Stockholders' Equity

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Stockholders' Equity

NOTE 10—STOCKHOLDERS’ EQUITY

Preferred Stock

The following table summarizes our preferred stock outstanding as of March 31, 2024 and December 31, 2023.

Table 10.1: 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, 2024	Carrying Value (in millions)
Series	Description	Issuance Date							March 31, 2024		December 31, 2023
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
Series L	4.375% Non-Cumulative	May 4, 2021	September 1, 2026	4.375	Quarterly	1,000		675,000	652		652
Series M	3.950% Fixed Rate Reset Non-Cumulative	June 10, 2021	September 1, 2026	3.950% through 8/31/2026; resets 9/1/2026 and every subsequent 5 year anniversary at 5-Year Treasury Rate +3.157%	Quarterly	1,000		1,000,000	988		988
Series N	4.250% Non-Cumulative	July 29, 2021	September 1, 2026	4.250%	Quarterly	1,000		425,000	412		412
Total									$	4,845	$	4,845

__________

(1)Except for Series M, 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 presents the changes in AOCI by component for the three months ended March 31, 2024 and 2023.

Table 10.2: AOCI

(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of December 31, 2023	$	(6,769)	$	(1,493)	$	26	$	(32)	$	(8,268)
Other comprehensive income (loss) before reclassifications	(844)		(587)		(13)		1		(1,443)
Amounts reclassified from AOCI into earnings	0		177		0		0		177
Other comprehensive income (loss), net of tax	(844)		(410)		(13)		1		(1,266)
AOCI as of March 31, 2024	$	(7,613)	$	(1,903)	$	13	$	(31)	$	(9,534)

(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of December 31, 2022	$	(7,676)	$	(2,182)	$	(20)	$	(38)	$	(9,916)
Other comprehensive income (loss) before reclassifications	962		198		13		0		1,173
Amounts reclassified from AOCI into earnings	0		203		0		0		203
Other comprehensive income (loss), net of tax	962		401		13		0		1,376
AOCI as of March 31, 2023	$	(6,714)	$	(1,781)	$	(7)	$	(38)	$	(8,540)

__________

(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 gains of $49 million and losses of $38 million for the three months ended March 31, 2024 and 2023, 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, 2024 and 2023.

Table 10.3: Reclassifications from AOCI

(Dollars in millions)		Three Months Ended March 31,
AOCI Components	Affected Income Statement Line Item	2024		2023
Securities available for sale:
	Non-interest income (loss)	$	0	$	0
	Income tax provision (benefit)	0		0
	Net income (loss)	0		0
Hedging relationships:
Interest rate contracts:	Interest income (loss)	(309)		(262)
Foreign exchange contracts:	Interest income	2		3
	Interest expense	(1)		(1)
	Non-interest income (loss)	74		(8)
	Income (loss) from continuing operations before income taxes	(234)		(268)
	Income tax provision (benefit)	(57)		(65)
	Net income (loss)	(177)		(203)
Other:
	Non-interest income and non-interest expense	0		0
	Income tax provision (benefit)	0		0
	Net income	0		0
Total reclassifications		$	(177)	$	(203)

The table below summarizes other comprehensive income (loss) activity and the related tax impact for the three months ended March 31, 2024 and 2023.

Table 10.4: Other Comprehensive Income (Loss)

	Three Months Ended March 31,
	2024						2023
(Dollars in millions)	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale	$	(1,115)	$	(271)	$	(844)	$	1,267	$	305	$	962
Net unrealized gains (losses) on hedging relationships	(542)		(132)		(410)		528		127		401
Foreign currency translation adjustments(1)	3		16		(13)		1		(12)		13
Other	1		0		1		0		0		0
Other comprehensive income (loss)	$	(1,653)	$	(387)	$	(1,266)	$	1,796	$	420	$	1,376

__________

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