PARENT COMPANY FINANCIALS

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

PARENT COMPANY FINANCIALS

PARENT COMPANY FINANCIALS

Condensed Statements of Operations

	Year Ended December 31,
(in millions)	2017			2016			2015
OPERATING INCOME:
Income from consolidated subsidiaries and excluding equity in undistributed earnings:
Dividends from banking subsidiaries		$1,055			$555			$345
Interest	43			53			54
Management and service fees	31			26			20
Income from nonbank subsidiaries and excluding equity in undistributed earnings:
Dividends from nonbank subsidiaries	4			—			—
Interest	1			—			—
Equity securities gains	1			3			3
All other operating income	1			7			4
Total operating income	1,136			644			426
OPERATING EXPENSE:
Salaries and employee benefits	40			37			15
Interest expense	97			99			108
All other expenses	22			15			38
Total operating expense	159			151			161
Income before taxes and undistributed income	977			493			265
Income taxes	(10		)	(26		)	(29		)
Income before undistributed earnings of subsidiaries	987			519			294
Equity in undistributed earnings of subsidiaries:
Bank	655			522			543
Nonbank	10			4			3
Net income		$1,652			$1,045			$840
Other comprehensive (loss) income, net of income taxes:
Net pension plan activity arising during the period		($1	)		($2	)		$1
Net unrealized derivative instrument gains (losses) arising during the period	1			(8		)	2
Net unrealized securities losses arising during the period	—			—			(2		)
Other comprehensive (loss) income activity of the Parent Company, net of income taxes	—			(10		)	1
Other comprehensive loss activity of Bank subsidiaries, net of income taxes	(7		)	(271		)	(16		)
Total other comprehensive loss, net of income taxes	(7		)	(281		)	(15		)
Total comprehensive income		$1,645			$764			$825

In accordance with federal and state banking regulations, dividends paid by the Company’s banking subsidiaries to the Company are generally limited to the retained earnings of the respective banking subsidiaries unless specifically approved by the appropriate bank regulator. The Company declared and paid total common stock dividends of $322 million in 2017, $241 million in 2016, and $214 million in 2015. The Company also declared and paid preferred stock dividends of $14 million in 2017, $14 million in 2016 and $7 million in 2015.

Condensed Balance Sheets

(in millions)	December 31, 2017		December 31, 2016
ASSETS:
Cash and due from banks		$563		$671
Loans and advances to:
Bank subsidiaries	1,160		1,156
Nonbank subsidiaries	70		20
Investments in subsidiaries:
Bank subsidiaries	20,765		20,116
Nonbank subsidiaries	73		50
Other assets	125		128
TOTAL ASSETS		$22,756		$22,141
LIABILITIES:
Long-term borrowed funds due to:
Unaffiliated companies		$2,320		$2,318
Other liabilities	166		76
TOTAL LIABILITIES	2,486		2,394
TOTAL STOCKHOLDERS’ EQUITY	20,270		19,747
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$22,756		$22,141

Condensed Cash Flow Statements

	Year Ended December 31,
(in millions)	2017			2016			2015
OPERATING ACTIVITIES
Net income		$1,652			$1,045			$840
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	(11		)	5			49
Gain on sales of assets	(1		)	(3		)	(3		)
Equity in undistributed earnings of subsidiaries	(665		)	(526		)	(546		)
Increase (decrease) in other liabilities	99			(19		)	(48		)
Decrease (increase) in other assets	5			35			(16		)
Other operating, net	(1		)	(4		)	3
Total adjustments	(574		)	(512		)	(561		)
Net cash provided by operating activities	1,078			533			279
INVESTING ACTIVITIES
Proceeds from sales of securities available for sale	—			—			8
Investments in and advances to subsidiaries	(230		)	(40		)	(215		)
Repayment of investments in and advances to subsidiaries	167			588			376
Other investing, net	(1		)	(2		)	—
Net cash (used) provided by investing activities	(64		)	546			169
FINANCING ACTIVITIES
Proceeds from issuance of long-term borrowed funds	—			349			1,000
Repayments of long-term borrowed funds	—			(625		)	(750		)
Proceeds from issuance of common stock	34			22			27
Treasury stock purchased	(820		)	(430		)	(500		)
Net proceeds from issuance of preferred stock	—			—			247
Dividends declared and paid to common stockholders	(322		)	(241		)	(214		)
Dividends declared and paid to preferred stockholders	(14		)	(14		)	(7		)
Net cash used by financing activities	(1,122		)	(939		)	(197		)
(Decrease) increase in cash and due from banks	(108		)	140			251
Cash and due from banks at beginning of year	671			531			280
Cash and due from banks at end of year		$563			$671			$531