10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                   to                 

Commission file number 1-15081

MUFG Americas Holdings Corporation

(Exact name of registrant as specified in its charter)

Delaware	94-1234979
(State of Incorporation)	(I.R.S. Employer Identification No.)
1251 Avenue of the Americas, New York, NY	10020
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (212) 782-5911

Securities registered pursuant to Section 12(b) of the Act:

None

(Title of each class)

Not applicable

(Name of each exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $1.00 per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer x  (Do not check if a smaller reporting company) Smaller reporting company o Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x

Aggregate market value of voting and non-voting common equity held by non-affiliates of the registrant: Not applicable; all of the voting stock of the registrant is owned by its parent, MUFG Bank, Ltd. and its ultimate parent, Mitsubishi UFJ Financial Group, Inc.

As of January 31, 2019, the number of shares outstanding of the registrant's Common Stock was 131,935,124.

DOCUMENTS INCORPORATED BY REFERENCE

None.

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION (I) (1) (a) AND (b) OF FORM 10-K AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.

MUFG Americas Holdings Corporation and Subsidiaries

Table of Contents

PART I
ITEM 1.	BUSINESS	7
	General	7
	Lines of Business	7
	Employees	7
	Competition	8
	Supervision and Regulation	8
ITEM 1A.	RISK FACTORS	19
ITEM 1B.	UNRESOLVED STAFF COMMENTS	36
ITEM 2.	PROPERTIES	36
ITEM 3.	LEGAL PROCEEDINGS	37
ITEM 4.	MINE SAFETY DISCLOSURES	37
PART II
ITEM 5.	MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	37
ITEM 6.	SELECTED FINANCIAL DATA	37
ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	37
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	37
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	37
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	37
ITEM 9A.	CONTROLS AND PROCEDURES	37
ITEM 9B.	OTHER INFORMATION	38
PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	39
ITEM 11.	EXECUTIVE COMPENSATION	39
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	39
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	39
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	40
PART IV
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	41
ITEM 16.	FORM 10-K SUMMARY	41
SIGNATURES		161

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Glossary of Defined Terms

The following acronyms and abbreviations are used throughout this report, particularly in Part I, Item 1. “Business," Item 1A. “Risk Factors,” Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” Item 7A. “Quantitative and Qualitative Disclosures About Market Risk” and Item 8. “Financial Statements and Supplementary Data.”

ACR	Americas Credit Review
ADR	American depositary receipt
Agency Securities	Securities guaranteed by a U.S. government agency
ALCO	Asset Liability Management Committee
ALM	Asset Liability Management
AMT	Alternative minimum tax
AOCI	Accumulated other comprehensive income
ARC	Americas Risk Committee
ASU	Accounting standards update
BCBS	Basel Committee on Banking Supervision
BHC	U.S. Bank Holding Company
BHCA	Bank Holding Company Act
CCAR	Comprehensive Capital Analysis and Review
CCPA	California Consumer Privacy Act of 2018
CD	Certificate of deposit
CECL	Current expected credit loss
CFPB	Consumer Financial Protection Bureau
CLO	Collateralized loan obligation
CMBS	Commercial mortgage-backed securities
COSO	Committee of Sponsoring Organizations of the Treadway Commission
CRA	Community Reinvestment Act
CRO	Chief Risk Officer
Dodd-Frank Act	Dodd-Frank Wall Street Reform and Consumer Protection Act
ECA	Executive Committee for the Americas
EGRRCPA	Economic Growth, Regulatory Relief and Consumer Protection Act
ESBP	Executive Supplemental Benefit Plan
Exchange Act	U.S. Securities Exchange Act of 1934
FASB	Financial Accounting Standards Board
FBO	Foreign banking organization
FDIA	Federal Deposit Insurance Act
FDIC	Federal Deposit Insurance Corporation
Federal Reserve	Board of Governors of the Federal Reserve System
FHLB	Federal Home Loan Bank
FICO	Fair Isaac Corporation
GAAP	Accounting principles generally accepted in the United States of America
GLBA	Gramm-Leach-Bliley Act
GSE	Government-sponsored enterprise
GSIB	Global systemically important banks
HQLA	High quality liquid assets
HRA Plan	MUFG Union Bank, N.A. Retiree Health Reimbursement Plan
IAA	Internal Audit for the Americas
IHC	Intermediate Holding Company
LCR	Liquidity Coverage Ratio

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Glossary of Defined Terms (Continued)

LIBOR	London Inter-bank Offered Rate
LIHC	Low income housing credit
LLC	Limited liability corporation
LTV	Loan-to-value
MBS	Mortgage-backed securities
MRM	Market Risk Management
MRMC	Market Risk Management Committee
MUAH	MUFG Americas Holdings Corporation
MUAH Plan	MUFG Americas Holdings Corporation Stock Bonus Plan
MUB	MUFG Union Bank, N.A.
MUFG	Mitsubishi UFJ Financial Group, Inc.
MUSA	MUFG Securities Americas Inc.
NAV	Net asset value
n/a	Not available
nm	Not meaningful
NY DFS	New York State Department of Financial Services
OCC	Office of the Comptroller of the Currency
OCI	Other comprehensive income
OFAC	U.S. Treasury's Office of Foreign Assets Control
OREO	Other real estate owned
ORMD	Operational Risk Management Department
PCAOB	Public Company Accounting Oversight Board
RMBS	Residential mortgage-backed securities
S&P	Standard & Poor's Ratings Services
SEC	Securities and Exchange Commission
TCJA	Tax Cuts and Jobs Act
TDR	Troubled debt restructuring
TLAC	Total Loss Absorbing Capacity
U.S. Basel lll Rules	Basel lll capitalization rules of the Basel Committee on Banking Supervision
VaR	Value-at-risk
VIE	Variable interest entity
Volcker Rule	Section 619 of the Dodd-Frank Act

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NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report includes forward-looking statements, which include expectations for our operations and business and our assumptions for those expectations. Do not rely unduly on forward-looking statements. Actual results might differ significantly compared to our expectations. See Part I, Item 1A. "Risk Factors," and the other risks described in this report for factors to be considered when reading any forward-looking statements in this filing.

Forward-looking statements are subject to the "safe harbor" created by section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. We may make forward-looking statements in our SEC filings, press releases, news articles and when we are speaking on behalf of MUFG Americas Holdings Corporation and its subsidiaries. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Often, they include the words "believe," "expect," "target," "anticipate," "intend," "plan," "seek," "estimate," "potential," "project," "forecast," "outlook," words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," "might," or "may." These forward-looking statements are intended to provide investors with additional information with which they may assess our future potential. All of these forward-looking statements are based on assumptions about an uncertain future and are based on information known to our management at the date of these statements. We do not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date any forward-looking statements are made.

In this document and other reports to the SEC, for example, we make forward-looking statements, which discuss our expectations about:

• Our business objectives, strategies and initiatives, organizational structure, business growth, competitive position and prospects, and the effect of competition on our business and strategies

• Our assessment of significant factors and developments that have affected or may affect our results

• Our assessment of economic conditions and trends, economic and credit cycles and their impact on our business

• The economic outlook for the U.S. in general, West Coast states and global economies

• The impact of changes in interest rates resulting from changes in Federal Reserve policy or for other reasons, our strategy to manage our interest rate risk profile and other market risks, our outlook for short-term and long-term interest rates and their effect on our net interest margin, our investment portfolio, our balance sheet composition, our borrowers’ ability to service their loans and residential mortgage loans and refinancings

• Pending and recent legislative and regulatory actions, and future legislative and regulatory developments, including the effects of legislation and other governmental measures, including the monetary policies of the Federal Reserve introduced in response to the financial crisis, and the ensuing recession affecting the banking system, financial markets and the U.S. economy, the Dodd-Frank Act, the EGRRCPA, changes to the deposit insurance assessment policies of the FDIC, the effect on and application of foreign and other laws and regulations to our business and operations, and anticipated fees, costs or other impacts on our business and operations as a result of these developments

• Our strategies and expectations regarding capital levels and liquidity, our funding base, deposits, long-term debt, issuance of additional notes under the Bank's unsecured bank note program, our expectations regarding the capital, liquidity and enhanced prudential standards adopted by the U.S. bank regulators as a result of or under the Dodd-Frank Act and the BCBS capital and liquidity standards including the Federal banking agencies' TLAC regulation, and other recently adopted and proposed regulations by the U.S. federal banking agencies, and the effect of the foregoing on our business and expectations regarding compliance

• Regulatory and compliance controls and processes and their impact on our business, including our operating costs and revenues

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• The costs and effects of legal actions, investigations, regulatory actions, criminal proceedings or similar matters, our anticipated litigation strategies, our assessment of the timing and ultimate outcome of legal actions, or adverse facts and developments related thereto

• Our allowance for credit losses, including the conditions we consider in determining the unallocated allowance and our portfolio credit quality, probability of default and credit migration trends, and severity of loss upon default

• Loan portfolio composition and risk rating trends, residential loan delinquency rates compared to the industry average, portfolio credit quality, our strategy regarding TDRs, and our intent to sell or hold loans we originate

• Our intent to sell or hold, and the likelihood that we would be required to sell, or expectations regarding recovery of the amortized cost basis of, various investment securities

• Our hedging strategies, positions, expectations regarding reclassifications of gains or losses on hedging instruments into earnings; and the sensitivity of our net income to various factors, including customer behavior relating to mortgage prepayments and deposit repricing

• Expected rates of return, maturities, yields, loss exposure, growth rates, pension plan strategies, contributions and benefit payments, forecasted balance sheet activity and projected results

• Tax rates and taxes, the possible effect of changes in taxable profits of the U.S. operations of MUFG on our state tax obligations and of expected tax credits or benefits

• Critical accounting policies and estimates, the impact or anticipated impact of recent accounting pronouncements, guidance or changes in accounting principles and future recognition of impairments for the fair value of assets, including goodwill, financial instruments, intangible assets and other assets

• Decisions to downsize, sell or close units, dissolve subsidiaries, expand our branch network, pursue acquisitions, purchase banking facilities and equipment, realign our business model or otherwise restructure, reorganize or change our business mix, or the transfer to MUAH by MUFG of its interests in U.S. subsidiaries, and their timing and impact on our business

• Our expectations regarding the impact of acquisitions on our business and results of operations

• The impact of changes in our credit ratings including methodology changes adopted by rating agencies

• Maintenance of casualty and liability insurance coverage appropriate for our operations

• The relationship between our business and that of MUFG Bank, Ltd. and MUFG, the impact of their credit ratings, operations or prospects on our credit ratings and actions that may or may not be taken by MUFG Bank, Ltd. and MUFG

• Threats to the banking sector and our business due to cyber-security issues and attacks on financial institutions and other businesses, such as large retailers, and regulatory expectations relating to cyber-security

• Our understanding that MUFG Bank, Ltd. will continue to limit its participation in transactions with Iranian entities and individuals to certain types of transactions

• The objectives and effects on operations of our business integration initiative and its near term effect on our balance sheet, earnings and capital ratios

• The effect of a possible return of the California drought on its economy and related governmental actions and the potential consequences of recent California wildfires or other natural disasters

• Descriptions of assumptions underlying or relating to any of the foregoing

Readers of this document should not rely unduly on any forward-looking statements, which reflect only our management’s belief as of the date of this report. There are numerous risks and uncertainties that could cause actual outcomes and results to differ materially from those discussed in our forward-looking statements. Many of these factors are beyond our ability to control or predict and could have a material adverse effect on our financial condition, results of operations or prospects. Such risks and uncertainties include, but are not limited

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to, those described or referred to in Part I, Item 1. "Business" under the captions "Competition" and "Supervision and Regulation", Item 1A. "Risk Factors" and Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-K and in our other reports to the SEC. 

Any factor described in this report or in our other reports could by itself, or together with one or more other factors, adversely affect our business, prospects, results of operations or financial condition.

PART I

ITEM 1.   BUSINESS

General

We are a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. (MUB or the Bank) and MUSA. We are owned by MUFG Bank, Ltd. and MUFG. MUFG Bank, Ltd. is a wholly-owned subsidiary of MUFG. As used in this Form 10-K, terms such as "the Company," "we," "us" and "our" refer to MUFG Americas Holdings Corporation (MUAH), one or more of its consolidated subsidiaries, or to all of them together.

We provide a wide range of financial services to consumers, small businesses, middle-market companies and major corporations, both nationally and internationally. The Company also provides various business, banking, financial, administrative and support services, and facilities for MUFG Bank, Ltd. in connection with the operation and administration of MUFG Bank, Ltd.'s business in the U.S. (including MUFG Bank, Ltd.'s U.S. branches). The Bank and MUFG Bank, Ltd. are parties to a master services agreement whereby the Bank earns fee income in exchange for these services.

The Company has four reportable segments: Regional Bank, U.S. Wholesale & Investment Banking, Transaction Banking and MUSA. We service U.S. Wholesale & Investment Banking, certain Transaction Banking, and MUSA customers through the MUFG brand and serve Regional Bank and Transaction Banking customers through the Union Bank brand. The Company’s leadership team is bicoastal with Regional Bank and Transaction Banking leaders on the West Coast while U.S. Wholesale & Investment Banking and MUSA leaders are based in New York City. The corporate headquarters (principal executive office) for MUB, MUSA and MUAH is in New York City. MUB's main banking office is in San Francisco. The Company had consolidated assets of $168.1 billion at December 31, 2018.

On July 1, 2016, MUFG designated MUAH as its U.S. Intermediate Holding Company and transferred substantially all its U.S. subsidiaries to the IHC in accordance with the requirements of the U.S. Federal Reserve Board's final rules for Enhanced Prudential Standards. MUFG's remaining U.S. subsidiaries were transferred to MUAH on July 1, 2017. The remaining subsidiaries transferred have been included in MUAH's financial results on a prospective basis. The Company issued 11,258,882 shares to MUFG Bank, Ltd. and MUFG in exchange for the transferred subsidiaries. For additional information regarding related party transactions, refer to Note 21 of our Consolidated Financial Statements in Part II, Item 8. "Financial Statements and Supplementary Data" of this Form 10-K.

All reports that we file or furnish electronically with the SEC, including the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and current reports on Form 8-K, as well as any amendments to those reports, are accessible at no cost at www.unionbank.com as soon as reasonably practicable after we electronically file such reports with, or furnish them to, the SEC. These filings are also accessible on the SEC's website at www.sec.gov.

Lines of Business

Our operations are organized into four reportable segments: Regional Bank, U.S. Wholesale & Investment Banking, Transaction Banking and MUFG Securities Americas. These segments and their financial information are described more fully in Note 22 to our Consolidated Financial Statements included in this Form 10-K.

Employees

At December 31, 2018, we had approximately 13,250 full-time equivalent employees.

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Competition

Banking is a highly competitive business. We compete actively for loan, deposit, and other financial services business both nationally and internationally. Our competitors include a large number of state and national banks, thrift institutions, credit unions, finance companies, mortgage banks and major foreign-affiliated or foreign banks, as well as many financial and nonfinancial firms that offer services similar to those offered by us, including many large securities firms, financial services subsidiaries of commercial and manufacturing companies and marketplace lenders. Many of these competitors enjoy fewer regulatory restraints and some may have lower cost structures. Some of our competitors are community or regional banks that have strong local market positions, while others include large financial institutions that have substantial capital, technology and marketing resources.

The financial services industry is also becoming more competitive as further technological advances enable more companies to provide financial services. These technological advances increasingly allow parties to complete financial transactions electronically and may diminish the importance of depository institutions and other financial intermediaries.

Current federal law has made it easier for out-of-state banks to enter and compete in the states in which we operate. Competition in our principal markets may further intensify as a result of the Dodd-Frank Act which, among other things, permits out-of-state de novo branching by national banks, state banks, and foreign banks from other states.

The primary factors in competing for business include pricing, convenience of office locations and other delivery methods, range of products offered, customer relationships, and level of services offered.

Supervision and Regulation

BHCs, banks and securities broker-dealers are extensively regulated under federal and state law. This regulation is intended primarily for the safety and soundness of banks, the protection of bank depositors, brokerage and other customers, the Federal Deposit Insurance Fund, the Securities Investors Protection Fund and the U.S. banking and financial services system as a whole, and not for the benefit of investors in securities issued by a BHC or bank. Set forth below is a summary description of significant laws and regulations and other legal authorities that relate to our operations and those of our subsidiaries, including MUB and MUSA. This summary description of applicable legal authorities is not complete and is qualified by reference to such legal authorities and does not address every legal authority. Financial statutes, regulations and policies are continually under review by Congress and state legislatures and federal and state regulatory agencies, and a change in them, including changes in how they are interpreted, implemented or applied in a specific instance, could have a material effect on our business and operations.

Principal Federal Banking Laws

BHCA and the GLBA. The Company, MUFG and MUFG Bank, Ltd. are subject to regulation under the BHCA, which subjects us to Federal Reserve reporting, supervision and examination and other requirements. Generally, the BHCA restricts our ability to invest in non-banking entities, and we may not acquire more than five percent of the voting shares of any domestic bank without the prior approval of the Federal Reserve. Our activities are limited, with some exceptions, to the business of banking, managing or controlling banks, and other activities that the Federal Reserve deems to be so closely related to banking as to be a proper incident thereto.

The GLBA allows “financial holding companies” to offer banking, insurance, securities and other financial products. Among other things, the GLBA provides a framework for BHCs to engage in new financial activities under certain conditions. MUAH, MUFG Bank, Ltd. and MUFG are financial holding companies under the BHCA. A financial holding company is authorized to engage in activities beyond those permissible for a BHC that are deemed to be financial in nature or incidental to such financial activity as well as certain specified non-banking activities deemed to be closely related to banking. In order to maintain its status as a financial holding company, a BHC must continue to meet certain standards established by the Federal Reserve. Those standards require that a financial holding company exceed the minimum standards applicable to BHCs that have not elected to become financial holding companies. These higher standards include meeting the “well capitalized” and “well managed” standards for financial holding companies as defined in the regulations of the Federal Reserve. The Federal Reserve has the authority to limit the ability of a financial holding company (or any of its affiliates) to

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conduct otherwise permissible activities if the financial holding company or any of its depositary institution subsidiaries ceases to meet these standards.  If the deficiencies are not corrected, the Federal Reserve may require that the financial holding company either terminate any activity that is not permissible for a BHC or divest control of a deficient depository institution subsidiary.  Failure to comply can also result in the assessment of civil money penalties against the financial holding company. In addition, a financial holding company must ensure that its U.S. banking subsidiaries meet certain minimum standards under the Community Reinvestment Act of 1977.

National Bank Act. MUB, our principal U.S. banking subsidiary, is chartered under and subject to the National Bank Act which, together with the regulations of the OCC, governs many aspects of the corporate activities and banking operations of national banks, including the powers and duties of national banks, the payment of dividends on capital stock, conduct of loan, investment and fiduciary activities, minimum capital ratios, the opening and closing of branches, the acquisition of other banking entities or financial companies and many other matters.

Principal Federal Banking Regulatory Agencies

Federal Reserve. As a BHC and financial holding company, we are subject to the extensive regulation, supervision and examination authority of the Federal Reserve. The Federal Reserve also has extensive enforcement authority over all BHCs. Such authority includes the power to assess civil monetary penalties against any BHC violating any provision of the BHCA or any regulation or order of the Federal Reserve under the BHCA. The Federal Reserve also has the power to order termination of activities or ownership of non-bank subsidiaries of the holding company if it determines there is reasonable cause to believe that the activities or ownership of the non-bank subsidiaries constitutes a serious risk to the financial safety, soundness or stability of banks owned by the BHC. Willful violations of the BHCA or regulations or orders of the Federal Reserve can also result in criminal penalties for the BHC and any individuals participating in such conduct.

Comptroller of the Currency. MUB, as a national banking association, is subject to broad regulation and oversight of all its operations by the OCC, its primary federal banking regulator, and also by the Federal Reserve and the FDIC. MUB is required to file periodic reports with the OCC and is subject to ongoing supervision and examination by the OCC.

The OCC has extensive enforcement authority over national banks. If, during an examination of a bank or otherwise, the OCC determines that the financial condition, capital resources, asset quality, earnings prospects, management, liquidity, interest rate sensitivity, or other aspects of the bank’s operations are unsatisfactory or that the bank or its management is violating or has violated any laws or regulations, various remedies are available to the OCC, including the power to enjoin “unsafe or unsound” practices, to require affirmative action to correct any conditions resulting from any violation or practice, to issue an administrative order that can be judicially enforced to increase capital, to restrict the growth of the bank, to assess civil monetary penalties, to remove officers and directors and/or ultimately to terminate the bank’s charter. The OCC also has broad authority to address bank activity it deems to constitute an unsafe or unsound practice.

The OCC has adopted guidelines that establish minimum standards for the design and implementation of a risk governance framework for large national banks with average total consolidated assets of $50 billion or more, such as MUB. The guidelines establish specific risk management-related roles and responsibilities for three designated functions: a bank’s “front line” public-facing business; independent risk management; and internal audit.

The OCC has also provided additional guidance to national banks for assessing and managing risks associated with third-party relationships, including any business relationship between a bank and another entity, by contract or otherwise. The guidance includes regulatory expectations for planning, due diligence, third-party selection, contract negotiation and ongoing monitoring of third-party relationships that banks should consider when outsourcing bank functions. The guidance could have an impact on MUB’s selection of vendors to which it outsources certain functions and on MUB’s contract negotiations, particularly with respect to representations and warranties and indemnification by the vendors it may select.

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In November 2017, MUFG Bank, Ltd. applied to the OCC to convert its state-licensed branches and agencies in the U.S. to federal branches and agencies; the OCC approved the conversion applications and issued federal licenses to such branches and agencies in November 2017.  For additional information, see “MUFG Bank, Ltd.'s and Mitsubishi UFJ Financial Group’s credit ratings and financial or regulatory condition could adversely affect our operations” in Part I, Item 1A. "Risk Factors" in this Report on Form 10-K.

Consumer Financial Protection Bureau. The CFPB has direct supervision and examination authority over banks with more than $10 billion in assets, including MUB. The CFPB’s responsibilities include implementing and enforcing federal consumer financial protection laws, reviewing the business practices of financial services providers for legal compliance, monitoring the marketplace for transparency on behalf of consumers and responding to complaints and questions from consumers about consumer financial products and services. The Dodd-Frank Act added prohibitions on unfair, deceptive or abusive acts and practices to the scope of consumer protection regulations overseen and enforced by the CFPB. In various public pronouncements and enforcement actions, the CFPB has focused on a variety of practices it deems to be unfair, deceptive or abusive, including the following: credit-card add-on products, including billing of consumers for credit-monitoring services without prior consent; failing to accept or timely post payments; failure to honor loan modifications after the loan servicing is transferred; various debt collection practices, including sending foreclosure notices to borrowers who were current on their loans; and various practices relating to debts owed by service members, such as threatening to contact the members’ commanding officers about loan arrears or burying the contractual authorization for this practice in the lending contract. The CFPB has also focused on automobile dealer discretionary interest rate markups and on holding banks and other purchasers of such contracts responsible for unlawful disparities in markups charged by dealers to borrowers of different races or ethnicities. The CFPB also has finalized rules that impact many aspects of residential mortgage loans and lending practices, including a requirement that banks develop and implement procedures to ensure compliance with a borrower’s “reasonable ability to repay” test, make new or revised disclosures and revise policies and procedures for originating and servicing residential mortgage loans. Various pronouncements from recently appointed and other CFPB officers and recent CFPB actions have suggested it is undertaking a review of, and changes to, its past methods and practices, which could give rise to additional operational, regulatory and other risks.

Financial Stability Oversight Council. The Financial Stability Oversight Council (consisting of the Secretary of the Treasury, heads of the federal banking regulatory agencies and the SEC, and certain other officials) provides oversight of all risks created within the U.S. economy from the activities of financial services companies and supports enhanced prudential regulation. It also has the authority to recommend stricter standards for the largest, most interconnected financial services and other firms. Where it determines that certain practices or activities pose a threat to financial stability, it may make recommendations to the primary financial regulatory agencies for new or heightened regulatory standards. The Financial Stability Oversight Council must determine which BHCs and non-bank financial companies pose risks to U.S. financial stability, and subject those companies to the supervision and regulation of the Federal Reserve. BHCs over $50 billion in consolidated assets are considered to be “large interconnected bank holding companies” and automatically designated as “systemically significant.” The Company falls within this category, and therefore, is subject to heightened prudential standards including enhanced capital, leverage, and liquidity standards, as well as credit exposure reporting, concentration limits, stress testing and resolution plan requirements.

Dodd-Frank Act and Related Regulations

The Dodd-Frank Act, enacted in 2010, has resulted in sweeping changes to the U.S. financial system. Many provisions of the law have been implemented by rules and regulations of the federal banking agencies but, as discussed below, certain provisions of the law are yet to be implemented and therefore the full scope and impact of the law on banking institutions generally, and specifically on our business cannot, be fully determined at this time. The Dodd-Frank Act also provides authority to the FDIC to serve as receiver in the liquidation of systemically important non-bank financial companies, including BHCs. Liquidation proceedings for such companies will be funded by borrowings from the U.S. Treasury and risk-based assessments on covered financial companies. In circumstances where there is a shortfall after assessments on creditors of a failed company, there may be assessments on BHCs with consolidated assets of $50 billion or more, such as the Company.

President Trump signed into law the Economic Growth, Regulatory Relief and Consumer Protection Act (the “EGRRCPA”), which amended various provisions of the Dodd-Frank Act as well as other federal banking

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statutes on May 24, 2018. Among other things, the EGRRCPA raised the threshold for designation as a systemically important financial institution from $50 billion to $250 billion in assets, removed BHCs with less than $100 billion in assets from the application of enhanced prudential standards and eliminated the applicability of enhanced prudential standards to BHCs with between $100 billion and $250 billion in assets 18 months after enactment unless the Federal Reserve by order or rule determines to apply enhanced prudential standards to any such institution. The Federal Reserve is authorized to establish by order or rule tailored enhanced prudential standards, including periodic stress tests and liquidity requirements, for BHCs with between $100 billion and $250 billion in assets and is required to tailor the application of enhanced prudential standards to BHCs of any size based on certain factors, including capital structure, riskiness, complexity, financial activities, size and other risk-related factors that the Federal Reserve deems appropriate. With respect to foreign banking organizations (“FBOs”), the EGRRCPA states it does not affect the continued applicability of enhanced prudential standards to FBOs with global assets equal to or greater than $100 billion or limit the authority of the Federal Reserve to impose enhanced prudential standards requirements with respect to, or tailor the regulation of, an FBO with total assets equal to or greater than $100 billion, including the requirement that it establish an IHC. Because MUFG, as an FBO, has total assets in excess of $100 billion, the Company expects that it will remain subject to the Federal Reserve’s enhanced prudential standards rules even though various domestic BHCs with a size comparable to MUAH will be relieved from compliance with such rules.

As required by the Dodd-Frank Act, the Federal Reserve adopted rules regarding stress testing requirements for large BHCs such as the Company. The OCC also adopted similar rules for large national banks such as MUB. The stress testing rules govern the timing and type of stress testing activities required of large BHCs and banks as well as rules governing testing controls, oversight and disclosure requirements. The stress testing rules limit the ability of a BHC to make capital distributions to the extent that its actual capital issuances are less than the amount indicated in its capital plan, measured on a quarterly basis.

As required by the Dodd-Frank Act, the Federal Reserve adopted final rules regarding enhanced prudential standards for both large U.S. BHCs, such as the Company, and FBOs operating in the U.S., such as MUFG Bank, Ltd. These integrated rules include the Federal Reserve’s resolution plan, capital plan and stress testing rules, as well as a final rule regarding enhanced prudential standards. (The resolution, capital plan and stress testing rules are discussed below in this section.) The final enhanced prudential standards rule addresses a diverse array of regulatory subjects, each of which is highly complex. In some instances, the rule implements new financial regulatory requirements and in other instances it overlaps other regulatory reforms already in existence (such as the Basel III capital and liquidity reforms and stress testing requirements discussed elsewhere in this report). For large domestic BHCs, such as the Company, and FBO’s operating in the U.S., such as MUFG Bank, Ltd., the final enhanced prudential standards rule formalizes governance and oversight processes with respect to various prudential standards already in place through the Federal Reserve’s other rule-makings, as described in this section, but also imposed certain additional requirements such as an internal liquidity stress testing regime (intended to be complementary to the Federal Reserve’s liquidity coverage ratio proposal discussed below) and maintenance of a related liquidity buffer.

In March 2016, the Federal Reserve re-proposed its single counterparty credit limit rule. The re-proposed rule would impose a general limit on the credit exposure to an unaffiliated counterparty of a U.S. or foreign bank holding company with $50 billion or more in total consolidated assets and any IHC to a maximum of 25% of such company's total capital. A stricter credit exposure limit of 25% of Tier 1 Capital is applied to such a company which has $250 billion or more in total consolidated assets or $10 billion or more in on-balance sheet foreign exposure. The strictest restrictions would apply to such a BHC which is classified as a globally systemic important banking organization. For such companies, a credit exposure limit to unaffiliated major counterparties (with assets of $500 billion or more) of 15% of Tier 1 Capital would be applied in addition to application of an aggregate net credit exposure limit to other counterparties of 25% of Tier 1 capital.

The final enhanced prudential standards rules relating to FBOs are similar in various respects to those adopted for large domestic BHCs, such as enhanced requirements relating to risk management, including liquidity risk management and capital adequacy and liquidity stress testing. However, the final FBO rules differ in various respects from the domestic BHC rules. For example, a large FBO must certify to the Federal Reserve that it meets capital adequacy standards established by its home country supervisor that are consistent with the BCBS framework. If the FBO does not satisfy such requirements, the Federal Reserve may impose requirements, conditions or restrictions on its U.S. activities.

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In addition, the final FBO rules require that an FBO with $50 billion or more of non-branch assets in the U.S. (such as MUFG Bank, Ltd.) operate in the U.S. through an IHC structure. The FBO is required to hold its interest in any U.S. subsidiary through the IHC, which will be its top-tier U.S. subsidiary. U.S. branches of FBOs, such as those of MUFG Bank, Ltd., are excluded from this requirement. The final FBO standards had a July 1, 2016 initial compliance date and generally deferred application of a specified IHC leverage ratio until 2018. MUAH became the IHC for the U.S. operations of MUFG and MUFG Bank, Ltd. on July 1, 2016.

Additionally, in December 2016, the Federal Reserve finalized rules imposing new TLAC requirements on GSIBs with operations in the U.S., such as MUFG. The Company, which serves as MUFG’s designated IHC in the U.S., will be required to maintain a minimum amount of total loss-absorbing capacity, which must be met with a combination of Tier 1 regulatory capital and long-term debt. Due to MUFG’s single point of entry resolution approach, the Company will be subject to a minimum level of internal TLAC, which must be issued either to a foreign company that controls the Company (in this case MUFG Bank, Ltd. or MUFG) or to another directly or indirectly wholly-owned foreign subsidiary of MUFG. TLAC Tier 1 regulatory capital is intended to absorb ongoing losses, while the conversion of TLAC eligible long-term debt into common equity is intended to recapitalize the Company prior to any bankruptcy or insolvency proceedings. The Company became subject to these new rules on January 1, 2019. During the fourth quarter of 2018, the Company restructured existing debt issued to MUFG Bank, Ltd. and replaced a portion of its externally-placed debt with the issuance of internal TLAC-eligible debt issued to MUFG Bank, Ltd. in order to comply with the new rules.

Under the Dodd-Frank Act and Federal Reserve regulations, a BHC is required to serve as a source of financial and managerial strength to its subsidiary banks and may not conduct its operations in an unsafe or unsound manner. Under these requirements, a BHC may be required to contribute additional capital to an undercapitalized subsidiary bank. However, this additional capital may be required at times when the BHC may not have the resources to provide such support, or may not be inclined to provide such support under the then existing circumstances.

The federal financial regulatory agencies adopted final rules implementing Section 619 of the Dodd-Frank Act, commonly known as the Volcker Rule. The final rule generally prohibits banking entities from engaging in short-term proprietary trading of securities, derivatives, commodity futures and associated options for their own account. The final rule provides exemptions for certain activities, including certain types of market making, underwriting, hedging of specific, identifiable risks of individual or aggregated positions and trading in U.S. government, agency, state and municipal obligations. These exemptions are limited if they involve a material conflict of interest, a material exposure to high-risk assets or trading strategies or a threat to the institution’s safety and soundness or to that of the U.S. financial system. The rules also exempt trading for customers in a fiduciary capacity or in riskless principal trades, subject to certain requirements.

The Volcker Rule also prohibits banking entities from owning or sponsoring hedge funds and private equity funds (covered funds), subject to certain exclusions. MUB sold the vast majority of its non-conforming private equity fund interests after the Volcker Rule was proposed.

The Volcker Rule also provides compliance requirements generally requiring banking entities to establish an internal compliance program reasonably designed to ensure and monitor compliance with the final rules. As a larger banking entity, the Company was required to establish a more detailed compliance program.

Although we have incurred increased compliance costs as a result of the Volcker Rule, we do not anticipate a material adverse impact to our financial results as revenue from prohibited proprietary trading and covered fund investment activities does not contribute significantly to our financial results.

The Dodd-Frank Act also changed the existing standard for the federal preemption of state consumer financial laws to allow a court or the OCC to preempt a state consumer financial law only if it discriminates against national banks, prevents or significantly interferes with the exercise by the national bank of its powers or the state law is preempted by another federal law. This change was intended to allow greater regulation of national banks under state law and may result in increased consumer protection requirements being imposed on national banks. The Dodd-Frank Act also eliminated the extension of federal preemption under the National Bank Act to operating subsidiaries of national banks negating certain OCC regulations and court decisions. The Act also authorized state law enforcement authorities to bring lawsuits under state law against national banks, thus

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subjecting national banks to varying and potentially conflicting interpretation of law by state attorneys general and state agencies. This could result in increased compliance costs for national banks. The Act also required the OCC to make preemption determinations on particular state consumer financial laws on a case-by-case basis, rather than making preemption determinations on broad categories of laws.

Regulatory Capital and Liquidity Standards

The federal banking regulatory agencies have adopted risk-based capital standards under which a banking organization’s capital is compared to the risks associated with assets reflected on its balance sheet as well as its off-balance sheet exposures, such as letters of credit.

Regulatory Capital Rules. The Federal Reserve and the other U.S. federal banking agencies have adopted final rules to implement the Basel III capitalization rules of the BCBS for banking organizations located in the United States (U.S. Basel III Rules). The U.S. Basel III Rules replace the U.S. federal banking agencies’ general risk-based capital rules, advanced approaches rule, market-risk rule, and leverage rules, in accordance with certain transition provisions. In December 2014, MUAH received approval from the Federal Reserve to opt-out of the advanced approaches rules for holding companies. MUAH became subject to the U.S. Basel III Rules on January 1, 2015, with certain provisions subject to a phase-in period. MUB previously opted-in to the advanced approaches risk-based capital rules, and therefore was required to comply with the U.S. Basel III Rules beginning on January 1, 2014. However, effective September 30, 2017, the OCC approved MUB's request to opt-out of the U.S. Basel III Rules advanced approaches, including MUB's one-time permanent election to exclude certain components of AOCI from its regulatory capital calculations. The U.S. Basel III Rules generally establish more restrictive capital definitions, create additional categories and higher risk-weightings for certain asset classes and off-balance sheet exposures, and higher leverage ratios and capital conservation buffers that are added to the minimum capital requirements and must be satisfied for banking organizations to avoid becoming subject to certain limitations on dividends and discretionary bonus payments to executive officers. The U.S. Basel III Rules also implement higher minimum capital requirements.

The U.S. Basel III Rules also provide for various adjustments and deductions to the definitions of regulatory capital that became fully effective on December 31, 2017. Under these rules, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, a banking organization must hold a capital conservation buffer above its minimum risk-based capital requirements (equal to 2.50% of its total risk-weighted assets). The capital conservation buffer is designed to absorb losses during periods of economic stress. The implementation of the capital conservation buffer began on January 1, 2016, at the 0.625% level and is being implemented on a phased-in basis over a four-year period (increasing by that amount on each subsequent January 1, until it reached the 2.5% standard on January 1, 2019).

In January 2014, the BCBS issued an updated version of its leverage ratio and disclosure guidance (the “Basel III leverage ratio”). The BCBS guidance continues to set a minimum Basel III leverage ratio of 3%. In April 2016, the BCBS proposed, among other things, that for purposes of calculating the denominator of the leverage ratio, off-balance sheet exposures of banks to securitization transactions should be treated the same as such exposures are treated under the BCBS revisions to its securitization framework for risk-based capital. The BCBS further amended the leverage ratio, among other revisions to its Basel III capital framework, in December 2017 (“Basel IV”). The Basel IV revisions refine the definition of the leverage ratio “exposure measure” (the Basel III term for total non-risk-weighted assets), and introduce a leverage ratio buffer applicable to GSIBs, requiring GSIBs to maintain a higher leverage ratio. Beginning January 1, 2022, the updates to the leverage ratio will be implemented and the BCBS leverage ratio buffer will apply to GSIBs.

Prompt Corrective Action. Under the OCC’s prompt corrective action regulations (established pursuant to Section 38 of the Federal Deposit Insurance Act), a bank is assigned to one of five capital categories ranging from “well-capitalized” to “critically under- capitalized.” Institutions that are “under-capitalized” or lower are subject to increasingly more restrictive mandatory supervisory corrective actions. At each successively lower capital category, an insured bank is subject to increased restrictions on its operations. Failure to meet regulatory capital guidelines can result in a bank being required to raise additional capital. An “under-capitalized” bank must develop a capital restoration plan and its parent holding company must generally guarantee the bank’s compliance

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with the plan. The OCC has amended its prompt corrective action regulations to reflect the changes made to the regulatory capital requirements by the U.S. Basel III Rules.

For additional information regarding the regulatory capital positions of MUAH and MUB, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Capital Management” in Part II, Item 7 of this Report on Form 10-K and Note 18 to our Consolidated Financial Statements in this Report on Form 10-K.

Comprehensive Capital Analysis and Review Program. MUAH is subject to regulatory requirements to develop and maintain a capital plan which must be reviewed and approved by its Board of Directors (or designated subcommittee thereof); however, MUAH was granted regulatory administrative relief in 2019 and is not required to  submit its capital plan to the Federal Reserve or participate in the 2019 Comprehensive Capital Analysis and Review (CCAR 2019) process.  The Company remains subject to future cycles of the Federal Reserve’s CCAR program.  CCAR evaluates capital planning processes and assesses capital adequacy levels under various scenarios to determine if BHCs would have sufficient capital to continue operations throughout times of economic and financial market stress.  Depending on the circumstances, failure to attain a non-objection of a BHC’s CCAR plan from the Federal Reserve could have a variety of adverse consequences for the institution, including a requirement to augment capital, restrain growth or other adverse consequences.  The Federal Reserve’s capital plan and stress testing rules for bank holding companies provide that the Federal Reserve may not object to a capital plan on the basis of qualitative deficiencies in the BHC’s capital planning process if the BHC has total consolidated assets of at least $50 billion but less than $250 billion, nonbank assets of less than $75 billion and is not controlling a U.S. global systemically important bank (large but noncomplex firms).  Under these rules, such bank holding companies’ capital planning processes will be evaluated during the Federal Reserve’s regular ongoing supervisory activities.

Liquidity Coverage Ratio. The U.S. banking agencies adopted a rule implementing a standardized quantitative liquidity requirement generally consistent with the LCR standard, which was included in the Basel III framework of the BCBS. This LCR rule is designed to ensure that covered banking organizations maintain an adequate level of cash and HQLA, such as central bank reserves and government and corporate debt, to meet estimated net liquidity needs in a short-term stress scenario using specified liquidity inflow and outflow assumptions (that produce net cash outflow). An institution’s LCR is the amount of its HQLA, as defined and calculated in accordance with the reductions and limitations in the rules, divided by its net cash outflow, with the quotient expressed as a percentage. While the LCR standard generally applies to all internationally active banking organizations with $250 billion or more in total consolidated assets or $10 billion or more in on-balance sheet foreign exposures, the rule also applies a less stringent, modified LCR to BHCs that are not internationally active, and have more than $50 billion in total assets (such as the Company). Under the LCR rule, financial institutions must maintain an LCR equal to at least 100% based on the entity’s total projected net cash outflows over the next 30 calendar days, effectively using net cash outflow assumptions equal to 70% of the outflow assumptions prescribed for internationally active banking organizations. The Company is in compliance with the requirements of the modified LCR standard. Under the LCR rule, commencing in 2019, the Company and other bank holding companies subject to the rule will be required to make periodic public disclosure on their websites of quantitative and qualitative aspects of their LCR within 60 days after calendar year-end (45 days for quarterly filings).

Other Federal Laws and Regulations Affecting Banks

There are additional requirements and restrictions in the laws of the U.S. and states in which MUB and its subsidiaries conduct operations. The consumer lending and other banking activities of MUB are subject to extensive regulation under various state laws as well as the federal laws discussed above. Furthermore, due to MUFG Bank, Ltd.’s controlling ownership of the Company, regulatory requirements adopted or enforced by the Government of Japan may have an impact on the activities and investments of the Company in the future.

Deposit Insurance. Customer deposits maintained by MUB are insured up to statutory limits (currently $250,000 per depositor, subject to certain exceptions) by the FDIC and, accordingly, are subject to deposit insurance assessments. Deposit insurance assessment rates are subject to change by the FDIC and can be impacted by the overall economy and the stability of the banking industry as a whole.

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As required by the Dodd-Frank Act, the FDIC adopted a comprehensive, long-range restoration plan for the deposit insurance fund to increase the fund’s reserves relative to total insured deposits in the U.S. The ultimate effect on our business of legislative, regulatory and economic developments on the deposit insurance fund cannot be predicted with certainty.

The FDIA provides that, in the event of the liquidation or other resolution of an insured depository institution, the claims of its depositors (including claims by the FDIC as subrogee of insured depositors) and certain claims for administrative expenses of the FDIC as receiver would be afforded a priority over other general unsecured claims against such an institution. If an insured depository institution fails, claims of insured and uninsured depositors and the FDIC will be placed ahead of unsecured, non-deposit creditors, in order of priority of payment.

If any insured depository institution becomes insolvent and the FDIC is appointed its conservator or receiver, the FDIC may, in most cases, disaffirm or repudiate any contract to which such institution is a party if the FDIC determines that performance of the contract would be burdensome and that disaffirmance or repudiation of the contract would promote the orderly administration of the institution’s affairs. In addition, the FDIC as conservator or receiver may enforce most contracts entered into by the institution notwithstanding any provision providing for termination, default, acceleration or exercise of rights upon or solely by reason of insolvency of the institution, appointment of a conservator or receiver for the institution, or exercise of rights or powers by a conservator or receiver for the institution.

Under provisions of the FDIA, an FDIC-insured bank under common control with another FDIC-insured bank is generally liable for any loss incurred or reasonably expected to be incurred, by the FDIC upon the actual or reasonably likely failure of such other bank. Thus, MUB could incur liability to the FDIC under these provisions in the event of failure of another bank controlled by the Company or MUFG. This liability would be subordinated to deposit liabilities and certain other senior liabilities. At present, neither the Company nor MUFG have such other bank subsidiaries.

Pursuant to the Dodd-Frank Act and related regulations, BHCs and insured depository institutions with $50 billion or more in assets are required to develop and annually file with the bank regulators resolution plans or so-called “living wills” to facilitate the FDIC’s ability to liquidate such banks in a prompt and orderly fashion upon a failure. If the bank regulators determine that the resolution plan is not credible or would not facilitate the orderly resolution of the institution, they may require the institution to submit a revised resolution plan that addresses the deficiencies identified by the regulators. If the regulators determine that the revised plan remains deficient, they may decide to subject the institution to more stringent capital, leverage, or liquidity requirements or restrictions on growth, activities or operations and may impose other sanctions.

In September of 2016, the OCC adopted guidelines establishing standards for recovery planning by national banks with total consolidated assets of $50 billion or more, such as MUB. The guidelines require such larger banks to undertake recovery planning to be able to respond quickly to and recover from the financial effects of severe stress on the bank. The recovery plan should identify triggers that reflect the bank’s particular vulnerabilities and identify a wide range of credible options that the bank could undertake to preserve or restore financial strength and viability and provide that the bank will notify the OCC of any significant breach of a trigger and actions taken or to be taken in response. Banks with total assets of more than $100 billion but less than $750 billion, such as MUB, were required to comply with these new requirements on or before January 1, 2018. MUB is in compliance with these requirements. The OCC is empowered to order enforcement of the guidelines and may assess civil money penalties against and require other actions of banks which fail to meet these standards.

Community Reinvestment Act. MUB is subject to the CRA. The CRA generally requires the federal banking agencies to evaluate the record of a financial institution in meeting the needs of local communities, including low- and moderate-income neighborhoods. In addition to substantial penalties and corrective measures that may be required for a violation of certain fair lending laws, the federal banking agencies may take compliance with such laws and the CRA into account when regulating and supervising other activities and in evaluating whether to approve applications for permission to engage in new activities or to acquire other banks or companies or de novo branching. An unsatisfactory CRA rating may be the basis for denying the application.

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Fair Lending and Other Related Laws. MUB is subject to the Equal Credit Opportunity Act of 1974 and the implementing regulations thereunder. The statute requires financial institutions and other firms engaged in the extension of credit to make credit equally available to all creditworthy customers and makes it unlawful for any creditor to discriminate against any applicant with respect to any aspect of a credit transaction: (1) on the basis of race, color, religion, national origin, sex or marital status, or age (provided the applicant has the capacity to contract); (2) because all or part of the applicant’s income derives from any public assistance program; or (3) because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. In addition, a creditor may not make any oral or written statement, in advertising or otherwise, to customers or prospective customers that would discourage on a prohibited basis, an application for credit.

MUB is also subject to the Federal Housing Act, which makes discrimination in home lending illegal, as well as the Americans with Disabilities Act, which requires banks to reasonably accommodate individuals with disabilities.

Banks are periodically examined for compliance with these fair lending laws and other related laws. The banking regulators are required to refer matters relating to these fair lending laws to the Department of Justice for possible investigation and further appropriate action under civil penalty statutes whenever the regulator has reason to believe that a creditor has engaged in a pattern or practice of conduct that may violate these laws.

Bank Secrecy Act and Office of Foreign Assets Control Regulations. The banking industry is subject to extensive regulatory controls and processes under the Bank Secrecy Act and related anti-money laundering laws. Under the USA PATRIOT Act, federal banking regulators must consider the effectiveness of a financial institution’s anti-money laundering program prior to approving an application for a merger, acquisition or other activities requiring regulatory approval. The U.S. also imposes economic sanctions that affect transactions with designated foreign countries, nationals and others. These rules are administered by OFAC. Included among OFAC restrictions are limitations or prohibitions on engaging in financial transactions involving a sanctioned country, entity or person and prohibitions on transfers of blocked property and bank deposits subject to U.S. jurisdiction. Failure to comply with these requirements may adversely affect the Company’s ability to obtain regulatory approvals for future initiatives requiring regulatory approval, including acquisitions and additionally could result in substantial monetary fines, penalties and other sanctions.

Affiliate Transactions. MUB and its affiliates are subject to certain restrictions under the Federal Reserve Act and related regulations, including restrictions on loans by MUB to, and other transactions with, its affiliates (including requirements that such transactions with MUB be collateralized and on arm’s-length terms). Dividends payable by MUB to MUAH are subject to restrictions under a formula imposed by the OCC unless express approval is given by the OCC to exceed these limitations.

Customer Information Security. The federal bank regulatory agencies have adopted guidelines for safeguarding confidential, personal customer information. The guidelines require each financial institution to create, implement and maintain a comprehensive written information security program designed to ensure the security and confidentiality of customer information, protect against any anticipated threats or hazards to the security or integrity of such information and protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to any customer. MUB has adopted a customer information security program. In addition, each agency has published its standards and expectations for banks to protect their own data, information technology and other assets and operations from unauthorized intrusion and vulnerability to malicious cyber-attack to the greatest degree possible.

Privacy. The GLBA requires financial institutions to implement policies and procedures regarding the disclosure of nonpublic personal information about consumers to non-affiliated third parties. In general, the statute requires explanations to consumers on policies and procedures regarding the disclosure of such nonpublic personal information, and, except as otherwise required by law, prohibits disclosing such information except as provided in the banks’ policies and procedures and applicable law. MUB implemented its privacy policy, which provides that all of its existing and new customers will be notified of MUB’s privacy policies. Federal financial regulators have issued regulations under the Fair and Accurate Credit Transactions Act, which increased the length of the waiting period, after privacy disclosures are provided to new customers, before information can be shared among affiliated companies for the purpose of cross-marketing products and services between those

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affiliated companies. Certain state laws and regulations designed to protect the privacy and security of customer information also apply to us and our other subsidiaries.

Overdraft and Interchange Fees; Interest on Demand Deposits. Regulation E restricts a bank's ability to charge overdraft services and fees. The rule prohibits financial institutions from charging fees for paying overdrafts on ATM and one-time debit card transactions, unless a consumer consents, or opts in, to an overdraft service for those types of transactions. The Dodd-Frank Act's "Durbin Amendment" also required the Federal Reserve to establish standards for interchange fees that are “reasonable and proportional” to the cost of processing the debit card transaction and imposes other requirements on card networks.

Regulation of MUSA

MUSA is a registered broker-dealer with the SEC and is a member of the Financial Industry Regulatory Authority (FINRA). MUSA is also registered with the Municipal Securities Rulemaking Board (MSRB) as a broker-dealer. MUSA was previously a Futures Commission Merchant and a member of the National Futures Association. However, it effectively deregistered in 2017.

Much of the regulation of broker-dealers has been delegated to self-regulatory organizations such as the FINRA of which MUSA is a member. The principal purpose of regulating broker-dealers is the protection of clients and the securities markets. The regulations cover many aspects of the securities business, including, among other things, sales and trading practices, publication of research, margin lending, uses and safekeeping of clients’ funds and securities, capital adequacy, recordkeeping and reporting, fee arrangements, disclosure to clients, fiduciary duties owed to advisory clients, and the conduct of directors, officers and employees.

MUSA is subject to Rule 15c3-1 under the Securities Exchange Act of 1934 (the Uniform Net Capital Rule), Rule 15c3-3 (Customer Protection) and related SRO requirements. The Uniform Net Capital Rule specifies minimum capital requirements that are intended to ensure the general financial soundness and liquidity of broker-dealers. The Customer Protection Rule provides requirements for customer cash reserves and the custody of customer securities.

The Uniform Net Capital Rule prohibits a broker-dealer subsidiary from paying cash dividends, or making unsecured advances or loans to its parent company or repaying subordinated loans to its parent company if such payment would result in a net capital amount of less than 5% of aggregate debit balances or less than 120% of its minimum dollar requirement of $1,000,000.

In addition to the net capital requirements as a self-clearing broker-dealer, MUSA is subject to cash deposit and collateral requirements with clearing houses, such as the Depository Trust & Clearing Corporation, Options Clearing Corporation and Fixed Income Clearing Corporation, which may fluctuate significantly from time to time based upon the nature and size of clients’ trading activity and market volatility.

Future Legislation or Regulatory Initiatives

The economic and political environment of the past several years has led to a number of proposed legislative, governmental and regulatory initiatives, at both the federal and state levels, certain of which are described above, that may significantly impact our industry. These and other initiatives could significantly change the competitive and operating environment in which we and our subsidiaries operate. We cannot predict whether these or any other proposals will be enacted or the ultimate impact of any such initiatives on our operations, competitive situation, financial condition or results of operations.

In October 2018, the Federal Reserve invited comments on a framework that would more closely match regulations for large banking organizations with their risk profiles. Firms in the lowest risk category - generally most domestic firms with assets of between $100 billion and $250 billion would no longer be subject to standardized liquidity requirements but would be subject to firm-developed liquidity tests and reduced stress testing requirements. Firms with $250 billion or more in assets that are not GSIBs would be subject to reduced standardized liquidity requirements depending on their risk profile and would be subject to stress testing but on an extended cycle. Under the Federal Reserve’s proposal, GSIBs, such as MUFG, would not see any change in their capital or liquidity requirements. The Federal Reserve advised that it expects to issue a separate tailoring

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proposal for foreign banks in the future. Whether and to what extent, MUAH and MUB may be affected by these initiatives cannot be predicted at this time.

Disclosure of Iranian Activities under Section 13(r) of the Securities Exchange Act of 1934

We are disclosing the following information pursuant to Section 13(r) of the Securities Exchange Act of 1934 (Exchange Act), which requires an issuer to disclose whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with natural persons or entities designated by the U.S. government under specified Executive Orders. The scope of activities that must be reported includes activities not prohibited by U.S. law and conducted outside the United States in compliance with applicable local law. Because we are indirectly wholly-owned by MUFG, a Japanese corporation, our disclosure includes activities, transactions or dealings conducted outside the United States by non-U.S. affiliates of MUFG which are not controlled by us. We have requested that MUFG provide us a description of reportable activity under Section 13(r) and have received the following information:

During the fiscal year ended December 31, 2018, a non-U.S. subsidiary of MUFG engaged in business activities with entities in, or affiliated with, Iran, including counterparties owned or controlled by the Iranian government. Specifically, MUFG’s non-U.S. banking subsidiary, MUFG Bank, Ltd., issued letters of credit and guarantees and provided remittance and other settlement services mainly in connection with customer transactions related to the purchase and exportation of Iranian crude oil to Japan, and in some cases, in connection with other petroleum-related transactions with Iran by its customers. These transactions did not involve U.S. dollars nor clearing services of U.S. banks for the settlement of payments. For the fiscal year ended December 31, 2018, the aggregate interest and fee income relating to these transactions was less than ¥100 million, representing less than 0.005 percent of MUFG’s total interest and fee income. Some of these transactions were conducted through the use of non-U.S. dollar correspondent accounts and other similar settlement accounts maintained with MUFG Bank, Ltd. outside the United States by Iranian financial institutions and other entities in, or affiliated with, Iran. In addition to such accounts, MUFG Bank, Ltd. receives deposits in Japan from, and provides settlement services in Japan to, fewer than 10 Iranian government-related entities and fewer than 100 Iranian government-related individuals such as Iranian diplomats, and maintains settlement accounts outside the United States for certain other financial institutions specified in Executive Order 13382, which settlement accounts were frozen in accordance with applicable laws and regulations. For the fiscal year ended December 31, 2018, the average aggregate balance of deposits held in these accounts represented less than 0.1 percent of the average balance of MUFG’s total deposits. The fee income from the transactions attributable to these account holders was less than ¥18 million, representing less than 0.005 percent of MUFG’s total fee income. Although there was no outstanding balance as of December 31, 2018, MUFG Bank, Ltd. had, during the fiscal year ended December 31, 2018, loans that were arranged prior to changes in applicable laws and regulations to borrowers in, or affiliated with, Iran, including entities owned by the Iranian government. For the fiscal year ended December 31, 2018, the agent fee income relating to these loan transactions was less than ¥20 million, representing less than 0.005 percent of MUFG’s total interest and fee income.

We understand that MUFG Bank, Ltd. recognizes that following the withdrawal in May 2018 by the United States from the Joint Comprehensive Plan of Action, the United States has imposed secondary sanctions against non-U.S. persons who engage in or facilitate a broad range of transactions and activities involving Iran. We understand that MUFG Bank, Ltd. will take the recent sanctions related developments into account and monitor any future transactions relating to Iran in order to comply with applicable U.S. and Japanese regulations as well as U.S., Japanese and other international sanctions.

Financial Information

See our Consolidated Financial Statements beginning on page 76 of this Form 10-K for financial information about MUAH and its subsidiaries.

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ITEM 1A.   RISK FACTORS

The following discussion sets forth material risk factors that could affect our financial condition and operations:

Industry Factors

U.S. and global economic experiences of a serious recession, a slow economic recovery, persistent financial market volatility, and significant U.S. and global consumer and business economic deterioration have presented challenges for the banking and financial servicesindustry and for MUAH. In the U.S., the government response included a variety of measures which has allowed U.S. economic activity to improve in recent years but there can be no assurance that this progress will continue or will not reverse. The U.S. government continues to face significant fiscal and budgetary challenges which, if not resolved, may further exacerbate adverse U.S. economic conditions. These challenges may be intensified over time as a result of the federal tax legislation signed into law in December of 2017 if federal budget deficits were to increase and Congress and the Administration cannot effectively work to address them.

In the past decade, adverse financial and economic developments impacted U.S. and global economies and financial markets and presented challenges for the banking and financial services industry and for MUAH. These developments included a general recession both globally and in the U.S. followed by a slow economic recovery accompanied by unprecedented volatility in the financial markets.

In response, various significant economic and monetary stimulus measures were implemented by the U.S. government. The Federal Reserve pursued a highly accommodative monetary policy aimed at keeping interest rates at historically low levels although the Federal Reserve has modified certain aspects of this policy by gradually increasing short-term interest rates and reducing its balance sheet. U.S. economic activity has significantly improved, but there can be no assurance that this progress will continue or will not reverse.

The challenges to the level of economic activity in the U.S., and also to the banking industry, have also been exacerbated at times since the recession by extensive political disagreements regarding the statutory debt limit on U.S. federal government obligations and measures to address the substantial federal deficits and the federal budget. These political developments led to a downgrade from “AAA” to “AA+” by one credit rating agency of the long-term sovereign credit rating of United States debt, although other credit rating agencies did not take such action. Although concerns about U.S. sovereign debt may have lessened, there can be no assurance that the current political disagreements regarding the federal budget will be resolved between the Trump Administration and the newly-elected Congress with the Democrats controlling the House of Representatives, or that such disagreements will not occur again in the future. Any such future disagreements, if not resolved, could result in further downgrades by the rating agencies with respect to the obligations of the U.S. federal government. Any such further downgrades could increase over time the U.S. federal government’s cost of borrowing which may worsen its fiscal challenges, as well as generate upward pressure on interest rates generally in the U.S. which could, in turn, have adverse consequences for borrowers and the level of business activity. Any such developments could also have adverse consequences for the securities repurchase business conducted by MUSA, which relies upon both the credit quality of bonds issued by the U.S. federal government and the smooth functioning of the markets using such bonds as collateral. It is also possible that the federal government’s fiscal and budgetary challenges could be intensified over time as a result of the federal tax legislation signed into law in December of 2017 if the reductions in tax rates along with greater government spending result in increased federal budget deficits.

Difficult market conditions have adversely affected the U.S. banking industry

The resulting economic pressure on consumers and lack of confidence in the financial markets since the 2008 recession adversely affected our business, financial condition and results of operations for several years after the recession. Although the economic conditions in our markets, including California in particular and in the U.S. in general, have significantly improved in recent years, there can be no assurance that these conditions will continue to improve, especially given the fact that the U.S. economic expansion is becoming extended in its duration. In addition, turbulent political and economic conditions in foreign countries and trade policy differences with major U.S. trading partners may negatively impact the U.S. financial markets and economy in general. If these conditions worsen market conditions could be adversely affected. In particular, we may face the following risks in connection with these events:

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• Our ability to assess the creditworthiness of our customers and counterparties may be impaired if the methods and approaches we use to select, manage, and underwrite our customers and counterparties become less predictive of future behaviors.

• We may not be able to accurately estimate credit exposure losses because the process we use to estimate these losses requires difficult, subjective, and complex judgments which may not be amenable to precise estimates, including forecasts of economic conditions and how these economic predictions might impair the ability of our borrowers to repay their loans.

• Our ability to borrow from other financial institutions on favorable terms or at all could be adversely affected by further disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations.

• Downgrades in the credit ratings of major U.S. or foreign banks or other financial difficulties affecting such major banks could have adverse consequences for the financial markets generally, including possible negative effects on the available sources of market liquidity and increased pricing pressures in such markets which, in turn, could make it more difficult or expensive for banks generally and for us in particular to access such markets to satisfy liquidity needs.

• Significant fluctuations in the prices of equity and fixed income securities could adversely impact the revenues of our broker-dealer and asset management and trust businesses. MUSA is exposed to the price risk of such securities where it holds inventory to meet expected customer demand. MUSA's debt capital markets fee income would also be detrimentally impacted from sustained periods of fixed income price volatility. MUB's fee income may also decline since its asset management and trust business fees are primarily based upon the values of assets it manages and declines in the values of those assets proportionately reduce the amount of its fees charged.

• Competition in our industry could intensify as a result of the increasing consolidation of financial services companies and increasing competition from less regulated nonbank financial services companies many of whom are using new technologies to deliver their services. For additional information, see “Substantial competition could adversely affect us” in Part I, Item 1A. “Risk Factors” in this Form 10-K.

• We may incur goodwill impairment losses in future periods. See “Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates - Goodwill Impairment Analysis” in Part II, Item 7. and Note 5 to our Consolidated Financial Statements included in this Form 10-K.

• In November 2018, the U.S., Mexico and Canada came to an agreement to replace North American Free Trade Agreement (NAFTA) with the United States-Mexico-Canada Agreement (USMCA), although NAFTA will remain in force until the USMCA is ratified by all of its members. The effect of such agreement and future proposals on international trade between the U.S. and other countries and on the level of economic activity in the U.S., as well as possible volatility in the financial markets generally, cannot be predicted.

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The effects of changes or increases in, or supervisory enforcement of, banking, securities, competition or other laws and regulations or governmental fiscal, monetary, or tax policies could adversely affect us or make strategic planning more difficult

We are subject to significant banking and federal and state securities regulation and supervision, which is primarily for the benefit and protection of our depositors and other customers and the Federal Deposit Insurance Fund and the banking system as a whole and less so for the benefit of investors in our securities. In the past, our business has been materially affected by these regulations. This can be expected to continue in the future. Laws, regulations or policies, including accounting standards and interpretations, currently affecting us and our subsidiaries may change over time. Regulatory authorities may also change their interpretation of, and intensify their examination of compliance with, these statutes and regulations. Therefore, our business may be adversely affected by changes in laws, regulations, policies or interpretations or regulatory approaches to compliance and enforcement, as well as by supervisory action or criminal proceedings taken as a result of perceived noncompliance, which could result in the imposition of significant penalties or fines. Changes in laws and regulations may also increase our expenses by imposing additional supervision, fees, taxes or restrictions on our operations. Compliance with laws and regulations, especially new laws and regulations, increases our operating expenses and may require additional management time and attention. To the extent state and local laws and regulations are not preempted by federal laws or regulations, our regulatory compliance could become more challenging.

The Dodd-Frank Act was enacted in 2010 in response to the financial crisis that culminated in the severe economic disruptions during and after 2008. The Dodd-Frank Act, among other things, established the CFPB with broad powers to regulate consumer financial products such as credit cards and mortgages, established the Financial Stability Oversight Council comprised of the heads of various regulatory agencies, led to new capital requirements from U.S. federal banking agencies, placed new limits on electronic debit card interchange fees, and required the SEC and national stock exchanges to adopt significant new corporate governance and executive compensation reforms. While the CFPB's regulatory powers have not changed under the current Administration, the number of publicly announced enforcement actions it has chosen to pursue has significantly declined.

This important legislation has affected U.S. financial institutions, including MUAH and MUB, in many ways, some of which have increased, or may increase in the future, the cost of doing business and present other challenges to the financial services industry. For additional information regarding the impact on our business of the Dodd-Frank Act and related regulations, see "Supervision and Regulation – Principal Federal Banking Laws - Dodd-Frank Act and Related Regulations" in Part I, Item 1. "Business" in this Form 10-K.

Following the 2008 financial crisis, the Federal Reserve and the other U.S. federal banking agencies adopted final rules making significant changes to the U.S. regulatory capital framework for U.S. banking organizations. For additional information, see "Supervision and Regulation – Regulatory Capital and Liquidity Standards" in Part I, Item I. "Business" and "Regulatory Capital" in Part II, Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-K.

President Trump signed into law the Economic Growth, Regulatory Relief and Consumer Protection Act (the “EGRRCPA”) which amended various provisions of the Dodd-Frank Act as well as other federal banking statutes on May 24, 2018 as described more fully in "Supervision and Regulation – Dodd Frank Act and Related Regulations" in Part I, Item I. "Business" in this Form 10-K.

The need to maintain more and higher quality capital and greater liquidity under applicable bank regulatory agency rules could limit the Company’s lending and other business activities and its ability to expand, either organically or through acquisitions. It could also result in the Company taking steps to increase its capital or being limited in its ability to pay dividends or otherwise return capital to its shareholders, or selling or refraining from acquiring assets. In addition, the regulatory liquidity standards could limit the Company’s ability to invest in longer-term or less liquid assets even if more desirable from a balance sheet management perspective.

The capital rules of the U.S. federal banking agencies as well as the various other regulations referred to herein, along with other regulations which may be adopted in the future, may also generally increase our cost of doing business or lead us to stop, reduce or modify our products and services.

Proposals to reform the housing finance market in the U.S. could also significantly affect our business. These proposals, among other things, include reducing or eliminating over time the role of the GSEs (Fannie Mae and Freddie Mac) in guaranteeing mortgages and providing funding for mortgage loans, as well as the

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implementation of reforms relating to borrowers, lenders, and investors in the mortgage market, including reducing the maximum size of a loan that the GSEs can guarantee, phasing in a minimum down payment requirement for borrowers, improving underwriting standards, and increasing accountability and transparency in the securitization process. While the specific nature of these reforms and their impact on the financial services industry in general, and on MUB in particular, is uncertain at this time, such reforms, if enacted, are likely to have a substantial impact on the mortgage market and could potentially reduce our income from mortgage originations by increasing mortgage costs and/or lowering originations. The GSE reforms could also reduce real estate prices, which could reduce the value of collateral securing outstanding mortgage loans. This reduction of collateral value could negatively impact the value or perceived collectability of these mortgage loans and cause an increase in our allowance for loan losses. Such reforms may also include changes to the Federal Home Loan Bank System, which could adversely affect a significant source of funding for lending activities by the banking industry, including the Bank. These reforms may also result in higher interest rates on residential mortgage loans, thereby reducing demand, which could have an adverse impact on the Bank’s residential mortgage lending business. In addition, any impact of such changes upon the credit quality of GSE’s and therefore upon agency MBS securities held by MUAH could result in material reductions in valuations, as well as adverse impacts upon MUSA’s agency MBS trading business.

Several cities in the United States (including New York, Los Angeles, San Diego, San Francisco, San Jose and Seattle) have adopted responsible banking ordinances and other cities are considering the adoption of similar ordinances. These ordinances generally require banks that hold city government deposits to provide detailed accounts of their lending practices in low-income communities, as well as their participation in foreclosure prevention and home loan principal reduction programs. Performance under these ordinances is used as a basis for awarding the city’s financial services contracts. The adoption of these ordinances by municipalities for which the Bank is a provider of cash management or other banking services could result in increased regulatory and compliance costs and other operational costs and expenses, making this business less desirable to the Bank and potentially resulting in reduced opportunities for the Bank to provide these services. In August of 2015, New York City's ordinance was found to be invalid because it was pre-empted by federal and state banking laws and that case was dismissed. Whether and to what extent other responsible banking ordinances will be challenged and invalidated cannot be predicted.

As a result of supervisory actions against Wells Fargo Bank, N.A. involving customer abuses in the banks’ retail branch network, which may have arisen at least in part from incentive compensation arrangements related to cross-selling of products and services, the OCC conducted a horizontal examination of various U.S. banks including MUB to which they issued requests for information about their sales practices and incentive compensation programs. The increased regulatory focus on these subjects could lead to additional regulations and compliance costs which could impact the retail banking industry in the U.S.

International laws, regulations and policies affecting us, our subsidiaries and the business we conduct may change over time and affect our business opportunities and competitiveness in these jurisdictions. Due to our ownership by MUFG and MUFG Bank, Ltd., laws, regulations, policies, fines and other supervisory actions adopted or enforced by the Government of Japan, the Federal Reserve and other regulators may adversely affect our activities and investments and those of our subsidiaries in the future.

We maintain systems and procedures designed to comply with applicable laws and regulations. Some legal and regulatory frameworks provide for the imposition of criminal or civil penalties (which can be substantial) for noncompliance. In some cases, liability may attach even if the noncompliance was inadvertent or unintentional and even if reasonably designed compliance systems and procedures were in place at the time. There may be other negative consequences from a finding of noncompliance, including restrictions on certain activities and damage to our reputation. Legal or regulatory compliance failure may also adversely affect our ability to obtain regulatory approvals for future strategic initiatives. Furthermore, failure to take necessary corrective action or the discovery of other violations of laws in the process of implementing any corrective measures could result in further regulatory enforcement action.

Our business is affected significantly by the fiscal and monetary policies of the U.S. federal government and its agencies. We are particularly affected by the policies of the Federal Reserve, which regulates the supply of money and credit in the U.S. Under the Dodd-Frank Act and a long-standing policy of the Federal Reserve, a BHC is expected to act as a source of financial and managerial strength for its subsidiary banks. As a result of that policy, we may be required to commit financial and other resources to our subsidiary bank in circumstances where we might not otherwise do so. Among the instruments of monetary policy available to the Federal Reserve

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are (a) conducting open market operations in U.S. Government securities, (b) changing the discount rates on borrowings by depository institutions and the federal funds rate, and (c) imposing or changing reserve requirements against certain deposits accepted by banks and borrowings by banks and their affiliates. These methods are used in varying degrees and combinations to directly affect the availability of bank loans and deposits, as well as the interest rates charged on loans and paid on deposits. In the fall of 2017, the Federal Reserve began the process of reducing its $4.5 trillion balance sheet by ceasing reinvestment of principal on the maturing U.S. bonds that it holds. The impact of the Federal Reserve’s unwinding of its "quantitative easing" program on the U.S. economy and financial markets cannot be predicted with certainty; however, this change in the Federal Reserve’s monetary policy could result in increased interest rates, changes in customer deposit behavior, and volatility in the financial markets. During 2018, the Federal Reserve gradually increased the target range for the federal funds rate, with the range standing at 2-1/4 to 2-1/2 percent at the end of 2018. The policies of the Federal Reserve can be expected to have a material effect on our business, prospects, results of operations and financial condition.

Refer to "Supervision and Regulation" in Part I, Item 1. "Business" in this Form 10-K for discussion of certain additional existing and proposed laws and regulations that may affect our business.

Increased regulation of the financial services industry has required and can be expected to continue to require significant investments in technology, personnel or other resources. Our competitors may be subject to different or reduced regulation due to their asset size or types of products offered and may also be able to more efficiently utilize resources to comply with regulations and to more efficiently absorb increased regulatory compliance costs into their cost structures.

The December 2017 reform of the U.S. tax laws that included a substantial reduction in corporate and personal tax rates also changed the tax laws relevant to our business. While such reform has had and could continue to have positive effects on corporate profitability which could benefit the Company and its customers, there could be other potential adverse consequences such as a decrease in the value of tax credits on certain investments we may make. There could also be possible adverse consequences for the economy and the business climate, such as a large increase in the federal deficits and increasing interest rates generally, including for the federal government’s borrowing costs. The potential long-run impact of these possible developments remains uncertain. For additional information regarding the possible effects of these changes on our business, see “The changes in the U.S. tax laws, the majority of which were effective January 1, 2018, will impact our business and results of operations in a variety of ways, some of which are expected to be positive and others which may be negative” in Part I, Item 1A. "Risk Factors" in this Form 10-K.

Higher credit losses could require us to increase our allowance for credit losses resulting in a charge to earnings

When we loan money or commit to loan money, we incur credit risk or the risk of losses if our borrowers do not repay their loans. We reserve for credit losses by establishing an allowance through a charge to earnings. The amount of this allowance is based on our assessment of credit losses inherent in our loan portfolio and our unfunded credit commitments. The process for determining the amount of the allowance is critical to our financial results and condition. It requires difficult, subjective and complex judgments about the future impact of current economic conditions that might impair the ability of our borrowers to repay their loans.

We might underestimate the credit losses inherent in our loan portfolio and have credit losses in excess of the amount reserved. Or, we might increase the allowance because of changing economic conditions, which we believe have caused losses to be sustained in our portfolio. For example, in a rising interest rate environment, borrowers with adjustable rate loans could see their payments increase. In the absence of offsetting factors such as increased economic activity and higher wages, this rate increase could reduce our borrowers’ ability to repay their loans, resulting in our increasing the allowance. We might also increase the allowance because of the occurrence of events previously unexpected. Any increase in our credit allowance would result in a charge to earnings.

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The need to account for assets at market prices may adversely affect our results of operations

We report certain assets, including securities, at fair value. Generally, for assets that are reported at fair value, we use quoted market prices or valuation models that utilize market data inputs and assumptions to estimate that value. Because generally accepted accounting principles in the U.S. require fair value measurements to reflect appropriate adjustments for risks related to liquidity and the use of unobservable assumptions, we may recognize unrealized losses even if we believe that the asset in question presents minimal credit risk. During periods of adverse conditions in the capital markets, we may be required to recognize other-than-temporary impairments with respect to securities in our investment portfolio and such conditions could also result in mark-to-market losses in our trading portfolios at MUSA. Alternatively, decreases in interest rates could result in an acceleration of loan prepayments that could adversely affect our profitability.

Fluctuations in interest rates on loans could adversely affect our business

Significant increases in market interest rates on loans or other fixed income investments, or the perception that an increase may occur, could adversely affect our current loan and investment portfolios and ability to originate new loans and our ability to grow. Any such increases in interest rates could also diminish the flow of corporate debt offerings in the securities markets generally and this could adversely impact the investment banking business of MUSA which is dependent on the sales of debt securities issued by its customers. Conversely, decreases in interest rates could result in an acceleration of loan prepayments. An increase in market interest rates could also adversely affect the ability of our floating-rate borrowers to meet their higher payment obligations. If this occurred, it could cause an increase in nonperforming assets and charge-offs, which could adversely affect our business.

Fluctuations in interest rates on deposits or other funding sources could adversely affect our net interest margin

Changes in market interest rates on deposits or other funding sources, including changes in the relationship between short-term and long-term market interest rates or between different interest rate indices, can impact, and has in past years impacted, our net interest margin (that is, the difference between the interest rates we charge on interest earning assets, such as loans, and the interest rates we pay on interest-bearing liabilities, such as deposits or other borrowings). This impact could result in a decrease in our interest income relative to interest expense. Increases in interest rates may also adversely impact the value of our investment securities portfolio and the trading portfolio of MUSA and could also adversely impact loan performance by making it more difficult for borrowers with adjustable rate loans to service their debts. For several years after the 2008 recession, the Federal Reserve’s highly accommodative monetary policies (including a very low federal funds rate and substantial purchases of long-term U.S. Treasury and agency securities) placed downward pressure on the net interest margins of U.S. banks, including MUB. The Federal Reserve has continued to gradually raise interest rates from late 2016 through 2018 and gradually reduce its historically high $4.5 trillion balance sheet.  The impact of these measures on the U.S. economy and financial markets cannot be predicted with certainty at this time.  For additional information, see “The effects of changes or increases in, or supervisory enforcement of, banking, securities, competition or other laws and regulations or governmental fiscal, monetary, or tax policies could adversely affect us or make strategic planning more difficult” above in this Risk Factors section. For additional information, see Part I, Item 1. "Business - Supervision and Regulation - Principal Federal Banking Regulatory Agencies" in this Form 10-K.

Our deposit customers may pursue alternatives to bank deposits or seek higher yielding deposits, which may increase our funding costs and adversely affect our liquidity position

Checking and savings account balances and other forms of deposits can decrease when our deposit customers perceive alternative investments, such as the stock market, other non-depository investments or higher yielding deposits, as providing superior expected returns. Technology and other changes have made it more convenient for bank customers to transfer funds into alternative investments or other deposit accounts, including products offered by other financial institutions or non-bank service providers. Future increases in short-term interest rates could increase such transfers of deposits to higher yielding deposits or other investments either with us or with other providers. In addition, our level of deposits may be affected by a lack of consumer confidence in financial institutions, which has caused fewer depositors to be willing to maintain deposits that are not fully insured by the FDIC. Depositors may withdraw certain deposits from MUB and place them in other institutions or invest uninsured funds in investments perceived as being more secure, such as securities issued

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by the U.S. Treasury. These consumer preferences may force us to pay higher interest rates or reduce fees to retain certain deposits and may constrain liquidity as we seek to meet funding needs caused by reduced deposit levels.

As interest rates rise from the historically low levels of recent years, our deposits may not be as stable or as interest rate insensitive as similar deposits may have been in the past and, if the recovery of the U.S. economy continues, some existing or prospective deposit customers of banks generally, including MUB, may be inclined to pursue other investment alternatives.

Efforts and initiatives we undertake to retain and increase deposits, including deposit pricing, can increase our costs. When bank customers move money out of bank deposits in favor of alternative investments or into higher yielding deposits, we can lose a relatively inexpensive source of funds, increasing our funding cost. As our assets grow, we may face increasing pressure to seek new deposits through expanded channels from new customers at unfavorable pricing, further increasing our costs.

Substantial competition could adversely affect us

Banking is a highly competitive business. We compete actively for loan, deposit, and other financial services business in the West Coast states as well as nationally and internationally. Our competitors include a large number of state and national banks, thrift institutions, credit unions, finance companies, mortgage banks and major foreign-affiliated or foreign banks, as well as many nonbank financial and nonfinancial firms that offer services similar to those offered by us, including many large securities firms and financial services subsidiaries of commercial and manufacturing companies. Some of our competitors are insurance companies or community or regional banks that have strong local market positions. While we are part of MUFG, one of the largest global financial institutions, MUAH, MUB and MUSA are separate entities from their parent and other affiliates, and our competition includes a number of large financial institutions and securities firms operating in our U.S. markets that have substantial capital, technology and marketing resources, which may be well in excess of ours. Competition in our industry may further intensify as a result of the recent and increasing level of consolidation of financial services companies, particularly in our principal markets resulting from various economic and market conditions. Larger financial institutions may have greater access to capital at a lower cost than ours, which may adversely affect our ability to compete effectively. In addition, some of our current commercial banking customers may seek alternative banking sources if they develop credit needs larger than we may be able to accommodate. Many of our non-bank competitors are not subject to the same extensive regulations that govern our activities and may have greater flexibility in competing for business. Additionally, technology has lowered barriers to entry and made it possible for non-banks to offer products and services traditionally provided by banks, such as automatic transfer and payment systems. We also experience competition, especially for deposits, from internet-based banking institutions and other financial companies, which do not always have a physical presence in our market footprint and have grown rapidly in recent years. Competition in our principal markets may further intensify as a result of provisions of the Dodd-Frank Act which permit the establishment of new branches in states other than their home state by national banks, state banks and foreign banks to the same extent as banks located in the other states.

There are an increasing number of non-bank competitors providing financial services

Technology and other changes increasingly allow parties to complete financial transactions electronically, and in many cases, without banks. For example, consumers can pay bills and transfer funds over the internet and by telephone without banks. In addition, so-called “marketplace lenders” have been expanding their market share of consumer, mortgage and small business loans. Many non-bank financial service providers have lower overhead costs and are subject to fewer regulatory constraints and burdens. If consumers and small businesses do not use banks for their borrowings or to complete their financial transactions, we could potentially lose interest and fee income, deposits and income generated from those deposits and other financial transactions.

Changes in accounting standards could materially impact our financial statements

From time to time, the FASB and the SEC change the financial accounting and reporting standards that govern the preparation of our financial statements or new interpretations of existing standards emerge as standard industry practice. These changes can be difficult to predict and can materially impact how we record and report our financial condition and results of operations. In some cases, we could be required to apply a new or revised standard retrospectively, resulting in our restating prior period financial statements.

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The continuing war on terrorism, overseas military conflicts, unrest and political developments in other countries and the U.S. could adversely affect U.S. and global economic conditions

Acts or threats of terrorism and actions taken by the U.S. or other governments as a result of such acts or threats and other international hostilities, as well as political unrest in various regions, including the Middle East, may result in a disruption of U.S. and global economic and financial conditions and increases in energy costs and could adversely affect business, economic and financial conditions in the U.S. and globally and in our principal markets. In addition, continuing global tensions may result in new and enhanced U.S. economic sanctions against other governments or entities which may increase our compliance costs under the regulations of OFAC and other federal or state agencies. Although we have not experienced an adverse impact on our business from the British vote to exit the European Union (known as "Brexit"), potential changes in the European Union may have negative consequences to the global and U.S. economies and to our customers.

The Far East, including the Korean peninsula, China and Japan, continues to be subject to political tensions and potential volatility. In the event these conditions were to worsen, there could be material adverse economic consequences for the region, including for Japan, where our parents, MUFG and MUFG Bank, Ltd., have a substantial portion of their assets and business. If MUFG Bank, Ltd.’s business were to sustain seriously adverse conditions from such circumstances, this could result in an adverse impact on the ability of MUFG and MUFG Bank, Ltd. to support MUAH’s business in the U.S.

Company Factors

Adverse economic factors affecting certain industries we serve could adversely affect our business

We provide financing to businesses in a number of industries that may be particularly vulnerable to industry-specific economic factors that can adversely impact the performance of our commercial real estate and commercial and industrial credit portfolios. The commercial real estate industry in the U.S., and in California in particular, was adversely impacted by the post-2008 recessionary environment and lack of liquidity in the financial markets. The home building and mortgage industries in California also were especially adversely impacted by the deterioration in residential real estate markets. Our commercial and industrial credit portfolio, and the communications and media industry, the retail industry, and the energy industry in particular, were also adversely impacted by recessionary market conditions and other emerging developments that are disruptive to their customary business models. Volatility in fuel prices and energy costs could adversely affect businesses in several of these industries, while a prolonged slump in oil, natural gas and coal prices could have adverse consequences for some of our borrowers in the energy sector. Poor economic conditions and financial access for commercial real estate developers and homebuilders could adversely affect property values, resulting in higher nonperforming assets and charge-offs in this sector. MUSA provides financing through repurchase transactions to mortgage real estate investment trusts (REITs) collateralized by U.S. agency-backed mortgages held by such trusts. MUSA also has established a trading business in U.S. agency mortgage-backed securities. A down-turn in the real estate sector in the U.S. could adversely impact the creditworthiness of these mortgage REITs, and could adversely impact MUSA’s business and results of operation. Conditions remain uncertain in various industries and could produce elevated levels of charge-offs.

Starting in 2018, federal tax legislation imposes various new limits on the ability of taxpayers to deduct on their federal income tax returns the interest they pay on residential mortgage loans, as well as their state and local property taxes. These changes could have negative consequences for residential market values which could, in turn, have adverse impacts on MUB’s existing residential mortgage loan portfolio and on the volume of newly-originated residential mortgage loans in the future.

A significant portion of our loan portfolio is related to residential real estate, especially in California. Increases in residential mortgage loan interest rates could have an adverse effect on our operations by depressing new mortgage loan originations, and could negatively impact our title and escrow deposit levels. California markets have experienced a strong recovery in home prices since the post-2008 housing market crisis; however, home price growth has begun to moderate and some fundamentals of the housing market have remained soft through the recovery. A renewed downturn could have an adverse effect on our operations and the quality of our real estate loan portfolio. These factors could adversely impact the quality of our residential construction and residential mortgage portfolios in various ways, including by decreasing the value of the collateral for our mortgage loans. These factors could also negatively affect the economy in general and thereby our overall loan portfolio.

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Changes to the operating framework or functioning of the market in mortgage securities sponsored by the GSE’s could also have an adverse impact on our exposure to mortgage-backed assets in both our banking and securities businesses.

Industry-specific risks are beyond our control and could adversely affect our loan portfolio, potentially resulting in an increase in nonperforming loans or charge-offs and a slowing of growth or reduction in our loan portfolio.

Adverse California economic conditions could adversely affect our business

At times in past years, economic conditions in California have been subject to various challenges, including significant deterioration in the residential real estate sector and the California state government’s budgetary and fiscal difficulties. While California home prices and the California economy in general have experienced a recovery in recent years, there can be no assurance that the recovery will continue. Recent growth in home prices in some California markets may be unsustainable relative to market fundamentals and home price declines may occur.

In addition, the State of California has experienced budget shortfalls or deficits that have led to protracted negotiations between the Governor and the State Legislature over how to address the budget gap. The California electorate approved in the November 2012 general elections certain increases in the rate of income taxation in California and California’s budgetary situation has improved considerably (with a budget surplus being forecast for the coming year by the nonpartisan legislative analyst). However, there can be no assurance that the state’s fiscal and budgetary challenges will not recur. Also, municipalities and other governmental units within California have experienced budgetary difficulties and several California municipalities have filed for protection under the Bankruptcy Code. As a result, concerns also have arisen regarding the outlook for the governmental obligations of California municipalities and other governmental units.

A substantial majority of our assets, deposits and interest and fee income is generated in California. As a result, poor economic conditions in California may cause us to incur losses associated with higher default rates and decreased collateral values in our loan portfolio. If the budgetary and fiscal difficulties of the California state government and California municipalities and other governmental units were to recur or economic conditions in California decline, we expect that our level of problem assets could increase and our prospects for growth could be impaired. For approximately the past six years, California experienced various episodes of severe drought conditions. While rainfall levels have improved, there can be no assurance that the drought will not return with consequent difficulties for the California economy, particularly in the agricultural sector. The long-run impact of this and other measures in response to the drought on the California economy cannot be predicted.

Wildfires occurred in a number of California counties where the Bank has branches and does business during 2017 and 2018. The fires resulted in numerous fatalities and injuries and substantial property damage to homes, businesses and infrastructure in several communities. California and other Western states where the Bank does business have been the subject of other major wildfires or natural disasters, including mudslides, flooding and seismic events. It can be expected that these events will continue to occur from time to time in the areas served by the Bank, and these natural disasters may adversely affect the Bank’s business and that of its customers.

Our stockholder votes are controlled by MUFG Bank, Ltd. and Mitsubishi UFJ Financial Group, Inc.

MUFG Bank, Ltd., a wholly-owned subsidiary of MUFG, and MUFG own all of the outstanding shares of our common stock. As a result, MUFG Bank, Ltd. and MUFG can elect all of our directors and can control the vote on all matters, including: approval of mergers or other business combinations; a sale of all or substantially all of our assets; issuance of any additional common stock or other equity or debt securities; incurring debt other than in the ordinary course of business; the selection and tenure of our Chief Executive Officer; payment of dividends with respect to our common stock or other equity securities; and other matters that might be favorable to MUFG Bank, Ltd. or MUFG.

A majority of our directors are independent of MUFG and MUFG Bank, Ltd. and are not officers or employees of MUAH or any of our affiliates, including MUFG or MUFG Bank, Ltd. However, because of MUFG’s and MUFG Bank, Ltd.’s control over the election of our directors, they could at any time change the composition of our Board of Directors so that the Board would not have a majority of independent directors.

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MUFG Bank, Ltd.'s and Mitsubishi UFJ Financial Group’s credit ratings and financial or regulatory condition could adversely affect our operations

A substantial part of our operations have been historically funded independently of MUFG Bank, Ltd. and MUFG and we believe our business is not necessarily closely related to the business or outlook of MUFG Bank, Ltd. or MUFG. However, the Federal Reserve finalized rules imposing new TLAC requirements on GSIBs with operations in the U.S. such as MUFG, in December 2016. As a result, although we make an effort to diversify our sources of liquidity, we will be required to maintain a minimum of TLAC-eligible debt because of our affiliation with MUFG Bank, Ltd. If MUFG Bank, Ltd. and MUFG’s credit ratings, financial condition or business prospects were to decline, this could adversely affect our credit rating or harm our reputation or perceived creditworthiness. For additional information, see Part II, Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Management - Liquidity Risk Management” in this Form 10-K.

MUFG Bank, Ltd. and MUFG are also subject to regulatory oversight, review and supervisory action (which can include fines or penalties) by Japanese, U.S. and other regulatory authorities. Our business operations and expansion plans could be negatively affected by regulatory concerns or supervisory action any such authority might take against MUFG Bank, Ltd. or MUFG. For example, in connection with its annual Bank Secrecy Act and Anti-Money Laundering (BSA/AML) and Office of Foreign Assets Control (OFAC) examination of MUFG Bank, Ltd.’s U.S. based branches, the OCC recently imposed a public enforcement action upon MUFG Bank Ltd.’s New York, Los Angeles, and Chicago branches. The enforcement action relates to the BSA/AML portion of the examination, is in the form of a consent order and requires MUFG Bank Ltd. and its U.S. branches to implement various remedial measures to address the deficiencies found in the examination, including the adoption of a comprehensive action plan satisfactory to the OCC, implementation of  measures to ensure effective compliance management and qualified staffing, the adoption of comprehensive BSA/AML risk assessment policies and procedures and other remedial actions.  MUB is not a party to the consent order.

Similarly, in June 2013, MUFG Bank, Ltd. entered into a consent agreement with the NY DFS (its former NY regulator) under which it made a civil monetary payment of $250 million to resolve issues relating to the clearing of certain U.S. dollar payments that were routed through its New York branch office from 2002 to 2007. In November 2014, MUFG Bank, Ltd. entered into another consent agreement with the NY DFS under which it made a civil monetary payment of $315 million to resolve issues relating to instructions given to PricewaterhouseCoopers LLP and the disclosures made to the NY DFS in connection with MUFG Bank, Ltd.'s 2007 and 2008 voluntary investigation of MUFG Bank, Ltd.'s U.S. dollar clearing activity associated with countries or parties subject to U.S. economic sanctions. Under the terms of this agreement with the NY DFS, MUFG Bank, Ltd. agreed to take certain additional remedial actions. These remediation efforts are ongoing.

In November, 2017, MUFG Bank, Ltd. applied to the OCC to convert its state-licensed branches and agencies in the U.S. to federal branches and agencies and the OCC approved those conversion applications. As a result, these branches and agencies are now supervised by the OCC and are no longer supervised by state regulatory authorities. As a condition of the OCC’s approval of the conversion applications, the OCC required MUFG Bank, Ltd.’s primary New York branch to enter into a consent order with the OCC that supersedes and contains nearly identical substantive requirements as the 2013 and 2014 NY DFS consent agreements. MUFG Bank, Ltd.’s remediation efforts under the OCC consent order are ongoing. The OCC and MUFG Bank, Ltd. have established an ongoing regulatory relationship and the nature of that relationship will continue to evolve over time.

The NY DFS alleges that it continues to have the authority to bring an enforcement action against MUFG Bank, Ltd. based on events that occurred prior to the conversion of the licenses.  Those issues are the subject of a litigation filed on November 8, 2017 captioned The Bank of Tokyo-Mitsubishi UFJ, Ltd. v. Maria Vullo,17-cv-08691-SHS, which is currently pending in the United States District Court for the Southern District of New York.

MUFG Bank, Ltd. has received requests and subpoenas for information from government agencies in some jurisdictions, including the United States, Europe and Asia, which are or were conducting investigations into past submissions made by panel members, including MUFG Bank, Ltd., to the bodies that set various interbank offered rates. MUFG Bank, Ltd. is cooperating with these investigations and has completed all internal investigations. MUB is not a member of any of these panels or involved in any such investigations. In addition, MUFG Bank, Ltd. and other panel members have been named as defendants in a number of civil lawsuits, including putative class actions, in the United States relating to similar matters including the trading of financial

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instruments, the prices of which can be affected by interbank offered rates. MUFG Bank, Ltd. has also been named as a defendant in a number of civil lawsuits, including putative class actions, in the United States and Canada alleging foreign exchange market misconduct. While certain of these lawsuits have been settled without any admission of wrongdoing and there have been various procedural and potentially substantive developments in other pending cases, it is currently not possible for us to predict the scope and ultimate outcome of these investigations or lawsuits, including any possible effect on us as an affiliate of MUFG.

Potential conflicts of interest with MUFG Bank, Ltd. could adversely affect us

The views of MUFG Bank, Ltd. and MUFG regarding customer relationships, possible new businesses, strategies, acquisitions, divestitures or other initiatives, including compliance and risk management processes, may differ from ours. This may prevent, delay or hinder us from pursuing individual initiatives or cause us to incur additional costs and subject us to additional oversight. Our securities broker-dealer subsidiary, MUSA, receives a significant portion of its investment banking business from referrals from MUFG Bank, Ltd. and MUFG and their affiliated entities. If such referrals were to diminish, this could have a materially adverse impact on the business of MUSA.

Also, as part of MUFG Bank, Ltd.’s risk management processes, MUFG Bank, Ltd. manages global credit and other types of exposures and concentrations on an aggregate basis, including exposures and concentrations at MUAH or its subsidiaries. Therefore, at certain levels or in certain circumstances, our ability to approve certain credits or other banking transactions and categories of customers is subject to the concurrence of MUFG Bank, Ltd. We may wish to extend credit or furnish other banking services to the same customers as MUFG Bank, Ltd. Our ability to do so may be limited for various reasons, including MUFG Bank, Ltd.’s aggregate exposure and marketing policies.

Since MUB, MUSA, MUAH and MUFG Bank, Ltd. all compete in U.S. banking or investment banking markets, ownership interests in MUFG’s common stock held by certain of our directors or officers, or services provided by those individuals as a director or officer or other employee of MUFG Bank, Ltd., could create or appear to create potential conflicts of interest. In addition, a number of the executive officers of MUAH and MUB also serve as executive officers of MUFG Bank, Ltd.’s U.S. branch operations, which could increase or appear to increase the risks of potential conflicts of interests with MUFG and MUFG Bank, Ltd. While the corporate governance policies adopted by MUAH, MUB, MUSA, MUFG and MUFG Bank, Ltd. address such potential conflicts of interest, there can be no assurance that these policies will prevent conflicts of interest which may have an adverse impact on our business.

Restrictions on dividends and other distributions could limit amounts payable to us

As a holding company, a portion of our cash flow may come from dividends our bank and non-bank subsidiaries pay to us. Various statutory provisions restrict the amount of dividends our subsidiaries can pay to us without prior regulatory approval. Our securities broker-dealer subsidiary, MUSA, is also subject to regulatory net capital rules which limit its ability to pay dividends. In addition, if any of our subsidiaries were to liquidate, that subsidiary’s creditors will be entitled to receive distributions from the assets of that subsidiary to satisfy their claims against it before we, as a holder of an equity interest in the subsidiary, will be entitled to receive any of the assets of the subsidiary.

Risks associated with potential acquisitions, divestitures, integrations or restructurings may adversely affect us

We have in the past sought, and may in the future seek, to expand our business by acquiring other businesses which we believe will enhance our business. We cannot predict the frequency, size or timing of our acquisitions, as this will depend on the availability of otherwise suitable prospective target opportunities at valuation levels we find attractive and the competition for such opportunities from other parties. There can be no assurance that our acquisitions will have the anticipated positive results, including results related to: the total cost of integration; the retention of key personnel; the time required to complete the integration; the amount of longer-term cost savings; continued growth; or the overall performance of the acquired company or combined entity. We also may encounter difficulties in obtaining required regulatory approvals due to operational limitations, regulatory restrictions on our own activities, or other reasons. Unexpected contingent liabilities can arise from the businesses we acquire. Acquisitions may also lead us to enter geographic and product markets in which we have limited or no direct experience. Further, the asset quality or other financial characteristics of a business

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or assets we may acquire may deteriorate after an acquisition closes, which could result in impairment or other expenses and charges which would reduce our operating results.

Integration of an acquired business can be complex and costly; if we are not able to integrate successfully past or future acquisitions, there is a risk that results of operations could be adversely affected

Effective July 1, 2016, MUAH became the IHC for MUFG Bank, Ltd.’s operations in the U.S. (other than its branches, agencies and other offices) and became subject to enhanced risk management and governance standards. These enhanced prudential standards, as well as the addition of the securities business of MUSA and other businesses to the Company, could pose additional challenges for our risk management and governance oversight functions. Acquisition of the IHC role could increase our risk management challenges in light of the new customer relationships and lines of business, structural and operational changes, and enhanced governance and risk management standards to which we are subject, among other reasons.

In addition, we continue to evaluate the performance of all of our businesses and may sell or restructure one or more of them. Any divestitures or restructurings may result in significant expenses and write-offs, including those related to goodwill and other intangible assets, which could have a material adverse effect on our business, results of operations and financial condition and may involve additional risks, including difficulties in obtaining any required regulatory approvals, the diversion of management’s attention from other business concerns, the disruption of our business and the potential loss of key employees.

We may not be successful in addressing these or any other significant risks encountered in connection with any acquisition, divestiture, integration or restructuring we might make.

Privacy restrictions could adversely affect our business

Our business model relies, in part, upon cross-marketing the products and services offered by us and our subsidiaries to our customers. Laws that restrict our ability to share information about customers between our affiliated companies could adversely affect our business, results of operations and financial condition. For additional discussion, see “Supervision and Regulation” in Part I, Item 1. in this Form 10-K.

Our business could suffer if we fail to attract, develop, retain and successfully integrate skilled personnel

Our success depends, in large part, on our ability to attract, develop and retain key personnel, including executives. Any of our current employees, including our senior management, may terminate their employment with us at any time. Competition for qualified personnel in our industry can be intense. We may not be successful in attracting, developing and retaining sufficient qualified personnel. We may also incur increased expenses and be required to divert the attention of other senior executives to recruit replacements for the loss of any key or other personnel.

From time to time, we experience turnover among members of management, often due to retirement or rotation to other assignments within the MUFG group. We must successfully integrate any new management personnel that we bring into the organization in order to achieve our operating objectives as new management becomes familiar with our business.

The challenging operating environment and current operational initiatives may strain our available resources

There are an increasing number of matters in addition to our core operations which require our attention and resources. These matters include implementation of our technology enhancement and replacement projects, adoption of the U.S. Basel III and other enhanced capital and liquidity guidelines, including the reforms to the Basel III agreement on bank capital standards finalized by the BCBS in December 2017 (“Basel IV”) but not yet applied by the U.S. federal banking agencies, various strategic initiatives, an uncertain economic environment, a challenging regulatory environment, including the effects of the Dodd-Frank Act and regulations adopted thereunder, and integration of new employees, including key members of management. Our ability to execute our core operations and to implement other important initiatives may be adversely affected if our resources are insufficient or if we are unable to allocate available resources effectively.

Also, our ability to constrain or reduce operating expense levels may be limited by the costs of increasing regulatory requirements and expectations.

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Significant legal or regulatory proceedings could subject us to substantial uninsured liabilities

We are from time to time subject to claims and proceedings related to our present or previous operations including claims by customers, our current or former employees and our contractual counterparties. These claims, which could include supervisory or enforcement actions by bank regulatory and other authorities, or criminal proceedings by prosecutorial authorities, could involve demands for large monetary amounts, including civil money penalties or fines imposed by government authorities, and significant defense costs. To mitigate the cost of some of these claims, we may maintain insurance coverage in amounts and with deductibles that we believe are appropriate for our operations. However, our insurance coverage does not cover any civil money penalties or fines imposed by government authorities and may not cover all other claims that have been or might be brought against us or continue to be available to us at a reasonable cost. As a result, we may be exposed to substantial uninsured liabilities which could adversely affect our business, prospects, results of operations and financial condition. In the past several years, federal and state regulators have announced regulatory enforcement actions against a number of large BHCs and banks arising from deficiencies in processes, procedures and controls involving anti-money laundering measures and compliance with the economic sanctions that affect transactions with designated foreign countries, nationals and others as provided for in the regulations of the OFAC of the U.S. Treasury Department. These actions evidence an intensification of U.S. federal and state governments’ expectations for compliance with these regulatory frameworks on the part of banks operating in the U.S., including MUB, and may result in increased compliance costs and increased risks of regulatory sanctions.

During 2017 and 2018, the Trump Administration appointed new leadership in key positions at the Federal Reserve, OCC, FDIC and CFPB. Whether and to what extent these leadership changes will result in new regulatory initiatives and policies, or modifications of existing regulations and policies which may impact our business in the U.S. cannot be predicted at this time.

The changes in the U.S. tax laws, the majority of which were effective January 1, 2018, will impact our business and results of operations in a variety of ways, some of which are expected to be positive and others which may be negative

On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act enacting sweeping changes to the U.S. tax laws effective January 1, 2018. These changes can be expected to impact our business and results of operations in a variety of ways, some of which are expected to be positive and others which may be negative.  Among changes which are expected to affect MUAH and its subsidiaries are the following.

• A reduction in the federal corporate tax rate to 21 percent from 35 percent, effective January 1, 2018.  In general, we expect that this will result in a net reduction in annual income tax expense; however, our ability to currently utilize tax credits may be constrained by the lower tax rate. For example, we have invested in low-income housing and alternative energy investments that generate tax benefits and credits. The reduction of income tax expense reduces our ability to currently realize the tax credits generated by these investments.

• A new incremental base erosion and anti-abuse tax (“BEAT”) which is intended to tax certain outbound deductible payments made to related foreign affiliates. To the extent that the taxpayer’s deductible payments to foreign affiliates exceed a specified threshold, the taxpayer will be subject to the BEAT minimum tax calculation. This minimum tax could apply to payments we make to our parent or other affiliates both within and outside of the U.S. We are presently analyzing the possible impact of this new tax on payments we may make to our affiliates.

We are continuing to monitor the full impact of these changes in the tax law on our tax positions which may not be fully known until interpretive guidance is issued by the IRS.

For additional information regarding the possible effects of the new federal tax laws on our business,  see “The effects of changes or increases in, or supervisory enforcement of, banking, securities, competition, or other laws and regulations or governmental fiscal, monetary or tax policies could adversely affect us or make strategic planning more difficult” and “Adverse economic factors affecting certain industries we serve could adversely affect our business” above in this Risk Factors section.

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Our effective tax rates and our future results can also be affected by our participation for state income tax purposes as a member of MUFG’s unitary group in the U.S. and by other factors

Under a tax election we have made, we are required to file our California franchise tax returns as a member of a unitary group that includes MUFG’s U.S. operations, including its U.S. branches and other affiliates. Increases or decreases in the taxable profits of MUFG’s U.S. operations could increase or decrease our effective tax rate for California state income tax purposes. We review MUFG’s financial information on a quarterly basis to determine the rate at which to recognize our California income taxes. However, all of the information relevant to determining the effective California tax rate may not be available until after the end of the period to which the tax relates, primarily due to MUFG’s March 31 fiscal year-end. Our California effective tax rate can change during the calendar year or between calendar years as additional information becomes available. We could be subject to penalties and interest if we understate our tax obligations. Our effective tax rates for both federal and state income tax purposes also could be affected by valuation changes in our deferred tax assets and liabilities, changes in tax laws or their interpretations and by the outcomes of examinations of our income tax returns by tax authorities.

