10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

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

For the fiscal year ended December 31, 2020

OR

o TRANSITION 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:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
None	Not Applicable	Not Applicable

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 every Interactive Data File required to be submitted 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 such files). Yes x No o

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

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 has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. x

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, 2021, the number of shares outstanding of the registrant's Common Stock was 132,076,912.

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	8
	Employees	8
	Competition	8
	Supervision and Regulation	8
ITEM 1A.	RISK FACTORS	20
ITEM 1B.	UNRESOLVED STAFF COMMENTS	34
ITEM 2.	PROPERTIES	34
ITEM 3.	LEGAL PROCEEDINGS	34
ITEM 4.	MINE SAFETY DISCLOSURES	34
PART II
ITEM 5.	MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	34
ITEM 6.	SELECTED FINANCIAL DATA	34
ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	34
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	35
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	35
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	35
ITEM 9A.	CONTROLS AND PROCEDURES	35
ITEM 9B.	OTHER INFORMATION	35
PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	35
ITEM 11.	EXECUTIVE COMPENSATION	35
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	35
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	36
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	36
PART IV
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	37
ITEM 16.	FORM 10-K SUMMARY	37
SIGNATURES		152

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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.”

ABS	Asset-backed securities
ACR	Americas Credit Review
ADR	American depositary receipt
ALCO	Asset Liability Management Committee
ALM	Asset Liability Management
AMT	Alternative minimum tax
AOCI	Accumulated other comprehensive income
ARC	Americas Risk Committee
ARM	Americas Risk Management
ASU	Accounting Standards Update
BCBS	Basel Committee on Banking Supervision
BHC	U.S. Bank Holding Company
BHCA	Bank Holding Company Act
CARES Act	Coronavirus Aid, Relief, and Economic Security 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 security
COVID-19	Coronavirus Disease 2019
COSO	Committee of Sponsoring Organizations of the Treadway Commission
CPREA	California Privacy Rights and Enforcement Act of 2020
CRA	Community Reinvestment Act
CRO	Chief Risk Officer
Dodd-Frank Act	Dodd-Frank Wall Street Reform and Consumer Protection Act
EAD	Exposure at default
ECA	Executive Committee for the Americas
EGRRCPA	Economic Growth, Regulatory Relief and Consumer Protection Act
ESBP	Executive Supplemental Benefit Plan
EURIBOR	Euro Interbank Offered Rate
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
Fitch	Fitch Ratings
FINRA	Financial Industry Regulatory Authority
GAAP	Accounting principles generally accepted in the United States of America
GLBA	Gramm-Leach-Bliley Act

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Glossary of Defined Terms (Continued)

GSIB	Global systemically important bank
HLBV	Hypothetical liquidation at book value
HQLA	High quality liquid assets
HRA Plan	MUFG Union Bank, N.A. Retiree Health Reimbursement Plan
IAA	Internal Audit for the Americas
IBOR	Inter-bank Offered Rate
IHC	Intermediate Holding Company
IRC	Internal revenue code
LCR	Liquidity Coverage Ratio
LGD	Loss given default
LIBOR	London Inter-bank Offered Rate
LIHC	Low income housing tax credit
LLC	Limited Liability Company
LTV	Loan-to-value
Moody's	Moody's Investors Service
MRM	Market Risk Management
MRMC	Market Risk Management Committee
MSRB	Municipal Securities Rulemaking Board
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
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
PD	Probability of default
PPP	Paycheck Protection Program of the SBA
RMBS	Residential mortgage-backed security
S&P	Standard & Poor's Global Ratings
SBA	Small Business Administration
SEC	Securities and Exchange Commission
SOFR	Secured Overnight Financing Rate
SRO	Self-regulatory organization
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 effects of the coronavirus pandemic on California, the U.S. and global economies, and on our business and results of operations, and the actions of governments to reduce the spread of the virus and to mitigate the resulting economic consequences, and the effect of the foregoing on our business

•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, the Dodd-Frank Act, the EGRRCPA, as well as the CARES Act enacted in March 2020 in an effort to mitigate the consequences of the coronavirus pandemic and the governmental actions in response thereto, the effect of monetary and fiscal stimulus expected to continue into 2021, 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

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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

•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, and our economic forecasts considered in determining the provision for credit losses

•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, and the potential impact on our critical accounting estimates resulting from the significant ongoing uncertainty caused by the COVID-19 pandemic, 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, 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 cybersecurity incidents and attacks on financial institutions and other businesses, such as large retailers, and regulatory expectations relating to cybersecurity

•Technological challenges and our Transformation and Rewiring Programs and our other technology-related programs and initiatives and our expectations regarding their implementation and performance, including the impact and timing of completion of our Transformation and Rewiring Programs

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•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 possible risks resulting from the replacement of LIBOR, the Company's exposure to IBOR-based rates, and the Company's LIBOR transition program and expectations regarding its effectiveness

•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 and related electrical power outages 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 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 services and facilities provided.

The Company has four reportable segments: Regional Bank, Global Corporate & Investment Banking - U.S., Transaction Banking and MUSA. We service Global Corporate & Investment Banking - U.S., 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 Global Corporate & Investment Banking - U.S. 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 $167.8 billion at December 31, 2020.

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.

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Lines of Business

Our operations are organized into four reportable segments: Regional Bank, Global Corporate & Investment Banking - U.S., Transaction Banking and MUSA. 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, 2020, we had approximately 13,900 full-time equivalent employees.

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 system as a whole, and not for the benefit of investors in securities issued by a BHC or bank or creditors other than depositors. 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 or bank holding company 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.

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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 conduct otherwise permissible activities if the financial holding company or any of its depository 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 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.

Office of the 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

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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.

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 reviewing complaints and responding to 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 military service members, such as threatening to contact the service 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 adopted 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.  

Financial Stability Oversight Council. The Financial Stability Oversight Council (consisting of the Secretary of the Treasury, heads of the federal bank 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. The Dodd-Frank Act automatically subjected all bank holding companies and foreign banks with $50 billion or more in total consolidated assets designated by the Financial Stability Oversight Council as “systemically important” to enhanced prudential regulation. 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. In 2018, the President signed into law the EGRRCPA, which created a more “tiered” and “tailored” enhanced prudential standards regime for banks. See “Dodd-Frank Act and Related Regulations” below, for additional information.

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. 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.

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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 $10 billion or more, such as the Company.

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.

As also 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 included the Federal Reserve’s resolution plan, capital plan and stress testing rules, as well as a final rule regarding enhanced prudential standards. The final enhanced prudential standards rule, inclusive of subsequent amendments including Tailoring Rules amendments discussed below, address a diverse array of regulatory subjects, each of which is highly complex. In some instances, the rule imposes new financial regulatory requirements and in other instances it overlapped 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 formalized 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 2018, the President signed into law the EGRRCPA, which amended various provisions of the Dodd-Frank Act as well as other federal banking statutes. 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 determined to apply enhanced prudential standards to any such institution.

In October 2019, the federal banking agencies issued two final rules related to the implementation of the EGRRCPA (the “Tailoring Rules”). The final rules assign banks with $100 billion or more in total assets, including U.S. intermediate holding companies of certain foreign banking organizations, such as MUAH, to one of four risk-based categories that increased stringency based on risk-based indicators, such as measures of size, cross-jurisdictional activity, weighted short-term wholesale funding, nonbank assets, and off-balance sheet exposure, with each category assigned its own tailored requirements based on the risk profile of its combined U.S. operations or its bank or intermediate holding company-level assets. These rules became effective on December 31, 2019. The Tailoring Rules introduce significant regulatory reporting requirements for liquidity-related regulatory reporting on a U.S. operations basis but do not have an impact on MUAH from a capital planning, capital management and liquidity perspective.

Based on MUAH’s analysis of the Tailoring Rules’ capital and liquidity requirements as measured on a bank and intermediate holding company basis (excluding additional U.S. operations), which are based, in part, on the size and complexity of an FBO’s activities in the U.S., MUAH believes that it falls within the least restrictive of those risk-based categories (“Category IV”). Under the Tailoring Rules, Category IV institutions generally have lower risk profiles than those subject to Category I, II, or III standards.

In one of the Tailoring Rules, the federal banking agencies amended certain elements of their regulatory capital rules and standardized liquidity requirements to apply tailored capital and liquidity requirements to large banking organizations in each of the four risk-based categories of institutions described in the Tailoring Rules. Under the final rules, the capital requirements applicable to U.S. intermediate holding companies, such as MUAH, are generally consistent with those applicable to U.S. bank holding companies and savings and loan holding companies of a similar size and risk profile. The final Tailoring Rules determine the applicability of liquidity standards with respect to a U.S. intermediate holding company, such as MUAH, based on its risk profile, rather than the combined U.S. operations of the FBO. Under this rule, Category IV

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firms (such as MUAH) will be required to conduct internal liquidity stress tests quarterly rather than monthly and will be subject to simplified liquidity risk management requirements. Category IV firms will still be required to maintain a liquidity buffer that is sufficient to meet the projected net stressed cash-flow need over a 30-day planning horizon under the firm’s internal liquidity stress test and will remain subject to monthly tailored liquidity reporting requirements. Also, under this Tailoring Rule, Category IV firms (like MUAH) are no longer required to conduct and publicly disclose the results of company-run capital stress tests and are subject to a supervisory capital stress test conducted by the Federal Reserve every other year rather than every year.

The final Tailoring Rules adopted by the federal banking agencies also provide that Category IV firms will not be subject to the countercyclical capital buffer or the supplementary leverage ratio and will be allowed to opt out of including most elements of accumulated other comprehensive income (“AOCI”) in regulatory capital. The Tailoring Rules also eliminate or apply a reduced LCR requirement to banking organizations subject to Category IV standards. See “Regulatory Capital and Liquidity Standards - Liquidity Coverage Ratio” below, for additional information.

Effective October 2018, the Federal Reserve adopted a final rule to establish single-counterparty credit limits for BHCs and foreign banking organizations with $250 billion or more in total consolidated assets, including any U.S. intermediate holding company of such a foreign banking organization with $50 billion or more in total consolidated assets, such as MUAH (together, “covered foreign entities”), and any BHC identified as a GSIB under the Federal Reserve’s capital rules. The Tailoring Rules removed U.S. intermediate holding companies subject to Category IV standards from the applicability of single-counterparty credit limits. A foreign banking organization with total consolidated assets that equal or exceed $250 billion, such as MUFG, is still subject to the single-counterparty credit limits; however, it may comply with single-counterparty credit limits applicable to its combined U.S. operations by certifying that it meets, on a consolidated basis, standards established by its home country supervisor that are consistent with the BCBS large exposure standard.

The Federal Reserve's 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.

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. MUAH became the IHC for the U.S. operations of MUFG and MUFG Bank, Ltd. on July 1, 2016.

The Federal Reserve's rules impose certain 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., is 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 is 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.

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.

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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.

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.

As a result of the Volcker Rule, we have not incurred a material adverse impact to our financial results as revenue from prohibited proprietary trading and covered fund investment activities has not contributed, and is expected to continue not to contribute, significantly to our financial results.

The Dodd-Frank Act also changed the previous 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 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 bank 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 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. 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. Under the Tailoring Rules, MUAH as a Category IV firm, retains the ability to exclude certain components of AOCI from its regulatory capital calculations. The Tailoring Rules enacted capital simplification rules amending aspects of the U.S. Basel III Rules which took effect April 1, 2020 for banks not subject to advanced approaches risk-based capital rules.

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The U.S. Basel III Rules also provide for various adjustments and deductions to the definitions of regulatory capital. Under these rules, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, MUAH must hold a standardized capital conservation buffer above its minimum risk based capital requirements (equal to 4.4% of its total risk-weighted assets). Effective October 1, 2020, MUAH's standardized capital conservation buffer was updated as informed by its firm specific supervisory stress testing results released in June 2020. The capital conservation buffer is designed to absorb losses during periods of economic stress.

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 refined the definition of the leverage ratio “exposure measure” (the Basel III term for total non-risk-weighted assets), and introduced 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 assure the bank’s compliance 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.

Capital Planning and 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) and which must include internal enterprise-wide stress testing evaluations and assessments of capital adequacy levels under baseline and economic stressed scenarios. Under the Tailoring Rules, as a Category IV firm, MUAH is subject to supervisory stress testing and CCAR every other year in even years (e.g. MUAH will next be subject to required FRB supervisory stress testing in 2022). CCAR evaluates capital planning processes and assesses capital adequacy levels under various scenarios to determine if BHCs and IHCs 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 or IHC's annual capital plan submission as part of the CCAR process 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 only issue an objection to a capital plan on the basis of qualitative deficiencies in the BHC’s or IHC's capital planning process if a firm subject to CCAR has not yet had their capital plans evaluated on qualitative grounds for four consecutive years. After December 31, 2020, the Federal Reserve has ceased objecting to capital plans on qualitative grounds entirely, other than for firms receiving a qualitative objection in 2020. MUAH continues not to be subject to the CCAR qualitative objection. 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 was designed to ensure that covered banking organizations

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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 applied a less stringent, reduced LCR to BHCs that are not internationally active, and have $50 billion or more in total assets (such as the Company). The Tailoring Rules, discussed above, apply a reduced LCR requirement to a banking organization subject to Category IV standards with weighted short-term wholesale funding of at least $50 billion, but less than $75 billion, calibrated at 70% of the full LCR requirement. The reduced LCR requirement does not apply to a depository institution subsidiary of a banking organization subject to Category IV standards. Further, the LCR rule does not apply to banking organizations subject to Category IV standards with less than $50 billion in weighted short-term wholesale funding. MUAH’s most recent short-term wholesale funding amount as reported in form FR Y-15 does not meet the $50 billion threshold and, therefore, the Company is not subject to the LCR requirement.

Other Federal and State Laws and Regulations Affecting Banks

There are additional requirements and restrictions in the laws and regulations 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.

As required by the Dodd-Frank Act, the FDIC adopted a comprehensive, long-range restoration plan for the FDIC's 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

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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 were 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. MUFG's U.S. operations are covered under the Federal Reserve and FDIC's joint Section 165(d) of the Dodd-Frank Act, and MUB as an insured depository institution is subject to the FDIC's insured depository institution rule, which requires certain insured depository institutions to submit resolution plans, with respect to specification of supervisory requirements for maintaining compliance with "living will" regulations. 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 addition to the Tailoring Rules discussed above, the FRB and FDIC issued amended guidance for resolution plan submissions of certain foreign-based covered companies in December 2020 which amended the 165(d) resolution planning rule. Under the amended guidance and Tailoring Rules, MUFG's U.S. operations are included within required filings by MUFG, alternating between full and targeted resolution plans on a three-year cycle. As specified under the recently issued amended guidance, MUFG will have a transition period to consider the application of the final amended guidance to its resolution plan submission as it was not subject to the 2018 foreign-based owned guidance for its last submission; MUFG will not be expected to have taken the final guidance into consideration in developing its next targeted plan submission due December 17, 2021 and will become subject to full compliance for its next required full resolution plan filing due in 2024.

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. In 2020, the OCC adopted new rules intended to modernize and strengthen the CRA regulations to better achieve their underlying statutory purpose by clarifying which activities qualify for CRA credit, updating where activities count for CRA credit, creating a more transparent and objective method for measuring CRA performance, and providing for more transparent, consistent, and timely CRA-related data collection, recordkeeping, and reporting. The final rule became effective on October 1, 2020, but set mandatory compliance dates based on applicable performance standards. Banks subject to the general performance standards, such as MUB, must comply with the new CRA framework by January 1, 2023. Until compliance with the final rule, national banks must continue to comply with the OCC’s current CRA rules. The new rule can be expected to have a significant impact on the CRA framework of national banks, including MUB.

Fair Lending and Other Consumer Protection 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.

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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.

MUB is also subject to other consumer protection laws including the Home Mortgage Disclosure Act, the Electronic Fund Transfer Act, the Fair Credit Reporting Act, the Real Estate Settlement Procedures Act, the Truth in Lending Act and the Truth in Savings Act. These laws are generally enforced by the CFPB.

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. The GLBA also allows consumers to opt-out of the sharing of certain information among non-affiliates, and imposes other requirements. 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 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, including laws requiring notification to affected individuals and regulators of data security breaches. The State of California has also enacted laws providing 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). It has also created a California Privacy Protection Agency to enforce privacy rights for Californians and impose fines for violations of such rights.

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For additional information regarding federal and California laws and regulations regarding privacy, see “Increasing regulation of data privacy could adversely affect our business" in Part I, Item 1A. "Risk Factors" in this Report on Form 10-K.

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.

Federal Reserve Control Regulations. On January 30, 2020, the Federal Reserve adopted a final rule, effective on September 30, 2020, revising the Federal Reserve’s regulations relating to determinations of whether a company has the ability to exercise a controlling influence over a banking organization or other entity for purposes of the BHCA. This rule outlines a tiered framework that is designed to incorporate the major factors and thresholds, or combinations of factors, that the Federal Reserve will use to determine if a company has control over a bank or other entity, including a company's total voting and non-voting equity investment in the entity; director, officer and employee interlocks between a company and the entity; and the scope of business relationships between a company and the entity. This rule, while generally consistent with the Federal Reserve’s historical practice, in some respects expands on or adds additional rebuttable presumptions of control. This rule could impact the manner in which MUFG makes investments in companies, in particular those that have a presence in the United States.

Regulation of MUSA

MUSA is a registered broker-dealer with the SEC and is a member of FINRA. MUSA is also registered with the MSRB as a broker-dealer.

Much of the regulation of broker-dealers has been delegated to self-regulatory organizations such as 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 Exchange Act (the Uniform Net Capital Rule), Rule 15c3-3 (Customer Protection Rule) 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

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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.

The results of the 2020 national elections with the change of the U.S. President and the shift of control in the U.S. Senate could lead to new legislative and regulatory initiatives or the roll-back of initiatives of the previous Administration which could have significant impact on the banking and financial services industry and on our business. We cannot assess at this time the degree to which this may occur.

The change of Administration in Washington, D.C. is also likely to result in changes in the leadership and other senior positions at the federal bank regulatory agencies. We cannot assess at this time the impact such changes will have on the banking and financial services industry and on our business.

Disclosure pursuant to 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 is required to include, in addition to our activities, transactions or dealings, those 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, 2020, MUFG’s non-U.S. subsidiary, MUFG Bank, engaged in certain limited business activities with entities in, or affiliated with, Iran, including counterparties owned or controlled by the Iranian government. MUFG Bank has a limited number of previously issued letters of credit and guarantees and in some cases, provided limited remittance and other settlement services mainly in connection with its Japanese customer transactions with counterparties in Iran, which transactions are reviewed to assess whether they are exempt from applicable Iran-related sanctions or otherwise permitted by OFAC. These transactions did not involve U.S. dollars or clearing services of U.S. banks for the settlement of payments. For the fiscal year ended December 31, 2020, the aggregate fee income relating to these transactions was less than ¥5 million, representing less than 0.001 percent of MUFG’s total fee income. In addition, some Iranian financial institutions and other entities in, or affiliated with, Iran maintained non-U.S. dollar correspondent accounts and other similar settlement accounts with MUFG Bank outside the United States. In addition to such accounts, MUFG Bank received deposits in Japan from, and provided 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, 2020, 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 ¥5 million, representing less than 0.001 percent of MUFG’s total fee income.

We understand that MUFG Bank 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 has taken the recent sanctions related developments into account and will continue to monitor 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 73 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

The effects of the COVID-19 pandemic have adversely impacted and will likely continue to adversely impact our business, results of operations and financial condition; the ultimate impact of the pandemic on the U.S. and global economies, and on our business, results of operations and financial condition, remain uncertain

The COVID-19 pandemic has severely disrupted economic activity in the U.S., and has adversely impacted our business, results of operation and financial condition. The ultimate impact of the pandemic on the U.S. economy and our business will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic. Responsive actions taken by governmental and regulatory authorities to the pandemic have negatively impacted the U.S. and global economies, disrupted supply chains, created significant volatility and disruption in financial markets, and increased unemployment levels. In addition, the pandemic has significantly increased economic uncertainty, reduced economic activity, and resulted in temporary closures of many businesses and the institution of social distancing and sheltering in place requirements in many states and communities, including many markets where we have operations. We, and other financial services companies, are impacted to a significant degree by current economic conditions.

The economic effects of the pandemic have adversely affected and will continue to adversely affect our revenue, as well as continue to result in the recognition of credit losses in our loan portfolios and increases in our allowance for credit losses, particularly if businesses remain closed, the impact on the global economy worsens, or more customers draw on their lines of credit or seek additional loans to help finance their businesses. 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. Certain of these industries, such as the retail, hospitality, aviation and energy industries, among others, have been, and can expected to continue to be, adversely impacted by the disruptive and recessionary market conditions caused by the pandemic, which could result in higher nonperforming assets for us and elevated loan charge-offs. Because of changing economic and market conditions affecting issuers, we also may be required to recognize impairments on the securities we hold.

In response to the pandemic, among other actions, MUB has offered payment relief options to customers that include the option to select a forbearance plan for our mortgage and home equity line of credit clients, business loan support through participation in the SBA PPP or other relief borrowing or lending programs, flexible relief programs for our consumer and business credit card clients, including payment deferral, delinquency removal and late fee waivers, and fee refunds, and waivers for our consumer and business deposit customers. The overall impact of these measures on our results of operations has been and will continue to be material and adverse. Future governmental and regulatory actions may require us to provide these and additional types of customer-related responses. Various banks, including MUB, that participated in the SBA PPP program or other relief borrowing or lending programs have or may become the subject of purported class-action or other litigation or government investigations regarding their activities under the program.

A substantial majority of our assets, deposits and revenues are generated in California, Oregon and Washington. At the outset of the pandemic, these states issued orders generally requiring residents to shelter in place and to keep non-essential businesses closed. These states have each adopted phase-in plans for reopening with certain standards for each phase.

We may also experience financial losses due to operational factors, including: challenges to the availability and reliability of our network due to changes to normal operations or third party disruptions,

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including potential outages at network providers, call centers and other suppliers; increased cyber fraud risk related to COVID-19, given increased online banking and e-commerce; new or additional regulatory requirements, which could require additional resources and costs to address; or the inability of our work force and third-party vendors to operate from remote locations due to illness, quarantines, government actions, or other restrictions related to the pandemic. Remote work platforms may exacerbate certain risks to our business, including an increased demand for information technology resources, increased risk of cyber attacks, and increased information security risk involving, among other risks, the unauthorized dissemination of sensitive personal information or proprietary or confidential information about us, our customers or other third parties.

Even after the COVID-19 outbreak has subsided, we may continue to experience materially adverse impacts to our business as a result of the national and global economic impact of the virus, including the availability of credit, adverse impacts on our liquidity, and any recession that has occurred or may occur in the future, or litigation, enforcement, and/or investigation activity. Given the many challenges and uncertainties resulting from the pandemic, there is a risk that conditions will be substantially different than we are currently expecting. However, the effects of the pandemic can be reasonably expected to have an adverse impact, which could be material, on our business, results of operations and financial condition, and heighten many of our known risks described in this “Risk Factors” section.

The governmental stimulus measures introduced in response to the COVID-19 pandemic have increased, and can be expected to continue to increase, federal budget deficits and the national debt level, while federal, state and local tax revenue can be expected to decline along with economic activity. These events can be expected to adversely affect the long-term sovereign credit rating of United States debt, and downgrades by the credit rating agencies with respect to the obligations of the U.S. federal government could occur. Any such downgrades could increase the U.S. government’s cost of borrowing, which may worsen its fiscal challenges, as well as generate upward pressure on interest rates generally, which could, in turn, have adverse consequences for our borrowers and the level of business activity. These developments could also create further challenges for MUSA’s securities business, 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, as the COVID-19 pandemic has created significant volatility and disruption in financial markets.

The phase-out of LIBOR could adversely impact our business and results of operations, and the value of certain financial instruments we hold or have issued

In July 2017, the Chief Executive of the U.K. Financial Conduct Authority (FCA), which regulates the process of setting LIBOR, announced that it intends to stop persuading or compelling banks to submit rates for the calculation of LIBOR after 2021. In November 2020, LIBOR’s administrator, ICE Benchmark Administration Limited (IBA) announced that it will consult on its intention to cease the publication of the one week and two month U.S. dollar LIBOR settings as of the end of 2021 and the remaining U.S. dollar LIBOR settings as of June 30, 2023. The FCA and the U.S. bank regulators concurrently expressed their support of this proposal, indicating that the June 30, 2023, cessation date would allow time for legacy contracts executed before January 1, 2022 to mature. The U.S. bank regulators also encouraged banks to stop entering into LIBOR-based contracts by the end of 2021.

The phase-out of LIBOR creates a broad range of risks and challenges (including financial, operational, legal, reputational, compliance and market risks) for the banking industry and could adversely impact our businesses and results of operations, and the value of certain financial instruments originated or held by us that use LIBOR as a reference rate. LIBOR is used as a reference rate for many of our transactions, including derivatives and other contracts used for hedging and trading account purposes, loans to commercial customers and consumers (including mortgage loans and other loans), and long-term borrowings. For additional information, see “Management's Discussion and Analysis of Financial Condition and Results of Operations - Market Risk Management - LIBOR Transition” in Part II, Item 7. in this Form 10-K.

There are ongoing efforts to establish an alternative reference rate. The Secured Overnight Financing Rate (or SOFR) published by the Federal Reserve Bank of New York is considered a likely alternative reference rate suitable for replacing LIBOR and similar benchmarks. SOFR is a broad measure of the cost of overnight borrowings collateralized by U.S. Treasury securities. As a result, the scope of its ultimate

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acceptance and the impact on rates, pricing and the ability to manage risk, including through derivatives, remain uncertain.

Even if SOFR or another reference rate ultimately replaces LIBOR, risks and challenges will remain for us with respect to outstanding loans, derivatives or other instruments using LIBOR, which will need to be transitioned to a new reference rate that is unlikely to exactly track, or produce the economic equivalent of, LIBOR. Risks related to transitioning instruments to a new reference rate or to how LIBOR is calculated and its availability are likely to vary by asset class and contract and will require considerable effort and expense to renegotiate contracts for outstanding financial assets and liabilities and include impacts on the yield on loans or securities held by us, amounts paid on securities we have issued, or amounts received and paid on derivative instruments we have entered into. While some of our existing products or contracts include fallback provisions to alternative reference rates, other products or contracts may not include adequate fallback provisions and may require consent of all parties to any modification. The market transition from LIBOR and similar benchmarks could adversely affect the return on and pricing, liquidity and value of our outstanding products and contracts, cause market dislocations, increase the cost of and access to capital and increase the risk of disputes and litigation, including in connection with the interpretation and enforceability of our outstanding products and contracts.

Difficult market conditions adversely affect the U.S. banking industry

Economic pressure on consumers and lack of confidence in the financial markets have adversely affected our business, financial condition and results of operations and could do so again. 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. Additionally, global markets may be adversely affected by natural disasters, widespread health emergencies or pandemics, cyber attacks, military conflict, terrorism or other geopolitical events. In particular, we may face the following risks in connection with these events:

•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.

•Our ability to borrow from other financial institutions on favorable terms or at all could be adversely affected by 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 to access such markets.

•Significant fluctuations in the prices of equity and fixed income securities could adversely impact our 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 on the values of assets it manages, and declines in those asset values reduces the amount of fees charged.

•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.

•Given the inter-connectivity of the global economy, pandemic disease and health events, such as the COVID-19 pandemic, have the potential to negatively impact economic activities in many countries, including the U.S., with consequent adverse effects on our customers and business.

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•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 have the potential to disrupt global and U.S. economic activity with consequent adverse effects on our business.

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 extensive federal and state regulation, supervision and legislation that governs almost all aspects of our operations. These laws and regulations are intended primarily for the benefit and protection of our depositors and other customers, and the FDIC and the banking system as a whole, and less so for the benefit or protection of investors in our securities. In the past, our business has been materially affected by these regulations. We expect this will continue in the future. Laws or regulations, including accounting standards and interpretations, currently affecting us and our subsidiaries may change over time. Regulatory authorities may change their interpretation of, and intensify their examination of compliance with, these regulations. Therefore, our business may be adversely affected by changes in laws, regulations, or interpretations or regulatory approaches to compliance and enforcement. 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.

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. 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 sanctions.

