North Carolina | 1-10853 | 56-0939887 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
200 West Second Street | |
Winston-Salem, North Carolina | 27101 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
Common Stock, $5 par value | BBT | New York Stock Exchange | ||
Depositary Shares each representing 1/1,000th interest in a share of Series D Non-Cumulative Perpetual Preferred Stock | BBT PrD | New York Stock Exchange | ||
Depositary Shares each representing 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock | BBT PrE | New York Stock Exchange | ||
Depositary Shares each representing 1/1,000th interest in a share of Series F Non-Cumulative Perpetual Preferred Stock | BBT PrF | New York Stock Exchange | ||
Depositary Shares each representing 1/1,000th interest in a share of Series G Non-Cumulative Perpetual Preferred Stock | BBT PrG | New York Stock Exchange | ||
Depositary Shares each representing 1/1,000th interest in a share of Series H Non-Cumulative Perpetual Preferred Stock | BBT PrH | New York Stock Exchange |
ITEM 2.02 | Results of Operations and Financial Condition |
ITEM 9.01 | Financial Statements and Exhibits |
(d) | Exhibits |
BB&T CORPORATION | ||
(Registrant) | ||
By: | /s/ Cynthia B. Powell | |
Cynthia B. Powell | ||
Executive Vice President and Corporate Controller | ||
(Principal Accounting Officer) |
![]() | BB&T Corporation | |||
Corporate Communications 2400 Reynolda Road Winston-Salem, NC 27106-4606 | ||||
July 18, 2019 | News Release | |||
FOR IMMEDIATE RELEASE | ||||
Contacts: ANALYSTS Richard Baytosh Executive Vice President Investor Relations (336) 733-0732 | ANALYSTS Aaron Reeves Senior Vice President Investor Relations (336) 733-2874 | MEDIA Brian Davis Senior Vice President Corporate Communications Media@BBT.com |
• | Earnings per diluted common share were $1.09, an increase of $0.12 per diluted common share from the first quarter of this year |
- | Diluted earnings per share were $1.12, excluding merger-related and restructuring charges and incremental operating expenses related to the merger |
- | Return on average assets was 1.55 percent |
- | Return on average common shareholders' equity was 11.98 percent |
- | Return on average tangible common shareholders' equity was 19.45 percent |
• | Taxable-equivalent revenues were $3.1 billion, up $144 million from the first quarter of 2019 |
- | Net interest margin was 3.42 percent, down nine basis points |
- | Noninterest income was up $150 million |
- | Insurance income was a record $566 million, up $56 million |
- | Fee income ratio was 44.4 percent, compared to 41.5 percent for the prior quarter |
• | Noninterest expense was $1.8 billion, down $17 million compared to the first quarter of 2019 |
- | Noninterest expense includes $23 million of merger-related and restructuring charges and $9 million of incremental operating expenses related to the merger |
- | GAAP efficiency ratio was 57.6 percent, compared to 61.0 percent for the prior quarter |
- | Adjusted efficiency ratio was 55.1 percent, compared to 56.6 percent for the prior quarter |
• | Average loans and leases held for investment were $150.5 billion, up $2.4 billion, or 6.5 percent annualized compared to the first quarter of 2019 |
- | Average commercial and industrial loans increased $1.2 billion, or 7.8 percent annualized |
- | Average CRE loans decreased $157 million, or 3.0 percent annualized |
- | Average residential mortgage loans increased $696 million, or 8.9 percent annualized |
- | Average indirect loans increased $542 million, or 12.5 percent annualized |
• | Average deposits were relatively flat compared to the first quarter of 2019 |
- | Average noninterest-bearing deposits increased $397 million, or 3.0 percent annualized |
- | Average noninterest-bearing deposits represent 32.9 percent of total deposits, compared to 32.7 percent in the prior quarter |
- | Cost of average interest-bearing deposits was 1.02 percent annualized, up seven basis points |
- | Cost of average total deposits was 0.68 percent annualized, up four basis points |
• | Asset quality remains excellent |
- | Nonperforming assets were 0.23 percent of total assets; lower than levels in 2006 |
- | Loans 90 days or more past due and still accruing were 0.27 percent of loans held for investment, compared to 0.29 percent in the prior quarter |
- | Net charge-offs were 0.38 percent of average loans and leases, down two basis points compared to the prior quarter |
- | The allowance for loan loss coverage ratio was 3.46 times nonperforming loans and leases held for investment, versus 2.97 times in the prior quarter |
- | The allowance for loan and lease losses was 1.05 percent of loans and leases held for investment, unchanged compared to the prior quarter |
• | Capital levels remained strong across the board |
- | Common equity tier 1 to risk-weighted assets was 10.3 percent |
- | Tier 1 risk-based capital was 12.0 percent |
- | Total capital was 14.2 percent |
- | Leverage capital was 10.2 percent |
EARNINGS HIGHLIGHTS | Change 2Q19 vs. | ||||||||||||||
(dollars in millions, except per share data) | 2Q19 | 1Q19 | 2Q18 | 1Q19 | 2Q18 | ||||||||||
Net income available to common shareholders | $ | 842 | $ | 749 | $ | 775 | $ | 93 | $ | 67 | |||||
Diluted earnings per common share | 1.09 | 0.97 | 0.99 | 0.12 | 0.10 | ||||||||||
Net interest income - taxable equivalent | $ | 1,714 | $ | 1,720 | $ | 1,679 | $ | (6 | ) | $ | 35 | ||||
Noninterest income | 1,352 | 1,202 | 1,222 | 150 | 130 | ||||||||||
Total taxable-equivalent revenue | $ | 3,066 | $ | 2,922 | $ | 2,901 | $ | 144 | $ | 165 | |||||
Less taxable-equivalent adjustment | 24 | 24 | 22 | ||||||||||||
Total revenue | $ | 3,042 | $ | 2,898 | $ | 2,879 |
Return on average assets | 1.55 | % | 1.43 | % | 1.49 | % | 0.12 | % | 0.06 | % |
Return on average risk-weighted assets | 1.91 | 1.78 | 1.85 | 0.13 | 0.06 | |||||
Return on average common shareholders' equity | 11.98 | 11.08 | 11.74 | 0.90 | 0.24 | |||||
Return on average tangible common shareholders' equity (1) | 19.45 | 18.36 | 19.52 | 1.09 | (0.07 | ) | ||||
Net interest margin - taxable equivalent | 3.42 | 3.51 | 3.45 | (0.09 | ) | (0.03 | ) |
(1) | Excludes certain items as detailed in the non-GAAP reconciliations in the Quarterly Performance Summary. |
LOANS AND LEASES | |||||||||||
(dollars in millions) | |||||||||||
Average balances | 2Q19 | 1Q19 | Change | % Change | |||||||
(annualized) | |||||||||||
Commercial: | |||||||||||
Commercial and industrial | $ | 62,563 | $ | 61,370 | $ | 1,193 | 7.8 | % | |||
CRE | 20,748 | 20,905 | (157 | ) | (3.0 | ) | |||||
Lease financing | 2,122 | 2,021 | 101 | 20.0 | |||||||
Total commercial | 85,433 | 84,296 | 1,137 | 5.4 | |||||||
Retail: | |||||||||||
Residential mortgage | 32,066 | 31,370 | 696 | 8.9 | |||||||
Direct | 11,506 | 11,493 | 13 | 0.5 | |||||||
Indirect | 17,879 | 17,337 | 542 | 12.5 | |||||||
Total retail | 61,451 | 60,200 | 1,251 | 8.3 | |||||||
Revolving credit | 3,151 | 3,110 | 41 | 5.3 | |||||||
PCI | 432 | 455 | (23 | ) | (20.3 | ) | |||||
Total loans and leases held for investment | $ | 150,467 | $ | 148,061 | $ | 2,406 | 6.5 |
DEPOSITS | |||||||||||
(dollars in millions) | |||||||||||
Average balances | 2Q19 | 1Q19 | Change | % Change | |||||||
(annualized) | |||||||||||
Noninterest-bearing deposits | $ | 52,680 | $ | 52,283 | $ | 397 | 3.0 | % | |||
Interest checking | 27,708 | 27,622 | 86 | 1.2 | |||||||
Money market and savings | 63,394 | 63,325 | 69 | 0.4 | |||||||
Time deposits | 15,730 | 16,393 | (663 | ) | (16.2 | ) | |||||
Foreign office deposits - interest-bearing | 379 | 422 | (43 | ) | (40.9 | ) | |||||
Total deposits | $ | 159,891 | $ | 160,045 | $ | (154 | ) | (0.4 | ) |
SEGMENT RESULTS | Change 2Q19 vs. | ||||||||||||||
(dollars in millions) | |||||||||||||||
Segment Net Income | 2Q19 | 1Q19 | 2Q18 | 1Q19 | 2Q18 | ||||||||||
Community Banking Retail and Consumer Finance | $ | 445 | $ | 379 | $ | 383 | $ | 66 | $ | 62 | |||||
Community Banking Commercial | 319 | 328 | 278 | (9 | ) | 41 | |||||||||
Financial Services and Commercial Finance | 169 | 156 | 145 | 13 | 24 | ||||||||||
Insurance Holdings | 111 | 88 | 73 | 23 | 38 | ||||||||||
Other, Treasury & Corporate | (159 | ) | (153 | ) | (57 | ) | (6 | ) | (102 | ) | |||||
Total net income | $ | 885 | $ | 798 | $ | 822 | $ | 87 | $ | 63 |
CAPITAL RATIOS | 2Q19 | 1Q19 | 4Q18 | 3Q18 | 2Q18 | |||||
Risk-based: | (preliminary) | |||||||||
Common equity Tier 1 | 10.3 | % | 10.3 | % | 10.2 | % | 10.2 | % | 10.2 | % |
Tier 1 | 12.0 | 12.0 | 11.8 | 11.9 | 11.9 | |||||
Total | 14.2 | 14.2 | 13.8 | 13.9 | 13.9 | |||||
Leverage | 10.2 | 10.1 | 9.9 | 10.0 | 10.0 |
ASSET QUALITY | |||||||||||||||
(dollars in millions) | 2Q19 | 1Q19 | 4Q18 | 3Q18 | 2Q18 | ||||||||||
Total nonperforming assets | $ | 523 | $ | 584 | $ | 585 | $ | 601 | $ | 624 | |||||
Total performing TDRs | 1,070 | 1,130 | 1,119 | 1,090 | 1,073 | ||||||||||
Total loans 90 days past due and still accruing | 407 | 431 | 462 | 431 | 435 | ||||||||||
Total loans 30-89 days past due | 1,016 | 948 | 1,044 | 1,075 | 905 | ||||||||||
Nonperforming loans and leases as a percentage of loans and leases held for investment | 0.30 | % | 0.35 | % | 0.35 | % | 0.37 | % | 0.38 | % | |||||
Nonperforming assets as a percentage of total assets | 0.23 | 0.26 | 0.26 | 0.27 | 0.28 | ||||||||||
Allowance for loan and lease losses as a percentage of loans and leases held for investment | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 | ||||||||||
Net charge-offs as a percentage of average loans and leases, annualized | 0.38 | 0.40 | 0.38 | 0.35 | 0.30 | ||||||||||
Ratio of allowance for loan and lease losses to net charge-offs, annualized | 2.80x | 2.62x | 2.76x | 3.05x | 3.49x | ||||||||||
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment | 3.46x | 2.97x | 2.99x | 2.86x | 2.74x |
= | The adjusted efficiency ratio is non-GAAP in that it excludes securities gains (losses), amortization of intangible assets, merger-related and restructuring charges and other selected items. BB&T's management uses this measure in their analysis of the Corporation's performance. BB&T's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges. |
= | Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. BB&T's management uses these measures to assess the quality of capital and returns relative to balance sheet risk and believes investors may find them useful in their analysis of the Corporation. |
= | Core net interest margin is a non-GAAP measure that adjusts net interest margin to exclude the impact of purchase accounting. The interest income and average balances for PCI loans are excluded in their entirety as the accounting for these loans can result in significant and unusual trends in yields. The purchase accounting marks and related amortization for a) securities acquired from the FDIC in the Colonial Bank acquisition and b) non-PCI loans, deposits and long-term debt acquired from Susquehanna and National Penn are excluded to approximate their yields at the pre-acquisition rates. BB&T's management believes the adjustments to the calculation of net interest margin for certain assets and liabilities acquired provide investors with useful information related to the performance of BB&T's earning assets. |