Our credit ratings are important in order to maintain liquidity

Major credit rating agencies regularly evaluate and provide credit ratings of the securities of MUAH and the securities and deposits of MUB and also provide entity ratings for MUAH, MUB and MUSA. Their ratings of our long-term and short-term debt obligations and of our deposits and our entity ratings are based on a number of factors including our financial strength, ability to generate earnings, and other factors, some of which are not entirely within our control, such as conditions affecting the financial services industry and the economy. In light of the continually evolving conditions in the financial services industry, the financial markets and the economy, changes to credit rating methodologies and the ongoing assessment of our current and expected satisfaction of various rating criteria, no assurance can be given that we will maintain our current ratings. If our long-term or short-term credit ratings suffer substantial downgrades, particularly if lowered below investment grade, such downgrades could adversely affect access to liquidity and could significantly increase our cost of funds (especially our wholesale funding), trigger additional collateral or funding requirements and decrease the number of commercial depositors, investors and counterparties willing or permitted to lend to us, thereby curtailing our business operations and reducing our ability to generate income. For additional information, see “Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Management - Liquidity Risk Management” in Part II, Item 7. of this Form 10-K.

Certain of our derivative instruments contain provisions that require us to maintain a specified credit rating. If our credit rating were to fall below the specified rating, the counterparties to these derivative instruments could terminate the contract and demand immediate payment or demand immediate and ongoing full overnight collateralization for those derivative instruments in net liability positions.

Adverse changes in the credit ratings, operations or prospects of our parent companies, MUFG Bank, Ltd. and MUFG, could also adversely impact our credit ratings. For additional information, refer to the discussion above under the caption “MUFG Bank Ltd.’s and Mitsubishi UFJ Financial Group’s credit ratings and financial or regulatory condition could adversely affect our operations.”

We rely on third parties for important products and services

Third-party vendors provide key components of our business infrastructure such as internet connections, network access and mutual fund distribution and, although we monitor their performance, we do not control their actions. Among other services provided by these vendors, third-party vendors have played and will continue to play a key role in the implementation of our technology enhancement and replacement projects. The federal banking agencies have issued enhanced guidance and are examining with increasing scrutiny financial institutions’ diligence conducted on and oversight of their third-party vendors. Any problems caused by these third parties, including those as a result of their not providing us their services for any reason or their performing their services poorly or failing to meet legal and regulatory requirements, could adversely affect our ability to deliver products and services to our customers, implement our technology enhancement and replacement projects or otherwise conduct our business and also could result in disputes with such vendors over their performance of their services to us, as well as adverse regulatory consequences for us. Replacing these third-party vendors on economically feasible terms may not always be possible or within our control and could also entail significant delay and expense.

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We are subject to a wide array of operational risks, including, but not limited to, cyber-security risks

We are subject to many types of operational risks throughout our organization. Operational risk is the risk to our financial position and resilience arising from inadequate or failed internal processes or systems, human errors or misconduct, or adverse external events, that do not fall into the market risk or credit risk categories described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk Management” in Part II, Item 7. of this Form 10-K. Operational risk includes execution risk related to operational initiatives, such as implementation of our technology enhancement and replacement projects, including a project to enhance our data collection and analysis capabilities for regulatory and financial reporting purposes; increased reliance on internally developed models for risk and finance management and compliance, including models associated with regulatory capital requirements; risks from cyber-security breaches or attacks; the risk of fraud or theft by employees, customers or outsiders; unauthorized transactions by employees or operational errors, including clerical or record-keeping errors or those resulting from faulty or disabled computer or telecommunications systems; and operational risks related to use of third party service providers. A discussion of risks associated with regulatory compliance appears above under the caption “The effects of changes or increases in, or supervisory enforcement of, banking, securities, competition or other laws and regulations or governmental fiscal, monetary, or tax policies could adversely affect us or make strategic planning more difficult.”

Our operations rely on the secure processing, storage, transmission and reporting of personal, confidential and other sensitive information or data in our computer systems, networks and business applications. Although we take protective measures, our computer systems may be vulnerable to breaches, unauthorized access, misuse, computer viruses or other malicious code and other events that could have significant negative consequences to us. Such events could result in interruptions or malfunctions in our operations or our customers’ operations; interception, misuse or mishandling of personal, confidential or proprietary information and data; or processing of unauthorized transactions or loss of funds. These events could result in litigation and financial losses that are either not insured against or not fully covered by our insurance and regulatory consequences or reputational harm, any of which could harm our competitive position, operating results and financial condition. These types of incidents can remain undetected for extended periods of time, thereby increasing the associated risks. We may also be required to expend significant resources to modify our protective measures or to investigate and remediate vulnerabilities or exposures arising from cyber-security risks. We may also be required to expend significant resources to cover costs imposed on us as a result of breaches of bank card information occurring at retail merchants and other businesses.

We depend on the continued efficacy of our data management and governance policies, technical systems, operational infrastructure, relationships with third parties and our employees in our day-to-day and ongoing operations. Our dependence upon automated systems to record and process transactions may further increase the risk that technical system flaws or employee tampering or manipulation of those systems will result in losses that are difficult to detect or data which are not reliable. We are also exposed to the risk that, notwithstanding our data management and governance policies, data in our system may become corrupted, inaccurate or out-of-date, any of which can impair the integrity of our decision-making processes. With regard to the physical infrastructure that supports our operations, we have taken measures to implement backup systems and other safeguards, but our ability to conduct business may be adversely affected by any disruption to that infrastructure, including disruptions from natural disasters or other causes. Failures in our internal control or operational systems, security breaches or service interruptions, or those of our third-party service providers could impair our ability to operate our business and result in potential liability to customers, reputational damage and regulatory intervention, any of which could harm our operating results and financial condition. Although we carefully review the risk management standards and processes of our important third party service providers, there can be no assurance that the risk management efforts of our providers will be successful in preventing all cyber incidents.

MUB, and reportedly other financial institutions, have been the target of various denial-of-service or other cyber-attacks (including attempts to inject malicious code and viruses into computer systems) as part of what appears to be a coordinated effort to disrupt the operations of financial institutions and potentially test their cyber-security in advance of future and more advanced cyber-attacks. The potential for denial-of-service and other attacks require substantial resources to defend and may affect customer satisfaction and behavior. To date we have not experienced any material losses relating to cyber-attacks or other information security breaches, but there can be no assurance that we will not suffer such losses or information security breaches in the future.

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While we have a variety of cyber-security measures in place, the consequences to our business of such attacks cannot be predicted with any certainty.

In addition, there have been increasing efforts on the part of third parties to breach data security at financial institutions as well as at other types of companies, such as large retailers, or with respect to financial transactions, including through the use of social engineering schemes such as “phishing.” The ability of our customers to bank remotely, including online and through mobile devices, requires secure transmissions of confidential information and increases the risk of data security breaches which would expose us to financial claims by customers or others and which could adversely affect our reputation. Even if cyber-attacks and similar tactics are not directed specifically at MUB or our third-party service providers, such attacks on other large financial institutions could disrupt the overall functioning of the financial system and undermine consumer confidence in banks generally, to the detriment of other financial institutions, including MUB. For additional information regarding our obligations to provide for the security of our customers' data, see "Supervision and Regulation - Other Federal Laws and Regulations Affecting Banks - Customer Information Security" in this Form 10-K.

Under the applicable Federal regulatory guidance, financial institutions should design multiple layers of security controls to establish lines of defense and to ensure that their risk management processes also address the risk posed by compromised customer credentials, including security measures to reliably authenticate the identity of customers accessing internet-based services of the financial institution. In addition, the financial institution’s management is expected to maintain sufficient business continuity planning processes to ensure the rapid recovery, resumption and maintenance of the institution’s operations after a cyber-attack involving destructive or other malware. A financial institution is also expected to develop appropriate processes to enable recovery of data and business operations and address rebuilding network capabilities and restoring data if the institution or its critical service providers fall victim to this type of cyber-attack. A financial institution which fails to observe this regulatory guidance could be subject to various regulatory sanctions, including financial penalties.

The Federal bank regulators have also issued a cyber-security assessment tool, the output of which can assist a financial institution’s senior management and board of directors in assessing the institution’s cyber-security risk and preparedness. The first part of the assessment tool generates an inherent risk profile, which assists management in determining an institution’s level of cyber-security risk. The second part of the assessment tool evaluates cyber-security maturity, which is designed to help management assess whether their controls provide the desired level of preparedness. The Federal bank regulators utilize the assessment tool as part of their examination process when evaluating financial institutions’ cyber-security preparedness in information technology and safety and soundness examinations and inspections. Failure to effectively utilize this tool could result in regulatory criticism. Significant resources may be required to adequately implement the tool and address any assessment concerns regarding preparedness. Management performs an annual cyber-security assessment using this tool to facilitate the identification and remediation of any concerns regarding our cyber-security preparedness.

We may also be subject to disruptions of our operating systems arising from other events that are wholly or partially beyond our control, such as outages related to electrical, internet or telecommunications or other key supporting third party service providers, natural disasters (such as major seismic events), terrorist attacks or unexpected difficulties with the implementation of our technology enhancement and replacement projects, which may give rise to disruption of service to customers and to financial loss or liability in ways which cannot be predicted with any certainty. Our business recovery plan may not work as intended or may not prevent significant interruptions of our operations.

Negative public opinion could damage our reputation and adversely impact our business and revenues

As a financial institution, our business and revenues are subject to risks associated with negative public opinion. The reputation of the financial services industry in general has been damaged as a result of the financial crisis and other matters affecting the financial services industry, including mortgage foreclosure issues. Negative public opinion about us could result from our actual or alleged conduct in any number of activities, including our lending practices, the failure of any product or service we provide to meet our customers’ expectations or applicable regulatory requirements, governmental enforcement actions, corporate governance deficiencies, business acquisitions, use of social media, cyber-security breaches or from actions taken by regulators and community organizations in response to those activities. We fund our operations, in substantial part, independently of MUFG Bank, Ltd. and MUFG and believe our business is not necessarily closely related to the

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global business or outlook of MUFG Bank, Ltd. or MUFG. However, negative public opinion could also result from regulatory concerns or supervisory or other governmental actions in the U.S. or Japan with respect to MUB, MUSA, MUFG Bank, Ltd. or MUFG. Negative public opinion can adversely affect our ability to keep, attract and retain lending, deposit and other customers and employees and can expose us to claims and litigation and regulatory actions and increased liquidity risk. Actual or alleged misconduct by one of our businesses can result in negative public opinion about our other businesses.

Our framework for managing risks may not be effective in mitigating risk and loss to the Company

Our risk management framework is made up of various processes and strategies to manage our risk exposure. Types of risk to which we are subject include liquidity risk, credit risk, market and investment risk, interest rate risk, operational risk (including, but not limited to, information and model risk), legal risk, compliance risk, reputation risk, fiduciary risk, counterparty risk and strategic risk (including risks to our financial position and resilience arising from adverse business decisions or poorly implemented decisions or lack of responsiveness to industry changes and the operating environment), among others. Our framework to manage risk, including the framework’s underlying assumptions, such as our modeling methodologies, may not be effective under all conditions and circumstances. In the banking industry’s complex and rapidly evolving operating environment, certain risks, especially operational risk and strategic risk, can present significant challenges to our risk management framework. If our risk management framework proves ineffective, we could suffer unexpected losses and our business, financial condition, results of operations or prospects could be materially adversely affected and there also could be consequent adverse regulatory implications in any such event.

Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud

All of our issued and outstanding shares of common stock are owned by MUFG and MUFG Bank, Ltd. As such, we are not required to file periodic reports with the SEC pursuant to the Exchange Act; however, we have elected to voluntarily register our common stock under the Exchange Act and, for so long as we maintain that registration in effect, we will be required to continue to file such periodic reports with the SEC in accordance with a reduced disclosure format permitted for certain wholly-owned subsidiaries.

Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed by us in reports we file or submit under the Exchange Act is accumulated and communicated to management and recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Any disclosure controls and procedures or internal controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by an unauthorized override of the controls. Accordingly, because of the inherent limitations in our control system, misstatements due to error or fraud may occur and not be detected.

We may take actions to maintain client satisfaction that may result in losses or adversely affect our earnings

We may find it necessary to take actions or incur expenses in order to maintain client satisfaction even though we are not legally required to do so. The risk that we will need to take such actions and incur the resulting losses or reductions in earnings is greater in periods when financial markets and the broader economy are performing poorly or are particularly volatile. As a result, such actions may adversely affect our business, financial condition, results of operations or prospects, perhaps materially.

We may be adversely affected by the poor condition of other financial institutions

As a result of trading, clearing or other relationships, we have exposure to many different counterparties and routinely execute transactions with counterparties in the financial services industry, including commercial banks, brokers, dealers and investment banks. Many of these transactions expose us to credit risk in the event of a default by such a counterparty. In addition, our credit risk may be exacerbated when the collateral we hold cannot be readily liquidated or can only be liquidated at prices not sufficient to recover the full amount of the

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credit or derivative exposure owed to us. Any such losses could have a material adverse effect on our business, results of operations, financial condition or prospects.

Our financial results depend on management’s selection of accounting methods and certain assumptions and estimates

Our accounting policies and methods are fundamental to how we record and report our financial condition and results of operations. Our management must exercise judgment in selecting and applying many of these accounting policies and methods so they comply with GAAP and reflect management’s judgment of the most appropriate manner to report our financial condition and results of operations. In some cases, management must select the accounting policy or method to apply from two or more alternatives, any of which may be reasonable under the circumstances, yet may result in our reporting materially different results than would have been reported under a different alternative.

Certain accounting policies are critical to presenting our financial condition and results. They require management to make difficult, subjective or complex judgments about matters that are uncertain. Materially different amounts could be reported under different conditions or using different assumptions or estimates. These critical accounting policies include allowance for credit losses, valuation of financial instruments, transfer pricing, pension obligations, goodwill impairment analysis and income taxes. Because of the uncertainty of estimates involved in deciding these matters, we may be required to do one or more of the following: significantly increase or decrease the allowance for credit losses; sustain loan losses that are significantly different than the reserve provided; recognize significant impairment on goodwill; or significantly increase or decrease our accrued tax liability. Any one or more of these actions could adversely affect our business, results of operations and financial condition.

The California Consumer Privacy Act of 2018 or other such laws could result in increased operating expenses as well as additional exposure to the risk of litigation by or on behalf of customers

In June of 2018, the Governor of California signed into law The California Consumer Privacy Act of 2018 (the “CCPA”). This new law becomes effective on January 1, 2020 and provides consumers with expansive rights and control over their personal information which is obtained by or shared with “covered businesses” (which includes MUB and most other banking institutions subject to California law). The CCPA will give consumers the right to request disclosure of information collected about them and whether that information has been sold or shared with others, the right to request deletion of personal information subject to certain exceptions, the right to opt out of the sale of the consumer’s personal information and the right not to be discriminated against because of choices regarding the consumer’s personal information.

The CCPA provides for certain monetary penalties and for its enforcement by the California Attorney General or consumers whose rights under the law are not observed. It also provides for damages as well as injunctive or declaratory relief if there has been unauthorized access, theft or disclosure of personal information due to failure to implement reasonable security procedures. The CCPA contains several exemptions, including a provision to the effect that the CCPA does not apply where the information is collected, processed, sold or disclosed pursuant to the GLBA if the GLBA is in conflict with the CCPA. The impact of the CCPA on the business of MUB is yet to be determined, but it could result in increased operating expenses as well as additional exposure to the risk of litigation by or on behalf of consumers. It is possible that other states where we have customers could enact similar laws. For additional information, see “Supervision and Regulation – Other Federal Laws and Regulations Affecting Banks – Privacy” in Part I, Item 1. "Business" in this Form 10-K.

ITEM 1B.   UNRESOLVED STAFF COMMENTS

None.

ITEM 2.   PROPERTIES

MUAH's headquarters is located at 1251 Avenue of the Americas, in New York, New York. The Company leases approximately 362,000 square feet of building space at this location. The Company also owns or leases significant administrative or operational facilities in the San Francisco, Los Angeles, New York and Phoenix areas and owns or leases 352 branches, primarily located in California.

36

ITEM 3.   LEGAL PROCEEDINGS

We are subject to various pending and threatened legal actions that arise in the normal course of business. We maintain liabilities for losses from legal actions that are recorded when they are determined to be both probable in their occurrence and can be reasonably estimated. In addition, we believe the disposition of all claims currently pending, including potential losses from claims that may exceed the liabilities recorded, and claims for loss contingencies that are considered reasonably possible to occur, will not have a material effect, either individually or in the aggregate, on our consolidated financial condition, operating results or liquidity.

ITEM 4.   MINE SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5.   MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

On November 4, 2008, the Company became a wholly-owned subsidiary of MUFG Bank, Ltd. and the Company's common stock was delisted from the New York Stock Exchange. All of the Company's issued and outstanding shares of common stock are now held by MUFG Bank, Ltd. and MUFG, and there is presently no established public trading market for the Company's common stock.

As described in Item 8.01 of Form 8-K filed December 14, 2018, on December 12, 2018, MUAH repurchased for cash an aggregate of 15,654,589 shares of its outstanding common stock from MUFG and MUFG Bank, Ltd. (765,245 shares from MUFG and 14,889,344 shares from MUFG Bank, Ltd.) at a per share price of $159.42, for an aggregate purchase price of approximately $2.5 billion. This share repurchase was partially funded by a $1.7 billion dividend from MUFG Union Bank, N.A., MUAH’s principal banking subsidiary, and paid to MUAH on December 12, 2018.

ITEM 6.   SELECTED FINANCIAL DATA

The information called for by this item has been omitted pursuant to General Instruction I(2) of Form 10-K.

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Item 7. to this Form 10-K begins on page 43 of this report.

ITEM 7A.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Item 7A. to this Form 10-K begins on page 67 of this report.

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Item 8. to this Form 10-K begins on page 76 of this report.

ITEM 9.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A.   CONTROLS AND PROCEDURES

Disclosure Controls and Procedures.   As of the end of the period covered by this report, an evaluation was carried out under the supervision and with the participation of the Company's management, including its Chief Executive Officer and its Chief Financial Officer, of the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based on that evaluation, the Chief

37

Executive Officer and the Chief Financial Officer concluded that these disclosure controls and procedures were effective.

Internal Control Over Financial Reporting.    Management's Report on Internal Control Over Financial Reporting is presented on page 156. The Report of Independent Registered Public Accounting Firm is presented on page 158. During the quarter ended December 31, 2018, there were no changes in our internal controls over financial reporting that materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

ITEM 9B.   OTHER INFORMATION

None.

38

PART III

ITEM 10.   DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Certain information called for by this item has been omitted pursuant to General Instruction I(2) of Form 10-K.

Code of Ethics

We have adopted a Code of Ethics applicable to senior financial officers, including our Chief Executive Officer, Chief Financial Officer and Controller & Chief Accounting Officer. A copy of this Code of Ethics is posted on our website. To the extent required by SEC rules, we intend to disclose promptly any amendment to, or waiver from any provision of, the Code of Ethics applicable to senior financial officers on our website. Our website address is www.unionbank.com.

ITEM 11.   EXECUTIVE COMPENSATION

The information called for by this item has been omitted pursuant to General Instruction I(2) of Form 10-K.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information called for by this item has been omitted pursuant to General Instruction I(2) of Form 10-K.

ITEM 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information called for by this item has been omitted pursuant to General Instruction I(2) of Form 10-K.

39

ITEM 14.   PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees

The following is a description of the fees billed to MUAH by Deloitte & Touche LLP for 2018 and 2017. All fees were pre-approved by our Audit & Finance Committee.

(Dollars in thousands)	2018		2017
Audit Fees(1)	$	8,365	$	8,162
Audit-Related Fees(2)	2,561		2,391
Tax Fees(3)	698		1,187
Total	$	11,624	$	11,740

(1) Audit fees relate to services rendered in connection with the annual audit of MUAH's consolidated financial statements, quarterly reviews of financial statements included in MUAH's quarterly reports on Form 10-Q, fees for consultation on new accounting and reporting requirements and SEC registration statement services, and the attestation assessment related to the effectiveness of MUAH's financial reporting controls, as required by Section 404 of the Sarbanes-Oxley Act.

(2) Audit-related fees consist of assurance and other such services that are reasonably related to the performance of the audit or review of MUAH's financial statements and are not included in Audit Fees. Amounts include fees for services provided in connection with service auditors reports and audits of employee benefit plans and SSAE18 reviews. 2018 includes the implementation of new accounting standards (CECL & leasing), as well as work related to SSAE18 scope changes.

(3) Tax fees include fees for tax compliance, advice and planning services. Fees related to tax compliance and preparation for 2018 and 2017 were $209,000 and $346,000, respectively. For 2018 and 2017, fees related to tax advice and planning were $489,000 and $841,000, respectively.

The Audit & Finance Committee also considered whether the provision of the services other than audit services is compatible with maintaining Deloitte & Touche LLP's independence. All of the services described above were approved by the Audit & Finance Committee in accordance with the following policy.

Pre-approval of Services by Deloitte & Touche LLP

The Audit & Finance Committee has adopted a policy for pre-approval of audit and permitted non-audit services by Deloitte & Touche LLP. The Audit & Finance Committee will periodically consider and, if appropriate, approve, the provision of audit services by its independent registered public accounting firm and consider and, if appropriate, pre-approve, the provision of certain defined audit and non-audit services. The policy provides that:

• the pre-approval request must be detailed as to the particular services to be provided;

• the pre-approval may not result in a delegation of the Audit & Finance Committee's responsibilities to the management of MUAH; and

• the pre-approved services must be commenced within twelve months of the Audit & Finance Committee's pre-approval decision.

Any proposed engagement may be presented to the Audit & Finance Committee for consideration at its next regular meeting or, if earlier consideration is required, to the Audit & Finance Committee Chair. The Chair reports any specific approval of services at the Audit & Finance Committee's next regular meeting. The Audit & Finance Committee regularly reviews summary reports detailing all services being provided by its independent registered public accounting firm.

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PART IV

ITEM 15.   EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)(1) Financial Statements

Our Consolidated Financial Statements, Management's Report on Internal Control Over Financial Reporting and Reports of Independent Registered Public Accounting Firm are set forth beginning on page 76 of this Form 10-K.

(a)(2) Financial Statement Schedules

All schedules to our Consolidated Financial Statements are omitted because of the absence of the conditions under which they are required or because the required information is included in our Consolidated Financial Statements or accompanying notes.

(a)(3) Exhibits

A list of exhibits to this Form 10-K is set forth on the Exhibit Index immediately preceding such exhibits and is incorporated into this item by reference.

ITEM 16.  FORM 10-K SUMMARY

Not applicable.

41

MUFG Americas Holdings Corporation and Subsidiaries

Table of Contents

Management's Discussion and Analysis of Financial Condition and Results of Operations	43
Introduction	46
Executive Overview	46
Financial Performance	48
Balance Sheet Analysis	52
Capital Management	56
Risk Management	60
Critical Accounting Estimates	72
Non-GAAP Financial Measures	75
Audited Financial Statements:
Consolidated Statements of Income	76
Consolidated Statements of Comprehensive Income	77
Consolidated Balance Sheets	78
Consolidated Statements of Changes in Stockholders' Equity	79
Consolidated Statements of Cash Flows	80
Note 1—Summary of Significant Accounting Policies and Nature of Operations	81
Note 2—Securities	91
Note 3—Loans and Allowance for Loan Losses	97
Note 4—Premises and Equipment and Other Assets	105
Note 5—Goodwill and Other Intangible Assets	106
Note 6—Variable Interest Entities	108
Note 7—Deposits	110
Note 8—Securities Financing Arrangements	110
Note 9—Commercial Paper and Other Short-Term Borrowings	113
Note 10—Long-Term Debt	114
Note 11—Fair Value Measurement and Fair Value of Financial Instruments	117
Note 12—Derivative Instruments and Other Financial Instruments Used For Hedging	126
Note 13—Accumulated Other Comprehensive Income	129
Note 14—Management Stock Plans	132
Note 15—Employee Pension and Other Postretirement Benefits	133
Note 16—Other Noninterest Income and Noninterest Expense	142
Note 17—Income Taxes	143
Note 18—Regulatory Capital Requirements	145
Note 19—Restrictions on Cash and Due from Banks, Securities, Loans and Dividends	146
Note 20—Commitments, Contingencies and Guarantees	147
Note 21—Related Party Transactions	148
Note 22—Business Segments	149
Note 23—Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company)	154
Management's Report on Internal Control over Financial Reporting	156
Report of Independent Registered Public Accounting Firm	157
Supplementary Information:
Quarterly Financial Data (Unaudited)	159

42

MUFG Americas Holdings Corporation and Subsidiaries

Management's Discussion and Analysis of Financial Condition and Results of Operations

This report includes forward-looking statements, which include expectations for our operations and business, and our assumptions for those expectations. Do not rely unduly on forward-looking statements. Actual results might differ significantly from our expectations. Please also refer to "Note Regarding Forward-Looking Statements" and Part I, Item 1A. "Risk Factors" in this Form 10-K for a discussion of some factors that may cause results to differ from our expectations.

The following discussion and analysis of our consolidated financial position and results of our operations for the years ended December 31, 2018, 2017 and 2016 should be read together with our Consolidated Financial Statements and the Notes to Consolidated Financial Statements included in this Form 10-K. Averages, as presented in the following tables, are substantially all based upon daily average balances.

As used in this Form 10-K, terms such as "the Company," "we," "us" and "our" refer to MUFG Americas Holdings Corporation (MUAH), one or more of its consolidated subsidiaries, or to all of them together. As permitted by General Instruction I(2) of Form 10-K, we have abbreviated Management's Discussion and Analysis into a management's narrative analysis of the results of operations.

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Financial Highlights

	For the Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Results of operations:
Net interest income	$	3,307		$	3,204		$	3,053
Noninterest income	2,177			2,010			2,225
Total revenue	5,484			5,214			5,278
Noninterest expense	4,277			3,984			3,782
Pre-tax, pre-provision income(1)	1,207			1,230			1,496
(Reversal of) provision for credit losses	106			(103		)	155
Income before income taxes and including noncontrolling interests	1,101			1,333			1,341
Income tax expense	52			299			419
Net income including noncontrolling interests	1,049			1,034			922
Deduct: Net loss from noncontrolling interests	24			43			68
Net income attributable to MUAH	$	1,073		$	1,077		$	990
Balance sheet (period average):
Total assets	$	160,529		$	152,544		$	150,901
Total securities	27,395			26,315			23,625
Securities borrowed or purchased under resale agreements	20,486			20,901			24,546
Total loans held for investment	82,746			78,770			80,174
Earning assets	147,136			139,389			138,335
Total deposits	86,478			86,395			84,626
Securities loaned or sold under repurchase agreements	26,906			26,291			26,631
MUAH stockholders' equity	18,400			17,926			17,003
Performance ratios:
Return on average assets(2)	0.67		%	0.71		%	0.66		%
Return on average MUAH stockholders' equity(2)	5.83			6.01			5.82
Return on average MUAH tangible common equity(2)(3)	7.35			7.57			7.39
Efficiency ratio(4)	77.98			76.42			71.65
Adjusted efficiency ratio(5)	72.47			n/a			n/a
Net interest margin(2)(6)	2.26			2.33			2.23
Net loans charged-off to average total loans held for investment (2)	0.10			0.13			0.30

43

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Financial Highlights (Continued)

	As of December 31,
	2018			2017			2016
Balance sheet (end of period):
Total assets	$	168,100		$	154,550		$	148,144
Total securities	27,215			27,448			24,478
Securities borrowed or purchased under resale agreements	22,368			20,894			19,747
Total loans held for investment	86,507			80,014			77,551
Nonperforming assets	422			466			692
Total deposits	90,979			84,787			86,947
Securities loaned or sold under repurchase agreements	27,285			26,437			24,616
Long-term debt	17,918			12,162			11,410
MUAH stockholders' equity	16,508			18,255			17,233
Credit ratios:
Allowance for loan losses to total loans held for investment(7)	0.55		%	0.59		%	0.82		%
Allowance for loan losses to nonaccrual loans(7)	112.50			102.37			92.69
Allowance for credit losses to total loans held for investment(8)	0.71			0.75			1.03
Allowance for credit losses to nonaccrual loans(8)	145.61			128.75			116.20
Nonperforming assets to total loans held for investment and OREO	0.49			0.58			0.89
Nonperforming assets to total assets	0.25			0.30			0.47
Nonaccrual loans to total loans held for investment	0.49			0.58			0.89
Capital ratios:
Regulatory (9):
Common Equity Tier 1 risk-based capital ratio	13.96		%	16.31		%	14.77		%
Tier 1 risk-based capital ratio	13.96			16.31			14.77
Total risk-based capital ratio	14.60			17.76			16.45
Tier 1 leverage ratio	8.77			10.06			9.92
Other:
Tangible common equity ratio(10)	7.89		%	9.73		%	9.58		%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in)(11)	13.96			16.27			14.73

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MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Financial Highlights (Continued)

(1) Pre-tax, pre-provision income is total revenue less noninterest expense. Management believes that this is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle.

(2) Annualized.

(3) Return on tangible common equity, a non-GAAP financial measure, is net income excluding intangible asset amortization divided by average tangible common equity. Management believes that this ratio provides useful supplemental information regarding the Company's business results. The methodology for determining tangible common equity may differ among companies. Please refer to Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Financial Measures" in this Form 10-K for further information.

(4) The efficiency ratio is total noninterest expense as a percentage of total revenue (net interest income and noninterest income).

(5) The adjusted efficiency ratio, a non-GAAP financial measure, is adjusted noninterest expense (noninterest expense excluding costs associated with services provided to MUFG Bank, Ltd. branches in the U.S.) as a percentage of adjusted total revenue (net interest income and noninterest income excluding fees from affiliates for services provided to MUFG Bank, Ltd.'s branches in the U.S. and the impact of the TCJA). Management believes adjusting the efficiency ratio for the fees and costs associated with services provided to MUFG Bank, Ltd. branches in the U.S. enhances the comparability of MUAH's efficiency ratio when compared with other financial institutions. Management believes adjusting revenue for the impact of the TCJA enhances comparability between periods. Adjusted efficiency ratios for the years ended December 31, 2017 and 2016 are not presented because the Company began identifying all costs associated with services provided to MUFG Bank, Ltd. branches in the U.S. in the third quarter of 2017. Previously, the Company was only able to identify a portion of the costs associated with services provided to MUFG Bank, Ltd. branches in the U.S. Please refer to Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Financial Measures" in this Form 10-K for further information.

(6) Yields, interest income and net interest margin are presented on a taxable-equivalent basis using the federal statutory tax rates of 21% and 35% for 2018 and 2017, respectively.

(7) The allowance for loan losses ratios are calculated using the allowance for loan losses as a percentage of end of period total loans held for investment or total nonaccrual loans, as appropriate.

(8) The allowance for credit losses ratios include the allowances for loan losses and for losses on unfunded credit commitments as a percentage of end of period total loans held for investment or total nonaccrual loans, as appropriate.

(9) These capital ratios are calculated in accordance with the transition guidelines set forth in the U.S. federal banking agencies' final U.S. Basel III regulatory capital rules.

(10) The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible common equity divided by tangible assets. The methodology for determining tangible common equity may differ among companies. The tangible common equity ratio facilitates the understanding of the Company's capital structure and is used to assess and compare the quality and composition of the Company's capital structure to other financial institutions. Please refer to Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Management" in this Form 10-K for further information.

(11) Common Equity Tier 1 risk-based capital (standardized, fully phased-in basis) is a non-GAAP financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies as if the transition provisions of the U.S. Basel III rules were fully phased in for the periods in which the ratio is disclosed. Management reviews this ratio, which excludes components of accumulated other comprehensive loss, along with other measures of capital as part of its financial analyses and has included this non-GAAP information because of current interest in such information by market participants. Refer to Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Management" in this Form 10-K for further information.

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Introduction

We are a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. (MUB or the Bank) and MUSA. We are owned by MUFG Bank, Ltd. and MUFG. MUFG Bank, Ltd. is a wholly-owned subsidiary of MUFG.

We provide a wide range of financial services to consumers, small businesses, middle-market companies and major corporations, both nationally and internationally. The Company also provides various business, banking, financial, administrative and support services, and facilities for MUFG Bank, Ltd. in connection with the operation and administration of MUFG Bank, Ltd.'s business in the U.S. (including MUFG Bank, Ltd.'s U.S. branches). The Bank and MUFG Bank, Ltd. are party to a master services agreement whereby the Bank earns fee income in exchange for services and facilities provided. The Company has four reportable segments: Regional Bank, U.S. Wholesale & Investment Banking, Transaction Banking and MUSA. See Note 22 to our Consolidated Financial Statements included in this Form 10-K for more information about our reportable segments.

On July 1, 2016, MUFG designated MUAH as its U.S. Intermediate Holding Company and transferred substantially all its U.S. subsidiaries to the IHC in accordance with the requirements of the Federal Reserve's final rules for Enhanced Prudential Standards. MUFG's remaining U.S. subsidiaries were transferred to MUAH on July 1, 2017.

Executive Overview

We are providing you with an overview of what we believe are the most significant factors and developments that affected our 2018 results and that could influence our future results. Further detailed information can be found elsewhere in this Form 10-K. In addition, you should carefully read this entire document and any other reports that we refer to in this Form 10-K for more detailed information to assist your understanding of trends, events and uncertainties that impact us.

Our sources of revenue are net interest income and noninterest income (collectively "total revenue"). Net interest income is generated predominantly from interest earned from loans, investment securities, securities borrowed or purchased under resale agreements, trading account assets and other interest-earning assets, less interest incurred on deposits and borrowings, securities loaned or sold under repurchase agreements and other interest-bearing liabilities. The primary sources of noninterest income are revenues from investment banking and syndication fees, service charges on deposit accounts, trust and investment management fees, trading account activities, credit facility fees, and fees from affiliates. Changes in interest rates, credit quality, economic trends and the capital markets are primary factors that affect our revenue sources. In 2018, revenue was comprised of 60% net interest income and 40% noninterest income. A summary of our financial results is discussed below.

Our primary sources of liquidity are core deposits, securities and wholesale funding. Core deposits exclude brokered deposits, foreign time deposits, domestic time deposits greater than $250,000, and certain other deposits not considered to be core customer relationships. Wholesale funding includes unsecured funds raised from MUFG Bank, Ltd. and affiliates, interbank and other sources, both domestic and international, funding secured by certain assets, or by borrowing from the FHLB. We evaluate and monitor the stability and reliability of our various funding sources to help ensure that we have sufficient liquidity when adverse situations arise.

Performance Highlights

Net income attributable to MUAH was $1.1 billion in 2018, a decrease of $4 million from 2017, which was primarily due to a higher provision for credit losses, higher salaries and benefits expense and losses on certain renewable energy investments of $164 million as a result of the TCJA. These decreases in net income were offset by higher net interest income from an increase in earning assets, higher fees from affiliates, and lower tax expense as a result of the TCJA.

The provision for credit losses was $106 million in 2018 compared with a reversal of $103 million in 2017. The current period provision for credit losses was primarily due to the impact of specific reserves for credit losses on impaired loans. The reversal of provision for credit losses in 2017 reflected general improvement in portfolio credit quality and composition.

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Capital Ratios

The Company's capital ratios continued to exceed all well-capitalized and minimum regulatory thresholds for BHCs, as applicable. The U.S. Basel III Common Equity Tier 1, Tier 1 and Total risk-based capital ratios were 13.96%, 13.96% and 14.60%, respectively, at December 31, 2018. The Tier 1 leverage ratio was 8.77% at December 31, 2018. The Company's risk-based capital ratios decreased during 2018 driven primarily by a $2.5 billion share repurchase in December 2018, partially offset by net income earned during the year.

47

Financial Performance

Net Interest Income

The following table shows the major components of net interest income and net interest margin.

	For the Years Ended
	December 31, 2018							December 31, 2017							December 31, 2016
(Dollars in millions)	Average Balance			Interest Income/ Expense(1)		Average Yield/ Rate(1)(2)		Average Balance			Interest Income/ Expense(1)		Average Yield/ Rate(1)(2)		Average Balance			Interest Income/ Expense(1)		Average Yield/ Rate(1)(2)
Assets
Loans held for investment(3):
Commercial and industrial	$	23,667		$	989	4.18	%	$	24,786		$	899	3.63	%	$	29,329		$	999	3.41	%
Commercial mortgage	14,704			614		4.18		14,304			581		4.06		14,939			577		3.86
Construction	1,656			80		4.86		1,957			85		4.35		2,234			86		3.82
Lease financing	1,437			62		4.31		1,749			41		2.37		1,855			62		3.36
Residential mortgage	37,311			1,311		3.51		32,584			1,102		3.38		28,327			942		3.32
Home equity and other consumer loans	3,971			258		6.49		3,390			199		5.86		3,490			181		5.19
Total loans held for investment	82,746			3,314		4.01		78,770			2,907		3.69		80,174			2,847		3.55
Securities	27,395			677		2.47		26,315			588		2.23		23,625			503		2.13
Securities borrowed or purchased under resale agreements	20,486			652		3.18		20,901			347		1.66		24,546			196		0.80
Interest bearing deposits in banks	4,009			80		1.99		3,172			39		1.24		3,020			16		0.53
Federal funds sold	5			—		2.79		2			—		1.58		16			—		0.56
Trading account assets	12,026			415		3.45		9,668			326		3.37		6,538			172		2.63
Other earning assets	469			10		2.13		561			11		1.84		416			11		2.66
Total earning assets	147,136			5,148		3.50		139,389			4,218		3.03		138,335			3,745		2.71
Allowance for loan losses	(467		)					(571		)					(766		)
Cash and due from banks	1,811							1,868							1,857
Premises and equipment, net	614							603							615
Other assets(4)	11,435							11,255							10,860
Total assets	$	160,529						$	152,544						$	150,901
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	36,883		$	238	0.65	%	$	39,165		$	153	0.39	%	$	38,273		$	116	0.30	%
Savings	9,120			65		0.71		7,683			24		0.31		5,802			3		0.05
Time	7,588			138		1.81		5,430			64		1.18		6,921			75		1.09
Total interest bearing deposits	53,591			441		0.82		52,278			241		0.46		50,996			194		0.38
Commercial paper and other short-term borrowings	8,700			168		1.93		5,047			58		1.15		5,204			32		0.62
Securities loaned or sold under repurchase agreements	26,906			734		2.73		26,291			353		1.34		26,631			140		0.52
Long-term debt	14,062			365		2.59		11,290			250		2.21		11,904			240		2.01
Total borrowed funds	49,668			1,267		2.55		42,628			661		1.55		43,739			412		0.94
Trading account liabilities	3,736			110		2.94		2,997			73		2.45		2,662			57		2.13
Total interest bearing liabilities	106,995			1,818		1.70		97,903			975		1.00		97,397			663		0.68
Noninterest bearing deposits	32,887							34,117							33,630
Other liabilities(5)	2,157							2,467							2,694
Total liabilities	142,039							134,487							133,721
Equity
MUAH stockholders' equity	18,400							17,926							17,003
Noncontrolling interests	90							131							177
Total equity	18,490							18,057							17,180
Total liabilities and equity	$	160,529						$	152,544						$	150,901
Net interest income/spread (taxable-equivalent basis)				3,330		1.80	%				3,243		2.03	%				3,082		2.03	%
Impact of noninterest bearing deposits						0.40							0.26							0.17
Impact of other noninterest bearing sources						0.06							0.04							0.03
Net interest margin						2.26							2.33							2.23
Less: taxable-equivalent adjustment				23							39							29
Net interest income				$	3,307						$	3,204						$	3,053

(1) Yields, interest income and net interest margin are presented on a taxable-equivalent basis using the federal statutory tax rates of 21% for 2018 and 35% for 2017 and 2016.

(2) Annualized.

(3) Average balances of loans held for investment include nonaccrual loans. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield.

(4) Other assets include noninterest bearing trading account assets.

(5) Other liabilities include noninterest bearing trading account liabilities.

48

Net interest income increased during 2018 compared with 2017 due to an increase in earning assets, partially offset by a decline in the net interest margin. Earning assets increased substantially due to increases in residential mortgages and trading assets, partially offset by a decrease in commercial loan balances. The net interest margin decreased seven basis points due primarily to an increase in funding costs resulting from an increase in borrowed funds and a flatter yield curve, partially offset by the favorable effect of noninterest bearing deposits in a rising rate environment.

Analysis of Changes in Net Interest Income

The following table shows the changes in the components of net interest income on a taxable-equivalent basis for 2018, 2017 and 2016. The changes in net interest income between periods have been reflected as attributable to either volume or rate changes. For purposes of this table, changes that are not solely due to volume or rate are allocated to these categories in proportion to the absolute dollar amounts of the changes in average volume and average rate. Net loan fees of $4 million, $7 million and $29 million for the years ended 2018, 2017 and 2016, respectively, are included in this table.

	For the Years Ended December 31,
	2018 versus 2017								2017 versus 2016
	Increase (Decrease) due to change in								Increase (Decrease) due to change in
(Dollars in millions)	Average Volume			Average Rate		Net Change			Average Volume			Average Rate			Net Change
Changes in Interest Income (1)
Loans held for investment:
Commercial and industrial	$	(42	)	$	132	$	90		$	(162	)	$	62		$	(100	)
Commercial mortgage	16			17		33			(25		)	29			4
Construction	(14		)	9		(5		)	(12		)	11			(1		)
Lease financing	(8		)	29		21			(4		)	(17		)	(21		)
Residential mortgage	166			43		209			143			17			160
Home equity and other consumer loans	36			23		59			(5		)	23			18
Total loans held for investment						407									60
Securities	25			64		89			60			25			85
Securities borrowed or purchased under resale agreements	(7		)	312		305			(33		)	184			151
Interest bearing deposits in banks	12			29		41			1			22			23
Federal funds sold	—			—		—			—			—			—
Trading account assets	81			8		89			97			57			154
Other earning assets	(3		)	2		(1		)	3			(3		)	—
Total earning assets						930									473
Changes in Interest Expense
Interest bearing deposits:
Transaction and money market accounts	(10		)	95		85			3			34			37
Savings	5			36		41			1			20			21
Time	31			43		74			(17		)	6			(11		)
Total interest bearing deposits						200									47
Commercial paper and other short-term borrowings	57			53		110			(1		)	27			26
Securities loaned or sold under repurchase agreements	8			373		381			(2		)	215			213
Long-term debt	67			48		115			(13		)	23			10
Total borrowed funds						606									249
Trading account liabilities	20			17		37			7			9			16
Total interest bearing liabilities						843									312
Changes in net interest income						$	87								$	161

(1) Interest income is presented on a taxable-equivalent basis using the federal statutory tax rates of 21% for 2018 and 35% for 2017 and 2016.

49

Noninterest Income and Noninterest Expense

The following tables display our noninterest income and noninterest expense for the years ended December 31, 2018, 2017 and 2016.

Noninterest Income

									Increase (Decrease)
									Years Ended December 31,
	Years Ended December 31,								2018 versus 2017					2017 versus 2016
(Dollars in millions)	2018			2017			2016		Amount			Percent		Amount			Percent
Service charges on deposit accounts	$	179		$	188		$	192	$	(9	)	(5	)%	$	(4	)	(2	)%
Trust and investment management fees	118			121			120		(3		)	(2	)	1			1
Trading account activities	(24		)	(5		)	105		(19		)	380		(110		)	(105	)
Securities gains, net	8			17			69		(9		)	(53	)	(52		)	(75	)
Credit facility fees	90			98			108		(8		)	(8	)	(10		)	(9	)
Brokerage commissions and fees	73			69			64		4			6		5			8
Card processing fees, net	50			47			39		3			6		8			21
Investment banking and syndication fees	355			369			312		(14		)	(4	)	57			18
Fees from affiliates	1,213			866			957		347			40		(91		)	(10	)
Other, net	115			240			259		(125		)	(52	)	(19		)	(7	)
Total noninterest income	$	2,177		$	2,010		$	2,225	$	167		8	%	$	(215	)	(10	)%

Noninterest income increased during 2018 compared with 2017 largely due to an increase in fees from affiliates as well as fund administration fees from entities transferred to the Company on July 1, 2017 (included in other, net). These increases were offset by the Company's share of losses on certain renewable energy investments of $164 million recorded in the first quarter of 2018 as a result of the TCJA (included in other, net). The increase in fees from affiliates during 2018 was due to higher fees earned under the master services agreement with MUFG Bank, Ltd. and a change in presentation of certain expenses beginning January 1, 2018, as a result of adopting ASU 2016-08, Principal versus Agent Considerations. During 2018, expenses of $189 million were presented as noninterest expense, rather than a reduction of fees from affiliates as they were presented through December 31, 2017.

50

Noninterest Expense

							Increase (Decrease)
							Years Ended December 31,
	Years Ended December 31,						2018 versus 2017					2017 versus 2016
(Dollars in millions)	2018		2017		2016		Amount			Percent		Amount			Percent
Salaries and employee benefits	$	2,616	$	2,495	$	2,439	$	121		5	%	$	56		2	%
Net occupancy and equipment	367		357		325		10			3		32			10
Professional and outside services	487		439		369		48			11		70			19
Software	287		192		154		95			49		38			25
Regulatory assessments	85		82		72		3			4		10			14
Intangible asset amortization	26		30		28		(4		)	(13	)	2			7
Other	409		389		395		20			5		(6		)	(2	)
Total noninterest expense	$	4,277	$	3,984	$	3,782	$	293		7	%	$	202		5	%

The increase in noninterest expense during 2018 compared with 2017 was largely driven by higher salaries and employee benefits expense, professional and outside services expense and software expense. The increase in salaries and employee benefits expense included the impact of higher headcount from entities transferred to the Company on July 1, 2017, increased services provided to MUFG Bank, Ltd. under the master services agreement, and technology-oriented initiatives to transform certain systems and processes. The increases in professional and outside services and software expenses were largely due to the change in presentation of certain expenses beginning January 1, 2018, as a result of adopting ASU 2016-08, Principal versus Agent Considerations, as discussed in Noninterest Income above. Excluding this change in presentation, professional and outside services expense decreased due to a decrease in compliance initiatives, partially offset by higher expenses related to the transformation initiatives, and software expense increased as a result of increased investment in software to support various business activities.

51

Income Tax Expense

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Income before income taxes and including noncontrolling interests	$	1,101		$	1,333		$	1,341
Income tax expense	52			299			419
Effective tax rate	5		%	22		%	31		%

Income tax expense and the effective tax rate include both federal and state income taxes. In 2018, income tax expense was $52 million with an effective tax rate of 5%, compared with $299 million and an effective tax rate of 22% in 2017. Income tax expense and the effective tax rate were lower in 2018 compared to 2017 primarily due to the TCJA. Income tax expense in 2018 also included an adjustment to certain prior period state income taxes during the first quarter of 2018 and income tax expense in 2017 included a one-time tax benefit as a result of the enactment of the TCJA. Excluding those adjustments, the effective tax rates for 2018 and 2017 would have been 10% and 30%, respectively.

For additional information regarding income tax expense, including a reconciliation between the effective tax rate and the statutory tax rate and changes in unrecognized tax benefits, see Note 17 to our Consolidated Financial Statements included in this Form 10-K.

Balance Sheet Analysis

Securities

Our securities portfolio is primarily used for liquidity and interest rate risk management purposes, to invest cash resulting from excess liquidity, and to a lesser extent, to support our business development objectives. We strive to maximize total return while managing this objective within appropriate risk parameters. Securities available for sale are substantially comprised of U.S. Treasury securities, U.S. government-sponsored agency securities, RMBSs, CMBSs, Cash Flow CLOs, and direct bank purchase bonds. Direct bank purchase bonds are instruments that are issued in bond form, accounted for as securities, but underwritten as loans with features that are typically found in commercial loans, and are subject to national bank regulatory lending authority standards. These instruments typically are not issued in bearer form, nor are they registered with the SEC or the Depository Trust Company. Additionally, these instruments generally contain certain transferability restrictions and are not assigned external credit ratings. Securities held to maturity consist of U.S. Treasury securities, U.S. government-sponsored agency securities and U.S. government-sponsored agency RMBSs and CMBSs.

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities, and securities pledged as collateral, are detailed in Note 2 to our Consolidated Financial Statements in this Form 10-K. 

52

The following tables show the remaining contractual maturities and expected yields of the securities based upon amortized cost at December 31, 2018. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

Securities Available for Sale

	December 31, 2018
	Maturities
	One Year or Less				Over One Year Through Five Years				Over Five Years Through Ten Years				Over Ten Years				Total Amortized Cost
(Dollars in millions)	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
Asset Liability Management securities:
U.S. Treasury	$	—	—	%	$	1,340	1.53	%	$	2,232	1.96	%	$	—	—	%	$	3,572	1.80	%
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	—		—		215		1.24		1,358		2.22		6,595		2.80		8,168		2.66
Privately issued	—		—		—		—		—		—		887		3.45		887		3.45
Privately issued - commercial mortgage-backed securities	—		—		25		3.74		44		3.19		1,110		3.51		1,179		3.51
Collateralized loan obligations	—		—		1		4.16		355		3.43		1,136		3.46		1,492		3.45
Other	1		3.54		3		7.48		—		—		—		—		4		7.06
Asset Liability Management securities	1		3.54		1,584		1.54		3,989		2.20		9,728		3.01		15,302		2.65
Other debt securities:
Direct bank purchase bonds	26		2.26		419		3.26		618		3.29		127		4.00		1,190		3.33
Other	3		8.34		166		3.93		—		—		19		4.85		188		4.09
Total securities available for sale	$	30	2.90	%	$	2,169	2.06	%	$	4,607	2.34	%	$	9,874	3.03	%	$	16,680	2.71	%

Securities Held to Maturity

	December 31, 2018
	Maturities
	One Year or Less				Over One Year Through Five Years				Over Five Years Through Ten Years				Over Ten Years				Total Amortized Cost
(Dollars in millions)	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
U.S. Treasury	$	519	1.97	%	$	9	8.62	%	$	—	—	%	$	—	—	%	$	528	2.09	%
U.S. government-sponsored agencies	—		—		—		—		722		3.61		—		—		722		3.61
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	—		—		—		—		1,018		2.33		7,284		2.62		8,302		2.59
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	46		1.65		814		2.19		—		—		626		2.04		1,486		2.11
Total securities held to maturity	$	565	1.95	%	$	823	2.26	%	$	1,740	2.86	%	$	7,910	2.58	%	$	11,038	2.57	%

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Loans Held for Investment

The following table shows loans held for investment outstanding by loan type at the end of each period presented.

	December 31,
(Dollars in millions)	2018		2017		2016		2015		2014
Loans held for investment:
Commercial and industrial	$	24,919	$	23,281	$	25,379	$	30,257	$	28,114
Commercial mortgage	15,354		14,320		14,625		14,030		14,235
Construction	1,613		1,775		2,283		2,297		1,808
Lease financing	1,249		1,533		1,819		1,911		2,027
Total commercial portfolio	43,135		40,909		44,106		48,495		46,184
Residential mortgage	38,439		35,643		29,922		27,459		29,128
Home equity and other consumer loans	4,933		3,462		3,523		3,303		3,190
Total consumer portfolio	43,372		39,105		33,445		30,762		32,318
Total loans held for investment	$	86,507	$	80,014	$	77,551	$	79,257	$	78,502

Loans held for investment increased from December 31, 2017 to December 31, 2018 due to growth in the residential mortgage portfolio.

Loan Maturities

The following table presents our commercial and industrial loans and construction loans held for investment by contractual maturity.

	December 31, 2018
(Dollars in millions)	One Year or Less		Over One Year Through Five Years		Over Five Years		Total
Selected loan maturities:
Commercial and industrial	$	4,747	$	17,089	$	3,083	$	24,919
Construction	887		719		7		1,613
Total	$	5,634	$	17,808	$	3,090	$	26,532
Total fixed rate loans due after one year							$	699
Total variable rate loans due after one year							20,199
Total due after one year							$	20,898

Cross-Border Outstandings

Our cross-border outstandings reflect certain economic and political risks that differ from or are greater than those reflected in domestic outstandings. These risks include, but are not limited to, exchange rate fluctuations and restrictions on the transfer of funds. Our total cross-border outstandings for Japan exceeded one percent of total assets at December 31, 2018, December 31, 2017 and December 31, 2016 and were $3.0 billion, $4.4 billion and $3.1 billion, respectively. Our total cross-border outstandings for Cayman Islands exceeded one percent of total assets at December 31, 2018 and were $2.4 billion. These cross-border outstandings are based on category and legal residence of ultimate risk and are largely comprised of securities financing arrangements and commercial loans.

54

Deposits

The table below presents our deposits as of December 31, 2018 and 2017.

	December 31, 2018		December 31, 2017		Increase (Decrease)
(Dollars in millions)					Amount			Percent
Interest checking	$	3,598	$	5,209	$	(1,611	)	(31	)%
Money market	34,373		33,245		1,128			3
Total interest bearing transaction and money market accounts	37,971		38,454		(483		)	(1	)
Savings	9,515		8,426		1,089			13
Time	11,739		5,305		6,434			121
Total interest bearing deposits	59,225		52,185		7,040			13
Noninterest bearing deposits	31,754		32,602		(848		)	(3	)
Total deposits	$	90,979	$	84,787	$	6,192		7	%

Total deposits increased$6.2 billion from December 31, 2017 substantially due to an increase in time deposits. The increase in time deposits was primarily related to Consumer Banking and PurePoint Financial, the direct banking division of the Bank.

The following table presents domestic time deposits of $100,000 and over by maturity.

(Dollars in millions)	December 31, 2018
Three months or less	$	1,768
Over three months through six months	678
Over six months through twelve months	1,658
Over twelve months	3,091
Total domestic time deposits of $100,000 and over	$	7,195

We offer CDs and other time deposits of $100,000 and over at market rates of interest. A large portion of these deposits are held by customers, both public and private.

Securities Financing Arrangements

The Company enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, and securities borrowing and lending transactions to facilitate customer match-book activity, cover short positions and to fund the Company's trading inventory. These balances are almost entirely attributable to MUSA. See Note 8 to our Consolidated Financial Statements in this Form 10-K for more information.

Securities borrowed or purchased under resale agreements were $22.4 billion and $20.9 billion at December 31, 2018 and December 31, 2017, respectively. The following table provides certain information about securities loaned or sold under repurchase agreements.

(Dollars in millions)	December 31, 2018			December 31, 2017
Balance at period end	$	27,285		$	26,437
Weighted average interest rate at period end	2.79		%	1.59		%
Maximum outstanding at any month end	$	27,884		$	28,474
Average balance during the year	$	26,906		$	26,291
Weighted average interest rate during the year	2.73		%	1.34		%

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Capital Management

Capital Adequacy and Capital Management

A strong capital position is essential to the Company's business strategy. The Company has established a Capital Management Policy, which sets forth, among other things, the principles and guidelines used for capital planning, issuance, usage and distributions, including internal capital goals; the quantitative and qualitative guidelines for dividends and stock repurchases; and the strategies for addressing potential capital shortfalls. The Capital Management Policy sets forth the enterprise-wide capital objectives, which include requirements to maintain capital adequate for the Company's material risks, to maintain access to funding to meet obligations to creditors and counterparties, to provide for effective support of organic growth, and to consider the quality and efficiency of various capital forms while maintaining a strong capital position. Capital is generated principally from the retention of earnings and from capital contributions received from MUFG Bank, Ltd. and MUFG.

Regulatory Capital

Both MUAH and MUB are subject to various capital adequacy regulations issued by the U.S. federal banking agencies, including requirements to file an annual capital plan and to maintain minimum regulatory capital ratios. As of December 31, 2018, management believes the capital ratios of MUAH and MUB met all regulatory requirements of "well-capitalized" institutions.

The Company timely filed its annual capital plan under the Federal Reserve's CCAR program in April 2018. CCAR evaluates capital planning processes and assesses capital adequacy levels under various scenarios to determine if BHCs would have sufficient capital to continue operations throughout times of economic and financial market stress. The Company's 2018 CCAR submission encompassed a range of expected and stressed economic and financial market scenarios, and included an assessment of expected sources and uses of capital over a prescribed planning horizon, a description of all capital actions within that time frame, and a discussion of any proposed business plan changes that are likely to have a material impact on capital adequacy. In June 2018, the Company received notice that the Federal Reserve did not object to the Company's capital plan. In accordance with regulatory requirements, the Company subsequently disclosed the results of its annual company-run Dodd-Frank Act stress test. In October 2018, the Company submitted its mid-cycle Dodd-Frank Act Stress Test results to the Federal Reserve and subsequently disclosed the results of those stress tests. MUAH remains subject to regulatory requirements to develop and maintain a capital plan which must be reviewed and approved by its Board of Directors (or designated subcommittee thereof); however, MUAH was granted regulatory administrative relief in 2019 and is not required to submit its capital plan to the Federal Reserve or participate in the 2019 Comprehensive Capital Analysis and Review (CCAR 2019) process. 

MUAH and MUB are required to maintain minimum capital ratios under the standardized approach in accordance with the BCBS capital guidelines for U.S. banking organizations issued by the U.S. federal banking agencies (U.S. Basel III Rules). Among other requirements, the U.S. Basel III Rules require a minimum Common Equity Tier 1 capital ratio of 4.5% and a capital conservation buffer of 2.5% (for a total minimum Common Equity Tier 1 capital ratio of 7.0%); and a Tier 1 leverage ratio of 4%.

As required under U.S. Basel III Rules, the 2.5% capital conservation buffer is being implemented on a phased-in basis in equal increments of 0.625% per year over a four-year period that commenced on January 1, 2016. MUAH and MUB would satisfy the minimum capital requirements including the capital conservation buffer on a fully phased-in basis if those requirements were effective as of December 31, 2018.

56

The following tables summarize the calculation of MUAH’s risk-based capital ratios in accordance with the U.S. Basel III rules as of December 31, 2018 and December 31, 2017.

MUFG Americas Holdings Corporation

	U.S. Basel III
(Dollars in millions)	December 31, 2018		December 31, 2017
Capital Components
Common Equity Tier 1 capital	$	14,256	$	15,708
Tier 1 capital	$	14,256	$	15,708
Tier 2 capital	648		1,398
Total risk-based capital	$	14,904	$	17,106
Risk-weighted assets	$	102,088	$	96,330
Average total assets for leverage capital purposes	$	162,550	$	156,126

	U.S. Basel III								Minimum Capital Requirement with Capital Conservation Buffer(1)
(Dollars in millions)	December 31, 2018				December 31, 2017				December 31, 2018
Capital Ratios	Amount		Ratio		Amount		Ratio		Amount			Ratio
Common Equity Tier 1 capital (to risk-weighted assets)	$	14,256	13.96	%	$	15,708	16.31	%	≥	$	6,508	6.375	%
Tier 1 capital (to risk-weighted assets)	14,256		13.96		15,708		16.31		≥	8,039		7.875
Total capital (to risk-weighted assets)	14,904		14.60		17,106		17.76		≥	10,081		9.875
Tier 1 leverage(2)	14,256		8.77		15,708		10.06		≥	6,502		4.000

(1) Beginning January 1, 2018, the minimum capital requirement includes a capital conservation buffer of 1.875%.

(2) Tier 1 capital divided by quarterly average assets (excluding certain disallowed assets, primarily goodwill and other intangibles).

During the fourth quarter of 2018, the Company repaid $300 million of subordinated debt due to MUFG Bank, Ltd. contributing to the decline in Tier 2 capital. The decrease in the Company's risk-based capital and leverage ratios was driven primarily by a $2.5 billion share repurchase from its parent companies in December 2018, partially offset by net income earned during the year.

57

The following tables summarize the calculation of MUB’s risk-based capital ratios in accordance with the transition guidelines set forth in the U.S. Basel III rules as of December 31, 2018 and December 31, 2017.

MUFG Union Bank, N.A.

	U.S. Basel III
(Dollars in millions)	December 31, 2018		December 31, 2017
Capital Components
Common Equity Tier 1 capital	$	13,316	$	14,028
Tier 1 capital	$	13,316	$	14,028
Tier 2 capital	589		1,307
Total risk-based capital	$	13,905	$	15,335
Risk-weighted assets	$	92,170	$	86,730
Average total assets for leverage capital purposes	$	125,461	$	119,052

	U.S. Basel III								Minimum Capital Requirement with Capital Conservation Buffer (1)					To Be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in millions)	December 31, 2018				December 31, 2017				December 31, 2018
Capital Ratios	Amount		Ratio		Amount		Ratio		Amount			Ratio		Amount			Ratio
Common Equity Tier 1 capital (to risk-weighted assets)	$	13,316	14.45	%	$	14,028	16.17	%	≥	$	5,876	6.375	%	≥	$	5,991	6.5	%
Tier 1 capital (to risk-weighted assets)	13,316		14.45		14,028		16.17		≥	7,258		7.875		≥	7,374		8.0
Total capital (to risk-weighted assets)	13,905		15.09		15,335		17.68		≥	9,102		9.875		≥	9,217		10.0
Tier 1 leverage(2)	13,316		10.61		14,028		11.78		≥	5,018		4.000		≥	6,273		5.0

(1) Beginning January 1, 2018, the minimum capital requirement includes a capital conservation buffer of 1.875%.

(2) Tier 1 capital divided by quarterly average assets (excluding certain disallowed assets, primarily goodwill and other intangibles).

During the second quarter of 2018, MUB repaid $750 million of subordinated debt due to MUFG Bank, Ltd. resulting in the decline in Tier 2 capital. In December 2018, MUB paid a $1.7 billion dividend to MUAH resulting in a decrease in MUB's risk-based capital and leverage ratios.

In addition to capital ratios determined in accordance with regulatory requirements, we consider the tangible common equity ratio when evaluating capital utilization and adequacy. This capital ratio is monitored by management, and presented below, to further facilitate the understanding of our capital structure and for use in assessing and comparing the quality and composition of the Company's capital structure to other financial institutions. This ratio is not codified within GAAP or federal banking regulations in effect at December 31, 2018. Therefore, it is considered a non-GAAP financial measure. Our tangible common equity ratio calculation method may differ from those used by other financial services companies.

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The following table summarizes the calculation of the Company's tangible common equity ratio as of December 31, 2018 and 2017:

	December 31, 2018			December 31, 2017
(Dollars in millions)
Total MUAH stockholders' equity	$	16,508		$	18,255
Goodwill	(3,301		)	(3,301		)
Intangible assets, except mortgage servicing rights	(285		)	(313		)
Deferred tax liabilities related to goodwill and intangible assets	57			55
Tangible common equity (a)	$	12,979		$	14,696
Total assets	$	168,100		$	154,550
Goodwill	(3,301		)	(3,301		)
Intangible assets, except mortgage servicing rights	(285		)	(313		)
Deferred tax liabilities related to goodwill and intangible assets	57			55
Tangible assets (b)	$	164,571		$	150,991
Tangible common equity ratio (a)/(b)	7.89		%	9.73		%

The Company’s fully phased-in Common Equity Tier 1 capital ratio calculated under the U.S. Basel III standardized approach at December 31, 2018 and December 31, 2017 was estimated to be 13.96% and 16.27%, respectively. Management believes that the Company would satisfy all capital adequacy requirements under the U.S. Basel III rules on a fully phased-in basis if those requirements had been effective at both December 31, 2018 and December 31, 2017.

The following table summarizes the calculation of the Company's fully phased-in Common Equity Tier 1 capital to total risk-weighted assets ratio under the U.S. Basel III standardized approach as of December 31, 2018 and 2017:

Common Equity Tier 1 capital under U.S. Basel III (standardized approach; fully phased-in)
	December 31, 2018			December 31, 2017
(Dollars in millions)	(Estimated)			(Estimated)
Common Equity Tier 1 capital under U.S. Basel III (transitional)	$	14,256		$	15,708
Other	—			(51		)
Common Equity Tier 1 capital estimated under U.S. Basel III (standardized approach; fully phased-in) (a)	$	14,256		$	15,657
Risk-weighted assets, estimated under U.S. Basel III (standardized; transitional)	$	102,088		$	96,330
Adjustments	—			(107		)
Total risk-weighted assets, estimated under U.S. Basel III (standardized approach; fully phased-in) (b)	$	102,088		$	96,223
Common Equity Tier 1 capital to total risk-weighted assets estimated under U.S. Basel III (standardized approach; fully phased-in)(1) (a)/(b)	13.96		%	16.27		%

(1) Common Equity Tier 1 risk-based capital (standardized, fully phased-in basis) is a non-GAAP financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies as if the transition provisions of the U.S. Basel III rules were fully phased-in for the period in which the ratio is disclosed.  Management reviews this ratio, which excludes components of accumulated other comprehensive loss, along with other measures of capital as part of its financial analyses and has included this non-GAAP information, and the corresponding reconciliation from Common Equity Tier 1 capital (calculated according to the transition provisions under U.S. Basel III rules) because of current interest in such information by market participants.

For additional information regarding our regulatory capital requirements, see "Supervision and Regulation-Regulatory Capital and Liquidity Standards" in Part I, Item 1. of this Form 10-K.

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Risk Management

All financial institutions must manage and control a variety of business risks that can significantly affect their financial condition and performance. Some of the key risks that the Company must manage include credit, market, liquidity, operational, interest rate, compliance, reputation and strategic risks. The Board, directly or through its appropriate committees, provides oversight and approves our various risk management policies. Management has established a risk management structure that is designed to provide a comprehensive approach for identifying, measuring, monitoring, controlling and reporting on the significant risks faced by the Company. A summary of the Company’s risk management structure and framework is set forth below.

Risk Management Structure

Board Committees

Risk Committee

The Risk Committee of the Board of Directors is broadly responsible for oversight of (1) risk management, (2) compliance with legal and regulatory requirements, and (3) the credit, operational and other material risks to which the Company may be exposed. The Risk Committee is responsible for risk management oversight in the key areas outlined below, and has the authority to direct corrective and remedial actions.

The Risk Committee generally oversees the Company’s risk management and the enterprise level risk appetite frameworks and establishes guidelines for reporting and escalating risk issues.

The Risk Committee provides oversight of management’s control over the following risk categories: credit, market, interest rate, liquidity, operational (including modeling and information), compliance, reputation and strategic risks. The Risk Committee also reviews and assesses risks from the viewpoint of protecting the overall safety and soundness of the Company.

Human Capital Committee

The Human Capital Committee oversees the Company’s compensation and risk review processes in line with competitive market practice and regulatory guidance associated with responsible risk management practices. The Human Capital Committee reviews the CRO’s risk assessment of the Company’s annual incentive compensation plan to assure that it is consistent with the Company’s stated risk appetite and regulatory guidance.

Audit & Finance Committee

The Audit & Finance Committee of the Board of Directors is responsible for oversight of liquidity and interest rate risk. The Audit & Finance Committee also oversees IAA and ACR, both of which provide the Audit & Finance Committee with independent assessments of risk.

Management Committees

The ECA provides direction on major corporate policies including strategic, financial, risk management, infrastructure, regulatory and governance policies. The ECA has established and delegated authority to the ARC whose responsibilities include reviewing risk management policies and overseeing the risk management framework and all risks on an integrated basis. The ARC oversees areas of risk with and through its sub-committees, including: Credit Risk Committee; Market Risk Management Committee; Liquidity Risk and Interest Rate Risk Committee; Compliance Risk Committee; Information Risk Committee; Reputation Risk Committee; Operational Risk Management Committee; and Third Party Risk Management Committee.

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Americas Risk Management Group

Appointed by the Board of Directors, the Company's CRO is responsible for managing the ARM function which consists of individuals with specialized knowledge to identify, measure, monitor, control and report on the significant risks faced by MUAH and its subsidiaries.

ARM is responsible for maintaining all risk-related policies and procedures, identifying Company-level risks, monitoring emerging risks, and aggregating reporting for review by management, management committees and the Board Risk Committee. ARM is expected to support management's execution of the strategic objectives and overarching goal of maintaining the safety and soundness of the Company and its compliance with U.S. laws, regulations and supervisory guidance.

The following paragraphs discuss the Company’s risk management framework relating to credit, market, interest rate, liquidity, and operational risks.

Credit Risk Management

One of our principal business activities is the extension of credit to individuals and businesses. Our policies and the applicable laws and regulations governing the extension of credit require risk analysis, including an extensive evaluation of the purpose of the request and the borrower's ability and willingness to repay as scheduled. Our process also includes ongoing portfolio and credit management through portfolio diversification, lending limit constraints, credit review and approval policies, and extensive internal monitoring.

Credit risk is defined as the risk to earnings or capital arising from an obligor's failure to meet the financial terms of any contract with the Company in accordance with agreed upon terms. We manage and control credit risk through diversification of the portfolio, including by type of loan, industry concentration, dollar limits on multiple loans to the same borrower, geographic distribution and type of borrower.

In analyzing our loan portfolios, we apply specific monitoring policies and procedures that are tailored according to the risk profile and other characteristics of the loans within the portfolios. Our residential, consumer and certain small commercial loans are homogeneous in nature and are, in general, individually insignificant in terms of size or potential risk of loss. Accordingly, we review these portfolios by analyzing their performance as a pool of loans. In contrast, our monitoring process for larger commercial and industrial, construction, commercial mortgage, lease, and foreign loan portfolios includes a periodic review of individual loans. Loans that are performing, but have shown some signs of weakness, are subjected to more stringent reporting and oversight.

We have a Credit Risk Committee, chaired by the head of the Credit Strategies Group and composed of the Chief Credit Officers responsible for our loan portfolio segments and other executive and senior officers, that establishes our overall risk appetite, portfolio concentration limits, and credit risk rating methodology. This committee is supported by the Credit Policy Sub-Committee, composed of Group Senior Credit Officers that have responsibility for establishing credit policy, credit underwriting criteria, and other risk management controls. Credit Administration, under the direction of the Chief Credit Officers and their designated Group Senior Credit Officers, are responsible for administering the credit approval process and related policies. Policies require an evaluation of credit requests and ongoing reviews of existing credits in order to verify that we know with whom we are doing business, that the purpose of the credit is acceptable, and that the borrower is able and willing to repay as agreed. Furthermore, policies require prompt identification and quantification of asset quality deterioration or potential loss.

ACR, which reports to the Audit & Finance Committee of the Board of Directors, provides both the Board and executive management with an independent assessment of the effectiveness of the credit management process. ACR routinely reviews the accuracy and timeliness of risk ratings assigned to individual borrowers with the goal of ensuring that the business unit credit risk identification process is functioning properly. This group also assesses compliance with credit policies and underwriting standards at the business unit level. Additionally, ACR reviews changes to credit policies, practices and underwriting guidelines. ACR summarizes its significant findings on a regular basis and provides recommendations for corrective action when credit management or control deficiencies are identified.

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Allowance for Credit Losses

Allowance Policy and Methodology

We maintain an allowance for credit losses (defined as both the allowance for loan losses and the allowance for losses on unfunded credit commitments) to absorb losses inherent in the loan portfolio as well as for unfunded credit commitments. The allowance for credit losses is based on our quarterly assessments of the probable estimated losses inherent in the loan portfolio and unfunded credit commitments. Our methodology for measuring the appropriate level of the allowance relies on several key elements, which include the allowance for loans collectively evaluated for impairment, the allowance for loans individually evaluated for impairment, the unallocated allowance and the allowance for losses on unfunded credit commitments. We develop and document our allowance methodology at the portfolio segment level. Our loan portfolio consists of a commercial portfolio segment and a consumer portfolio segment. Understanding our policies on the allowance for credit losses is fundamental to understanding our consolidated financial condition and consolidated results of operations.

For the commercial portfolio segment, the allowance for loans collectively evaluated for impairment is calculated by utilizing a dual factor internal risk rating system that encompasses both the probability that a credit facility may ultimately default (i.e. probability of default) and an estimate of the severity of the loss that would be realized upon such default (i.e. the loss-given default) and applying these risk ratings to outstanding loans and most unused commitments. The probability of default and loss-given default may be adjusted for qualitative or environmental factors that, in management's judgment, are likely to cause estimated credit losses associated with the existing portfolio to differ from the historical probability of default and loss-given default. While our assessments of these factors are reviewed quarterly with our senior credit officers and executive management, the actual impact from any of these conditions may differ significantly from the estimates used.

For the consumer portfolio segment, loans are generally pooled by product type with similar risk characteristics. We estimate the allowance for loans collectively evaluated for impairment based on forecasted losses, which represent our best estimate of inherent loss.

In addition to the methodologies described above, the allowance for loans collectively evaluated for impairment also includes attributions for certain sectors within the commercial and consumer portfolio segments to account for probable losses that are currently not reflected in the risk ratings or forecasted losses. Segment attributions are calculated based on migration scenarios for the commercial portfolio and specific attributes applicable to the consumer portfolio. Segment considerations are revised periodically as portfolio and credit environment conditions change.

A specific allowance is established for loans that we individually evaluate and determine to be impaired. We individually evaluate for impairment larger nonaccruing commercial and industrial, construction, and commercial mortgage loans. Residential mortgage and consumer loans are not individually evaluated for impairment unless they represent TDRs. The amount of the reserve is based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if repayment of the loan is expected to be provided solely by the underlying collateral and there are no other reliable sources of repayment.

The unallocated allowance is composed of attributions that are intended to capture probable losses from adverse changes in credit migration and other inherent losses that are not currently reflected in the allowance for loan losses that are ascribed to our portfolio segments. These attributions may be ascribed to portfolio segments in future periods when the loss attributions become more evident.

For additional information on the allowance for credit losses, see the "Critical Accounting Estimates—Allowance for Credit Losses" section within "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7. and Note 1 to our Consolidated Financial Statements included in this Form 10-K.

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Allowance and Related Provision for Credit Losses

The allowance for loan losses was $474 million at December 31, 2018 compared with $476 million at December 31, 2017. Our ratio of allowance for loan losses to total loans held for investment was 0.55% as of December 31, 2018 and 0.59% as of December 31, 2017. The provision for loan losses during the year ended December 31, 2018 was $84 million primarily due to the impact of specific reserves for certain impaired loans. The unallocated allowance for loan losses totaled $5 million at December 31, 2018, compared with $30 million at December 31, 2017. This decrease resulted from refinements to the methodology used to measure credit risk ascribed to the commercial loan portfolio segment, which previously had been estimated within the unallocated allowance for loan losses. Net loans charged off to average total loans held for investment decreased to 0.1% for the year ended December 31, 2018 compared with 0.13% for the year ended December 31, 2017.

Nonaccrual loans were $421 million at December 31, 2018 compared with $465 million at December 31, 2017. The decrease in nonaccrual loans outstanding during 2018 was primarily driven by paydowns, payoffs, charge-offs and loans returned to accrual, largely offset by new nonaccrual loans. Our ratio of nonaccrual loans to total loans held for investment decreased to 0.49% at December 31, 2018 from 0.58% at December 31, 2017. Our ratio of allowance for loan losses to nonaccrual loans increased to 112.5% at December 31, 2018 from 102.37% at December 31, 2017. Criticized credits in the commercial segment were $1.3 billion at December 31, 2018 and $1.6 billion at December 31, 2017. Criticized credits are those that have regulatory risk ratings of special mention, substandard or doubtful; classified credits are those that have regulatory risk ratings of substandard or doubtful. Special mention credits are potentially weak, as the borrower has begun to exhibit deteriorating trends, which, if not corrected, may jeopardize repayment of the loan and result in further downgrade. Substandard credits have well-defined weaknesses, which, if not corrected, could jeopardize the full satisfaction of the debt. A credit classified as doubtful has critical weaknesses that make full collection improbable on the basis of currently existing facts and conditions.

The following table reflects the related allowance for loan losses allocated to a loan category at year- end for the indicated years and the percentage of the allocation to the year-end loan balance of that loan category, as set forth in the "Loans Held for Investment" table.

	December 31,
(Dollars in millions)	2018				2017				2016				2015				2014
Commercial and industrial	$	275	1.10	%	$	265	1.14	%	$	440	1.72	%	$	542	1.79	%	$	354	1.25	%
Commercial mortgage	56		0.37		67		0.47		83		0.57		89		0.64		99		0.71
Construction	10		0.63		11		0.61		15		0.66		14		0.59		9		0.50
Lease financing	18		1.46		17		1.15		18		0.99		9		0.48		9		0.45
Total commercial portfolio	359		0.83		360		0.88		556		1.25		654		1.35		471		1.02
Residential	33		0.09		32		0.09		36		0.12		31		0.11		38		0.13
Home equity and other consumer loans	77		1.56		54		1.55		47		1.35		18		0.56		11		0.35
Total consumer portfolio	110		0.25		86		0.22		83		0.25		49		0.16		49		0.15
Total allocated allowance	469		0.54		446		0.56		639		0.82		703		0.89		520		0.66
Unallocated	5				30				—				20				20
Total allowance for loan losses	$	474	0.55	%	$	476	0.59	%	$	639	0.82	%	$	723	0.91	%	$	540	0.69	%

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Change in the Allowance for Loan Losses

The following table sets forth a reconciliation of changes in our allowance for loan losses.

	December 31,
(Dollars in millions)	2018			2017			2016			2015			2014
Allowance for loan losses, beginning of period	$	476		$	639		$	723		$	540		$	569
(Reversal of) provision for loan losses	84			(65		)	158			213			(14		)
Other	—			2			2			(2		)	(3		)
Loans charged-off:
Commercial and industrial	(43		)	(107		)	(146		)	(27		)	(35		)
Commercial and industrial - transfer to held for sale	(35		)	(8		)	(113		)	—			—
Commercial mortgage	(1		)	(1		)	—			(5		)	(4		)
Construction	—			—			—			(7		)	—
Total commercial portfolio	(79		)	(116		)	(259		)	(39		)	(39		)
Residential mortgage	2			4			3			(2		)	(3		)
Home equity and other consumer loans	(43		)	(43		)	(15		)	(7		)	(8		)
Total consumer portfolio	(41		)	(39		)	(12		)	(9		)	(11		)
Total loans charged-off	(120		)	(155		)	(271		)	(48		)	(50		)
Recoveries of loans previously charged-off:
Commercial and industrial	26			49			19			17			28
Commercial mortgage	1			1			5			1			3
Construction	—			—			—			—			3
Total commercial portfolio	27			50			24			18			34
Home equity and other consumer loans	7			5			3			2			4
Total consumer portfolio	7			5			3			2			4
Total recoveries of loans previously charged-off	34			55			27			20			38
Net loans recovered (charged-off)	(86		)	(100		)	(244		)	(28		)	(12		)
Ending balance of allowance for loan losses	474			476			639			723			540
Allowance for losses on unfunded credit commitments	139			123			162			165			152
Total allowance for credit losses	$	613		$	599		$	801		$	888		$	692

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Nonperforming Assets

Nonperforming assets consist of nonaccrual loans and OREO. Nonaccrual loans are those for which management has discontinued accrual of interest because there exists significant uncertainty as to the full and timely collection of either principal or interest, or such loans have become contractually past due 90 days with respect to principal or interest. OREO includes property where the Bank acquired title through foreclosure or “deed in lieu” of foreclosure. For a more detailed discussion of the accounting for nonaccrual loans, see Note 1 to our Consolidated Financial Statements included in this Form 10-K.

The following table sets forth the components of nonperforming assets and TDRs:

	December 31,
(Dollars in millions)	2018		2017		2016		2015		2014
Nonaccrual loans:
Commercial and industrial	$	269	$	319	$	458	$	284	$	56
Commercial mortgage	12		20		31		37		40
Total commercial portfolio	281		339		489		321		96
Residential mortgage	121		104		171		190		231
Home equity and other consumer loans	19		22		29		41		48
Total consumer portfolio	140		126		200		231		279
Total nonaccrual loans	421		465		689		552		375
OREO	1		1		3		21		36
Total nonperforming assets	$	422	$	466	$	692	$	573	$	411
Troubled debt restructurings:
Accruing	$	299	$	348	$	215	$	413	$	283
Nonaccruing (included in total nonaccrual loans above)	136		229		384		409		184
Total troubled debt restructurings	$	435	$	577	$	599	$	822	$	467

Total nonperforming assets as of December 31, 2018 were $422 million, or 0.25% of total assets, compared with $466 million, or 0.30% of total assets, at December 31, 2017. The decrease in nonperforming assets of $44 million from December 31, 2017 to December 31, 2018 was driven primarily by paydowns, payoffs, charge-offs and loans returned to accrual, largely offset by new nonaccrual loans.

Troubled Debt Restructurings

TDRs are loans where we have granted a concession to a borrower as a result of the borrower experiencing financial difficulty and, consequently, we receive less than the current market-based compensation for loans with similar risk characteristics. Such loans are reviewed for impairment either individually or in pools with similar risk characteristics. Our loss mitigation strategies are designed to minimize economic loss and, at times, may result in changes to the original terms, including interest rate changes, maturity extensions, forbearance, principal paydowns, covenant waivers or changes, payment deferrals, or some combination thereof. We evaluate whether these changes to the terms and conditions of our loans meet the TDR criteria after considering the specific situation of the borrower and all relevant facts and circumstances related to the modification. For our consumer portfolio segment, TDRs are typically initially placed on nonaccrual and a minimum of six consecutive months of sustained performance is required before returning to accrual status. For our commercial portfolio segment, we generally determine accrual status for TDRs by performing an individual assessment of each loan, which may include, among other factors, borrower performance under previous loan terms.

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The following table provides a summary of TDRs by loan type, including nonaccrual loans and loans that have been returned to accrual status, as of December 31, 2018 and 2017. See Note 3 to our Consolidated Financial Statements in this Form 10-K for more information.

					As a percentage of Ending Loan Balances
	December 31,				December 31,
(Dollars in millions)	2018		2017		2018		2017
Commercial and industrial	$	109	$	202	0.42	%	0.87	%
Commercial mortgage	46		7		0.30		0.05
Construction	63		128		3.91		7.21
Total commercial portfolio	218		337		0.51		0.82
Residential mortgage	196		215		0.51		0.60
Home equity and other consumer loans	21		25		0.43		0.72
Total consumer portfolio	217		240		0.50		0.61
Total restructured loans	$	435	$	577	0.50	%	0.72	%

Loans 90 Days or More Past Due and Still Accruing

Loans held for investment 90 days or more past due and still accruing totaled $23 million and $12 million at December 31, 2018 and 2017, respectively.

Concentration of Risk

Commercial and industrial loans are extended principally to corporations, middle-market businesses and small businesses and are originated primarily through our commercial banking offices. Our commercial and industrial portfolio is comprised primarily of the following industry sectors: finance and insurance, manufacturing, power and utilities, real estate and leasing, and wholesale trade. No individual industry sector exceeded 10% of our total loans held for investment at either December 31, 2018 or December 31, 2017.

Construction and commercial mortgage loans are secured by deeds of trust or mortgages. Construction loans are extended primarily to commercial property developers and to residential builders. At December 31, 2018, 54% of the Company’s construction loan portfolio was concentrated in California, 24% to borrowers in New York and 7% to borrowers in Texas. The commercial mortgage loan portfolio consists of loans secured by commercial income properties. At December 31, 2018, 65% of the Company’s commercial mortgage loans were made to borrowers located in California, 6% to borrowers in Washington, and 5% to borrowers in New York.

Residential mortgage loans are originated and secured by one-to-four family residential properties, through our multi-channel network, including branches, private bankers, mortgage brokers, telephone services, and web-based and mobile internet banking applications. We do not have a program for originating or purchasing subprime loan products and we hold the majority of the loans we originate.

At December 31, 2018, payment terms on 36% of our residential mortgage loans required a monthly payment that covers the full amount of interest due, but did not reduce the principal balance. At origination these interest-only loans had strong credit profiles and had weighted average LTV ratios of approximately 65%. The remainder of the portfolio consisted of regularly amortizing loans.

Home equity loans are originated principally through our branch network and Private Banking offices. Approximately 26% and 29% of these home equity loans and lines were supported by first liens on residential properties at both December 31, 2018 and December 31, 2017, respectively. To manage risk associated with lending commitments, we review all equity-secured lines annually for creditworthiness and may reduce or freeze limits, to the extent permitted by laws and regulations. Other consumer loans consist primarily of unsecured loans originated by marketplace lenders. The Company manages risk associated with these loans by establishing lending criteria similar to other consumer loans originated by the Company. See Note 3 to our Consolidated Financial Statements included in this Form 10-K for additional information on refreshed FICO scores and

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refreshed LTV ratios for our residential mortgage and home equity and other consumer loans at December 31, 2018 and December 31, 2017.

Interest Foregone

If interest that was due on the recorded balances of all nonaccrual and restructured loans (including loans that were, but are no longer, on nonaccrual) had been accrued under their original terms, we would have recognized an additional $37 million of interest income in 2018. For loans that were on nonaccrual status during 2018 and accounted for as cash basis nonaccrual loans, we recognized interest income of $24 million in 2018.

Market Risk Management

The objective of market risk management is to mitigate any adverse impact on earnings and capital arising from changes in interest rates and other market variables. Market risk management supports our broad objective of enhancing shareholder value, which encompasses the achievement of stable earnings growth while promoting capital stability over time. Market risk is defined as the risk of loss arising from an adverse change in the market value of financial instruments caused by fluctuations in market prices or rates. The primary market risk to which we are exposed is interest rate risk. Interest rate risk arises from instruments, positions and transactions entered into for purposes other than trading and for trading. Other than trading interest rate risk arises from loans, securities, deposits, borrowings, securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowing and lending transactions, and derivative instruments. Trading interest rate risk primarily arises from trading activities at MUAH's broker-dealer subsidiary, MUSA, and derivative contracts MUB enters into as a financial intermediary for customers.

Market Risk Governance

The MRM Policy, adopted by the Risk Committee of the Board of Directors, governs the Company’s management and oversight of market risk. The MRM Policy establishes the Company’s risk tolerance by outlining standards for measuring market risk, creates Board-level limits for specific market risks, and establishes MRMC responsibilities and oversight of market risk activities.

ARC, composed of selected senior officers of the Company, supports the MRM Policy setting process by striving to ensure that the Company has an effective process to identify, monitor, measure and manage market risk as required by the MRM Policy. ARC provides oversight of the risk management framework and reviews and discusses market risk management reports and trends. MRMC approves the trading policies that govern the Company’s activities. ALCO is responsible for the approval of specific interest rate risk management programs, including those related to interest rate hedging, investment securities and wholesale funding of MUAH, along with approval of capital policies.

The Treasurer is primarily responsible for the implementation of interest rate risk management strategies approved by ALCO and for operational management of market risk, as defined above, through funding, investment and derivative hedging activities. The MRM unit is responsible for monitoring market risk and functions independently of all operating and management units and subsidiaries.

The Company has separate and distinct methods for managing the market risk associated with our asset and liability management activities and our trading activities, as described below.

Interest Rate Risk Management

ALCO monitors interest rate risk from ALM activities on a monthly basis through a variety of modeling techniques that are used to quantify the sensitivity of net interest income to changes in interest rates. Our net interest income sensitivity analysis typically involves a simulation in which we estimate the net interest income impact of gradual parallel shifts in the yield curve of up 200 basis points and down 100 basis points over a 12-month horizon using a forecasted balance sheet.

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Net Interest Income Sensitivity

The table below presents the estimated increase (decrease) in the Company's net interest income given a gradual parallel shift in the yield curve up 200 basis points and down 100 basis points over a 12-month horizon.

(Dollars in millions)	December 31, 2018			December 31, 2017
Effect on net interest income:
Increase 200 basis points	$	149.7		$	100.2
as a percentage of base case net interest income	4.59		%	3.21		%
Decrease 100 basis points	$	(102.4	)	$	(75.7	)
as a percentage of base case net interest income	(3.14		)%	(2.42		)%

An increase in rates increases net interest income. During 2018, the Company’s asset sensitive profile increased due to changes in balance sheet composition, changes in the ALM derivatives portfolio and forecasted balance sheet activity over the next twelve months. During the second quarter of 2018, the Company terminated receive fixed swap contracts used to hedge floating rate commercial loans given expectations of rising rates, which contributed to an increase in the Company's asset sensitivity.

MUSA's securities borrowed or purchased under resale agreements and securities loaned or sold under repurchase agreements are included in the Company's net interest income sensitivity analysis. However, due to the short-term nature of these interest-bearing assets and liabilities, the Company also monitors net interest income sensitivity excluding these balances. Excluding the impact of MUSA, the Company would have a slightly greater asset sensitive risk profile at December 31, 2018.

We believe that our simulation provides management with a comprehensive view of the sensitivity of net interest income to changes in interest rates over the measurement horizon. However, as with any financial model, the underlying assumptions are inherently uncertain and subject to refinement. In particular, two significant models used in interest rate risk measurement address residential mortgage prepayment speeds and non-maturity deposit rate and balance behaviors. The mortgage prepayment model is periodically calibrated to reflect changes in customer behavior. Model performance may be adversely affected by rapid changes in interest rates, home prices and the credit environment. The deposit model uses the Company’s historical deposit pricing to forecast future deposit pricing in its scenarios. Management’s response to future rate scenarios may deviate from historical responses and actual results may differ from those derived in the simulation analysis due to unexpected market events, unanticipated changes in customer behavior, market interest rates, product pricing, and investment, funding and hedging activities.

For additional information on the Company's ALM securities portfolio and derivative instruments used in our ALM hedging strategies, see the "Balance Sheet Analysis—Securities" section within "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7. and Note 2 and Note 12 to our Consolidated Financial Statements included in this Form 10-K.

Trading Activities

Trading activities consist primarily of activities at MUAH's broker-dealer subsidiary, MUSA, and derivative contracts MUB enters into as a financial intermediary for customers. MUSA transacts as principal and agent for a variety of securities and exchange traded derivatives. By acting as a financial intermediary, MUB is able to provide our customers with access to a range of products from the securities, foreign exchange and derivatives markets. We generally take offsetting positions to mitigate our exposure to market risk.

The Company monitors market risk from trading activities by utilizing a combination of position limits, VaR, and stop-loss limits, applied at an aggregated level and to various sub-components within those limits. Positions are controlled and reported both in notional and VaR terms. Our calculation of VaR estimates how high the loss in fair value might be, at a 99% confidence level, due to an adverse shift in market prices over a period of ten business days. VaR at the trading activity level is managed within the maximum limit of $38 million established by Board policy for total trading positions. The VaR model incorporates assumptions on key parameters, including holding period and historical volatility.

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The following table sets forth the average, high and low 10-day 99% confidence level VaR for our trading activities for the years ended December 31, 2018 and 2017:

	December 31, 2018									December 31, 2017
(Dollars in millions)	Average VaR			High VaR			Low VaR			Average VaR			High VaR			Low VaR
Interest rate	$	12.5		$	15.3		$	9.1		$	11.4		$	15.2		$	8.5
Debt securities	6.8			12.1			2.5			4.4			6.6			1.9
Equity securities	0.8			1.3			0.3			0.7			2.1			0.3
Foreign exchange	0.3			1.2			—			0.5			1.2			0.3
Commodity and other	—			—			—			—			0.1			—
Portfolio diversification	(9.7		)	(13.1		)	(5.5		)	(8.4		)	(12.5		)	(5.5		)
Total	$	10.7		$	16.8		$	6.4		$	8.6		$	12.7		$	5.5

Consistent with our business strategy of focusing on the sale of capital markets products to customers, we manage our trading risk exposures at relatively low levels. Our foreign exchange business continues to derive the majority of its revenue from customer-related transactions. For additional information on the Company's trading account assets and liabilities and trading derivatives, see Note 11 and Note 12 to our Consolidated Financial Statements included in this Form 10-K.

Liquidity Risk Management

Liquidity risk is the risk that an institution's financial condition or overall safety and soundness is adversely affected by an inability, or perceived inability, to meet its contractual, including contingent, obligations. The objective of liquidity risk management is to maintain a sufficient amount of liquidity and diversity of funding sources to allow an institution to meet obligations in both stable and adverse conditions.

The management of liquidity risk is governed by MUAH ALM and Liquidity Risk Management Policies. The MUAH ALM Policy is under the oversight of ALCO, which oversees first line liquidity risk management activities conducted by Treasury. Treasury formulates the funding, liquidity and contingency planning strategies for the Company, the Bank and MUSA, and is responsible for identifying, managing and reporting on liquidity risk. The Liquidity Risk Management Policies for the Company, the Bank and MUSA are under the oversight of the ARC and the Risk Committee of the Board. MRM conducts independent oversight and governance of liquidity risk management activities to establish sound policies and effective risk and independent monitoring controls. We are also subject to a Contingency Funding Plan framework that identifies actions to be taken to help ensure adequate liquidity if an event should occur that disrupts or adversely affects the normal funding activities of the Company, the Bank or MUSA.

Liquidity risk is managed using a total balance sheet perspective that analyzes all sources and uses of liquidity including loans, investments, deposits and borrowings, as well as off-balance sheet exposures. Although we make an effort to diversify our sources of liquidity, as discussed below, we are required to maintain a minimum amount of TLAC-eligible debt due to affiliates beginning January 1, 2019. Various tools are used to measure and monitor liquidity, including forecasting of the sources and uses of cash flows over multiple time horizons and stress testing of the forecasts under various scenarios. Stress testing, which incorporates both institution-specific, and systemic market scenarios, as well as a combination scenario that adversely affects the Company's liquidity position and profile, facilitates the identification of appropriate remedial measures to help ensure that the Company maintains adequate liquidity in adverse conditions. Such measures may include extending the maturity profile of liabilities, optimizing liability levels through pricing strategies, adding new funding sources, altering dependency on certain funding sources, adjusting asset growth and financing or selling assets.

In December 2016, the Federal Reserve finalized rules imposing new TLAC requirements on GSIBs with operations in the U.S., such as MUFG. The final rule includes an Internal TLAC requirement which sets a minimum amount of loss-absorbing instruments, which must be issued by the Company to MUFG or MUFG Bank, Ltd. (or another wholly-owned non-U.S. subsidiary of MUFG) due to MUFG's single point of entry resolution approach. These loss absorbing instruments are comprised of Tier 1 regulatory capital and long-term debt. TLAC

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Tier 1 regulatory capital is designed to absorb ongoing losses, while the conversion of TLAC-eligible long-term debt into common equity of the Company is intended to recapitalize the Company prior to any bankruptcy or insolvency proceedings. During the fourth quarter of 2018, the Company restructured existing debt issued to MUFG Bank, Ltd. and replaced a portion of its externally-placed debt with the issuance of internal TLAC-eligible debt issued to MUFG Bank, Ltd. in order to comply with the new rules. See "Supervision and Regulation-Dodd-Frank Act and Related Regulations" in Part I, Item 1. in this Form 10-K.

We maintain a substantial level of available liquidity in the form of on-balance sheet and off-balance sheet funding sources. Sources of liquidity include cash at the Federal Reserve, unencumbered liquid securities, and capacity to borrow on a secured basis at the FHLB of San Francisco and the Federal Reserve Bank’s Discount Window. Total unpledged securities were $24.0 billion at December 31, 2018. Our primary funding sources are customer deposits, secured FHLB advances, and unsecured short-term and long-term debt. Total deposits increased $6.2 billion from $84.8 billion at December 31, 2017 to $91.0 billion at December 31, 2018. As of December 31, 2018, the Bank had $16.9 billion of borrowings outstanding with the FHLB of San Francisco, and the Bank had a remaining unused borrowing capacity from the FHLB of San Francisco of $15.8 billion. The Bank maintains a $12 billion unsecured bank note program. Available funding under the bank note program was $5.9 billion at December 31, 2018. We do not have any firm commitments in place to sell additional notes under this program.

In addition to managing liquidity risk on a consolidated basis and at each of the major subsidiaries (the Bank and MUSA), we assess and monitor liquidity at the parent company (MUAH) and the other non-bank subsidiaries. The parent company maintains sufficient liquidity to meet expected obligations, without access to the wholesale funding markets or dividends from subsidiaries, for at least 20 months. As of December 31, 2018, the parent company’s liquidity exceeded 20 months.

MUAH and its subsidiaries may borrow on a long-term basis from MUFG Bank, Ltd. and affiliates. As of December 31, 2018, the Company had total long-term debt issued to MUFG Bank, Ltd. and affiliates of $7.3 billion.

The Company’s total wholesale funding at December 31, 2018 included $17.6 billion of long-term debt (excluding nonrecourse debt) and $9.3 billion of short-term debt. For additional information regarding our outstanding debt, refer to Note 9 and Note 10 to our Consolidated Financial Statements included in this Form 10-K. We evaluate and monitor the stability and reliability of our various funding sources to help ensure that we have sufficient liquidity in adverse circumstances.

Our costs and ability to raise funds in the capital markets are influenced by our credit ratings. In April 2018, Standard & Poor's revised the outlook on MUAH, MUB and MUSA to positive from stable following a similar revision to MUFG’s outlook. The change in MUFG’s outlook is a result of Standard & Poor's revising the outlook on the long-term sovereign rating of Japan to positive from stable. The following table provides our credit ratings as of December 31, 2018:

		MUFG Union Bank, N.A.		MUFG Securities Americas Inc.	MUFG Americas Holdings Corporation
		Deposits	Senior Debt	Senior Debt	Senior Debt
Standard & Poor's	Long-term	–	A	A	A-
	Short-term	–	A-1	A-1	A-2
Moody's	Long-term	Aa2	A2	–	A2
	Short-term	P-1	P-1	–	–
Fitch	Long-term	A+	A	A	A
	Short-term	F1	F1	F1	F1

For further information, including information about rating agency assessments, see "MUFG Bank, Ltd.'s and Mitsubishi UFJ Financial Group's credit ratings and financial or regulatory condition could adversely affect our operations" and "Our credit ratings are important in order to maintain liquidity" in Part I, Item 1A. "Risk Factors" in this Form 10-K.

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The OCC, the Federal Reserve and the FDIC jointly adopted a final rule to implement a standardized quantitative liquidity requirement generally consistent with the LCR standards established by the BCBS. The LCR rule is designed to ensure that covered banking organizations maintain an adequate level of cash and HQLA, such as central bank reserves and government and corporate debt, to meet estimated net liquidity needs in a short-term stress scenario using liquidity inflow and outflow assumptions provided in the rule (net cash outflow). At December 31, 2018, the Company was in compliance with the LCR requirements.

For further information regarding this rule, see "Supervision and Regulation—Regulatory Capital and Liquidity Standards—Liquidity Coverage Ratio" in Part I, Item 1. of this Form 10-K and "The effects of changes or increases in, or supervisory enforcement of, banking, securities, competition or other laws and regulations or governmental fiscal , monetary, or tax policies could adversely affect us or make strategic planning more difficult" in Part I, Item 1A. "Risk Factors" of this Form 10-K.

Operational Risk Management

Operational risk is defined as the potential that events will have an adverse effect on current or projected financial condition arising from inadequate or failed internal processes or systems, human errors or misconduct, or adverse external events. This includes legal risk, but excludes strategic and reputation risk. In particular, information security is a significant operational risk element for the Company, and includes the risk of losses resulting from cyber-attacks or other related cyber incidents. See "We are subject to a wide array of operational risks, including, but not limited to, cyber-security risks" in Part I, Item 1A. "Risk Factors" of this Form 10-K. Operational risk is mitigated through a system of internal controls that are designed to keep these risks at appropriate levels.

Our operational risk management framework was designed to meet industry and regulatory standards. The Operational Risk Management Policies and Procedures establish the core governing principles for operational risk management and provide the framework to identify, assess, measure, manage, monitor, and report on operational risks in a consistent manner across the enterprise.

The Company has established an independent ORMD under the CRO. The operational risk framework provides requirements for the business lines to better manage their operational risk. ORMD and the operational risk management framework are overseen by the Operational Risk Management Committee.

Operational risk is managed through a combination of first and second line of defense functions. The first line of defense is comprised of business line management supported by business unit risk managers. ORMD provides oversight, guidance, tools and support to the business units in assessing and monitoring their operational risk, as well as validation and effective challenge of their operational risk assessments. Specifically, ORMD evaluates and challenges the risk and control self-assessments prepared by the business units and assures their operational risk profiles are within established guidelines and tolerances. ORMD is supported for specific categories of operational risk by second line of defense subject matter experts. In addition, ORMD monitors business units to ensure mitigating activities are identified where needed and appropriately addressed.

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Critical Accounting Estimates

MUAH's consolidated financial statements are prepared in accordance with GAAP, which includes management estimates and judgments. The financial information contained within our statements is, to a significant extent, financial information that is based on estimates used to measure the financial effects of transactions and events that have already occurred. A variety of factors could affect the ultimate value that is obtained either when earning income, recognizing an expense, recovering an asset or relieving a liability. For example, we use discount factors and other assumptions to measure certain assets and liabilities. A change in the discount factor or other important assumptions could significantly increase or decrease the reported amounts of those assets and liabilities and result in either a beneficial or an adverse impact to our financial results. As discussed in "Allowance for Credit Losses" in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-K, we estimate probability of default and the loss severity associated with the default (i.e. the loss-given default) to estimate the credit losses inherent in our loan and lease portfolios held for investment and certain off-balance sheet commitments on the balance sheet date. Actual losses could differ significantly from our loss estimates. Other significant estimates that we use include the valuation of certain derivatives and securities, the assumptions used in measuring our transfer pricing revenue, pension obligations, goodwill impairment, and assumptions regarding our effective tax rates.

Management has reviewed and approved these critical accounting policies and has discussed these policies with the Audit & Finance Committee.

Understanding our accounting policies is fundamental to understanding our consolidated financial condition and consolidated results of operations. Accordingly, both our critical accounting estimates and our significant accounting policies are discussed in Note 1 to our Consolidated Financial Statements included in this Form 10-K. Our most critical accounting policies include the allowance for credit losses, valuation of financial instruments, hedge accounting, transfer pricing revenue, pension obligations, goodwill impairment analysis and income taxes.

Allowance for Credit Losses

The allowance for credit losses, which consists of the allowances for loan losses and losses on unfunded credit commitments, is an estimate of the losses that are inherent in our loan portfolio as well as for certain unfunded credit commitments such as unfunded loan commitments, standby letters of credit, and commercial lines of credit that are not for sale. Our allowance for credit losses has four components: the allowance for loans collectively evaluated for impairment, the allowance for loans individually evaluated for impairment, the unallocated allowance, and the allowance for losses on unfunded credit commitments which is included in other liabilities. Each of these components is determined based upon estimates that are inherently subjective and our actual losses incurred could differ significantly from those estimates. For the commercial portfolio segment, the allowance for loans collectively evaluated for impairment is calculated by utilizing a dual factor internal risk rating system that encompasses both the probability that a credit facility may ultimately default (i.e. probability of default) and an estimate of the severity of the loss that would be realized upon such default (i.e. the loss-given default) and applying these risk ratings to outstanding loans and most unused commitments. The probability of default and loss-given default may be adjusted for qualitative or environmental factors that, in management's judgment, are likely to cause estimated credit losses associated with the existing portfolio to differ from the historical probability of default and loss-given default. For loans that are homogeneous in nature, such as in our consumer portfolio segment, we estimate the allowance based on forecasted losses based on incurred loss events. The allowance for loans collectively evaluated for impairment also includes attributions for certain sectors within the commercial and consumer portfolio segments to account for probable losses that are currently not reflected in the probability of default and loss-given default. Segment attributions are calculated based on migration scenarios for the commercial portfolio and specific attributes applicable to the consumer portfolio. The unallocated allowance is composed of attributions that are intended to capture probable losses from adverse changes in credit migration and other inherent losses that are not currently reflected in the allowance for loan losses that are ascribed to our portfolio segments. Our allowance for losses on unfunded credit commitments is measured in approximately the same manner as the allowance for loan losses but includes an estimate of expected utilization based upon historical data. For further information regarding our allowance for loan losses, see "Allowance for Loan Losses" in Note 1 and Note 3 to our Consolidated Financial Statements in this Form 10-K.