Reform of the financial services industry resulting from the Dodd-Frank Act enacted in 2010 and EGRRCPA, signed into law in May 2018 which amended various provisions of the Dodd-Frank Act, have affected U.S. financial institutions, including us, in many ways, some of which have increased, or may increase in the future, the cost of doing business and present other challenges. For additional information, see "Supervision and Regulation – Dodd-Frank Act and Related Regulations" in Part I, Item 1. "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.

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 federal law, a BHC is expected to act as a source of financial and managerial strength for its subsidiary banks. As a result, we may be required to commit financial and other resources to our subsidiary bank in circumstances where we might not otherwise do so. The monetary policies of the Federal Reserve can be expected to have a material effect on our business, prospects, results of operations and financial condition. For additional information regarding the impact of the Federal Reserve’s monetary policies on interest rates and our net interest margin, see “Fluctuations in interest rates on loans and deposits could adversely affect our business” below in this “Risk Factors” section. Refer to

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"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.

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 for credit losses through a charge to earnings. The allowance amount is based on an estimate of the credit losses that are expected over the life of the loan or unfunded credit commitment. The process for determining the allowance amount 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.

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 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.

Fluctuations in interest rates on loans and deposits 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 loan and investment portfolios, our ability to originate new loans and our ability to grow. An increase in market interest rates could adversely affect the ability of our floating-rate borrowers to meet their higher payment obligations and could result in an increase in nonperforming assets and charge-offs. Conversely, decreases in interest rates could result in an acceleration of loan prepayments that could negatively affect our profitability. Increases in interest rates could also diminish the flow of corporate debt offerings in the securities markets generally and adversely impact the investment banking business of MUSA which is dependent on the sales of debt securities issued by its customers.

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. In 2020, as a result of the impact of the COVID-19 pandemic, the Federal Reserve reduced the federal funds rate dramatically (to .00 to .25 percent) and has indicated that such low rates can be expected to continue for the next several years. The long-term impact of these measures on the U.S. economy and financial markets cannot be predicted with certainty at this time. For additional information, see "Supervision and Regulation" in Part I, Item 1. "Business" in this Form 10-K.

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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 or as being more secure. 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. 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.

If 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 expansion of the U.S. economy resumes after the pandemic subsides, 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 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; and there are an increasing number of non-bank competitors providing financial services

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 financial and non-financial services firms, such as traditional banks, online banks, financial technology companies and others. Competition in our industry may further intensify as a result of the recent and increasing level of consolidation of financial services companies. 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 have lower overhead costs and 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. If consumers and small businesses do not use banks for their financial transactions, we could potentially lose interest and fee income, deposits and income generated from those deposits and other financial transactions. 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.

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, has been impacted in the past by adverse economic markets and could be adversely impacted by the current pandemic. 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, retail, and energy industries in particular, were also adversely impacted by recessionary market conditions and other emerging developments that are disruptive to their customary business models. Poor economic conditions and financial access for commercial

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real estate developers and homebuilders could adversely affect property values, resulting in higher nonperforming assets and charge-offs in this sector.

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. 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.

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 operations.

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.

California economic conditions, have been, and can reasonably be expected to continue to be, adversely affected by the COVID-19 pandemic, which could adversely affect our business

A substantial majority of our assets, deposits and revenue is generated in California. As a result, poor economic conditions in California may cause us to incur losses associated with higher loan default rates and decreased collateral values in our loan portfolio. In response to the COVID-19 pandemic, the California state government has taken a number of actions and instituted restrictions on economic and social activities, which continue to be updated with the changing conditions. The COVID-19 pandemic has significantly increased economic uncertainty, reduced economic activity and increased unemployment levels, especially in California. The various economic and health measures introduced by the State of California in response to the COVID-19 pandemic have increased state spending at a time when the current economic slowdown can be expected to result in reduced state tax revenues, perhaps for a prolonged period.

In recent years, municipalities and other governmental units in California have experienced budgetary difficulties and several California municipalities filed for protection under the Bankruptcy Code. As a result, concerns have arisen regarding the outlook for the governmental obligations of California municipalities and other governmental units. If the budgetary and fiscal difficulties of the California state government and California municipalities and other governmental units recur or economic conditions in California significantly decline, we expect that our problem assets could increase and our prospects for growth could be impaired.

For a number of years in the past decade, California has also experienced severe drought, wildfires or other natural disasters. It can be expected that these events will continue to occur from time to time in the areas served by MUB, and that the consequences of these natural disasters, including programs of public utility public safety power outages when weather conditions and fire danger warrant, may adversely affect MUB’s business and that of its customers. It is also possible that climate change may be increasing the severity or frequency of adverse weather conditions, thus increasing the impact of these types of natural disasters on our business and that of our customers.

Our credit ratings are important in order to maintain liquidity; our credit ratings could be adversely affected by negative changes in the credit ratings of our parent companies

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. These ratings are based on a number of factors including our financial strength, ability to generate earnings, and other factors,

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some of which are not entirely within our control, such as conditions affecting the financial services industry and the economy. Additionally, changes in the credit ratings, operations, financial condition or prospects of our parent companies, MUFG Bank, Ltd. and MUFG, could also adversely impact our credit ratings. No assurance can be given that we will maintain our current ratings. Further, as a result of the COVID-19 pandemic and concerns over its financial impacts on the U.S. and global economies and the credit effects on companies, credit rating agencies continue to reevaluate and revise the outlook or credit ratings for many companies, including MUAH, which could result in a negative ratings action or downgrade.

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 or enter into derivative transactions with 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.

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

MUFG Bank, Ltd., 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 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 our parents' control over the election of our directors, they could at any time change the composition of our Board of Directors so that it would not have a majority of independent directors.

We could be adversely affected by the regulatory condition of MUFG Bank, Ltd. or MUFG, litigation affecting them or conflicts of interest with our parents

Adverse changes in the regulatory condition or litigation affecting our parents could adversely affect us, due to the reputational impact of such matters or in other ways. MUFG Bank, Ltd. and MUFG are 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.

The views of MUFG Bank, Ltd. and MUFG regarding customers, new businesses, strategies, acquisitions, divestitures or other initiatives, including compliance and risk management, may differ from ours. This may prevent or hinder us from pursuing individual initiatives or cause us to incur additional costs and subject us to additional oversight. MUSA receives a significant portion of its business from referrals from our parents and their affiliated entities. If such referrals diminish, this could materially adversely impact MUSA’s business.

MUFG Bank, Ltd.’s risk management processes manage 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, other banking transactions, or certain 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.

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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 to MUFG Bank, Ltd. or MUFG, could create or appear to create potential conflicts of interest. 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 potential conflicts of interests with our parents. While the corporate governance policies adopted by MUAH, MUB, MUSA, MUFG and MUFG Bank, Ltd. address 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.

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. Third-party vendors have played and will continue to play a key role in the implementation of our technology enhancement and replacement projects, including our Transformation and Rewiring Programs. 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 the 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. In recent years, there has been consolidation in the number of major vendors supporting financial institutions such as MUB, resulting in increased concentration risk for such institutions. This risk could be increased if the COVID-19 pandemic results in failures or additional combinations of such vendors.

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

As a holding company, a portion of our cash flow comes from dividends our bank and non-bank subsidiaries pay to us. Various regulations restrict the amount of dividends MUB can pay to us without prior regulatory approval. 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 from 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. 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; 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 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.

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.

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Increasing regulation of data privacy could adversely affect our business

Laws and regulations related to data privacy and data security are increasing, as Federal, state and foreign governments continue to adopt new laws and regulations addressing the collection, processing, storage, use, and security of personal and confidential information. Further, these laws and regulations are aimed at the use of personal information for marketing purposes in some cases. Laws and regulations designed to protect the privacy and security of customer information apply to us and our subsidiaries. These laws limit the handling and sharing of data. 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 or impose additional compliance costs could adversely affect our business, results of operations and financial condition. For additional discussion, see “Supervision and Regulation” in Part I, Item 1. "Business" in this Form 10-K.

On January 1, 2020, the California Consumer Privacy Act of 2018 (the “CCPA”) became effective. This law 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 gives 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.

In November 2020, California voters approved state-wide Proposition 24, also known as the California Privacy Rights and Enforcement Act of 2020 (the “CPREA”) which expanded and amended certain provisions of the CCPA and created the California Privacy Protection Agency to enforce privacy rights for Californians and impose fines for violations of such rights. The CPREA requires businesses to not share a consumer’s personal information upon the consumer’s request, provides consumers with an opt-out option for having their sensitive personal information used or disclosed for advertising or marketing, to obtain permission for collecting data on certain minors, and to correct a consumer’s inaccurate information upon the consumer’s request. It also removed the ability of businesses to remedy violations before being penalized for violations and increased the penalties for such violations. Most of the provisions of the CPREA will take effect in 2023 but some portions, such as the creation of the new state agency, will go into effect immediately. The impact of these laws on the business of MUB is yet to be determined, but they 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.

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. 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. We may experience turnover among members of management and must successfully integrate any new management personnel into the organization to achieve our operating objectives as new management becomes familiar with our business.

We need to effectively integrate technological change to maintain and enhance our competitive position; our current technological and other operational initiatives may strain our available resources

The financial services industry is undergoing rapid technological change which includes the introduction of new products and services based on new or enhanced technologies. Examples include cloud computing, artificial intelligence and machine learning, biometric authentication and data protection enhancements, as well as increased online and mobile device interaction with customers. We have been

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investing in technology to facilitate the ability of our customers to engage in financial transactions and for many other purposes, including our Transformation Program (see “Management's Discussion and Analysis of Financial Condition and Results of Operations - Executive Overview” in Part II, Item 7. in this Form 10-K). The maintenance of our competitive position depends, in part, upon our ability to meet the needs of our customers through the application of new technologies. If we fail to maintain or enhance our competitive position with regard to technology, whether because we fail to anticipate customer needs and expectations or because our technological initiatives fail to perform as desired or are not timely implemented, we may lose market share or incur additional expense.

In addition to our technology programs and initiatives, there are a number of other operational and other initiatives which require our attention and resources. These include implementation of our Rewiring Program (see “Management's Discussion and Analysis of Financial Condition and Results of Operations - Executive Overview” in Part II, Item 7. in this Form 10-K), various other regulatory or strategic initiatives, and integration of new employees and key management personnel. Our ability to execute our core operations and to implement technology and other important initiatives may be adversely affected if our resources are insufficient or if we are unable to allocate available resources effectively.

Significant legal or regulatory proceedings could subject us to adverse financial and reputational risks

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. Such claims also can divert the attention of senior management. We may be exposed to substantial liabilities which could adversely affect our business, prospects, results of operations, reputation and financial condition.

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.

We are subject to a wide array of operational risks

We are subject to many types of operational risks throughout our organization. Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from 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 our Transformation and Rewiring Programs, increased reliance on internally developed models for risk and finance management and compliance, including models associated with regulatory capital requirements, the pricing of various products, grading loans, measuring interest rate and other market risks, predicting losses, and other activities and risks; 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

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computer or telecommunications systems; and operational risks related to use of third party service providers. To the extent that any such models which we use are not correctly designed or are poorly implemented, our business could be at risk and information we furnish to the public or regulators could be rendered inaccurate or misleading, which, in turn, could have adverse consequences for our regulatory relations and public perceptions of our Company. A discussion of risks associated with regulatory compliance appears above in these “Risk Factors” 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”.

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 increasing 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. 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 third-party service providers, there can be no assurance that the risk management efforts of our providers will be successful in preventing all cybersecurity incidents.

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. Our systems as well as our third-party service providers may be vulnerable to cyber attacks, breaches, unauthorized access, misuse, computer viruses or other malicious code and other events that could have significant negative consequences to us. The various forms of cyber attacks or other information security breaches are referred to herein as “cybersecurity incidents”. Such cybersecurity incidents 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, government investigation activity, regulatory enforcement actions, and /or financial losses that are either not insured against or not fully covered by our insurance or result in regulatory consequences or reputational harm, any of which could harm our competitive position, operating results and financial condition. We maintain cyber insurance, but this insurance may not cover all costs associated with cybersecurity incidents or the consequences of personal or confidential information being compromised. 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 cybersecurity risks.

We may also be subject to disruptions of our business from external events such as power, internet and communications outages, natural disasters (such as earthquakes or wildfires) and terrorist attacks. While we maintain business recovery plans, they may not work as intended.

Our business and operations are subject to a wide array of cybersecurity risks

Like other financial institutions, we have been the target of various denial-of-service or other cybersecurity incidents (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 cybersecurity in advance of future and more advanced cybersecurity incidents. These cybersecurity incidents originate from a variety of sophisticated sources who may be involved with organized crime, linked to terrorist organizations or hostile countries and have extensive resources to disrupt our operations or the financial system more generally. The potential for denial-of-service and other cybersecurity incidents requires substantial resources to defend and may affect customer satisfaction and behavior. To date, we have not

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experienced any material losses relating to cybersecurity incidents, but there can be no assurance that we will not suffer such losses or information security breaches in the future. A successful cybersecurity incident could result in a material disruption of our operations, exposure of confidential information and financial loss to us, our clients, customers and counterparties and could lead to significant exposure to litigation, government investigations, and/or regulatory fines, penalties and other sanctions as well as reputational damage. While we have a variety of cybersecurity measures in place, the consequences to our business of such cybersecurity incidents cannot be predicted with any certainty.

In addition, there have been increasing efforts on the part of cyber criminals to breach data security at financial institutions and other companies, such as large retailers, 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 claims by customers or others and could adversely affect our reputation and could lead to a material loss. A breach or failure of our information systems or controls could lead to the unauthorized release or loss or destruction of personal or confidential information about our customers, employees or other third parties in our possession. There has also been a significant increase in consumer information available on the internet arising from breaches of third-party entities. This can create a vulnerability for our customers if their log-in credentials at the Bank are the same or similar to those that have been compromised on other sites, including the risk of illicit account access, data loss and fraud. Even if cybersecurity incidents 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 and State Laws and Regulations Affecting Banks - Customer Information Security" and "Privacy" in Part I, Item 1. "Business" in this Form 10-K.

We, and other banking institutions, are also at risk of increased losses from fraudulent conduct of criminals or criminal organizations using increasingly sophisticated techniques. This criminal activity is taking many forms, including debit/credit card fraud, check fraud, mechanical devices affixed to ATM’s, phishing attacks to obtain personal information, or impersonation of customers through falsified or stolen credentials, or business email compromise. We, and other banking institutions, are also at risk of fraudulent or criminal activities by employees, contractors, vendors and others with whom we do business. There is also the risk of errors by our employees and others responsible for the systems and controls on which we depend and any resulting failures of these systems and controls could significantly harm our Company.

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. 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 a cybersecurity incident. Failure to observe this regulatory guidance could subject us to various regulatory sanctions, including financial penalties. Additionally, our business recovery plan may not work as intended or may not prevent significant interruptions of our operations. Any such event could adversely impact our results of operations, liquidity or financial condition. Further, as cyber threats continue to evolve, we may be required to apply substantial additional resources to modify or enhance our systems, investigate and remediate any cyber vulnerabilities or incidents and develop our ability to respond and recover.

The risks associated with cybersecurity are also increasing due to the proliferation of new technologies and the use of the internet and telecommunications technologies to conduct financial transactions.

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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. 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, cybersecurity breaches or from actions taken by regulators and community organizations in response to those activities. 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, litigation, government investigations and/or regulatory actions, as well as 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 and mitigate 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 its underlying assumptions, such as our modeling methodologies, may not be effective under all conditions and circumstances. In our 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

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.

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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. 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, transfer pricing, goodwill impairment analysis and income taxes. Because of the uncertainty of estimates involved in deciding these matters, we may be required to 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.

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 319,000 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 348 branches, primarily located in California.

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.

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 39 of this report.

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ITEM 7A.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Item 7A. to this Form 10-K begins on page 63 of this report.

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Item 8. to this Form 10-K begins on page 73 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 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 145. The Report of Independent Registered Public Accounting Firm is presented on page 149. During the quarter ended December 31, 2020, 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.

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.

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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.

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 2020 and 2019. All fees were pre-approved by our Audit & Finance Committee.

(Dollars in thousands)	2020		2019
Audit Fees(1)	$	9,089	$	7,271
Audit-Related Fees(2)	2,726		2,704
Tax Fees(3)	261		410
Total	$	12,076	$	10,385

(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. 2020 includes costs associated with the adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments (CECL), and additional fees for scope changes and audit fees.

(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 Statement on Standards for Attestation Engagements 18.

(3)Tax fees include fees for tax compliance, advice and planning services. Fees related to tax compliance and preparation for 2020 and 2019 were $23,000 and $24,000, respectively. For 2020 and 2019, fees related to tax advice and planning were $238,000 and $386,000, 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.

PART IV

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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 73 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.

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MUFG Americas Holdings Corporation and Subsidiaries

Table of Contents

Management's Discussion and Analysis of Financial Condition and Results of Operations	39
Introduction	42
Executive Overview	42
Financial Performance	44
Balance Sheet Analysis	48
Capital Management	52
Risk Management	55
Critical Accounting Estimates	69
Non-GAAP Financial Measures	71
Audited Financial Statements:
Consolidated Statements of Income	73
Consolidated Statements of Comprehensive Income	74
Consolidated Balance Sheets	75
Consolidated Statements of Changes in Stockholders' Equity	76
Consolidated Statements of Cash Flows	77
Note 1—Summary of Significant Accounting Policies and Nature of Operations	78
Note 2—Securities	87
Note 3—Loans and Allowance for Loan Losses	91
Note 4—Other Assets	100
Note 5—Goodwill and Other Intangible Assets	100
Note 6—Variable Interest Entities	102
Note 7—Deposits	104
Note 8—Securities Financing Arrangements	104
Note 9—Commercial Paper and Other Short-Term Borrowings	107
Note 10—Long-Term Debt	108
Note 11—Fair Value Measurement and Fair Value of Financial Instruments	110
Note 12—Derivative Instruments and Other Financial Instruments Used For Hedging	118
Note 13—Accumulated Other Comprehensive Income	120
Note 14—Management Stock Plans	122
Note 15—Employee Pension and Other Postretirement Benefits	124
Note 16—Other Noninterest Income and Noninterest Expense	133
Note 17—Income Taxes	133
Note 18—Regulatory Capital Requirements	135
Note 19—Restrictions on Cash and Due from Banks, Securities, Loans and Dividends	137
Note 20—Commitments, Contingencies and Guarantees	137
Note 21—Related Party Transactions	138
Note 22—Business Segments	140
Note 23—Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company)	144
Management's Report on Internal Control over Financial Reporting	146
Report of Independent Registered Public Accounting Firm	147

38

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, 2020, 2019 and 2018 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)	2020			2019			2018
Results of operations:
Net interest income	$	3,077		$	3,093		$	3,307
Noninterest income	2,905			2,705			2,177
Total revenue	5,982			5,798			5,484
Noninterest expense	5,021			6,215			4,277
Pre-tax, pre-provision (loss) income(1)	961			(417)			1,207
(Reversal of) provision for credit losses	829			252			106
(Loss) income before income taxes and including noncontrolling interests	132			(669)			1,101
Income tax expense (benefit)	(18)			82			52
Net (loss) income including noncontrolling interests	150			(751)			1,049
Deduct: Net loss from noncontrolling interests	16			17			24
Net (loss) income attributable to MUAH	$	166		$	(734)		$	1,073
Balance sheet (period average):
Total assets	$	167,301		$	170,324		$	160,529
Total securities	24,341			26,695			27,395
Securities borrowed or purchased under resale agreements	17,698			22,721			20,486
Total loans held for investment	86,484			88,288			82,746
Earning assets	153,901			156,578			147,136
Total deposits	100,989			94,210			86,478
Securities loaned or sold under repurchase agreements	24,310			27,902			26,906
MUAH stockholders' equity	16,807			16,866			18,400
Performance ratios:
Return on average assets(2)	0.10		%	(0.43)		%	0.67		%
Return on average MUAH stockholders' equity(2)	0.99			(4.35)			5.83
Return on average MUAH tangible common equity(2)(3)	3.53			6.29			7.35
Efficiency ratio(4)	83.93			107.18			77.98
Adjusted efficiency ratio(5)	73.12			74.69			72.47
Net interest margin(2)(6)	2.01			1.99			2.26
Net loans charged-off to average total loans held for investment (2)	0.39			0.25			0.10

39

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Financial Highlights (Continued)

	As of December 31,
	2020			2019			2018
Balance sheet (end of period):
Total assets	$	167,846		$	170,810		$	168,100
Total securities	25,570			27,210			27,215
Securities borrowed or purchased under resale agreements	17,608			23,943			22,368
Total loans held for investment	82,166			88,213			86,507
Nonperforming assets	711			329			422
Total deposits	102,426			95,861			90,979
Securities loaned or sold under repurchase agreements	27,161			28,866			27,285
Long-term debt	14,631			17,129			17,918
MUAH stockholders' equity	17,189			16,280			16,508
Credit ratios:
Allowance for loan losses to total loans held for investment(7)	1.55		%	0.61		%	0.55		%
Allowance for loan losses to nonaccrual loans(7)	179.01			164.19			112.50
Allowance for credit losses to total loans held for investment(8)	1.63			0.73			0.71
Allowance for credit losses to nonaccrual loans(8)	188.15			197.34			145.61
Nonperforming assets to total loans held for investment and OREO	0.87			0.37			0.49
Nonperforming assets to total assets	0.42			0.19			0.25
Nonaccrual loans to total loans held for investment	0.87			0.37			0.49
Capital ratios:
Regulatory (9):
Common Equity Tier 1 risk-based capital ratio	15.28		%	14.10		%	13.96		%
Tier 1 risk-based capital ratio	15.28			14.10			13.96
Total risk-based capital ratio	16.29			14.73			14.60
Tier 1 leverage ratio	9.56			8.88			8.77
Other:
Tangible common equity ratio(10)	9.38		%	8.45		%	7.89		%

40

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Financial Highlights (Continued)

(1)Pre-tax, pre-provision income (loss) 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 (loss) attributable to MUAH excluding intangible asset amortization and goodwill impairment 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. See "Non-GAAP Financial Measures" in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-K for additional 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. and goodwill impairment) 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 noninterest expense for the impact of goodwill impairment and revenue for the impact of the TCJA enhances comparability between periods. See "Non-GAAP Financial Measures" in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-K for additional information.

(6)Net interest margin is presented on a taxable-equivalent basis using the federal statutory tax rate of 21%.

(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 guidelines set forth in the U.S. federal banking agencies' final U.S. Basel III regulatory capital rules and all applicable amendments.

(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. See "Capital Management" in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-K for additional 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 parties 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, Global Corporate & Investment Banking - U.S., Transaction Banking and MUSA. We service Global Corporate & Investment Banking - U.S., certain Transaction Banking, and MUSA customers through the MUFG brand and serve Regional Bank and Transaction Banking customers through the Union Bank brand. See Note 22 to our consolidated financial statements included in this Form 10-K for more information about our reportable segments.

Executive Overview

We are providing you with an overview of what we believe are the most significant factors and developments that affected our 2020 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 2020, revenue was comprised of 51% net interest income and 49% 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.

In order to better serve our clients and reduce our cost base, we have launched two multi-year initiatives that we believe are critical to our success: our technology-focused Transformation Program and our continuous improvement, cost-reduction focused Rewiring Program. The Transformation Program is based on three pillars: transformation of our core banking systems, data analytics and functionality, and technology modernization. The Rewiring Program targets four areas: workforce geographic distribution, organizational design, procurement, and process simplification and automation.

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Performance Highlights

Net income (loss) attributable to MUAH was $166 million in 2020 compared with $(734) million in 2019. The increase in net income was largely due to the $1.6 billion goodwill impairment charge recorded in the third quarter of 2019. The Company recorded an additional impairment charge of $357 million in the third quarter of 2020. For additional information regarding the goodwill impairment charge, see "Goodwill Impairment" in this "Management's Discussion and Analysis of Financial Condition and Results of Operations."

The global pandemic from the spread of COVID-19 and governmental responses thereto significantly impacted the U.S. and California economies in 2020 and continue to cause significant ongoing economic uncertainty. The provision for credit losses, which was substantially driven by the impact of COVID-19 and the corresponding deterioration in the economic environment, was $829 million in 2020, compared with $252 million in 2019. Although our economic forecast stabilized in the second half of 2020, elevated COVID-19-related uncertainty remains, particularly with respect to a potential resurgence in COVID-19 cases and additional fiscal stimulus, which affects our critical accounting estimates, including our assumptions used to estimate the allowance for credit losses and used in our goodwill impairment analysis, and may adversely affect our business and results of operations in many other ways, the ultimate impact of which cannot be predicted at this time. See "Critical Accounting Estimates” in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in Part I. Item 1A in this Form 10-K.

On January 1, 2020, the Company adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provided new guidance on the accounting for credit losses for instruments that are within its scope. This new guidance, commonly referred to as the CECL model, primarily impacts the Company's loans and certain off-balance sheet credit exposures and requires an entity to recognize its estimate of credit losses expected over the life of the financial instrument or exposure by incorporating forward-looking information, such as reasonable and supportable forecasts, in the entity's assessment of the collectability of financial assets. Incorporating forward-looking information into the estimate of credit losses may result in more volatility in the allowance for credit losses and related provision, particularly when the economic environment is more uncertain, such as during 2020. Upon adoption, the Company recorded an increase to the allowance for credit losses of $199 million, primarily due to an increase in the allowance for consumer loans. The Company elected to calculate its regulatory capital ratios using the CECL five-year transition option as prescribed by the U.S. bank regulatory agencies. See "Risk Management - Credit Risk Management" in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1 and Note 3 to our consolidated financial statements in this Form 10-K.

Capital Ratios

The Company's capital ratios continued to exceed all well-capitalized and minimum regulatory thresholds for BHCs, as applicable. The Company's U.S. Basel III Common Equity Tier 1, Tier 1 and Total risk-based capital ratios were 15.28%, 15.28% and 16.29%, respectively, at December 31, 2020. The Company's Tier 1 leverage ratio was 9.56% at December 31, 2020.

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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, 2020						December 31, 2019						December 31, 2018
(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	$	29,546	$	903	3.06	%	$	25,721	$	1,090	4.24	%	$	23,667	$	989	4.18	%
Commercial mortgage	16,734		537		3.21		15,805		640		4.05		14,704		614		4.18
Construction	1,626		55		3.38		1,587		83		5.22		1,656		80		4.86
Lease financing	990		44		4.45		1,241		63		5.05		1,437		62		4.31
Residential mortgage and home equity	33,730		1,094		3.25		40,077		1,427		3.56		39,585		1,421		3.59
Other consumer	3,858		352		9.11		3,857		336		8.74		1,697		148		8.73
Total loans held for investment	86,484		2,985		3.45		88,288		3,639		4.12		82,746		3,314		4.01
Securities	24,341		477		1.96		26,695		629		2.36		27,395		677		2.47
Securities borrowed or purchased under resale agreements	17,698		190		1.08		22,721		765		3.37		20,486		652		3.18
Interest bearing deposits in banks	13,283		39		0.29		7,477		162		2.17		4,009		80		1.99
Federal funds sold	—		—		—		2		—		6.87		5		—		2.79
Trading account assets	11,104		358		3.22		10,610		360		3.39		12,026		415		3.45
Other earning assets	991		20		1.99		785		18		2.29		469		10		2.13
Total earning assets	153,901		4,069		2.64		156,578		5,573		3.56		147,136		5,148		3.50
Allowance for loan losses	(1,176)						(519)						(467)
Cash and due from banks	2,072						1,989						1,811
Other assets(4)	12,504						12,276						12,049
Total assets	$	167,301					$	170,324					$	160,529
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	42,962	$	143	0.33	%	$	37,730	$	370	0.98	%	$	36,883	$	238	0.65	%
Savings	9,372		37		0.39		9,326		84		0.90		9,120		65		0.71
Time	10,998		183		1.67		15,605		372		2.39		7,588		138		1.81
Total interest bearing deposits	63,332		363		0.57		62,661		826		1.32		53,591		441		0.82
Commercial paper and other short-term borrowings	2,990		44		1.48		8,642		202		2.33		8,700		168		1.93
Securities loaned or sold under repurchase agreements	24,310		155		0.64		27,902		830		2.97		26,906		734		2.73
Long-term debt	16,135		349		2.16		16,385		497		3.04		14,062		365		2.59
Total borrowed funds	43,435		548		1.26		52,929		1,529		2.89		49,668		1,267		2.55
Trading account liabilities	3,140		64		2.05		3,502		101		2.89		3,736		110		2.94
Total interest bearing liabilities	109,907		975		0.89		119,092		2,456		2.06		106,995		1,818		1.70
Noninterest bearing deposits	37,657						31,549						32,887
Other liabilities(5)	2,845						2,753						2,157
Total liabilities	150,409						153,394						142,039
Equity
MUAH stockholders' equity	16,807						16,866						18,400
Noncontrolling interests	85						64						90
Total equity	16,892						16,930						18,490
Total liabilities and equity	$	167,301					$	170,324					$	160,529
Net interest income/spread (taxable-equivalent basis)			3,094		1.75	%			3,117		1.50	%			3,330		1.80	%
Impact of noninterest bearing deposits					0.23						0.43						0.40
Impact of other noninterest bearing sources					0.03						0.06						0.06
Net interest margin					2.01						1.99						2.26
Less: taxable-equivalent adjustment			17						24						23
Net interest income			$	3,077					$	3,093					$	3,307

(1)Yields, interest income and net interest margin are presented on a taxable-equivalent basis using the federal statutory tax rates of 21% for 2020, 2019, and 2018.

