Goodwill and Mortgage Servicing Rights (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill by Business Segment

Allocations of Goodwill by business segment during 2021, 2020 and 2019 follow:

Table 61: Goodwill by Business Segment

In millions	Retail Banking		Corporate & Institutional Banking		Asset Management Group		Total
Balance as of December 31, 2021	$	6,473	$	4,254	$	189	$	10,916
BBVA acquisition	678		796		125		1,599
Other			84				84
Balance as of December 31, 2020	$	5,795	$	3,374	$	64	$	9,233
Balance as of December 31, 2019	$	5,795	$	3,374	$	64	$	9,233

Commercial Mortgage Servicing Rights

Changes in the commercial MSRs follow:

Table 62: Commercial Mortgage Servicing Rights

In millions	2021		2020		2019
January 1	$	569	$	649	$	726
Additions:
From loans sold with servicing retained	87		100		53
Purchases	41		44		103
Changes in fair value due to:
Time and payoffs (a)	(119)		(115)		(146)
Other (b)	162		(109)		(87)
December 31	$	740	$	569	$	649
Related unpaid principal balance at December 31	$	272,556	$	243,960	$	216,992
Servicing advances at December 31	$	463	$	437	$	157

(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.

Mortgage Servicing Rights

Changes in the residential MSRs follow:

Table 63: Residential Mortgage Servicing Rights

In millions	2021		2020		2019
January 1	$	673	$	995	$	1,257
Additions:
BBVA Acquisition	35
From loans sold with servicing retained	87		45		36
Purchases	411		208		114
Changes in fair value due to:
Time and payoffs (a)	(320)		(198)		(162)
Other (b)	192		(377)		(250)
December 31	$	1,078	$	673	$	995
Unpaid principal balance of loans serviced for others at December 31	$	132,953	$	120,778	$	120,464
Servicing advances at December 31	$	176	$	143	$	111

(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 from market-driven changes in interest rates.

Commercial Mortgage Loan Servicing Assets - Key Valuation Assumptions

The following tables set forth the fair value of commercial and residential MSRs and the sensitivity analysis of the hypothetical effect on the fair value of MSRs to immediate adverse changes of 10% and 20% in those assumptions:

Table 64: Commercial Mortgage Servicing Rights – Key Valuation Assumptions

Dollars in millions	December 31 2021			December 31 2020
Fair value	$	740		$	569
Weighted-average life (years)	4.2			4.4
Weighted-average constant prepayment rate	5.49		%	4.87		%
Decline in fair value from 10% adverse change	$	12		$	9
Decline in fair value from 20% adverse change	$	21		$	18
Effective discount rate	7.75		%	7.33		%
Decline in fair value from 10% adverse change	$	20		$	15
Decline in fair value from 20% adverse change	$	40		$	31

Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions

Table 65: Residential Mortgage Servicing Rights – Key Valuation Assumptions

Dollars in millions	December 31 2021			December 31 2020
Fair value	$	1,078		$	673
Weighted-average life (years)	5.7			3.8
Weighted-average constant prepayment rate	12.63		%	21.13		%
Decline in fair value from 10% adverse change	$	46		$	41
Decline in fair value from 20% adverse change	$	89		$	82
Weighted-average option adjusted spread	857		bps	922		bps
Decline in fair value from 10% adverse change	$	31		$	20
Decline in fair value from 20% adverse change	$	60		$	38