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Valuation of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between willing market participants at the measurement date. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs reflect market-derived or market-based information obtained from independent sources (e.g., yield curves, foreign exchange rates, implied volatilities and credit spreads), while unobservable inputs reflect our own view of the assumptions that would be considered by market participants. Valuation adjustments may be made to ensure that certain financial instruments are recorded at fair value. These adjustments include amounts that reflect counterparty credit risk and our own credit risk in determining the fair value of our trading account liabilities and certain other liabilities.

Based on the observability of the inputs used in the valuation, we classify our financial assets and liabilities measured and disclosed at fair value within the three-level hierarchy (i.e., Level 1, Level 2 and Level 3) defined in GAAP. This hierarchy ranks the quality and reliability of the information used to determine fair values with Level 1 deemed most reliable and Level 3 having at least one significant unobservable input. The degree of management judgment required in measuring fair value increases with the higher level of measurement within the three-level hierarchy.

The following table reflects financial instruments measured at fair value on a recurring basis as of December 31, 2018 and December 31, 2017.

	December 31, 2018					December 31, 2017
(Dollars in millions)	Fair Value			Percentage of Total		Fair Value			Percentage of Total
Financial instruments recorded at fair value on a recurring basis
Assets:
Level 1	$	155		—	%	$	212		1	%
Level 2	26,404			95		26,789			95
Level 3	1,621			6		1,803			6
Netting Adjustment(1)	(354		)	(1	)	(607		)	(2	)
Total	$	27,826		100	%	$	28,197		100	%
As a percentage of total Company assets				17	%				18	%
Liabilities:
Level 1	$	125		3	%	$	46		1	%
Level 2	4,214			102		4,036			109
Level 3	131			3		257			7
Netting Adjustment(1)	(322		)	(8	)	(620		)	(17	)
Total	$	4,148		100	%	$	3,719		100	%
As a percentage of total Company liabilities				3	%				3	%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

For detailed information on our measurement of fair value of financial instruments and our related valuation methodologies, see Note 11 to our Consolidated Financial Statements included in this Form 10-K.

Transfer Pricing

Employees of the Company perform management and support services to MUFG Bank, Ltd. in connection with the operation and administration of MUFG Bank, Ltd.’s businesses in the Americas. In consideration for the services provided, MUFG Bank, Ltd. pays the Company fees under a master services agreement, which reflects arm's length market-based pricing for those services. The Company recognizes transfer pricing revenue when delivery (performance) has occurred or services have been rendered. Management applies a facts and circumstances evaluation to determine the most appropriate method to calculate an arm's length market-based price for services performed by the Company for MUFG Bank, Ltd. and other non-consolidated MUFG affiliates.

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Pension Obligations

Our pension obligations and related assets of our defined retirement benefit plan are presented in Note 15 to our Consolidated Financial Statements included in this Form 10-K. Plan assets consist primarily of marketable equity and debt instruments. Plan obligations and the annual benefit expense are estimated by management utilizing actuarially based data and key assumptions. Key assumptions in measuring the plan obligations and determining the pension benefit expense are the discount rate, the rate of compensation increases, and the estimated future return on plan assets. Our discount rate is calculated using a yield curve based on Aa3 or better rated bonds. This yield curve is matched to the anticipated timing of the actuarially determined estimated pension benefit payments to determine the weighted average discount rate. Compensation increase assumptions are based upon historical experience and anticipated future management actions. Asset returns are based upon the anticipated average rate of earnings expected on the invested funds of the plan.

Goodwill Impairment Analysis

We allocate our goodwill to reporting units and review for impairment at least annually, and whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Goodwill is assessed for impairment at the reporting unit level either qualitatively or quantitatively. If the elected qualitative assessment results indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Various valuation methodologies are applied to carry out the first step of the quantitative impairment test by comparing the fair value of the reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, a second step is required to measure the amount of impairment by comparing the implied fair value of the goodwill assigned to the reporting unit with the carrying amount of that goodwill.

Management applies significant judgment when estimating the fair value of its reporting units. This judgment includes developing cash flow projections, selecting appropriate discount rates, incorporating general economic and market conditions, identifying relevant market comparables, and selecting an appropriate control premium. Imprecision in estimating these factors can affect the estimated fair value of the reporting units.

The Company continuously monitors inputs used when performing its annual goodwill impairment such as the cash flow projections discussed above. When a disruption in the Company’s business, unexpected significant declines in operating results, or significant trends become apparent that may negatively affect those projections, the Company may have to assess the need to perform the first step of the quantitative impairment test to conclude whether the fair value of the reporting unit is still above its carrying amount.

Income Taxes

MUAH and its subsidiaries are subject to the income tax laws of the U.S., its states, and municipalities and laws of the other jurisdictions in which we conduct business. Our income tax expense consists of two components; current and deferred. Current income tax expense approximates taxes to be paid or refunded for the current period and includes income tax expense for our uncertain tax positions. Uncertain tax positions that meet the "more likely than not" recognition threshold are measured to determine the amount of benefit to recognize. Positions are measured as the largest amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. Deferred income tax expense results from changes in deferred income tax assets and liabilities between periods, where the deferred tax assets and liabilities are based on the tax effects of the differences between the financial accounting and tax basis of assets and liabilities. Deferred tax assets are recognized subject to management's judgment that realization is "more likely than not" based upon all available positive and negative evidence. Foreign taxes paid are generally applied as a credit to reduce income taxes payable.

The income tax laws of the jurisdictions in which we operate are complex and subject to differing interpretations. In establishing a provision for income tax expense, we make judgments and interpretations about the application of these complex laws and the result is by its nature an estimate. We are routinely subject to audits from tax authorities. To the extent the tax authorities disagree with our conclusions and depending on the final resolution of those disagreements, our effective tax rate may be materially affected in the period of final settlement. We also make estimates about when future certain items will affect taxable income in the jurisdictions in which we conduct business.

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We currently have a valid water’s-edge election to include the U.S. operations of MUFG with MUAH and its subsidiaries’ in our combined California tax return.  We analyze the alternative California worldwide tax liability annually to determine whether to revoke or retain this voluntary tax election.  As a water’s-edge filer, the taxable profits of MUFG’s U.S. operations impact our state effective tax rate.  Some affiliates included in our California tax return are fiscal year taxpayers.  The inclusion of calendar and fiscal year taxpayers in the same combined return impacts the timing of financial data used in determining our state tax rates.  We review MUFG’s U.S. operations quarterly to determine the appropriate rate at which to recognize our California and other state tax expense.

For further information on our income taxes, see Note 17 to our Consolidated Financial Statements included in this Form 10-K.

Non-GAAP Financial Measures

The following table shows the calculation of return on average MUAH tangible common equity for the years ended December 31, 2018, 2017 and 2016. Management believes that this ratio provides useful supplemental information regarding the Company's business results.

	For the Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Net income attributable to MUAH	$	1,073		$	1,077		$	990
Add: intangible asset amortization, net of tax	19			18			17
Net income attributable to MUAH, excluding intangible asset amortization (a)	$	1,092		$	1,095		$	1,007
Average MUAH stockholders' equity	$	18,400		$	17,926		$	17,003
Less: Goodwill	3,301			3,263			3,225
Less: Intangible assets, except mortgage servicing rights	299			269			196
Less: Deferred tax liabilities related to goodwill and intangible assets	(57		)	(72		)	(47		)
Average MUAH tangible common equity (b)	$	14,857		$	14,466		$	13,629
Return on average MUAH tangible common equity(a)/(b)	7.35		%	7.57		%	7.39		%

The following table shows the calculation of the adjusted efficiency ratio for the year ended December 31, 2018. Management believes adjusting the efficiency ratio for the fees and costs associated with services provided to MUFG Bank, Ltd. branches in the U.S. enhances the comparability of MUAH's efficiency ratio when compared with other financial institutions. Management believes adjusting revenue for the impact of the TCJA enhances comparability between periods. Adjusted efficiency ratios for the years ended December 31, 2017 and 2016 are not presented because the Company began identifying all costs associated with services provided to MUFG Bank, Ltd. branches in the U.S. in the third quarter of 2017. Previously, the Company was only able to identify a portion of the costs associated with services provided to MUFG Bank, Ltd. branches in the U.S.

(Dollars in millions)	For the Year Ended December 31, 2018
Noninterest expense (a)	$	4,277
Less: Costs associated with services provided to MUFG Bank, Ltd. branches in the U.S.	1,001
Noninterest expense, as adjusted (b)	$	3,276
Total revenue (c)	$	5,484
Less: Fees from affiliates for services provided to MUFG Bank, Ltd.'s branches in the U.S.	1,128
Less: Impact of the TCJA	(164		)
Total revenue, as adjusted (d)	$	4,520
Efficiency ratio (a)/(c)	77.98		%
Adjusted efficiency ratio(b)/(d)	72.47		%

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Financial Statements and Supplementary Data

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Income

	For the Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Interest Income
Loans	$	3,303		$	2,892		$	2,839
Securities	665			564			483
Securities borrowed or purchased under resale agreements	652			347			195
Trading assets	415			326			172
Other	90			50			27
Total interest income	5,125			4,179			3,716
Interest Expense
Deposits	441			241			194
Commercial paper and other short-term borrowings	168			58			32
Long-term debt	365			250			240
Securities loaned or sold under repurchase agreements	734			353			140
Trading liabilities	110			73			57
Total interest expense	1,818			975			663
Net Interest Income	3,307			3,204			3,053
(Reversal of) provision for credit losses	106			(103		)	155
Net interest income after (reversal of) provision for credit losses	3,201			3,307			2,898
Noninterest Income
Service charges on deposit accounts	179			188			192
Trust and investment management fees	118			121			120
Trading account activities	(24		)	(5		)	105
Securities gains, net	8			17			69
Credit facility fees	90			98			108
Brokerage commissions and fees	73			69			64
Card processing fees, net	50			47			39
Investment banking and syndication fees	355			369			312
Fees from affiliates	1,213			866			957
Other, net	115			240			259
Total noninterest income	2,177			2,010			2,225
Noninterest Expense
Salaries and employee benefits	2,616			2,495			2,439
Net occupancy and equipment	367			357			325
Professional and outside services	487			439			369
Software	287			192			154
Regulatory assessments	85			82			72
Intangible asset amortization	26			30			28
Other	409			389			395
Total noninterest expense	4,277			3,984			3,782
Income before income taxes and including noncontrolling interests	1,101			1,333			1,341
Income tax expense	52			299			419
Net Income Including Noncontrolling Interests	1,049			1,034			922
Deduct: Net loss from noncontrolling interests	24			43			68
Net Income Attributable to MUAH	$	1,073		$	1,077		$	990

See accompanying Notes to Consolidated Financial Statements.

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MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

	For the Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Net Income Attributable to MUAH	$	1,073		$	1,077		$	990
Other Comprehensive Income (Loss), Net of Tax:
Net change in unrealized gains (losses) on cash flow hedges	(46		)	(66		)	(115		)
Net change in unrealized gains (losses) on investment securities	(140		)	16			(56		)
Foreign currency translation adjustment	(2		)	7			2
Pension and other postretirement benefit adjustments	(130		)	95			23
Other	(1		)	—			—
Total other comprehensive income (loss)	(319		)	52			(146		)
Comprehensive Income (Loss) Attributable to MUAH	754			1,129			844
Comprehensive income (loss) from noncontrolling interests	(24		)	(43		)	(68		)
Total Comprehensive Income (Loss)	$	730		$	1,086		$	776

See accompanying Notes to Consolidated Financial Statements.

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MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Balance Sheets

(Dollars in millions except per share amount)	December 31, 2018			December 31, 2017
Assets
Cash and due from banks	$	2,061		$	2,057
Interest bearing deposits in banks	6,289			1,335
Total cash and cash equivalents	8,350			3,392
Securities borrowed or purchased under resale agreements	22,368			20,894
Trading account assets (includes $1,239 at December 31, 2018 and $1,001 at December 31, 2017 pledged as collateral that may be repledged)	11,213			10,567
Securities available for sale (includes $75 at December 31, 2018 and $163 at December 31, 2017 pledged as collateral that may be repledged)	16,314			17,563
Securities held to maturity (fair value $10,720 at December 31, 2018 and $9,799 at December 31, 2017)	10,901			9,885
Loans held for investment	86,507			80,014
Allowance for loan losses	(474		)	(476		)
Loans held for investment, net	86,033			79,538
Goodwill	3,301			3,301
Other assets	9,620			9,410
Total assets	$	168,100		$	154,550
Liabilities
Deposits:
Noninterest bearing	$	31,754		$	32,602
Interest bearing	59,225			52,185
Total deposits	90,979			84,787
Securities loaned or sold under repurchase agreements	27,285			26,437
Commercial paper and other short-term borrowings	9,263			7,066
Long-term debt	17,918			12,162
Trading account liabilities	4,027			3,600
Other liabilities	2,048			2,143
Total liabilities	151,520			136,195
Commitments, contingencies and guarantees—See Note 20
Equity
MUAH stockholders' equity:
Preferred stock:
Authorized 5,000,000 shares; no shares issued or outstanding	—			—
Common stock, par value $1 per share:
Authorized 1,700,000,000 shares, 131,935,124 shares issued and outstanding as of December 31, 2018 and authorized 300,000,000 shares, 147,589,713 shares issued and outstanding as of December 31, 2017	132			148
Additional paid-in capital	8,176			8,197
Retained earnings	9,524			10,936
Accumulated other comprehensive loss	(1,324		)	(1,026		)
Total MUAH stockholders' equity	16,508			18,255
Noncontrolling interests	72			100
Total equity	16,580			18,355
Total liabilities and equity	$	168,100		$	154,550

See accompanying Notes to Consolidated Financial Statements.

78

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders' Equity

	MUAH Stockholders' Equity
(Dollars in millions)	Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests			Total Equity
BALANCE DECEMBER 31, 2015	$	144		$	7,868		$	9,116		$	(750	)	$	215		$	16,593
Net income (loss)	—			—			990			—			(68		)	922
Other comprehensive income (loss), net of tax	—			—			—			(146		)	—			(146		)
Compensation—restricted stock units	—			13			(3		)	—			—			10
Other	—			3			(2		)	—			6			7
Net change	—			16			985			(146		)	(62		)	793
BALANCE DECEMBER 31, 2016	$	144		$	7,884		$	10,101		$	(896	)	$	153		$	17,386
Net income (loss)	—			—			1,077			—			(43		)	1,034
Other comprehensive income (loss), net of tax	—			—			—			52			—			52
Compensation—restricted stock units	—			(8		)	(2		)	—			—			(10		)
Issuance of common stock(1)	3			321			78			—			—			402
Dividends	—			—			(500		)	—			—			(500		)
TCJA reclassification	—			—			182			(182		)	—			—
Other	1			—			—			—			(10		)	(9		)
Net change	4			313			835			(130		)	(53		)	969
BALANCE DECEMBER 31, 2017	$	148		$	8,197		$	10,936		$	(1,026	)	$	100		$	18,355
Net income (loss)	—			—			1,073			—			(24		)	1,049
Other comprehensive income (loss), net of tax	—			—			—			(319		)	—			(319		)
Compensation—restricted stock units	—			—			(5		)	—			—			(5		)
Share repurchase	(16		)	—			(2,480		)	—			—			(2,496		)
Other	—			(21		)	—			21			(4		)	(4		)
Net change	(16		)	(21		)	(1,412		)	(298		)	(28		)	(1,775		)
BALANCE DECEMBER 31, 2018	$	132		$	8,176		$	9,524		$	(1,324	)	$	72		$	16,580

(1) For additional information on the issuance of common stock, refer to Note 21.

See accompanying Notes to Consolidated Financial Statements.

79

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Cash Flows

	For the Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Cash Flows from Operating Activities:
Net income including noncontrolling interests	$	1,049		$	1,034		$	922
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Reversal of) provision for credit losses	106			(103		)	155
Depreciation, amortization and accretion, net	411			331			325
Stock-based compensation—restricted stock units	77			66			67
Deferred income taxes	(242		)	25			79
Net gains on sales of securities	(8		)	(17		)	(69		)
Net decrease (increase) in securities borrowed or purchased under resale agreements	(1,474		)	(1,147		)	11,325
Net increase (decrease) in securities loaned or sold under repurchase agreements	848			1,821			(4,525		)
Net decrease (increase) in trading account assets	(646		)	(1,625		)	(5,208		)
Net decrease (increase) in other assets	170			414			(875		)
Net increase (decrease) in trading account liabilities	427			695			(807		)
Net increase (decrease) in other liabilities	103			(137		)	(98		)
Loans originated for sale	(2,339		)	(813		)	(1,358		)
Net proceeds from sale of loans originated for sale	1,626			697			1,332
Pension and other benefits adjustment	(50		)	(169		)	(147		)
Other, net	(18		)	11			15
Total adjustments	(1,009		)	49			211
Net cash provided by (used in) operating activities	40			1,083			1,133
Cash Flows from Investing Activities:
Proceeds from sales of securities available for sale	1,505			2,460			4,842
Proceeds from paydowns and maturities of securities available for sale	2,822			2,809			2,171
Purchases of securities available for sale	(5,643		)	(8,912		)	(6,666		)
Proceeds from paydowns and maturities of securities held to maturity	1,682			1,782			2,257
Purchases of securities held to maturity	(772		)	(1,360		)	(2,447		)
Proceeds from sales of loans	770			926			1,526
Net decrease (increase) in loans	(6,785		)	(2,947		)	(519		)
Purchases of other investments	(262		)	(378		)	(717		)
Other, net	(57		)	(60		)	148
Net cash provided by (used in) investing activities	(6,740		)	(5,680		)	595
Cash Flows from Financing Activities:
Net increase (decrease) in deposits	6,184			(2,063		)	2,606
Net increase (decrease) in commercial paper and other short-term borrowings	2,198			4,709			(1,065		)
Proceeds from issuance of long-term debt	15,458			5,027			795
Repayment of long-term debt	(9,655		)	(4,801		)	(3,082		)
Dividends paid	—			(500		)	—
Share repurchase	(2,496		)	—			—
Other, net	(115		)	(71		)	6
Change in noncontrolling interests	(4		)	(10		)	6
Net cash provided by (used in) financing activities	11,570			2,291			(734		)
Net change in cash and cash equivalents	4,870			(2,306		)	994
Cash, cash equivalents and restricted cash at beginning of period	3,528			5,834			4,840
Cash, cash equivalents and restricted cash at end of period	$	8,398		$	3,528		$	5,834
Cash Paid During the Period For:
Interest	$	1,761		$	919		$	626
Income taxes, net	116			178			159
Supplemental Schedule of Noncash Investing and Financing Activities:
Net transfer of loans held for investment to loans held for sale	$	44		$	776		$	1,976
Securities available for sale transferred to securities held to maturity	2,006			—			—
Transfer of assets and liabilities from MUFG Bank, Ltd. and MUFG (1):
Carrying amount of assets acquired	—			1,003			—
Carrying amount of liabilities assumed	—			601			—
Reconciliation of Cash, Cash Equivalents and Restricted Cash:
Cash and cash equivalents	$	8,350		$	3,392		$	5,753
Restricted cash included in other assets	48			136			81
Total cash, cash equivalents and restricted cash per consolidated statement of cash flows	$	8,398		$	3,528		$	5,834

(1) For additional information on the transfer of assets and liabilities from MUFG Bank, Ltd., refer to Note 21 to these Consolidated Financial Statements.

See accompanying Notes to Consolidated Financial Statements.

80

Notes to Consolidated Financial Statements

Note 1—Summary of Significant Accounting Policies and Nature of Operations

Introduction

MUFG Americas Holdings Corporation (MUAH) is a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. (MUB or the Bank) and MUFG Securities Americas Inc. (MUSA). MUAH is owned by MUFG Bank, Ltd. and MUFG. MUFG Bank, Ltd. is a wholly-owned subsidiary of MUFG. As used in these Consolidated Financial Statements, terms such as "the Company," "we," "us" and "our" refer to MUFG Americas Holdings Corporation (MUAH), one or more of its consolidated subsidiaries, or to all of them together.

MUAH provides a wide range of financial services to consumers, small businesses, middle-market companies and major corporations nationally and internationally. The Company also provides various business, banking, financial, administrative and support services, and facilities for MUFG Bank, Ltd. (formerly The Bank of Tokyo-Mitsubishi UFJ, Ltd.) in connection with the operation and administration of MUFG Bank, Ltd.'s business in the U.S. (including MUFG Bank, Ltd.'s U.S. branches).

On July 1, 2016, in accordance with the requirements of the U.S. Federal Reserve Board’s final rules for Enhanced Prudential Standards, the Company was designated the U.S. Intermediate Holding Company (IHC) of its ultimate parent, MUFG. The IHC formation resulted in the transfer of interests in substantially all of MUFG’s U.S. subsidiaries to MUAH. The Company issued 7,991,449 shares to MUFG Bank, Ltd. and MUFG in exchange for the transferred subsidiaries. These subsidiaries included MUSA, a registered broker-dealer, and various other non-bank subsidiaries. The assets received and liabilities assumed were transferred at their carrying amounts, and all prior periods have been revised to include the results of these transferred subsidiaries. MUFG's remaining U.S. subsidiaries were transferred to MUAH on July 1, 2017. The Company issued 3,267,433 shares to MUFG Bank, Ltd. and MUFG in exchange for these transferred subsidiaries and their financial results have been included in MUAH's financial results prospectively beginning July 1, 2017.

Principles of Consolidation and Basis of Financial Statement Presentation

The consolidated financial statements include the accounts of the Company and other entities in which the Company has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a VIE. The primary beneficiary of a VIE is the entity that has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and has the obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. Results of operations from VIEs are included from the dates that the Company became the primary beneficiary. All intercompany transactions and balances with consolidated entities are eliminated in consolidation.

The Company accounts for equity investments over which it exerts significant influence using the equity method of accounting. Non-marketable equity investments where the Company does not exert significant influence are accounted for at cost or using the proportional amortization method. Investments accounted for under the equity method, proportional amortization method, and cost method are included in other assets.

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). The policies that materially affect the determination of financial position, results of operations and cash flows are summarized below.

The preparation of financial statements in conformity with GAAP also requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Although such estimates contemplate current conditions and management's expectations of how they may change in the future, it is reasonably possible that actual results could differ significantly from those estimates. This could materially affect the Company's results of operations and financial condition in the near term. Critical estimates made by management in the preparation of the Company's financial statements include, but are not limited to, the allowance for credit losses (Note 3), goodwill impairment (Note 5), fair value of financial instruments (Note 11), pension accounting (Note 15), income taxes (Note 17), and transfer pricing (Note 21).

81

Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

Cash and Cash Equivalents

Cash and cash equivalents include cash and due from banks, interest bearing deposits in banks, and federal funds sold.

Securities Borrowed or Purchased under Agreements to Resell and Securities Loaned or Sold under Agreements to Repurchase

Securities borrowed and securities loaned transactions do not qualify for sale accounting and therefore are not recognized on the transferee's balance sheet. Securities borrowed and securities loaned represent the amount of cash collateral advanced or received, respectively. The Company monitors the market value of the borrowed and loaned securities on a daily basis, with additional collateral obtained or refunded as necessary. Accrued interest associated with securities borrowed and securities loaned is included in other assets and other liabilities, respectively. Interest associated with securities borrowed and securities loaned is recorded as interest income and interest expense, respectively.

Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”) do not qualify for sale accounting and therefore are not recognized on the transferee's balance sheet. Transactions involving these agreements are accounted for as collateralized financings. These agreements are recorded at the amounts at which the securities were acquired or sold and are carried at amortized cost. The Company generally obtains possession of collateral with a market value equal to or in excess of the principal amount financed under reverse repurchase agreements. Collateral is valued daily, and the Company may require counterparties to deposit additional collateral or return collateral pledged, when appropriate. Accrued interest associated with reverse repurchase agreements and repurchase agreements is included in other assets and other liabilities, respectively. Interest associated with reverse repurchase agreements and repurchase agreements is recorded as interest income and interest expense, respectively. The Company generally enters into reverse repurchase and repurchase agreements under legally enforceable master repurchase agreements that give the Company, in the event of counterparty default, the right to liquidate securities held and offset receivables and payables with the same counterparty. The Company offsets reverse repurchase and repurchase agreements with the same counterparty where they have a legally enforceable master netting agreement and the transactions have the same maturity date.

Trading Account Assets and Liabilities

Trading account assets and liabilities are recorded at fair value and include certain securities and derivatives. Securities are classified as trading when management acquires them with the intent to hold for short periods, primarily at MUAH's broker-dealer subsidiary, MUSA, or as an accommodation to customers. Substantially all of the securities have a high degree of liquidity and a readily determinable fair value. Interest on securities classified as trading is included in interest income, and realized gains and losses from sale and unrealized fair value adjustments are recognized in noninterest income. Trading securities that are pledged under an agreement to repurchase and which may be sold or repledged under that agreement are separately identified as pledged as collateral.

Derivatives included in trading account assets and liabilities are entered into for trading purposes or as an accommodation to customers. Contracts primarily include interest rate swaps and options, commodity swaps and options, and foreign exchange contracts. The Company nets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting arrangement exists between the Company and the derivative counterparty. Changes in fair values and realized income or expense for trading asset and liability derivatives are included in noninterest income.

Securities

Securities are classified based on management's intent and are recorded on the consolidated balance sheet as of the trade date, when acquired in a regular-way trade. Debt securities for which management has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at amortized cost. Debt securities with readily determinable fair values that are not classified as trading assets or held to maturity are classified as available for sale and are carried at fair value, with the unrealized gains or losses reported net of taxes as a component of AOCI in stockholders' equity until realized.

82

Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

Interest income on debt securities classified as either available for sale or held to maturity includes the amortization of premiums and the accretion of discounts using a method that produces a level yield and is included in interest income on securities.

Realized gains and losses on the sale of available for sale securities are included in noninterest income. The specific identification method is used to calculate realized gains and losses on sales.

Securities available for sale that are pledged under an agreement to repurchase and which may be sold or repledged under that agreement are separately identified as pledged as collateral.

Debt securities available for sale and debt securities held to maturity are subject to impairment testing when a security's fair value is lower than its amortized cost. Debt securities with unrealized losses are considered other-than-temporarily impaired if we intend to sell the debt security, if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, or if we do not expect to recover the entire amortized cost basis of the security. If we intend to sell the security, or if it is more likely than not that we will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the entire difference between the amortized cost basis and fair value of the debt security. However, even if we do not expect to sell a debt security we must evaluate the expected cash flows to be received and determine if a credit loss exists. In the event of a credit loss, only the amount of impairment associated with the credit loss is recognized in income. Amounts related to factors other than credit losses are recorded in other comprehensive income. For further information on our other-than-temporary impairment analysis, see Note 2 to our Consolidated Financial Statements in this Form 10-K.

Loans Held for Investment, Other Acquired Loans, Loans Held for Sale and Leases

Loans held for investment are reported at the principal amounts outstanding, net of charge-offs, unamortized nonrefundable loan fees, direct loan origination costs, and purchase premiums and discounts. Where loans are held for investment, the net basis adjustment excluding charge-offs on the loan is generally recognized in interest income on an effective yield basis over the contractual loan term.

Nonaccrual loans are those for which management has discontinued accrual of interest because there exists significant uncertainty as to the full and timely collection of either principal or interest. Loans are generally placed on nonaccrual when such loans have become contractually past due 90 days with respect to principal or interest. Past due status is determined based on the contractual terms of the loan and the number of payment cycles since the last payment date. Interest accruals are continued past 90 days for certain small business loans and consumer installment loans, which are charged off at 120 days. For the commercial loan portfolio segment, interest accruals are also continued for loans that are both well-secured and in the process of collection.

When a loan is placed on nonaccrual status, all previously accrued but uncollected interest is reversed against current period interest income. When full collection of the outstanding principal balance is in doubt, subsequent payments received are first applied to unpaid principal and then to uncollected interest. A loan may be returned to accrual status at such time as the loan is brought fully current as to both principal and interest, and such loan is considered to be fully collectible on a timely basis. The Company's policy also allows management to continue the recognition of interest income on certain loans placed on nonaccrual status. This portion of the nonaccrual portfolio is referred to as "Cash Basis Nonaccrual" under which the accrual of interest is suspended and interest income is recognized only when collected. This policy applies to consumer portfolio segment loans and commercial portfolio segment loans that are well-secured and in management's judgment are considered to be fully collectible but the timely collection of payments is in doubt.

A TDR is a restructuring of a loan in which the creditor, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. A loan subject to such a restructuring is accounted for as a TDR. A TDR typically involves a modification of terms such as a reduction of the interest rate below the current market rate for a loan with similar risk characteristics or extending the maturity date of the loan without corresponding compensation or additional support. The Company measures impairment of a TDR using the methodology described for individually impaired loans (see "Allowance for Loan Losses" below). For the consumer portfolio segment, TDRs are initially placed on nonaccrual and typically, a minimum of six consecutive months of sustained performance is required before returning to accrual status. For the commercial portfolio segment, the Company generally determines accrual status for TDRs by

83

Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

performing an individual assessment of each loan, which may include, among other factors, demonstrated performance by the borrower under the previous terms.

Except for certain transactions between entities under common control, loans acquired in a transfer, including business combinations, are recorded at fair value at the acquisition date, factoring in credit losses expected to be incurred over the life of the loan.

Loans held for sale, which are recorded in other assets, are carried at the lower of cost or fair value and measured on an individual basis for commercial loans and on an aggregate basis for residential mortgage loans. Changes in fair value are recognized in other noninterest income. Nonrefundable fees, direct loan origination costs, and purchase premiums and discounts related to loans held for sale are deferred and recognized as a component of the gain or loss on sale. Contractual interest earned on loans held for sale is recognized in interest income.

As lessor, the Company primarily offers two types of leases to customers: 1) direct financing leases where the assets leased are acquired without additional financing from other sources, and 2) leveraged leases where a substantial portion of the financing is provided by debt with no recourse to the Company. Direct financing leases and leveraged leases are recorded based on the amount of minimum lease payments receivable, unguaranteed residual value accruing to the benefit of the lessor, unamortized initial direct costs, and are reduced for any unearned income. Leveraged leases are recorded net of any nonrecourse debt.

Allowance for Loan Losses

The Company maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the probable estimated losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses, which is charged against current period operating results and decreased by the amount of charge-offs, net of recoveries. The Company's methodology for assessing the appropriateness of the allowance consists of several key elements, which include the allowance for loans collectively evaluated for impairment, the allowance for loans individually evaluated for impairment, and the unallocated allowance. Management estimates probable losses inherent in the portfolio based on a loss emergence period. The loss emergence period is the estimated average period of time between a material adverse event that affects the creditworthiness of a borrower and the subsequent recognition of a loss. Updates of the loss emergence period are performed when significant events cause management to reexamine data. Management develops and documents its systematic methodology for determining the allowance for loan losses by first dividing its portfolio into segments—the commercial segment and consumer segment. The Company further divides the portfolio segments into classes based on initial measurement attributes, risk characteristics or its method of monitoring and assessing credit risk. The classes for the Company include commercial and industrial, commercial mortgage, construction, residential mortgage, and home equity and other consumer loans. While the Company's methodology attributes portions of the allowance to specific portfolio segments, the entire allowance is available to absorb credit losses inherent in the total loan portfolio.

For the commercial portfolio segment, the allowance for loans collectively evaluated for impairment is calculated by utilizing a dual factor internal risk rating system that encompasses both the probability that a credit facility may ultimately default (i.e. probability of default) and an estimate of the severity of the loss that would be realized upon such default (i.e. the loss-given default) and applying these risk ratings to outstanding loans and most unused commitments. The probability of default and loss-given default may be adjusted for qualitative or environmental factors that, in management's judgment, are likely to cause estimated credit losses associated with the existing portfolio to differ from the historical probability of default and loss-given default. The Company refined its methodology for estimating the allowance for commercial loans collectively evaluated for impairment and the allowance for losses on unfunded credit commitments during the first quarter of 2018. Previously the Company derived the allowance for these loans by assigning a loss factor based on an internal risk rating that estimated the probability that a credit facility may ultimately default (i.e. probability of default) rather than a dual factor internal risk rating system that encompasses both the probability of default and an estimate of the severity of the loss that would be realized upon such default (i.e. the loss-given default). During the second quarter of 2018, the Company implemented refinements to the qualitative considerations used in our reserve methodology. 

For the consumer portfolio segment, loans are generally pooled by product type with similar risk characteristics. The Company estimates the allowance for loans collectively evaluated for impairment based on forecasted losses.

84

Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

The allowance for loans collectively evaluated for impairment also includes attributions for certain sectors within the commercial and consumer portfolio segments to account for probable losses based on incurred loss events that are currently not reflected in the probability of default and loss-given default. Segment attributions are calculated based on migration scenarios for the commercial portfolio and specific attributes applicable to the consumer portfolio. Segment considerations are revised periodically as portfolio and environmental conditions change.

The Company individually evaluates for impairment larger nonaccruing loans within the commercial portfolio. Residential mortgage and consumer loans are not individually evaluated for impairment unless they represent TDRs. Loans are considered impaired when the evaluation of current information regarding the borrower's financial condition, loan collateral, and cash flows indicates that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement, including interest payments. The amount of impairment is measured using the present value of expected future cash flows discounted at the loan's effective rate, the loan's observable market price, or the fair value of the collateral, if the loan is collateral dependent.

The unallocated allowance is composed of attributions that are intended to capture probable losses from adverse changes in credit migration and other inherent losses that are not currently reflected in the allowance for loan losses that are ascribed to our portfolio segments.

Significant risk characteristics considered in estimating the allowance for credit losses include the following:

• Commercial and industrial—industry specific economic trends and individual borrower financial condition

• Construction and commercial mortgage loans—type of property (i.e., residential, commercial, industrial), geographic concentrations, and risks and individual borrower financial condition

• Residential mortgage and consumer—historical and expected future charge-offs, borrower's credit, property collateral, and loan characteristics

Loans are charged-off in whole or in part when they are considered to be uncollectible. Loans in the commercial loan portfolio segment are generally considered uncollectible based on an evaluation of borrower financial condition as well as the value of any collateral. Loans in the consumer portfolio segment are generally considered uncollectible based on past due status or the execution of certain TDR modifications such as discharge through Chapter 7 bankruptcy and the value of any collateral. Recoveries of amounts previously charged off are recorded as a recovery to the allowance for loan losses.

Allowance for Losses on Unfunded Credit Commitments

The Company maintains an allowance for losses on unfunded credit commitments to absorb losses inherent in those commitments upon funding. The Company's methodology for assessing the appropriateness of this allowance is the same as that used for the allowance for loan losses (see "Allowance for Loan Losses" above) and incorporates an assumption based upon historical experience of likely utilization of the commitment. The allowance for losses on unfunded credit commitments is classified as other liabilities and the change in this allowance is recognized in the provision for credit losses. Losses on unfunded credit commitments are identified when exposures committed to customers facing difficulty are drawn upon, and subsequently result in charge-offs.

Goodwill and Identifiable Intangible Assets

Intangible assets represent purchased assets that lack physical substance and can be separately distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold, exchanged, or licensed. Intangible assets are recorded at fair value at the date of acquisition.

Intangible assets that have indefinite lives are tested for impairment at least annually, and more frequently in certain circumstances. Intangible assets that have finite lives, which include core deposit intangibles, customer relationships, non-compete agreements and trade names, are amortized either using the straight-line method or a method that patterns the consumption of the economic benefit. Intangible assets are amortized over their

85

Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

estimated periods of benefit, which range from three to forty years. The Company periodically evaluates the recoverability of intangible assets and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate impairment exists.

Goodwill is assessed for impairment at least annually at the reporting unit level either qualitatively or quantitatively. If the elected qualitative assessment results indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Various valuation methodologies are applied to carry out the first step of the quantitative impairment test by comparing the fair value of the reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, a second step is required to measure the amount of impairment by comparing the implied fair value of the goodwill assigned to the reporting unit with the carrying amount of that goodwill. Goodwill impairment is recognized through noninterest expense as a direct write down to its carrying amount and subsequent reversals of goodwill impairment are prohibited.

Other Investments

The Company invests in limited liability partnerships and other entities operating qualified affordable housing projects. These LIHC investments provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. The LIHC investments are initially recorded at cost, and are subsequently accounted for under the proportional amortization method, when such requirements are met to apply that methodology. Under the proportional amortization method, the Company amortizes the initial investment in proportion to the tax credits and other tax benefits allocated to the Company, with amortization recognized in the statement of income as a component of income tax expense. When the requirements are not met to apply the proportional amortization method, the investment is accounted for under the equity method of accounting with equity method losses recorded in noninterest expense. LIHC investments are reviewed periodically for impairment.

The Company also invests in limited liability entities and trusts that operate renewable energy projects, either directly or indirectly. Tax credits, taxable income and distributions associated with these renewable energy projects may be allocated to investors according to the terms of the partnership agreements. These investments are accounted for under the equity method and are reviewed periodically for impairment, considering projected operating results and realizability of tax credits. For those projects where economic benefits are not allocated based on pro rata ownership percentage, the Company accounts for its investments using the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, the Company determines its share of an investee’s earnings by comparing the amount it would hypothetically receive at each balance sheet reporting date under the liquidation provisions of the partnership agreements, assuming the investee's net assets were liquidated at amounts determined in accordance with GAAP and distributed to the Company, after taking capital transactions during the period into account.

Derivative Instruments Used in Hedging Relationships

The Company enters into a variety of derivative contracts as a means of managing the Company's interest rate exposure and designates such derivatives under qualifying hedge relationships. All such derivative instruments are recorded at fair value and are included in other assets or other liabilities. The Company offsets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting arrangement exists between the Company and the derivative counterparty.

At hedge inception, the Company designates a derivative instrument as a hedge of the fair value of a recognized asset or liability (i.e., fair value hedge), or a hedge of the variability in the expected future cash flows associated with either an existing recognized asset or liability or a probable forecasted transaction (i.e., cash flow hedge).

Where hedge accounting is applied at hedge inception, the Company formally documents its risk management objective and strategy for undertaking the hedge, which includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged, and how the hedge's effectiveness will be assessed prospectively and retrospectively. Both at the inception of the hedge and on an ongoing basis, the hedging instrument must be highly effective in offsetting changes in fair values or cash flows of the hedged item in order to qualify for hedge accounting.

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Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

For fair value hedges, any ineffectiveness is recognized in noninterest expense in the period in which it arises. For cash flow hedges, only ineffectiveness resulting from over-hedging is recorded in earnings as an adjustment to noninterest expense, with other changes in the fair value of the derivative instrument recognized in other comprehensive income. For cash flow hedges of interest rate risk, the amount in other comprehensive income is subsequently reclassified to net interest income in the period in which the cash flow from the hedged item is recognized in earnings. If a derivative instrument is no longer determined to be highly effective as a designated hedge, hedge accounting is discontinued and subsequent fair value adjustments of the derivative instrument are recorded in earnings.

Transfers of Financial Assets

Transfers of financial assets in which the Company has surrendered control over the transferred assets are accounted for as sales. Control is generally considered to have been surrendered when the transferred assets have been legally isolated from the Company, the transferee has the right to pledge or exchange the assets without any significant constraints, and the Company has not entered into a repurchase agreement, does not hold unconditional call options and has not written put options on the transferred assets. In assessing whether control has been surrendered, the Company considers whether the transferee would be a consolidated affiliate and the impact of all arrangements or agreements made contemporaneously with, or in contemplation of, the transfer, even if they were not entered into at the time of transfer.

Revenues from Contracts with Customers

Revenues from contracts with customers include service charges on deposit accounts, trust and investment management fees, brokerage commissions and fees, card processing fees, net, investment banking and syndication fees, and fees from affiliates. The Company recognizes revenue from contracts with customers according to a five-step revenue recognition model: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company’s contracts with customers generally contain a single performance obligation or separately identified performance obligations, each with a stated transaction price and generally do not involve a significant timing difference between satisfaction of the performance obligation and customer payment. Revenues are recognized over time or at a point in time as the performance obligations are satisfied. Revenues are generally not variable and do not involve significant estimates or constraints.

Transfer Pricing

Employees of the Company perform management and support services to MUFG Bank, Ltd. in connection with the operation and administration of MUFG Bank, Ltd.’s businesses in the Americas. In consideration for the services provided, MUFG Bank, Ltd. pays the Company fees under a master services agreement, which reflects market-based pricing for those services. The Company recognizes transfer pricing revenue when delivery (performance) has occurred or services have been rendered. Revenue is typically recognized based on the gross amount billed to MUFG Bank, Ltd. without netting the associated costs to perform those services. Gross presentation is typically deemed appropriate in these instances as the Company acts as a principal when providing these services directly to MUFG Bank, Ltd. Transfer pricing revenue is included in fees from affiliates revenue.

Income Taxes

The Company files consolidated U.S. federal income tax returns, foreign tax returns and various combined and separate company state income tax returns.

We record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize the deferred income tax effects of a change in tax rates in the period of the enactment.

We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of

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Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

the position. We make adjustments to these reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made, and could have a material impact on our financial condition and operating results. Foreign taxes paid are generally applied as credits to reduce U.S. federal income taxes payable.

Employee Pension and Other Postretirement Benefits

The Company provides a variety of pension and other postretirement benefit plans for eligible employees and retirees. Net periodic pension and other postretirement benefit cost is recognized over the approximate service period of plan participants and includes significant discount rate and plan asset return assumptions.

Stock-Based Compensation

The Company grants restricted stock units settled in ADRs representing shares of common stock of the Company's ultimate parent company, MUFG, to employees. The Company recognizes compensation expense on restricted stock units granted on a straight-line basis over the vesting period for non-retirement eligible employees based on the grant date fair value of MUFG ADRs. Restricted stock units granted to employees who are retirement eligible or will become retirement eligible during the vesting period are expensed as of the grant date or on a straight-line basis over the period from the grant date to the date the employee becomes retirement eligible. Forfeitures are recognized as incurred.

Business Combinations

The Company accounts for all business combinations using the acquisition method of accounting. Assets and liabilities acquired are recorded at fair value at the acquisition date, with the excess of purchase price over the fair value of the net assets acquired (including identifiable intangibles) recorded as goodwill. Management may further adjust the acquisition date fair values for a period of up to one year from the date of acquisition. The recognition at the acquisition date of an allowance for loan losses is not carried over or recorded as of acquisition date, as credit-related factors are incorporated directly into the fair value measurement of the loans. For combinations between entities under common control, assets and liabilities acquired are recorded at book value at the transfer date.

Recently Issued Accounting Pronouncements

Accounting for Leases

In February 2016, the FASB issued ASU 2016-02, Leases, which will require entities that lease assets (i.e., lessees) to recognize assets and liabilities on their balance sheet for the rights and obligations created by those leases. The accounting by entities that own the assets leased (i.e., lessors) will remain largely unchanged; however, leveraged lease accounting will no longer be permitted for leases that commence after the effective date. The ASU will also require qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases, which allows entities the option to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In December 2018, the FASB issued ASU 2018-20, Leases, which clarified lessor accounting for sales and similar taxes collected by lessors, certain lessor costs, and lease payments with lease and nonlease components. Effective January 1, 2019 the Company adopted this guidance which does not significantly impact the Company's financial position or results of operations.

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Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provides new guidance on the accounting for credit losses for instruments that are within its scope. This new guidance is commonly referred to as the current expected credit loss (“CECL”) model. For loans and debt securities accounted for at amortized cost, certain off-balance sheet credit exposures, net investments in leases, and trade receivables, the ASU requires an entity to recognize its estimate of credit losses expected over the life of the financial instrument or exposure. Lifetime expected credit losses on purchased financial assets with credit deterioration will be recognized as an allowance with an offset to the cost basis of the asset. For available for sale debt securities, the new standard will require recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. The ASU is effective for interim and annual periods beginning on January 1, 2020, with early adoption permitted in 2019. The Company plans to adopt the ASU on January 1, 2020. The Company is in the design phase of the implementation. Management is currently assessing the impact of this guidance on the Company’s financial position or results of operations.

Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The ASU removes Step 2 of the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments, a goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The ASU will be effective for MUAH beginning January 1, 2020 on a prospective basis. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations.

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which requires premiums on certain purchased callable debt securities to be amortized to the earliest call date. Under current guidance, premiums on callable debt securities are generally amortized over the contractual life of the security. The amortization period for callable debt securities purchased at a discount will not be impacted. Effective January 1, 2019 the Company adopted this guidance which does not significantly impact the Company's financial position or results of operations.

Targeted Improvements to Accounting for Hedging Activities

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, which will make more hedging strategies eligible for hedge accounting, simplify the application of hedge accounting, and enhance the transparency and understandability of hedge results. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. It also amends the disclosure requirements and changes how entities assess effectiveness. Effective January 1, 2019 the Company adopted this guidance which does not significantly impact the Company's financial position or results of operations.

Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies disclosure requirements on fair value measurements to improve their effectiveness. The guidance permits entities to consider materiality when evaluating fair value measurement disclosures and, among other modifications, requires certain new disclosures related to Level 3 fair value measurements. The guidance will be effective for MUAH beginning January 1, 2020, with early adoption permitted. The guidance only affects disclosures in the notes to the consolidated financial statements and will

89

Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

not affect the Company’s financial position or results of operations.

Recently Adopted Accounting Pronouncements

Revenue from Contracts with Customers

Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers, which provides guidance on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU applies to all contracts with customers, except financial instruments, guarantees, lease contracts, insurance contracts and certain non-monetary exchanges. This guidance did not significantly affect the Company's financial position or results of operations.

Principal versus Agent Considerations (Reporting Revenue Gross versus Net)

Effective January 1, 2018, the Company adopted ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The ASU amends ASU 2014-09, Revenue from Contracts with Customers, with respect to assessing whether an entity is a principal (and thus presents revenue gross) or an agent (and thus presents revenue net). The amendments retain the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer and clarify: (1) that an entity must first identify the specified good or service being provided to the customer; (2) that the unit of account for the principal versus agent assessment is each specified good or service promised in a contract; (3) indicators and examples to help an entity evaluate whether it is the principal; and (4) how to assess whether an entity controls services performed by another party. As a result of adopting ASU 2016-08, beginning January 1, 2018, certain expenses that were previously presented as a reduction of related fees from affiliates and investment banking and syndication fees are presented in noninterest expense.

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

Effective January 1, 2018, the Company adopted ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amended the income statement presentation of the components of net periodic benefit cost for sponsored defined benefit pension and other postretirement plans. As a result of adopting ASU 2017-07, the salaries and employee benefits expense and other expense categories in noninterest expense have been adjusted to reflect adoption of this guidance as follows.

	For the Year Ended							For the Year Ended
	2017							2016
(Dollars in millions)	As Previously Reported		Adjustment			As Reported under New Guidance		As Previously Reported		Adjustment			As Reported under New Guidance
Salaries and employee benefits	$	2,376	$	119		$	2,495	$	2,355	$	84		$	2,439
Other	508		(119		)	389		479		(84		)	395

Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans

In August 2018, the FASB issued ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to improve the effectiveness of the disclosures. The guidance includes new requirements to disclose the weighted-average interest crediting rate for cash balance plans and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation. The Company early adopted this guidance, which is reflected in Note 15. This guidance did not affect the Company’s financial position or results of operations.

90

Note 2—Securities

Securities Available for Sale

At December 31, 2018 and 2017, the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale are presented below.

	December 31, 2018
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	3,572	$	1	$	144	$	3,429
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	8,168		7		168		8,007
Privately issued	887		—		23		864
Privately issued - commercial mortgage-backed securities	1,179		3		20		1,162
Collateralized loan obligations	1,492		—		18		1,474
Other	4		—		—		4
Asset Liability Management securities	15,302		11		373		14,940
Other debt securities:
Direct bank purchase bonds	1,190		30		30		1,190
Other	188		—		4		184
Total securities available for sale	$	16,680	$	41	$	407	$	16,314

	December 31, 2017
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	3,370	$	—	$	118	$	3,252
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	9,338		2		132		9,208
Privately issued	695		3		4		694
Privately issued - commercial mortgage-backed securities	823		4		5		822
Collateralized loan obligations	1,895		10		—		1,905
Other	5		—		—		5
Asset Liability Management securities	16,126		19		259		15,886
Other debt securities:
Direct bank purchase bonds	1,495		38		30		1,503
Other	163		1		—		164
Equity securities	10		—		—		10
Total securities available for sale	$	17,794	$	58	$	289	$	17,563

91

Note 2—Securities (Continued)

The Company's securities available for sale with a continuous unrealized loss position at December 31, 2018 and 2017 are shown below, identified for periods less than 12 months and 12 months or more.

	December 31, 2018
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	147	$	1	$	3,182	$	143	$	3,329	$	144
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	1,941		8		4,797		160		6,738		168
Privately issued	398		7		383		16		781		23
Privately issued - commercial mortgage-backed securities	364		6		512		14		876		20
Collateralized loan obligations	1,428		18		—		—		1,428		18
Asset Liability Management securities	4,278		40		8,874		333		13,152		373
Other debt securities:
Direct bank purchase bonds	221		6		417		24		638		30
Other	178		4		4		—		182		4
Total securities available for sale	$	4,677	$	50	$	9,295	$	357	$	13,972	$	407

	December 31, 2017
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	1,074	$	14	$	2,128	$	104	$	3,202	$	118
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	3,606		22		4,651		110		8,257		132
Privately issued	275		1		164		3		439		4
Privately issued - commercial mortgage-backed securities	447		3		80		2		527		5
Collateralized loan obligations	12		—		—		—		12		—
Asset Liability Management securities	5,414		40		7,023		219		12,437		259
Other debt securities:
Direct bank purchase bonds	58		4		563		26		621		30
Other	79		—		—		—		79		—
Equity securities	10		—		—		—		10		—
Total securities available for sale	$	5,561	$	44	$	7,586	$	245	$	13,147	$	289

At December 31, 2018, the Company did not have the intent to sell any securities in an unrealized loss position before a recovery of the amortized cost, which may be at maturity. The Company also believes that it is more likely than not that it will not be required to sell the securities prior to recovery of amortized cost.

Agency residential mortgage-backed securities consist of securities guaranteed by a U.S. government corporation, such as Ginnie Mae, or a government-sponsored agency such as Freddie Mac or Fannie Mae. These securities are collateralized by residential mortgage loans and may be prepaid at par prior to maturity. The unrealized losses on agency residential mortgage-backed securities resulted from changes in interest rates and not from changes in credit quality. At December 31, 2018, the Company expects to recover the entire amortized cost basis of these securities because the Company determined that the strength of the issuers’

92

Note 2—Securities (Continued)

guarantees through direct obligations or support from the U.S. government is sufficient to protect the Company from losses.

Commercial mortgage-backed securities are collateralized by commercial mortgage loans and are generally subject to prepayment penalties. The unrealized losses on commercial mortgage-backed securities resulted from higher market yields since purchase. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of December 31, 2018, the Company expects to recover the entire amortized cost basis of these securities.

The Company’s CLOs consist of Cash Flow CLOs. A Cash Flow CLO is a structured finance product that securitizes a diversified pool of loan assets into multiple classes of notes. Cash Flow CLOs pay the note holders through the receipt of interest and principal repayments from the underlying loans unlike other types of CLOs that pay note holders through the trading and sale of underlying collateral. Unrealized losses typically arise from widening credit spreads and deteriorating credit quality of the underlying collateral. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of December 31, 2018, the Company expects to recover the entire amortized cost basis of these securities.

Other debt securities primarily consist of direct bank purchase bonds, which are not rated by external credit rating agencies. The unrealized losses on these bonds resulted from a higher return on capital expected by the secondary market compared with the return on capital required at the time of origination when the bonds were purchased. The Company estimates the unrealized loss for each security by assessing the underlying collateral of each security. The Company estimates the portion of loss attributable to credit based on the expected cash flows of the underlying collateral using estimates of current key assumptions, such as probability of default and loss severity. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost and potential impairment is identified. Based on the analysis performed as of December 31, 2018, the Company expects to recover the entire amortized cost basis of these securities.

The fair value of debt securities available for sale by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	December 31, 2018
(Dollars in millions)	One Year or Less		Over One Year Through Five Years		Over Five Years Through Ten Years		Over Ten Years		Total Fair Value
Asset Liability Management securities:
U.S. Treasury	$	—	$	1,284	$	2,145	$	—	$	3,429
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	—		212		1,306		6,489		8,007
Privately issued	—		—		—		864		864
Privately issued - commercial mortgage-backed securities	—		25		43		1,094		1,162
Collateralized loan obligations	—		1		352		1,121		1,474
Other	1		3		—		—		4
Asset Liability Management securities	1		1,525		3,846		9,568		14,940
Other debt securities:
Direct bank purchase bonds	26		424		612		128		1,190
Other	3		163		—		18		184
Total debt securities available for sale	$	30	$	2,112	$	4,458	$	9,714	$	16,314

93

Note 2—Securities (Continued)

The gross realized gains and losses from sales of available for sale securities for the years ended December 31, 2018, 2017 and 2016 are shown below. The specific identification method is used to calculate realized gains and losses on sales.

	For the Year Ended December 31,
(Dollars in millions)	2018		2017		2016
Gross realized gains	$	8	$	17	$	69
Gross realized losses	—		—		—

Securities Held to Maturity

At December 31, 2018 and 2017, the amortized cost, gross unrealized gains and losses recognized in OCI, carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. Management has asserted the positive intent and ability to hold these securities to maturity.

	December 31, 2018
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	528	$	—	$	—	$	528	$	1	$	2	$	527
U.S. government-sponsored agencies	722		—		—		722		1		—		723
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	8,302		1		96		8,207		11		191		8,027
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,486		—		42		1,444		17		18		1,443
Total securities held to maturity	$	11,038	$	1	$	138	$	10,901	$	30	$	211	$	10,720

	December 31, 2017
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	525	$	—	$	—	$	525	$	3	$	1	$	527
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	7,870		2		31		7,841		15		130		7,726
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,571		—		52		1,519		36		9		1,546
Total securities held to maturity	$	9,966	$	2	$	83	$	9,885	$	54	$	140	$	9,799

Amortized cost is defined as the original purchase cost, adjusted for any accretion or amortization of a purchase discount or premium, less principal payments and any impairment previously recognized in earnings. The carrying amount is the difference between the amortized cost and the amount recognized in OCI. The amount recognized in OCI primarily reflects the unrealized gain or loss at date of transfer from available for sale to the held to maturity classification, net of amortization, which is recorded in interest income on securities.

94

Note 2—Securities (Continued)

The Company's securities held to maturity with a continuous unrealized loss position at December 31, 2018 and 2017 are shown below, separately for periods less than 12 months and 12 months or more.

	December 31, 2018
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. Treasury	$	—	$	—	$	—	$	496	$	—	$	2	$	496	$	—	$	2
U.S. government agency and government-sponsored agencies—residential mortgage backed securities	668		—		11		7,191		96		180		7,859		96		191
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	29		—		—		1,396		42		18		1,425		42		18
Total securities held to maturity	$	697	$	—	$	11	$	9,083	$	138	$	200	$	9,780	$	138	$	211

	December 31, 2017
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. Treasury	$	494	$	—	$	1	$	—	$	—	$	—	$	494	$	—	$	1
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	2,649		—		31		$	4,000	31		99		6,649		31		130
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	19		—		—		1,496		52		9		1,515		52		9
Total securities held to maturity	$	3,162	$	—	$	32	$	5,496	$	83	$	108	$	8,658	$	83	$	140

95

Note 2—Securities (Continued)

The carrying amount and fair value of securities held to maturity by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	December 31, 2018
	Within One Year				Over One Year Through Five Years				Over Five Years Through Ten Years				Over Ten Years				Total
(Dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
U.S. Treasury	$	519	$	518	$	9	$	9	$	—	$	—	$	—	$	—	$	528	$	527
U.S. government-sponsored agencies	—		—		—		—		722		723		—		—		722		723
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	—		—		—		—		1,008		986		7,199		7,041		8,207		8,027
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	46		46		787		797		—		—		611		600		1,444		1,443
Total securities held to maturity	$	565	$	564	$	796	$	806	$	1,730	$	1,709	$	7,810	$	7,641	$	10,901	$	10,720

Securities Pledged and Received as Collateral

At December 31, 2018 and December 31, 2017, the Company pledged $11.9 billion and $12.3 billion of available for sale and trading securities as collateral, respectively, of which $1.3 billion and $1.2 billion, respectively, was permitted to be sold or repledged. These securities were pledged as collateral for derivative liability positions, securities loaned or sold under repurchase agreements, securities lending and to secure public and trust department deposits.

At December 31, 2018 and December 31, 2017, the Company received $33.1 billion and $31.8 billion, respectively, of collateral, of which $33.1 billion and $31.8 billion, respectively, was permitted to be sold or repledged. Of the collateral received, the Company sold or repledged $32.1 billion and $30.4 billion at December 31, 2018 and December 31, 2017, respectively, for derivative asset positions and securities borrowed or purchased under resale agreements.

For further information related to the Company's significant accounting policies on securities pledged as collateral, see Note 1 to the Consolidated Financial Statements in Part II, Item 8. "Financial Statements and Supplementary Data" of this Form 10-K.

96

Note 3—Loans and Allowance for Loan Losses

The following table provides the outstanding balances of loans held for investment at December 31, 2018 and 2017.

	December 31,
(Dollars in millions)	2018			2017
Loans held for investment:
Commercial and industrial	$	24,919		$	23,281
Commercial mortgage	15,354			14,320
Construction	1,613			1,775
Lease financing	1,249			1,533
Total commercial portfolio	43,135			40,909
Residential mortgage	38,439			35,643
Home equity and other consumer loans	4,933			3,462
Total consumer portfolio	43,372			39,105
Total loans held for investment(1)	86,507			80,014
Allowance for loan losses	(474		)	(476		)
Loans held for investment, net	$	86,033		$	79,538

(1)Includes $340 million and $301 million at December 31, 2018 and December 31, 2017, respectively, for net unamortized (discounts)

and premiums and deferred (fees) and costs.

Allowance for Loan Losses

The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment:

	For the Year Ended December 31, 2018
(Dollars in millions)	Commercial			Consumer			Unallocated			Total
Allowance for loan losses, beginning of period	$	360		$	86		$	30		$	476
(Reversal of) provision for loan losses	51			58			(25		)	84
Loans charged-off	(79		)	(41		)	—			(120		)
Recoveries of loans previously charged-off	27			7			—			34
Allowance for loan losses, end of period	$	359		$	110		$	5		$	474

	For the Year Ended December 31, 2017
(Dollars in millions)	Commercial			Consumer			Unallocated		Total
Allowance for loan losses, beginning of period	$	556		$	83		$	—	$	639
(Reversal of) provision for loan losses	(132		)	37			30		(65		)
Other	2			—			—		2
Loans charged-off	(116		)	(39		)	—		(155		)
Recoveries of loans previously charged-off	50			5			—		55
Allowance for loan losses, end of period	$	360		$	86		$	30	$	476

97

Note 3—Loans and Allowance for Loan Losses (Continued)

	For the Year Ended December 31, 2016
(Dollars in millions)	Commercial			Consumer			Unallocated			Total
Allowance for loan losses, beginning of period	$	654		$	49		$	20		$	723
(Reversal of) provision for loan losses	134			44			(20		)	158
Other	2			—			—			2
Loans charged-off	(259		)	(12		)	—			(271		)
Recoveries of loans previously charged-off	25			2			—			27
Allowance for loan losses, end of period	$	556		$	83		$	—		$	639

The following tables show the allowance for loan losses and related loan balances by portfolio segment as of December 31, 2018 and 2017.

	December 31, 2018
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	62	$	13	$	—	$	75
Collectively evaluated for impairment	297		97		5		399
Total allowance for loan losses	$	359	$	110	$	5	$	474
Loans held for investment:
Individually evaluated for impairment	$	450	$	280	$	—	$	730
Collectively evaluated for impairment	42,685		43,092		—		85,777
Total loans held for investment	$	43,135	$	43,372	$	—	$	86,507

	December 31, 2017
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	58	$	15	$	—	$	73
Collectively evaluated for impairment	302		71		30		403
Total allowance for loan losses	$	360	$	86	$	30	$	476
Loans held for investment:
Individually evaluated for impairment	$	544	$	321	$	—	$	865
Collectively evaluated for impairment	40,365		38,784		—		79,149
Total loans held for investment	$	40,909	$	39,105	$	—	$	80,014

Nonaccrual and Past Due Loans

The following table presents nonaccrual loans as of December 31, 2018 and 2017.

	December 31,
(Dollars in millions)	2018		2017
Commercial and industrial	$	269	$	319
Commercial mortgage	12		20
Total commercial portfolio	281		339
Residential mortgage	121		104
Home equity and other consumer loans	19		22
Total consumer portfolio	140		126
Total nonaccrual loans	$	421	$	465
Troubled debt restructured loans that continue to accrue interest	$	299	$	348
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)	$	136	$	229

98

Note 3—Loans and Allowance for Loan Losses (Continued)

The following tables show the aging of the balance of loans held for investment by class as of December 31, 2018 and 2017.

	December 31, 2018
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	26,114	$	18	$	36	$	54	$	26,168
Commercial mortgage	15,333		17		4		21		15,354
Construction	1,593		20		—		20		1,613
Total commercial portfolio	43,040		55		40		95		43,135
Residential mortgage	38,218		175		46		221		38,439
Home equity and other consumer loans	4,893		28		12		40		4,933
Total consumer portfolio	43,111		203		58		261		43,372
Total loans held for investment	$	86,151	$	258	$	98	$	356	$	86,507

	December 31, 2017
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	24,734	$	17	$	63	$	80	$	24,814
Commercial mortgage	14,298		16		6		22		14,320
Construction	1,775		—		—		—		1,775
Total commercial portfolio	40,807		33		69		102		40,909
Residential mortgage	35,453		151		39		190		35,643
Home equity and other consumer loans	3,427		23		12		35		3,462
Total consumer portfolio	38,880		174		51		225		39,105
Total loans held for investment	$	79,687	$	207	$	120	$	327	$	80,014

Loans 90 days or more past due and still accruing interest totaled $23 million and $12 million at December 31, 2018 and 2017, respectively.

99

Note 3—Loans and Allowance for Loan Losses (Continued)

Credit Quality Indicators

Management analyzes the Company's loan portfolios by applying specific monitoring policies and procedures that vary according to the relative risk profile and other characteristics within the various loan portfolios. Loans within the commercial portfolio segment are classified as either pass or criticized. Criticized credits are those that have regulatory risk ratings of special mention, substandard or doubtful; classified credits are those that have regulatory risk ratings of substandard or doubtful. Special mention credits are potentially weak, as the borrower has begun to exhibit deteriorating trends, which, if not corrected, may jeopardize repayment of the loan and result in further downgrade. Substandard credits have well-defined weaknesses, which, if not corrected, could jeopardize the full satisfaction of the debt. A credit classified as doubtful has critical weaknesses that make full collection improbable on the basis of currently existing facts and conditions.

The following tables summarize the loans in the commercial portfolio segment monitored for credit quality based on regulatory risk ratings.

	December 31, 2018
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	25,191	$	355	$	622	$	26,168
Commercial mortgage	15,138		105		111		15,354
Construction	1,542		8		63		1,613
Total commercial portfolio	$	41,871	$	468	$	796	$	43,135

	December 31, 2017
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	23,632	$	435	$	747	$	24,814
Commercial mortgage	14,081		80		159		14,320
Construction	1,632		15		128		1,775
Total commercial portfolio	$	39,345	$	530	$	1,034	$	40,909

The Company monitors the credit quality of its consumer portfolio segment based primarily on payment status. The following tables summarize the loans in the consumer portfolio segment, which exclude $6 million and $8 million of loans covered by FDIC loss share agreements, at December 31, 2018 and 2017, respectively.

	December 31, 2018
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	38,314	$	121	$	38,435
Home equity and other consumer loans	4,912		19		4,931
Total consumer portfolio	$	43,226	$	140	$	43,366

	December 31, 2017
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	35,534	$	104	$	35,638
Home equity and other consumer loans	3,437		22		3,459
Total consumer portfolio	$	38,971	$	126	$	39,097

The Company also monitors the credit quality for substantially all of its consumer portfolio segment using credit scores provided by FICO and refreshed LTV ratios. FICO credit scores are refreshed at least quarterly to monitor the quality of the portfolio. Refreshed LTV measures the principal balance of the loan as a percentage of the estimated current value of the property securing the loan. Home equity loans are evaluated using combined LTV, which measures the principal balance of the combined loans that have liens against the property (including

100

Note 3—Loans and Allowance for Loan Losses (Continued)

unused credit lines for home equity products) as a percentage of the estimated current value of the property securing the loans. The LTV ratios are refreshed on a quarterly basis, using the most recent home pricing index data available for the property location.

The following tables summarize the loans in the consumer portfolio segment based on refreshed FICO scores and refreshed LTV ratios at December 31, 2018 and 2017. These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs.

	December 31, 2018
	FICO scores
(Dollars in millions)	720 and Above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	31,589		$	6,022		$	434		$	38,045
Home equity and other consumer loans	3,349			1,448			52			4,849
Total consumer portfolio	$	34,938		$	7,470		$	486		$	42,894
Percentage of total	82		%	17		%	1		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	December 31, 2017
	FICO scores
(Dollars in millions)	720 and Above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	28,786		$	6,082		$	411		$	35,279
Home equity and other consumer loans	2,404			918			84			3,406
Total consumer portfolio	$	31,190		$	7,000		$	495		$	38,685
Percentage of total	81		%	18		%	1		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	December 31, 2018
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	36,604		$	1,361		$	4		$	75		$	38,044
Home equity loans	1,966			221			12			24			2,223
Total consumer portfolio	$	38,570		$	1,582		$	16		$	99		$	40,267
Percentage of total	96		%	4		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

101

Note 3—Loans and Allowance for Loan Losses (Continued)

	December 31, 2017
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	34,472		$	771		$	4		$	32		$	35,279
Home equity loans	2,052			248			24			33			2,357
Total consumer portfolio	$	36,524		$	1,019		$	28		$	65		$	37,636
Percentage of total	97		%	3		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

Troubled Debt Restructurings

The following table provides a summary of the Company's recorded investment in TDRs as of December 31, 2018 and 2017. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $49 million and $66 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of December 31, 2018 and 2017, respectively.

	December 31,
(Dollars in millions)	2018		2017
Commercial and industrial	$	109	$	202
Commercial mortgage	46		7
Construction	63		128
Total commercial portfolio	218		337
Residential mortgage	196		215
Home equity and other consumer loans	21		25
Total consumer portfolio	217		240
Total restructured loans	$	435	$	577

In 2018, TDR modifications in the commercial portfolio segment were substantially composed of interest rate changes, maturity extensions, forbearance, conversions from revolving lines of credit to term loans, or some combination thereof. In the consumer portfolio segment, modifications were primarily composed of maturity extensions. Charge-offs related to TDR modifications for the year ended December 31, 2018 and December 31, 2017 were de minimis. For the commercial and consumer portfolio segments, the allowance for loan losses for TDRs was measured on an individual loan basis or in pools with similar risk characteristics.

102

Note 3—Loans and Allowance for Loan Losses (Continued)

The following tables provide the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the years ended December 31, 2018 and 2017.

	For the Year Ended   December 31, 2018				For the Year Ended   December 31, 2017
(Dollars in millions)	Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)		Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)
Commercial and industrial	$	165	$	165	$	186	$	186
Commercial mortgage	4		4		5		5
Construction	—		—		152		131
Total commercial portfolio	169		169		343		322
Residential mortgage	9		9		16		16
Home equity and other consumer loans	2		2		3		3
Total consumer portfolio	11		11		19		19
Total	$	180	$	180	$	362	$	341

(1) Represents the recorded investment in the loan immediately prior to the restructuring event.

(2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

The following tables provide the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the years ended December 31, 2018 and 2017, and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due.

	December 31,
(Dollars in millions)	2018		2017
Commercial and industrial	$	—	$	19
Commercial mortgage	—		1
Total commercial portfolio	—		20
Residential mortgage	3		3
Home equity and other consumer loans	—		—
Total consumer portfolio	3		3
Total	$	3	$	23

For loans in the consumer portfolio in which impairment is measured using the present value of expected future cash flows discounted at the loan’s effective interest rate, historical payment defaults and the propensity to redefault are some of the factors considered when determining the allowance for loan losses.

103

Note 3—Loans and Allowance for Loan Losses (Continued)

Loan Impairment

Loans that are individually evaluated for impairment include larger nonaccruing loans within the commercial and industrial, construction, and commercial mortgage loan portfolios and loans modified in a TDR. The Company records an impairment allowance when the value of an impaired loan is less than the recorded investment in the loan.

The following tables show information about impaired loans by class as of December 31, 2018 and 2017.

	December 31, 2018
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	299	$	22	$	321	$	61	$	372	$	39
Commercial mortgage	25		41		66		1		25		41
Construction	—		63		63		—		—		63
Total commercial portfolio	324		126		450		62		397		143
Residential mortgage	175		71		246		12		184		85
Home equity and other consumer loans	22		12		34		1		22		21
Total consumer portfolio	197		83		280		13		206		106
Total	$	521	$	209	$	730	$	75	$	603	$	249

	December 31, 2017
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	287	$	93	$	380	$	57	$	348	$	102
Commercial mortgage	33		3		36		1		33		3
Construction	—		128		128		—		—		128
Total commercial portfolio	320		224		544		58		381		233
Residential mortgage	218		59		277		15		234		69
Home equity and other consumer loans	29		15		44		—		30		24
Total consumer portfolio	247		74		321		15		264		93
Total	$	567	$	298	$	865	$	73	$	645	$	326

104

Note 3—Loans and Allowance for Loan Losses (Continued)

The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during 2018, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	Years Ended December 31,
	2018				2017				2016
(Dollars in millions)	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
Commercial and industrial	$	309	$	12	$	463	$	18	$	531	$	4
Commercial mortgage	60		27		58		41		17		1
Construction	95		8		45		5		—		—
Total commercial portfolio	464		47		566		64		548		5
Residential mortgage	261		13		304		14		258		8
Home equity and other consumer loans	38		4		52		6		31		2
Total consumer portfolio	299		17		356		20		289		10
Total	$	763	$	64	$	922	$	84	$	837	$	15

The following table presents loan transfers from held to investment to held for sale and proceeds from sales of loans during 2018, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	Years Ended December 31,
	2018					2017					2016
(Dollars in millions)	Transfer of loans from held for investment to held for sale, net			Proceeds from sale		Transfer of loans from held for investment to held for sale, net			Proceeds from sale		Transfer of loans from held for investment to held for sale, net		Proceeds from sale
Commercial portfolio	$	47		$	638	$	780		$	926	$	1,632	$	1,182
Consumer portfolio	(3		)	—		(4		)	—		344		344
Total	$	44		$	638	$	776		$	926	$	1,976	$	1,526

Loan Concentrations

The Company's most significant concentrations of credit risk within its loan portfolio include residential mortgage loans, commercial real estate loans, and commercial and industrial loans made to the financial and insurance industry, power and utilities industry, manufacturing industry, and business services industry. At December 31, 2018, the Company had $38 billion in residential mortgage loans, substantially in California. The Company had $16 billion in loans made to the commercial real estate industry and an additional $4 billion in unfunded commitments. At December 31, 2018, the Company had $7 billion in loans made to the financial and insurance industry and an additional $7 billion in unfunded commitments. At December 31, 2018, the Company had $4 billion in loans made to the power and utilities industry and an additional $5 billion in unfunded commitments. At December 31, 2018, the Company had $4 billion in loans made to the manufacturing industry and an additional $3 billion in unfunded commitments. At December 31, 2018, the Company had $3 billion in loans made to the business services industry and an additional $2 billion in unfunded commitments.

105

Note 4—Other Assets

Other Assets

The following table shows the balances of other assets as of December 31, 2018 and 2017.

(Dollars in millions)	December 31, 2018		December 31, 2017
Other investments	$	3,250	$	3,412
Premises and equipment, net	635		610
Software	445		424
Intangible assets	444		377
OREO	1		—
Other	4,845		4,587
Total other assets	$	9,620	$	9,410

Note 5—Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill during 2018 and 2017 are shown in the table below.

(Dollars in millions)	2018		2017
Goodwill, beginning of year	$	3,301	$	3,225
Net change from transferred subsidiaries (1)	—		76
Goodwill, end of year	$	3,301	$	3,301

(1) For additional information on transferred subsidiaries, see Note 21 Related Party Transactions.

For impairment testing, goodwill was assigned to the following operating segments at December 31, 2018 and 2017:

(Dollars in millions)	2018		2017
Regional Bank	$	2,134	$	2,134
U.S. Wholesale & Investment Banking	840		840
Transaction Banking	251		251
MUFG Fund Services	76		76
Goodwill, end of year	$	3,301	$	3,301

The Company reviews its goodwill for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The annual goodwill impairment test was performed as of April 1, 2018 and 2017. Based on these tests, we concluded that goodwill allocated to our reporting units was not impaired at December 31, 2018 or 2017. Fair values of the Company's reporting units exceeded their carrying amounts and did not generally represent a significant risk of goodwill impairment based on current projections and valuations.

106

Note 5—Goodwill and Other Intangible Assets (Continued)

Intangible Assets

The table below reflects the Company's identifiable intangible assets and accumulated amortization at December 31, 2018 and 2017.

	December 31, 2018							December 31, 2017
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core deposit intangibles	$	565	$	(537	)	$	28	$	565	$	(530	)	$	35
Trade names	111		(32		)	79		113		(29		)	84
Customer relationships	238		(63		)	175		238		(47		)	191
Other(1)	18		(15		)	3		19		(16		)	3
Total intangible assets with a definite useful life	$	932	$	(647	)	$	285	$	935	$	(622	)	$	313

(1) December 31, 2018 and December 31, 2017 exclude $159 million and $64 million, respectively, of mortgage servicing rights accounted for at fair value.

Total amortization expense for 2018, 2017 and 2016 was $26 million, $30 million and $28 million, respectively.

Estimated future amortization expense at December 31, 2018 is as follows:

(Dollars in millions)	Core Deposit Intangibles		Trade Name		Customer Relationships		Other		Total Identifiable Intangible Assets
Years ending December 31, :
2019	$	6	$	3	$	16	$	1	$	26
2020	5		3		16		1		25
2021	4		3		15		—		22
2022	4		3		15		—		22
2023	2		3		14		—		19
Thereafter	7		64		99		1		171
Total estimated amortization expense	$	28	$	79	$	175	$	3	$	285

107

Note 6—Variable Interest Entities

In the normal course of business, the Company has certain financial interests in entities which have been determined to be VIEs. Generally, a VIE is a corporation, partnership, trust or other legal structure where the equity investors do not have substantive voting rights, an obligation to absorb the entity’s losses or the right to receive the entity’s returns, or the ability to direct the significant activities of the entity. The following discusses the Company’s consolidated and unconsolidated VIEs.

Consolidated VIEs

The following tables present the assets and liabilities of consolidated VIEs recorded on the Company’s consolidated balance sheets at December 31, 2018 and 2017.

	December 31, 2018
	Consolidated Assets								Consolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	—	$	43	$	43	$	—	$	—
Leasing investments	—		570		122		692		17		17
Total consolidated VIEs	$	—	$	570	$	165	$	735	$	17	$	17

	December 31, 2017
	Consolidated Assets								Consolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	—	$	68	$	68	$	—	$	—
Leasing investments	1		583		158		742		24		24
Total consolidated VIEs	$	1	$	583	$	226	$	810	$	24	$	24

LIHC Investments

The Company sponsors, manages and syndicates twoLIHC investment fund structures. These investments are designed to generate a return primarily through the realization of U.S. federal tax credits and deductions. The Company is considered the primary beneficiary and has consolidated these investments because the Company has the power to direct activities that most significantly impact the funds’ economic performances and also has the obligation to absorb losses of the funds that could potentially be significant to the funds. Neither creditors nor equity investors in the LIHC investments have any recourse to the general credit of the Company, and the Company’s creditors do not have any recourse to the assets of the consolidated LIHC investments.

Leasing Investments

The Company has leasing investments primarily in the wind energy, rail and coal industries. The Company is considered the primary beneficiary and has consolidated these investments because the Company has the power to direct the activities of these entities that significantly impact the entities’ economic performances. The Company also has the right to receive potentially significant benefits or the obligation to absorb potentially significant losses of these investments.

Unconsolidated VIEs

The following tables present the Company’s carrying amounts related to the unconsolidated VIEs at December 31, 2018 and 2017. The tables also present the Company’s maximum exposure to loss resulting from its involvement with these VIEs. The maximum exposure to loss represents the carrying amount of the Company’s involvement plus any legally binding unfunded commitments in the unlikely event that all of the assets in the VIEs become worthless. During 2018, 2017, and 2016, the Company had noncash increases in unfunded commitments on LIHC investments of $87 million, $55 million and $125 million, respectively, included within other liabilities.

108

Note 6—Variable Interest Entities (Continued)

	December 31, 2018
	Unconsolidated Assets										Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	28	$	198	$	976	$	1,202	$	165	$	165	$	1,202
Leasing investments	26		—		19		1,401		1,446		14		14		1,467
Other investments	—		—		—		35		35		—		—		79
Total unconsolidated VIEs	$	26	$	28	$	217	$	2,412	$	2,683	$	179	$	179	$	2,748

	December 31, 2017
	Unconsolidated Assets										Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	29	$	228	$	1,028	$	1,285	$	254	$	254	$	1,284
Leasing investments	1		—		24		1,745		1,770		53		53		1,792
Other investments	—		—		24		26		50		—		—		132
Total unconsolidated VIEs	$	1	$	29	$	276	$	2,799	$	3,105	$	307	$	307	$	3,208

LIHC Investments

The Company makes investments in partnerships and funds formed by third parties. The primary purpose of the partnerships and funds is to invest in low-income housing units and distribute tax credits and tax benefits associated with the underlying properties to investors. The Company is a limited partner investor and is allocated tax credits and deductions, but has no voting or other rights to direct the activities of the funds or partnerships, and therefore is not considered the primary beneficiary and does not consolidate these investments.

The following table presents the impact of the unconsolidated LIHC investments on our consolidated statements of income for the years ended December 31, 2018, 2017 and 2016:

	For the Years Ended December 31,
	2018		2017		2016
(Dollars in millions)
Losses from LIHC investments included in other noninterest expense	$	7	$	13	$	8
Amortization of LIHC investments included in income tax expense	136		185		129
Tax credits and other tax benefits from LIHC investments included in income tax expense	180		193		188

Leasing Investments

The unconsolidated VIEs related to leasing investments are primarily renewable energy investments. Through its subsidiaries, the Company makes equity investments in LLCs established by third party sponsors. The LLCs are created to operate and manage wind, solar, hydroelectric and cogeneration power plant projects. Power generated by the projects is sold to third parties through long-term purchase power agreements. As a limited investor member, the Company is allocated production tax credits and taxable income or losses associated with the projects. The Company has no voting or other rights to direct the significant activities of the LLCs, and therefore is not considered the primary beneficiary and does not consolidate these investments.

Other Investments

The Company has other investments in structures formed by third parties. The Company has no voting or other rights to direct the activities of the investments that would most significantly impact the entities’ performance, and therefore is not considered the primary beneficiary and does not consolidate these investments.

109

Note 7—Deposits

The aggregate amount of time deposits that meet or exceed the FDIC insurance limit was $4.2 billion and $3.1 billion at December 31, 2018 and 2017, respectively.

At December 31, 2018, the Company had $11.7 billion in interest bearing time deposits. Maturity information for all interest bearing time deposits is summarized below.

(Dollars in millions)	December 31, 2018
Due in one year or less	$	7,049
Due after one year through two years	4,032
Due after two years through three years	500
Due after three years through four years	91
Due after four years through five years	66
Due after five years	1
Total	$	11,739

Note 8—Securities Financing Arrangements    

The Company enters into repurchase agreements and securities lending agreements to facilitate customer match-book activity, cover short positions and fund the Company's trading inventory. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with counterparties. The relevant agreements allow for the efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. Under these agreements and transactions, the Company either receives or provides collateral in the form of securities. In many cases, the Company is permitted to sell or repledge these securities held as collateral and use the securities to secure repurchase agreements or enter into securities lending transactions. In certain cases the Company may agree for collateral to be posted to a third party custodian under a tri-party arrangement that enables the Company to take control of such collateral in the event of a counterparty default. Default events generally include, among other things, failure to pay, insolvency or bankruptcy of a counterparty. For additional information related to securities pledged and received as collateral, refer to Note 2 to these consolidated financial statements.

110

Note 8—Securities Financing Arrangements (Continued)

The following tables present the gross obligations for securities sold under agreements to repurchase and securities loaned by remaining contractual maturity and class of collateral pledged as of December 31, 2018 and December 31, 2017.

	December 31, 2018
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	9,416	$	2,945	$	2,991	$	335	$	15,687
U.S. agency securities	264		—		55		—		319
Money market securities	—		—		49		—		49
Asset-backed securities	—		—		282		—		282
Mortgage-backed securities	9,803		1,640		7,569		—		19,012
Corporate bonds	682		130		1,227		—		2,039
Municipal securities	115		245		188		—		548
Equities	387		220		255		—		862
Total	$	20,667	$	5,180	$	12,616	$	335	$	38,798
Securities loaned:
Corporate bonds	$	1	$	—	$	—	$	—	$	1
Equities	92		—		—		—		92
Total	$	93	$	—	$	—	$	—	$	93

	December 31, 2017
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	8,244	$	2,370	$	1,046	$	1,158	$	12,818
U.S. agency securities	115		38		63		—		216
Other sovereign government obligations	—		—		4		—		4
Money market securities	1		—		6		—		7
Asset-backed securities	32		—		164		—		196
Mortgage-backed securities	8,322		4,972		5,859		250		19,403
Corporate bonds	580		620		1,125		—		2,325
Municipal securities	283		—		276		—		559
Equities	416		376		189		—		981
Total	$	17,993	$	8,376	$	8,732	$	1,408	$	36,509
Securities loaned:
Corporate bonds	$	—	$	322	$	—	$	—	$	322
Equities	446		10		101		—		557
Total	$	446	$	332	$	101	$	—	$	879

111

Note 8—Securities Financing Arrangements (Continued)

Offsetting Financial Assets and Liabilities

The Company primarily enters into derivative contracts, repurchase agreements and securities lending agreements with counterparties utilizing standard International Swaps and Derivatives Association Master Agreements and Credit Support Annex Agreements, Master Repurchase Agreements, and Master Securities Lending Agreements, respectively. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features.

The following tables present the offsetting of financial assets and liabilities as of December 31, 2018 and December 31, 2017.

	December 31, 2018
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	871	$	354	$	517	$	14	$	—	$	503
Securities borrowed or purchased under resale agreements	33,974		11,606		22,368		22,291		—		77
Total	$	34,845	$	11,960	$	22,885	$	22,305	$	—	$	580
Financial Liabilities:
Derivative liabilities	$	804	$	322	$	482	$	69	$	—	$	413
Securities loaned or sold under repurchase agreements	38,891		11,606		27,285		26,434		—		851
Total	$	39,695	$	11,928	$	27,767	$	26,503	$	—	$	1,264

	December 31, 2017
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,322	$	607	$	715	$	25	$	—	$	690
Securities borrowed or purchased under resale agreements	31,845		10,951		20,894		20,816		—		78
Total	$	33,167	$	11,558	$	21,609	$	20,841	$	—	$	768
Financial Liabilities:
Derivative liabilities	$	1,127	$	620	$	507	$	142	$	—	$	365
Securities loaned or sold under repurchase agreements	37,388		10,951		26,437		25,639		—		798
Total	$	38,515	$	11,571	$	26,944	$	25,781	$	—	$	1,163

112

Note 9—Commercial Paper and Other Short-Term Borrowings

The following table is a summary of the Company's commercial paper and other short-term borrowings:

(Dollars in millions)	December 31, 2018		December 31, 2017
Debt issued by MUB
Commercial paper, with a weighted average interest rate of 2.39% and 1.26% at December 31, 2018 and December 31, 2017, respectively	$	382	$	347
Federal Home Loan Bank advances, with a weighted average interest rate of 2.52% and 1.42% at December 31, 2018 and December 31, 2017, respectively	7,800		5,750
Total debt issued by MUB	8,182		6,097
Debt issued by other MUAH subsidiaries
Short-term debt due to MUFG Bank, Ltd., with weighted average interest rates of 3.01% and 1.88% at December 31, 2018 and December 31, 2017, respectively	145		168
Short-term debt due to affiliates, with weighted average interest rates of (-0.07)% and (-0.09)% at December 31, 2018 and December 31, 2017, respectively	936		801
Total debt issued by other MUAH subsidiaries	1,081		969
Total commercial paper and other short-term borrowings	$	9,263	$	7,066

At December 31, 2018, Federal Home Loan Bank advances had a weighted average maturity of 168 days. The commercial paper outstanding had a weighted average remaining maturity of 97 days. The short-term debt due to MUFG Bank, Ltd. had a weighted average remaining maturity of 53 days and the short-term debt due to affiliates had a weighted average remaining maturity of 244 days.

Short-term debt due to MUFG Bank, Ltd. consists of both secured and unsecured fixed and floating rate borrowings.

MUSA maintains an uncommitted, unsecured lending facility with Mitsubishi UFJ Securities Holdings Co., Ltd. under which it may borrow up to JPY 160 billion (USD equivalent $1.4 billion). Under the terms of the facility, MUSA can choose to borrow in Japanese Yen or US Dollars. Japanese Yen denominated borrowings include an irrevocable extension option allowing MUSA to extend the maturity of an individual draw by 100 days at any time prior to its original, stated maturity. At December 31, 2018, MUSA had JPY 103 billion ($936 million USD equivalent) drawn under this facility.

113

Note 10—Long-Term Debt

Long-term debt consists of borrowings having an original maturity of one year or more. The following is a summary of the Company's long-term debt:

(Dollars in millions)	December 31, 2018		December 31, 2017
Debt issued by MUAH
Senior debt:
Floating rate senior notes due February 2018. These notes, which bore interest at 0.57% above 3-month LIBOR, had a rate of 1.97% at December 31, 2017	$	—	$	250
Fixed rate 1.625% notes due February 2018	—		450
Fixed rate 2.25% notes due February 2020	—		998
Fixed rate 3.50% notes due June 2022	398		398
Fixed rate 3.00% notes due February 2025	397		496
Senior debt due to MUFG Bank, Ltd:
Floating rate debt due March 2020. This note, which bore interest at 0.86% above 3-month LIBOR, had a rate of 2.45% at December 31, 2017	—		545
Floating rate debt due September 2020. This note, which bore interest at 0.85% above 3-month LIBOR, had a rate of 2.54% at December 31, 2017	—		3,500
Floating rate debt due December 2021. This note, which bears interest at 0.81% above 3-month LIBOR, had a rate of 3.58% at December 31, 2018	1,625		—
Floating rate debt due December 2022. This note, which bears interest at 0.90% above 3-month LIBOR, had a rate of 3.67% at December 31, 2018	3,250		—
Floating rate debt due December 2023. This note, which bears interest at 0.99% above 3-month LIBOR, had a rate of 3.76% at December 31, 2018	1,625		—
Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at December 31, 2018 and at December 31, 2017	24		24
Subordinated debt due to MUFG Bank, Ltd:
Floating rate subordinated debt due December 2023. This note, which bore interest at 1.38% above 3-month LIBOR, had a rate of 3.07% at December 31, 2017	—		300
Junior subordinated debt payable to trusts:
Floating rate note due September 2036. This note had an interest rate of 4.49% at December 31, 2018 and 3.29% at December 31, 2017	36		36
Total debt issued by MUAH	7,355		6,997
Debt issued by MUB
Senior debt:
Fixed rate FHLB of San Francisco advances due between January 2019 and December 2023. These notes bear a combined weighted average rate of 2.66% at December 31, 2018 and 1.51% at December 31, 2017	9,100		1,500
Fixed rate 2.625% notes due September 2018	—		1,000
Fixed rate 2.25% notes due May 2019	498		497
Subordinated debt due to MUFG Bank, Ltd:
Floating rate subordinated debt due June 2023. This note, which bore interest at 1.20% above 3-month LIBOR, had a rate of 2.89% at December 31, 2017	—		750
Other	34		63
Total debt issued by MUB	9,632		3,810
Debt issued by other MUAH subsidiaries
Senior debt due to MUFG Bank, Ltd:
Various floating rate borrowings due between December 2020 and May 2021. These notes, which bear interest above 3-month LIBOR had a weighted average interest rate of 2.80% at December 31, 2018 and 1.78% at December 31, 2017	250		291
Various fixed rate borrowings due between February 2019 and May 2024 with a weighted average interest rate of 1.82% (between 0.14% and 2.44%) at December 31, 2018 and 2.12% (between 1.37% and 2.65%) at December 31, 2017	244		339
Subordinated debt due to Affiliate:
Floating rate borrowings due March 2019. These notes, which bear interest above 6-month LIBOR had an interest rate of 4.13% at December 31, 2018 and 2.95% (between 2.88% and 3.04%) at December 31, 2017	75		185

114

Note 10—Long-Term Debt (Continued)

Non-recourse debt due to MUFG Bank, Ltd:
Various floating rate non-recourse borrowings due between February 2019 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted average interest rate of 4.09% (between 2.75% and 4.17%) at December 31, 2018 and 3.07% (between 1.49% and 5.58%) at December 31, 2017	53		79
Fixed rate non-recourse borrowings due between January 2019 and July 2023 which had an interest rate of 3.05% at December 31, 2018 and 3.27% at December 31, 2017	187		240
Other non-recourse debt:
Various floating rate non-recourse borrowings due between February 2019 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted average interest rate of 4.21% (between 4.17% and 4.48%) at December 31, 2018 and 2.88% (between 2.50% and 3.54%) at December 31, 2017	89		185
Fixed rate non-recourse borrowings due December 2026 which had an interest rate of 5.34% at December 31, 2018 and December 31, 2017	33		36
Total debt issued by other MUAH subsidiaries	931		1,355
Total long-term debt	$	17,918	$	12,162

Senior Debt

Certain of the debt issuances are repayable prior to maturity at the Company’s option at a redemption price equal to 100% of par plus accrued interest. MUAH senior debt was issued under a shelf registration statement with the SEC, which expired as of January 29, 2018. In the fourth quarter of 2018, the Company redeemed all of the $1.0 billion of the senior notes due 2020 and $100 million of the senior notes due 2025.

MUB senior debt is issued as part of MUB’s $12 billion bank note program under which MUB may issue, from time to time, senior unsecured debt obligations with maturities of more than one year from their respective dates of issue and subordinated debt obligations with maturities of five years or more from their respective dates of issue. At December 31, 2018 there is $5.9 billion available for issuance under the program. MUB does not have any firm commitments in place to sell notes under this program.

MUAH Senior Debt due to MUFG Bank, Ltd.

In December 2018, MUAH entered into a Master Internal Total Loss Absorbing Capacity Loan Agreement with MUFG Bank, Ltd., under which MUAH initially borrowed an aggregate of $6.5 billion to comply with the Federal Reserve’s TLAC rule (12 CFR Section 252.165). MUAH may prepay the notes, in whole or in part, two years prior to the stated maturities. The outstanding principal of the notes can be declared due and payable immediately, together with any accrued and unpaid interest, in the event of liquidation, insolvency or similar proceeding with respect to MUAH or all or substantially all of its property. Under certain circumstances, the Federal Reserve may issue a conversion order pursuant to the TLAC rule (12 CFR Section 252.163) that would result in the conversion of any then-outstanding note, in whole or in part, to MUAH equity issued to MUFG Bank, Ltd.

During the first quarter of 2017, MUAH borrowed $3.5 billion from MUFG Bank, Ltd. in the form of a senior loan. This loan and the $545 million loan outstanding at December 31, 2017 were repaid early in conjunction with the December 2018 TLAC borrowing.

Senior Debt due to MUFG Bank, Ltd. by other MUAH subsidiaries

MUAH’s subsidiaries also borrow on a long-term basis from MUFG Bank, Ltd. At December 31, 2018, $250 million of senior debt issued to MUFG Bank, Ltd. was floating rate and linked to customer deposits maintained at MUFG Bank, Ltd.’s New York Branch. An additional $244 million was fixed rate, amortizing funding tied to specific assets owned by MUAH’s subsidiaries.

FHLB Senior Debt

The Bank borrows periodically from the FHLB on a medium-term basis. The advances are secured by certain of the Bank's assets and bear either a fixed or a floating interest rate. The floating rates are tied to the three-month LIBOR plus a spread, reset every 90 days. As of December 31, 2018 and December 31, 2017, the Bank had $44.3 billion and $43.0 billion of pledged loans, respectively, as collateral for short-term and medium-term advances from the FHLB.

115

Note 10—Long-Term Debt (Continued)

Subordinated Debt due to MUFG Bank, Ltd.

The terms and conditions of the subordinated debt due to MUFG Bank, Ltd. were equivalent to those which would apply in a similar transaction with a non-related party. The subordinated debt due to MUFG Bank, Ltd. was a junior obligation to MUAH’s and to the Bank's existing and future outstanding senior indebtedness, and qualified as Tier 2 capital under the federal banking agency risk-based capital guidelines. This debt was repaid early during 2018.

Subordinated Debt due to Affiliate

MUSA maintains subordinated funding provided by an affiliate. This subordinated debt is a junior obligation to MUSA’s existing and future outstanding senior indebtedness.

Non-recourse Debt

Non-recourse debt serves as funding for certain lease financings offered to customers. The lenders are secured by an interest in the underlying leased assets and have no recourse to the Company or its subsidiaries. Interest and principal on this debt is serviced entirely by the underlying assets and is not supported by the Company.

116

Note 11—Fair Value Measurement and Fair Value of Financial Instruments

Valuation Methodologies

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between willing market participants at the measurement date. The Company has an established and documented process for determining fair value for financial assets and liabilities that are measured at fair value on either a recurring or nonrecurring basis. When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair value is based upon valuation techniques that use, where possible, current market-based or independently sourced parameters, such as yield curves, foreign exchange rates, credit spreads, commodity prices and implied volatilities. Valuation adjustments may be made to ensure the financial instruments are recorded at fair value. These adjustments include amounts that reflect counterparty credit quality and that consider the Company's own creditworthiness in determining the fair value of its trading assets and liabilities.

Fair Value Hierarchy

In determining fair value, the Company maximizes the use of observable market inputs and minimizes the use of unobservable inputs. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect the Company's estimate about market data. Based on the observability of the significant inputs used, the Company classifies its fair value measurements in accordance with the three-level hierarchy as defined by GAAP. This hierarchy is based on the quality, observability, and reliability of the information used to determine fair value. The Company’s policy is to recognize transfers in and out of Level 1, 2 and 3 as of the end of a reporting period.

Level 1:    Valuations are based on quoted prices in active markets for identical assets or liabilities. Since the valuations are based on quoted prices that are readily available in an active market, they do not entail a significant degree of judgment.

Level 2:    Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data.

Level 3:    Valuations are based on at least one significant unobservable input that is supported by little or no market activity and is significant to the fair value measurement. Values are determined using pricing models and discounted cash flow models that include management judgment and estimation, which may be significant.

In assigning the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are measured at fair value. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. The level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. Therefore, an item may be classified in Level 3 even though there may be many significant inputs that are readily observable.

Valuation Processes

The Company has established a valuation committee to oversee its valuation framework for measuring fair value and to establish valuation policies and procedures. The valuation committee's responsibilities include reviewing fair value measurements and categorizations within the fair value hierarchy and monitoring the use of pricing sources, mark-to-model valuations, dealer quotes and other valuation processes. The valuation committee reports to the Company's Disclosure & Accounting Committee and meets at least quarterly.

Independent price verification is performed periodically by the Company to test the market data and valuations of substantially all instruments measured at fair value on a recurring basis. As part of its independent price verification procedures, the Company compares pricing sources, tests data variances within certain thresholds and performs variance analysis, utilizing third party valuations and both internal and external models. Results are formally reported on a quarterly basis to the valuation committee.

117

Note 11—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

A description of the valuation methodologies used for certain financial assets and liabilities measured at fair value is as follows:

Recurring Fair Value Measurements:

Trading Account Assets:    Trading account assets are recorded at fair value and primarily consist of securities and derivatives held for trading purposes. See discussion below on securities available for sale, which utilize the same valuation methodology as trading account securities. See also discussion below on derivatives valuation.

Securities Available for Sale:    Securities available for sale are recorded at fair value based on readily available quoted market prices, if available. When available, these securities are classified as Level 1 and include exchange traded equities. If such quoted market prices are not available, management utilizes third-party pricing services and broker quotations from dealers in the specific instruments. These securities are classified as Level 2 and include U.S. Treasuries, U.S. government-sponsored agencies, RMBS and CMBS, CLOs, and certain other debt securities. If no market prices or broker quotes are available, internal pricing models are used. To the extent possible, these pricing model valuations utilize observable market inputs obtained for similar securities. Typical inputs include LIBOR and U.S. Treasury yield curves, benchmark yields, consensus prepayment estimates and credit spreads. When pricing model valuations use significant unobservable inputs, the securities are classified as Level 3. These other debt securities primarily include direct bank purchase bonds. The valuation of these securities is based upon a return on equity method, which incorporates a market-required return on capital, probability of default and loss severity.

Other Assets:    Other assets included mortgage servicing rights, loans held for sale and derivative contracts. The fair value of the Company's mortgage servicing rights asset is determined using a discounted cash flow model with significant unobservable inputs, primarily influenced by forecasted future servicing revenues and prepayment speed assumptions. The fair value of the Company's loans held for sale is based on secondary market offerings for loans with similar characteristics. Mortgage servicing rights and loans held for sale are classified as Level 3. See discussion below on derivatives.

Derivatives:    The Company's derivatives are primarily traded in over-the-counter markets where quoted market prices are not readily available. The Company values its derivatives using pricing models that are widely accepted in the financial services industry with inputs that are observable in the market or can be derived from or corroborated by observable market data. These models reflect the contractual terms of the derivatives including the period to maturity and market observable inputs such as yield curves and option volatility. Valuation adjustments are made to reflect counterparty credit quality and to consider the creditworthiness of the Company. These derivatives, which are included in trading account assets, trading account liabilities, other assets and other liabilities are generally classified as Level 2. Trading account assets and trading account liabilities include Level 3 derivatives comprised of embedded derivatives contained in market-linked CDs and matched over-the-counter options, whose fair value is obtained through unadjusted third party broker quotes, which incorporate significant unobservable inputs.

Trading Account Liabilities:    Trading account liabilities are recorded at fair value and primarily consist of securities sold, not yet purchased and derivatives. See discussion above on derivatives valuation. Securities sold, not yet purchased consist of U.S. Treasury, U.S. government-sponsored agencies, state and municipal, sovereign government obligations, corporate bonds, ABS and equities and are classified as Level 2, which utilize the same valuation methodology as securities available for sale.

Other Liabilities:    Other liabilities included the FDIC clawback liability and derivative contracts. The fair value of the Company's FDIC clawback liability is determined using a discounted cash flow model with significant unobservable inputs, which include probability of default and loss severity. The FDIC clawback liability is classified as Level 3. See discussion above on derivatives.

Nonrecurring Fair Value Measurements:

Individually Impaired Loans:    Individually impaired loans are valued at the time the loan is identified as impaired based on the present value of the remaining expected cash flows. Because the discount factor applied is based on the loan's original effective yield rather than a current market rate, that present value does not represent fair value. However, as a practical expedient, an impaired loan may be measured based on a loan's

118

Note 11—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

observable market price or the underlying collateral securing the loan (provided the loan is collateral dependent), which does approximate fair value. Collateral may be real estate or business assets, including equipment. The value of collateral is determined based on independent appraisals. Appraised values may be adjusted based on management's historical knowledge, changes in market conditions from the time of valuation, and management's knowledge of the client and the client's business. The loan's market price is determined using market pricing for similar assets, adjusted for management judgment. Impaired loans are reviewed and evaluated at least quarterly for additional impairment and adjusted accordingly. Impaired loans that are adjusted to fair value based on underlying collateral or the loan's market price are classified as Level 3.

Loans Held for Sale:    Residential mortgage and commercial loans held for sale are recorded at the lower of cost or fair value. The fair value of fixed-rate residential loans is based on whole loan forward prices obtained from GSEs. These loans are classified as Level 2. The fair value of commercial loans held for sale may be based on secondary market offerings for loans with similar characteristics. These loan values are classified as Level 3.

Private Equity Investments and Renewable Energy Investments:    Private equity investments and renewable energy investments are recorded either at cost or using the equity method and are evaluated for impairment. The valuation of these investments requires significant management judgment due to the absence of quoted market prices, lack of liquidity and the long-term nature of these assets. When required, the fair value of the investments is estimated using the net asset value or based on the investee's business model, current and projected financial performance, capital needs and our exit strategy. Private equity investments and renewable energy investments are generally classified as Level 3.

Software: Software is valued at the time it is identified as impaired. Fair value is determined using market pricing for similar assets, adjusted for management judgment. Software that is adjusted to fair value is classified as Level 3.

Consolidated LIHC VIE: The fair value of consolidated LIHC VIE investments is determined using a discounted cash flow analysis. Consolidated LIHC VIE investments are generally classified as Level 3.

119

Note 11—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

Fair Value Measurements on a Recurring Basis

The following tables present financial assets and financial liabilities measured at fair value on a recurring basis at December 31, 2018 and 2017, by major category and by valuation hierarchy level.