(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.

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Net interest income decreased during 2020 compared with 2019 due to a decrease in net interest income from MUB's lending activities largely offset by the positive contribution of MUSA's trading and securities borrowing and lending transactions. Rates on securities loaned or sold under repurchase agreements decreased more than yields on securities borrowed or purchased under resale agreements and trading account assets, resulting in an increase in the net interest income from these transactions despite a decrease in the related balances. The decrease in net interest income from MUB's lending activities was primarily due to yields on earning assets declining more than funding costs in a declining rate environment. Earning assets decreased largely due to decreases in residential mortgage and home equity loans, securities borrowed or purchased under resale agreements, and securities, partially offset by increases in interest bearing deposits in banks, and commercial and industrial and commercial mortgage loans.

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 2020, 2019 and 2018. 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 (costs) of $(55) million, $(45) million and $4 million for the years ended 2020, 2019 and 2018, respectively, are included in this table.

	For the Years Ended December 31,
	2020 versus 2019						2019 versus 2018
	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	$	146	$	(333)	$	(187)	$	87	$	14	$	101
Commercial mortgage	36		(139)		(103)		45		(19)		26
Construction	2		(30)		(28)		(3)		6		3
Lease financing	(12)		(7)		(19)		(9)		10		1
Residential mortgage and home equity	(215)		(118)		(333)		18		(12)		6
Other consumer	—		16		16		188		—		188
Total loans held for investment					(654)						325
Securities	(52)		(100)		(152)		(17)		(31)		(48)
Securities borrowed or purchased under resale agreements	(141)		(434)		(575)		73		40		113
Interest bearing deposits in banks	75		(198)		(123)		74		8		82
Trading account assets	17		(19)		(2)		(48)		(7)		(55)
Other earning assets	4		(2)		2		7		1		8
Total earning assets					(1,504)						425
Changes in Interest Expense
Interest bearing deposits:
Transaction and money market accounts	45		(272)		(227)		6		126		132
Savings	—		(47)		(47)		1		18		19
Time	(94)		(95)		(189)		180		54		234
Total interest bearing deposits					(463)						385
Commercial paper and other short-term borrowings	(102)		(56)		(158)		(1)		35		34
Securities loaned or sold under repurchase agreements	(95)		(580)		(675)		28		68		96
Long-term debt	(8)		(140)		(148)		64		68		132
Total borrowed funds					(981)						262
Trading account liabilities	(9)		(28)		(37)		(7)		(2)		(9)
Total interest bearing liabilities					(1,481)						638
Changes in net interest income					$	(23)					$	(213)

(1)Interest income is presented on a taxable-equivalent basis using the federal statutory tax rates of 21% for 2020, 2019, and 2018.

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Noninterest Income and Noninterest Expense

The following tables display our noninterest income and noninterest expense for the years ended December 31, 2020, 2019 and 2018.

Noninterest Income

							Increase (Decrease)
							Years Ended December 31,
	Years Ended December 31,						2020 versus 2019				2019 versus 2018
(Dollars in millions)	2020		2019		2018		Amount		Percent		Amount		Percent
Service charges on deposit accounts	$	147	$	166	$	179	$	(19)	(11)	%	$	(13)	(7)	%
Trust and investment management fees	118		117		118		1		1		(1)		(1)
Trading account activities	38		70		(24)		(32)		(46)		94		392
Securities gains, net	144		39		8		105		269		31		388
Credit facility fees	107		98		90		9		9		8		9
Brokerage commissions and fees	69		74		73		(5)		(7)		1		1
Card processing fees, net	51		56		50		(5)		(9)		6		12
Investment banking and syndication fees	578		433		355		145		33		78		22
Fees from affiliates	1,489		1,439		1,213		50		3		226		19
Other, net	164		213		115		(49)		(23)		98		85
Total noninterest income	$	2,905	$	2,705	$	2,177	$	200	7	%	$	528	24	%

Noninterest income increased during 2020 compared with 2019 largely due to increases in investment banking and syndication fees, gains on sale of securities, and fees from affiliates from services provided to MUFG Bank, Ltd. regarding its U.S. business under the master services agreement, partially offset by a decrease in trading account activities and a decline in the fair value of mortgage servicing rights (included in other, net). The Company uses derivatives to offset changes in the fair value of mortgage servicing rights. Changes in the fair value of these derivatives are included in trading account activities.

46

Noninterest Expense

							Increase (Decrease)
							Years Ended December 31,
	Years Ended December 31,						2020 versus 2019				2019 versus 2018
(Dollars in millions)	2020		2019		2018		Amount		Percent		Amount		Percent
Salaries and employee benefits	$	2,751	$	2,687	$	2,616	$	64	2	%	$	71	3	%
Net occupancy and equipment	436		431		367		5		1		64		17
Professional and outside services	680		651		487		29		4		164		34
Software	343		313		287		30		10		26		9
Regulatory assessments	48		63		85		(15)		(24)		(22)		(26)
Intangible asset amortization	20		34		26		(14)		(41)		8		31
Goodwill impairment	357		1,614		—		(1,257)		(78)		1,614		100
Other	386		422		409		(36)		(9)		13		3
Total noninterest expense	$	5,021	$	6,215	$	4,277	$	(1,194)	(19)	%	$	1,938	45	%

Excluding goodwill impairment, the increase in noninterest expense during 2020 compared with 2019 was primarily driven by costs associated with services provided to MUFG Bank, Ltd. regarding its U.S. business under the master services agreement which is mainly reflected in salaries and employee benefits, and impairment of a retail credit card intangible in 2020 included in other. For additional information regarding costs associated with services provided to MUFG Bank, Ltd. and related fee income earned, see the calculation of the adjusted efficiency ratio in "Non-GAAP Financial Measures" in this "Management's Discussion and Analysis of Financial Condition and Results of Operations."

Goodwill Impairment

The Company performs goodwill impairment tests on an annual basis as of April 1, and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. The Company estimates the fair value of its reporting units using a combination of income and market approaches. The income approach estimates the fair value of the reporting units by discounting management’s projections of each reporting unit’s cash flows, including a terminal value to estimate the fair value of cash flows beyond the final year of projected results, using a discount rate derived from the Capital Asset Pricing Model. The market approach incorporates comparable public company price to tangible book value and price to earnings multiples.

During the third quarter of 2020, due to revisions to multiples used in the market approach component of its fair value estimation, the Company initiated an interim quantitative impairment test of goodwill allocated to two of its reporting units: Global Corporate & Investment Banking - U.S. and Commercial Banking and Real Estate Industries. Due largely to increases in observed market discount rates, the Company recorded an impairment charge of $357 million, which represented a portion of the goodwill allocated to the Global Corporate & Investment Banking - U.S. and Commercial Banking and Real Estate Industries reporting units, which have $483 million and $640 million allocated goodwill remaining after the impairment, respectively. The impairment charge did not result in a cash outflow and did not significantly affect the regulatory capital ratios or the Company’s liquidity position as of December 31, 2020.

During the third quarter of 2019, due to the decline in interest rates and slower growth than previously forecasted, cash flow projections for certain reporting units were revised lower. The combination of these events led management to believe that it was more likely than not that the fair values of certain reporting units were below carrying value. As a result, the Company initiated an interim quantitative impairment test of goodwill allocated to three of its reporting units: Consumer Banking, Commercial Banking and Real Estate Industries, and Global Corporate & Investment Banking - U.S.

Certain projected cash flows used to estimate fair value of the reporting units were revised lower than previous projections due to the combination of the following factors: the decline in interest rates through September 30, 2019 and a change in the Company’s expectation that interest rates will remain lower than previously assumed; updates to key loan growth and loan mix assumptions in the forecast to address the Company’s declining net interest margin; and a reduction of the expected growth and cash flow contribution of

47

new initiatives based on a revised economic outlook. Multiples selected in the market approach to estimate fair value were also revised lower than those used in the most recent annual quantitative impairment test due to lower reporting unit earnings.

Upon completing the quantitative impairment test, the Company recorded an impairment charge of $1.6 billion in the third quarter of 2019, which represented the entire amount of goodwill allocated to the Consumer Banking reporting unit and a portion of the goodwill allocated to the Global Corporate & Investment Banking - U.S. reporting unit, which had $667 million allocated goodwill remaining after the impairment.

Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding our future plans, as well as industry, economic, and regulatory conditions. These assumptions and estimates include estimated future annual net cash flows, income tax rates, discount rates, growth rates, and other market factors. If current expectations of future growth rates are not met, if market factors outside of our control, such as discount rates and market multiples, change, or if management’s expectations or plans otherwise change, then goodwill allocated to one or more of our reporting units might become impaired in the future.

Income Tax Expense

	Years Ended December 31,
(Dollars in millions)	2020			2019			2018
Income (loss) before income taxes and including noncontrolling interests	$	132		$	(669)		$	1,101
Income tax expense (benefit)	(18)			82			52
Effective tax rate	(13)		%	(12)		%	5		%

In 2020, income tax benefit was $18 million using actual amounts for these periods, and the effective tax rate was negative 13%. Excluding the goodwill impairment charge in the third quarter of 2020, the majority of which was not deductible for income tax purposes, the effective tax rate would have been negative 76% in 2020 primarily due to excess tax credits recognized during the year. In 2019, income tax expense was $82 million and the effective tax rate was negative 12%. Excluding the goodwill impairment charge in the third quarter of 2019, the majority of which was not deductible for income tax purposes, the effective tax rate would have been 14% in 2019.

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.

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The amortized cost, gross unrealized gains, gross unrealized losses and fair value of securities, and securities pledged as collateral, are detailed in Note 2 to our consolidated financial statements included in this Form 10-K. 

The following tables show the remaining contractual maturities and expected yields of the securities based upon amortized cost at December 31, 2020. 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, 2020
	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
Securities available for sale
U.S. Treasury and government agencies	$	—	—	%	$	149	1.89	%	$	3,964	1.45	%	$	160	1.24	%	$	4,273	1.45	%
Mortgage-backed:
U.S. agencies	—		—		63		2.12		898		2.22		4,882		1.74		5,843		1.82
Residential - non-agency	—		—		—		—		5		2.55		534		3.09		539		3.08
Commercial - non-agency	—		—		—		—		1,660		2.10		2,552		2.87		4,212		2.56
Collateralized loan obligations	—		—		2		1.96		947		1.56		421		1.55		1,370		1.56
Direct bank purchase bonds	93		2.25		392		2.82		333		2.73		73		2.90		891		2.73
Other	9		2.56		177		2.28		346		4.41		—		—		532		3.67
Total securities available for sale	$	102	2.28	%	$	783	2.46	%	$	8,153	1.86	%	$	8,622	2.15	%	$	17,660	2.03	%

Securities Held to Maturity

	December 31, 2020
	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 and government agencies	$	—	—	%	$	—	—	%	$	441	2.12	%	$	1,819	1.62	%	$	2,260	1.72	%
Mortgage-backed:
U.S. agencies	—		—		627		2.19		660		2.29		3,829		2.60		5,116		2.51
Total securities held to maturity	$	—	—	%	$	627	2.19	%	$	1,101	2.23	%	$	5,648	2.29	%	$	7,376	2.27	%

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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)	2020		2019		2018		2017		2016
Loans held for investment:
Commercial and industrial	$	31,212	$	26,338	$	24,919	$	23,281	$	25,379
Commercial mortgage	16,244		16,895		15,354		14,320		14,625
Construction	1,655		1,511		1,613		1,775		2,283
Lease financing	1,038		1,001		1,249		1,533		1,819
Total commercial portfolio	50,149		45,745		43,135		40,909		44,106
Residential mortgage and home equity (1)	29,034		38,018		40,677		38,014		32,392
Other consumer (2)	2,983		4,450		2,695		1,091		1,053
Total consumer portfolio	32,017		42,468		43,372		39,105		33,445
Total loans held for investment (3)	$	82,166	$	88,213	$	86,507	$	80,014	$	77,551

(1)Includes home equity loans of $1,590 million and $2,049 million at December 31, 2020 and December 31, 2019, respectively.

(2)Other consumer loans substantially include unsecured consumer loans and consumer credit cards.

(3)Includes $127 million and $320 million at December 31, 2020 and December 31, 2019, respectively, for net unamortized (discounts) and premiums and deferred (fees) and costs.

Loans held for investment decreased from December 31, 2019 to December 31, 2020, primarily due

to a reduction in the residential mortgage and home equity and other consumer portfolios, partially offset by an increase in the commercial and industrial loan portfolio. The increase in commercial and industrial loans is

primarily due to $2.0 billion of PPP loans outstanding at December 31, 2020.

Loan Maturities

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

	December 31, 2020
(Dollars in millions)	One Year or Less		Over One Year Through Five Years		Over Five Years		Total
Selected loan maturities:
Commercial and industrial	$	7,348	$	21,190	$	2,674	$	31,212
Construction	909		653		93		1,655
Total	$	8,257	$	21,843	$	2,767	$	32,867
Total fixed rate loans due after one year							$	3,692
Total variable rate loans due after one year							20,918
Total due after one year							$	24,610

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, 2020, December 31, 2019 and December 31, 2018 and were $4.5 billion, $3.2 billion and $3.0 billion, respectively. Our total cross-border outstandings for Cayman Islands exceeded one percent of total assets at December 31, 2020, December 31, 2019 and December 31, 2018 and were $2.9 billion, $2.3 billion and $2.4 billion, respectively. 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.

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Deposits

The table below presents our deposits as of December 31, 2020 and 2019.

	December 31, 2020		December 31, 2019		Increase (Decrease)
(Dollars in millions)					Amount		Percent
Interest checking	$	6,831	$	4,725	$	2,106	45	%
Money market	38,336		35,002		3,334		10
Total interest bearing transaction and money market accounts	45,167		39,727		5,440		14
Savings	9,710		8,962		748		8
Time	7,419		15,651		(8,232)		(53)
Total interest bearing deposits	62,296		64,340		(2,044)		(3)
Noninterest bearing deposits	40,130		31,521		8,609		27
Total deposits	$	102,426	$	95,861	$	6,565	7	%

Total deposits increased $6.6 billion from December 31, 2019 to December 31, 2020 largely due to an increase in Regional Bank and Transaction Banking noninterest bearing deposits and interest bearing transaction and money market accounts. These increases were partially offset by a decrease in time deposits due to decreases in Regional Bank time deposits, including 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, 2020
Three months or less	$	3,121
Over three months through six months	1,133
Over six months through twelve months	1,008
Over twelve months	475
Total domestic time deposits of $100,000 and over	$	5,737

We offer CDs and other time deposits of $100,000 and over at market rates of interest.

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 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 additional information.

Securities borrowed or purchased under resale agreements were $17.6 billion and $23.9 billion at December 31, 2020 and December 31, 2019, respectively. The following table provides certain information about securities loaned or sold under repurchase agreements.

(Dollars in millions)	December 31, 2020			December 31, 2019
Balance at period end	$	27,161		$	28,866
Weighted average interest rate at period end	0.12		%	1.65		%
Maximum outstanding at any month end	$	28,476		$	29,581
Average balance during the year	$	24,310		$	27,902
Weighted average interest rate during the year	0.64		%	2.97		%

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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 complete an annual capital plan and to maintain minimum regulatory capital ratios. As of December 31, 2020, management believes the capital ratios of MUAH and MUB exceeded all regulatory requirements of "well-capitalized" institutions.

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). The Board of Directors approved the Company's annual capital plan in March 2020. Under the Tailoring Rules of the Federal Reserve, MUAH, as a Category IV firm, is subject to CCAR supervisory capital planning requirements and stress testing submission requirements on an every other year basis in even years (e.g. MUAH was subject to the 2020 CCAR cycle). CCAR 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 2020 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. The Company timely filed its annual capital plan under the Federal Reserve's CCAR program in April 2020. In June 2020, the Company received notice that the Federal Reserve completed its review of the Company's capital plan and notice of its preliminary stress capital buffer requirement which became effective October 1, 2020. Due to the significant uncertainty caused by the COVID-19 pandemic, the Federal Reserve required all CCAR firms, including MUAH, to conduct additional stress testing and to resubmit their capital plans to the Federal Reserve by November 2, 2020. The Company timely filed its capital plan resubmission. For additional information regarding the Company's capital plan, see "Supervision and Regulation – Dodd-Frank Act and Related Regulations" and "Supervision and Regulation – Regulatory Capital and Liquidity Standards – Capital Planning and Comprehensive Capital Analysis and Review Program" in Part I, Item 1. "Business" of this Form 10-K.

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 standardized capital conservation buffer of 4.4% for MUAH and 2.5% for MUB (for a total minimum Common Equity Tier 1 capital ratio of 9.9% for MUAH and 7.0% for MUB) and a Tier 1 leverage ratio of 4.0%. Effective October 1, 2020, MUAH’s capital conservation buffer was replaced by MUAH's standardized capital conservation buffer, which was informed by supervisory stress testing results for MUAH released in June 2020. For purposes of calculating its risk-based capital ratios, the Company has elected to phase-in the impact of adopting ASU 2016-13, Measurement of Credit Losses on Financial Instruments, over a five-year period as permitted by the U.S. bank regulatory agencies. The impact is reflected in the December 31, 2020 capital ratios presented below.

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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, 2020 and December 31, 2019.

MUFG Americas Holdings Corporation

	U.S. Basel III
(Dollars in millions)	December 31, 2020		December 31, 2019
Capital Components
Common Equity Tier 1 capital	$	15,823	$	15,086
Tier 1 capital	$	15,823	$	15,086
Tier 2 capital	1,048		683
Total risk-based capital	$	16,871	$	15,769
Risk-weighted assets	$	103,576	$	107,023
Average total assets for leverage capital purposes	$	165,569	$	169,807

	U.S. Basel III								Minimum Capital Requirement with Capital Conservation Buffer(1)
(Dollars in millions)	December 31, 2020				December 31, 2019				December 31, 2020
Capital Ratios	Amount		Ratio		Amount		Ratio		Amount			Ratio
Common Equity Tier 1 capital (to risk-weighted assets)	$	15,823	15.28	%	$	15,086	14.10	%	≥	$	9,218	8.90	%
Tier 1 capital (to risk-weighted assets)	15,823		15.28		15,086		14.10		≥	10,772		10.40
Total capital (to risk-weighted assets)	16,871		16.29		15,769		14.73		≥	12,843		12.40
Tier 1 leverage(2)	15,823		9.56		15,086		8.88		≥	6,623		4.00

(1)The minimum capital requirement includes MUAH's standardized capital conservation buffer of 4.4%.

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

The increase in the Company's risk-based capital ratios was driven primarily by net income earned during the year and a decrease in risk-weighted assets.

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The following tables summarize the calculation of MUB’s risk-based capital ratios in accordance with the guidelines set forth in the U.S. Basel III Rules as of December 31, 2020 and December 31, 2019.

MUFG Union Bank, N.A.

	U.S. Basel III
(Dollars in millions)	December 31, 2020		December 31, 2019
Capital Components
Common Equity Tier 1 capital	$	14,634	$	14,115
Tier 1 capital	$	14,634	$	14,115
Tier 2 capital	995		631
Total risk-based capital	$	15,629	$	14,746
Risk-weighted assets	$	93,677	$	97,563
Average total assets for leverage capital purposes	$	131,545	$	132,590

	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, 2020				December 31, 2019				December 31, 2020
Capital Ratios	Amount		Ratio		Amount		Ratio		Amount			Ratio		Amount			Ratio
Common Equity Tier 1 capital (to risk-weighted assets)	$	14,634	15.62	%	$	14,115	14.47	%	≥	$	6,557	7.00	%	≥	$	6,089	6.5	%
Tier 1 capital (to risk-weighted assets)	14,634		15.62		14,115		14.47		≥	7,963		8.50		≥	7,494		8.0
Total capital (to risk-weighted assets)	15,629		16.68		14,746		15.11		≥	9,836		10.50		≥	9,368		10.0
Tier 1 leverage(2)	14,634		11.12		14,115		10.65		≥	5,262		4.00		≥	6,577		5.0

(1)    Beginning January 1, 2019, the minimum capital requirement includes a capital conservation buffer of 2.5%.

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

The increase in MUB's risk-based capital ratios was driven primarily by net income earned during the year and a decrease in risk-weighted assets.

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, 2020. 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, 2020 and 2019:

	December 31, 2020			December 31, 2019
(Dollars in millions)
Total MUAH stockholders' equity	$	17,189		$	16,280
Less: Goodwill	1,407			1,764
Less: Intangible assets, except mortgage servicing rights	202			261
Less: Deferred tax liabilities related to goodwill and intangible assets	(14)			(17)
Tangible common equity (a)	$	15,594		$	14,272
Total assets	$	167,846		$	170,810
Less: Goodwill	1,407			1,764
Less: Intangible assets, except mortgage servicing rights	202			261
Less: Deferred tax liabilities related to goodwill and intangible assets	(14)			(17)
Tangible assets (b)	$	166,251		$	168,802
Tangible common equity ratio (a)/(b)	9.38		%	8.45		%

Goodwill and related deferred tax liabilities declined due to the impairment recorded in the third quarter of 2020. See "Goodwill Impairment" in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 5 to our consolidated financial statements in this Form 10-K. For additional information regarding our regulatory capital requirements, see "Supervision and Regulation-Regulatory Capital and Liquidity Standards" in Part I, Item 1. "Business" of this Form 10-K.

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. Additional information regarding our 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.

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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 Human Capital Risk & Control Committee’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.

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.

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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 Oversight Group, 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.

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 expected losses on the loan portfolio as well as for unfunded credit commitments. On January 1, 2020, the Company adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provided new guidance on the accounting for credit losses for instruments that are within its scope. This new guidance, commonly referred to as the CECL model, requires an entity to recognize its estimate of credit losses expected over the life of the financial instrument or exposure by incorporating forward-looking information in the entity's assessment of the collectability of financial assets. Accordingly, the Company's methodology for estimating the allowance balance uses relevant available information, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made over a forecast period to account for differences between current and expected future conditions and those reflected in historical loss information. Beyond the forecast period, estimated expected credit losses revert to historical loss experience.

Management establishes the allowance by first dividing its portfolio into two segments - the commercial segment and consumer segment. The allowance is measured on a collective basis when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis. While the Company's methodology attributes portions of the allowance to specific portfolio segments, the allowance estimate is provided to cover all credit losses expected in the loan portfolio.

An expected loss approach is used to estimate the collectively-assessed allowance for both the commercial and consumer portfolio segments. Expected loss is calculated as the product of PD, LGD, and EAD modeled parameters that are projected on a monthly basis over the assets’ remaining contractual lives. The sum of each month’s expected loss calculation results in the collectively-assessed allowance estimate. Expected loss models use historical loss information and economic assumptions to estimate PD, LGD, and EAD. These models are tailored to different loan segments, classes and products by changing the economic variables or their weighting in the calculation used to estimate expected losses.

The CECL adoption impact was estimated using a 36-month forecast period. The forecast period was shortened to 24 months in the first quarter of 2020 due to heightened volatility and uncertainty in the economy from the emergence of COVID-19. Beyond the economic forecast, the allowance methodology reverts to average historical loss experience on a straight-line basis over a 24-month period. These timeframes are regularly reviewed and approved by management and may be adjusted if economic conditions warrant. Expected prepayments are incorporated into the estimation of the EAD for each asset over the asset’s

57

remaining term. Contractual term is not adjusted for expected extensions, renewals, and modifications unless management has a reasonable expectation that a TDR will be executed with a borrower.

Management implements qualitative adjustments to the collectively-assessed allowance to account for risks not incorporated in the quantitative models. This is to account for the difference between current conditions and those reflected in the historical loss information used to estimate the models. These qualitative factors include changes in credit policies, problem loan trends, identification of new risks not incorporated into the modeling framework, credit concentrations, changes in lending management and other external factors. Qualitative adjustments are also used to adjust the collectively-assessed allowance to account for risks attributed to imprecision in the economic forecast and when risks emerge that impact specific portfolio components (i.e., natural disasters).

Loans that do not share risk characteristics are evaluated individually to determine the allowance balance. Loans assessed individually include larger nonaccruing loans within the commercial portfolio, TDRs, reasonably expected TDRs and collateral-dependent loans. The allowance for individually assessed loans is generally determined using either discounted cash flow analyses or collateral valuations to determine if loan carrying values exceed what the Company expects to collect.

For additional information on the allowance for loan losses and the allowance for credit losses, see "Critical Accounting Estimates" in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1 "Summary of Significant Accounting Policies and Nature of Operations" and Note 3 "Loans and Allowance for Loan Losses" to our consolidated financial statements included in this Form 10-K.

Allowance and Related Provision for Credit Losses

The Company recorded an increase to the allowance for credit losses of $199 million upon the January 1, 2020 adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments, primarily due to an increase in the allowance for consumer loans. This increase consisted of a $229 million increase in the allowance for loan losses and a $30 million decrease in the allowance for losses on unfunded credit commitments. The provision for credit losses was $829 million for the year ended December 31, 2020, consisting of a provision for loan losses of $843 million and a reversal of provision for losses on unfunded credit commitments of $14 million for the year ended December 31, 2020.

The provision for loan losses was $617 million for the commercial loan segment and $226 million for the consumer loan segment for the year ended December 31, 2020, largely due to the impact of COVID-19 and the corresponding deterioration in the economic environment on the allowance for loan losses. In particular, increases in the allowance for loan losses on loans to certain industries especially impacted by COVID-19, including commercial real estate related loans, and losses on individually assessed commercial loans, also contributed to the commercial segment provision. The economic forecast incorporated management's expectations at December 31, 2020, which included a modest recovery in 2021 and continuing into subsequent years. Although our economic forecast stabilized in the second half of 2020, elevated COVID-19-related uncertainty remains, particularly with respect to persistently high COVID-19 cases and the offsetting effect of additional monetary and fiscal stimulus that is expected to continue into 2021.

The allowance for loan losses was $1,273 million at December 31, 2020 compared with $538 million at December 31, 2019, prior to the $229 million increase upon adopting ASU 2016-13. Our ratio of allowance for loan losses to total loans held for investment was 1.55% as of December 31, 2020 and 0.61% as of December 31, 2019. Our ratio of allowance for credit losses to total loans held for investment as of December 31, 2020 was 1.63% and 0.73% as of December 31, 2019. Net loans charged off to average total loans held for investment increased to 0.39% for the year ended December 31, 2020, compared with 0.25% for the year ended December 31, 2019.

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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)	2020 (1)				2019				2018				2017				2016
Commercial and industrial	$	389	1.25	%	$	272	1.03	%	$	275	1.10	%	$	265	1.14	%	$	440	1.72	%
Commercial mortgage	411		2.53		58		0.34		56		0.37		67		0.47		83		0.57
Construction	32		1.94		11		0.73		10		0.63		11		0.61		15		0.66
Lease financing	19		1.79		13		1.30		18		1.46		17		1.15		18		0.99
Total commercial portfolio	851		1.70		354		0.77		359		0.83		360		0.88		556		1.25
Residential and home equity	189		0.65		37		0.10		37		0.09		37		0.10		40		0.12
Other consumer	233		7.80		147		3.30		73		2.71		49		4.49		43		4.08
Total consumer portfolio	422		1.32		184		0.43		110		0.25		86		0.22		83		0.25
Total allocated allowance	1,273		1.55		538		0.61		469		0.54		446		0.56		639		0.82
Unallocated	—				—				5				30				—
Total allowance for loan losses	$	1,273	1.55	%	$	538	0.61	%	$	474	0.55	%	$	476	0.59	%	$	639	0.82	%

(1)December 31, 2020 amounts reflect adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments, and are not comparable to prior year amounts.

