Stockholders' Equity

3 Months Ended

Mar. 31, 2021


NOTE 9—STOCKHOLDERS’ EQUITY

Preferred Stock

The following table summarizes our preferred stock outstanding as of March 31, 2021 and December 31, 2020.

Table 9.1: Preferred Stock Outstanding(1)


			Redeemable by Issuer Beginning	Per Annum Dividend Rate	Dividend Frequency	Liquidation Preference per Share		Total Shares Outstanding as of March 31, 2021	Carrying Value (in millions)
Series	Description	Issuance Date							March 31, 2021		December 31, 2020



Series E	Fixed-to-Floating Rate Non-Cumulative	May 14, 2015	June 1, 2020	5.550% through 5/31/2020; 3-mo. LIBOR + 380 bps thereafter	Semi-Annually through 5/31/2020; Quarterly thereafter	$	1,000	1,000,000	$	988	$	988

Series G	5.200% Non-Cumulative	July 29, 2016	December 1, 2021	5.200	Quarterly	1,000		600,000	583		583
Series H	6.000% Non-Cumulative	November 29, 2016	December 1, 2021	6.000	Quarterly	1,000		500,000	483		483
Series I	5.000% Non-Cumulative	September 11, 2019	December 1, 2024	5.000	Quarterly	1,000		1,500,000	1,462		1,462
Series J	4.800% Non-Cumulative	January 31, 2020	June 1, 2025	4.800	Quarterly	1,000		1,250,000	1,209		1,209
Series K	4.625% Non-Cumulative	September 17, 2020	December 1, 2025	4.625	Quarterly	1,000		125,000	122		122
Total									$	4,847	$	4,847

__________

(1)Except for Series E, ownership is held in the form of depositary shares, each representing a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock.

Accumulated Other Comprehensive Income

AOCI primarily consists of accumulated net unrealized gains or losses associated with securities available for sale, changes in fair value of derivatives in hedging relationships, and foreign currency translation adjustments.

The following table includes the AOCI impacts from the adoption of the CECL standard and the changes in AOCI by component for the three months ended March 31, 2021 and 2020.

Table 9.2: AOCI


(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total











AOCI as of December 31, 2020	$	2,186	$	1,362	$	(31)	$	(23)	$	3,494
Other comprehensive income (loss) before reclassifications	(1,145)		(338)		19		0		(1,464)
Amounts reclassified from AOCI into earnings	(3)		(243)		0		(1)		(247)
Other comprehensive income (loss), net of tax	(1,148)		(581)		19		(1)		(1,711)

AOCI as of March 31, 2021	$	1,038	$	781	$	(12)	$	(24)	$	1,783


(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of December 31, 2019	$	935	$	354	$	(107)	$	(26)	$	1,156
Cumulative effects from the adoption of the CECL standard	(8)		0		0		0		(8)
Other comprehensive income (loss) before reclassifications	1,224		1,695		(67)		0		2,852
Amounts reclassified from AOCI into earnings	0		(321)		0		0		(321)
Other comprehensive income (loss), net of tax	1,224		1,374		(67)		0		2,531
AOCI as of March 31, 2020	$	2,151	$	1,728	$	(174)	$	(26)	$	3,679

__________

(1)Includes amounts related to cash flow hedges as well as the excluded component of cross-currency swaps designated as fair value hedges.

(2)Includes other comprehensive loss of $21 million and gain of $142 million for the three months ended March 31, 2021 and 2020, respectively, from hedging instruments designated as net investment hedges.

The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the three months ended March 31, 2021 and 2020.

Table 9.3: Reclassifications from AOCI


(Dollars in millions)		Three Months Ended March 31,
AOCI Components	Affected Income Statement Line Item		2021		2020
Securities available for sale:
	Non-interest income		$	4	$	0
	Income tax provision		1		0
	Net income		3		0
Hedging relationships:
Interest rate contracts:	Interest income		235		26
Foreign exchange contracts:	Interest income		1		7
	Interest expense		(1)		(1)
	Non-interest income		85		392
	Income from continuing operations before income taxes		320		424
	Income tax provision		77		103
	Net income		243		321
Other:
	Non-interest income and non-interest expense		1		0
	Income tax provision		0		0
	Net income		1		0
Total reclassifications			$	247	$	321

The table below summarizes other comprehensive income (loss) activity and the related tax impact for the three months ended March 31, 2021 and 2020.

Table 9.4: Other Comprehensive Income (Loss)


	Three Months Ended March 31,
	2021						2020
(Dollars in millions)	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
Other comprehensive income (loss):
Net unrealized gains (loss) on securities available for sale	$	(1,512)	$	(364)	$	(1,148)	$	1,610	$	386	$	1,224
Net unrealized gains (loss) on hedging relationships	(766)		(185)		(581)		1,808		434		1,374
Foreign currency translation adjustments(1)	13		(6)		19		(21)		46		(67)
Other	(1)		0		(1)		0		0		0
Other comprehensive income (loss)	$	(2,266)	$	(555)	$	(1,711)	$	3,397	$	866	$	2,531

__________

(1)Includes the impact of hedging instruments designated as net investment hedges.