	December 31, 2018
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment (1)			Fair Value
Assets
Trading account assets(2):
U.S. Treasury securities	$	—		$	2,998		$	—		$	—		$	2,998
U.S. government-sponsored agency securities	—			73			—			—			73
State and municipal securities	—			10			—			—			10
Commercial paper	—			51			—			—			51
Corporate bonds	—			1,367			—			—			1,367
Asset-backed securities	—			299			—			—			299
Mortgage-backed securities	—			5,785			—			—			5,785
Equities	127			—			—			—			127
Interest rate derivative contracts	9			522			—			(130		)	401
Commodity derivative contracts	—			25			—			(24		)	1
Foreign exchange derivative contracts	1			259			—			(170		)	90
Equity derivative contracts	9			—			13			(11		)	11
Total trading account assets	146			11,389			13			(335		)	11,213
Securities available for sale(3):
U.S. Treasury	—			3,429			—			—			3,429
Residential mortgage-backed securities:
U.S. government and government-sponsored agencies	—			8,007			—			—			8,007
Privately issued	—			864			—			—			864
Privately issued - commercial mortgage-backed securities	—			1,162			—			—			1,162
Collateralized loan obligations	—			1,474			—			—			1,474
Other	—			4			—			—			4
Other debt securities:
Direct bank purchase bonds	—			—			1,190			—			1,190
Other	—			43			141			—			184
Total securities available for sale	—			14,983			1,331			—			16,314
Other assets:
Mortgage servicing rights(2)	—			—			159			—			159
Loans held for sale(2)	—			—			117			—			117
Interest rate hedging contracts(3)	—			6			—			(3		)	3
Other derivative contracts(2)	—			26			1			(16		)	11
Equity securities(2)	9			—			—			—			9
Total other assets	9			32			277			(19		)	299
Total assets	$	155		$	26,404		$	1,621		$	(354	)	$	27,826
Percentage of total	—		%	95		%	6		%	(1		)%	100		%
Percentage of total Company assets	—		%	16		%	1		%	—		%	17		%
Liabilities
Trading account liabilities(2):
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	2,753		$	—		$	—		$	2,753
Commercial paper	—			10			—			—			10
Corporate bonds	—			717			—			—			717
Equities	70			—			—			—			70
Trading derivatives:
Interest rate derivative contracts	55			545			—			(262		)	338
Commodity derivative contracts	—			18			—			(4		)	14
Foreign exchange derivative contracts	—			168			—			(56		)	112
Equity derivative contracts	—			—			13			—			13
Total trading account liabilities	125			4,211			13			(322		)	4,027
Other liabilities:
FDIC clawback liability(2)	—			—			116			—			116
Other derivative contracts(2)	—			3			2			—			5
Total other liabilities	—			3			118			—			121
Total liabilities	$	125		$	4,214		$	131		$	(322	)	$	4,148
Percentage of total	3		%	102		%	3		%	(8		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	—		%	3		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

(2) Fair value through net income

(3) Fair value through other comprehensive income

120

Note 11—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

	December 31, 2017
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment (1)			Fair Value
Assets
Trading account assets(2):
U.S. Treasury securities	$	—		$	1,926		$	—		$	—		$	1,926
U.S. government-sponsored agency securities	—			118			—			—			118
State and municipal securities	—			11			—			—			11
Commercial paper	—			7			—			—			7
Other sovereign government obligations	—			8			—			—			8
Corporate bonds	—			1,054			—			—			1,054
Asset-backed securities	—			199			—			—			199
Mortgage-backed securities	—			6,339			—			—			6,339
Equities	193			—			—			—			193
Interest rate derivative contracts	7			870			1			(353		)	525
Commodity derivative contracts	—			50			—			(49		)	1
Foreign exchange derivative contracts	—			249			1			(68		)	182
Equity derivative contracts	2			—			137			(135		)	4
Total trading account assets	202			10,831			139			(605		)	10,567
Securities available for sale(3):
U.S. Treasury	—			3,252			—			—			3,252
Residential mortgage-backed securities:
U.S government and government-sponsored agencies	—			9,208			—			—			9,208
Privately issued	—			694			—			—			694
Privately issued - commercial mortgage-backed securities	—			822			—			—			822
Collateralized loan obligations	—			1,905			—			—			1,905
Other	—			5			—			—			5
Other debt securities:
Direct bank purchase bonds	—			—			1,503			—			1,503
Other	—			68			96			—			164
Equity securities	10			—			—			—			10
Total securities available for sale	10			15,954			1,599			—			17,563
Other assets:
Mortgage servicing rights(2)	—			—			64			—			64
Interest rate hedging contracts(3)	—			2			—			—			2
Other derivative contracts(2)	—			2			1			(2		)	1
Total other assets	—			4			65			(2		)	67
Total assets	$	212		$	26,789		$	1,803		$	(607	)	$	28,197
Percentage of total	1		%	95		%	6		%	(2		)%	100		%
Percentage of total Company assets	—		%	17		%	1		%	—		%	18		%
Liabilities
Trading account liabilities(2):
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	2,709		$	—		$	—		$	2,709
Other sovereign government obligations	—			7			—			—			7
Corporate bonds	—			348			—			—			348
Equities	35			—			—			—			35
Trading derivatives:
Interest rate derivative contracts	3			643			—			(382		)	264
Commodity derivative contracts	—			33			—			(20		)	13
Foreign exchange derivative contracts	1			144			1			(66		)	80
Equity derivative contracts	7			—			137			—			144
Total trading account liabilities	46			3,884			138			(468		)	3,600
Other liabilities:
FDIC clawback liability(2)	—			—			113			—			113
Interest rate hedging contracts(3)	—			149			—			(149		)	—
Other derivative contracts(2)	—			3			6			(3		)	6
Total other liabilities	—			152			119			(152		)	119
Total liabilities	$	46		$	4,036		$	257		$	(620	)	$	3,719
Percentage of total	1		%	109		%	7		%	(17		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	—		%	3		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

(2) Fair value through net income

(3) Fair value through other comprehensive income

121

Note 11—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2018 and 2017. Level 3 securities available for sale at December 31, 2018 primarily consist of direct bank purchase bonds.

	For the Year Ended
	December 31, 2018
(Dollars in millions)	Trading Assets			Securities Available for Sale			Other Assets			Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	139		$	1,600		$	65		$	(138	)	$	(119	)
Total gains (losses) (realized/unrealized):
Included in income before taxes	(10		)	—			(8		)	9			1
Included in other comprehensive income	—			(9		)	—			—			—
Purchases/additions	—			126			220			—			—
Settlements	(116		)	(386		)	—			116			—
Transfers in (out) of level 3	—			—			—			—			—
Asset (liability) balance, end of period	$	13		$	1,331		$	277		$	(13	)	$	(118	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	(10	)	$	—		$	(8	)	$	9		$	1

	For the Year Ended
	December 31, 2017
(Dollars in millions)	Trading Assets			Securities Available for Sale			Other Assets			Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	168		$	1,638		$	24		$	(166	)	$	(121	)
Total gains (losses) (realized/unrealized):
Included in income before taxes	73			—			(3		)	(72		)	2
Included in other comprehensive income	—			(3		)	—			—			—
Purchases/additions	—			83			44			—			—
Settlements	(102		)	(118		)	—			100			—
Asset (liability) balance, end of period	$	139		$	1,600		$	65		$	(138	)	$	(119	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	73		$	—		$	(3	)	$	(72	)	$	2

The following table presents information about significant unobservable inputs related to the Company's significant Level 3 assets and liabilities at December 31, 2018.

	December 31, 2018
(Dollars in millions)	Level 3 Fair Value		Valuation Technique	Significant Unobservable Input(s)	Range of Inputs		Weighted Average
Securities available for sale:
Direct bank purchase bonds	$	1,190	Return on equity	Market-required return on capital	8.0 - 10.0	%	9.5	%
				Probability of default	0.0 - 25.0	%	0.3	%
				Loss severity	10.0 - 60.0	%	22.4	%

The direct bank purchase bonds generally use a return on equity valuation technique. This technique uses significant unobservable inputs such as market-required return on capital, probability of default and loss severity. Increases (decreases) in any of these inputs in isolation would result in a lower (higher) fair value measurement.

122

Note 11—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

Fair Value Measurement on a Nonrecurring Basis

Certain assets may be measured at fair value on a nonrecurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis during the years ended December 31, 2018 and 2017 that were still held on the consolidated balance sheet as of the respective periods ended, the following tables present the fair value of such assets by the level of valuation assumptions used to determine each fair value adjustment.

	December 31, 2018								For the Year Ended December 31, 2018
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans:
Impaired loans	$	151	$	—	$	—	$	151	$	(106	)
Other assets:
Loans held for sale	85		—		—		85		(29		)
Private equity investments	11		—		—		11		(2		)
Renewable energy investments	—		—		—		—		(2		)
Software	—		—		—		—		(4		)
Consolidated LIHC VIE	43		—		—		43		(8		)
Total	$	290	$	—	$	—	$	290	$	(151	)

	December 31, 2017								For the Year Ended December 31, 2017
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans:
Impaired loans	$	79	$	—	$	—	$	79	$	(34	)
Other assets:
Loans held for sale	—		—		—		—		(3		)
Renewable energy investments	—		—		—		—		2
Software	—		—		—		—		(22		)
Consolidated LIHC VIE	66		—		—		66		(21		)
Total	$	145	$	—	$	—	$	145	$	(78	)

Fair Value of Financial Instruments Disclosures

In addition to financial instruments recorded at fair value in the Company's financial statements, the disclosure of the estimated fair value of financial instruments that are not carried at fair value is also required. Excluded from this disclosure requirement are lease financing arrangements, investments accounted for under the equity method, employee pension and other postretirement obligations and all nonfinancial assets and liabilities, including goodwill and other intangible assets such as long-term customer relationships. The fair values presented are estimates for certain individual financial instruments and do not represent an estimate of the fair value of the Company as a whole.

Certain financial instruments that are not recognized at fair value on the consolidated balance sheet are carried at amounts that approximate fair value due to their short-term nature. These financial instruments include cash and due from banks, interest bearing deposits in banks, federal funds sold and purchased, securities borrowed or purchased under resale agreements, securities loaned or sold under repurchase agreements and commercial paper. In addition, the fair value of deposits with no stated maturity, such as noninterest bearing demand deposits, interest bearing checking, and market rate and other savings are deemed to equal their carrying amounts.

123

Note 11—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

Financial instruments for which their carrying amounts do not approximate fair value include securities held to maturity, loans held for investment, interest bearing deposits with stated maturities, certain other short-term borrowings, long-term debt and off-balance sheet instruments.

Securities Held to Maturity:    The fair value of U.S. Treasury, U.S. government agency and government-sponsored agencies securities, including RMBS and CMBS classified as held to maturity are based on unadjusted third party pricing service prices.

Loans Held for Investment:    The fair values of mortgage loans were estimated based on quoted market prices for loans with similar credit and interest rate risk characteristics. The fair values of other loans were estimated based upon the type of loan and maturity and were determined by discounting the future expected cash flows using the current origination rates for similar loans made to borrowers with similar credit ratings and include adjustments for liquidity premiums.

Interest Bearing Deposits:    The fair values of savings accounts and certain money market accounts were based on the amounts payable on demand at the reporting date. The fair value of fixed maturity CDs was estimated using a discounted cash flow calculation that applies current interest rates being offered on certificates with similar maturities.

Commercial Paper and Other Short-Term Borrowings:    The fair values of Federal Reserve Bank term borrowings, FHLB borrowings and term federal funds purchased were estimated using a discounted cash flow calculation that applies current market rates for applicable maturities. The carrying amounts of other short-term borrowed funds were assumed to approximate their fair value due to their limited duration.

Long-Term Debt:    The fair value of senior and subordinated debt was estimated using either a discounted cash flow analysis based on current market interest rates for debt with similar maturities and credit quality or estimated using market quotes. The fair value of junior subordinated debt payable to trusts was estimated using market quotes of similar securities.

Off-Balance Sheet Instruments:    Commitments to extend credit and issued standby and commercial letters of credit are instruments that generate ongoing fees, which are recognized over the term of the commitment period. The Company maintains an allowance for losses on unfunded credit commitments. At December 31, 2018, the carrying amount of these instruments was the amount of deferred fees and the fair value was estimated using a discounted cash flow calculation and reflected the portion of unused commitments expected to become funded. At December 31, 2017, the carrying value and fair value were the carrying amount of the deferred fees plus the related reserve.

124

Note 11—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

The tables below present the carrying amount and estimated fair value of certain financial instruments, all of which are accounted for at amortized cost, classified by valuation hierarchy level as of December 31, 2018 and 2017.

	December 31, 2018
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	8,350	$	8,350	$	8,350	$	—	$	—
Securities borrowed or purchased under resale agreements	22,368		22,368		—		22,368		—
Securities held to maturity	10,901		10,720		—		10,720		—
Loans held for investment (1)	84,805		84,729		—		—		84,729
Other assets	48		48		48		—		—
Liabilities
Time deposits	$	11,739	$	11,714	$	—	$	11,714	$	—
Securities loaned or sold under repurchase agreements	27,285		27,285		—		27,285		—
Commercial paper and other short-term borrowings	9,263		9,263		—		9,263		—
Long-term debt	17,918		17,961		—		17,961		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	120	$	242	$	—	$	—	$	242

(1) Excludes lease financing. The carrying amount is net of the allowance for loan losses.

	December 31, 2017
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	3,392	$	3,392	$	3,392	$	—	$	—
Securities borrowed or purchased under resale agreements	20,894		20,894		—		20,894		—
Securities held to maturity	9,885		9,799		—		9,799		—
Loans held for investment (1)	78,023		79,051		—		—		79,051
Liabilities
Deposits	$	84,787	$	84,743	$	—	$	84,743	$	—
Securities loaned or sold under repurchase agreements	26,437		26,437		—		26,437		—
Commercial paper and other short-term borrowings	7,066		7,066		—		7,066		—
Long-term debt	12,162		12,162		—		12,162		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	174	$	174	$	—	$	—	$	174

(1) Excludes lease financing. The carrying amount is net of the allowance for loan losses.

125

Note 12—Derivative Instruments and Other Financial Instruments Used For Hedging

The Company enters into certain derivative and other financial instruments primarily to assist customers with their risk management objectives and to manage the Company’s exposure to interest rate risk. When entering into derivatives on behalf of customers, the Company generally acts as a financial intermediary by offsetting a significant portion of the market risk for these derivatives with third parties. The Company may also enter into derivatives for other risk management purposes. All derivative instruments are recognized as assets or liabilities on the consolidated balance sheets at fair value.

Counterparty credit risk is inherent in derivative instruments. In order to reduce its exposure to counterparty credit risk, the Company utilizes credit approvals, limits, monitoring procedures and master netting and credit support annex agreements. Additionally, the Company considers counterparty credit quality and the creditworthiness of the Company in estimating the fair value of derivative instruments.

The table below presents the notional amounts and fair value amounts of the Company's derivative instruments reported on the consolidated balance sheets, segregated between derivative instruments designated and qualifying as hedging instruments and derivative instruments not designated as hedging instruments as of December 31, 2018 and December 31, 2017. Asset and liability values are presented gross, excluding the impact of legally enforceable master netting and credit support annex agreements. The fair value of asset and liability derivatives designated and qualifying as hedging instruments and derivatives designated as other risk management are included in other assets and other liabilities, respectively. The fair value of asset and liability trading derivatives are included in trading account assets and trading account liabilities, respectively.

	December 31, 2018						December 31, 2017
			Fair Value						Fair Value
(Dollars in millions)	Notional Amount		Asset Derivatives		Liability Derivatives		Notional Amount		Asset Derivatives		Liability Derivatives
Cash flow hedges
Interest rate contracts	$	674	$	6	$	—	$	6,998	$	2	$	149
Fair value hedges
Interest rate contracts	—		—		—		500		—		—
Not designated as hedging instruments:
Trading
Interest rate contracts	189,478		531		600		132,214		878		646
Commodity contracts	336		25		18		1,244		50		33
Foreign exchange contracts	8,475		260		168		7,053		250		146
Equity contracts	300		22		13		1,496		139		144
Other contracts	127		—		—		4		—		—
Total trading	198,716		838		799		142,011		1,317		969
Other risk management	1,704		27		5		1,345		3		9
Total derivative instruments	$	201,094	$	871	$	804	$	150,854	$	1,322	$	1,127

We recognized net losses of $4 million, $17 million, and $19 million on other risk management derivatives for the years ended December 31, 2018, 2017 and 2016, respectively, which are included in other noninterest income.

Derivatives Designated and Qualifying as Hedging Instruments

The Company uses interest rate derivatives to manage the financial impact on the Company from changes in market interest rates. These instruments are used to manage interest rate risk relating to specified groups of assets and liabilities, primarily LIBOR-based commercial loans and debt issuances. Derivatives that qualify for hedge accounting are designated as either fair value or cash flow hedges.

Cash Flow Hedges

At December 31, 2018, the Company used interest rate floors with a notional amount of $500 million and interest rate swaps with a notional amount of $174 million to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed loans and LIBOR indexed

126

Note 12—Derivative Instruments and Other Financial Instruments Used For Hedging (Continued)

short-term borrowings, respectively. At December 31, 2018, the weighted average remaining life of active cash flow hedges was 2.6 years.

For cash flow hedges, the effective portion of the gain or loss on the hedging instruments is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged cash flows are recognized in net interest income. Gains and losses representing hedge ineffectiveness are recognized in noninterest expense in the period in which they arise. At December 31, 2018, the Company expects to reclassify approximately $89 million of losses from AOCI as a reduction to net interest income during the year ending December 31, 2019. This amount could differ from amounts actually realized due to changes in interest rates, hedge terminations and the addition of other hedges subsequent to December 31, 2018.

The following table presents the amount and location of the net gains and losses recorded in the Company's consolidated statements of income and changes in stockholders' equity for derivative instruments designated as cash flow hedges for the years ended December 31, 2018, 2017 and 2016:

	Gains (Losses) Recognized in OCI (Effective Portion)									Gains (Losses) Reclassified from AOCI into Income (Effective Portion)									Gains (Losses) Recognized in Income (Ineffective Portion)
	For the Years Ended December 31,										For the Years Ended December 31,									For the Years Ended December 31,
(Dollars in millions)	2018			2017			2016			Location	2018			2017		2016			Location	2018			2017		2016
										Interest income	$	(34	)	$	69	$	170
Interest rate contracts	$	(96	)	$	(35	)	$	(26	)	Interest expense	—			—		(3		)	Noninterest expense	$	(1	)	$	3	$	—
Total	$	(96	)	$	(35	)	$	(26	)		$	(34	)	$	69	$	167			$	(1	)	$	3	$	—

Fair Value Hedges

The Company engaged in an interest rate hedging strategy in which one or more interest rate swaps were associated with a specified interest bearing liability, in order to convert the liability from a fixed rate to a floating rate instrument. This strategy mitigated the changes in fair value of the hedged liability caused by changes in the designated benchmark interest rate, LIBOR.

For fair value hedges, any ineffectiveness is recognized in noninterest expense in the period in which it arises. The change in the fair value of the hedged item and the hedging instrument, to the extent completely effective, offsets with no impact on earnings.

The following tables present gains (losses) on the Company's fair value hedges and hedged item for the years ended December 31, 2018, 2017 and 2016:

		For the Year Ended December 31, 2018
(Dollars in millions)		Derivative Instrument			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt		$	(2	)	$	2	$	—
	Total	$	(2	)	$	2	$	—

		For the Year Ended December 31, 2017
(Dollars in millions)		Derivative Instrument			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt		$	(4	)	$	3	$	(1	)
	Total	$	(4	)	$	3	$	(1	)

127

Note 12—Derivative Instruments and Other Financial Instruments Used For Hedging (Continued)

		For the Year Ended December 31, 2016
(Dollars in millions)		Derivative Instrument			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt		$	(2	)	$	2	$	—
	Total	$	(2	)	$	2	$	—

Derivatives Not Designated as Hedging Instruments

Trading Derivatives

Derivative instruments classified as trading are primarily derivatives entered into as an accommodation for customers. Trading derivatives are included in trading assets or trading liabilities with changes in fair value reflected in income from trading account activities. The majority of the Company's derivative transactions for customers were essentially offset by contracts with third parties that reduce or eliminate market risk exposures.

The following table presents the amount of the net gains and losses for derivative instruments classified as trading reported in the consolidated statements of income under the heading trading account activities for the years ended December 31, 2018, 2017 and 2016:

	Gains (Losses) Recognized in Income on Trading Derivatives
	For the Years Ended
(Dollars in millions)	December 31, 2018		December 31, 2017			December 31, 2016
Trading derivatives:
Interest rate contracts	$	95	$	(49	)	$	137
Equity contracts	36		12			40
Foreign exchange contracts	44		43			39
Commodity contracts	—		1			2
Total	$	175	$	7		$	218

Offsetting Financial Assets and Liabilities

The Company primarily enters into derivative contracts with counterparties utilizing standard International Swaps and Derivatives Association Master Agreements and Credit Support Annex Agreements. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features. For additional information related to offsetting of financial assets and liabilities, refer to Note 8 to these Consolidated Financial Statements.

128

Note 13—Accumulated Other Comprehensive Income

The following tables present the change in each of the components of accumulated other comprehensive income and the related tax effect of the change allocated to each component.

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Year Ended December 31, 2018
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	(96	)	$	25		$	(71	)
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	34			(9		)	25
Net change	(62		)	16			(46		)
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	(210		)	55			(155		)
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(8		)	2			(6		)
Amortization of net unrealized (gains) losses on held to maturity securities	28			(7		)	21
Net change	(190		)	50			(140		)
Foreign currency translation adjustment	(3		)	1			(2		)
Pension and other benefits:
Amortization of prior service credit(1)	(41		)	11			(30		)
Recognized net actuarial (gain) loss(1)	96			(25		)	71
Pension and other benefits arising during the year	(231		)	60			(171		)
Net change	(176		)	46			(130		)
Other	(1		)	—			(1		)
Net change in AOCI	$	(432	)	$	113		$	(319	)

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these Consolidated Financial Statements.

129

Note 13—Accumulated Other Comprehensive Income (Continued)

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Year Ended December 31, 2017
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	(35	)	$	13		$	(22	)
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	(69		)	25			(44		)
Net change	(104		)	38			(66		)
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	24			(9		)	15
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(17		)	7			(10		)
Less: accretion of fair value adjustment on securities available for sale	(1		)	—			(1		)
Amortization of net unrealized (gains) losses on held to maturity securities	19			(7		)	12
Net change	25			(9		)	16
Foreign currency translation adjustment	11			(4		)	7
Pension and other benefits:
Amortization of prior service credit (1)	(48		)	19			(29		)
Recognized net actuarial (gain) loss(1)	91			(36		)	55
Pension and other benefits arising during the year	116			(47		)	69
Net change	159			(64		)	95
Net change in AOCI	$	91		$	(39	)	$	52

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these Consolidated Financial Statements.

130

Note 13—Accumulated Other Comprehensive Income (Continued)

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Year Ended December 31, 2016
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	(26	)	$	10		$	(16	)
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	(167		)	68			(99		)
Net change	(193		)	78			(115		)
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	(40		)	15			(25		)
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(69		)	27			(42		)
Less: accretion of fair value adjustment on securities available for sale	(1		)	—			(1		)
Amortization of net unrealized (gains) losses on held to maturity securities	20			(8		)	12
Net change	(90		)	34			(56		)
Foreign currency translation adjustment	3			(1		)	2
Pension and other benefits:
Amortization of prior service credit(1)	(30		)	12			(18		)
Recognized net actuarial (gain) loss(1)	89			(35		)	54
Pension and other benefits arising during the year	(20		)	8			(12		)
Recognized curtailment gain	(2		)	1			(1		)
Net change	37			(14		)	23
Net change in AOCI	$	(243	)	$	97		$	(146	)

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these Consolidated Financial Statements.

The following table presents the change in accumulated other comprehensive loss balances.

(Dollars in millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Securities			Foreign Currency Translation Adjustment			Pension and Other Benefits Adjustment			Other			Accumulated Other Comprehensive Loss
Balance, December 31, 2015	$	38		$	(152	)	$	(24	)	$	(612	)	$	—		$	(750	)
Other comprehensive income before reclassifications	(16		)	(14		)	2			(12		)	—			(40		)
Amounts reclassified from AOCI	(99		)	(42		)	—			35			—			(106		)
Balance, December 31, 2016	$	(77	)	$	(208	)	$	(22	)	$	(589	)	$	—		$	(896	)
Other comprehensive income before reclassifications	(22		)	15			7			69			—			69
Amounts reclassified from AOCI	(44		)	1			—			26			—			(17		)
Subtotal before TCJA reclass	(143		)	(192		)	(15		)	(494		)	—			(844		)
TCJA reclass	(31		)	(41		)	(4		)	(106		)	—			(182		)
Balance, December 31, 2017	$	(174	)	$	(233	)	$	(19	)	$	(600	)	$	—		$	(1,026	)
Other comprehensive income before reclassifications	(71		)	(155		)	(2		)	(171		)	(1		)	(400		)
Amounts reclassified from AOCI	25			15			—			41			—			81
Transfer to additional paid-in capital	—			—			21			—			—			21
Balance, December 31, 2018	$	(220	)	$	(373	)	$	—		$	(730	)	$	(1	)	$	(1,324	)

131

Note 14—Management Stock Plans

The Company adopted the MUAH Plan on June 8, 2015. Under the MUAH Plan, the Company grants restricted stock units settled in ADRs representing shares of common stock of the Company's indirect parent company, MUFG, to key employees at the discretion of the Human Capital Committee of the Board of Directors (the Committee). The Committee determines the number of shares, vesting requirements and other features and conditions of the restricted stock units. Under the MUAH Plan, MUFG ADRs are purchased in the open market upon the vesting of the restricted stock units, through a revocable trust. There is no amount authorized to be issued under the MUAH Plan since all shares are purchased in the open market. These awards generally vest pro-rata on each anniversary of the grant date and become fully vested three years from the grant date, provided that the employee has completed the specified continuous service requirement. Generally, the grants vest earlier if the employee dies, is permanently and totally disabled, retires under certain grant, age and service conditions, or terminates employment under certain conditions. The Company also issues a small number of off-cycle grants each year, primarily for reasons related to recruitment of new employees. The weighted-average service period for grants issued under the MUAH Plan with outstanding restricted stock units as of December 31, 2018 was 3.0 years.

Participants in the MUAH Plan are entitled to “dividend equivalent credits” on their unvested restricted stock units when MUFG pays dividends to its shareholders. The credit is equal to the dividends that the participants would have received on the shares had the shares been issued to the participants when the restricted stock units were granted. "Dividend equivalent credits" arising from grants under the MUAH Plan are paid to participants in shares on an annual basis.

The following table is a rollforward of the restricted stock units under the MUAH Plan for the year ended December 31, 2018:

	Restricted Stock Units
	2018
	Number of Units		Weighted-Average Grant Date Fair Value
Units outstanding, beginning of year	27,838,414		$	5.86
Activity during the year:
Granted	14,667,730		5.89
Vested	(13,198,540	)	5.88
Forfeited	(864,534	)	5.97
Units outstanding, end of year	28,443,070		5.86

The weighted-average grant date fair value of restricted stock units granted during 2017 and 2016 was 6.53 and 4.63, respectively. The total fair value of restricted stock units that vested during the years ended December 31, 2018, 2017, and 2016 was $78 million, $75 million, and $49 million, respectively.

The following table is a summary of the Company's compensation costs, the corresponding tax benefit, and unrecognized compensation costs:

	Years Ended December 31,
(Dollars in millions)	2018		2017		2016
Compensation costs	$	77	$	66	$	67
Tax benefit	20		26		26
Unrecognized compensation costs	110		111		96

At December 31, 2018, approximately $110 million (pretax) of compensation expense related to unvested grants had not yet been charged to net income. Unrecognized compensation costs as of December 31, 2018 are expected to be amortized into compensation expense over a weighted-average period of 1.4 years.

132

Note 15—Employee Pension and Other Postretirement Benefits

Retirement Plan

The Company maintains the MUFG Union Bank, N.A. Retirement Plan (the Pension Plan), which is a noncontributory qualified defined benefit pension plan covering substantially all of the domestic employees of the Company. The Pension Plan provides retirement benefits based on a cash balance formula, with annual pay credits based on a participant's eligible pay multiplied by a percentage determined by their age and years of service, with annual interest credits based on 30-year Treasury bond yields. Employees become eligible for the Pension Plan after 1 year of service, and participants become vested upon completing 3 years of vesting service. Prior to 2017, certain participants earned retirement benefits based on years of credited service and the final average earnings amount, as defined in the Pension Plan; such benefits became fixed as of the effective date of certain Plan amendments implementing the cash balance formula.

The Company's funding policy is to make contributions between the minimum required and the maximum deductible amount as allowed by the Internal Revenue Code. Contributions are intended to provide not only for benefits attributed to services to date, but also for those expected to be earned in the future.

Other Postretirement Benefits

The Company maintains the MUFG Union Bank, N.A. Retiree Health Reimbursement Plan (the HRA Plan), the MUFG Union Bank, N.A. Health Benefit Plan (the Health Plan), and the MUFG Union Bank, N.A. Employee Insurance Plan (the Insurance Plan). Under the HRA Plan, which became effective January 1, 2017, eligible post-65 retirees and dependents receive Company-provided financial support to purchase individual health coverage through annual allocations to a Health Reimbursement Account (HRA) that are designed to keep pace with medical inflation. The Health Plan provides certain healthcare benefits for eligible pre-65 retired employees and dependents; costs are shared between the Company and the retiree at a level of approximately 25% to 50%, depending on the retiree's age and length of service with the Company. The Insurance Plan provides life insurance benefits for those eligible employees who retired prior to January 1, 2001 and is noncontributory. Together, the HRA Plan, the Health Plan, and the Insurance Plan are presented as "Other Benefits Plan." The accounting for the Other Benefits Plan anticipates future cost-sharing changes described above that are consistent with the Company's intent. Assets set aside to cover such obligations are primarily invested in mutual funds and insurance contracts. In April 2014 the Health Benefit Plan was amended to discontinue the availability of retiree health benefits for the majority of employees.

The following table sets forth the fair value of the assets in the Company's Pension Plan and Other Benefits Plan as of December 31, 2018 and 2017.

	Pension Plan						Other Benefits Plan
	Years Ended December 31,						Years Ended December 31,
(Dollars in millions)	2018			2017			2018			2017
Change in plan assets:
Fair value of plan assets, beginning of year	$	3,854		$	3,254		$	288		$	260
Actual return on plan assets	(196		)	608			(18		)	44
Employer contributions	—			115			—			1
Plan participants' contributions	—			—			4			4
Benefits paid	(129		)	(123		)	(19		)	(21		)
Fair value of plan assets, end of year	$	3,529		$	3,854		$	255		$	288

The investment objective for the Company's Pension Plan and Other Benefits Plan, collectively the Plans, is to maximize total return within reasonable and prudent levels of risk. The Plans' asset allocation strategy is the principal determinant in achieving expected investment returns on the Plans' assets. The Pension Plan asset allocation strategy favors equities, with a target allocation of 53% in equity securities, 35% in debt securities, and 12% in real estate investments as of December 31, 2018. The previous targets, until the 4th quarter of 2018, were 63%, 25%, and 12%, respectively. Similarly, the Other Benefits Plan asset allocation strategy favors equities with a target allocation of 70% in equity securities and 30% in debt securities. Additionally, the Other

133

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

Benefits Plan holds an investment in an insurance contract with Talcott Resolution Life Insurance Company, the cash value of which is invested in alignment with the target allocation. Actual asset allocations may fluctuate within acceptable ranges due to market value variability. If market fluctuations cause an asset class to fall outside of its strategic asset allocation range, the portfolio will be re-balanced as appropriate. A core equity position of domestic large cap and small cap stocks will be maintained, in conjunction with a diversified portfolio of international equities and fixed income securities. Plan asset performance is compared against established indexes and peer groups to evaluate whether the risk associated with the portfolio is appropriate for the level of return.

The Company periodically reviews the Plans' strategic asset allocation policy and the expected long-term rate of return for plan assets. The investment return volatility of different asset classes and the liability structure of the plans are evaluated to determine whether adjustments are required to the Plans' strategic asset allocation policy, taking into account the principles established in the Company's funding policy. Management periodically reviews and adjusts the long-term rate of return on assets assumption for the Plans based on the expected long-term rate of return for the asset classes and their weightings in the Plans' strategic asset allocation policy and taking into account the prevailing economic and regulatory climate and practices of other companies both within and outside our industry.

The following table provides the fair value by level within the fair value hierarchy of the Company's period-end assets by major asset category for the Pension Plan and Other Benefits Plan. For information about the fair value hierarchy levels, refer to Note 11 to these consolidated financial statements. The Plans do not hold any equity or debt securities issued by the Company or any related parties.

	December 31, 2018
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Pension Plan Investments:
Cash and cash equivalents	$	—	$	25	$	—	$	25
U.S. government securities	—		382		—		382
Fixed and variable income securities	—		824		—		824
Equity securities	185		6		—		191
Mutual funds	620		—		—		620
Municipal bonds	—		37		—		37
Other	—		20		—		20
Total investments in the fair value hierarchy	$	805	$	1,294	$	—	$	2,099
Investments measured at net asset value (1)							1,420
Investments at fair value							3,519
Accrued dividends and interest receivable							12
Net pending trades							(2		)
Total plan assets							$	3,529

(1) In accordance with ASU No. 2015-07, investments in which fair value was measured based on net asset value per share (or its equivalent) using the practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to total plan assets.

134

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

	December 31, 2017
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Pension Plan Investments:
Cash and cash equivalents	$	—	$	26	$	—	$	26
U.S. government securities	—		195		—		195
Fixed and variable income securities	—		638		—		638
Equity securities	381		7		—		388
Mutual funds	830		—		—		830
Municipal bonds	—		43		—		43
Other	5		11		—		16
Total investments in the fair value hierarchy	$	1,216	$	920	$	—	$	2,136
Investments measured at net asset value (1)							1,704
Investments at fair value							3,840
Accrued dividends and interest receivable							8
Net pending trades							6
Total plan assets							$	3,854

(1) In accordance with ASU No. 2015-07, investments in which fair value was measured based on net asset value per share (or its equivalent) using the practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to total plan assets.

	December 31, 2018
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Other Postretirement Benefits Plan Investments:
Cash and cash equivalents	$	—	$	1	$	—	$	1
U.S. government securities	—		37		—		37
Fixed and variable income securities	—		32		—		32
Equity securities	—		—		—		—
Mutual funds	54		—		—		54
Total investments in the fair value hierarchy	$	54	$	70	$	—	$	124
Investments measured at net asset value (1)							134
Investments at fair value							258
Net pending trades							(3		)
Total plan assets							$	255

(1) In accordance with ASU No. 2015-07, investments in which fair value was measured based on net asset value per share (or its equivalent) using the practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to total plan assets.

135

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

	December 31, 2017
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Other Postretirement Benefits Plan Investments:
Cash and cash equivalents	$	—	$	3	$	—	$	3
U.S. government securities	—		44		—		44
Fixed and variable income securities	—		29		—		29
Equity securities	—		1		—		1
Mutual funds	66		—		—		66
Total investments in the fair value hierarchy	$	66	$	77	$	—	$	143
Investments measured at net asset value (1)							157
Investments at fair value							300
Net pending trades							(12		)
Total plan assets							$	288

(1) In accordance with ASU No. 2015-07, investments in which fair value was measured based on net asset value per share (or its equivalent) using the practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to total plan assets.

The following tables as of December 31, 2018 and 2017 present the Company's Pension Plan and Other Benefits Plan investments in which fair value is measured using net asset value per share (or its equivalent) as a practical expedient.

	December 31, 2018
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Pension Plan Investments
Domestic equity funds	$	789	$	—	Daily	None	None
Real estate funds	415		—		Quarterly	Availability of fund's liquid assets and approval of the board of directors	45-90 days
Real estate funds	7		3		None	Hold until dissolution date	None
International equity funds	159		—		Monthly	None	15 days
Money market funds	50		—		Immediate	None	None
Total	$	1,420	$	3

	December 31, 2017
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Pension Plan Investments
Domestic equity funds	$	1,101	$	—	Daily	None	None
Real estate funds	343		—		Quarterly	Availability of fund's liquid assets and approval of the board of directors	45-90 days
Real estate funds	13		5		None	Hold until dissolution; approximately four to six years from original final closing date	None
International equity funds	228		—		Monthly	None	15 days
Money market funds	19		—		Immediate	None	None
Total	$	1,704	$	5

136

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

	December 31, 2018
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Other Postretirement Benefits Plan Investments
Domestic equity funds	$	87	$	—	Daily	None	None
Pooled separate account - variable life insurance policies	46		—		Quarterly	Proof of death for death claim redemptions	7 business days
Money market funds	1		—		Immediate	None	None
Total	$	134	$	—

	December 31, 2017
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Other Postretirement Benefits Plan Investments
Domestic equity funds	$	100	$	—	Daily	None	None
Pooled separate account - variable life insurance policies	52		—		Quarterly	Proof of death for death claim redemptions	7 business days
Money market funds	5		—		Immediate	None	None
Total	$	157	$	—

A description of the valuation methodologies used to determine the fair value of the Plans' assets included within the tables above is as follows:

Cash and Cash Equivalents

Cash and cash equivalents include short-term investments of government securities and other debt securities with remaining maturities of less than three months. These short-term investments are classified as Level 2 based on unadjusted prices in active markets for similar securities. Money market funds were measured at net asset value (NAV) per share and are included in the tables above showing Plan investments that are measured using NAV per share (or its equivalent) as a practical expedient.

U.S. Government Securities

U.S. government securities include U.S. Treasury securities and U.S. agency mortgage-backed securities. U.S. Treasury securities are fixed income securities that are debt instruments issued by the United States Department of the Treasury. U.S. agency mortgage-backed securities are collateralized by residential mortgage loans and may be prepaid at par prior to maturity. U.S. government securities are classified as Level 2 based on valuations provided by third-party pricing services using quoted market prices in active markets for similar securities.

Fixed and Variable Income Securities

Fixed and variable income securities include a variety of debt instruments, including corporate bonds, private placements and asset-backed securities. These securities are classified as Level 2 based on valuations provided by a third-party pricing services using quoted market prices in active markets for similar securities.

Equity Securities

Equity securities are comprised of common stock and preferred securities. The fair value of common stock is recorded based on quoted market prices obtained from an exchange. These securities are classified as Level 1 based on unadjusted prices for identical instruments in active markets. The fair value of preferred securities is based on discounted cash flow models. These securities are classified as Level 2 based on valuations provided by third-party pricing services using observable market data.

137

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

Real Estate Funds

Real estate funds invest in real estate property with a focus on apartment, office, industrial and retail properties. These investments were measured at NAV per share and are included in the tables above showing Plan investments that are measured using NAV per share (or its equivalent) as a practical expedient.

International Equity Funds

International equity funds invest in equity securities of foreign companies in developed and emerging markets across diverse industries and may seek to track the performance of the MSCI EAFE® or MSCI All-Country World ex-US indices. These investments were measured at NAV per share and are included in the tables above showing Plan investments that are measured using NAV per share (or its equivalent) as a practical expedient.

Domestic Equity Funds

Domestic equity funds invest in equity securities that seek to track the performance of market indexes including the S&P 500 index. These funds are valued using NAV at the end of the period. Mutual funds are classified as Level 1 based on unadjusted prices for identical instruments in active markets. Collective investment funds are included in the tables above showing Plan investments that are measured using NAV per share (or its equivalent) as a practical expedient.

Pooled Separate Account

The pooled separate account refers to private placement, variable life insurance policies with Talcott Resolution Life Insurance Company, a successor to Hartford Life Insurance Company. The cash value of the life insurance is invested in four managed divisions that seek to track the S&P 500, Russell 2000, MSCI EAFE® and Bloomberg Barclays U.S. Aggregate Bond indexes. Each division is valued using quoted market prices of its underlying investments to derive the division's NAV at the end of the period. This investment was measured at NAV per share and is included in the tables above showing Plan investments that are measured using NAV per share (or its equivalent) as a practical expedient.

The following table sets forth the benefit obligation activity and the funded status for each of the Company's plans at December 31, 2018 and 2017. In addition, the table sets forth the over (under) funded status at December 31, 2018 and 2017. This pension benefits table does not include the obligations for Executive Supplemental Benefit Plans (ESBPs).

	Pension Benefits						Other Postretirement Benefits
	Years Ended December 31,						Years Ended December 31,
(Dollars in millions)	2018			2017			2018			2017
Accumulated benefit obligation	$	3,038		$	3,101
Change in benefit obligation
Benefit obligation, beginning of year	$	3,242		$	2,942		$	265		$	261
Service cost	80			71			4			6
Interest cost	100			100			8			8
Plan participants' contributions	—			—			4			4
Actuarial loss/(gain)	(246		)	252			(21		)	6
Effect of plan amendments	—			—			—			—
Medicare Part D subsidy	—			—			1			1
Benefits paid	(129		)	(123		)	(19		)	(21		)
Benefit obligation, end of year	3,047			3,242			242			265
Fair value of plan assets, end of year	3,529			3,854			255			288
Over (Under) funded status	$	482		$	612		$	13		$	23

The Pension Plan obligation experienced a net gain of $246 million and a net loss of $252 million during 2018 and 2017, respectively, primarily due to changes in the discount rate.  The discount rate decreased from 3.98% at December 31, 2016 to 3.48% at December 31, 2017 and increased to 4.12% at December 31, 2018. 

138

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

The Other Benefits Plan obligation experienced a net gain of $21 million and a net loss of $6 million during 2018 and 2017, respectively, primarily due to changes in the discount rate.  The discount rate decreased from 3.81% at December 31, 2016 to 3.37% at December 31, 2017 and increased to 4.01% at December 31, 2018. 

The following table illustrates the changes that were reflected in AOCI during 2018, 2017 and 2016. Pension benefits do not include the ESBPs.

	Pension Benefits						Other Postretirement Benefits
(Dollars in millions)	Net Actuarial (Gain) Loss			Prior Service Credit			Net Actuarial (Gain) Loss			Prior Service Credit
Amounts Recognized in Other Comprehensive Loss:
Balance, December 31, 2015	$	1,027		$	(121	)	$	82		$	(15	)
Arising during the year	133			(76		)	6			(47		)
Recognized in net income during the year	(75		)	18			(10		)	12
Balance, December 31, 2016	$	1,085		$	(179	)	$	78		$	(50	)
Arising during the year	(101		)	—			(19		)	—
Recognized in net income during the year	(79		)	27			(8		)	21
Balance, December 31, 2017	$	905		$	(152	)	$	51		$	(29	)
Arising during the year	218			—			18			—
Recognized in net income during the year	(87		)	26			(5		)	15
Balance, December 31, 2018	$	1,036		$	(126	)	$	64		$	(14	)

At December 31, 2018 and 2017, the following amounts were recognized in accumulated other comprehensive loss for pension, including ESBPs, and other benefits.

	December 31, 2018
	Pension Benefits									Other Postretirement Benefits
(Dollars in millions)	Gross			Tax			Net of Tax			Gross			Tax			Net of Tax
Net actuarial loss	$	1,036		$	273		$	763		$	64		$	18		$	46
Prior service credit	(126		)	(33		)	(93		)	(14		)	(4		)	(10		)
Pension and other postretirement benefits	910			240			670			50			14			36
Executive Supplemental Benefits Plans
Net actuarial loss	32			8			24			—			—			—
Prior service credit	—			—			—			—			—			—
Executive supplemental benefits plans adjustment	32			8			24			—			—			—
Pension and other postretirement benefits, as adjusted	$	942		$	248		$	694		$	50		$	14		$	36

139

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

	December 31, 2017
	Pension Benefits									Other Postretirement Benefits
(Dollars in millions)	Gross			Tax			Net of Tax			Gross			Tax			Net of Tax
Net actuarial loss	$	905		$	238		$	667		$	51		$	14		$	37
Prior service credit	(152		)	(40		)	(112		)	(29		)	(8		)	(21		)
Pension and other postretirement benefits	753			198			555			22			6			16
Executive Supplemental Benefits Plans
Net actuarial loss	40			11			29			—			—			—
Prior service credit	—			—			—			—			—			—
Executive supplemental benefits plans adjustment	40			11			29			—			—			—
Pension and other postretirement benefits, as adjusted	$	793		$	209		$	584		$	22		$	6		$	16

Pension Benefits

Our pre-tax net actuarial losses increased$157 million in 2018 from 2017. At December 31, 2018, the net actuarial loss totaled $910 million, which is net of $126 million in prior service credits. In addition, $214 million, representing the deficiency of the fair value of plan assets over the market-related value of plan assets, is recognized separately through the asset smoothing method over four years. $447 million of loss is subject to amortization over approximately eight years, and the prior service credits are being amortized until 2022 and 2025. The cumulative net actuarial loss resulted primarily from differences between expected and actual rate of return on plan assets and the discount rate. Included in our 2019 net periodic pension cost will be $62 million of amortization related to net actuarial losses. We estimate that our total 2019 net periodic pension cost will be a credit of approximately $27 million, assuming no contributions in 2019. The 2019 estimate for net periodic pension cost was actuarially determined using the individual spot rates of 4.19% for service cost and 3.9% for interest cost, an expected return on plan assets of 7.0% and an expected compensation increase assumption of 5.1%.

A 50 basis point increase in the discount rate or in the expected return on plan assets would decrease the 2019 periodic pension cost by $25 million and $18 million, respectively, while a 50 basis point increase in the rate of future compensation levels would increase the 2019 periodic pension cost by $1 million. A 50 basis point decrease in the discount rate or in the expected return on plan assets would increase the 2019 periodic pension cost by $27 million and $18 million, respectively, while a 50 basis point decrease in the rate of future compensation levels would decrease the 2019 periodic pension cost by $1 million.

Estimated Future Benefit Payments and Subsidies

The following pension and postretirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next 10 years. This table does not include the ESBPs.

(Dollars in millions)	Pension Benefits		Postretirement Benefits
Years ending December 31,
2019	$	140	$	17
2020	147		17
2021	153		18
2022	160		18
2023	166		18
Years 2024 - 2028	914		82

The following tables summarize the weighted average assumptions used in computing the present value of the benefit obligations and the net periodic benefit cost.

140

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

	Pension Benefits				Other Postretirement Benefits
	Years Ended December 31,				Years Ended December 31,
	2018		2017		2018		2017
Discount rate in determining net periodic benefit cost
For service cost	3.26	%	3.79	%	3.49	%	3.97	%
For interest cost	3.16		3.42		3.02		3.19
Discount rate in determining benefit obligations at year end	4.12		3.48		4.01		3.37
Rate of increase in future compensation levels for determining net periodic benefit cost	4.70		4.70		n/a		n/a
Rate of increase in future compensation levels for determining benefit obligations at year end	5.10		4.70		n/a		n/a
Expected return on plan assets	7.50		7.50		7.50		7.50
Cash balance crediting rate for determining net periodic benefit cost	2.74		3.06		n/a		n/a
Cash balance crediting rate for determining benefit obligations at year end	3.02		2.74		n/a		n/a

	Pension Benefits									Other Postretirement Benefits									ESBPs
	Years Ended December 31,									Years Ended December 31,									Years Ended December 31,
(Dollars in millions)	2018			2017			2016			2018			2017			2016			2018		2017		2016
Components of net periodic benefit cost:
Service cost	$	80		$	71		$	91		$	4		$	6		$	8		$	—	$	—	$	2
Interest cost	100			100			103			8			8			9			3		3		2
Expected return on plan assets	(268		)	(254		)	(235		)	(21		)	(19		)	(19		)	—		—		—
Amortization of prior service credit	(26		)	(27		)	(18		)	(15		)	(21		)	(12		)	—		—		—
Recognized net actuarial loss	87			79			75			5			8			10			3		4		3
Curtailment gain	—			—			—			—			—			—			—		—		(2		)
Total net periodic benefit cost	$	(27	)	$	(31	)	$	16		$	(19	)	$	(18	)	$	(4	)	$	6	$	7	$	5

The Company's assumed weighted-average healthcare cost trend rates are as follows.

	Years Ended December 31,
	2018		2017		2016
Healthcare cost trend rate assumed for next year	4.44	%	4.44	%	4.64	%
Rate to which cost trend rate is assumed to decline (the ultimate trend rate)	3.94	%	3.94	%	3.96	%
Year the rate reaches the ultimate trend rate	2027		2026		2026

Executive Supplemental Benefit Plans

The Company has several frozen ESBPs, which provide covered participants with supplemental retirement benefits. The plans are nonqualified defined benefit plans and unfunded. The accrued liability for ESBPs included in other liabilities on the Company's consolidated balance sheets was $89 million and $98 million at December 31, 2018 and 2017, respectively.

141

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

Section 401(k) Savings Plans

The Company has a defined contribution plan authorized under Section 401(k) of the Internal Revenue Code. All benefits-eligible employees are eligible to participate in the plan. Employees may contribute up to 75% of their eligible compensation on a pre-tax or Roth basis, or up to 10% of their eligible compensation on an after-tax basis, through payroll deductions, to a combined maximum of 75% of eligible compensation, subject to statutory limits. The Company makes a matching contribution equal to 100% of every pre-tax or Roth dollar an employee contributes on the first 3% of the employee's eligible compensation and 50% of every pre-tax or Roth dollar an employee contributes on the next 2% of the employee's eligible compensation, for a maximum matching opportunity of 4%. Company matching contributions are credited to eligible participants' accounts annually following year-end. Matching contributions are fully vested when credited. All employer contributions are tax deductible by the Company. The Company's combined matching contribution expense was $59 million, $55 million and $48 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Note 16—Other Noninterest Income and Noninterest Expense

The detail of other noninterest income is as follows.

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Gain (loss) on sales	$	16		$	26		$	79
Fund administration fees	100			46			22
Other fee income	100			69			59
Losses on renewable energy investments	(235		)	(58		)	(37		)
Other	134			157			136
Total other noninterest income	$	115		$	240		$	259

The detail of other noninterest expense is as follows.

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Fees to affiliates	$	115		$	105		$	100
Expenses of the LIHC consolidated VIEs	24			43			68
Net periodic pension cost, excluding service cost	(124		)	(119		)	(84		)
Other	394			360			311
Total other noninterest expense	$	409		$	389		$	395

142

Note 17—Income Taxes

The following table is an analysis of the effective tax rate:

	Years Ended December 31,
(Dollars in millions)	2018		2017		2016
Federal income tax rate	21	%	35	%	35	%
Net tax effects of:
State income taxes, net of federal income tax benefit	7		5		6
Tax-exempt interest income	(1	)	(1	)	(1	)
Losses from LIHC investments	(2	)	(3	)	(3	)
Amortization of LIHC investments	12		14		10
Tax credits	(25	)	(21	)	(18	)
Effects of US tax law change	(2	)	(8	)	—
State Tax Refunds	(5	)	—		—
Other	—		1		2
Effective tax rate	5	%	22	%	31	%

On December 22, 2017, the Tax Cuts & Jobs Act was signed into law reducing the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of the reduction in the corporate income tax rate, the Company revalued its net deferred tax liabilities at December 31, 2017, resulting in a one-time tax benefit of $101 million.

The components of income tax expense were as follows:

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Current income tax expense:
Federal	$	195		$	257		$	228
State	89			21			105
Foreign	10			(4		)	7
Total current expense	294			274			340
Deferred income tax expense (benefit):
Federal	(173		)	(49		)	58
State	(64		)	52			24
Foreign	(5		)	22			(3		)
Total deferred expense	(242		)	25			79
Total income tax expense	$	52		$	299		$	419

143

Note 17—Income Taxes (Continued)

The components of the Company's net deferred tax balances as of December 31, 2018 and 2017 were as follows:

	December 31,
(Dollars in millions)	2018		2017
Deferred tax assets:
Tax credits and net operating loss carryforwards	$	448	$	310
Allowance for credit losses	251		254
Accrued expense, net	159		178
Unrealized losses on pension and postretirement benefits	260		214
Unrealized net losses on securities available for sale	132		82
Fair value adjustments for valuation of FDIC covered assets	53		61
Unrealized gains/losses on cash flow hedges	78		62
Other	—		—
Total deferred tax assets	1,381		1,161
Deferred tax liabilities:
Leasing and renewable energy	619		769
Intangible assets	59		55
Pension liabilities	365		358
Other	10		7
Total deferred tax liabilities	1,053		1,189
Net deferred tax asset (liability)	$	328	$	(28	)

At December 31, 2018, the U.S. federal tax credit carryforwards were $378 million (net of uncertain tax liability of $25 million), the federal net operating loss carryforward was $16 million, AMT tax credit carryforward was $17 million, state tax credits net of federal benefit was $33 million and state net operating loss carryforwards net of federal benefit was $4 million. If not utilized, the federal net operating loss carryforward, state net operating loss and federal tax credits begin to expire in 2032, 2034 and 2035, respectively. The state tax credits can be carried forward indefinitely. Additionally, as a result of Tax Cuts and Jobs Act, the AMT credit carryforward can generally be used to offset regular income tax liability in fiscal years 2019 through 2021. Any remaining amount is generally fully refundable by fiscal year 2022. The Company’s AMT Credit carryforward is also subject to rules under separate return limitation years.

Deferred tax assets are evaluated for realization based on the existence of sufficient taxable income of the appropriate character. Management has determined that no valuation allowance is required.

The following table reflects the changes in gross unrecognized tax benefits:

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Balance, beginning of year	$	56		$	11		$	8
Gross increases as a result of tax positions taken during prior periods	72			45			—
Gross decreases as a result of tax positions taken during prior periods	—			—			—
Gross increases as a result of tax positions taken during current period	—			2			3
Gross decrease as a result of closed audit years or settlements	(1		)	(2		)	—
Balance, end of year	$	127		$	56		$	11

The amount of unrecognized tax positions that would affect the effective tax rate, if recognized, was $98 million, $33 million and $9 million at December 31, 2018, 2017 and 2016, respectively.

The Company recognizes interest and penalties as a component of income tax expense. As of December 31, 2018, we accrued $2 million in interest and $3 million in penalties. It is reasonably possible that certain tax positions will be resolved within the next 12 months, which would decrease the Company's balance of total unrecognized tax benefits by $23 million with 2017 and 2018 filings.

144

Note 17—Income Taxes (Continued)

The Company is subject to U.S. federal income tax as well as various state and foreign income taxes. With limited exception, the Company is not open to examination for periods before 2015 by U.S. federal taxing authorities and 2014 by state taxing authorities.

Note 18—Regulatory Capital Requirements

The Company and the Bank are subject to various regulatory capital requirements administered by the U.S. federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company's and Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and the Bank's prompt corrective action classification are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors. Prompt corrective action provisions are not applicable to BHCs such as the Company. The Bank is subject to laws and regulations that limit the amount of dividends it can pay to the Company.

Quantitative measures established by regulation to help ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to quarterly average assets (as defined). As of December 31, 2018, management believes the capital ratios of the Bank met all regulatory requirements of "well-capitalized" institutions, which are 10% for the Total risk-based capital ratio and 8.0% for the Tier 1 risk-based capital ratio. Furthermore, management believes, as of December 31, 2018 and 2017, that the Company and the Bank met all capital adequacy requirements to which they are subject.

The Company's and the Bank's capital amounts and ratios are presented in the following tables.

	U.S. Basel III					Minimum Capital Requirement with Capital Conservation Buffer (1)
(Dollars in millions)	Amount		Ratio			Amount		Ratio
Capital Ratios for the Company:
As of December 31, 2018:
Common equity tier 1 capital (to risk-weighted assets)	$	14,256	13.96	%	≥	$	6,508	6.375	%
Tier 1 capital (to risk-weighted assets)	14,256		13.96		≥	8,039		7.875
Total capital (to risk-weighted assets)	14,904		14.60		≥	10,081		9.875
Tier 1 leverage(2)	14,256		8.77		≥	6,502		4.000
As of December 31, 2017:
Common equity tier 1 capital (to risk-weighted assets)	$	15,708	16.31	%	≥	$	5,539	5.750	%
Tier 1 capital (to risk-weighted assets)	15,708		16.31		≥	6,984		7.250
Total capital (to risk-weighted assets)	17,106		17.76		≥	8,910		9.250
Tier 1 leverage(2)	15,708		10.06		≥	6,245		4.000

(1) Beginning January 1, 2018, the minimum capital requirement includes a capital conservation buffer of 1.875%.

(2) Tier 1 capital divided by quarterly average assets (excluding certain disallowed assets, primarily goodwill and other intangibles).

145

Note 18—Regulatory Capital Requirements (Continued)

	U.S. Basel III					Minimum Capital Requirement with Capital Conservation Buffer (1)					To Be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in millions)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Capital Ratios for the Bank:
As of December 31, 2018 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	13,316	14.45	%	≥	$	5,876	6.375	%	≥	$	5,991	6.5	%
Tier 1 capital (to risk-weighted assets)	13,316		14.45		≥	7,258		7.875		≥	7,374		8.0
Total capital (to risk-weighted assets)	13,905		15.09		≥	9,102		9.875		≥	9,217		10.0
Tier 1 leverage(2)	13,316		10.61		≥	5,018		4.000		≥	6,273		5.0
As of December 31, 2017 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	14,028	16.17	%	≥	$	4,987	5.750	%	≥	$	5,637	6.5	%
Tier 1 capital (to risk-weighted assets)	14,028		16.17		≥	6,288		7.250		≥	6,938		8.0
Total capital (to risk-weighted assets)	15,335		17.68		≥	8,023		9.250		≥	8,673		10.0
Tier 1 leverage(2)	14,028		11.78		≥	4,762		4.000		≥	5,953		5.0

(1) Beginning January 1, 2018, the minimum capital requirement includes a capital conservation buffer of 1.875%.

(2) Tier 1 capital divided by quarterly average assets (excluding certain disallowed assets, primarily goodwill and other intangibles).

Note 19—Restrictions on Cash and Due from Banks, Securities, Loans and Dividends

Federal Reserve regulations require the Bank to maintain reserve balances based on the types and amounts of deposits received. The required reserve balances were $348 million and $475 million at December 31, 2018 and 2017, respectively.

See Note 2 to these consolidated financial statements for the carrying amounts of securities that were pledged as collateral to secure public and trust deposits and for other transactions as required by contract or law. See Note 10 to these consolidated financial statements for the carrying amounts of loans and securities that were pledged as collateral for borrowings, including those pledged to the Federal Reserve Bank and FHLB.

The Federal Reserve Act restricts the amount of credit transactions and the terms of both credit and non-credit transactions between a bank and its non-bank affiliates. Such transactions may not exceed 10% of the bank's capital and surplus (which for this purpose represents Tier 1 and Tier 2 capital, as calculated under the risk-based capital guidelines, plus the balance of the allowance for loan losses excluded from Tier 2 capital) with any single non-bank affiliate and 20% of the bank's capital and surplus with all its non-bank affiliates. Transactions that are extensions of credit may require collateral to be held to provide added security to the bank. See Note 18 to these consolidated financial statements for further discussion of risk-based capital. At December 31, 2018, $80 million of notes payable remained outstanding from Bankers Commercial Corporation.

The declaration of a dividend by the Bank to the Company is subject to the approval of the OCC if the total of all dividends declared in the current calendar year plus the preceding two years exceeds the Bank's total net income in the current calendar year plus the preceding two years. The payment of dividends is also limited by minimum capital requirements imposed on national banks by the OCC.

At December 31, 2018, MUSA had $17 million of cash segregated in a special reserve account for the exclusive benefit of customers pursuant to Customer Protection Rule 15c3-3 of the Securities and Exchange Act of 1934.

146

Note 20—Commitments, Contingencies and Guarantees

The following table summarizes the Company's commitments:

(Dollars in millions)	December 31, 2018
Commitments to extend credit	$	33,487
Issued standby and commercial letters of credit	4,852
Commitments to enter into forward-starting resale agreements	877
Other commitments	493

Commitments to extend credit are legally binding agreements to lend to a customer provided there are no violations of any condition established in the contract. Commitments have fixed expiration dates or other termination clauses and may require maintenance of compensatory balances. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements.

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit are generally contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate foreign or domestic trade transactions. The majority of these types of commitments have terms of 1 year or less. At December 31, 2018, the carrying amount of the Company's standby and commercial letters of credit totaled $4 million. Estimated exposure to loss related to these commitments is covered by the allowance for losses on unfunded commitments. The carrying amounts of the standby and commercial letters of credit and the allowance for losses on unfunded credit commitments are included in other liabilities on the consolidated balance sheet.

The credit risk involved in issuing loan commitments and standby and commercial letters of credit is essentially the same as that involved in extending loans to customers and is represented by the contractual amount of these instruments. Collateral may be obtained based on management's credit assessment of the customer.

Other commitments include collateralized financing activities, commitments to fund principal investments, other securities, and residual value guarantees.

Principal investments include direct investments in private and public companies. The Company issues commitments to provide equity and mezzanine capital financing to private and public companies through direct investments. The timing of future cash requirements to fund such commitments is generally dependent on the investment cycle. This cycle, the period over which privately held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial offering, can vary based on overall market conditions as well as the nature and type of industry in which the companies operate.

The Company occasionally enters into financial guarantee contracts where a premium is received from another financial institution counterparty to guarantee a portion of the credit risk on interest rate swap contracts entered into between the financial institution and its customer. The Company becomes liable to pay the financial institution only if the financial institution is unable to collect amounts owed to them by their customer. As of December 31, 2018, the current exposure to loss under these contracts totaled $9 million, and the maximum potential exposure to loss in the future was estimated at $35 million.

The Company is subject to various pending and threatened legal actions that arise in the normal course of business. The Company maintains liabilities for losses from legal actions that are recorded when they are determined to be both probable in their occurrence and can be reasonably estimated. Management believes the disposition of all claims currently pending, including potential losses from claims that may exceed the liabilities recorded, and claims for loss contingencies that are considered reasonably possible to occur, will not have a material effect, either individually or in the aggregate, on the Company's consolidated financial condition, results of operations or liquidity.

147

Note 21—Related Party Transactions

MUAH is a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. and MUFG Securities Americas Inc. It is owned by MUFG Bank, Ltd. and MUFG. MUFG Bank, Ltd. is a wholly-owned subsidiary of MUFG.

On July 1, 2016, MUFG designated MUAH as its IHC in accordance with the requirements of the U.S. Federal Reserve Board’s final rules for Enhanced Prudential Standards and transferred interests in substantially all its U.S. subsidiaries to the IHC. On July 1, 2017, MUFG transferred interests in its remaining U.S. subsidiaries to MUAH. The transferred subsidiaries had assets of $1.0 billion, including goodwill and intangibles of $196 million, and liabilities of $601 million, all of which were transferred at carrying value. In consideration for the transferred assets and liabilities, MUAH issued 3,267,433 shares to MUFG Bank, Ltd. and MUFG.

The Company provides various business, banking, financial, administrative and support services, and facilities for MUFG Bank, Ltd. in connection with the operation and administration of MUFG Bank, Ltd.'s business in the U.S. (including MUFG Bank, Ltd.'s U.S. branches). The Bank and MUFG Bank, Ltd. participate in a master services agreement whereby the Bank earns fee income in exchange for services and facilities provided.

In addition to the above, the Company conducts transactions with affiliates which include MUFG Bank, Ltd., MUFG and other entities which are directly or indirectly owned by MUFG. The transactions include capital market transactions, facilitating securities transactions, secured financing transactions, advisory services, clearing and operational support. Under service level agreements the Company provides services to and receives services from various affiliates. The Company also has referral agreements with its affiliates and pays referral fees from investment banking revenue earned.

Related party transactions reflect market-based pricing. These transactions are subject to federal and state statutory and regulatory restrictions and limitations.

The tables and discussion below represent the more significant related party balances and income (expenses) generated by related party transactions.

As of December 31, 2018 and December 31, 2017, assets and liabilities with affiliates consisted of the following:

(Dollars in millions)	December 31, 2018		December 31, 2017
Assets:
Cash and cash equivalents	$	80	$	119
Securities borrowed or purchased under resale agreements	1,913		3,530
Other assets	146		223
Liabilities:
Deposits	$	451	$	362
Securities loaned or sold under repurchase agreements	148		102
Commercial paper and other short-term borrowings	1,081		969
Long-term debt	7,333		6,251
Other liabilities	69		61

148

Note 21—Related Party Transactions (Continued)

Revenues and expenses with affiliates for the years ended 2018, 2017, and 2016 were as follows:

	Years Ended December 31,
(Dollars in millions)	2018		2017		2016
Interest Income
Securities borrowed or purchased under resale agreements	$	66	$	41	$	26
Other	2		1		—
Interest Expense
Deposits	3		5		—
Commercial paper and other short-term borrowings	2		15		24
Long-term debt	171		114		69
Securities loaned or sold under repurchase agreements	18		6		2
Noninterest Income
Fees from affiliates	1,213		866		957
Other, net	1		13		(28		)
Noninterest Expense
Other	115		112		95

During 2018, the Company sold loans to affiliates for gross proceeds of $542 million, resulting in gains on sale of $2.1 million. During 2018, the Company purchased loans from affiliates for $314 million.

For additional information regarding the debt due to affiliates, see Note 9 and Note 10 to our Consolidated Financial Statements included in this Form 10-K.

At December 31, 2018, the Company had $1.4 billion in uncommitted, unsecured borrowing facilities with affiliates.

At December 31, 2018 and December 31, 2017, the Company had derivative contracts with affiliates totaling $4 billion and $3 billion, respectively, in notional balances, with $96 million and $2.4 million in net unrealized gains at December 31, 2018 and December 31, 2017, respectively.

An affiliate extends guarantees on liabilities arising out of or in connection with agreements with certain counterparties. There was no amount guaranteed at December 31, 2018 and December 31, 2017.

Note 22—Business Segments

The Company has four reportable segments: Regional Bank, U.S. Wholesale & Investment Banking, Transaction Banking, and MUSA. The Company uses various management accounting methodologies to measure the performance of its segments. Unlike GAAP, there is no standardized or authoritative guidance for management accounting. Consequently, reported results are not necessarily comparable with those presented by other companies and they are not necessarily indicative of the results that would be reported by the business units if they were separate economic entities.

Methodologies that are applied to the measurement of segment profitability, which are enhanced from time to time, include a funds transfer pricing system, an activity-based costing methodology, other indirect costs and a methodology to allocate the provision for credit losses. In the second quarter of 2018, the Company began measuring the performance of its business segments by reporting revenues and expenses from products and services sold entirely within the business segment that manages the customer relationship. The Company previously applied a “market view” perspective in measuring the business segments, which reported revenues and expenses from products and services sold in both the business segment that provided the product and the business segment that managed the customer relationship. Prior period results have been revised to conform to the current period presentation.

The funds transfer pricing system assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics. A segment receives a credit from Corporate Treasury for its funding sources. Conversely, a segment is assigned a charge by Corporate Treasury to fund its assets.

149

Note 22—Business Segments (Continued)

Certain indirect costs, such as operations and technology expense, are allocated to the segments based on an activity-based costing methodology. Other indirect costs, such as corporate overhead, are allocated to the segments based on internal surveys and metrics that serve as proxies for estimated usage. During the normal course of business, the Company occasionally changes or updates its management accounting methodologies or organizational structure. Certain non-bank subsidiaries, including MUSA, are reported based on their GAAP results.

Regional Bank

The Regional Bank provides banking products and services to individual and business customers in California, Washington and Oregon through five major business lines.

Consumer Banking serves consumers and small businesses through 343 full-service branches, digital channels, call centers, ATMs and alliances with other financial institutions. Products and services include checking and other deposit accounts; residential mortgage loans; consumer loans; home equity lines of credit; credit cards; bill and loan payment services; and merchant services.

Commercial Banking provides commercial and asset-based loans to clients across a wide range of industries with annual revenues up to $1 billion. By working with the Company's other segments, Commercial Banking clients also have access to non-credit products and services including global treasury management, capital markets solutions, foreign exchange and interest rate risk and commodity risk management products and services.

Real Estate Industries serves professional real estate investors and developers with products such as construction loans, commercial mortgages, bridge financing and unsecured financing. Property types supported include apartment, office, retail, industrial and single-family residential on the West Coast and in select metropolitan areas across the country. Real Estate Industries also makes tax credit investments in affordable housing projects through its Community Development Finance unit referenced as LIHC investments. By working with the Company's other segments, Real Estate Industries offers its clients a range of non-credit products and services including global treasury management, capital markets solutions, foreign exchange and interest rate risk and commodity risk management products and services.

Wealth Markets serves corporate, institutional, non-profit and individual clients. Capabilities include Wealth Planning / Trust & Estate Services; Investment Management through HighMark Capital Management, Inc., an SEC-registered investment advisory firm wholly-owned by the bank; Brokerage Services through UnionBanc Investment Services, LLC, an SEC-registered broker-dealer/investment advisory firm wholly-owned by the bank; and Private Wealth Management.

PurePoint Financial serves consumers through a national deposit platform offering savings accounts and CD products to customers through an online platform with services provided through a call center and a network of financial centers in New York, Florida, Illinois and Texas.

U.S. Wholesale & Investment Banking

U.S. Wholesale & Investment Banking delivers the full suite of MUAH products and services to large and mid-corporate customers. The segment employs an industry-focused strategy including dedicated coverage teams in General Industries, Power and Utilities, Oil and Gas, Telecom and Media, Technology, Healthcare and Nonprofit, Public Finance, and Financial Institutions (predominantly Insurance and Asset Managers). U.S. Wholesale & Investment Banking provides customers general corporate credit and structured credit services, including project finance, leasing and equipment finance, commercial finance, funds finance and securitizations. By working with the Company's other segments, U.S. Wholesale & Investment Banking offers its customers a range of noncredit services, which include global treasury management, capital market solutions, and various foreign exchange, interest rate risk and commodity risk management products.

Transaction Banking

Transaction Banking works alongside the Company's other segments to provide working capital management and asset servicing solutions, including deposits and treasury management, trade finance, and

150

Note 22—Business Segments (Continued)

institutional trust and custody, to the Company's customers. The client base consists of financial institutions, corporations, government agencies, insurance companies, mutual funds, investment managers and non-profit organizations.

MUFG Securities Americas

MUSA is MUAH's broker-dealer subsidiary which engages in capital markets origination transactions, private placements, collateralized financings, securities borrowing and lending transactions, and domestic and foreign debt and equity securities transactions.

Other

"Other" includes the MUFG Fund Services segment, Markets segment, Japanese Corporate Banking segment and Corporate Treasury. MUFG Fund Services provides comprehensive investment fund administrative solutions. Markets provides risk management solutions, including foreign exchange, interest rate and energy risk management solutions. The Japanese Corporate Banking segment offers a range of credit, deposit, and investment management products and services to companies located primarily in the U.S. that are affiliated with companies headquartered in Japan. Corporate Treasury is responsible for ALM, wholesale funding and the ALM investment and derivatives hedging portfolios. These treasury management activities are carried out to manage the net interest rate and liquidity risks of the Company's balance sheet and to manage those risks within the guidelines established by ALCO. For additional discussion regarding these risk management activities, see Part II, Item 7A. “Quantitative and Qualitative Disclosures About Market Risk” in this Form 10-K.

Additionally, "Other" is comprised of certain corporate activities of the Company; the net impact of funds transfer pricing charges and credits allocated to the reportable segments; the residual costs of support groups; fees from affiliates and noninterest expenses associated with MUFG Bank, Ltd. U.S. branch banking operations; the unallocated allowance; goodwill, intangible assets, and the related amortization/accretion associated with the Company's privatization transaction when we became a privately held company in 2008; the elimination of the fully taxable-equivalent basis amount; the difference between the marginal tax rate and the consolidated effective tax rate; and FDIC covered assets.

The information, set forth in the tables that follow, is prepared using various management accounting methodologies to measure the performance of the individual segments. Unlike GAAP, there is no standardized or authoritative guidance for management accounting. Consequently, reported results are not necessarily comparable with those presented by other companies and they are not necessarily indicative of the results that would be reported by the business units if they were unique economic entities. The management reporting accounting methodologies, which are enhanced from time to time, measure segment profitability by assigning balance sheet and statements of income items to each operating segment. Methodologies that are applied to the measurement of segment profitability include a funds transfer pricing system, an activity-based costing methodology, other indirect costs and a methodology to allocate the provision for credit losses. The funds transfer pricing system assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics between Corporate Treasury and the operating segments. A segment receives a funding credit from Corporate Treasury for its liabilities. Conversely, a segment is assigned a charge by Corporate Treasury to fund its assets. Certain indirect costs, such as operations and technology expense, are allocated to the segments based on an activity-based costing methodology. Other indirect costs, such as corporate overhead, are allocated to the segments based on internal surveys and metrics that serve as proxies for estimated usage. During the normal course of business, the Company occasionally changes or updates its management accounting methodologies or organizational structure. Certain of the transferred IHC entities are not measured using management accounting methodologies.

151

Note 22—Business Segments (Continued)

As of and for the Twelve Months Ended December 31, 2018:

(Dollars in millions)	Regional Bank		U.S. Wholesale & Investment Banking		Transaction Banking			MUSA		Other			MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,195	$	415	$	264		$	200	$	233		$	3,307
Noninterest income	451		373		59			300		994			2,177
Total revenue	2,646		788		323			500		1,227			5,484
Noninterest expense	2,058		418		255			443		1,103			4,277
(Reversal of) provision for credit losses	65		42		(3		)	—		2			106
Income (loss) before income taxes and including noncontrolling interests	523		328		71			57		122			1,101
Income tax expense (benefit) (1)	105		122		19			17		(211		)	52
Net income (loss) including noncontrolling interest	418		206		52			40		333			1,049
Deduct: net loss from noncontrolling interests	—		—		—			—		24			24
Net income (loss) attributable to MUAH	$	418	$	206	$	52		$	40	$	357		$	1,073
Total assets, end of period	$	73,554	$	20,933	$	941		$	33,844	$	38,828		$	168,100

(1) Income tax expense (benefit) includes certain management accounting classification adjustments.

As of and for the Twelve Months Ended December 31, 2017:

(Dollars in millions)	Regional Bank		U.S. Wholesale & Investment Banking			Transaction Banking		MUSA		Other			MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,051	$	417		$	247	$	234	$	255		$	3,204
Noninterest income	442		370			64		351		783			2,010
Total revenue	2,493		787			311		585		1,038			5,214
Noninterest expense	1,961		403			229		445		946			3,984
(Reversal of) provision for credit losses	22		(104		)	1		—		(22		)	(103		)
Income (loss) before income taxes and including noncontrolling interests	510		488			81		140		114			1,333
Income tax expense (benefit) (1)	178		(197		)	33		59		226			299
Net income (loss) including noncontrolling interest	332		685			48		81		(112		)	1,034
Deduct: net loss from noncontrolling interests	—		—			—		—		43			43
Net income (loss) attributable to MUAH	$	332	$	685		$	48	$	81	$	(69	)	$	1,077
Total assets, end of period	$	67,804	$	20,461		$	1,063	$	32,062	$	33,160		$	154,550

(1) Income tax expense (benefit) includes certain management accounting classification adjustments.

152

Note 22—Business Segments (Continued)

As of and for the Twelve Months Ended December 31, 2016:

(Dollars in millions)	Regional Bank		U.S. Wholesale & Investment Banking		Transaction Banking		MUSA		Other		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	1,952	$	541	$	202	$	164	$	194	$	3,053
Noninterest income	449		368		72		302		1,034		2,225
Total revenue	2,401		909		274		466		1,228		5,278
Noninterest expense	1,843		404		190		362		983		3,782
(Reversal of) provision for credit losses	30		98		—		—		27		155
Income (loss) before income taxes and including noncontrolling interests	528		407		84		104		218		1,341
Income tax expense (benefit) (1)	152		91		39		41		96		419
Net income (loss) including noncontrolling interest	376		316		45		63		122		922
Deduct: net loss from noncontrolling interests	—		—		—		—		68		68
Net income (loss) attributable to MUAH	$	376	$	316	$	45	$	63	$	190	$	990
Total assets, end of period	$	63,169	$	23,805	$	1,205	$	29,252	$	30,713	$	148,144

(1) Income tax expense (benefit) includes certain management accounting classification adjustments.

153

Note 23—Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company)

Condensed Balance Sheets

	December 31,
(Dollars in millions)	2018		2017
Assets
Cash and cash equivalents	$	739	$	1,341
Investments in and advances to subsidiaries
Bank subsidiary	18,493		19,598
Nonbank subsidiaries	4,618		4,314
Other assets	76		69
Total assets	$	23,926	$	25,322
Liabilities and Stockholders' Equity
Long-term debt	$	7,355	$	6,997
Other liabilities	63		70
Total liabilities	7,418		7,067
Stockholders' equity	16,508		18,255
Total liabilities and stockholders' equity	$	23,926	$	25,322

Condensed Statements of Income

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Income:
Dividends from subsidiaries:
Bank subsidiary	$	1,700		$	320		$	—
Nonbank subsidiaries	95			51			—
Interest income on advances to subsidiaries and deposits in bank	137			79			22
Rental Income	15			15			16
Total income	1,947			465			38
Expense:
Interest expense	194			144			75
Other expense	17			14			19
Total expense	211			158			94
Income (loss) before income taxes and equity in undistributed net income of subsidiaries	1,736			307			(56		)
Income tax benefit	(13		)	(20		)	(22		)
Income (loss) before equity in undistributed net income of subsidiaries	1,749			327			(34		)
Equity in undistributed net income of subsidiaries less dividends received:
Bank subsidiary	(697		)	366			900
Nonbank subsidiaries	21			384			124
Net Income	$	1,073		$	1,077		$	990

154

Note 23—Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company) (Continued)

Condensed Statements of Cash Flows

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Cash Flows from Operating Activities:
Net income	$	1,073		$	1,077		$	990
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed net income of subsidiaries less dividends received	676			(750		)	(1,024		)
Other, net	(9		)	2			—
Net cash provided by (used in) operating activities	1,740			329			(34		)
Cash Flows from Investing Activities:
Investments in and advances to subsidiaries	(2,612		)	(5,050		)	(1,197		)
Repayment of investments in and advances to subsidiaries	2,411			1,495			1,820
Net cash used in investing activities	(201		)	(3,555		)	623
Cash Flows from Financing Activities:
Proceeds from advances from subsidiaries	—			200			—
Repayment of advances from subsidiaries	—			(200		)	—
Proceeds from issuance of long-term debt	6,500			3,525			545
Repayment of long-term debt	(6,145		)	—			—
Dividends paid	—			(500		)	—
Share repurchase	(2,496		)	—			—
Other, net	—			—			1
Net cash provided by (used in) financing activities	(2,141		)	3,025			546
Net increase (decrease) in cash and cash equivalents	(602		)	(201		)	1,135
Cash and cash equivalents at beginning of year	1,341			1,542			407
Cash and cash equivalents at end of year	$	739		$	1,341		$	1,542

155

MUFG Americas Holdings Corporation and Subsidiaries

Management's Report on Internal Control over Financial Reporting

The management of MUFG Americas Holdings Corporation is responsible for establishing and maintaining adequate internal control over financial reporting, designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

We maintain a system of internal accounting controls to provide reasonable assurance that assets are safeguarded and transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of consolidated financial statements in accordance with generally accepted accounting principles. Management recognizes that even a highly effective internal control system has inherent risks, including the possibility of human error and the circumvention or overriding of controls, and that the effectiveness of an internal control system can change with circumstances. Management has assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2018. In making this assessment, management used the criteria set out by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013). Based on our assessment, we concluded that the Company's internal control system over financial reporting is effective as of December 31, 2018.

The Company's internal control over financial reporting and the Company's consolidated financial statements have been audited by Deloitte & Touche LLP, Independent Registered Public Accounting Firm.

156

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the stockholders and the Board of Directors of MUFG Americas Holdings Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of MUFG Americas Holdings Corporation and subsidiaries (the "Company") as of December 31, 2018 and 2017, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows, for each of the three years in the period ended December 31, 2018, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 27, 2019, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

New York, New York

February 27, 2019

We have served as the Company's auditor since 1996.

157

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the stockholders and the Board of Directors of MUFG Americas Holdings Corporation

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of MUFG Americas Holdings Corporation and subsidiaries (the “Company”) as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2018, of the Company and our report dated February 27, 2019 expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ DELOITTE & TOUCHE LLP

New York, New York

February 27, 2019

158

MUFG Americas Holdings Corporation and Subsidiaries

Supplementary Information

Quarterly Financial Data (Unaudited)

Condensed Consolidated Statements of Income:

	2018 Quarters Ended
(Dollars in millions)	December 31		September 30		June 30			March 31
Interest income	$	1,388	$	1,317	$	1,254		$	1,166
Interest expense	563		485		429			341
Net interest income	825		832		825			825
(Reversal of) provision for credit losses	63		64		(19		)	(2		)
Noninterest income	573		626		596			382
Noninterest expense	1,051		1,059		1,083			1,084
Income before income taxes and including noncontrolling interests	284		335		357			125
Income tax expense	31		35		28			(42		)
Net income including noncontrolling interests	253		300		329			167
Deduct: Net loss from noncontrolling interests	4		6		15			(1		)
Net income	$	257	$	306	$	344		$	166

	2017 Quarters Ended
(Dollars in millions)	December 31			September 30		June 30			March 31
Interest income	$	1,086		$	1,083	$	1,026		$	984
Interest expense	287			267		232			189
Net interest income	799			816		794			795
(Reversal of) provision for credit losses	(69		)	18		(22		)	(30		)
Noninterest income	518			515		489			488
Noninterest expense	1,039			982		957			1,006
Income before income taxes and including noncontrolling interests	347			331		348			307
Income tax expense	44			109		63			83
Net income including noncontrolling interests	303			222		285			224
Deduct: Net loss from noncontrolling interests	18			10		10			5
Net income	$	321		$	232	$	295		$	229

159

Exhibit Index

Exhibit No.	Description
2.1	Contribution Agreement by and among MUFG Americas Holdings Corporation, The Bank of Tokyo-Mitsubishi UFJ Ltd. and Mitsubishi UFJ Financial Group Inc. dated June 30, 2016 (1)
3.1	Second Amended and Restated Certificate of Incorporation of the Registrant(2)
3.2	Amended and Restated Bylaws of the Registrant (3)
4.1	Trust Indenture between the Registrant and J.P. Morgan Trust Company, National Association, as Trustee, dated December 8, 2003(4)
4.2	The Registrant agrees to furnish upon request to the Commission a copy of each instrument defining the rights of holders of long-term debt of the Registrant.
4.3	Officer's Certificate establishing the terms of the 3.50% Senior Notes due 2022, dated June 18, 2012 (5)
4.4	Form of 3.50% Senior Notes due 2022 (included as Exhibit A to Exhibit 4.3)
4.5	Officer's Certificate establishing the terms of the 1.625% Senior Notes due 2018, 2.250% Senior Notes due 2020, 3.000% Senior Notes due 2025, and Floating Rate Senior Notes due 2018, dated February 10, 2015 (6)
4.6	Form of 1.625% Senior Notes due 2018, 2.250% Senior Notes due 2020, 3.000% Senior Notes due 2025, and Floating Rate Senior Notes due 2018 (included as Exhibits A, B, C and D, respectively, to Exhibit 4.5)
10.1	Master Services Agreement by and between MUFG Union Bank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. effective July 1, 2014(7)
10.2	Certain exhibits related to compensatory plans, contracts and arrangements have been omitted pursuant to item 601(b)(10)(iii)(C)(6) of Regulation S-K
21.1	Subsidiaries of the Registrant has been omitted pursuant to General Instruction I(2) of Form 10-K
24.1	Power of Attorney(8)
24.2	Resolution of Board of Directors(8)
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(8)
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a )/15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(8)
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(8)
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(8)
101	Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company's Annual Report on Form 10-K for the year ended December 31, 2018, is formatted in XBRL interactive data files: (i) Consolidated Statements of Income; (ii) Consolidated Balance Sheets; (iii) Consolidated Statements of Changes in Stockholders' Equity; (iv) Consolidated Statements of Cash Flows; and (v) Notes to Financial Statements (7)

(1) Incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K dated July 1, 2016.

(2) Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K dated September 11, 2018.

(3) Incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K dated July 1, 2014.

(4) Incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K dated December 8, 2003.

(5) Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated June 18, 2012.

(6) Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated February 10, 2015.

(7) Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 10-Q for the quarter ended September 30, 2014.

(8) Filed herewith.

160

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, MUFG Americas Holdings Corporation has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MUFG AMERICAS HOLDINGS CORPORATION (Registrant)
By:	/s/ STEPHEN E. CUMMINGS
	Stephen E. Cummings President and Chief Executive Officer
Date:	February 27, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of MUFG Americas Holdings Corporation and in the capacities and on the dates indicated.

Signature	Title
/s/ STEPHEN E. CUMMINGS	Director, President and Chief Executive Officer
Stephen E. Cummings	(Principal Executive Officer)
/s/ JOHANNES WORSOE	Chief Financial Officer
Johannes Worsoe	(Principal Financial Officer)
/s/ NEAL HOLLAND	Controller and Chief Accounting Officer
Neal Holland	(Principal Accounting Officer)
*
Michael D. Fraizer	Director
*
Roberta A. Bienfait	Director
*
Mohan S. Gyani	Director
Ann F. Jaedicke	Director
*
Suneel Kamlani	Director
*
Kazuo Koshi	Director
*
Masato Miyachi	Director
*
Toby S. Myerson	Director
*
Barbara L. Rambo	Director
*
Muneaki Tokunari	Director
*
Dean A. Yoost	Director

*By:	/s/ NEAL HOLLAND
	Neal Holland Attorney-in-Fact

Dated: February 27, 2019

161

EX-24.1

Exhibit 24.1

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that each of MUFG Americas Holdings Corporation and the several undersigned officers and directors whose signatures appear below, hereby makes, constitutes and appoints Johannes Worsoe, Neal Holland and Michael F. Coyne and each of them acting individually, its, his and her true and lawful attorneys with power to act without any other and with full power of substitution, to prepare, execute, deliver and file in its, his and her name and on its, his and her behalf, and in each of the undersigned officer's and director's capacity or capacities as shown below, an Annual Report on Form 10-K for the year ended December 31, 2018, and all exhibits thereto and all documents in support thereof or supplemental thereto, and any and all amendments or supplements to the foregoing, hereby ratifying and confirming all acts and things which said attorneys or attorney might do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, MUFG Americas Holdings Corporation has caused this power of attorney to be signed on its behalf, and each of the undersigned officers and directors, in the capacity or capacities noted, has hereunto set his or her hand as of the date indicated below.

MUFG AMERICAS HOLDINGS CORPORATION
By	/s/ STEPHEN E. CUMMINGS	Dated:	February 21, 2019
	Name:  Stephen E. Cummings
	Title:     President and Chief Executive Officer

Signature	Title	Date
/s/ ROBERTA A. BIENFAIT	Director	February 20, 2019
Roberta A. Bienfait
/s/ STEPHEN E. CUMMINGS	Director	February 21, 2019
Stephen E. Cummings
/s/ MICHAEL D. FRAIZER	Director	February 26, 2019
Michael D. Fraizer
/s/ MOHAN S. GYANI	Director	February 20, 2019
Mohan S. Gyani
	Director
Ann F. Jaedicke
/s/ SUNEEL KAMLANI	Director	February 23, 2019
Suneel Kamlani
/s/ KAZUO KOSHI	Director	February 20, 2019
Kazuo Koshi

Signature	Title	Date
/s/ MASATO MIYACHI	Director	February 20, 2019
Masato Miyachi
/s/ TOBY S. MYERSON	Director	February 20, 2019
Toby S. Myerson
/s/ BARBARA L. RAMBO	Director	February 24, 2019
Barbara L. Rambo
/s/ MUNEAKI TOKUNARI	Director	February 25, 2019
Muneaki Tokunari
/s/ DEAN A. YOOST	Director	February 26, 2019
Dean A. Yoost

EX-24.2

Exhibit 24.2

MUFG Americas Holdings Corporation

February 26, 2019

WHEREAS, officers of MUFG Americas Holdings Corporation (the "Corporation") have made presentations to the Audit & Finance Committee and the Board of Directors regarding the Corporation's financial results for the year ended December 31, 2018; and

WHEREAS, the Audit & Finance Committee has had an opportunity to review and comment on such results; and

WHEREAS, based on the Audit & Finance Committee's discussion with management and the independent auditors and the Audit & Finance Committee's review of the representation of management and the report of the independent auditors to the Audit & Finance Committee, the Audit & Finance Committee recommended that the Board of Directors include the audited consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2018, to be filed with the Securities and Exchange Commission;

NOW, THEREFORE, BE IT RESOLVED that the audited consolidated financial statements be included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018, to be filed with the Securities and Exchange Commission;

FURTHER RESOLVED that the President and Chief Executive Officer, the Chief Financial Officer, the Controller and Chief Accounting Officer and such other officers of the Corporation as they shall designate in writing, be, and they hereby are, authorized and empowered on behalf of the Corporation to execute the Form 10-K, in substantially the form submitted to the Board, and file it with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended, and with such other governmental agencies or instrumentalities as such officers deem necessary or desirable, and to prepare, execute, deliver and file any amendment or amendments to the Form 10-K, as they may deem necessary or appropriate, provided, however, that prior to filing, all proposed significant changes to the draft Form 10-K, which was presented to the Board, shall be reviewed with the Chair of the Audit & Finance Committee, who shall determine if the substantive nature of the changes warrant further discussion with the full Audit & Finance Committee; and

FURTHER RESOLVED that Johannes Worsoe, Neal Holland and Michael F. Coyne, be, and each of them with full power to act without the other hereby is, authorized and empowered to prepare, execute, deliver and file the Form 10-K and any amendment or amendments thereto on behalf of and as attorneys for the Corporation and on behalf of and as attorneys for any of the following: the chief executive officer, the chief financial officer, the principal accounting officer, and any other officer of the Corporation.

I certify that the foregoing resolution was adopted by the Board of Directors of MUFG Americas Holdings Corporation at the Regular Meeting of said Board held on February 26, 2019.

I further certify that the foregoing resolution now stands on the records of the books of the Corporation and has not been modified, repealed or set aside in any manner whatsoever and is now in full force and effect.

Dated: February 26, 2019

/s/ MARY BIANCHINI

Mary Bianchini

Secretary

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Stephen E. Cummings, certify that:

1. I have reviewed this annual report on Form 10-K of MUFG Americas Holdings Corporation (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting;

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: February 27, 2019

By:	/s/ STEPHEN E. CUMMINGS
	Stephen E. Cummings President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Johannes Worsoe, certify that:

1. I have reviewed this annual report on Form 10-K of MUFG Americas Holdings Corporation (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting;

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: February 27, 2019

By:	/s/ JOHANNES WORSOE
	Johannes Worsoe Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Annual Report of MUFG Americas Holdings Corporation (the "Company") on Form 10-K for the period ended December 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Stephen E. Cummings, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: February 27, 2019

By:	/s/ STEPHEN E. CUMMINGS
	Stephen E. Cummings President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Annual Report of MUFG Americas Holdings Corporation (the "Company") on Form 10-K for the period ended December 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Johannes Worsoe, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: February 27, 2019

By:	/s/ JOHANNES WORSOE
	Johannes Worsoe Chief Financial Officer

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Jan. 31, 2019
Document And Entity Information
Entity Registrant Name	MUFG Americas Holdings Corp
Entity Central Index Key	0001011659
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float	$ 0
Entity Common Stock, Shares Outstanding		131,935,124
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

XML

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest Income
Loans	$ 3,303	$ 2,892	$ 2,839
Securities	665	564	483
Securities borrowed or purchased under resale agreements	652	347	195
Trading assets	415	326	172
Other	90	50	27
Total interest income	5,125	4,179	3,716
Interest Expense
Deposits	441	241	194
Commercial paper and other short-term borrowings	168	58	32
Long-term debt	365	250	240
Securities loaned or sold under repurchase agreements	734	353	140
Trading liabilities	110	73	57
Total interest expense	1,818	975	663
Net Interest Income	3,307	3,204	3,053
(Reversal of) provision for credit losses	106	(103)	155
Net interest income after (reversal of) provision for credit losses	3,201	3,307	2,898
Noninterest Income
Service charges on deposit accounts	179	188	192
Trust and investment management fees	118	121	120
Trading account activities	(24)	(5)	105
Securities gains, net	8	17	69
Credit facility fees	90	98	108
Brokerage commissions and fees	73	69	64
Card processing fees, net	50	47	39
Investment banking and syndication fees	355	369	312
Fees from affiliates	1,213	866	957
Other, net	115	240	259
Total noninterest income	2,177	2,010	2,225
Noninterest Expense
Salaries and employee benefits	2,616	2,495	2,439
Net occupancy and equipment	367	357	325
Professional and outside services	487	439	369
Software	287	192	154
Regulatory assessments	85	82	72
Intangible asset amortization	26	30	28
Other	409	389	395
Total noninterest expense	4,277	3,984	3,782
Income before income taxes and including noncontrolling interests	1,101	1,333	1,341
Income tax expense	52	299	419
Net Income Including Noncontrolling Interests	1,049	1,034	922
Deduct: Net loss from noncontrolling interests	24	43	68
Net Income Attributable to MUAH	$ 1,073	$ 1,077	$ 990

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net Income Attributable to MUAH	$ 1,073	$ 1,077	$ 990
Other Comprehensive Income (Loss), Net of Tax:
Net change in unrealized gains (losses) on cash flow hedges	(46)	(66)	(115)
Net change in unrealized gains (losses) on investment securities	(140)	16	(56)
Foreign currency translation adjustment	(2)	7	2
Pension and other postretirement benefit adjustments	(130)	95	23
Other Comprehensive Income Other, Net of Tax, Portion Attributable to Parent	(1)	0	0
Total other comprehensive income (loss)	(319)	52	(146)
Comprehensive Income (Loss) Attributable to MUAH	754	1,129	844
Comprehensive income (loss) from noncontrolling interests	24	43	68
Total Comprehensive Income (Loss)	$ 730	$ 1,086	$ 776

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 2,061	$ 2,057
Interest bearing deposits in banks	6,289	1,335
Total cash and cash equivalents	8,350	3,392
Securities borrowed or purchased under resale agreements	22,368	20,894
Trading account assets (includes $1,239 at December 31, 2018 and $1,001 at December 31, 2017 pledged as collateral that may be repledged)	11,213	10,567
Securities held to maturity (fair value $10,720 at December 31, 2018 and $9,799 at December 31, 2017)	10,901	9,885
Loans held for investment	86,507	80,014
Allowance for loan losses	(474)	(476)
Loans held for investment, net	86,033	79,538
Premises and equipment, net	635	610
Goodwill	3,301	3,301
Other assets	9,620	9,410
Total assets	168,100	154,550
Deposits:
Noninterest bearing	31,754	32,602
Interest bearing	59,225	52,185
Total deposits	90,979	84,787
Securities loaned or sold under repurchase agreements	27,285	26,437
Securities Sold under Agreements to Repurchase and Securities Loaned	27,285	26,437
Commercial paper and other short-term borrowings	9,263	7,066
Long-term debt	17,918	12,162
Trading account liabilities	4,027	3,600
Other liabilities	2,048	2,143
Total liabilities	151,520	136,195
Commitments, contingencies and guarantees—See Note 20
MUAH stockholders' equity:
Authorized 5,000,000 shares; no shares issued or outstanding	0	0
Authorized 1,700,000,000 shares, 131,935,124 shares issued and outstanding as of December 31, 2018 and authorized 300,000,000 shares, 147,589,713 shares issued and outstanding as of December 31, 2017	132	148
Additional paid-in capital	8,176	8,197
Retained earnings	9,524	10,936
Accumulated other comprehensive loss	(1,324)	(1,026)
Total MUAH stockholders' equity	16,508	18,255
Noncontrolling interests	72	100
Total equity	16,580	18,355
Total liabilities and equity	168,100	154,550
Other Subsidiaries, Excluding MUFG Bank, NA [Member]
Deposits:
Long-term debt	931	1,355
Consumer
Assets
Loans held for investment	43,372	39,105
Allowance for loan losses	(110)	(86)
Commercial
Assets
Loans held for investment	43,135	40,909
Allowance for loan losses	(359)	$ (360)
Notes Receivable [Member] | Consumer | Residential mortgage
Assets
Loans held for investment	38,000
Notes Receivable [Member] | Commercial | Commercial mortgage
Assets
Loans held for investment	16,000
Financial and Insurance [Member] | Notes Receivable [Member] | Commercial
Assets
Loans held for investment	7,000
Power and Utilities [Member] | Notes Receivable [Member] | Commercial
Assets
Loans held for investment	4,000
Oil and Gas [Member] | Notes Receivable [Member] | Commercial
Assets
Loans held for investment	3,000
Manufacturing Sector [Member] | Notes Receivable [Member] | Commercial
Assets
Loans held for investment	$ 4,000

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Trading account assets pledged as collateral	$ 1,239	$ 1,001
Securities available-for-sale pledged as collateral	75	163
Fair value of securities held to maturity	$ 10,720	$ 9,799
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, share authorized (in shares)	1,700,000,000	300,000,000
Common stock, share issued (in shares)	131,935,124	147,589,713
Common stock, share outstanding (in shares)	131,935,124	147,589,713

XML

Consolidated Statements of Changes in Stockholder's Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests
Beginning balance at Dec. 31, 2015	$ 16,593	$ 144	$ 7,868	$ 9,116	$ (750)	$ 215
Net Income Including Noncontrolling Interests	922			990		(68)
Other comprehensive income (loss), net of tax	(146)				(146)
Compensation—restricted stock units	10		13	(3)
Other	7		3	(2)		6
Net change	793		16	985	(146)	(62)
Ending balance at Dec. 31, 2016	17,386	144	7,884	10,101	(896)	153
Net Income Including Noncontrolling Interests	1,034			1,077		(43)
Other comprehensive income (loss), net of tax	52				52
Compensation—restricted stock units	(10)		(8)	(2)
Stock Issued During Period, Value, New Issues	402	3	321	78
Dividends Paid	(500)			(500)
TaxCutsandJobsActReclassification				182	(182)
Other	(9)	1	0	0		(10)
Net change	969	4	313	835	(130)	(53)
Ending balance at Dec. 31, 2017	18,355	148	8,197	10,936	(1,026)	100
Net Income Including Noncontrolling Interests	1,049			1,073		(24)
Other comprehensive income (loss), net of tax	(319)				(319)
Compensation—restricted stock units	(5)		0	(5)
sharerepurchase	(2,496)	(16)		(2,480)
Other	(4)	0	(21)	0	21	(4)
Net change	(1,775)	(16)	(21)	(1,412)	(298)	(28)
Ending balance at Dec. 31, 2018	$ 16,580	$ 132	$ 8,176	$ 9,524	$ (1,324)	$ 72

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Cash Flows [Abstract]
Restricted Cash and Cash Equivalents	$ 48	$ 136	$ 81
Cash Flows from Operating Activities:
Net income including noncontrolling interests	1,049	1,034	922
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Reversal of) provision for credit losses	106	(103)	155
Depreciation, amortization and accretion, net	411	331	325
Stock-based compensation—restricted stock units	77	66	67
Deferred income taxes	(242)	25	79
Net gains on sales of securities	(8)	(17)	(69)
Net decrease (increase) in securities borrowed or purchased under resale agreements	(1,474)	(1,147)	11,325
Net increase (decrease) in securities loaned or sold under repurchase agreements	848	1,821	(4,525)
Net decrease (increase) in trading account assets	(646)	(1,625)	(5,208)
Net decrease (increase) in other assets	170	414	(875)
Net increase (decrease) in trading account liabilities	427	695	(807)
Net increase (decrease) in other liabilities	103	(137)	(98)
Loans originated for sale	(2,339)	(813)	(1,358)
Net proceeds from sale of loans originated for sale	1,626	697	1,332
Pension and other benefits adjustment	(50)	(169)	(147)
Other, net	(18)	11	15
Total adjustments	(1,009)	49	211
Net cash provided by (used in) operating activities	40	1,083	1,133
Cash Flows from Investing Activities:
Proceeds from sales of securities available for sale	1,505	2,460	4,842
Proceeds from paydowns and maturities of securities available for sale	2,822	2,809	2,171
Purchases of securities available for sale	(5,643)	(8,912)	(6,666)
Proceeds from paydowns and maturities of securities held to maturity	1,682	1,782	2,257
Purchases of securities held to maturity	(772)	(1,360)	(2,447)
Proceeds from sales of loans	770	926	1,526
Net decrease (increase) in loans	(6,785)	(2,947)	(519)
Purchases of other investments	(262)	(378)	(717)
Other, net	(57)	(60)	148
Net cash provided by (used in) investing activities	(6,740)	(5,680)	595
Cash Flows from Financing Activities:
Net increase (decrease) in deposits	6,184	(2,063)	2,606
Net increase (decrease) in commercial paper and other short-term borrowings	2,198	4,709	(1,065)
Proceeds from issuance of long-term debt	15,458	5,027	795
Repayment of long-term debt	(9,655)	(4,801)	(3,082)
Dividends paid	0	(500)	0
Proceeds from (Repurchase of) Equity	(2,496)	0	0
Other, net	(115)	(71)	6
Change in noncontrolling interests	(4)	(10)	6
Net cash provided by (used in) financing activities	11,570	2,291	(734)
Net change in cash and cash equivalents	4,870	(2,306)	994
Cash, cash equivalents and restricted cash at beginning of period	3,392	5,753
Cash, cash equivalents and restricted cash at end of period	8,350	3,392	5,753
Cash Paid During the Period For:
Interest	1,761	919	626
Income taxes, net	116	178	159
Supplemental Schedule of Noncash Investing and Financing Activities:
Net transfer of loans held for investment to loans held for sale	44	776	1,976
Transfer Of Available For Sale To Held-To-Maturity Securities	2,006	0	0
Transfer of assets and liabilities from BTMU and MUFG:
Carrying amount of assets acquired	0	1,003	0
Carrying amount of liabilities assumed	0	601	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 8,398	$ 3,528	$ 5,834

XML

Summary of Significant Accounting Policies and Nature of Operations

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies and Nature of Operations

Summary of Significant Accounting Policies and Nature of Operations

Introduction

MUFG Americas Holdings Corporation (MUAH) is a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. (MUB or the Bank) and MUFG Securities Americas Inc. (MUSA). MUAH is owned by MUFG Bank, Ltd. and MUFG. MUFG Bank, Ltd. is a wholly-owned subsidiary of MUFG. As used in these Consolidated Financial Statements, terms such as "the Company," "we," "us" and "our" refer to MUFG Americas Holdings Corporation (MUAH), one or more of its consolidated subsidiaries, or to all of them together.

MUAH provides a wide range of financial services to consumers, small businesses, middle-market companies and major corporations nationally and internationally. The Company also provides various business, banking, financial, administrative and support services, and facilities for MUFG Bank, Ltd. (formerly The Bank of Tokyo-Mitsubishi UFJ, Ltd.) in connection with the operation and administration of MUFG Bank, Ltd.'s business in the U.S. (including MUFG Bank, Ltd.'s U.S. branches).

