $ | ( | ) | |||
Interest-bearing deposits | |||||||||
Federal funds purchased and repurchase agreements | |||||||||
Federal Home Loan Bank borrowings | |||||||||
Commercial paper | ( | ) | |||||||
Other borrowed funds | ( | ) | ( | ) | |||||
Sales/issuances | |||||||||
Federal Home Loan Bank borrowings | |||||||||
Bank notes and senior debt | |||||||||
Other borrowed funds | |||||||||
Common and treasury stock | |||||||||
Repayments/maturities | |||||||||
Federal Home Loan Bank borrowings | ( | ) | ( | ) | |||||
Bank notes and senior debt | ( | ) | ( | ) | |||||
Subordinated debt | ( | ) | ( | ) | |||||
Other borrowed funds | ( | ) | ( | ) | |||||
Acquisition of treasury stock | ( | ) | ( | ) | |||||
Preferred stock cash dividends paid | ( | ) | ( | ) | |||||
Common stock cash dividends paid | ( | ) | ( | ) | |||||
Net cash provided (used) by financing activities | $ | $ | ( | ) | |||||
Net Increase (Decrease) In Cash And Due From Banks | ( | ) | |||||||
Cash and due from banks at beginning of period | |||||||||
Cash and due from banks at end of period | $ | $ | |||||||
Supplemental Disclosures | |||||||||
Interest paid | $ | $ | |||||||
Income taxes paid | $ | $ | |||||||
Income taxes refunded | $ | $ | |||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | ||||||||
Right-of-use assets recognized at adoption of ASU 2016-02 | $ | ||||||||
Non-cash Investing and Financing Items | |||||||||
Transfer from loans to loans held for sale, net | $ | $ | |||||||
Transfer from loans to foreclosed assets | $ | $ |
In millions | Residential Mortgages | Commercial Mortgages (a) | |||||||
Cash Flows - Three months ended June 30, 2019 | |||||||||
Sales of loans (b) | $ | $ | |||||||
Repurchases of previously transferred loans (c) | $ | $ | |||||||
Servicing fees (d) | $ | $ | |||||||
Servicing advances recovered/(funded), net | $ | $ | |||||||
Cash flows on mortgage-backed securities held (e) | $ | $ | |||||||
Cash Flows - Three months ended June 30, 2018 | |||||||||
Sales of loans (b) | $ | $ | |||||||
Repurchases of previously transferred loans (c) | $ | ||||||||
Servicing fees (d) | $ | $ | |||||||
Servicing advances recovered/(funded), net | $ | $ | ( | ) | |||||
Cash flows on mortgage-backed securities held (e) | $ | $ | |||||||
Cash Flows - Six months ended June 30, 2019 | |||||||||
Sales of loans (b) | $ | $ | |||||||
Repurchases of previously transferred loans (c) | $ | $ | |||||||
Servicing fees (d) | $ | $ | |||||||
Servicing advances recovered/(funded), net | $ | $ | |||||||
Cash flows on mortgage-backed securities held (e) | $ | $ | |||||||
Cash Flows - Six months ended June 30, 2018 | |||||||||
Sales of loans (b) | $ | $ | |||||||
Repurchases of previously transferred loans (c) | $ | ||||||||
Servicing fees (d) | $ | $ | |||||||
Servicing advances recovered/(funded), net | $ | $ | |||||||
Cash flows on mortgage-backed securities held (e) | $ | $ |
(a) | Represents cash flow information associated with both commercial mortgage loan transfers and servicing activities. |
(b) | Gains/losses recognized on sales of loans were insignificant for the periods presented. |
(c) | Includes both residential and commercial mortgage government insured or guaranteed loans eligible for repurchase through the exercise of our removal of account provision option, as well as residential mortgage loans repurchased due to alleged breaches of origination covenants or representations and warranties made to purchasers. |
(d) | Includes contractually specified servicing fees, late charges and ancillary fees. |
(e) | Represents cash flows on securities where we transferred to and/or service loans for a securitization SPE and we hold securities issued by that SPE. The carrying values of such securities held were $ |
In millions | Residential Mortgages | Commercial Mortgages (a) | |||||||
June 30, 2019 | |||||||||
Total principal balance | $ | $ | |||||||
Delinquent loans (b) | $ | $ | |||||||
December 31, 2018 | |||||||||
Total principal balance | $ | $ | |||||||
Delinquent loans (b) | $ | $ | |||||||
Three months ended June 30, 2019 | |||||||||
Net charge-offs (c) | $ | $ | |||||||
Three months ended June 30, 2018 | |||||||||
Net charge-offs (c) | $ | $ | |||||||
Six months ended June 30, 2019 | |||||||||
Net charge-offs (c) | $ | $ | |||||||
Six months ended June 30, 2018 | |||||||||
Net charge-offs (c) | $ | $ |
(a) | Represents information at the securitization level in which we have sold loans and we are the servicer for the securitization. |
(b) | Serviced delinquent loans are 90 days or more past due or are in process of foreclosure. |
(c) | Net charge-offs for Residential mortgages represent credit losses less recoveries distributed and as reported to investors during the period. Net charge-offs for Commercial mortgages represent credit losses less recoveries distributed and as reported by the trustee for commercial mortgage backed securitizations. Realized losses for Agency securitizations are not reflected as we do not manage the underlying real estate upon foreclosure and, as such, do not have access to loss information. |
In millions | PNC Risk of Loss (a) | Carrying Value of Assets Owned by PNC | Carrying Value of Liabilities Owned by PNC | ||||||||||||
June 30, 2019 | |||||||||||||||
Mortgage-backed securitizations (b) | $ | $ | (c) | ||||||||||||
Tax credit investments and other | (d) | $ | (e) | ||||||||||||
Total | $ | $ | $ | ||||||||||||
December 31, 2018 | |||||||||||||||
Mortgage-backed securitizations (b) | $ | $ | (c) | ||||||||||||
Tax credit investments and other | (d) | $ | (e) | ||||||||||||
Total | $ | $ | $ |
(a) | Represents loans, investments and other assets related to non-consolidated VIEs, net of collateral (if applicable). The risk of loss excludes any potential tax recapture associated with tax credits investments. |
(b) | Amounts reflect involvement with securitization SPEs where we transferred to and/or service loans for an SPE and we hold securities issued by that SPE. Values disclosed in the PNC Risk of Loss column represent our maximum exposure to loss for those securities’ holdings. |
(c) | Included in Investment securities, Mortgage servicing rights and Other assets on our Consolidated Balance Sheet. |
(d) | Included in Investment securities, Loans, Equity investments and Other assets on our Consolidated Balance Sheet. |
(e) | Included in Deposits and Other liabilities on our Consolidated Balance Sheet. |
Accruing | |||||||||||||||||||||||||||||
Dollars in millions | Current or Less Than 30 Days Past Due | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or More Past Due | Total Past Due (b) | Nonperforming Loans | Fair Value Option Nonaccrual Loans (c) | Purchased Impaired Loans | Total Loans (d) | ||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||||||
Commercial Lending | |||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Equipment lease financing | |||||||||||||||||||||||||||||
Total commercial lending | |||||||||||||||||||||||||||||
Consumer Lending | |||||||||||||||||||||||||||||
Home equity | $ | ||||||||||||||||||||||||||||
Residential real estate | (b) | $ | |||||||||||||||||||||||||||
Automobile | |||||||||||||||||||||||||||||
Credit card | |||||||||||||||||||||||||||||
Education | (b) | ||||||||||||||||||||||||||||
Other consumer | |||||||||||||||||||||||||||||
Total consumer lending | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Percentage of total loans | % | % | % | % | % | % | % | % | % | ||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||
Commercial Lending | |||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Equipment lease financing | |||||||||||||||||||||||||||||
Total commercial lending | |||||||||||||||||||||||||||||
Consumer Lending | |||||||||||||||||||||||||||||
Home equity | $ | ||||||||||||||||||||||||||||
Residential real estate | (b) | $ | |||||||||||||||||||||||||||
Automobile | |||||||||||||||||||||||||||||
Credit card | |||||||||||||||||||||||||||||
Education | (b) | ||||||||||||||||||||||||||||
Other consumer | |||||||||||||||||||||||||||||
Total consumer lending | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Percentage of total loans | % | % | % | % | % | % | % | % | % |
(a) | Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment does not include any associated valuation allowance. |
(b) | Past due loan amounts exclude purchased impaired loans, even if contractually past due (or if we do not expect to receive payment in full based on the original contractual terms), as we are currently accreting interest income over the expected life of the loans. Past due loan amounts include government insured or guaranteed Residential real estate mortgages totaling $ |
(c) | Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policies. Given that these loans are not accounted for at amortized cost, these loans have been excluded from the nonperforming loan population. |
(d) | Net of unearned income, net deferred loan fees, unamortized discounts and premiums, and purchase discounts and premiums totaling $ |
Dollars in millions | June 30 2019 | December 31 2018 | |||||||
Nonperforming loans | |||||||||
Total commercial lending | $ | $ | |||||||
Total consumer lending (a) | |||||||||
Total nonperforming loans | |||||||||
OREO and foreclosed assets | |||||||||
Total nonperforming assets | $ | $ | |||||||
Nonperforming loans to total loans | % | % | |||||||
Nonperforming assets to total loans, OREO and foreclosed assets | % | % | |||||||
Nonperforming assets to total assets | % | % |
(a) | Excludes most consumer loans and lines of credit not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming status. |
In millions | Pass Rated | Criticized | Total Loans | ||||||||||
June 30, 2019 | |||||||||||||
Commercial | $ | $ | $ | ||||||||||
Commercial real estate | |||||||||||||
Equipment lease financing | |||||||||||||
Total commercial lending | $ | $ | $ | ||||||||||
December 31, 2018 | |||||||||||||
Commercial | $ | $ | $ | ||||||||||
Commercial real estate | |||||||||||||
Equipment lease financing | |||||||||||||
Total commercial lending | $ | $ | $ |
(a) | Loans are classified as Pass and Criticized based on the Regulatory Classification definitions. The Criticized classification includes loans that were rated Special Mention, Substandard or Doubtful as of June 30, 2019 and December 31, 2018. We use probability of default and loss given default to rate loans in the commercial lending portfolio. |
June 30, 2019 | December 31, 2018 | |||||||||||
Home equity | Residential real estate | Home equity | Residential real estate | |||||||||
In millions | ||||||||||||
Current estimated LTV ratios | ||||||||||||
Greater than or equal to 125% | $ | $ | $ | $ | ||||||||
Greater than or equal to 100% to less than 125% | ||||||||||||
Greater than or equal to 90% to less than 100% | ||||||||||||
Less than 90% | ||||||||||||
No LTV ratio available | ||||||||||||
Government insured or guaranteed loans | ||||||||||||
Purchased impaired loans | ||||||||||||
Total loans | $ | $ | $ | $ | ||||||||
Updated FICO Scores | ||||||||||||
Greater than 660 | $ | $ | $ | $ | ||||||||
Less than or equal to 660 | ||||||||||||
No FICO score available | ||||||||||||
Government insured or guaranteed loans | ||||||||||||
Purchased impaired loans | ||||||||||||
Total loans | $ | $ | $ | $ |
Dollars in millions | Automobile | Credit Card | Education | Other Consumer | |||||||||
June 30, 2019 | |||||||||||||
FICO score greater than 719 | $ | $ | $ | $ | |||||||||
650 to 719 | |||||||||||||
620 to 649 | |||||||||||||
Less than 620 | |||||||||||||
No FICO score available or required (a) | |||||||||||||
Total loans using FICO credit metric | |||||||||||||
Consumer loans using other internal credit metrics | |||||||||||||
Total loans | $ | $ | $ | $ | |||||||||
Weighted-average updated FICO score (b) | |||||||||||||
December 31, 2018 | |||||||||||||
FICO score greater than 719 | $ | $ | $ | $ | |||||||||
650 to 719 | |||||||||||||
620 to 649 | |||||||||||||
Less than 620 | |||||||||||||
No FICO score available or required (a) | |||||||||||||
Total loans using FICO credit metric | |||||||||||||
Consumer loans using other internal credit metrics | |||||||||||||
Total loans | $ | $ | $ | $ | |||||||||
Weighted-average updated FICO score (b) |
(a) | Loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk. |
(b) | Weighted-average updated FICO score excludes accounts with no FICO score available or required. |
Pre-TDR Recorded Investment (b) | Post-TDR Recorded Investment (c) | |||||||||||||||||||||||
During the three months ended June 30, 2019 Dollars in millions | Number of Loans | Principal Forgiveness | Rate Reduction | Other | Total | |||||||||||||||||||
Total commercial lending | $ | $ | $ | $ | ||||||||||||||||||||
Total consumer lending | ||||||||||||||||||||||||
Total TDRs | $ | $ | $ | $ | ||||||||||||||||||||
During the three months ended June 30, 2018 Dollars in millions | ||||||||||||||||||||||||
Total commercial lending | $ | $ | $ | $ | ||||||||||||||||||||
Total consumer lending | $ | |||||||||||||||||||||||
Total TDRs | $ | $ | $ | $ | $ |
Pre-TDR Recorded Investment (b) | Post-TDR Recorded Investment (c) | |||||||||||||||||||||||
During the six months ended June 30, 2019 Dollars in millions | Number of Loans | Principal Forgiveness | Rate Reduction | Other | Total | |||||||||||||||||||
Total commercial lending | $ | $ | $ | $ | ||||||||||||||||||||
Total consumer lending | ||||||||||||||||||||||||
Total TDRs | $ | $ | $ | $ | ||||||||||||||||||||
During the six months ended June 30, 2018 Dollars in millions | ||||||||||||||||||||||||
Total commercial lending | $ | $ | $ | $ | ||||||||||||||||||||
Total consumer lending | $ | |||||||||||||||||||||||
Total TDRs | $ | $ | $ | $ | $ |
In millions | Unpaid Principal Balance | Recorded Investment | Associated Allowance | Average Recorded Investment (a) | |||||||||||||
June 30, 2019 | |||||||||||||||||
Impaired loans with an associated allowance | |||||||||||||||||
Total commercial lending | $ | $ | $ | $ | |||||||||||||
Total consumer lending | |||||||||||||||||
Total impaired loans with an associated allowance | |||||||||||||||||
Impaired loans without an associated allowance | |||||||||||||||||
Total commercial lending | |||||||||||||||||
Total consumer lending | |||||||||||||||||
Total impaired loans without an associated allowance | |||||||||||||||||
Total impaired loans | $ | $ | $ | $ | |||||||||||||
December 31, 2018 | |||||||||||||||||
Impaired loans with an associated allowance | |||||||||||||||||
Total commercial lending | $ | $ | $ | $ | |||||||||||||
Total consumer lending | |||||||||||||||||
Total impaired loans with an associated allowance | |||||||||||||||||
Impaired loans without an associated allowance | |||||||||||||||||
Total commercial lending | |||||||||||||||||
Total consumer lending | |||||||||||||||||
Total impaired loans without an associated allowance | |||||||||||||||||
Total impaired loans | $ | $ | $ | $ |
(a) | Average recorded investment is for the six months ended June 30, 2019 and the year ended December 31, 2018, respectively. |
2019 | 2018 | ||||||||||||||||||||||||
At or for the six months ended June 30 Dollars in millions | Commercial Lending | Consumer Lending | Total | Commercial Lending | Consumer Lending | Total | |||||||||||||||||||
Allowance for Loan and Lease Losses | |||||||||||||||||||||||||
January 1 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
Charge-offs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Recoveries | |||||||||||||||||||||||||
Net (charge-offs) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Provision for credit losses | |||||||||||||||||||||||||
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit | ( | ) | ( | ) | |||||||||||||||||||||
Other | ( | ) | |||||||||||||||||||||||
June 30 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
TDRs individually evaluated for impairment | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
Other loans individually evaluated for impairment | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | |||||||||||||||||||||||||
Purchased impaired loans | |||||||||||||||||||||||||
June 30 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
Loan Portfolio | |||||||||||||||||||||||||
TDRs individually evaluated for impairment | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
Other loans individually evaluated for impairment | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | |||||||||||||||||||||||||
Fair value option loans (a) | |||||||||||||||||||||||||
Purchased impaired loans | |||||||||||||||||||||||||
June 30 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
Portfolio segment ALLL as a percentage of total ALLL | % | % | % | % | % | % | |||||||||||||||||||
Ratio of ALLL to total loans | % | % | % | % | % | % |
(a) |
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||
In millions | Amortized Cost | Unrealized | Fair Value | Amortized Cost | Unrealized | Fair Value | |||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||||||||||
Agency | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Non-agency | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Commercial mortgage-backed | |||||||||||||||||||||||||||||||||
Agency | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Non-agency | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Asset-backed | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Total securities available for sale | $ | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||||||||||
Agency | $ | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Non-agency | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed | |||||||||||||||||||||||||||||||||
Agency | ( | ) | |||||||||||||||||||||||||||||||
Non-agency | ( | ) | |||||||||||||||||||||||||||||||
Asset-backed | |||||||||||||||||||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Total securities held to maturity | $ | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ |
Unrealized loss position less than 12 months | Unrealized loss position 12 months or more | Total | |||||||||||||||||||||||
In millions | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | |||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||
Agency | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Non-agency | ( | ) | ( | ) | |||||||||||||||||||||
Commercial mortgage-backed | |||||||||||||||||||||||||
Agency | ( | ) | ( | ) | |||||||||||||||||||||
Non-agency | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Asset-backed | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||||||||
Total securities available for sale | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||
Residential mortgage-backed - Agency | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||
Other | $ | ( | ) | $ | ( | ) | ( | ) | |||||||||||||||||
Total securities held to maturity | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||
December 31, 2018 | |||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||
Agency | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Non-agency | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Commercial mortgage-backed | |||||||||||||||||||||||||
Agency | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Non-agency | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Asset-backed | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Total securities available for sale | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||
Residential mortgage-backed - Agency | $ | ( | ) | $ | ( | ) | ( | ) | |||||||||||||||||
Commercial mortgage-backed | |||||||||||||||||||||||||
Agency | ( | ) | ( | ) | |||||||||||||||||||||
Non-agency | ( | ) | ( | ) | |||||||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Total securities held to maturity | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ |
Six months ended June 30 In millions | Gross Gains | Gross Losses | Net Gains (Losses) | Tax Expense (Benefit) | |||||||||
2019 | $ | $ | ( | ) | $ | $ | |||||||
2018 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) |
June 30, 2019 Dollars in millions | 1 Year or Less | After 1 Year through 5 Years | After 5 Years through 10 Years | After 10 Years | Total | ||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||
U.S. Treasury and government agencies | $ | $ | $ | $ | $ | ||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||
Agency | |||||||||||||||||||||
Non-agency | |||||||||||||||||||||
Commercial mortgage-backed | |||||||||||||||||||||
Agency | |||||||||||||||||||||
Non-agency | |||||||||||||||||||||
Asset-backed | |||||||||||||||||||||
Other | |||||||||||||||||||||
Total securities available for sale | $ | $ | $ | $ | $ | ||||||||||||||||
Fair value | $ | $ | $ | $ | $ | ||||||||||||||||
Weighted-average yield, GAAP basis | % | % | % | % | % | ||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||
U.S. Treasury and government agencies | $ | $ | $ | ||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||
Agency | $ | ||||||||||||||||||||
Non-agency | |||||||||||||||||||||
Commercial mortgage-backed | |||||||||||||||||||||
Agency | |||||||||||||||||||||
Non-agency | |||||||||||||||||||||
Asset-backed | |||||||||||||||||||||
Other | $ | ||||||||||||||||||||
Total securities held to maturity | $ | $ | $ | $ | $ | ||||||||||||||||
Fair value | $ | $ | $ | $ | $ | ||||||||||||||||
Weighted-average yield, GAAP basis | % | % | % | % | % |
In millions | June 30 2019 | December 31 2018 | ||||
Pledged to others | $ | $ | ||||
Accepted from others: | ||||||
Permitted by contract or custom to sell or repledge (a) | $ | $ | ||||
Permitted amount repledged to others | $ | $ |
(a) | Includes $ |
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||
In millions | Level 1 | Level 2 | Level 3 | Total Fair Value | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Residential mortgage loans held for sale | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Commercial mortgage loans held for sale | |||||||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | $ | |||||||||||||||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||
Non-agency | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed | |||||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||
Non-agency | |||||||||||||||||||||||||||||||||
Asset-backed | |||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||
Total securities available for sale | |||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||
Equity investments (a) | |||||||||||||||||||||||||||||||||
Residential mortgage servicing rights | |||||||||||||||||||||||||||||||||
Commercial mortgage servicing rights | |||||||||||||||||||||||||||||||||
Trading securities (b) | |||||||||||||||||||||||||||||||||
Financial derivatives (b) (c) | |||||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Other borrowed funds | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Financial derivatives (c) (d) | |||||||||||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ | $ | $ | $ |
(a) | Certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
(b) | Included in Other assets on the Consolidated Balance Sheet. |
(c) | Amounts at June 30, 2019 and December 31, 2018 are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 9 Financial Derivatives for additional information related to derivative offsetting. |
(d) | Included in Other liabilities on the Consolidated Balance Sheet. |
Total realized / unrealized gains or losses for the period (a) | Unrealized gains / losses on assets and liabilities held on Consolidated Balance Sheet at June 30, 2019 (a) (b) | |||||||||||||||||||||||||||||||||||
Level 3 Instruments Only In millions | Fair Value Mar. 31, 2019 | Included in Earnings | Included in Other comprehensive income | Purchases | Sales | Issuances | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Fair Value June 30, 2019 | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Residential mortgage loans held for sale | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||||||||||
Commercial mortgage loans held for sale | $ | $ | ( | ) | $ | |||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||
Residential mortgage- backed non-agency | $ | ( | ) | |||||||||||||||||||||||||||||||||
Asset-backed | ( | ) | ||||||||||||||||||||||||||||||||||
Other | ( | ) | $ | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Total securities available for sale | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
Loans | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Equity investments | ( | ) | ||||||||||||||||||||||||||||||||||
Residential mortgage servicing rights | ( | ) | $ | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Commercial mortgage servicing rights | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Trading securities | ( | ) | ||||||||||||||||||||||||||||||||||
Financial derivatives | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||
Total assets | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Other borrowed funds | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||||
Financial derivatives | $ | $ | ( | ) | ( | ) | $ | |||||||||||||||||||||||||||||
Other liabilities | ( | ) | ||||||||||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||||||
Net gains (losses) | $ | ( | ) | (c) | $ | ( | ) | (d) |