= | The adjusted diluted earnings per share is non-GAAP in that it excludes merger-related and restructuring charges and other selected items, net of tax. BB&T's management uses this measure in their analysis of the Corporation's performance. BB&T's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges. |
= | The adjusted operating leverage ratio is non-GAAP in that it excludes securities gains (losses), amortization of intangible assets, merger-related and restructuring charges and other selected items. BB&T's management uses this measure in their analysis of the Corporation's performance. BB&T's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges. |
= | The adjusted performance ratios are non-GAAP in that they exclude merger-related and restructuring charges, selected items and, in the case of return on average tangible common shareholders' equity, amortization of intangible assets. BB&T's management uses these measures in their analysis of the Corporation's performance. BB&T's management believes these measures provide a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges. |
= | risks, uncertainties and other factors relating to the merger of SunTrust with and into BB&T, including the ability to obtain regulatory approvals and meet other closing conditions to the merger, including approval of the merger by BB&T shareholders and SunTrust shareholders and delay in closing the merger; |
= | general economic or business conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, slower deposit and/or asset growth, and a deterioration in credit quality and/or a reduced demand for credit, insurance or other services; |
= | disruptions to the national or global financial markets, including the impact of a downgrade of U.S. government obligations by one of the credit ratings agencies, the economic instability and recessionary conditions in Europe; |
= | changes in the interest rate environment, including interest rate changes made by the Federal Reserve, the discontinuation of LIBOR as an interest rate benchmark, as well as cash flow reassessments may reduce net interest margin and/or the volumes and values of loans and deposits as well as the value of other financial assets and liabilities; |
= | competitive pressures among depository and other financial institutions may increase significantly; |
= | legislative, regulatory or accounting changes, including changes resulting from the adoption and implementation of the Dodd-Frank Act may adversely affect the businesses in which BB&T is engaged; |
= | local, state or federal taxing authorities may take tax positions that are adverse to BB&T; |
= | a reduction may occur in BB&T's credit ratings; |
= | adverse changes may occur in the securities markets; |
= | competitors of BB&T may have greater financial resources or develop products that enable them to compete more successfully than BB&T and may be subject to different regulatory standards than BB&T; |
= | cyber security risks could adversely affect BB&T's business and financial performance or reputation, and BB&T could be liable for financial losses incurred by third parties due to breaches of data shared between financial institutions; |
= | higher-than-expected costs related to information technology infrastructure or a failure to successfully implement future system enhancements could adversely impact BB&T's financial condition and results of operations and could result in significant additional costs to BB&T; |
= | natural or other disasters, including acts of terrorism, could have an adverse effect on BB&T, materially disrupting BB&T's operations or the ability or willingness of customers to access BB&T's products and services; |
= | costs related to the integration of the businesses of BB&T and its merger partners may be greater than expected; |
= | failure to execute on strategic or operational plans, including the ability to successfully complete and/or integrate mergers and acquisitions or fully achieve expected cost savings or revenue growth associated with mergers and acquisitions within the expected time frames could adversely impact financial condition and results of operations; |
= | significant litigation and regulatory proceedings could have a material adverse effect on BB&T; |
= | unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries could result in negative publicity, protests, fines, penalties, restrictions on BB&T's operations or ability to expand its business and other negative consequences, all of which could cause reputational damage and adversely impact BB&T's financial conditions and results of operations; |
= | risks resulting from the extensive use of models; |
= | risk management measures may not be fully effective; |
= | deposit attrition, customer loss and/or revenue loss following completed mergers/acquisitions may exceed expectations; and |
= | widespread system outages, caused by the failure of critical internal systems or critical services provided by third parties, could adversely impact BB&T's financial condition and results of operations. |
Table of Contents | ||
Quarterly Performance Summary | ||
BB&T Corporation | ||
Page | ||
Financial Highlights | ||
Financial Highlights - Five Quarter Trend | ||
Consolidated Statements of Income | ||
Consolidated Statements of Income - Five Quarter Trend | ||
Segment Financial Performance - Five Quarter Trend | ||
Consolidated Ending Balance Sheets - Five Quarter Trend | ||
Average Balance Sheets | ||
Average Balance Sheets - Five Quarter Trend | ||
Average Balances and Rates - Quarters | ||
Average Balances and Rates - Year-To-Date | ||
Credit Quality | ||
Capital Information - Five Quarter Trend | ||
Selected Items, Selected Mortgage Banking Information & Additional Information | ||
Non-GAAP Reconciliations |
Financial Highlights | ||||||||||||||||||||||
Quarter Ended | Year-to-Date | |||||||||||||||||||||
June 30 | % | June 30 | % | |||||||||||||||||||
(Dollars in millions, except per share data, shares in thousands) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Summary Income Statement | ||||||||||||||||||||||
Interest income | $ | 2,230 | $ | 2,016 | 10.6 | % | $ | 4,427 | $ | 3,960 | 11.8 | % | ||||||||||
Interest expense | 516 | 337 | 53.1 | 993 | 625 | 58.9 | ||||||||||||||||
Net interest income - taxable equivalent | 1,714 | 1,679 | 2.1 | 3,434 | 3,335 | 3.0 | ||||||||||||||||
Less: Taxable-equivalent adjustment | 24 | 22 | 9.1 | 48 | 45 | 6.7 | ||||||||||||||||
Net interest income | 1,690 | 1,657 | 2.0 | 3,386 | 3,290 | 2.9 | ||||||||||||||||
Provision for credit losses | 172 | 135 | 27.4 | 327 | 285 | 14.7 | ||||||||||||||||
Net interest income after provision for credit losses | 1,518 | 1,522 | (0.3 | ) | 3,059 | 3,005 | 1.8 | |||||||||||||||
Noninterest income | 1,352 | 1,222 | 10.6 | 2,554 | 2,402 | 6.3 | ||||||||||||||||
Noninterest expense | 1,751 | 1,720 | 1.8 | 3,519 | 3,406 | 3.3 | ||||||||||||||||
Income before income taxes | 1,119 | 1,024 | 9.3 | 2,094 | 2,001 | 4.6 | ||||||||||||||||
Provision for income taxes | 234 | 202 | 15.8 | 411 | 388 | 5.9 | ||||||||||||||||
Net income | 885 | 822 | 7.7 | 1,683 | 1,613 | 4.3 | ||||||||||||||||
Noncontrolling interests | (1 | ) | 3 | (133.3 | ) | 5 | 6 | (16.7 | ) | |||||||||||||
Preferred stock dividends | 44 | 44 | — | 87 | 87 | — | ||||||||||||||||
Net income available to common shareholders | 842 | 775 | 8.6 | 1,591 | 1,520 | 4.7 | ||||||||||||||||
Per Common Share Data | ||||||||||||||||||||||
Earnings per share-basic | $ | 1.10 | $ | 1.00 | 10.0 | % | $ | 2.08 | $ | 1.95 | 6.7 | % | ||||||||||
Earnings per share-diluted | 1.09 | 0.99 | 10.1 | 2.06 | 1.93 | 6.7 | ||||||||||||||||
Cash dividends declared | 0.405 | 0.375 | 8.0 | 0.810 | 0.750 | 8.0 | ||||||||||||||||
Common equity | 37.40 | 34.51 | 8.4 | 37.40 | 34.51 | 8.4 | ||||||||||||||||
Tangible common equity (1) | 23.93 | 21.53 | 11.1 | 23.93 | 21.53 | 11.1 | ||||||||||||||||
End of period shares outstanding | 766,010 | 774,447 | (1.1 | ) | 766,010 | 774,447 | (1.1 | ) | ||||||||||||||
Weighted average shares outstanding-basic | 765,958 | 775,836 | (1.3 | ) | 765,052 | 777,716 | (1.6 | ) | ||||||||||||||
Weighted average shares outstanding-diluted | 774,603 | 785,750 | (1.4 | ) | 774,329 | 788,362 | (1.8 | ) | ||||||||||||||
Performance Ratios | ||||||||||||||||||||||
Return on average assets | 1.55 | % | 1.49 | % | 1.49 | % | 1.47 | % | ||||||||||||||
Return on average risk-weighted assets | 1.91 | 1.85 | 1.85 | 1.83 | ||||||||||||||||||
Return on average common shareholders' equity | 11.98 | 11.74 | 11.54 | 11.59 | ||||||||||||||||||
Return on average tangible common shareholders' equity (2) | 19.45 | 19.52 | 18.92 | 19.32 | ||||||||||||||||||
Net interest margin - taxable equivalent | 3.42 | 3.45 | 3.47 | 3.45 | ||||||||||||||||||
Fee income ratio | 44.4 | 42.5 | 43.0 | 42.2 | ||||||||||||||||||
Efficiency ratio-GAAP | 57.6 | 59.7 | 59.3 | 59.8 | ||||||||||||||||||
Efficiency ratio-adjusted (2) | 55.1 | 57.4 | 55.8 | 57.4 | ||||||||||||||||||
Credit Quality | ||||||||||||||||||||||
Nonperforming assets as a percentage of: | ||||||||||||||||||||||
Assets | 0.23 | % | 0.28 | % | 0.23 | % | 0.28 | % | ||||||||||||||
Loans and leases plus foreclosed property | 0.34 | 0.43 | 0.34 | 0.43 | ||||||||||||||||||
Net charge-offs as a percentage of average loans and leases | 0.38 | 0.30 | 0.39 | 0.36 | ||||||||||||||||||
Allowance for loan and lease losses as a percentage of loans and leases held for investment | 1.05 | 1.05 | 1.05 | 1.05 | ||||||||||||||||||
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment | 3.46x | 2.74x | 3.46x | 2.74x | ||||||||||||||||||
Average Balances | ||||||||||||||||||||||
Assets | $ | 229,249 | $ | 221,344 | 3.6 | % | $ | 227,421 | $ | 221,381 | 2.7 | % | ||||||||||
Securities (3) | 46,115 | 47,145 | (2.2 | ) | 46,423 | 47,756 | (2.8 | ) | ||||||||||||||
Loans and leases | 151,557 | 145,752 | 4.0 | 150,181 | 144,834 | 3.7 | ||||||||||||||||
Deposits | 159,891 | 157,676 | 1.4 | 159,968 | 157,409 | 1.6 | ||||||||||||||||
Common shareholders' equity | 28,188 | 26,483 | 6.4 | 27,812 | 26,455 | 5.1 | ||||||||||||||||
Shareholders' equity | 31,301 | 29,585 | 5.8 | 30,923 | 29,556 | 4.6 | ||||||||||||||||
Period-End Balances | ||||||||||||||||||||||
Assets | $ | 230,872 | $ | 222,681 | 3.7 | % | $ | 230,872 | $ | 222,681 | 3.7 | % | ||||||||||
Securities (3) | 45,289 | 45,668 | (0.8 | ) | 45,289 | 45,668 | (0.8 | ) | ||||||||||||||
Loans and leases | 153,823 | 147,798 | 4.1 | 153,823 | 147,798 | 4.1 | ||||||||||||||||
Deposits | 159,521 | 159,475 | — | 159,521 | 159,475 | — | ||||||||||||||||
Common shareholders' equity | 28,650 | 26,727 | 7.2 | 28,650 | 26,727 | 7.2 | ||||||||||||||||
Shareholders' equity | 31,764 | 29,832 | 6.5 | 31,764 | 29,832 | 6.5 | ||||||||||||||||
Capital Ratios (current quarter is preliminary) | ||||||||||||||||||||||
Risk-based: | ||||||||||||||||||||||
Common equity Tier 1 | 10.3 | % | 10.2 | % | 10.3 | % | 10.2 | % | ||||||||||||||
Tier 1 | 12.0 | 11.9 | 12.0 | 11.9 | ||||||||||||||||||
Total | 14.2 | 13.9 | 14.2 | 13.9 | ||||||||||||||||||
Leverage | 10.2 | 10.0 | 10.2 | 10.0 | ||||||||||||||||||
Applicable ratios are annualized. | ||||||||||||||||||||||
(1) Represents a non-GAAP measure. See the calculations and management's reasons for using this measure in the Preliminary Capital Information - Five Quarter Trend section of this supplement. | ||||||||||||||||||||||
(2) Represents a non-GAAP measure. See the calculation and management's reasons for using this measure in the Non-GAAP Reconciliations section of this supplement. | ||||||||||||||||||||||