On July 1, 2016, in accordance with the requirements of the U.S. Federal Reserve Board’s final rules for Enhanced Prudential Standards, the Company was designated the U.S. Intermediate Holding Company (IHC) of its ultimate parent, MUFG. The IHC formation resulted in the transfer of interests in substantially all of MUFG’s U.S. subsidiaries to MUAH. The Company issued 7,991,449 shares to MUFG Bank, Ltd. and MUFG in exchange for the transferred subsidiaries. These subsidiaries included MUSA, a registered broker-dealer, and various other non-bank subsidiaries. The assets received and liabilities assumed were transferred at their carrying amounts, and all prior periods have been revised to include the results of these transferred subsidiaries. MUFG's remaining U.S. subsidiaries were transferred to MUAH on July 1, 2017. The Company issued 3,267,433 shares to MUFG Bank, Ltd. and MUFG in exchange for these transferred subsidiaries and their financial results have been included in MUAH's financial results prospectively beginning July 1, 2017.

Principles of Consolidation and Basis of Financial Statement Presentation

The consolidated financial statements include the accounts of the Company and other entities in which the Company has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a VIE. The primary beneficiary of a VIE is the entity that has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and has the obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. Results of operations from VIEs are included from the dates that the Company became the primary beneficiary. All intercompany transactions and balances with consolidated entities are eliminated in consolidation.

The Company accounts for equity investments over which it exerts significant influence using the equity method of accounting. Non-marketable equity investments where the Company does not exert significant influence are accounted for at cost or using the proportional amortization method. Investments accounted for under the equity method, proportional amortization method, and cost method are included in other assets.

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). The policies that materially affect the determination of financial position, results of operations and cash flows are summarized below.

The preparation of financial statements in conformity with GAAP also requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Although such estimates contemplate current conditions and management's expectations of how they may change in the future, it is reasonably possible that actual results could differ significantly from those estimates. This could materially affect the Company's results of operations and financial condition in the near term. Critical estimates made by management in the preparation of the Company's financial statements include, but are not limited to, the allowance for credit losses (Note 3), goodwill impairment (Note 5), fair value of financial instruments (Note 11), pension accounting (Note 15), income taxes (Note 17), and transfer pricing (Note 21).

Cash and Cash Equivalents

Cash and cash equivalents include cash and due from banks, interest bearing deposits in banks, and federal funds sold.

Securities Borrowed or Purchased under Agreements to Resell and Securities Loaned or Sold under Agreements to Repurchase

Securities borrowed and securities loaned transactions do not qualify for sale accounting and therefore are not recognized on the transferee's balance sheet. Securities borrowed and securities loaned represent the amount of cash collateral advanced or received, respectively. The Company monitors the market value of the borrowed and loaned securities on a daily basis, with additional collateral obtained or refunded as necessary. Accrued interest associated with securities borrowed and securities loaned is included in other assets and other liabilities, respectively. Interest associated with securities borrowed and securities loaned is recorded as interest income and interest expense, respectively.

Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”) do not qualify for sale accounting and therefore are not recognized on the transferee's balance sheet. Transactions involving these agreements are accounted for as collateralized financings. These agreements are recorded at the amounts at which the securities were acquired or sold and are carried at amortized cost. The Company generally obtains possession of collateral with a market value equal to or in excess of the principal amount financed under reverse repurchase agreements. Collateral is valued daily, and the Company may require counterparties to deposit additional collateral or return collateral pledged, when appropriate. Accrued interest associated with reverse repurchase agreements and repurchase agreements is included in other assets and other liabilities, respectively. Interest associated with reverse repurchase agreements and repurchase agreements is recorded as interest income and interest expense, respectively. The Company generally enters into reverse repurchase and repurchase agreements under legally enforceable master repurchase agreements that give the Company, in the event of counterparty default, the right to liquidate securities held and offset receivables and payables with the same counterparty. The Company offsets reverse repurchase and repurchase agreements with the same counterparty where they have a legally enforceable master netting agreement and the transactions have the same maturity date.

Trading Account Assets and Liabilities

Trading account assets and liabilities are recorded at fair value and include certain securities and derivatives. Securities are classified as trading when management acquires them with the intent to hold for short periods, primarily at MUAH's broker-dealer subsidiary, MUSA, or as an accommodation to customers. Substantially all of the securities have a high degree of liquidity and a readily determinable fair value. Interest on securities classified as trading is included in interest income, and realized gains and losses from sale and unrealized fair value adjustments are recognized in noninterest income. Trading securities that are pledged under an agreement to repurchase and which may be sold or repledged under that agreement are separately identified as pledged as collateral.

Derivatives included in trading account assets and liabilities are entered into for trading purposes or as an accommodation to customers. Contracts primarily include interest rate swaps and options, commodity swaps and options, and foreign exchange contracts. The Company nets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting arrangement exists between the Company and the derivative counterparty. Changes in fair values and realized income or expense for trading asset and liability derivatives are included in noninterest income.

Securities

Securities are classified based on management's intent and are recorded on the consolidated balance sheet as of the trade date, when acquired in a regular-way trade. Debt securities for which management has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at amortized cost. Debt securities with readily determinable fair values that are not classified as trading assets or held to maturity are classified as available for sale and are carried at fair value, with the unrealized gains or losses reported net of taxes as a component of AOCI in stockholders' equity until realized.

Interest income on debt securities classified as either available for sale or held to maturity includes the amortization of premiums and the accretion of discounts using a method that produces a level yield and is included in interest income on securities.

Realized gains and losses on the sale of available for sale securities are included in noninterest income. The specific identification method is used to calculate realized gains and losses on sales.

Securities available for sale that are pledged under an agreement to repurchase and which may be sold or repledged under that agreement are separately identified as pledged as collateral.

Debt securities available for sale and debt securities held to maturity are subject to impairment testing when a security's fair value is lower than its amortized cost. Debt securities with unrealized losses are considered other-than-temporarily impaired if we intend to sell the debt security, if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, or if we do not expect to recover the entire amortized cost basis of the security. If we intend to sell the security, or if it is more likely than not that we will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the entire difference between the amortized cost basis and fair value of the debt security. However, even if we do not expect to sell a debt security we must evaluate the expected cash flows to be received and determine if a credit loss exists. In the event of a credit loss, only the amount of impairment associated with the credit loss is recognized in income. Amounts related to factors other than credit losses are recorded in other comprehensive income. For further information on our other-than-temporary impairment analysis, see Note 2 to our Consolidated Financial Statements in this Form 10-K.

Loans Held for Investment, Other Acquired Loans, Loans Held for Sale and Leases

Loans held for investment are reported at the principal amounts outstanding, net of charge-offs, unamortized nonrefundable loan fees, direct loan origination costs, and purchase premiums and discounts. Where loans are held for investment, the net basis adjustment excluding charge-offs on the loan is generally recognized in interest income on an effective yield basis over the contractual loan term.

Nonaccrual loans are those for which management has discontinued accrual of interest because there exists significant uncertainty as to the full and timely collection of either principal or interest. Loans are generally placed on nonaccrual when such loans have become contractually past due 90 days with respect to principal or interest. Past due status is determined based on the contractual terms of the loan and the number of payment cycles since the last payment date. Interest accruals are continued past 90 days for certain small business loans and consumer installment loans, which are charged off at 120 days. For the commercial loan portfolio segment, interest accruals are also continued for loans that are both well-secured and in the process of collection.

When a loan is placed on nonaccrual status, all previously accrued but uncollected interest is reversed against current period interest income. When full collection of the outstanding principal balance is in doubt, subsequent payments received are first applied to unpaid principal and then to uncollected interest. A loan may be returned to accrual status at such time as the loan is brought fully current as to both principal and interest, and such loan is considered to be fully collectible on a timely basis. The Company's policy also allows management to continue the recognition of interest income on certain loans placed on nonaccrual status. This portion of the nonaccrual portfolio is referred to as "Cash Basis Nonaccrual" under which the accrual of interest is suspended and interest income is recognized only when collected. This policy applies to consumer portfolio segment loans and commercial portfolio segment loans that are well-secured and in management's judgment are considered to be fully collectible but the timely collection of payments is in doubt.

A TDR is a restructuring of a loan in which the creditor, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. A loan subject to such a restructuring is accounted for as a TDR. A TDR typically involves a modification of terms such as a reduction of the interest rate below the current market rate for a loan with similar risk characteristics or extending the maturity date of the loan without corresponding compensation or additional support. The Company measures impairment of a TDR using the methodology described for individually impaired loans (see "Allowance for Loan Losses" below). For the consumer portfolio segment, TDRs are initially placed on nonaccrual and typically, a minimum of six consecutive months of sustained performance is required before returning to accrual status. For the commercial portfolio segment, the Company generally determines accrual status for TDRs by performing an individual assessment of each loan, which may include, among other factors, demonstrated performance by the borrower under the previous terms.

Except for certain transactions between entities under common control, loans acquired in a transfer, including business combinations, are recorded at fair value at the acquisition date, factoring in credit losses expected to be incurred over the life of the loan.

Loans held for sale, which are recorded in other assets, are carried at the lower of cost or fair value and measured on an individual basis for commercial loans and on an aggregate basis for residential mortgage loans. Changes in fair value are recognized in other noninterest income. Nonrefundable fees, direct loan origination costs, and purchase premiums and discounts related to loans held for sale are deferred and recognized as a component of the gain or loss on sale. Contractual interest earned on loans held for sale is recognized in interest income.

As lessor, the Company primarily offers two types of leases to customers: 1) direct financing leases where the assets leased are acquired without additional financing from other sources, and 2) leveraged leases where a substantial portion of the financing is provided by debt with no recourse to the Company. Direct financing leases and leveraged leases are recorded based on the amount of minimum lease payments receivable, unguaranteed residual value accruing to the benefit of the lessor, unamortized initial direct costs, and are reduced for any unearned income. Leveraged leases are recorded net of any nonrecourse debt.

Allowance for Loan Losses

The Company maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the probable estimated losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses, which is charged against current period operating results and decreased by the amount of charge-offs, net of recoveries. The Company's methodology for assessing the appropriateness of the allowance consists of several key elements, which include the allowance for loans collectively evaluated for impairment, the allowance for loans individually evaluated for impairment, and the unallocated allowance. Management estimates probable losses inherent in the portfolio based on a loss emergence period. The loss emergence period is the estimated average period of time between a material adverse event that affects the creditworthiness of a borrower and the subsequent recognition of a loss. Updates of the loss emergence period are performed when significant events cause management to reexamine data. Management develops and documents its systematic methodology for determining the allowance for loan losses by first dividing its portfolio into segments—the commercial segment and consumer segment. The Company further divides the portfolio segments into classes based on initial measurement attributes, risk characteristics or its method of monitoring and assessing credit risk. The classes for the Company include commercial and industrial, commercial mortgage, construction, residential mortgage, and home equity and other consumer loans. While the Company's methodology attributes portions of the allowance to specific portfolio segments, the entire allowance is available to absorb credit losses inherent in the total loan portfolio.

For the commercial portfolio segment, the allowance for loans collectively evaluated for impairment is calculated by utilizing a dual factor internal risk rating system that encompasses both the probability that a credit facility may ultimately default (i.e. probability of default) and an estimate of the severity of the loss that would be realized upon such default (i.e. the loss-given default) and applying these risk ratings to outstanding loans and most unused commitments. The probability of default and loss-given default may be adjusted for qualitative or environmental factors that, in management's judgment, are likely to cause estimated credit losses associated with the existing portfolio to differ from the historical probability of default and loss-given default. The Company refined its methodology for estimating the allowance for commercial loans collectively evaluated for impairment and the allowance for losses on unfunded credit commitments during the first quarter of 2018. Previously the Company derived the allowance for these loans by assigning a loss factor based on an internal risk rating that estimated the probability that a credit facility may ultimately default (i.e. probability of default) rather than a dual factor internal risk rating system that encompasses both the probability of default and an estimate of the severity of the loss that would be realized upon such default (i.e. the loss-given default). During the second quarter of 2018, the Company implemented refinements to the qualitative considerations used in our reserve methodology. 

For the consumer portfolio segment, loans are generally pooled by product type with similar risk characteristics. The Company estimates the allowance for loans collectively evaluated for impairment based on forecasted losses.

The allowance for loans collectively evaluated for impairment also includes attributions for certain sectors within the commercial and consumer portfolio segments to account for probable losses based on incurred loss events that are currently not reflected in the probability of default and loss-given default. Segment attributions are calculated based on migration scenarios for the commercial portfolio and specific attributes applicable to the consumer portfolio. Segment considerations are revised periodically as portfolio and environmental conditions change.

The Company individually evaluates for impairment larger nonaccruing loans within the commercial portfolio. Residential mortgage and consumer loans are not individually evaluated for impairment unless they represent TDRs. Loans are considered impaired when the evaluation of current information regarding the borrower's financial condition, loan collateral, and cash flows indicates that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement, including interest payments. The amount of impairment is measured using the present value of expected future cash flows discounted at the loan's effective rate, the loan's observable market price, or the fair value of the collateral, if the loan is collateral dependent.

The unallocated allowance is composed of attributions that are intended to capture probable losses from adverse changes in credit migration and other inherent losses that are not currently reflected in the allowance for loan losses that are ascribed to our portfolio segments.

Significant risk characteristics considered in estimating the allowance for credit losses include the following:

• Commercial and industrial—industry specific economic trends and individual borrower financial condition

• Construction and commercial mortgage loans—type of property (i.e., residential, commercial, industrial), geographic concentrations, and risks and individual borrower financial condition

• Residential mortgage and consumer—historical and expected future charge-offs, borrower's credit, property collateral, and loan characteristics

Loans are charged-off in whole or in part when they are considered to be uncollectible. Loans in the commercial loan portfolio segment are generally considered uncollectible based on an evaluation of borrower financial condition as well as the value of any collateral. Loans in the consumer portfolio segment are generally considered uncollectible based on past due status or the execution of certain TDR modifications such as discharge through Chapter 7 bankruptcy and the value of any collateral. Recoveries of amounts previously charged off are recorded as a recovery to the allowance for loan losses.

Allowance for Losses on Unfunded Credit Commitments

The Company maintains an allowance for losses on unfunded credit commitments to absorb losses inherent in those commitments upon funding. The Company's methodology for assessing the appropriateness of this allowance is the same as that used for the allowance for loan losses (see "Allowance for Loan Losses" above) and incorporates an assumption based upon historical experience of likely utilization of the commitment. The allowance for losses on unfunded credit commitments is classified as other liabilities and the change in this allowance is recognized in the provision for credit losses. Losses on unfunded credit commitments are identified when exposures committed to customers facing difficulty are drawn upon, and subsequently result in charge-offs.

Goodwill and Identifiable Intangible Assets

Intangible assets represent purchased assets that lack physical substance and can be separately distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold, exchanged, or licensed. Intangible assets are recorded at fair value at the date of acquisition.

Intangible assets that have indefinite lives are tested for impairment at least annually, and more frequently in certain circumstances. Intangible assets that have finite lives, which include core deposit intangibles, customer relationships, non-compete agreements and trade names, are amortized either using the straight-line method or a method that patterns the consumption of the economic benefit. Intangible assets are amortized over their estimated periods of benefit, which range from three to forty years. The Company periodically evaluates the recoverability of intangible assets and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate impairment exists.

Goodwill is assessed for impairment at least annually at the reporting unit level either qualitatively or quantitatively. If the elected qualitative assessment results indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Various valuation methodologies are applied to carry out the first step of the quantitative impairment test by comparing the fair value of the reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, a second step is required to measure the amount of impairment by comparing the implied fair value of the goodwill assigned to the reporting unit with the carrying amount of that goodwill. Goodwill impairment is recognized through noninterest expense as a direct write down to its carrying amount and subsequent reversals of goodwill impairment are prohibited.

Other Investments

The Company invests in limited liability partnerships and other entities operating qualified affordable housing projects. These LIHC investments provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. The LIHC investments are initially recorded at cost, and are subsequently accounted for under the proportional amortization method, when such requirements are met to apply that methodology. Under the proportional amortization method, the Company amortizes the initial investment in proportion to the tax credits and other tax benefits allocated to the Company, with amortization recognized in the statement of income as a component of income tax expense. When the requirements are not met to apply the proportional amortization method, the investment is accounted for under the equity method of accounting with equity method losses recorded in noninterest expense. LIHC investments are reviewed periodically for impairment.

The Company also invests in limited liability entities and trusts that operate renewable energy projects, either directly or indirectly. Tax credits, taxable income and distributions associated with these renewable energy projects may be allocated to investors according to the terms of the partnership agreements. These investments are accounted for under the equity method and are reviewed periodically for impairment, considering projected operating results and realizability of tax credits. For those projects where economic benefits are not allocated based on pro rata ownership percentage, the Company accounts for its investments using the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, the Company determines its share of an investee’s earnings by comparing the amount it would hypothetically receive at each balance sheet reporting date under the liquidation provisions of the partnership agreements, assuming the investee's net assets were liquidated at amounts determined in accordance with GAAP and distributed to the Company, after taking capital transactions during the period into account.

Derivative Instruments Used in Hedging Relationships

The Company enters into a variety of derivative contracts as a means of managing the Company's interest rate exposure and designates such derivatives under qualifying hedge relationships. All such derivative instruments are recorded at fair value and are included in other assets or other liabilities. The Company offsets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting arrangement exists between the Company and the derivative counterparty.

At hedge inception, the Company designates a derivative instrument as a hedge of the fair value of a recognized asset or liability (i.e., fair value hedge), or a hedge of the variability in the expected future cash flows associated with either an existing recognized asset or liability or a probable forecasted transaction (i.e., cash flow hedge).

Where hedge accounting is applied at hedge inception, the Company formally documents its risk management objective and strategy for undertaking the hedge, which includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged, and how the hedge's effectiveness will be assessed prospectively and retrospectively. Both at the inception of the hedge and on an ongoing basis, the hedging instrument must be highly effective in offsetting changes in fair values or cash flows of the hedged item in order to qualify for hedge accounting.

For fair value hedges, any ineffectiveness is recognized in noninterest expense in the period in which it arises. For cash flow hedges, only ineffectiveness resulting from over-hedging is recorded in earnings as an adjustment to noninterest expense, with other changes in the fair value of the derivative instrument recognized in other comprehensive income. For cash flow hedges of interest rate risk, the amount in other comprehensive income is subsequently reclassified to net interest income in the period in which the cash flow from the hedged item is recognized in earnings. If a derivative instrument is no longer determined to be highly effective as a designated hedge, hedge accounting is discontinued and subsequent fair value adjustments of the derivative instrument are recorded in earnings.

Transfers of Financial Assets

Transfers of financial assets in which the Company has surrendered control over the transferred assets are accounted for as sales. Control is generally considered to have been surrendered when the transferred assets have been legally isolated from the Company, the transferee has the right to pledge or exchange the assets without any significant constraints, and the Company has not entered into a repurchase agreement, does not hold unconditional call options and has not written put options on the transferred assets. In assessing whether control has been surrendered, the Company considers whether the transferee would be a consolidated affiliate and the impact of all arrangements or agreements made contemporaneously with, or in contemplation of, the transfer, even if they were not entered into at the time of transfer.

Revenues from Contracts with Customers

Revenues from contracts with customers include service charges on deposit accounts, trust and investment management fees, brokerage commissions and fees, card processing fees, net, investment banking and syndication fees, and fees from affiliates. The Company recognizes revenue from contracts with customers according to a five-step revenue recognition model: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company’s contracts with customers generally contain a single performance obligation or separately identified performance obligations, each with a stated transaction price and generally do not involve a significant timing difference between satisfaction of the performance obligation and customer payment. Revenues are recognized over time or at a point in time as the performance obligations are satisfied. Revenues are generally not variable and do not involve significant estimates or constraints.

Transfer Pricing

Employees of the Company perform management and support services to MUFG Bank, Ltd. in connection with the operation and administration of MUFG Bank, Ltd.’s businesses in the Americas. In consideration for the services provided, MUFG Bank, Ltd. pays the Company fees under a master services agreement, which reflects market-based pricing for those services. The Company recognizes transfer pricing revenue when delivery (performance) has occurred or services have been rendered. Revenue is typically recognized based on the gross amount billed to MUFG Bank, Ltd. without netting the associated costs to perform those services. Gross presentation is typically deemed appropriate in these instances as the Company acts as a principal when providing these services directly to MUFG Bank, Ltd. Transfer pricing revenue is included in fees from affiliates revenue.

Income Taxes

The Company files consolidated U.S. federal income tax returns, foreign tax returns and various combined and separate company state income tax returns.

We record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize the deferred income tax effects of a change in tax rates in the period of the enactment.

We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. We make adjustments to these reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made, and could have a material impact on our financial condition and operating results. Foreign taxes paid are generally applied as credits to reduce U.S. federal income taxes payable.

Employee Pension and Other Postretirement Benefits

The Company provides a variety of pension and other postretirement benefit plans for eligible employees and retirees. Net periodic pension and other postretirement benefit cost is recognized over the approximate service period of plan participants and includes significant discount rate and plan asset return assumptions.

Stock-Based Compensation

The Company grants restricted stock units settled in ADRs representing shares of common stock of the Company's ultimate parent company, MUFG, to employees. The Company recognizes compensation expense on restricted stock units granted on a straight-line basis over the vesting period for non-retirement eligible employees based on the grant date fair value of MUFG ADRs. Restricted stock units granted to employees who are retirement eligible or will become retirement eligible during the vesting period are expensed as of the grant date or on a straight-line basis over the period from the grant date to the date the employee becomes retirement eligible. Forfeitures are recognized as incurred.

Business Combinations

The Company accounts for all business combinations using the acquisition method of accounting. Assets and liabilities acquired are recorded at fair value at the acquisition date, with the excess of purchase price over the fair value of the net assets acquired (including identifiable intangibles) recorded as goodwill. Management may further adjust the acquisition date fair values for a period of up to one year from the date of acquisition. The recognition at the acquisition date of an allowance for loan losses is not carried over or recorded as of acquisition date, as credit-related factors are incorporated directly into the fair value measurement of the loans. For combinations between entities under common control, assets and liabilities acquired are recorded at book value at the transfer date.

Recently Issued Accounting Pronouncements

Accounting for Leases

In February 2016, the FASB issued ASU 2016-02, Leases, which will require entities that lease assets (i.e., lessees) to recognize assets and liabilities on their balance sheet for the rights and obligations created by those leases. The accounting by entities that own the assets leased (i.e., lessors) will remain largely unchanged; however, leveraged lease accounting will no longer be permitted for leases that commence after the effective date. The ASU will also require qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases, which allows entities the option to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In December 2018, the FASB issued ASU 2018-20, Leases, which clarified lessor accounting for sales and similar taxes collected by lessors, certain lessor costs, and lease payments with lease and nonlease components. Effective January 1, 2019 the Company adopted this guidance which does not significantly impact the Company's financial position or results of operations.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provides new guidance on the accounting for credit losses for instruments that are within its scope. This new guidance is commonly referred to as the current expected credit loss (“CECL”) model. For loans and debt securities accounted for at amortized cost, certain off-balance sheet credit exposures, net investments in leases, and trade receivables, the ASU requires an entity to recognize its estimate of credit losses expected over the life of the financial instrument or exposure. Lifetime expected credit losses on purchased financial assets with credit deterioration will be recognized as an allowance with an offset to the cost basis of the asset. For available for sale debt securities, the new standard will require recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. The ASU is effective for interim and annual periods beginning on January 1, 2020, with early adoption permitted in 2019. The Company plans to adopt the ASU on January 1, 2020. The Company is in the design phase of the implementation. Management is currently assessing the impact of this guidance on the Company’s financial position or results of operations.

Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The ASU removes Step 2 of the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments, a goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The ASU will be effective for MUAH beginning January 1, 2020 on a prospective basis. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations.

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which requires premiums on certain purchased callable debt securities to be amortized to the earliest call date. Under current guidance, premiums on callable debt securities are generally amortized over the contractual life of the security. The amortization period for callable debt securities purchased at a discount will not be impacted. Effective January 1, 2019 the Company adopted this guidance which does not significantly impact the Company's financial position or results of operations.

Targeted Improvements to Accounting for Hedging Activities

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, which will make more hedging strategies eligible for hedge accounting, simplify the application of hedge accounting, and enhance the transparency and understandability of hedge results. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. It also amends the disclosure requirements and changes how entities assess effectiveness. Effective January 1, 2019 the Company adopted this guidance which does not significantly impact the Company's financial position or results of operations.

Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies disclosure requirements on fair value measurements to improve their effectiveness. The guidance permits entities to consider materiality when evaluating fair value measurement disclosures and, among other modifications, requires certain new disclosures related to Level 3 fair value measurements. The guidance will be effective for MUAH beginning January 1, 2020, with early adoption permitted. The guidance only affects disclosures in the notes to the consolidated financial statements and will not affect the Company’s financial position or results of operations.

Recently Adopted Accounting Pronouncements

Revenue from Contracts with Customers

Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers, which provides guidance on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU applies to all contracts with customers, except financial instruments, guarantees, lease contracts, insurance contracts and certain non-monetary exchanges. This guidance did not significantly affect the Company's financial position or results of operations.

Principal versus Agent Considerations (Reporting Revenue Gross versus Net)

Effective January 1, 2018, the Company adopted ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The ASU amends ASU 2014-09, Revenue from Contracts with Customers, with respect to assessing whether an entity is a principal (and thus presents revenue gross) or an agent (and thus presents revenue net). The amendments retain the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer and clarify: (1) that an entity must first identify the specified good or service being provided to the customer; (2) that the unit of account for the principal versus agent assessment is each specified good or service promised in a contract; (3) indicators and examples to help an entity evaluate whether it is the principal; and (4) how to assess whether an entity controls services performed by another party. As a result of adopting ASU 2016-08, beginning January 1, 2018, certain expenses that were previously presented as a reduction of related fees from affiliates and investment banking and syndication fees are presented in noninterest expense.

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

Effective January 1, 2018, the Company adopted ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amended the income statement presentation of the components of net periodic benefit cost for sponsored defined benefit pension and other postretirement plans. As a result of adopting ASU 2017-07, the salaries and employee benefits expense and other expense categories in noninterest expense have been adjusted to reflect adoption of this guidance as follows.

	For the Year Ended							For the Year Ended
	2017							2016
(Dollars in millions)	As Previously Reported		Adjustment			As Reported under New Guidance		As Previously Reported		Adjustment			As Reported under New Guidance
Salaries and employee benefits	$	2,376	$	119		$	2,495	$	2,355	$	84		$	2,439
Other	508		(119		)	389		479		(84		)	395

Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans

In August 2018, the FASB issued ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to improve the effectiveness of the disclosures. The guidance includes new requirements to disclose the weighted-average interest crediting rate for cash balance plans and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation. The Company early adopted this guidance, which is reflected in Note 15. This guidance did not affect the Company’s financial position or results of operations.

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Securities1

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

Securities Available for Sale

At December 31, 2018 and 2017, the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale are presented below.

	December 31, 2018
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	3,572	$	1	$	144	$	3,429
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	8,168		7		168		8,007
Privately issued	887		—		23		864
Privately issued - commercial mortgage-backed securities	1,179		3		20		1,162
Collateralized loan obligations	1,492		—		18		1,474
Other	4		—		—		4
Asset Liability Management securities	15,302		11		373		14,940
Other debt securities:
Direct bank purchase bonds	1,190		30		30		1,190
Other	188		—		4		184
Total securities available for sale	$	16,680	$	41	$	407	$	16,314

	December 31, 2017
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	3,370	$	—	$	118	$	3,252
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	9,338		2		132		9,208
Privately issued	695		3		4		694
Privately issued - commercial mortgage-backed securities	823		4		5		822
Collateralized loan obligations	1,895		10		—		1,905
Other	5		—		—		5
Asset Liability Management securities	16,126		19		259		15,886
Other debt securities:
Direct bank purchase bonds	1,495		38		30		1,503
Other	163		1		—		164
Equity securities	10		—		—		10
Total securities available for sale	$	17,794	$	58	$	289	$	17,563

The Company's securities available for sale with a continuous unrealized loss position at December 31, 2018 and 2017 are shown below, identified for periods less than 12 months and 12 months or more.

	December 31, 2018
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	147	$	1	$	3,182	$	143	$	3,329	$	144
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	1,941		8		4,797		160		6,738		168
Privately issued	398		7		383		16		781		23
Privately issued - commercial mortgage-backed securities	364		6		512		14		876		20
Collateralized loan obligations	1,428		18		—		—		1,428		18
Asset Liability Management securities	4,278		40		8,874		333		13,152		373
Other debt securities:
Direct bank purchase bonds	221		6		417		24		638		30
Other	178		4		4		—		182		4
Total securities available for sale	$	4,677	$	50	$	9,295	$	357	$	13,972	$	407

	December 31, 2017
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	1,074	$	14	$	2,128	$	104	$	3,202	$	118
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	3,606		22		4,651		110		8,257		132
Privately issued	275		1		164		3		439		4
Privately issued - commercial mortgage-backed securities	447		3		80		2		527		5
Collateralized loan obligations	12		—		—		—		12		—
Asset Liability Management securities	5,414		40		7,023		219		12,437		259
Other debt securities:
Direct bank purchase bonds	58		4		563		26		621		30
Other	79		—		—		—		79		—
Equity securities	10		—		—		—		10		—
Total securities available for sale	$	5,561	$	44	$	7,586	$	245	$	13,147	$	289

At December 31, 2018, the Company did not have the intent to sell any securities in an unrealized loss position before a recovery of the amortized cost, which may be at maturity. The Company also believes that it is more likely than not that it will not be required to sell the securities prior to recovery of amortized cost.

Agency residential mortgage-backed securities consist of securities guaranteed by a U.S. government corporation, such as Ginnie Mae, or a government-sponsored agency such as Freddie Mac or Fannie Mae. These securities are collateralized by residential mortgage loans and may be prepaid at par prior to maturity. The unrealized losses on agency residential mortgage-backed securities resulted from changes in interest rates and not from changes in credit quality. At December 31, 2018, the Company expects to recover the entire amortized cost basis of these securities because the Company determined that the strength of the issuers’ guarantees through direct obligations or support from the U.S. government is sufficient to protect the Company from losses.

Commercial mortgage-backed securities are collateralized by commercial mortgage loans and are generally subject to prepayment penalties. The unrealized losses on commercial mortgage-backed securities resulted from higher market yields since purchase. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of December 31, 2018, the Company expects to recover the entire amortized cost basis of these securities.

The Company’s CLOs consist of Cash Flow CLOs. A Cash Flow CLO is a structured finance product that securitizes a diversified pool of loan assets into multiple classes of notes. Cash Flow CLOs pay the note holders through the receipt of interest and principal repayments from the underlying loans unlike other types of CLOs that pay note holders through the trading and sale of underlying collateral. Unrealized losses typically arise from widening credit spreads and deteriorating credit quality of the underlying collateral. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of December 31, 2018, the Company expects to recover the entire amortized cost basis of these securities.

Other debt securities primarily consist of direct bank purchase bonds, which are not rated by external credit rating agencies. The unrealized losses on these bonds resulted from a higher return on capital expected by the secondary market compared with the return on capital required at the time of origination when the bonds were purchased. The Company estimates the unrealized loss for each security by assessing the underlying collateral of each security. The Company estimates the portion of loss attributable to credit based on the expected cash flows of the underlying collateral using estimates of current key assumptions, such as probability of default and loss severity. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost and potential impairment is identified. Based on the analysis performed as of December 31, 2018, the Company expects to recover the entire amortized cost basis of these securities.

The fair value of debt securities available for sale by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	December 31, 2018
(Dollars in millions)	One Year or Less		Over One Year Through Five Years		Over Five Years Through Ten Years		Over Ten Years		Total Fair Value
Asset Liability Management securities:
U.S. Treasury	$	—	$	1,284	$	2,145	$	—	$	3,429
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	—		212		1,306		6,489		8,007
Privately issued	—		—		—		864		864
Privately issued - commercial mortgage-backed securities	—		25		43		1,094		1,162
Collateralized loan obligations	—		1		352		1,121		1,474
Other	1		3		—		—		4
Asset Liability Management securities	1		1,525		3,846		9,568		14,940
Other debt securities:
Direct bank purchase bonds	26		424		612		128		1,190
Other	3		163		—		18		184
Total debt securities available for sale	$	30	$	2,112	$	4,458	$	9,714	$	16,314

The gross realized gains and losses from sales of available for sale securities for the years ended December 31, 2018, 2017 and 2016 are shown below. The specific identification method is used to calculate realized gains and losses on sales.

	For the Year Ended December 31,
(Dollars in millions)	2018		2017		2016
Gross realized gains	$	8	$	17	$	69
Gross realized losses	—		—		—

Securities Held to Maturity

At December 31, 2018 and 2017, the amortized cost, gross unrealized gains and losses recognized in OCI, carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. Management has asserted the positive intent and ability to hold these securities to maturity.

	December 31, 2018
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	528	$	—	$	—	$	528	$	1	$	2	$	527
U.S. government-sponsored agencies	722		—		—		722		1		—		723
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	8,302		1		96		8,207		11		191		8,027
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,486		—		42		1,444		17		18		1,443
Total securities held to maturity	$	11,038	$	1	$	138	$	10,901	$	30	$	211	$	10,720

	December 31, 2017
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	525	$	—	$	—	$	525	$	3	$	1	$	527
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	7,870		2		31		7,841		15		130		7,726
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,571		—		52		1,519		36		9		1,546
Total securities held to maturity	$	9,966	$	2	$	83	$	9,885	$	54	$	140	$	9,799

Amortized cost is defined as the original purchase cost, adjusted for any accretion or amortization of a purchase discount or premium, less principal payments and any impairment previously recognized in earnings. The carrying amount is the difference between the amortized cost and the amount recognized in OCI. The amount recognized in OCI primarily reflects the unrealized gain or loss at date of transfer from available for sale to the held to maturity classification, net of amortization, which is recorded in interest income on securities.

The Company's securities held to maturity with a continuous unrealized loss position at December 31, 2018 and 2017 are shown below, separately for periods less than 12 months and 12 months or more.

	December 31, 2018
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. Treasury	$	—	$	—	$	—	$	496	$	—	$	2	$	496	$	—	$	2
U.S. government agency and government-sponsored agencies—residential mortgage backed securities	668		—		11		7,191		96		180		7,859		96		191
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	29		—		—		1,396		42		18		1,425		42		18
Total securities held to maturity	$	697	$	—	$	11	$	9,083	$	138	$	200	$	9,780	$	138	$	211

	December 31, 2017
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. Treasury	$	494	$	—	$	1	$	—	$	—	$	—	$	494	$	—	$	1
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	2,649		—		31		$	4,000	31		99		6,649		31		130
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	19		—		—		1,496		52		9		1,515		52		9
Total securities held to maturity	$	3,162	$	—	$	32	$	5,496	$	83	$	108	$	8,658	$	83	$	140

The carrying amount and fair value of securities held to maturity by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	December 31, 2018
	Within One Year				Over One Year Through Five Years				Over Five Years Through Ten Years				Over Ten Years				Total
(Dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
U.S. Treasury	$	519	$	518	$	9	$	9	$	—	$	—	$	—	$	—	$	528	$	527
U.S. government-sponsored agencies	—		—		—		—		722		723		—		—		722		723
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	—		—		—		—		1,008		986		7,199		7,041		8,207		8,027
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	46		46		787		797		—		—		611		600		1,444		1,443
Total securities held to maturity	$	565	$	564	$	796	$	806	$	1,730	$	1,709	$	7,810	$	7,641	$	10,901	$	10,720

Securities Pledged and Received as Collateral

At December 31, 2018 and December 31, 2017, the Company pledged $11.9 billion and $12.3 billion of available for sale and trading securities as collateral, respectively, of which $1.3 billion and $1.2 billion, respectively, was permitted to be sold or repledged. These securities were pledged as collateral for derivative liability positions, securities loaned or sold under repurchase agreements, securities lending and to secure public and trust department deposits.

At December 31, 2018 and December 31, 2017, the Company received $33.1 billion and $31.8 billion, respectively, of collateral, of which $33.1 billion and $31.8 billion, respectively, was permitted to be sold or repledged. Of the collateral received, the Company sold or repledged $32.1 billion and $30.4 billion at December 31, 2018 and December 31, 2017, respectively, for derivative asset positions and securities borrowed or purchased under resale agreements.

For further information related to the Company's significant accounting policies on securities pledged as collateral, see Note 1 to the Consolidated Financial Statements in Part II, Item 8. "Financial Statements and Supplementary Data" of this Form 10-K.

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Loans and Allowance for Loan Losses

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Loans and Allowance for Loan Losses

Loans and Allowance for Loan Losses

The following table provides the outstanding balances of loans held for investment at December 31, 2018 and 2017.

	December 31,
(Dollars in millions)	2018			2017
Loans held for investment:
Commercial and industrial	$	24,919		$	23,281
Commercial mortgage	15,354			14,320
Construction	1,613			1,775
Lease financing	1,249			1,533
Total commercial portfolio	43,135			40,909
Residential mortgage	38,439			35,643
Home equity and other consumer loans	4,933			3,462
Total consumer portfolio	43,372			39,105
Total loans held for investment(1)	86,507			80,014
Allowance for loan losses	(474		)	(476		)
Loans held for investment, net	$	86,033		$	79,538

(1)Includes $340 million and $301 million at December 31, 2018 and December 31, 2017, respectively, for net unamortized (discounts)

and premiums and deferred (fees) and costs.

Allowance for Loan Losses

The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment:

	For the Year Ended December 31, 2018
(Dollars in millions)	Commercial			Consumer			Unallocated			Total
Allowance for loan losses, beginning of period	$	360		$	86		$	30		$	476
(Reversal of) provision for loan losses	51			58			(25		)	84
Loans charged-off	(79		)	(41		)	—			(120		)
Recoveries of loans previously charged-off	27			7			—			34
Allowance for loan losses, end of period	$	359		$	110		$	5		$	474

	For the Year Ended December 31, 2017
(Dollars in millions)	Commercial			Consumer			Unallocated		Total
Allowance for loan losses, beginning of period	$	556		$	83		$	—	$	639
(Reversal of) provision for loan losses	(132		)	37			30		(65		)
Other	2			—			—		2
Loans charged-off	(116		)	(39		)	—		(155		)
Recoveries of loans previously charged-off	50			5			—		55
Allowance for loan losses, end of period	$	360		$	86		$	30	$	476

	For the Year Ended December 31, 2016
(Dollars in millions)	Commercial			Consumer			Unallocated			Total
Allowance for loan losses, beginning of period	$	654		$	49		$	20		$	723
(Reversal of) provision for loan losses	134			44			(20		)	158
Other	2			—			—			2
Loans charged-off	(259		)	(12		)	—			(271		)
Recoveries of loans previously charged-off	25			2			—			27
Allowance for loan losses, end of period	$	556		$	83		$	—		$	639

The following tables show the allowance for loan losses and related loan balances by portfolio segment as of December 31, 2018 and 2017.

	December 31, 2018
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	62	$	13	$	—	$	75
Collectively evaluated for impairment	297		97		5		399
Total allowance for loan losses	$	359	$	110	$	5	$	474
Loans held for investment:
Individually evaluated for impairment	$	450	$	280	$	—	$	730
Collectively evaluated for impairment	42,685		43,092		—		85,777
Total loans held for investment	$	43,135	$	43,372	$	—	$	86,507

	December 31, 2017
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	58	$	15	$	—	$	73
Collectively evaluated for impairment	302		71		30		403
Total allowance for loan losses	$	360	$	86	$	30	$	476
Loans held for investment:
Individually evaluated for impairment	$	544	$	321	$	—	$	865
Collectively evaluated for impairment	40,365		38,784		—		79,149
Total loans held for investment	$	40,909	$	39,105	$	—	$	80,014

Nonaccrual and Past Due Loans

The following table presents nonaccrual loans as of December 31, 2018 and 2017.

	December 31,
(Dollars in millions)	2018		2017
Commercial and industrial	$	269	$	319
Commercial mortgage	12		20
Total commercial portfolio	281		339
Residential mortgage	121		104
Home equity and other consumer loans	19		22
Total consumer portfolio	140		126
Total nonaccrual loans	$	421	$	465
Troubled debt restructured loans that continue to accrue interest	$	299	$	348
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)	$	136	$	229

The following tables show the aging of the balance of loans held for investment by class as of December 31, 2018 and 2017.

	December 31, 2018
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	26,114	$	18	$	36	$	54	$	26,168
Commercial mortgage	15,333		17		4		21		15,354
Construction	1,593		20		—		20		1,613
Total commercial portfolio	43,040		55		40		95		43,135
Residential mortgage	38,218		175		46		221		38,439
Home equity and other consumer loans	4,893		28		12		40		4,933
Total consumer portfolio	43,111		203		58		261		43,372
Total loans held for investment	$	86,151	$	258	$	98	$	356	$	86,507

	December 31, 2017
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	24,734	$	17	$	63	$	80	$	24,814
Commercial mortgage	14,298		16		6		22		14,320
Construction	1,775		—		—		—		1,775
Total commercial portfolio	40,807		33		69		102		40,909
Residential mortgage	35,453		151		39		190		35,643
Home equity and other consumer loans	3,427		23		12		35		3,462
Total consumer portfolio	38,880		174		51		225		39,105
Total loans held for investment	$	79,687	$	207	$	120	$	327	$	80,014

Loans 90 days or more past due and still accruing interest totaled $23 million and $12 million at December 31, 2018 and 2017, respectively.

Credit Quality Indicators

Management analyzes the Company's loan portfolios by applying specific monitoring policies and procedures that vary according to the relative risk profile and other characteristics within the various loan portfolios. Loans within the commercial portfolio segment are classified as either pass or criticized. Criticized credits are those that have regulatory risk ratings of special mention, substandard or doubtful; classified credits are those that have regulatory risk ratings of substandard or doubtful. Special mention credits are potentially weak, as the borrower has begun to exhibit deteriorating trends, which, if not corrected, may jeopardize repayment of the loan and result in further downgrade. Substandard credits have well-defined weaknesses, which, if not corrected, could jeopardize the full satisfaction of the debt. A credit classified as doubtful has critical weaknesses that make full collection improbable on the basis of currently existing facts and conditions.

The following tables summarize the loans in the commercial portfolio segment monitored for credit quality based on regulatory risk ratings.

	December 31, 2018
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	25,191	$	355	$	622	$	26,168
Commercial mortgage	15,138		105		111		15,354
Construction	1,542		8		63		1,613
Total commercial portfolio	$	41,871	$	468	$	796	$	43,135

	December 31, 2017
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	23,632	$	435	$	747	$	24,814
Commercial mortgage	14,081		80		159		14,320
Construction	1,632		15		128		1,775
Total commercial portfolio	$	39,345	$	530	$	1,034	$	40,909

The Company monitors the credit quality of its consumer portfolio segment based primarily on payment status. The following tables summarize the loans in the consumer portfolio segment, which exclude $6 million and $8 million of loans covered by FDIC loss share agreements, at December 31, 2018 and 2017, respectively.

	December 31, 2018
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	38,314	$	121	$	38,435
Home equity and other consumer loans	4,912		19		4,931
Total consumer portfolio	$	43,226	$	140	$	43,366

	December 31, 2017
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	35,534	$	104	$	35,638
Home equity and other consumer loans	3,437		22		3,459
Total consumer portfolio	$	38,971	$	126	$	39,097

The Company also monitors the credit quality for substantially all of its consumer portfolio segment using credit scores provided by FICO and refreshed LTV ratios. FICO credit scores are refreshed at least quarterly to monitor the quality of the portfolio. Refreshed LTV measures the principal balance of the loan as a percentage of the estimated current value of the property securing the loan. Home equity loans are evaluated using combined LTV, which measures the principal balance of the combined loans that have liens against the property (including unused credit lines for home equity products) as a percentage of the estimated current value of the property securing the loans. The LTV ratios are refreshed on a quarterly basis, using the most recent home pricing index data available for the property location.

The following tables summarize the loans in the consumer portfolio segment based on refreshed FICO scores and refreshed LTV ratios at December 31, 2018 and 2017. These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs.

	December 31, 2018
	FICO scores
(Dollars in millions)	720 and Above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	31,589		$	6,022		$	434		$	38,045
Home equity and other consumer loans	3,349			1,448			52			4,849
Total consumer portfolio	$	34,938		$	7,470		$	486		$	42,894
Percentage of total	82		%	17		%	1		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	December 31, 2017
	FICO scores
(Dollars in millions)	720 and Above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	28,786		$	6,082		$	411		$	35,279
Home equity and other consumer loans	2,404			918			84			3,406
Total consumer portfolio	$	31,190		$	7,000		$	495		$	38,685
Percentage of total	81		%	18		%	1		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	December 31, 2018
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	36,604		$	1,361		$	4		$	75		$	38,044
Home equity loans	1,966			221			12			24			2,223
Total consumer portfolio	$	38,570		$	1,582		$	16		$	99		$	40,267
Percentage of total	96		%	4		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

	December 31, 2017
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	34,472		$	771		$	4		$	32		$	35,279
Home equity loans	2,052			248			24			33			2,357
Total consumer portfolio	$	36,524		$	1,019		$	28		$	65		$	37,636
Percentage of total	97		%	3		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

Troubled Debt Restructurings

The following table provides a summary of the Company's recorded investment in TDRs as of December 31, 2018 and 2017. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $49 million and $66 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of December 31, 2018 and 2017, respectively.

	December 31,
(Dollars in millions)	2018		2017
Commercial and industrial	$	109	$	202
Commercial mortgage	46		7
Construction	63		128
Total commercial portfolio	218		337
Residential mortgage	196		215
Home equity and other consumer loans	21		25
Total consumer portfolio	217		240
Total restructured loans	$	435	$	577

In 2018, TDR modifications in the commercial portfolio segment were substantially composed of interest rate changes, maturity extensions, forbearance, conversions from revolving lines of credit to term loans, or some combination thereof. In the consumer portfolio segment, modifications were primarily composed of maturity extensions. Charge-offs related to TDR modifications for the year ended December 31, 2018 and December 31, 2017 were de minimis. For the commercial and consumer portfolio segments, the allowance for loan losses for TDRs was measured on an individual loan basis or in pools with similar risk characteristics.

The following tables provide the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the years ended December 31, 2018 and 2017.

	For the Year Ended   December 31, 2018				For the Year Ended   December 31, 2017
(Dollars in millions)	Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)		Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)
Commercial and industrial	$	165	$	165	$	186	$	186
Commercial mortgage	4		4		5		5
Construction	—		—		152		131
Total commercial portfolio	169		169		343		322
Residential mortgage	9		9		16		16
Home equity and other consumer loans	2		2		3		3
Total consumer portfolio	11		11		19		19
Total	$	180	$	180	$	362	$	341

(1) Represents the recorded investment in the loan immediately prior to the restructuring event.

(2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

The following tables provide the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the years ended December 31, 2018 and 2017, and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due.

	December 31,
(Dollars in millions)	2018		2017
Commercial and industrial	$	—	$	19
Commercial mortgage	—		1
Total commercial portfolio	—		20
Residential mortgage	3		3
Home equity and other consumer loans	—		—
Total consumer portfolio	3		3
Total	$	3	$	23

For loans in the consumer portfolio in which impairment is measured using the present value of expected future cash flows discounted at the loan’s effective interest rate, historical payment defaults and the propensity to redefault are some of the factors considered when determining the allowance for loan losses.

Loan Impairment

Loans that are individually evaluated for impairment include larger nonaccruing loans within the commercial and industrial, construction, and commercial mortgage loan portfolios and loans modified in a TDR. The Company records an impairment allowance when the value of an impaired loan is less than the recorded investment in the loan.

The following tables show information about impaired loans by class as of December 31, 2018 and 2017.

	December 31, 2018
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	299	$	22	$	321	$	61	$	372	$	39
Commercial mortgage	25		41		66		1		25		41
Construction	—		63		63		—		—		63
Total commercial portfolio	324		126		450		62		397		143
Residential mortgage	175		71		246		12		184		85
Home equity and other consumer loans	22		12		34		1		22		21
Total consumer portfolio	197		83		280		13		206		106
Total	$	521	$	209	$	730	$	75	$	603	$	249

	December 31, 2017
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	287	$	93	$	380	$	57	$	348	$	102
Commercial mortgage	33		3		36		1		33		3
Construction	—		128		128		—		—		128
Total commercial portfolio	320		224		544		58		381		233
Residential mortgage	218		59		277		15		234		69
Home equity and other consumer loans	29		15		44		—		30		24
Total consumer portfolio	247		74		321		15		264		93
Total	$	567	$	298	$	865	$	73	$	645	$	326

The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during 2018, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	Years Ended December 31,
	2018				2017				2016
(Dollars in millions)	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
Commercial and industrial	$	309	$	12	$	463	$	18	$	531	$	4
Commercial mortgage	60		27		58		41		17		1
Construction	95		8		45		5		—		—
Total commercial portfolio	464		47		566		64		548		5
Residential mortgage	261		13		304		14		258		8
Home equity and other consumer loans	38		4		52		6		31		2
Total consumer portfolio	299		17		356		20		289		10
Total	$	763	$	64	$	922	$	84	$	837	$	15

The following table presents loan transfers from held to investment to held for sale and proceeds from sales of loans during 2018, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	Years Ended December 31,
	2018					2017					2016
(Dollars in millions)	Transfer of loans from held for investment to held for sale, net			Proceeds from sale		Transfer of loans from held for investment to held for sale, net			Proceeds from sale		Transfer of loans from held for investment to held for sale, net		Proceeds from sale
Commercial portfolio	$	47		$	638	$	780		$	926	$	1,632	$	1,182
Consumer portfolio	(3		)	—		(4		)	—		344		344
Total	$	44		$	638	$	776		$	926	$	1,976	$	1,526

Loan Concentrations

The Company's most significant concentrations of credit risk within its loan portfolio include residential mortgage loans, commercial real estate loans, and commercial and industrial loans made to the financial and insurance industry, power and utilities industry, manufacturing industry, and business services industry. At December 31, 2018, the Company had $38 billion in residential mortgage loans, substantially in California. The Company had $16 billion in loans made to the commercial real estate industry and an additional $4 billion in unfunded commitments. At December 31, 2018, the Company had $7 billion in loans made to the financial and insurance industry and an additional $7 billion in unfunded commitments. At December 31, 2018, the Company had $4 billion in loans made to the power and utilities industry and an additional $5 billion in unfunded commitments. At December 31, 2018, the Company had $4 billion in loans made to the manufacturing industry and an additional $3 billion in unfunded commitments. At December 31, 2018, the Company had $3 billion in loans made to the business services industry and an additional $2 billion in unfunded commitments.

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill during 2018 and 2017 are shown in the table below.

(Dollars in millions)	2018		2017
Goodwill, beginning of year	$	3,301	$	3,225
Net change from transferred subsidiaries (1)	—		76
Goodwill, end of year	$	3,301	$	3,301

(1) For additional information on transferred subsidiaries, see Note 21 Related Party Transactions.

For impairment testing, goodwill was assigned to the following operating segments at December 31, 2018 and 2017:

(Dollars in millions)	2018		2017
Regional Bank	$	2,134	$	2,134
U.S. Wholesale & Investment Banking	840		840
Transaction Banking	251		251
MUFG Fund Services	76		76
Goodwill, end of year	$	3,301	$	3,301

The Company reviews its goodwill for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The annual goodwill impairment test was performed as of April 1, 2018 and 2017. Based on these tests, we concluded that goodwill allocated to our reporting units was not impaired at December 31, 2018 or 2017. Fair values of the Company's reporting units exceeded their carrying amounts and did not generally represent a significant risk of goodwill impairment based on current projections and valuations.

Intangible Assets

The table below reflects the Company's identifiable intangible assets and accumulated amortization at December 31, 2018 and 2017.

	December 31, 2018							December 31, 2017
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core deposit intangibles	$	565	$	(537	)	$	28	$	565	$	(530	)	$	35
Trade names	111		(32		)	79		113		(29		)	84
Customer relationships	238		(63		)	175		238		(47		)	191
Other(1)	18		(15		)	3		19		(16		)	3
Total intangible assets with a definite useful life	$	932	$	(647	)	$	285	$	935	$	(622	)	$	313

(1) December 31, 2018 and December 31, 2017 exclude $159 million and $64 million, respectively, of mortgage servicing rights accounted for at fair value.

Total amortization expense for 2018, 2017 and 2016 was $26 million, $30 million and $28 million, respectively.

Estimated future amortization expense at December 31, 2018 is as follows:

(Dollars in millions)	Core Deposit Intangibles		Trade Name		Customer Relationships		Other		Total Identifiable Intangible Assets
Years ending December 31, :
2019	$	6	$	3	$	16	$	1	$	26
2020	5		3		16		1		25
2021	4		3		15		—		22
2022	4		3		15		—		22
2023	2		3		14		—		19
Thereafter	7		64		99		1		171
Total estimated amortization expense	$	28	$	79	$	175	$	3	$	285

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Premises and Equipment and Other Assets

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Premises and Equipment and Other Assets

Other Assets

The following table shows the balances of other assets as of December 31, 2018 and 2017.

(Dollars in millions)	December 31, 2018		December 31, 2017
Other investments	$	3,250	$	3,412
Premises and equipment, net	635		610
Software	445		424
Intangible assets	444		377
OREO	1		—
Other	4,845		4,587
Total other assets	$	9,620	$	9,410

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Variable Interest Entities

12 Months Ended

Dec. 31, 2018

Variable Interest Entities

Variable Interest Entities

Variable Interest Entities

In the normal course of business, the Company has certain financial interests in entities which have been determined to be VIEs. Generally, a VIE is a corporation, partnership, trust or other legal structure where the equity investors do not have substantive voting rights, an obligation to absorb the entity’s losses or the right to receive the entity’s returns, or the ability to direct the significant activities of the entity. The following discusses the Company’s consolidated and unconsolidated VIEs.

Consolidated VIEs

The following tables present the assets and liabilities of consolidated VIEs recorded on the Company’s consolidated balance sheets at December 31, 2018 and 2017.

	December 31, 2018
	Consolidated Assets								Consolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	—	$	43	$	43	$	—	$	—
Leasing investments	—		570		122		692		17		17
Total consolidated VIEs	$	—	$	570	$	165	$	735	$	17	$	17

	December 31, 2017
	Consolidated Assets								Consolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	—	$	68	$	68	$	—	$	—
Leasing investments	1		583		158		742		24		24
Total consolidated VIEs	$	1	$	583	$	226	$	810	$	24	$	24

LIHC Investments

The Company sponsors, manages and syndicates twoLIHC investment fund structures. These investments are designed to generate a return primarily through the realization of U.S. federal tax credits and deductions. The Company is considered the primary beneficiary and has consolidated these investments because the Company has the power to direct activities that most significantly impact the funds’ economic performances and also has the obligation to absorb losses of the funds that could potentially be significant to the funds. Neither creditors nor equity investors in the LIHC investments have any recourse to the general credit of the Company, and the Company’s creditors do not have any recourse to the assets of the consolidated LIHC investments.

Leasing Investments

The Company has leasing investments primarily in the wind energy, rail and coal industries. The Company is considered the primary beneficiary and has consolidated these investments because the Company has the power to direct the activities of these entities that significantly impact the entities’ economic performances. The Company also has the right to receive potentially significant benefits or the obligation to absorb potentially significant losses of these investments.

Unconsolidated VIEs

The following tables present the Company’s carrying amounts related to the unconsolidated VIEs at December 31, 2018 and 2017. The tables also present the Company’s maximum exposure to loss resulting from its involvement with these VIEs. The maximum exposure to loss represents the carrying amount of the Company’s involvement plus any legally binding unfunded commitments in the unlikely event that all of the assets in the VIEs become worthless. During 2018, 2017, and 2016, the Company had noncash increases in unfunded commitments on LIHC investments of $87 million, $55 million and $125 million, respectively, included within other liabilities.

	December 31, 2018
	Unconsolidated Assets										Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	28	$	198	$	976	$	1,202	$	165	$	165	$	1,202
Leasing investments	26		—		19		1,401		1,446		14		14		1,467
Other investments	—		—		—		35		35		—		—		79
Total unconsolidated VIEs	$	26	$	28	$	217	$	2,412	$	2,683	$	179	$	179	$	2,748

	December 31, 2017
	Unconsolidated Assets										Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	29	$	228	$	1,028	$	1,285	$	254	$	254	$	1,284
Leasing investments	1		—		24		1,745		1,770		53		53		1,792
Other investments	—		—		24		26		50		—		—		132
Total unconsolidated VIEs	$	1	$	29	$	276	$	2,799	$	3,105	$	307	$	307	$	3,208

LIHC Investments

The Company makes investments in partnerships and funds formed by third parties. The primary purpose of the partnerships and funds is to invest in low-income housing units and distribute tax credits and tax benefits associated with the underlying properties to investors. The Company is a limited partner investor and is allocated tax credits and deductions, but has no voting or other rights to direct the activities of the funds or partnerships, and therefore is not considered the primary beneficiary and does not consolidate these investments.

The following table presents the impact of the unconsolidated LIHC investments on our consolidated statements of income for the years ended December 31, 2018, 2017 and 2016:

	For the Years Ended December 31,
	2018		2017		2016
(Dollars in millions)
Losses from LIHC investments included in other noninterest expense	$	7	$	13	$	8
Amortization of LIHC investments included in income tax expense	136		185		129
Tax credits and other tax benefits from LIHC investments included in income tax expense	180		193		188

Leasing Investments

The unconsolidated VIEs related to leasing investments are primarily renewable energy investments. Through its subsidiaries, the Company makes equity investments in LLCs established by third party sponsors. The LLCs are created to operate and manage wind, solar, hydroelectric and cogeneration power plant projects. Power generated by the projects is sold to third parties through long-term purchase power agreements. As a limited investor member, the Company is allocated production tax credits and taxable income or losses associated with the projects. The Company has no voting or other rights to direct the significant activities of the LLCs, and therefore is not considered the primary beneficiary and does not consolidate these investments.

Other Investments

The Company has other investments in structures formed by third parties. The Company has no voting or other rights to direct the activities of the investments that would most significantly impact the entities’ performance, and therefore is not considered the primary beneficiary and does not consolidate these investments.

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Deposits

12 Months Ended

Dec. 31, 2018

Deposits [Abstract]

Deposits

Deposits

The aggregate amount of time deposits that meet or exceed the FDIC insurance limit was $4.2 billion and $3.1 billion at December 31, 2018 and 2017, respectively.

At December 31, 2018, the Company had $11.7 billion in interest bearing time deposits. Maturity information for all interest bearing time deposits is summarized below.

(Dollars in millions)	December 31, 2018
Due in one year or less	$	7,049
Due after one year through two years	4,032
Due after two years through three years	500
Due after three years through four years	91
Due after four years through five years	66
Due after five years	1
Total	$	11,739

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Securities Financing Agreements

12 Months Ended

Dec. 31, 2018

Transfers and Servicing [Abstract]

Securities Financing Agreements

Securities Financing Arrangements    

The Company enters into repurchase agreements and securities lending agreements to facilitate customer match-book activity, cover short positions and fund the Company's trading inventory. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with counterparties. The relevant agreements allow for the efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. Under these agreements and transactions, the Company either receives or provides collateral in the form of securities. In many cases, the Company is permitted to sell or repledge these securities held as collateral and use the securities to secure repurchase agreements or enter into securities lending transactions. In certain cases the Company may agree for collateral to be posted to a third party custodian under a tri-party arrangement that enables the Company to take control of such collateral in the event of a counterparty default. Default events generally include, among other things, failure to pay, insolvency or bankruptcy of a counterparty. For additional information related to securities pledged and received as collateral, refer to Note 2 to these consolidated financial statements.

The following tables present the gross obligations for securities sold under agreements to repurchase and securities loaned by remaining contractual maturity and class of collateral pledged as of December 31, 2018 and December 31, 2017.

	December 31, 2018
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	9,416	$	2,945	$	2,991	$	335	$	15,687
U.S. agency securities	264		—		55		—		319
Money market securities	—		—		49		—		49
Asset-backed securities	—		—		282		—		282
Mortgage-backed securities	9,803		1,640		7,569		—		19,012
Corporate bonds	682		130		1,227		—		2,039
Municipal securities	115		245		188		—		548
Equities	387		220		255		—		862
Total	$	20,667	$	5,180	$	12,616	$	335	$	38,798
Securities loaned:
Corporate bonds	$	1	$	—	$	—	$	—	$	1
Equities	92		—		—		—		92
Total	$	93	$	—	$	—	$	—	$	93

	December 31, 2017
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	8,244	$	2,370	$	1,046	$	1,158	$	12,818
U.S. agency securities	115		38		63		—		216
Other sovereign government obligations	—		—		4		—		4
Money market securities	1		—		6		—		7
Asset-backed securities	32		—		164		—		196
Mortgage-backed securities	8,322		4,972		5,859		250		19,403
Corporate bonds	580		620		1,125		—		2,325
Municipal securities	283		—		276		—		559
Equities	416		376		189		—		981
Total	$	17,993	$	8,376	$	8,732	$	1,408	$	36,509
Securities loaned:
Corporate bonds	$	—	$	322	$	—	$	—	$	322
Equities	446		10		101		—		557
Total	$	446	$	332	$	101	$	—	$	879

Offsetting Financial Assets and Liabilities

The Company primarily enters into derivative contracts, repurchase agreements and securities lending agreements with counterparties utilizing standard International Swaps and Derivatives Association Master Agreements and Credit Support Annex Agreements, Master Repurchase Agreements, and Master Securities Lending Agreements, respectively. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features.

The following tables present the offsetting of financial assets and liabilities as of December 31, 2018 and December 31, 2017.

	December 31, 2018
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	871	$	354	$	517	$	14	$	—	$	503
Securities borrowed or purchased under resale agreements	33,974		11,606		22,368		22,291		—		77
Total	$	34,845	$	11,960	$	22,885	$	22,305	$	—	$	580
Financial Liabilities:
Derivative liabilities	$	804	$	322	$	482	$	69	$	—	$	413
Securities loaned or sold under repurchase agreements	38,891		11,606		27,285		26,434		—		851
Total	$	39,695	$	11,928	$	27,767	$	26,503	$	—	$	1,264

	December 31, 2017
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,322	$	607	$	715	$	25	$	—	$	690
Securities borrowed or purchased under resale agreements	31,845		10,951		20,894		20,816		—		78
Total	$	33,167	$	11,558	$	21,609	$	20,841	$	—	$	768
Financial Liabilities:
Derivative liabilities	$	1,127	$	620	$	507	$	142	$	—	$	365
Securities loaned or sold under repurchase agreements	37,388		10,951		26,437		25,639		—		798
Total	$	38,515	$	11,571	$	26,944	$	25,781	$	—	$	1,163

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Commercial Paper and Other Short-Term Borrowings

12 Months Ended

Dec. 31, 2018

Short-term Debt [Abstract]

Commercial Paper and Other Short-Term Borrowings

Commercial Paper and Other Short-Term Borrowings

The following table is a summary of the Company's commercial paper and other short-term borrowings:

(Dollars in millions)	December 31, 2018		December 31, 2017
Debt issued by MUB
Commercial paper, with a weighted average interest rate of 2.39% and 1.26% at December 31, 2018 and December 31, 2017, respectively	$	382	$	347
Federal Home Loan Bank advances, with a weighted average interest rate of 2.52% and 1.42% at December 31, 2018 and December 31, 2017, respectively	7,800		5,750
Total debt issued by MUB	8,182		6,097
Debt issued by other MUAH subsidiaries
Short-term debt due to MUFG Bank, Ltd., with weighted average interest rates of 3.01% and 1.88% at December 31, 2018 and December 31, 2017, respectively	145		168
Short-term debt due to affiliates, with weighted average interest rates of (-0.07)% and (-0.09)% at December 31, 2018 and December 31, 2017, respectively	936		801
Total debt issued by other MUAH subsidiaries	1,081		969
Total commercial paper and other short-term borrowings	$	9,263	$	7,066

At December 31, 2018, Federal Home Loan Bank advances had a weighted average maturity of 168 days. The commercial paper outstanding had a weighted average remaining maturity of 97 days. The short-term debt due to MUFG Bank, Ltd. had a weighted average remaining maturity of 53 days and the short-term debt due to affiliates had a weighted average remaining maturity of 244 days.

Short-term debt due to MUFG Bank, Ltd. consists of both secured and unsecured fixed and floating rate borrowings.

MUSA maintains an uncommitted, unsecured lending facility with Mitsubishi UFJ Securities Holdings Co., Ltd. under which it may borrow up to JPY 160 billion (USD equivalent $1.4 billion). Under the terms of the facility, MUSA can choose to borrow in Japanese Yen or US Dollars. Japanese Yen denominated borrowings include an irrevocable extension option allowing MUSA to extend the maturity of an individual draw by 100 days at any time prior to its original, stated maturity. At December 31, 2018, MUSA had JPY 103 billion ($936 million USD equivalent) drawn under this facility.

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Long-Term Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt consists of borrowings having an original maturity of one year or more. The following is a summary of the Company's long-term debt:

(Dollars in millions)	December 31, 2018		December 31, 2017
Debt issued by MUAH
Senior debt:
Floating rate senior notes due February 2018. These notes, which bore interest at 0.57% above 3-month LIBOR, had a rate of 1.97% at December 31, 2017	$	—	$	250
Fixed rate 1.625% notes due February 2018	—		450
Fixed rate 2.25% notes due February 2020	—		998
Fixed rate 3.50% notes due June 2022	398		398
Fixed rate 3.00% notes due February 2025	397		496
Senior debt due to MUFG Bank, Ltd:
Floating rate debt due March 2020. This note, which bore interest at 0.86% above 3-month LIBOR, had a rate of 2.45% at December 31, 2017	—		545
Floating rate debt due September 2020. This note, which bore interest at 0.85% above 3-month LIBOR, had a rate of 2.54% at December 31, 2017	—		3,500
Floating rate debt due December 2021. This note, which bears interest at 0.81% above 3-month LIBOR, had a rate of 3.58% at December 31, 2018	1,625		—
Floating rate debt due December 2022. This note, which bears interest at 0.90% above 3-month LIBOR, had a rate of 3.67% at December 31, 2018	3,250		—
Floating rate debt due December 2023. This note, which bears interest at 0.99% above 3-month LIBOR, had a rate of 3.76% at December 31, 2018	1,625		—
Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at December 31, 2018 and at December 31, 2017	24		24
Subordinated debt due to MUFG Bank, Ltd:
Floating rate subordinated debt due December 2023. This note, which bore interest at 1.38% above 3-month LIBOR, had a rate of 3.07% at December 31, 2017	—		300
Junior subordinated debt payable to trusts:
Floating rate note due September 2036. This note had an interest rate of 4.49% at December 31, 2018 and 3.29% at December 31, 2017	36		36
Total debt issued by MUAH	7,355		6,997
Debt issued by MUB
Senior debt:
Fixed rate FHLB of San Francisco advances due between January 2019 and December 2023. These notes bear a combined weighted average rate of 2.66% at December 31, 2018 and 1.51% at December 31, 2017	9,100		1,500
Fixed rate 2.625% notes due September 2018	—		1,000
Fixed rate 2.25% notes due May 2019	498		497
Subordinated debt due to MUFG Bank, Ltd:
Floating rate subordinated debt due June 2023. This note, which bore interest at 1.20% above 3-month LIBOR, had a rate of 2.89% at December 31, 2017	—		750
Other	34		63
Total debt issued by MUB	9,632		3,810
Debt issued by other MUAH subsidiaries
Senior debt due to MUFG Bank, Ltd:
Various floating rate borrowings due between December 2020 and May 2021. These notes, which bear interest above 3-month LIBOR had a weighted average interest rate of 2.80% at December 31, 2018 and 1.78% at December 31, 2017	250		291
Various fixed rate borrowings due between February 2019 and May 2024 with a weighted average interest rate of 1.82% (between 0.14% and 2.44%) at December 31, 2018 and 2.12% (between 1.37% and 2.65%) at December 31, 2017	244		339
Subordinated debt due to Affiliate:
Floating rate borrowings due March 2019. These notes, which bear interest above 6-month LIBOR had an interest rate of 4.13% at December 31, 2018 and 2.95% (between 2.88% and 3.04%) at December 31, 2017	75		185

Non-recourse debt due to MUFG Bank, Ltd:
Various floating rate non-recourse borrowings due between February 2019 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted average interest rate of 4.09% (between 2.75% and 4.17%) at December 31, 2018 and 3.07% (between 1.49% and 5.58%) at December 31, 2017	53		79
Fixed rate non-recourse borrowings due between January 2019 and July 2023 which had an interest rate of 3.05% at December 31, 2018 and 3.27% at December 31, 2017	187		240
Other non-recourse debt:
Various floating rate non-recourse borrowings due between February 2019 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted average interest rate of 4.21% (between 4.17% and 4.48%) at December 31, 2018 and 2.88% (between 2.50% and 3.54%) at December 31, 2017	89		185
Fixed rate non-recourse borrowings due December 2026 which had an interest rate of 5.34% at December 31, 2018 and December 31, 2017	33		36
Total debt issued by other MUAH subsidiaries	931		1,355
Total long-term debt	$	17,918	$	12,162

Senior Debt

Certain of the debt issuances are repayable prior to maturity at the Company’s option at a redemption price equal to 100% of par plus accrued interest. MUAH senior debt was issued under a shelf registration statement with the SEC, which expired as of January 29, 2018. In the fourth quarter of 2018, the Company redeemed all of the $1.0 billion of the senior notes due 2020 and $100 million of the senior notes due 2025.

MUB senior debt is issued as part of MUB’s $12 billion bank note program under which MUB may issue, from time to time, senior unsecured debt obligations with maturities of more than one year from their respective dates of issue and subordinated debt obligations with maturities of five years or more from their respective dates of issue. At December 31, 2018 there is $5.9 billion available for issuance under the program. MUB does not have any firm commitments in place to sell notes under this program.

MUAH Senior Debt due to MUFG Bank, Ltd.

In December 2018, MUAH entered into a Master Internal Total Loss Absorbing Capacity Loan Agreement with MUFG Bank, Ltd., under which MUAH initially borrowed an aggregate of $6.5 billion to comply with the Federal Reserve’s TLAC rule (12 CFR Section 252.165). MUAH may prepay the notes, in whole or in part, two years prior to the stated maturities. The outstanding principal of the notes can be declared due and payable immediately, together with any accrued and unpaid interest, in the event of liquidation, insolvency or similar proceeding with respect to MUAH or all or substantially all of its property. Under certain circumstances, the Federal Reserve may issue a conversion order pursuant to the TLAC rule (12 CFR Section 252.163) that would result in the conversion of any then-outstanding note, in whole or in part, to MUAH equity issued to MUFG Bank, Ltd.

During the first quarter of 2017, MUAH borrowed $3.5 billion from MUFG Bank, Ltd. in the form of a senior loan. This loan and the $545 million loan outstanding at December 31, 2017 were repaid early in conjunction with the December 2018 TLAC borrowing.

Senior Debt due to MUFG Bank, Ltd. by other MUAH subsidiaries

MUAH’s subsidiaries also borrow on a long-term basis from MUFG Bank, Ltd. At December 31, 2018, $250 million of senior debt issued to MUFG Bank, Ltd. was floating rate and linked to customer deposits maintained at MUFG Bank, Ltd.’s New York Branch. An additional $244 million was fixed rate, amortizing funding tied to specific assets owned by MUAH’s subsidiaries.

FHLB Senior Debt

The Bank borrows periodically from the FHLB on a medium-term basis. The advances are secured by certain of the Bank's assets and bear either a fixed or a floating interest rate. The floating rates are tied to the three-month LIBOR plus a spread, reset every 90 days. As of December 31, 2018 and December 31, 2017, the Bank had $44.3 billion and $43.0 billion of pledged loans, respectively, as collateral for short-term and medium-term advances from the FHLB.

Subordinated Debt due to MUFG Bank, Ltd.

The terms and conditions of the subordinated debt due to MUFG Bank, Ltd. were equivalent to those which would apply in a similar transaction with a non-related party. The subordinated debt due to MUFG Bank, Ltd. was a junior obligation to MUAH’s and to the Bank's existing and future outstanding senior indebtedness, and qualified as Tier 2 capital under the federal banking agency risk-based capital guidelines. This debt was repaid early during 2018.

Subordinated Debt due to Affiliate

MUSA maintains subordinated funding provided by an affiliate. This subordinated debt is a junior obligation to MUSA’s existing and future outstanding senior indebtedness.

Non-recourse Debt

Non-recourse debt serves as funding for certain lease financings offered to customers. The lenders are secured by an interest in the underlying leased assets and have no recourse to the Company or its subsidiaries. Interest and principal on this debt is serviced entirely by the underlying assets and is not supported by the Company.

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Fair Value Measurement and Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurement and Fair Value of Financial Instruments

Fair Value Measurement and Fair Value of Financial Instruments

Valuation Methodologies

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between willing market participants at the measurement date. The Company has an established and documented process for determining fair value for financial assets and liabilities that are measured at fair value on either a recurring or nonrecurring basis. When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair value is based upon valuation techniques that use, where possible, current market-based or independently sourced parameters, such as yield curves, foreign exchange rates, credit spreads, commodity prices and implied volatilities. Valuation adjustments may be made to ensure the financial instruments are recorded at fair value. These adjustments include amounts that reflect counterparty credit quality and that consider the Company's own creditworthiness in determining the fair value of its trading assets and liabilities.

Fair Value Hierarchy

In determining fair value, the Company maximizes the use of observable market inputs and minimizes the use of unobservable inputs. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect the Company's estimate about market data. Based on the observability of the significant inputs used, the Company classifies its fair value measurements in accordance with the three-level hierarchy as defined by GAAP. This hierarchy is based on the quality, observability, and reliability of the information used to determine fair value. The Company’s policy is to recognize transfers in and out of Level 1, 2 and 3 as of the end of a reporting period.

Level 1:    Valuations are based on quoted prices in active markets for identical assets or liabilities. Since the valuations are based on quoted prices that are readily available in an active market, they do not entail a significant degree of judgment.

Level 2:    Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data.

Level 3:    Valuations are based on at least one significant unobservable input that is supported by little or no market activity and is significant to the fair value measurement. Values are determined using pricing models and discounted cash flow models that include management judgment and estimation, which may be significant.

In assigning the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are measured at fair value. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. The level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. Therefore, an item may be classified in Level 3 even though there may be many significant inputs that are readily observable.

Valuation Processes

The Company has established a valuation committee to oversee its valuation framework for measuring fair value and to establish valuation policies and procedures. The valuation committee's responsibilities include reviewing fair value measurements and categorizations within the fair value hierarchy and monitoring the use of pricing sources, mark-to-model valuations, dealer quotes and other valuation processes. The valuation committee reports to the Company's Disclosure & Accounting Committee and meets at least quarterly.

Independent price verification is performed periodically by the Company to test the market data and valuations of substantially all instruments measured at fair value on a recurring basis. As part of its independent price verification procedures, the Company compares pricing sources, tests data variances within certain thresholds and performs variance analysis, utilizing third party valuations and both internal and external models. Results are formally reported on a quarterly basis to the valuation committee.

A description of the valuation methodologies used for certain financial assets and liabilities measured at fair value is as follows:

Recurring Fair Value Measurements:

Trading Account Assets:    Trading account assets are recorded at fair value and primarily consist of securities and derivatives held for trading purposes. See discussion below on securities available for sale, which utilize the same valuation methodology as trading account securities. See also discussion below on derivatives valuation.

Securities Available for Sale:    Securities available for sale are recorded at fair value based on readily available quoted market prices, if available. When available, these securities are classified as Level 1 and include exchange traded equities. If such quoted market prices are not available, management utilizes third-party pricing services and broker quotations from dealers in the specific instruments. These securities are classified as Level 2 and include U.S. Treasuries, U.S. government-sponsored agencies, RMBS and CMBS, CLOs, and certain other debt securities. If no market prices or broker quotes are available, internal pricing models are used. To the extent possible, these pricing model valuations utilize observable market inputs obtained for similar securities. Typical inputs include LIBOR and U.S. Treasury yield curves, benchmark yields, consensus prepayment estimates and credit spreads. When pricing model valuations use significant unobservable inputs, the securities are classified as Level 3. These other debt securities primarily include direct bank purchase bonds. The valuation of these securities is based upon a return on equity method, which incorporates a market-required return on capital, probability of default and loss severity.

Other Assets:    Other assets included mortgage servicing rights, loans held for sale and derivative contracts. The fair value of the Company's mortgage servicing rights asset is determined using a discounted cash flow model with significant unobservable inputs, primarily influenced by forecasted future servicing revenues and prepayment speed assumptions. The fair value of the Company's loans held for sale is based on secondary market offerings for loans with similar characteristics. Mortgage servicing rights and loans held for sale are classified as Level 3. See discussion below on derivatives.

Derivatives:    The Company's derivatives are primarily traded in over-the-counter markets where quoted market prices are not readily available. The Company values its derivatives using pricing models that are widely accepted in the financial services industry with inputs that are observable in the market or can be derived from or corroborated by observable market data. These models reflect the contractual terms of the derivatives including the period to maturity and market observable inputs such as yield curves and option volatility. Valuation adjustments are made to reflect counterparty credit quality and to consider the creditworthiness of the Company. These derivatives, which are included in trading account assets, trading account liabilities, other assets and other liabilities are generally classified as Level 2. Trading account assets and trading account liabilities include Level 3 derivatives comprised of embedded derivatives contained in market-linked CDs and matched over-the-counter options, whose fair value is obtained through unadjusted third party broker quotes, which incorporate significant unobservable inputs.

Trading Account Liabilities:    Trading account liabilities are recorded at fair value and primarily consist of securities sold, not yet purchased and derivatives. See discussion above on derivatives valuation. Securities sold, not yet purchased consist of U.S. Treasury, U.S. government-sponsored agencies, state and municipal, sovereign government obligations, corporate bonds, ABS and equities and are classified as Level 2, which utilize the same valuation methodology as securities available for sale.

Other Liabilities:    Other liabilities included the FDIC clawback liability and derivative contracts. The fair value of the Company's FDIC clawback liability is determined using a discounted cash flow model with significant unobservable inputs, which include probability of default and loss severity. The FDIC clawback liability is classified as Level 3. See discussion above on derivatives.

Nonrecurring Fair Value Measurements:

Individually Impaired Loans:    Individually impaired loans are valued at the time the loan is identified as impaired based on the present value of the remaining expected cash flows. Because the discount factor applied is based on the loan's original effective yield rather than a current market rate, that present value does not represent fair value. However, as a practical expedient, an impaired loan may be measured based on a loan's observable market price or the underlying collateral securing the loan (provided the loan is collateral dependent), which does approximate fair value. Collateral may be real estate or business assets, including equipment. The value of collateral is determined based on independent appraisals. Appraised values may be adjusted based on management's historical knowledge, changes in market conditions from the time of valuation, and management's knowledge of the client and the client's business. The loan's market price is determined using market pricing for similar assets, adjusted for management judgment. Impaired loans are reviewed and evaluated at least quarterly for additional impairment and adjusted accordingly. Impaired loans that are adjusted to fair value based on underlying collateral or the loan's market price are classified as Level 3.

Loans Held for Sale:    Residential mortgage and commercial loans held for sale are recorded at the lower of cost or fair value. The fair value of fixed-rate residential loans is based on whole loan forward prices obtained from GSEs. These loans are classified as Level 2. The fair value of commercial loans held for sale may be based on secondary market offerings for loans with similar characteristics. These loan values are classified as Level 3.

Private Equity Investments and Renewable Energy Investments:    Private equity investments and renewable energy investments are recorded either at cost or using the equity method and are evaluated for impairment. The valuation of these investments requires significant management judgment due to the absence of quoted market prices, lack of liquidity and the long-term nature of these assets. When required, the fair value of the investments is estimated using the net asset value or based on the investee's business model, current and projected financial performance, capital needs and our exit strategy. Private equity investments and renewable energy investments are generally classified as Level 3.

Software: Software is valued at the time it is identified as impaired. Fair value is determined using market pricing for similar assets, adjusted for management judgment. Software that is adjusted to fair value is classified as Level 3.

Consolidated LIHC VIE: The fair value of consolidated LIHC VIE investments is determined using a discounted cash flow analysis. Consolidated LIHC VIE investments are generally classified as Level 3.

Fair Value Measurements on a Recurring Basis

The following tables present financial assets and financial liabilities measured at fair value on a recurring basis at December 31, 2018 and 2017, by major category and by valuation hierarchy level.

	December 31, 2018
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment (1)			Fair Value
Assets
Trading account assets(2):
U.S. Treasury securities	$	—		$	2,998		$	—		$	—		$	2,998
U.S. government-sponsored agency securities	—			73			—			—			73
State and municipal securities	—			10			—			—			10
Commercial paper	—			51			—			—			51
Corporate bonds	—			1,367			—			—			1,367
Asset-backed securities	—			299			—			—			299
Mortgage-backed securities	—			5,785			—			—			5,785
Equities	127			—			—			—			127
Interest rate derivative contracts	9			522			—			(130		)	401
Commodity derivative contracts	—			25			—			(24		)	1
Foreign exchange derivative contracts	1			259			—			(170		)	90
Equity derivative contracts	9			—			13			(11		)	11
Total trading account assets	146			11,389			13			(335		)	11,213
Securities available for sale(3):
U.S. Treasury	—			3,429			—			—			3,429
Residential mortgage-backed securities:
U.S. government and government-sponsored agencies	—			8,007			—			—			8,007
Privately issued	—			864			—			—			864
Privately issued - commercial mortgage-backed securities	—			1,162			—			—			1,162
Collateralized loan obligations	—			1,474			—			—			1,474
Other	—			4			—			—			4
Other debt securities:
Direct bank purchase bonds	—			—			1,190			—			1,190
Other	—			43			141			—			184
Total securities available for sale	—			14,983			1,331			—			16,314
Other assets:
Mortgage servicing rights(2)	—			—			159			—			159
Loans held for sale(2)	—			—			117			—			117
Interest rate hedging contracts(3)	—			6			—			(3		)	3
Other derivative contracts(2)	—			26			1			(16		)	11
Equity securities(2)	9			—			—			—			9
Total other assets	9			32			277			(19		)	299
Total assets	$	155		$	26,404		$	1,621		$	(354	)	$	27,826
Percentage of total	—		%	95		%	6		%	(1		)%	100		%
Percentage of total Company assets	—		%	16		%	1		%	—		%	17		%
Liabilities
Trading account liabilities(2):
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	2,753		$	—		$	—		$	2,753
Commercial paper	—			10			—			—			10
Corporate bonds	—			717			—			—			717
Equities	70			—			—			—			70
Trading derivatives:
Interest rate derivative contracts	55			545			—			(262		)	338
Commodity derivative contracts	—			18			—			(4		)	14
Foreign exchange derivative contracts	—			168			—			(56		)	112
Equity derivative contracts	—			—			13			—			13
Total trading account liabilities	125			4,211			13			(322		)	4,027
Other liabilities:
FDIC clawback liability(2)	—			—			116			—			116
Other derivative contracts(2)	—			3			2			—			5
Total other liabilities	—			3			118			—			121
Total liabilities	$	125		$	4,214		$	131		$	(322	)	$	4,148
Percentage of total	3		%	102		%	3		%	(8		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	—		%	3		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

(2) Fair value through net income

(3) Fair value through other comprehensive income

	December 31, 2017
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment (1)			Fair Value
Assets
Trading account assets(2):
U.S. Treasury securities	$	—		$	1,926		$	—		$	—		$	1,926
U.S. government-sponsored agency securities	—			118			—			—			118
State and municipal securities	—			11			—			—			11
Commercial paper	—			7			—			—			7
Other sovereign government obligations	—			8			—			—			8
Corporate bonds	—			1,054			—			—			1,054
Asset-backed securities	—			199			—			—			199
Mortgage-backed securities	—			6,339			—			—			6,339
Equities	193			—			—			—			193
Interest rate derivative contracts	7			870			1			(353		)	525
Commodity derivative contracts	—			50			—			(49		)	1
Foreign exchange derivative contracts	—			249			1			(68		)	182
Equity derivative contracts	2			—			137			(135		)	4
Total trading account assets	202			10,831			139			(605		)	10,567
Securities available for sale(3):
U.S. Treasury	—			3,252			—			—			3,252
Residential mortgage-backed securities:
U.S government and government-sponsored agencies	—			9,208			—			—			9,208
Privately issued	—			694			—			—			694
Privately issued - commercial mortgage-backed securities	—			822			—			—			822
Collateralized loan obligations	—			1,905			—			—			1,905
Other	—			5			—			—			5
Other debt securities:
Direct bank purchase bonds	—			—			1,503			—			1,503
Other	—			68			96			—			164
Equity securities	10			—			—			—			10
Total securities available for sale	10			15,954			1,599			—			17,563
Other assets:
Mortgage servicing rights(2)	—			—			64			—			64
Interest rate hedging contracts(3)	—			2			—			—			2
Other derivative contracts(2)	—			2			1			(2		)	1
Total other assets	—			4			65			(2		)	67
Total assets	$	212		$	26,789		$	1,803		$	(607	)	$	28,197
Percentage of total	1		%	95		%	6		%	(2		)%	100		%
Percentage of total Company assets	—		%	17		%	1		%	—		%	18		%
Liabilities
Trading account liabilities(2):
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	2,709		$	—		$	—		$	2,709
Other sovereign government obligations	—			7			—			—			7
Corporate bonds	—			348			—			—			348
Equities	35			—			—			—			35
Trading derivatives:
Interest rate derivative contracts	3			643			—			(382		)	264
Commodity derivative contracts	—			33			—			(20		)	13
Foreign exchange derivative contracts	1			144			1			(66		)	80
Equity derivative contracts	7			—			137			—			144
Total trading account liabilities	46			3,884			138			(468		)	3,600
Other liabilities:
FDIC clawback liability(2)	—			—			113			—			113
Interest rate hedging contracts(3)	—			149			—			(149		)	—
Other derivative contracts(2)	—			3			6			(3		)	6
Total other liabilities	—			152			119			(152		)	119
Total liabilities	$	46		$	4,036		$	257		$	(620	)	$	3,719
Percentage of total	1		%	109		%	7		%	(17		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	—		%	3		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

(2) Fair value through net income

(3) Fair value through other comprehensive income

The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2018 and 2017. Level 3 securities available for sale at December 31, 2018 primarily consist of direct bank purchase bonds.

	For the Year Ended
	December 31, 2018
(Dollars in millions)	Trading Assets			Securities Available for Sale			Other Assets			Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	139		$	1,600		$	65		$	(138	)	$	(119	)
Total gains (losses) (realized/unrealized):
Included in income before taxes	(10		)	—			(8		)	9			1
Included in other comprehensive income	—			(9		)	—			—			—
Purchases/additions	—			126			220			—			—
Settlements	(116		)	(386		)	—			116			—
Transfers in (out) of level 3	—			—			—			—			—
Asset (liability) balance, end of period	$	13		$	1,331		$	277		$	(13	)	$	(118	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	(10	)	$	—		$	(8	)	$	9		$	1

	For the Year Ended
	December 31, 2017
(Dollars in millions)	Trading Assets			Securities Available for Sale			Other Assets			Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	168		$	1,638		$	24		$	(166	)	$	(121	)
Total gains (losses) (realized/unrealized):
Included in income before taxes	73			—			(3		)	(72		)	2
Included in other comprehensive income	—			(3		)	—			—			—
Purchases/additions	—			83			44			—			—
Settlements	(102		)	(118		)	—			100			—
Asset (liability) balance, end of period	$	139		$	1,600		$	65		$	(138	)	$	(119	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	73		$	—		$	(3	)	$	(72	)	$	2

The following table presents information about significant unobservable inputs related to the Company's significant Level 3 assets and liabilities at December 31, 2018.

	December 31, 2018
(Dollars in millions)	Level 3 Fair Value		Valuation Technique	Significant Unobservable Input(s)	Range of Inputs		Weighted Average
Securities available for sale:
Direct bank purchase bonds	$	1,190	Return on equity	Market-required return on capital	8.0 - 10.0	%	9.5	%
				Probability of default	0.0 - 25.0	%	0.3	%
				Loss severity	10.0 - 60.0	%	22.4	%

The direct bank purchase bonds generally use a return on equity valuation technique. This technique uses significant unobservable inputs such as market-required return on capital, probability of default and loss severity. Increases (decreases) in any of these inputs in isolation would result in a lower (higher) fair value measurement.

Fair Value Measurement on a Nonrecurring Basis

Certain assets may be measured at fair value on a nonrecurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis during the years ended December 31, 2018 and 2017 that were still held on the consolidated balance sheet as of the respective periods ended, the following tables present the fair value of such assets by the level of valuation assumptions used to determine each fair value adjustment.

	December 31, 2018								For the Year Ended December 31, 2018
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans:
Impaired loans	$	151	$	—	$	—	$	151	$	(106	)
Other assets:
Loans held for sale	85		—		—		85		(29		)
Private equity investments	11		—		—		11		(2		)
Renewable energy investments	—		—		—		—		(2		)
Software	—		—		—		—		(4		)
Consolidated LIHC VIE	43		—		—		43		(8		)
Total	$	290	$	—	$	—	$	290	$	(151	)

	December 31, 2017								For the Year Ended December 31, 2017
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans:
Impaired loans	$	79	$	—	$	—	$	79	$	(34	)
Other assets:
Loans held for sale	—		—		—		—		(3		)
Renewable energy investments	—		—		—		—		2
Software	—		—		—		—		(22		)
Consolidated LIHC VIE	66		—		—		66		(21		)
Total	$	145	$	—	$	—	$	145	$	(78	)

Fair Value of Financial Instruments Disclosures

In addition to financial instruments recorded at fair value in the Company's financial statements, the disclosure of the estimated fair value of financial instruments that are not carried at fair value is also required. Excluded from this disclosure requirement are lease financing arrangements, investments accounted for under the equity method, employee pension and other postretirement obligations and all nonfinancial assets and liabilities, including goodwill and other intangible assets such as long-term customer relationships. The fair values presented are estimates for certain individual financial instruments and do not represent an estimate of the fair value of the Company as a whole.

Certain financial instruments that are not recognized at fair value on the consolidated balance sheet are carried at amounts that approximate fair value due to their short-term nature. These financial instruments include cash and due from banks, interest bearing deposits in banks, federal funds sold and purchased, securities borrowed or purchased under resale agreements, securities loaned or sold under repurchase agreements and commercial paper. In addition, the fair value of deposits with no stated maturity, such as noninterest bearing demand deposits, interest bearing checking, and market rate and other savings are deemed to equal their carrying amounts.

Financial instruments for which their carrying amounts do not approximate fair value include securities held to maturity, loans held for investment, interest bearing deposits with stated maturities, certain other short-term borrowings, long-term debt and off-balance sheet instruments.

Securities Held to Maturity:    The fair value of U.S. Treasury, U.S. government agency and government-sponsored agencies securities, including RMBS and CMBS classified as held to maturity are based on unadjusted third party pricing service prices.

Loans Held for Investment:    The fair values of mortgage loans were estimated based on quoted market prices for loans with similar credit and interest rate risk characteristics. The fair values of other loans were estimated based upon the type of loan and maturity and were determined by discounting the future expected cash flows using the current origination rates for similar loans made to borrowers with similar credit ratings and include adjustments for liquidity premiums.

Interest Bearing Deposits:    The fair values of savings accounts and certain money market accounts were based on the amounts payable on demand at the reporting date. The fair value of fixed maturity CDs was estimated using a discounted cash flow calculation that applies current interest rates being offered on certificates with similar maturities.

Commercial Paper and Other Short-Term Borrowings:    The fair values of Federal Reserve Bank term borrowings, FHLB borrowings and term federal funds purchased were estimated using a discounted cash flow calculation that applies current market rates for applicable maturities. The carrying amounts of other short-term borrowed funds were assumed to approximate their fair value due to their limited duration.

Long-Term Debt:    The fair value of senior and subordinated debt was estimated using either a discounted cash flow analysis based on current market interest rates for debt with similar maturities and credit quality or estimated using market quotes. The fair value of junior subordinated debt payable to trusts was estimated using market quotes of similar securities.

Off-Balance Sheet Instruments:    Commitments to extend credit and issued standby and commercial letters of credit are instruments that generate ongoing fees, which are recognized over the term of the commitment period. The Company maintains an allowance for losses on unfunded credit commitments. At December 31, 2018, the carrying amount of these instruments was the amount of deferred fees and the fair value was estimated using a discounted cash flow calculation and reflected the portion of unused commitments expected to become funded. At December 31, 2017, the carrying value and fair value were the carrying amount of the deferred fees plus the related reserve.

The tables below present the carrying amount and estimated fair value of certain financial instruments, all of which are accounted for at amortized cost, classified by valuation hierarchy level as of December 31, 2018 and 2017.

	December 31, 2018
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	8,350	$	8,350	$	8,350	$	—	$	—
Securities borrowed or purchased under resale agreements	22,368		22,368		—		22,368		—
Securities held to maturity	10,901		10,720		—		10,720		—
Loans held for investment (1)	84,805		84,729		—		—		84,729
Other assets	48		48		48		—		—
Liabilities
Time deposits	$	11,739	$	11,714	$	—	$	11,714	$	—
Securities loaned or sold under repurchase agreements	27,285		27,285		—		27,285		—
Commercial paper and other short-term borrowings	9,263		9,263		—		9,263		—
Long-term debt	17,918		17,961		—		17,961		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	120	$	242	$	—	$	—	$	242

(1) Excludes lease financing. The carrying amount is net of the allowance for loan losses.

	December 31, 2017
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	3,392	$	3,392	$	3,392	$	—	$	—
Securities borrowed or purchased under resale agreements	20,894		20,894		—		20,894		—
Securities held to maturity	9,885		9,799		—		9,799		—
Loans held for investment (1)	78,023		79,051		—		—		79,051
Liabilities
Deposits	$	84,787	$	84,743	$	—	$	84,743	$	—
Securities loaned or sold under repurchase agreements	26,437		26,437		—		26,437		—
Commercial paper and other short-term borrowings	7,066		7,066		—		7,066		—
Long-term debt	12,162		12,162		—		12,162		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	174	$	174	$	—	$	—	$	174

(1) Excludes lease financing. The carrying amount is net of the allowance for loan losses.

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Derivative Instruments and Other Financial Instruments Used For Hedging

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Other Financial Instruments Used For Hedging

Derivative Instruments and Other Financial Instruments Used For Hedging

The Company enters into certain derivative and other financial instruments primarily to assist customers with their risk management objectives and to manage the Company’s exposure to interest rate risk. When entering into derivatives on behalf of customers, the Company generally acts as a financial intermediary by offsetting a significant portion of the market risk for these derivatives with third parties. The Company may also enter into derivatives for other risk management purposes. All derivative instruments are recognized as assets or liabilities on the consolidated balance sheets at fair value.

Counterparty credit risk is inherent in derivative instruments. In order to reduce its exposure to counterparty credit risk, the Company utilizes credit approvals, limits, monitoring procedures and master netting and credit support annex agreements. Additionally, the Company considers counterparty credit quality and the creditworthiness of the Company in estimating the fair value of derivative instruments.

The table below presents the notional amounts and fair value amounts of the Company's derivative instruments reported on the consolidated balance sheets, segregated between derivative instruments designated and qualifying as hedging instruments and derivative instruments not designated as hedging instruments as of December 31, 2018 and December 31, 2017. Asset and liability values are presented gross, excluding the impact of legally enforceable master netting and credit support annex agreements. The fair value of asset and liability derivatives designated and qualifying as hedging instruments and derivatives designated as other risk management are included in other assets and other liabilities, respectively. The fair value of asset and liability trading derivatives are included in trading account assets and trading account liabilities, respectively.

	December 31, 2018						December 31, 2017
			Fair Value						Fair Value
(Dollars in millions)	Notional Amount		Asset Derivatives		Liability Derivatives		Notional Amount		Asset Derivatives		Liability Derivatives
Cash flow hedges
Interest rate contracts	$	674	$	6	$	—	$	6,998	$	2	$	149
Fair value hedges
Interest rate contracts	—		—		—		500		—		—
Not designated as hedging instruments:
Trading
Interest rate contracts	189,478		531		600		132,214		878		646
Commodity contracts	336		25		18		1,244		50		33
Foreign exchange contracts	8,475		260		168		7,053		250		146
Equity contracts	300		22		13		1,496		139		144
Other contracts	127		—		—		4		—		—
Total trading	198,716		838		799		142,011		1,317		969
Other risk management	1,704		27		5		1,345		3		9
Total derivative instruments	$	201,094	$	871	$	804	$	150,854	$	1,322	$	1,127

We recognized net losses of $4 million, $17 million, and $19 million on other risk management derivatives for the years ended December 31, 2018, 2017 and 2016, respectively, which are included in other noninterest income.

Derivatives Designated and Qualifying as Hedging Instruments

The Company uses interest rate derivatives to manage the financial impact on the Company from changes in market interest rates. These instruments are used to manage interest rate risk relating to specified groups of assets and liabilities, primarily LIBOR-based commercial loans and debt issuances. Derivatives that qualify for hedge accounting are designated as either fair value or cash flow hedges.

Cash Flow Hedges

At December 31, 2018, the Company used interest rate floors with a notional amount of $500 million and interest rate swaps with a notional amount of $174 million to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed loans and LIBOR indexed short-term borrowings, respectively. At December 31, 2018, the weighted average remaining life of active cash flow hedges was 2.6 years.

For cash flow hedges, the effective portion of the gain or loss on the hedging instruments is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged cash flows are recognized in net interest income. Gains and losses representing hedge ineffectiveness are recognized in noninterest expense in the period in which they arise. At December 31, 2018, the Company expects to reclassify approximately $89 million of losses from AOCI as a reduction to net interest income during the year ending December 31, 2019. This amount could differ from amounts actually realized due to changes in interest rates, hedge terminations and the addition of other hedges subsequent to December 31, 2018.

The following table presents the amount and location of the net gains and losses recorded in the Company's consolidated statements of income and changes in stockholders' equity for derivative instruments designated as cash flow hedges for the years ended December 31, 2018, 2017 and 2016:

	Gains (Losses) Recognized in OCI (Effective Portion)									Gains (Losses) Reclassified from AOCI into Income (Effective Portion)									Gains (Losses) Recognized in Income (Ineffective Portion)
	For the Years Ended December 31,										For the Years Ended December 31,									For the Years Ended December 31,
(Dollars in millions)	2018			2017			2016			Location	2018			2017		2016			Location	2018			2017		2016
										Interest income	$	(34	)	$	69	$	170
Interest rate contracts	$	(96	)	$	(35	)	$	(26	)	Interest expense	—			—		(3		)	Noninterest expense	$	(1	)	$	3	$	—
Total	$	(96	)	$	(35	)	$	(26	)		$	(34	)	$	69	$	167			$	(1	)	$	3	$	—

Fair Value Hedges

The Company engaged in an interest rate hedging strategy in which one or more interest rate swaps were associated with a specified interest bearing liability, in order to convert the liability from a fixed rate to a floating rate instrument. This strategy mitigated the changes in fair value of the hedged liability caused by changes in the designated benchmark interest rate, LIBOR.

For fair value hedges, any ineffectiveness is recognized in noninterest expense in the period in which it arises. The change in the fair value of the hedged item and the hedging instrument, to the extent completely effective, offsets with no impact on earnings.

The following tables present gains (losses) on the Company's fair value hedges and hedged item for the years ended December 31, 2018, 2017 and 2016:

		For the Year Ended December 31, 2018
(Dollars in millions)		Derivative Instrument			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt		$	(2	)	$	2	$	—
	Total	$	(2	)	$	2	$	—

		For the Year Ended December 31, 2017
(Dollars in millions)		Derivative Instrument			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt		$	(4	)	$	3	$	(1	)
	Total	$	(4	)	$	3	$	(1	)

		For the Year Ended December 31, 2016
(Dollars in millions)		Derivative Instrument			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt		$	(2	)	$	2	$	—
	Total	$	(2	)	$	2	$	—

Derivatives Not Designated as Hedging Instruments

Trading Derivatives

Derivative instruments classified as trading are primarily derivatives entered into as an accommodation for customers. Trading derivatives are included in trading assets or trading liabilities with changes in fair value reflected in income from trading account activities. The majority of the Company's derivative transactions for customers were essentially offset by contracts with third parties that reduce or eliminate market risk exposures.

The following table presents the amount of the net gains and losses for derivative instruments classified as trading reported in the consolidated statements of income under the heading trading account activities for the years ended December 31, 2018, 2017 and 2016:

	Gains (Losses) Recognized in Income on Trading Derivatives
	For the Years Ended
(Dollars in millions)	December 31, 2018		December 31, 2017			December 31, 2016
Trading derivatives:
Interest rate contracts	$	95	$	(49	)	$	137
Equity contracts	36		12			40
Foreign exchange contracts	44		43			39
Commodity contracts	—		1			2
Total	$	175	$	7		$	218

Offsetting Financial Assets and Liabilities

The Company primarily enters into derivative contracts with counterparties utilizing standard International Swaps and Derivatives Association Master Agreements and Credit Support Annex Agreements. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features. For additional information related to offsetting of financial assets and liabilities, refer to Note 8 to these Consolidated Financial Statements.

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Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

The following tables present the change in each of the components of accumulated other comprehensive income and the related tax effect of the change allocated to each component.

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Year Ended December 31, 2018
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	(96	)	$	25		$	(71	)
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	34			(9		)	25
Net change	(62		)	16			(46		)
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	(210		)	55			(155		)
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(8		)	2			(6		)
Amortization of net unrealized (gains) losses on held to maturity securities	28			(7		)	21
Net change	(190		)	50			(140		)
Foreign currency translation adjustment	(3		)	1			(2		)
Pension and other benefits:
Amortization of prior service credit(1)	(41		)	11			(30		)
Recognized net actuarial (gain) loss(1)	96			(25		)	71
Pension and other benefits arising during the year	(231		)	60			(171		)
Net change	(176		)	46			(130		)
Other	(1		)	—			(1		)
Net change in AOCI	$	(432	)	$	113		$	(319	)

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these Consolidated Financial Statements.

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Year Ended December 31, 2017
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	(35	)	$	13		$	(22	)
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	(69		)	25			(44		)
Net change	(104		)	38			(66		)
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	24			(9		)	15
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(17		)	7			(10		)
Less: accretion of fair value adjustment on securities available for sale	(1		)	—			(1		)
Amortization of net unrealized (gains) losses on held to maturity securities	19			(7		)	12
Net change	25			(9		)	16
Foreign currency translation adjustment	11			(4		)	7
Pension and other benefits:
Amortization of prior service credit (1)	(48		)	19			(29		)
Recognized net actuarial (gain) loss(1)	91			(36		)	55
Pension and other benefits arising during the year	116			(47		)	69
Net change	159			(64		)	95
Net change in AOCI	$	91		$	(39	)	$	52

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these Consolidated Financial Statements.