Total realized / unrealized gains or losses for the period (a) | Unrealized gains/losses on assets and liabilities held on Consolidated Balance Sheet at June 30, 2018 (a) (b) | |||||||||||||||||||||||||||||||||||
Level 3 Instruments Only In millions | Fair Value Mar. 31, 2018 | Included in Earnings | Included in Other comprehensive income | Purchases | Sales | Issuances | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Fair Value June 30, 2018 | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Residential mortgage loans held for sale | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||||||||||
Commercial mortgage loans held for sale | $ | ( | ) | $ | ( | ) | ||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||
Residential mortgage- backed non-agency | $ | $ | ( | ) | ||||||||||||||||||||||||||||||||
Asset-backed | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
Other | ( | ) | ||||||||||||||||||||||||||||||||||
Total securities available for sale | ( | ) | ||||||||||||||||||||||||||||||||||
Loans | $ | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Equity investments | ( | ) | ||||||||||||||||||||||||||||||||||
Residential mortgage servicing rights | $ | ( | ) | |||||||||||||||||||||||||||||||||
Commercial mortgage servicing rights | ( | ) | ||||||||||||||||||||||||||||||||||
Trading securities | ||||||||||||||||||||||||||||||||||||
Financial derivatives | ( | ) | ||||||||||||||||||||||||||||||||||
Other assets | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Other borrowed funds | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||||
Financial derivatives | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||||||||||||||||
Other liabilities | ( | ) | ||||||||||||||||||||||||||||||||||
Total liabilities | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||||||||||
Net gains (losses) | $ | (c) | $ | (d) |
Total realized / unrealized gains or losses for the period (a) | Unrealized gains / losses on assets and liabilities held on Consolidated Balance Sheet at June 30, 2019 (a) (b) | |||||||||||||||||||||||||||||||||||
Level 3 Instruments Only In millions | Fair Value Dec. 31, 2018 | Included in Earnings | Included in Other comprehensive income | Purchases | Sales | Issuances | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Fair Value June 30, 2019 | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Residential mortgage loans held for sale | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||
Commercial mortgage loans held for sale | $ | $ | ( | ) | $ | |||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||
Residential mortgage- backed non-agency | $ | ( | ) | |||||||||||||||||||||||||||||||||
Asset-backed | ( | ) | ||||||||||||||||||||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Total securities available for sale | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
Loans | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Equity investments | ( | ) | ||||||||||||||||||||||||||||||||||
Residential mortgage servicing rights | ( | ) | $ | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Commercial mortgage servicing rights | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Trading securities | ( | ) | ||||||||||||||||||||||||||||||||||
Financial derivatives | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
Other assets | ( | ) | ||||||||||||||||||||||||||||||||||
Total assets | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Other borrowed funds | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||||
Financial derivatives | $ | ( | ) | $ | ||||||||||||||||||||||||||||||||
Other liabilities | ( | ) | ||||||||||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||||||
Net gains (losses) | $ | ( | ) | (c) | $ | ( | ) | (d) |
Total realized / unrealized gains or losses for the period (a) | Unrealized gains/losses on assets and liabilities held on Consolidated Balance Sheet at June 30, 2018 (a) (b) | |||||||||||||||||||||||||||||||||||
Level 3 Instruments Only In millions | Fair Value Dec. 31, 2017 | Included in Earnings | Included in Other comprehensive income | Purchases | Sales | Issuances | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Fair Value June 30, 2018 | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Residential mortgage loans held for sale | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||
Commercial mortgage loans held for sale | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||
Residential mortgage- backed non-agency | $ | ( | ) | |||||||||||||||||||||||||||||||||
Asset-backed | ( | ) | ||||||||||||||||||||||||||||||||||
Other | ( | ) | ||||||||||||||||||||||||||||||||||
Total securities available for sale | ( | ) | ||||||||||||||||||||||||||||||||||
Loans | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Equity investments | ( | ) | ||||||||||||||||||||||||||||||||||
Residential mortgage servicing rights | $ | ( | ) | |||||||||||||||||||||||||||||||||
Commercial mortgage servicing rights | ( | ) | ||||||||||||||||||||||||||||||||||
Trading securities | ||||||||||||||||||||||||||||||||||||
Financial derivatives | ( | ) | ||||||||||||||||||||||||||||||||||
Other assets | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Other borrowed funds | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||||
Financial derivatives | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||||||||||||||||
Other liabilities | $ | ( | ) | |||||||||||||||||||||||||||||||||
Total liabilities | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||||||||||||||
Net gains (losses) | $ | (c) | $ | (d) |
(a) | Losses for assets are bracketed while losses for liabilities are not. |
(b) | The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period. |
(c) | Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts were included in Interest income on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized were included in Noninterest income on the Consolidated Income Statement. |
(d) | Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income on the Consolidated Income Statement. |
Level 3 Instruments Only Dollars in millions | Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted-Average) | ||
Commercial mortgage loans held for sale | $ | Discounted cash flow | Spread over the benchmark curve (a) | 530bps - 2,270bps (1,477bps) | ||
Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a discounted cash flow pricing model | Constant prepayment rate | 1.0% - 36.2% (10.1%) | |||
Constant default rate | 0.0% - 15.9% (4.7%) | |||||
Loss severity | 15.0% - 95.7% (50.0%) | |||||
Spread over the benchmark curve (a) | 190bps weighted-average | |||||
Asset-backed securities | Priced by a third-party vendor using a discounted cash flow pricing model | Constant prepayment rate | 1.0% - 22.0% (8.1%) | |||
Constant default rate | 1.0% - 7.2% (3.5%) | |||||
Loss severity | 15.0% - 100.0% (60.6%) | |||||
Spread over the benchmark curve (a) | 190bps weighted-average | |||||
Loans | Consensus pricing (b) | Cumulative default rate | 11.0% - 100.0% (81.2%) | |||
Loss severity | 0.0% - 100.0% (16.4%) | |||||
Discount rate | 5.5% - 8.3% (5.8%) | |||||
Discounted cash flow | Loss severity | 8.0% weighted-average | ||||
Discount rate | 5.0% weighted-average | |||||
Consensus pricing (b) | Credit and Liquidity discount | 0.0% - 99.0% (61.9%) | ||||
Equity investments | Multiple of adjusted earnings | Multiple of earnings | 5.0x - 19.7x (8.6x) | |||
Residential mortgage servicing rights | Discounted cash flow | Constant prepayment rate | 0.0% - 65.0% (13.6%) | |||
Spread over the benchmark curve (a) | 296bps - 1,428bps (786bps) | |||||
Commercial mortgage servicing rights | Discounted cash flow | Constant prepayment rate | 3.8% - 18.3% (4.9%) | |||
Discount rate | 5.6% - 7.9% (7.9%) | |||||
Financial derivatives - Swaps related to sales of certain Visa Class B common shares | ( | ) | Discounted cash flow | Estimated conversion factor of Visa Class B shares into Class A shares | 163.0% weighted-average | |
Estimated annual growth rate of Visa Class A share price | 16.0% | |||||
Estimated length of litigation resolution date | Q4 2020 | |||||
Insignificant Level 3 assets, net of liabilities (c) | ||||||
Total Level 3 assets, net of liabilities (d) | $ |
Level 3 Instruments Only Dollars in millions | Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted-Average) | ||
Commercial mortgage loans held for sale | $ | Discounted cash flow | Spread over the benchmark curve (a) | 535bps - 1,900bps (1,217bps) | ||
Residential mortgage-backed non-agency securities | Priced by a third-party vendor using a discounted cash flow pricing model | Constant prepayment rate | 1.0% - 33.0% (11.8%) | |||
Constant default rate | 0.0% - 18.8% (5.1%) | |||||
Loss severity | 10.0% - 100.0% (50.8%) | |||||
Spread over the benchmark curve (a) | 216bps weighted-average | |||||
Asset-backed securities | Priced by a third-party vendor using a discounted cash flow pricing model | Constant prepayment rate | 1.0% - 19.0% (8.5%) | |||
Constant default rate | 1.0% - 18.5% (4.0%) | |||||
Loss severity | 15.0% - 100.0% (63.8%) | |||||
Spread over the benchmark curve (a) | 198bps weighted-average | |||||
Loans | Consensus pricing (b) | Cumulative default rate | 11.0% - 100.0% (81.8%) | |||
Loss severity | 0.0% - 100.0% (17.2%) | |||||
Discount rate | 5.5% - 8.3% (5.8%) | |||||
Discounted cash flow | Loss severity | 8.0% weighted-average | ||||
Discount rate | 5.8% weighted-average | |||||
Consensus pricing (b) | Credit and Liquidity discount | 0.0% - 99.0% (61.3%) | ||||
Equity investments | Multiple of adjusted earnings | Multiple of earnings | 4.5x - 16.0x (8.4x) | |||
Residential mortgage servicing rights | Discounted cash flow | Constant prepayment rate | 0.0% - 54.5% (8.7%) | |||
Spread over the benchmark curve (a) | 492bps - 1,455bps (806bps) | |||||
Commercial mortgage servicing rights | Discounted cash flow | Constant prepayment rate | 4.6% - 14.7% (5.7%) | |||
Discount rate | 6.9% - 8.5% (8.4%) | |||||
Financial derivatives - Swaps related to sales of certain Visa Class B common shares | ( | ) | Discounted cash flow | Estimated conversion factor of Visa Class B shares into Class A shares | 163.0% weighted-average | |
Estimated annual growth rate of Visa Class A share price | 16.0% | |||||
Estimated length of litigation resolution date | Q4 2020 | |||||
Insignificant Level 3 assets, net of liabilities (c) | ||||||
Total Level 3 assets, net of liabilities (d) | $ |
(a) | The assumed yield spread over the benchmark curve for each instrument is generally intended to incorporate non-interest rate risks, such as credit and liquidity risks. |
(b) | Consensus pricing refers to fair value estimates that are generally internally developed using information such as dealer quotes or other third-party provided valuations or comparable asset prices. |
(c) | Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain financial derivative assets and liabilities, trading securities, other securities, residential mortgage loans held for sale, other assets, other borrowed funds and other liabilities. |
(d) | Consisted of total Level 3 assets of $ |
Fair Value | Gains (Losses) Three months ended | Gains (Losses) Six months ended | ||||||||||||||||||||||
In millions | June 30 2019 | December 31 2018 | June 30 2019 | June 30 2018 | June 30 2019 | June 30 2018 | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Nonaccrual loans | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||
OREO and foreclosed assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Long-lived assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Total assets | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(a) | All Level 3 for the periods presented. |
(b) | Valuation techniques applied were fair value of property or collateral. |
(c) | Unobservable inputs used were appraised value/sales price, broker opinions or projected income/required improvement costs. Additional quantitative information was not meaningful for the periods presented. |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
In millions | Fair Value | Aggregate Unpaid Principal Balance | Difference | Fair Value | Aggregate Unpaid Principal Balance | Difference | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Residential mortgage loans held for sale | ||||||||||||||||||||||||
Performing loans | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Accruing loans 90 days or more past due | ||||||||||||||||||||||||
Nonaccrual loans | ( | ) | ||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Commercial mortgage loans held for sale (a) | ||||||||||||||||||||||||
Performing loans | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | ||||||||||||||
Nonaccrual loans | ( | ) | ||||||||||||||||||||||
Total | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | ||||||||||||||
Residential mortgage loans | ||||||||||||||||||||||||
Performing loans | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | ||||||||||||||
Accruing loans 90 days or more past due | ( | ) | ( | ) | ||||||||||||||||||||
Nonaccrual loans | ( | ) | ( | ) | ||||||||||||||||||||
Total | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | ||||||||||||||
Other assets | $ | $ | $ | $ | $ | $ | ( | ) | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Other borrowed funds | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) |
(a) | There were no accruing loans 90 days or more past due within this category at June 30, 2019 or December 31, 2018. |
Gains (Losses) | Gains (Losses) | |||||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 30 | June 30 | June 30 | June 30 | |||||||||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Assets | ||||||||||||||||
Residential mortgage loans held for sale | $ | $ | $ | $ | ||||||||||||
Commercial mortgage loans held for sale | $ | $ | $ | $ | ||||||||||||
Residential mortgage loans | $ | $ | $ | $ | ||||||||||||
Other assets | $ | $ | ( | ) | $ | $ | ( | ) |
(a) | The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts. |
Carrying | Fair Value | |||||||||||||||||||
In millions | Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
June 30, 2019 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | $ | $ | |||||||||||||||||
Interest-earning deposits with banks | $ | |||||||||||||||||||
Securities held to maturity | $ | |||||||||||||||||||
Net loans (excludes leases) | ||||||||||||||||||||
Other assets | ||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | |||||||||||||||
Liabilities | ||||||||||||||||||||
Time deposits | $ | $ | $ | |||||||||||||||||
Borrowed funds | $ | |||||||||||||||||||
Unfunded loan commitments and letters of credit | ||||||||||||||||||||
Other liabilities | ||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | ||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | $ | $ | |||||||||||||||||
Interest-earning deposits with banks | $ | |||||||||||||||||||
Securities held to maturity | $ | |||||||||||||||||||
Net loans (excludes leases) | ||||||||||||||||||||
Other assets | ||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | |||||||||||||||
Liabilities | ||||||||||||||||||||
Time deposits | $ | $ | $ | |||||||||||||||||
Borrowed funds | $ | |||||||||||||||||||
Unfunded loan commitments and letters of credit | ||||||||||||||||||||
Other liabilities | ||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
• | financial instruments recorded at fair value on a recurring basis (as they are disclosed in Table 49); |
• | investments accounted for under the equity method; |
• | equity securities without a readily determinable fair value that apply for the alternative measurement approach to fair value under ASU 2016-01; |
• | real and personal property; |
• | lease financing; |
• | loan customer relationships; |
• | deposit customer intangibles; |
• | mortgage servicing rights (MSRs); |
• | retail branch networks; |
• | fee-based businesses, such as asset management and brokerage; |
• | trademarks and brand names; |
• | trade receivables and payables due in one year or less; and |
• | deposit liabilities with no defined or contractual maturities under ASU 2016-01. |
Commercial MSRs | Residential MSRs | |||||||||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||||||||
January 1 | $ | $ | $ | $ | ||||||||||
Additions: | ||||||||||||||
From loans sold with servicing retained | ||||||||||||||
Purchases | ||||||||||||||
Changes in fair value due to: | ||||||||||||||
Time and payoffs (a) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||
Other (b) | ( | ) | ( | ) | ||||||||||
June 30 | $ | $ | $ | $ | ||||||||||
Related unpaid principal balance at June 30 | $ | $ | $ | $ | ||||||||||
Servicing advances at June 30 | $ | $ | $ | $ |
(a) | Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period. |
(b) | Represents MSR value changes resulting primarily from market-driven changes in interest rates. |
Dollars in millions | June 30 2019 | December 31 2018 | ||||||
Fair value | $ | $ | ||||||
Weighted-average life (years) | ||||||||
Weighted-average constant prepayment rate | % | % | ||||||
Decline in fair value from 10% adverse change | $ | $ | ||||||
Decline in fair value from 20% adverse change | $ | $ | ||||||
Effective discount rate | % | % | ||||||
Decline in fair value from 10% adverse change | $ | $ | ||||||
Decline in fair value from 20% adverse change | $ | $ |
Dollars in millions | June 30 2019 | December 31 2018 | ||||||
Fair value | $ | $ | ||||||
Weighted-average life (years) | ||||||||
Weighted-average constant prepayment rate | % | % | ||||||
Decline in fair value from 10% adverse change | $ | $ | ||||||
Decline in fair value from 20% adverse change | $ | $ | ||||||
Weighted-average option adjusted spread | 786 | bps | 806 | bps | ||||
Decline in fair value from 10% adverse change | $ | $ | ||||||
Decline in fair value from 20% adverse change | $ | $ |
Qualified Pension Plan | Nonqualified Pension Plan | Postretirement Benefits | ||||||||||||||||||||||||
Three months ended June 30 In millions | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Net periodic cost consists of: | ||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest cost | $ | $ | ||||||||||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Amortization of prior service credit | ||||||||||||||||||||||||||
Amortization of actuarial losses | ||||||||||||||||||||||||||
Net periodic cost/(benefit) | $ | $ | ( | ) | $ | $ | $ | $ |
Qualified Pension Plan | Nonqualified Pension Plan | Postretirement Benefits | ||||||||||||||||||||||||
Six months ended June 30 In millions | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Net periodic cost consists of: | ||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Amortization of prior service credit | ||||||||||||||||||||||||||
Amortization of actuarial losses | ||||||||||||||||||||||||||
Net periodic cost/(benefit) | $ | $ | ( | ) | $ | $ | $ | $ |
(a) | The service cost component is included in Personnel expense on the Consolidated Income Statement. All other components are included in Other noninterest expense on the Consolidated Income Statement. |
June 30, 2019 | December 31, 2018 | |||||||||||||||||
In millions | Notional / Contract Amount | Asset Fair Value (a) | Liability Fair Value (b) | Notional / Contract Amount | Asset Fair Value (a) | Liability Fair Value (b) | ||||||||||||
Derivatives used for hedging under GAAP | ||||||||||||||||||
Interest rate contracts (c): | ||||||||||||||||||
Fair value hedges | $ | $ | $ | |||||||||||||||
Cash flow hedges | $ | $ | ||||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||
Net investment hedges | $ | |||||||||||||||||
Total derivatives designated for hedging under GAAP | $ | $ | $ | $ | $ | $ | ||||||||||||
Derivatives not used for hedging under GAAP | ||||||||||||||||||
Derivatives used for mortgage banking activities (d): | ||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||
Swaps | $ | $ | $ | $ | $ | |||||||||||||
Futures (e) | ||||||||||||||||||
Mortgage-backed commitments | $ | |||||||||||||||||
Other | ||||||||||||||||||
Subtotal | ||||||||||||||||||
Derivatives used for customer-related activities: | ||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||
Swaps | ||||||||||||||||||
Futures (e) | ||||||||||||||||||
Mortgage-backed commitments | ||||||||||||||||||
Other | ||||||||||||||||||
Subtotal | ||||||||||||||||||
Commodity contracts: | ||||||||||||||||||
Swaps | ||||||||||||||||||
Other | ||||||||||||||||||
Subtotal | ||||||||||||||||||
Foreign exchange contracts and other | ||||||||||||||||||
Subtotal | ||||||||||||||||||
Derivatives used for other risk management activities: | ||||||||||||||||||
Foreign exchange contracts and other | ||||||||||||||||||
Total derivatives not designated for hedging under GAAP | $ | $ | $ | $ | $ | $ | ||||||||||||
Total gross derivatives | $ | $ | $ | $ | $ | $ | ||||||||||||
Less: Impact of legally enforceable master netting agreements | ||||||||||||||||||
Less: Cash collateral received/paid | ||||||||||||||||||
Total derivatives | $ | $ | $ | $ |
(a) | Included in Other assets on our Consolidated Balance Sheet. |
(b) | Included in Other liabilities on our Consolidated Balance Sheet. |
(c) | Represents primarily swaps. |
(d) | Includes both residential and commercial mortgage banking activities. |
(e) | Futures contracts settle in cash daily and, therefore, no derivative asset or derivative liability is recognized on our Consolidated Balance Sheet. |
Location and Amount of Gains (Losses) Recognized in Income | ||||||||||||
Interest Income | Interest Expense | Noninterest Income | ||||||||||
In millions | Loans | Investment Securities | Borrowed Funds | Other | ||||||||
For the three months ended June 30, 2019 | ||||||||||||
Total amounts on the Consolidated Income Statement | $ | $ | $ | $ | ||||||||
Gains (losses) on fair value hedges recognized on: | ||||||||||||
Hedged items (c) | $ | $ | ( | ) | ||||||||
Derivatives | $ | ( | ) | $ | ||||||||
Amounts related to interest settlements on derivatives | $ | $ | ||||||||||
Gains (losses) on cash flow hedges (d): | ||||||||||||
Amount of derivative gains (losses) reclassified from AOCI | $ | ( | ) | $ | $ | |||||||
For the three months ended June 30, 2018 | ||||||||||||
Total amounts on the Consolidated Income Statement | $ | $ | $ | $ | ||||||||
Gains (losses) on fair value hedges recognized on: | ||||||||||||
Hedged items (c) | $ | ( | ) | $ | ||||||||
Derivatives | $ | $ | ( | ) | ||||||||
Amounts related to interest settlements on derivatives | $ | $ | ||||||||||
Gains (losses) on cash flow hedges (d): | ||||||||||||
Amount of derivative gains (losses) reclassified from AOCI | $ | $ | $ | |||||||||
For the six months ended June 30, 2019 | ||||||||||||
Total amounts on the Consolidated Income Statement | $ | $ | $ | $ | ||||||||
Gains (losses) on fair value hedges recognized on: | ||||||||||||
Hedged items (c) | $ | $ | ( | ) | ||||||||
Derivatives | $ | ( | ) | $ | ||||||||
Amounts related to interest settlements on derivatives | $ | $ | ||||||||||
Gains (losses) on cash flow hedges (d): | ||||||||||||
Amount of derivative gains (losses) reclassified from AOCI | $ | ( | ) | $ | $ | |||||||
For the six months ended June 30, 2018 | ||||||||||||
Total amounts on the Consolidated Income Statement | $ | $ | $ | $ | ||||||||
Gains (losses) on fair value hedges recognized on: | ||||||||||||
Hedged items | $ | ( | ) | $ | ||||||||
Derivatives | $ | $ | ( | ) | ||||||||
Amounts related to interest settlements on derivatives | $ | ( | ) | $ | ||||||||
Gains (losses) on cash flow hedges (d): | ||||||||||||
Amount of derivative gains (losses) reclassified from AOCI | $ | $ | $ |
(a) | For all periods presented, there were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for any of the fair value or cash flow hedge strategies. |
(b) | All cash flow and fair value hedge derivatives were interest rate contracts for the periods presented. |
(c) | Includes an insignificant amount of fair value hedge adjustments primarily related to discontinued borrowed funds hedge relationships. |
(d) |
June 30, 2019 | December 31, 2018 | |||||||||||||||
In millions | Carrying Value of the Hedged Items | Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a) | Carrying Value of the Hedged Items | Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a) | ||||||||||||
Investment securities - available for sale (b) | $ | $ | $ | $ | ( | ) | ||||||||||
Borrowed funds | $ | $ | $ | $ | ( | ) |
(a) | Includes $( |
(b) | Carrying value shown represents amortized cost. |
Three months ended June 30 | Six months ended June 30 | |||||||||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||||||||
Derivatives used for mortgage banking activities: | ||||||||||||||
Interest rate contracts (a) | $ | $ | ( | ) | $ | $ | ( | ) | ||||||
Derivatives used for customer-related activities: | ||||||||||||||
Interest rate contracts | ||||||||||||||
Foreign exchange contracts and other (b) | ||||||||||||||
Gains (losses) from customer-related activities (c) | ||||||||||||||
Derivatives used for other risk management activities: | ||||||||||||||
Foreign exchange contracts and other (c) | ( | ) | ( | ) | ||||||||||
Total gains (losses) from derivatives not designated as hedging instruments | $ | $ | $ | $ |