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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)	2020		2019		2018		2017		2016
Allowance for loan losses, beginning of period	$	538	$	474	$	476	$	639	$	723
Cumulative effect from adoption of ASU 2016-13 (1)	229		—		—		—		—
Allowance for loan losses, beginning of period, adjusted for adoption of ASU 2016-13 (1)	767		474		476		639		723
(Reversal of) provision for loan losses	843		283		84		(65)		158
Other	—		—		—		2		2
Loans charged-off:
Commercial and industrial	(110)		(73)		(43)		(107)		(146)
Commercial and industrial - transfer to held for sale	(38)		(26)		(35)		(8)		(113)
Commercial mortgage	(63)		(1)		(1)		(1)		—
Construction	(10)		—		—		—		—
Lease financing	—		(58)		—		—		—
Total commercial portfolio	(221)		(158)		(79)		(116)		(259)
Residential mortgage and home equity	2		4		3		5		4
Other consumer	(159)		(102)		(44)		(44)		(16)
Total consumer portfolio	(157)		(98)		(41)		(39)		(12)
Total loans charged-off	(378)		(256)		(120)		(155)		(271)
Recoveries of loans previously charged-off:
Commercial and industrial	22		28		26		49		19
Commercial mortgage	1		1		1		1		5
Construction	1		—		—		—		—
Lease financing	1		—		—		—		—
Total commercial portfolio	25		29		27		50		24
Residential mortgage and home equity	1		—		—		—		—
Other consumer	15		8		7		5		3
Total consumer portfolio	16		8		7		5		3
Total recoveries of loans previously charged-off	41		37		34		55		27
Net loans recovered (charged-off)	(337)		(219)		(86)		(100)		(244)
Ending balance of allowance for loan losses	1,273		538		474		476		639
Allowance for losses on unfunded credit commitments	65		109		139		123		162
Total allowance for credit losses	$	1,338	$	647	$	613	$	599	$	801

(1)For further information see Note 1 "Summary of Significant Accounting Policies and Nature of Operations" to our consolidated financial statements in this Form 10-K.

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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, TDRs, criticized assets and certain credit ratios.

	December 31,
(Dollars in millions)	2020			2019			2018			2017			2016
Nonaccrual loans:
Commercial and industrial	$	182		$	175		$	269		$	319		$	458
Commercial mortgage	317			15			12			20			31
Construction	28			—			—			—			—
Total commercial portfolio	527			190			281			339			489
Residential mortgage and home equity	183			137			139			125			199
Other consumer loans	1			1			1			1			1
Total consumer portfolio	184			138			140			126			200
Total nonaccrual loans	711			328			421			465			689
OREO	—			1			1			1			3
Total nonperforming assets	$	711		$	329		$	422		$	466		$	692
Troubled debt restructurings:
Accruing	$	212		$	392		$	299		$	348		$	215
Nonaccruing (included in total nonaccrual loans above)	279			171			136			229			384
Total troubled debt restructurings (1)	$	491		$	563		$	435		$	577		$	599
Criticized credits	$	3,944		$	1,567		$	1,264		$	1,564		$	2,427
Allowance for loan losses to nonaccrual loans	179.01		%	164.19		%	112.50		%	102.37		%	92.69		%
Allowance for credit losses to nonaccrual loans	188.15			197.34			145.61			128.75			116.20
Nonperforming assets to total loans held for investment and OREO	0.87			0.37			0.49			0.58			0.89
Nonperforming assets to total assets	0.42			0.19			0.25			0.30			0.47
Nonaccrual loans to total loans held for investment	0.87			0.37			0.49			0.58			0.89

(1)Troubled debt restructurings at December 31, 2020 exclude COVID-19-related loan modifications, which are discussed below in "Troubled Debt Restructurings".

The increase in criticized credits is primarily due to COVID-19-related downgrades in the commercial real estate and aviation sectors. See Note 3 to our consolidated financial statements in this Form 10-K for a description of criticized credits.

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

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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.

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, 2020 and 2019. See Note 3 to our consolidated financial statements in this Form 10-K for additional information.

					As a Percentage of Ending Loan Balances
	December 31,				December 31,
(Dollars in millions)	2020		2019		2020		2019
Commercial and industrial	$	73	$	140	0.23	%	0.51	%
Commercial mortgage	140		168		0.86		0.99
Construction	28		62		1.69		4.10
Total commercial portfolio	241		370		0.48		0.81
Residential mortgage and home equity	248		192		0.85		0.51
Other consumer	2		1		0.07		0.02
Total consumer portfolio	250		193		0.78		0.45
Total restructured loans	$	491	$	563	0.60		0.64

On March 22, 2020, the federal bank regulatory agencies issued joint guidance advising that the agencies have confirmed with the staff of the FASB that short-term modifications due to COVID-19 made on a good faith basis to borrowers who were current prior to relief, are not TDRs. On March 27, 2020, the CARES Act, which provides relief from TDR classification for certain COVID-19-related loan modifications, was signed into law. The Company did not classify loan modifications, which were largely payment deferrals, that met the criteria under either the CARES Act or the criteria specified by the regulatory agencies as TDRs. At December 31, 2020, $1.0 billion of modified commercial loans and $1.4 billion of modified consumer loans were still in deferral and not classified as TDRs. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan.

Loans 90 Days or More Past Due and Still Accruing Interest

Loans held for investment 90 days or more past due and still accruing interest totaled $45 million and $20 million at December 31, 2020 and December 31, 2019, 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, real estate and leasing, power and utilities, and wholesale trade. Finance and insurance exceeded 10% of our total loans held for investment at December 31, 2020.

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, 2020, 82% of the Company’s construction loan portfolio was concentrated in California, 4% to borrowers in Oregon and 3% to borrowers in New Jersey. The commercial mortgage loan portfolio consists of loans secured by commercial income properties. At December 31, 2020, 66% 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

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or purchasing subprime loan products and we hold the majority of the loans we originate. At December 31, 2020, substantially all our residential mortgage loans were made to borrowers in California.

At December 31, 2020, payment terms on 40% 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 63%. 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 25% and 24% of these home equity loans and lines were supported by first liens on residential properties at December 31, 2020 and December 31, 2019, 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 substantially include unsecured consumer loans and consumer credit cards. 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 in this Form 10-K for additional information on refreshed FICO scores for our consumer portfolio segment and refreshed LTV ratios for our residential mortgage and home equity loans at December 31, 2020 and December 31, 2019.

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 $34 million of interest income in 2020. For loans that were on nonaccrual status during 2020 and accounted for as cash basis nonaccrual loans, we recognized interest income of $15 million in 2020.

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, derivative instruments and mortgage servicing rights. 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.

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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.

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 100 basis points and down 100 basis points over a 12-month horizon.

(Dollars in millions)	December 31, 2020			December 31, 2019
Effect on net interest income:
Increase 100 basis points	$	113.1		$	19.0
as a percentage of base case net interest income	4.38		%	0.70		%
Decrease 100 basis points	$	(76.4)		$	(65.6)
as a percentage of base case net interest income	(2.96)		%	(2.37)		%

An increase in rates increases net interest income. During 2020, the Company’s asset sensitive profile increased due to changes in the interest rate environment and in balance sheet composition, including an increase in cash and cash equivalents as a result of an increase in deposits and a decrease in fixed rate residential mortgages, changes in the ALM derivatives portfolio, and forecasted balance sheet activity over the next twelve months. During 2020, the Company terminated $3.8 billion of short remaining maturity interest rate derivative contracts used to hedge floating rate commercial loans, which contributed to the 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 higher asset sensitive risk profile at December 31, 2020.

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 securities portfolio and derivative instruments used in our ALM hedging strategies, see "Balance Sheet Analysis—Securities" within "Management's Discussion and

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Analysis of Financial Condition and Results of Operations" 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. Through March 31, 2020, our calculation of VaR estimated 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 and VaR at the trading activity level was managed within the maximum limit of $38 million established by Board policy for total trading positions. Beginning April 1, 2020, our calculation of VaR estimated how high the loss in fair value might be, at a 95% confidence level, due to an adverse shift in market prices over a period of one business day and VaR at the trading activity level was managed within the maximum limit of $8 million established by Board policy for total trading positions. The VaR models incorporate assumptions on key parameters, including holding period and historical volatility.

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, 2020 and 2019. The increase in VaR during 2020 was due to COVID-19-related market volatility:

	December 31, 2020						December 31, 2019
(Dollars in millions)	Average VaR		High VaR		Low VaR		Average VaR		High VaR		Low VaR
Interest rate	$	18.4	$	35.1	$	9.8	$	12.2	$	17.6	$	8.5
Debt securities	7.9		14.2		3.8		7.7		12.8		3.1
Equity securities	1.0		1.9		0.4		1.0		1.7		0.6
Foreign exchange	0.3		1.0		0.1		0.2		0.6		0.1
Portfolio diversification	(11.6)		(20.2)		(5.5)		(9.4)		(15.2)		(4.2)
Total	$	16.0	$	32.0	$	8.6	$	11.7	$	17.5	$	8.1

The following table sets forth the average, high and low one-day 95% confidence level VaR for our trading activities for the period from April 1, 2020 to December 31, 2020:

	For the Period from April 1, 2020 to December 31, 2020
(Dollars in millions)	Average VaR		High VaR		Low VaR
Interest rate	$	3.9	$	5.5	$	2.6
Debt securities	1.6		3.6		0.8
Equity securities	0.2		0.4		0.1
Foreign exchange	0.1		0.8		—
Portfolio diversification	(2.3)		(5.0)		(1.4)
Total	$	3.5	$	5.3	$	2.1

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.

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LIBOR Transition

In July 2017, the Chief Executive of the U.K. Financial Conduct Authority, which regulates the process of setting LIBOR, announced that it intends to stop persuading or compelling banks to submit rates for the calculation of LIBOR after 2021. In the U.S., the Federal Reserve and Federal Reserve Bank of New York convened the Alternative Reference Rates Committee, a group of private-market participants, to help ensure a successful transition from USD LIBOR to a more robust reference rate. The Company recognizes that discontinuance of LIBOR, or any other IBOR-based rate, presents significant risks and challenges that could have an impact on its businesses globally (for information about the risks to the Company from the discontinuation of LIBOR or any other benchmark, see "The phase-out of LIBOR could adversely impact our business and results of operations, and the value of certain financial instruments we hold or have issued" in Part I, Item 1A. "Risk Factors" in this Form 10-K). We have exposure to IBORs, including in financial instruments and contracts that mature after 2021. Our exposures arise from derivatives and other contracts used for hedging and trading account purposes, loans to commercial customers and consumers (including mortgage loans and other loans), and long-term borrowings.

Accordingly, to facilitate an orderly transition from LIBOR and other benchmark rates to alternative reference rates, the Company has established a firm-wide transition program to identify, assess and monitor risks associated with the expected discontinuation or unavailability of benchmarks, including LIBOR, develop and implement plans to remediate existing products or contracts that reference or rely upon IBORs, develop products and services that use alternative reference rates, achieve systems and operational readiness and engage impacted clients in connection with the transition to alternative reference rates. The Company’s transition program was established by senior management and periodic updates are provided to the Company's Board of Directors and ECA. The transition program focuses on:

•Identifying and evaluating the scope of existing financial instruments and contracts that may be affected;

•Assessing the impacted financial instruments and contracts to determine if they contain or require appropriate fallback language;

•Amending or otherwise developing action plans to amend existing financial instruments and contracts to incorporate robust fallback language;

•Enhancing infrastructure (e.g., internal framework such as models, technology infrastructure) to prepare for a smooth transition to alternative reference rates; and

•Developing financial instruments and contracts to use alternative reference rates.

The Company has identified the inherent risks with this transition and continues to monitor the development and usage of alternative reference rates. The Company is also working with regulators, industry working groups and trade associations to develop strategies for an effective transition to alternative reference rates. For additional information regarding our market risk management policies, see "Market Risk Management" in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" 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

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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. 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.

We are subject to the Federal Reserve's rules imposing TLAC requirements on GSIBs with operations in the U.S., such as MUFG. These rules include 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 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. See "Supervision and Regulation - Dodd-Frank Act and Related Regulations" in Part I, Item 1. "Business" 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 $22.9 billion at December 31, 2020. Our primary funding sources are customer deposits, secured FHLB advances, and unsecured short-term and long-term debt. Total deposits increased $6.6 billion from $95.9 billion at December 31, 2019 to $102.4 billion at December 31, 2020. As of December 31, 2020, the Bank had $4.6 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 $17.7 billion. The Bank maintains a $12 billion unsecured bank note program. Available funding under the bank note program was $3.6 billion at December 31, 2020. 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 MUAH and other non-bank subsidiaries. MUAH maintains sufficient liquidity to meet expected obligations, without access to the wholesale funding markets or dividends from subsidiaries, for at least 18 months. At December 31, 2020, the parent company’s liquidity exceeded 18 months.

MUAH and its subsidiaries may borrow on a long-term basis from MUFG Bank, Ltd. and affiliates. As of December 31, 2020, the Company had total long-term debt issued to MUFG Bank, Ltd. and affiliates of $6.9 billion.

The Company’s total wholesale funding included $14.5 billion of long-term debt (excluding nonrecourse debt) and $0.1 billion of short-term debt at December 31, 2020. For additional information regarding our outstanding debt, see 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.

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Our costs and ability to raise funds in the capital markets are influenced by our credit ratings. On October 23, 2020, Fitch affirmed MUAH, MUB and MUSA's long and short-term ratings and maintained the negative outlook assigned on May 1, 2020, reflecting Fitch’s view that there are significant operating environment challenges due to the disruption to economic activity and financial markets from the COVID-19 pandemic. On September 24, 2020, Fitch revised the outlook on MUFG’s ratings to stable from negative.

On October 15, 2020, Moody’s downgraded the long-term rating of MUAH to A3 from A2. Moody’s also downgraded MUB’s long and short-term rating to A3/P-2 from A2/P-1 and long-term deposits to Aa3 from Aa2. MUB’s short-term deposit rating of P1 was affirmed. The rating outlook was revised to stable from negative. This follows Moody’s decision to place MUAH and MUB on negative outlook in December 2019. Management does not expect these Moody's ratings downgrades to significantly affect the Company's financial position or results of operations.

In April 2020, S&P revised the outlook on MUFG to stable from positive due to S&P’s expectation that economic strain from the COVID-19 pandemic will put prolonged pressure on asset quality and revenue lowering the likelihood of being upgraded. Subsequently, S&P revised MUAH, MUB, and MUSA’s outlook to stable from positive. The stable outlook reflects S&P’s expectation that MUAH will remain a core banking subsidiary of MUFG. Furthermore, any change in MUAH’s stand-alone credit profile will not affect MUAH's credit rating, which S&P believes will remain closely tied to MUFG. The following table provides our credit ratings as of December 31, 2020:

		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	Not rated	A	A	A-
	Short-term	Not rated	A-1	A-1	A-2
Moody's	Long-term	Aa3	A3	Not rated	A3
	Short-term	P-1	P-2	Not rated	Not rated
Fitch	Long-term	A+	A	A	A
	Short-term	F1	F1	F1	F1

For additional information, including information about rating agency assessments, see "Our credit ratings are important in order to maintain liquidity; our credit ratings could be adversely affected by negative changes in the credit ratings of our parent companies" in Part I, Item 1A. "Risk Factors" in this Form 10-K.

Operational Risk Management

Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. Operational risk 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 cybersecurity incidents. See "Our business and operations are subject to a wide array of cybersecurity risks" in Part I, Item 1A. "Risk Factors" in 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.

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. The operational risk framework provides requirements for the business lines to better manage their operational risk.

The Company has established an independent ORMD in the second line of defense under the CRO. ORMD and the operational risk management framework are overseen by the Operational Risk Management

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Committee and the framework provides requirements, operational policies, risk tolerances and limits to ensure robust operational risk management. The Operational Risk Management Committee reviews and recommends operational risk appetite parameters and metrics to ARC for approval. 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.

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. Significant estimates that we use include the assumptions used in measuring PD, LGD and EAD to estimate expected credit losses, the assumptions used in measuring our transfer pricing revenue, assumptions used in evaluating our goodwill for impairment, and assumptions regarding our effective tax rates. Actual results could differ significantly from our estimates.

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, transfer pricing revenue, goodwill impairment analysis and income taxes.

Allowance for Credit Losses

Our allowance for credit losses is an estimate of the credit losses that are expected over the life of the financial instrument or exposure and has three components: the allowance for loans measured on a collective basis, when similar risk characteristics exist, the allowance for loans measured on an individual basis, for loans that do not share similar risk characteristics, and the allowance for losses on unfunded credit commitments, which is included in other liabilities.

The Company's methodology for estimating credit losses uses relevant available information relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made over a forecast period to account for differences between current and expected future conditions and those reflected in historical loss information. Beyond the forecast period, estimated expected credit losses revert to average historical loss experience. To estimate the collectively-assessed allowance, expected loss is calculated as the product of PD, LGD, and EAD modeled parameters that are projected on a monthly basis over the assets’ remaining contractual lives.

Expected loss models incorporate significant assumptions over the forecast period based on management’s expectations. Estimating losses as of December 31, 2020 was particularly challenging due to the heightened volatility and uncertainty in the economy from the emergence of COVID-19. Significant management assumptions during the forecast period include gross domestic product, unemployment, the duration of economic weakness, and the strength and timing of the following economic recovery. Management adjusted expected loss model calculations by incorporating qualitatively determined model input adjustments and overlays that reflect management’s expectations of the loss mitigating impact of monetary and fiscal stimulus policies and loan modification programs as a result of the COVID-19 pandemic that are not otherwise incorporated into the modeling methodology. The Company also shortened the forecast period to 24 months during the first quarter of 2020, compared with 36 months upon adoption of ASU 2016-13 as of January 1, 2020. Changes in these estimates could significantly impact our allowance and provision for credit losses.

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For further information regarding our allowance for loan losses, see "Risk Management - Credit Risk Management - Allowance for Credit Losses" in this "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Allowance for Loan Losses" in Note 1 and Note 3 to our consolidated financial statements 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.

Goodwill Impairment

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 quantitative impairment test by comparing the fair value of the reporting unit to its carrying amount, including 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 analysis such as the cash flow projections and market comparables developed to estimate the fair value of its reporting units. 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 quantitative impairment test to conclude whether the fair value of the reporting unit is still above its carrying amount. During the third quarter of 2020, due largely to increases in observed market discount rates, the Company recorded an impairment of goodwill of $357 million allocated to two of its reporting units. See "Goodwill Impairment" in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-K for additional information.

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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.

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 presents a reconciliation between certain GAAP amounts and specific non-GAAP measures used to calculate return on average MUAH tangible common equity for the years ended December 31, 2020, 2019 and 2018. Management believes that this ratio provides useful supplemental information regarding the Company's business results.

	For the Years Ended December 31,
(Dollars in millions)	2020			2019			2018
Net income (loss) attributable to MUAH	$	166		$	(734)		$	1,073
Add: Intangible asset amortization, net of tax	14			25			19
Add: Goodwill impairment, net of tax	347			1,568			—
Net income (loss) attributable to MUAH, excluding intangible asset amortization and goodwill impairment (a)	$	527		$	859		$	1,092
Average MUAH stockholders' equity	$	16,807		$	16,866		$	18,400
Less: Goodwill	1,674			2,963			3,301
Less: Intangible assets, except mortgage servicing rights	226			279			299
Less: Deferred tax liabilities related to goodwill and intangible assets	(17)			(43)			(57)
Average MUAH tangible common equity (b)	$	14,924		$	13,667		$	14,857
Return on average MUAH tangible common equity (a)/(b)	3.53		%	6.29		%	7.35		%

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The following table shows the calculation of the adjusted efficiency ratio for the years ended December 31, 2020, 2019 and 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 noninterest expense for the impact of goodwill impairment and revenue for the impact of the TCJA enhances comparability between periods.

	For the Years Ended December 31,
(Dollars in millions)	2020			2019			2018
Noninterest expense (a)	$	5,021		$	6,215		$	4,277
Less: Costs associated with services provided to MUFG Bank, Ltd. branches in the U.S.	1,319			1,295			1,001
Less: Goodwill impairment	357			1,614			—
Noninterest expense, as adjusted (b)	$	3,345		$	3,306		$	3,276
Total revenue (c)	$	5,982		$	5,798		$	5,484
Less: Fees from affiliates for services provided to MUFG Bank, Ltd.'s branches in the U.S.	1,408			1,373			1,128
Less: Impact of the TCJA	—			—			(164)
Total revenue, as adjusted (d)	$	4,574		$	4,425		$	4,520
Efficiency ratio (a)/(c)	83.93		%	107.18		%	77.98		%
Adjusted efficiency ratio (b)/(d)	73.12		%	74.69		%	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)	2020		2019		2018
Interest Income
Loans	$	2,975	$	3,625	$	3,303
Securities	470		619		665
Securities borrowed or purchased under resale agreements	190		765		652
Trading assets	358		360		415
Other	59		180		90
Total interest income	4,052		5,549		5,125
Interest Expense
Deposits	363		826		441
Commercial paper and other short-term borrowings	44		202		168
Long-term debt	349		497		365
Securities loaned or sold under repurchase agreements	155		830		734
Trading liabilities	64		101		110
Total interest expense	975		2,456		1,818
Net Interest Income	3,077		3,093		3,307
Provision for credit losses	829		252		106
Net interest income after provision for credit losses	2,248		2,841		3,201
Noninterest Income
Service charges on deposit accounts	147		166		179
Trust and investment management fees	118		117		118
Trading account activities	38		70		(24)
Securities gains, net	144		39		8
Credit facility fees	107		98		90
Brokerage commissions and fees	69		74		73
Card processing fees, net	51		56		50
Investment banking and syndication fees	578		433		355
Fees from affiliates	1,489		1,439		1,213
Other, net	164		213		115
Total noninterest income	2,905		2,705		2,177
Noninterest Expense
Salaries and employee benefits	2,751		2,687		2,616
Net occupancy and equipment	436		431		367
Professional and outside services	680		651		487
Software	343		313		287
Regulatory assessments	48		63		85
Intangible asset amortization	20		34		26
Goodwill impairment	357		1,614		—
Other	386		422		409
Total noninterest expense	5,021		6,215		4,277
Income before income taxes and including noncontrolling interests	132		(669)		1,101
Income tax expense (benefit)	(18)		82		52
Net (Loss) Income Including Noncontrolling Interests	150		(751)		1,049
Deduct: Net loss (income) from noncontrolling interests	16		17		24
Net (Loss) Income Attributable to MUAH	$	166	$	(734)	$	1,073

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)	2020		2019		2018
Net (Loss) Income Attributable to MUAH	$	166	$	(734)	$	1,073
Other Comprehensive Income (Loss), Net of Tax:
Net change in unrealized gains (losses) on cash flow hedges	318		105		(46)
Net change in unrealized gains (losses) on investment securities	485		280		(140)
Foreign currency translation adjustment	—		—		(2)
Pension and other postretirement benefit adjustments	72		76		(130)
Other	—		1		(1)
Total other comprehensive income (loss)	875		462		(319)
Comprehensive Income (Loss) Attributable to MUAH	1,041		(272)		754
Comprehensive income (loss) from noncontrolling interests	(16)		(17)		(24)
Total Comprehensive Income (Loss)	$	1,025	$	(289)	$	730

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, 2020		December 31, 2019
Assets
Cash and due from banks	$	2,105	$	2,457
Interest bearing deposits in banks	14,309		7,184
Total cash and cash equivalents	16,414		9,641
Securities borrowed or purchased under resale agreements	17,608		23,943
Trading account assets (includes $3,246 at December 31, 2020 and $887 at December 31, 2019 pledged as collateral that may be repledged)	16,038		10,377
Securities available for sale (includes $189 at December 31, 2020 and $142 at December 31, 2019 pledged as collateral that may be repledged)	18,259		17,789
Securities held to maturity (fair value $7,532 at December 31, 2020 and $9,508 at December 31, 2019)	7,311		9,421
Loans held for investment	82,166		88,213
Allowance for loan losses	(1,273)		(538)
Loans held for investment, net	80,893		87,675
Goodwill	1,407		1,764
Other assets	9,916		10,200
Total assets	$	167,846	$	170,810
Liabilities
Deposits:
Noninterest bearing	$	40,130	$	31,521
Interest bearing	62,296		64,340
Total deposits	102,426		95,861
Securities loaned or sold under repurchase agreements	27,161		28,866
Commercial paper and other short-term borrowings	110		6,484
Long-term debt	14,631		17,129
Trading account liabilities	3,333		3,266
Other liabilities	2,906		2,837
Total liabilities	150,567		154,443
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, 132,076,912 shares issued and outstanding at December 31, 2020 and December 31, 2019	132		132
Additional paid-in capital	8,242		8,222
Retained earnings	8,802		8,788
Accumulated other comprehensive loss	13		(862)
Total MUAH stockholders' equity	17,189		16,280
Noncontrolling interests	90		87
Total equity	17,279		16,367
Total liabilities and equity	$	167,846	$	170,810

See accompanying Notes to Consolidated Financial Statements.

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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, 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
Net income (loss)	—		—		(734)		—		(17)		(751)
Other comprehensive income (loss), net of tax	—		—		—		462		—		462
Compensation—restricted stock units	—		26		(7)		—		—		19
Other	—		20		5		—		32		57
Net change	—		46		(736)		462		15		(213)
BALANCE DECEMBER 31, 2019	$	132	$	8,222	$	8,788	$	(862)	$	87	$	16,367
Cumulative effect from adoption of ASU 2016-13 (1)	—		—		(147)		—		—		(147)
Net income (loss)	—		—		166		—		(16)		150
Other comprehensive income (loss), net of tax	—		—		—		875		—		875
Compensation—restricted stock units	—		20		(9)		—		—		11
Other	—		—		4		—		19		23
Net change	—		20		14		875		3		912
BALANCE DECEMBER 31,2020	$	132	$	8,242	$	8,802	$	13	$	90	$	17,279

(1)For further information see Note 1 to these Consolidated Financial Statements

See accompanying Notes to Consolidated Financial Statements.

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MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Cash Flows

	For the Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Cash Flows from Operating Activities:
Net (loss) income including noncontrolling interests	$	150	$	(751)	$	1,049
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
(Reversal of) provision for credit losses	829		252		106
Depreciation, amortization and accretion, net	597		563		411
Stock-based compensation—restricted stock units	83		89		77
Deferred income taxes	(346)		(264)		(242)
Net gains on sales of securities	(144)		(39)		(8)
Net decrease (increase) in securities borrowed or purchased under resale agreements	6,335		(1,575)		(1,474)
Net decrease (increase) in securities loaned or sold under repurchase agreements	(1,705)		1,581		848
Net decrease (increase) in trading account assets	(5,661)		836		(646)
Net decrease (increase) in other assets	922		216		170
Net increase (decrease) in trading account liabilities	67		(761)		427
Net increase (decrease) in other liabilities	38		219		103
Loans originated for sale	(5,664)		(3,238)		(2,339)
Net proceeds from sale of loans originated for sale	5,164		2,944		1,626
Pension and other benefits adjustment	(22)		(42)		(50)
Goodwill impairment	357		1,614		—
Other, net	(7)		59		(18)
Total adjustments	843		2,454		(1,009)
Net cash provided by (used in) operating activities	993		1,703		40
Cash Flows from Investing Activities:
Proceeds from sales of securities available for sale	4,342		4,637		1,505
Proceeds from paydowns and maturities of securities available for sale	2,491		2,566		2,822
Purchases of securities available for sale	(6,441)		(7,839)		(5,643)
Proceeds from paydowns and maturities of securities held to maturity	3,948		4,454		1,682
Purchases of securities held to maturity	(1,847)		(3,153)		(772)
Proceeds from sales of loans	472		952		770
Net decrease (increase) in loans	5,734		(2,831)		(6,785)
Purchases of other investments	(214)		(143)		(262)
Other, net	(374)		(314)		(57)
Net cash provided by (used in) investing activities	8,111		(1,671)		(6,740)
Cash Flows from Financing Activities:
Net increase (decrease) in deposits	6,565		4,880		6,184
Net increase (decrease) in commercial paper and other short-term borrowings	(6,376)		(2,778)		2,198
Proceeds from issuance of long-term debt	3,663		5,698		15,458
Repayment of long-term debt	(6,166)		(6,471)		(9,655)
Share repurchase	—		—		(2,496)
Other, net	(59)		(96)		(115)
Change in noncontrolling interests	19		32		(4)
Net cash provided by (used in) financing activities	(2,354)		1,265		11,570
Net change in cash, cash equivalents and restricted cash	6,750		1,297		4,870
Cash, cash equivalents and restricted cash at beginning of period	9,695		8,398		3,528
Cash, cash equivalents and restricted cash at end of period	$	16,445	$	9,695	$	8,398
Cash Paid During the Period For:
Interest	$	1,061	$	2,417	$	1,761
Income taxes, net	230		202		116
Supplemental Schedule of Noncash Investing and Financing Activities:
Net transfer of loans held for investment to (from) loans held for sale	$	(228)	$	718	$	44
Securities held to maturity transferred to securities available for sale	—		170		—
Securities available for sale transferred to securities held to maturity	—		—		2,006
Reconciliation of Cash, Cash Equivalents and Restricted Cash:
Cash and cash equivalents	$	16,414	$	9,641	$	8,350
Restricted cash included in other assets	31		54		48
Total cash, cash equivalents and restricted cash per consolidated statement of cash flows	$	16,445	$	9,695	$	8,398

See accompanying Notes to Consolidated Financial Statements.