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Year Ended December 31, 2016
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	(26	)	$	10		$	(16	)
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	(167		)	68			(99		)
Net change	(193		)	78			(115		)
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	(40		)	15			(25		)
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(69		)	27			(42		)
Less: accretion of fair value adjustment on securities available for sale	(1		)	—			(1		)
Amortization of net unrealized (gains) losses on held to maturity securities	20			(8		)	12
Net change	(90		)	34			(56		)
Foreign currency translation adjustment	3			(1		)	2
Pension and other benefits:
Amortization of prior service credit(1)	(30		)	12			(18		)
Recognized net actuarial (gain) loss(1)	89			(35		)	54
Pension and other benefits arising during the year	(20		)	8			(12		)
Recognized curtailment gain	(2		)	1			(1		)
Net change	37			(14		)	23
Net change in AOCI	$	(243	)	$	97		$	(146	)

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these Consolidated Financial Statements.

The following table presents the change in accumulated other comprehensive loss balances.

(Dollars in millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Securities			Foreign Currency Translation Adjustment			Pension and Other Benefits Adjustment			Other			Accumulated Other Comprehensive Loss
Balance, December 31, 2015	$	38		$	(152	)	$	(24	)	$	(612	)	$	—		$	(750	)
Other comprehensive income before reclassifications	(16		)	(14		)	2			(12		)	—			(40		)
Amounts reclassified from AOCI	(99		)	(42		)	—			35			—			(106		)
Balance, December 31, 2016	$	(77	)	$	(208	)	$	(22	)	$	(589	)	$	—		$	(896	)
Other comprehensive income before reclassifications	(22		)	15			7			69			—			69
Amounts reclassified from AOCI	(44		)	1			—			26			—			(17		)
Subtotal before TCJA reclass	(143		)	(192		)	(15		)	(494		)	—			(844		)
TCJA reclass	(31		)	(41		)	(4		)	(106		)	—			(182		)
Balance, December 31, 2017	$	(174	)	$	(233	)	$	(19	)	$	(600	)	$	—		$	(1,026	)
Other comprehensive income before reclassifications	(71		)	(155		)	(2		)	(171		)	(1		)	(400		)
Amounts reclassified from AOCI	25			15			—			41			—			81
Transfer to additional paid-in capital	—			—			21			—			—			21
Balance, December 31, 2018	$	(220	)	$	(373	)	$	—		$	(730	)	$	(1	)	$	(1,324	)

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Management Stock Plans

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Management Stock Plans

Management Stock Plans

The Company adopted the MUAH Plan on June 8, 2015. Under the MUAH Plan, the Company grants restricted stock units settled in ADRs representing shares of common stock of the Company's indirect parent company, MUFG, to key employees at the discretion of the Human Capital Committee of the Board of Directors (the Committee). The Committee determines the number of shares, vesting requirements and other features and conditions of the restricted stock units. Under the MUAH Plan, MUFG ADRs are purchased in the open market upon the vesting of the restricted stock units, through a revocable trust. There is no amount authorized to be issued under the MUAH Plan since all shares are purchased in the open market. These awards generally vest pro-rata on each anniversary of the grant date and become fully vested three years from the grant date, provided that the employee has completed the specified continuous service requirement. Generally, the grants vest earlier if the employee dies, is permanently and totally disabled, retires under certain grant, age and service conditions, or terminates employment under certain conditions. The Company also issues a small number of off-cycle grants each year, primarily for reasons related to recruitment of new employees. The weighted-average service period for grants issued under the MUAH Plan with outstanding restricted stock units as of December 31, 2018 was 3.0 years.

Participants in the MUAH Plan are entitled to “dividend equivalent credits” on their unvested restricted stock units when MUFG pays dividends to its shareholders. The credit is equal to the dividends that the participants would have received on the shares had the shares been issued to the participants when the restricted stock units were granted. "Dividend equivalent credits" arising from grants under the MUAH Plan are paid to participants in shares on an annual basis.

The following table is a rollforward of the restricted stock units under the MUAH Plan for the year ended December 31, 2018:

	Restricted Stock Units
	2018
	Number of Units		Weighted-Average Grant Date Fair Value
Units outstanding, beginning of year	27,838,414		$	5.86
Activity during the year:
Granted	14,667,730		5.89
Vested	(13,198,540	)	5.88
Forfeited	(864,534	)	5.97
Units outstanding, end of year	28,443,070		5.86

The weighted-average grant date fair value of restricted stock units granted during 2017 and 2016 was 6.53 and 4.63, respectively. The total fair value of restricted stock units that vested during the years ended December 31, 2018, 2017, and 2016 was $78 million, $75 million, and $49 million, respectively.

The following table is a summary of the Company's compensation costs, the corresponding tax benefit, and unrecognized compensation costs:

	Years Ended December 31,
(Dollars in millions)	2018		2017		2016
Compensation costs	$	77	$	66	$	67
Tax benefit	20		26		26
Unrecognized compensation costs	110		111		96

At December 31, 2018, approximately $110 million (pretax) of compensation expense related to unvested grants had not yet been charged to net income. Unrecognized compensation costs as of December 31, 2018 are expected to be amortized into compensation expense over a weighted-average period of 1.4 years.

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Employee Pension and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Employee Pension and Other Postretirement Benefits

Employee Pension and Other Postretirement Benefits

Retirement Plan

The Company maintains the MUFG Union Bank, N.A. Retirement Plan (the Pension Plan), which is a noncontributory qualified defined benefit pension plan covering substantially all of the domestic employees of the Company. The Pension Plan provides retirement benefits based on a cash balance formula, with annual pay credits based on a participant's eligible pay multiplied by a percentage determined by their age and years of service, with annual interest credits based on 30-year Treasury bond yields. Employees become eligible for the Pension Plan after 1 year of service, and participants become vested upon completing 3 years of vesting service. Prior to 2017, certain participants earned retirement benefits based on years of credited service and the final average earnings amount, as defined in the Pension Plan; such benefits became fixed as of the effective date of certain Plan amendments implementing the cash balance formula.

The Company's funding policy is to make contributions between the minimum required and the maximum deductible amount as allowed by the Internal Revenue Code. Contributions are intended to provide not only for benefits attributed to services to date, but also for those expected to be earned in the future.

Other Postretirement Benefits

The Company maintains the MUFG Union Bank, N.A. Retiree Health Reimbursement Plan (the HRA Plan), the MUFG Union Bank, N.A. Health Benefit Plan (the Health Plan), and the MUFG Union Bank, N.A. Employee Insurance Plan (the Insurance Plan). Under the HRA Plan, which became effective January 1, 2017, eligible post-65 retirees and dependents receive Company-provided financial support to purchase individual health coverage through annual allocations to a Health Reimbursement Account (HRA) that are designed to keep pace with medical inflation. The Health Plan provides certain healthcare benefits for eligible pre-65 retired employees and dependents; costs are shared between the Company and the retiree at a level of approximately 25% to 50%, depending on the retiree's age and length of service with the Company. The Insurance Plan provides life insurance benefits for those eligible employees who retired prior to January 1, 2001 and is noncontributory. Together, the HRA Plan, the Health Plan, and the Insurance Plan are presented as "Other Benefits Plan." The accounting for the Other Benefits Plan anticipates future cost-sharing changes described above that are consistent with the Company's intent. Assets set aside to cover such obligations are primarily invested in mutual funds and insurance contracts. In April 2014 the Health Benefit Plan was amended to discontinue the availability of retiree health benefits for the majority of employees.

The following table sets forth the fair value of the assets in the Company's Pension Plan and Other Benefits Plan as of December 31, 2018 and 2017.

	Pension Plan						Other Benefits Plan
	Years Ended December 31,						Years Ended December 31,
(Dollars in millions)	2018			2017			2018			2017
Change in plan assets:
Fair value of plan assets, beginning of year	$	3,854		$	3,254		$	288		$	260
Actual return on plan assets	(196		)	608			(18		)	44
Employer contributions	—			115			—			1
Plan participants' contributions	—			—			4			4
Benefits paid	(129		)	(123		)	(19		)	(21		)
Fair value of plan assets, end of year	$	3,529		$	3,854		$	255		$	288

The investment objective for the Company's Pension Plan and Other Benefits Plan, collectively the Plans, is to maximize total return within reasonable and prudent levels of risk. The Plans' asset allocation strategy is the principal determinant in achieving expected investment returns on the Plans' assets. The Pension Plan asset allocation strategy favors equities, with a target allocation of 53% in equity securities, 35% in debt securities, and 12% in real estate investments as of December 31, 2018. The previous targets, until the 4th quarter of 2018, were 63%, 25%, and 12%, respectively. Similarly, the Other Benefits Plan asset allocation strategy favors equities with a target allocation of 70% in equity securities and 30% in debt securities. Additionally, the Other Benefits Plan holds an investment in an insurance contract with Talcott Resolution Life Insurance Company, the cash value of which is invested in alignment with the target allocation. Actual asset allocations may fluctuate within acceptable ranges due to market value variability. If market fluctuations cause an asset class to fall outside of its strategic asset allocation range, the portfolio will be re-balanced as appropriate. A core equity position of domestic large cap and small cap stocks will be maintained, in conjunction with a diversified portfolio of international equities and fixed income securities. Plan asset performance is compared against established indexes and peer groups to evaluate whether the risk associated with the portfolio is appropriate for the level of return.

The Company periodically reviews the Plans' strategic asset allocation policy and the expected long-term rate of return for plan assets. The investment return volatility of different asset classes and the liability structure of the plans are evaluated to determine whether adjustments are required to the Plans' strategic asset allocation policy, taking into account the principles established in the Company's funding policy. Management periodically reviews and adjusts the long-term rate of return on assets assumption for the Plans based on the expected long-term rate of return for the asset classes and their weightings in the Plans' strategic asset allocation policy and taking into account the prevailing economic and regulatory climate and practices of other companies both within and outside our industry.

The following table provides the fair value by level within the fair value hierarchy of the Company's period-end assets by major asset category for the Pension Plan and Other Benefits Plan. For information about the fair value hierarchy levels, refer to Note 11 to these consolidated financial statements. The Plans do not hold any equity or debt securities issued by the Company or any related parties.

	December 31, 2018
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Pension Plan Investments:
Cash and cash equivalents	$	—	$	25	$	—	$	25
U.S. government securities	—		382		—		382
Fixed and variable income securities	—		824		—		824
Equity securities	185		6		—		191
Mutual funds	620		—		—		620
Municipal bonds	—		37		—		37
Other	—		20		—		20
Total investments in the fair value hierarchy	$	805	$	1,294	$	—	$	2,099
Investments measured at net asset value (1)							1,420
Investments at fair value							3,519
Accrued dividends and interest receivable							12
Net pending trades							(2		)
Total plan assets							$	3,529

(1) In accordance with ASU No. 2015-07, investments in which fair value was measured based on net asset value per share (or its equivalent) using the practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to total plan assets.

	December 31, 2017
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Pension Plan Investments:
Cash and cash equivalents	$	—	$	26	$	—	$	26
U.S. government securities	—		195		—		195
Fixed and variable income securities	—		638		—		638
Equity securities	381		7		—		388
Mutual funds	830		—		—		830
Municipal bonds	—		43		—		43
Other	5		11		—		16
Total investments in the fair value hierarchy	$	1,216	$	920	$	—	$	2,136
Investments measured at net asset value (1)							1,704
Investments at fair value							3,840
Accrued dividends and interest receivable							8
Net pending trades							6
Total plan assets							$	3,854

(1) In accordance with ASU No. 2015-07, investments in which fair value was measured based on net asset value per share (or its equivalent) using the practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to total plan assets.

	December 31, 2018
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Other Postretirement Benefits Plan Investments:
Cash and cash equivalents	$	—	$	1	$	—	$	1
U.S. government securities	—		37		—		37
Fixed and variable income securities	—		32		—		32
Equity securities	—		—		—		—
Mutual funds	54		—		—		54
Total investments in the fair value hierarchy	$	54	$	70	$	—	$	124
Investments measured at net asset value (1)							134
Investments at fair value							258
Net pending trades							(3		)
Total plan assets							$	255

(1) In accordance with ASU No. 2015-07, investments in which fair value was measured based on net asset value per share (or its equivalent) using the practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to total plan assets.

	December 31, 2017
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Other Postretirement Benefits Plan Investments:
Cash and cash equivalents	$	—	$	3	$	—	$	3
U.S. government securities	—		44		—		44
Fixed and variable income securities	—		29		—		29
Equity securities	—		1		—		1
Mutual funds	66		—		—		66
Total investments in the fair value hierarchy	$	66	$	77	$	—	$	143
Investments measured at net asset value (1)							157
Investments at fair value							300
Net pending trades							(12		)
Total plan assets							$	288

(1) In accordance with ASU No. 2015-07, investments in which fair value was measured based on net asset value per share (or its equivalent) using the practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to total plan assets.

The following tables as of December 31, 2018 and 2017 present the Company's Pension Plan and Other Benefits Plan investments in which fair value is measured using net asset value per share (or its equivalent) as a practical expedient.

	December 31, 2018
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Pension Plan Investments
Domestic equity funds	$	789	$	—	Daily	None	None
Real estate funds	415		—		Quarterly	Availability of fund's liquid assets and approval of the board of directors	45-90 days
Real estate funds	7		3		None	Hold until dissolution date	None
International equity funds	159		—		Monthly	None	15 days
Money market funds	50		—		Immediate	None	None
Total	$	1,420	$	3

	December 31, 2017
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Pension Plan Investments
Domestic equity funds	$	1,101	$	—	Daily	None	None
Real estate funds	343		—		Quarterly	Availability of fund's liquid assets and approval of the board of directors	45-90 days
Real estate funds	13		5		None	Hold until dissolution; approximately four to six years from original final closing date	None
International equity funds	228		—		Monthly	None	15 days
Money market funds	19		—		Immediate	None	None
Total	$	1,704	$	5

	December 31, 2018
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Other Postretirement Benefits Plan Investments
Domestic equity funds	$	87	$	—	Daily	None	None
Pooled separate account - variable life insurance policies	46		—		Quarterly	Proof of death for death claim redemptions	7 business days
Money market funds	1		—		Immediate	None	None
Total	$	134	$	—

	December 31, 2017
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Other Postretirement Benefits Plan Investments
Domestic equity funds	$	100	$	—	Daily	None	None
Pooled separate account - variable life insurance policies	52		—		Quarterly	Proof of death for death claim redemptions	7 business days
Money market funds	5		—		Immediate	None	None
Total	$	157	$	—

A description of the valuation methodologies used to determine the fair value of the Plans' assets included within the tables above is as follows:

Cash and Cash Equivalents

Cash and cash equivalents include short-term investments of government securities and other debt securities with remaining maturities of less than three months. These short-term investments are classified as Level 2 based on unadjusted prices in active markets for similar securities. Money market funds were measured at net asset value (NAV) per share and are included in the tables above showing Plan investments that are measured using NAV per share (or its equivalent) as a practical expedient.

U.S. Government Securities

U.S. government securities include U.S. Treasury securities and U.S. agency mortgage-backed securities. U.S. Treasury securities are fixed income securities that are debt instruments issued by the United States Department of the Treasury. U.S. agency mortgage-backed securities are collateralized by residential mortgage loans and may be prepaid at par prior to maturity. U.S. government securities are classified as Level 2 based on valuations provided by third-party pricing services using quoted market prices in active markets for similar securities.

Fixed and Variable Income Securities

Fixed and variable income securities include a variety of debt instruments, including corporate bonds, private placements and asset-backed securities. These securities are classified as Level 2 based on valuations provided by a third-party pricing services using quoted market prices in active markets for similar securities.

Equity Securities

Equity securities are comprised of common stock and preferred securities. The fair value of common stock is recorded based on quoted market prices obtained from an exchange. These securities are classified as Level 1 based on unadjusted prices for identical instruments in active markets. The fair value of preferred securities is based on discounted cash flow models. These securities are classified as Level 2 based on valuations provided by third-party pricing services using observable market data.

Real Estate Funds

Real estate funds invest in real estate property with a focus on apartment, office, industrial and retail properties. These investments were measured at NAV per share and are included in the tables above showing Plan investments that are measured using NAV per share (or its equivalent) as a practical expedient.

International Equity Funds

International equity funds invest in equity securities of foreign companies in developed and emerging markets across diverse industries and may seek to track the performance of the MSCI EAFE® or MSCI All-Country World ex-US indices. These investments were measured at NAV per share and are included in the tables above showing Plan investments that are measured using NAV per share (or its equivalent) as a practical expedient.

Domestic Equity Funds

Domestic equity funds invest in equity securities that seek to track the performance of market indexes including the S&P 500 index. These funds are valued using NAV at the end of the period. Mutual funds are classified as Level 1 based on unadjusted prices for identical instruments in active markets. Collective investment funds are included in the tables above showing Plan investments that are measured using NAV per share (or its equivalent) as a practical expedient.

Pooled Separate Account

The pooled separate account refers to private placement, variable life insurance policies with Talcott Resolution Life Insurance Company, a successor to Hartford Life Insurance Company. The cash value of the life insurance is invested in four managed divisions that seek to track the S&P 500, Russell 2000, MSCI EAFE® and Bloomberg Barclays U.S. Aggregate Bond indexes. Each division is valued using quoted market prices of its underlying investments to derive the division's NAV at the end of the period. This investment was measured at NAV per share and is included in the tables above showing Plan investments that are measured using NAV per share (or its equivalent) as a practical expedient.

The following table sets forth the benefit obligation activity and the funded status for each of the Company's plans at December 31, 2018 and 2017. In addition, the table sets forth the over (under) funded status at December 31, 2018 and 2017. This pension benefits table does not include the obligations for Executive Supplemental Benefit Plans (ESBPs).

	Pension Benefits						Other Postretirement Benefits
	Years Ended December 31,						Years Ended December 31,
(Dollars in millions)	2018			2017			2018			2017
Accumulated benefit obligation	$	3,038		$	3,101
Change in benefit obligation
Benefit obligation, beginning of year	$	3,242		$	2,942		$	265		$	261
Service cost	80			71			4			6
Interest cost	100			100			8			8
Plan participants' contributions	—			—			4			4
Actuarial loss/(gain)	(246		)	252			(21		)	6
Effect of plan amendments	—			—			—			—
Medicare Part D subsidy	—			—			1			1
Benefits paid	(129		)	(123		)	(19		)	(21		)
Benefit obligation, end of year	3,047			3,242			242			265
Fair value of plan assets, end of year	3,529			3,854			255			288
Over (Under) funded status	$	482		$	612		$	13		$	23

The Pension Plan obligation experienced a net gain of $246 million and a net loss of $252 million during 2018 and 2017, respectively, primarily due to changes in the discount rate.  The discount rate decreased from 3.98% at December 31, 2016 to 3.48% at December 31, 2017 and increased to 4.12% at December 31, 2018.  The Other Benefits Plan obligation experienced a net gain of $21 million and a net loss of $6 million during 2018 and 2017, respectively, primarily due to changes in the discount rate.  The discount rate decreased from 3.81% at December 31, 2016 to 3.37% at December 31, 2017 and increased to 4.01% at December 31, 2018. 

The following table illustrates the changes that were reflected in AOCI during 2018, 2017 and 2016. Pension benefits do not include the ESBPs.

	Pension Benefits						Other Postretirement Benefits
(Dollars in millions)	Net Actuarial (Gain) Loss			Prior Service Credit			Net Actuarial (Gain) Loss			Prior Service Credit
Amounts Recognized in Other Comprehensive Loss:
Balance, December 31, 2015	$	1,027		$	(121	)	$	82		$	(15	)
Arising during the year	133			(76		)	6			(47		)
Recognized in net income during the year	(75		)	18			(10		)	12
Balance, December 31, 2016	$	1,085		$	(179	)	$	78		$	(50	)
Arising during the year	(101		)	—			(19		)	—
Recognized in net income during the year	(79		)	27			(8		)	21
Balance, December 31, 2017	$	905		$	(152	)	$	51		$	(29	)
Arising during the year	218			—			18			—
Recognized in net income during the year	(87		)	26			(5		)	15
Balance, December 31, 2018	$	1,036		$	(126	)	$	64		$	(14	)

At December 31, 2018 and 2017, the following amounts were recognized in accumulated other comprehensive loss for pension, including ESBPs, and other benefits.

	December 31, 2018
	Pension Benefits									Other Postretirement Benefits
(Dollars in millions)	Gross			Tax			Net of Tax			Gross			Tax			Net of Tax
Net actuarial loss	$	1,036		$	273		$	763		$	64		$	18		$	46
Prior service credit	(126		)	(33		)	(93		)	(14		)	(4		)	(10		)
Pension and other postretirement benefits	910			240			670			50			14			36
Executive Supplemental Benefits Plans
Net actuarial loss	32			8			24			—			—			—
Prior service credit	—			—			—			—			—			—
Executive supplemental benefits plans adjustment	32			8			24			—			—			—
Pension and other postretirement benefits, as adjusted	$	942		$	248		$	694		$	50		$	14		$	36

	December 31, 2017
	Pension Benefits									Other Postretirement Benefits
(Dollars in millions)	Gross			Tax			Net of Tax			Gross			Tax			Net of Tax
Net actuarial loss	$	905		$	238		$	667		$	51		$	14		$	37
Prior service credit	(152		)	(40		)	(112		)	(29		)	(8		)	(21		)
Pension and other postretirement benefits	753			198			555			22			6			16
Executive Supplemental Benefits Plans
Net actuarial loss	40			11			29			—			—			—
Prior service credit	—			—			—			—			—			—
Executive supplemental benefits plans adjustment	40			11			29			—			—			—
Pension and other postretirement benefits, as adjusted	$	793		$	209		$	584		$	22		$	6		$	16

Pension Benefits

Our pre-tax net actuarial losses increased$157 million in 2018 from 2017. At December 31, 2018, the net actuarial loss totaled $910 million, which is net of $126 million in prior service credits. In addition, $214 million, representing the deficiency of the fair value of plan assets over the market-related value of plan assets, is recognized separately through the asset smoothing method over four years. $447 million of loss is subject to amortization over approximately eight years, and the prior service credits are being amortized until 2022 and 2025. The cumulative net actuarial loss resulted primarily from differences between expected and actual rate of return on plan assets and the discount rate. Included in our 2019 net periodic pension cost will be $62 million of amortization related to net actuarial losses. We estimate that our total 2019 net periodic pension cost will be a credit of approximately $27 million, assuming no contributions in 2019. The 2019 estimate for net periodic pension cost was actuarially determined using the individual spot rates of 4.19% for service cost and 3.9% for interest cost, an expected return on plan assets of 7.0% and an expected compensation increase assumption of 5.1%.

A 50 basis point increase in the discount rate or in the expected return on plan assets would decrease the 2019 periodic pension cost by $25 million and $18 million, respectively, while a 50 basis point increase in the rate of future compensation levels would increase the 2019 periodic pension cost by $1 million. A 50 basis point decrease in the discount rate or in the expected return on plan assets would increase the 2019 periodic pension cost by $27 million and $18 million, respectively, while a 50 basis point decrease in the rate of future compensation levels would decrease the 2019 periodic pension cost by $1 million.

Estimated Future Benefit Payments and Subsidies

The following pension and postretirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next 10 years. This table does not include the ESBPs.

(Dollars in millions)	Pension Benefits		Postretirement Benefits
Years ending December 31,
2019	$	140	$	17
2020	147		17
2021	153		18
2022	160		18
2023	166		18
Years 2024 - 2028	914		82

The following tables summarize the weighted average assumptions used in computing the present value of the benefit obligations and the net periodic benefit cost.

	Pension Benefits				Other Postretirement Benefits
	Years Ended December 31,				Years Ended December 31,
	2018		2017		2018		2017
Discount rate in determining net periodic benefit cost
For service cost	3.26	%	3.79	%	3.49	%	3.97	%
For interest cost	3.16		3.42		3.02		3.19
Discount rate in determining benefit obligations at year end	4.12		3.48		4.01		3.37
Rate of increase in future compensation levels for determining net periodic benefit cost	4.70		4.70		n/a		n/a
Rate of increase in future compensation levels for determining benefit obligations at year end	5.10		4.70		n/a		n/a
Expected return on plan assets	7.50		7.50		7.50		7.50
Cash balance crediting rate for determining net periodic benefit cost	2.74		3.06		n/a		n/a
Cash balance crediting rate for determining benefit obligations at year end	3.02		2.74		n/a		n/a

	Pension Benefits									Other Postretirement Benefits									ESBPs
	Years Ended December 31,									Years Ended December 31,									Years Ended December 31,
(Dollars in millions)	2018			2017			2016			2018			2017			2016			2018		2017		2016
Components of net periodic benefit cost:
Service cost	$	80		$	71		$	91		$	4		$	6		$	8		$	—	$	—	$	2
Interest cost	100			100			103			8			8			9			3		3		2
Expected return on plan assets	(268		)	(254		)	(235		)	(21		)	(19		)	(19		)	—		—		—
Amortization of prior service credit	(26		)	(27		)	(18		)	(15		)	(21		)	(12		)	—		—		—
Recognized net actuarial loss	87			79			75			5			8			10			3		4		3
Curtailment gain	—			—			—			—			—			—			—		—		(2		)
Total net periodic benefit cost	$	(27	)	$	(31	)	$	16		$	(19	)	$	(18	)	$	(4	)	$	6	$	7	$	5

The Company's assumed weighted-average healthcare cost trend rates are as follows.

	Years Ended December 31,
	2018		2017		2016
Healthcare cost trend rate assumed for next year	4.44	%	4.44	%	4.64	%
Rate to which cost trend rate is assumed to decline (the ultimate trend rate)	3.94	%	3.94	%	3.96	%
Year the rate reaches the ultimate trend rate	2027		2026		2026

Executive Supplemental Benefit Plans

The Company has several frozen ESBPs, which provide covered participants with supplemental retirement benefits. The plans are nonqualified defined benefit plans and unfunded. The accrued liability for ESBPs included in other liabilities on the Company's consolidated balance sheets was $89 million and $98 million at December 31, 2018 and 2017, respectively.

Section 401(k) Savings Plans

The Company has a defined contribution plan authorized under Section 401(k) of the Internal Revenue Code. All benefits-eligible employees are eligible to participate in the plan. Employees may contribute up to 75% of their eligible compensation on a pre-tax or Roth basis, or up to 10% of their eligible compensation on an after-tax basis, through payroll deductions, to a combined maximum of 75% of eligible compensation, subject to statutory limits. The Company makes a matching contribution equal to 100% of every pre-tax or Roth dollar an employee contributes on the first 3% of the employee's eligible compensation and 50% of every pre-tax or Roth dollar an employee contributes on the next 2% of the employee's eligible compensation, for a maximum matching opportunity of 4%. Company matching contributions are credited to eligible participants' accounts annually following year-end. Matching contributions are fully vested when credited. All employer contributions are tax deductible by the Company. The Company's combined matching contribution expense was $59 million, $55 million and $48 million for the years ended December 31, 2018, 2017 and 2016, respectively.

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Other Noninterest Income and Noninterest Expense

12 Months Ended

Dec. 31, 2018

Other Income and Expenses [Abstract]

Other Noninterest Income and Noninterest Expense

Other Noninterest Income and Noninterest Expense

The detail of other noninterest income is as follows.

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Gain (loss) on sales	$	16		$	26		$	79
Fund administration fees	100			46			22
Other fee income	100			69			59
Losses on renewable energy investments	(235		)	(58		)	(37		)
Other	134			157			136
Total other noninterest income	$	115		$	240		$	259

The detail of other noninterest expense is as follows.

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Fees to affiliates	$	115		$	105		$	100
Expenses of the LIHC consolidated VIEs	24			43			68
Net periodic pension cost, excluding service cost	(124		)	(119		)	(84		)
Other	394			360			311
Total other noninterest expense	$	409		$	389		$	395

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Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table is an analysis of the effective tax rate:

	Years Ended December 31,
(Dollars in millions)	2018		2017		2016
Federal income tax rate	21	%	35	%	35	%
Net tax effects of:
State income taxes, net of federal income tax benefit	7		5		6
Tax-exempt interest income	(1	)	(1	)	(1	)
Losses from LIHC investments	(2	)	(3	)	(3	)
Amortization of LIHC investments	12		14		10
Tax credits	(25	)	(21	)	(18	)
Effects of US tax law change	(2	)	(8	)	—
State Tax Refunds	(5	)	—		—
Other	—		1		2
Effective tax rate	5	%	22	%	31	%

On December 22, 2017, the Tax Cuts & Jobs Act was signed into law reducing the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of the reduction in the corporate income tax rate, the Company revalued its net deferred tax liabilities at December 31, 2017, resulting in a one-time tax benefit of $101 million.

The components of income tax expense were as follows:

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Current income tax expense:
Federal	$	195		$	257		$	228
State	89			21			105
Foreign	10			(4		)	7
Total current expense	294			274			340
Deferred income tax expense (benefit):
Federal	(173		)	(49		)	58
State	(64		)	52			24
Foreign	(5		)	22			(3		)
Total deferred expense	(242		)	25			79
Total income tax expense	$	52		$	299		$	419

The components of the Company's net deferred tax balances as of December 31, 2018 and 2017 were as follows:

	December 31,
(Dollars in millions)	2018		2017
Deferred tax assets:
Tax credits and net operating loss carryforwards	$	448	$	310
Allowance for credit losses	251		254
Accrued expense, net	159		178
Unrealized losses on pension and postretirement benefits	260		214
Unrealized net losses on securities available for sale	132		82
Fair value adjustments for valuation of FDIC covered assets	53		61
Unrealized gains/losses on cash flow hedges	78		62
Other	—		—
Total deferred tax assets	1,381		1,161
Deferred tax liabilities:
Leasing and renewable energy	619		769
Intangible assets	59		55
Pension liabilities	365		358
Other	10		7
Total deferred tax liabilities	1,053		1,189
Net deferred tax asset (liability)	$	328	$	(28	)

At December 31, 2018, the U.S. federal tax credit carryforwards were $378 million (net of uncertain tax liability of $25 million), the federal net operating loss carryforward was $16 million, AMT tax credit carryforward was $17 million, state tax credits net of federal benefit was $33 million and state net operating loss carryforwards net of federal benefit was $4 million. If not utilized, the federal net operating loss carryforward, state net operating loss and federal tax credits begin to expire in 2032, 2034 and 2035, respectively. The state tax credits can be carried forward indefinitely. Additionally, as a result of Tax Cuts and Jobs Act, the AMT credit carryforward can generally be used to offset regular income tax liability in fiscal years 2019 through 2021. Any remaining amount is generally fully refundable by fiscal year 2022. The Company’s AMT Credit carryforward is also subject to rules under separate return limitation years.

Deferred tax assets are evaluated for realization based on the existence of sufficient taxable income of the appropriate character. Management has determined that no valuation allowance is required.

The following table reflects the changes in gross unrecognized tax benefits:

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Balance, beginning of year	$	56		$	11		$	8
Gross increases as a result of tax positions taken during prior periods	72			45			—
Gross decreases as a result of tax positions taken during prior periods	—			—			—
Gross increases as a result of tax positions taken during current period	—			2			3
Gross decrease as a result of closed audit years or settlements	(1		)	(2		)	—
Balance, end of year	$	127		$	56		$	11

The amount of unrecognized tax positions that would affect the effective tax rate, if recognized, was $98 million, $33 million and $9 million at December 31, 2018, 2017 and 2016, respectively.

The Company recognizes interest and penalties as a component of income tax expense. As of December 31, 2018, we accrued $2 million in interest and $3 million in penalties. It is reasonably possible that certain tax positions will be resolved within the next 12 months, which would decrease the Company's balance of total unrecognized tax benefits by $23 million with 2017 and 2018 filings.

The Company is subject to U.S. federal income tax as well as various state and foreign income taxes. With limited exception, the Company is not open to examination for periods before 2015 by U.S. federal taxing authorities and 2014 by state taxing authorities.

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Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2018

Regulatory Capital Requirements [Abstract]

Regulatory Capital Requirements

Regulatory Capital Requirements

The Company and the Bank are subject to various regulatory capital requirements administered by the U.S. federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company's and Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and the Bank's prompt corrective action classification are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors. Prompt corrective action provisions are not applicable to BHCs such as the Company. The Bank is subject to laws and regulations that limit the amount of dividends it can pay to the Company.

Quantitative measures established by regulation to help ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to quarterly average assets (as defined). As of December 31, 2018, management believes the capital ratios of the Bank met all regulatory requirements of "well-capitalized" institutions, which are 10% for the Total risk-based capital ratio and 8.0% for the Tier 1 risk-based capital ratio. Furthermore, management believes, as of December 31, 2018 and 2017, that the Company and the Bank met all capital adequacy requirements to which they are subject.

The Company's and the Bank's capital amounts and ratios are presented in the following tables.

	U.S. Basel III					Minimum Capital Requirement with Capital Conservation Buffer (1)
(Dollars in millions)	Amount		Ratio			Amount		Ratio
Capital Ratios for the Company:
As of December 31, 2018:
Common equity tier 1 capital (to risk-weighted assets)	$	14,256	13.96	%	≥	$	6,508	6.375	%
Tier 1 capital (to risk-weighted assets)	14,256		13.96		≥	8,039		7.875
Total capital (to risk-weighted assets)	14,904		14.60		≥	10,081		9.875
Tier 1 leverage(2)	14,256		8.77		≥	6,502		4.000
As of December 31, 2017:
Common equity tier 1 capital (to risk-weighted assets)	$	15,708	16.31	%	≥	$	5,539	5.750	%
Tier 1 capital (to risk-weighted assets)	15,708		16.31		≥	6,984		7.250
Total capital (to risk-weighted assets)	17,106		17.76		≥	8,910		9.250
Tier 1 leverage(2)	15,708		10.06		≥	6,245		4.000

(1) Beginning January 1, 2018, the minimum capital requirement includes a capital conservation buffer of 1.875%.

(2) Tier 1 capital divided by quarterly average assets (excluding certain disallowed assets, primarily goodwill and other intangibles).

	U.S. Basel III					Minimum Capital Requirement with Capital Conservation Buffer (1)					To Be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in millions)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Capital Ratios for the Bank:
As of December 31, 2018 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	13,316	14.45	%	≥	$	5,876	6.375	%	≥	$	5,991	6.5	%
Tier 1 capital (to risk-weighted assets)	13,316		14.45		≥	7,258		7.875		≥	7,374		8.0
Total capital (to risk-weighted assets)	13,905		15.09		≥	9,102		9.875		≥	9,217		10.0
Tier 1 leverage(2)	13,316		10.61		≥	5,018		4.000		≥	6,273		5.0
As of December 31, 2017 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	14,028	16.17	%	≥	$	4,987	5.750	%	≥	$	5,637	6.5	%
Tier 1 capital (to risk-weighted assets)	14,028		16.17		≥	6,288		7.250		≥	6,938		8.0
Total capital (to risk-weighted assets)	15,335		17.68		≥	8,023		9.250		≥	8,673		10.0
Tier 1 leverage(2)	14,028		11.78		≥	4,762		4.000		≥	5,953		5.0

(1) Beginning January 1, 2018, the minimum capital requirement includes a capital conservation buffer of 1.875%.

(2) Tier 1 capital divided by quarterly average assets (excluding certain disallowed assets, primarily goodwill and other intangibles).

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Restrictions on Cash and Due from Banks, Securities, Loans and Dividends

12 Months Ended

Dec. 31, 2018

Restricted Cash and Investments [Abstract]

Restrictions on Cash and Due from Banks, Securities, Loans and Dividends

Restrictions on Cash and Due from Banks, Securities, Loans and Dividends

Federal Reserve regulations require the Bank to maintain reserve balances based on the types and amounts of deposits received. The required reserve balances were $348 million and $475 million at December 31, 2018 and 2017, respectively.

See Note 2 to these consolidated financial statements for the carrying amounts of securities that were pledged as collateral to secure public and trust deposits and for other transactions as required by contract or law. See Note 10 to these consolidated financial statements for the carrying amounts of loans and securities that were pledged as collateral for borrowings, including those pledged to the Federal Reserve Bank and FHLB.

The Federal Reserve Act restricts the amount of credit transactions and the terms of both credit and non-credit transactions between a bank and its non-bank affiliates. Such transactions may not exceed 10% of the bank's capital and surplus (which for this purpose represents Tier 1 and Tier 2 capital, as calculated under the risk-based capital guidelines, plus the balance of the allowance for loan losses excluded from Tier 2 capital) with any single non-bank affiliate and 20% of the bank's capital and surplus with all its non-bank affiliates. Transactions that are extensions of credit may require collateral to be held to provide added security to the bank. See Note 18 to these consolidated financial statements for further discussion of risk-based capital. At December 31, 2018, $80 million of notes payable remained outstanding from Bankers Commercial Corporation.

The declaration of a dividend by the Bank to the Company is subject to the approval of the OCC if the total of all dividends declared in the current calendar year plus the preceding two years exceeds the Bank's total net income in the current calendar year plus the preceding two years. The payment of dividends is also limited by minimum capital requirements imposed on national banks by the OCC.

At December 31, 2018, MUSA had $17 million of cash segregated in a special reserve account for the exclusive benefit of customers pursuant to Customer Protection Rule 15c3-3 of the Securities and Exchange Act of 1934.

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Commitments, Contingencies and Guarantees

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Guarantees

Commitments, Contingencies and Guarantees

The following table summarizes the Company's commitments:

(Dollars in millions)	December 31, 2018
Commitments to extend credit	$	33,487
Issued standby and commercial letters of credit	4,852
Commitments to enter into forward-starting resale agreements	877
Other commitments	493

Commitments to extend credit are legally binding agreements to lend to a customer provided there are no violations of any condition established in the contract. Commitments have fixed expiration dates or other termination clauses and may require maintenance of compensatory balances. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements.

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit are generally contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate foreign or domestic trade transactions. The majority of these types of commitments have terms of 1 year or less. At December 31, 2018, the carrying amount of the Company's standby and commercial letters of credit totaled $4 million. Estimated exposure to loss related to these commitments is covered by the allowance for losses on unfunded commitments. The carrying amounts of the standby and commercial letters of credit and the allowance for losses on unfunded credit commitments are included in other liabilities on the consolidated balance sheet.

The credit risk involved in issuing loan commitments and standby and commercial letters of credit is essentially the same as that involved in extending loans to customers and is represented by the contractual amount of these instruments. Collateral may be obtained based on management's credit assessment of the customer.

Other commitments include collateralized financing activities, commitments to fund principal investments, other securities, and residual value guarantees.

Principal investments include direct investments in private and public companies. The Company issues commitments to provide equity and mezzanine capital financing to private and public companies through direct investments. The timing of future cash requirements to fund such commitments is generally dependent on the investment cycle. This cycle, the period over which privately held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial offering, can vary based on overall market conditions as well as the nature and type of industry in which the companies operate.

The Company occasionally enters into financial guarantee contracts where a premium is received from another financial institution counterparty to guarantee a portion of the credit risk on interest rate swap contracts entered into between the financial institution and its customer. The Company becomes liable to pay the financial institution only if the financial institution is unable to collect amounts owed to them by their customer. As of December 31, 2018, the current exposure to loss under these contracts totaled $9 million, and the maximum potential exposure to loss in the future was estimated at $35 million.

The Company is subject to various pending and threatened legal actions that arise in the normal course of business. The Company maintains liabilities for losses from legal actions that are recorded when they are determined to be both probable in their occurrence and can be reasonably estimated. Management believes the disposition of all claims currently pending, including potential losses from claims that may exceed the liabilities recorded, and claims for loss contingencies that are considered reasonably possible to occur, will not have a material effect, either individually or in the aggregate, on the Company's consolidated financial condition, results of operations or liquidity.

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Related Party Transactions

12 Months Ended

Dec. 31, 2018

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

MUAH is a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. and MUFG Securities Americas Inc. It is owned by MUFG Bank, Ltd. and MUFG. MUFG Bank, Ltd. is a wholly-owned subsidiary of MUFG.

On July 1, 2016, MUFG designated MUAH as its IHC in accordance with the requirements of the U.S. Federal Reserve Board’s final rules for Enhanced Prudential Standards and transferred interests in substantially all its U.S. subsidiaries to the IHC. On July 1, 2017, MUFG transferred interests in its remaining U.S. subsidiaries to MUAH. The transferred subsidiaries had assets of $1.0 billion, including goodwill and intangibles of $196 million, and liabilities of $601 million, all of which were transferred at carrying value. In consideration for the transferred assets and liabilities, MUAH issued 3,267,433 shares to MUFG Bank, Ltd. and MUFG.

The Company provides various business, banking, financial, administrative and support services, and facilities for MUFG Bank, Ltd. in connection with the operation and administration of MUFG Bank, Ltd.'s business in the U.S. (including MUFG Bank, Ltd.'s U.S. branches). The Bank and MUFG Bank, Ltd. participate in a master services agreement whereby the Bank earns fee income in exchange for services and facilities provided.

In addition to the above, the Company conducts transactions with affiliates which include MUFG Bank, Ltd., MUFG and other entities which are directly or indirectly owned by MUFG. The transactions include capital market transactions, facilitating securities transactions, secured financing transactions, advisory services, clearing and operational support. Under service level agreements the Company provides services to and receives services from various affiliates. The Company also has referral agreements with its affiliates and pays referral fees from investment banking revenue earned.

Related party transactions reflect market-based pricing. These transactions are subject to federal and state statutory and regulatory restrictions and limitations.

The tables and discussion below represent the more significant related party balances and income (expenses) generated by related party transactions.

As of December 31, 2018 and December 31, 2017, assets and liabilities with affiliates consisted of the following:

(Dollars in millions)	December 31, 2018		December 31, 2017
Assets:
Cash and cash equivalents	$	80	$	119
Securities borrowed or purchased under resale agreements	1,913		3,530
Other assets	146		223
Liabilities:
Deposits	$	451	$	362
Securities loaned or sold under repurchase agreements	148		102
Commercial paper and other short-term borrowings	1,081		969
Long-term debt	7,333		6,251
Other liabilities	69		61

Revenues and expenses with affiliates for the years ended 2018, 2017, and 2016 were as follows:

	Years Ended December 31,
(Dollars in millions)	2018		2017		2016
Interest Income
Securities borrowed or purchased under resale agreements	$	66	$	41	$	26
Other	2		1		—
Interest Expense
Deposits	3		5		—
Commercial paper and other short-term borrowings	2		15		24
Long-term debt	171		114		69
Securities loaned or sold under repurchase agreements	18		6		2
Noninterest Income
Fees from affiliates	1,213		866		957
Other, net	1		13		(28		)
Noninterest Expense
Other	115		112		95

During 2018, the Company sold loans to affiliates for gross proceeds of $542 million, resulting in gains on sale of $2.1 million. During 2018, the Company purchased loans from affiliates for $314 million.

For additional information regarding the debt due to affiliates, see Note 9 and Note 10 to our Consolidated Financial Statements included in this Form 10-K.

At December 31, 2018, the Company had $1.4 billion in uncommitted, unsecured borrowing facilities with affiliates.

At December 31, 2018 and December 31, 2017, the Company had derivative contracts with affiliates totaling $4 billion and $3 billion, respectively, in notional balances, with $96 million and $2.4 million in net unrealized gains at December 31, 2018 and December 31, 2017, respectively.

An affiliate extends guarantees on liabilities arising out of or in connection with agreements with certain counterparties. There was no amount guaranteed at December 31, 2018 and December 31, 2017.

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Business Segments

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company has four reportable segments: Regional Bank, U.S. Wholesale & Investment Banking, Transaction Banking, and MUSA. The Company uses various management accounting methodologies to measure the performance of its segments. Unlike GAAP, there is no standardized or authoritative guidance for management accounting. Consequently, reported results are not necessarily comparable with those presented by other companies and they are not necessarily indicative of the results that would be reported by the business units if they were separate economic entities.

Methodologies that are applied to the measurement of segment profitability, which are enhanced from time to time, include a funds transfer pricing system, an activity-based costing methodology, other indirect costs and a methodology to allocate the provision for credit losses. In the second quarter of 2018, the Company began measuring the performance of its business segments by reporting revenues and expenses from products and services sold entirely within the business segment that manages the customer relationship. The Company previously applied a “market view” perspective in measuring the business segments, which reported revenues and expenses from products and services sold in both the business segment that provided the product and the business segment that managed the customer relationship. Prior period results have been revised to conform to the current period presentation.

The funds transfer pricing system assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics. A segment receives a credit from Corporate Treasury for its funding sources. Conversely, a segment is assigned a charge by Corporate Treasury to fund its assets. Certain indirect costs, such as operations and technology expense, are allocated to the segments based on an activity-based costing methodology. Other indirect costs, such as corporate overhead, are allocated to the segments based on internal surveys and metrics that serve as proxies for estimated usage. During the normal course of business, the Company occasionally changes or updates its management accounting methodologies or organizational structure. Certain non-bank subsidiaries, including MUSA, are reported based on their GAAP results.

Regional Bank

The Regional Bank provides banking products and services to individual and business customers in California, Washington and Oregon through five major business lines.

Consumer Banking serves consumers and small businesses through 343 full-service branches, digital channels, call centers, ATMs and alliances with other financial institutions. Products and services include checking and other deposit accounts; residential mortgage loans; consumer loans; home equity lines of credit; credit cards; bill and loan payment services; and merchant services.

Commercial Banking provides commercial and asset-based loans to clients across a wide range of industries with annual revenues up to $1 billion. By working with the Company's other segments, Commercial Banking clients also have access to non-credit products and services including global treasury management, capital markets solutions, foreign exchange and interest rate risk and commodity risk management products and services.

Real Estate Industries serves professional real estate investors and developers with products such as construction loans, commercial mortgages, bridge financing and unsecured financing. Property types supported include apartment, office, retail, industrial and single-family residential on the West Coast and in select metropolitan areas across the country. Real Estate Industries also makes tax credit investments in affordable housing projects through its Community Development Finance unit referenced as LIHC investments. By working with the Company's other segments, Real Estate Industries offers its clients a range of non-credit products and services including global treasury management, capital markets solutions, foreign exchange and interest rate risk and commodity risk management products and services.

Wealth Markets serves corporate, institutional, non-profit and individual clients. Capabilities include Wealth Planning / Trust & Estate Services; Investment Management through HighMark Capital Management, Inc., an SEC-registered investment advisory firm wholly-owned by the bank; Brokerage Services through UnionBanc Investment Services, LLC, an SEC-registered broker-dealer/investment advisory firm wholly-owned by the bank; and Private Wealth Management.

PurePoint Financial serves consumers through a national deposit platform offering savings accounts and CD products to customers through an online platform with services provided through a call center and a network of financial centers in New York, Florida, Illinois and Texas.

U.S. Wholesale & Investment Banking

U.S. Wholesale & Investment Banking delivers the full suite of MUAH products and services to large and mid-corporate customers. The segment employs an industry-focused strategy including dedicated coverage teams in General Industries, Power and Utilities, Oil and Gas, Telecom and Media, Technology, Healthcare and Nonprofit, Public Finance, and Financial Institutions (predominantly Insurance and Asset Managers). U.S. Wholesale & Investment Banking provides customers general corporate credit and structured credit services, including project finance, leasing and equipment finance, commercial finance, funds finance and securitizations. By working with the Company's other segments, U.S. Wholesale & Investment Banking offers its customers a range of noncredit services, which include global treasury management, capital market solutions, and various foreign exchange, interest rate risk and commodity risk management products.

Transaction Banking

Transaction Banking works alongside the Company's other segments to provide working capital management and asset servicing solutions, including deposits and treasury management, trade finance, and institutional trust and custody, to the Company's customers. The client base consists of financial institutions, corporations, government agencies, insurance companies, mutual funds, investment managers and non-profit organizations.

MUFG Securities Americas

MUSA is MUAH's broker-dealer subsidiary which engages in capital markets origination transactions, private placements, collateralized financings, securities borrowing and lending transactions, and domestic and foreign debt and equity securities transactions.

Other

"Other" includes the MUFG Fund Services segment, Markets segment, Japanese Corporate Banking segment and Corporate Treasury. MUFG Fund Services provides comprehensive investment fund administrative solutions. Markets provides risk management solutions, including foreign exchange, interest rate and energy risk management solutions. The Japanese Corporate Banking segment offers a range of credit, deposit, and investment management products and services to companies located primarily in the U.S. that are affiliated with companies headquartered in Japan. Corporate Treasury is responsible for ALM, wholesale funding and the ALM investment and derivatives hedging portfolios. These treasury management activities are carried out to manage the net interest rate and liquidity risks of the Company's balance sheet and to manage those risks within the guidelines established by ALCO. For additional discussion regarding these risk management activities, see Part II, Item 7A. “Quantitative and Qualitative Disclosures About Market Risk” in this Form 10-K.

Additionally, "Other" is comprised of certain corporate activities of the Company; the net impact of funds transfer pricing charges and credits allocated to the reportable segments; the residual costs of support groups; fees from affiliates and noninterest expenses associated with MUFG Bank, Ltd. U.S. branch banking operations; the unallocated allowance; goodwill, intangible assets, and the related amortization/accretion associated with the Company's privatization transaction when we became a privately held company in 2008; the elimination of the fully taxable-equivalent basis amount; the difference between the marginal tax rate and the consolidated effective tax rate; and FDIC covered assets.

The information, set forth in the tables that follow, is prepared using various management accounting methodologies to measure the performance of the individual segments. Unlike GAAP, there is no standardized or authoritative guidance for management accounting. Consequently, reported results are not necessarily comparable with those presented by other companies and they are not necessarily indicative of the results that would be reported by the business units if they were unique economic entities. The management reporting accounting methodologies, which are enhanced from time to time, measure segment profitability by assigning balance sheet and statements of income items to each operating segment. Methodologies that are applied to the measurement of segment profitability include a funds transfer pricing system, an activity-based costing methodology, other indirect costs and a methodology to allocate the provision for credit losses. The funds transfer pricing system assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics between Corporate Treasury and the operating segments. A segment receives a funding credit from Corporate Treasury for its liabilities. Conversely, a segment is assigned a charge by Corporate Treasury to fund its assets. Certain indirect costs, such as operations and technology expense, are allocated to the segments based on an activity-based costing methodology. Other indirect costs, such as corporate overhead, are allocated to the segments based on internal surveys and metrics that serve as proxies for estimated usage. During the normal course of business, the Company occasionally changes or updates its management accounting methodologies or organizational structure. Certain of the transferred IHC entities are not measured using management accounting methodologies.

As of and for the Twelve Months Ended December 31, 2018:

(Dollars in millions)	Regional Bank		U.S. Wholesale & Investment Banking		Transaction Banking			MUSA		Other			MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,195	$	415	$	264		$	200	$	233		$	3,307
Noninterest income	451		373		59			300		994			2,177
Total revenue	2,646		788		323			500		1,227			5,484
Noninterest expense	2,058		418		255			443		1,103			4,277
(Reversal of) provision for credit losses	65		42		(3		)	—		2			106
Income (loss) before income taxes and including noncontrolling interests	523		328		71			57		122			1,101
Income tax expense (benefit) (1)	105		122		19			17		(211		)	52
Net income (loss) including noncontrolling interest	418		206		52			40		333			1,049
Deduct: net loss from noncontrolling interests	—		—		—			—		24			24
Net income (loss) attributable to MUAH	$	418	$	206	$	52		$	40	$	357		$	1,073
Total assets, end of period	$	73,554	$	20,933	$	941		$	33,844	$	38,828		$	168,100

(1) Income tax expense (benefit) includes certain management accounting classification adjustments.

As of and for the Twelve Months Ended December 31, 2017:

(Dollars in millions)	Regional Bank		U.S. Wholesale & Investment Banking			Transaction Banking		MUSA		Other			MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,051	$	417		$	247	$	234	$	255		$	3,204
Noninterest income	442		370			64		351		783			2,010
Total revenue	2,493		787			311		585		1,038			5,214
Noninterest expense	1,961		403			229		445		946			3,984
(Reversal of) provision for credit losses	22		(104		)	1		—		(22		)	(103		)
Income (loss) before income taxes and including noncontrolling interests	510		488			81		140		114			1,333
Income tax expense (benefit) (1)	178		(197		)	33		59		226			299
Net income (loss) including noncontrolling interest	332		685			48		81		(112		)	1,034
Deduct: net loss from noncontrolling interests	—		—			—		—		43			43
Net income (loss) attributable to MUAH	$	332	$	685		$	48	$	81	$	(69	)	$	1,077
Total assets, end of period	$	67,804	$	20,461		$	1,063	$	32,062	$	33,160		$	154,550

(1) Income tax expense (benefit) includes certain management accounting classification adjustments.

As of and for the Twelve Months Ended December 31, 2016:

(Dollars in millions)	Regional Bank		U.S. Wholesale & Investment Banking		Transaction Banking		MUSA		Other		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	1,952	$	541	$	202	$	164	$	194	$	3,053
Noninterest income	449		368		72		302		1,034		2,225
Total revenue	2,401		909		274		466		1,228		5,278
Noninterest expense	1,843		404		190		362		983		3,782
(Reversal of) provision for credit losses	30		98		—		—		27		155
Income (loss) before income taxes and including noncontrolling interests	528		407		84		104		218		1,341
Income tax expense (benefit) (1)	152		91		39		41		96		419
Net income (loss) including noncontrolling interest	376		316		45		63		122		922
Deduct: net loss from noncontrolling interests	—		—		—		—		68		68
Net income (loss) attributable to MUAH	$	376	$	316	$	45	$	63	$	190	$	990
Total assets, end of period	$	63,169	$	23,805	$	1,205	$	29,252	$	30,713	$	148,144

(1) Income tax expense (benefit) includes certain management accounting classification adjustments.

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Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company)

Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company)

Condensed Balance Sheets

	December 31,
(Dollars in millions)	2018		2017
Assets
Cash and cash equivalents	$	739	$	1,341
Investments in and advances to subsidiaries
Bank subsidiary	18,493		19,598
Nonbank subsidiaries	4,618		4,314
Other assets	76		69
Total assets	$	23,926	$	25,322
Liabilities and Stockholders' Equity
Long-term debt	$	7,355	$	6,997
Other liabilities	63		70
Total liabilities	7,418		7,067
Stockholders' equity	16,508		18,255
Total liabilities and stockholders' equity	$	23,926	$	25,322

Condensed Statements of Income

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Income:
Dividends from subsidiaries:
Bank subsidiary	$	1,700		$	320		$	—
Nonbank subsidiaries	95			51			—
Interest income on advances to subsidiaries and deposits in bank	137			79			22
Rental Income	15			15			16
Total income	1,947			465			38
Expense:
Interest expense	194			144			75
Other expense	17			14			19
Total expense	211			158			94
Income (loss) before income taxes and equity in undistributed net income of subsidiaries	1,736			307			(56		)
Income tax benefit	(13		)	(20		)	(22		)
Income (loss) before equity in undistributed net income of subsidiaries	1,749			327			(34		)
Equity in undistributed net income of subsidiaries less dividends received:
Bank subsidiary	(697		)	366			900
Nonbank subsidiaries	21			384			124
Net Income	$	1,073		$	1,077		$	990

Condensed Statements of Cash Flows

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Cash Flows from Operating Activities:
Net income	$	1,073		$	1,077		$	990
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed net income of subsidiaries less dividends received	676			(750		)	(1,024		)
Other, net	(9		)	2			—
Net cash provided by (used in) operating activities	1,740			329			(34		)
Cash Flows from Investing Activities:
Investments in and advances to subsidiaries	(2,612		)	(5,050		)	(1,197		)
Repayment of investments in and advances to subsidiaries	2,411			1,495			1,820
Net cash used in investing activities	(201		)	(3,555		)	623
Cash Flows from Financing Activities:
Proceeds from advances from subsidiaries	—			200			—
Repayment of advances from subsidiaries	—			(200		)	—
Proceeds from issuance of long-term debt	6,500			3,525			545
Repayment of long-term debt	(6,145		)	—			—
Dividends paid	—			(500		)	—
Share repurchase	(2,496		)	—			—
Other, net	—			—			1
Net cash provided by (used in) financing activities	(2,141		)	3,025			546
Net increase (decrease) in cash and cash equivalents	(602		)	(201		)	1,135
Cash and cash equivalents at beginning of year	1,341			1,542			407
Cash and cash equivalents at end of year	$	739		$	1,341		$	1,542

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Summary of Significant Accounting Policies and Nature of Operations (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Financial Statement Presentation

Principles of Consolidation and Basis of Financial Statement Presentation

The consolidated financial statements include the accounts of the Company and other entities in which the Company has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a VIE. The primary beneficiary of a VIE is the entity that has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and has the obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. Results of operations from VIEs are included from the dates that the Company became the primary beneficiary. All intercompany transactions and balances with consolidated entities are eliminated in consolidation.

The Company accounts for equity investments over which it exerts significant influence using the equity method of accounting. Non-marketable equity investments where the Company does not exert significant influence are accounted for at cost or using the proportional amortization method. Investments accounted for under the equity method, proportional amortization method, and cost method are included in other assets.

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). The policies that materially affect the determination of financial position, results of operations and cash flows are summarized below.

The preparation of financial statements in conformity with GAAP also requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Although such estimates contemplate current conditions and management's expectations of how they may change in the future, it is reasonably possible that actual results could differ significantly from those estimates. This could materially affect the Company's results of operations and financial condition in the near term. Critical estimates made by management in the preparation of the Company's financial statements include, but are not limited to, the allowance for credit losses (Note 3), goodwill impairment (Note 5), fair value of financial instruments (Note 11), pension accounting (Note 15), income taxes (Note 17), and transfer pricing (Note 21).

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and due from banks, interest bearing deposits in banks, and federal funds sold.

Securities Borrowed or Purchased under Agreements to Resell and Securities Loaned or Sold under Agreements to Repurchase

Securities Borrowed or Purchased under Agreements to Resell and Securities Loaned or Sold under Agreements to Repurchase

Securities borrowed and securities loaned transactions do not qualify for sale accounting and therefore are not recognized on the transferee's balance sheet. Securities borrowed and securities loaned represent the amount of cash collateral advanced or received, respectively. The Company monitors the market value of the borrowed and loaned securities on a daily basis, with additional collateral obtained or refunded as necessary. Accrued interest associated with securities borrowed and securities loaned is included in other assets and other liabilities, respectively. Interest associated with securities borrowed and securities loaned is recorded as interest income and interest expense, respectively.

Repurchase and Resale Agreements

Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”) do not qualify for sale accounting and therefore are not recognized on the transferee's balance sheet. Transactions involving these agreements are accounted for as collateralized financings. These agreements are recorded at the amounts at which the securities were acquired or sold and are carried at amortized cost. The Company generally obtains possession of collateral with a market value equal to or in excess of the principal amount financed under reverse repurchase agreements. Collateral is valued daily, and the Company may require counterparties to deposit additional collateral or return collateral pledged, when appropriate. Accrued interest associated with reverse repurchase agreements and repurchase agreements is included in other assets and other liabilities, respectively. Interest associated with reverse repurchase agreements and repurchase agreements is recorded as interest income and interest expense, respectively. The Company generally enters into reverse repurchase and repurchase agreements under legally enforceable master repurchase agreements that give the Company, in the event of counterparty default, the right to liquidate securities held and offset receivables and payables with the same counterparty. The Company offsets reverse repurchase and repurchase agreements with the same counterparty where they have a legally enforceable master netting agreement and the transactions have the same maturity date.

Trading Account Assets and Liabilities

Trading Account Assets and Liabilities

Trading account assets and liabilities are recorded at fair value and include certain securities and derivatives. Securities are classified as trading when management acquires them with the intent to hold for short periods, primarily at MUAH's broker-dealer subsidiary, MUSA, or as an accommodation to customers. Substantially all of the securities have a high degree of liquidity and a readily determinable fair value. Interest on securities classified as trading is included in interest income, and realized gains and losses from sale and unrealized fair value adjustments are recognized in noninterest income. Trading securities that are pledged under an agreement to repurchase and which may be sold or repledged under that agreement are separately identified as pledged as collateral.

Derivatives included in trading account assets and liabilities are entered into for trading purposes or as an accommodation to customers. Contracts primarily include interest rate swaps and options, commodity swaps and options, and foreign exchange contracts. The Company nets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting arrangement exists between the Company and the derivative counterparty. Changes in fair values and realized income or expense for trading asset and liability derivatives are included in noninterest income.

Securities

Securities

Securities are classified based on management's intent and are recorded on the consolidated balance sheet as of the trade date, when acquired in a regular-way trade. Debt securities for which management has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at amortized cost. Debt securities with readily determinable fair values that are not classified as trading assets or held to maturity are classified as available for sale and are carried at fair value, with the unrealized gains or losses reported net of taxes as a component of AOCI in stockholders' equity until realized.

Interest income on debt securities classified as either available for sale or held to maturity includes the amortization of premiums and the accretion of discounts using a method that produces a level yield and is included in interest income on securities.

Realized gains and losses on the sale of available for sale securities are included in noninterest income. The specific identification method is used to calculate realized gains and losses on sales.

Securities available for sale that are pledged under an agreement to repurchase and which may be sold or repledged under that agreement are separately identified as pledged as collateral.

Other-than-Temporary Impairment

Debt securities available for sale and debt securities held to maturity are subject to impairment testing when a security's fair value is lower than its amortized cost. Debt securities with unrealized losses are considered other-than-temporarily impaired if we intend to sell the debt security, if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, or if we do not expect to recover the entire amortized cost basis of the security. If we intend to sell the security, or if it is more likely than not that we will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the entire difference between the amortized cost basis and fair value of the debt security. However, even if we do not expect to sell a debt security we must evaluate the expected cash flows to be received and determine if a credit loss exists. In the event of a credit loss, only the amount of impairment associated with the credit loss is recognized in income. Amounts related to factors other than credit losses are recorded in other comprehensive income. For further information on our other-than-temporary impairment analysis, see Note 2 to our Consolidated Financial Statements in this Form 10-K.

Loans Held for Investment, Purchased Credit-Impaired Loans, Other Acquired Loans and Loans Held for Sale

Loans Held for Investment, Other Acquired Loans, Loans Held for Sale and Leases

Loans held for investment are reported at the principal amounts outstanding, net of charge-offs, unamortized nonrefundable loan fees, direct loan origination costs, and purchase premiums and discounts. Where loans are held for investment, the net basis adjustment excluding charge-offs on the loan is generally recognized in interest income on an effective yield basis over the contractual loan term.

Nonaccrual loans are those for which management has discontinued accrual of interest because there exists significant uncertainty as to the full and timely collection of either principal or interest. Loans are generally placed on nonaccrual when such loans have become contractually past due 90 days with respect to principal or interest. Past due status is determined based on the contractual terms of the loan and the number of payment cycles since the last payment date. Interest accruals are continued past 90 days for certain small business loans and consumer installment loans, which are charged off at 120 days. For the commercial loan portfolio segment, interest accruals are also continued for loans that are both well-secured and in the process of collection.

When a loan is placed on nonaccrual status, all previously accrued but uncollected interest is reversed against current period interest income. When full collection of the outstanding principal balance is in doubt, subsequent payments received are first applied to unpaid principal and then to uncollected interest. A loan may be returned to accrual status at such time as the loan is brought fully current as to both principal and interest, and such loan is considered to be fully collectible on a timely basis. The Company's policy also allows management to continue the recognition of interest income on certain loans placed on nonaccrual status. This portion of the nonaccrual portfolio is referred to as "Cash Basis Nonaccrual" under which the accrual of interest is suspended and interest income is recognized only when collected. This policy applies to consumer portfolio segment loans and commercial portfolio segment loans that are well-secured and in management's judgment are considered to be fully collectible but the timely collection of payments is in doubt.

A TDR is a restructuring of a loan in which the creditor, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. A loan subject to such a restructuring is accounted for as a TDR. A TDR typically involves a modification of terms such as a reduction of the interest rate below the current market rate for a loan with similar risk characteristics or extending the maturity date of the loan without corresponding compensation or additional support. The Company measures impairment of a TDR using the methodology described for individually impaired loans (see "Allowance for Loan Losses" below). For the consumer portfolio segment, TDRs are initially placed on nonaccrual and typically, a minimum of six consecutive months of sustained performance is required before returning to accrual status. For the commercial portfolio segment, the Company generally determines accrual status for TDRs by performing an individual assessment of each loan, which may include, among other factors, demonstrated performance by the borrower under the previous terms.

Except for certain transactions between entities under common control, loans acquired in a transfer, including business combinations, are recorded at fair value at the acquisition date, factoring in credit losses expected to be incurred over the life of the loan.

Loans held for sale, which are recorded in other assets, are carried at the lower of cost or fair value and measured on an individual basis for commercial loans and on an aggregate basis for residential mortgage loans. Changes in fair value are recognized in other noninterest income. Nonrefundable fees, direct loan origination costs, and purchase premiums and discounts related to loans held for sale are deferred and recognized as a component of the gain or loss on sale. Contractual interest earned on loans held for sale is recognized in interest income.

As lessor, the Company primarily offers two types of leases to customers: 1) direct financing leases where the assets leased are acquired without additional financing from other sources, and 2) leveraged leases where a substantial portion of the financing is provided by debt with no recourse to the Company. Direct financing leases and leveraged leases are recorded based on the amount of minimum lease payments receivable, unguaranteed residual value accruing to the benefit of the lessor, unamortized initial direct costs, and are reduced for any unearned income. Leveraged leases are recorded net of any nonrecourse debt.

Allowance for Loan Losses

Allowance for Loan Losses

The Company maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the probable estimated losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses, which is charged against current period operating results and decreased by the amount of charge-offs, net of recoveries. The Company's methodology for assessing the appropriateness of the allowance consists of several key elements, which include the allowance for loans collectively evaluated for impairment, the allowance for loans individually evaluated for impairment, and the unallocated allowance. Management estimates probable losses inherent in the portfolio based on a loss emergence period. The loss emergence period is the estimated average period of time between a material adverse event that affects the creditworthiness of a borrower and the subsequent recognition of a loss. Updates of the loss emergence period are performed when significant events cause management to reexamine data. Management develops and documents its systematic methodology for determining the allowance for loan losses by first dividing its portfolio into segments—the commercial segment and consumer segment. The Company further divides the portfolio segments into classes based on initial measurement attributes, risk characteristics or its method of monitoring and assessing credit risk. The classes for the Company include commercial and industrial, commercial mortgage, construction, residential mortgage, and home equity and other consumer loans. While the Company's methodology attributes portions of the allowance to specific portfolio segments, the entire allowance is available to absorb credit losses inherent in the total loan portfolio.

For the commercial portfolio segment, the allowance for loans collectively evaluated for impairment is calculated by utilizing a dual factor internal risk rating system that encompasses both the probability that a credit facility may ultimately default (i.e. probability of default) and an estimate of the severity of the loss that would be realized upon such default (i.e. the loss-given default) and applying these risk ratings to outstanding loans and most unused commitments. The probability of default and loss-given default may be adjusted for qualitative or environmental factors that, in management's judgment, are likely to cause estimated credit losses associated with the existing portfolio to differ from the historical probability of default and loss-given default. The Company refined its methodology for estimating the allowance for commercial loans collectively evaluated for impairment and the allowance for losses on unfunded credit commitments during the first quarter of 2018. Previously the Company derived the allowance for these loans by assigning a loss factor based on an internal risk rating that estimated the probability that a credit facility may ultimately default (i.e. probability of default) rather than a dual factor internal risk rating system that encompasses both the probability of default and an estimate of the severity of the loss that would be realized upon such default (i.e. the loss-given default). During the second quarter of 2018, the Company implemented refinements to the qualitative considerations used in our reserve methodology. 

For the consumer portfolio segment, loans are generally pooled by product type with similar risk characteristics. The Company estimates the allowance for loans collectively evaluated for impairment based on forecasted losses.

The allowance for loans collectively evaluated for impairment also includes attributions for certain sectors within the commercial and consumer portfolio segments to account for probable losses based on incurred loss events that are currently not reflected in the probability of default and loss-given default. Segment attributions are calculated based on migration scenarios for the commercial portfolio and specific attributes applicable to the consumer portfolio. Segment considerations are revised periodically as portfolio and environmental conditions change.

The Company individually evaluates for impairment larger nonaccruing loans within the commercial portfolio. Residential mortgage and consumer loans are not individually evaluated for impairment unless they represent TDRs. Loans are considered impaired when the evaluation of current information regarding the borrower's financial condition, loan collateral, and cash flows indicates that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement, including interest payments. The amount of impairment is measured using the present value of expected future cash flows discounted at the loan's effective rate, the loan's observable market price, or the fair value of the collateral, if the loan is collateral dependent.

The unallocated allowance is composed of attributions that are intended to capture probable losses from adverse changes in credit migration and other inherent losses that are not currently reflected in the allowance for loan losses that are ascribed to our portfolio segments.

Significant risk characteristics considered in estimating the allowance for credit losses include the following:

• Commercial and industrial—industry specific economic trends and individual borrower financial condition

• Construction and commercial mortgage loans—type of property (i.e., residential, commercial, industrial), geographic concentrations, and risks and individual borrower financial condition

• Residential mortgage and consumer—historical and expected future charge-offs, borrower's credit, property collateral, and loan characteristics

Loans are charged-off in whole or in part when they are considered to be uncollectible. Loans in the commercial loan portfolio segment are generally considered uncollectible based on an evaluation of borrower financial condition as well as the value of any collateral. Loans in the consumer portfolio segment are generally considered uncollectible based on past due status or the execution of certain TDR modifications such as discharge through Chapter 7 bankruptcy and the value of any collateral. Recoveries of amounts previously charged off are recorded as a recovery to the allowance for loan losses.

Allowance for Losses on Unfunded Credit Commitments

Allowance for Losses on Unfunded Credit Commitments

The Company maintains an allowance for losses on unfunded credit commitments to absorb losses inherent in those commitments upon funding. The Company's methodology for assessing the appropriateness of this allowance is the same as that used for the allowance for loan losses (see "Allowance for Loan Losses" above) and incorporates an assumption based upon historical experience of likely utilization of the commitment. The allowance for losses on unfunded credit commitments is classified as other liabilities and the change in this allowance is recognized in the provision for credit losses. Losses on unfunded credit commitments are identified when exposures committed to customers facing difficulty are drawn upon, and subsequently result in charge-offs.

Goodwill and Identifiable Intangible Assets

Goodwill and Identifiable Intangible Assets

Intangible assets represent purchased assets that lack physical substance and can be separately distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold, exchanged, or licensed. Intangible assets are recorded at fair value at the date of acquisition.

Intangible assets that have indefinite lives are tested for impairment at least annually, and more frequently in certain circumstances. Intangible assets that have finite lives, which include core deposit intangibles, customer relationships, non-compete agreements and trade names, are amortized either using the straight-line method or a method that patterns the consumption of the economic benefit. Intangible assets are amortized over their estimated periods of benefit, which range from three to forty years. The Company periodically evaluates the recoverability of intangible assets and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate impairment exists.

Goodwill is assessed for impairment at least annually at the reporting unit level either qualitatively or quantitatively. If the elected qualitative assessment results indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Various valuation methodologies are applied to carry out the first step of the quantitative impairment test by comparing the fair value of the reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, a second step is required to measure the amount of impairment by comparing the implied fair value of the goodwill assigned to the reporting unit with the carrying amount of that goodwill. Goodwill impairment is recognized through noninterest expense as a direct write down to its carrying amount and subsequent reversals of goodwill impairment are prohibited.

Other Investments

Other Investments

The Company invests in limited liability partnerships and other entities operating qualified affordable housing projects. These LIHC investments provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. The LIHC investments are initially recorded at cost, and are subsequently accounted for under the proportional amortization method, when such requirements are met to apply that methodology. Under the proportional amortization method, the Company amortizes the initial investment in proportion to the tax credits and other tax benefits allocated to the Company, with amortization recognized in the statement of income as a component of income tax expense. When the requirements are not met to apply the proportional amortization method, the investment is accounted for under the equity method of accounting with equity method losses recorded in noninterest expense. LIHC investments are reviewed periodically for impairment.

The Company also invests in limited liability entities and trusts that operate renewable energy projects, either directly or indirectly. Tax credits, taxable income and distributions associated with these renewable energy projects may be allocated to investors according to the terms of the partnership agreements. These investments are accounted for under the equity method and are reviewed periodically for impairment, considering projected operating results and realizability of tax credits. For those projects where economic benefits are not allocated based on pro rata ownership percentage, the Company accounts for its investments using the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, the Company determines its share of an investee’s earnings by comparing the amount it would hypothetically receive at each balance sheet reporting date under the liquidation provisions of the partnership agreements, assuming the investee's net assets were liquidated at amounts determined in accordance with GAAP and distributed to the Company, after taking capital transactions during the period into account.

Derivative Instruments Used in Hedging Relationships

Derivative Instruments Used in Hedging Relationships

The Company enters into a variety of derivative contracts as a means of managing the Company's interest rate exposure and designates such derivatives under qualifying hedge relationships. All such derivative instruments are recorded at fair value and are included in other assets or other liabilities. The Company offsets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting arrangement exists between the Company and the derivative counterparty.

At hedge inception, the Company designates a derivative instrument as a hedge of the fair value of a recognized asset or liability (i.e., fair value hedge), or a hedge of the variability in the expected future cash flows associated with either an existing recognized asset or liability or a probable forecasted transaction (i.e., cash flow hedge).

Where hedge accounting is applied at hedge inception, the Company formally documents its risk management objective and strategy for undertaking the hedge, which includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged, and how the hedge's effectiveness will be assessed prospectively and retrospectively. Both at the inception of the hedge and on an ongoing basis, the hedging instrument must be highly effective in offsetting changes in fair values or cash flows of the hedged item in order to qualify for hedge accounting.

For fair value hedges, any ineffectiveness is recognized in noninterest expense in the period in which it arises. For cash flow hedges, only ineffectiveness resulting from over-hedging is recorded in earnings as an adjustment to noninterest expense, with other changes in the fair value of the derivative instrument recognized in other comprehensive income. For cash flow hedges of interest rate risk, the amount in other comprehensive income is subsequently reclassified to net interest income in the period in which the cash flow from the hedged item is recognized in earnings. If a derivative instrument is no longer determined to be highly effective as a designated hedge, hedge accounting is discontinued and subsequent fair value adjustments of the derivative instrument are recorded in earnings.

Transfers of Financial Assets

Transfers of Financial Assets

Transfers of financial assets in which the Company has surrendered control over the transferred assets are accounted for as sales. Control is generally considered to have been surrendered when the transferred assets have been legally isolated from the Company, the transferee has the right to pledge or exchange the assets without any significant constraints, and the Company has not entered into a repurchase agreement, does not hold unconditional call options and has not written put options on the transferred assets. In assessing whether control has been surrendered, the Company considers whether the transferee would be a consolidated affiliate and the impact of all arrangements or agreements made contemporaneously with, or in contemplation of, the transfer, even if they were not entered into at the time of transfer.

Transfer Pricing

Transfer Pricing

Employees of the Company perform management and support services to MUFG Bank, Ltd. in connection with the operation and administration of MUFG Bank, Ltd.’s businesses in the Americas. In consideration for the services provided, MUFG Bank, Ltd. pays the Company fees under a master services agreement, which reflects market-based pricing for those services. The Company recognizes transfer pricing revenue when delivery (performance) has occurred or services have been rendered. Revenue is typically recognized based on the gross amount billed to MUFG Bank, Ltd. without netting the associated costs to perform those services. Gross presentation is typically deemed appropriate in these instances as the Company acts as a principal when providing these services directly to MUFG Bank, Ltd.

Operating Leases

.

Income Taxes

Income Taxes

The Company files consolidated U.S. federal income tax returns, foreign tax returns and various combined and separate company state income tax returns.

We record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize the deferred income tax effects of a change in tax rates in the period of the enactment.

We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. We make adjustments to these reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made, and could have a material impact on our financial condition and operating results. Foreign taxes paid are generally applied as credits to reduce U.S. federal income taxes payable.

Employee Pension and Other Postretirement Benefits

Employee Pension and Other Postretirement Benefits

The Company provides a variety of pension and other postretirement benefit plans for eligible employees and retirees. Net periodic pension and other postretirement benefit cost is recognized over the approximate service period of plan participants and includes significant discount rate and plan asset return assumptions.

Stock-Based Compensation

Stock-Based Compensation

Business Combinations

Business Combinations

The Company accounts for all business combinations using the acquisition method of accounting. Assets and liabilities acquired are recorded at fair value at the acquisition date, with the excess of purchase price over the fair value of the net assets acquired (including identifiable intangibles) recorded as goodwill. Management may further adjust the acquisition date fair values for a period of up to one year from the date of acquisition. The recognition at the acquisition date of an allowance for loan losses is not carried over or recorded as of acquisition date, as credit-related factors are incorporated directly into the fair value measurement of the loans. For combinations between entities under common control, assets and liabilities acquired are recorded at book value at the transfer date.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Accounting for Leases

In February 2016, the FASB issued ASU 2016-02, Leases, which will require entities that lease assets (i.e., lessees) to recognize assets and liabilities on their balance sheet for the rights and obligations created by those leases. The accounting by entities that own the assets leased (i.e., lessors) will remain largely unchanged; however, leveraged lease accounting will no longer be permitted for leases that commence after the effective date. The ASU will also require qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases, which allows entities the option to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In December 2018, the FASB issued ASU 2018-20, Leases, which clarified lessor accounting for sales and similar taxes collected by lessors, certain lessor costs, and lease payments with lease and nonlease components. Effective January 1, 2019 the Company adopted this guidance which does not significantly impact the Company's financial position or results of operations.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provides new guidance on the accounting for credit losses for instruments that are within its scope. This new guidance is commonly referred to as the current expected credit loss (“CECL”) model. For loans and debt securities accounted for at amortized cost, certain off-balance sheet credit exposures, net investments in leases, and trade receivables, the ASU requires an entity to recognize its estimate of credit losses expected over the life of the financial instrument or exposure. Lifetime expected credit losses on purchased financial assets with credit deterioration will be recognized as an allowance with an offset to the cost basis of the asset. For available for sale debt securities, the new standard will require recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. The ASU is effective for interim and annual periods beginning on January 1, 2020, with early adoption permitted in 2019. The Company plans to adopt the ASU on January 1, 2020. The Company is in the design phase of the implementation. Management is currently assessing the impact of this guidance on the Company’s financial position or results of operations.

Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The ASU removes Step 2 of the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments, a goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The ASU will be effective for MUAH beginning January 1, 2020 on a prospective basis. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations.

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which requires premiums on certain purchased callable debt securities to be amortized to the earliest call date. Under current guidance, premiums on callable debt securities are generally amortized over the contractual life of the security. The amortization period for callable debt securities purchased at a discount will not be impacted. Effective January 1, 2019 the Company adopted this guidance which does not significantly impact the Company's financial position or results of operations.

Targeted Improvements to Accounting for Hedging Activities

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, which will make more hedging strategies eligible for hedge accounting, simplify the application of hedge accounting, and enhance the transparency and understandability of hedge results. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. It also amends the disclosure requirements and changes how entities assess effectiveness. Effective January 1, 2019 the Company adopted this guidance which does not significantly impact the Company's financial position or results of operations.

Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies disclosure requirements on fair value measurements to improve their effectiveness. The guidance permits entities to consider materiality when evaluating fair value measurement disclosures and, among other modifications, requires certain new disclosures related to Level 3 fair value measurements. The guidance will be effective for MUAH beginning January 1, 2020, with early adoption permitted. The guidance only affects disclosures in the notes to the consolidated financial statements and will not affect the Company’s financial position or results of operations.

Recently Adopted Accounting Pronouncements

Revenue from Contracts with Customers

Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers, which provides guidance on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU applies to all contracts with customers, except financial instruments, guarantees, lease contracts, insurance contracts and certain non-monetary exchanges. This guidance did not significantly affect the Company's financial position or results of operations.

Principal versus Agent Considerations (Reporting Revenue Gross versus Net)

Effective January 1, 2018, the Company adopted ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The ASU amends ASU 2014-09, Revenue from Contracts with Customers, with respect to assessing whether an entity is a principal (and thus presents revenue gross) or an agent (and thus presents revenue net). The amendments retain the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer and clarify: (1) that an entity must first identify the specified good or service being provided to the customer; (2) that the unit of account for the principal versus agent assessment is each specified good or service promised in a contract; (3) indicators and examples to help an entity evaluate whether it is the principal; and (4) how to assess whether an entity controls services performed by another party. As a result of adopting ASU 2016-08, beginning January 1, 2018, certain expenses that were previously presented as a reduction of related fees from affiliates and investment banking and syndication fees are presented in noninterest expense.

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

Effective January 1, 2018, the Company adopted ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amended the income statement presentation of the components of net periodic benefit cost for sponsored defined benefit pension and other postretirement plans. As a result of adopting ASU 2017-07, the salaries and employee benefits expense and other expense categories in noninterest expense have been adjusted to reflect adoption of this guidance as follows.

	For the Year Ended							For the Year Ended
	2017							2016
(Dollars in millions)	As Previously Reported		Adjustment			As Reported under New Guidance		As Previously Reported		Adjustment			As Reported under New Guidance
Salaries and employee benefits	$	2,376	$	119		$	2,495	$	2,355	$	84		$	2,439
Other	508		(119		)	389		479		(84		)	395

Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans

In August 2018, the FASB issued ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to improve the effectiveness of the disclosures. The guidance includes new requirements to disclose the weighted-average interest crediting rate for cash balance plans and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation. The Company early adopted this guidance, which is reflected in Note 15. This guidance did not affect the Company’s financial position or results of operations.

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Summary of Significant Accounting Policies and Nature of Operations (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

As a result of adopting ASU 2017-07, the salaries and employee benefits expense and other expense categories in noninterest expense have been adjusted to reflect adoption of this guidance as follows.

	For the Year Ended							For the Year Ended
	2017							2016
(Dollars in millions)	As Previously Reported		Adjustment			As Reported under New Guidance		As Previously Reported		Adjustment			As Reported under New Guidance
Salaries and employee benefits	$	2,376	$	119		$	2,495	$	2,355	$	84		$	2,439
Other	508		(119		)	389		479		(84		)	395

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Securities (Tables)

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities

At December 31, 2018 and 2017, the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale are presented below.

	December 31, 2018
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	3,572	$	1	$	144	$	3,429
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	8,168		7		168		8,007
Privately issued	887		—		23		864
Privately issued - commercial mortgage-backed securities	1,179		3		20		1,162
Collateralized loan obligations	1,492		—		18		1,474
Other	4		—		—		4
Asset Liability Management securities	15,302		11		373		14,940
Other debt securities:
Direct bank purchase bonds	1,190		30		30		1,190
Other	188		—		4		184
Total securities available for sale	$	16,680	$	41	$	407	$	16,314

	December 31, 2017
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	3,370	$	—	$	118	$	3,252
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	9,338		2		132		9,208
Privately issued	695		3		4		694
Privately issued - commercial mortgage-backed securities	823		4		5		822
Collateralized loan obligations	1,895		10		—		1,905
Other	5		—		—		5
Asset Liability Management securities	16,126		19		259		15,886
Other debt securities:
Direct bank purchase bonds	1,495		38		30		1,503
Other	163		1		—		164
Equity securities	10		—		—		10
Total securities available for sale	$	17,794	$	58	$	289	$	17,563

Securities in Unrealized Loss Position

The Company's securities held to maturity with a continuous unrealized loss position at December 31, 2018 and 2017 are shown below, separately for periods less than 12 months and 12 months or more.

	December 31, 2018
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. Treasury	$	—	$	—	$	—	$	496	$	—	$	2	$	496	$	—	$	2
U.S. government agency and government-sponsored agencies—residential mortgage backed securities	668		—		11		7,191		96		180		7,859		96		191
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	29		—		—		1,396		42		18		1,425		42		18
Total securities held to maturity	$	697	$	—	$	11	$	9,083	$	138	$	200	$	9,780	$	138	$	211

	December 31, 2017
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. Treasury	$	494	$	—	$	1	$	—	$	—	$	—	$	494	$	—	$	1
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	2,649		—		31		$	4,000	31		99		6,649		31		130
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	19		—		—		1,496		52		9		1,515		52		9
Total securities held to maturity	$	3,162	$	—	$	32	$	5,496	$	83	$	108	$	8,658	$	83	$	140

The Company's securities available for sale with a continuous unrealized loss position at December 31, 2018 and 2017 are shown below, identified for periods less than 12 months and 12 months or more.

	December 31, 2018
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	147	$	1	$	3,182	$	143	$	3,329	$	144
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	1,941		8		4,797		160		6,738		168
Privately issued	398		7		383		16		781		23
Privately issued - commercial mortgage-backed securities	364		6		512		14		876		20
Collateralized loan obligations	1,428		18		—		—		1,428		18
Asset Liability Management securities	4,278		40		8,874		333		13,152		373
Other debt securities:
Direct bank purchase bonds	221		6		417		24		638		30
Other	178		4		4		—		182		4
Total securities available for sale	$	4,677	$	50	$	9,295	$	357	$	13,972	$	407

	December 31, 2017
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	1,074	$	14	$	2,128	$	104	$	3,202	$	118
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	3,606		22		4,651		110		8,257		132
Privately issued	275		1		164		3		439		4
Privately issued - commercial mortgage-backed securities	447		3		80		2		527		5
Collateralized loan obligations	12		—		—		—		12		—
Asset Liability Management securities	5,414		40		7,023		219		12,437		259
Other debt securities:
Direct bank purchase bonds	58		4		563		26		621		30
Other	79		—		—		—		79		—
Equity securities	10		—		—		—		10		—
Total securities available for sale	$	5,561	$	44	$	7,586	$	245	$	13,147	$	289

Debt Securities by Contractual Maturity

The fair value of debt securities available for sale by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	December 31, 2018
(Dollars in millions)	One Year or Less		Over One Year Through Five Years		Over Five Years Through Ten Years		Over Ten Years		Total Fair Value
Asset Liability Management securities:
U.S. Treasury	$	—	$	1,284	$	2,145	$	—	$	3,429
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	—		212		1,306		6,489		8,007
Privately issued	—		—		—		864		864
Privately issued - commercial mortgage-backed securities	—		25		43		1,094		1,162
Collateralized loan obligations	—		1		352		1,121		1,474
Other	1		3		—		—		4
Asset Liability Management securities	1		1,525		3,846		9,568		14,940
Other debt securities:
Direct bank purchase bonds	26		424		612		128		1,190
Other	3		163		—		18		184
Total debt securities available for sale	$	30	$	2,112	$	4,458	$	9,714	$	16,314

The carrying amount and fair value of securities held to maturity by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	December 31, 2018
	Within One Year				Over One Year Through Five Years				Over Five Years Through Ten Years				Over Ten Years				Total
(Dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
U.S. Treasury	$	519	$	518	$	9	$	9	$	—	$	—	$	—	$	—	$	528	$	527
U.S. government-sponsored agencies	—		—		—		—		722		723		—		—		722		723
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	—		—		—		—		1,008		986		7,199		7,041		8,207		8,027
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	46		46		787		797		—		—		611		600		1,444		1,443
Total securities held to maturity	$	565	$	564	$	796	$	806	$	1,730	$	1,709	$	7,810	$	7,641	$	10,901	$	10,720

Proceeds from Sales of Securities Available for Sale and Gross Realized Gains and Losses

The gross realized gains and losses from sales of available for sale securities for the years ended December 31, 2018, 2017 and 2016 are shown below. The specific identification method is used to calculate realized gains and losses on sales.

	For the Year Ended December 31,
(Dollars in millions)	2018		2017		2016
Gross realized gains	$	8	$	17	$	69
Gross realized losses	—		—		—

Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values

At December 31, 2018 and 2017, the amortized cost, gross unrealized gains and losses recognized in OCI, carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. Management has asserted the positive intent and ability to hold these securities to maturity.

	December 31, 2018
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	528	$	—	$	—	$	528	$	1	$	2	$	527
U.S. government-sponsored agencies	722		—		—		722		1		—		723
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	8,302		1		96		8,207		11		191		8,027
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,486		—		42		1,444		17		18		1,443
Total securities held to maturity	$	11,038	$	1	$	138	$	10,901	$	30	$	211	$	10,720

	December 31, 2017
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	525	$	—	$	—	$	525	$	3	$	1	$	527
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	7,870		2		31		7,841		15		130		7,726
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,571		—		52		1,519		36		9		1,546
Total securities held to maturity	$	9,966	$	2	$	83	$	9,885	$	54	$	140	$	9,799

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Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Summary of Loans

The following table provides the outstanding balances of loans held for investment at December 31, 2018 and 2017.

	December 31,
(Dollars in millions)	2018			2017
Loans held for investment:
Commercial and industrial	$	24,919		$	23,281
Commercial mortgage	15,354			14,320
Construction	1,613			1,775
Lease financing	1,249			1,533
Total commercial portfolio	43,135			40,909
Residential mortgage	38,439			35,643
Home equity and other consumer loans	4,933			3,462
Total consumer portfolio	43,372			39,105
Total loans held for investment(1)	86,507			80,014
Allowance for loan losses	(474		)	(476		)
Loans held for investment, net	$	86,033		$	79,538

(1)Includes $340 million and $301 million at December 31, 2018 and December 31, 2017, respectively, for net unamortized (discounts)

and premiums and deferred (fees) and costs.

Reconciliation of Changes in Allowance for Loan Losses by Portfolio Segment

The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment:

	For the Year Ended December 31, 2018
(Dollars in millions)	Commercial			Consumer			Unallocated			Total
Allowance for loan losses, beginning of period	$	360		$	86		$	30		$	476
(Reversal of) provision for loan losses	51			58			(25		)	84
Loans charged-off	(79		)	(41		)	—			(120		)
Recoveries of loans previously charged-off	27			7			—			34
Allowance for loan losses, end of period	$	359		$	110		$	5		$	474

	For the Year Ended December 31, 2017
(Dollars in millions)	Commercial			Consumer			Unallocated		Total
Allowance for loan losses, beginning of period	$	556		$	83		$	—	$	639
(Reversal of) provision for loan losses	(132		)	37			30		(65		)
Other	2			—			—		2
Loans charged-off	(116		)	(39		)	—		(155		)
Recoveries of loans previously charged-off	50			5			—		55
Allowance for loan losses, end of period	$	360		$	86		$	30	$	476

	For the Year Ended December 31, 2016
(Dollars in millions)	Commercial			Consumer			Unallocated			Total
Allowance for loan losses, beginning of period	$	654		$	49		$	20		$	723
(Reversal of) provision for loan losses	134			44			(20		)	158
Other	2			—			—			2
Loans charged-off	(259		)	(12		)	—			(271		)
Recoveries of loans previously charged-off	25			2			—			27
Allowance for loan losses, end of period	$	556		$	83		$	—		$	639

Allowance for Loan Losses and Related Loan Balances by Portfolio Segment

The following tables show the allowance for loan losses and related loan balances by portfolio segment as of December 31, 2018 and 2017.

	December 31, 2018
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	62	$	13	$	—	$	75
Collectively evaluated for impairment	297		97		5		399
Total allowance for loan losses	$	359	$	110	$	5	$	474
Loans held for investment:
Individually evaluated for impairment	$	450	$	280	$	—	$	730
Collectively evaluated for impairment	42,685		43,092		—		85,777
Total loans held for investment	$	43,135	$	43,372	$	—	$	86,507

	December 31, 2017
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	58	$	15	$	—	$	73
Collectively evaluated for impairment	302		71		30		403
Total allowance for loan losses	$	360	$	86	$	30	$	476
Loans held for investment:
Individually evaluated for impairment	$	544	$	321	$	—	$	865
Collectively evaluated for impairment	40,365		38,784		—		79,149
Total loans held for investment	$	40,909	$	39,105	$	—	$	80,014

Summary of Nonaccrual Loans

The following table presents nonaccrual loans as of December 31, 2018 and 2017.

	December 31,
(Dollars in millions)	2018		2017
Commercial and industrial	$	269	$	319
Commercial mortgage	12		20
Total commercial portfolio	281		339
Residential mortgage	121		104
Home equity and other consumer loans	19		22
Total consumer portfolio	140		126
Total nonaccrual loans	$	421	$	465
Troubled debt restructured loans that continue to accrue interest	$	299	$	348
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)	$	136	$	229

Aging of Balance of Loans Held for Investment, Excluding Purchased Credit-Impaired Loans

The following tables show the aging of the balance of loans held for investment by class as of December 31, 2018 and 2017.

	December 31, 2018
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	26,114	$	18	$	36	$	54	$	26,168
Commercial mortgage	15,333		17		4		21		15,354
Construction	1,593		20		—		20		1,613
Total commercial portfolio	43,040		55		40		95		43,135
Residential mortgage	38,218		175		46		221		38,439
Home equity and other consumer loans	4,893		28		12		40		4,933
Total consumer portfolio	43,111		203		58		261		43,372
Total loans held for investment	$	86,151	$	258	$	98	$	356	$	86,507

	December 31, 2017
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	24,734	$	17	$	63	$	80	$	24,814
Commercial mortgage	14,298		16		6		22		14,320
Construction	1,775		—		—		—		1,775
Total commercial portfolio	40,807		33		69		102		40,909
Residential mortgage	35,453		151		39		190		35,643
Home equity and other consumer loans	3,427		23		12		35		3,462
Total consumer portfolio	38,880		174		51		225		39,105
Total loans held for investment	$	79,687	$	207	$	120	$	327	$	80,014

Loans in Commercial Portfolio Segment and Commercial Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Internal Ratings

The following tables summarize the loans in the commercial portfolio segment monitored for credit quality based on regulatory risk ratings.

	December 31, 2018
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	25,191	$	355	$	622	$	26,168
Commercial mortgage	15,138		105		111		15,354
Construction	1,542		8		63		1,613
Total commercial portfolio	$	41,871	$	468	$	796	$	43,135

	December 31, 2017
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	23,632	$	435	$	747	$	24,814
Commercial mortgage	14,081		80		159		14,320
Construction	1,632		15		128		1,775
Total commercial portfolio	$	39,345	$	530	$	1,034	$	40,909

Loans in Consumer Portfolio an Purchased credit-impaired loans

The Company monitors the credit quality of its consumer portfolio segment based primarily on payment status. The following tables summarize the loans in the consumer portfolio segment, which exclude $6 million and $8 million of loans covered by FDIC loss share agreements, at December 31, 2018 and 2017, respectively.

	December 31, 2018
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	38,314	$	121	$	38,435
Home equity and other consumer loans	4,912		19		4,931
Total consumer portfolio	$	43,226	$	140	$	43,366

	December 31, 2017
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	35,534	$	104	$	35,638
Home equity and other consumer loans	3,437		22		3,459
Total consumer portfolio	$	38,971	$	126	$	39,097

Loans in Consumer Portfolio Segment and Consumer Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Refreshed FICO Scores and Refreshed LTV ratios

The following tables summarize the loans in the consumer portfolio segment based on refreshed FICO scores and refreshed LTV ratios at December 31, 2018 and 2017. These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs.

	December 31, 2018
	FICO scores
(Dollars in millions)	720 and Above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	31,589		$	6,022		$	434		$	38,045
Home equity and other consumer loans	3,349			1,448			52			4,849
Total consumer portfolio	$	34,938		$	7,470		$	486		$	42,894
Percentage of total	82		%	17		%	1		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	December 31, 2017
	FICO scores
(Dollars in millions)	720 and Above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	28,786		$	6,082		$	411		$	35,279
Home equity and other consumer loans	2,404			918			84			3,406
Total consumer portfolio	$	31,190		$	7,000		$	495		$	38,685
Percentage of total	81		%	18		%	1		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	December 31, 2018
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	36,604		$	1,361		$	4		$	75		$	38,044
Home equity loans	1,966			221			12			24			2,223
Total consumer portfolio	$	38,570		$	1,582		$	16		$	99		$	40,267
Percentage of total	96		%	4		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

	December 31, 2017
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	34,472		$	771		$	4		$	32		$	35,279
Home equity loans	2,052			248			24			33			2,357
Total consumer portfolio	$	36,524		$	1,019		$	28		$	65		$	37,636
Percentage of total	97		%	3		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

Summary of Troubled Debt Restructurings

The following table provides a summary of the Company's recorded investment in TDRs as of December 31, 2018 and 2017. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $49 million and $66 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of December 31, 2018 and 2017, respectively.

	December 31,
(Dollars in millions)	2018		2017
Commercial and industrial	$	109	$	202
Commercial mortgage	46		7
Construction	63		128
Total commercial portfolio	218		337
Residential mortgage	196		215
Home equity and other consumer loans	21		25
Total consumer portfolio	217		240
Total restructured loans	$	435	$	577

Pre- and Post-Modification Outstanding Recorded Investment Amounts of Troubled Debt Restructurings

The following tables provide the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the years ended December 31, 2018 and 2017.

	For the Year Ended   December 31, 2018				For the Year Ended   December 31, 2017
(Dollars in millions)	Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)		Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)
Commercial and industrial	$	165	$	165	$	186	$	186
Commercial mortgage	4		4		5		5
Construction	—		—		152		131
Total commercial portfolio	169		169		343		322
Residential mortgage	9		9		16		16
Home equity and other consumer loans	2		2		3		3
Total consumer portfolio	11		11		19		19
Total	$	180	$	180	$	362	$	341

(1) Represents the recorded investment in the loan immediately prior to the restructuring event.

(2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

Recorded Investment Amounts of Troubled Debt Restructurings

The following tables provide the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the years ended December 31, 2018 and 2017, and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due.

	December 31,
(Dollars in millions)	2018		2017
Commercial and industrial	$	—	$	19
Commercial mortgage	—		1
Total commercial portfolio	—		20
Residential mortgage	3		3
Home equity and other consumer loans	—		—
Total consumer portfolio	3		3
Total	$	3	$	23

Information about Impaired Loans by Class

The following tables show information about impaired loans by class as of December 31, 2018 and 2017.

	December 31, 2018
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	299	$	22	$	321	$	61	$	372	$	39
Commercial mortgage	25		41		66		1		25		41
Construction	—		63		63		—		—		63
Total commercial portfolio	324		126		450		62		397		143
Residential mortgage	175		71		246		12		184		85
Home equity and other consumer loans	22		12		34		1		22		21
Total consumer portfolio	197		83		280		13		206		106
Total	$	521	$	209	$	730	$	75	$	603	$	249

	December 31, 2017
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	287	$	93	$	380	$	57	$	348	$	102
Commercial mortgage	33		3		36		1		33		3
Construction	—		128		128		—		—		128
Total commercial portfolio	320		224		544		58		381		233
Residential mortgage	218		59		277		15		234		69
Home equity and other consumer loans	29		15		44		—		30		24
Total consumer portfolio	247		74		321		15		264		93
Total	$	567	$	298	$	865	$	73	$	645	$	326

Average Investment in Impaired Loans and Interest Income Recognized for Impaired Loans

The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during 2018, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	Years Ended December 31,
	2018				2017				2016
(Dollars in millions)	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
Commercial and industrial	$	309	$	12	$	463	$	18	$	531	$	4
Commercial mortgage	60		27		58		41		17		1
Construction	95		8		45		5		—		—
Total commercial portfolio	464		47		566		64		548		5
Residential mortgage	261		13		304		14		258		8
Home equity and other consumer loans	38		4		52		6		31		2
Total consumer portfolio	299		17		356		20		289		10
Total	$	763	$	64	$	922	$	84	$	837	$	15

The following table presents loan transfers from held to investment to held for sale and proceeds from sales of loans during 2018, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	Years Ended December 31,
	2018					2017					2016
(Dollars in millions)	Transfer of loans from held for investment to held for sale, net			Proceeds from sale		Transfer of loans from held for investment to held for sale, net			Proceeds from sale		Transfer of loans from held for investment to held for sale, net		Proceeds from sale
Commercial portfolio	$	47		$	638	$	780		$	926	$	1,632	$	1,182
Consumer portfolio	(3		)	—		(4		)	—		344		344
Total	$	44		$	638	$	776		$	926	$	1,976	$	1,526

Outstanding Balances and Carrying Amounts of Purchased Credit-Impaired Loans

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

For impairment testing, goodwill was assigned to the following operating segments at December 31, 2018 and 2017:

(Dollars in millions)	2018		2017
Regional Bank	$	2,134	$	2,134
U.S. Wholesale & Investment Banking	840		840
Transaction Banking	251		251
MUFG Fund Services	76		76
Goodwill, end of year	$	3,301	$	3,301

The changes in the carrying amount of goodwill during 2018 and 2017 are shown in the table below.

(Dollars in millions)	2018		2017
Goodwill, beginning of year	$	3,301	$	3,225
Net change from transferred subsidiaries (1)	—		76
Goodwill, end of year	$	3,301	$	3,301

Identifiable Intangible Assets and Accumulated Amortization

The table below reflects the Company's identifiable intangible assets and accumulated amortization at December 31, 2018 and 2017.

	December 31, 2018							December 31, 2017
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core deposit intangibles	$	565	$	(537	)	$	28	$	565	$	(530	)	$	35
Trade names	111		(32		)	79		113		(29		)	84
Customer relationships	238		(63		)	175		238		(47		)	191
Other(1)	18		(15		)	3		19		(16		)	3
Total intangible assets with a definite useful life	$	932	$	(647	)	$	285	$	935	$	(622	)	$	313

Estimated Future Amortization Expense

Estimated future amortization expense at December 31, 2018 is as follows:

(Dollars in millions)	Core Deposit Intangibles		Trade Name		Customer Relationships		Other		Total Identifiable Intangible Assets
Years ending December 31, :
2019	$	6	$	3	$	16	$	1	$	26
2020	5		3		16		1		25
2021	4		3		15		—		22
2022	4		3		15		—		22
2023	2		3		14		—		19
Thereafter	7		64		99		1		171
Total estimated amortization expense	$	28	$	79	$	175	$	3	$	285

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Premises and Equipment and Other Assets (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Premises and Equipment at Carried Cost, Less Accumulated Depreciation and Amortization

Rental, Depreciation and Amortization Expenses

Future Minimum Lease Payments

Schedule of other assets

The following table shows the balances of other assets as of December 31, 2018 and 2017.