(a) | Included in Residential mortgage, Corporate services and Other noninterest income on our Consolidated Income Statement. |
(b) | Includes an insignificant amount of gains (losses) on commodity contracts for all periods presented. |
(c) | Included in Other noninterest income on our Consolidated Income Statement. |
In millions | Amounts Offset on the Consolidated Balance Sheet | Securities Collateral Held/Pledged Under Master Netting Agreements | |||||||||||||||||||||||||
Gross Fair Value | Fair Value Offset Amount | Cash Collateral | Net Fair Value | Net Amounts | |||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||
Over-the-counter cleared | $ | $ | $ | ||||||||||||||||||||||||
Over-the-counter | $ | $ | $ | ||||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||
Foreign exchange and other contracts | |||||||||||||||||||||||||||
Total derivative assets | $ | $ | $ | $ | (a) | $ | $ | ||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||
Over-the-counter cleared | $ | $ | $ | ||||||||||||||||||||||||
Over-the-counter | $ | $ | |||||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||
Foreign exchange and other contracts | |||||||||||||||||||||||||||
Total derivative liabilities | $ | $ | $ | $ | (b) | $ | |||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||
Over-the-counter cleared | $ | $ | $ | ||||||||||||||||||||||||
Over-the-counter | $ | $ | $ | ||||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||
Foreign exchange and other contracts | |||||||||||||||||||||||||||
Total derivative assets | $ | $ | $ | $ | (a) | $ | $ | ||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||
Over-the-counter cleared | $ | $ | $ | ||||||||||||||||||||||||
Over-the-counter | $ | $ | $ | ||||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||
Foreign exchange and other contracts | |||||||||||||||||||||||||||
Total derivative liabilities | $ | $ | $ | $ | (b) | $ | $ |
(a) | Represents the net amount of derivative assets included in Other assets on our Consolidated Balance Sheet. |
(b) | Represents the net amount of derivative liabilities included in Other liabilities on our Consolidated Balance Sheet. |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
In millions, except per share data | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Basic | |||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||
Less: | |||||||||||||||||
Net income attributable to noncontrolling interests | |||||||||||||||||
Preferred stock dividends | |||||||||||||||||
Preferred stock discount accretion and redemptions | |||||||||||||||||
Net income attributable to common shares | |||||||||||||||||
Less: Dividends and undistributed earnings allocated to participating securities | |||||||||||||||||
Net income attributable to basic common shares | $ | $ | $ | $ | |||||||||||||
Basic weighted-average common shares outstanding | |||||||||||||||||
Basic earnings per common share (a) | $ | $ | $ | $ | |||||||||||||
Diluted | |||||||||||||||||
Net income attributable to basic common shares | $ | $ | $ | $ | |||||||||||||
Less: Impact of BlackRock earnings per share dilution | |||||||||||||||||
Net income attributable to diluted common shares | $ | $ | $ | $ | |||||||||||||
Basic weighted-average common shares outstanding | |||||||||||||||||
Dilutive potential common shares | |||||||||||||||||
Diluted weighted-average common shares outstanding | |||||||||||||||||
Diluted earnings per common share (a) | $ | $ | $ | $ |
(a) | Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares and restricted share units with nonforfeitable dividends and dividend rights (participating securities). |
Shareholders’ Equity | |||||||||||||||||||||||||||||
in millions | Shares Outstanding Common Stock | Common Stock | Capital Surplus - Preferred Stock | Capital Surplus - Common Stock and Other | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non- controlling Interests | Total Equity | ||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||
Balance March 31, 2018 (a) | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Net income | |||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ) | ( | ) | |||||||||||||||||||||||||
Cash dividends declared - Common | ( | ) | ( | ) | |||||||||||||||||||||||||
Cash dividends declared - Preferred | ( | ) | ( | ) | |||||||||||||||||||||||||
Preferred stock discount accretion | ( | ) | |||||||||||||||||||||||||||
Common stock activity | |||||||||||||||||||||||||||||
Treasury stock activity | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Other | ( | ) | |||||||||||||||||||||||||||
Balance at June 30, 2018 (a) | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Balance at March 31, 2019 (a) | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Net income | |||||||||||||||||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||||||||||||
Cash dividends declared - Common | ( | ) | ( | ) | |||||||||||||||||||||||||
Cash dividends declared - Preferred | ( | ) | ( | ) | |||||||||||||||||||||||||
Preferred stock discount accretion | ( | ) | |||||||||||||||||||||||||||
Common stock activity | |||||||||||||||||||||||||||||
Treasury stock activity | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Other | ( | ) | |||||||||||||||||||||||||||
Balance at June 30, 2019 (a) | $ | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Six months ended | |||||||||||||||||||||||||||||
Balance at January 1, 2018 (a) | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Net income | |||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ) | ( | ) | |||||||||||||||||||||||||
Cash dividends declared - Common | ( | ) | ( | ) | |||||||||||||||||||||||||
Cash dividends declared - Preferred | ( | ) | ( | ) | |||||||||||||||||||||||||
Preferred stock discount accretion | ( | ) | |||||||||||||||||||||||||||
Common stock activity | |||||||||||||||||||||||||||||
Treasury stock activity | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Balance at June 30, 2018 (a) | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Balance at December 31, 2018 (a) | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Cumulative effect of ASU 2016-02 adoption (b) | |||||||||||||||||||||||||||||
Balance at January 1, 2019 (a) | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Net income | |||||||||||||||||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||||||||||||
Cash dividends declared - Common | ( | ) | ( | ) | |||||||||||||||||||||||||
Cash dividends declared - Preferred | ( | ) | ( | ) | |||||||||||||||||||||||||
Preferred stock discount accretion | ( | ) | |||||||||||||||||||||||||||
Common stock activity | |||||||||||||||||||||||||||||
Treasury stock activity | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Balance at June 30, 2019 (a) | $ | $ | $ | $ | $ | $ | ( | ) | $ | $ |
(a) | The par value of our preferred stock outstanding was less than $ |
(b) | Represents the impact of the adoption of ASU 2016-02 related primarily to deferred gains on previous sale-leaseback transactions. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in this Report for additional detail. |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
In millions | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net unrealized gains (losses) on non-OTTI securities | |||||||||||||||
Increase in net unrealized gains (losses) on non-OTTI securities | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income | |||||||||||||||
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income | ( | ) | ( | ) | |||||||||||
Net increase (decrease), pre-tax | ( | ) | ( | ) | |||||||||||
Effect of income taxes | ( | ) | ( | ) | |||||||||||
Net increase (decrease), after-tax | ( | ) | ( | ) | |||||||||||
Net unrealized gains (losses) on OTTI securities | |||||||||||||||
Increase in net unrealized gains (losses) on OTTI securities | |||||||||||||||
Net increase (decrease), pre-tax | |||||||||||||||
Effect of income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Net increase (decrease), after-tax | |||||||||||||||
Net unrealized gains (losses) on cash flow hedge derivatives | |||||||||||||||
Increase in net unrealized gains (losses) on cash flow hedge derivatives | ( | ) | ( | ) | |||||||||||
Less: Net gains (losses) realized as a yield adjustment reclassified to loan interest income | ( | ) | ( | ) | |||||||||||
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income | |||||||||||||||
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income | |||||||||||||||
Net increase (decrease), pre-tax | ( | ) | ( | ) | |||||||||||
Effect of income taxes | ( | ) | ( | ) | |||||||||||
Net increase (decrease), after-tax | ( | ) | ( | ) | |||||||||||
Pension and other postretirement benefit plan adjustments | |||||||||||||||
Net pension and other postretirement benefit activity | ( | ) | |||||||||||||
Amortization of actuarial loss (gain) reclassified to other noninterest expense | |||||||||||||||
Amortization of prior service cost (credit) reclassified to other noninterest expense | |||||||||||||||
Net increase (decrease), pre-tax | ( | ) | |||||||||||||
Effect of income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Net increase (decrease), after-tax | ( | ) | |||||||||||||
Other | |||||||||||||||
PNC’s portion of BlackRock’s OCI | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net investment hedge derivatives | |||||||||||||||
Foreign currency translation adjustments and other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net increase (decrease), pre-tax | ( | ) | ( | ) | ( | ) | |||||||||
Effect of income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Net increase (decrease), after-tax | ( | ) | ( | ) | ( | ) | |||||||||
Total other comprehensive income (loss), pre-tax | ( | ) | ( | ) | |||||||||||
Total other comprehensive income (loss), tax effect | ( | ) | ( | ) | |||||||||||
Total other comprehensive income (loss), after-tax | $ | $ | ( | ) | $ | $ | ( | ) |
In millions, after-tax | Net unrealized gains (losses) on non-OTTI securities | Net unrealized gains (losses) on OTTI securities | Net unrealized gains (losses) on cash flow hedge derivatives | Pension and other postretirement benefit plan adjustments | Other | Total | ||||||||||||||||||
Balance at March 31, 2018 | $ | ( | ) | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||
Net activity | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Balance at June 30, 2018 | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||
Net activity | ( | ) | ( | ) | ||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||
Cumulative effect of adopting ASU 2018-02 (a) | ( | ) | ||||||||||||||||||||||
Balance at January 1, 2018 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Net activity | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Balance at June 30, 2018 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
Balance at December 31, 2018 | $ | ( | ) | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||
Net activity | ||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
(a) | Represents the cumulative impact of adopting ASU 2018-02 which permits the reclassification to retained earnings of the income tax effects stranded within AOCI. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in our 2018 Form 10-K for additional detail on this adoption. |
Three months ended June 30 | Six months ended June 30 | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Common Stock | $ | $ | $ | $ | ||||||||
Preferred Stock | ||||||||||||
Series B | $ | $ | $ | $ | ||||||||
Series O | $ | $ | ||||||||||
Series P | $ | $ | $ | $ | ||||||||
Series Q | $ | $ | $ | $ | ||||||||
Series R | $ | $ | $ | $ | ||||||||
Series S | $ | $ | $ | $ |
In millions | June 30 2019 | December 31 2018 | ||||||
Commitments to extend credit | ||||||||
Total commercial lending | $ | $ | ||||||
Home equity lines of credit | ||||||||
Credit card | ||||||||
Other | ||||||||
Total commitments to extend credit | ||||||||
Net outstanding standby letters of credit (a) | ||||||||
Reinsurance agreements (b) | ||||||||
Standby bond purchase agreements (c) | ||||||||
Other commitments (d) | ||||||||
Total commitments to extend credit and other commitments | $ | $ |
(a) | Net outstanding standby letters of credit include $ |
(b) | Represents aggregate maximum exposure up to the specified limits of the reinsurance contracts provided by our wholly-owned captive insurance subsidiary. These amounts reflect estimates based on availability of financial information from insurance carriers. As of both June 30, 2019 and December 31, 2018, the aggregate maximum exposure amount comprised $ |
(c) | We enter into standby bond purchase agreements to support municipal bond obligations. |
(d) | Includes $ |
• | Retail Banking |
• | Corporate & Institutional Banking |
• | Asset Management Group |
• | BlackRock |
Three months ended June 30 In millions | Retail Banking | Corporate & Institutional Banking | Asset Management Group | BlackRock | Other | Consolidated (a) | ||||||||||||||||||
2019 | ||||||||||||||||||||||||
Income Statement | ||||||||||||||||||||||||
Net interest income | $ | $ | $ | $ | $ | |||||||||||||||||||
Noninterest income | $ | |||||||||||||||||||||||
Total revenue | ||||||||||||||||||||||||
Provision for credit losses (benefit) | ( | ) | ||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||
Other noninterest expense | ||||||||||||||||||||||||
Income before income taxes and noncontrolling interests | ||||||||||||||||||||||||
Income taxes (benefit) | ( | ) | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Average Assets (b) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
2018 | ||||||||||||||||||||||||
Income Statement | ||||||||||||||||||||||||
Net interest income | $ | $ | $ | $ | $ | |||||||||||||||||||
Noninterest income | $ | |||||||||||||||||||||||
Total revenue | ||||||||||||||||||||||||
Provision for credit losses (benefit) | ( | ) | ||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||
Other noninterest expense | ||||||||||||||||||||||||
Income before income taxes and noncontrolling interests | ||||||||||||||||||||||||
Income taxes (benefit) | ( | ) | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Average Assets (b) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Six months ended June 30 In millions | Retail Banking | Corporate & Institutional Banking | Asset Management Group | BlackRock | Other | Consolidated (a) | ||||||||||||||||||
2019 | ||||||||||||||||||||||||
Income Statement | ||||||||||||||||||||||||
Net interest income | $ | $ | $ | $ | $ | |||||||||||||||||||
Noninterest income | $ | |||||||||||||||||||||||
Total revenue | ||||||||||||||||||||||||
Provision for credit losses (benefit) | ( | ) | ( | ) | ||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||
Other noninterest expense | ||||||||||||||||||||||||
Income before income taxes and noncontrolling interests | ||||||||||||||||||||||||
Income taxes (benefit) | ( | ) | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Average Assets (b) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
2018 | ||||||||||||||||||||||||
Income Statement | ||||||||||||||||||||||||
Net interest income | $ | $ | $ | $ | $ | |||||||||||||||||||
Noninterest income | $ | |||||||||||||||||||||||
Total revenue | ||||||||||||||||||||||||
Provision for credit losses (benefit) | ( | ) | ||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||
Other noninterest expense | ||||||||||||||||||||||||
Income before income taxes and noncontrolling interests | ||||||||||||||||||||||||
Income taxes (benefit) | ( | ) | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Average Assets (b) | $ | $ | $ | $ | $ | $ |
(a) | There were no material intersegment revenues for the three and six months ended June 30, 2019 and 2018. |
(b) | Period-end balances for BlackRock. |
• | Wealth management provides products and services to individuals and their families including investment and retirement planning, customized investment management, private banking, and trust management and administration for individuals and their families. |
• | Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth clients. |
• | Institutional asset management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement advisory services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits. |
Three months ended June 30 | Six months ended June 30 | |||||||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||||||
Product | ||||||||||||
Deposit account fees | $ | $ | $ | $ | ||||||||
Debit card fees | ||||||||||||
Brokerage fees | ||||||||||||
Merchant services | ||||||||||||
Net credit card fees (a) | ||||||||||||
Other | ||||||||||||
Total in-scope noninterest income by product | $ | $ | $ | $ | ||||||||
Reconciliation to total Retail Banking noninterest income | ||||||||||||
Total in-scope noninterest income | $ | $ | $ | $ | ||||||||
Total out-of-scope noninterest income (b) | ||||||||||||
Total Retail Banking noninterest income | $ | $ | $ | $ |
(a) | Net credit card fees consists of interchange fees of $ |
(b) | Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606. |
Three months ended June 30 | Six months ended June 30 | |||||||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||||||
Product | ||||||||||||
Treasury management fees | $ | $ | $ | $ | ||||||||
Capital markets fees | ||||||||||||
Commercial mortgage banking activities | ||||||||||||
Other | ||||||||||||
Total in-scope noninterest income by product | $ | $ | $ | $ | ||||||||
Reconciliation to total Corporate & Institutional Banking noninterest income | ||||||||||||
Total in-scope noninterest income | $ | $ | $ | $ | ||||||||
Total out-of-scope noninterest income (a) | ||||||||||||
Total Corporate & Institutional Banking noninterest income | $ | $ | $ | $ |
(a) | Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606. |
Three months ended June 30 | Six months ended June 30 | |||||||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||||||
Customer Type | ||||||||||||
Personal | $ | $ | $ | $ | ||||||||
Institutional | ||||||||||||
Total in-scope noninterest income by customer type | $ | $ | $ | $ | ||||||||
Reconciliation to Asset Management Group noninterest income | ||||||||||||
Total in-scope noninterest income | $ | $ | $ | $ | ||||||||
Total out-of-scope noninterest income (a) | ||||||||||||
Total Asset Management Group noninterest income | $ | $ | $ | $ |
(a) | Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606. |
In millions | June 30, 2019 | |||
Remainder of 2019 | $ | |||
2020 | ||||
2021 | ||||
2022 | ||||
2023 | ||||
After 2023 | ||||
Total operating lease payments | $ | |||
Less: Interest | ||||
Present value of operating lease liabilities | $ |
June 30, 2019 | |||
Weighted-average remaining lease term (years) | |||
Weighted-average discount rate | % |
• | $ |
• | $ |
Six months ended June 30 | ||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||
Taxable-equivalent basis Dollars in millions | Average Balances | Interest Income/ Expense | Average Yields/ Rates | Average Balances | Interest Income/Expense | Average Yields/ Rates | ||||||||||||||||
Assets | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Investment securities | ||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||
Residential mortgage-backed | ||||||||||||||||||||||
Agency | $ | 29,589 | $ | 434 | 2.93 | % | $ | 25,986 | $ | 343 | 2.64 | % | ||||||||||
Non-agency | 1,845 | 71 | 7.64 | % | 2,334 | 73 | 6.25 | % | ||||||||||||||
Commercial mortgage-backed | 5,457 | 84 | 3.09 | % | 4,491 | 62 | 2.76 | % | ||||||||||||||
Asset-backed | 5,266 | 88 | 3.35 | % | 5,160 | 77 | 2.99 | % | ||||||||||||||
U.S. Treasury and government agencies | 18,529 | 232 | 2.49 | % | 15,017 | 164 | 2.17 | % | ||||||||||||||
Other | 3,453 | 57 | 3.34 | % | 4,172 | 75 | 3.61 | % | ||||||||||||||
Total securities available for sale | 64,139 | 966 | 3.01 | % | 57,160 | 794 | 2.77 | % | ||||||||||||||
Securities held to maturity | ||||||||||||||||||||||
Residential mortgage-backed | 15,487 | 230 | 2.97 | % | 15,216 | 218 | 2.86 | % | ||||||||||||||
Commercial mortgage-backed | 585 | 10 | 3.55 | % | 854 | 16 | 3.74 | % | ||||||||||||||
Asset-backed | 175 | 3 | 3.88 | % | 196 | 3 | 3.19 | % | ||||||||||||||
U.S. Treasury and government agencies | 763 | 11 | 2.83 | % | 745 | 10 | 2.82 | % | ||||||||||||||
Other | 1,834 | 42 | 4.42 | % | 1,904 | 42 | 4.42 | % | ||||||||||||||
Total securities held to maturity | 18,844 | 296 | 3.13 | % | 18,915 | 289 | 3.06 | % | ||||||||||||||
Total investment securities | 82,983 | 1,262 | 3.04 | % | 76,075 | 1,083 | 2.85 | % | ||||||||||||||
Loans | ||||||||||||||||||||||
Commercial | 121,907 | 2,619 | 4.27 | % | 112,411 | 2,180 | 3.86 | % | ||||||||||||||
Commercial real estate | 28,285 | 625 | 4.40 | % | 28,894 | 571 | 3.93 | % | ||||||||||||||
Equipment lease financing | 7,274 | 145 | 4.00 | % | 7,670 | 131 | 3.43 | % | ||||||||||||||
Consumer | 55,099 | 1,517 | 5.55 | % | 55,487 | 1,353 | 4.92 | % | ||||||||||||||
Residential real estate | 19,147 | 409 | 4.28 | % | 17,437 | 382 | 4.38 | % | ||||||||||||||
Total loans | 231,712 | 5,315 | 4.58 | % | 221,899 | 4,617 | 4.16 | % | ||||||||||||||
Interest-earning deposits with banks | 14,238 | 171 | 2.41 | % | 23,329 | 191 | 1.64 | % | ||||||||||||||
Other interest-earning assets | 12,113 | 231 | 3.82 | % | 7,402 | 167 | 4.52 | % | ||||||||||||||
Total interest-earning assets/interest income | 341,046 | 6,979 | 4.09 | % | 328,705 | 6,058 | 3.68 | % | ||||||||||||||
Noninterest-earning assets | 50,415 | 47,244 | ||||||||||||||||||||
Total assets | $ | 391,461 | $ | 375,949 | ||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||
Money market | $ | 54,758 | 315 | 1.16 | % | $ | 57,355 | $ | 167 | .59 | % | |||||||||||
Demand | 63,958 | 170 | .53 | % | 60,017 | 68 | .23 | % | ||||||||||||||
Savings | 60,394 | 347 | 1.16 | % | 49,791 | 162 | .65 | % | ||||||||||||||
Time deposits | 19,430 | 155 | 1.61 | % | 16,737 | 77 | .93 | % | ||||||||||||||
Total interest-bearing deposits | 198,540 | 987 | 1.00 | % | 183,900 | 474 | .52 | % | ||||||||||||||
Borrowed funds | ||||||||||||||||||||||
Federal Home Loan Bank borrowings | 22,089 | 303 | 2.73 | % | 20,839 | 209 | 2.00 | % | ||||||||||||||
Bank notes and senior debt | 26,145 | 451 | 3.43 | % | 28,887 | 390 | 2.69 | % | ||||||||||||||
Subordinated debt | 5,704 | 124 | 4.34 | % | 5,016 | 105 | 4.20 | % | ||||||||||||||
Other | 7,128 | 87 | 2.44 | % | 4,558 | 48 | 2.01 | % | ||||||||||||||
Total borrowed funds | 61,066 | 965 | 3.14 | % | 59,300 | 752 | 2.52 | % | ||||||||||||||
Total interest-bearing liabilities/interest expense | 259,606 | 1,952 | 1.50 | % | 243,200 | 1,226 | 1.01 | % | ||||||||||||||
Noninterest-bearing liabilities and equity: | ||||||||||||||||||||||
Noninterest-bearing deposits | 71,526 | 76,925 | ||||||||||||||||||||
Accrued expenses and other liabilities | 12,187 | 9,031 | ||||||||||||||||||||
Equity | 48,142 | 46,793 | ||||||||||||||||||||
Total liabilities and equity | $ | 391,461 | $ | 375,949 | ||||||||||||||||||
Interest rate spread | 2.59 | % | 2.67 | % | ||||||||||||||||||
Impact of noninterest-bearing sources | .35 | .27 | ||||||||||||||||||||
Net interest income/margin | $ | 5,027 | 2.94 | % | $ | 4,832 | 2.94 | % |
Three months ended June 30 | ||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||
Taxable-equivalent basis Dollars in millions | Average Balances | Interest Income/Expense | Average Yields/Rates | Average Balances | Interest Income/ Expense | Average Yields/ Rates | ||||||||||||||||
Assets | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Investment securities | ||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||
Residential mortgage-backed | ||||||||||||||||||||||
Agency | $ | 30,169 | $ | 221 | 2.93 | % | $ | 26,527 | $ | 178 | 2.68 | % | ||||||||||
Non-agency | 1,801 | 36 | 7.99 | % | 2,271 | 37 | 6.52 | % | ||||||||||||||
Commercial mortgage-backed | 5,545 | 42 | 3.06 | % | 4,449 | 31 | 2.76 | % | ||||||||||||||
Asset-backed | 5,395 | 45 | 3.34 | % | 5,161 | 40 | 3.11 | % | ||||||||||||||
U.S. Treasury and government agencies | 18,815 | 118 | 2.48 | % | 15,719 | 90 | 2.25 | % | ||||||||||||||
Other | 3,237 | 27 | 3.33 | % | 4,112 | 41 | 4.06 | % | ||||||||||||||
Total securities available for sale | 64,962 | 489 | 3.01 | % | 58,239 | 417 | 2.85 | % | ||||||||||||||
Securities held to maturity | ||||||||||||||||||||||
Residential mortgage-backed | 15,350 | 112 | 2.93 | % | 15,608 | 113 | 2.89 | % | ||||||||||||||
Commercial mortgage-backed | 570 | 5 | 3.57 | % | 807 | 8 | 3.71 | % | ||||||||||||||
Asset-backed | 172 | 1 | 3.92 | % | 194 | 2 | 3.48 | % | ||||||||||||||
U.S. Treasury and government agencies | 765 | 6 | 2.84 | % | 747 | 5 | 2.83 | % | ||||||||||||||
Other | 1,822 | 22 | 4.44 | % | 1,884 | 19 | 4.39 | % | ||||||||||||||
Total securities held to maturity | 18,679 | 146 | 3.10 | % | 19,240 | 147 | 3.07 | % | ||||||||||||||
Total investment securities | 83,641 | 635 | 3.03 | % | 77,479 | 564 | 2.91 | % | ||||||||||||||
Loans | ||||||||||||||||||||||
Commercial | 124,441 | 1,328 | 4.22 | % | 113,349 | 1,136 | 3.97 | % | ||||||||||||||
Commercial real estate | 28,423 | 318 | 4.43 | % | 28,888 | 295 | 4.04 | % | ||||||||||||||
Equipment lease financing | 7,283 | 74 | 4.06 | % | 7,494 | 58 | 3.16 | % | ||||||||||||||