77

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).

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 "Loans and Allowance for Loan Losses"), goodwill impairment (Note 5 "Goodwill and Other Intangible Assets"), income taxes (Note 17 "Income Taxes"), and transfer pricing (Note 21 "Related Party Transactions").

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 are accounted for as collateralized financings. Securities borrowed and securities loaned represent the amount of

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

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 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 these 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, equity contracts, 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 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 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. However, unrealized losses on securities available for sale that we intend to sell, or if it is more likely than not that we will be required to sell, before recovery of the security's amortized cost basis are included in noninterest income. Credit losses on securities available for sale that we do not expect to sell and credit losses on securities held to maturity, if any, are recorded as discussed in "Allowance for Credit Losses" in this note.

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 based on the estimated lives of the securities 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.

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

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.

For further information on our debt securities, see Note 2 to these consolidated financial statements.

Loans Held for Investment, 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. Interest income may be recognized on these nonaccrual loans, referred to as "Cash Basis Nonaccrual", only when payments are 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. Credit losses on TDR's are recorded as discussed in "Allowance for Credit Losses" in this note. 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.

On March 22, 2020, the federal bank regulatory agencies issued joint guidance advising that the agencies have confirmed with the staff of the FASB that short-term modifications due to COVID-19 made on a good faith basis to borrowers who were current prior to relief, are not TDRs. On March 27, 2020, the CARES Act, which provides relief from TDR classification for certain COVID-19-related loan modifications, was signed into law. The Company did not classify loan modifications, which were largely payment deferrals, that met the criteria under either the CARES Act or the criteria specified by the regulatory agencies as TDRs. At December 31, 2020, $1.0 billion of modified commercial loans and $1.4 billion of modified consumer loans were still in deferral and not classified as TDRs. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan.

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.

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

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

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.

The Company provides lease financing to its customers as lessor. Direct financing 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.

Allowance for Credit Losses

Allowance for loan losses

Allowance for loan losses is a valuation account that is deducted from the assets’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management confirms the uncollectibility of a loan balance. Expected recoveries, if any, do not exceed the aggregate of amounts previously charged-off.

Management develops and documents its systematic methodology for determining the allowance by first dividing its portfolio into two segments - the commercial segment and consumer segment. The Company further divides its 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 and classes, the allowance estimate is provided to cover all credit losses expected in the loan portfolio.

The Company's methodology for estimating the allowance uses relevant available information relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made to account for differences between current and expected future conditions and those reflected in historical loss information. The allowance is measured on a collective basis when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis.

The collectively-assessed allowance methodology incorporated an economic forecast over a 36-month period when ASU 2016-13, Measurement of Credit Losses on Financial Instruments, was adopted as of January 1, 2020. Beyond the 36-month economic forecast, the allowance methodology reverted to average historical loss information on a straight-line basis over a 24-month period. However, the economic forecast was shortened to a 24-month period during the first quarter of 2020 due to heightened volatility and uncertainty in the economy due to the emergence of COVID-19. No change was made to the 24-month straight-line reversion to historical loss information. These timeframes are regularly reviewed and approved by management and may be adjusted if economic conditions warrant.

An expected loss approach is used to estimate the collectively-assessed allowance for both the commercial and consumer portfolio segments. Expected loss is calculated as the product of PD, LGD, and EAD modeled parameters that are projected on a monthly basis over the assets’ remaining contractual lives. The sum of each month’s expected loss calculation results in the collectively-assessed allowance estimate. Expected loss models use historical loss information and a variety of economic assumptions to estimate PD, LGD, and EAD. These models are tailored to different loan segments, classes and products by changing the economic variables or their weighting in the calculation used to estimate expected losses.

The allowance is an estimate of expected credit losses over the remaining contractual term of each asset. Expected prepayments are incorporated into the estimation of the EAD for each asset over the asset’s remaining term, which shortens the expected remaining term. Contractual term is not adjusted for expected extensions, renewals, and modifications unless management has a reasonable expectation that a TDR will be executed with a borrower. Credit cards do not have defined contractual terms. In order to estimate the expected credit losses on actively used revolving credit card balances, we make assumptions about expected payments and expected spending on the unconditionally cancelable unfunded amount at the measurement date. Expected spending after the measurement date reduces the expected payments that are allocated to

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

the outstanding balance at the measurement date. Expected credit losses are calculated only on the outstanding balances component at the measurement date, which is amortized by applying the proportion of the expected payment allocated to the outstanding balance. Expected payments applied to the expected spending after the measurement date are excluded from the analysis because unconditionally cancelable unfunded commitments are not reservable.

Loans that do not share risk characteristics are evaluated individually to determine the allowance. Loans assessed individually include larger nonaccruing loans within the commercial portfolio, TDRs, reasonably expected TDRs and collateral-dependent loans. Collateral-dependent loans are generally individually-assessed for allowance purposes. Collateral-dependent assets' expected credit losses are assessed when the fair value of the collateral is less than the amortized cost basis of the asset. Collateral-dependent assets are evaluated in this manner when foreclosure is probable, or when repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. Estimated costs to sell are included in the estimate when repayment is expected by the sale of the collateral. Collateral-dependent assets are generally secured by real estate collateral. When the discounted cash flow method is used to determine the allowance for individually-assessed loans, management does not adjust the interest rate used to discount expected cash flows to incorporate expected prepayments.

Management implements qualitative adjustments to the collectively-assessed allowance to account for the risks not incorporated in the model between current conditions and those reflected in the historical loss information used to estimate the models. These qualitative factors include changes in credit policies, problem loan trends, identification of new risks not incorporated into the modeling framework, credit concentrations, changes in lending management and other external factors. Qualitative adjustments are also used to adjust the collectively-assessed allowance to account for risks attributed to imprecision in the economic forecast and when risks emerge that impact specific portfolio components (i.e., natural disasters).

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' allowance is measured either individually or in pools with similar risk characteristics. The allowance for a TDR loan is measured using the same method as all other loans when evaluated in pools. The allowance for individually assessed TDR loans is measured using a discounted cash flow methodology, or by evaluating the fair value of the collateral, if collateral dependent. When the value of a concession cannot be measured using a method other than the discounted cash flow method, the value of a concession is measured by discounting the expected future cash flows at the original interest rate of the loan. When we have a reasonable expectation that a TDR loan may be executed with a borrower at the evaluation date, we may modify the allowance calculation to align with the expected modification terms, which may include modifying the expected contractual term.

We generally do not record an allowance for accrued interest receivable on loans held for investment, which is included in other assets on the consolidated balance sheet. Uncollectible accrued interest is generally reversed through interest income.

Allowance for Credit Losses on Debt Securities

The Company's debt securities generally are explicitly or implicitly guaranteed by U.S. government entities or agencies or are non-agency-backed assets that are highly rated and have not incurred credit losses historically. No credit losses are expected on these assets and thus no allowance is estimated on these debt securities.

Allowance for Credit Losses on Securities Borrowed or Purchased under Resale Agreements

Securities borrowed or purchased under resale agreements are subject to allowance estimation, however management has no history of credit losses on these assets and has portfolio monitoring practices that ensure collateral is maintained at appropriate levels. As borrowers have a history of replenishing collateral securing the financial assets, when needed, and are expected to continue to maintain such behavior in the future, no allowance is estimated on these assets.

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

Allowance for Credit Losses on Unfunded Credit Commitments

The Company maintains an allowance for losses on unfunded credit commitments for the contractual term over which we are exposed to credit risk that is not unconditionally cancelable by the Company. The Company's allowance methodology for unfunded credit commitments is the same as that used for the allowance for the other collectively-evaluated assets and includes an estimate of commitments that are expected to fund over the remaining contractual term. The allowance for losses on unfunded credit commitments is classified as other liabilities on the balance sheet, with changes recognized in the provision for credit losses.

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 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. Intangible assets that have indefinite lives are tested for impairment at least annually, and more frequently in certain circumstances.

The Company has elected to account for its residential mortgage servicing rights using the fair value measurement method. Under the fair value measurement method, residential mortgage servicing rights are measured at estimated fair value each period with changes in fair value included in other, net within noninterest income.

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 impairment test by comparing the fair value of the reporting unit to its carrying amount, including goodwill. A goodwill impairment loss is 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. 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

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

investments using the 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, changes in the fair value of the derivative instrument are recorded in earnings together with the change in fair value of the hedged item. For cash flow hedges, changes in the fair value of the derivative instrument are 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.

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

Transfer Pricing

Employees of the Company perform management and support services for 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 in earnings.

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. For combinations between entities under common control, assets and liabilities acquired are recorded at book value at the transfer date.

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

Recently Adopted Accounting Pronouncements

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provided new guidance on the accounting for credit losses for instruments that are within its scope. This new guidance is commonly referred to as the 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 by incorporating forward-looking information, such as reasonable and supportable forecasts, in the entity's assessment of the collectability of financial assets. Lifetime expected credit losses on purchased financial assets with credit deterioration are recognized as an allowance with an offset to the cost basis of the asset. For debt securities available for sale, the new standard requires 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 Company adopted the ASU on January 1, 2020, and recorded an increase to the allowance for credit losses of $199 million, primarily due to an increase in the allowance for consumer loans, offset by a $52 million deferred tax asset, and a $147 million cumulative-effect adjustment reduction to retained earnings.

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 Company adopted the ASU on January 1, 2020. The guidance only affects disclosures in Notes to Consolidated Financial Statements and did not affect the Company’s financial position or results of operations.

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This guidance is effective on a prospective basis to new modifications made before December 31, 2022. The Company adopted this guidance in 2020 and management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) – Scope, which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. We will continue to assess the impact as the reference rate transition occurs over the next two years.

86

Note 2—Securities

Securities Available for Sale

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale for December 31, 2020 and 2019 are presented below.

	December 31, 2020								December 31, 2019
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury and government agencies	$	4,273	$	202	$	2	$	4,473	$	5,485	$	6	$	53	$	5,438
Mortgage-backed:
U.S. agencies	5,843		81		2		5,922		5,491		13		36		5,468
Residential - non-agency	539		2		2		539		759		5		2		762
Commercial - non-agency	4,212		286		9		4,489		3,461		56		28		3,489
Collateralized loan obligations	1,370		1		4		1,367		1,499		—		8		1,491
Direct bank purchase bonds	891		46		7		930		911		43		18		936
Other	532		7		—		539		202		3		—		205
Total securities available for sale	$	17,660	$	625	$	26	$	18,259	$	17,808	$	126	$	145	$	17,789

The Company's securities available for sale with a continuous unrealized loss position at December 31, 2020 and 2019 are shown below, identified for periods less than 12 months and 12 months or more.

	December 31, 2020
	Less Than 12 Months				12 Months or More				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury and government agencies	$	635	$	2	$	—	$	—	$	635	$	2
Mortgage-backed:
U.S. agencies	43		—		732		2		775		2
Residential - non-agency	275		2		15		—		290		2
Commercial - non-agency	354		9		25		—		379		9
Collateralized loan obligations	593		1		477		3		1,070		4
Direct bank purchase bonds	26		1		197		6		223		7
Other	—		—		—		—		—		—
Total securities available for sale	$	1,926	$	15	$	1,446	$	11	$	3,372	$	26

	December 31, 2019
	Less Than 12 Months				12 Months or More				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury and government agencies	$	4,407	$	48	$	543	$	5	$	4,950	$	53
Mortgage-backed:
U.S. agencies	914		4		2,769		32		3,683		36
Residential - non-agency	127		—		155		2		282		2
Commercial - non-agency	1,669		28		12		—		1,681		28
Collateralized loan obligations	597		2		790		6		1,387		8
Direct bank purchase bonds	118		1		294		17		412		18
Other	25		—		—		—		25		—
Total securities available for sale	$	7,857	$	83	$	4,563	$	62	$	12,420	$	145

87

Note 2—Securities (Continued)

At December 31, 2020, 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 and commercial 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 and commercial 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, 2020, 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 recoverability and 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, 2020, 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 recoverability and 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, 2020, 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 recoverability and 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, 2020, 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, 2020
(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
U.S. Treasury and government agencies	$	—	$	157	$	4,155	$	161	$	4,473
Mortgage-backed:
U.S. agencies	—		65		927		4,930		5,922
Residential - non-agency	—		—		4		535		539
Commercial - non-agency	—		—		1,774		2,715		4,489
Collateralized loan obligations	—		2		945		420		1,367
Direct bank purchase bonds	94		411		350		75		930
Other	10		180		349		—		539
Total securities available for sale	$	104	$	815	$	8,504	$	8,836	$	18,259

88

Note 2—Securities (Continued)

The gross realized gains and losses from sales of available for sale securities for the years ended December 31, 2020, 2019 and 2018 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)	2020		2019		2018
Gross realized gains	$	144	$	39	$	8

Securities Held to Maturity

At December 31, 2020 and 2019, 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, 2020
			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 and government agencies	$	2,260	$	—	$	—	$	2,260	$	22	$	27	$	2,255
Mortgage-backed:
U.S. agencies	5,116		1		66		5,051		226		—		5,277
Total securities held to maturity	$	7,376	$	1	$	66	$	7,311	$	248	$	27	$	7,532

	December 31, 2019
			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 and government agencies	$	1,359	$	—	$	—	$	1,359	$	—	$	6	$	1,353
Mortgage-backed:
U.S. agencies	8,166		—		104		8,062		123		30		8,155
Total securities held to maturity	$	9,525	$	—	$	104	$	9,421	$	123	$	36	$	9,508

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.

89

Note 2—Securities (Continued)

The Company's securities held to maturity with a continuous unrealized loss position at December 31, 2020 and 2019 are shown below, separately for periods less than 12 months and 12 months or more.

	December 31, 2020
	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 and government agencies	$	1,267	$	—	$	27	$	—	$	—	$	—	$	1,267	$	—	$	27
Mortgage-backed:
U.S. agencies	65		—		—		2,472		66		—		2,537		66		—
Total securities held to maturity	$	1,332	$	—	$	27	$	2,472	$	66	$	—	$	3,804	$	66	$	27

	December 31, 2019
	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 and government agencies	$	509	$	—	$	6	$	—	$	—	$	—	$	509	$	—	$	6
Mortgage-backed:
U.S. agencies	1,084		—		9		4,515		104		21		5,599		104		30
Total securities held to maturity	$	1,593	$	—	$	15	$	4,515	$	104	$	21	$	6,108	$	104	$	36

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, 2020
	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 and government agencies	$	—	$	—	$	—	$	—	$	441	$	457	$	1,819	$	1,798	$	2,260	$	2,255
Mortgage-backed:
U.S. agencies	—		—		619		641		655		688		3,777		3,948		5,051		5,277
Total securities held to maturity	$	—	$	—	$	619	$	641	$	1,096	$	1,145	$	5,596	$	5,746	$	7,311	$	7,532

Securities Pledged and Received as Collateral

At December 31, 2020 and December 31, 2019, the Company pledged $15.5 billion and $10.5 billion of available for sale and trading securities as collateral, respectively, of which $3.4 billion and $1.0 billion, respectively, was permitted to be sold or repledged. These securities were pledged as collateral for derivative liability positions and securities loaned or sold under repurchase agreements, and to secure public and trust department deposits.

At December 31, 2020 and December 31, 2019, the Company received $29.9 billion and $34.0 billion, respectively, of collateral for derivative asset positions and securities borrowed or purchased under resale agreements, of which $29.9 billion and $34.0 billion, respectively, was permitted to be sold or repledged. Of

90

Note 2—Securities (Continued)

the collateral received, the Company sold or repledged $29.7 billion and $32.5 billion at December 31, 2020 and December 31, 2019, respectively, for securities loaned or sold under repurchase agreements.

For additional information related to the Company's significant accounting policies on securities pledged as collateral, see Note 1 to these consolidated financial statements.

Note 3—Loans and Allowance for Loan Losses

    The following table provides the outstanding balances of loans held for investment at December 31, 2020 and 2019.

(Dollars in millions)	December 31, 2020		December 31, 2019
Loans held for investment:
Commercial and industrial	$	31,212	$	26,338
Commercial mortgage	16,244		16,895
Construction	1,655		1,511
Lease financing	1,038		1,001
Total commercial portfolio	50,149		45,745
Residential mortgage and home equity(1)	29,034		38,018
Other consumer(2)	2,983		4,450
Total consumer portfolio	32,017		42,468
Total loans held for investment(3)	82,166		88,213
Allowance for loan losses	(1,273)		(538)
Loans held for investment, net	$	80,893	$	87,675

(1)Includes home equity loans of $1,590 million and $2,049 million at December 31, 2020 and December 31, 2019, respectively.

(2)Other consumer loans substantially include unsecured consumer loans and consumer credit cards.

(3)Includes $127 million and $320 million at December 31, 2020 and December 31, 2019, respectively, for net unamortized (discounts) and premiums and deferred (fees) and costs.

Accrued interest receivable on loans held for investment totaled $242 million at December 31, 2020 and is included in other assets on the consolidated balance sheet. For certain COVID-19-related loan modifications, which were largely payment deferrals, the Company recorded an allowance for uncollectible accrued interest of $1 million at December 31, 2020.

91

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

Allowance for Loan Losses

The provision for loan losses was $617 million for the commercial loan segment and $226 million for the consumer loan segment at December 31, 2020, largely due to the impact of the COVID-19 pandemic and the corresponding deterioration in the economic environment on the allowance for loan losses. In particular, increases in the allowance for loan losses on loans to certain industries especially impacted by COVID-19, including commercial real estate related loans, and losses on individually assessed commercial loans, also contributed to the commercial segment provision. The economic forecast incorporated management's expectations at December 31, 2020, which included a modest recovery in 2021 and continuing into subsequent years. Although our economic forecast stabilized in the second half of 2020, elevated COVID-19-related uncertainty remains, particularly with respect to persistently high COVID-19 cases and the offsetting effect of additional monetary and fiscal stimulus that is expected to continue into 2021.

	For the Year Ended December 31, 2020
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses, beginning of period	$	354	$	184	$	—	$	538
Cumulative effect adjustment from adoption of ASU 2016-13 (1)	76		153		—		229
Allowance for loan losses, beginning of period, adjusted for adoption of ASU 2016-13 (1)	430		337		—		767
(Reversal of) provision for loan losses	617		226		—		843
Loans charged-off	(221)		(157)		—		(378)
Recoveries of loans previously charged-off	25		16		—		41
Allowance for loan losses, end of period	$	851	$	422	$	—	$	1,273

(1)For further information see Note 1 to these consolidated financial statements.

	For the Year Ended December 31, 2019
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses, beginning of period	$	359	$	110	$	5	$	474
(Reversal of) provision for loan losses	124		164		(5)		283
Loans charged-off	(158)		(98)		—		(256)
Recoveries of loans previously charged-off	29		8		—		37
Allowance for loan losses, end of period	$	354	$	184	$	—	$	538

The following tables show the allowance for loan losses and related loan balances by portfolio segment as of December 31, 2019.

	December 31, 2019
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	43	$	12	$	—	$	55
Collectively evaluated for impairment	311		172		—		483
Total allowance for loan losses	$	354	$	184	$	—	$	538
Loans held for investment:
Individually evaluated for impairment	$	436	$	246	$	—	$	682
Collectively evaluated for impairment	45,309		42,222		—		87,531
Total loans held for investment	$	45,745	$	42,468	$	—	$	88,213

92

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

Nonaccrual and Past Due Loans

The following table presents nonaccrual loans as of December 31, 2020 and 2019. The nonaccrual loans all have related allowance for credit losses accrued as of December 31, 2020.

(Dollars in millions)	December 31, 2020		December 31, 2019
Commercial and industrial	$	182	$	175
Commercial mortgage	317		15
Construction	28		—
Total commercial portfolio	527		190
Residential mortgage and home equity	183		137
Other consumer	1		1
Total consumer portfolio	184		138
Total nonaccrual loans	$	711	$	328
Troubled debt restructured loans that continue to accrue interest	$	212	$	392
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)	$	279	$	171

The following tables show the aging of the balance of loans held for investment by class as of December 31, 2020 and 2019.

	December 31, 2020
	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	$	32,101	$	76	$	73	$	149	$	32,250
Commercial mortgage	15,983		128		133		261		16,244
Construction	1,634		21		—		21		1,655
Total commercial portfolio	49,718		225		206		431		50,149
Residential mortgage and home equity	28,815		156		63		219		29,034
Other consumer	2,943		26		14		40		2,983
Total consumer portfolio	31,758		182		77		259		32,017
Total loans held for investment	$	81,476	$	407	$	283	$	690	$	82,166

	December 31, 2019
	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	$	27,241	$	37	$	61	$	98	$	27,339
Commercial mortgage	16,858		34		3		37		16,895
Construction	1,511		—		—		—		1,511
Total commercial portfolio	45,610		71		64		135		45,745
Residential mortgage and home equity	37,788		179		51		230		38,018
Other consumer	4,400		33		17		50		4,450
Total consumer portfolio	42,188		212		68		280		42,468
Total loans held for investment	$	87,798	$	283	$	132	$	415	$	88,213

93

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

Loans held for investment 90 days or more past due and still accruing interest totaled $45 million and $20 million at December 31, 2020 and 2019, respectively. The following table presents the loans that are 90 days or more past due, but are not on nonaccrual status, by loan class.

(Dollars in millions)	December 31, 2020		December 31, 2019
Commercial and industrial	$	13	$	3
Commercial mortgage	11		—
Total commercial portfolio	24		3
Residential mortgage and home equity	7		—
Other consumer	14		17
Total consumer portfolio	21		17
Total loans that are 90 days or more past due and still accruing	$	45	$	20

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.

94

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

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

	December 31, 2020
	Non-Revolving Loans at Amortized Cost by Origination Year																		Revolving Loans			Total
(Dollars in millions)	2020			2019			2018			2017			2016			Prior
Commercial and industrial:
Pass	$	6,444		$	2,207		$	1,592		$	990		$	697		$	1,477		$	15,693		$	29,100
Criticized:
Special Mention	30			182			128			64			30			96			724			1,254
Classified	79			76			155			41			1			35			471			858
Total	6,553			2,465			1,875			1,095			728			1,608			16,888			31,212
Commercial mortgage:
Pass	1,636			3,730			2,778			1,708			1,527			3,180			65			14,624
Criticized:
Special Mention	16			109			245			44			54			194			15			677
Classified	1			102			351			8			69			412			—			943
Total	1,653			3,941			3,374			1,760			1,650			3,786			80			16,244
Construction:
Pass	305			717			321			74			—			2			24			1,443
Criticized:
Special Mention	1			12			108			36			8			—			—			165
Classified	—			—			21			9			—			17			—			47
Total	306			729			450			119			8			19			24			1,655
Lease financing:
Pass	387			140			1			—			48			462			—			1,038
Criticized:
Special Mention	—			—			—			—			—			—			—			—
Classified	—			—			—			—			—			—			—			—
Total	387			140			1			—			48			462			—			1,038
Total commercial portfolio	$	8,899		$	7,275		$	5,700		$	2,974		$	2,434		$	5,875		$	16,992		$	50,149
Percentage of total	17		%	15		%	11		%	6		%	5		%	12		%	34		%	100		%

	December 31, 2019
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	26,210	$	636	$	493	$	27,339
Commercial mortgage	16,569		114		212		16,895
Construction	1,399		50		62		1,511
Total commercial portfolio	$	44,178	$	800	$	767	$	45,745

95

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

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 $3 million of loans covered by FDIC loss share agreements at December 31, 2019.

Payment Status	December 31, 2020
	Non-Revolving Loans at Amortized Cost by Origination Year																		Revolving Loans			Total
(Dollars in millions)	2020			2019			2018			2017			2016			Prior
Residential mortgage and home equity:
Accrual	$	4,067		$	4,284		$	2,738		$	5,354		$	5,027		$	6,363		$	1,018		$	28,851
Nonaccrual	—			7			5			11			10			142			8			183
Total	4,067			4,291			2,743			5,365			5,037			6,505			1,026			29,034
Other consumer:
Accrual	606			1,639			421			29			3			31			253			2,982
Nonaccrual	—			—			—			—			—			1			—			1
Total	606			1,639			421			29			3			32			253			2,983
Total consumer portfolio	$	4,673		$	5,930		$	3,164		$	5,394		$	5,040		$	6,537		$	1,279		$	32,017
Percentage of total	15		%	18		%	10		%	17		%	16		%	20		%	4		%	100		%

	December 31, 2019
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage and home equity	$	37,878	$	137	$	38,015
Other consumer	4,449		1		4,450
Total consumer portfolio	$	42,327	$	138	$	42,465

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.

96

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

The following tables summarize the loans in the consumer portfolio segment based on refreshed FICO scores and refreshed LTV ratios at December 31, 2020 and 2019. The December 31, 2019 amounts presented reflect unpaid principal balances less partial charge-offs.

FICO Scores	December 31, 2020
	Non-Revolving Loans by Origination Year																		Revolving Loans			Total
(Dollars in millions)	2020			2019			2018			2017			2016			Prior
Residential mortgage and home equity:
720 and Above	$	3,623		$	3,796		$	2,265		$	4,527		$	4,390		$	5,083		$	821		$	24,505
Below 720	419			477			460			762			609			1,121			192			4,040
No FICO Available(1)	25			18			18			76			38			301			13			489
Total	4,067			4,291			2,743			5,365			5,037			6,505			1,026			29,034
Other consumer loans:
720 and Above	392			967			258			18			2			5			120			1,762
Below 720	214			672			163			11			1			2			131			1,194
No FICO Available(1)	—			—			—			—			—			25			2			27
Total	606			1,639			421			29			3			32			253			2,983
Total consumer portfolio	$	4,673		$	5,930		$	3,164		$	5,394		$	5,040		$	6,537		$	1,279		$	32,017
Percentage of total	15		%	18		%	10		%	17		%	16		%	20		%	4		%	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, 2019
	FICO scores
(Dollars in millions)	720 and Above			Below 720			No FICO Available(1)			Total
Residential mortgage and home equity	$	31,441		$	5,742		$	454		$	37,637
Other consumer	2,567			1,841			3			4,411
Total consumer portfolio	$	34,008		$	7,583		$	457		$	42,048
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).

LTV Ratios	December 31, 2020
	Non-Revolving Loans by Origination Year																		Revolving Loans			Total
(Dollars in millions)	2020			2019			2018			2017			2016			Prior
Residential mortgage and home equity:
80% or below	$	3,924		$	4,157		$	2,631		$	5,339		$	5,032		$	6,455		$	961		$	28,499
80% to 100%	139			133			111			25			4			23			61			496
100% or more	—			—			—			—			—			2			—			2
No LTV Available(1)	4			1			1			1			1			25			4			37
Total	4,067			4,291			2,743			5,365			5,037			6,505			1,026			29,034
Total consumer portfolio	$	4,067		$	4,291		$	2,743		$	5,365		$	5,037		$	6,505		$	1,026		$	29,034
Percentage of total	14		%	15		%	9		%	18		%	17		%	23		%	4		%	100		%

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

97

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

	December 31, 2019
	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 and home equity	$	35,893		$	1,689		$	12		$	43		$	37,637
Total consumer portfolio	$	35,893		$	1,689		$	12		$	43		$	37,637
Percentage of total	95		%	5		%	—		%	—		%	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, 2020 and 2019. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $24 million and $61 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of December 31, 2020 and 2019, respectively.