(3) Includes AFS and HTM securities. Average balances reflect both AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost. |
Financial Highlights - Five Quarter Trend | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | ||||||||||||||||
(Dollars in millions, except per share data, shares in thousands) | 2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||
Summary Income Statement | ||||||||||||||||||||
Interest income | $ | 2,230 | $ | 2,197 | $ | 2,160 | $ | 2,096 | $ | 2,016 | ||||||||||
Interest expense | 516 | 477 | 431 | 382 | 337 | |||||||||||||||
Net interest income - taxable equivalent | 1,714 | 1,720 | 1,729 | 1,714 | 1,679 | |||||||||||||||
Less: Taxable-equivalent adjustment | 24 | 24 | 24 | 27 | 22 | |||||||||||||||
Net interest income | 1,690 | 1,696 | 1,705 | 1,687 | 1,657 | |||||||||||||||
Provision for credit losses | 172 | 155 | 146 | 135 | 135 | |||||||||||||||
Net interest income after provision for credit losses | 1,518 | 1,541 | 1,559 | 1,552 | 1,522 | |||||||||||||||
Noninterest income | 1,352 | 1,202 | 1,235 | 1,239 | 1,222 | |||||||||||||||
Noninterest expense | 1,751 | 1,768 | 1,784 | 1,742 | 1,720 | |||||||||||||||
Income before income taxes | 1,119 | 975 | 1,010 | 1,049 | 1,024 | |||||||||||||||
Provision for income taxes | 234 | 177 | 205 | 210 | 202 | |||||||||||||||
Net income | 885 | 798 | 805 | 839 | 822 | |||||||||||||||
Noncontrolling interests | (1 | ) | 6 | 7 | 7 | 3 | ||||||||||||||
Preferred stock dividends | 44 | 43 | 44 | 43 | 44 | |||||||||||||||
Net income available to common shareholders | 842 | 749 | 754 | 789 | 775 | |||||||||||||||
Per Common Share Data | ||||||||||||||||||||
Earnings per share-basic | $ | 1.10 | $ | 0.98 | $ | 0.99 | $ | 1.02 | $ | 1.00 | ||||||||||
Earnings per share-diluted | 1.09 | 0.97 | 0.97 | 1.01 | 0.99 | |||||||||||||||
Cash dividends declared | 0.405 | 0.405 | 0.405 | 0.405 | 0.375 | |||||||||||||||
Common equity | 37.40 | 36.26 | 35.46 | 34.90 | 34.51 | |||||||||||||||
Tangible common equity (1) | 23.93 | 22.78 | 21.89 | 21.40 | 21.53 | |||||||||||||||
End of period shares outstanding | 766,010 | 765,920 | 763,326 | 770,620 | 774,447 | |||||||||||||||
Weighted average shares outstanding-basic | 765,958 | 764,135 | 765,013 | 771,562 | 775,836 | |||||||||||||||
Weighted average shares outstanding-diluted | 774,603 | 774,071 | 775,402 | 781,867 | 785,750 | |||||||||||||||
Performance Ratios | ||||||||||||||||||||
Return on average assets | 1.55 | % | 1.43 | % | 1.43 | % | 1.49 | % | 1.49 | % | ||||||||||
Return on average risk-weighted assets | 1.91 | 1.78 | 1.77 | 1.85 | 1.85 | |||||||||||||||
Return on average common shareholders' equity | 11.98 | 11.08 | 11.14 | 11.69 | 11.74 | |||||||||||||||
Return on average tangible common shareholders' equity (2) | 19.45 | 18.36 | 18.77 | 19.74 | 19.52 | |||||||||||||||
Net interest margin - taxable equivalent | 3.42 | 3.51 | 3.49 | 3.47 | 3.45 | |||||||||||||||
Fee income ratio | 44.4 | 41.5 | 42.0 | 42.3 | 42.5 | |||||||||||||||
Efficiency ratio-GAAP | 57.6 | 61.0 | 60.7 | 59.5 | 59.7 | |||||||||||||||
Efficiency ratio-adjusted (2) | 55.1 | 56.6 | 56.5 | 57.3 | 57.4 | |||||||||||||||
Credit Quality | ||||||||||||||||||||
Nonperforming assets as a percentage of: | ||||||||||||||||||||
Assets | 0.23 | % | 0.26 | % | 0.26 | % | 0.27 | % | 0.28 | % | ||||||||||
Loans and leases plus foreclosed property | 0.34 | 0.39 | 0.39 | 0.41 | 0.43 | |||||||||||||||
Net charge-offs as a percentage of average loans and leases | 0.38 | 0.40 | 0.38 | 0.35 | 0.30 | |||||||||||||||
Allowance for loan and lease losses as a percentage of loans and leases held for investment | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 | |||||||||||||||
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment | 3.46x | 2.97x | 2.99x | 2.86x | 2.74x | |||||||||||||||
Average Balances | ||||||||||||||||||||
Assets | $ | 229,249 | $ | 225,573 | $ | 223,625 | $ | 222,674 | $ | 221,344 | ||||||||||
Securities (3) | 46,115 | 46,734 | 46,610 | 46,299 | 47,145 | |||||||||||||||
Loans and leases | 151,557 | 148,790 | 148,457 | 147,489 | 145,752 | |||||||||||||||
Deposits | 159,891 | 160,045 | 157,842 | 157,271 | 157,676 | |||||||||||||||
Common shareholders' equity | 28,188 | 27,432 | 26,860 | 26,782 | 26,483 | |||||||||||||||
Shareholders' equity | 31,301 | 30,541 | 29,965 | 29,887 | 29,585 | |||||||||||||||
Period-End Balances | ||||||||||||||||||||
Assets | $ | 230,872 | $ | 227,683 | $ | 225,697 | $ | 222,885 | $ | 222,681 | ||||||||||
Securities (3) | 45,289 | 46,410 | 45,590 | 45,368 | 45,668 | |||||||||||||||
Loans and leases | 153,823 | 149,891 | 150,001 | 147,712 | 147,798 | |||||||||||||||
Deposits | 159,521 | 159,766 | 161,199 | 154,556 | 159,475 | |||||||||||||||
Common shareholders' equity | 28,650 | 27,770 | 27,069 | 26,895 | 26,727 | |||||||||||||||
Shareholders' equity | 31,764 | 30,883 | 30,178 | 30,007 | 29,832 | |||||||||||||||
Capital Ratios (current quarter is preliminary) | ||||||||||||||||||||
Risk-based: | ||||||||||||||||||||
Common equity Tier 1 | 10.3 | % | 10.3 | % | 10.2 | % | 10.2 | % | 10.2 | % | ||||||||||
Tier 1 | 12.0 | 12.0 | 11.8 | 11.9 | 11.9 | |||||||||||||||
Total | 14.2 | 14.2 | 13.8 | 13.9 | 13.9 | |||||||||||||||
Leverage | 10.2 | 10.1 | 9.9 | 10.0 | 10.0 | |||||||||||||||
Applicable ratios are annualized. | ||||||||||||||||||||
(1) Represents a non-GAAP measure. See the calculations and management's reasons for using this measure in the Preliminary Capital Information - Five Quarter Trend section of this supplement. | ||||||||||||||||||||
(2) Represents a non-GAAP measure. See the calculation and management's reasons for using this measure in the Non-GAAP Reconciliations section of this supplement. | ||||||||||||||||||||
(3) Includes AFS and HTM securities. Average balances reflect both AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost. |
Consolidated Statements of Income | ||||||||||||||||||||||||||||||
Quarter Ended | Year-to-Date | |||||||||||||||||||||||||||||
June 30 | Change | June 30 | Change | |||||||||||||||||||||||||||
(Dollars in millions, except per share data, shares in thousands) | 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||||||
Interest and fees on loans and leases | $ | 1,886 | $ | 1,687 | $ | 199 | 11.8 | % | $ | 3,725 | $ | 3,292 | $ | 433 | 13.2 | % | ||||||||||||||
Interest and dividends on securities | 300 | 294 | 6 | 2.0 | 602 | 585 | 17 | 2.9 | ||||||||||||||||||||||
Interest on other earning assets | 20 | 13 | 7 | 53.8 | 52 | 38 | 14 | 36.8 | ||||||||||||||||||||||
Total interest income | 2,206 | 1,994 | 212 | 10.6 | 4,379 | 3,915 | 464 | 11.9 | ||||||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||||||
Interest on deposits | 273 | 148 | 125 | 84.5 | 526 | 266 | 260 | 97.7 | ||||||||||||||||||||||
Interest on short-term borrowings | 50 | 23 | 27 | 117.4 | 82 | 43 | 39 | 90.7 | ||||||||||||||||||||||
Interest on long-term debt | 193 | 166 | 27 | 16.3 | 385 | 316 | 69 | 21.8 | ||||||||||||||||||||||
Total interest expense | 516 | 337 | 179 | 53.1 | 993 | 625 | 368 | 58.9 | ||||||||||||||||||||||
Net Interest Income | 1,690 | 1,657 | 33 | 2.0 | 3,386 | 3,290 | 96 | 2.9 | ||||||||||||||||||||||
Provision for credit losses | 172 | 135 | 37 | 27.4 | 327 | 285 | 42 | 14.7 | ||||||||||||||||||||||
Net Interest Income After Provision for Credit Losses | 1,518 | 1,522 | (4 | ) | (0.3 | ) | 3,059 | 3,005 | 54 | 1.8 | ||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||||||
Insurance income | 566 | 481 | 85 | 17.7 | 1,076 | 917 | 159 | 17.3 | ||||||||||||||||||||||
Service charges on deposits | 181 | 179 | 2 | 1.1 | 352 | 344 | 8 | 2.3 | ||||||||||||||||||||||
Investment banking and brokerage fees and commissions | 131 | 109 | 22 | 20.2 | 242 | 222 | 20 | 9.0 | ||||||||||||||||||||||
Mortgage banking income | 113 | 94 | 19 | 20.2 | 176 | 193 | (17 | ) | (8.8 | ) | ||||||||||||||||||||
Trust and investment advisory revenues | 70 | 72 | (2 | ) | (2.8 | ) | 138 | 144 | (6 | ) | (4.2 | ) | ||||||||||||||||||
Bankcard fees and merchant discounts | 77 | 72 | 5 | 6.9 | 147 | 141 | 6 | 4.3 | ||||||||||||||||||||||
Checkcard fees | 59 | 57 | 2 | 3.5 | 114 | 109 | 5 | 4.6 | ||||||||||||||||||||||
Operating lease income | 35 | 36 | (1 | ) | (2.8 | ) | 70 | 73 | (3 | ) | (4.1 | ) | ||||||||||||||||||
Income from bank-owned life insurance | 34 | 30 | 4 | 13.3 | 62 | 61 | 1 | 1.6 | ||||||||||||||||||||||
Securities gains (losses), net | — | 1 | (1 | ) | NM | — | 1 | (1 | ) | NM | ||||||||||||||||||||
Other income | 86 | 91 | (5 | ) | (5.5 | ) | 177 | 197 | (20 | ) | (10.2 | ) | ||||||||||||||||||
Total noninterest income | 1,352 | 1,222 | 130 | 10.6 | 2,554 | 2,402 | 152 | 6.3 | ||||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||||||
Personnel expense | 1,120 | 1,074 | 46 | 4.3 | 2,207 | 2,113 | 94 | 4.4 | ||||||||||||||||||||||
Occupancy and equipment expense | 184 | 187 | (3 | ) | (1.6 | ) | 371 | 381 | (10 | ) | (2.6 | ) | ||||||||||||||||||
Software expense | 71 | 67 | 4 | 6.0 | 143 | 132 | 11 | 8.3 | ||||||||||||||||||||||
Outside IT services | 29 | 32 | (3 | ) | (9.4 | ) | 59 | 64 | (5 | ) | (7.8 | ) | ||||||||||||||||||
Regulatory charges | 19 | 39 | (20 | ) | (51.3 | ) | 37 | 79 | (42 | ) | (53.2 | ) | ||||||||||||||||||
Amortization of intangibles | 32 | 31 | 1 | 3.2 | 64 | 64 | — | — | ||||||||||||||||||||||
Loan-related expense | 30 | 26 | 4 | 15.4 | 55 | 55 | — | — | ||||||||||||||||||||||
Professional services | 31 | 32 | (1 | ) | (3.1 | ) | 62 | 62 | — | — | ||||||||||||||||||||
Merger-related and restructuring charges, net | 23 | 24 | (1 | ) | (4.2 | ) | 103 | 52 | 51 | 98.1 | ||||||||||||||||||||
Other expense | 212 | 208 | 4 | 1.9 | 418 | 404 | 14 | 3.5 | ||||||||||||||||||||||
Total noninterest expense | 1,751 | 1,720 | 31 | 1.8 | 3,519 | 3,406 | 113 | 3.3 | ||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||||||
Income before income taxes | 1,119 | 1,024 | 95 | 9.3 | 2,094 | 2,001 | 93 | 4.6 | ||||||||||||||||||||||
Provision for income taxes | 234 | 202 | 32 | 15.8 | 411 | 388 | 23 | 5.9 | ||||||||||||||||||||||
Net income | 885 | 822 | 63 | 7.7 | 1,683 | 1,613 | 70 | 4.3 | ||||||||||||||||||||||
Noncontrolling interests | (1 | ) | 3 | (4 | ) | (133.3 | ) | 5 | 6 | (1 | ) | (16.7 | ) | |||||||||||||||||
Preferred stock dividends | 44 | 44 | — | — | 87 | 87 | — | — | ||||||||||||||||||||||
Net income available to common shareholders | $ | 842 | $ | 775 | $ | 67 | 8.6 | % | $ | 1,591 | $ | 1,520 | $ | 71 | 4.7 | % | ||||||||||||||
Earnings Per Common Share | ||||||||||||||||||||||||||||||
Basic | $ | 1.10 | $ | 1.00 | $ | 0.10 | 10.0 | % | $ | 2.08 | $ | 1.95 | $ | 0.13 | 6.7 | % | ||||||||||||||
Diluted | 1.09 | 0.99 | 0.10 | 10.1 | 2.06 | 1.93 | 0.13 | 6.7 | ||||||||||||||||||||||
Weighted Average Shares Outstanding | ||||||||||||||||||||||||||||||
Basic | 765,958 | 775,836 | (9,878 | ) | (1.3 | ) | 765,052 | 777,716 | (12,664) | (1.6 | ) | |||||||||||||||||||
Diluted | 774,603 | 785,750 | (11,147 | ) | (1.4 | ) | 774,329 | 788,362 | (14,033) | (1.8 | ) | |||||||||||||||||||
NM - not meaningful |
Consolidated Statements of Income - Five Quarter Trend | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | ||||||||||||||||
(Dollars in millions, except per share data, shares in thousands) | 2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||