Consumer | 55,202 | 766 | 5.56 | % | 55,387 | 686 | 4.96 | % | ||||||||||||||
Residential real estate | 19,496 | 207 | 4.27 | % | 17,566 | 192 | 4.36 | % | ||||||||||||||
Total loans | 234,845 | 2,693 | 4.56 | % | 222,684 | 2,367 | 4.23 | % | ||||||||||||||
Interest-earning deposits with banks | 13,469 | 80 | 2.38 | % | 21,017 | 93 | 1.78 | % | ||||||||||||||
Other interest-earning assets | 13,145 | 116 | 3.55 | % | 6,905 | 87 | 4.98 | % | ||||||||||||||
Total interest-earning assets/interest income | 345,100 | 3,524 | 4.06 | % | 328,085 | 3,111 | 3.78 | % | ||||||||||||||
Noninterest-earning assets | 51,862 | 47,542 | ||||||||||||||||||||
Total assets | $ | 396,962 | $ | 375,627 | ||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||
Money market | $ | 54,814 | 160 | 1.17 | % | $ | 56,199 | $ | 89 | .64 | % | |||||||||||
Demand | 64,431 | 89 | .55 | % | 60,409 | 37 | .25 | % | ||||||||||||||
Savings | 61,949 | 183 | 1.19 | % | 51,115 | 94 | .74 | % | ||||||||||||||
Time deposits | 20,040 | 83 | 1.67 | % | 16,634 | 41 | .98 | % | ||||||||||||||
Total interest-bearing deposits | 201,234 | 515 | 1.03 | % | 184,357 | 261 | .57 | % | ||||||||||||||
Borrowed funds | ||||||||||||||||||||||
Federal Home Loan Bank borrowings | 22,681 | 154 | 2.69 | % | 20,956 | 118 | 2.23 | % | ||||||||||||||
Bank notes and senior debt | 26,865 | 228 | 3.36 | % | 28,787 | 214 | 2.95 | % | ||||||||||||||
Subordinated debt | 5,526 | 58 | 4.17 | % | 4,855 | 54 | 4.50 | % | ||||||||||||||
Other | 7,263 | 44 | 2.44 | % | 4,368 | 22 | 1.82 | % | ||||||||||||||
Total borrowed funds | 62,335 | 484 | 3.08 | % | 58,966 | 408 | 2.74 | % | ||||||||||||||
Total interest-bearing liabilities/interest expense | 263,569 | 999 | 1.51 | % | 243,323 | 669 | 1.10 | % | ||||||||||||||
Noninterest-bearing liabilities and equity: | ||||||||||||||||||||||
Noninterest-bearing deposits | 71,648 | 76,632 | ||||||||||||||||||||
Accrued expenses and other liabilities | 13,122 | 8,944 | ||||||||||||||||||||
Equity | 48,623 | 46,728 | ||||||||||||||||||||
Total liabilities and equity | $ | 396,962 | $ | 375,627 | ||||||||||||||||||
Interest rate spread | 2.55 | % | 2.68 | % | ||||||||||||||||||
Impact of noninterest-bearing sources | .36 | .28 | ||||||||||||||||||||
Net interest income/margin | $ | 2,525 | 2.91 | % | $ | 2,442 | 2.96 | % |
(a) | Nonaccrual loans are included in loans, net of unearned income. The impact of financial derivatives used in interest rate risk management is included in the interest income/expense and average yields/rates of the related assets and liabilities. Basis adjustments related to hedged items are included in noninterest-earning assets and noninterest-bearing liabilities. Average balances of securities are based on amortized historical cost (excluding adjustments to fair value, which are included in other assets). Average balances for certain loans and borrowed funds accounted for at fair value are included in noninterest-earning assets and noninterest-bearing liabilities, with changes in fair value recorded in Noninterest income. |
(b) | Loan fees for the three months ended June 30, 2019 and June 30, 2018 were $43 million and $33 million, respectively. Loan fees for the six months ended June 30, 2019 and June 30, 2018 were $71 million and $65 million, respectfully. |
(c) | Interest income calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income and yields for all interest-earning assets, as well as net interest margins, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP. See Reconciliation of Taxable-Equivalent Net Interest Income in this Statistical Information section for more information. |
Six months ended | Three months ended | ||||||||||||
In millions | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||
Net interest income (GAAP) | $ | 4,973 | $ | 4,774 | $ | 2,498 | $ | 2,413 | |||||
Taxable-equivalent adjustments | 54 | 58 | 27 | 29 | |||||||||
Net interest income (Non-GAAP) | $ | 5,027 | $ | 4,832 | $ | 2,525 | $ | 2,442 |
(a) | The interest income earned on certain interest-earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. |
2019 period In thousands, except per share data | Total shares purchased (a) | Average price paid per share | Total shares purchased as part of publicly announced programs (b) | Maximum number of shares that may yet be purchased under the programs (b) | |||||
April 1 - 30 | 1,887 | $ | 132.67 | 1,883 | 12,915 | ||||
May 1 - 31 | 2,729 | $ | 131.98 | 2,729 | 10,186 | ||||
June 1 - 30 | 1,431 | $ | 134.01 | 1,431 | 8,755 | ||||
Total | 6,047 | $ | 132.68 |
(a) | Includes PNC common stock purchased in connection with our various employee benefit plans generally related to shares used to cover employee payroll tax withholding requirements. Note 11 Employee Benefit Plans and Note 12 Stock Based Compensation Plans in the Notes To Consolidated Financial Statements of our 2018 Annual Report on Form 10-K include additional information regarding our employee benefit and equity compensation plans that use PNC common stock. |
(b) | On March 11, 2015, we announced that our Board of Directors approved the establishment of a stock repurchase program authorization in the amount of 100 million shares of PNC common stock, effective April 1, 2015. Repurchases are made in open market or privately negotiated transactions and the timing and exact amount of common stock repurchases will depend on a number of factors including, among others, market and general economic conditions, regulatory capital considerations, alternative uses of capital, the potential impact on our credit ratings, and contractual and regulatory limitations, including the results of the supervisory assessment of capital adequacy and capital planning processes undertaken by the Federal Reserve as part of the CCAR process. In June 2018, we announced share repurchase programs of up to $2.0 billion for the four quarter period beginning with the third quarter of 2018, including repurchases of up to $300 million related to employee benefit plans, in accordance with PNC's 2018 capital plan. In the second quarter of 2019, we repurchased 6.0 million shares of common stock on the open market, with an average price of $132.68 per share and an aggregate repurchase price of $.8 billion. |
EXHIBIT INDEX | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101 | Interactive Data File (XBRL) |
/s/ Robert Q. Reilly |
Robert Q. Reilly |
Executive Vice President and Chief Financial Officer |
(Principal Financial Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of The PNC Financial Services Group, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ William S. Demchak | |
William S. Demchak | |
Chairman, President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of The PNC Financial Services Group, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Robert Q. Reilly | |
Robert Q. Reilly | |
Executive Vice President and Chief Financial Officer |
/s/ William S. Demchak | |
William S. Demchak | |
Chairman, President and Chief Executive Officer |
/s/ Robert Q. Reilly | |
Robert Q. Reilly | |
Executive Vice President and Chief Financial Officer |
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$ in Thousands
Assets
Cash and due from banks
$ 5,416,000
$ 5,608,000
Interest-earning deposits with banks
18,362,000
10,893,000
Loans held for sale
[1]
1,144,000
994,000
Investment securities – available for sale
69,355,000
63,389,000
Investment securities – held to maturity
18,948,000
19,312,000
Loans
[1]
237,215,000
226,245,000
Allowance for loan and lease losses
(2,721,000)
(2,629,000)
Net loans
234,494,000
223,616,000
Equity investments
[2]
13,001,000
12,894,000
Mortgage servicing rights
1,627,000
1,983,000
Goodwill
9,221,000
9,218,000
Other
[1]
34,193,000
34,408,000
Total assets
405,761,000
382,315,000
Deposits
Noninterest-bearing
69,867,000
73,960,000
Interest-bearing
203,393,000
193,879,000
Total deposits
273,260,000
267,839,000
Borrowed funds
Federal Home Loan Bank borrowings
29,376,000
21,501,000
Bank notes and senior debt
27,694,000
25,018,000
Subordinated debt
5,406,000
5,895,000
Other
[3]
6,549,000
5,005,000
Total borrowed funds
69,025,000
57,419,000
Allowance for unfunded loan commitments and letters of credit
291,000
285,000
Accrued expenses and other liabilities
13,804,000
9,002,000
Total liabilities
356,380,000
334,545,000
Equity
Common stock ($5 par value, Authorized 800 shares, issued 542 shares)
2,711,000
2,711,000
Capital surplus
16,248,000
16,277,000
Retained earnings
40,616,000
38,919,000
Accumulated other comprehensive income (loss)
631,000
(725,000)
Common stock held in treasury at cost: 95 and 85 shares
(10,866,000)
(9,454,000)
Total shareholders’ equity
49,340,000
47,728,000
Noncontrolling interests
41,000
42,000
Total equity
49,381,000
47,770,000
Total liabilities and equity
$ 405,761,000
$ 382,315,000
[1]
[2]
[3]
$ in Millions
Common stock, par value (in dollars per share)
$ 5
$ 5
Common stock, authorized (shares)
800,000,000
800,000,000
Common stock, issued (shares)
542,000,000
542,000,000
Common stock held in treasury at cost (shares)
95,000,000
85,000,000
Preferred stock (less than)
[1]
$ 0.5
$ 0.5
Portion at Fair Value, Fair Value Disclosure
Loans held for sale, fair value
1,100.0
900.0
Loans, fair value
800.0
800.0
Other assets, fair value
100.0
200.0
Other borrowed funds, fair value
$ 100.0
$ 100.0
[1]
6 Months Ended
Accounting Policies [Abstract]
Accounting Policies
6 Months Ended
Loan Sale and Servicing Activities and Variable Interest Entities [Abstract]
Loan Sale and Servicing Activities and Variable Interest Entities
LOAN SALE AND SERVICING ACTIVITIES AND VARIABLE INTEREST ENTITIES
Mortgages
Mortgages (a)
Owned by PNC
Owned by PNC
6 Months Ended
Asset Quality [Abstract]
Asset Quality
ASSET QUALITY
2019
2018
Dollars in millions
of Loans
Dollars in millions
Dollars in millions
of Loans
Dollars in millions
6 Months Ended
Allowance For Loan And Lease Losses [Abstract]
Allowance for Loan and Lease Losses
ALLOWANCE FOR LOAN AND LEASE LOSSES
6 Months Ended
Investment Securities Disclosure [Abstract]
Investment Securities
INVESTMENT SECURITIES
In millions
Dollars in millions
2019
2018
6 Months Ended
Fair Value [Abstract]
Fair Value
FAIR VALUE
gains or losses for the
period (a)
gains / losses
on assets and
liabilities held on
Consolidated
Balance Sheet at
June 30, 2019
(a) (b)
In millions
Earnings
in Other
comprehensive
income
into
Level 3
out of
Level 3
Value June 30, 2019
held for sale
loans held for sale
backed non-agency
available for sale
servicing rights
servicing rights
gains or losses for the
period (a)
(a) (b)
In millions
held for sale
loans held for sale
backed non-agency
available for sale
servicing rights
servicing rights
gains or losses for the
period (a)
Value
Dec. 31,
2018
Earnings
in Other
comprehensive
income
into
Level 3
out of
Level 3
held for sale
loans held for sale
backed non-agency
available for sale
servicing rights
servicing rights
gains or losses for the
period (a)
Value
Dec. 31,
2017
Earnings
in Other
comprehensive
income
into
Level 3
out of
Level 3
held for sale
loans held for sale
backed non-agency
available for sale
servicing rights
servicing rights
non-agency securities
sales of certain Visa Class B
common shares
liabilities (c)
non-agency securities
sales of certain Visa Class B
common shares
resolution date
liabilities (c)
Six months ended
2019
2018
2019
2018
2019
2018
6 Months Ended
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Mortgage Servicing Rights
GOODWILL AND MORTGAGE SERVICING RIGHTS
2019
2018
2019
2018
6 Months Ended
Employee Benefit Plans [Abstract]
Employee Benefit Plans
EMPLOYEE BENEFIT PLANS
In millions
In millions
6 Months Ended
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Derivatives
FINANCIAL DERIVATIVES
June 30
June 30
6 Months Ended
Earnings Per Share [Abstract]
Earnings per Share
EARNINGS PER SHARE
June 30
June 30
6 Months Ended
Other Comprehensive Income [Abstract]
Total Equity and Other Comprehensive Income Disclosure
TOTAL EQUITY AND OTHER COMPREHENSIVE INCOME
June 30
June 30
6 Months Ended
Legal Proceedings [Abstract]
Legal Proceedings
LEGAL PROCEEDINGS
6 Months Ended
Commitments and Guarantees [Abstract]
Commitments
COMMITMENTS
2019
2018
6 Months Ended
Segment Reporting [Abstract]
Segment Reporting
SEGMENT REPORTING
In millions
Institutional
Banking
Management
Group
In millions
Banking
Institutional
Banking
Management
Group
6 Months Ended
Revenue from Contract with Customer [Abstract]
Fee-Based Revenue from Contracts with Customers
FEE-BASED REVENUE FROM CONTRACTS WITH CUSTOMERS
June 30
June 30
June 30
June 30
June 30
June 30
6 Months Ended
Leases [Abstract]
Leases
LEASES
Leases
LEASES
6 Months Ended
Subsequent Events [Abstract]
Subsequent Events
SUBSEQUENT EVENTS
6 Months Ended
Accounting Policies [Abstract]
Business and Basis of Financial Statement Presentation
Use of Estimates
Leases
Leases
Recently Adopted Accounting Standards
6 Months Ended
Loan Sale and Servicing Activities and Variable Interest Entities [Abstract]
Cash Flows Associated with Loan Sale and Servicing Activities
Mortgages
Mortgages (a)
Principal Balance, Delinquent Loans (Loans 90 Days or More Past Due), and Net Charge-Offs Related to Serviced Loans
Non-Consolidated VIEs
Owned by PNC
Owned by PNC
6 Months Ended
Asset Quality [Abstract]
Analysis of Loan Portfolio
Nonperforming Assets
2019
2018
Commercial Lending Asset Quality Indicators
Home Equity and Residential Real Estate Asset Quality Indicators
Asset Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loans
Financial Impact and TDRs by Concession Type
Dollars in millions
of Loans
Dollars in millions
Dollars in millions
of Loans
Dollars in millions
Impaired Loans
6 Months Ended
Allowance For Loan And Lease Losses [Abstract]
Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data
6 Months Ended
Investment Securities Disclosure [Abstract]
Investment Securities Summary
Gross Unrealized Loss and Fair Value of Securities Available for Sale
Gains (losses) on Sales Of Securities Available for Sale
In millions
Contractual Maturity of Securities
Dollars in millions
Fair Value of Securities Pledged and Accepted as Collateral
2019
2018
6 Months Ended
Fair Value [Abstract]
Fair Value Measurements - Recurring Basis Summary
Reconciliation of Level 3 Assets and Liabilities
gains or losses for the
period (a)
gains / losses
on assets and
liabilities held on
Consolidated
Balance Sheet at
June 30, 2019
(a) (b)
In millions
Earnings
in Other
comprehensive
income
into
Level 3
out of
Level 3
Value June 30, 2019
held for sale
loans held for sale
backed non-agency
available for sale
servicing rights
servicing rights
gains or losses for the
period (a)
(a) (b)
In millions
held for sale
loans held for sale
backed non-agency
available for sale
servicing rights
servicing rights
gains or losses for the
period (a)
Value
Dec. 31,
2018
Earnings
in Other
comprehensive
income
into
Level 3
out of
Level 3
held for sale
loans held for sale
backed non-agency
available for sale
servicing rights
servicing rights
gains or losses for the
period (a)
Value
Dec. 31,
2017
Earnings
in Other
comprehensive
income
into
Level 3
out of
Level 3
held for sale
loans held for sale
backed non-agency
available for sale
servicing rights
servicing rights
Fair Value Measurements - Recurring Quantitative Information
non-agency securities
sales of certain Visa Class B
common shares
liabilities (c)
non-agency securities
sales of certain Visa Class B
common shares
resolution date
liabilities (c)
Fair Value Measurements - Nonrecurring
Six months ended
2019
2018
2019
2018
2019
2018
Fair Value Option - Fair Value and Principal Balances
Fair Value Option - Changes in Fair Value
Additional Fair Value Information Related to Other Financial Instruments
6 Months Ended
Goodwill and Intangible Assets Disclosure [Abstract]
Mortgage Servicing Rights
Commercial Mortgage Loan Servicing Assets - Key Valuation Assumptions
2019
2018
Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions
2019
2018
6 Months Ended
Employee Benefit Plans [Abstract]
Components of Net Periodic Benefit Cost
In millions
In millions
6 Months Ended
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Total Gross Derivatives
Schedule of Fair Value and Cash Flow Hedges
Schedule of Fair Value Hedges
Gains (Losses) on Derivatives Not Designated as Hedging Instruments under GAAP
June 30
June 30
Derivative Assets And Liabilities Offsetting
6 Months Ended
Earnings Per Share [Abstract]
Basic and Diluted Earnings per Common Share
June 30
June 30
6 Months Ended
Other Comprehensive Income [Abstract]
Rollforward of Total Equity
Other Comprehensive Income (Loss)
June 30
June 30
Accumulated Other Comprehensive Income (Loss) Components
Dividends Declared
6 Months Ended
Commitments and Guarantees [Abstract]
Commitments to Extend Credit and Other Commitments
Table 70: Commitments to Extend Credit and Other Commitments
2019
2018
6 Months Ended
Segment Reporting [Abstract]
Results of Businesses
In millions
Institutional
Banking
Management
Group
In millions
Banking
Institutional
Banking
Management
Group
6 Months Ended
Revenue from Contract with Customer [Abstract]
Retail Banking Noninterest Income Disaggregation
June 30
June 30
Corporate & Institutional Banking Noninterest Income Disaggregation
June 30
June 30
Asset Management Group Noninterest Income Disaggregation
June 30
June 30
6 Months Ended
Leases [Abstract]
Lessee, Operating Lease, Liability, Maturity
Lessee, Lease Terms and Discount Rate, Operating Leases
$ in Millions
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liability
$ 2,157
Operating lease asset
$ 2,000
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liability
$ 2,100
Operating lease asset
2,000
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of ASU adoptions, pretax
$ 83
$ in Millions3 Months Ended
6 Months Ended
Residential Mortgage [Member]
Total principal balance
$ 51,821
$ 51,821
$ 54,028
Delinquent loans
572
572
622
Net charge-offs
13
$ 13
24
$ 25
Commercial Mortgages [Member]
Total principal balance
49,474
49,474
47,969
Delinquent loans
95
95
$ 234
Net charge-offs
$ 178
$ 22
$ 296
$ 52
$ in Millions
PNC Risk of Loss
$ 21,181
$ 17,215
Carrying Value of Assets Owned by PNC
21,201
17,177
Carrying Value of Liabilities Owned by PNC
845
806
Mortgage-Backed Securitizations [Member]
PNC Risk of Loss
18,323
14,266
Carrying Value of Assets Owned by PNC
18,323
14,266
Tax Credit Investments And Other [Member]
PNC Risk of Loss
2,858
2,949
Carrying Value of Assets Owned by PNC
2,878
2,911
Carrying Value of Liabilities Owned by PNC
$ 845
$ 806
$ in Millions3 Months Ended
6 Months Ended
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortization recognized on low income housing tax credit investments
$ 45
$ 100
Tax credits recognized on low income housing tax credit investments
54
111
Other tax benefits recognized on low income housing tax credit investments
$ 11
$ 24
$ in Millions3 Months Ended
6 Months Ended
Number of portfolio segments | segment
2
2
TDRs [Member]
Recorded Investment - Subsequently defaulted TDRs
$ 28
$ 24
$ 39
$ 38
Nonperforming [Member]
Troubled debt restructurings (TDRs)
900
900
$ 900
Performing, including Consumer Credit Card TDRs [Member]
Troubled debt restructurings (TDRs)
900
900
1,000
Federal Reserve Bank [Member]
Loans pledged as collateral for the ability to borrow
15,600
15,600
17,300
Federal Home Loan Bank [Member]
Loans pledged as collateral for the ability to borrow
$ 65,000
$ 65,000
$ 63,200
$ in Millions
Total nonperforming loans
$ 1,724
$ 1,694
OREO and Foreclosed Assets
126
114
Total nonperforming assets
$ 1,850
$ 1,808
Nonperforming loans to total loans
0.73%
0.75%
Nonperforming assets to total loans, OREO and foreclosed assets
0.78%
0.80%
Nonperforming assets to total assets
0.46%
0.47%
Total commercial lending [Member]
Total nonperforming loans
$ 540
$ 432
Total consumer lending [Member]
Total nonperforming loans
$ 1,184
$ 1,262
$ in Millions
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 237,215
[1]
$ 226,245
[1]
$ 222,855
Total commercial lending [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
161,603
152,282
$ 149,636
Total commercial lending [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
125,624
116,834
Total commercial lending [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
28,570
28,140
Total commercial lending [Member] | Equipment Lease Financing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
7,409
7,308
Pass [Member] | Total commercial lending [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
155,107
146,138
Pass [Member] | Total commercial lending [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
120,157
111,276
Pass [Member] | Total commercial lending [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
27,699
27,682
Pass [Member] | Total commercial lending [Member] | Equipment Lease Financing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
7,251
7,180
Criticized [Member] | Total commercial lending [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
6,496
6,144
Criticized [Member] | Total commercial lending [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
5,467
5,558
Criticized [Member] | Total commercial lending [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
871
458
Criticized [Member] | Total commercial lending [Member] | Equipment Lease Financing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 158
$ 128
[1]
$ in Millions
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 237,215
[1]
$ 226,245
[1]
$ 222,855
Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
25,132
26,123
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
20,092
18,657
FICO Score- Greater than 660 [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
22,186
22,996
FICO Score- Greater than 660 [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
17,450
15,956
FICO Score- Less than or equal to 660 [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
2,067
2,210
FICO Score- Less than or equal to 660 [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
568
585
No FICO Score Available [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
265
238
No FICO Score Available [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
224
93
Purchased Impaired Loans [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
614
679
Purchased Impaired Loans [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
1,257
1,338
Loans Insured or Guaranteed by US Government Authorities [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
593
685
LTV Greater Than Or Equal To 125 Percent [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
432
461
LTV Greater Than Or Equal To 125 Percent [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
129
116
LTV Greater Than Or Equal To 100 Percent To Less Than 125 Percent [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
991
1,020
LTV Greater Than Or Equal To 100 Percent To Less Than 125 Percent [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
248
255
LTV Greater Than Or Equal To 90 Percent To Less Than 100 Percent [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
1,200
1,174
LTV Greater Than Or Equal To 90 Percent To Less Than 100 Percent [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
358
335
LTV Less Than 90 Percent [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
21,732
22,644
LTV Less Than 90 Percent [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
17,359
15,922
No LTV Ratio Available [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
163
145
No LTV Ratio Available [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 148
$ 6
[1]
$ in Millions
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 237,215
[1]
$ 226,245
[1]
$ 222,855
Automobile Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
15,612
14,419
Automobile Loan [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 15,612
$ 14,419
Weighted average updated FICO score
726
726
Automobile Loan [Member] | FICO Score - Greater than 719 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 8,358
$ 7,740
Automobile Loan [Member] | FICO Score - 650 to 719 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
4,679
4,365
Automobile Loan [Member] | FICO Score - 620 to 649 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
1,076
1,007
Automobile Loan [Member] | FICO Score - Less than 620 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
1,163
1,027
Automobile Loan [Member] | No FICO Score Available Or Required [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
336
280
Credit Card [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
6,511
6,357
Credit Card [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 6,511
$ 6,357
Weighted average updated FICO score
733
733
Credit Card [Member] | FICO Score - Greater than 719 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 3,918
$ 3,809
Credit Card [Member] | FICO Score - 650 to 719 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
1,846
1,759
Credit Card [Member] | FICO Score - 620 to 649 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
297
280
Credit Card [Member] | FICO Score - Less than 620 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
332
332
Credit Card [Member] | No FICO Score Available Or Required [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
118
177