(Dollars in millions)	December 31, 2020		December 31, 2019
Commercial and industrial	$	73	$	140
Commercial mortgage	140		168
Construction	28		62
Total commercial portfolio	241		370
Residential mortgage and home equity	248		192
Other consumer	2		1
Total consumer portfolio	250		193
Total restructured loans	$	491	$	563

In 2020, TDR modifications in the commercial portfolio segment were primarily composed of maturity extensions and conversions of revolving lines of credit into fixed terms. In the consumer portfolio segment, modifications were largely composed of maturity extensions and interest rate reductions. There were no charge-offs related to TDR modifications for 2020 or 2019. 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.

On March 22, 2020, the federal bank regulatory agencies issued joint guidance advising that the agencies have confirmed with the staff of the FASB that short-term modifications due to COVID-19 made on a good faith basis to borrowers who were current prior to relief, are not TDRs. On March 27, 2020, the CARES Act, which provides relief from TDR classification for certain COVID-19-related loan modifications, was signed into law. The Company did not classify loan modifications, which were largely payment deferrals, that met the criteria under either the CARES Act or the criteria specified by the regulatory agencies as TDRs. At December 31, 2020, $1.0 billion of modified commercial loans and $1.4 billion of modified consumer loans were still in deferral and not classified as TDRs. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan.

98

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, 2020 and 2019.

	For the Year Ended December 31, 2020				For the Year Ended December 31, 2019
(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	$	108	$	107	$	170	$	172
Commercial mortgage	4		5		129		125
Total commercial portfolio	112		112		299		297
Residential mortgage and home equity	100		100		11		11
Total consumer portfolio	100		100		11		11
Total	$	212	$	212	$	310	$	308

(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 table provides the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the years ended December 31, 2020 and 2019, 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.

(Dollars in millions)	For the Year Ended December 31, 2020		For the Year Ended December 31, 2019
Commercial and industrial	$	29	$	40
Commercial mortgage	1		1
Total commercial portfolio	30		41
Residential mortgage and home equity	1		1
Total consumer portfolio	1		1
Total	$	31	$	42

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.

99

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

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 industries, power and utilities industry, manufacturing industry, and wholesale trade. At December 31, 2020, the Company had $27 billion in residential mortgage loans, substantially all of which were made to borrowers in California. The Company had $17 billion in loans made to the commercial real estate industry and an additional $4 billion in unfunded commitments. At December 31, 2020, the Company had $10 billion in loans made to the financial and insurance industries and an additional $9 billion in unfunded commitments. At December 31, 2020, the Company had $4 billion in loans made to the power and utilities industry and an additional $6 billion in unfunded commitments. At December 31, 2020, the Company had $4 billion in loans made to the manufacturing industry and an additional $5 billion in unfunded commitments. At December 31, 2020, the Company had $3 billion in loans made to the wholesale trade industry and an additional $2 billion in unfunded commitments.

Note 4—Other Assets

Other Assets

The following table shows the balances of other assets as of December 31, 2020 and 2019.

(Dollars in millions)	December 31, 2020		December 31, 2019
Other investments	$	2,721	$	3,033
Premises and equipment, net	650		656
Software	607		527
Intangible assets	313		531
Other	5,625		5,453
Total other assets	$	9,916	$	10,200

Note 5—Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill during 2020 and 2019 are shown in the table below.

(Dollars in millions)	Regional Bank		Global Corporate & Investment Banking - U.S.		Transaction Banking		MUFG Fund Services		Total
Goodwill, December 31, 2018	$	2,134	$	840	$	251	$	76	$	3,301
Goodwill acquired during the year	59		18		—		—		77
Impairment losses	(1,423)		(191)		—		—		(1,614)
Goodwill, December 31, 2019
Goodwill	2,193		858		251		76		3,378
Accumulated impairment losses	(1,423)		(191)		—		—		(1,614)
	770		667		251		76		1,764
Transfers	—		86		(86)		—		—
Impairment losses	(87)		(270)		—		—		(357)
Goodwill, December 31, 2020
Goodwill	2,193		944		165		76		3,378
Accumulated impairment losses	(1,510)		(461)		—		—		(1,971)
	$	683	$	483	$	165	$	76	$	1,407

The Company performs goodwill impairment tests on an annual basis as of April 1, and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. The Company estimates the fair value of its reporting units using

100

Note 5—Goodwill and Other Intangible Assets (Continued)

a combination of income and market approaches. The income approach estimates the fair value of the reporting units by discounting management’s projections of each reporting unit’s cash flows, including a terminal value to estimate the fair value of cash flows beyond the final year of projected results, using a discount rate derived from the Capital Asset Pricing Model. The market approach incorporates comparable public company price to tangible book value and price to earnings multiples.

During the third quarter of 2019, due to the decline in interest rates and slower growth than previously forecasted, cash flow projections for certain reporting units were revised lower. The combination of these events led management to believe that it was more likely than not that the fair values of certain reporting units were below carrying value. As a result, the Company initiated an interim quantitative impairment test of goodwill allocated to three of its reporting units: Consumer Banking, Commercial Banking and Real Estate Industries, and Global Corporate & Investment Banking - U.S.

Certain projected cash flows used to estimate fair value of the reporting units were revised lower than previous projections due to the combination of the following factors: the decline in interest rates through September 30, 2019 and a change in the Company’s expectation that interest rates will remain lower than previously assumed; updates to key loan growth and loan mix assumptions in the forecast to address the Company’s declining net interest margin; and a reduction of the expected growth and cash flow contribution of new initiatives based on a revised economic outlook. Multiples selected in the market approach to estimate fair value were also revised lower than those used in the most recent annual quantitative impairment test due to lower reporting unit earnings.

Upon completing the quantitative impairment test, the Company recorded an impairment charge of $1.6 billion in the third quarter of 2019, which represented the entire amount of goodwill allocated to the Consumer Banking reporting unit and a portion of the goodwill allocated to the Global Corporate & Investment Banking - U.S. reporting unit, which had $667 million allocated goodwill remaining after the impairment.

During the third quarter of 2020, due to revisions to multiples used in the market approach component

of its fair value estimation, the Company initiated an interim quantitative impairment test of goodwill allocated to two of its reporting units: Commercial Banking and Real Estate Industries and Global Corporate & Investment Banking - U.S. Due largely to increases in observed market discount rates, the Company recorded an impairment charge of $357 million, which represented a portion of the goodwill allocated to the Global Corporate & Investment Banking - U.S. and Commercial Banking and Real Estate Industries reporting units, which have $483 million and $640 million allocated goodwill remaining after the impairment, respectively. The impairment charge did not result in a cash outflow and did not significantly affect the regulatory capital ratios or the Company’s liquidity position as of December 31, 2020.

Intangible Assets

The table below reflects the Company's identifiable intangible assets and accumulated amortization at December 31, 2020 and 2019.

	December 31, 2020						December 31, 2019
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangibles	$	565	$	(547)	$	18	$	565	$	(543)	$	22
Trade names	115		(38)		77		115		(35)		80
Customer relationships	198		(91)		107		238		(79)		159
Other(1)	13		(13)		—		13		(13)		—
Total intangible assets with a definite useful life	$	891	$	(689)	$	202	$	931	$	(670)	$	261

(1)December 31, 2020 and December 31, 2019 exclude $110 million and $270 million, respectively, of mortgage servicing rights accounted for at fair value.

Total amortization expense for 2020, 2019 and 2018 was $20 million, $34 million and $26 million, respectively.

101

Note 5—Goodwill and Other Intangible Assets (Continued)

Estimated future amortization expense at December 31, 2020 is as follows:

(Dollars in millions)	Core Deposit Intangibles		Trade Name		Customer Relationships		Total Identifiable Intangible Assets
Years ending December 31, :
2021	$	4	$	3	$	9	$	16
2022	4		3		9		16
2023	2		3		8		13
2024	2		3		8		13
2025	2		3		7		12
Thereafter	4		62		66		132
Total estimated amortization expense	$	18	$	77	$	107	$	202

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, 2020 and 2019.

	December 31, 2020
	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	$	—	$	—	$	81	$	81	$	16	$	16
Leasing investments	—		310		111		421		5		5
Total consolidated VIEs	$	—	$	310	$	192	$	502	$	21	$	21

	December 31, 2019
	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	$	—	$	—	$	96	$	96	$	36	$	36
Leasing investments	—		349		117		466		9		9
Total consolidated VIEs	$	—	$	349	$	213	$	562	$	45	$	45

LIHC Investments

The Company sponsors, manages and syndicates two LIHC 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.

102

Note 6—Variable Interest Entities (Continued)

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, 2020 and 2019. 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 2020, 2019, and 2018, the Company had noncash increases in unfunded commitments on LIHC investments of $79 million, $43 million and $87 million, respectively, included within other liabilities.

	December 31, 2020
	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	$	—	$	26	$	256	$	831	$	1,113	$	209	$	209	$	1,113
Renewable energy investments	—		—		—		1,215		1,215		—		—		1,235
Other investments	—		—		—		88		88		4		4		187
Total unconsolidated VIEs	$	—	$	26	$	256	$	2,134	$	2,416	$	213	$	213	$	2,535

	December 31, 2019
	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	$	—	$	27	$	219	$	872	$	1,118	$	148	$	148	$	1,118
Renewable energy investments	—		—		—		1,256		1,256		—		—		1,276
Other investments	—		—		13		69		82		4		4		163
Total unconsolidated VIEs	$	—	$	27	$	232	$	2,197	$	2,456	$	152	$	152	$	2,557

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

103

Note 6—Variable Interest Entities (Continued)

investments.

The following table presents the impact of the unconsolidated LIHC investments on our consolidated statements of income for the years ended December 31, 2020, 2019 and 2018:

	For the Years Ended December 31,
	2020		2019		2018
(Dollars in millions)
Losses from LIHC investments included in other noninterest expense	$	4	$	6	$	7
Amortization of LIHC investments included in income tax expense	124		130		136
Tax credits and other tax benefits from LIHC investments included in income tax expense	156		178		180

Renewable Energy Investments

Through its subsidiaries, the Company makes equity investments in LLCs established by third party sponsors 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.

Note 7—Deposits

The aggregate amount of time deposits that meet or exceed the FDIC insurance limit was $3.7 billion and $7.5 billion at December 31, 2020 and 2019, respectively.

At December 31, 2020, the Company had $7.4 billion in interest bearing time deposits. Maturity information for all interest bearing time deposits is summarized below.

(Dollars in millions)	December 31, 2020
Due in one year or less	$	6,677
Due after one year through two years	549
Due after two years through three years	83
Due after three years through four years	76
Due after four years through five years	34
Due after five years	—
Total	$	7,419

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

104

Note 8—Securities Financing Arrangements (Continued)

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, see Note 2 to these consolidated financial statements.

The following table presents 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, 2020 and December 31, 2019.

	December 31, 2020										December 31, 2019
(Dollars in millions)	Overnight and Continuous		Up to 30 Days		31 - 90 Days		Greater than 90 Days		Total		Overnight and Continuous		Up to 30 Days		31 - 90 Days		Greater than 90 Days		Total
Securities sold under agreements to repurchase:
U.S. Treasury and government agencies	$	—	$	14,642	$	296	$	—	$	14,938	$	12,219	$	2,237	$	385	$	102	$	14,943
Mortgage-backed:
U.S. agencies	—		8,069		5,465		—		13,534		5,322		1,582		7,126		—		14,030
Corporate debt	—		676		756		—		1,432		688		24		1,161		—		1,873
Other debt	—		401		377		—		778		327		—		533		—		860
Equity	—		1,377		1,067		—		2,444		1,400		349		456		—		2,205
Total	$	—	$	25,165	$	7,961	$	—	$	33,126	$	19,956	$	4,192	$	9,661	$	102	$	33,911
Securities loaned:
Corporate bonds	$	1	$	—	$	—	$	—	$	1	$	2	$	—	$	—	$	—	$	2
Other debt	11		—		241		—		252		—		—		—		—		—
Equity	366		243		—		—		609		257		236		—		—		493
Total	$	378	$	243	$	241	$	—	$	862	$	259	$	236	$	—	$	—	$	495

105

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, 2020 and December 31, 2019.

	December 31, 2020
							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	$	2,313	$	432	$	1,881	$	38	$	—	$	1,843
Securities borrowed or purchased under resale agreements	24,435		6,827		17,608		17,539		—		69
Total	$	26,748	$	7,259	$	19,489	$	17,577	$	—	$	1,912
Financial Liabilities:
Derivative liabilities	$	1,029	$	675	$	354	$	174	$	—	$	180
Securities loaned or sold under repurchase agreements	33,988		6,827		27,161		26,063		—		1,098
Total	$	35,017	$	7,502	$	27,515	$	26,237	$	—	$	1,278

	December 31, 2019
							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	$	1,233	$	264	$	969	$	26	$	—	$	943
Securities borrowed or purchased under resale agreements	29,483		5,540		23,943		23,844		—		99
Total	$	30,716	$	5,804	$	24,912	$	23,870	$	—	$	1,042
Financial Liabilities:
Derivative liabilities	$	523	$	306	$	217	$	129	$	1	$	87
Securities loaned or sold under repurchase agreements	34,406		5,540		28,866		27,957		—		909
Total	$	34,929	$	5,846	$	29,083	$	28,086	$	1	$	996

106

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, 2020		December 31, 2019
Debt issued by MUB
Commercial paper, with a weighted average interest rate of 0.16% and 1.98% at December 31, 2020 and December 31, 2019, respectively	$	23	$	58
Federal Home Loan Bank advances, with a weighted average interest rate of 1.86% at December 31, 2019	—		6,100
Total debt issued by MUB	23		6,158
Debt issued by other MUAH subsidiaries
Short-term debt due to MUFG Bank, Ltd., with weighted average interest rates of 0.60% and 2.27% at December 31, 2020 and December 31, 2019, respectively	9		69
Short-term debt due to affiliates, with weighted average interest rates of (-0.08)% and (-0.10)% at December 31, 2020 and December 31, 2019, respectively	78		257
Total debt issued by other MUAH subsidiaries	87		326
Total commercial paper and other short-term borrowings	$	110	$	6,484

At December 31, 2020, commercial paper outstanding had a weighted average remaining maturity of 129 days. The short-term debt due to MUFG Bank, Ltd. had a weighted average remaining maturity of 88 days and the short-term debt due to affiliates had a weighted average remaining maturity of 260 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 $1.6 billion equivalent). Under the terms of the facility, MUSA can choose to borrow in Japanese Yen or U.S. Dollars. Japanese Yen denominated borrowings include an 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, 2020, MUSA had JPY 8 billion (USD $77 million equivalent) drawn under this facility.

107

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, 2020		December 31, 2019
Debt issued by MUAH
Senior debt:
Fixed rate 3.50% notes due June 2022	$	399	$	399
Fixed rate 3.00% notes due February 2025	398		397
Senior debt due to MUFG Bank, Ltd:
Floating rate debt due December 2022. This note, which bore interest at 0.90% above 3-month LIBOR, had a rate of 3.03% at December 31, 2019	—		3,250
Floating rate debt due December 2022. This note, which bore interest at 0.97% above 3-month LIBOR, had a rate of 3.07% at December 31, 2019	—		125
Floating rate debt due December 2023. This note, which bears interest at 0.99% above 3-month LIBOR, had a rate of 1.23% at December 31, 2020 and 3.12% at December 31, 2019	1,625		1,625
Floating rate debt due December 2023. This note, which bears interest at 0.94% above 3-month LIBOR, had a rate of 1.15% at December 31, 2020 and 2.82% at December 31, 2019	1,765		1,765
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, 2020 and 0.76% at December 31, 2019	27		24
Floating rate debt due March 2024. This note, which bears interest at 0.76% above 3-month LIBOR, had a rate of 0.98% at December 31, 2020	775		—
Floating rate debt due June 2024. This note, which bears interest at 0.79% above 3-month LIBOR, had a rate of 1.00% at December 31, 2020	750		—
Floating rate debt due September 2024. This note, which bears interest at 0.82% above 3-month LIBOR, had a rate of 1.03% at December 31, 2020	750		—
Floating rate debt due December 2024. This note, which bears interest at 0.84% above 3-month LIBOR, had a rate of 1.06% at December 31, 2020	750		—
Junior subordinated debt payable to trusts:
Floating rate note due September 2036. This note had an interest rate of 1.92% at December 31, 2020 and 3.59% at December 31, 2019	37		37
Total debt issued by MUAH	7,276		7,622
Debt issued by MUB
Senior debt:
Fixed rate 2.10% notes due December 2022.	699		698
Floating rate debt due December 2022. These notes which bear interest at 0.71% above the Secured Overnight Financing Rate had a rate of 0.78% at December 31, 2020 and 2.26% at December 31, 2019	300		300
Floating rate debt due March 2022. This note, which bears interest at 0.60% above 3-month LIBOR, had a rate of 0.83% at December 31, 2020 and 2.49% at December 31, 2019	300		300
Variable rate FHLB of San Francisco advances due November 2020. These notes had a combined weighted average rate of 1.90% at December 31, 2019	—		1,100
Fixed rate 3.15% notes due April 2022	998		998
Fixed rate FHLB of San Francisco advances due between November 2021 and April 2025. These notes bear a combined weighted average rate of 2.76% at December 31, 2020 and 2.95% at December 31, 2019	4,575		5,500
Other	12		13
Total debt issued by MUB	6,884		8,909
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 bore interest above 3-month LIBOR had a weighted average interest rate of 1.94% at December 31, 2019	—		250
Various fixed rate borrowings due between January 2021 and September 2027 with a weighted average interest rate of 1.48% (between 1.23% and 2.44%) at December 31, 2020 and 2.22% (between 1.68% and 2.44%) at December 31, 2019	323		137
Non-recourse debt due to MUFG Bank, Ltd:
Various floating rate non-recourse borrowings due December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted average interest rate of 0.51% at December 31, 2020 and 2.17% at December 31, 2019	3		3
Fixed rate non-recourse borrowings due between March 2021 and July 2023 which had an interest rate of 3.15% (between 1.96% and 3.72%) at December 31, 2020 and 3.07% (between 1.96% and 3.72%) at December 31, 2019	119		166
Other non-recourse debt:
Various floating rate non-recourse borrowings due December 2023. These notes, which bore interest above 1- or 3-month LIBOR, had a weighted average interest rate of 3.93% at December 31, 2019	—		13
Fixed rate non-recourse borrowings due December 2026 which had an interest rate of 5.34% at December 31, 2020 and 5.34% December 31, 2019	26		29
Total debt issued by other MUAH subsidiaries	471		598
Total long-term debt	$	14,631	$	17,129

108

Note 10—Long-Term Debt (Continued)

A summary of maturities for the Company's long-term debt at December 31, 2020 is presented below.

(Dollars in millions)	Debt issued by MUAH		Debt issued by MUB		Debt issued by other MUAH subsidiaries		Total
2021	$	—	$	1,925	$	51	$	1,976
2022	399		2,796		38		3,233
2023	3,417		1,550		106		5,073
2024	3,025		—		—		3,025
2025	398		601		—		999
Thereafter	37		12		276		325
Total long-term debt	$	7,276	$	6,884	$	471	$	14,631

Senior Debt

Certain debt issuances are repayable prior to maturity at the Company’s option at a redemption price equal to 100% of par plus accrued interest, plus a make-whole premium. MUAH senior debt was issued under a shelf registration statement with the SEC, which expired as of January 29, 2018.

In December 2019, MUB issued $300 million of floating rate senior bank notes and $700 million of 2.10% senior bank notes. In March 2019, MUB issued $300 million of floating rate senior bank notes and $1.0 billion of 3.15% senior bank notes. These notes were issued as part of MUB's $12 billion bank note program under which MUB may issue, from time to time, senior and subordinated unsecured debt obligations. At December 31, 2020, there was $3.6 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. 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. As the TLAC long-term debt is repaid and refinanced from time to time, it is expected that such debt will be replaced by new TLAC long-term debt of similar terms. 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.

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, 2020,$323 million of senior debt issued to MUFG Bank, Ltd. 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, 2020 and December 31, 2019, the Bank had $34.7 billion and $45.3 billion of pledged loans, respectively, as collateral for short-term and medium-term advances from the FHLB and the Federal Reserve Bank.

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.

109

Note 10—Long-Term Debt (Continued)

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.

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.

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.

110

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

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. 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

111

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

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:

Loans Held for Investment:    A collateral-dependent individually assessed loan may be measured based on a loan's observable market price or the underlying collateral securing the loan, which approximates 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. These loans are reviewed and evaluated at least quarterly for additional impairment and adjusted accordingly. Loans that are adjusted to fair value based on underlying collateral or the loan's market price are classified as Level 3.

112

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, 2020 and 2019, by major category and by valuation hierarchy level.

	December 31, 2020															December 31, 2019
(Dollars in millions)	Level 1			Level 2			Level 3			Netting(1)			Fair Value			Level 1			Level 2			Level 3			Netting(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury and government agencies	$	—		$	3,118		$	—		$	—		$	3,118		$	—		$	2,393		$	—		$	—		$	2,393
Mortgage-backed:
U.S. agencies	—			8,936			—			—			8,936			—			5,376			—			—			5,376
Corporate debt	—			838			—			—			838			—			1,212			—			—			1,212
Other debt	—			354			—			—			354			—			306			—			—			306
Equity	925			—			—			—			925			127			—			—			—			127
Derivative contracts	20			2,277			1			(431)			1,867			16			1,195			8			(256)			963
Total trading account assets	945			15,523			1			(431)			16,038			143			10,482			8			(256)			10,377
Securities available for sale:
U.S. Treasury and government agencies	—			4,473			—			—			4,473			—			5,438			—			—			5,438
Mortgage-backed:
U.S. agencies	—			5,922			—			—			5,922			—			5,468			—			—			5,468
Residential - non-agency	—			539			—			—			539			—			762			—			—			762
Commercial - non-agency	—			4,473			16			—			4,489			—			3,471			18			—			3,489
Collateralized loan obligations	—			1,367			—			—			1,367			—			1,491			—			—			1,491
Direct bank purchase bonds	—			—			930			—			930			—			—			936			—			936
Other	—			11			528			—			539			—			28			177			—			205
Total securities available for sale	—			16,785			1,474			—			18,259			—			16,658			1,131			—			17,789
Other assets:
Mortgage servicing rights	—			—			110			—			110			—			—			270			—			270
Loans held for sale	—			—			43			—			43			—			—			42			—			42
Derivative contracts	—			2			13			(1)			14			—			10			4			(8)			6
Equity securities	20			—			—			—			20			10			—			—			—			10
Total other assets	20			2			166			(1)			187			10			10			316			(8)			328
Total assets	$	965		$	32,310		$	1,641		$	(432)		$	34,484		$	153		$	27,150		$	1,455		$	(264)		$	28,494
Percentage of total	3		%	93		%	5		%	(1)		%	100		%	1		%	95		%	5		%	(1)		%	100		%
Percentage of total Company assets	1		%	19		%	1		%	—		%	21		%	—		%	16		%	1		%	—		%	17		%
Liabilities
Trading account liabilities:
U.S. Treasury and government agencies	$	—		$	2,359		$	—		$	—		$	2,359		$	—		$	2,299		$	—		$	—		$	2,299
Corporate debt	—			483			—			—			483			—			646			—			—			646
Other debt	—			—			—			—			—			—			4			—			—			4
Equity	144			—			—			—			144			105			—			—			—			105
Derivatives contracts	58			962			1			(674)			347			11			499			8			(306)			212
Total trading account liabilities	202			3,804			1			(674)			3,333			116			3,448			8			(306)			3,266
Other liabilities:
FDIC clawback liability	—			—			—			—			—			—			—			121			—			121
Derivatives contracts	—			3			4			(1)			6			—			2			3			—			5
Total other liabilities	—			3			4			(1)			6			—			2			124			—			126
Total liabilities	$	202		$	3,807		$	5		$	(675)		$	3,339		$	116		$	3,450		$	132		$	(306)		$	3,392
Percentage of total	6		%	114		%	—		%	(20)		%	100		%	3		%	102		%	4		%	(9)		%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	—		%	3		%	—		%	2		%	—		%	—		%	2		%

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

113

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, 2020 and 2019. Level 3 securities available for sale at December 31, 2020 and 2019 largely consist of direct bank purchase bonds.

	For the Year Ended
	December 31, 2020										December 31, 2019
(Dollars in millions)	Trading Account Assets		Securities Available for Sale		Other Assets		Trading Account Liabilities		Other Liabilities		Trading Account Assets		Securities Available for Sale		Other Assets		Trading Account Liabilities		Other Liabilities
Asset (liability) balance, beginning of period	$	8	$	1,131	$	316	$	(8)	$	(124)	$	13	$	1,331	$	277	$	(13)	$	(118)
Total gains (losses) - (realized/unrealized):
Included in income before taxes	(2)		—		(166)		2		(2)		4		—		(88)		(4)		(6)
Included in other comprehensive income	—		13		—		—		—		—		31		—		—		—
Purchases/additions	—		382		16		—		—		—		57		396		—		—
Sales	—		—		—		—		—		—		—		(269)		—		—
Settlements	(5)		(52)		—		5		122		(9)		(288)		—		9		—
Asset (liability) balance, end of period	$	1	$	1,474	$	166	$	(1)	$	(4)	$	8	$	1,131	$	316	$	(8)	$	(124)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	(2)	$	—	$	(166)	$	2	$	(2)	$	4	$	—	$	(103)	$	(4)	$	(6)

The following table presents information about significant unobservable inputs related to the Company's significant Level 3 assets and liabilities at December 31, 2020.

	December 31, 2020
(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	$	930	Return on equity	Market-required return on capital	8.0-10.0	%	10.0	%
				Probability of default	0.0-8.0		0.4
				Loss severity	10.0-65.0		21.7
Other	$	528	Discounted cash flow	Discount rate	1.1-4.5		3.5
				Liquidity adjustment	0.8-3.2		2.4

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.

Other securities available for sale generally use a discounted cash flow valuation technique. This technique uses significant unobservable inputs such as discount rate and liquidity adjustment. Increases (decreases) in any of these inputs in isolation would result in a lower (higher) fair value measurement.

114

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, 2020 and 2019 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, 2020								For the Year Ended December 31, 2020
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans held for investment	$	187	$	—	$	—	$	187	$	(134)
Goodwill (1)	1,407		—		—		1,407		(357)
Other assets	89		—		—		89		(72)
Total	$	1,683	$	—	$	—	$	1,683	$	(563)

(1)For further information, see Note 5 to these consolidated financial statements.

	December 31, 2019								For the Year Ended December 31, 2019
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans held for investment	$	64	$	—	$	—	$	64	$	(20)
Goodwill (1)	1,764		—		—		1,764		(1,614)
Other assets	301		—		—		301		(36)
Total	$	2,129	$	—	$	—	$	2,129	$	(1,670)

(1)For further information, see Note 5 to these consolidated financial statements.

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.

115

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

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 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 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. The Company maintains an allowance for losses on unfunded credit commitments.

116

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, 2020 and 2019.