Interest Income | ||||||||||||||||||||
Interest and fees on loans and leases | $ | 1,886 | $ | 1,839 | $ | 1,830 | $ | 1,772 | $ | 1,687 | ||||||||||
Interest and dividends on securities | 300 | 302 | 292 | 283 | 294 | |||||||||||||||
Interest on other earning assets | 20 | 32 | 14 | 14 | 13 | |||||||||||||||
Total interest income | 2,206 | 2,173 | 2,136 | 2,069 | 1,994 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Interest on deposits | 273 | 253 | 206 | 172 | 148 | |||||||||||||||
Interest on short-term borrowings | 50 | 32 | 39 | 29 | 23 | |||||||||||||||
Interest on long-term debt | 193 | 192 | 186 | 181 | 166 | |||||||||||||||
Total interest expense | 516 | 477 | 431 | 382 | 337 | |||||||||||||||
Net Interest Income | 1,690 | 1,696 | 1,705 | 1,687 | 1,657 | |||||||||||||||
Provision for credit losses | 172 | 155 | 146 | 135 | 135 | |||||||||||||||
Net Interest Income After Provision for Credit Losses | 1,518 | 1,541 | 1,559 | 1,552 | 1,522 | |||||||||||||||
Noninterest Income | ||||||||||||||||||||
Insurance income | 566 | 510 | 487 | 448 | 481 | |||||||||||||||
Service charges on deposits | 181 | 171 | 185 | 183 | 179 | |||||||||||||||
Investment banking and brokerage fees and commissions | 131 | 111 | 139 | 116 | 109 | |||||||||||||||
Mortgage banking income | 113 | 63 | 86 | 79 | 94 | |||||||||||||||
Trust and investment advisory revenues | 70 | 68 | 70 | 71 | 72 | |||||||||||||||
Bankcard fees and merchant discounts | 77 | 70 | 74 | 72 | 72 | |||||||||||||||
Checkcard fees | 59 | 55 | 56 | 56 | 57 | |||||||||||||||
Operating lease income | 35 | 35 | 35 | 37 | 36 | |||||||||||||||
Income from bank-owned life insurance | 34 | 28 | 28 | 27 | 30 | |||||||||||||||
Securities gains (losses), net | — | — | 2 | — | 1 | |||||||||||||||
Other income | 86 | 91 | 73 | 150 | 91 | |||||||||||||||
Total noninterest income | 1,352 | 1,202 | 1,235 | 1,239 | 1,222 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Personnel expense | 1,120 | 1,087 | 1,096 | 1,104 | 1,074 | |||||||||||||||
Occupancy and equipment expense | 184 | 187 | 188 | 189 | 187 | |||||||||||||||
Software expense | 71 | 72 | 70 | 70 | 67 | |||||||||||||||
Outside IT services | 29 | 30 | 35 | 33 | 32 | |||||||||||||||
Regulatory charges | 19 | 18 | 18 | 37 | 39 | |||||||||||||||
Amortization of intangibles | 32 | 32 | 34 | 33 | 31 | |||||||||||||||
Loan-related expense | 30 | 25 | 25 | 28 | 26 | |||||||||||||||
Professional services | 31 | 31 | 43 | 33 | 32 | |||||||||||||||
Merger-related and restructuring charges, net | 23 | 80 | 76 | 18 | 24 | |||||||||||||||
Other expense | 212 | 206 | 199 | 197 | 208 | |||||||||||||||
Total noninterest expense | 1,751 | 1,768 | 1,784 | 1,742 | 1,720 | |||||||||||||||
Earnings | ||||||||||||||||||||
Income before income taxes | 1,119 | 975 | 1,010 | 1,049 | 1,024 | |||||||||||||||
Provision for income taxes | 234 | 177 | 205 | 210 | 202 | |||||||||||||||
Net income | 885 | 798 | 805 | 839 | 822 | |||||||||||||||
Noncontrolling interests | (1 | ) | 6 | 7 | 7 | 3 | ||||||||||||||
Preferred stock dividends | 44 | 43 | 44 | 43 | 44 | |||||||||||||||
Net income available to common shareholders | $ | 842 | $ | 749 | $ | 754 | $ | 789 | $ | 775 | ||||||||||
Earnings Per Common Share | ||||||||||||||||||||
Basic | $ | 1.10 | $ | 0.98 | $ | 0.99 | $ | 1.02 | $ | 1.00 | ||||||||||
Diluted | 1.09 | 0.97 | 0.97 | 1.01 | 0.99 | |||||||||||||||
Weighted Average Shares Outstanding | ||||||||||||||||||||
Basic | 765,958 | 764,135 | 765,013 | 771,562 | 775,836 | |||||||||||||||
Diluted | 774,603 | 774,071 | 775,402 | 781,867 | 785,750 |
Segment Financial Performance - Preliminary | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | ||||||||||||||||
(Dollars in millions) | 2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||
Community Banking Retail and Consumer Finance | ||||||||||||||||||||
Net interest income (expense) | $ | 850 | $ | 843 | $ | 881 | $ | 880 | $ | 853 | ||||||||||
Net intersegment interest income (expense) | 126 | 109 | 87 | 76 | 69 | |||||||||||||||
Segment net interest income | 976 | 952 | 968 | 956 | 922 | |||||||||||||||
Allocated provision for credit losses | 123 | 130 | 151 | 121 | 110 | |||||||||||||||
Noninterest income | 387 | 322 | 352 | 347 | 355 | |||||||||||||||
Noninterest expense | 654 | 645 | 658 | 657 | 659 | |||||||||||||||
Income (loss) before income taxes | 586 | 499 | 511 | 525 | 508 | |||||||||||||||
Provision (benefit) for income taxes | 141 | 120 | 124 | 129 | 125 | |||||||||||||||
Segment net income (loss) | $ | 445 | $ | 379 | $ | 387 | $ | 396 | $ | 383 | ||||||||||
Community Banking Commercial | ||||||||||||||||||||
Net interest income (expense) | $ | 541 | $ | 536 | $ | 532 | $ | 513 | $ | 491 | ||||||||||
Net intersegment interest income (expense) | 47 | 44 | 59 | 58 | 54 | |||||||||||||||
Segment net interest income | 588 | 580 | 591 | 571 | 545 | |||||||||||||||
Allocated provision for credit losses | 39 | 19 | 14 | 18 | 43 | |||||||||||||||
Noninterest income | 114 | 109 | 112 | 110 | 110 | |||||||||||||||
Noninterest expense | 255 | 251 | 267 | 262 | 254 | |||||||||||||||
Income (loss) before income taxes | 408 | 419 | 422 | 401 | 358 | |||||||||||||||
Provision (benefit) for income taxes | 89 | 91 | 93 | 90 | 80 | |||||||||||||||
Segment net income (loss) | $ | 319 | $ | 328 | $ | 329 | $ | 311 | $ | 278 | ||||||||||
Financial Services and Commercial Finance | ||||||||||||||||||||
Net interest income (expense) | $ | 197 | $ | 189 | $ | 190 | $ | 171 | $ | 169 | ||||||||||
Net intersegment interest income (expense) | 13 | 21 | 21 | 26 | 19 | |||||||||||||||
Segment net interest income | 210 | 210 | 211 | 197 | 188 | |||||||||||||||
Allocated provision for credit losses | 14 | 1 | 5 | 5 | (4 | ) | ||||||||||||||
Noninterest income | 329 | 284 | 323 | 308 | 303 | |||||||||||||||
Noninterest expense | 311 | 297 | 334 | 312 | 312 | |||||||||||||||
Income (loss) before income taxes | 214 | 196 | 195 | 188 | 183 | |||||||||||||||
Provision (benefit) for income taxes | 45 | 40 | 40 | 39 | 38 | |||||||||||||||
Segment net income (loss) | $ | 169 | $ | 156 | $ | 155 | $ | 149 | $ | 145 | ||||||||||
Insurance Holdings | ||||||||||||||||||||
Net interest income (expense) | $ | 35 | $ | 34 | $ | 32 | $ | 32 | $ | 29 | ||||||||||
Net intersegment interest income (expense) | (10 | ) | (11 | ) | (10 | ) | (9 | ) | (7 | ) | ||||||||||
Segment net interest income | 25 | 23 | 22 | 23 | 22 | |||||||||||||||
Allocated provision for credit losses | 2 | 3 | — | 1 | — | |||||||||||||||
Noninterest income | 570 | 515 | 496 | 452 | 484 | |||||||||||||||
Noninterest expense | 444 | 417 | 415 | 416 | 408 | |||||||||||||||
Income (loss) before income taxes | 149 | 118 | 103 | 58 | 98 | |||||||||||||||
Provision (benefit) for income taxes | 38 | 30 | 26 | 15 | 25 | |||||||||||||||
Segment net income (loss) | $ | 111 | $ | 88 | $ | 77 | $ | 43 | $ | 73 | ||||||||||
Other, Treasury & Corporate (1) | ||||||||||||||||||||
Net interest income (expense) | $ | 67 | $ | 94 | $ | 70 | $ | 91 | $ | 115 | ||||||||||
Net intersegment interest income (expense) | (176 | ) | (163 | ) | (157 | ) | (151 | ) | (135 | ) | ||||||||||
Segment net interest income | (109 | ) | (69 | ) | (87 | ) | (60 | ) | (20 | ) | ||||||||||
Allocated provision for credit losses | (6 | ) | 2 | (24 | ) | (10 | ) | (14 | ) | |||||||||||
Noninterest income | (48 | ) | (28 | ) | (48 | ) | 22 | (30 | ) | |||||||||||
Noninterest expense | 87 | 158 | 110 | 95 | 87 | |||||||||||||||
Income (loss) before income taxes | (238 | ) | (257 | ) | (221 | ) | (123 | ) | (123 | ) | ||||||||||
Provision (benefit) for income taxes | (79 | ) | (104 | ) | (78 | ) | (63 | ) | (66 | ) | ||||||||||
Segment net income (loss) | $ | (159 | ) | $ | (153 | ) | $ | (143 | ) | $ | (60 | ) | $ | (57 | ) | |||||
Total BB&T Corporation | ||||||||||||||||||||
Net interest income (expense) | $ | 1,690 | $ | 1,696 | $ | 1,705 | $ | 1,687 | $ | 1,657 | ||||||||||
Net intersegment interest income (expense) | — | — | — | — | — | |||||||||||||||
Segment net interest income | 1,690 | 1,696 | 1,705 | 1,687 | 1,657 | |||||||||||||||
Allocated provision for credit losses | 172 | 155 | 146 | 135 | 135 | |||||||||||||||
Noninterest income | 1,352 | 1,202 | 1,235 | 1,239 | 1,222 | |||||||||||||||
Noninterest expense | 1,751 | 1,768 | 1,784 | 1,742 | 1,720 | |||||||||||||||
Income (loss) before income taxes | 1,119 | 975 | 1,010 | 1,049 | 1,024 | |||||||||||||||
Provision (benefit) for income taxes | 234 | 177 | 205 | 210 | 202 | |||||||||||||||
Net income | $ | 885 | $ | 798 | $ | 805 | $ | 839 | $ | 822 | ||||||||||
(1) Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure. |
Consolidated Ending Balance Sheets - Five Quarter Trend | ||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | ||||||||||||||||
(Dollars in millions) | 2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 1,831 | $ | 1,873 | $ | 2,753 | $ | 2,123 | $ | 2,046 | ||||||||||
Interest-bearing deposits with banks | 707 | 751 | 984 | 748 | 662 | |||||||||||||||
Cash equivalents | 148 | 252 | 143 | 135 | 213 | |||||||||||||||
Restricted cash | 15 | 96 | 107 | 147 | 132 | |||||||||||||||
Securities available for sale at fair value | 25,802 | 26,315 | 25,038 | 24,286 | 23,919 | |||||||||||||||
Securities held to maturity at amortized cost | 19,487 | 20,095 | 20,552 | 21,082 | 21,749 | |||||||||||||||
Loans and leases: | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial and industrial | 63,693 | 61,978 | 61,935 | 59,722 | 60,474 | |||||||||||||||
CRE | 20,722 | 20,829 | 21,060 | 21,466 | 21,610 | |||||||||||||||
Lease financing | 2,203 | 2,098 | 2,018 | 2,028 | 1,924 | |||||||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | 32,607 | 31,572 | 31,393 | 30,821 | 29,965 | |||||||||||||||
Direct | 11,492 | 11,464 | 11,584 | 11,618 | 11,661 | |||||||||||||||
Indirect | 18,209 | 17,523 | 17,425 | 17,468 | 17,140 | |||||||||||||||
Revolving credit | 3,239 | 3,152 | 3,132 | 3,070 | 2,876 | |||||||||||||||
PCI | 421 | 441 | 466 | 497 | 533 | |||||||||||||||
Total loans and leases held for investment | 152,586 | 149,057 | 149,013 | 146,690 | 146,183 | |||||||||||||||
Loans held for sale | 1,237 | 834 | 988 | 1,022 | 1,615 | |||||||||||||||
Total loans and leases | 153,823 | 149,891 | 150,001 | 147,712 | 147,798 | |||||||||||||||
Allowance for loan and lease losses | (1,595 | ) | (1,561 | ) | (1,558 | ) | (1,538 | ) | (1,530 | ) | ||||||||||
Premises and equipment | 2,029 | 2,078 | 2,118 | 2,154 | 2,154 | |||||||||||||||
Goodwill | 9,830 | 9,818 | 9,818 | 9,832 | 9,617 | |||||||||||||||
Core deposit and other intangible assets | 712 | 726 | 758 | 789 | 647 | |||||||||||||||
Mortgage servicing rights at fair value | 970 | 1,036 | 1,108 | 1,179 | 1,143 | |||||||||||||||
Other assets | 17,113 | 16,313 | 13,875 | 14,236 | 14,131 | |||||||||||||||
Total assets | $ | 230,872 | $ | 227,683 | $ | 225,697 | $ | 222,885 | $ | 222,681 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing deposits | $ | 52,458 | $ | 53,021 | $ | 53,025 | $ | 53,646 | $ | 54,270 | ||||||||||
Interest checking | 28,021 | 28,028 | 28,130 | 26,590 | 27,257 | |||||||||||||||
Money market and savings | 63,972 | 63,739 | 63,467 | 61,597 | 63,167 | |||||||||||||||
Time deposits | 15,070 | 14,978 | 16,577 | 12,723 | 14,781 | |||||||||||||||
Total deposits | 159,521 | 159,766 | 161,199 | 154,556 | 159,475 | |||||||||||||||