Education [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
3,555
3,822
Education [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 1,485
$ 1,541
Weighted average updated FICO score
777
774
Education [Member] | FICO Score - Greater than 719 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 1,223
$ 1,240
Education [Member] | FICO Score - 650 to 719 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
176
194
Education [Member] | FICO Score - 620 to 649 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
23
26
Education [Member] | FICO Score - Less than 620 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
23
24
Education [Member] | No FICO Score Available Or Required [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
40
57
Education [Member] | Other Internal Credit Metrics [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
2,070
2,281
Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
4,710
4,585
Other Consumer [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 2,338
$ 2,157
Weighted average updated FICO score
732
732
Other Consumer [Member] | FICO Score - Greater than 719 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 1,393
$ 1,280
Other Consumer [Member] | FICO Score - 650 to 719 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
705
641
Other Consumer [Member] | FICO Score - 620 to 649 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
111
106
Other Consumer [Member] | FICO Score - Less than 620 [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
102
105
Other Consumer [Member] | No FICO Score Available Or Required [Member] | Using FICO Credit Metric [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
27
25
Other Consumer [Member] | Other Internal Credit Metrics [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans
$ 2,372
$ 2,428
[1]
$ in Millions3 Months Ended
6 Months Ended
Financing Receivable, Modifications [Line Items]
Number of Loans | my_loan
3,554
2,904
7,390
5,915
Pre-TDR Recorded Investment
$ 75
$ 55
$ 222
$ 114
Post-TDR Recorded Investment
68
49
217
103
Principal Forgiveness [Member]
Financing Receivable, Modifications [Line Items]
Post-TDR Recorded Investment
1
1
Rate Reduction [Member]
Financing Receivable, Modifications [Line Items]
Post-TDR Recorded Investment
25
18
49
49
Other [Member]
Financing Receivable, Modifications [Line Items]
Post-TDR Recorded Investment
$ 43
$ 30
$ 168
$ 53
Total commercial lending [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | my_loan
15
15
37
47
Pre-TDR Recorded Investment
$ 31
$ 20
$ 136
$ 30
Post-TDR Recorded Investment
28
18
137
26
Total commercial lending [Member] | Principal Forgiveness [Member]
Financing Receivable, Modifications [Line Items]
Post-TDR Recorded Investment
Total commercial lending [Member] | Rate Reduction [Member]
Financing Receivable, Modifications [Line Items]
Post-TDR Recorded Investment
1
1
1
2
Total commercial lending [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Post-TDR Recorded Investment
$ 27
$ 17
$ 136
$ 24
Total consumer lending [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | my_loan
3,539
2,889
7,353
5,868
Pre-TDR Recorded Investment
$ 44
$ 35
$ 86
$ 84
Post-TDR Recorded Investment
40
31
80
77
Total consumer lending [Member] | Principal Forgiveness [Member]
Financing Receivable, Modifications [Line Items]
Post-TDR Recorded Investment
1
1
Total consumer lending [Member] | Rate Reduction [Member]
Financing Receivable, Modifications [Line Items]
Post-TDR Recorded Investment
24
17
48
47
Total consumer lending [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Post-TDR Recorded Investment
$ 16
$ 13
$ 32
$ 29
$ in Millions6 Months Ended
12 Months Ended
Unpaid Principal Balance - Impaired Financing Receivable [Abstract]
Unpaid principal balance - Impaired loans with an associated allowance
$ 1,354
$ 1,303
Unpaid principal balance - Impaired loans without an associated allowance
1,365
1,455
Unpaid principal balance - Total impaired loans
2,719
2,758
Recorded Investment - Impaired Financing Receivable [Abstract]
Recorded investment - Impaired loans with an associated allowance
1,173
1,132
Recorded investment - Impaired loans without an associated allowance
891
951
Recorded investment - Total impaired loans
2,064
2,083
Associated Allowance - Total impaired loans
209
209
Average Recorded Receivable - Impaired Financing Receivable [Abstract]
Average recorded investment - Impaired loans with an associated allowance
1,165
1,253
Average recorded investment - Impaired loans without an associated allowance
903
939
Average recorded investment - Total impaired loans
2,068
2,192
Total commercial lending [Member]
Unpaid Principal Balance - Impaired Financing Receivable [Abstract]
Unpaid principal balance - Impaired loans with an associated allowance
530
440
Unpaid principal balance - Impaired loans without an associated allowance
358
413
Recorded Investment - Impaired Financing Receivable [Abstract]
Recorded investment - Impaired loans with an associated allowance
396
315
Recorded investment - Impaired loans without an associated allowance
287
326
Associated Allowance - Total impaired loans
86
73
Average Recorded Receivable - Impaired Financing Receivable [Abstract]
Average recorded investment - Impaired loans with an associated allowance
365
349
Average recorded investment - Impaired loans without an associated allowance
292
294
Total consumer lending [Member]
Unpaid Principal Balance - Impaired Financing Receivable [Abstract]
Unpaid principal balance - Impaired loans with an associated allowance
824
863
Unpaid principal balance - Impaired loans without an associated allowance
1,007
1,042
Recorded Investment - Impaired Financing Receivable [Abstract]
Recorded investment - Impaired loans with an associated allowance
777
817
Recorded investment - Impaired loans without an associated allowance
604
625
Associated Allowance - Total impaired loans
123
136
Average Recorded Receivable - Impaired Financing Receivable [Abstract]
Average recorded investment - Impaired loans with an associated allowance
800
904
Average recorded investment - Impaired loans without an associated allowance
$ 611
$ 645
3 Months Ended
6 Months Ended
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of portfolio segments | segment
2
2
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance
$ 2,629,000,000
$ 2,611,000,000
Charge-offs
(442,000,000)
(386,000,000)
Recoveries
164,000,000
164,000,000
Net (charge-offs)
(278,000,000)
(222,000,000)
Provision for credit losses
$ 180,000,000
$ 80,000,000
369,000,000
172,000,000
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit
(6,000,000)
8,000,000
Other
7,000,000
12,000,000
Ending Balance
2,721,000,000
2,581,000,000
2,721,000,000
2,581,000,000
Loans collectively evaluated for impairment - associated allowance
2,230,000,000
2,064,000,000
2,230,000,000
2,064,000,000
Impaired loans - associated allowance
209,000,000
209,000,000
$ 209,000,000
Loans collectively evaluated for impairment
232,525,000,000
217,783,000,000
232,525,000,000
217,783,000,000
Fair value option loans
755,000,000
753,000,000
755,000,000
753,000,000
Purchased impaired loans
1,871,000,000
2,211,000,000
1,871,000,000
2,211,000,000
Total loans
$ 237,215,000,000
[1]
$ 222,855,000,000
$ 237,215,000,000
[1]
$ 222,855,000,000
226,245,000,000
[1]
Portfolio segment ALLL as a percentage of total ALLL
100.00%
100.00%
100.00%
100.00%
Ratio of the allowance for loan and lease losses to total loans
1.15%
1.16%
1.15%
1.16%
TDRs [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Loans individually evaluated for impairment - associated allowance
$ 156,000,000
$ 176,000,000
$ 156,000,000
$ 176,000,000
Loans individually evaluated for impairment
1,777,000,000
1,868,000,000
1,777,000,000
1,868,000,000
Other Loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Loans individually evaluated for impairment - associated allowance
53,000,000
60,000,000
53,000,000
60,000,000
Loans individually evaluated for impairment
287,000,000
240,000,000
287,000,000
240,000,000
Purchased Impaired Loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Impaired loans - associated allowance
282,000,000
281,000,000
282,000,000
281,000,000
Loans Accounted for under Fair Value Option [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Loans collectively evaluated for impairment - associated allowance
0
0
Total commercial lending [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance
1,663,000,000
1,582,000,000
Charge-offs
(84,000,000)
(64,000,000)
Recoveries
40,000,000
51,000,000
Net (charge-offs)
(44,000,000)
(13,000,000)
Provision for credit losses
187,000,000
56,000,000
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit
(7,000,000)
6,000,000
Other
(1,000,000)
Ending Balance
1,799,000,000
1,630,000,000
1,799,000,000
1,630,000,000
Loans collectively evaluated for impairment - associated allowance
1,713,000,000
1,541,000,000
1,713,000,000
1,541,000,000
Impaired loans - associated allowance
86,000,000
86,000,000
73,000,000
Loans collectively evaluated for impairment
160,920,000,000
149,072,000,000
160,920,000,000
149,072,000,000
Total loans
$ 161,603,000,000
$ 149,636,000,000
$ 161,603,000,000
$ 149,636,000,000
152,282,000,000
Portfolio segment ALLL as a percentage of total ALLL
66.00%
63.00%
66.00%
63.00%
Ratio of the allowance for loan and lease losses to total loans
1.11%
1.09%
1.11%
1.09%
Total commercial lending [Member] | TDRs [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Loans individually evaluated for impairment - associated allowance
$ 33,000,000
$ 29,000,000
$ 33,000,000
$ 29,000,000
Loans individually evaluated for impairment
396,000,000
324,000,000
396,000,000
324,000,000
Total commercial lending [Member] | Other Loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Loans individually evaluated for impairment - associated allowance
53,000,000
60,000,000
53,000,000
60,000,000
Loans individually evaluated for impairment
287,000,000
240,000,000
287,000,000
240,000,000
Total consumer lending [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance
966,000,000
1,029,000,000
Charge-offs
(358,000,000)
(322,000,000)
Recoveries
124,000,000
113,000,000
Net (charge-offs)
(234,000,000)
(209,000,000)
Provision for credit losses
182,000,000
116,000,000
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit
1,000,000
2,000,000
Other
7,000,000
13,000,000
Ending Balance
922,000,000
951,000,000
922,000,000
951,000,000
Loans collectively evaluated for impairment - associated allowance
517,000,000
523,000,000
517,000,000
523,000,000
Impaired loans - associated allowance
123,000,000
123,000,000
136,000,000
Loans collectively evaluated for impairment
71,605,000,000
68,711,000,000
71,605,000,000
68,711,000,000
Fair value option loans
755,000,000
753,000,000
755,000,000
753,000,000
Purchased impaired loans
1,871,000,000
2,211,000,000
1,871,000,000
2,211,000,000
Total loans
$ 75,612,000,000
$ 73,219,000,000
$ 75,612,000,000
$ 73,219,000,000
$ 73,963,000,000
Portfolio segment ALLL as a percentage of total ALLL
34.00%
37.00%
34.00%
37.00%
Ratio of the allowance for loan and lease losses to total loans
1.22%
1.30%
1.22%
1.30%
Total consumer lending [Member] | TDRs [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Loans individually evaluated for impairment - associated allowance
$ 123,000,000
$ 147,000,000
$ 123,000,000
$ 147,000,000
Loans individually evaluated for impairment
1,381,000,000
1,544,000,000
1,381,000,000
1,544,000,000
Total consumer lending [Member] | Purchased Impaired Loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Impaired loans - associated allowance
$ 282,000,000
$ 281,000,000
$ 282,000,000
$ 281,000,000
[1]
$ in Millions
Debt Securities, Available-for-sale [Line Items]
Securities available for sale debt securities, amortized cost
$ 68,132
$ 63,514
Securities available for sale debt securities, unrealized gains
1,381
710
Securities available for sale debt securities, unrealized losses
(158)
(835)
Debt Securities, Available-for-sale
69,355
63,389
Held to Maturity Securities, Amortized Cost, Total
18,948
19,312
Held-to-maturity securities, unrealized gains
337
118
Held-to-maturity securities, unrealized losses
(86)
(411)
Held-to-maturity securities, fair value
19,199
19,019
US Treasury and Government [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale debt securities, amortized cost
18,828
18,104
Securities available for sale debt securities, unrealized gains
371
133
Securities available for sale debt securities, unrealized losses
(17)
(137)
Debt Securities, Available-for-sale
19,182
18,100
Held to Maturity Securities, Amortized Cost, Total
767
758
Held-to-maturity securities, unrealized gains
53
28
Held-to-maturity securities, unrealized losses
(23)
Held-to-maturity securities, fair value
820
763
Asset-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale debt securities, amortized cost
5,337
4,933
Securities available for sale debt securities, unrealized gains
89
59
Securities available for sale debt securities, unrealized losses
(7)
(20)
Debt Securities, Available-for-sale
5,419
4,972
Held to Maturity Securities, Amortized Cost, Total
170
182
Held-to-maturity securities, unrealized gains
1
Held-to-maturity securities, fair value
170
183
Other [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale debt securities, amortized cost
3,169
3,821
Securities available for sale debt securities, unrealized gains
122
96
Securities available for sale debt securities, unrealized losses
(3)
(38)
Debt Securities, Available-for-sale
3,288
3,879
Held to Maturity Securities, Amortized Cost, Total
1,803
1,849
Held-to-maturity securities, unrealized gains
88
53
Held-to-maturity securities, unrealized losses
(18)
(28)
Held-to-maturity securities, fair value
1,873
1,874
Mortgage-backed Securities Agency [Member] | Residential Mortgage-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale debt securities, amortized cost
33,508
29,413
Securities available for sale debt securities, unrealized gains
402
104
Securities available for sale debt securities, unrealized losses
(90)
(524)
Debt Securities, Available-for-sale
33,820
28,993
Held to Maturity Securities, Amortized Cost, Total
15,503
15,740
Held-to-maturity securities, unrealized gains
181
32
Held-to-maturity securities, unrealized losses
(68)
(358)
Held-to-maturity securities, fair value
15,616
15,414
Mortgage-backed Securities Agency [Member] | Commercial Mortgage Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale debt securities, amortized cost
2,568
2,630
Securities available for sale debt securities, unrealized gains
47
13
Securities available for sale debt securities, unrealized losses
(30)
(66)
Debt Securities, Available-for-sale
2,585
2,577
Held to Maturity Securities, Amortized Cost, Total
95
143
Held-to-maturity securities, unrealized gains
3
1
Held-to-maturity securities, unrealized losses
(1)
Held-to-maturity securities, fair value
98
143
Mortgage-backed Securities Non-agency [Member] | Residential Mortgage-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale debt securities, amortized cost
1,745
1,924
Securities available for sale debt securities, unrealized gains
316
300
Securities available for sale debt securities, unrealized losses
(4)
(13)
Debt Securities, Available-for-sale
2,057
2,211
Held to Maturity Securities, Amortized Cost, Total
146
152
Held-to-maturity securities, unrealized gains
6
2
Held-to-maturity securities, fair value
152
154
Mortgage-backed Securities Non-agency [Member] | Commercial Mortgage Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale debt securities, amortized cost
2,977
2,689
Securities available for sale debt securities, unrealized gains
34
5
Securities available for sale debt securities, unrealized losses
(7)
(37)
Debt Securities, Available-for-sale
3,004
2,657
Held to Maturity Securities, Amortized Cost, Total
464
488
Held-to-maturity securities, unrealized gains
6
1
Held-to-maturity securities, unrealized losses
(1)
Held-to-maturity securities, fair value
$ 470
$ 488
$ in Millions
Schedule of Investments [Line Items]
Investment securities, net unsettled investment purchases
$ 2,000
Gain on derivatives used to hedge purchase of investment securities
23
Other than temporary impairment credit losses recognized In earnings credit losses on debt securities held
1,100
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Schedule of Investments [Line Items]
Debt securities amortized cost amount of debt securities exceeds 10 percent of shareholders equity
40,700
Fair value of debt securities of a single issuer that exceeeds 10 percent of shareholders equity
$ 41,100
$ in Millions
Debt Securities, Available-for-sale [Line Items]
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss
$ (12)
$ (126)
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months
4,305
13,913
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss
(146)
(709)
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer
13,217
23,902
Debt securities, available-for-sale, unrealized loss position, accumulated loss
(158)
(835)
Debt securities, available-for-sale, unrealized loss position
17,522
37,815
HTM unrealized loss position less than 12 months - unrealized loss
(1)
(62)
HTM unrealized loss position less than 12 months - fair value
31
4,506
HTM unrealized loss position 12 months or more - unrealized loss
(85)
(349)
HTM unrealized loss position 12 months or more - fair value
5,749
8,490
Total HTM unrealized loss
(86)
(411)
Total HTM fair value
5,780
12,996
US Treasury and Government [Member]
Debt Securities, Available-for-sale [Line Items]
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss
(6)
(21)
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months
2,151
4,125
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss
(11)
(116)
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer
2,260
5,423
Debt securities, available-for-sale, unrealized loss position, accumulated loss
(17)
(137)
Debt securities, available-for-sale, unrealized loss position
4,411
9,548
HTM unrealized loss position 12 months or more - unrealized loss
(23)
HTM unrealized loss position 12 months or more - fair value
446
Total HTM unrealized loss
(23)
Total HTM fair value
446
Residential Mortgage-backed Securities [Member] | Mortgage-backed Securities Agency [Member]
Debt Securities, Available-for-sale [Line Items]
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss
(1)
(57)
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months
1,173
4,823
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss
(89)
(467)
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer
7,578
13,830
Debt securities, available-for-sale, unrealized loss position, accumulated loss
(90)
(524)
Debt securities, available-for-sale, unrealized loss position
8,751
18,653
HTM unrealized loss position less than 12 months - unrealized loss
(58)
HTM unrealized loss position less than 12 months - fair value
4,191
HTM unrealized loss position 12 months or more - unrealized loss
(68)
(300)
HTM unrealized loss position 12 months or more - fair value
5,619
7,921
Total HTM unrealized loss
(68)
(358)
Total HTM fair value
5,619
12,112
Residential Mortgage-backed Securities [Member] | Mortgage-backed Securities Non-agency [Member]
Debt Securities, Available-for-sale [Line Items]
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss
(1)
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months
74
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss
(4)
(12)
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer
253
310
Debt securities, available-for-sale, unrealized loss position, accumulated loss
(4)
(13)
Debt securities, available-for-sale, unrealized loss position
253
384
Commercial Mortgage Backed Securities [Member] | Mortgage-backed Securities Agency [Member]
Debt Securities, Available-for-sale [Line Items]
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss
(1)
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months
65
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss
(30)
(65)
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer
1,192
1,516
Debt securities, available-for-sale, unrealized loss position, accumulated loss
(30)
(66)
Debt securities, available-for-sale, unrealized loss position
1,192
1,581
HTM unrealized loss position less than 12 months - unrealized loss
(1)
HTM unrealized loss position less than 12 months - fair value
88
Total HTM unrealized loss
(1)
Total HTM fair value
88
Commercial Mortgage Backed Securities [Member] | Mortgage-backed Securities Non-agency [Member]
Debt Securities, Available-for-sale [Line Items]
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss
(1)
(23)
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months
313
1,809
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss
(6)
(14)
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer
224
498
Debt securities, available-for-sale, unrealized loss position, accumulated loss
(7)
(37)
Debt securities, available-for-sale, unrealized loss position
537
2,307
HTM unrealized loss position less than 12 months - unrealized loss
(1)
HTM unrealized loss position less than 12 months - fair value
152
Total HTM unrealized loss
(1)
Total HTM fair value
152
Asset backed [Member]
Debt Securities, Available-for-sale [Line Items]
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss
(4)
(11)
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months
668
2,149
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss
(3)
(9)
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer
942
1,032
Debt securities, available-for-sale, unrealized loss position, accumulated loss
(7)
(20)
Debt securities, available-for-sale, unrealized loss position
1,610
3,181
Other [Member]
Debt Securities, Available-for-sale [Line Items]
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss
(12)
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months
868
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss
(3)
(26)
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer
768
1,293
Debt securities, available-for-sale, unrealized loss position, accumulated loss
(3)
(38)
Debt securities, available-for-sale, unrealized loss position
768
2,161
HTM unrealized loss position less than 12 months - unrealized loss
(1)
(2)
HTM unrealized loss position less than 12 months - fair value
31
75
HTM unrealized loss position 12 months or more - unrealized loss
(17)
(26)
HTM unrealized loss position 12 months or more - fair value
130
123
Total HTM unrealized loss
(18)
(28)
Total HTM fair value
$ 161
$ 198
$ in Millions6 Months Ended
Investment Securities Disclosure [Abstract]
Gross Gains
$ 47
$ 42
Gross Losses
(15)
(46)
Net Gains (Losses)
32
(4)
Tax Expense (Benefit)
$ 7
$ (1)
$ in Millions
Debt Securities [Line Items]
Available for Sale Securities, Amortized Cost, 1 year or less
$ 1,760
Available for Sale Securities, Amortized Cost, After 1 year through 5 years
17,972
Available for Sale Securities, Amortized Cost, After 5 years through 10 years
6,757
Available for Sale Securities, Amortized Cost, After 10 years
41,643
Securities available for sale debt securities, amortized cost
68,132
$ 63,514
Available-for-sale Securities, Fair value, 1 year or less
1,764
Available-for-sale Securities, Fair value, After 1 year through 5 years
18,145
Available-for-sale Securities, Fair value, After 5 years through 10 years
6,925
Available-for-sale Securities, Fair value, After 10 years
42,521
Available-for-sale Securities, Fair value, Total
$ 69,355
63,389
Weighted-average yield, GAAP basis, available for sale securities
2.99%
Held to Maturity Securities, Amortized Cost, 1 year or less
$ 31
Held to Maturity Securities, Amortized Cost, After 1 year through 5 years
769
Held to Maturity Securities, Amortized Cost, After 5 years through 10 years
1,810
Held to Maturity Securities, Amortized Cost, After 10 years
16,338
Held to Maturity Securities, Amortized Cost, Total
18,948
19,312
Held-to-maturity Securities, Fair Value, 1 year or less
31
Held-to-maturity Securities, Fair Value, After 1 year through 5 years
795
Held-to-maturity Securities, Fair Value, After 5 years through 10 years
1,900
Held-to-maturity Securities, Fair Value, After 10 years
16,473
Held-to-maturity Securities, Debt Maturities, Fair Value, Total
$ 19,199
$ 19,019
Weighted-average yield, GAAP basis, held to maturity securities
3.34%
One Year or Less [Member]
Debt Securities [Line Items]
Weighted-average yield, GAAP basis, available for sale securities
2.38%
Weighted-average yield, GAAP basis, held to maturity securities
3.92%
After One Year Through Five Years [Member]
Debt Securities [Line Items]
Weighted-average yield, GAAP basis, available for sale securities
2.30%
Weighted-average yield, GAAP basis, held to maturity securities
3.89%
After Five Years Through Ten Years [Member]
Debt Securities [Line Items]
Weighted-average yield, GAAP basis, available for sale securities
2.95%
Weighted-average yield, GAAP basis, held to maturity securities
3.43%
After Ten Years [Member]
Debt Securities [Line Items]
Weighted-average yield, GAAP basis, available for sale securities
3.32%
Weighted-average yield, GAAP basis, held to maturity securities
3.30%
US Treasury and Government [Member]
Debt Securities [Line Items]
Available for Sale Securities, Amortized Cost, 1 year or less
$ 1,273
Available for Sale Securities, Amortized Cost, After 1 year through 5 years
