PARENT COMPANY FINANCIALS

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY FINANCIALS

NOTE 27 - PARENT COMPANY FINANCIALS

Condensed Balance Sheets

(dollars in millions)	December 31, 2023	December 31, 2022
ASSETS:
Cash and due from banks	$2,864	$1,821
Loans and advances to:
Bank subsidiary	1,152	1,153
Nonbank subsidiaries	154	135
Investments in subsidiaries:
Bank subsidiary	23,289	23,674
Nonbank subsidiaries	291	302
Other assets	194	182
Total assets	$27,944	$27,267
LIABILITIES:
Long-term borrowed funds	$3,344	$3,336
Other liabilities	258	241
Total liabilities	3,602	3,577
Total stockholders’ equity	24,342	23,690
Total liabilities and stockholders’ equity	$27,944	$27,267

Condensed Statements of Operations

	Year Ended December 31,
(dollars in millions)	2023	2022	2021
OPERATING INCOME:
Income from bank subsidiaries, excluding equity in undistributed income:
Dividends	$2,875	$450	$1,120
Interest	43	39	35
Management and service fees	69	69	64
Income from nonbank subsidiaries, excluding equity in undistributed income:
Dividends	—	43	57
Interest	8	3	2
All other operating income	1	1	1
Total operating income	2,996	605	1,279
OPERATING EXPENSE:
Salaries and employee benefits	39	43	36
Interest expense	129	125	119
All other expenses	31	28	28
Total operating expense	199	196	183
Income (loss) before taxes and undistributed income	2,797	409	1,096
Income tax expense (benefit)	(13)	(13)	(16)
Income before undistributed income of subsidiaries	2,810	422	1,112
Equity in undistributed income (losses) of subsidiaries:
Bank	(1,163)	1,724	1,188
Nonbank	(39)	(73)	19
Net income	$1,608	$2,073	$2,319
Total other comprehensive income (loss), net of income taxes(1)	802	(3,895)	(605)
Total comprehensive income (loss)	$2,410	($1,822)	$1,714

(1) See Consolidated Statements of Comprehensive Income for comprehensive income (loss) detail.

In accordance with federal and state banking regulations, dividends paid by CBNA to the Company are subject to certain limitations. See Note 25 for more information. Also, see Note 17 for more information regarding the Company’s common and preferred stock dividends.

Condensed Cash Flow Statements

	Year Ended December 31,
(dollars in millions)	2023	2022	2021
OPERATING ACTIVITIES
Net income	$1,608	$2,073	$2,319
Adjustments to reconcile net income to net change in cash due to operating activities:
Deferred income tax expense (benefit)	(4)	(11)	—
Equity in undistributed (income) losses of subsidiaries	1,202	(1,651)	(1,207)
Other, net	96	92	67
Net increase (decrease) in other liabilities	(17)	(7)	34
Net (increase) decrease in other assets	17	(44)	12
Net change due to operating activities	2,902	452	1,225
INVESTING ACTIVITIES
Investments in and advances to subsidiaries	(76)	(156)	(196)
Repayment of investments in and advances to subsidiaries	30	121	125
Acquisitions, net of cash acquired	—	(23)	(165)
Other investing, net	—	(1)	(1)
Net change due to investing activities	(46)	(59)	(237)
FINANCING ACTIVITIES
Proceeds from issuance of long-term borrowed funds	—	414	—
Repayments of long-term borrowed funds	—	(182)	(350)
Treasury stock purchased	(906)	(153)	(295)
Net proceeds from issuance of preferred stock	—	—	296
Redemption of preferred stock	—	—	(250)
Dividends paid to common stockholders	(808)	(779)	(670)
Dividends paid to preferred stockholders	(120)	(113)	(113)
Other financing, net	21	(25)	(20)
Net change due to financing activities	(1,813)	(838)	(1,402)
Net change in cash and due from banks	1,043	(445)	(414)
Cash and due from banks at beginning of year	1,821	2,266	2,680
Cash and due from banks at end of year	$2,864	$1,821	$2,266