Short-term borrowings | 10,344 | 6,305 | 5,178 | 9,652 | 3,576 | |||||||||||||||
Long-term debt | 22,640 | 24,729 | 23,709 | 23,236 | 24,081 | |||||||||||||||
Accounts payable and other liabilities | 6,603 | 6,000 | 5,433 | 5,434 | 5,717 | |||||||||||||||
Total liabilities | 199,108 | 196,800 | 195,519 | 192,878 | 192,849 | |||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
Preferred stock | 3,053 | 3,053 | 3,053 | 3,053 | 3,053 | |||||||||||||||
Common stock | 3,830 | 3,830 | 3,817 | 3,853 | 3,872 | |||||||||||||||
Additional paid-in capital | 6,889 | 6,843 | 6,849 | 7,221 | 7,364 | |||||||||||||||
Retained earnings | 19,050 | 18,518 | 18,118 | 17,673 | 17,197 | |||||||||||||||
Accumulated other comprehensive loss | (1,119 | ) | (1,421 | ) | (1,715 | ) | (1,852 | ) | (1,706 | ) | ||||||||||
Noncontrolling interests | 61 | 60 | 56 | 59 | 52 | |||||||||||||||
Total shareholders' equity | 31,764 | 30,883 | 30,178 | 30,007 | 29,832 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 230,872 | $ | 227,683 | $ | 225,697 | $ | 222,885 | $ | 222,681 | ||||||||||
New lease accounting guidance was adopted prospectively in 1Q19 that requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet. |
Average Balance Sheets | ||||||||||||||||||||||||||||||
Quarter Ended | Year-to-Date | |||||||||||||||||||||||||||||
June 30 | Change | June 30 | Change | |||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Securities at amortized cost (1): | ||||||||||||||||||||||||||||||
U.S. Treasury | $ | 2,662 | $ | 3,537 | $ | (875 | ) | (24.7 | )% | $ | 2,980 | $ | 3,538 | $ | (558 | ) | (15.8 | )% | ||||||||||||
U.S. government-sponsored entities (GSE) | 2,440 | 2,384 | 56 | 2.3 | 2,429 | 2,384 | 45 | 1.9 | ||||||||||||||||||||||
Mortgage-backed securities issued by GSE | 40,112 | 39,777 | 335 | 0.8 | 40,078 | 40,292 | (214 | ) | (0.5 | ) | ||||||||||||||||||||
States and political subdivisions | 566 | 1,051 | (485 | ) | (46.1 | ) | 593 | 1,133 | (540 | ) | (47.7 | ) | ||||||||||||||||||
Non-agency mortgage-backed | 302 | 354 | (52 | ) | (14.7 | ) | 308 | 364 | (56 | ) | (15.4 | ) | ||||||||||||||||||
Other | 33 | 42 | (9 | ) | (21.4 | ) | 35 | 45 | (10 | ) | (22.2 | ) | ||||||||||||||||||
Total securities | 46,115 | 47,145 | (1,030 | ) | (2.2 | ) | 46,423 | 47,756 | (1,333 | ) | (2.8 | ) | ||||||||||||||||||
Other earning assets | 3,167 | 2,197 | 970 | 44.2 | 2,684 | 2,223 | 461 | 20.7 | ||||||||||||||||||||||
Loans and leases: | ||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||
Commercial and industrial | 62,563 | 59,548 | 3,015 | 5.1 | 61,970 | 59,090 | 2,880 | 4.9 | ||||||||||||||||||||||
CRE | 20,748 | 21,546 | (798 | ) | (3.7 | ) | 20,826 | 21,472 | (646 | ) | (3.0 | ) | ||||||||||||||||||
Lease financing | 2,122 | 1,862 | 260 | 14.0 | 2,071 | 1,867 | 204 | 10.9 | ||||||||||||||||||||||
Retail: | ||||||||||||||||||||||||||||||
Residential mortgage | 32,066 | 29,272 | 2,794 | 9.5 | 31,720 | 29,049 | 2,671 | 9.2 | ||||||||||||||||||||||
Direct | 11,506 | 11,680 | (174 | ) | (1.5 | ) | 11,500 | 11,735 | (235 | ) | (2.0 | ) | ||||||||||||||||||
Indirect | 17,879 | 16,804 | 1,075 | 6.4 | 17,609 | 16,859 | 750 | 4.4 | ||||||||||||||||||||||
Revolving credit | 3,151 | 2,831 | 320 | 11.3 | 3,131 | 2,815 | 316 | 11.2 | ||||||||||||||||||||||
PCI | 432 | 559 | (127 | ) | (22.7 | ) | 444 | 595 | (151 | ) | (25.4 | ) | ||||||||||||||||||
Total loans and leases held for investment | 150,467 | 144,102 | 6,365 | 4.4 | 149,271 | 143,482 | 5,789 | 4.0 | ||||||||||||||||||||||
Loans held for sale | 1,090 | 1,650 | (560 | ) | (33.9 | ) | 910 | 1,352 | (442 | ) | (32.7 | ) | ||||||||||||||||||
Total loans and leases | 151,557 | 145,752 | 5,805 | 4.0 | 150,181 | 144,834 | 5,347 | 3.7 | ||||||||||||||||||||||
Total earning assets | 200,839 | 195,094 | 5,745 | 2.9 | 199,288 | 194,813 | 4,475 | 2.3 | ||||||||||||||||||||||
Nonearning assets | 28,410 | 26,250 | 2,160 | 8.2 | 28,133 | 26,568 | 1,565 | 5.9 | ||||||||||||||||||||||
Total assets | $ | 229,249 | $ | 221,344 | $ | 7,905 | 3.6 | % | $ | 227,421 | $ | 221,381 | $ | 6,040 | 2.7 | % | ||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 52,680 | $ | 53,963 | $ | (1,283 | ) | (2.4 | )% | $ | 52,484 | $ | 53,681 | $ | (1,197 | ) | (2.2 | )% | ||||||||||||
Interest checking | 27,708 | 26,969 | 739 | 2.7 | 27,665 | 27,119 | 546 | 2.0 | ||||||||||||||||||||||
Money market and savings | 63,394 | 62,105 | 1,289 | 2.1 | 63,360 | 61,899 | 1,461 | 2.4 | ||||||||||||||||||||||
Time deposits | 15,730 | 13,966 | 1,764 | 12.6 | 16,059 | 13,907 | 2,152 | 15.5 | ||||||||||||||||||||||
Foreign office deposits - interest-bearing | 379 | 673 | (294 | ) | (43.7 | ) | 400 | 803 | (403 | ) | (50.2 | ) | ||||||||||||||||||
Total deposits | 159,891 | 157,676 | 2,215 | 1.4 | 159,968 | 157,409 | 2,559 | 1.6 | ||||||||||||||||||||||
Short-term borrowings | 8,367 | 5,323 | 3,044 | 57.2 | 7,003 | 5,399 | 1,604 | 29.7 | ||||||||||||||||||||||
Long-term debt | 23,233 | 23,639 | (406 | ) | (1.7 | ) | 23,240 | 23,658 | (418 | ) | (1.8 | ) | ||||||||||||||||||
Accounts payable and other liabilities | 6,457 | 5,121 | 1,336 | 26.1 | 6,287 | 5,359 | 928 | 17.3 | ||||||||||||||||||||||
Total liabilities | 197,948 | 191,759 | 6,189 | 3.2 | 196,498 | 191,825 | 4,673 | 2.4 | ||||||||||||||||||||||
Shareholders' equity | 31,301 | 29,585 | 1,716 | 5.8 | 30,923 | 29,556 | 1,367 | 4.6 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 229,249 | $ | 221,344 | $ | 7,905 | 3.6 | % | $ | 227,421 | $ | 221,381 | $ | 6,040 | 2.7 | % | ||||||||||||||
New lease accounting guidance was adopted prospectively in 1Q19 that requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet. | ||||||||||||||||||||||||||||||
Average balances exclude basis adjustments for fair value hedges. | ||||||||||||||||||||||||||||||
(1) Includes AFS and HTM securities. |
Average Balance Sheets - Five Quarter Trend | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | ||||||||||||||||
(Dollars in millions) | 2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||
Assets | ||||||||||||||||||||
Securities at amortized cost (1): | ||||||||||||||||||||
U.S. Treasury | $ | 2,662 | $ | 3,302 | $ | 4,555 | $ | 3,561 | $ | 3,537 | ||||||||||
U.S. government-sponsored entities (GSE) | 2,440 | 2,418 | 2,408 | 2,399 | 2,384 | |||||||||||||||
Mortgage-backed securities issued by GSE | 40,112 | 40,044 | 38,566 | 39,111 | 39,777 | |||||||||||||||
States and political subdivisions | 566 | 620 | 725 | 849 | 1,051 | |||||||||||||||
Non-agency mortgage-backed | 302 | 315 | 326 | 340 | 354 | |||||||||||||||
Other | 33 | 35 | 30 | 39 | 42 | |||||||||||||||
Total securities | 46,115 | 46,734 | 46,610 | 46,299 | 47,145 | |||||||||||||||
Other earning assets | 3,167 | 2,197 | 2,146 | 2,412 | 2,197 | |||||||||||||||
Loans and leases: | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial and industrial | 62,563 | 61,370 | 60,553 | 59,900 | 59,548 | |||||||||||||||
CRE | 20,748 | 20,905 | 21,301 | 21,496 | 21,546 | |||||||||||||||
Lease financing | 2,122 | 2,021 | 1,990 | 1,941 | 1,862 | |||||||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | 32,066 | 31,370 | 31,103 | 30,500 | 29,272 | |||||||||||||||
Direct | 11,506 | 11,493 | 11,600 | 11,613 | 11,680 | |||||||||||||||
Indirect | 17,879 | 17,337 | 17,436 | 17,282 | 16,804 | |||||||||||||||
Revolving credit | 3,151 | 3,110 | 3,070 | 2,947 | 2,831 | |||||||||||||||
PCI | 432 | 455 | 486 | 518 | 559 | |||||||||||||||
Total loans and leases held for investment | 150,467 | 148,061 | 147,539 | 146,197 | 144,102 | |||||||||||||||
Loans held for sale | 1,090 | 729 | 918 | 1,292 | 1,650 | |||||||||||||||
Total loans and leases | 151,557 | 148,790 | 148,457 | 147,489 | 145,752 | |||||||||||||||
Total earning assets | 200,839 | 197,721 | 197,213 | 196,200 | 195,094 | |||||||||||||||
Nonearning assets | 28,410 | 27,852 | 26,412 | 26,474 | 26,250 | |||||||||||||||
Total assets | $ | 229,249 | $ | 225,573 | $ | 223,625 | $ | 222,674 | $ | 221,344 | ||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing deposits | $ | 52,680 | $ | 52,283 | $ | 53,732 | $ | 54,174 | $ | 53,963 | ||||||||||
Interest checking | 27,708 | 27,622 | 26,921 | 26,655 | 26,969 | |||||||||||||||
Money market and savings | 63,394 | 63,325 | 62,261 | 62,957 | 62,105 | |||||||||||||||
Time deposits | 15,730 | 16,393 | 14,682 | 13,353 | 13,966 | |||||||||||||||
Foreign office deposits - interest-bearing | 379 | 422 | 246 | 132 | 673 | |||||||||||||||
Total deposits | 159,891 | 160,045 | 157,842 | 157,271 | 157,676 | |||||||||||||||
Short-term borrowings | 8,367 | 5,624 | 6,979 | 6,023 | 5,323 | |||||||||||||||
Long-term debt | 23,233 | 23,247 | 23,488 | 24,211 | 23,639 | |||||||||||||||
Accounts payable and other liabilities | 6,457 | 6,116 | 5,351 | 5,282 | 5,121 | |||||||||||||||
Total liabilities | 197,948 | 195,032 | 193,660 | 192,787 | 191,759 | |||||||||||||||
Shareholders' equity | 31,301 | 30,541 | 29,965 | 29,887 | 29,585 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 229,249 | $ | 225,573 | $ | 223,625 | $ | 222,674 | $ | 221,344 | ||||||||||
New lease accounting guidance was adopted prospectively in 1Q19 that requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet. | ||||||||||||||||||||
Average balances exclude basis adjustments for fair value hedges. | ||||||||||||||||||||
(1) Includes AFS and HTM securities. |
Average Balances and Rates - Quarters | ||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||
June 30, 2019 | March 31, 2019 | |||||||||||||||||||||
(1) | Interest | (2) | (1) | Interest | (2) | |||||||||||||||||
Average | Income/ | Yields/ | Average | Income/ | Yields/ | |||||||||||||||||
(Dollars in millions) | Balances | Expense | Rates | Balances | Expense | Rates | ||||||||||||||||
Assets | ||||||||||||||||||||||
Securities at amortized cost (3): | ||||||||||||||||||||||
U.S. Treasury | $ | 2,662 | $ | 14 | 2.04 | % | $ | 3,302 | $ | 16 | 2.01 | % | ||||||||||
U.S. government-sponsored entities (GSE) | 2,440 | 13 | 2.25 | 2,418 | 14 | 2.24 | ||||||||||||||||
Mortgage-backed securities issued by GSE | 40,112 | 258 | 2.57 | 40,044 | 258 | 2.58 | ||||||||||||||||
States and political subdivisions | 566 | 6 | 4.37 | 620 | 6 | 3.73 | ||||||||||||||||
Non-agency mortgage-backed | 302 | 10 | 13.28 | 315 | 10 | 12.51 | ||||||||||||||||
Other | 33 | 1 | 3.85 | 35 | — | 3.96 | ||||||||||||||||
Total securities | 46,115 | 302 | 2.62 | 46,734 | 304 | 2.60 | ||||||||||||||||
Other earning assets | 3,167 | 20 | 2.59 | 2,197 | 33 | 6.01 | ||||||||||||||||
Loans and leases: | ||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||
Commercial and industrial | 62,563 | 679 | 4.35 | 61,370 | 656 | 4.33 | ||||||||||||||||
CRE | 20,748 | 260 | 5.03 | 20,905 | 261 | 5.06 | ||||||||||||||||
Lease financing | 2,122 | 17 | 3.29 | 2,021 | 17 | 3.33 | ||||||||||||||||
Retail: | ||||||||||||||||||||||
Residential mortgage | 32,066 | 321 | 4.00 | 31,370 | 324 | 4.13 | ||||||||||||||||
Direct | 11,506 | 166 | 5.80 | 11,493 | 163 | 5.75 | ||||||||||||||||
Indirect | 17,879 | 356 | 7.99 | 17,337 | 338 | 7.91 | ||||||||||||||||
Revolving credit | 3,151 | 74 | 9.39 | 3,110 | 73 | 9.49 | ||||||||||||||||
PCI | 432 | 24 | 21.63 | 455 | 20 | 17.99 | ||||||||||||||||
Total loans and leases held for investment | 150,467 | 1,897 | 5.05 | 148,061 | 1,852 | 5.06 | ||||||||||||||||
Loans held for sale | 1,090 | 11 | 4.17 | 729 | 8 | 4.38 | ||||||||||||||||