	December 31, 2020
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	16,414	$	16,414	$	16,414	$	—	$	—
Securities borrowed or purchased under resale agreements	17,608		17,607		—		17,607		—
Securities held to maturity	7,311		7,532		—		7,532		—
Loans held for investment (1)	79,873		81,528		—		—		81,528
Other assets	31		31		31		—		—
Liabilities
Time deposits	$	7,419	$	7,451	$	—	$	7,451	$	—
Securities loaned or sold under repurchase agreements	27,161		27,161		—		27,161		—
Commercial paper and other short-term borrowings	110		110		—		110		—
Long-term debt	14,631		14,973		—		14,973		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	40	$	313	$	—	$	—	$	313

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

	December 31, 2019
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	9,641	$	9,641	$	9,641	$	—	$	—
Securities borrowed or purchased under resale agreements	23,943		23,946		—		23,946		—
Securities held to maturity	9,421		9,508		—		9,508		—
Loans held for investment (1)	86,687		87,506		—		—		87,506
Other assets	54		54		54		—		—
Liabilities
Time deposits	$	15,651	$	15,691	$	—	$	15,691	$	—
Securities loaned or sold under repurchase agreements	28,866		28,866		—		28,866		—
Commercial paper and other short-term borrowings	6,484		6,484		—		6,484		—
Long-term debt	17,129		17,344		—		17,344		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	87	$	280	$	—	$	—	$	280

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

117

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 at December 31, 2020 and December 31, 2019. 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, 2020						December 31, 2019
			Fair Value						Fair Value
(Dollars in millions)	Notional Amount		Asset Derivatives		Liability Derivatives		Notional Amount		Asset Derivatives		Liability Derivatives
Derivative instruments
Cash flow hedges:
Interest rate contracts	$	9,509	$	—	$	1	$	13,319	$	—	$	—
Not designated as hedging instruments:
Trading:
Interest rate contracts	193,326		1,890		754		214,805		981		446
Commodity contracts	4		—		—		9		—		—
Foreign exchange contracts	14,189		392		215		11,219		230		64
Equity contracts	1,599		16		51		72		8		8
Other contracts	51		—		1		72		—		—
Total Trading	209,169		2,298		1,021		226,177		1,219		518
Other risk management	1,548		15		7		1,948		14		5
Total derivative instruments	$	220,226	$	2,313	$	1,029	$	241,444	$	1,233	$	523

We recognized net gains of $28 million, net gains of $2 million and net losses of $4 million on other risk management derivatives for the years ended December 31, 2020, 2019 and 2018, 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.

118

Note 12—Derivative Instruments and Other Financial Instruments Used For Hedging (Continued)

Cash Flow Hedges

From time to time, the Company uses interest rate derivatives to hedge the risk of changes in cash flows attributable to changes in the designated interest rate on LIBOR indexed loans, and to a lesser extent, to hedge interest rate risk on rollover debt.

The Company used interest rate derivatives with an aggregate notional amount of $9.5 billion at December 31, 2020 to hedge the risk of changes in cash flows attributable to changes in the designated interest rates from variable rate loans. The Company used interest rate derivatives with an aggregate notional amount of $9 million at December 31, 2020 to hedge the risk of changes in cash flows attributable to changes in the designated interest rate on LIBOR indexed short-term borrowings. At December 31, 2020, the weighted average remaining life of the active cash flow hedges was 2.7 years.

For cash flow hedges, changes in the fair value of 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. At December 31, 2020, the Company expects to reclassify approximately $106 million of income from AOCI as an increase to net interest income during the twelve months ending December 31, 2021. 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, 2020.

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, 2020, 2019 and 2018:

	Gains (Losses) Recognized in OCI							Gains (Losses) Reclassified from AOCI into Income							Gains (Losses) Recognized in Income (Ineffective Portion)
	For the Year Ended December 31,							For the Year Ended December 31,							For the Year Ended December 31,
(Dollars in millions)	2020		2019		2018		Location	2020		2019		2018		Location	2018
Derivatives in cash flow hedging relationships
							Interest income	$	34	$	(91)	$	(34)
Interest rate contracts	$	465	$	51	$	(96)	Interest expense	—		—		—		Noninterest expense	$	(1)
Total	$	465	$	51	$	(96)		$	34	$	(91)	$	(34)		$	(1)

Derivatives Not Designated as Hedging Instruments

Trading Derivatives

Derivative instruments classified as trading include derivatives entered into at MUAH's broker-dealer subsidiary, MUSA, and derivatives entered into as an accommodation for customers and for certain economic hedging activities at MUB. Trading derivatives are included in trading assets or trading liabilities with changes in fair value reflected in income from trading account activities.

119

Note 12—Derivative Instruments and Other Financial Instruments Used For Hedging (Continued)

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, 2020, 2019 and 2018:

	Gains (Losses) Recognized in Income on Trading Derivatives
	For the Years Ended
(Dollars in millions)	December 31, 2020		December 31, 2019		December 31, 2018
Trading derivatives
Interest rate contracts	$	(83)	$	(93)	$	95
Equity contracts	(23)		6		36
Foreign exchange contracts	61		51		44
Total	$	(45)	$	(36)	$	175

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 "Securities Financing Arrangements" to these consolidated financial statements.

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, 2020
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	465	$	(122)	$	343
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	431		(113)		318
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	763		(200)		563
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(144)		38		(106)
Amortization of net unrealized (gains) losses on held to maturity securities	38		(10)		28
Net change	657		(172)		485
Pension and other benefits:
Amortization of prior service credit(1)	(27)		7		(20)
Recognized net actuarial (gain) loss(1)	112		(29)		83
Pension and other benefits arising during the year	13		(4)		9
Net change	98		(26)		72
Net change in AOCI	$	1,186	$	(311)	$	875

(1)These amounts are included in the computation of net periodic pension cost. For additional information, see Note 15 to these consolidated financial statements.

120

Note 13—Accumulated Other Comprehensive Income (Continued)

(Dollars in millions)	Before Tax Amount		Tax Effect		Net of Tax
For the Year Ended December 31, 2019
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	51	$	(13)	$	38
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	91		(24)		67
Net change	142		(37)		105
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	385		(101)		284
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(39)		10		(29)
Amortization of net unrealized (gains) losses on held to maturity securities	33		(8)		25
Net change	379		(99)		280
Pension and other benefits:
Amortization of prior service credit (1)	(40)		11		(29)
Recognized net actuarial (gain) loss(1)	74		(20)		54
Pension and other benefits arising during the year	70		(19)		51
Net change	104		(28)		76
Other	1		—		1
Net change in AOCI	$	626	$	(164)	$	462

(1)These amounts are included in the computation of net periodic pension cost. For additional 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, 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 additional information, see Note 15 to these consolidated financial statements.

121

Note 13—Accumulated Other Comprehensive Income (Continued)

The following table presents the change in accumulated other comprehensive loss balances.

	Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Securities		Foreign Currency Translation Adjustment		Pension and Other Postretirement Benefits Adjustment		Other		Accumulated Other Comprehensive Income (Loss)
(Dollars in millions)
Balance, December 31, 2017	$	(174)	$	(233)	$	(19)	$	(600)	$	—	$	(1,026)
Other comprehensive income (loss) before reclassifications	(71)		(155)		(2)		(171)		(1)		(400)
Amounts reclassified from AOCI	25		15		—		41		—		81
Transfer to additional paid-in capital(1)	—		—		21		—		—		21
Balance, December 31, 2018	$	(220)	$	(373)	$	—	$	(730)	$	(1)	$	(1,324)
Other comprehensive income (loss) before reclassifications	38		284		—		51		1		374
Amounts reclassified from AOCI	67		(4)		—		25		—		88
Balance, December 31, 2019	$	(115)	$	(93)	$	—	$	(654)	$	—	$	(862)
Other comprehensive income (loss) before reclassifications	343		563		—		9		—		915
Amounts reclassified from AOCI	(25)		(78)		—		63		—		(40)
Balance, December 31, 2020	$	203	$	392	$	—	$	(582)	$	—	$	13

(1)Transfer of accumulated foreign currency translation to additional paid-in capital resulted from the transfer of the Company's investment in a Canadian entity to MUFG Bank, Ltd. during the first quarter of 2018.

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. For grants issued prior to June 2020, these awards generally vest pro-rata on each anniversary of the grant date and become fully vested 3 years from the grant date, provided that the employee has completed the specified continuous service requirement. Beginning with grants issued in June 2020, awards generally vest pro-rata one month before each anniversary of the grant date and become fully vested thirty-five months from the grant date. 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, 2020 was 3 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 each vesting date for the underlying restricted stock units.

122

Note 14—Management Stock Plans (Continued)

The following table is a rollforward of the restricted stock units under the MUAH Plan for the year ended December 31, 2020:

	Restricted Stock Units
	2020
	Number of Units	Weighted-Average Grant Date Fair Value
Units outstanding, beginning of year	37,653,686	5.16
Activity during the year:
Granted	26,949,460	4.04
Vested	(16,966,486)	5.46
Forfeited	(2,210,586)	4.64
Units outstanding, end of year	45,426,074	4.40

The weighted-average grant date fair value of restricted stock units granted during 2019 and 2018 was 4.67 and 5.89, respectively. The total fair value of restricted stock units that vested during the years ended December 31, 2020, 2019, and 2018 was $69 million, $70 million, and $78 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)	2020		2019		2018
Compensation costs	$	83	$	89	$	77
Tax benefit	22		23		20
Unrecognized compensation costs	129		129		110

At December 31, 2020, approximately $129 million (pretax) of compensation expense related to unvested grants had not yet been charged to net income. Unrecognized compensation costs as of December 31, 2020 are expected to be recognized over a weighted-average period of 1.35 years.

123

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 one year of service, and participants become vested upon completing three 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 benefits attributed to services to date, but also benefits 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, 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). Such annual allocations 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 collective investment funds and an insurance contract. 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, 2020 and 2019.

	Pension Plan				Other Benefits Plan
	Years Ended December 31,				Years Ended December 31,
(Dollars in millions)	2020		2019		2020		2019
Change in Plan Assets:
Fair value of plan assets, beginning of year	$	4,140	$	3,529	$	291	$	255
Actual return on plan assets	682		754		48		52
Plan participants' contributions	—		—		4		4
Benefits paid	(153)		(143)		(21)		(20)
Fair value of plan assets, end of year	$	4,669	$	4,140	$	322	$	291

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 targets 48% in equity securities, 40% in debt securities, and 12% in real estate investments as of December 31, 2020. The Other Benefits Plan asset allocation strategy favors equities with a target allocation of 63% in equity securities, 27% in debt securities and 10% in real estate investments as of December 31, 2020. 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 and

124

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

capital call arrangements. If market fluctuations or capital call arrangements cause an asset class to fall outside of its strategic asset allocation range, the portfolio is subject to re-balancing as designated in the applicable investment policy statement. 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 tables provide 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, 2020
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Pension Plan Investments:
Cash and cash equivalents	$	8	$	75	$	—	$	83
Collective investment funds	—		1,237		—		1,237
U.S. government securities	—		495		—		495
Fixed and variable income securities	—		985		—		985
Equity securities	334		7		—		341
Mutual funds	780		—		—		780
Municipal bonds	—		73		—		73
Other	(1)		25		—		24
Total investments in the fair value hierarchy	$	1,121	$	2,897	$	—	$	4,018
Investments measured at net asset value (1)							681
Investments at fair value							4,699
Accrued dividends and interest receivable							11
Net pending trades							(41)
Total plan assets							$	4,669

(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.

125

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

	December 31, 2019
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Pension Plan Investments:
Cash and cash equivalents	$	9	$	2	$	—	$	11
Collective investment funds	—		1,089		—		1,089
U.S. government securities	—		419		—		419
Fixed and variable income securities	—		882		—		882
Equity securities	246		6		—		252
Mutual funds	746		—		—		746
Municipal bonds	—		38		—		38
Other	(4)		17		—		13
Total investments in the fair value hierarchy	$	997	$	2,453	$	—	$	3,450
Investments measured at net asset value (1)							680
Investments at fair value							4,130
Accrued dividends and interest receivable							10
Net pending trades							—
Total plan assets							$	4,140

(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, 2020
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Other Postretirement Benefits Plan Investments:
Cash and cash equivalents	$	1	$	5	$	—	$	6
Collective investment funds	—		210		—		210
U.S. government securities	—		11		—		11
Fixed and variable income securities	—		22		—		22
Municipal bonds	—		1		—		1
Pooled separate account	—		63		—		63
Total investments in the fair value hierarchy	$	1	$	312	$	—	$	313
Investments measured at net asset value (1)							11
Investments at fair value							324
Net pending trades							(2)
Total plan assets							$	322

(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.

126

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

	December 31, 2019
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Other Postretirement Benefits Plan Investments:
Collective investment funds	$	—	$	103	$	—	$	103
U.S. government securities	—		45		—		45
Fixed and variable income securities	—		27		—		27
Mutual funds	65		—		—		65
Pooled separate account	—		53		—		53
Total investments in the fair value hierarchy	$	65	$	228	$	—	$	293
Investments measured at net asset value (1)							—
Investments at fair value							293
Net pending trades							(2)
Total plan assets							$	291

(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, 2020 and 2019 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, 2020
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Pension Plan Investments
Real estate funds	$	480	$	—	Quarterly	Availability of fund's liquid assets and approval of the board of directors	45-90 days
Real estate funds	4		2		None	Hold until dissolution date	None
International equity funds	197		—		Monthly	None	15 days
Total	$	681	$	2

	December 31, 2019
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Pension Plan Investments
Real estate funds	$	480	$	2	Quarterly	Availability of fund's liquid assets and approval of the board of directors	45-90 days
Real estate funds	5		—		None	Hold until dissolution date	None
International equity funds	195		—		Monthly	None	15 days
Total	$	680	$	2

127

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

	December 31, 2020
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Other Postretirement Benefits Plan Investments
Real estate funds	$	11	$	—	Quarterly	Availability of fund's liquid assets and approval of the board of directors	90 days
Total	$	11	$	—

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.

 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 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 are 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. These investments are 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.

128

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

Mutual Funds

Mutual funds invest in equity securities that may be benchmarked to the performance of market indexes including the MSCI EAFE® or MSCI All Country World ex US. These funds are valued using NAV at the end of the period and are classified as Level 1 based on unadjusted prices for identical instruments in active markets.

Collective Investment Funds and 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 a managed division that seeks to track the S&P 500 index.

Collective investment funds and the pooled separate account investment are reported within the fair value hierarchy as Level 2. These investments are redeemable at NAV, which is determined daily and is the readily determinable fair value. The price per share is quoted on a private market based on the value of the underlying investments.

The following table sets forth the benefit obligation activity and the funded status for each of the Company's plans at December 31, 2020 and 2019. In addition, the table sets forth the over (under) funded status at December 31, 2020 and 2019. This pension benefits table does not include the obligations for ESBPs.

	Pension Benefits				Other Postretirement Benefits
	Years Ended December 31,				Years Ended December 31,
(Dollars in millions)	2020		2019		2020		2019
Accumulated benefit obligation	$	3,944	$	3,521
Change in benefit obligation
Benefit obligation, beginning of year	$	3,536	$	3,047	$	251	$	242
Service cost	84		76		2		3
Interest cost	95		117		6		9
Plan participants' contributions	—		—		4		4
Actuarial loss/(gain)	408		439		15		14
Benefits paid	(153)		(143)		(21)		(21)
Benefit obligation, end of year	3,970		3,536		257		251
Fair value of plan assets, end of year	4,669		4,140		322		291
Over (Under) funded status	$	699	$	604	$	65	$	40

The Pension Plan obligation experienced a net loss of $408 million and a net loss of $439 million during 2020 and 2019, respectively, primarily due to changes in the discount rate. The discount rate decreased from 4.12% at December 31, 2018 to 3.08% at December 31, 2019 and decreased to 2.30% at December 31, 2020. The Other Benefits Plan obligation experienced a net loss of $15 million and a net loss of $14 million during 2020 and 2019, respectively, primarily due to changes in the discount rate. The discount rate decreased from 4.01% at December 31, 2018 to 2.93% at December 31, 2019 and decreased to 2.08% at December 31, 2020.

129

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

The following table illustrates the changes that were reflected in AOCI during 2020, 2019 and 2018. 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, 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)
Arising during the year	(59)		—		(22)		—
Recognized in net income during the year	(61)		26		(9)		14
Balance, December 31, 2019	$	916	$	(100)	$	33	$	—
Arising during the year	(9)		—		(13)		—
Recognized in net income during the year	(107)		27		—		—
Balance, December 31, 2020	$	800	$	(73)	$	20	$	—

At December 31, 2020 and 2019, the following amounts were recognized in accumulated other comprehensive loss for pension, including ESBPs, and other benefits.

	December 31, 2020
	Pension Benefits						Other Postretirement Benefits
(Dollars in millions)	Gross		Tax		Net of Tax		Gross		Tax		Net of Tax
Net actuarial loss	$	800	$	(210)	$	590	$	20	$	(5)	$	15
Prior service credit	(73)		19		(54)		—		—		—
Pension and other postretirement benefits	727		(191)		536		20		(5)		15
Executive Supplemental Benefits Plans
Net actuarial loss	42		(11)		31		—		—		—
Executive supplemental benefits plans adjustment	42		(11)		31		—		—		—
Pension and other postretirement benefits, as adjusted	$	769	$	(202)	$	567	$	20	$	(5)	$	15

	December 31, 2019
	Pension Benefits						Other Postretirement Benefits
(Dollars in millions)	Gross		Tax		Net of Tax		Gross		Tax		Net of Tax
Net actuarial loss	$	916	$	241	$	675	$	33	$	9	$	24
Prior service credit	(100)		(26)		(74)		—		—		—
Pension and other postretirement benefits	816		215		601		33		9		24
Executive Supplemental Benefits Plans
Net actuarial loss	39		10		29		—		—		—
Executive supplemental benefits plans adjustment	39		10		29		—		—		—
Pension and other postretirement benefits, as adjusted	$	855	$	225	$	630	$	33	$	9	$	24

Pension Benefits

Our pre-tax net actuarial losses decreased $89 million in 2020 from 2019. At December 31, 2020, the net actuarial loss totaled $727 million, which is net of $73 million in prior service credits. In addition, $505 million, representing the excess of the fair value of plan assets over the market-related value of plan assets, is

130

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

recognized separately through the asset smoothing method over four years. $888 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 2021 net periodic pension cost will be $120 million of amortization related to net actuarial losses. We estimate that our total 2021 net periodic pension cost will be a credit of approximately $21 million, assuming no contributions in 2021. The 2021 estimate for net periodic pension cost was actuarially determined using the individual spot rates of 2.35% for service cost and 1.73% for interest cost, an expected return on plan assets of 6.75% 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 2021 periodic pension cost by $28 million and $20 million, respectively, while a 50 basis point increase in the rate of future compensation levels would increase the 2021 periodic pension cost by $2 million. A 50 basis point decrease in the discount rate or in the expected return on plan assets would increase the 2021 periodic pension cost by $29 million and $20 million, respectively, while a 50 basis point decrease in the rate of future compensation levels would decrease the 2021 periodic pension cost by $2 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,
2021	$	163	$	17
2022	170		18
2023	179		18
2024	184		17
2025	190		17
Years 2026 - 2030	1,013		69

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,
	2020		2019		2020		2019
Discount rate in determining net periodic benefit cost
For service cost	3.16	%	4.19	%	3.04	%	4.11	%
For interest cost	2.72		3.90		2.52		3.79
Discount rate in determining benefit obligations at year end	2.30		3.08		2.08		2.93
Rate of increase in future compensation levels for determining net periodic benefit cost	5.10		5.10		n/a		n/a
Rate of increase in future compensation levels for determining benefit obligations at year end	5.10		5.10		n/a		n/a
Expected return on plan assets	7.00		7.00		7.00		7.00
Cash balance crediting rate for determining net periodic benefit cost	2.39		3.02		n/a		n/a
Cash balance crediting rate for determining benefit obligations at year end	1.62		2.39		n/a		n/a

131

Note 15—Employee Pension and Other Postretirement Benefits (Continued)

	Pension Benefits						Other Postretirement Benefits						ESBPs
	Years Ended December 31,						Years Ended December 31,						Years Ended December 31,
(Dollars in millions)	2020		2019		2018		2020		2019		2018		2020		2019		2018
Components of net periodic benefit cost:
Service cost	$	84	$	76	$	80	$	2	$	3	$	4	$	—	$	—	$	—
Interest cost	95		117		100		6		9		8		2		3		3
Expected return on plan assets	(265)		(257)		(268)		(20)		(17)		(21)		—		—		—
Amortization of prior service credit	(27)		(26)		(26)		—		(14)		(15)		—		—		—
Recognized net actuarial loss	107		61		87		—		9		5		5		4		3
Total net periodic benefit cost	$	(6)	$	(29)	$	(27)	$	(12)	$	(10)	$	(19)	$	7	$	7	$	6

The Company's assumed weighted-average healthcare cost trend rates are as follows.

	Years Ended December 31,
	2020		2019		2018
Healthcare cost trend rate assumed for next year	4.17	%	4.14	%	4.44	%
Rate to which cost trend rate is assumed to decline (the ultimate trend rate)	3.78	%	3.77	%	3.94	%
Year the rate reaches the ultimate trend rate	2028		2027		2027

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 $98 million and $94 million at December 31, 2020 and 2019, 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 $64 million, $61 million and $59 million for the years ended December 31, 2020, 2019 and 2018, respectively.

132

Note 16—Other Noninterest Income and Noninterest Expense

The detail of other noninterest income is as follows.

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Fund administration fees	$	112	$	94	$	100
Losses on renewable energy investments	(72)		(85)		(235)
Mortgage servicing activities	(123)		(44)		20
Other	247		248		230
Total other noninterest income	$	164	$	213	$	115

The detail of other noninterest expense is as follows.

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Fees to affiliates	$	94	$	94	$	115
Net periodic pension cost, excluding service cost	(97)		(112)		(124)
Other	389		440		418
Total other noninterest expense	$	386	$	422	$	409

Note 17—Income Taxes

The following table is an analysis of the effective tax rate:

	Years Ended December 31,
	2020		2019		2018
Federal income tax rate	21	%	21	%	21	%
Net tax effects of:
State income taxes, net of federal income tax benefit	(2)		(13)		7
Goodwill impairment	63		(45)		—
Tax-exempt interest income	(7)		2		(1)
Losses from LIHC investments	(13)		4		(2)
Amortization of LIHC investments	94		(20)		12
Tax credits	(189)		40		(25)
FDIC insurance premiums	6		(2)		1
Valuation allowance release	—		1		—
Effects of US tax law change	—		—		(2)
State tax refunds	—		—		(5)
Provision to return adjustment	15		1		(2)
Compensation - restricted stock units	4		(1)		—
Uncertain tax benefits	(6)		—		—
Other	1		—		1
Effective tax rate	(13)	%	(12)	%	5	%

133

Note 17—Income Taxes (Continued)

The components of income tax expense were as follows:

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Current income tax expense:
Federal	$	204	$	191	$	195
State	123		154		89
Foreign	1		1		10
Total current expense	328		346		294
Deferred income tax expense (benefit):
Federal	(247)		(202)		(173)
State	(98)		(61)		(64)
Foreign	(1)		(1)		(5)
Total deferred expense	(346)		(264)		(242)
Total income tax expense (benefit)	$	(18)	$	82	$	52

The components of the Company's net deferred tax balances as of December 31, 2020 and 2019 were as follows:

	December 31,
(Dollars in millions)	2020		2019
Deferred tax assets:
Tax credits and net operating loss carryforwards	$	468	$	499
Allowance for credit losses	532		312
Lease liability	198		—
Accrued expense, net	202		143
Unrealized losses on pension and postretirement benefits	207		233
Unrealized net (gains) losses on securities available for sale	—		32
Fair value adjustments for valuation of FDIC covered assets	30		40
Unrealized gains/losses on cash flow hedges	—		41
Capitalized loan cost	147		—
Other	9		30
Total deferred tax assets	1,793		1,330
Deferred tax liabilities:
Leasing and renewable energy	482		515
Intangible assets	14		17
Pension liabilities	374		373
Right of use	198		—
Unrealized net (gains) losses on securities available for sale	140		—
Unrealized gains/losses on cash flow hedges	72		—
Other	—		—
Total deferred tax liabilities	1,280		905
Net deferred tax asset (liability)	$	513	$	425

At December 31, 2020, the U.S. federal tax credit carryforwards were $411 million, and if not utilized, began to expire in 2035. The Company has $88 million of federal net operating loss carryforwards of which $72 million are subject to separate return loss limitation rules and if not utilized begin to expire in tax year 2032. The Company also has $17 million of acquired net operating losses subject to IRC Section 382 limitation rules for which $13 million were generated post-tax reform and can be carried forward indefinitely and $4 million if not utilized begin to expire in 2036. The Company has $50 million of apportioned gross state net operating loss carryforwards ($4 million tax effected net of federal benefit), and if not utilized begin to expire in 2034. The state tax credits carryforward net of federal benefit was $33 million and can be carried forward indefinitely. The Company's AMT Credit carryforward was $13 million which can be carried forward indefinitely and is also subject to rules under separate return limitation years. Additionally, as a result of the

134

Note 17—Income Taxes (Continued)

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.

Deferred tax assets are evaluated for realization based on the existence of sufficient taxable income of the appropriate character. Management determined it was more likely than not that such acquired deferred tax assets would be realized. 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)	2020		2019		2018
Balance, beginning of year	$	126	$	127	$	56
Gross increases as a result of tax positions taken during prior periods	2		1		72
Gross decreases as a result of tax positions taken during prior periods	(22)		—		—
Gross increases as a result of tax positions taken during current period	—		—		—
Gross decrease as a result of closed audit years or settlements	(1)		(2)		(1)
Balance, end of year	$	105	$	126	$	127

The amount of unrecognized tax positions that would affect the effective tax rate, if recognized, was $91 million, $99 million and $98 million at December 31, 2020, 2019 and 2018, respectively.

The Company recognizes interest and penalties as a component of income tax expense. As of December 31, 2020, we accrued $3 million in interest and $2 million in penalties. There are no tax positions the Company reasonably believes will be resolved within the next 12 months.

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, 2020, 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, 2020 and 2019, that the Company and the Bank met all capital adequacy requirements to which they are subject.

135

Note 18—Regulatory Capital Requirements (Continued)

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, 2020:
Common equity tier 1 capital (to risk-weighted assets)	$	15,823	15.28	%	≥	$	9,218	8.90	%
Tier 1 capital (to risk-weighted assets)	15,823		15.28		≥	10,772		10.40
Total capital (to risk-weighted assets)	16,871		16.29		≥	12,843		12.40
Tier 1 leverage(2)	15,823		9.56		≥	6,623		4.00
As of December 31, 2019:
Common equity tier 1 capital (to risk-weighted assets)	$	15,086	14.10	%	≥	$	7,492	7.00	%
Tier 1 capital (to risk-weighted assets)	15,086		14.10		≥	9,097		8.50
Total capital (to risk-weighted assets)	15,769		14.73		≥	11,237		10.50
Tier 1 leverage(2)	15,086		8.88		≥	6,792		4.00

(1)The minimum capital requirement includes MUAH's standardized capital conservation buffer of 4.4%.

(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, 2020 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	14,634	15.62	%	≥	$	6,557	7.00	%	≥	$	6,089	6.5	%
Tier 1 capital (to risk-weighted assets)	14,634		15.62		≥	7,963		8.50		≥	7,494		8.0
Total capital (to risk-weighted assets)	15,629		16.68		≥	9,836		10.50		≥	9,368		10.0
Tier 1 leverage(2)	14,634		11.12		≥	5,262		4.00		≥	6,577		5.0
As of December 31, 2019 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	14,115	14.47	%	≥	$	6,829	7.00	%	≥	$	6,342	6.5	%
Tier 1 capital (to risk-weighted assets)	14,115		14.47		≥	8,293		8.50		≥	7,805		8.0
Total capital (to risk-weighted assets)	14,746		15.11		≥	10,244		10.50		≥	9,756		10.0
Tier 1 leverage(2)	14,115		10.65		≥	5,304		4.00		≥	6,629		5.0

(1)Beginning January 1, 2019, the minimum capital requirement includes a capital conservation buffer of 2.5%.

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

136

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. Due to the impact of the COVID-19 pandemic and the corresponding economic environment, the Federal Reserve eliminated this reserve requirement at December 31, 2020, attempting to ease financial conditions. The required reserve balance was $116 million at December 31, 2019.

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, 2020, $39 million of notes payable and $6 million issued letters of credit on behalf of Bankers Commercial Corporation remained outstanding.

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, 2020, MUSA had $11 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.

Note 20—Commitments, Contingencies and Guarantees

The following table summarizes the Company's commitments:

(Dollars in millions)	December 31, 2020
Commitments to extend credit	$	39,421
Issued standby and commercial letters of credit	4,189
Commitments to enter into forward-starting resale agreements	2,187
Other commitments	1,831

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 remaining terms of 1 year or less. At December 31, 2020, 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.

137

Note 20—Commitments, Contingencies and Guarantees (Continued)

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 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.

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.

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 services 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.

