Parent Company Financial Statements

12 Months Ended

Dec. 31, 2014

Parent Company Financial Statements

Parent Company Financial Statements

NOTE 17. Parent Company Financial Statements

Parent Company
Condensed Balance Sheets
			December 31,
			2014		2013
			(Dollars in millions)
Assets:
	Cash and due from banks		$	79	$	―
	Interest-bearing deposits with banks			7,612		5,727
	AFS securities at fair value			125		26
	HTM securities at amortized cost			23		35
	Investment in banking subsidiaries			22,711		22,314
	Investment in other subsidiaries			1,452		1,281
	Advances to / receivables from banking subsidiaries			63		106
	Advances to / receivables from other subsidiaries			2,430		2,308
	Other assets			168		194
		Total assets	$	34,663	$	31,991
Liabilities and Shareholders' Equity:
	Short-term borrowed funds		$	―	$	24
	Short-term borrowed funds due to subsidiaries			40		50
	Long-term debt			10,081		9,032
	Accounts payable and other liabilities			116		76
		Total liabilities		10,237		9,182
		Total shareholders' equity		24,426		22,809
		Total liabilities and shareholders' equity	$	34,663	$	31,991

Parent Company
Condensed Income Statements
			Year Ended December 31,
			2014		2013		2012
			(Dollars in millions)
Income:
	Dividends from banking subsidiaries		$	1,636	$	1,220	$	1,720
	Dividends from other subsidiaries			71		79		81
	Interest and other income from subsidiaries			67		67		79
	Other income			7		14		1
		Total income		1,781		1,380		1,881
Expenses:
	Interest expense			148		219		239
	Other expenses			55		50		52
		Total expenses		203		269		291
Income before income taxes and equity in
	undistributed earnings of subsidiaries			1,578		1,111		1,590
Income tax benefit				43		2		20
Income before equity in undistributed earnings of subsidiaries				1,621		1,113		1,610
Equity in undistributed earnings of subsidiaries in excess of
	dividends from subsidiaries			605		616		418
Net income				2,226		1,729		2,028
Noncontrolling interests				75		50		49
Dividends on preferred stock				148		117		63
Net income available to common shareholders			$	2,003	$	1,562	$	1,916

Parent Company
Condensed Statements of Comprehensive Income
			Year Ended December 31,
				2014		2013		2012
			(Dollars in millions)
Net Income			$	2,226	$	1,729	$	2,028
OCI, Net of Tax:
	Change in unrecognized pension and postretirement amounts			1		(4)		―
	Change in unrecognized gains (losses) on cash flow hedges			―		―		(2)
	Other, net			2		1		1
		Total OCI		3		(3)		(1)
		Total comprehensive income	$	2,229	$	1,726	$	2,027
Income Tax Effect of Items Included in OCI
	Change in unrecognized pension and postretirement amounts		$	―	$	(1)	$	―
	Change in unrecognized gains (losses) on cash flow hedges			―		―		(1)
	Other, net			1		―		―

Parent Company
Condensed Statements of Cash Flows
				Year Ended December 31,
				2014		2013		2012
				(Dollars in millions)
Cash Flows From Operating Activities:
	Net income			$	2,226	$	1,729	$	2,028
	Adjustments to reconcile net income to net cash provided by
		operating activities:
		Equity in earnings of subsidiaries in excess of dividends
			from subsidiaries		(605)		(616)		(418)
		Net change in other assets			27		95		265
		Net change in accounts payable and accrued liabilities			40		42		(71)
		Other, net			(86)		(79)		(228)
			Net cash from operating activities		1,602		1,171		1,576
Cash Flows From Investing Activities:
	Proceeds from sales, calls and maturities of AFS securities				25		24		26
	Purchases of AFS securities				(124)		(24)		(26)
	Proceeds from maturities, calls and paydowns of HTM securities				16		2		4
	Investment in subsidiaries				(1)		(4)		(30)
	Advances to subsidiaries				(7,145)		(5,815)		(10,785)
	Proceeds from repayment of advances to subsidiaries				7,060		5,898		11,325
	Net cash from business combinations				―		―		51
	Net cash from divestitures				―		9		―
		Net cash from investing activities			(169)		90		565
Cash Flows From Financing Activities:
	Net change in long-term debt				1,085		499		(2,764)
	Net change in short-term borrowings				(24)		(13)		(259)
	Net change in advances from subsidiaries				(10)		50		(72)
	Net proceeds from common stock issued				294		108		15
	Net proceeds from preferred stock issued				―		487		2,116
	Cash dividends paid on common and preferred stock				(814)		(912)		(564)
	Other, net				―		8		62
		Net cash from financing activities			531		227		(1,466)
Net Change in Cash and Cash Equivalents					1,964		1,488		675
Cash and Cash Equivalents at Beginning of Year					5,727		4,239		3,564
Cash and Cash Equivalents at End of Year				$	7,691	$	5,727	$	4,239

The transfer of funds in the form of dividends, loans or advances from bank subsidiaries to the Parent Company is restricted. Federal law requires loans to the Parent Company or its affiliates to be secured and generally limits loans to the Parent Company or an individual affiliate to 10% of Branch Bank's unimpaired capital and surplus. In the aggregate, loans to the Parent Company and all affiliates cannot exceed 20% of the bank's unimpaired capital and surplus.

Dividend payments to the Parent Company by Branch Bank are subject to regulatory review and statutory limitations and, in some instances, regulatory approval. In general, dividends from Branch Bank to the Parent Company are limited by rules which compare dividends to net income for regulatory-defined periods. Furthermore, dividends are restricted by regulatory minimum capital constraints.