Total loans and leases | 151,557 | 1,908 | 5.05 | 148,790 | 1,860 | 5.06 | ||||||||||||||||
Total earning assets | 200,839 | 2,230 | 4.45 | 197,721 | 2,197 | 4.49 | ||||||||||||||||
Nonearning assets | 28,410 | 27,852 | ||||||||||||||||||||
Total assets | $ | 229,249 | $ | 225,573 | ||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Interest checking | $ | 27,708 | 45 | 0.65 | $ | 27,622 | 40 | 0.59 | ||||||||||||||
Money market and savings | 63,394 | 163 | 1.03 | 63,325 | 150 | 0.96 | ||||||||||||||||
Time deposits | 15,730 | 63 | 1.58 | 16,393 | 60 | 1.50 | ||||||||||||||||
Foreign office deposits - interest-bearing | 379 | 2 | 2.43 | 422 | 3 | 2.43 | ||||||||||||||||
Total interest-bearing deposits | 107,211 | 273 | 1.02 | 107,762 | 253 | 0.95 | ||||||||||||||||
Short-term borrowings | 8,367 | 50 | 2.40 | 5,624 | 32 | 2.32 | ||||||||||||||||
Long-term debt | 23,233 | 193 | 3.33 | 23,247 | 192 | 3.30 | ||||||||||||||||
Total interest-bearing liabilities | 138,811 | 516 | 1.49 | 136,633 | 477 | 1.41 | ||||||||||||||||
Noninterest-bearing deposits | 52,680 | 52,283 | ||||||||||||||||||||
Accounts payable and other liabilities | 6,457 | 6,116 | ||||||||||||||||||||
Shareholders' equity | 31,301 | 30,541 | ||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 229,249 | $ | 225,573 | ||||||||||||||||||
Average interest-rate spread | 2.96 | 3.08 | ||||||||||||||||||||
Net interest income/ net interest margin | $ | 1,714 | 3.42 | % | $ | 1,720 | 3.51 | % | ||||||||||||||
Taxable-equivalent adjustment | $ | 24 | $ | 24 | ||||||||||||||||||
Applicable ratios are annualized. | ||||||||||||||||||||||
(1) Excludes basis adjustments for fair value hedges. | ||||||||||||||||||||||
(2) Yields are on a taxable-equivalent basis utilizing the marginal income tax rates for the periods presented. | ||||||||||||||||||||||
(3) Includes AFS and HTM securities. |
Average Balances and Rates - Quarters | |||||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | |||||||||||||||||||||||||||||||
(1) | Interest | (2) | (1) | Interest | (2) | (1) | Interest | (2) | |||||||||||||||||||||||||
Average | Income/ | Yields/ | Average | Income/ | Yields/ | Average | Income/ | Yields/ | |||||||||||||||||||||||||
(Dollars in millions) | Balances | Expense | Rates | Balances | Expense | Rates | Balances | Expense | Rates | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Securities at amortized cost (3): | |||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 4,555 | $ | 25 | 2.11 | % | $ | 3,561 | $ | 15 | 1.80 | % | $ | 3,537 | $ | 17 | 1.80 | % | |||||||||||||||
U.S. government-sponsored entities (GSE) | 2,408 | 14 | 2.24 | 2,399 | 13 | 2.23 | 2,384 | 14 | 2.23 | ||||||||||||||||||||||||
Mortgage-backed securities issued by GSE | 38,566 | 241 | 2.50 | 39,111 | 239 | 2.45 | 39,777 | 241 | 2.44 | ||||||||||||||||||||||||
States and political subdivisions | 725 | 6 | 3.53 | 849 | 10 | 3.50 | 1,051 | 8 | 3.79 | ||||||||||||||||||||||||
Non-agency mortgage-backed | 326 | 10 | 11.50 | 340 | 8 | 11.32 | 354 | 17 | 17.35 | ||||||||||||||||||||||||
Other | 30 | — | 4.51 | 39 | 1 | 3.79 | 42 | — | 3.26 | ||||||||||||||||||||||||
Total securities | 46,610 | 296 | 2.53 | 46,299 | 286 | 2.47 | 47,145 | 297 | 2.53 | ||||||||||||||||||||||||
Other earning assets | 2,146 | 14 | 2.54 | 2,412 | 15 | 2.52 | 2,197 | 13 | 2.24 | ||||||||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | 60,553 | 645 | 4.23 | 59,900 | 612 | 4.04 | 59,548 | 580 | 3.92 | ||||||||||||||||||||||||
CRE | 21,301 | 261 | 4.88 | 21,496 | 260 | 4.80 | 21,546 | 252 | 4.64 | ||||||||||||||||||||||||
Lease financing | 1,990 | 18 | 3.64 | 1,941 | 17 | 3.04 | 1,862 | 12 | 3.05 | ||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||
Residential mortgage | 31,103 | 319 | 4.10 | 30,500 | 313 | 4.08 | 29,272 | 291 | 4.01 | ||||||||||||||||||||||||
Direct | 11,600 | 164 | 5.56 | 11,613 | 155 | 5.34 | 11,680 | 150 | 5.10 | ||||||||||||||||||||||||
Indirect | 17,436 | 335 | 7.69 | 17,282 | 335 | 7.56 | 16,804 | 311 | 7.46 | ||||||||||||||||||||||||
Revolving credit | 3,070 | 72 | 9.39 | 2,947 | 63 | 9.47 | 2,831 | 67 | 9.16 | ||||||||||||||||||||||||
PCI | 486 | 26 | 20.49 | 518 | 26 | 20.14 | 559 | 26 | 18.92 | ||||||||||||||||||||||||
Total loans and leases held for investment | 147,539 | 1,840 | 4.96 | 146,197 | 1,781 | 4.83 | 144,102 | 1,689 | 4.70 | ||||||||||||||||||||||||
Loans held for sale | 918 | 10 | 4.66 | 1,292 | 14 | 4.28 | 1,650 | 17 | 4.02 | ||||||||||||||||||||||||
Total loans and leases | 148,457 | 1,850 | 4.96 | 147,489 | 1,795 | 4.83 | 145,752 | 1,706 | 4.70 | ||||||||||||||||||||||||
Total earning assets | 197,213 | 2,160 | 4.36 | 196,200 | 2,096 | 4.24 | 195,094 | 2,016 | 4.14 | ||||||||||||||||||||||||
Nonearning assets | 26,412 | 26,474 | 26,250 | ||||||||||||||||||||||||||||||
Total assets | $ | 223,625 | $ | 222,674 | $ | 221,344 | |||||||||||||||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||
Interest checking | $ | 26,921 | 34 | 0.49 | $ | 26,655 | 28 | 0.45 | $ | 26,969 | 29 | 0.42 | |||||||||||||||||||||
Money market and savings | 62,261 | 125 | 0.80 | 62,957 | 109 | 0.68 | 62,105 | 86 | 0.56 | ||||||||||||||||||||||||
Time deposits | 14,682 | 45 | 1.22 | 13,353 | 34 | 0.98 | 13,966 | 30 | 0.86 | ||||||||||||||||||||||||
Foreign office deposits - interest-bearing | 246 | 2 | 2.22 | 132 | 1 | 1.93 | 673 | 3 | 1.77 | ||||||||||||||||||||||||
Total interest-bearing deposits | 104,110 | 206 | 0.78 | 103,097 | 172 | 0.66 | 103,713 | 148 | 0.57 | ||||||||||||||||||||||||
Short-term borrowings | 6,979 | 39 | 2.18 | 6,023 | 29 | 1.94 | 5,323 | 23 | 1.77 | ||||||||||||||||||||||||
Long-term debt | 23,488 | 186 | 3.19 | 24,211 | 181 | 2.99 | 23,639 | 166 | 2.81 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 134,577 | 431 | 1.28 | 133,331 | 382 | 1.14 | 132,675 | 337 | 1.02 | ||||||||||||||||||||||||
Noninterest-bearing deposits | 53,732 | 54,174 | 53,963 | ||||||||||||||||||||||||||||||
Accounts payable and other liabilities | 5,351 | 5,282 | 5,121 | ||||||||||||||||||||||||||||||
Shareholders' equity | 29,965 | 29,887 | 29,585 | ||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 223,625 | $ | 222,674 | $ | 221,344 | |||||||||||||||||||||||||||
Average interest-rate spread | 3.08 | 3.10 | 3.12 | ||||||||||||||||||||||||||||||
Net interest income/ net interest margin | $ | 1,729 | 3.49 | % | $ | 1,714 | 3.47 | % | $ | 1,679 | 3.45 | % | |||||||||||||||||||||
Taxable-equivalent adjustment | $ | 24 | $ | 27 | $ | 22 | |||||||||||||||||||||||||||
Applicable ratios are annualized. | |||||||||||||||||||||||||||||||||
(1) Excludes basis adjustments for fair value hedges. | |||||||||||||||||||||||||||||||||
(2) Yields are on a taxable-equivalent basis utilizing the marginal income tax rates for the periods presented. | |||||||||||||||||||||||||||||||||
(3) Includes AFS and HTM securities. |
Average Balances and Rates - Year-To-Date | ||||||||||||||||||||||
Year-to-Date | ||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||||
(1) | Interest | (2) | (1) | Interest | (2) | |||||||||||||||||
Average | Income/ | Yields/ | Average | Income/ | Yields/ | |||||||||||||||||
(Dollars in millions) | Balances | Expense | Rates | Balances | Expense | Rates | ||||||||||||||||
Assets | ||||||||||||||||||||||
Securities at amortized cost (3): | ||||||||||||||||||||||
U.S. Treasury | $ | 2,980 | $ | 30 | 2.02 | % | $ | 3,538 | $ | 32 | 1.79 | % | ||||||||||
U.S. government-sponsored entities (GSE) | 2,429 | 27 | 2.24 | 2,384 | 27 | 2.23 | ||||||||||||||||
Mortgage-backed securities issued by GSE | 40,078 | 516 | 2.58 | 40,292 | 489 | 2.43 | ||||||||||||||||
States and political subdivisions | 593 | 12 | 4.04 | 1,133 | 19 | 3.78 | ||||||||||||||||
Non-agency mortgage-backed | 308 | 20 | 12.89 | 364 | 24 | 12.41 | ||||||||||||||||
Other | 35 | 1 | 3.90 | 45 | — | 2.73 | ||||||||||||||||
Total securities | 46,423 | 606 | 2.61 | 47,756 | 591 | 2.48 | ||||||||||||||||
Other earning assets | 2,684 | 53 | 3.98 | 2,223 | 38 | 3.40 | ||||||||||||||||
Loans and leases: | ||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||
Commercial and industrial | 61,970 | 1,335 | 4.34 | 59,090 | 1,117 | 3.82 | ||||||||||||||||
CRE | 20,826 | 521 | 5.05 | 21,472 | 486 | 4.56 | ||||||||||||||||
Lease financing | 2,071 | 34 | 3.31 | 1,867 | 26 | 3.03 | ||||||||||||||||
Retail: | ||||||||||||||||||||||
Residential mortgage | 31,720 | 645 | 4.07 | 29,049 | 580 | 4.01 | ||||||||||||||||
Direct | 11,500 | 329 | 5.77 | 11,735 | 291 | 5.00 | ||||||||||||||||
Indirect | 17,609 | 694 | 7.95 | 16,859 | 615 | 7.39 | ||||||||||||||||
Revolving credit | 3,131 | 147 | 9.44 | 2,815 | 134 | 9.05 | ||||||||||||||||
PCI | 444 | 44 | 19.77 | 595 | 56 | 19.07 | ||||||||||||||||
Total loans and leases held for investment | 149,271 | 3,749 | 5.06 | 143,482 | 3,305 | 4.64 | ||||||||||||||||
Loans held for sale | 910 | 19 | 4.25 | 1,352 | 26 | 3.87 | ||||||||||||||||
Total loans and leases | 150,181 | 3,768 | 5.05 | 144,834 | 3,331 | 4.63 | ||||||||||||||||
Total earning assets | 199,288 | 4,427 | 4.47 | 194,813 | 3,960 | 4.09 | ||||||||||||||||
Nonearning assets | 28,133 | 26,568 | ||||||||||||||||||||
Total assets | $ | 227,421 | $ | 221,381 | ||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Interest checking | $ | 27,665 | 85 | 0.62 | $ | 27,119 | 54 | 0.39 | ||||||||||||||
Money market and savings | 63,360 | 313 | 0.99 | 61,899 | 153 | 0.50 | ||||||||||||||||
Time deposits | 16,059 | 123 | 1.54 | 13,907 | 53 | 0.77 | ||||||||||||||||
Foreign office deposits - interest-bearing | 400 | 5 | 2.43 | 803 | 6 | 1.57 | ||||||||||||||||
Total interest-bearing deposits | 107,484 | 526 | 0.99 | 103,728 | 266 | 0.52 | ||||||||||||||||
Short-term borrowings | 7,003 | 82 | 2.37 | 5,399 | 43 | 1.60 | ||||||||||||||||
Long-term debt | 23,240 | 385 | 3.31 | 23,658 | 316 | 2.67 | ||||||||||||||||
Total interest-bearing liabilities | 137,727 | 993 | 1.45 | 132,785 | 625 | 0.94 | ||||||||||||||||
Noninterest-bearing deposits | 52,484 | 53,681 | ||||||||||||||||||||
Accounts payable and other liabilities | 6,287 | 5,359 | ||||||||||||||||||||
Shareholders' equity | 30,923 | 29,556 | ||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 227,421 | $ | 221,381 | ||||||||||||||||||
Average interest-rate spread | 3.02 | 3.15 | ||||||||||||||||||||
Net interest income/ net interest margin | $ | 3,434 | 3.47 | % | $ | 3,335 | 3.45 | % | ||||||||||||||
Taxable-equivalent adjustment | $ | 48 | $ | 45 | ||||||||||||||||||
Applicable ratios are annualized. | ||||||||||||||||||||||
(1) Excludes basis adjustments for fair value hedges. | ||||||||||||||||||||||
(2) Yields are on a taxable-equivalent basis utilizing the marginal income tax rates for the periods presented. | ||||||||||||||||||||||
(3) Includes AFS and HTM securities. |
Credit Quality | ||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | ||||||||||||||||
(Dollars in millions) | 2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||
Nonperforming Assets | ||||||||||||||||||||
Nonaccrual loans and leases: | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial and industrial | $ | 193 | $ | 196 | $ | 200 | $ | 238 | $ | 243 | ||||||||||
CRE | 33 | 75 | 65 | 46 | 61 | |||||||||||||||
Lease financing | 2 | 1 | 3 | 6 | 9 | |||||||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | 104 | 121 | 119 | 120 | 119 | |||||||||||||||
