Parent Company Financial Statements

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Parent Company Financial Statements

PARENT COMPANY FINANCIAL STATEMENTS

Parent Company
Condensed Balance Sheets
(dollars in millions)	December 31, 2022		December 31, 2021
Assets
Cash and due from banks	$	119	$	174
Interest-earning deposits at banks	3		6
Investment in marketable equity securities	93		98
Investment in banking subsidiary	9,935		4,987
Investment in other subsidiaries	34		—
Other assets	48		44
Total assets	$	10,232	$	5,309
Liabilities and Stockholders' Equity
Subordinated debt	$	454	$	453
Borrowings due to banking subsidiary	60		40
Other borrowings	—		68
Other liabilities	56		11
Total liabilities	570		572
Stockholders’ equity	9,662		4,737
Total liabilities and stockholders’ equity	$	10,232	$	5,309

Parent Company
Condensed Statements of Income
	Year ended December 31
(dollars in millions)	2022		2021		2020
Income
Dividends from banking subsidiary	$	1,410	$	173	$	230
Other (loss) income	(2)		36		33
Total income	1,408		209		263
Expenses
Interest expense	19		17		17
Other expenses	26		11		12
Total expenses	45		28		29
Income before income taxes and equity in undistributed net income of subsidiaries	1,363		181		234
Income tax expense	44		2		1
Income before equity in undistributed net income of subsidiaries	1,319		179		233
Equity in (distributed) undistributed net income of subsidiaries	(221)		368		259
Net income	1,098		547		492
Preferred stock dividends	50		18		14
Net income available to common stockholders	$	1,048	$	529	$	478

Parent Company
Condensed Statements of Cash Flows
	Year ended December 31
(dollars in millions)	2022		2021		2020
OPERATING ACTIVITIES
Net income	$	1,098	$	547	$	492
Adjustments to reconcile net income to cash provided by operating activities:
Distributed (undistributed) net income of subsidiaries	221		(368)		(259)
Deferred tax expense	48		—		—
Net amortization of premiums and discounts	1		1		1
Fair value adjustment on marketable equity securities, net	6		(34)		(29)
Stock based compensation expense	19		—		—
Net change in due to/from subsidiaries	—		4		(3)
Net change in other assets	(3)		7		(3)
Net change in other liabilities	(2)		3		(1)
Net cash provided by operating activities	1,388		160		198
INVESTING ACTIVITIES
Net decrease (increase) in interest-earning deposits at banks	3		(4)		1
Purchase of marketable equity securities	—		(2)		(333)
Proceeds from sales of marketable equity securities	—		30		353
Proceeds from sales, calls, and maturities of investment securities	—		2		1
Investment in subsidiaries	—		—		(423)
Net cash paid in acquisition	(51)		—		—
Net cash (used in) provided by investing activities	(48)		26		(401)
FINANCING ACTIVITIES
Repayment of short-term borrowings	—		—		(40)
Repayment of other borrowings	(68)		(20)		(33)
Net proceeds from issuance of subordinated debt	—		—		346
Proceeds from borrowings due to banking subsidiary	20		—		—
Net proceeds from issuance of preferred stock	—		—		340
Repurchase of Class A common stock	(1,240)		—		(334)
Cash dividends paid	(83)		(42)		(31)
Other financing activities	(24)		—		—
Net cash (used in) provided by financing activities	(1,395)		(62)		248
Net change in cash and due from banks	(55)		124		45
Cash and due from banks at beginning of year	174		50		5
Cash and due from banks at end of year	$	119	$	174	$	50
CASH PAYMENTS (REFUNDS) FOR:
Interest	$	18	$	17	$	13
(Refunds) payments for income taxes	(536)		810		107