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PARENT COMPANY FINANCIALS
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information Disclosure [Abstract]  
PARENT COMPANY FINANCIALS
PARENT COMPANY FINANCIALS
Condensed Statements of Operations
 
Year Ended December 31,
 (in millions)
2018
 
2017
 
2016
OPERATING INCOME:
 
 
 
 
 
Income from consolidated subsidiaries and excluding equity in undistributed earnings:
 
 
 
 
 
       Dividends from banking subsidiaries

$1,650

 

$1,055

 

$555

       Interest
46

 
43

 
53

       Management and service fees
22

 
31

 
26

Income from nonbank subsidiaries and excluding equity in undistributed earnings:
 
 
 
 
 
       Dividends from nonbank subsidiaries
5

 
4

 
—

       Interest
2

 
1

 
—

  Equity securities gains
—

 
1

 
3

  All other operating income
1

 
1

 
7

  Total operating income
1,726

 
1,136

 
644

OPERATING EXPENSE:
 
 
 
 
 
  Salaries and employee benefits
25

 
40

 
37

  Interest expense
89

 
97

 
99

  All other expenses
23

 
22

 
15

  Total operating expense
137

 
159

 
151

Income before taxes and undistributed income
1,589

 
977

 
493

  Income taxes
(13
)
 
(10
)
 
(26
)
Income before undistributed earnings of subsidiaries
1,602

 
987

 
519

Equity in undistributed earnings of subsidiaries:
 
 
 
 
 
  Bank
109

 
655

 
522

  Nonbank
10

 
10

 
4

Net income

$1,721

 

$1,652

 

$1,045

Other comprehensive income (loss), net of income taxes:
 
 
 
 
 
Net pension plan activity arising during the period

$5

 

($1
)
 

($2
)
Net unrealized derivative instrument gains (losses) arising during the period
2

 
1

 
(8
)
Other comprehensive income (loss) activity of the Parent Company, net of income taxes
7

 
—

 
(10
)
Other comprehensive loss activity of Bank subsidiaries, net of income taxes
(283
)
 
(7
)
 
(271
)
Total other comprehensive loss, net of income taxes
(276
)
 
(7
)
 
(281
)
Total comprehensive income

$1,445

 

$1,645

 

$764


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. Citizens declared and paid total common stock dividends of $471 million, $322 million and $241 million for the years ended December 31, 2018, 2017 and 2016, respectively. Citizens also declared and paid preferred stock dividends of $14 million for the years ended December 31, 2018, 2017 and 2016.
Condensed Balance Sheets
 (in millions)
December 31, 2018
 
December 31, 2017
ASSETS:
 
 
 
  Cash and due from banks

$961

 

$563

  Loans and advances to:
 
 
 
Bank subsidiaries
1,158

 
1,160

Nonbank subsidiaries
70

 
70

  Investments in subsidiaries:
 
 
 
Bank subsidiaries
20,590

 
20,765

Nonbank subsidiaries
83

 
73

  Other assets
117

 
125

TOTAL ASSETS

$22,979

 

$22,756

LIABILITIES:
 
 
 
  Long-term borrowed funds due to:
 
 
 
Unaffiliated companies

$1,987

 

$2,320

  Other liabilities
175

 
166

TOTAL LIABILITIES
2,162

 
2,486

TOTAL STOCKHOLDERS’ EQUITY
20,817

 
20,270

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$22,979

 

$22,756

Condensed Cash Flow Statements
 
Year Ended December 31,
 (in millions)
2018

 
2017

 
2016

OPERATING ACTIVITIES
 
 
 
 
 
Net income

$1,721

 

$1,652

 

$1,045

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Deferred income taxes
17

 
(11
)
 
5

Gain on sales of assets
—

 
(1
)
 
(3
)
Equity in undistributed earnings of subsidiaries
(120
)
 
(665
)
 
(526
)
Increase (decrease) in other liabilities
11

 
99

 
(19
)
(Increase) decrease in other assets
(7
)
 
5

 
35

Other operating, net
40

 
(1
)
 
(4
)
Total adjustments
(59
)
 
(574
)
 
(512
)
Net cash provided by operating activities
1,662

 
1,078

 
533

INVESTING ACTIVITIES
 
 
 
 
 
Investments in and advances to subsidiaries
—

 
(230
)
 
(40
)
Repayment of investments in and advances to subsidiaries
—

 
167

 
588

Other investing, net
(1
)
 
(1
)
 
(2
)
Net cash (used) provided by investing activities
(1
)
 
(64
)
 
546

FINANCING ACTIVITIES
 
 
 
 
 
Proceeds from issuance of long-term borrowed funds
—

 
—

 
349

Repayments of long-term borrowed funds
(333
)
 
—

 
(625
)
Proceeds from issuance of common stock
—

 
34

 
22

Treasury stock purchased
(1,025
)
 
(820
)
 
(430
)
Net proceeds from issuance of preferred stock
593

 
—

 
—

Dividends declared and paid to common stockholders
(471
)
 
(322
)
 
(241
)
Dividends declared and paid to preferred stockholders
(14
)
 
(14
)
 
(14
)
Other financing, net
(13
)
 
—

 
—

Net cash used by financing activities
(1,263
)
 
(1,122
)
 
(939
)
Increase (decrease) in cash and due from banks
398

 
(108
)
 
140

Cash and due from banks at beginning of year
563

 
671

 
531

Cash and due from banks at end of year

$961

 

$563

 

$671