Direct | 54 | 53 | 53 | 55 | 58 | |||||||||||||||
Indirect | 75 | 80 | 82 | 72 | 68 | |||||||||||||||
Total nonaccrual loans and leases held for investment (1) | 461 | 526 | 522 | 537 | 558 | |||||||||||||||
Foreclosed real estate | 36 | 33 | 35 | 39 | 43 | |||||||||||||||
Other foreclosed property | 26 | 25 | 28 | 25 | 23 | |||||||||||||||
Total nonperforming assets(1) | $ | 523 | $ | 584 | $ | 585 | $ | 601 | $ | 624 | ||||||||||
Performing Troubled Debt Restructurings (TDRs) (2) | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial and industrial | $ | 84 | $ | 63 | $ | 65 | $ | 56 | $ | 44 | ||||||||||
CRE | 8 | 9 | 10 | 12 | 11 | |||||||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | 581 | 669 | 656 | 643 | 647 | |||||||||||||||
Direct | 53 | 54 | 55 | 56 | 58 | |||||||||||||||
Indirect | 315 | 306 | 305 | 295 | 284 | |||||||||||||||
Revolving credit | 29 | 29 | 28 | 28 | 29 | |||||||||||||||
Total performing TDRs (2)(3) | $ | 1,070 | $ | 1,130 | $ | 1,119 | $ | 1,090 | $ | 1,073 | ||||||||||
Loans 90 Days or More Past Due and Still Accruing | ||||||||||||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | $ | 350 | $ | 377 | $ | 405 | $ | 367 | $ | 374 | ||||||||||
Direct | 10 | 7 | 7 | 6 | 4 | |||||||||||||||
Indirect | 7 | 5 | 6 | 6 | 4 | |||||||||||||||
Revolving credit | 14 | 14 | 14 | 12 | 10 | |||||||||||||||
PCI | 26 | 28 | 30 | 40 | 43 | |||||||||||||||
Total loans 90 days past due and still accruing | $ | 407 | $ | 431 | $ | 462 | $ | 431 | $ | 435 | ||||||||||
Loans 30-89 Days Past Due | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial and industrial | $ | 32 | $ | 36 | $ | 34 | $ | 35 | $ | 26 | ||||||||||
CRE | 3 | 3 | 5 | 4 | 4 | |||||||||||||||
Lease financing | 5 | 3 | 1 | 1 | 2 | |||||||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | 480 | 478 | 456 | 510 | 441 | |||||||||||||||
Direct | 58 | 67 | 61 | 59 | 52 | |||||||||||||||
Indirect | 393 | 316 | 436 | 418 | 337 | |||||||||||||||
Revolving credit | 28 | 27 | 28 | 27 | 21 | |||||||||||||||
PCI | 17 | 18 | 23 | 21 | 22 | |||||||||||||||
Total loans 30-89 days past due | $ | 1,016 | $ | 948 | $ | 1,044 | $ | 1,075 | $ | 905 | ||||||||||
Excludes loans held for sale. | ||||||||||||||||||||
(1) Sales of nonperforming loans totaled $48 million, $30 million, $30 million, $20 million and $12 million for the quarter ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively. | ||||||||||||||||||||
(2) Excludes TDRs that are nonperforming totaling $135 million, $178 million, $176 million, $176 million and $191 million at June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively. These amounts are included in total nonperforming assets. | ||||||||||||||||||||
(3) Sales of performing TDRs, which were primarily residential mortgage loans, totaled $120 million, $33 million, $15 million, $34 million and $17 million for the quarter ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively. |
Credit Quality | ||||||||||||||||||||
As of/For the Quarter Ended | ||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | ||||||||||||||||
(Dollars in millions) | 2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||
Allowance for Credit Losses | ||||||||||||||||||||
Beginning balance | $ | 1,659 | $ | 1,651 | $ | 1,648 | $ | 1,640 | $ | 1,614 | ||||||||||
Provision for credit losses (excluding PCI loans) | 172 | 156 | 147 | 141 | 142 | |||||||||||||||
Provision (benefit) for PCI loans | — | (1 | ) | (1 | ) | (6 | ) | (7 | ) | |||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial and industrial | (22 | ) | (17 | ) | (18 | ) | (28 | ) | (23 | ) | ||||||||||
CRE | (18 | ) | (8 | ) | (5 | ) | — | (2 | ) | |||||||||||
Lease financing | — | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | (5 | ) | (5 | ) | (8 | ) | (4 | ) | (5 | ) | ||||||||||
Direct | (22 | ) | (18 | ) | (18 | ) | (17 | ) | (17 | ) | ||||||||||
Indirect | (91 | ) | (109 | ) | (108 | ) | (94 | ) | (82 | ) | ||||||||||
Revolving credit | (25 | ) | (26 | ) | (22 | ) | (20 | ) | (21 | ) | ||||||||||
PCI | — | — | — | (2 | ) | — | ||||||||||||||
Total charge-offs | (183 | ) | (184 | ) | (180 | ) | (166 | ) | (151 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial and industrial | 8 | 6 | 7 | 13 | 11 | |||||||||||||||
CRE | 3 | 1 | 4 | 1 | 1 | |||||||||||||||
Lease financing | — | — | — | — | 1 | |||||||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | — | 1 | 1 | — | 1 | |||||||||||||||
Direct | 7 | 6 | 5 | 6 | 6 | |||||||||||||||
Indirect | 19 | 17 | 15 | 15 | 17 | |||||||||||||||
Revolving credit | 4 | 6 | 5 | 4 | 5 | |||||||||||||||
Total recoveries | 41 | 37 | 37 | 39 | 42 | |||||||||||||||
Net charge-offs | (142 | ) | (147 | ) | (143 | ) | (127 | ) | (109 | ) | ||||||||||
Ending balance | $ | 1,689 | $ | 1,659 | $ | 1,651 | $ | 1,648 | $ | 1,640 | ||||||||||
Allowance for Credit Losses: | ||||||||||||||||||||
Allowance for loan and lease losses (excluding PCI loans) | $ | 1,587 | $ | 1,553 | $ | 1,549 | $ | 1,528 | $ | 1,512 | ||||||||||
Allowance for PCI loans | 8 | 8 | 9 | 10 | 18 | |||||||||||||||
Reserve for unfunded lending commitments | 94 | 98 | 93 | 110 | 110 | |||||||||||||||
Total | $ | 1,689 | $ | 1,659 | $ | 1,651 | $ | 1,648 | $ | 1,640 | ||||||||||
As of/For the Year-to-Date | ||||||||||||||||||||
Period Ended June 30 | ||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | ||||||||||||||||||
Allowance for Credit Losses | ||||||||||||||||||||
Beginning balance | $ | 1,651 | $ | 1,609 | ||||||||||||||||
Provision for credit losses (excluding PCI loans) | 328 | 295 | ||||||||||||||||||
Provision (benefit) for PCI loans | (1 | ) | (10 | ) | ||||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial and industrial | (39 | ) | (46 | ) | ||||||||||||||||
CRE | (26 | ) | (8 | ) | ||||||||||||||||
Lease financing | (1 | ) | (2 | ) | ||||||||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | (10 | ) | (9 | ) | ||||||||||||||||
Direct | (40 | ) | (36 | ) | ||||||||||||||||
Indirect | (200 | ) | (189 | ) | ||||||||||||||||
Revolving credit | (51 | ) | (42 | ) | ||||||||||||||||
PCI | — | — | ||||||||||||||||||
Total charge-offs | (367 | ) | (332 | ) | ||||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial and industrial | 14 | 19 | ||||||||||||||||||
CRE | 4 | 3 | ||||||||||||||||||
Lease financing | — | 1 | ||||||||||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | 1 | 1 | ||||||||||||||||||
Direct | 13 | 12 | ||||||||||||||||||
Indirect | 36 | 32 | ||||||||||||||||||
Revolving credit | 10 | 10 | ||||||||||||||||||
[not used] | — | — | ||||||||||||||||||
Total recoveries | 78 | 78 | ||||||||||||||||||
Net charge-offs | (289 | ) | (254 | ) | ||||||||||||||||
Other | — | — | ||||||||||||||||||
Ending balance | $ | 1,689 | $ | 1,640 |
Credit Quality | |||||||||||||||
As of/For the Quarter Ended | |||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | |||||||||||
2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||
Asset Quality Ratios | |||||||||||||||
Loans 30-89 days past due and still accruing as a percentage of loans and leases | 0.67 | % | 0.64 | % | 0.70 | % | 0.73 | % | 0.62 | % | |||||
Loans 90 days or more past due and still accruing as a percentage of loans and leases | 0.27 | 0.29 | 0.31 | 0.29 | 0.30 | ||||||||||
Nonperforming loans and leases as a percentage of loans and leases | 0.30 | 0.35 | 0.35 | 0.37 | 0.38 | ||||||||||
Nonperforming assets as a percentage of: | |||||||||||||||
Total assets | 0.23 | 0.26 | 0.26 | 0.27 | 0.28 | ||||||||||
Loans and leases plus foreclosed property | 0.34 | 0.39 | 0.39 | 0.41 | 0.43 | ||||||||||
Net charge-offs as a percentage of average loans and leases | 0.38 | 0.40 | 0.38 | 0.35 | 0.30 | ||||||||||
Allowance for loan and lease losses as a percentage of loans and leases | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 | ||||||||||
Ratio of allowance for loan and lease losses to: | |||||||||||||||
Net charge-offs | 2.80X | 2.62X | 2.76X | 3.05X | 3.49X | ||||||||||
Nonperforming loans and leases | 3.46X | 2.97X | 2.99X | 2.86X | 2.74X | ||||||||||
Asset Quality Ratios (Excluding Government Guaranteed and PCI) | |||||||||||||||
Loans 90 days or more past due and still accruing as a percentage of loans and leases | 0.04 | % | 0.04 | % | 0.04 | % | 0.04 | % | 0.04 | % | |||||
As of/For the Year-to-Date | |||||||||||||||
Period Ended June 30 | |||||||||||||||
2019 | 2018 | ||||||||||||||
Asset Quality Ratios | |||||||||||||||
Net charge-offs as a percentage of average loans and leases | 0.39 | % | 0.36 | % | |||||||||||
Ratio of allowance for loan and lease losses to net charge-offs | 2.74X | 2.99X | |||||||||||||
Applicable ratios are annualized. Loans and leases exclude loans held for sale. |
June 30, 2019 | |||||||||||||||||||||||||
Past Due 30-89 | Past Due 90+ | ||||||||||||||||||||||||
(Dollars in millions) | Current Status | Days | Days | Total | |||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||
Performing TDRs: (1) | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 84 | 100.0 | % | $ | — | — | % | $ | — | — | % | $ | 84 | |||||||||||
CRE | 8 | 100.0 | — | — | — | — | 8 | ||||||||||||||||||
Retail: | |||||||||||||||||||||||||
Residential mortgage | 315 | 54.2 | 107 | 18.4 | 159 | 27.4 | 581 | ||||||||||||||||||
Direct | 51 | 96.2 | 2 | 3.8 | — | — | 53 | ||||||||||||||||||
Indirect | 260 | 82.5 | 55 | 17.5 | — | — | 315 | ||||||||||||||||||
Revolving credit | 25 | 86.3 | 3 | 10.3 | 1 | 3.4 | 29 | ||||||||||||||||||
Total performing TDRs (1) | 743 | 69.4 | 167 | 15.6 | 160 | 15.0 | 1,070 | ||||||||||||||||||
Nonperforming TDRs (2) | 58 | 43.0 | 15 | 11.1 | 62 | 45.9 | 135 | ||||||||||||||||||
Total TDRs (1)(2) | $ | 801 | 66.5 | % | $ | 182 | 15.1 | % | $ | 222 | 18.4 | % | $ | 1,205 | |||||||||||
Quarter Ended | |||||||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | |||||||||||||||||||||
2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||||||||
Net Charge-offs as a Percentage of Average Loans and Leases: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | 0.09 | % | 0.07 | % | 0.06 | % | 0.11 | % | 0.08 | % | |||||||||||||||
CRE | 0.30 | 0.13 | 0.02 | (0.02 | ) | 0.01 | |||||||||||||||||||
Lease financing | 0.03 | 0.10 | 0.17 | 0.16 | 0.12 | ||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
Residential mortgage | 0.06 | 0.05 | 0.10 | 0.05 | 0.05 | ||||||||||||||||||||
Direct | 0.53 | 0.42 | 0.43 | 0.38 | 0.40 | ||||||||||||||||||||
Indirect | 1.63 | 2.15 | 2.14 | 1.79 | 1.56 | ||||||||||||||||||||
Revolving credit | 2.56 | 2.64 | 2.25 | 2.11 | 2.21 | ||||||||||||||||||||
PCI | — | — | — | 1.53 | — | ||||||||||||||||||||
Total loans and leases | 0.38 | 0.40 | 0.38 | 0.35 | 0.30 | ||||||||||||||||||||
Applicable ratios are annualized. | |||||||||||||||||||||||||
(1) Past due performing TDRs are included in past due disclosures. | |||||||||||||||||||||||||
(2) Nonperforming TDRs are included in nonaccrual loan disclosures. |
Capital Information - Five Quarter Trend | ||||||||||||||||||||
As of/For the Quarter Ended | ||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | ||||||||||||||||
(Dollars in millions, except per share data, shares in thousands) | 2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||
Selected Capital Information | (preliminary) | |||||||||||||||||||
Risk-based capital: | ||||||||||||||||||||
Common equity tier 1 | $ | 19,435 | $ | 18,848 | $ | 18,405 | $ | 18,325 | $ | 18,364 | ||||||||||