13,501
Available for Sale Securities, Amortized Cost, After 5 years through 10 years
3,232
Available for Sale Securities, Amortized Cost, After 10 years
822
Securities available for sale debt securities, amortized cost
18,828
Held to Maturity Securities, Amortized Cost, After 5 years through 10 years
493
Held to Maturity Securities, Amortized Cost, After 10 years
274
Held to Maturity Securities, Amortized Cost, Total
767
Residential Mortgage-backed Securities [Member] | Mortgage-backed Securities Agency [Member]
Debt Securities [Line Items]
Available for Sale Securities, Amortized Cost, 1 year or less
1
Available for Sale Securities, Amortized Cost, After 1 year through 5 years
67
Available for Sale Securities, Amortized Cost, After 5 years through 10 years
853
Available for Sale Securities, Amortized Cost, After 10 years
32,587
Securities available for sale debt securities, amortized cost
33,508
Held to Maturity Securities, Amortized Cost, After 1 year through 5 years
68
Held to Maturity Securities, Amortized Cost, After 5 years through 10 years
507
Held to Maturity Securities, Amortized Cost, After 10 years
14,928
Held to Maturity Securities, Amortized Cost, Total
15,503
Residential Mortgage-backed Securities [Member] | Mortgage-backed Securities Non-agency [Member]
Debt Securities [Line Items]
Available for Sale Securities, Amortized Cost, After 10 years
1,745
Securities available for sale debt securities, amortized cost
1,745
Held to Maturity Securities, Amortized Cost, After 10 years
146
Held to Maturity Securities, Amortized Cost, Total
146
Commercial Mortgage Backed Securities [Member] | Mortgage-backed Securities Agency [Member]
Debt Securities [Line Items]
Available for Sale Securities, Amortized Cost, After 1 year through 5 years
626
Available for Sale Securities, Amortized Cost, After 5 years through 10 years
268
Available for Sale Securities, Amortized Cost, After 10 years
1,674
Securities available for sale debt securities, amortized cost
2,568
Held to Maturity Securities, Amortized Cost, After 1 year through 5 years
46
Held to Maturity Securities, Amortized Cost, After 10 years
49
Held to Maturity Securities, Amortized Cost, Total
95
Commercial Mortgage Backed Securities [Member] | Mortgage-backed Securities Non-agency [Member]
Debt Securities [Line Items]
Available for Sale Securities, Amortized Cost, After 5 years through 10 years
337
Available for Sale Securities, Amortized Cost, After 10 years
2,640
Securities available for sale debt securities, amortized cost
2,977
Held to Maturity Securities, Amortized Cost, After 10 years
464
Held to Maturity Securities, Amortized Cost, Total
464
Asset backed [Member]
Debt Securities [Line Items]
Available for Sale Securities, Amortized Cost, 1 year or less
50
Available for Sale Securities, Amortized Cost, After 1 year through 5 years
2,317
Available for Sale Securities, Amortized Cost, After 5 years through 10 years
1,645
Available for Sale Securities, Amortized Cost, After 10 years
1,325
Securities available for sale debt securities, amortized cost
5,337
Held to Maturity Securities, Amortized Cost, After 1 year through 5 years
6
Held to Maturity Securities, Amortized Cost, After 5 years through 10 years
100
Held to Maturity Securities, Amortized Cost, After 10 years
64
Held to Maturity Securities, Amortized Cost, Total
170
Other [Member]
Debt Securities [Line Items]
Available for Sale Securities, Amortized Cost, 1 year or less
436
Available for Sale Securities, Amortized Cost, After 1 year through 5 years
1,461
Available for Sale Securities, Amortized Cost, After 5 years through 10 years
422
Available for Sale Securities, Amortized Cost, After 10 years
850
Securities available for sale debt securities, amortized cost
3,169
Held to Maturity Securities, Amortized Cost, 1 year or less
31
Held to Maturity Securities, Amortized Cost, After 1 year through 5 years
649
Held to Maturity Securities, Amortized Cost, After 5 years through 10 years
710
Held to Maturity Securities, Amortized Cost, After 10 years
413
Held to Maturity Securities, Amortized Cost, Total
$ 1,803
$ in Millions
Investment Securities Disclosure [Abstract]
Pledged to others
$ 9,450
$ 7,597
Permitted by contract or custom to sell or repledge
2,677
6,905
Permitted amount repledged to others
686
923
Fair value of securities received as collateral that have not been repledged
$ 2,000
$ 6,000
$ in Thousands
Assets
Total securities available for sale
$ 69,355,000
$ 63,389,000
Mortgage servicing rights
1,627,000
1,983,000
Financial derivatives
2,231,000
1,052,000
Liabilities
Financial derivatives
604,000
1,063,000
Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
69,355,000
63,389,000
Loans
755,000
782,000
Equity investments
2,193,000
2,209,000
Trading securities
2,558,000
3,916,000
Financial derivatives
3,546,000
2,081,000
Other assets
457,000
493,000
Total Assets
81,586,000
75,744,000
Liabilities
Other borrowed funds
913,000
1,007,000
Financial derivatives
2,002,000
2,290,000
Other liabilities
78,000
58,000
Total liabilities
2,993,000
3,355,000
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
18,902,000
17,753,000
Equity investments
675,000
751,000
Trading securities
853,000
2,137,000
Financial derivatives
2,000
3,000
Other assets
322,000
291,000
Total Assets
20,754,000
20,935,000
Liabilities
Other borrowed funds
709,000
868,000
Financial derivatives
5,000
1,000
Total liabilities
714,000
869,000
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
48,136,000
43,150,000
Loans
496,000
510,000
Trading securities
1,705,000
1,777,000
Financial derivatives
3,458,000
2,053,000
Other assets
135,000
157,000
Total Assets
54,950,000
48,449,000
Liabilities
Other borrowed funds
199,000
132,000
Financial derivatives
1,776,000
2,021,000
Total liabilities
1,975,000
2,153,000
Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
2,317,000
2,486,000
Loans
259,000
272,000
Equity investments
1,323,000
1,255,000
Trading securities
2,000
Financial derivatives
86,000
25,000
Other assets
45,000
Total Assets
5,687,000
6,157,000
Liabilities
Other borrowed funds
5,000
7,000
Financial derivatives
221,000
268,000
Other liabilities
78,000
58,000
Total liabilities
304,000
333,000
Residential Mortgage [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Loans held for sale
697,000
495,000
Mortgage servicing rights
997,000
1,257,000
Residential Mortgage [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Loans held for sale
695,000
493,000
Residential Mortgage [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Loans held for sale
2,000
2,000
Mortgage servicing rights
997,000
1,257,000
Commercial Mortgage [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Loans held for sale
398,000
396,000
Mortgage servicing rights
630,000
726,000
Commercial Mortgage [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Loans held for sale
325,000
309,000
Commercial Mortgage [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Loans held for sale
73,000
87,000
Mortgage servicing rights
630,000
726,000
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
19,182,000
18,100,000
US Treasury and Government [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
18,902,000
17,753,000
US Treasury and Government [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
280,000
347,000
Residential Mortgage-backed Securities [Member] | Mortgage-backed Securities Agency [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
33,820,000
28,993,000
Residential Mortgage-backed Securities [Member] | Mortgage-backed Securities Non-agency [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
2,057,000
2,211,000
Residential Mortgage-backed Securities [Member] | Level 2 [Member] | Mortgage-backed Securities Agency [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
33,820,000
28,993,000
Residential Mortgage-backed Securities [Member] | Level 2 [Member] | Mortgage-backed Securities Non-agency [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
81,000
83,000
Residential Mortgage-backed Securities [Member] | Level 3 [Member] | Mortgage-backed Securities Non-agency [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
1,976,000
2,128,000
Commercial Mortgage Backed Securities [Member] | Mortgage-backed Securities Agency [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
2,585,000
2,577,000
Commercial Mortgage Backed Securities [Member] | Mortgage-backed Securities Non-agency [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
3,004,000
2,657,000
Commercial Mortgage Backed Securities [Member] | Level 2 [Member] | Mortgage-backed Securities Agency [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
2,585,000
2,577,000
Commercial Mortgage Backed Securities [Member] | Level 2 [Member] | Mortgage-backed Securities Non-agency [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
3,004,000
2,657,000
Asset backed [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
5,419,000
4,972,000
Asset backed [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
5,158,000
4,698,000
Asset backed [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
261,000
274,000
Other [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
3,288,000
3,879,000
Other [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
3,208,000
3,795,000
Other [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Total securities available for sale
$ 80,000
$ 84,000
$ in Millions3 Months Ended
6 Months Ended
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
$ 5,827
$ 6,546
$ 6,157
$ 6,475
Included in earnings
(136)
151
(162)
367
Included in other comprehensive income
22
10
26
19
Purchases
255
160
349
315
Sales
(59)
(105)
(198)
(128)
Issuances
15
16
29
46
Settlements
(228)
(291)
(499)
(596)
Transfers Into Level 3
2
1
7
5
Transfers out of Level 3
(11)
(14)
(22)
(29)
Ending Balance
5,687
6,474
5,687
6,474
Unrealized gains/losses on assets held on Consolidated Balance Sheet
(161)
114
(355)
306
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
298
488
333
531
Included in earnings
31
(30)
70
(18)
Purchases
12
Sales
1
2
3
5
Issuances
63
42
79
66
Settlements
(89)
(64)
(181)
(158)
Ending Balance
304
438
304
438
Unrealized gains/losses on liabilities held on Consolidated Balance Sheet
22
28
(64)
21
Fair Value Additional Information [Abstract]
Net gains (losses) included in earnings (realized and unrealized) relating to Level 3 assets and liabilities
(167)
181
(232)
385
Net unrealized gains (losses) relating to Level 3 assets and liabilities
(183)
142
(419)
327
Loans Held For Sale [Member] | Residential Mortgage [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
2
2
2
3
Purchases
1
1
2
2
Sales
(1)
(1)
Transfers Into Level 3
1
3
4
5
Transfers out of Level 3
(2)
(2)
(5)
(5)
Ending Balance
2
4
2
4
Loans Held For Sale [Member] | Commercial Mortgages [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
73
92
87
107
Included in earnings
1
(1)
2
(1)
Settlements
(1)
(16)
(15)
Ending Balance
73
91
73
91
Unrealized gains/losses on assets held on Consolidated Balance Sheet
1
(1)
2
(1)
Available-for-sale Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
2,393
2,960
2,486
3,080
Included in earnings
20
2
38
25
Included in other comprehensive income
22
10
26
19
Purchases
2
2
3
4
Sales
(3)
(3)
Settlements
(117)
(170)
(233)
(324)
Ending Balance
2,317
2,804
2,317
2,804
Available-for-sale Securities [Member] | Asset backed [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
266
321
274
332
Included in earnings
2
1
2
Included in other comprehensive income
4
(1)
6
4
Settlements
(11)
(13)
(21)
(28)
Ending Balance
261
308
261
308
Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
2,042
2,545
2,128
2,661
Included in earnings
18
1
36
20
Included in other comprehensive income
19
5
21
8
Settlements
(103)
(146)
(209)
(284)
Ending Balance
1,976
2,405
1,976
2,405
Available-for-sale Securities [Member] | Other [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
85
94
84
87
Included in earnings
5
Included in other comprehensive income
(1)
6
(1)
7
Purchases
2
2
3
4
Sales
(3)
(3)
Settlements
(3)
(11)
(3)
(12)
Ending Balance
80
91
80
91
Loans [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
272
302
272
298
Included in earnings
2
3
5
5
Purchases
13
18
33
55
Sales
(8)
(2)
(11)
(9)
Issuances
(1)
(1)
Settlements
(11)
(25)
(25)
(43)
Transfers Into Level 3
1
(2)
3
Transfers out of Level 3
(9)
(12)
(17)
(24)
Ending Balance
259
282
259
282
Unrealized gains/losses on assets held on Consolidated Balance Sheet
1
(1)
2
1
Equity Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
1,217
1,129
1,255
1,036
Included in earnings
4
62
56
88
Purchases
150
79
195
161
Sales
(48)
(103)
(183)
(118)
Ending Balance
1,323
1,167
1,323
1,167
Unrealized gains/losses on assets held on Consolidated Balance Sheet
3
35
3
60
Mortgage Servicing Rights [Member] | Residential Mortgage [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
1,131
1,256
1,257
1,164
Included in earnings
(156)
40
(262)
147
Purchases
59
38
65
47
Issuances
7
10
14
23
Settlements
(44)
(47)
(77)
(84)
Ending Balance
997
1,297
997
1,297
Unrealized gains/losses on assets held on Consolidated Balance Sheet
(156)
35
(261)
140
Mortgage Servicing Rights [Member] | Commercial Mortgages [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
681
723
726
668
Included in earnings
(55)
33
(88)
81
Purchases
32
21
51
44
Issuances
9
6
16
23
Settlements
(37)
(35)
(75)
(68)
Ending Balance
630
748
630
748
Unrealized gains/losses on assets held on Consolidated Balance Sheet
(55)
33
(88)
81
Trading Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
2
2
2
2
Settlements
(2)
(2)
Ending Balance
2
2
Financial Derivatives [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
56
12
25
10
Included in earnings
48
17
87
24
Purchases
(2)
1
2
Settlements
(16)
(14)
(26)
(20)
Ending Balance
86
16
86
16
Unrealized gains/losses on assets held on Consolidated Balance Sheet
45
18
(13)
27
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
230
437
268
487
Included in earnings
20
(33)
50
(23)
Sales
(1)
2
1
5
Settlements
(28)
(22)
(98)
(85)
Ending Balance
221
384
221
384
Unrealized gains/losses on liabilities held on Consolidated Balance Sheet
19
31
(53)
26
Other Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
68
45
107
Included in earnings
(5)
(2)
Settlements
(45)
(42)
Ending Balance
63
63
Unrealized gains/losses on assets held on Consolidated Balance Sheet
(5)
(2)
Other Borrowed Funds [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
6
9
7
11
Issuances
12
13
26
32
Settlements
(13)
(15)
(28)
(36)
Ending Balance
5
7
5
7
Other liabilities [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance
62
42
58
33
Included in earnings
11
3
20
5
Purchases
12
Sales
2
2
Issuances
51
29
53
34
Settlements
(48)
(27)
(55)
(37)
Ending Balance
78
47
78
47
Unrealized gains/losses on liabilities held on Consolidated Balance Sheet
$ 3
$ (3)
$ (11)
$ (5)
$ in Millions6 Months Ended
12 Months Ended
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Recurring Assets - Fair Value
$ 81,586
$ 75,744
Financial and nonfinancial liabilities, fair value disclosure
(2,993)
(3,355)
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, recurring, fair value disclosure
5,700
6,100
Recurring Assets - Fair Value
5,687
6,157
Financial and nonfinancial liabilities, fair value disclosure
(304)
(333)
Total Recurring Assets Net of Recurring Liabilities - Fair Value
5,383
5,824
Level 3 [Member] | Loans Held For Sale [Member] | Commercial Mortgages [Member] | Discounted Cash Flow, Spread Over the Benchmark Curve [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Recurring Assets - Fair Value
$ 73
$ 87
Level 3 [Member] | Loans Held For Sale [Member] | Commercial Mortgages [Member] | Discounted Cash Flow [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Spread over the benchmark curve
5.30%
5.35%
Level 3 [Member] | Loans Held For Sale [Member] | Commercial Mortgages [Member] | Discounted Cash Flow [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Spread over the benchmark curve
22.70%
19.00%
Level 3 [Member] | Loans Held For Sale [Member] | Commercial Mortgages [Member] | Discounted Cash Flow [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Spread over the benchmark curve
14.77%
12.17%
Level 3 [Member] | Available-for-sale Securities [Member] | Asset backed [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Recurring Assets - Fair Value
$ 261
$ 274
Level 3 [Member] | Available-for-sale Securities [Member] | Asset backed [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Spread over the benchmark curve
1.90%
1.98%
Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Recurring Assets - Fair Value
$ 1,976
$ 2,128
Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Spread over the benchmark curve
1.90%
2.16%
Level 3 [Member] | Loans - Residential real estate [Member] | Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Recurring Assets - Fair Value
$ 81
$ 90
Level 3 [Member] | Loans - Residential real estate [Member] | Consensus Pricing [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Recurring Assets - Fair Value
$ 129
$ 129
Level 3 [Member] | Loans - Residential real estate [Member] | Consensus Pricing [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cumulative default rate
11.00%
11.00%
Level 3 [Member] | Loans - Residential real estate [Member] | Consensus Pricing [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cumulative default rate
100.00%
100.00%
Level 3 [Member] | Loans - Residential real estate [Member] | Consensus Pricing [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cumulative default rate
81.20%
81.80%
Level 3 [Member] | Loans - Home equity [Member] | Consensus Pricing [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Recurring Assets - Fair Value
$ 49
$ 53
Level 3 [Member] | Loans - Home equity [Member] | Consensus Pricing [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Credit and Liquidity discount
0.00%
0.00%
Level 3 [Member] | Loans - Home equity [Member] | Consensus Pricing [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Credit and Liquidity discount
99.00%
99.00%
Level 3 [Member] | Loans - Home equity [Member] | Consensus Pricing [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Credit and Liquidity discount
61.90%
61.30%
Level 3 [Member] | Equity Investments [Member] | Multiple Of Adjusted Earnings [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Recurring Assets - Fair Value
$ 1,323
$ 1,255
Level 3 [Member] | Equity Investments [Member] | Multiple Of Adjusted Earnings [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Multiple of earnings
5.0
4.5
Level 3 [Member] | Equity Investments [Member] | Multiple Of Adjusted Earnings [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Multiple of earnings
19.7
16.0
Level 3 [Member] | Equity Investments [Member] | Multiple Of Adjusted Earnings [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Multiple of earnings
0.1
8.4
Level 3 [Member] | Mortgage Servicing Rights [Member] | Residential Mortgage [Member] | Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Recurring Assets - Fair Value
$ 997
$ 1,257
Level 3 [Member] | Mortgage Servicing Rights [Member] | Residential Mortgage [Member] | Discounted Cash Flow [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Spread over the benchmark curve
2.96%
4.92%
Level 3 [Member] | Mortgage Servicing Rights [Member] | Residential Mortgage [Member] | Discounted Cash Flow [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Spread over the benchmark curve
14.28%
14.55%
Level 3 [Member] | Mortgage Servicing Rights [Member] | Residential Mortgage [Member] | Discounted Cash Flow [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Spread over the benchmark curve
7.86%
8.06%
Level 3 [Member] | Mortgage Servicing Rights [Member] | Commercial Mortgages [Member] | Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Recurring Assets - Fair Value
$ 630
$ 726
Level 3 [Member] | Financial Derivatives [Member] | Visa Class B Swap [Member] | Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial and nonfinancial liabilities, fair value disclosure
$ (206)
$ (210)
Estimated growth rate of Visa Class A share price
16.00%
16.00%
Fair Value Inputs Length Of Litigation Resolution Date
12/31/2020
12/31/2020
Level 3 [Member] | Financial Derivatives [Member] | Visa Class B Swap [Member] | Discounted Cash Flow [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated conversion factor of Class B shares into Class A shares
163.00%
163.00%
Level 3 [Member] | Insignificant Assets, Net of Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Recurring Assets - Fair Value
$ 70
$ 35
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Asset backed [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.010
0.010
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Asset backed [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.220
0.190
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Asset backed [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.081
0.085
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.010
0.010
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.362
0.330
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.101
0.118
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Residential Mortgage [Member] | Discounted Cash Flow [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input
0.000
0.000
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Residential Mortgage [Member] | Discounted Cash Flow [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input
0.650
0.545
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Residential Mortgage [Member] | Discounted Cash Flow [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input
0.136
0.087
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Commercial Mortgages [Member] | Discounted Cash Flow [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input
0.038
0.046
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Commercial Mortgages [Member] | Discounted Cash Flow [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input
0.183
0.147
Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Commercial Mortgages [Member] | Discounted Cash Flow [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input
0.049
0.057
Measurement Input, Constant Default Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Asset backed [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.010
0.010
Measurement Input, Constant Default Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Asset backed [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.072
0.185
Measurement Input, Constant Default Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Asset backed [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.035
0.040
Measurement Input, Constant Default Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.000
0.000
Measurement Input, Constant Default Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.159
0.188
Measurement Input, Constant Default Rate [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.047
0.051
Measurement Input, Loss Severity [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Asset backed [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.150
0.150
Measurement Input, Loss Severity [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Asset backed [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
1.000
1.000
Measurement Input, Loss Severity [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Asset backed [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.606
0.638
Measurement Input, Loss Severity [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.150
0.100
Measurement Input, Loss Severity [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.957
1.000
Measurement Input, Loss Severity [Member] | Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage-backed Securities [Member] | Priced By A Third Party Vendor Using Discounted Cash Flow Pricing Model [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Constant prepayment rate (CPR)
0.500
0.508
Measurement Input, Loss Severity [Member] | Level 3 [Member] | Loans - Residential real estate [Member] | Discounted Cash Flow [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, Measurement Input
0.080
0.080
Measurement Input, Loss Severity [Member] | Level 3 [Member] | Loans - Residential real estate [Member] | Consensus Pricing [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, Measurement Input
0.000
0.000
Measurement Input, Loss Severity [Member] | Level 3 [Member] | Loans - Residential real estate [Member] | Consensus Pricing [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, Measurement Input
1.000
1.000
Measurement Input, Loss Severity [Member] | Level 3 [Member] | Loans - Residential real estate [Member] | Consensus Pricing [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, Measurement Input
0.164
0.172
Measurement Input, Discount Rate [Member] | Level 3 [Member] | Loans - Residential real estate [Member] | Discounted Cash Flow [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, Measurement Input
0.050
0.058
Measurement Input, Discount Rate [Member] | Level 3 [Member] | Loans - Residential real estate [Member] | Consensus Pricing [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, Measurement Input
0.055
0.055