(Dollars in millions)	December 31, 2018		December 31, 2017
Other investments	$	3,250	$	3,412
Premises and equipment, net	635		610
Software	445		424
Intangible assets	444		377
OREO	1		—
Other	4,845		4,587
Total other assets	$	9,620	$	9,410

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Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2018

Variable Interest Entities

Schedule of assets and liabilities of VIEs

The following table presents the impact of the unconsolidated LIHC investments on our consolidated statements of income for the years ended December 31, 2018, 2017 and 2016:

	For the Years Ended December 31,
	2018		2017		2016
(Dollars in millions)
Losses from LIHC investments included in other noninterest expense	$	7	$	13	$	8
Amortization of LIHC investments included in income tax expense	136		185		129
Tax credits and other tax benefits from LIHC investments included in income tax expense	180		193		188

Consolidated VIEs

Variable Interest Entities

Schedule of assets and liabilities of VIEs

The following tables present the assets and liabilities of consolidated VIEs recorded on the Company’s consolidated balance sheets at December 31, 2018 and 2017.

	December 31, 2018
	Consolidated Assets								Consolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	—	$	43	$	43	$	—	$	—
Leasing investments	—		570		122		692		17		17
Total consolidated VIEs	$	—	$	570	$	165	$	735	$	17	$	17

	December 31, 2017
	Consolidated Assets								Consolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	—	$	68	$	68	$	—	$	—
Leasing investments	1		583		158		742		24		24
Total consolidated VIEs	$	1	$	583	$	226	$	810	$	24	$	24

Unconsolidated VIEs

Variable Interest Entities

Schedule of assets and liabilities of VIEs

The following tables present the Company’s carrying amounts related to the unconsolidated VIEs at December 31, 2018 and 2017. The tables also present the Company’s maximum exposure to loss resulting from its involvement with these VIEs. The maximum exposure to loss represents the carrying amount of the Company’s involvement plus any legally binding unfunded commitments in the unlikely event that all of the assets in the VIEs become worthless. During 2018, 2017, and 2016, the Company had noncash increases in unfunded commitments on LIHC investments of $87 million, $55 million and $125 million, respectively, included within other liabilities.

	December 31, 2018
	Unconsolidated Assets										Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	28	$	198	$	976	$	1,202	$	165	$	165	$	1,202
Leasing investments	26		—		19		1,401		1,446		14		14		1,467
Other investments	—		—		—		35		35		—		—		79
Total unconsolidated VIEs	$	26	$	28	$	217	$	2,412	$	2,683	$	179	$	179	$	2,748

	December 31, 2017
	Unconsolidated Assets										Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	29	$	228	$	1,028	$	1,285	$	254	$	254	$	1,284
Leasing investments	1		—		24		1,745		1,770		53		53		1,792
Other investments	—		—		24		26		50		—		—		132
Total unconsolidated VIEs	$	1	$	29	$	276	$	2,799	$	3,105	$	307	$	307	$	3,208

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Deposits (Tables)

12 Months Ended

Dec. 31, 2018

Deposits [Abstract]

Maturity Information of Time Deposits with Remaining Term of Greater Than One Year

Maturity information for all interest bearing time deposits is summarized below.

(Dollars in millions)	December 31, 2018
Due in one year or less	$	7,049
Due after one year through two years	4,032
Due after two years through three years	500
Due after three years through four years	91
Due after four years through five years	66
Due after five years	1
Total	$	11,739

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Securities Financing Agreements (Tables)

12 Months Ended

Dec. 31, 2018

Transfers and Servicing [Abstract]

Secured Borrowings by Contractual Maturity and Class of Collateral Pledged

he following tables present the gross obligations for securities sold under agreements to repurchase and securities loaned by remaining contractual maturity and class of collateral pledged as of December 31, 2018 and December 31, 2017.

	December 31, 2018
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	9,416	$	2,945	$	2,991	$	335	$	15,687
U.S. agency securities	264		—		55		—		319
Money market securities	—		—		49		—		49
Asset-backed securities	—		—		282		—		282
Mortgage-backed securities	9,803		1,640		7,569		—		19,012
Corporate bonds	682		130		1,227		—		2,039
Municipal securities	115		245		188		—		548
Equities	387		220		255		—		862
Total	$	20,667	$	5,180	$	12,616	$	335	$	38,798
Securities loaned:
Corporate bonds	$	1	$	—	$	—	$	—	$	1
Equities	92		—		—		—		92
Total	$	93	$	—	$	—	$	—	$	93

	December 31, 2017
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	8,244	$	2,370	$	1,046	$	1,158	$	12,818
U.S. agency securities	115		38		63		—		216
Other sovereign government obligations	—		—		4		—		4
Money market securities	1		—		6		—		7
Asset-backed securities	32		—		164		—		196
Mortgage-backed securities	8,322		4,972		5,859		250		19,403
Corporate bonds	580		620		1,125		—		2,325
Municipal securities	283		—		276		—		559
Equities	416		376		189		—		981
Total	$	17,993	$	8,376	$	8,732	$	1,408	$	36,509
Securities loaned:
Corporate bonds	$	—	$	322	$	—	$	—	$	322
Equities	446		10		101		—		557
Total	$	446	$	332	$	101	$	—	$	879

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

Offsetting Liabilities

The following tables present the offsetting of financial assets and liabilities as of December 31, 2018 and December 31, 2017.

	December 31, 2018
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	871	$	354	$	517	$	14	$	—	$	503
Securities borrowed or purchased under resale agreements	33,974		11,606		22,368		22,291		—		77
Total	$	34,845	$	11,960	$	22,885	$	22,305	$	—	$	580
Financial Liabilities:
Derivative liabilities	$	804	$	322	$	482	$	69	$	—	$	413
Securities loaned or sold under repurchase agreements	38,891		11,606		27,285		26,434		—		851
Total	$	39,695	$	11,928	$	27,767	$	26,503	$	—	$	1,264

	December 31, 2017
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,322	$	607	$	715	$	25	$	—	$	690
Securities borrowed or purchased under resale agreements	31,845		10,951		20,894		20,816		—		78
Total	$	33,167	$	11,558	$	21,609	$	20,841	$	—	$	768
Financial Liabilities:
Derivative liabilities	$	1,127	$	620	$	507	$	142	$	—	$	365
Securities loaned or sold under repurchase agreements	37,388		10,951		26,437		25,639		—		798
Total	$	38,515	$	11,571	$	26,944	$	25,781	$	—	$	1,163

Offsetting Assets

The following tables present the offsetting of financial assets and liabilities as of December 31, 2018 and December 31, 2017.

	December 31, 2018
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	871	$	354	$	517	$	14	$	—	$	503
Securities borrowed or purchased under resale agreements	33,974		11,606		22,368		22,291		—		77
Total	$	34,845	$	11,960	$	22,885	$	22,305	$	—	$	580
Financial Liabilities:
Derivative liabilities	$	804	$	322	$	482	$	69	$	—	$	413
Securities loaned or sold under repurchase agreements	38,891		11,606		27,285		26,434		—		851
Total	$	39,695	$	11,928	$	27,767	$	26,503	$	—	$	1,264

	December 31, 2017
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,322	$	607	$	715	$	25	$	—	$	690
Securities borrowed or purchased under resale agreements	31,845		10,951		20,894		20,816		—		78
Total	$	33,167	$	11,558	$	21,609	$	20,841	$	—	$	768
Financial Liabilities:
Derivative liabilities	$	1,127	$	620	$	507	$	142	$	—	$	365
Securities loaned or sold under repurchase agreements	37,388		10,951		26,437		25,639		—		798
Total	$	38,515	$	11,571	$	26,944	$	25,781	$	—	$	1,163

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Commercial Paper and Other Short-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2018

Short-term Debt [Abstract]

Summary of Commercial Paper and Other Short-Term Borrowings

The following table is a summary of the Company's commercial paper and other short-term borrowings:

(Dollars in millions)	December 31, 2018		December 31, 2017
Debt issued by MUB
Commercial paper, with a weighted average interest rate of 2.39% and 1.26% at December 31, 2018 and December 31, 2017, respectively	$	382	$	347
Federal Home Loan Bank advances, with a weighted average interest rate of 2.52% and 1.42% at December 31, 2018 and December 31, 2017, respectively	7,800		5,750
Total debt issued by MUB	8,182		6,097
Debt issued by other MUAH subsidiaries
Short-term debt due to MUFG Bank, Ltd., with weighted average interest rates of 3.01% and 1.88% at December 31, 2018 and December 31, 2017, respectively	145		168
Short-term debt due to affiliates, with weighted average interest rates of (-0.07)% and (-0.09)% at December 31, 2018 and December 31, 2017, respectively	936		801
Total debt issued by other MUAH subsidiaries	1,081		969
Total commercial paper and other short-term borrowings	$	9,263	$	7,066

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Summary of Long-Term Debt

Long-term debt consists of borrowings having an original maturity of one year or more. The following is a summary of the Company's long-term debt:

(Dollars in millions)	December 31, 2018		December 31, 2017
Debt issued by MUAH
Senior debt:
Floating rate senior notes due February 2018. These notes, which bore interest at 0.57% above 3-month LIBOR, had a rate of 1.97% at December 31, 2017	$	—	$	250
Fixed rate 1.625% notes due February 2018	—		450
Fixed rate 2.25% notes due February 2020	—		998
Fixed rate 3.50% notes due June 2022	398		398
Fixed rate 3.00% notes due February 2025	397		496
Senior debt due to MUFG Bank, Ltd:
Floating rate debt due March 2020. This note, which bore interest at 0.86% above 3-month LIBOR, had a rate of 2.45% at December 31, 2017	—		545
Floating rate debt due September 2020. This note, which bore interest at 0.85% above 3-month LIBOR, had a rate of 2.54% at December 31, 2017	—		3,500
Floating rate debt due December 2021. This note, which bears interest at 0.81% above 3-month LIBOR, had a rate of 3.58% at December 31, 2018	1,625		—
Floating rate debt due December 2022. This note, which bears interest at 0.90% above 3-month LIBOR, had a rate of 3.67% at December 31, 2018	3,250		—
Floating rate debt due December 2023. This note, which bears interest at 0.99% above 3-month LIBOR, had a rate of 3.76% at December 31, 2018	1,625		—
Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at December 31, 2018 and at December 31, 2017	24		24
Subordinated debt due to MUFG Bank, Ltd:
Floating rate subordinated debt due December 2023. This note, which bore interest at 1.38% above 3-month LIBOR, had a rate of 3.07% at December 31, 2017	—		300
Junior subordinated debt payable to trusts:
Floating rate note due September 2036. This note had an interest rate of 4.49% at December 31, 2018 and 3.29% at December 31, 2017	36		36
Total debt issued by MUAH	7,355		6,997
Debt issued by MUB
Senior debt:
Fixed rate FHLB of San Francisco advances due between January 2019 and December 2023. These notes bear a combined weighted average rate of 2.66% at December 31, 2018 and 1.51% at December 31, 2017	9,100		1,500
Fixed rate 2.625% notes due September 2018	—		1,000
Fixed rate 2.25% notes due May 2019	498		497
Subordinated debt due to MUFG Bank, Ltd:
Floating rate subordinated debt due June 2023. This note, which bore interest at 1.20% above 3-month LIBOR, had a rate of 2.89% at December 31, 2017	—		750
Other	34		63
Total debt issued by MUB	9,632		3,810
Debt issued by other MUAH subsidiaries
Senior debt due to MUFG Bank, Ltd:
Various floating rate borrowings due between December 2020 and May 2021. These notes, which bear interest above 3-month LIBOR had a weighted average interest rate of 2.80% at December 31, 2018 and 1.78% at December 31, 2017	250		291
Various fixed rate borrowings due between February 2019 and May 2024 with a weighted average interest rate of 1.82% (between 0.14% and 2.44%) at December 31, 2018 and 2.12% (between 1.37% and 2.65%) at December 31, 2017	244		339
Subordinated debt due to Affiliate:
Floating rate borrowings due March 2019. These notes, which bear interest above 6-month LIBOR had an interest rate of 4.13% at December 31, 2018 and 2.95% (between 2.88% and 3.04%) at December 31, 2017	75		185

Non-recourse debt due to MUFG Bank, Ltd:
Various floating rate non-recourse borrowings due between February 2019 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted average interest rate of 4.09% (between 2.75% and 4.17%) at December 31, 2018 and 3.07% (between 1.49% and 5.58%) at December 31, 2017	53		79
Fixed rate non-recourse borrowings due between January 2019 and July 2023 which had an interest rate of 3.05% at December 31, 2018 and 3.27% at December 31, 2017	187		240
Other non-recourse debt:
Various floating rate non-recourse borrowings due between February 2019 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted average interest rate of 4.21% (between 4.17% and 4.48%) at December 31, 2018 and 2.88% (between 2.50% and 3.54%) at December 31, 2017	89		185
Fixed rate non-recourse borrowings due December 2026 which had an interest rate of 5.34% at December 31, 2018 and December 31, 2017	33		36
Total debt issued by other MUAH subsidiaries	931		1,355
Total long-term debt	$	17,918	$	12,162

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Fair Value Measurement and Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis

The following tables present financial assets and financial liabilities measured at fair value on a recurring basis at December 31, 2018 and 2017, by major category and by valuation hierarchy level.

	December 31, 2018
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment (1)			Fair Value
Assets
Trading account assets(2):
U.S. Treasury securities	$	—		$	2,998		$	—		$	—		$	2,998
U.S. government-sponsored agency securities	—			73			—			—			73
State and municipal securities	—			10			—			—			10
Commercial paper	—			51			—			—			51
Corporate bonds	—			1,367			—			—			1,367
Asset-backed securities	—			299			—			—			299
Mortgage-backed securities	—			5,785			—			—			5,785
Equities	127			—			—			—			127
Interest rate derivative contracts	9			522			—			(130		)	401
Commodity derivative contracts	—			25			—			(24		)	1
Foreign exchange derivative contracts	1			259			—			(170		)	90
Equity derivative contracts	9			—			13			(11		)	11
Total trading account assets	146			11,389			13			(335		)	11,213
Securities available for sale(3):
U.S. Treasury	—			3,429			—			—			3,429
Residential mortgage-backed securities:
U.S. government and government-sponsored agencies	—			8,007			—			—			8,007
Privately issued	—			864			—			—			864
Privately issued - commercial mortgage-backed securities	—			1,162			—			—			1,162
Collateralized loan obligations	—			1,474			—			—			1,474
Other	—			4			—			—			4
Other debt securities:
Direct bank purchase bonds	—			—			1,190			—			1,190
Other	—			43			141			—			184
Total securities available for sale	—			14,983			1,331			—			16,314
Other assets:
Mortgage servicing rights(2)	—			—			159			—			159
Loans held for sale(2)	—			—			117			—			117
Interest rate hedging contracts(3)	—			6			—			(3		)	3
Other derivative contracts(2)	—			26			1			(16		)	11
Equity securities(2)	9			—			—			—			9
Total other assets	9			32			277			(19		)	299
Total assets	$	155		$	26,404		$	1,621		$	(354	)	$	27,826
Percentage of total	—		%	95		%	6		%	(1		)%	100		%
Percentage of total Company assets	—		%	16		%	1		%	—		%	17		%
Liabilities
Trading account liabilities(2):
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	2,753		$	—		$	—		$	2,753
Commercial paper	—			10			—			—			10
Corporate bonds	—			717			—			—			717
Equities	70			—			—			—			70
Trading derivatives:
Interest rate derivative contracts	55			545			—			(262		)	338
Commodity derivative contracts	—			18			—			(4		)	14
Foreign exchange derivative contracts	—			168			—			(56		)	112
Equity derivative contracts	—			—			13			—			13
Total trading account liabilities	125			4,211			13			(322		)	4,027
Other liabilities:
FDIC clawback liability(2)	—			—			116			—			116
Other derivative contracts(2)	—			3			2			—			5
Total other liabilities	—			3			118			—			121
Total liabilities	$	125		$	4,214		$	131		$	(322	)	$	4,148
Percentage of total	3		%	102		%	3		%	(8		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	—		%	3		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

(2) Fair value through net income

(3) Fair value through other comprehensive income

	December 31, 2017
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment (1)			Fair Value
Assets
Trading account assets(2):
U.S. Treasury securities	$	—		$	1,926		$	—		$	—		$	1,926
U.S. government-sponsored agency securities	—			118			—			—			118
State and municipal securities	—			11			—			—			11
Commercial paper	—			7			—			—			7
Other sovereign government obligations	—			8			—			—			8
Corporate bonds	—			1,054			—			—			1,054
Asset-backed securities	—			199			—			—			199
Mortgage-backed securities	—			6,339			—			—			6,339
Equities	193			—			—			—			193
Interest rate derivative contracts	7			870			1			(353		)	525
Commodity derivative contracts	—			50			—			(49		)	1
Foreign exchange derivative contracts	—			249			1			(68		)	182
Equity derivative contracts	2			—			137			(135		)	4
Total trading account assets	202			10,831			139			(605		)	10,567
Securities available for sale(3):
U.S. Treasury	—			3,252			—			—			3,252
Residential mortgage-backed securities:
U.S government and government-sponsored agencies	—			9,208			—			—			9,208
Privately issued	—			694			—			—			694
Privately issued - commercial mortgage-backed securities	—			822			—			—			822
Collateralized loan obligations	—			1,905			—			—			1,905
Other	—			5			—			—			5
Other debt securities:
Direct bank purchase bonds	—			—			1,503			—			1,503
Other	—			68			96			—			164
Equity securities	10			—			—			—			10
Total securities available for sale	10			15,954			1,599			—			17,563
Other assets:
Mortgage servicing rights(2)	—			—			64			—			64
Interest rate hedging contracts(3)	—			2			—			—			2
Other derivative contracts(2)	—			2			1			(2		)	1
Total other assets	—			4			65			(2		)	67
Total assets	$	212		$	26,789		$	1,803		$	(607	)	$	28,197
Percentage of total	1		%	95		%	6		%	(2		)%	100		%
Percentage of total Company assets	—		%	17		%	1		%	—		%	18		%
Liabilities
Trading account liabilities(2):
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	2,709		$	—		$	—		$	2,709
Other sovereign government obligations	—			7			—			—			7
Corporate bonds	—			348			—			—			348
Equities	35			—			—			—			35
Trading derivatives:
Interest rate derivative contracts	3			643			—			(382		)	264
Commodity derivative contracts	—			33			—			(20		)	13
Foreign exchange derivative contracts	1			144			1			(66		)	80
Equity derivative contracts	7			—			137			—			144
Total trading account liabilities	46			3,884			138			(468		)	3,600
Other liabilities:
FDIC clawback liability(2)	—			—			113			—			113
Interest rate hedging contracts(3)	—			149			—			(149		)	—
Other derivative contracts(2)	—			3			6			(3		)	6
Total other liabilities	—			152			119			(152		)	119
Total liabilities	$	46		$	4,036		$	257		$	(620	)	$	3,719
Percentage of total	1		%	109		%	7		%	(17		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	—		%	3		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation

following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2018 and 2017. Level 3 securities available for sale at December 31, 2018 primarily consist of direct bank purchase bonds.

	For the Year Ended
	December 31, 2018
(Dollars in millions)	Trading Assets			Securities Available for Sale			Other Assets			Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	139		$	1,600		$	65		$	(138	)	$	(119	)
Total gains (losses) (realized/unrealized):
Included in income before taxes	(10		)	—			(8		)	9			1
Included in other comprehensive income	—			(9		)	—			—			—
Purchases/additions	—			126			220			—			—
Settlements	(116		)	(386		)	—			116			—
Transfers in (out) of level 3	—			—			—			—			—
Asset (liability) balance, end of period	$	13		$	1,331		$	277		$	(13	)	$	(118	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	(10	)	$	—		$	(8	)	$	9		$	1

	For the Year Ended
	December 31, 2017
(Dollars in millions)	Trading Assets			Securities Available for Sale			Other Assets			Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	168		$	1,638		$	24		$	(166	)	$	(121	)
Total gains (losses) (realized/unrealized):
Included in income before taxes	73			—			(3		)	(72		)	2
Included in other comprehensive income	—			(3		)	—			—			—
Purchases/additions	—			83			44			—			—
Settlements	(102		)	(118		)	—			100			—
Asset (liability) balance, end of period	$	139		$	1,600		$	65		$	(138	)	$	(119	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	73		$	—		$	(3	)	$	(72	)	$	2

The

Significant Unobservable Inputs Level 3 Assets and Liabilities

following table presents information about significant unobservable inputs related to the Company's significant Level 3 assets and liabilities at December 31, 2018.

	December 31, 2018
(Dollars in millions)	Level 3 Fair Value		Valuation Technique	Significant Unobservable Input(s)	Range of Inputs		Weighted Average
Securities available for sale:
Direct bank purchase bonds	$	1,190	Return on equity	Market-required return on capital	8.0 - 10.0	%	9.5	%
				Probability of default	0.0 - 25.0	%	0.3	%
				Loss severity	10.0 - 60.0	%	22.4	%

The

Financial Assets Measured at Fair Value on Nonrecurring Basis

assets measured at fair value on a nonrecurring basis during the years ended December 31, 2018 and 2017 that were still held on the consolidated balance sheet as of the respective periods ended, the following tables present the fair value of such assets by the level of valuation assumptions used to determine each fair value adjustment.

	December 31, 2018								For the Year Ended December 31, 2018
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans:
Impaired loans	$	151	$	—	$	—	$	151	$	(106	)
Other assets:
Loans held for sale	85		—		—		85		(29		)
Private equity investments	11		—		—		11		(2		)
Renewable energy investments	—		—		—		—		(2		)
Software	—		—		—		—		(4		)
Consolidated LIHC VIE	43		—		—		43		(8		)
Total	$	290	$	—	$	—	$	290	$	(151	)

	December 31, 2017								For the Year Ended December 31, 2017
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans:
Impaired loans	$	79	$	—	$	—	$	79	$	(34	)
Other assets:
Loans held for sale	—		—		—		—		(3		)
Renewable energy investments	—		—		—		—		2
Software	—		—		—		—		(22		)
Consolidated LIHC VIE	66		—		—		66		(21		)
Total	$	145	$	—	$	—	$	145	$	(78	)

Fai

Carrying Amount and Estimated Fair Value of Financial Instruments

tables below present the carrying amount and estimated fair value of certain financial instruments, all of which are accounted for at amortized cost, classified by valuation hierarchy level as of December 31, 2018 and 2017.

	December 31, 2018
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	8,350	$	8,350	$	8,350	$	—	$	—
Securities borrowed or purchased under resale agreements	22,368		22,368		—		22,368		—
Securities held to maturity	10,901		10,720		—		10,720		—
Loans held for investment (1)	84,805		84,729		—		—		84,729
Other assets	48		48		48		—		—
Liabilities
Time deposits	$	11,739	$	11,714	$	—	$	11,714	$	—
Securities loaned or sold under repurchase agreements	27,285		27,285		—		27,285		—
Commercial paper and other short-term borrowings	9,263		9,263		—		9,263		—
Long-term debt	17,918		17,961		—		17,961		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	120	$	242	$	—	$	—	$	242

(1) Excludes lease financing. The carrying amount is net of the allowance for loan losses.

	December 31, 2017
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	3,392	$	3,392	$	3,392	$	—	$	—
Securities borrowed or purchased under resale agreements	20,894		20,894		—		20,894		—
Securities held to maturity	9,885		9,799		—		9,799		—
Loans held for investment (1)	78,023		79,051		—		—		79,051
Liabilities
Deposits	$	84,787	$	84,743	$	—	$	84,743	$	—
Securities loaned or sold under repurchase agreements	26,437		26,437		—		26,437		—
Commercial paper and other short-term borrowings	7,066		7,066		—		7,066		—
Long-term debt	12,162		12,162		—		12,162		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	174	$	174	$	—	$	—	$	174

(1) Excludes lease financing. The carrying amount is net of the allowance for loan losses.

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Derivative Instruments and Other Financial Instruments Used For Hedging (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts, Balance Sheet Location and Fair Value Amounts of Derivative Instruments

The table below presents the notional amounts and fair value amounts of the Company's derivative instruments reported on the consolidated balance sheets, segregated between derivative instruments designated and qualifying as hedging instruments and derivative instruments not designated as hedging instruments as of December 31, 2018 and December 31, 2017. Asset and liability values are presented gross, excluding the impact of legally enforceable master netting and credit support annex agreements. The fair value of asset and liability derivatives designated and qualifying as hedging instruments and derivatives designated as other risk management are included in other assets and other liabilities, respectively. The fair value of asset and liability trading derivatives are included in trading account assets and trading account liabilities, respectively.

	December 31, 2018						December 31, 2017
			Fair Value						Fair Value
(Dollars in millions)	Notional Amount		Asset Derivatives		Liability Derivatives		Notional Amount		Asset Derivatives		Liability Derivatives
Cash flow hedges
Interest rate contracts	$	674	$	6	$	—	$	6,998	$	2	$	149
Fair value hedges
Interest rate contracts	—		—		—		500		—		—
Not designated as hedging instruments:
Trading
Interest rate contracts	189,478		531		600		132,214		878		646
Commodity contracts	336		25		18		1,244		50		33
Foreign exchange contracts	8,475		260		168		7,053		250		146
Equity contracts	300		22		13		1,496		139		144
Other contracts	127		—		—		4		—		—
Total trading	198,716		838		799		142,011		1,317		969
Other risk management	1,704		27		5		1,345		3		9
Total derivative instruments	$	201,094	$	871	$	804	$	150,854	$	1,322	$	1,127

Amount and Location of Gains and Losses for Derivatives Designated as Cash Flow Hedges

The following table presents the amount and location of the net gains and losses recorded in the Company's consolidated statements of income and changes in stockholders' equity for derivative instruments designated as cash flow hedges for the years ended December 31, 2018, 2017 and 2016:

	Gains (Losses) Recognized in OCI (Effective Portion)									Gains (Losses) Reclassified from AOCI into Income (Effective Portion)									Gains (Losses) Recognized in Income (Ineffective Portion)
	For the Years Ended December 31,										For the Years Ended December 31,									For the Years Ended December 31,
(Dollars in millions)	2018			2017			2016			Location	2018			2017		2016			Location	2018			2017		2016
										Interest income	$	(34	)	$	69	$	170
Interest rate contracts	$	(96	)	$	(35	)	$	(26	)	Interest expense	—			—		(3		)	Noninterest expense	$	(1	)	$	3	$	—
Total	$	(96	)	$	(35	)	$	(26	)		$	(34	)	$	69	$	167			$	(1	)	$	3	$	—

Schedule of Derivative Instruments Gain (Loss) on Fair Value Hedges

The following tables present gains (losses) on the Company's fair value hedges and hedged item for the years ended December 31, 2018, 2017 and 2016:

		For the Year Ended December 31, 2018
(Dollars in millions)		Derivative Instrument			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt		$	(2	)	$	2	$	—
	Total	$	(2	)	$	2	$	—

		For the Year Ended December 31, 2017
(Dollars in millions)		Derivative Instrument			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt		$	(4	)	$	3	$	(1	)
	Total	$	(4	)	$	3	$	(1	)

		For the Year Ended December 31, 2016
(Dollars in millions)		Derivative Instrument			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt		$	(2	)	$	2	$	—
	Total	$	(2	)	$	2	$	—

Gain or (Loss) Recognized in Income on Derivative Instruments

The following table presents the amount of the net gains and losses for derivative instruments classified as trading reported in the consolidated statements of income under the heading trading account activities for the years ended December 31, 2018, 2017 and 2016:

	Gains (Losses) Recognized in Income on Trading Derivatives
	For the Years Ended
(Dollars in millions)	December 31, 2018		December 31, 2017			December 31, 2016
Trading derivatives:
Interest rate contracts	$	95	$	(49	)	$	137
Equity contracts	36		12			40
Foreign exchange contracts	44		43			39
Commodity contracts	—		1			2
Total	$	175	$	7		$	218

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss

The following tables present the change in each of the components of accumulated other comprehensive income and the related tax effect of the change allocated to each component.

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Year Ended December 31, 2018
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	(96	)	$	25		$	(71	)
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	34			(9		)	25
Net change	(62		)	16			(46		)
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	(210		)	55			(155		)
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(8		)	2			(6		)
Amortization of net unrealized (gains) losses on held to maturity securities	28			(7		)	21
Net change	(190		)	50			(140		)
Foreign currency translation adjustment	(3		)	1			(2		)
Pension and other benefits:
Amortization of prior service credit(1)	(41		)	11			(30		)
Recognized net actuarial (gain) loss(1)	96			(25		)	71
Pension and other benefits arising during the year	(231		)	60			(171		)
Net change	(176		)	46			(130		)
Other	(1		)	—			(1		)
Net change in AOCI	$	(432	)	$	113		$	(319	)

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these Consolidated Financial Statements.

Change in Accumulated Other Comprehensive Loss Balances

The following table presents the change in accumulated other comprehensive loss balances.

(Dollars in millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Securities			Foreign Currency Translation Adjustment			Pension and Other Benefits Adjustment			Other			Accumulated Other Comprehensive Loss
Balance, December 31, 2015	$	38		$	(152	)	$	(24	)	$	(612	)	$	—		$	(750	)
Other comprehensive income before reclassifications	(16		)	(14		)	2			(12		)	—			(40		)
Amounts reclassified from AOCI	(99		)	(42		)	—			35			—			(106		)
Balance, December 31, 2016	$	(77	)	$	(208	)	$	(22	)	$	(589	)	$	—		$	(896	)
Other comprehensive income before reclassifications	(22		)	15			7			69			—			69
Amounts reclassified from AOCI	(44		)	1			—			26			—			(17		)
Subtotal before TCJA reclass	(143		)	(192		)	(15		)	(494		)	—			(844		)
TCJA reclass	(31		)	(41		)	(4		)	(106		)	—			(182		)
Balance, December 31, 2017	$	(174	)	$	(233	)	$	(19	)	$	(600	)	$	—		$	(1,026	)
Other comprehensive income before reclassifications	(71		)	(155		)	(2		)	(171		)	(1		)	(400		)
Amounts reclassified from AOCI	25			15			—			41			—			81
Transfer to additional paid-in capital	—			—			21			—			—			21
Balance, December 31, 2018	$	(220	)	$	(373	)	$	—		$	(730	)	$	(1	)	$	(1,324	)

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Management Stock Plans (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Bonus Plan

	Restricted Stock Units
	2018
	Number of Units		Weighted-Average Grant Date Fair Value
Units outstanding, beginning of year	27,838,414		$	5.86
Activity during the year:
Granted	14,667,730		5.89
Vested	(13,198,540	)	5.88
Forfeited	(864,534	)	5.97
Units outstanding, end of year	28,443,070		5.86

Rollforward of Restricted Stock Units Under Stock Bonus Plan

Summary of Compensation Costs, Corresponding Tax Benefit, and Unrecognized Compensation Costs

he following table is a summary of the Company's compensation costs, the corresponding tax benefit, and unrecognized compensation costs:

	Years Ended December 31,
(Dollars in millions)	2018		2017		2016
Compensation costs	$	77	$	66	$	67
Tax benefit	20		26		26
Unrecognized compensation costs	110		111		96

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Employee Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Fair Value of Assets in Pension Plan and Other Benefits Plan

The following table sets forth the fair value of the assets in the Company's Pension Plan and Other Benefits Plan as of December 31, 2018 and 2017.

	Pension Plan						Other Benefits Plan
	Years Ended December 31,						Years Ended December 31,
(Dollars in millions)	2018			2017			2018			2017
Change in plan assets:
Fair value of plan assets, beginning of year	$	3,854		$	3,254		$	288		$	260
Actual return on plan assets	(196		)	608			(18		)	44
Employer contributions	—			115			—			1
Plan participants' contributions	—			—			4			4
Benefits paid	(129		)	(123		)	(19		)	(21		)
Fair value of plan assets, end of year	$	3,529		$	3,854		$	255		$	288

Fair Value by Level Within Fair Value Hierarchy Assets by Major Asset Category for Pension Plan and Other Benefits Plan

The following table provides the fair value by level within the fair value hierarchy of the Company's period-end assets by major asset category for the Pension Plan and Other Benefits Plan. For information about the fair value hierarchy levels, refer to Note 11 to these consolidated financial statements. The Plans do not hold any equity or debt securities issued by the Company or any related parties.

	December 31, 2018
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Pension Plan Investments:
Cash and cash equivalents	$	—	$	25	$	—	$	25
U.S. government securities	—		382		—		382
Fixed and variable income securities	—		824		—		824
Equity securities	185		6		—		191
Mutual funds	620		—		—		620
Municipal bonds	—		37		—		37
Other	—		20		—		20
Total investments in the fair value hierarchy	$	805	$	1,294	$	—	$	2,099
Investments measured at net asset value (1)							1,420
Investments at fair value							3,519
Accrued dividends and interest receivable							12
Net pending trades							(2		)
Total plan assets							$	3,529

(1) In accordance with ASU No. 2015-07, investments in which fair value was measured based on net asset value per share (or its equivalent) using the practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to total plan assets.

	December 31, 2017
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Pension Plan Investments:
Cash and cash equivalents	$	—	$	26	$	—	$	26
U.S. government securities	—		195		—		195
Fixed and variable income securities	—		638		—		638
Equity securities	381		7		—		388
Mutual funds	830		—		—		830
Municipal bonds	—		43		—		43
Other	5		11		—		16
Total investments in the fair value hierarchy	$	1,216	$	920	$	—	$	2,136
Investments measured at net asset value (1)							1,704
Investments at fair value							3,840
Accrued dividends and interest receivable							8
Net pending trades							6
Total plan assets							$	3,854

	December 31, 2018
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Other Postretirement Benefits Plan Investments:
Cash and cash equivalents	$	—	$	1	$	—	$	1
U.S. government securities	—		37		—		37
Fixed and variable income securities	—		32		—		32
Equity securities	—		—		—		—
Mutual funds	54		—		—		54
Total investments in the fair value hierarchy	$	54	$	70	$	—	$	124
Investments measured at net asset value (1)							134
Investments at fair value							258
Net pending trades							(3		)
Total plan assets							$	255

(1) In accordance with ASU No. 2015-07, investments in which fair value was measured based on net asset value per share (or its equivalent) using the practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to total plan assets.

	December 31, 2017
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Other Postretirement Benefits Plan Investments:
Cash and cash equivalents	$	—	$	3	$	—	$	3
U.S. government securities	—		44		—		44
Fixed and variable income securities	—		29		—		29
Equity securities	—		1		—		1
Mutual funds	66		—		—		66
Total investments in the fair value hierarchy	$	66	$	77	$	—	$	143
Investments measured at net asset value (1)							157
Investments at fair value							300
Net pending trades							(12		)
Total plan assets							$	288

(1) In accordance with ASU No. 2015-07, investments in which fair value was measured based on net asset value per share (or its equivalent) using the practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to total plan assets.

Defined Benefit Plans Disclosures

The following tables as of December 31, 2018 and 2017 present the Company's Pension Plan and Other Benefits Plan investments in which fair value is measured using net asset value per share (or its equivalent) as a practical expedient.

	December 31, 2018
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Pension Plan Investments
Domestic equity funds	$	789	$	—	Daily	None	None
Real estate funds	415		—		Quarterly	Availability of fund's liquid assets and approval of the board of directors	45-90 days
Real estate funds	7		3		None	Hold until dissolution date	None
International equity funds	159		—		Monthly	None	15 days
Money market funds	50		—		Immediate	None	None
Total	$	1,420	$	3

	December 31, 2017
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Pension Plan Investments
Domestic equity funds	$	1,101	$	—	Daily	None	None
Real estate funds	343		—		Quarterly	Availability of fund's liquid assets and approval of the board of directors	45-90 days
Real estate funds	13		5		None	Hold until dissolution; approximately four to six years from original final closing date	None
International equity funds	228		—		Monthly	None	15 days
Money market funds	19		—		Immediate	None	None
Total	$	1,704	$	5

	December 31, 2018
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Other Postretirement Benefits Plan Investments
Domestic equity funds	$	87	$	—	Daily	None	None
Pooled separate account - variable life insurance policies	46		—		Quarterly	Proof of death for death claim redemptions	7 business days
Money market funds	1		—		Immediate	None	None
Total	$	134	$	—

	December 31, 2017
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Other Postretirement Benefits Plan Investments
Domestic equity funds	$	100	$	—	Daily	None	None
Pooled separate account - variable life insurance policies	52		—		Quarterly	Proof of death for death claim redemptions	7 business days
Money market funds	5		—		Immediate	None	None
Total	$	157	$	—

Changes in Fair Value of Assets Measured at Level 3

Table of Benefit Obligation Activity and Funded Status for Each of Plans

The following table sets forth the benefit obligation activity and the funded status for each of the Company's plans at December 31, 2018 and 2017. In addition, the table sets forth the over (under) funded status at December 31, 2018 and 2017. This pension benefits table does not include the obligations for Executive Supplemental Benefit Plans (ESBPs).

	Pension Benefits						Other Postretirement Benefits
	Years Ended December 31,						Years Ended December 31,
(Dollars in millions)	2018			2017			2018			2017
Accumulated benefit obligation	$	3,038		$	3,101
Change in benefit obligation
Benefit obligation, beginning of year	$	3,242		$	2,942		$	265		$	261
Service cost	80			71			4			6
Interest cost	100			100			8			8
Plan participants' contributions	—			—			4			4
Actuarial loss/(gain)	(246		)	252			(21		)	6
Effect of plan amendments	—			—			—			—
Medicare Part D subsidy	—			—			1			1
Benefits paid	(129		)	(123		)	(19		)	(21		)
Benefit obligation, end of year	3,047			3,242			242			265
Fair value of plan assets, end of year	3,529			3,854			255			288
Over (Under) funded status	$	482		$	612		$	13		$	23

Table of Amounts Recognized in Accumulated Other Comprehensive Loss for Pension, Including ESBPs, and Other Benefits

The following table illustrates the changes that were reflected in AOCI during 2018, 2017 and 2016. Pension benefits do not include the ESBPs.

	Pension Benefits						Other Postretirement Benefits
(Dollars in millions)	Net Actuarial (Gain) Loss			Prior Service Credit			Net Actuarial (Gain) Loss			Prior Service Credit
Amounts Recognized in Other Comprehensive Loss:
Balance, December 31, 2015	$	1,027		$	(121	)	$	82		$	(15	)
Arising during the year	133			(76		)	6			(47		)
Recognized in net income during the year	(75		)	18			(10		)	12
Balance, December 31, 2016	$	1,085		$	(179	)	$	78		$	(50	)
Arising during the year	(101		)	—			(19		)	—
Recognized in net income during the year	(79		)	27			(8		)	21
Balance, December 31, 2017	$	905		$	(152	)	$	51		$	(29	)
Arising during the year	218			—			18			—
Recognized in net income during the year	(87		)	26			(5		)	15
Balance, December 31, 2018	$	1,036		$	(126	)	$	64		$	(14	)

At December 31, 2018 and 2017, the following amounts were recognized in accumulated other comprehensive loss for pension, including ESBPs, and other benefits.

	December 31, 2018
	Pension Benefits									Other Postretirement Benefits
(Dollars in millions)	Gross			Tax			Net of Tax			Gross			Tax			Net of Tax
Net actuarial loss	$	1,036		$	273		$	763		$	64		$	18		$	46
Prior service credit	(126		)	(33		)	(93		)	(14		)	(4		)	(10		)
Pension and other postretirement benefits	910			240			670			50			14			36
Executive Supplemental Benefits Plans
Net actuarial loss	32			8			24			—			—			—
Prior service credit	—			—			—			—			—			—
Executive supplemental benefits plans adjustment	32			8			24			—			—			—
Pension and other postretirement benefits, as adjusted	$	942		$	248		$	694		$	50		$	14		$	36

	December 31, 2017
	Pension Benefits									Other Postretirement Benefits
(Dollars in millions)	Gross			Tax			Net of Tax			Gross			Tax			Net of Tax
Net actuarial loss	$	905		$	238		$	667		$	51		$	14		$	37
Prior service credit	(152		)	(40		)	(112		)	(29		)	(8		)	(21		)
Pension and other postretirement benefits	753			198			555			22			6			16
Executive Supplemental Benefits Plans
Net actuarial loss	40			11			29			—			—			—
Prior service credit	—			—			—			—			—			—
Executive supplemental benefits plans adjustment	40			11			29			—			—			—
Pension and other postretirement benefits, as adjusted	$	793		$	209		$	584		$	22		$	6		$	16

Estimated Future Benefit Payments and Subsidies

The following pension and postretirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next 10 years. This table does not include the ESBPs.

(Dollars in millions)	Pension Benefits		Postretirement Benefits
Years ending December 31,
2019	$	140	$	17
2020	147		17
2021	153		18
2022	160		18
2023	166		18
Years 2024 - 2028	914		82

Summary of Weighted Average Assumptions Used in Computing Present Value of Benefit Obligations and Net Periodic Benefit Cost

The following tables summarize the weighted average assumptions used in computing the present value of the benefit obligations and the net periodic benefit cost.

	Pension Benefits				Other Postretirement Benefits
	Years Ended December 31,				Years Ended December 31,
	2018		2017		2018		2017
Discount rate in determining net periodic benefit cost
For service cost	3.26	%	3.79	%	3.49	%	3.97	%
For interest cost	3.16		3.42		3.02		3.19
Discount rate in determining benefit obligations at year end	4.12		3.48		4.01		3.37
Rate of increase in future compensation levels for determining net periodic benefit cost	4.70		4.70		n/a		n/a
Rate of increase in future compensation levels for determining benefit obligations at year end	5.10		4.70		n/a		n/a
Expected return on plan assets	7.50		7.50		7.50		7.50
Cash balance crediting rate for determining net periodic benefit cost	2.74		3.06		n/a		n/a
Cash balance crediting rate for determining benefit obligations at year end	3.02		2.74		n/a		n/a

Components of Net Periodic Benefit Cost

	Pension Benefits									Other Postretirement Benefits									ESBPs
	Years Ended December 31,									Years Ended December 31,									Years Ended December 31,
(Dollars in millions)	2018			2017			2016			2018			2017			2016			2018		2017		2016
Components of net periodic benefit cost:
Service cost	$	80		$	71		$	91		$	4		$	6		$	8		$	—	$	—	$	2
Interest cost	100			100			103			8			8			9			3		3		2
Expected return on plan assets	(268		)	(254		)	(235		)	(21		)	(19		)	(19		)	—		—		—
Amortization of prior service credit	(26		)	(27		)	(18		)	(15		)	(21		)	(12		)	—		—		—
Recognized net actuarial loss	87			79			75			5			8			10			3		4		3
Curtailment gain	—			—			—			—			—			—			—		—		(2		)
Total net periodic benefit cost	$	(27	)	$	(31	)	$	16		$	(19	)	$	(18	)	$	(4	)	$	6	$	7	$	5

Summary of Amounts Forecasted to be Recognized, Net Periodic Benefit Costs

Schedule of Assumed Weighted-Average Healthcare Cost Trend Rates

The Company's assumed weighted-average healthcare cost trend rates are as follows.

	Years Ended December 31,
	2018		2017		2016
Healthcare cost trend rate assumed for next year	4.44	%	4.44	%	4.64	%
Rate to which cost trend rate is assumed to decline (the ultimate trend rate)	3.94	%	3.94	%	3.96	%
Year the rate reaches the ultimate trend rate	2027		2026		2026

Schedule of Effect of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rates

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Other Noninterest Income and Noninterest Expense (Tables)

12 Months Ended

Dec. 31, 2018

Other Income and Expenses [Abstract]

Summary of Other Noninterest Income and Expense

The detail of other noninterest income is as follows.

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Gain (loss) on sales	$	16		$	26		$	79
Fund administration fees	100			46			22
Other fee income	100			69			59
Losses on renewable energy investments	(235		)	(58		)	(37		)
Other	134			157			136
Total other noninterest income	$	115		$	240		$	259

The detail of other noninterest expense is as follows.

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Fees to affiliates	$	115		$	105		$	100
Expenses of the LIHC consolidated VIEs	24			43			68
Net periodic pension cost, excluding service cost	(124		)	(119		)	(84		)
Other	394			360			311
Total other noninterest expense	$	409		$	389		$	395

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of effective tax rate

The following table is an analysis of the effective tax rate:

	Years Ended December 31,
(Dollars in millions)	2018		2017		2016
Federal income tax rate	21	%	35	%	35	%
Net tax effects of:
State income taxes, net of federal income tax benefit	7		5		6
Tax-exempt interest income	(1	)	(1	)	(1	)
Losses from LIHC investments	(2	)	(3	)	(3	)
Amortization of LIHC investments	12		14		10
Tax credits	(25	)	(21	)	(18	)
Effects of US tax law change	(2	)	(8	)	—
State Tax Refunds	(5	)	—		—
Other	—		1		2
Effective tax rate	5	%	22	%	31	%

Components of Income Tax Expense

The components of income tax expense were as follows:

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Current income tax expense:
Federal	$	195		$	257		$	228
State	89			21			105
Foreign	10			(4		)	7
Total current expense	294			274			340
Deferred income tax expense (benefit):
Federal	(173		)	(49		)	58
State	(64		)	52			24
Foreign	(5		)	22			(3		)
Total deferred expense	(242		)	25			79
Total income tax expense	$	52		$	299		$	419

Schedule of components of the Company's net deferred tax balances

The components of the Company's net deferred tax balances as of December 31, 2018 and 2017 were as follows:

	December 31,
(Dollars in millions)	2018		2017
Deferred tax assets:
Tax credits and net operating loss carryforwards	$	448	$	310
Allowance for credit losses	251		254
Accrued expense, net	159		178
Unrealized losses on pension and postretirement benefits	260		214
Unrealized net losses on securities available for sale	132		82
Fair value adjustments for valuation of FDIC covered assets	53		61
Unrealized gains/losses on cash flow hedges	78		62
Other	—		—
Total deferred tax assets	1,381		1,161
Deferred tax liabilities:
Leasing and renewable energy	619		769
Intangible assets	59		55
Pension liabilities	365		358
Other	10		7
Total deferred tax liabilities	1,053		1,189
Net deferred tax asset (liability)	$	328	$	(28	)

Schedule of changes in unrecognized tax positions

The following table reflects the changes in gross unrecognized tax benefits:

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Balance, beginning of year	$	56		$	11		$	8
Gross increases as a result of tax positions taken during prior periods	72			45			—
Gross decreases as a result of tax positions taken during prior periods	—			—			—
Gross increases as a result of tax positions taken during current period	—			2			3
Gross decrease as a result of closed audit years or settlements	(1		)	(2		)	—
Balance, end of year	$	127		$	56		$	11

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Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2018

Regulatory Capital Requirements [Abstract]

Summary of Capital Amounts and Ratios

The Company's and the Bank's capital amounts and ratios are presented in the following tables.

	U.S. Basel III					Minimum Capital Requirement with Capital Conservation Buffer (1)
(Dollars in millions)	Amount		Ratio			Amount		Ratio
Capital Ratios for the Company:
As of December 31, 2018:
Common equity tier 1 capital (to risk-weighted assets)	$	14,256	13.96	%	≥	$	6,508	6.375	%
Tier 1 capital (to risk-weighted assets)	14,256		13.96		≥	8,039		7.875
Total capital (to risk-weighted assets)	14,904		14.60		≥	10,081		9.875
Tier 1 leverage(2)	14,256		8.77		≥	6,502		4.000
As of December 31, 2017:
Common equity tier 1 capital (to risk-weighted assets)	$	15,708	16.31	%	≥	$	5,539	5.750	%
Tier 1 capital (to risk-weighted assets)	15,708		16.31		≥	6,984		7.250
Total capital (to risk-weighted assets)	17,106		17.76		≥	8,910		9.250
Tier 1 leverage(2)	15,708		10.06		≥	6,245		4.000

(1) Beginning January 1, 2018, the minimum capital requirement includes a capital conservation buffer of 1.875%.

(2) Tier 1 capital divided by quarterly average assets (excluding certain disallowed assets, primarily goodwill and other intangibles).

	U.S. Basel III					Minimum Capital Requirement with Capital Conservation Buffer (1)					To Be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in millions)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Capital Ratios for the Bank:
As of December 31, 2018 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	13,316	14.45	%	≥	$	5,876	6.375	%	≥	$	5,991	6.5	%
Tier 1 capital (to risk-weighted assets)	13,316		14.45		≥	7,258		7.875		≥	7,374		8.0
Total capital (to risk-weighted assets)	13,905		15.09		≥	9,102		9.875		≥	9,217		10.0
Tier 1 leverage(2)	13,316		10.61		≥	5,018		4.000		≥	6,273		5.0
As of December 31, 2017 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	14,028	16.17	%	≥	$	4,987	5.750	%	≥	$	5,637	6.5	%
Tier 1 capital (to risk-weighted assets)	14,028		16.17		≥	6,288		7.250		≥	6,938		8.0
Total capital (to risk-weighted assets)	15,335		17.68		≥	8,023		9.250		≥	8,673		10.0
Tier 1 leverage(2)	14,028		11.78		≥	4,762		4.000		≥	5,953		5.0

(1) Beginning January 1, 2018, the minimum capital requirement includes a capital conservation buffer of 1.875%.

(2) Tier 1 capital divided by quarterly average assets (excluding certain disallowed assets, primarily goodwill and other intangibles).

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Commitments, Contingencies and Guarantees (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Summary of Commitments

The following table summarizes the Company's commitments:

(Dollars in millions)	December 31, 2018
Commitments to extend credit	$	33,487
Issued standby and commercial letters of credit	4,852
Commitments to enter into forward-starting resale agreements	877
Other commitments	493

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Business Segments (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of reportable business segments

(Dollars in millions)	Regional Bank		U.S. Wholesale & Investment Banking		Transaction Banking			MUSA		Other			MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,195	$	415	$	264		$	200	$	233		$	3,307
Noninterest income	451		373		59			300		994			2,177
Total revenue	2,646		788		323			500		1,227			5,484
Noninterest expense	2,058		418		255			443		1,103			4,277
(Reversal of) provision for credit losses	65		42		(3		)	—		2			106
Income (loss) before income taxes and including noncontrolling interests	523		328		71			57		122			1,101
Income tax expense (benefit) (1)	105		122		19			17		(211		)	52
Net income (loss) including noncontrolling interest	418		206		52			40		333			1,049
Deduct: net loss from noncontrolling interests	—		—		—			—		24			24
Net income (loss) attributable to MUAH	$	418	$	206	$	52		$	40	$	357		$	1,073
Total assets, end of period	$	73,554	$	20,933	$	941		$	33,844	$	38,828		$	168,100

(1) Income tax expense (benefit) includes certain management accounting classification adjustments.

As of and for the Twelve Months Ended December 31, 2017:

(Dollars in millions)	Regional Bank		U.S. Wholesale & Investment Banking			Transaction Banking		MUSA		Other			MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,051	$	417		$	247	$	234	$	255		$	3,204
Noninterest income	442		370			64		351		783			2,010
Total revenue	2,493		787			311		585		1,038			5,214
Noninterest expense	1,961		403			229		445		946			3,984
(Reversal of) provision for credit losses	22		(104		)	1		—		(22		)	(103		)
Income (loss) before income taxes and including noncontrolling interests	510		488			81		140		114			1,333
Income tax expense (benefit) (1)	178		(197		)	33		59		226			299
Net income (loss) including noncontrolling interest	332		685			48		81		(112		)	1,034
Deduct: net loss from noncontrolling interests	—		—			—		—		43			43
Net income (loss) attributable to MUAH	$	332	$	685		$	48	$	81	$	(69	)	$	1,077
Total assets, end of period	$	67,804	$	20,461		$	1,063	$	32,062	$	33,160		$	154,550

(1) Income tax expense (benefit) includes certain management accounting classification adjustments.

As of and for the Twelve Months Ended December 31, 2016:

(Dollars in millions)	Regional Bank		U.S. Wholesale & Investment Banking		Transaction Banking		MUSA		Other		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	1,952	$	541	$	202	$	164	$	194	$	3,053
Noninterest income	449		368		72		302		1,034		2,225
Total revenue	2,401		909		274		466		1,228		5,278
Noninterest expense	1,843		404		190		362		983		3,782
(Reversal of) provision for credit losses	30		98		—		—		27		155
Income (loss) before income taxes and including noncontrolling interests	528		407		84		104		218		1,341
Income tax expense (benefit) (1)	152		91		39		41		96		419
Net income (loss) including noncontrolling interest	376		316		45		63		122		922
Deduct: net loss from noncontrolling interests	—		—		—		—		68		68
Net income (loss) attributable to MUAH	$	376	$	316	$	45	$	63	$	190	$	990
Total assets, end of period	$	63,169	$	23,805	$	1,205	$	29,252	$	30,713	$	148,144

(1) Income tax expense (benefit) includes certain management accounting classification adjustments.

XML

Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company) (Tables) - MUFG Americas Holdings Corporation

12 Months Ended

Dec. 31, 2018

Condensed Balance Sheets

Condensed Balance Sheets

	December 31,
(Dollars in millions)	2018		2017
Assets
Cash and cash equivalents	$	739	$	1,341
Investments in and advances to subsidiaries
Bank subsidiary	18,493		19,598
Nonbank subsidiaries	4,618		4,314
Other assets	76		69
Total assets	$	23,926	$	25,322
Liabilities and Stockholders' Equity
Long-term debt	$	7,355	$	6,997
Other liabilities	63		70
Total liabilities	7,418		7,067
Stockholders' equity	16,508		18,255
Total liabilities and stockholders' equity	$	23,926	$	25,322

Condensed Statements of Income

Condensed Statements of Income

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Income:
Dividends from subsidiaries:
Bank subsidiary	$	1,700		$	320		$	—
Nonbank subsidiaries	95			51			—
Interest income on advances to subsidiaries and deposits in bank	137			79			22
Rental Income	15			15			16
Total income	1,947			465			38
Expense:
Interest expense	194			144			75
Other expense	17			14			19
Total expense	211			158			94
Income (loss) before income taxes and equity in undistributed net income of subsidiaries	1,736			307			(56		)
Income tax benefit	(13		)	(20		)	(22		)
Income (loss) before equity in undistributed net income of subsidiaries	1,749			327			(34		)
Equity in undistributed net income of subsidiaries less dividends received:
Bank subsidiary	(697		)	366			900
Nonbank subsidiaries	21			384			124
Net Income	$	1,073		$	1,077		$	990

Condensed Statements of Cash Flows

Condensed Statements of Cash Flows

	Years Ended December 31,
(Dollars in millions)	2018			2017			2016
Cash Flows from Operating Activities:
Net income	$	1,073		$	1,077		$	990
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed net income of subsidiaries less dividends received	676			(750		)	(1,024		)
Other, net	(9		)	2			—
Net cash provided by (used in) operating activities	1,740			329			(34		)
Cash Flows from Investing Activities:
Investments in and advances to subsidiaries	(2,612		)	(5,050		)	(1,197		)
Repayment of investments in and advances to subsidiaries	2,411			1,495			1,820
Net cash used in investing activities	(201		)	(3,555		)	623
Cash Flows from Financing Activities:
Proceeds from advances from subsidiaries	—			200			—
Repayment of advances from subsidiaries	—			(200		)	—
Proceeds from issuance of long-term debt	6,500			3,525			545
Repayment of long-term debt	(6,145		)	—			—
Dividends paid	—			(500		)	—
Share repurchase	(2,496		)	—			—
Other, net	—			—			1
Net cash provided by (used in) financing activities	(2,141		)	3,025			546
Net increase (decrease) in cash and cash equivalents	(602		)	(201		)	1,135
Cash and cash equivalents at beginning of year	1,341			1,542			407
Cash and cash equivalents at end of year	$	739		$	1,341		$	1,542

XML

Summary of Significant Accounting Policies and Nature of Operations (Details)	12 Months Ended
	Dec. 31, 2018 type_of_lease shares	Dec. 31, 2017 shares	Jul. 01, 2017 shares	Jul. 01, 2016 shares
Significant Accounting Policies
Common stock, share issued (in shares) | shares	131,935,124	147,589,713	3,267,433	7,991,449
Loans placed on nonaccrual status when past due term (days)	90 days
Interest accrual period (days)	120 days
Consecutive payment period for accrual status	6 months
Number of types of leases offered to customers | type_of_lease	2
Minimum
Significant Accounting Policies
Intangible assets amortized period	3 years
Maximum
Significant Accounting Policies
Intangible assets amortized period	40 years

XML

- Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Salaries and employee benefits	$ 2,616	$ 2,495	$ 2,439
Other	$ 409	389	395
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Salaries and employee benefits		2,376	2,355
Other		508	479
Accounting Standards Update 2017-07 | Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Salaries and employee benefits		119	84
Other		$ (119)	$ (84)

XML

Correction of Prior Period Amounts (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other assets	$ 9,620	$ 9,410
Other liabilities	2,048	2,143
Retained earnings	9,524	10,936
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	16,580	18,355	$ 17,386	$ 16,593
Noncontrolling interests	72	100
Noncontrolling Interests
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	72	100	153	215
Retained Earnings
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 9,524	$ 10,936	$ 10,101	$ 9,116

XML

Securities - Schedule of Available For Sale Securities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Securities available for sale
Amortized Cost	$ 16,680	$ 17,794
Gross Unrealized Gains	41	58
Gross Unrealized Losses	407	289
Fair Value	16,314	17,563
U.S. Treasury
Securities available for sale
Amortized Cost	3,572	3,370
Gross Unrealized Gains	1	0
Gross Unrealized Losses	144	118
Fair Value	3,429	3,252
U.S. government agency and government-sponsored agencies
Securities available for sale
Amortized Cost	8,168	9,338
Gross Unrealized Gains	7	2
Gross Unrealized Losses	168	132
Fair Value	8,007	9,208
Privately issued
Securities available for sale
Amortized Cost	887	695
Gross Unrealized Gains	0	3
Gross Unrealized Losses	23	4
Fair Value	864	694
Privately issued - commercial mortgage-backed securities
Securities available for sale
Amortized Cost	1,179	823
Gross Unrealized Gains	3	4
Gross Unrealized Losses	20	5
Fair Value	1,162	822
Collateralized loan obligations
Securities available for sale
Amortized Cost	1,492	1,895
Gross Unrealized Gains	0	10
Gross Unrealized Losses	18	0
Fair Value	1,474	1,905
Other
Securities available for sale
Amortized Cost	4	5
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	4	5
Asset Liability Management securities
Securities available for sale
Amortized Cost	15,302	16,126
Gross Unrealized Gains	11	19
Gross Unrealized Losses	373	259
Fair Value	14,940	15,886
Direct bank purchase bonds
Securities available for sale
Amortized Cost	1,190	1,495
Gross Unrealized Gains	30	38
Gross Unrealized Losses	30	30
Fair Value	1,190	1,503
Other
Securities available for sale
Amortized Cost	188	163
Gross Unrealized Gains	0	1
Gross Unrealized Losses	4	0
Fair Value	$ 184	164
Equity securities
Securities available for sale
Amortized Cost		10
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		$ 10

XML

Securities - Schedule of Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Securities available for sale
Less than 12 months, Fair Value	$ 4,677	$ 5,561
Less than 12 months, Unrealized Losses	50	44
12 months or more, Fair Value	9,295	7,586
12 months or more, Unrealized Losses	357	245
Fair Value, Total	13,972	13,147
Unrealized Losses, Total	407	289
U.S. Treasury
Securities available for sale
Less than 12 months, Fair Value	147	1,074
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1	14
12 months or more, Fair Value	3,182	2,128
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	143	104
Fair Value, Total	3,329	3,202
Unrealized Losses, Total	144	118
U.S. government agency and government-sponsored agencies
Securities available for sale
Less than 12 months, Fair Value	1,941	3,606
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	8	22
12 months or more, Fair Value	4,797	4,651
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	160	110
Fair Value, Total	6,738	8,257
Unrealized Losses, Total	168	132
Privately issued
Securities available for sale
Less than 12 months, Fair Value	398	275
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	7	1
12 months or more, Fair Value	383	164
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	16	3
Fair Value, Total	781	439
Unrealized Losses, Total	23	4
Privately issued - commercial mortgage-backed securities
Securities available for sale
Less than 12 months, Fair Value	364	447
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	6	3
12 months or more, Fair Value	512	80
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	14	2
Fair Value, Total	876	527
Unrealized Losses, Total	20	5
Collateralized loan obligations
Securities available for sale
Less than 12 months, Fair Value	1,428	12
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	18	0
12 months or more, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Fair Value, Total	1,428	12
Unrealized Losses, Total	18	0
Asset Liability Management securities
Securities available for sale
Less than 12 months, Fair Value	4,278	5,414
Less than 12 months, Unrealized Losses	40	40
12 months or more, Fair Value	8,874	7,023
12 months or more, Unrealized Losses	333	219
Fair Value, Total	13,152	12,437
Unrealized Losses, Total	373	259
Direct bank purchase bonds
Securities available for sale
Less than 12 months, Fair Value	221	58
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	6	4
12 months or more, Fair Value	417	563
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	24	26
Fair Value, Total	638	621
Unrealized Losses, Total	30	30
Other
Securities available for sale
Less than 12 months, Fair Value	178	79
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	4	0
12 months or more, Fair Value	4	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Fair Value, Total	182	79
Unrealized Losses, Total	$ 4	0
Equity securities
Securities available for sale
Less than 12 months, Fair Value		10
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		0
12 months or more, Fair Value		0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		0
Fair Value, Total		10
Unrealized Losses, Total		$ 0

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Securities - Fair Value of Debt Securities AFS Contractual Maturity (Details) $ in Millions	Dec. 31, 2018 USD ($)
Securities available for sale
One Year or Less	$ 30
Over One Year Through Five Years	2,112
Over Five Years Through Ten Years	4,458
Over Ten Years	9,714
Total Fair Value	16,314
U.S. Treasury
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	1,284
Over Five Years Through Ten Years	2,145
Over Ten Years	0
Total Fair Value	3,429
U.S. government agency and government-sponsored agencies
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	212
Over Five Years Through Ten Years	1,306
Over Ten Years	6,489
Total Fair Value	8,007
Privately issued
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	0
Over Five Years Through Ten Years	0
Over Ten Years	864
Total Fair Value	864
Privately issued - commercial mortgage-backed securities
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	25
Over Five Years Through Ten Years	43
Over Ten Years	1,094
Total Fair Value	1,162
Collateralized loan obligations
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	1
Over Five Years Through Ten Years	352
Over Ten Years	1,121
Total Fair Value	1,474
Other
Securities available for sale
One Year or Less	1
Over One Year Through Five Years	3
Over Five Years Through Ten Years	0
Over Ten Years	0
Total Fair Value	4
Asset Liability Management securities
Securities available for sale
One Year or Less	1
Over One Year Through Five Years	1,525
Over Five Years Through Ten Years	3,846
Over Ten Years	9,568
Total Fair Value	14,940
Direct bank purchase bonds
Securities available for sale
One Year or Less	26
Over One Year Through Five Years	424
Over Five Years Through Ten Years	612
Over Ten Years	128
Total Fair Value	1,190
Other
Securities available for sale
One Year or Less	3
Over One Year Through Five Years	163
Over Five Years Through Ten Years	0
Over Ten Years	18
Total Fair Value	$ 184

XML

Securities - Proceeds from Sales of Securities AFS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Gross realized gains	$ 8	$ 17	$ 69
Gross realized losses	$ 0	$ 0	$ 0

XML

Securities - Unrealized Gains/Loss in OCI (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Securities held to maturity
Amortized Cost	$ 11,038	$ 9,966
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI)	1	2
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI)	138	83
Total securities held to maturity, carrying amount	10,901	9,885
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	30	54
Total, Unrealized Losses, Not Recognized in OCI	211	140
Total securities held to maturity, Fair Value	10,720	9,799
U.S. Treasury
Securities held to maturity
Amortized Cost	528	525
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI)	0	0
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI)	0	0
Total securities held to maturity, carrying amount	528	525
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	1	3
Total, Unrealized Losses, Not Recognized in OCI	2	1
Total securities held to maturity, Fair Value	527	527
U.S. government-sponsored agencies
Securities held to maturity
Amortized Cost	722
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI)	0
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI)	0	0
Total securities held to maturity, carrying amount	722
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	1
Total, Unrealized Losses, Not Recognized in OCI	0	1
Total securities held to maturity, Fair Value	723
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
Securities held to maturity
Amortized Cost	8,302	7,870
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI)	1	2
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI)	96	31
Total securities held to maturity, carrying amount	8,207	7,841
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	11	15
Total, Unrealized Losses, Not Recognized in OCI	191	130
Total securities held to maturity, Fair Value	8,027	7,726
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
Securities held to maturity
Amortized Cost	1,486	1,571
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI)	0	0
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI)	42	52
Total securities held to maturity, carrying amount	1,444	1,519
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	17	36
Total, Unrealized Losses, Not Recognized in OCI	18	9
Total securities held to maturity, Fair Value	$ 1,443	$ 1,546

XML

Securities - Held to Maturity Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Securities held to maturity
Less than 12 months, Fair Value	$ 697	$ 3,162
Less than 12 months, Unrealized Losses, Recognized in OCI	0	0
Less than 12 months, Unrealized Losses, Not Recognized in OCI	11	32
12 months or more, Fair Value	9,083	5,496
12 months or more, Unrealized Losses, Recognized in OCI	138	83
12 months or more, Unrealized Losses, Not Recognized in OCI	200	108
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	9,780	8,658
Total, Unrealized Losses, Recognized in OCI	138	83
Total, Unrealized Losses, Not Recognized in OCI	211	140
U.S. Treasury
Securities held to maturity
Less than 12 months, Fair Value	0
Less than 12 months, Unrealized Losses, Recognized in OCI	0
Less than 12 months, Unrealized Losses, Not Recognized in OCI	0
12 months or more, Fair Value	496
12 months or more, Unrealized Losses, Recognized in OCI	0
12 months or more, Unrealized Losses, Not Recognized in OCI	2
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	496
Total, Unrealized Losses, Recognized in OCI	0	0
Total, Unrealized Losses, Not Recognized in OCI	2	1
U.S. government-sponsored agencies
Securities held to maturity
Less than 12 months, Fair Value		494
Less than 12 months, Unrealized Losses, Recognized in OCI		0
Less than 12 months, Unrealized Losses, Not Recognized in OCI		1
12 months or more, Fair Value		0
12 months or more, Unrealized Losses, Recognized in OCI		0
12 months or more, Unrealized Losses, Not Recognized in OCI		0
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value		494
Total, Unrealized Losses, Recognized in OCI	0	0
Total, Unrealized Losses, Not Recognized in OCI	0	1
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
Securities held to maturity
Less than 12 months, Fair Value	668	2,649
Less than 12 months, Unrealized Losses, Recognized in OCI	0	0
Less than 12 months, Unrealized Losses, Not Recognized in OCI	11	31
12 months or more, Fair Value	7,191	4,000
12 months or more, Unrealized Losses, Recognized in OCI	96	31
12 months or more, Unrealized Losses, Not Recognized in OCI	180	99
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	7,859	6,649
Total, Unrealized Losses, Recognized in OCI	96	31
Total, Unrealized Losses, Not Recognized in OCI	191	130
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
Securities held to maturity
Less than 12 months, Fair Value	29	19
Less than 12 months, Unrealized Losses, Recognized in OCI	0	0
Less than 12 months, Unrealized Losses, Not Recognized in OCI	0	0
12 months or more, Fair Value	1,396	1,496
12 months or more, Unrealized Losses, Recognized in OCI	42	52
12 months or more, Unrealized Losses, Not Recognized in OCI	18	9
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	1,425	1,515
Total, Unrealized Losses, Recognized in OCI	42	52
Total, Unrealized Losses, Not Recognized in OCI	$ 18	$ 9

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Securities - Carrying Amount and Fair Value Securities Held to Maturity (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Securities held to maturity
Over One Year Through Five Years, Carrying Amount	$ 796
Over Five Years Through Ten Years, Carrying Amount	1,730
Over Ten Years, Carrying Amount	7,810
Total securities held to maturity, carrying amount	10,901	$ 9,885
Over One Year Through Five Years, Fair Value	806
Over Five Years Through Ten Years, Fair Value	1,709
Over Ten Years, Fair Value	7,641
Total securities held to maturity, Fair Value	10,720	9,799
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount	565
Held-to-maturity Securities, Debt Maturities, Next Twelve Months, Fair Value	564
U.S. Treasury
Securities held to maturity
Over One Year Through Five Years, Carrying Amount	9
Over Five Years Through Ten Years, Carrying Amount	0
Over Ten Years, Carrying Amount	0
Total securities held to maturity, carrying amount	528	525
Over One Year Through Five Years, Fair Value	9
Over Five Years Through Ten Years, Fair Value	0
Over Ten Years, Fair Value	0
Total securities held to maturity, Fair Value	527	527
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount	519
Held-to-maturity Securities, Debt Maturities, Next Twelve Months, Fair Value	518
US Government Agencies Debt Securities [Member]
Securities held to maturity
Over One Year Through Five Years, Carrying Amount	0
Over Five Years Through Ten Years, Carrying Amount	722
Over Ten Years, Carrying Amount	0
Total securities held to maturity, carrying amount	722
Over One Year Through Five Years, Fair Value	0
Over Five Years Through Ten Years, Fair Value	723
Over Ten Years, Fair Value	0
Total securities held to maturity, Fair Value	723
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount	0
Held-to-maturity Securities, Debt Maturities, Next Twelve Months, Fair Value	0
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
Securities held to maturity
Over One Year Through Five Years, Carrying Amount	0
Over Five Years Through Ten Years, Carrying Amount	1,008
Over Ten Years, Carrying Amount	7,199
Total securities held to maturity, carrying amount	8,207	7,841
Over One Year Through Five Years, Fair Value	0
Over Five Years Through Ten Years, Fair Value	986
Over Ten Years, Fair Value	7,041
Total securities held to maturity, Fair Value	8,027	$ 7,726
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount	0
Held-to-maturity Securities, Debt Maturities, Next Twelve Months, Fair Value	0
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
Securities held to maturity
Over One Year Through Five Years, Carrying Amount	787
Over Five Years Through Ten Years, Carrying Amount	0
Over Ten Years, Carrying Amount	611
Total securities held to maturity, carrying amount	1,444
Over One Year Through Five Years, Fair Value	797
Over Five Years Through Ten Years, Fair Value	0
Over Ten Years, Fair Value	600
Total securities held to maturity, Fair Value	1,443
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount	46
Held-to-maturity Securities, Debt Maturities, Next Twelve Months, Fair Value	$ 46

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Securities - Securities Pledged as Collateral (Details) - USD ($) $ in Billions	Dec. 31, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Amount pledged	$ 11.9	$ 12.3
Permitted to be sold or repledged	1.3	1.2
Received as collateral	33.1	31.8
Collateral received permitted to be sold or repledged	33.1	31.8
Sold or repledged	$ 32.1	$ 30.4

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Loans and Allowance for Loan Losses - Outstanding Balance of Loans (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	$ 86,507	$ 80,014
Total loans held for investment	(86,507)	(80,014)
Allowance for loan losses	(474)	(476)	$ (639)	$ (723)
Loans Held for Investment, Net	86,033	79,538
Unamortized discounts and premiums and deferred fees and costs	340	301
Commercial
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	43,135	40,909
Commercial | Commercial and industrial
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	24,919	23,281
Commercial | Commercial mortgage
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	15,354	14,320
Commercial | Construction
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	1,613	1,775
Commercial | Lease financing
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	1,249	1,533
Consumer
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	43,372	39,105
Consumer | Residential mortgage
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	38,439	35,643
Consumer | Home equity and other consumer loans
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	4,933	3,462
Commercial
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	43,135	40,909
Total loans held for investment	(43,135)	(40,909)
Allowance for loan losses	(359)	(360)	(556)	(654)
Commercial | Commercial mortgage
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	15,354	14,320
Commercial | Construction
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	1,613	1,775
Consumer
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	43,372	39,105
Total loans held for investment	(43,372)	(39,105)
Allowance for loan losses	(110)	(86)	$ (83)	$ (49)
Consumer | Residential mortgage
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	38,439	35,643
Consumer | Home equity and other consumer loans
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	4,933	$ 3,462
Notes Receivable [Member] | Commercial | Commercial mortgage
Loans disclosures
Total loans held for investment	(16,000)
Notes Receivable [Member] | Consumer | Residential mortgage
Loans disclosures
Total loans held for investment	(38,000)
Financial and Insurance [Member] | Notes Receivable [Member] | Commercial
Loans disclosures
Total loans held for investment	(7,000)
Power and Utilities [Member] | Notes Receivable [Member] | Commercial
Loans disclosures
Total loans held for investment	(4,000)
Oil and Gas [Member] | Notes Receivable [Member] | Commercial
Loans disclosures
Total loans held for investment	(3,000)
Manufacturing Sector [Member] | Notes Receivable [Member] | Commercial
Loans disclosures
Total loans held for investment	$ (4,000)

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Loans and Allowance for Loan Losses - Reconciliation of Changes in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	$ 476	$ 639	$ 723
(Reversal of) provision for loan losses	84	(65)	158
Other		2	2
Loans charged-off	(120)	(155)	(271)
Recoveries of loans previously charged-off	34	55	27
Allowance for loan losses, end of period	474	476	639
Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	360	556	654
(Reversal of) provision for loan losses		(132)	134
Loans charged-off	(79)	(116)	(259)
Recoveries of loans previously charged-off	27	50	25
Allowance for loan losses, end of period	359	360	556
Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	86	83	49
(Reversal of) provision for loan losses		37	44
Other		0	0
Loans charged-off	(41)	(39)	(12)
Recoveries of loans previously charged-off	7	5	2
Allowance for loan losses, end of period	110	86	83
Unallocated
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	30	0	20
(Reversal of) provision for loan losses		30	(20)
Other		0	0
Loans charged-off		0	0
Recoveries of loans previously charged-off		0	0
Allowance for loan losses, end of period	$ 5	$ 30	$ 0

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Loans and Allowance for Loan Losses - Loan Losses and Related Loan Balances by Portfolio Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for loan losses:
Individually evaluated for impairment	$ 75	$ 73
Impaired Financing Receivable, Related Allowance	75	73
Collectively evaluated for impairment	399	403
Total allowance for loan losses	474	476	$ 639	$ 723
Loans held for investment:
Individually evaluated for impairment	730	865
Collectively evaluated for impairment	85,777	79,149
Total loans held for investment	86,507	80,014
Provision for Loan and Lease Losses	84	(65)	158
Other		2	2
Financing Receivable, Allowance for Credit Losses, Write-downs	120	155	271
Recoveries of loans previously charged-off	34	55	27
Commercial
Allowance for loan losses:
Individually evaluated for impairment	62	58
Impaired Financing Receivable, Related Allowance	62	58
Collectively evaluated for impairment	297	302
Total allowance for loan losses	359	360	556	654
Loans held for investment:
Individually evaluated for impairment	450	544
Collectively evaluated for impairment	42,685	40,365
Total loans held for investment	43,135	40,909
Provision for Loan and Lease Losses		(132)	134
Financing Receivable, Allowance for Credit Losses, Write-downs	79	116	259
Recoveries of loans previously charged-off	27	50	25
Consumer
Allowance for loan losses:
Individually evaluated for impairment	13	15
Impaired Financing Receivable, Related Allowance	13	15
Collectively evaluated for impairment	97	71
Total allowance for loan losses	110	86	83	49
Loans held for investment:
Individually evaluated for impairment	280	321
Collectively evaluated for impairment	43,092	38,784
Total loans held for investment	43,372	39,105
Provision for Loan and Lease Losses		37	44
Other		0	0
Financing Receivable, Allowance for Credit Losses, Write-downs	41	39	12
Recoveries of loans previously charged-off	7	5	2
Purchased Credit- Impaired
Allowance for loan losses:
Individually evaluated for impairment		0
Collectively evaluated for impairment		30
Loans held for investment:
Individually evaluated for impairment		0
Collectively evaluated for impairment		0
Unallocated
Allowance for loan losses:
Individually evaluated for impairment	0
Collectively evaluated for impairment	5
Total allowance for loan losses	5	30	0	$ 20
Loans held for investment:
Total loans held for investment	0	0
Provision for Loan and Lease Losses		30	(20)
Other		0	0
Financing Receivable, Allowance for Credit Losses, Write-downs		0	0
Recoveries of loans previously charged-off		0	$ 0
Residential mortgage | Consumer
Allowance for loan losses:
Impaired Financing Receivable, Related Allowance	12	15
Commercial mortgage | Commercial
Allowance for loan losses:
Impaired Financing Receivable, Related Allowance	1	1
Notes Receivable [Member] | Residential mortgage | Consumer
Loans held for investment:
Total loans held for investment	38,000
Notes Receivable [Member] | Commercial mortgage | Commercial
Loans held for investment:
Total loans held for investment	16,000
Financial and Insurance [Member] | Notes Receivable [Member] | Commercial
Loans held for investment:
Total loans held for investment	7,000
Power and Utilities [Member] | Notes Receivable [Member] | Commercial
Loans held for investment:
Total loans held for investment	4,000
Oil and Gas [Member] | Notes Receivable [Member] | Commercial
Loans held for investment:
Total loans held for investment	3,000
Manufacturing Sector [Member] | Notes Receivable [Member] | Commercial
Loans held for investment:
Total loans held for investment	4,000
Unallocated
Loans held for investment:
Individually evaluated for impairment	0
Collectively evaluated for impairment	0
Provision for Loan and Lease Losses	(25)
Financing Receivable, Allowance for Credit Losses, Write-downs	0
Recoveries of loans previously charged-off	0
Unallocated | Unallocated
Allowance for loan losses:
Total allowance for loan losses		30
Commercial Portfolio Segment [Member]
Loans held for investment:
Provision for Loan and Lease Losses	51
Commercial Portfolio Segment [Member] | Commercial
Allowance for loan losses:
Total allowance for loan losses		360
Consumer Portfolio Segment [Member]
Loans held for investment:
Provision for Loan and Lease Losses	$ 58
Consumer Portfolio Segment [Member] | Consumer
Allowance for loan losses:
Total allowance for loan losses		$ 86

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Loans and Allowance for Loan Losses - Nonaccural Loans (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Nonaccrual loans
Nonaccrual loans	$ 421	$ 465
Troubled debt restructured loans that continue to accrue interest	299	348
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)	136	229
Commercial
Nonaccrual loans
Nonaccrual loans	281	339
Commercial | Commercial and industrial
Nonaccrual loans
Nonaccrual loans	269	319
Commercial | Commercial mortgage
Nonaccrual loans
Nonaccrual loans	12	20
Consumer
Nonaccrual loans
Nonaccrual loans	140	126
Consumer | Residential mortgage
Nonaccrual loans
Nonaccrual loans	121	104
Consumer | Home equity and other consumer loans
Nonaccrual loans
Nonaccrual loans	$ 19	$ 22

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Loans and Allowance for Loan Losses - Balance of Loans Held for Investment, by Class (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Aging of loans
Current	$ 86,151	$ 79,687
30 to 89 Days Past Due	258	207
90 Days or More Past Due	98	120
Total Past Due	356	327
Total	86,507	80,014
Loans still accruing	23	12
Commercial
Aging of loans
Current	43,040	40,807
30 to 89 Days Past Due	55	33
90 Days or More Past Due	40	69
Total Past Due	95	102
Total	43,135	40,909
Commercial | Commercial and industrial
Aging of loans
Current	26,114	24,734
30 to 89 Days Past Due	18	17
90 Days or More Past Due	36	63
Total Past Due	54	80
Total	26,168	24,814
Commercial | Commercial mortgage
Aging of loans
Current	15,333	14,298
30 to 89 Days Past Due	17	16
90 Days or More Past Due	4	6
Total Past Due	21	22
Total	15,354	14,320
Commercial | Construction
Aging of loans
Current	1,593	1,775
30 to 89 Days Past Due	20	0
90 Days or More Past Due	0	0
Total Past Due	20	0
Total	1,613	1,775
Consumer
Aging of loans
Current	43,111	38,880
30 to 89 Days Past Due	203	174
90 Days or More Past Due	58	51
Total Past Due	261	225
Total	43,372	39,105
Consumer | Residential mortgage
Aging of loans
Current	38,218	35,453
30 to 89 Days Past Due	175	151
90 Days or More Past Due	46	39
Total Past Due	221	190
Total	38,439	35,643
Consumer | Home equity and other consumer loans
Aging of loans
Current	4,893	3,427
30 to 89 Days Past Due	28	23
90 Days or More Past Due	12	12
Total Past Due	40	35
Total	$ 4,933	$ 3,462

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Loans and Allowance for Loan Losses - Purchased Credit-Impaired Loans Segment (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Commercial
Aging of loans
Total loans	$ 43,135	$ 40,909
Commercial | Commercial and industrial
Aging of loans
Total loans	26,168	24,814
Commercial | Commercial mortgage
Aging of loans
Total loans	15,354	14,320
Commercial | Construction
Aging of loans
Total loans	1,613	1,775
Pass | Commercial
Aging of loans
Total loans	41,871	39,345
Pass | Commercial | Commercial and industrial
Aging of loans
Total loans	25,191	23,632
Pass | Commercial | Commercial mortgage
Aging of loans
Total loans	15,138	14,081
Pass | Commercial | Construction
Aging of loans
Total loans	1,542	1,632
Special Mention | Commercial
Aging of loans
Total loans	468	530
Special Mention | Commercial | Commercial and industrial
Aging of loans
Total loans	355	435
Special Mention | Commercial | Commercial mortgage
Aging of loans
Total loans	105	80
Special Mention | Commercial | Construction
Aging of loans
Total loans	8	15
Classified | Commercial
Aging of loans
Total loans	796	1,034
Classified | Commercial | Commercial and industrial
Aging of loans
Total loans	622	747
Classified | Commercial | Commercial mortgage
Aging of loans
Total loans	111	159
Classified | Commercial | Construction
Aging of loans
Total loans	63	128
Consumer Portfolio Segment [Member]
Aging of loans
Loans not covered	$ 6	$ 8

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Loans and Allowance for Loan Losses - Loans in Consumer Portfolio Segment and Purchased Credit Impaired Loans Segment (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Consumer portfolio loans
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	$ 603	$ 645
Nonaccrual	421	465
Loans held for investment	86,507	80,014
Total	86,507	80,014
Consumer
Consumer portfolio loans
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	206	264
Accrual	43,226	38,971
Nonaccrual	140	126
Loans held for investment	43,372	39,105
Total	43,372	39,105
Consumer | Residential mortgage
Consumer portfolio loans
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	184	234
Accrual	38,314	35,534
Nonaccrual	121	104
Total	38,439	35,643
Consumer | Home equity and other consumer loans
Consumer portfolio loans
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	22	30
Accrual	4,912	3,437
Nonaccrual	19	22
Total	4,933	3,462
Commercial
Consumer portfolio loans
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	397	381
Nonaccrual	281	339
Loans held for investment	43,135	40,909
Total	43,135	40,909
Commercial | Commercial mortgage
Consumer portfolio loans
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	25	33
Nonaccrual	12	20
Total	15,354	14,320
Excluding Loans Covered by FDIC Loss Share Agreements [Member] | Consumer
Consumer portfolio loans
Total	43,366	39,097
Excluding Loans Covered by FDIC Loss Share Agreements [Member] | Consumer | Residential mortgage
Consumer portfolio loans
Total	38,435	35,638
Excluding Loans Covered by FDIC Loss Share Agreements [Member] | Consumer | Home equity and other consumer loans
Consumer portfolio loans
Total	4,931	3,459
Notes Receivable [Member] | Consumer | Residential mortgage
Consumer portfolio loans
Loans held for investment	38,000
Notes Receivable [Member] | Commercial | Commercial mortgage
Consumer portfolio loans
Loans held for investment	16,000
Financial and Insurance [Member] | Notes Receivable [Member] | Commercial
Consumer portfolio loans
Loans held for investment	7,000
Power and Utilities [Member] | Notes Receivable [Member] | Commercial
Consumer portfolio loans
Loans held for investment	4,000
Oil and Gas [Member] | Notes Receivable [Member] | Commercial
Consumer portfolio loans
Loans held for investment	3,000
Manufacturing Sector [Member] | Notes Receivable [Member] | Commercial
Consumer portfolio loans
Loans held for investment	4,000
Commercial Portfolio Segment [Member] | Construction
Consumer portfolio loans
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	$ 0	$ 0

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Loans and Allowance for Loan Losses - FICO Scores (Details) - Consumer - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	$ 42,894	$ 38,685
Percentage of total	100.00%	100.00%
720 and Above
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	$ 34,938	$ 31,190
Percentage of total	82.00%	81.00%
Below 720
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	$ 7,470	$ 7,000
Percentage of total	17.00%	18.00%
No FICO Available
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	$ 486	$ 495
Percentage of total	1.00%	1.00%
Residential mortgage
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	$ 38,045	$ 35,279
Residential mortgage | 720 and Above
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	31,589	28,786
Residential mortgage | Below 720
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	6,022	6,082
Residential mortgage | No FICO Available
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	434	411
Home equity and other consumer loans
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	4,849	3,406
Home equity and other consumer loans | 720 and Above
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	3,349	2,404
Home equity and other consumer loans | Below 720
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	1,448	918
Home equity and other consumer loans | No FICO Available
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	$ 52	$ 84

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Loans and Allowance for Loan Losses - LTV Ratios (Details) - Consumer - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Credit quality of consumer loans
Loans categorized by LTV ratio	$ 40,267	$ 37,636
Percentage of total	100.00%	100.00%
Less than or Equal to 80 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	$ 38,570	$ 36,524
Percentage of total	96.00%	97.00%
Greater than 80 and Less than 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	$ 1,582	$ 1,019
Percentage of total	4.00%	3.00%
Greater than or Equal to 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	$ 16	$ 28
Percentage of total	0.00%	0.00%
No LTV Available
Credit quality of consumer loans
Loans categorized by LTV ratio	$ 99	$ 65
Percentage of total	0.00%	0.00%
Residential mortgage
Credit quality of consumer loans
Loans categorized by LTV ratio	$ 38,044	$ 35,279
Residential mortgage | Less than or Equal to 80 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	36,604	34,472
Residential mortgage | Greater than 80 and Less than 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	1,361	771
Residential mortgage | Greater than or Equal to 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	4	4
Residential mortgage | No LTV Available
Credit quality of consumer loans
Loans categorized by LTV ratio	75	32
Home Equity loans
Credit quality of consumer loans
Loans categorized by LTV ratio	2,223	2,357
Home Equity loans | Less than or Equal to 80 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	1,966	2,052
Home Equity loans | Greater than 80 and Less than 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	221	248
Home Equity loans | Greater than or Equal to 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	12	24
Home Equity loans | No LTV Available
Credit quality of consumer loans
Loans categorized by LTV ratio	$ 24	$ 33

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Loans and Allowance for Loan Losses - Summary of Recorded Investment in TDR's (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Pre- and Post - modification recorded investments
Commitment to lend additional funds to borrowers with loan modifications classified as TDRs	$ 49	$ 66
Total restructured loans	435	577
Commercial
Pre- and Post - modification recorded investments
Total restructured loans	218	337
Commercial | Commercial and industrial
Pre- and Post - modification recorded investments
Total restructured loans	109	202
Commercial | Commercial mortgage
Pre- and Post - modification recorded investments
Total restructured loans	46	7
Commercial | Construction
Pre- and Post - modification recorded investments
Total restructured loans	63	128
Consumer
Pre- and Post - modification recorded investments
Total restructured loans	217	240
Consumer | Residential mortgage
Pre- and Post - modification recorded investments
Total restructured loans	196	215
Consumer | Home equity and other consumer loans
Pre- and Post - modification recorded investments
Total restructured loans	$ 21	$ 25

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Loans and Allowance for Loan Losses - Pre and Post Modification Outstanding Recorded Investment Amounts of TDRs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	$ 180	$ 362
Post-Modification Outstanding Recorded Investment	180	341
Commercial
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	169	343
Post-Modification Outstanding Recorded Investment	169	322
Commercial | Commercial and industrial
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment		186
Post-Modification Outstanding Recorded Investment		186
Commercial | Commercial mortgage
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	4	5
Post-Modification Outstanding Recorded Investment	4	5
Commercial | Construction
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	0	152
Post-Modification Outstanding Recorded Investment	0	131
Consumer
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	11	19
Post-Modification Outstanding Recorded Investment	11	19
Consumer | Residential mortgage
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment		16
Post-Modification Outstanding Recorded Investment		16
Consumer | Home equity and other consumer loans
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	2	3
Post-Modification Outstanding Recorded Investment	2	$ 3
Commercial Portfolio Segment [Member] | Commercial and industrial
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	165
Post-Modification Outstanding Recorded Investment	165
Consumer Portfolio Segment [Member] | Residential mortgage
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	9
Post-Modification Outstanding Recorded Investment	$ 9

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Loans and Allowance for Loan Losses - Recorded Investment Amounts of TDRs at Date of Default (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	$ 3	$ 23
Minimum defaulting period	60 days
Commercial
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	$ 0	20
Commercial | Commercial and industrial
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	0	19
Commercial | Commercial mortgage
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	0	1
Consumer
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	3	3
Consumer | Residential mortgage
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	3	3
Consumer | Home equity and other consumer loans
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	$ 0	$ 0

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Loans and Allowance for Loan Losses - Impaired Loans by Class (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Loan impairment
Impaired Financing Receivable, with Related Allowance, Recorded Investment	$ 521	$ 567
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	209	298
Recorded Investment, Impaired loans	730	865
Allowance for impaired loans	75	73
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	603	645
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	249	326
Commercial
Loan impairment
Impaired Financing Receivable, with Related Allowance, Recorded Investment	324	320
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	126	224
Recorded Investment, Impaired loans		544
Allowance for impaired loans	62	58
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	397	381
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	143	233
Commercial | Commercial and industrial
Loan impairment
Impaired Financing Receivable, with Related Allowance, Recorded Investment	299	287
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	22	93
Recorded Investment, Impaired loans	321	380
Allowance for impaired loans	61	57
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	372	348
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	39	102
Commercial | Commercial mortgage
Loan impairment
Impaired Financing Receivable, with Related Allowance, Recorded Investment	25	33
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	41	3
Recorded Investment, Impaired loans	66	36
Allowance for impaired loans	1	1
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	25	33
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	41	3
Construction | Construction loans portfolio [Member]
Loan impairment
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	63	128
Recorded Investment, Impaired loans	63	128
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	63	128
Consumer
Loan impairment
Impaired Financing Receivable, with Related Allowance, Recorded Investment	197	247
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	83	74
Recorded Investment, Impaired loans	280	321
Allowance for impaired loans	13	15
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	206	264
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	106	93
Consumer | Residential mortgage
Loan impairment
Impaired Financing Receivable, with Related Allowance, Recorded Investment	175	218
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	71	59
Recorded Investment, Impaired loans	246	277
Allowance for impaired loans	12	15
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	184	234
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	85	69
Consumer | Home equity and other consumer loans
Loan impairment
Impaired Financing Receivable, with Related Allowance, Recorded Investment	22	29
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	12	15
Recorded Investment, Impaired loans	34	44
Allowance for impaired loans	1	0
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	22	30
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	21	24
Commercial Portfolio Segment [Member] | Construction
Loan impairment
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Allowance for impaired loans	0	0
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	$ 0	$ 0

XML

Loans and Allowance for Loan Losses - Average Recorded Investment in Impaired Loans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loan impairment
Impaired Financing Receivable, Related Allowance	$ 75	$ 73
Impaired Financing Receivable, with Related Allowance, Recorded Investment	521	567
Average Recorded Investment	763	922	$ 837
Recognized Interest Income	64	84	15
Allowance for loan losses:
Transfer of loans from held for investment to held for sale	44	776	1,976
Loans receivable sold during the period	638	926	1,526
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	209	298
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	603	645
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	249	326
Commercial
Loan impairment
Impaired Financing Receivable, Related Allowance	62	58
Impaired Financing Receivable, with Related Allowance, Recorded Investment	324	320
Average Recorded Investment	464	566	548
Recognized Interest Income	47	64	5
Allowance for loan losses:
Transfer of loans from held for investment to held for sale		780	1,632
Loans receivable sold during the period		926	1,182
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	126	224
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	397	381
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	143	233
Commercial | Commercial and industrial
Loan impairment
Impaired Financing Receivable, Related Allowance	61	57
Impaired Financing Receivable, with Related Allowance, Recorded Investment	299	287
Average Recorded Investment	309	463	531
Recognized Interest Income	12	18	4
Allowance for loan losses:
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	22	93
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	372	348
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	39	102
Commercial | Commercial mortgage
Loan impairment
Impaired Financing Receivable, Related Allowance	1	1
Impaired Financing Receivable, with Related Allowance, Recorded Investment	25	33
Average Recorded Investment	60	58	17
Recognized Interest Income	27	41	1
Allowance for loan losses:
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	41	3
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	25	33
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	41	3
Commercial | Construction
Loan impairment
Average Recorded Investment	95	45	0
Recognized Interest Income	8	5	0
Construction | Construction loans portfolio [Member]
Allowance for loan losses:
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	63	128
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	63	128
Consumer
Loan impairment
Impaired Financing Receivable, Related Allowance	13	15
Impaired Financing Receivable, with Related Allowance, Recorded Investment	197	247
Average Recorded Investment	299	356	289
Recognized Interest Income	17	20	10
Allowance for loan losses:
Transfer of loans from held for investment to held for sale		(4)	344
Loans receivable sold during the period		0	344
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	83	74
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	206	264
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	106	93
Consumer | Residential mortgage
Loan impairment
Impaired Financing Receivable, Related Allowance	12	15
Impaired Financing Receivable, with Related Allowance, Recorded Investment	175	218
Average Recorded Investment	261	304	258
Recognized Interest Income	13	14	8
Allowance for loan losses:
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	71	59
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	184	234
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	85	69
Consumer | Home equity and other consumer loans
Loan impairment
Impaired Financing Receivable, Related Allowance	1	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	22	29
Average Recorded Investment	38	52	31
Recognized Interest Income	4	6	$ 2
Allowance for loan losses:
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	12	15
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	22	30
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	21	24
Commercial Portfolio Segment [Member]
Allowance for loan losses:
Transfer of loans from held for investment to held for sale	47
Loans receivable sold during the period	638
Commercial Portfolio Segment [Member] | Construction
Loan impairment
Impaired Financing Receivable, Related Allowance	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Allowance for loan losses:
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0	$ 0
Consumer Portfolio Segment [Member]
Allowance for loan losses:
Transfer of loans from held for investment to held for sale	(3)
Loans receivable sold during the period	$ 0

XML

Loans and Allowance for Loan Losses - Accretable Yield for Purchased Credit-Impaired Loans (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Concentrations of Credit Risk
Loans	$ 86,507	$ 80,014
Consumer
Concentrations of Credit Risk
Loans	43,372	39,105
Consumer | Residential mortgage | Notes Receivable [Member]
Concentrations of Credit Risk
Loans	38,000
Commercial
Concentrations of Credit Risk
Loans	43,135	$ 40,909
Commercial | Notes Receivable [Member] | Financial and Insurance [Member]
Concentrations of Credit Risk
Loans	7,000
Additional unfunded commitments to extend credit	7,000
Commercial | Notes Receivable [Member] | Power and Utilities [Member]
Concentrations of Credit Risk
Loans	4,000
Additional unfunded commitments to extend credit	5,000
Commercial | Notes Receivable [Member] | Oil and Gas [Member]
Concentrations of Credit Risk
Loans	3,000
Additional unfunded commitments to extend credit	2,000
Commercial | Notes Receivable [Member] | Manufacturing Sector [Member]
Concentrations of Credit Risk
Loans	4,000
Additional unfunded commitments to extend credit	3,000
Commercial | Commercial mortgage | Notes Receivable [Member]
Concentrations of Credit Risk
Loans	16,000
Additional unfunded commitments to extend credit	$ 4,000

XML

Goodwill and Other Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Goodwill rollforward
Goodwill, beginning of year	$ 3,301	$ 3,225
Net change from business combinations	0	76
Goodwill, end of year	$ 3,301	$ 3,301

XML

Premises and Equipment and Other Assets - Premises and Equipment Carried at Cost (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Premises and Equipment
Net Book Value	$ 635	$ 610

XML

Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Changes in the carrying amount of goodwill
Goodwill	$ 3,301	$ 3,301	$ 3,225
Regional Bank
Changes in the carrying amount of goodwill
Goodwill	2,134	2,134
Commercial Banking
Changes in the carrying amount of goodwill
Goodwill	840	840
Transaction Banking
Changes in the carrying amount of goodwill
Goodwill	251	251
MUFG Fund Services [Member]
Changes in the carrying amount of goodwill
Goodwill	$ 76	$ 76

XML

Goodwill and Other Intangible Assets - Identifiable Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Intangible Assets
Servicing Asset at Fair Value, Amount	$ 159	$ 64
Amortization Expense	26	30	$ 28
Gross Carrying Amount	932	935
Accumulated Amortization	(647)	(622)
Net Carrying Amount	285	313
Core deposit intangibles
Intangible Assets
Gross Carrying Amount	565	565
Accumulated Amortization	(537)	(530)
Net Carrying Amount	28	35
Trade names
Intangible Assets
Gross Carrying Amount	111	113
Accumulated Amortization	(32)	(29)
Net Carrying Amount	79	84
Customer Relationships
Intangible Assets
Gross Carrying Amount	238	238
Accumulated Amortization	(63)	(47)
Net Carrying Amount	175	191
Other intangibles assets
Intangible Assets
Gross Carrying Amount	18	19
Accumulated Amortization	(15)	(16)
Net Carrying Amount	$ 3	$ 3

XML

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Schedule Of Estimated Future Amortization Expense
2017	$ 26
2018	25
2019	22
2020	22
2021	19
Thereafter	171
Net Carrying Amount	285	$ 313
Core deposit intangibles
Schedule Of Estimated Future Amortization Expense
2017	6
2018	5
2019	4
2020	4
2021	2
Thereafter	7
Net Carrying Amount	28	35
Trade names
Schedule Of Estimated Future Amortization Expense
2017	3
2018	3
2019	3
2020	3
2021	3
Thereafter	64
Net Carrying Amount	79	84
Customer Relationships
Schedule Of Estimated Future Amortization Expense
2017	16
2018	16
2019	15
2020	15
2021	14
Thereafter	99
Net Carrying Amount	175	191
Other
Schedule Of Estimated Future Amortization Expense
2017	1
2018	1
2019	0
2020	0
2021	0
Thereafter	1
Net Carrying Amount	$ 3	$ 3

XML

Premises and Equipment and Other Assets - Other Assets (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Other Assets
Other investments	$ 3,250	$ 3,412
Property, Plant and Equipment, Net	635	610
Software	445	424
Intangible assets	444	377
OREO	1	0
Other	4,845	4,587
Total other assets	$ 9,620	$ 9,410

XML

Variable Interest Entities - Assets and Liabilities of Consolidated VIEs (Details) $ in Millions	Dec. 31, 2018 USD ($) investment	Dec. 31, 2017 USD ($)
Consolidated Assets
Interest Bearing Deposits in Banks	$ 6,289	$ 1,335
Loans Held for Investment, Net	86,033	79,538
Other assets	9,620	9,410
Total Assets		0
Consolidated Liabilities
Other liabilities	2,048	2,143
Consolidated VIEs
Consolidated Assets
Interest Bearing Deposits in Banks	0	1
Loans Held for Investment, Net	570	583
Other assets	165	226
Total Assets	735	810
Consolidated Liabilities
Other liabilities	17	24
Total Liabilities	17	24
Consolidated VIEs | LIHC investments
Consolidated Assets
Interest Bearing Deposits in Banks	0	0
Loans and Leases Receivable, Net of Deferred Income	0	0
Other assets	43	68
Total Assets	43	68
Consolidated Liabilities
Other liabilities	0	0
Total Liabilities	$ 0	0
Number of LIHC investment fund | investment	2
Consolidated VIEs | Leasing investments
Consolidated Assets
Interest Bearing Deposits in Banks	$ 0	1
Loans and Leases Receivable, Net of Deferred Income	570	583
Other assets	122	158
Total Assets	692	742
Consolidated Liabilities
Other liabilities	17	24
Total Liabilities	$ 17	$ 24

XML

Variable Interest Entities - Carrying Amounts related to Unconsolidated VIEs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Variable Interest Entities
Carrying amount of liabilities assumed	$ 0	$ 601	$ 0
Interest bearing deposits in banks	6,289	1,335
Unconsolidated Assets
Securities Available for Sale	16,314	17,563
Loans held for investment	86,507	80,014
Other Assets	9,620	9,410
Unconsolidated Liabilities
Other Liabilities	2,048	2,143
Unconsolidated VIEs
Variable Interest Entities
Interest bearing deposits in banks	26	1
Unconsolidated Assets
Securities Available for Sale	28	29
Loans held for investment	217	276
Other Assets	2,412	2,799
Total Assets	2,683	3,105
Unconsolidated Liabilities
Other Liabilities	179	307
Total Liabilities	179	307
Maximum Exposure to Loss	2,748	3,208
Unconsolidated VIEs | LIHC investments
Variable Interest Entities
Carrying amount of liabilities assumed	87	55	$ 125
Interest bearing deposits in banks	0	0
Unconsolidated Assets
Securities Available for Sale	28	29
Loans held for investment	198	228
Other Assets	976	1,028
Total Assets	1,202	1,285
Unconsolidated Liabilities
Other Liabilities	165	254
Total Liabilities	165	254
Maximum Exposure to Loss	1,202	1,284
Unconsolidated VIEs | Leasing investments
Variable Interest Entities
Interest bearing deposits in banks	26	1
Unconsolidated Assets
Securities Available for Sale	0	0
Loans held for investment	19	24
Other Assets	1,401	1,745
Total Assets	1,446	1,770
Unconsolidated Liabilities
Other Liabilities	14	53
Total Liabilities	14	53
Maximum Exposure to Loss	1,467	1,792
Unconsolidated VIEs | Other investments
Variable Interest Entities
Interest bearing deposits in banks	0	0
Unconsolidated Assets
Securities Available for Sale	0	0
Loans held for investment	0	24
Other Assets	35	26
Total Assets	35	50
Unconsolidated Liabilities
Other Liabilities	0	0
Total Liabilities	0	0
Maximum Exposure to Loss	79	132
Consumer
Unconsolidated Assets
Loans held for investment	43,372	39,105
Commercial
Unconsolidated Assets
Loans held for investment	43,135	$ 40,909
Notes Receivable [Member] | Consumer | Residential mortgage
Unconsolidated Assets
Loans held for investment	38,000
Notes Receivable [Member] | Commercial | Commercial mortgage
Unconsolidated Assets
Loans held for investment	16,000
Financial and Insurance [Member] | Notes Receivable [Member] | Commercial
Unconsolidated Assets
Loans held for investment	7,000
Power and Utilities [Member] | Notes Receivable [Member] | Commercial
Unconsolidated Assets
Loans held for investment	4,000
Oil and Gas [Member] | Notes Receivable [Member] | Commercial
Unconsolidated Assets
Loans held for investment	3,000
Manufacturing Sector [Member] | Notes Receivable [Member] | Commercial
Unconsolidated Assets
Loans held for investment	$ 4,000