Tier 1 | 22,487 | 21,899 | 21,456 | 21,376 | 21,415 | |||||||||||||||
Total | 26,698 | 26,078 | 24,963 | 24,979 | 25,011 | |||||||||||||||
Risk-weighted assets | 187,942 | 183,060 | 181,260 | 179,195 | 179,892 | |||||||||||||||
Average quarterly tangible assets | 220,511 | 217,247 | 215,872 | 214,498 | 213,523 | |||||||||||||||
Risk-based capital ratios: | ||||||||||||||||||||
Common equity tier 1 | 10.3 | % | 10.3 | % | 10.2 | % | 10.2 | % | 10.2 | % | ||||||||||
Tier 1 | 12.0 | 12.0 | 11.8 | 11.9 | 11.9 | |||||||||||||||
Total | 14.2 | 14.2 | 13.8 | 13.9 | 13.9 | |||||||||||||||
Leverage capital ratio | 10.2 | 10.1 | 9.9 | 10.0 | 10.0 | |||||||||||||||
Equity as a percentage of total assets | 13.8 | 13.6 | 13.4 | 13.5 | 13.4 | |||||||||||||||
Common equity per common share | $ | 37.40 | $ | 36.26 | $ | 35.46 | $ | 34.90 | $ | 34.51 | ||||||||||
Calculations of Tangible Common Equity and Related Measures: (1) | ||||||||||||||||||||
Total shareholders' equity | $ | 31,764 | $ | 30,883 | $ | 30,178 | $ | 30,007 | $ | 29,832 | ||||||||||
Less: | ||||||||||||||||||||
Preferred stock | 3,053 | 3,053 | 3,053 | 3,053 | 3,053 | |||||||||||||||
Noncontrolling interests | 61 | 60 | 56 | 59 | 52 | |||||||||||||||
Intangible assets, net of deferred taxes | 10,317 | 10,326 | 10,360 | 10,407 | 10,052 | |||||||||||||||
Tangible common equity | $ | 18,333 | $ | 17,444 | $ | 16,709 | $ | 16,488 | $ | 16,675 | ||||||||||
Outstanding shares at end of period (in thousands) | 766,010 | 765,920 | 763,326 | 770,620 | 774,447 | |||||||||||||||
Tangible Common Equity Per Common Share | $ | 23.93 | $ | 22.78 | $ | 21.89 | $ | 21.40 | $ | 21.53 |
(1) | Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. BB&T's management uses these measures to assess the quality of capital and returns relative to balance sheet risk and believes investors may find them useful in their analysis of the Corporation. These measures are not necessarily comparable to similar measures that may be presented by other companies. |
Selected Items, Selected Mortgage Banking Information & Additional Information | ||||||||||||||||||||
Favorable (Unfavorable) | ||||||||||||||||||||
After-Tax at | ||||||||||||||||||||
(Dollars in millions) | Pre-Tax | Marginal Rate | ||||||||||||||||||
Selected Items | ||||||||||||||||||||
Second Quarter 2019 | ||||||||||||||||||||
Incremental operating expenses related to the merger (1) | 9 | 7 | ||||||||||||||||||
First Quarter 2019 | ||||||||||||||||||||
Incremental operating expenses related to the merger (1) | 2 | 1 | ||||||||||||||||||
Fourth Quarter 2018 | ||||||||||||||||||||
None | N/A | N/A | ||||||||||||||||||
Third Quarter 2018 | ||||||||||||||||||||
None | N/A | N/A | ||||||||||||||||||
Second Quarter 2018 | ||||||||||||||||||||
None | N/A | N/A | ||||||||||||||||||
First Quarter 2018 | ||||||||||||||||||||
None | N/A | N/A | ||||||||||||||||||
(1) Includes costs not classified as merger-related and restructuring charges that are excluded from adjusted disclosures. | ||||||||||||||||||||
As of/For the Quarter Ended | ||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | ||||||||||||||||
(Dollars in millions, except per share data) | 2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||
Mortgage Banking Income | ||||||||||||||||||||
Residential mortgage production revenue | $ | 37 | $ | 20 | $ | 22 | $ | 29 | $ | 42 | ||||||||||
Residential mortgage servicing revenue | 62 | 61 | 65 | 63 | 63 | |||||||||||||||
Realization of expected residential MSR cash flows | (38 | ) | (33 | ) | (37 | ) | (35 | ) | (38 | ) | ||||||||||
Commercial mortgage production revenue | 20 | 11 | 28 | 20 | 23 | |||||||||||||||
Commercial mortgage servicing revenue | 9 | 10 | 9 | 10 | 10 | |||||||||||||||
Realization of expected commercial MSR cash flows | (7 | ) | (7 | ) | (7 | ) | (7 | ) | (8 | ) | ||||||||||
Mortgage banking income before MSR valuation | 83 | 62 | 80 | 80 | 92 | |||||||||||||||
Income statement impact of mortgage servicing rights valuation: | ||||||||||||||||||||
MSRs fair value increase (decrease) | (52 | ) | (54 | ) | (55 | ) | 35 | 25 | ||||||||||||
MSRs hedge gains (losses) | 82 | 55 | 61 | (36 | ) | (23 | ) | |||||||||||||
Net MSRs valuation | 30 | 1 | 6 | (1 | ) | 2 | ||||||||||||||
Total mortgage banking income | $ | 113 | $ | 63 | $ | 86 | $ | 79 | $ | 94 | ||||||||||
Other Mortgage Banking Information | ||||||||||||||||||||
Residential mortgage loan originations | $ | 4,735 | $ | 2,383 | $ | 2,735 | $ | 4,265 | $ | 4,411 | ||||||||||
Residential mortgage servicing portfolio (1): | ||||||||||||||||||||
Loans serviced for others | 85,060 | 86,119 | 87,270 | 88,323 | 88,492 | |||||||||||||||
Bank-owned loans serviced | 32,852 | 31,861 | 31,335 | 31,137 | 30,261 | |||||||||||||||
Total servicing portfolio | 117,912 | 117,980 | 118,605 | 119,460 | 118,753 | |||||||||||||||
Weighted-average coupon rate on mortgage loans serviced for others | 4.07 | % | 4.06 | % | 4.04 | % | 4.03 | % | 4.01 | % | ||||||||||
Weighted-average servicing fee on mortgage loans serviced for others | 0.279 | 0.278 | 0.277 | 0.277 | 0.277 | |||||||||||||||
Additional Information | ||||||||||||||||||||
Derivatives notional amount | $ | 64,967 | $ | 72,998 | $ | 67,738 | $ | 68,400 | $ | 71,427 | ||||||||||
Fair value of derivatives, net | 489 | 158 | (1 | ) | (253 | ) | (203 | ) | ||||||||||||
Common stock prices: | ||||||||||||||||||||
High | 51.76 | 52.45 | 52.11 | 53.08 | 56.03 | |||||||||||||||
Low | 46.53 | 42.79 | 40.68 | 48.41 | 50.13 | |||||||||||||||
End of period | 49.13 | 46.53 | 43.32 | 48.54 | 50.44 | |||||||||||||||
Banking offices | 1,787 | 1,871 | 1,879 | 1,958 | 1,967 | |||||||||||||||
ATMs | 2,376 | 2,503 | 2,573 | 2,764 | 2,768 | |||||||||||||||
FTEs | 34,771 | 35,334 | 35,852 | 36,233 | 35,782 | |||||||||||||||
(1) Amounts reported are unpaid principal balance. |
Non-GAAP Reconciliations | ||||||||||||||||||||||||||||
Quarter Ended | Year-to-Date | |||||||||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | June 30 | June 30 | ||||||||||||||||||||||
(Dollars in millions) | 2019 | 2019 | 2018 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||||||||
Efficiency Ratio (1) | ||||||||||||||||||||||||||||
Efficiency Ratio Numerator - Noninterest Expense - GAAP | $ | 1,751 | $ | 1,768 | $ | 1,784 | $ | 1,742 | $ | 1,720 | $ | 3,519 | $ | 3,406 | ||||||||||||||
Amortization of intangibles | (32 | ) | (32 | ) | (34 | ) | (33 | ) | (31 | ) | (64 | ) | (64 | ) | ||||||||||||||
Merger-related and restructuring charges, net | (23 | ) | (80 | ) | (76 | ) | (18 | ) | (24 | ) | (103 | ) | (52 | ) | ||||||||||||||
Incremental operating expenses related to the merger | (9 | ) | (2 | ) | — | — | — | (11 | ) | — | ||||||||||||||||||
Efficiency Ratio Numerator - Adjusted | $ | 1,687 | $ | 1,654 | $ | 1,674 | $ | 1,691 | $ | 1,665 | $ | 3,341 | $ | 3,290 | ||||||||||||||
Efficiency Ratio Denominator - Revenue (2) - GAAP | $ | 3,042 | $ | 2,898 | $ | 2,940 | $ | 2,926 | $ | 2,879 | $ | 5,940 | $ | 5,692 | ||||||||||||||
Taxable equivalent adjustment | 24 | 24 | 24 | 27 | 22 | 48 | 45 | |||||||||||||||||||||
Securities (gains) losses, net | — | — | (2 | ) | — | (1 | ) | — | (1 | ) | ||||||||||||||||||
Efficiency Ratio Denominator - Adjusted | $ | 3,066 | $ | 2,922 | $ | 2,962 | $ | 2,953 | $ | 2,900 | $ | 5,988 | $ | 5,736 | ||||||||||||||
Efficiency Ratio - GAAP | 57.6 | % | 61.0 | % | 60.7 | % | 59.5 | % | 59.7 | % | 59.3 | % | 59.8 | % | ||||||||||||||
Efficiency Ratio - Adjusted | 55.1 | 56.6 | 56.5 | 57.3 | 57.4 | 55.8 | 57.4 |
(1) | The adjusted efficiency ratio is non-GAAP in that it excludes securities gains (losses), amortization of intangible assets, merger-related and restructuring charges and other selected items. BB&T's management uses this measure in their analysis of the Corporation's performance. BB&T's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges. These measures are not necessarily comparable to similar measures that may be presented by other companies. |
(2) | Revenue is defined as net interest income plus noninterest income. |
Quarter Ended | Year-to-Date | |||||||||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | June 30 | June 30 | ||||||||||||||||||||||
(Dollars in millions) | 2019 | 2019 | 2018 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||||||||
Return on Average Tangible Common Shareholders' Equity (1) | ||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 842 | $ | 749 | $ | 754 | $ | 789 | $ | 775 | $ | 1,591 | $ | 1,520 | ||||||||||||||
Plus: Amortization of intangibles, net of tax | 24 | 25 | 25 | 26 | 24 | 49 | 48 | |||||||||||||||||||||
Tangible net income available to common shareholders | $ | 866 | $ | 774 | $ | 779 | $ | 815 | $ | 799 | $ | 1,640 | $ | 1,568 | ||||||||||||||
Average common shareholders' equity | $ | 28,188 | $ | 27,432 | $ | 26,860 | $ | 26,782 | $ | 26,483 | $ | 27,812 | $ | 26,455 | ||||||||||||||
Less: Average intangible assets, net of deferred taxes | 10,326 | 10,343 | 10,391 | 10,409 | 10,068 | 10,334 | 10,084 | |||||||||||||||||||||
Average tangible common shareholders' equity | $ | 17,862 | $ | 17,089 | $ | 16,469 | $ | 16,373 | $ | 16,415 | $ | 17,478 | $ | 16,371 | ||||||||||||||
Return on average common shareholders' equity | 11.98 | % | 11.08 | % | 11.14 | % | 11.69 | % | 11.74 | % | 11.54 | % | 11.59 | % | ||||||||||||||
Return on average tangible common shareholders' equity | 19.45 | 18.36 | 18.77 | 19.74 | 19.52 | 18.92 | 19.32 |
(1) | Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. BB&T's management uses these measures to assess the quality of capital and returns relative to balance sheet risk and believes investors may find them useful in their analysis of the Corporation. These measures are not necessarily comparable to similar measures that may be presented by other companies. |
Quarter Ended | Year-to-Date | ||||||||||||||||||||||||||
June 30 | March 31 | Dec. 31 | Sept. 30 | June 30 | June 30 | June 30 | |||||||||||||||||||||
(Dollars in millions, except per share data) | 2019 | 2019 | 2018 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Diluted EPS (1) | |||||||||||||||||||||||||||
Net income available to common shareholders - GAAP | $ | 842 | $ | 749 | $ | 754 | $ | 789 | $ | 775 | $ | 1,591 | $ | 1,520 | |||||||||||||
Merger-related and restructuring charges | 19 | 64 | 59 | 13 | 17 | 83 | 39 | ||||||||||||||||||||
Incremental operating expenses related to the merger | 7 | 1 | — | — | — | 8 | — | ||||||||||||||||||||
Securities gains (losses), net | — | — | (1 | ) | — | (1 | ) | — | (1 | ) | |||||||||||||||||
Net income available to common shareholders - adjusted | $ | 868 | $ | 814 | $ | 812 | $ | 802 | $ | 791 | $ | 1,682 | $ | 1,558 | |||||||||||||
Weighted average shares outstanding - diluted | 774,603 | 774,071 | 775,402 | 781,867 | 785,750 | 774,329 | 788,362 | ||||||||||||||||||||
Diluted EPS - GAAP | $ | 1.09 | $ | 0.97 | $ | 0.97 | $ | 1.01 | $ | 0.99 | $ | 2.06 | $ | 1.93 | |||||||||||||
Diluted EPS - adjusted | 1.12 | 1.05 | 1.05 | 1.03 | 1.01 | 2.17 | 1.98 |
(1) | The adjusted diluted earnings per share is non-GAAP in that it excludes merger-related and restructuring charges and other selected items, net of tax. BB&T's management uses this measure in their analysis of the Corporation's performance. BB&T's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges. |
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