Measurement Input, Discount Rate [Member] | Level 3 [Member] | Loans - Residential real estate [Member] | Consensus Pricing [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, Measurement Input
0.083
0.083
Measurement Input, Discount Rate [Member] | Level 3 [Member] | Loans - Residential real estate [Member] | Consensus Pricing [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, Measurement Input
0.058
0.058
Measurement Input, Discount Rate [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Commercial Mortgages [Member] | Discounted Cash Flow [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input
0.056
0.069
Measurement Input, Discount Rate [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Commercial Mortgages [Member] | Discounted Cash Flow [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input
0.079
0.085
Measurement Input, Discount Rate [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Commercial Mortgages [Member] | Discounted Cash Flow [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input
0.079
0.084
$ in Millions3 Months Ended
6 Months Ended
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nonrecurring Assets - Fair Value
$ 202
$ 202
$ 198
Nonrecurring Assets - Gains (Losses)
(40)
$ (24)
(52)
$ (41)
Nonaccrual Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nonrecurring Assets - Fair Value
160
160
128
Nonrecurring Assets - Gains (Losses)
(34)
(15)
(44)
(33)
OREO and Foreclosed Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nonrecurring Assets - Fair Value
36
36
59
Nonrecurring Assets - Gains (Losses)
(2)
(3)
(4)
(2)
Long-lived Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nonrecurring Assets - Fair Value
6
6
$ 11
Nonrecurring Assets - Gains (Losses)
$ (4)
$ (6)
$ (4)
$ (6)
$ in Millions
Other Assets Fair Value [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
$ 135
$ 156
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
129
176
Fair Value Option Aggregate Difference Assets
6
(20)
Other Borrowed Funds [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value of liabilities for which fair value option was elected
54
64
Aggregate Unpaid Principal Balance, Other borrowed funds
55
65
Difference, Other borrowed funds
(1)
(1)
Residential Mortgage [Member] | Loans Held For Sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
697
495
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
674
478
Fair Value Option Aggregate Difference Assets
23
17
Residential Mortgage [Member] | Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
755
782
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
885
919
Fair Value Option Aggregate Difference Assets
(130)
(137)
Residential Mortgage [Member] | Performing Loans [Member] | Loans Held For Sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
690
489
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
666
472
Fair Value Option Aggregate Difference Assets
24
17
Residential Mortgage [Member] | Performing Loans [Member] | Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
307
279
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
324
298
Fair Value Option Aggregate Difference Assets
(17)
(19)
Residential Mortgage [Member] | Loans 90 Days Or More Past Due [Member] | Loans Held For Sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
2
2
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
2
2
Residential Mortgage [Member] | Loans 90 Days Or More Past Due [Member] | Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
275
321
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
284
329
Fair Value Option Aggregate Difference Assets
(9)
(8)
Residential Mortgage [Member] | Nonaccrual Loans [Member] | Loans Held For Sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
5
4
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
6
4
Fair Value Option Aggregate Difference Assets
(1)
Residential Mortgage [Member] | Nonaccrual Loans [Member] | Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
173
182
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
277
292
Fair Value Option Aggregate Difference Assets
(104)
(110)
Commercial Mortgage [Member] | Loans Held For Sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
398
396
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
411
411
Fair Value Option Aggregate Difference Assets
(13)
(15)
Commercial Mortgage [Member] | Performing Loans [Member] | Loans Held For Sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
397
396
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
409
411
Fair Value Option Aggregate Difference Assets
(12)
(15)
Commercial Mortgage [Member] | Nonaccrual Loans [Member] | Loans Held For Sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Of Assets For Which Fair Value Option Was Elected
1
Aggregate Unpaid Principal Balance Of Assets For Which Fair Value Option Was Elected
2
Fair Value Option Aggregate Difference Assets
$ (1)
$ in Millions3 Months Ended
6 Months Ended
Loans Held For Sale [Member] | Residential Mortgage [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Gains (Losses) - FVO: Changes in Fair Value
$ 20
$ 8
$ 34
$ 12
Loans Held For Sale [Member] | Commercial Mortgages [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Gains (Losses) - FVO: Changes in Fair Value
18
11
23
25
Loans [Member] | Residential Mortgage [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Gains (Losses) - FVO: Changes in Fair Value
5
7
9
10
Other Assets Fair Value [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Gains (Losses) - FVO: Changes in Fair Value
$ 12
$ (21)
$ 21
$ (10)
$ in Millions
Financial Instruments, Financial Assets, Balance Sheet Groupings
Securities held to maturity
$ 19,199
$ 19,019
Carrying Amount [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and due from banks
5,416
5,608
Interest-earning deposits with banks
18,362
10,893
Securities held to maturity
18,948
19,312
Net loans (excludes leases)
226,330
215,525
Other assets
6,720
11,065
Total assets
275,776
262,403
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Time deposits
19,718
18,507
Borrowed funds
68,112
56,412
Unfunded loan commitments and letters of credit
291
285
Other liabilities
432
393
Total liabilities
88,553
75,597
Fair Value [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and due from banks
5,416
5,608
Interest-earning deposits with banks
18,362
10,893
Securities held to maturity
19,199
19,019
Net loans (excludes leases)
229,686
216,492
Other assets
6,720
11,065
Total assets
279,383
263,077
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Time deposits
19,497
18,246
Borrowed funds
68,612
56,657
Unfunded loan commitments and letters of credit
291
285
Other liabilities
432
393
Total liabilities
88,832
75,581
Fair Value [Member] | Level 1 [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and due from banks
5,416
5,608
Securities held to maturity
820
763
Total assets
6,236
6,371
Fair Value [Member] | Level 2 [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings
Interest-earning deposits with banks
18,362
10,893
Securities held to maturity
18,217
18,112
Other assets
6,719
11,060
Total assets
43,298
40,065
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Time deposits
19,497
18,246
Borrowed funds
66,730
54,872
Other liabilities
432
393
Total liabilities
86,659
73,511
Fair Value [Member] | Level 3 [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings
Securities held to maturity
162
144
Net loans (excludes leases)
229,686
216,492
Other assets
1
5
Total assets
229,849
216,641
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Borrowed funds
1,882
1,785
Unfunded loan commitments and letters of credit
291
285
Total liabilities
$ 2,173
$ 2,070
$ in Thousands3 Months Ended
6 Months Ended
Goodwill and Intangible Assets Disclosure [Abstract]
Mortgage servicing rights
$ 1,627,000
$ 1,627,000
$ 1,983,000
Fees from mortgage and other loan servicing
$ 100,000
$ 100,000
$ 200,000
$ 200,000
$ in Thousands6 Months Ended
Servicing Asset at Fair Value, Amount [Roll Forward]
Mortgage servicing rights, beginning balance
$ 1,983,000
Mortgage servicing rights, ending balance
1,627,000
Mortgage Servicing Rights [Member] | Commercial Mortgage [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Mortgage servicing rights, beginning balance
726,000
$ 668,000
Mortgage servicing rights, ending balance
630,000
748,000
Unpaid principal balance of loans serviced for others at end of period
193,510,000
174,589,000
Servicing Advances
204,000
212,000
Mortgage Servicing Rights [Member] | Commercial Mortgage [Member] | Time and Payoffs [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Changes in Fair Value
(75,000)
(68,000)
Mortgage Servicing Rights [Member] | Commercial Mortgage [Member] | Other [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Changes in Fair Value
(88,000)
81,000
Mortgage Servicing Rights [Member] | Commercial Mortgage [Member] | From loans sold with servicing retained [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Additions
16,000
23,000
Mortgage Servicing Rights [Member] | Commercial Mortgage [Member] | Purchases [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Additions
51,000
44,000
Mortgage Servicing Rights [Member] | Residential Mortgage [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Mortgage servicing rights, beginning balance
1,257,000
1,164,000
Mortgage servicing rights, ending balance
997,000
1,297,000
Unpaid principal balance of loans serviced for others at end of period
124,461,000
124,325,000
Servicing Advances
128,000
158,000
Mortgage Servicing Rights [Member] | Residential Mortgage [Member] | Time and Payoffs [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Changes in Fair Value
(77,000)
(84,000)
Mortgage Servicing Rights [Member] | Residential Mortgage [Member] | Other [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Changes in Fair Value
(262,000)
147,000
Mortgage Servicing Rights [Member] | Residential Mortgage [Member] | From loans sold with servicing retained [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Additions
14,000
23,000
Mortgage Servicing Rights [Member] | Residential Mortgage [Member] | Purchases [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Additions
$ 65,000
$ 47,000
$ in Thousands6 Months Ended
12 Months Ended
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair Value
$ 1,627,000
$ 1,983,000
Mortgage Servicing Rights [Member] | Commercial Mortgage [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair Value
$ 630,000
$ 726,000
$ 748,000
$ 668,000
Weighted-average life (years)
4 years
4 years 1 month 6 days
Decline in fair value from 10% adverse change in prepayment rate
$ 9,000
$ 10,000
Decline in fair value from 20% adverse change in prepayment rate
17,000
19,000
Decline in fair value from 10% adverse change in interest rate
16,000
19,000
Decline in fair value from 20% adverse change in interest rate
31,000
39,000
Mortgage Servicing Rights [Member] | Residential Mortgage [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair Value
$ 997,000
$ 1,257,000
$ 1,297,000
$ 1,164,000
Weighted-average life (years)
5 years 2 months 12 days
6 years 10 months 24 days
Decline in fair value from 10% adverse change in prepayment rate
$ 47,000
$ 41,000
Decline in fair value from 20% adverse change in prepayment rate
$ 89,000
$ 79,000
Spread over the benchmark curve
7.86%
8.06%
Decline in fair value from 10% adverse change in adjusted spread
$ 27,000
$ 37,000
Decline in fair value from 20% adverse change in adjusted spread
$ 52,000
$ 73,000
Mortgage Servicing Rights [Member] | Measurement Input, Constant Prepayment Rate [Member] | Commercial Mortgage [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Servicing asset, measurement input
0.0491
0.0565
Mortgage Servicing Rights [Member] | Measurement Input, Constant Prepayment Rate [Member] | Residential Mortgage [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Servicing asset, measurement input
0.1356
0.0869
Mortgage Servicing Rights [Member] | Measurement Input, Discount Rate [Member] | Commercial Mortgage [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Servicing asset, measurement input
0.0788
0.0839
$ in Millions3 Months Ended
6 Months Ended
Qualified Pension Plan
Net periodic cost consists of:
Service cost
$ 29
$ 30
$ 57
$ 58
Interest cost
47
42
93
85
Expected return on plan assets
(71)
(77)
(143)
(153)
Amortization of prior service credit
1
1
2
1
Amortization of actuarial losses
3
3
Net periodic cost/(benefit)
9
(4)
12
(9)
Nonqualified Pension Plan
Net periodic cost consists of:
Service cost
1
1
Interest cost
3
3
5
5
Amortization of actuarial losses
1
1
2
2
Net periodic cost/(benefit)
4
4
8
8
Postretirement Benefits
Net periodic cost consists of:
Service cost
1
1
2
2
Interest cost
4
3
7
6
Expected return on plan assets
(2)
(2)
(3)
(3)
Net periodic cost/(benefit)
$ 3
$ 2
$ 6
$ 5
$ in Millions
Derivative [Line Items]
Derivative Notional Amount
$ 426,932
$ 394,447
Derivative Asset, Fair Value
3,546
2,081
Derivative Liability, Fair Value
2,002
2,290
Derivative Asset, Fair Value Offset Amount
642
688
Derivative Liability, Fair Value Offset Amount
642
688
Derivative Asset, Cash Collateral
673
341
Derivative Liability, Cash Collateral
756
539
Derivative Asset, Net Fair Value
2,231
1,052
Derivative Liability, Net Fair Value
604
1,063
Commodity Contract [Member]
Derivative [Line Items]
Derivative Asset, Fair Value
221
311
Derivative Liability, Fair Value
217
305
Derivative Asset, Cash Collateral
32
210
Derivative Liability, Cash Collateral
1
17
Foreign Exchange And Other Contract [Member]
Derivative [Line Items]
Derivative Asset, Fair Value
213
269
Derivative Liability, Fair Value
402
465
Derivative Asset, Cash Collateral
3
14
Derivative Liability, Cash Collateral
60
33
Designated as Hedging Instruments under GAAP [Member]
Derivative [Line Items]
Derivative Notional Amount
57,825
49,268
Derivative Asset, Fair Value
9
8
Derivative Liability, Fair Value
1
10
Designated as Hedging Instruments under GAAP [Member] | Fair Value Hedging [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
31,914
30,919
Derivative Asset, Fair Value
7
Designated as Hedging Instruments under GAAP [Member] | Cash Flow Hedging [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
24,859
17,337
Derivative Asset, Fair Value
6
1
Derivative Liability, Fair Value
1
Designated as Hedging Instruments under GAAP [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member]
Derivative [Line Items]
Derivative Notional Amount
1,052
1,012
Derivative Asset, Fair Value
3
Derivative Liability, Fair Value
10
Not Designated as Hedging Instrument under GAAP [Member]
Derivative [Line Items]
Derivative Notional Amount
369,107
345,179
Derivative Asset, Fair Value
3,537
2,073
Derivative Liability, Fair Value
2,001
2,280
Not Designated as Hedging Instrument under GAAP [Member] | Mortgage Banking [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
68,808
66,022
Derivative Asset, Fair Value
149
57
Derivative Liability, Fair Value
116
45
Not Designated as Hedging Instrument under GAAP [Member] | Mortgage Banking [Member] | Swap [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
48,118
43,084
Derivative Asset, Fair Value
12
Derivative Liability, Fair Value
3
3
Not Designated as Hedging Instrument under GAAP [Member] | Mortgage Banking [Member] | Future [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
3,763
10,658
Not Designated as Hedging Instrument under GAAP [Member] | Mortgage Banking [Member] | Mortgage Commitment [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
8,478
5,771
Derivative Asset, Fair Value
92
47
Derivative Liability, Fair Value
88
39
Not Designated as Hedging Instrument under GAAP [Member] | Mortgage Banking [Member] | Other Contract [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
8,449
6,509
Derivative Asset, Fair Value
45
10
Derivative Liability, Fair Value
25
3
Not Designated as Hedging Instrument under GAAP [Member] | Customer Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
290,550
271,249
Derivative Asset, Fair Value
3,357
1,941
Derivative Liability, Fair Value
1,652
1,972
Not Designated as Hedging Instrument under GAAP [Member] | Customer Contracts [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
259,186
241,765
Derivative Asset, Fair Value
2,957
1,436
Derivative Liability, Fair Value
1,266
1,475
Not Designated as Hedging Instrument under GAAP [Member] | Customer Contracts [Member] | Commodity Contract [Member]
Derivative [Line Items]
Derivative Notional Amount
5,870
6,231
Derivative Asset, Fair Value
221
311
Derivative Liability, Fair Value
217
305
Not Designated as Hedging Instrument under GAAP [Member] | Customer Contracts [Member] | Foreign Exchange And Other Contract [Member]
Derivative [Line Items]
Derivative Notional Amount
25,494
23,253
Derivative Asset, Fair Value
179
194
Derivative Liability, Fair Value
169
192
Not Designated as Hedging Instrument under GAAP [Member] | Customer Contracts [Member] | Swap [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
233,046
218,496
Derivative Asset, Fair Value
2,812
1,352
Derivative Liability, Fair Value
1,216
1,432
Not Designated as Hedging Instrument under GAAP [Member] | Customer Contracts [Member] | Swap [Member] | Commodity Contract [Member]
Derivative [Line Items]
Derivative Notional Amount
4,323
4,813
Derivative Asset, Fair Value
204
244
Derivative Liability, Fair Value
200
238
Not Designated as Hedging Instrument under GAAP [Member] | Customer Contracts [Member] | Future [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
587
914
Not Designated as Hedging Instrument under GAAP [Member] | Customer Contracts [Member] | Mortgage Commitment [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
3,345
2,246
Derivative Asset, Fair Value
7
7
Derivative Liability, Fair Value
9
10
Not Designated as Hedging Instrument under GAAP [Member] | Customer Contracts [Member] | Other Contract [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Notional Amount
22,208
20,109
Derivative Asset, Fair Value
138
77
Derivative Liability, Fair Value
41
33
Not Designated as Hedging Instrument under GAAP [Member] | Customer Contracts [Member] | Other Contract [Member] | Commodity Contract [Member]
Derivative [Line Items]
Derivative Notional Amount
1,547
1,418
Derivative Asset, Fair Value
17
67
Derivative Liability, Fair Value
17
67
Not Designated as Hedging Instrument under GAAP [Member] | Other Risk Management Activity [Member] | Foreign Exchange And Other Contract [Member]
Derivative [Line Items]
Derivative Notional Amount
9,749
7,908
Derivative Asset, Fair Value
31
75
Derivative Liability, Fair Value
$ 233
$ 263
3 Months Ended
6 Months Ended
Derivative [Line Items]
Cash and securities held to collateralize net derivative assets
$ 1,000,000,000.0
$ 1,000,000,000.0
Cash and securities pledged to collateralize net derivative liabilities
1,400,000,000
1,400,000,000
Derivative, net liability position, aggregate fair value
1,500,000,000
1,500,000,000
Collateral already posted, aggregate fair value
1,100,000,000
1,100,000,000
Maximum amount of collateral PNC would have been required to post if the credit-risk-related contingent features underlying these agreements had been triggered
400,000,000
400,000,000
Cash Flow Hedging [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Cash flow hedge gain (loss) to be reclassified within twelve months
115,000,000
Cash flow hedge gain (loss) to be reclassified within twelve months, net of tax
$ 91,000,000
Maximum length of time hedged in cash flow hedge
10 years
Gain (loss) from components excluded from assessment of cash flow hedge effectiveness, net
0
$ 0
$ 0
$ 0
Gain (loss) on discontinuation of cash flow hedge due to forecasted transaction probable of not occurring, net
0
0
0
0
Fair Value Hedging [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Gain (loss) from components excluded from assessment of fair value hedge effectiveness, net
0
0
0
0
Net Investment Hedging [Member] | Foreign Exchange Contract [Member]
Derivative [Line Items]
Gain loss from components excluded from assessment of net investment hedge effectiveness net
0
0
0
0
Derivative instruments, gain reclassified from accumulated oci into income, effective portion, net
$ 32,000,000
$ 69,000,000
$ 14,000,000
$ 30,000,000
$ in Millions3 Months Ended
6 Months Ended
Derivative Instruments, Gain (Loss) [Line Items]
Loans
$ 2,672
$ 2,345
$ 5,274
$ 4,573
Investment Securities
629
557
1,249
1,069
Borrowed Funds
484
408
965
752
Other
367
334
675
579
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | Borrowed Funds [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Hedged items
(523)
100
(797)
470
Derivatives
485
(125)
713
(495)
Amounts related to interest settlements on derivatives
9
7
20
33
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | Investment Securities [Member] | Interest Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Hedged items
116
(24)
174
(114)
Derivatives
(113)
27
(168)
119
Amounts related to interest settlements on derivatives
5
1
10
(2)
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | Loans [Member] | Interest Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of derivative gains (losses) reclassified from AOCI
(12)
11
(20)
37
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | Other [Member] | Noninterest Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of derivative gains (losses) reclassified from AOCI
3
5
18
7
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | Investment Securities [Member] | Interest Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of derivative gains (losses) reclassified from AOCI
$ 1
$ 3
$ 2
$ 7
$ in Millions
Investment Securities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Carrying Value of the Hedged Items
$ 6,836
$ 6,216
Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items
63
(103)
Borrowed Funds [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Carrying Value of the Hedged Items
27,960
27,121
Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items
537
(260)
Borrowed Funds Discontinued Relationships [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Cumulative Fair Value Hedge Adjustment included in Carrying Value of Hedged Items
$ (400)
$ (500)
$ in Millions3 Months Ended
6 Months Ended
Derivative [Line Items]
Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
$ 279
$ 167
$ 374
$ 136
Mortgage Banking [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
218
(18)
346
(132)
Customer Contracts [Member]
Derivative [Line Items]
Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
71
38
92
138
Customer Contracts [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
41
25
39
81
Customer Contracts [Member] | Foreign Exchange And Other Contract [Member]
Derivative [Line Items]
Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
30
13
53
57
Other Risk Management Activity [Member] | Foreign Exchange And Other Contract [Member]
Derivative [Line Items]
Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
$ (10)
$ 147
$ (64)
$ 130
$ in Millions
Offsetting Derivative Assets [Abstract]
Derivative Asset, Gross Fair Value
$ 3,546
$ 2,081
Derivative Asset, Fair Value Offset Amount
642
688
Derivative Asset, Cash Collateral
673
341
Derivative Asset, Net
2,231
1,052
Derivative Asset, Securities Collateral Held Under Master Netting Agreements
176
25
Derivative Asset, Fair Value, Amount Offset Against Collateral
2,055
1,027
Offsetting Derivative Liabilities [Abstract]
Derivative Liability, Gross Fair Value
2,002
2,290
Derivative Liability, Fair Value Offset Amount
642
688
Derivative Liability, Cash Collateral
756
539
Derivative Liability, Net
604
1,063
Derivative Liability, Fair Value of Collateral
11
Derivative Liability, Fair Value, Amount Offset Against Collateral
604
1,052
Interest Rate Contracts [Member] | Over the Counter Cleared [Member]
Offsetting Derivative Assets [Abstract]
Derivative Asset, Gross Fair Value
23
29
Derivative Asset, Net
23
29
Derivative Asset, Fair Value, Amount Offset Against Collateral
23
29
Offsetting Derivative Liabilities [Abstract]
Derivative Liability, Gross Fair Value
28
24
Derivative Liability, Net
28
24
Derivative Liability, Fair Value, Amount Offset Against Collateral
28
24
Interest Rate Contracts [Member] | Over the Counter [Member]
Offsetting Derivative Assets [Abstract]
Derivative Asset, Gross Fair Value
3,089
1,472
Derivative Asset, Fair Value Offset Amount
383
450
Derivative Asset, Cash Collateral
638
117
Derivative Asset, Net
2,068
905
Derivative Asset, Securities Collateral Held Under Master Netting Agreements
176
25
Derivative Asset, Fair Value, Amount Offset Against Collateral
1,892
880
Offsetting Derivative Liabilities [Abstract]
Derivative Liability, Gross Fair Value
1,355
1,496
Derivative Liability, Fair Value Offset Amount
514
557
Derivative Liability, Cash Collateral
695
489
Derivative Liability, Net
146
450
Derivative Liability, Fair Value of Collateral
11
Derivative Liability, Fair Value, Amount Offset Against Collateral
146
439
Commodity Contract [Member]
Offsetting Derivative Assets [Abstract]
Derivative Asset, Gross Fair Value
221
311
Derivative Asset, Fair Value Offset Amount
134
76
Derivative Asset, Cash Collateral
32
210
Derivative Asset, Net
55
25
Derivative Asset, Fair Value, Amount Offset Against Collateral
55
25
Offsetting Derivative Liabilities [Abstract]