XML

Variable Interest Entities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Variable Interest Entity [Line Items]
Loans held for investment	$ 86,507	$ 80,014
Non Interest Expenses
Variable Interest Entity [Line Items]
Losses from LIHC investments included in other noninterest expense	(7)	(13)	$ (8)
Income Tax Expense
Variable Interest Entity [Line Items]
Amortization of LIHC investments included in income tax expense	136	185	129
Tax credits and other tax benefits from LIHC investments included in income tax expense	180	193	$ 188
Unconsolidated VIEs
Variable Interest Entity [Line Items]
Loans held for investment	217	276
Unconsolidated VIEs | LIHC investments
Variable Interest Entity [Line Items]
Loans held for investment	198	228
Unconsolidated VIEs | Leasing investments
Variable Interest Entity [Line Items]
Loans held for investment	19	24
Unconsolidated VIEs | Other investments
Variable Interest Entity [Line Items]
Loans held for investment	$ 0	$ 24

XML

Deposits (Details) - USD ($) $ in Billions	Dec. 31, 2018	Dec. 31, 2017
Deposits [Abstract]
Time deposits, in excess of FDIC insurance	$ 4.2	$ 3.1
Interest bearing time deposits with remaining term of greater than one year	$ 11.7

XML

Securities Financing Agreements (Gross Obligations to Repurchase, Securities Loaned, and Class of Collateral Pledged) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	$ 38,891	$ 37,388
Securities sold under agreements to repurchase	27,285	26,437
Securities loaned	93	879
Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	93	446
Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	0	332
31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	0	101
Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	0	0
U.S. Treasury
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	15,687	12,818
Securities loaned		322
U.S. Treasury | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	9,416
U.S. Treasury | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross		8,244
U.S. Treasury | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	2,945	2,370
U.S. Treasury | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	2,991	1,046
U.S. Treasury | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	335	1,158
U.S. government-sponsored agencies
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	319	216
U.S. government-sponsored agencies | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	264
U.S. government-sponsored agencies | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross		115
U.S. government-sponsored agencies | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	38
U.S. government-sponsored agencies | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	55	63
U.S. government-sponsored agencies | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	0
Other sovereign government obligations
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase		4
Other sovereign government obligations | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross		0
Other sovereign government obligations | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross		0
Other sovereign government obligations | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross		4
Other sovereign government obligations | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross		0
Money market funds
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	49	7
Money market funds | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	1
Money market funds | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	0
Money market funds | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	49	6
Money market funds | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	0
Asset-backed securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	282	196
Asset-backed securities | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0
Asset-backed securities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross		32
Asset-backed securities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	0
Asset-backed securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	282	164
Asset-backed securities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	0
Mortgage-backed securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	19,012	19,403
Mortgage-backed securities | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	9,803
Mortgage-backed securities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross		8,322
Mortgage-backed securities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	1,640	4,972
Mortgage-backed securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	7,569	5,859
Mortgage-backed securities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	250
Corporate bonds
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	2,039	2,325
Securities loaned	1
Corporate bonds | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	682
Corporate bonds | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross		580
Securities loaned	1	0
Corporate bonds | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	130	620
Securities loaned	0	322
Corporate bonds | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	1,227	1,125
Securities loaned	0	0
Corporate bonds | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	0
Securities loaned	0	0
Municipal bonds
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	548	559
Municipal bonds | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	115
Municipal bonds | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross		283
Municipal bonds | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	245	0
Municipal bonds | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	188	276
Municipal bonds | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	0
Equity securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	862	981
Securities loaned	92	557
Equity securities | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	387
Securities loaned	92
Equity securities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross		416
Securities loaned		446
Equity securities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	220	376
Securities loaned	0	10
Equity securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	255	189
Securities loaned	0	101
Equity securities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	0
Securities loaned	0	0
Trading Securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	38,798	36,509
Trading Securities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	20,667	17,993
Trading Securities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	5,180	8,376
Trading Securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	12,616	8,732
Trading Securities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	$ 335	$ 1,408

XML

Deposits - Schedule of Maturities of Time Deposits (Details) $ in Millions	Dec. 31, 2018 USD ($)
Deposits [Abstract]
Due in one year or less	$ 7,049
Due after one year through two years	4,032
Due after two years through three years	500
Due after three years through four years	91
Due after four years through five years	66
Due after five years	1
Total	$ 11,700

XML

Securities Financing Agreements (Offsetting Financing Assets and Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Derivative assets
Gross Amounts of Recognized Assets/Liabilities	$ 871	$ 1,322
Gross Amounts Offset in Balance Sheet	354	607
Net Amounts Presented in Balance Sheet	517	715
Gross Amounts Not Offset In Balance Sheet, Financial Instruments	14	25
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	0
Net Amount	503	690
Securities borrowed or purchased under resale agreements
Gross Amounts of Recognized Assets/Liabilities	33,974	31,845
Gross Amounts Offset in Balance Sheet	11,606	10,951
Net Amounts Presented in Balance Sheet	22,368	20,894
Gross Amounts Not Offset in Balance Sheet, Financial Instruments	22,291	20,816
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	0
Net Amount	77	78
Total Financial Assets
Gross Amounts of Recognized Assets/Liabilities	34,845	33,167
Gross Amounts Offset in Balance Sheet	11,960	11,558
Net Amounts Presented in Balance Sheet	22,885	21,609
Gross Amounts Not Offset In Balance Sheet, Financial Instruments	22,305	20,841
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	0
Net Amount	580	768
Derivative liabilities
Gross Amounts of Recognized Assets/Liabilities	804	1,127
Gross Amounts Offset in Balance Sheet	322	620
Net Amounts Presented in Balance Sheet	482	507
Gross Amount Not Offset in Balance Sheet, Financial Instruments	69	142
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	0
Net Amount	413	365
Securities loaned or sold under repurchase agreements
Gross Amounts of Recognized Assets/Liabilities	38,891	37,388
Gross Amounts Offset in Balance Sheet	11,606	10,951
Net Amounts Presented in Balance Sheet	27,285	26,437
Gross Amounts Not Offset in Balance Sheet, Financial Instruments	26,434	25,639
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	0
Net Amount	851	798
Total Financial Liabilities
Gross Amounts of Recognized Assets/Liabilities	39,695	38,515
Gross Amounts Offset in Balance Sheet	11,928	11,571
Net Amounts Presented in Balance Sheet	27,767	26,944
Gross Amount Not Offset in Balance Sheet, Financial Instruments	26,503	25,781
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	0
Net Amount	$ 1,264	$ 1,163

XML

Commercial Paper and Other Short-Term Borrowings - Summary of Commercial Paper and Other Short-Term Borrowings (Details) $ in Millions, ¥ in Billions	Dec. 31, 2018 USD ($)	Dec. 31, 2018 JPY (¥)	Dec. 31, 2017 USD ($)
Commercial Paper and Short-Term Borrowings
Total commercial paper and other short-term borrowings	$ 9,263		$ 7,066
MUB
Commercial Paper and Short-Term Borrowings
Total commercial paper and other short-term borrowings	8,182		6,097
MUAH
Commercial Paper and Short-Term Borrowings
Short-term debt due to MUFG Bank, Ltd., with weighted average interest rates of 3.01% and 1.88% at December 31, 2018 and December 31, 2017, respectively	145		168
Total commercial paper and other short-term borrowings	1,081		$ 969
Weighted average interest rate			1.88%
Commercial paper | MUB
Commercial Paper and Short-Term Borrowings
Commercial paper, with a weighted average interest rate of 2.39% and 1.26% at December 31, 2018 and December 31, 2017, respectively	$ 382		$ 347
Weighted average interest rate	2.39%	2.39%	1.26%
Federal Home Loan Bank advances | MUB
Commercial Paper and Short-Term Borrowings
Federal Home Loan Bank advances, with a weighted average interest rate of 2.52% and 1.42% at December 31, 2018 and December 31, 2017, respectively	$ 7,800		$ 5,750
Weighted average interest rate	2.52%	2.52%	1.42%
Parent Company [Member] | MUAH
Commercial Paper and Short-Term Borrowings
Weighted average interest rate	3.01%	3.01%
Affiliated Entity | MUAH
Commercial Paper and Short-Term Borrowings
Short-term debt due to affiliates, with weighted average interest rates of (-0.07)% and (-0.09)% at December 31, 2018 and December 31, 2017, respectively	$ 936	¥ 103	$ 801
Weighted average interest rate	(0.07%)	(0.07%)	(0.09%)

XML

Commercial Paper and Other Short-Term Borrowings - Narrative (Details) $ in Millions, ¥ in Billions	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 JPY (¥)	Dec. 31, 2017 USD ($)
Federal Home Loan Bank Borrowings [Member]
Standby Letters of Credit
Weighted average remaining maturity days	168 days
Commercial paper
Standby Letters of Credit
Weighted average remaining maturity days	97 days
MUB
Standby Letters of Credit
Weighted average remaining maturity days	53 days
Affiliated Entity
Standby Letters of Credit
Weighted average remaining maturity days	244 days
Affiliated Entity | MUAH
Standby Letters of Credit
Amount drawn under facility	$ 936	¥ 103	$ 801
Unsecured Debt [Member] | MUSA and Various other Non-Bank Subsidiaries
Standby Letters of Credit
Revolving credit facility borrowing capacity	1,400
Line of Credit | MUAH
Standby Letters of Credit
Revolving credit facility borrowing capacity	$ 1,400	¥ 160
Maturity extension period	100 days

XML

Long-Term Debt (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2017
Debt Instrument [Line Items]
Long-term debt	$ 17,918	$ 17,918	$ 12,162
Repayments of Long-term Debt		9,655	4,801	$ 3,082
Federal Home Loan advances, collateral pledged	44,000	44,000	43,000
Senior Debt Obligations [Member] | Fixed rate 2.25% notes due February 2020
Debt Instrument [Line Items]
Repayments of Long-term Debt	1,000
Total Loss Absorbing Capacity Loan Agreement [Member]
Debt Instrument [Line Items]
Long-term debt	6,500	6,500
MUFG Americas Holdings Corporation
Debt Instrument [Line Items]
Long-term debt	7,355	$ 7,355	6,997
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member]
Debt Instrument [Line Items]
Redeemable debt, percentage of par value		100.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating rate senior notes due February 2018. These notes, which bore interest at 0.57% above 3-month LIBOR, had a rate of 1.97% at December 31, 2017
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 0	$ 250
Debt instrument, effective interest rate	0.00%	0.00%	197.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating rate senior notes due February 2018. These notes, which bore interest at 0.57% above 3-month LIBOR, had a rate of 1.97% at December 31, 2017 | LIBOR
Debt Instrument [Line Items]
Interest rate above variable interest rate (as a percent)		0.00%	57.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Fixed rate 1.625% notes due February 2018
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 0	$ 450
Debt instrument, stated rate	0.00%	0.00%	163.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Fixed rate 2.25% notes due February 2020
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 0	$ 998
Debt instrument, stated rate	0.00%	0.00%	225.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Fixed rate 3.50% notes due June 2022
Debt Instrument [Line Items]
Long-term debt	$ 398	$ 398	$ 398
Debt instrument, stated rate	350.00%	350.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Fixed rate 3.00% notes due February 2025
Debt Instrument [Line Items]
Long-term debt	$ 397	$ 397	496
Debt instrument, stated rate	300.00%	300.00%
Repayments of Long-term Debt	$ 100
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating rate debt due March 2020. This note, which bore interest at 0.86% above 3-month LIBOR, had a rate of 2.45% at December 31, 2017
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 0	$ 545		$ 3,500
Debt instrument, effective interest rate			245.00%
Debt instrument, stated rate	0.00%	0.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating rate debt due March 2020. This note, which bore interest at 0.86% above 3-month LIBOR, had a rate of 2.45% at December 31, 2017 | LIBOR
Debt Instrument [Line Items]
Interest rate above variable interest rate (as a percent)		86.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating Rate Debt Due September 2020 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 0	$ 3,500
Debt instrument, effective interest rate			254.00%
Interest rate above variable interest rate (as a percent)		0.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating Rate Debt Due September 2020 [Member] | LIBOR
Debt Instrument [Line Items]
Interest rate above variable interest rate (as a percent)		85.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating Rate Debt Due December 2021 [Member]
Debt Instrument [Line Items]
Long-term debt	1,625	$ 1,625	$ 0
Debt instrument, effective interest rate			0.00%
Interest rate above variable interest rate (as a percent)		358.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating Rate Debt Due December 2021 [Member] | LIBOR
Debt Instrument [Line Items]
Interest rate above variable interest rate (as a percent)		81.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating Rate Debt Due December 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	3,250	$ 3,250	$ 0
Debt instrument, effective interest rate			0.00%
Interest rate above variable interest rate (as a percent)		367.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating Rate Debt Due December 2022 [Member] | LIBOR
Debt Instrument [Line Items]
Interest rate above variable interest rate (as a percent)		90.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating Rate Debt Due December 2023 LIBOR [Member]
Debt Instrument [Line Items]
Long-term debt	1,625	$ 1,625	$ 0
Debt instrument, effective interest rate			0.00%
Interest rate above variable interest rate (as a percent)		376.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating Rate Debt Due December 2023 LIBOR [Member] | LIBOR
Debt Instrument [Line Items]
Interest rate above variable interest rate (as a percent)		99.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating rate subordinated debt due December 2023. This note, which bore interest at 1.38% above 3-month LIBOR, had a rate of 3.07% at December 31, 2017
Debt Instrument [Line Items]
Long-term debt	$ 24	$ 24	$ 24
Debt instrument, effective interest rate	76.00%	76.00%	76.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating rate subordinated debt due December 2023. This note, which bore interest at 1.38% above 3-month LIBOR, had a rate of 3.07% at December 31, 2017 | LIBOR
Debt Instrument [Line Items]
Interest rate above variable interest rate (as a percent)		138.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations [Member] | Floating rate subordinated debt due December 2023. This note, which bore interest at 1.38% above 3-month LIBOR, had a rate of 3.07% at December 31, 2017 | Euro Interbank Offered Rate (Euribor) [Member]
Debt Instrument [Line Items]
Interest rate above variable interest rate (as a percent)		76.00%
MUFG Americas Holdings Corporation | Subordinated Debt | Floating Rate Surbordinated Debt Due December 2023 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 0	$ 300
MUFG Americas Holdings Corporation | Subordinated Debt | Floating rate subordinated debt due December 2023. This note, which bore interest at 1.38% above 3-month LIBOR, had a rate of 3.07% at December 31, 2017
Debt Instrument [Line Items]
Debt instrument, effective interest rate	0.00%	0.00%	307.00%
MUFG Americas Holdings Corporation | Junior subordinated debt payable to trusts | Floating rate note due September 2036 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 36	$ 36	$ 36
Debt instrument, effective interest rate	449.00%	449.00%	329.00%
MUB
Debt Instrument [Line Items]
Long-term debt	$ 9,632	$ 9,632	$ 3,810
Amount available for issuance under the bank note program	5,900	5,900
MUB | Maximum
Debt Instrument [Line Items]
Amount available for issuance under the bank note program	12,000	$ 12,000
MUB | Senior Debt Obligations [Member]
Debt Instrument [Line Items]
Amount available for issuance under the Bank note program		1 year
MUB | Senior Debt Obligations [Member] | Fixed Rate Advances Due Between January 2019 and December 2023 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 9,100	$ 9,100	$ 1,500
Debt instrument, stated rate	266.00%	266.00%	151.00%
MUB | Senior Debt Obligations [Member] | Fixed rate 2.625% notes due September 2018
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 0	$ 1,000
Debt instrument, stated rate	263.00%	263.00%
MUB | Senior Debt Obligations [Member] | Fixed rate 2.25% notes due May 2019
Debt Instrument [Line Items]
Long-term debt	$ 498	$ 498	$ 497
Debt instrument, stated rate	225.00%	225.00%
MUB | Senior Debt Obligations [Member] | Floating rate subordinated debt due June 2023. This note, which bore interest at 1.20% above 3-month LIBOR, had a rate of 2.89% at December 31, 2017
Debt Instrument [Line Items]
Debt instrument, effective interest rate	0.00%	0.00%	289.00%
MUB | Senior Debt Obligations [Member] | Floating rate subordinated debt due June 2023. This note, which bore interest at 1.20% above 3-month LIBOR, had a rate of 2.89% at December 31, 2017 | LIBOR
Debt Instrument [Line Items]
Interest rate above variable interest rate (as a percent)		120.00%
MUB | Subordinated Debt
Debt Instrument [Line Items]
Amount available for issuance under the Bank note program		5 years
MUB | Subordinated Debt | Floating rate subordinated debt due June 2023. This note, which bore interest at 1.20% above 3-month LIBOR, had a rate of 2.89% at December 31, 2017
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 0	$ 750
MUB | Other
Debt Instrument [Line Items]
Long-term debt	34	34	63
Other Subsidiaries, Excluding MUFG Bank, NA [Member]
Debt Instrument [Line Items]
Long-term debt	931	931	1,355
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Senior Debt Obligations [Member] | Floating Rate Borrowings Due Between December 2020 and May 2021 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 250	$ 250	$ 291
Debt instrument, effective interest rate	280.00%	280.00%	178.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Senior Debt Obligations [Member] | Fixed Rate Borrowings Due Between February 2019 and May 2024 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 244	$ 244	$ 339
Debt instrument, effective interest rate	182.00%	182.00%	212.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Senior Debt Obligations [Member] | Fixed Rate Borrowings Due Between February 2019 and May 2024 [Member] | Minimum
Debt Instrument [Line Items]
Debt instrument, effective interest rate	14.00%	14.00%	137.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Senior Debt Obligations [Member] | Fixed Rate Borrowings Due Between February 2019 and May 2024 [Member] | Maximum
Debt Instrument [Line Items]
Debt instrument, effective interest rate	244.00%	244.00%	265.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Senior Debt Obligations [Member] | Floating Rate Debt Due March 2019 [Member]
Debt Instrument [Line Items]
Debt instrument, effective interest rate			295.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Senior Debt Obligations [Member] | Floating Rate Debt Due March 2019 [Member] | Minimum
Debt Instrument [Line Items]
Debt instrument, effective interest rate			288.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Senior Debt Obligations [Member] | Floating Rate Debt Due March 2019 [Member] | Maximum
Debt Instrument [Line Items]
Debt instrument, effective interest rate			304.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Subordinated Debt | Floating Rate Debt Due March 2019 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 75	$ 75	$ 185
Debt instrument, effective interest rate	413.00%	413.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Subordinated Debt | Floating Rate Debt Due March 2019 [Member] | Minimum
Debt Instrument [Line Items]
Debt instrument, effective interest rate	0.00%	0.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Subordinated Debt | Floating Rate Debt Due March 2019 [Member] | Maximum
Debt Instrument [Line Items]
Debt instrument, effective interest rate	0.00%	0.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Floating Rate Nonrecourse Debt Due Between February 2019 and December 2021 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 53	$ 53	$ 79
Debt instrument, effective interest rate	409.00%	409.00%	307.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Floating Rate Nonrecourse Debt Due Between February 2019 and December 2021 [Member] | Minimum
Debt Instrument [Line Items]
Debt instrument, effective interest rate	275.00%	275.00%	149.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Floating Rate Nonrecourse Debt Due Between February 2019 and December 2021 [Member] | Maximum
Debt Instrument [Line Items]
Debt instrument, effective interest rate	417.00%	417.00%	558.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Fixed Rate Nonrecourse Debt Due Between January 2019 and July 2023 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 187	$ 187	$ 240
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Floating Rate Nonrecourse Borrowings Due Between February 2019 and May 2019 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 89	$ 89	$ 185
Debt instrument, effective interest rate	421.00%	421.00%	288.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Floating Rate Nonrecourse Borrowings Due Between February 2019 and May 2019 [Member] | Minimum
Debt Instrument [Line Items]
Debt instrument, effective interest rate	417.00%	417.00%	250.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Floating Rate Nonrecourse Borrowings Due Between February 2019 and May 2019 [Member] | Maximum
Debt Instrument [Line Items]
Debt instrument, effective interest rate	448.00%	448.00%	354.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Fixed rate non-recourse borrowings due December 2026 which had an interest rate of 5.34% at December 31, 2018 and December 31, 2017
Debt Instrument [Line Items]
Long-term debt	$ 33	$ 33	$ 36
Debt instrument, effective interest rate	534.00%	534.00%

XML

Fair Value Measurement and Fair Value of Financial Instruments - Fair Value Measurements on a Recurring Basis (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Fair value measurements
Trading account assets	$ 11,213,000,000	$ 10,567,000,000
Securities available for sale	16,314,000,000
Servicing Asset at Fair Value, Amount	159,000,000	64,000,000
Other liabilities	2,048,000,000	2,143,000,000
U.S. Treasury
Fair value measurements
Securities available for sale	3,429,000,000
Other
Fair value measurements
Securities available for sale	184,000,000
U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale	8,007,000,000
Privately issued
Fair value measurements
Securities available for sale	864,000,000
Collateralized loan obligations
Fair value measurements
Securities available for sale	1,474,000,000
Other
Fair value measurements
Securities available for sale	4,000,000
Direct bank purchase bonds
Fair value measurements
Securities available for sale	1,190,000,000
Level 1
Fair value measurements
Other assets	48,000,000
Other liabilities		0
Level 1 | U.S. Treasury
Fair value measurements
Securities available for sale		0
Trading account liabilities		0
Level 1 | Other
Fair value measurements
Trading account assets		0
Trading account liabilities		0
Level 1 | Corporate bonds
Fair value measurements
Trading account assets		0
Level 1 | Asset-backed securities
Fair value measurements
Trading account assets		0
Level 1 | Mortgage-backed securities
Fair value measurements
Trading account assets		0
Level 1 | Commodity derivative contracts
Fair value measurements
Trading account liabilities		0
Level 1 | Equity derivative contracts
Fair value measurements
Trading account liabilities		7,000,000
Level 1 | U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale		0
Level 1 | Privately issued
Fair value measurements
Securities available for sale		0
Level 1 | Privately issued - commercial mortgage-backed securities
Fair value measurements
Securities available for sale		0
Level 1 | Collateralized loan obligations
Fair value measurements
Securities available for sale		0
Level 1 | Mortgage servicing rights(2)
Fair value measurements
Other assets		0
Level 1 | Interest rate hedging contracts(3)
Fair value measurements
Other assets		0
Level 1 | Other derivative contracts(2)
Fair value measurements
Other assets		0
Other liabilities		0
Level 1 | Corporate bonds
Fair value measurements
Trading account liabilities		0
Level 2
Fair value measurements
Other assets	0
Trading account liabilities		0
Level 2 | Equity derivative contracts
Fair value measurements
Trading account liabilities		0
Level 2 | Mortgage servicing rights(2)
Fair value measurements
Other assets		0
Level 3
Fair value measurements
Other assets	0
Trading account liabilities		0
Other liabilities		0
Level 3 | U.S. Treasury
Fair value measurements
Securities available for sale		0
Trading account liabilities		0
Level 3 | Other
Fair value measurements
Trading account assets		0
Trading account liabilities		0
Level 3 | Corporate bonds
Fair value measurements
Trading account assets		0
Level 3 | Asset-backed securities
Fair value measurements
Trading account assets		0
Level 3 | Mortgage-backed securities
Fair value measurements
Trading account assets		0
Level 3 | Equity securities
Fair value measurements
Trading account assets		0
Level 3 | Interest rate derivative contracts
Fair value measurements
Trading account liabilities		0
Level 3 | U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale		0
Level 3 | Privately issued
Fair value measurements
Securities available for sale		0
Level 3 | Privately issued - commercial mortgage-backed securities
Fair value measurements
Securities available for sale		0
Level 3 | Collateralized loan obligations
Fair value measurements
Securities available for sale		0
Level 3 | Corporate bonds
Fair value measurements
Trading account liabilities		0
Fair Value, Measurements, Recurring
Fair value measurements
Trading account assets	11,213,000,000	10,567,000,000
Netting adjustment	(354,000,000)	(607,000,000)
Securities available for sale	16,314,000,000	17,563,000,000
Other assets	299,000,000	67,000,000
Total assets	$ 27,826,000,000	$ 28,197,000,000
Percentage of total	100.00%	100.00%
Percentage of total	1.00%	2.00%
Percentage of total Company assets	17.00%	18.00%
Percentage of total Company assets	(0.00%)	(0.00%)
Trading account liabilities	$ 4,027,000,000	$ 3,600,000,000
Netting adjustment	(322,000,000)	(620,000,000)
FDIC clawback liability(2)		113,000,000
Other liabilities	121,000,000	119,000,000
Total liabilities	$ 4,148,000,000	$ 3,719,000,000
Percentage of total	100.00%	100.00%
Percentage of total	8.00%	17.00%
Percentage of total Company liabilities	3.00%	3.00%
Percentage of total Company liabilities	(0.00%)	(0.00%)
Fair Value, Measurements, Recurring | U.S. Treasury
Fair value measurements
Trading account assets	$ 2,998,000,000	$ 1,926,000,000
Securities available for sale	3,429,000,000	3,252,000,000
Trading account liabilities	2,753,000,000	2,709,000,000
Fair Value, Measurements, Recurring | U.S. government-sponsored agency securities
Fair value measurements
Trading account assets	73,000,000	118,000,000
Fair Value, Measurements, Recurring | State and municipal securities
Fair value measurements
Trading account assets	10,000,000	11,000,000
Fair Value, Measurements, Recurring | Commercial paper
Fair value measurements
Trading account assets	51,000,000	7,000,000
Trading account liabilities	10,000,000
Fair Value, Measurements, Recurring | Other
Fair value measurements
Trading account assets		8,000,000
Securities available for sale	184,000,000	164,000,000
Trading account liabilities		7,000,000
Fair Value, Measurements, Recurring | Corporate bonds
Fair value measurements
Trading account assets	1,367,000,000	1,054,000,000
Fair Value, Measurements, Recurring | Asset-backed securities
Fair value measurements
Trading account assets	299,000,000	199,000,000
Fair Value, Measurements, Recurring | Mortgage-backed securities
Fair value measurements
Trading account assets	5,785,000,000	6,339,000,000
Fair Value, Measurements, Recurring | Equity securities
Fair value measurements
Trading account assets	127,000,000	193,000,000
Securities available for sale		10,000,000
Trading account liabilities	70,000,000	35,000,000
Fair Value, Measurements, Recurring | Interest rate derivative contracts
Fair value measurements
Trading account assets	401,000,000	525,000,000
Netting adjustment	(130,000,000)	(353,000,000)
Trading account liabilities	338,000,000	264,000,000
Netting adjustment	(262,000,000)	(382,000,000)
Fair Value, Measurements, Recurring | Commodity derivative contracts
Fair value measurements
Trading account assets	1,000,000	1,000,000
Netting adjustment	(24,000,000)	(49,000,000)
Trading account liabilities	14,000,000	13,000,000
Netting adjustment	(4,000,000)	(20,000,000)
Fair Value, Measurements, Recurring | Foreign exchange derivative contracts
Fair value measurements
Trading account assets	90,000,000	182,000,000
Netting adjustment	(170,000,000)	(68,000,000)
Trading account liabilities	112,000,000	80,000,000
Netting adjustment	(56,000,000)	(66,000,000)
Fair Value, Measurements, Recurring | Equity derivative contracts
Fair value measurements
Trading account assets	11,000,000	4,000,000
Netting adjustment	(11,000,000)	(135,000,000)
Trading account liabilities	13,000,000	144,000,000
Netting adjustment	0
Fair Value, Measurements, Recurring | Trading Securities
Fair value measurements
Netting adjustment	(335,000,000)	(605,000,000)
Netting adjustment	(322,000,000)	(468,000,000)
Fair Value, Measurements, Recurring | U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale	8,007,000,000	9,208,000,000
Fair Value, Measurements, Recurring | Privately issued
Fair value measurements
Securities available for sale	864,000,000	694,000,000
Fair Value, Measurements, Recurring | Privately issued - commercial mortgage-backed securities
Fair value measurements
Securities available for sale	1,162,000,000	822,000,000
Fair Value, Measurements, Recurring | Collateralized loan obligations
Fair value measurements
Securities available for sale	1,474,000,000	1,905,000,000
Fair Value, Measurements, Recurring | Other
Fair value measurements
Netting adjustment	(19,000,000)	(2,000,000)
Securities available for sale	4,000,000	5,000,000
Netting adjustment	0	(152,000,000)
Fair Value, Measurements, Recurring | Direct bank purchase bonds
Fair value measurements
Securities available for sale	1,190,000,000	1,503,000,000
Fair Value, Measurements, Recurring | Mortgage servicing rights(2)
Fair value measurements
Other assets	159,000,000	64,000,000
Fair Value, Measurements, Recurring | loans held for sale [Domain]
Fair value measurements
Other assets	117,000,000
Fair Value, Measurements, Recurring | Interest rate hedging contracts(3)
Fair value measurements
Netting adjustment	(3,000,000)	0
Other assets	3,000,000	2,000,000
Netting adjustment		(149,000,000)
Other liabilities		0
Fair Value, Measurements, Recurring | Other derivative contracts(2)
Fair value measurements
Netting adjustment	(16,000,000)	(2,000,000)
Other assets	11,000,000	1,000,000
Netting adjustment	0	(3,000,000)
Other liabilities	5,000,000	6,000,000
Fair Value, Measurements, Recurring | Equity Securities, FV-NI [Member]
Fair value measurements
Netting adjustment	0
Other assets	9,000,000
Fair Value, Measurements, Recurring | Corporate bonds
Fair value measurements
Trading account liabilities	717,000,000	348,000,000
Fair Value, Measurements, Recurring | Level 1
Fair value measurements
Trading account assets	146,000,000	202,000,000
Securities available for sale	0	10,000,000
Other assets	9,000,000
Total assets	$ 155,000,000	$ 212,000,000
Percentage of total	0.00%	1.00%
Percentage of total Company assets	0.00%	0.00%
Trading account liabilities	$ 125,000,000	$ 46,000,000
FDIC clawback liability(2)		0
Total liabilities	$ 125,000,000	$ 46,000,000
Percentage of total	3.00%	1.00%
Percentage of total Company liabilities	0.00%	0.00%
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury
Fair value measurements
Trading account assets	$ 0	$ 0
Securities available for sale	0
Trading account liabilities	0
Fair Value, Measurements, Recurring | Level 1 | U.S. government-sponsored agency securities
Fair value measurements
Trading account assets	0	0
Fair Value, Measurements, Recurring | Level 1 | State and municipal securities
Fair value measurements
Trading account assets	0	0
Fair Value, Measurements, Recurring | Level 1 | Commercial paper
Fair value measurements
Trading account assets	0	0
Fair Value, Measurements, Recurring | Level 1 | Other
Fair value measurements
Securities available for sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Corporate bonds
Fair value measurements
Trading account assets	0
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities
Fair value measurements
Trading account assets	0
Fair Value, Measurements, Recurring | Level 1 | Mortgage-backed securities
Fair value measurements
Trading account assets	0
Fair Value, Measurements, Recurring | Level 1 | Equity securities
Fair value measurements
Trading account assets	127,000,000	193,000,000
Securities available for sale		10,000,000
Trading account liabilities	70,000,000	35,000,000
Fair Value, Measurements, Recurring | Level 1 | Interest rate derivative contracts
Fair value measurements
Trading account assets	9,000,000	7,000,000
Trading account liabilities	55,000,000	3,000,000
Fair Value, Measurements, Recurring | Level 1 | Commodity derivative contracts
Fair value measurements
Trading account assets	0	0
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange derivative contracts
Fair value measurements
Trading account assets	1,000,000	0
Trading account liabilities	0	1,000,000
Fair Value, Measurements, Recurring | Level 1 | Equity derivative contracts
Fair value measurements
Trading account assets	9,000,000	2,000,000
Trading account liabilities	0
Fair Value, Measurements, Recurring | Level 1 | U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale	0
Fair Value, Measurements, Recurring | Level 1 | Privately issued
Fair value measurements
Securities available for sale	0
Fair Value, Measurements, Recurring | Level 1 | Privately issued - commercial mortgage-backed securities
Fair value measurements
Securities available for sale	0
Fair Value, Measurements, Recurring | Level 1 | Collateralized loan obligations
Fair value measurements
Securities available for sale	0
Fair Value, Measurements, Recurring | Level 1 | Other
Fair value measurements
Securities available for sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Direct bank purchase bonds
Fair value measurements
Securities available for sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Mortgage servicing rights(2)
Fair value measurements
Other assets	0
Fair Value, Measurements, Recurring | Level 1 | loans held for sale [Domain]
Fair value measurements
Other assets	0
Fair Value, Measurements, Recurring | Level 1 | Interest rate hedging contracts(3)
Fair value measurements
Other assets	0
Fair Value, Measurements, Recurring | Level 1 | Other derivative contracts(2)
Fair value measurements
Other assets	0
Fair Value, Measurements, Recurring | Level 1 | Equity Securities, FV-NI [Member]
Fair value measurements
Other assets	9,000,000
Fair Value, Measurements, Recurring | Level 1 | Corporate bonds
Fair value measurements
Trading account liabilities	0
Fair Value, Measurements, Recurring | Level 2
Fair value measurements
Trading account assets	11,389,000,000	10,831,000,000
Securities available for sale	14,983,000,000	15,954,000,000
Other assets	32,000,000	4,000,000
Total assets	$ 26,404,000,000	$ 26,789,000,000
Percentage of total	95.00%	95.00%
Percentage of total Company assets	16.00%	17.00%
Trading account liabilities	$ 4,211,000,000	$ 3,884,000,000
FDIC clawback liability(2)		0
Other liabilities	3,000,000	152,000,000
Total liabilities	$ 4,214,000,000	$ 4,036,000,000
Percentage of total	102.00%	109.00%
Percentage of total Company liabilities	3.00%	3.00%
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury
Fair value measurements
Trading account assets	$ 2,998,000,000	$ 1,926,000,000
Securities available for sale	3,429,000,000	3,252,000,000
Trading account liabilities	2,753,000,000	2,709,000,000
Fair Value, Measurements, Recurring | Level 2 | U.S. government-sponsored agency securities
Fair value measurements
Trading account assets	73,000,000	118,000,000
Fair Value, Measurements, Recurring | Level 2 | State and municipal securities
Fair value measurements
Trading account assets	10,000,000	11,000,000
Fair Value, Measurements, Recurring | Level 2 | Commercial paper
Fair value measurements
Trading account assets	51,000,000	7,000,000
Trading account liabilities	10,000,000
Fair Value, Measurements, Recurring | Level 2 | Other
Fair value measurements
Trading account assets		8,000,000
Securities available for sale	43,000,000	68,000,000
Trading account liabilities		7,000,000
Fair Value, Measurements, Recurring | Level 2 | Corporate bonds
Fair value measurements
Trading account assets	1,367,000,000	1,054,000,000
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities
Fair value measurements
Trading account assets	299,000,000	199,000,000
Fair Value, Measurements, Recurring | Level 2 | Mortgage-backed securities
Fair value measurements
Trading account assets	5,785,000,000	6,339,000,000
Fair Value, Measurements, Recurring | Level 2 | Equity securities
Fair value measurements
Trading account assets	0
Securities available for sale		0
Fair Value, Measurements, Recurring | Level 2 | Interest rate derivative contracts
Fair value measurements
Trading account assets	522,000,000	870,000,000
Trading account liabilities	545,000,000	643,000,000
Fair Value, Measurements, Recurring | Level 2 | Commodity derivative contracts
Fair value measurements
Trading account assets	25,000,000	50,000,000
Trading account liabilities	18,000,000	33,000,000
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange derivative contracts
Fair value measurements
Trading account assets	259,000,000	249,000,000
Trading account liabilities	168,000,000	144,000,000
Fair Value, Measurements, Recurring | Level 2 | Equity derivative contracts
Fair value measurements
Trading account assets	0	0
Fair Value, Measurements, Recurring | Level 2 | U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale	8,007,000,000	9,208,000,000
Fair Value, Measurements, Recurring | Level 2 | Privately issued
Fair value measurements
Securities available for sale	864,000,000	694,000,000
Fair Value, Measurements, Recurring | Level 2 | Privately issued - commercial mortgage-backed securities
Fair value measurements
Securities available for sale	1,162,000,000	822,000,000
Fair Value, Measurements, Recurring | Level 2 | Collateralized loan obligations
Fair value measurements
Securities available for sale	1,474,000,000	1,905,000,000
Fair Value, Measurements, Recurring | Level 2 | Other
Fair value measurements
Securities available for sale	4,000,000	5,000,000
Fair Value, Measurements, Recurring | Level 2 | Direct bank purchase bonds
Fair value measurements
Securities available for sale	0	0
Fair Value, Measurements, Recurring | Level 2 | Mortgage servicing rights(2)
Fair value measurements
Other assets	0
Fair Value, Measurements, Recurring | Level 2 | loans held for sale [Domain]
Fair value measurements
Other assets	0
Fair Value, Measurements, Recurring | Level 2 | Interest rate hedging contracts(3)
Fair value measurements
Other assets	6,000,000	2,000,000
Other liabilities		149,000,000
Fair Value, Measurements, Recurring | Level 2 | Other derivative contracts(2)
Fair value measurements
Other assets	26,000,000	2,000,000
Other liabilities	3,000,000	3,000,000
Fair Value, Measurements, Recurring | Level 2 | Equity Securities, FV-NI [Member]
Fair value measurements
Other assets	0
Fair Value, Measurements, Recurring | Level 2 | Corporate bonds
Fair value measurements
Trading account liabilities	717,000,000	348,000,000
Fair Value, Measurements, Recurring | Level 3
Fair value measurements
Trading account assets	13,000,000	139,000,000
Securities available for sale	1,331,000,000	1,599,000,000
Other assets	277,000,000	65,000,000
Total assets	$ 1,621,000,000	$ 1,803,000,000
Percentage of total	6.00%	6.00%
Percentage of total Company assets	1.00%	1.00%
Trading account liabilities	$ 13,000,000	$ 138,000,000
FDIC clawback liability(2)		113,000,000
Other liabilities	118,000,000	119,000,000
Total liabilities	$ 131,000,000	$ 257,000,000
Percentage of total	3.00%	7.00%
Percentage of total Company liabilities	0.00%	0.00%
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury
Fair value measurements
Trading account assets	$ 0	$ 0
Securities available for sale	0
Fair Value, Measurements, Recurring | Level 3 | U.S. government-sponsored agency securities
Fair value measurements
Trading account assets	0	0
Fair Value, Measurements, Recurring | Level 3 | State and municipal securities
Fair value measurements
Trading account assets	0	0
Fair Value, Measurements, Recurring | Level 3 | Commercial paper
Fair value measurements
Trading account assets	0	0
Fair Value, Measurements, Recurring | Level 3 | Other
Fair value measurements
Securities available for sale	141,000,000	96,000,000
Fair Value, Measurements, Recurring | Level 3 | Corporate bonds
Fair value measurements
Trading account assets	0
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities
Fair value measurements
Trading account assets	0
Fair Value, Measurements, Recurring | Level 3 | Mortgage-backed securities
Fair value measurements
Trading account assets	0
Fair Value, Measurements, Recurring | Level 3 | Equity securities
Fair value measurements
Trading account assets	0
Securities available for sale		0
Fair Value, Measurements, Recurring | Level 3 | Interest rate derivative contracts
Fair value measurements
Trading account assets	0	1,000,000
Fair Value, Measurements, Recurring | Level 3 | Commodity derivative contracts
Fair value measurements
Trading account assets	0	0
Trading account liabilities	0	0
Fair Value, Measurements, Recurring | Level 3 | Foreign exchange derivative contracts
Fair value measurements
Trading account assets	0	1,000,000
Trading account liabilities	0	1,000,000
Fair Value, Measurements, Recurring | Level 3 | Equity derivative contracts
Fair value measurements
Trading account assets	13,000,000	137,000,000
Trading account liabilities	13,000,000	137,000,000
Fair Value, Measurements, Recurring | Level 3 | Fdic
Fair value measurements
Other liabilities	116,000,000
Fair Value, Measurements, Recurring | Level 3 | U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale	0
Fair Value, Measurements, Recurring | Level 3 | Privately issued
Fair value measurements
Securities available for sale	0
Fair Value, Measurements, Recurring | Level 3 | Privately issued - commercial mortgage-backed securities
Fair value measurements
Securities available for sale	0
Fair Value, Measurements, Recurring | Level 3 | Collateralized loan obligations
Fair value measurements
Securities available for sale	0
Fair Value, Measurements, Recurring | Level 3 | Other
Fair value measurements
Securities available for sale	0	0
Fair Value, Measurements, Recurring | Level 3 | Direct bank purchase bonds
Fair value measurements
Securities available for sale	1,190,000,000	1,503,000,000
Fair Value, Measurements, Recurring | Level 3 | loans held for sale [Domain]
Fair value measurements
Other assets	117,000,000
Fair Value, Measurements, Recurring | Level 3 | Interest rate hedging contracts(3)
Fair value measurements
Other assets	0	0
Fair Value, Measurements, Recurring | Level 3 | Other derivative contracts(2)
Fair value measurements
Other assets	1,000,000	1,000,000
Other liabilities	2,000,000	$ 6,000,000
Fair Value, Measurements, Recurring | Level 3 | Equity Securities, FV-NI [Member]
Fair value measurements
Other assets	0
Fdic | Fair Value, Measurements, Recurring
Fair value measurements
Other liabilities	$ 116,000,000

XML

Fair Value Measurement and Fair Value of Financial Instruments - Reconciliation of Assets and Liabilities on a Recurring Basis (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Trading Assets
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Asset balance, beginning of period	$ 139	$ 168
Total gains (losses) (realized/unrealized) included in income before taxes, assets	(10)	73
Settlements, assets	(116)	(102)
Asset balance, end of period	13	139
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, assets	(10)	73
Securities Available for Sale
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Asset balance, beginning of period	1,600	1,638
Total gains (losses) (realized/unrealized) included in other comprehensive income, assets	(9)	(3)
Purchases/additions, assets	126	83
Settlements, assets	(386)	(118)
Asset balance, end of period	1,331	1,600
Other Assets
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Asset balance, beginning of period	65	24
Total gains (losses) (realized/unrealized) included in income before taxes, assets	(8)	(3)
Purchases/additions, assets	220	44
Transfers into level 3, assets	0
Asset balance, end of period	277	65
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, assets	(8)	(3)
Trading Liabilities
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability balance, beginning of period	(138)	(166)
Total gains (losses) (realized/unrealized) included in income before taxes, assets, liability	9	(72)
Settlements, liabilities	116	100
Liability balance, end of period	(13)	(138)
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, liabilities	9	(72)
Other Liabilities
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability balance, beginning of period	(119)	(121)
Total gains (losses) (realized/unrealized) included in income before taxes, assets, liability	1	2
Liability balance, end of period	(118)	(119)
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, liabilities	1	$ 2
Fair Value, Measurements, Nonrecurring [Member]
Reconciliation of assets measured using significant unobservable inputs
Renewable energy investments	11
Fair Value, Measurements, Nonrecurring [Member] | Level 3
Reconciliation of assets measured using significant unobservable inputs
Renewable energy investments	$ 11

XML

Fair Value Measurement and Fair Value of Financial Instruments - Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Significant unobservable inputs, Level 3 assets
Available-for-sale Securities	$ 16,314	$ 17,563
Direct bank purchase bonds	16,314
Direct bank purchase bonds
Significant unobservable inputs, Level 3 assets
Available-for-sale Securities	1,190	1,503
Direct bank purchase bonds	$ 1,190
Direct bank purchase bonds | Minimum | Return on equity
Significant unobservable inputs, Level 3 assets
Market-required return on capital	8.00%
Probability of default	0.00%
Loss severity	10.00%
Direct bank purchase bonds | Maximum | Return on equity
Significant unobservable inputs, Level 3 assets
Market-required return on capital	10.00%
Probability of default	25.00%
Loss severity	60.00%
Direct bank purchase bonds | Weighted Average | Return on equity
Significant unobservable inputs, Level 3 assets
Market-required return on capital	9.50%
Probability of default	0.30%
Loss severity	22.40%
Level 3 | Direct bank purchase bonds
Significant unobservable inputs, Level 3 assets
Available-for-sale Securities	$ 1,190
Fair Value, Measurements, Recurring
Significant unobservable inputs, Level 3 assets
Direct bank purchase bonds	16,314	17,563
Fair Value, Measurements, Recurring | Direct bank purchase bonds
Significant unobservable inputs, Level 3 assets
Direct bank purchase bonds	1,190	1,503
Fair Value, Measurements, Recurring | Level 3
Significant unobservable inputs, Level 3 assets
Direct bank purchase bonds	1,331	1,599
Fair Value, Measurements, Recurring | Level 3 | Direct bank purchase bonds
Significant unobservable inputs, Level 3 assets
Direct bank purchase bonds	$ 1,190	$ 1,503

XML

Fair Value Measurement and Fair Value of Financial Instruments - Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Loans:
Impaired loans	$ 730	$ 865
Impaired loans, gain (loss)	106	34
Other assets:
Loans held for sale	0	0
Loans held for sale, gain (loss)	29	3
OREO	1	0
Private equity investments, gain (loss)	2
Renewable energy investments, gain (loss)	(2)	2
Software		0
Software, gain (loss)	4	22
Consolidated LIHC VIE		0
Consolidated LIHC VIE, gain (loss)	8	21
Total, gain (loss)	(151)	(78)
Level 2
Loans:
Impaired loans		0
Other assets:
Total	0	0
Level 1
Loans:
Impaired loans		0
Other assets:
Total	0	0
Fair Value, Measurements, Nonrecurring [Member]
Loans:
Impaired loans	151	79
Other assets:
Loans held for sale	85	0
Renewable energy investments	11
Renewable Energy Investment	0	0
Software	0	0
Consolidated LIHC VIE	43	66
Total	290	145
Fair Value, Measurements, Nonrecurring [Member] | Level 3
Loans:
Impaired loans	151	79
Other assets:
Loans held for sale	85	0
Renewable energy investments	11
Renewable Energy Investment	0	0
Software	0	0
Consolidated LIHC VIE	43	66
Total	290	145
Fair Value, Measurements, Nonrecurring [Member] | Level 2
Loans:
Impaired loans	0
Other assets:
Renewable energy investments	0
Renewable Energy Investment	0	0
Software	0
Consolidated LIHC VIE	0
Fair Value, Measurements, Nonrecurring [Member] | Level 1
Loans:
Impaired loans	0
Other assets:
Renewable energy investments	0
Renewable Energy Investment	0	$ 0
Software	0
Consolidated LIHC VIE	$ 0

XML

Fair Value Measurement and Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Assets
Securities borrowed or purchased under resale agreements	$ 22,368	$ 20,894
Securities held to maturity	10,720	9,799
Liabilities
Securities loaned or sold under repurchase agreements	27,285	26,437
Level 1
Assets
Cash and cash equivalents	8,350	3,392
Securities borrowed or purchased under resale agreements	0	0
Securities held to maturity	0	0
Loans held for investment	0	0
Other assets	48
Liabilities
Time deposits	0	0
Securities loaned or sold under repurchase agreements	0	0
Commercial paper and other short-term borrowings	0	0
Long-term debt	0	0
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	0	0
Level 2
Assets
Cash and cash equivalents	0	0
Securities borrowed or purchased under resale agreements	22,368	20,894
Securities held to maturity	10,720	9,799
Loans held for investment	0	0
Other assets	0
Liabilities
Time deposits	11,714	84,743
Securities loaned or sold under repurchase agreements	27,285	26,437
Commercial paper and other short-term borrowings	9,263	7,066
Long-term debt	17,961	12,162
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	0	0
Level 3
Assets
Cash and cash equivalents	0	0
Securities borrowed or purchased under resale agreements	0	0
Securities held to maturity	0	0
Loans held for investment	84,729	79,051
Other assets	0
Liabilities
Time deposits	0	0
Securities loaned or sold under repurchase agreements	0	0
Commercial paper and other short-term borrowings	0	0
Long-term debt	0	0
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	242	174
Carrying Amount
Assets
Cash and cash equivalents	8,350	3,392
Securities borrowed or purchased under resale agreements	22,368	20,894
Securities held to maturity	10,901	9,885
Loans held for investment	84,805	78,023
Other assets	48
Liabilities
Time deposits	11,739	84,787
Securities loaned or sold under repurchase agreements	27,285	26,437
Commercial paper and other short-term borrowings	9,263	7,066
Long-term debt	17,918	12,162
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	120	174
Fair Value
Assets
Cash and cash equivalents	8,350	3,392
Securities borrowed or purchased under resale agreements	22,368	20,894
Securities held to maturity	10,720	9,799
Loans held for investment	84,729	79,051
Other assets	48
Liabilities
Time deposits	11,714	84,743
Securities loaned or sold under repurchase agreements	27,285	26,437
Commercial paper and other short-term borrowings	9,263	7,066
Long-term debt	17,961	12,162
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$ 242	$ 174

XML

Derivative Instruments and Other Financial Instruments Used For Hedging - Notional and Fair Value Amounts (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments and Other Financial Instruments
Notional Amount	$ 201,094	$ 150,854
Fair Value, Asset Derivatives	871	1,322
Fair Value, Liability Derivatives	804	1,127
Interest rate contracts | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Notional Amount	189,478	132,214
Fair Value, Asset Derivatives	531	878
Fair Value, Liability Derivatives	600	646
Interest rate contracts | Cash flow hedges | Designated as hedging instrument
Derivative Instruments and Other Financial Instruments
Notional Amount	674	6,998
Fair Value, Asset Derivatives	6	2
Fair Value, Liability Derivatives	0	149
Interest rate contracts | Fair value hedges | Designated as hedging instrument
Derivative Instruments and Other Financial Instruments
Notional Amount	0	500
Fair Value, Asset Derivatives	0	0
Fair Value, Liability Derivatives	0	0
Commodity contracts | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Notional Amount	336	1,244
Fair Value, Asset Derivatives	25	50
Fair Value, Liability Derivatives	18	33
Foreign exchange contracts | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Notional Amount	8,475	7,053
Fair Value, Asset Derivatives	260	250
Fair Value, Liability Derivatives	168	146
Equity contracts | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Notional Amount	300	1,496
Fair Value, Asset Derivatives	22	139
Fair Value, Liability Derivatives	13	144
Other derivative contracts(2) | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Notional Amount	127	4
Fair Value, Asset Derivatives	0	0
Fair Value, Liability Derivatives	0	0
Trading | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Notional Amount	198,716	142,011
Fair Value, Asset Derivatives	838	1,317
Fair Value, Liability Derivatives	799	969
Other risk management | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Notional Amount	1,704	1,345
Fair Value, Asset Derivatives	27	3
Fair Value, Liability Derivatives	5	9
MUSA and Various other Non-Bank Subsidiaries
Derivative Instruments and Other Financial Instruments
Notional Amount	$ 3,600	$ 3,000

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Derivative Instruments and Other Financial Instruments Used For Hedging - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flow hedges
Notional amount	$ 201,094	$ 150,854
Income from accumulated other comprehensive income expected to be reclassified to net interest income	$ 89
Cash flow hedges
Cash flow hedges
Weighted average remaining life of the currently active cash flow hedges	2 years 7 months 6 days
Other risk management | Not designated as hedging instruments
Cash flow hedges
Net gain (losses) on derivatives included in other noninterest income	$ (4)	(17)	$ (19)
Notional amount	1,704	1,345
ERROR in label resolution. | Designated as hedging instrument | Cash flow hedges | LIBOR indexed loans
Cash flow hedges
Notional amount	200
Interest Rate Floor [Member] | Designated as hedging instrument | Cash flow hedges | LIBOR indexed loans
Cash flow hedges
Notional amount	500
MUSA and Various other Non-Bank Subsidiaries
Cash flow hedges
Notional amount	$ 3,600	$ 3,000

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Derivative Instruments and Other Financial Instruments Used For Hedging - Derivatives Designated as Cash Flow Hedges (Details) - Designated as hedging instrument - Cash flow hedges - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Amount and location of net gains and losses
Gains (Losses) Recognized in OCI (Effective Portion)	$ (96)	$ (35)	$ (26)
Gains (Losses) Reclassified from AOCI into Income (Effective Portion)	(34)	69	167
Gains (Losses) Recognized in Income (Ineffective Portion)	(1)	3	0
Interest rate contracts
Amount and location of net gains and losses
Gains (Losses) Recognized in OCI (Effective Portion)	(96)	(35)	(26)
Interest rate contracts | Interest income
Amount and location of net gains and losses
Gains (Losses) Reclassified from AOCI into Income (Effective Portion)	(34)	69	170
Interest rate contracts | Interest expense
Amount and location of net gains and losses
Gains (Losses) Reclassified from AOCI into Income (Effective Portion)	0	0	(3)
Interest rate contracts | Noninterest expense
Amount and location of net gains and losses
Gains (Losses) Recognized in Income (Ineffective Portion)	$ (1)	$ 3	$ 0

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Derivative Instruments and Other Financial Instruments Used For Hedging - Amount of Net Gains (Losses) for Derivatives Classified as Trading (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Trading Derivatives
Trading Derivatives
Gains (Losses) Recognized in Income on Trading Derivatives	$ 175	$ 7	$ 218
Trading Derivatives | Interest rate contracts
Trading Derivatives
Gains (Losses) Recognized in Income on Trading Derivatives	95	(49)	137
Trading Derivatives | Equity contracts
Trading Derivatives
Gains (Losses) Recognized in Income on Trading Derivatives	36	12	40
Trading Derivatives | Foreign exchange contracts
Trading Derivatives
Gains (Losses) Recognized in Income on Trading Derivatives	44	43	39
Trading Derivatives | Commodity contracts
Trading Derivatives
Gains (Losses) Recognized in Income on Trading Derivatives	0	1	2
Fair Value Hedging | Designated as hedging instrument
Trading Derivatives
Derivative Instrument	(2)	(4)	(2)
Hedged Item	2	3	2
Hedge Ineffectiveness	0	(1)	0
Fair Value Hedging | Designated as hedging instrument | Interest rate contracts
Trading Derivatives
Derivative Instrument	(2)	(4)	(2)
Hedged Item	2	3	2
Hedge Ineffectiveness	$ 0	$ (1)	$ 0

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Accumulated Other Comprehensive Income - AOCI and Related Tax Effect (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Change in accumulated other comprehensive loss balances:
Other Comprehensive Income Other, Net of Tax, Portion Attributable to Parent	$ (1)	$ 0	$ 0
Before Tax Amount
Net change	(432)	91	(243)
Tax Effect
Net change	113	(39)	97
Net of Tax
Net change	(319)	52	(146)
Other Comprehensive Income Other Before Tax	(1)
Other Comprehensive Income Other Tax	0
Net Unrealized Gains (Losses) on Cash Flow Hedges
Before Tax Amount
Other comprehensive income before reclassifications	(96)	(35)	(26)
Reclassifications	34	(69)	(167)
Net change	(62)	(104)	(193)
Tax Effect
Other comprehensive income before reclassifications	25	13	10
Reclassifications	(9)	25	68
Net change	16	38	78
Net of Tax
Other comprehensive income before reclassifications	(71)	(22)	(16)
Amounts reclassified from AOCI	25	(44)	(99)
Net change	(46)	(66)	(115)
Net Unrealized Gains (Losses) on Securities
Before Tax Amount
Net change	(190)	25	(90)
Tax Effect
Net change	50	(9)	34
Net of Tax
Other comprehensive income before reclassifications	(155)	15	(14)
Amounts reclassified from AOCI	15	1	(42)
Net change	(140)	16	(56)
Unrealized holding gains (losses) arising during the period on securities available for sale
Before Tax Amount
Other comprehensive income before reclassifications	(210)	24	(40)
Reclassifications	(8)	(17)	(69)
Tax Effect
Other comprehensive income before reclassifications	55	(9)	15
Reclassifications	2	7	27
Net of Tax
Other comprehensive income before reclassifications	(155)	15	(25)
Amounts reclassified from AOCI	(6)	(10)	(42)
Accretion of fair value adjustment on securities available for sale
Before Tax Amount
Other comprehensive income before reclassifications		(1)	(1)
Tax Effect
Other comprehensive income before reclassifications		0	0
Net of Tax
Other comprehensive income before reclassifications		(1)	(1)
Amortization of net unrealized (gains) losses on held to maturity securities
Before Tax Amount
Reclassifications	28	19	20
Tax Effect
Reclassifications	(7)	(7)	(8)
Net of Tax
Amounts reclassified from AOCI	21	12	12
Foreign Currency Translation Adjustment
Before Tax Amount
Net change	(3)	11	3
Tax Effect
Net change	1	(4)	(1)
Net of Tax
Other comprehensive income before reclassifications		7	2
Amounts reclassified from AOCI	0	0	0
Net change	(2)	7	2
Pension and Other Benefits Adjustment
Before Tax Amount
Net change	(176)	159	37
Tax Effect
Net change	46	(64)	(14)
Net of Tax
Other comprehensive income before reclassifications	(171)	69	(12)
Amounts reclassified from AOCI	41	26	35
Net change	(130)	95	23
Amortization of prior service credit
Before Tax Amount
Other comprehensive income before reclassifications	(41)	(48)	(30)
Tax Effect
Other comprehensive income before reclassifications	11	19	12
Net of Tax
Other comprehensive income before reclassifications	(30)	(29)	(18)
Recognized net actuarial gain (loss)
Before Tax Amount
Other comprehensive income before reclassifications	96	91	89
Tax Effect
Other comprehensive income before reclassifications	(25)	(36)	(35)
Net of Tax
Other comprehensive income before reclassifications	71	55	54
Pension and other benefits arising during the year
Before Tax Amount
Other comprehensive income before reclassifications	(231)	116	(20)
Tax Effect
Other comprehensive income before reclassifications	60	(47)	8
Net of Tax
Other comprehensive income before reclassifications	(171)	69	(12)
Net change
Before Tax Amount
Other comprehensive income before reclassifications			(2)
Tax Effect
Other comprehensive income before reclassifications			1
Net of Tax
Other comprehensive income before reclassifications			(1)
Accumulated Other Comprehensive Income (Loss)
Net of Tax
Other comprehensive income before reclassifications	(400)	69	(40)
Amounts reclassified from AOCI	81	(17)	(106)
Net change	$ (319)	$ 52	$ (146)

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Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Loss Balances (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 18,355	$ 17,386	$ 16,593
Other Comprehensive Income (Loss), Net of Tax	(319)	52	(146)
Ending balance	16,580	18,355	17,386
Net Unrealized Gains (Losses) on Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(174)	(77)	38
Other comprehensive income before reclassifications	(71)	(22)	(16)
Other Comprehensive Income (Loss), Net of Tax	(46)	(66)	(115)
Amounts reclassified from AOCI	25	(44)	(99)
Ending balance	(220)	(174)	(77)
Subtotal Before Tax Cut Jobs Act Reclassification		(143)
TaxCutsandJobsActReclassification		(31)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	0
Accumulated Net Investment Gain (Loss) Arising During the Period, Attributable to Parent [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income before reclassifications	(155)	15	(25)
Amounts reclassified from AOCI	(6)	(10)	(42)
TaxCutsandJobsActReclassification		(41)
Net Unrealized Gains (Losses) on Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(233)	(208)	(152)
Other comprehensive income before reclassifications	(155)	15	(14)
Other Comprehensive Income (Loss), Net of Tax	(140)	16	(56)
Amounts reclassified from AOCI	15	1	(42)
Ending balance	(373)	(233)	(208)
Subtotal Before Tax Cut Jobs Act Reclassification		(192)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	0
Foreign Currency Translation Adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(19)	(22)	(24)
Other comprehensive income before reclassifications		7	2
Other Comprehensive Income (Loss), Net of Tax	(2)	7	2
Amounts reclassified from AOCI	0	0	0
Ending balance	0	(19)	(22)
Subtotal Before Tax Cut Jobs Act Reclassification		(15)
TaxCutsandJobsActReclassification		(4)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	21
Pension and Other Benefits Adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(600)	(589)	(612)
Other comprehensive income before reclassifications	(171)	69	(12)
Other Comprehensive Income (Loss), Net of Tax	(130)	95	23
Amounts reclassified from AOCI	41	26	35
Ending balance	(730)	(600)	(589)
Subtotal Before Tax Cut Jobs Act Reclassification		(494)
TaxCutsandJobsActReclassification		(106)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	0
Accumulated Other [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income before reclassifications	(1)
Amounts reclassified from AOCI	0
Ending balance	(1)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	0
Accumulated Other Comprehensive Income (Loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(1,026)	(896)	(750)
Other comprehensive income before reclassifications	(400)	69	(40)
Other Comprehensive Income (Loss), Net of Tax	(319)	52	(146)
Amounts reclassified from AOCI	81	(17)	(106)
Ending balance	(1,324)	(1,026)	$ (896)
Subtotal Before Tax Cut Jobs Act Reclassification		(844)
TaxCutsandJobsActReclassification		$ (182)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	$ 21

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Management Stock Plans - Bonus Stock Plans (Details) - Stock Bonus Plans - Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Management Stock Plans
Service Period for Grants Issued Weighted Average	3 years
Units Granted (in shares)	14,667,730
Fair Value of Stock (in usd per share)	$ 5.89	$ 6.53	$ 4.63

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Management Stock Plans - Rollforward of RSUs under Stock Bonus Plan (Details) - Stock Bonus Plans - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Restricted Stock Units rollforward
Units outstanding, beginning of year	27,838,414
Granted	14,667,730
Vested	(13,198,540)
Forfeited	(864,534)
Units outstanding, end of year	28,443,070	27,838,414
Weighted-Average Grant Date Fair Value
Units outstanding, beginning of year (in usd per share)	$ 5.86
Granted (in usd per share)	5.89	$ 6.53	$ 4.63
Vested (in usd per share)	5.88
Forfeited (in usd per share)	5.97
Units outstanding, end of year (in usd per share)	$ 5.86	$ 5.86
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 78	$ 75	$ 49

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Management Stock Plans - Compensation Costs, Tax Benefit and Unrecognized Compensation Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Compensation costs	$ 77	$ 66	$ 67
Tax benefit	20	26	26
Unrecognized compensation costs	$ 110	$ 111	$ 96
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 4 months 24 days

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Employee Pension and Other Postretirement Benefits - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension Plan and Other Postretirement Benefits Plan
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 16,580	$ 18,355	$ 17,386	$ 16,593
Amortization period of net actuarial losses		8 years
Excess of market value of plan assets		$ 214
Assetsmoothingperiodofnonamortizing amount		4 years
Employee pre-tax covered compensation percent		75.00%
Employee after-tax covered compensation percent		10.00%
Combined maximum employee contribution percent		75.00%
Employee pre-tax gross pay for which the employer contributes a match		4.00%
Contribution plan expenses		$ 59	55	48
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Pension and other benefits adjustment, Gross		$ 910	753
Service Period required for eligibility		1 year
Service Period required for vesting		3 years
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax, Subject to Amortization		$ (447)
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year		(62)
Net periodic benefit cost		$ (27)	$ (31)	16
Expected return on plan assets		8.00%	8.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase		5.00%	5.00%
Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Pension and other benefits adjustment, Gross		$ 50	$ 22
Net periodic benefit cost		$ (19)	$ (18)	(4)
Expected return on plan assets		8.00%	8.00%
Executive Supplemental Benefits Pension Plan
Pension Plan and Other Postretirement Benefits Plan
Accrued liability for ESBPs		$ 89	$ 98
Pension and other benefits adjustment, Gross		$ 32	$ 40
Equity securities | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation		53.00%	63.00%
Equity securities | Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation		70.00%
Debt Securities | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation		35.00%	25.00%
Debt Securities | Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation		30.00%
Real estate | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation		12.00%	12.00%
Minimum | Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Defined Benefit Plan Future Cost Sharing Percentage		25.00%
Maximum | Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Defined Benefit Plan Future Cost Sharing Percentage		50.00%
Recognized net actuarial gain (loss) | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 1,036	$ 905	1,085	1,027
Recognized net actuarial gain (loss) | Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		64	51	78	82
Amortization of prior service credit | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(126)	(152)	(179)	(121)
Amortization of prior service credit | Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ (14)	$ (29)	$ (50)	$ (15)
Forecast | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Net periodic benefit cost	$ 27
Assumptions used to calculate net periodic benefit cost, service cost rate	4.19%
Defined benefit plan, assumptions used calculating net periodic benefit cost, interest cost	3.90%
Expected return on plan assets	7.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	5.10%
Effect of 50 basis point increase on discount rate	$ 25
Effect of 50 basis point increase on expected rate of return	18
Effect of 50 basis point increase on future compensation levels	1
Effect of 50 basis point decrease on discount rate	27
Effect of 50 basis point decrease on expected rate of return on plan assets	18
Effect of 50 basis point decrease on future compensation levels	$ 1
Matching Range 1
Pension Plan and Other Postretirement Benefits Plan
Company pre-tax compensation match		100.00%
Employee pre-tax gross pay for which the employer contributes a match		3.00%
Matching Range 2
Pension Plan and Other Postretirement Benefits Plan
Company pre-tax compensation match		50.00%
Employee pre-tax gross pay for which the employer contributes a match		2.00%

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Employee Pension and Other Postretirement Benefits - Plan Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Pension Benefits
Change in fair value of plan assets
Fair value of plan assets, beginning of year	$ 3,854	$ 3,254
Actual return on plan assets	(196)	608
Employer contributions	0	115
Plan participants' contributions	0	0
Benefits paid	(129)	(123)
Fair value of plan assets, end of year	$ 3,529	$ 3,854
Pension Benefits | Equity securities
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation	53.00%	63.00%
Pension Benefits | Debt Securities
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation	35.00%	25.00%
Pension Benefits | Real estate
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation	12.00%	12.00%
Other Benefits
Change in fair value of plan assets
Fair value of plan assets, beginning of year	$ 288	$ 260
Actual return on plan assets	(18)	44
Employer contributions	0	1
Plan participants' contributions	4	4
Benefits paid	(19)	(21)
Fair value of plan assets, end of year	$ 255	$ 288
Other Benefits | Equity securities
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation	70.00%
Other Benefits | Debt Securities
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation	30.00%

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Employee Pension and Other Postretirement Benefits - Fair Value Hierarchy of Assets (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	$ 2,099	$ 2,136
Investments measured at net asset value	1,420	1,704
Investments at fair value	3,519	3,840
Accrued dividends and interest receivable	12	8
Net pending trades	(2)	6
Total plan assets	3,529	3,854	$ 3,254
Pension Benefits | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	805	1,216
Pension Benefits | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	1,294	920
Pension Benefits | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | Cash and cash equivalents
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	25	26
Pension Benefits | Cash and cash equivalents | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | Cash and cash equivalents | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	25	26
Pension Benefits | Cash and cash equivalents | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | U.S. Government securities
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	382	195
Pension Benefits | U.S. Government securities | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | U.S. Government securities | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	382	195
Pension Benefits | U.S. Government securities | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | Corporate bonds
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	824	638
Pension Benefits | Corporate bonds | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | Corporate bonds | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	824	638
Pension Benefits | Corporate bonds | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | Equity securities
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	191	388
Pension Benefits | Equity securities | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	185	381
Pension Benefits | Equity securities | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	6	7
Pension Benefits | Equity securities | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | Mutual funds
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	620	830
Pension Benefits | Mutual funds | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	620	830
Pension Benefits | Mutual funds | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | Mutual funds | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | Municipal bonds
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	37	43
Pension Benefits | Municipal bonds | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | Municipal bonds | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	37	43
Pension Benefits | Municipal bonds | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | Other
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	20	16
Pension Benefits | Other | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	5
Pension Benefits | Other | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	20	11
Pension Benefits | Other | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	124	143
Investments measured at net asset value	134	157
Investments at fair value	258	300
Net pending trades	(3)	(12)
Total plan assets	255	288	260
Other Benefits | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	54	66
Other Benefits | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	70	77
Other Benefits | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits | Cash and cash equivalents
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy			3
Investments at fair value	1
Other Benefits | Cash and cash equivalents | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy		0
Other Benefits | Cash and cash equivalents | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy		3
Investments at fair value	1
Other Benefits | Cash and cash equivalents | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy		0
Other Benefits | U.S. Government securities
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	37	44
Other Benefits | U.S. Government securities | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits | U.S. Government securities | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	37	44
Other Benefits | U.S. Government securities | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits | Corporate bonds
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	32	29
Other Benefits | Corporate bonds | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits | Corporate bonds | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	32	29
Other Benefits | Corporate bonds | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits | Equity securities
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0		$ 1
Other Benefits | Equity securities | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits | Equity securities | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy		1
Investments at fair value	0
Other Benefits | Equity securities | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits | Mutual funds
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	54	66
Other Benefits | Mutual funds | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	54	66
Other Benefits | Mutual funds | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits | Mutual funds | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	$ 0	$ 0

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Employee Pension and Other Postretirement Benefits - Investments Measured at Net Asset Value (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	$ 1,420,000,000	$ 1,704,000,000
Unfunded Commitment	3,000,000	5,000,000
Pension Benefits | Equity Funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	$ 789,000,000	$ 1,101,000,000
Redemption Notice Period	15 days	15 days
Pension Benefits | Real estate funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	$ 415,000,000	$ 343,000,000
Redemption Notice Period	90 days
Pension Benefits | Real estate funds | Minimum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Redemption Notice Period	45 days	45 days
Pension Benefits | Real estate funds | Maximum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Redemption Notice Period		90 days
Pension Benefits | Real estate funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	$ 7,000,000	$ 13,000,000
Unfunded Commitment	3,000,000	5,000,000
Pension Benefits | International equity funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	159,000,000	228,000,000
Pension Benefits | Money market funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	50,000,000	19,000,000
Other Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	134,000,000	157,000,000
Other Benefits | Equity Funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	$ 87,000,000	$ 100,000,000
Redemption Notice Period	7 days	7 days
Other Benefits | Pooled separate account - variable life insurance policies
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	$ 46,000,000	$ 52,000,000
Other Benefits | Money market funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	$ 1,000,000	$ 5,000,000

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Employee Pension and Other Postretirement Benefits - Changes in Benefit Obligation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Accumulated benefit obligation	$ 3,038	$ 3,101
Change in benefit obligation
Benefit obligation, beginning of year	3,242	2,942
Service cost	80	71	$ 91
Interest cost	100	100	$ 103
Plan participants' contributions	0	0
Actuarial loss/(gain)	$ 246	$ (252)
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	4.00%	3.00%	4.00%
Effect of plan amendments	$ 0	$ 0
Medicare Part D subsidy	0	0
Benefits paid	(129)	(123)
Benefit obligation, end of year	3,047	3,242	$ 2,942
Fair value of plan assets, end of year	3,529	3,854	3,254
Over (Under) funded status	482	612
Other Benefits
Change in benefit obligation
Benefit obligation, beginning of year	265	261
Service cost	4	6	8
Interest cost	8	8	$ 9
Plan participants' contributions	4	4
Actuarial loss/(gain)	$ 21	$ (6)
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	4.00%	3.00%	4.00%
Effect of plan amendments	$ 0	$ 0
Medicare Part D subsidy	1	1
Benefits paid	(19)	(21)
Benefit obligation, end of year	242	265	$ 261
Fair value of plan assets, end of year	255	288	$ 260
Over (Under) funded status	$ 13	$ 23

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Employee Pension and Other Postretirement Benefits - Changes in AOCI (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 18,355	$ 17,386	$ 16,593
Ending balance	16,580	18,355	17,386
Recognized net actuarial gain (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income before reclassifications	71	55	54
Amortization of prior service credit
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income before reclassifications	(30)	(29)	(18)
Pension Benefits | Recognized net actuarial gain (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	905	1,085	1,027
Other comprehensive income before reclassifications	218	(101)	133
Amounts reclassified from AOCI	87	79	75
Ending balance	1,036	905	1,085
Pension Benefits | Amortization of prior service credit
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(152)	(179)	(121)
Other comprehensive income before reclassifications	0	0	(76)
Amounts reclassified from AOCI	(26)	(27)	(18)
Ending balance	(126)	(152)	(179)
Other Benefits | Recognized net actuarial gain (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	51	78	82
Other comprehensive income before reclassifications	18	(19)	6
Amounts reclassified from AOCI	5	8	10
Ending balance	64	51	78
Other Benefits | Amortization of prior service credit
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(29)	(50)	(15)
Other comprehensive income before reclassifications	0	0	(47)
Amounts reclassified from AOCI	(15)	(21)	(12)
Ending balance	$ (14)	$ (29)	$ (50)

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Employee Pension and Other Postretirement Benefits - AOCI Loss for Pension (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Net actuarial loss, Gross	$ 1,036	$ 905
Prior service costs (credits), Gross	(126)	(152)
Pension and other benefits adjustment, Gross	910	753
Net actuarial loss in AOCI, Tax	273	238
Prior service costs (credits) in AOCI, Tax	(33)	(40)
Pension and other benefits adjustment, Tax	240	198
Net Actuarial (Gain)/Loss, Net of Tax	763	667
Prior service costs (credits), Net of Tax	(93)	(112)
Amounts to be reclassified from accumulated other comprehensive loss	670	555
Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Net actuarial loss, Gross	64	51
Prior service costs (credits), Gross	(14)	(29)
Pension and other benefits adjustment, Gross	50	22
Net actuarial loss in AOCI, Tax	18	14
Prior service costs (credits) in AOCI, Tax	(4)	(8)
Pension and other benefits adjustment, Tax	14	6
Net Actuarial (Gain)/Loss, Net of Tax	46	37
Prior service costs (credits), Net of Tax	(10)	(21)
Amounts to be reclassified from accumulated other comprehensive loss	36	16
Executive Supplemental Benefits Pension Plan
Pension Plan and Other Postretirement Benefits Plan
Net actuarial loss, Gross	32	40
Prior service costs (credits), Gross	0	0
Pension and other benefits adjustment, Gross	32	40
Net actuarial loss in AOCI, Tax	8	11
Prior service costs (credits) in AOCI, Tax	0	0
Pension and other benefits adjustment, Tax	8	11
Net Actuarial (Gain)/Loss, Net of Tax	24	29
Prior service costs (credits), Net of Tax	0	0
Amounts to be reclassified from accumulated other comprehensive loss	$ 24	$ 29

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Employee Pension and Other Postretirement Benefits - Pension and Post retirement Benefit Payments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Plan and Other Postretirement Benefits Plan
Amortization period of net actuarial losses		8 years
Assetsmoothingperiodofnonamortizing amount		4 years
Pension and Executive Employee Supplemental Benefit, Pension Plan [Member]
Pension Plan and Other Postretirement Benefits Plan
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax		$ 942	$ 793
Defined Benefit Plan, Accumulated Other Comprehensive Income, Tax		248	209
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax		694	584
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax		910	753
Defined Benefit Plan, Service Cost		80	71	$ 91
2018		140
2019		147
2020		153
2021		160
2022		166
Years 2023-2027		914
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year		(62)
Defined Benefit Plan, Interest Cost		100	100	103
Defined Benefit Plan, Expected Return (Loss) on Plan Assets		(268)	(254)	(235)
Amortization of prior service credit		(26)	(27)	(18)
Defined Benefit Plan, Amortization of Gain (Loss)		87	79	75
Curtailment gain		0	0	0
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)		(27)	(31)	16
Defined Benefit Plan, Accumulated Other Comprehensive Income, Tax		240	198
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax		670	555
Domestic Plan [Member]
Pension Plan and Other Postretirement Benefits Plan
2018		17
2019		17
2020		18
2021		18
2022		18
Years 2023-2027		82
Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax		50	22
Defined Benefit Plan, Service Cost		4	6	8
Defined Benefit Plan, Interest Cost		8	8	9
Defined Benefit Plan, Expected Return (Loss) on Plan Assets		(21)	(19)	(19)
Amortization of prior service credit		(15)	(21)	(12)
Defined Benefit Plan, Amortization of Gain (Loss)		5	8	10
Curtailment gain		0	0	0
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)		(19)	(18)	(4)
Defined Benefit Plan, Accumulated Other Comprehensive Income, Tax		14	6
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax		36	16
Superannuation Supplemental Executives Retirement Plan Defined Benefit and Executive Supplemental Defined Benefit Plan [Member]
Pension Plan and Other Postretirement Benefits Plan
Defined Benefit Plan, Service Cost		0	0	2
Defined Benefit Plan, Interest Cost		3	3	2
Defined Benefit Plan, Expected Return (Loss) on Plan Assets		0	0	0
Amortization of prior service credit		0	0	0
Defined Benefit Plan, Amortization of Gain (Loss)		3	4	3
Curtailment gain		0	0	(2)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)		$ 6	$ 7	$ 5
Forecast | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Effect of 50 basis point increase on discount rate	$ 25
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	$ 27

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Employee Pension and Other Postretirement Benefits - Periodic Benefit Costs, Forecasted (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension Plan and Other Postretirement Benefits Plan
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 16,580	$ 18,355	$ 17,386	$ 16,593
Amortization period of net actuarial losses		8 years
Excess of market value of plan assets		$ 214
Assetsmoothingperiodofnonamortizing amount		4 years
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Net actuarial loss, Gross		$ (1,036)	$ (905)
Actuarial loss, subject to amortization		$ 447
Expected return on plan assets		8.00%	8.00%
Rate of increase in future compensation levels for determining net periodic benefit cost		5.00%	5.00%
Net periodic benefit cost		$ (27)	$ (31)	$ 16
Prior service costs (credits), Gross		$ (126)	$ (152)
Pension Benefits | Forecast
Pension Plan and Other Postretirement Benefits Plan
Assumptions used to calculate net periodic benefit cost, service cost rate	4.19%
Defined benefit plan, assumptions used calculating net periodic benefit cost, interest cost	3.90%
Expected return on plan assets	7.00%
Rate of increase in future compensation levels for determining net periodic benefit cost	5.10%
Net periodic benefit cost	$ 27
Effect of 50 basis point increase on discount rate	25
Effect of 50 basis point increase on expected rate of return	18
Effect of 50 basis point increase on future compensation levels	1
Effect of 50 basis point decrease on discount rate	27
Effect of 50 basis point decrease on expected rate of return on plan assets	18
Effect of 50 basis point decrease on future compensation levels	$ 1

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Employee Pension and Other Postretirement Benefits - Weighted Average Assumptions, PV of Benefit Obligations and Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Plan and Other Postretirement Benefits Plan
Discount rate in determining net periodic benefit cost after Plan amendments, interest cost		3.00%	3.00%
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Discount rate in determining net periodic benefit cost after Plan amendments, service cost		3.00%	4.00%
Discount rate in determining net periodic benefit cost after Plan amendments, interest cost		3.00%	3.00%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate		4.00%	3.00%	4.00%
Rate of increase in future compensation levels for determining net periodic benefit cost		5.00%	5.00%
Rate of increase in future compensation levels for determining benefit obligations at year end		5.00%	5.00%
Expected return on plan assets		8.00%	8.00%
Service cost		$ 80	$ 71	$ 91
Interest cost		100	100	103
Expected return on plan assets		(268)	(254)	(235)
Amortization of prior service credit		(26)	(27)	(18)
Recognized net actuarial loss		87	79	75
Curtailment gain		0	0	0
Total net periodic benefit cost		$ (27)	$ (31)	$ 16
Defined benefit plan assumptions used calculating net periodic benefit cost cash balance crediting rate		3.00%	3.00%
Defined benefit plan assumptions used calculating benefit obligations cash balance crediting rate		3.00%	3.00%
Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Discount rate in determining net periodic benefit cost after Plan amendments, service cost		3.00%	4.00%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate		4.00%	3.00%	4.00%
Expected return on plan assets		8.00%	8.00%
Service cost		$ 4	$ 6	$ 8
Interest cost		8	8	9
Expected return on plan assets		(21)	(19)	(19)
Amortization of prior service credit		(15)	(21)	(12)
Recognized net actuarial loss		5	8	10
Curtailment gain		0	0	0
Total net periodic benefit cost		(19)	(18)	(4)
Superannuation, SERP and ESBP
Pension Plan and Other Postretirement Benefits Plan
Service cost		0	0	2
Interest cost		3	3	2
Expected return on plan assets		0	0	0
Amortization of prior service credit		0	0	0
Recognized net actuarial loss		3	4	3
Curtailment gain		0	0	(2)
Total net periodic benefit cost		$ 6	$ 7	$ 5
Forecast | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Rate of increase in future compensation levels for determining net periodic benefit cost	5.10%
Expected return on plan assets	7.00%
Total net periodic benefit cost	$ 27

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Employee Pension and Other Postretirement Benefits - Weighted Average Healthcare Cost Trend Rates (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assumed weighted-average healthcare cost trend rates
Healthcare cost trend rate assumed for next year	4.00%	4.00%	5.00%
Rate to which cost trend rate is assumed to decline (the ultimate trend rate)	4.00%	4.00%	4.00%
Year the rate reaches the ultimate trend rate	2027	2026	2026
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	$ 62

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Employee Pension and Other Postretirement Benefits - Executive Supplemental Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Plan and Other Postretirement Benefits Plan
Employee pre-tax covered compensation percent	75.00%
Employee after-tax covered compensation percent	10.00%
Combined maximum employee contribution percent	75.00%
Employee pre-tax gross pay for which the employer contributes a match	4.00%
Contribution plan expenses	$ 59	$ 55	$ 48
Executive Supplemental Benefits Pension Plan
Pension Plan and Other Postretirement Benefits Plan
Accrued liability for ESBPs	$ 89	$ 98
Matching Range 1
Pension Plan and Other Postretirement Benefits Plan
Company pre-tax compensation match	100.00%
Employee pre-tax gross pay for which the employer contributes a match	3.00%
Matching Range 2
Pension Plan and Other Postretirement Benefits Plan
Company pre-tax compensation match	50.00%
Employee pre-tax gross pay for which the employer contributes a match	2.00%

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Other Noninterest Income and Noninterest Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Noninterest Income
Gain (loss) on sales	$ 16	$ 26	$ 79
Other fee income	100	46	22
Brokerage commissions and fees	100	69	59
Gain (Loss) on Energy Investments	(235)	(58)	(37)
Other	134	157	136
Total other noninterest income	115	240	259
Noninterest Expense
Fees to affiliates	115	105	100
Expenses of the LIHC consolidated VIEs	24	43	68
Net periodic pension cost excluding service cost	(124)	(119)	(84)
Other	394	360	311
Total other noninterest expense	$ 409	$ 389	$ 395

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Income Taxes - Analysis of the Effective Tax Rate (Details) - USD ($) $ in Millions			12 Months Ended
	Jan. 01, 2018	Dec. 22, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Federal income tax rate	21.00%	35.00%	21.00%	35.00%	35.00%
Net tax effects of:
State income taxes, net of federal income tax benefit			7.00%	5.00%	6.00%
Tax-exempt interest income			(1.00%)	(1.00%)	(1.00%)
Effective Income Tax Rate Reconciliation, Deduction, Amount			(2.00%)	(3.00%)	(3.00%)
Amortization of LIHC investments			12.00%	14.00%	10.00%
Tax credits			(25.00%)	(21.00%)	(18.00%)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount			(2.00%)	(8.00%)	0.00%
Effective Income Tax Rate Reconciliation, State Refunds, Percent			(5.00%)	0.00%	0.00%
Other			0.00%	1.00%	2.00%
Effective tax rate			5.00%	22.00%	31.00%
One Time Tax Benefit from Change in Federal Corporate Tax Rate			$ 101

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Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current income tax expense:
Federal	$ 195	$ 257	$ 228
State	89	21	105
Foreign	10	(4)	7
Total current expense	294	274	340
Deferred income tax expense (benefit):
Federal	(173)	(49)	58
State	(64)	52	24
Foreign	(5)	22	(3)
Total deferred expense	(242)	25	79
Total income tax expense	$ 52	$ 299	$ 419

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Income Taxes - Net Deferred Tax Balances (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Tax Credit Carryforwards	$ 448	$ 310
Deferred tax assets:
Allowance for credit losses	251	254
Accrued expense, net	159	178
Unrealized losses on pension and postretirement benefits	260	214
Unrealized net losses on securities available for sale	132	82
Fair value adjustments for valuation of FDIC covered assets	53	61
Deferred Tax Assets, Hedging Transactions	78	62
Other	0	0
Total deferred tax assets	1,381	1,161
Deferred tax liabilities:
Leasing and renewable energy	619	769
Intangible assets	59	55
Pension liabilities	365	358
Other	10	7
Total deferred tax liabilities	1,053	1,189
Net deferred tax (liability)		$ (28)
Net deferred tax asset	$ 328

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Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets, carryforwards
Tax credit carry forwards	$ 378,000,000
Uncertain tax liability	25,000,000
State tax credits	33,000,000
AMT tax credit carryforward	17,000,000
Net valuation allowance	0
Income Tax Uncertainties [Abstract]
Unrecognized tax positions that would affect the effective tax rate	98,000,000	$ 33,000,000	$ 9,000,000
Income Tax Examination, Interest Accrued	2,000,000
Income Tax Examination, Penalties Accrued	3,000,000
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions	23,000,000
Domestic Tax Authority
Deferred tax assets, carryforwards
Operating loss carry forward	16,000,000
State and Local Jurisdiction
Deferred tax assets, carryforwards
Operating loss carry forward	$ 4,000,000

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Income Taxes - Unrecognized Tax Positions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Changes in unrecognized tax positions
Balance, beginning of year	$ 56	$ 11	$ 8
Gross increases as a result of tax positions taken during prior periods	72	45	0
Gross decreases as a result of tax positions taken during prior periods	0	0	0
Gross increases as a result of tax positions taken during current period	0	2	3
Balance, end of year	127	56	11
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities	$ (1)	$ (2)	$ 0

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Regulatory Capital Requirements (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Regulatory Capital Requirements
Tier 1 capital (to risk-weighted assets), ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions	8.00%	8.00%
MUFG Americas Holdings Corporation
Regulatory Capital Requirements
Common equity tier 1 capital (to risk-weighted assets), Actual	$ 14,256	$ 15,708
Tier 1 capital (to risk-weighted assets), Actual	14,256	15,708
Total capital (to risk-weighted assets), Actual	14,904	17,106
Tier 1 Leverage, Actual	$ 14,256	$ 15,708
Common equity tier 1 capital (to risk-weighted assets), ratio, Actual	13.96%	16.31%
Tier 1 capital (to risk-weighted assets), ratio, Actual	13.96%	16.31%
Total capital (to risk-weighted assets), ratio, Actual	14.60%	17.76%
Tier 1 leverage, ratio, Actual	8.77%	10.06%
Common Equity Tier One Risk Based Capital Required for Capital Adequacy	$ 6,508	$ 5,539
Tier 1 capital (to risk-weighted assets), Minimum Regulatory Requirement	8,039	6,984
Total capital (to risk-weighted assets), Minimum Regulatory Requirement	10,081	8,910
Tier 1 Leverage, Minimum Regulatory Requirement	$ 6,502	$ 6,245
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.375%	5.75%
Tier 1 capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement	7.875%	7.25%
Total capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement	9.875%	9.25%
Tier 1 Leverage, ratio, Minimum Regulatory Requirement	4.00%	4.00%
Bank
Regulatory Capital Requirements
Common equity tier 1 capital (to risk-weighted assets), Actual	$ 13,316	$ 14,028
Tier 1 capital (to risk-weighted assets), Actual	13,316
Total capital (to risk-weighted assets), Actual	13,905	15,335
Tier 1 Leverage, Actual	$ 13,316	$ 14,028
Common equity tier 1 capital (to risk-weighted assets), ratio, Actual	14.45%	16.17%
Tier 1 capital (to risk-weighted assets), ratio, Actual	14.45%	16.17%
Total capital (to risk-weighted assets), ratio, Actual	15.09%	17.68%
Tier 1 leverage, ratio, Actual	10.61%	11.78%
Common Equity Tier One Risk Based Capital Required for Capital Adequacy	$ 5,876	$ 4,987
Tier 1 capital (to risk-weighted assets), Minimum Regulatory Requirement	7,258	6,288
Total capital (to risk-weighted assets), Minimum Regulatory Requirement	9,102	8,023
Tier 1 Leverage, Minimum Regulatory Requirement	$ 5,018	$ 4,762
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.375%	5.75%
Tier 1 capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement	7.875%	7.25%
Total capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement	9.875%	9.25%
Tier 1 Leverage, ratio, Minimum Regulatory Requirement	4.00%	4.00%
Common Equity Tier One Risk Based Capital Required to be Well Capitalized	$ 5,991	$ 5,637
Tier 1 capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions	7,374	6,938
Total capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions	9,217	8,673
Tier 1 Leverage, To Be Well-Capitalized Under Prompt Corrective Action Provisions	$ 6,273	$ 5,953
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	6.50%	6.50%
Total capital (to risk-weighted assets), ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions	10.00%	10.00%
Tier 1 Leverage, ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions	5.00%	5.00%

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Restrictions on Cash and Due from Banks, Securities, Loans and Dividends - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Restricted Cash and Cash Equivalents Items [Line Items]
Required reserve balances	$ 348	$ 475
Federal Reserve Act restricts the amount and the terms of both credit and non-credit transactions, in percentage	10.00%
Aggregate of loan to non-bank affiliate	20.00%
Outstanding on the number of bankers commercial corporation notes payable	$ 80
MUSA
Restricted Cash and Cash Equivalents Items [Line Items]
Cash and Securities Segregated under Securities Exchange Commission Regulation	$ 17

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Commitments, Contingencies and Guarantees (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Financial guarantee | Interest rate swap contracts
Commitment, Contingencies and Guarantees disclosures
Current exposure to loss	$ 9
Future exposure to loss	35
Commitments to extend credit
Commitment, Contingencies and Guarantees disclosures
Commitments	33,487
Issued standby and commercial letters of credit
Commitment, Contingencies and Guarantees disclosures
Commitments	$ 4,852
Maximum term	1 year
Loss Contingency Accrual	$ 4
Commitments to enter into forward-starting resale agreements
Commitment, Contingencies and Guarantees disclosures
Commitments	877
Other commitments
Commitment, Contingencies and Guarantees disclosures
Commitments	493
MUSA and Various other Non-Bank Subsidiaries | Unsecured Debt [Member]
Commitment, Contingencies and Guarantees disclosures
Revolving credit facility borrowing capacity	1,400
Commercial | Notes Receivable [Member] | Financial and Insurance [Member]
Commitment, Contingencies and Guarantees disclosures
Commitments	7,000
Commercial | Notes Receivable [Member] | Power and Utilities [Member]
Commitment, Contingencies and Guarantees disclosures
Commitments	5,000
Commercial | Notes Receivable [Member] | Oil and Gas [Member]
Commitment, Contingencies and Guarantees disclosures
Commitments	2,000
Commercial | Notes Receivable [Member] | Manufacturing Sector [Member]
Commitment, Contingencies and Guarantees disclosures
Commitments	3,000
Commercial | Notes Receivable [Member] | Commercial mortgage
Commitment, Contingencies and Guarantees disclosures
Commitments	$ 4,000

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Related Party Transactions - Narrative (Details) - USD ($)		12 Months Ended
	Jul. 01, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Proceeds from sale of loan	$ 1,000,000,000
Gain on sale		$ 1,213,000,000	$ 866,000,000	$ 957,000,000
Available-for-sale Securities		16,314,000,000	17,563,000,000
Increase in retained earnings		4,000,000	9,000,000	(7,000,000)
Liabilities		151,520,000,000	136,195,000,000
Notional Amount		201,094,000,000	150,854,000,000
MUSA and Various other Non-Bank Subsidiaries
Related Party Transaction [Line Items]
Notional Amount		3,600,000,000	3,000,000,000
Unrealized gains		96,000,000	2,000,000
Unsecured Debt [Member] | MUSA and Various other Non-Bank Subsidiaries
Related Party Transaction [Line Items]
Unsecured revolving credit facility with BTMU		1,400,000,000
Retained Earnings
Related Party Transaction [Line Items]
Increase in retained earnings		0	0	2,000,000
Affiliated Entity [Member] | MUSA and Various other Non-Bank Subsidiaries
Related Party Transaction [Line Items]
Gain on sale		1,213,000,000	$ 866,000,000	$ 957,000,000
Securities sold under agreements to repurchase		0
Sale Of Loans | Affiliated Entity [Member]
Related Party Transaction [Line Items]
Proceeds from sale of loan		542,000,000
Gain on sale		2,100,000
Purchase of loans		$ 314,000,000
transfer of goodwill and intangibles [Member]
Related Party Transaction [Line Items]
Proceeds from sale of loan	196,000,000
transfer of liabilities [Member]
Related Party Transaction [Line Items]
Proceeds from sale of loan	$ 601,000,000
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Related Party Transaction Shares Issued	3,267,433

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- Assets and Liabilities with Affiliates (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Cash and cash equivalents	$ 8,350	$ 3,392	$ 5,753
Securities borrowed or purchased under resale agreements	22,368	20,894
Trading account assets	11,213	10,567
Other assets	9,620	9,410
Securities loaned or sold under repurchase agreements	27,285	26,437
Commercial paper and other short-term borrowings	9,263	7,066
Other liabilities	2,048	2,143
MUSA and Various other Non-Bank Subsidiaries | Affiliated Entity
Related Party Transaction [Line Items]
Cash and cash equivalents	80	119
Securities borrowed or purchased under resale agreements	1,913	3,530
Other assets	146	223
Deposits	451	362
Securities loaned or sold under repurchase agreements	148	102
Commercial paper and other short-term borrowings	1,081	969
Long-term debt	7,333	6,251
Other liabilities	$ 69	$ 61

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- Revenues and Expenses with Affiliates (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Securities borrowed or purchased under resale agreements	$ 652	$ 347	$ 195
Interest Expense, Deposits	441	241	194
Commercial paper and other short-term borrowings	168	58	32
Long-term debt	365	250	240
Securities loaned or sold under repurchase agreements	734	353	140
Fees from affiliates	1,213	866	957
Other	134	157	136
Other Noninterest Expense	409	389	395
MUSA and Various other Non-Bank Subsidiaries | Affiliated Entity
Related Party Transaction [Line Items]
Securities borrowed or purchased under resale agreements	66	41	26
Interest Income, Other	2	1	0
Interest Expense, Deposits	3	5	0
Commercial paper and other short-term borrowings	2	15	24
Long-term debt	171	114	69
Securities loaned or sold under repurchase agreements	18	6	2
Fees from affiliates	1,213	866	957
Other	1	13	(28)
Other Noninterest Expense	$ 115	$ 112	$ 95

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Business Segments - Additional Information (Details)	12 Months Ended
	Dec. 31, 2018 branch
Business segments
Number of Reportable Segments	4
Regional Bank
Business segments
Number of full-service branches	343

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Business Segments - Schedule of Segments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Business segments
Number of Reportable Segments	4
Net interest income (expense)	$ 3,307	$ 3,204	$ 3,053
Noninterest income	2,177	2,010	2,225
Total income	5,484	5,214	5,278
Other expense	4,277	3,984	3,782
(Reversal of) provision for credit losses	106	(103)	155
Income before income taxes and including noncontrolling interests	1,101	1,333	1,341
Income tax benefit	52	299	419
Net Income	1,049	1,034	922
Deduct: Net loss from noncontrolling interests	24	43	68
Net Income Attributable to MUAH	1,073	1,077	990
Total assets, end of period	168,100	154,550	148,144
Other
Business segments
Net interest income (expense)	233	255	194
Noninterest income	994	783	1,034
Total income	1,227	1,038	1,228
Other expense	1,103	946	983
(Reversal of) provision for credit losses	2	(22)	27
Income before income taxes and including noncontrolling interests	122	114	218
Income tax benefit	(211)	226	96
Net Income	333	(112)	122
Deduct: Net loss from noncontrolling interests	24	43	68
Net Income Attributable to MUAH	357	(69)	190
Total assets, end of period	38,828	33,160	30,713
Regional Bank | Operating segments
Business segments
Net interest income (expense)	2,195	2,051	1,952
Noninterest income	451	442	449
Total income	2,646	2,493	2,401
Other expense	2,058	1,961	1,843
(Reversal of) provision for credit losses	65	22	30
Income before income taxes and including noncontrolling interests	523	510	528
Income tax benefit	105	178	152
Net Income	418	332	376
Deduct: Net loss from noncontrolling interests	0	0	0
Net Income Attributable to MUAH	418	332	376
Total assets, end of period	73,554	67,804	63,169
U.S. Wholesale Banking and Investment Banking [Member] | Operating segments
Business segments
Net interest income (expense)	415
Noninterest income	373
Other expense	418
(Reversal of) provision for credit losses	42
Income tax benefit	122
Deduct: Net loss from noncontrolling interests	0
Total assets, end of period	20,933
U.S. Wholesale & Investment Banking | Operating segments
Business segments
Net interest income (expense)		417	541
Noninterest income		370	368
Total income	788	787	909
Other expense		403	404
(Reversal of) provision for credit losses		(104)	98
Income before income taxes and including noncontrolling interests	328	488	407
Income tax benefit		(197)	91
Net Income	206	685	316
Deduct: Net loss from noncontrolling interests		0	0
Net Income Attributable to MUAH	206	685	316
Total assets, end of period		20,461	23,805
Transaction Banking | Operating segments
Business segments
Net interest income (expense)	264	247	202
Noninterest income	59	64	72
Total income	323	311	274
Other expense	255	229	190
(Reversal of) provision for credit losses	(3)	1	0
Income before income taxes and including noncontrolling interests	71	81	84
Income tax benefit	19	33	39
Net Income	52	48	45
Deduct: Net loss from noncontrolling interests	0	0	0
Net Income Attributable to MUAH	52	48	45
Total assets, end of period	941	1,063	1,205
MUSA | Operating segments
Business segments
Net interest income (expense)	200	234	164
Noninterest income	300	351	302
Total income	500	585	466
Other expense	443	445	362
(Reversal of) provision for credit losses	0	0	0
Income before income taxes and including noncontrolling interests	57	140	104
Income tax benefit	17	59	41
Net Income	40	81	63
Deduct: Net loss from noncontrolling interests	0	0	0
Net Income Attributable to MUAH	40	81	63
Total assets, end of period	$ 33,844	$ 32,062	$ 29,252

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Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company) - Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 2,061	$ 2,057
Other assets	9,620	9,410
Total assets	168,100	154,550	$ 148,144
Liabilities and Stockholders' Equity
Long-term debt	17,918	12,162
Other liabilities	2,048	2,143
Total liabilities	151,520	136,195
Stockholders' equity	16,580	18,355	$ 17,386	$ 16,593
Total liabilities and stockholders' equity	168,100	154,550
MUFG Americas Holdings Corporation
Assets
Cash and cash equivalents	739	1,341
Investments in and advances to subsidiaries: Bank subsidiary	18,493	19,598
Investments in and advances to subsidiaries: Nonbank subsidiaries	4,618	4,314
Other assets	76	69
Total assets	23,926	25,322
Liabilities and Stockholders' Equity
Long-term debt	7,355	6,997
Other liabilities	63	70
Total liabilities	7,418	7,067
Stockholders' equity	16,508	18,255
Total liabilities and stockholders' equity	23,926	25,322
Other Subsidiaries, Excluding MUFG Bank, NA [Member]
Liabilities and Stockholders' Equity
Long-term debt	$ 931	$ 1,355

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Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company) - Statements of Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income:
Total income	$ 5,484	$ 5,214	$ 5,278
Expense:
Other expense	4,277	3,984	3,782
Income before income taxes and including noncontrolling interests	1,101	1,333	1,341
Income tax benefit	(52)	(299)	(419)
Equity in undistributed net income of subsidiaries less dividends received:
Net Income Including Noncontrolling Interests	1,049	1,034	922
MUFG Americas Holdings Corporation
Income:
Interest income on advances to subsidiaries and deposits in bank	137	79	22
Rental Income	15	15	16
Total income	1,947	465	38
Expense:
Interest expense	194	144	75
Other expense	17	14	19
Total expense	211	158	94
Income before income taxes and including noncontrolling interests	1,736	307	(56)
Income tax benefit	13	20	22
Income (loss) before equity in undistributed net income of subsidiaries	1,749	327	(34)
Equity in undistributed net income of subsidiaries less dividends received:
Bank subsidiary	(697)	366	900
Nonbank subsidiaries	21	384	124
Net Income Including Noncontrolling Interests	1,073	1,077	990
Bank Subsidiary | MUFG Americas Holdings Corporation
Income:
Investment Income, Dividend	1,700	320	0
Nonbank Subsidiary | MUFG Americas Holdings Corporation
Income:
Investment Income, Dividend	$ 95	$ 51	$ 0

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Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company) - Statement of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities:
Net Income	$ 1,049	$ 1,034	$ 922
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Other, net	(18)	11	15
Net cash provided by (used in) operating activities	40	1,083	1,133
Cash Flows from Investing Activities:
Net cash provided by (used in) investing activities	(6,740)	(5,680)	595
Cash Flows from Financing Activities:
Proceeds from (Repurchase of) Equity	(2,496)	0	0
Other, net	(115)	(71)	6
Net cash provided by (used in) financing activities	11,570	2,291	(734)
Net increase (decrease) in cash and cash equivalents	4,870	(2,306)	994
Cash, cash equivalents and restricted cash at beginning of period	3,392	5,753
Cash, cash equivalents and restricted cash at end of period	8,350	3,392	5,753
MUFG Americas Holdings Corporation
Cash Flows from Operating Activities:
Net Income	1,073	1,077	990
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed net income of subsidiaries less dividends received	676	(750)	(1,024)
Other, net	(9)	2	0
Net cash provided by (used in) operating activities	1,740	329	(34)
Cash Flows from Investing Activities:
Investments in and advances to subsidiaries	(2,612)	(5,050)	(1,197)
Repayment of investments in and advances to subsidiaries	2,411	1,495	1,820
Net cash provided by (used in) investing activities	(201)	(3,555)	623
Cash Flows from Financing Activities:
Proceeds from advances from subsidiaries	0	200	0
Repayment of advances from subsidiaries	0	(200)	0
Proceeds from issuance of long-term debt	6,500	3,525	545
Repayment of long-term debt	(6,145)	0	0
Dividends paid	0	(500)	0
Proceeds from (Repurchase of) Equity	(2,496)	0	0
Other, net	0	0	1
Net cash provided by (used in) financing activities	(2,141)	3,025	546
Net increase (decrease) in cash and cash equivalents	(602)	(201)	1,135
Cash, cash equivalents and restricted cash at beginning of period	1,341	1,542	407
Cash, cash equivalents and restricted cash at end of period	$ 739	$ 1,341	$ 1,542

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Label	Element	Value
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	$ 4,840,000,000