Derivative Liability, Gross Fair Value
217
305
Derivative Liability, Fair Value Offset Amount
73
56
Derivative Liability, Cash Collateral
1
17
Derivative Liability, Net
143
232
Derivative Liability, Fair Value, Amount Offset Against Collateral
143
232
Foreign Exchange And Other Contract [Member]
Offsetting Derivative Assets [Abstract]
Derivative Asset, Gross Fair Value
213
269
Derivative Asset, Fair Value Offset Amount
125
162
Derivative Asset, Cash Collateral
3
14
Derivative Asset, Net
85
93
Derivative Asset, Fair Value, Amount Offset Against Collateral
85
93
Offsetting Derivative Liabilities [Abstract]
Derivative Liability, Gross Fair Value
402
465
Derivative Liability, Fair Value Offset Amount
55
75
Derivative Liability, Cash Collateral
60
33
Derivative Liability, Net
287
357
Derivative Liability, Fair Value, Amount Offset Against Collateral
$ 287
$ 357
$ / shares in Units, shares in Millions, $ in Millions3 Months Ended
6 Months Ended
Earnings Per Share [Abstract]
Net income
$ 1,374
$ 1,356
$ 2,645
$ 2,595
Net income attributable to noncontrolling interests
12
10
22
20
Preferred stock dividends
55
55
118
118
Preferred stock discount accretion and redemptions
1
1
2
2
Net income attributable to common shares
1,306
1,290
2,503
2,455
Less: Dividends and undistributed earnings allocated to participating securities
4
5
9
10
Net income attributable to basic common shares
$ 1,302
$ 1,285
$ 2,494
$ 2,445
Basic weighted-average common shares outstanding (in shares)
451
469
453
471
Basic earnings per common share (in dollars per share)
$ 2.89
$ 2.74
$ 5.51
$ 5.19
Less: Impact of BlackRock earnings per share dilution
$ 2
$ 3
$ 5
$ 5
Net income attributable to diluted common shares
$ 1,300
$ 1,282
$ 2,489
$ 2,440
Dilutive potential common shares (in shares)
1
3
1
3
Diluted weighted-average common shares outstanding (in shares)
452
472
454
474
Diluted earnings per common share (in dollars per share)
$ 2.88
$ 2.72
$ 5.49
$ 5.15
shares in Millions, $ in Millions3 Months Ended
6 Months Ended
[1]
Common Stock [Abstract]
Equity, Beginning Balance
$ 48,575.0
$ 47,035.0
$ 47,770.0
Net income
1,374.0
1,356.0
2,645.0
$ 2,595.0
Other comprehensive income (loss), net of tax
636.0
(241.0)
1,356.0
(798.0)
Dividends, Cash [Abstract]
Common
(432.0)
(355.0)
(868.0)
(713.0)
Preferred
(55.0)
(55.0)
(118.0)
(118.0)
Common Stock Activity, Net
10.0
9.0
10.0
9.0
Treasury stock activity
(782.0)
(814.0)
(1,403.0)
(1,439.0)
Other
55.0
40.0
(73.0)
(130.0)
Equity, Ending Balance
49,381.0
46,975.0
49,381.0
46,975.0
Preferred stock (less than)
$ 0.5
[1]
$ 0.5
$ 0.5
[1]
$ 0.5
$ 0.5
$ 0.5
Accounting Standards Update 2016-02 [Member]
Equity [Line Items]
Cumulative effect of new accounting principle in period of adoption
$ 62.0
Common Stock, par value $5.00
Common Stock [Abstract]
Beginning Balance (in shares)
452
470
457
Treasury stock activity, shares
(5)
(5)
(10)
(8)
Ending Balance, (in shares)
447
465
447
465
Equity, Beginning Balance
$ 2,711.0
$ 2,710.0
$ 2,711.0
Dividends, Cash [Abstract]
Equity, Ending Balance
2,711.0
2,710.0
2,711.0
$ 2,710.0
Capital Surplus - Preferred Stock [Member]
Common Stock [Abstract]
Equity, Beginning Balance
3,990.0
3,986.0
3,986.0
Dividends, Cash [Abstract]
Preferred stock discount accretion
1.0
1.0
2.0
2.0
Other
3.0
Equity, Ending Balance
3,991.0
3,987.0
3,991.0
3,987.0
Capital Surplus - Common Stock and Other [Member]
Common Stock [Abstract]
Equity, Beginning Balance
12,183.0
12,241.0
12,291.0
Dividends, Cash [Abstract]
Common Stock Activity, Net
10.0
9.0
10.0
9.0
Treasury stock activity
(1.0)
(32.0)
9.0
(26.0)
Other
65.0
45.0
(53.0)
(109.0)
Equity, Ending Balance
12,257.0
12,263.0
12,257.0
12,263.0
Retained Earnings [Member]
Common Stock [Abstract]
Equity, Beginning Balance
39,742.0
36,266.0
38,919.0
Net income
1,362.0
1,346.0
2,623.0
2,575.0
Dividends, Cash [Abstract]
Common
(432.0)
(355.0)
(868.0)
(713.0)
Preferred
(55.0)
(55.0)
(118.0)
(118.0)
Preferred stock discount accretion
(1.0)
(1.0)
(2.0)
(2.0)
Equity, Ending Balance
40,616.0
37,201.0
40,616.0
37,201.0
Retained Earnings [Member] | Accounting Standards Update 2016-02 [Member]
Equity [Line Items]
Cumulative effect of new accounting principle in period of adoption
$ 62.0
Accumulated Other Comprehensive Income (Loss) [Member]
Common Stock [Abstract]
Equity, Beginning Balance
(5.0)
(699.0)
(725.0)
Other comprehensive income (loss), net of tax
636.0
(241.0)
1,356.0
(798.0)
Dividends, Cash [Abstract]
Equity, Ending Balance
631.0
(940.0)
631.0
(940.0)
Treasury Stock [Member]
Common Stock [Abstract]
Equity, Beginning Balance
(10,085.0)
(7,535.0)
(9,454.0)
Dividends, Cash [Abstract]
Treasury stock activity
(781.0)
(782.0)
(1,412.0)
(1,413.0)
Equity, Ending Balance
(10,866.0)
(8,317.0)
(10,866.0)
(8,317.0)
Noncontrolling Interest [Member]
Common Stock [Abstract]
Equity, Beginning Balance
39.0
66.0
42.0
Net income
12.0
10.0
22.0
20.0
Dividends, Cash [Abstract]
Other
(10.0)
(5.0)
(23.0)
(21.0)
Equity, Ending Balance
$ 41.0
$ 71.0
$ 41.0
$ 71.0
[1]
3 Months Ended
6 Months Ended
Common Stock, par value $5.00
Class of Stock [Line Items]
Cash dividends declared, Common, per share (in dollars per share)
$ 0.95
$ 0.75
$ 1.90
$ 1.50
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Cash dividends declared, Preferred, per share (in dollars per share)
0.45
0.45
0.90
0.90
Series O Preferred Stock [Member]
Class of Stock [Line Items]
Cash dividends declared, Preferred, per share (in dollars per share)
3,375
3,375
Series P Preferred Stock [Member]
Class of Stock [Line Items]
Cash dividends declared, Preferred, per share (in dollars per share)
1,532
1,532
3,063
3,063
Series Q Preferred Stock [Member]
Class of Stock [Line Items]
Cash dividends declared, Preferred, per share (in dollars per share)
1,344
1,344
2,688
2,688
Series R Preferred Stock [Member]
Class of Stock [Line Items]
Cash dividends declared, Preferred, per share (in dollars per share)
2,425
2,425
2,425
2,425
Series S Preferred Stock [Member]
Class of Stock [Line Items]
Cash dividends declared, Preferred, per share (in dollars per share)
$ 2,500
$ 2,500
$ 2,500
$ 2,500
Subsequent Event [Member]
Class of Stock [Line Items]
Cash dividends declared, Common, per share (in dollars per share)
$ 1.15
$ in Millions3 Months Ended
6 Months Ended
Net Unrealized Gains Losses on Non Otti Securities [Abstract]
Increase in net unrealized gains (losses) on non-OTTI securities
$ 713
$ (161)
$ 1,353
$ (806)
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities in interest income
3
2
6
6
Less: Net gains (losses) realized on sales of non-OTTI securities reclassified to noninterest income
16
(8)
14
(11)
Net increase (decrease), pre-tax
694
(155)
1,333
(801)
Effect of income taxes
(159)
36
(306)
186
Net increase (decrease), after-tax
535
(119)
1,027
(615)
Net Unrealized Gains Losses On Otti Securities [Abstract]
Increase in net unrealized gains (losses) on OTTI securities
3
9
17
Net increase (decrease), pre-tax
3
9
17
Effect of income taxes
(1)
(2)
(5)
Net increase (decrease), after-tax
2
7
12
Net unrealized gains (losses) on cash flow hedge derivatives [Abstract]
Increase in net unrealized gains (losses) on cash flow hedge derivatives
246
354
Increase in net unrealized gains (losses) on cash flow hedge derivatives
(94)
(255)
Less: Net gains (losses) realized as a yield adjustment reclassified to loan interest income
(12)
(20)
Less: Net gains (losses) realized as a yield adjustment reclassified to loan interest income
11
37
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income
1
2
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income
3
7
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income
3
18
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income
5
7
Net increase (decrease), pre-tax
254
354
Net increase (decrease), pre-tax
254
(113)
354
(306)
Effect of income taxes
(58)
(81)
Effect of income taxes
26
70
Net increase (decrease), after-tax
196
273
Net increase (decrease), after-tax
196
(87)
(236)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract]
Net pension and other postretirement benefit plan activity
(89)
5
54
66
Amortization of actuarial loss (gain) reclassified to other noninterest expense
4
1
5
2
Amortization of prior service cost (credit) reclassified to other noninterest expense
1
2
1
Net increase (decrease), pre-tax
(84)
6
61
69
Effect of income taxes
19
(1)
(14)
(16)
Net increase (decrease), after-tax
(65)
5
47
53
Other Comprehensive Income Other Adjustments [Abstract]
PNC’s portion of BlackRock’s OCI
(35)
(37)
(6)
(15)
Net investment hedge derivatives
32
69
14
30
Foreign currency translation adjustments and other
(27)
(67)
(4)
(23)
Net increase (decrease), pre-tax
(30)
(35)
4
(8)
Effect of income taxes
(7)
(2)
(4)
Net increase (decrease), after-tax
(30)
(42)
2
(12)
Other comprehensive income (loss), before tax and net of reclassifications into Net income
834
(294)
1,761
(1,029)
Total other comprehensive income (loss), tax effect
(198)
53
(405)
231
Other comprehensive income (loss), after tax and net of reclassifications into Net income
$ 636
$ (241)
$ 1,356
$ (798)
$ in Millions3 Months Ended
6 Months Ended
Net Unrealized Gains Losses on Non Otti Securities [Abstract]
Net unrealized gains (losses) on non-OTTI securities, after-tax, Beginning Balance
$ 208
$ (375)
$ (284)
$ 62
Other comprehensive income (loss), non otti securities adjustment, after tax
535
(119)
1,027
(615)
Net unrealized gains (losses) on non-OTTI securities, after-tax, Ending Balance
743
(494)
743
(494)
Net Unrealized Gains Losses On Otti Securities [Abstract]
Net unrealized gains (losses) on OTTI securities, after tax, Beginning Balance
(211)
(225)
(204)
(215)
Other comprehensive income loss otti securities adjustment after tax
2
7
12
Net unrealized gains (losses) on OTTI securities, after tax, Ending Balance
(211)
(227)
(211)
(227)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax [Abstract]
Net unrealized gains (losses) on cash flow hedge derivatives, after-tax, Beginning balance
124
35
47
151
Other comprehensive income (loss), derivatives qualifying as hedges, net of tax
196
(87)
(236)
Other comprehensive income (loss), cash flow hedge, gain (loss), after reclassification and tax
196
273
Net unrealized gains (losses) on cash flow hedge derivatives, after-tax, Ending balance
320
(52)
320
(52)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract]
Pension and other postretirement benefit plan adjustments, after tax, Beginning Balance
418
494
530
446
Pension and other postretirement benefit plan adjustments, net activity, After Tax
(65)
5
47
53
Pension and other postretirement benefit plan adjustments, after tax, Ending Balance
483
489
483
489
Other Comprehensive Income Other Adjustments [Abstract]
Other, after tax, Beginning balance
(130)
(90)
(162)
(130)
Total other, net activity, after tax
(30)
(42)
2
(12)
Other, after tax, Ending balance
(160)
(132)
(160)
(132)
Other Comprehensive Income (Loss) Total [Abstract]
Accumulated other comprehensive income (loss), net of tax, beginning balance
(5)
(699)
(725)
(148)
Other comprehensive income (loss), after tax and net of reclassifications into Net income
636
(241)
1,356
(798)
Accumulated other comprehensive income (loss), net of tax, ending balance
631
(940)
631
(940)
Accumulated other comprehensive income (loss), net of tax, adjusted balance
$ (142)
Net unrealized gains (losses) on non-OTTI securities [Member] | Accounting Standards Update 2018-02 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of ASU adoptions
59
Net unrealized gains (losses) on cash flow hedge derivatives [Member] | Accounting Standards Update 2018-02 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of ASU adoptions
33
Pension and other postretirement benefit plan adjustments [Member] | Accounting Standards Update 2018-02 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of ASU adoptions
(96)
Other [Member] | Accounting Standards Update 2018-02 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of ASU adoptions
10
Total [Member]
Other Comprehensive Income (Loss) Total [Abstract]
Other comprehensive income (loss), after tax and net of reclassifications into Net income
$ 636
$ (241)
$ 1,356
$ (798)
Total [Member] | Accounting Standards Update 2018-02 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of ASU adoptions
$ 6
$ in Millions1 Months Ended
DD Growth Premium Master Fund [Member]
Loss Contingencies [Line Items]
New claims filed, number | indemnification_claim
3
Alleged claims for loss in net asset value of fund
$ 283
Alleged claims for certain subscriptions paid into fund
$ 134
SEC Schedule, 12-09, Reserve, Legal [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Range of possible loss not accrued
$ 100
Subsequent Event [Member] | Pre-need Funeral Arrangements [Member]
Loss Contingencies [Line Items]
Litigation interest
$ 15
Subsequent Event [Member] | Pre-need Funeral Arrangements [Member] | Compensatory Damages [Member]
Loss Contingencies [Line Items]
Damages awarded
72
Subsequent Event [Member] | Pre-need Funeral Arrangements [Member] | Punitive Damages [Member]
Loss Contingencies [Line Items]
Damages awarded
$ 15
$ in Millions
Other Commitments [Line Items]
Commitments
$ 191,899
$ 181,612
Commitments to extend credit [Member]
Other Commitments [Line Items]
Commitments
178,852
169,278
Commitments to extend credit [Member] | Total commercial lending [Member]
Other Commitments [Line Items]
Commitments
126,742
120,165
Commitments to extend credit [Member] | Home Equity Line of Credit [Member]
Other Commitments [Line Items]
Commitments
17,075
16,944
Commitments to extend credit [Member] | Credit Card [Member]
Other Commitments [Line Items]
Commitments
28,964
27,100
Commitments to extend credit [Member] | Other [Member]
Other Commitments [Line Items]
Commitments
6,071
5,069
Standby letters of credit [Member]
Other Commitments [Line Items]
Commitments
9,319
8,655
Standby letters of credit [Member] | Remarketing Programs [Member]
Other Commitments [Line Items]
Commitments
3,800
3,700
Reinsurance Agreements [Member]
Other Commitments [Line Items]
Commitments
1,464
1,549
Reinsurance Agreements [Member] | Accidental Death and Dismemberment [Member]
Other Commitments [Line Items]
Maximum Exposure
1,300
1,300
Reinsurance Agreements [Member] | Credit Life Accident and Health [Member]
Other Commitments [Line Items]
Maximum Exposure
200
200
Standby bond purchase agreements [Member]
Other Commitments [Line Items]
Commitments
1,245
1,000
Other commitments [Member]
Other Commitments [Line Items]
Commitments
1,019
1,130
Other commitments [Member] | Investments in qualified affordable housing projects [Member]
Other Commitments [Line Items]
Commitments
$ 500
$ 500
$ in Billions6 Months Ended
Loss Contingencies [Line Items]
Internal credit ratings (as a percentage of portfolio) - Pass
98.00%
Internal credit ratings (as a percentage of portfolio) - Criticized
2.00%
Standby letters of credit - Assets securing certain specifically identified standby letters of credit
$ 1.0
Standby letters of credit and participations in standby letters of credit - Liability carrying amount
$ 0.2
Minimum [Member]
Loss Contingencies [Line Items]
Letter of credit commitment, term
1 year
Maximum [Member]
Loss Contingencies [Line Items]
Letter of credit commitment, term
6 years
$ in Millions6 Months Ended
Segment Reporting Information [Line Items]
Segment reporting, number of segments | segment
4
BlackRock [Member]
Segment Reporting Information [Line Items]
PNC's economic interest in BlackRock
22.00%
Proceeds from dividends received | $
$ 230
$ 201
$ in Millions3 Months Ended
6 Months Ended
Segment Reporting Information [Line Items]
Net interest income
$ 2,498
$ 2,413
$ 4,973
$ 4,774
Noninterest income
1,941
1,911
3,752
3,661
Total revenue
4,439
4,324
8,725
8,435
Provision for credit losses (benefit)
180
80
369
172
Depreciation and amortization
257
237
491
470
Other noninterest expense
2,354
2,347
4,698
4,641
Income before income taxes and noncontrolling interests
1,648
1,660
3,167
3,152
Income taxes (benefit)
274
304
522
557
Net income
1,374
1,356
2,645
2,595
Average Assets
396,962
375,627
391,461
375,949
Retail Banking [Member]
Segment Reporting Information [Line Items]
Net interest income
1,376
1,277
2,725
2,495
Noninterest income
657
678
1,252
1,313
Total revenue
2,033
1,955
3,977
3,808
Provision for credit losses (benefit)
81
72
209
141
Depreciation and amortization
59
47
110
92
Other noninterest expense
1,468
1,474
2,885
2,885
Income before income taxes and noncontrolling interests
425
362
773
690
Income taxes (benefit)
100
88
184
167
Net income
325
274
589
523
Average Assets
92,350
89,021
91,805
88,879
Corporate & Institutional Banking [Member]
Segment Reporting Information [Line Items]
Net interest income
897
877
1,774
1,738
Noninterest income
661
635
1,237
1,182
Total revenue
1,558
1,512
3,011
2,920
Provision for credit losses (benefit)
100
15
171
56
Depreciation and amortization
50
45
100
93
Other noninterest expense
648
623
1,284
1,228
Income before income taxes and noncontrolling interests
760
829
1,456
1,543
Income taxes (benefit)
158
177
302
328
Net income
602
652
1,154
1,215
Average Assets
163,897
153,619
160,551
152,769
Asset Management Group [Member]
Segment Reporting Information [Line Items]
Net interest income
68
72
138
146
Noninterest income
286
222
503
448
Total revenue
354
294
641
594
Provision for credit losses (benefit)
7
(1)
Depreciation and amortization
28
13
40
25
Other noninterest expense
221
218
439
431
Income before income taxes and noncontrolling interests
105
56
163
138
Income taxes (benefit)
25
13
38
33
Net income
80
43
125
105
Average Assets
7,150
7,469
7,204
7,484
BlackRock [Member]
Segment Reporting Information [Line Items]
Noninterest income
224
232
457
467
Total revenue
224
232
457
467
Income before income taxes and noncontrolling interests
224
232
457
467
Income taxes (benefit)
35
37
71
75
Net income
189
195
386
392
Average Assets
8,184
7,811
8,184
7,811
Other [Member]
Segment Reporting Information [Line Items]
Net interest income
157
187
336
395
Noninterest income
113
144
303
251
Total revenue
270
331
639
646
Provision for credit losses (benefit)
(1)
(14)
(10)
(25)
Depreciation and amortization
120
132
241
260
Other noninterest expense
17
32
90
97
Income before income taxes and noncontrolling interests
134
181
318
314
Income taxes (benefit)
(44)
(11)
(73)
(46)
Net income
178
192
391
360
Average Assets
$ 125,381
$ 117,707
$ 123,717
$ 119,006
$ in Millions3 Months Ended
6 Months Ended
Disaggregation of Revenue [Line Items]
Noninterest income
$ 1,941
$ 1,911
$ 3,752
$ 3,661
Retail Banking [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
657
678
1,252
1,313
Retail Banking [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
545
537
1,068
1,046
Retail Banking [Member] | Out-of-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
112
141
184
267
Retail Banking [Member] | Deposit Account Fees [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
154
145
302
289
Retail Banking [Member] | Debit Card Fees [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
136
127
260
244
Retail Banking [Member] | Brokerage Fees [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
86
88
175
174
Retail Banking [Member] | Merchant Services [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
56
55
104
102
Retail Banking [Member] | Net Credit Card Fees [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
51
49
99
94
Interchange Fees
126
115
238
217
Credit Card Reward Costs
75
66
139
123
Retail Banking [Member] | Other [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
$ 62
$ 73
$ 128
$ 143
$ in Millions3 Months Ended
6 Months Ended
Disaggregation of Revenue [Line Items]
Noninterest income
$ 1,941
$ 1,911
$ 3,752
$ 3,661
Corporate & Institutional Banking [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
661
635
1,237
1,182
Corporate & Institutional Banking [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
404
372
772
709
Corporate & Institutional Banking [Member] | Out-of-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
257
263
465
473
Corporate & Institutional Banking [Member] | Treasury Management Fees [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
212
197
411
382
Corporate & Institutional Banking [Member] | Capital Markets Fees [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
149
135
276
250
Corporate & Institutional Banking [Member] | Commercial Mortgage Banking Activities [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
24
21
49
42
Corporate & Institutional Banking [Member] | Other [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
$ 19
$ 19
$ 36
$ 35
$ in Millions3 Months Ended
6 Months Ended
Disaggregation of Revenue [Line Items]
Noninterest income
$ 1,941
$ 1,911
$ 3,752
$ 3,661
Asset Management Group [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
286
222
503
448
Asset Management Group [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
221
220
433
442
Asset Management Group [Member] | Out-of-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
65
2
70
6
Asset Management Group [Member] | Personal [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
157
152
304
306
Asset Management Group [Member] | Institutional [Member] | In-Scope [Member]
Disaggregation of Revenue [Line Items]
Noninterest income
$ 64
$ 68
$ 129
$ 136
$ in Millions6 Months Ended
Lessee, Lease, Description [Line Items]
Operating and financing lease, renewal term, maximum
99 years
Operating lease asset
$ 2,000
Operating lease liability
$ 2,157
Minimum [Member]
Lessee, Lease, Description [Line Items]
Operating and finance lease, lease term
1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Operating and finance lease, lease term
62 years
$ in Millions
Operating Leases
Remainder of 2019
$ 178
2020
345
2021
319
2022
283
2023
251
After 2023
1,057
Total operating lease payments
2,433
Less: Interest
276
Operating Lease, Liability
$ 2,157
Operating Leases Commitments
2019
$ 374
2020
346
2021
308
2022
258
2023
228
Due thereafter
$ 941
Leases [Abstract]
Weighted-average remaining lease term, Operating leases (years)
9 years
Weighted-average discount rate, Operating leases
2.53%
600 Million Senior Note Maturity July 22, 2022 [Member]
Subsequent Event [Line Items]
Debt Issued
$ 600,000,000
Debt instrument, maturity date
Jul. 22, 2022
Interest rate
2.232%
600 Million Senior Note Maturity July 22, 2022 [Member] | London Interbank Offered Rate (LIBOR) [Member]
Subsequent Event [Line Items]
Variable rate basis
3-month LIBOR rate
Basis spread on variable rate
0.44%
900 Million Senior Note Maturing July 22, 2022 [Member]
Subsequent Event [Line Items]
Debt Issued
$ 900,000,000
Debt instrument, maturity date
Jul. 22, 2022
900 Million Senior Note Maturing July 22, 2022 [Member] | London Interbank Offered Rate (LIBOR) [Member]
Subsequent Event [Line Items]
Variable rate basis
3-month LIBOR rate
Basis spread on variable rate
0.45%
1 Billion Senior Note Maturity July 23, 2036 [Member] | Parent Company [Member]
Subsequent Event [Line Items]
Debt Issued
$ 1,000,000,000.0
Debt instrument, maturity date
Jul. 23, 2026
Interest rate
2.60%
Label
Element
Value
Accumulated Other Comprehensive Income Loss Available For Sale Non Otti Securities Adjustment Net Of Tax
pnc_AccumulatedOtherComprehensiveIncomeLossAvailableForSaleNonOttiSecuritiesAdjustmentNetOfTax
$ 121,000,000
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax
us-gaap_AccumulatedOtherComprehensiveIncomeLossDefinedBenefitPensionAndOtherPostretirementPlansNetOfTax
(542,000,000)
Accumulated Other Comprehensive Income Loss Available For Sale Otti Securities Adjustment Net Of Tax
pnc_AccumulatedOtherComprehensiveIncomeLossAvailableForSaleOttiSecuritiesAdjustmentNetOfTax
215,000,000
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax
us-gaap_AccumulatedOtherComprehensiveIncomeLossCumulativeChangesInNetGainLossFromCashFlowHedgesEffectNetOfTax
184,000,000
Accumulated Other Comprehensive Income Loss Other Net Of Tax End Balance
pnc_AccumulatedOtherComprehensiveIncomeLossOtherNetOfTaxEndBalance
(120,000,000)
Preferred Stock Including Additional Paid in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
3,986,000,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
3,985,000,000
Retained Earnings [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
35,459,000,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
38,981,000,000
Common Stock Including Additional Paid in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
12,291,000,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
12,389,000,000
Noncontrolling Interest [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
72,000,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
42,000,000
AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
(725,000,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
(142,000,000)
Common Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
2,710,000,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
$ 2,711,000,000
Common Stock, Shares, Outstanding
us-gaap_CommonStockSharesOutstanding
473,000,000
Common Stock, Shares, Outstanding
us-gaap_CommonStockSharesOutstanding
457,000,000
Treasury Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
$ (9,454,000,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
$ (6,904,000,000)
"
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