138

Note 21—Related Party Transactions (Continued)

As of December 31, 2020 and December 31, 2019, assets and liabilities with affiliates consisted of the following:

(Dollars in millions)	December 31, 2020		December 31, 2019
Assets:
Cash and cash equivalents	$	231	$	282
Securities borrowed or purchased under resale agreements	4,070		2,415
Trading account assets	50		—
Other assets	152		109
Liabilities:
Deposits	$	726	$	894
Securities loaned or sold under repurchase agreements	551		318
Commercial paper and other short-term borrowings	87		326
Long-term debt	6,887		7,345
Trading account liabilities	17		—
Other liabilities	102		98

Revenues and expenses with affiliates for the years ended 2020, 2019, and 2018 were as follows:

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Interest Income
Securities borrowed or purchased under resale agreements	$	19	$	66	$	66
Other	1		2		2
Interest Expense
Deposits	3		13		3
Commercial paper and other short-term borrowings	5		3		2
Long-term debt	118		237		171
Securities loaned or sold under repurchase agreements	4		25		18
Noninterest Income
Trading account activities	(56)		34		—
Fees from affiliates	1,489		1,439		1,213
Other, net	32		(6)		1
Noninterest Expense
Other	97		96		115

During 2020, the Company sold loans to affiliates for gross proceeds of $1.5 billion, resulting in gains on sale of $3 million. During 2020, the Company purchased loans from affiliates for $56 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, 2020, the Company had $1.6 billion in uncommitted, unsecured borrowing facilities with affiliates.

At December 31, 2020 and December 31, 2019, the Company had derivative contracts with affiliates totaling $4.6 billion and $4.0 billion, respectively, in notional balances, with $14 million in net unrealized losses and $68 million in net unrealized gains at December 31, 2020 and December 31, 2019, 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, 2020 and December 31, 2019.

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Note 22—Business Segments

The Company has four reportable segments: Regional Bank, Global Corporate & Investment Banking - U.S. (previously 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. During the second quarter of 2020, certain customer relationships and associated deposits were transferred from Transaction Banking to Global Corporate & Investment Banking - U.S. Prior period results have been revised to conform to the current period presentation.

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, 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.

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 seven major business lines.

Consumer Banking serves consumers through 341 full-service branches, digital channels, call centers, ATMs and alliances with other financial institutions. It offers traditional banking products and services, including checking and other deposit accounts, residential mortgage loans, consumer loans, home equity lines of credit, credit cards, and bill and loan payment services.

Small Business serves small businesses with annual revenues up to $10 million through 341 full-service branches, digital channels, and call centers. Products and services include business and corporate deposit accounts, small business loans, branch direct loans, merchant services, and access to Wealth Markets and Consumer Banking.

Business Banking provides business and asset-based loans to clients across a wide range of industries with annual revenues from $10 million to $50 million. Products and services include checking and other deposit accounts, small business administration loans, and owner-occupied real estate loans. By working with the Company’s other segments, Business Banking clients also have access to global treasury management and capital markets solutions, trade finance, and foreign exchange, interest rate, and commodity risk management products, and Wealth Markets.

Commercial Banking provides commercial and asset-based loans to clients across a wide range of industries with annual revenues from $50 million to $2 billion. By working with the Company's other segments in a strategic and coordinated approach, Commercial Banking clients can engage in a fully integrated platform of products and services, including global treasury management, investment banking, corporate capital markets and advisory services, foreign exchange, interest rate, and commodity risk management products, and Wealth Markets.

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Note 22—Business Segments (Continued)

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 also offers its clients global treasury management and capital markets solutions and foreign exchange, interest rate, and commodity risk management products.

Wealth Markets serves corporate, institutional, non-profit, and high-net worth and affluent individual clients. Capabilities include Wealth Planning and Trust & Estate Services; Investment Management through the Bank and 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 is a national online direct bank deposit platform offering consumer savings accounts and CD products with services provided through the online platform and a call center.

Global Corporate & Investment Banking - U.S.

Global Corporate & Investment Banking - U.S. 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). Global Corporate & Investment Banking - U.S. provides customers general corporate credit and structured credit services, including project finance, leasing and equipment finance, funds finance and asset-based finance. By working with the Company's other segments, Global Corporate & Investment Banking - U.S. 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, domestic and foreign debt and equity securities transactions, private placements, collateralized financings, and securities borrowing and lending 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 information regarding

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Note 22—Business Segments (Continued)

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 goodwill impairments recorded in the third quarters of 2020 and 2019; the elimination of the fully taxable-equivalent basis amount; and the difference between the marginal tax rate and the consolidated effective tax rate.

As of and for the Twelve Months Ended December 31, 2020:

(Dollars in millions)	Regional Bank		Global Corporate & Investment Banking - U.S.		Transaction Banking		MUSA		Other (1)		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,096	$	445	$	190	$	315	$	31	$	3,077
Noninterest income	470		461		36		437		1,501		2,905
Total revenue	2,566		906		226		752		1,532		5,982
Noninterest expense	2,039		509		173		524		1,776		5,021
(Reversal of) provision for credit losses	760		68		1		—		—		829
Income (loss) before income taxes and including noncontrolling interests	(233)		329		52		228		(244)		132
Income tax expense (benefit) (2)	(63)		27		10		56		(48)		(18)
Net income (loss) including noncontrolling interest	(170)		302		42		172		(196)		150
Deduct: net loss from noncontrolling interests	—		—		—		—		16		16
Net income (loss) attributable to MUAH	$	(170)	$	302	$	42	$	172	$	(180)	$	166
Total assets, end of period	$	65,940	$	23,260	$	182	$	32,714	$	45,750	$	167,846

(1)Other includes goodwill impairment. See Note 5 to these consolidated financial statements.

(2)Income tax expense (benefit) includes certain management accounting classification adjustments.

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Note 22—Business Segments (Continued)

As of and for the Twelve Months Ended December 31, 2019:

(Dollars in millions)	Regional Bank		Global Corporate & Investment Banking - U.S.		Transaction Banking		MUSA		Other (1)		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,294	$	482	$	197	$	167	$	(47)	$	3,093
Noninterest income	520		371		39		384		1,391		2,705
Total revenue	2,814		853		236		551		1,344		5,798
Noninterest expense	2,130		505		188		476		2,916		6,215
(Reversal of) provision for credit losses	209		51		(2)		—		(6)		252
Income (loss) before income taxes and including noncontrolling interests	475		297		50		75		(1,566)		(669)
Income tax expense (benefit) (1)	93		19		19		18		(67)		82
Net income (loss) including noncontrolling interest	382		278		31		57		(1,499)		(751)
Deduct: net loss from noncontrolling interests	—		—		—		—		17		17
Net income (loss) attributable to MUAH	$	382	$	278	$	31	$	57	$	(1,482)	$	(734)
Total assets, end of period	$	74,980	$	20,681	$	756	$	34,455	$	39,938	$	170,810

(1)Other includes goodwill impairment. See Note 5 to these consolidated financial statements.

(2)Income tax expense (benefit) includes certain management accounting classification adjustments.

As of and for the Twelve Months Ended December 31, 2018:

(Dollars in millions)	Regional Bank		Global Corporate & Investment Banking - U.S.		Transaction Banking		MUSA		Other		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,195	$	471	$	207	$	200	$	234	$	3,307
Noninterest income	451		392		40		300		994		2,177
Total revenue	2,646		863		247		500		1,228		5,484
Noninterest expense	2,058		463		206		443		1,107		4,277
(Reversal of) provision for credit losses	65		48		(8)		—		1		106
Income (loss) before income taxes and including noncontrolling interests	523		352		49		57		120		1,101
Income tax expense (benefit) (1)	105		128		13		17		(211)		52
Net income (loss) including noncontrolling interest	418		224		36		40		331		1,049
Deduct: net loss from noncontrolling interests	—		—		—		—		24		24
Net income (loss) attributable to MUAH	$	418	$	224	$	36	$	40	$	355	$	1,073
Total assets, end of period	$	73,554	$	20,796	$	631	$	33,844	$	39,275	$	168,100

(1)Income tax expense (benefit) includes certain management accounting classification adjustments.

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Note 23—Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company)

Condensed Balance Sheets

	December 31,
(Dollars in millions)	2020		2019
Assets
Cash and cash equivalents	$	583	$	840
Investments in and advances to subsidiaries
Bank subsidiary	18,731		18,103
Nonbank subsidiaries	5,011		4,770
Other assets	350		407
Total assets	$	24,675	$	24,120
Liabilities and Stockholders' Equity
Long-term debt	$	7,276	$	7,622
Other liabilities	210		218
Total liabilities	7,486		7,840
Stockholders' equity	17,189		16,280
Total liabilities and stockholders' equity	$	24,675	$	24,120

Condensed Statements of Income

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Income:
Dividends from subsidiaries:
Bank subsidiary	$	—	$	—	$	1,700
Nonbank subsidiaries	66		616		95
Interest income on advances to subsidiaries and deposits in bank	92		161		137
Rental Income	15		15		15
Total income	173		792		1,947
Expense:
Interest expense	141		251		194
Other expense	31		29		17
Total expense	172		280		211
Income (loss) before income taxes and equity in undistributed net income of subsidiaries	1		512		1,736
Income tax benefit	(18)		(24)		(13)
Income (loss) before equity in undistributed net income of subsidiaries	19		536		1,749
Equity in undistributed net income of subsidiaries less dividends received:
Bank subsidiary	(38)		(746)		(697)
Nonbank subsidiaries	185		(524)		21
Net Income (Loss)	$	166	$	(734)	$	1,073

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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)	2020		2019		2018
Cash Flows from Operating Activities:
Net income	$	166	$	(734)	$	1,073
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed net income of subsidiaries less dividends received	(147)		1,270		676
Other, net	58		(743)		(9)
Net cash provided by (used in) operating activities	77		(207)		1,740
Cash Flows from Investing Activities:
Investments in and advances to subsidiaries	(564)		(1,585)		(2,612)
Repayment of investments in and advances to subsidiaries	584		1,634		2,411
Net cash used in investing activities	20		49		(201)
Cash Flows from Financing Activities:
Proceeds from advances from subsidiaries	—		—		—
Repayment of advances from subsidiaries	—		—		—
Proceeds from issuance of long-term debt	3,025		1,890		6,500
Repayment of long-term debt	(3,379)		(1,631)		(6,145)
Dividends paid	—		—		—
Share repurchase	—		—		(2,496)
Net cash provided by (used in) financing activities	(354)		259		(2,141)
Net increase (decrease) in cash and cash equivalents	(257)		101		(602)
Cash and cash equivalents at beginning of year	840		739		1,341
Cash and cash equivalents at end of year	$	583	$	840	$	739

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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, 2020. 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, 2020.

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.

146

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, 2020 and 2019, 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, 2020, 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, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, 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, 2020, 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 March 2, 2021, expressed an unqualified opinion on the Company's internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 1 to the consolidated financial statements, the Company has changed its method of accounting for credit losses as of January 1, 2020 due to the adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments.

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 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 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 provides a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Allowance for Credit Losses — Refer to Notes 1 and 3 to the financial statements.

Critical Audit Matter Description

The Company maintains an allowance for credit losses to absorb expected losses on the loan portfolio as well as for unfunded credit commitments. Accordingly, the Company’s methodology for estimating the allowance balance uses relevant available information, relating to past events, current conditions, and

147

reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of the expected credit losses. Adjustments to historical loss information are made over a forecast period to account for differences between current and expected future conditions and those reflected in historical loss information. The forecast period was shortened from 36 months to 24 months in the first quarter of 2020. Beyond the forecast period, estimated expected credit losses revert to historical loss experience.

The collective evaluation for the commercial and consumer portfolio segments is calculated using historical loss information and economic assumptions to estimate the probability of default, an estimate of the severity of the loss that would be realized upon such default, and the exposure at default. The losses are projected over the loans’ remaining contractual lives. Management also implemented qualitative adjustments to adjust the collective assessment to account for risks attributed to imprecision in the economic forecast.

Estimating losses was particularly challenging due to the heightened volatility and uncertainty in the economy from the emergence of Coronavirus Disease 2019 (“COVID-19”). Management adjusted expected loss model calculations by incorporating qualitatively determined model input adjustments and overlays that reflect management’s expectations of the loss mitigating impact of monetary and fiscal stimulus policies and loan modification programs as a result of COVID-19 that are not otherwise incorporated into the modeling methodology.

Given the significance of the estimate, the subjective nature of the judgment applied by management under the CECL model, and the complexity of the models, auditing the collectively-assessed allowance involved a high degree of auditor judgment and an increased extent of audit effort, including the need to involve our credit specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the collectively-assessed allowance included the following, among others:

• We evaluated the design and tested the effectiveness of controls over the Company’s collectively-assessed allowance, including controls addressing the reasonable and supportable economic forecasts, periodic model validation and change management of the models, the qualitatively determined model input adjustments and overlays implemented as a result of COVID-19, inputs incorporated into the models, such as loan risk ratings and borrower data, the qualitative adjustment used to account for imprecision in the economic forecast, and the calculation of the allowance for loan losses.

• We used our credit specialists to assist us in evaluating the appropriateness and the conceptual soundness of the loss estimation models.

• With the assistance of our credit specialists, we have evaluated the reasonableness of management’s key methodologies, assumptions and judgments, including the model framework and model techniques. We have also evaluated the appropriateness of the length of the reasonable and supportable forecast period, and the use of qualitatively determined model input adjustments and overlays implemented as a result of COVID-19 that are not incorporated into the modeling methodology.

• We evaluated the significant forecasted macroeconomic assumptions, such as GDP and unemployment, by comparing to macroeconomic forecasts from external sources.

• We evaluated whether loans are pooled for segmentation by similar risk characteristics and the accuracy of relevant available information by assessing the inputs incorporated into the models, such as probability of default and loss given default loan risk ratings and borrower data.

• In order to identify potential bias in the determination of the collectively-assessed allowance, we analyzed ratios of the allowance to loans and other relevant metrics, such as losses and nonperforming loans to assess for sufficiency of the estimate, and compared actual loan losses to those amounts previously estimated by the Company.

Goodwill — Refer to Notes 1 and 5 to the financial statements.

Critical Audit Matter Description

The goodwill balance is $1,407 million as of December 31, 2020, which is allocated among various reporting units. The Company reviews for impairment at least annually, and whenever events or changes in

148

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 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, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value.

The Company determines the fair value of its reporting units using a combination of the income and the market approaches. The income approach estimates the fair value of the reporting units by discounting management’s projections of each reporting unit’s cash flows, including a terminal value to estimate the fair value of cash flows beyond the final year of projected results. The principal factors used in the discounted cash flow analysis requiring judgment are the projected future operating cash flows based on forecasted future income. The market approach incorporates comparable public company price to tangible book value and price to earnings multiples.

During fiscal year 2020, the Company performed the required impairment tests of goodwill and recorded an impairment charge of $357 million.

We identified goodwill as a critical audit matter because of the significant estimates and assumptions management makes to estimate the fair value of the Commercial Banking and Real Estate Industries and Global Corporate & Investment Banking – U.S. reporting units. Auditing the fair value of these reporting units involved a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists, as it relates to evaluating whether management’s judgments in determining whether the projected future operating cash flows based on forecasted future income were appropriate.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the projected future operating cash flows based on forecasted future income for the Commercial Banking and Real Estate Industries and Global Corporate & Investment Banking – U.S. reporting units included the following, among others:

• We evaluated the design and tested the effectiveness of controls over the goodwill valuation assessment and overall approval of impairment assessment calculations, including controls over the projected future operating cash flows, valuation methodology and valuation assumptions.

• We evaluated the reasonableness of management’s projected future operating cash flows based on forecasted future income by inquiring of management, performing a retrospective review, and inspecting financial trends and metrics.

• We considered the impact of changes in macroeconomic factors and Company-specific factors on management’s forecasts.

• With the assistance of our fair value specialists, we evaluated the reasonableness of management’s assumptions, inputs and projected future operating cash flows used to estimate the fair value for the Commercial Banking and Real Estate Industries and Global Corporate & Investment Banking – U.S. reporting units.

/s/ DELOITTE & TOUCHE LLP

New York, New York

March 2, 2021

We have served as the Company's auditor since 1996.

149

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, 2020, 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, 2020, 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, 2020, of the Company and our report dated March 2, 2021 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

March 2, 2021

150

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	Third 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 3.000% Senior Notes due 2025 (6)
4.6	Form of 3.000% Senior Notes due 2025 (included as Exhibit C to Exhibit 4.5)
4.7	Description of the Registrant's Common Stock (8)
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 (9)
24.2	Resolution of Board of Directors (9)
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 (9)
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 (9)
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 (9)
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 (9)
101	The following materials from the Company's Annual Report on Form 10-K for the year ended December 31, 2020, formatted in Inline XBRL: (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 (9)
104	The cover page from the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, formatted in Inline XBRL (included in Exhibit 101) (9)

(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)Incorporated by reference to Exhibit 4.7 to the Company's Annual Report on Form 10-K dated February 26, 2020.

(9)Filed herewith.

151

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:	March 2, 2021

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/ CHRISTOFFER ESCHER	Controller and Chief Accounting Officer
Christoffer Escher	(Principal Accounting Officer)
*
Roberta A. Bienfait	Director
*
John R. Elmore	Director
*
Michael D. Fraizer	Director
*
Ann F. Jaedicke	Director
*
Suneel Kamlani	Director
*
Kazuo Koshi	Director
*
Masahiro Kuwahara	Director
*
Hiroshi Masaki	Director
*
Toby S. Myerson	Director
*
Barbara L. Rambo	Director
*
Kazuto Uchida	Director
*
Dean A. Yoost	Director

*By:	/s/ MICHAEL F. COYNE
	Michael F. Coyne Attorney-in-Fact

Dated: March 2, 2021

152

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, Christoffer Escher 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, 2020, 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 25, 2021
	Name:  Stephen E. Cummings
	Title:     President and Chief Executive Officer

Signature	Title	Date
/s/ ROBERTA A. BIENFAIT	Director	February 23, 2021
Roberta A. Bienfait
/s/ STEPHEN E. CUMMINGS	Director	February 25, 2021
Stephen E. Cummings
/s/ JOHN R. ELMORE	Director	February 23, 2021
John R. Elmore
/s/ MICHAEL D. FRAIZER	Director	February 23, 2021
Michael D. Fraizer
/s/ ANN F. JAEDICKE	Director	February 24, 2021
Ann F. Jaedicke
/s/ SUNEEL KAMLANI	Director	February 24, 2021
Suneel Kamlani
/s/ KAZUO KOSHI	Director	February 23, 2021
Kazuo Koshi

Signature	Title	Date
/s/ MASAHIRO KUWAHARA	Director	February 25, 2021
Masahiro Kuwahara
/s/ HIROSHI MASAKI	Director	February 25, 2021
Hiroshi Masaki
/s/ TOBY S. MYERSON	Director	February 25, 2021
Toby S. Myerson
/s/ BARBARA L. RAMBO	Director	February 24, 2021
Barbara L. Rambo
/s/ KAZUTO UCHIDA	Director	February 24, 2021
Kazuto Uchida
/s/ DEAN A. YOOST	Director	February 23, 2021
Dean A. Yoost

EX-24.2

Exhibit 24.2

MUFG Americas Holdings Corporation
March 1, 2021

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, 2020; 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, 2020, 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, 2020, 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, Christoffer Escher 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 March 1, 2021.

    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: March 1, 2021

/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: March 2, 2021

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: March 2, 2021

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, 2020 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: March 2, 2021

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, 2020 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: March 2, 2021

By:	/s/ JOHANNES WORSOE
	Johannes Worsoe Chief Financial Officer

XML

Cover Page - shares	12 Months Ended
	Dec. 31, 2020	Jan. 31, 2021
Document And Entity Information
Entity Registrant Name	MUFG Americas Holdings Corporation
Entity Central Index Key	0001011659
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
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 Common Stock, Shares Outstanding		132,076,912
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Interactive Data Current	Yes
Document Annual Report	true
City Area Code	10020
Local Phone Number	782-5911
Entity Address, Address Line One	1251 Avenue of the Americas
Entity Address, State or Province	DE
Entity Tax Identification Number	94-1234979
Entity Address, State or Province	NY
Entity Address, Address Line One	New York
Title of 12(b) Security	None
City Area Code	(212)
Entity File Number	1-15081

XML

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Interest Income
Loans	$ 2,975	$ 3,625	$ 3,303
Securities	470	619	665
Securities borrowed or purchased under resale agreements	190	765	652
Trading assets	358	360	415
Other	59	180	90
Total interest income	4,052	5,549	5,125
Interest Expense
Deposits	363	826	441
Commercial paper and other short-term borrowings	44	202	168
Long-term debt	349	497	365
Securities loaned or sold under repurchase agreements	155	830	734
Trading liabilities	64	101	110
Total interest expense	975	2,456	1,818
Net Interest Income	3,077	3,093	3,307
Provision for credit losses	829	252	106
Net interest income after provision for credit losses	2,248	2,841	3,201
Noninterest Income
Service charges on deposit accounts	147	166	179
Trust and investment management fees	118	117	118
Trading account activities	38	70	(24)
Securities gains, net	144	39	8
Credit facility fees	107	98	90
Brokerage commissions and fees	69	74	73
Card processing fees, net	51	56	50
Investment banking and syndication fees	578	433	355
Fees from affiliates	1,489	1,439	1,213
Other, net	164	213	115
Total noninterest income	2,905	2,705	2,177
Noninterest Expense
Salaries and employee benefits	2,751	2,687	2,616
Net occupancy and equipment	436	431	367
Professional and outside services	680	651	487
Software	343	313	287
Regulatory assessments	48	63	85
Intangible asset amortization	20	34	26
Goodwill, Impairment Loss	357	1,614	0
Other	386	422	409
Total noninterest expense	5,021	6,215	4,277
Income before income taxes and including noncontrolling interests	132	(669)	1,101
Income tax expense (benefit)	(18)	82	52
Net (Loss) Income Including Noncontrolling Interests	150	(751)	1,049
Deduct: Net loss (income) from noncontrolling interests	16	17	24
Net (Loss) Income Attributable to MUAH	$ 166	$ (734)	$ 1,073

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net (Loss) Income Attributable to MUAH	$ 166	$ (734)	$ 1,073
Other Comprehensive Income (Loss), Net of Tax:
Net change in unrealized gains (losses) on cash flow hedges	318	105	(46)
Net change in unrealized gains (losses) on investment securities	485	280	(140)
Foreign currency translation adjustment	0	0	(2)
Pension and other postretirement benefit adjustments	72	76	(130)
Other Comprehensive Income Other, Net of Tax, Portion Attributable to Parent	0	1	(1)
Total other comprehensive income (loss)	875	462	(319)
Comprehensive Income (Loss) Attributable to MUAH	1,041	(272)	754
Comprehensive income (loss) from noncontrolling interests	(16)	(17)	(24)
Total Comprehensive Income (Loss)	$ 1,025	$ (289)	$ 730

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, 2017	$ 18,355	$ 148	$ 8,197	$ 10,936	$ (1,026)	$ 100
Net (Loss) 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
Net (Loss) Income Including Noncontrolling Interests	(751)			(734)		(17)
Other comprehensive income (loss), net of tax	462				462
Compensation—restricted stock units	19		26	(7)
Other	57	0	20	5	0	32
Net change	(213)	0	46	(736)	462	15
Ending balance at Dec. 31, 2019	16,367	132	8,222	8,788	(862)	87
Net (Loss) Income Including Noncontrolling Interests	150			166		(16)
Other comprehensive income (loss), net of tax	875				875
Compensation—restricted stock units	11		20	(9)
Other	23	0	0	4	0	19
Net change	912	0	20	14	875	3
Ending balance at Dec. 31, 2020	17,279	$ 132	$ 8,242	8,802	$ 13	$ 90
Cumulative Effect of New Accounting Principle in Period of Adoption	$ (147)			$ (147)

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash Flows from Operating Activities:
Net (loss) income including noncontrolling interests	$ 150	$ (751)	$ 1,049
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Provision for credit losses	829	252	106
Depreciation, amortization and accretion, net	597	563	411
Stock-based compensation—restricted stock units	83	89	77
Deferred income taxes	(346)	(264)	(242)
Net gains on sales of securities	(144)	(39)	(8)
Net decrease (increase) in securities borrowed or purchased under resale agreements	6,335	(1,575)	(1,474)
Net decrease (increase) in securities loaned or sold under repurchase agreements	(1,705)	1,581	848
Net decrease (increase) in trading account assets	(5,661)	836	(646)
Net decrease (increase) in other assets	922	216	170
Net increase (decrease) in trading account liabilities	67	(761)	427
Net increase (decrease) in other liabilities	38	219	103
Loans originated for sale	(5,664)	(3,238)	(2,339)
Net proceeds from sale of loans originated for sale	5,164	2,944	1,626
Pension and other benefits adjustment	(22)	(42)	(50)
Goodwill, Impairment Loss	357	1,614	0
Other, net	(7)	59	(18)
Total adjustments	843	2,454	(1,009)
Net cash provided by (used in) operating activities	993	1,703	40
Cash Flows from Investing Activities:
Proceeds from sales of securities available for sale	4,342	4,637	1,505
Proceeds from paydowns and maturities of securities available for sale	2,491	2,566	2,822
Purchases of securities available for sale	(6,441)	(7,839)	(5,643)
Proceeds from paydowns and maturities of securities held to maturity	3,948	4,454	1,682
Purchases of securities held to maturity	(1,847)	(3,153)	(772)
Proceeds from sales of loans	472	952	770
Net decrease (increase) in loans	5,734	(2,831)	(6,785)
Purchases of other investments	(214)	(143)	(262)
Other, net	(374)	(314)	(57)
Net cash provided by (used in) investing activities	8,111	(1,671)	(6,740)
Cash Flows from Financing Activities:
Net increase (decrease) in deposits	6,565	4,880	6,184
Net increase (decrease) in commercial paper and other short-term borrowings	(6,376)	(2,778)	2,198
Proceeds from issuance of long-term debt	3,663	5,698	15,458
Repayment of long-term debt	(6,166)	(6,471)	(9,655)
Proceeds from (Repurchase of) Equity	0	0	(2,496)
Other, net	(59)	(96)	(115)
Change in noncontrolling interests	19	32	(4)
Net cash provided by (used in) financing activities	(2,354)	1,265	11,570
Net change in cash, cash equivalents and restricted cash	6,750	1,297	4,870
Cash, cash equivalents and restricted cash at beginning of period	9,695	8,398	3,528
Cash, cash equivalents and restricted cash at end of period	16,445	9,695	8,398
Cash Paid During the Period For:
Interest	1,061	2,417	1,761
Income taxes, net	230	202	116
Supplemental Schedule of Noncash Investing and Financing Activities:
Net transfer of loans held for investment to (from) loans held for sale	228	718	44
Transfer Of Available For Sale To Held-To-Maturity Securities	0	0	2,006
Reconciliation of Cash, Cash Equivalents and Restricted Cash:
Cash and cash equivalents	9,641	8,350
Total cash, cash equivalents and restricted cash per consolidated statement of cash flows	$ 9,695	$ 8,398	$ 8,398

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Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 2,105	$ 2,457
Interest bearing deposits in banks	14,309	7,184
Total cash and cash equivalents	16,414	9,641	$ 8,350
Securities borrowed or purchased under resale agreements	17,608	23,943
Trading account assets (includes $3,246 at December 31, 2020 and $887 at December 31, 2019 pledged as collateral that may be repledged)	16,038	10,377
Securities held to maturity (fair value $7,532 at December 31, 2020 and $9,508 at December 31, 2019)	7,311	9,421
Loans held for investment	82,166	88,213
Allowance for loan losses	(1,273)	(538)	(474)
Loans held for investment, net	80,893	87,675
Premises and equipment, net	650	656
Goodwill	1,407	1,764	3,301
Other assets	9,916	10,200
Total assets	167,846	170,810	168,100
Deposits:
Noninterest bearing	40,130	31,521
Interest bearing	62,296	64,340
Total deposits	102,426	95,861
Securities Sold under Agreements to Repurchase and Securities Loaned	27,161	28,866
Commercial paper and other short-term borrowings	110	6,484
Long-term debt	14,631	17,129
Trading account liabilities	3,333	3,266
Other liabilities	2,906	2,837
Total liabilities	150,567	154,443
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, 132,076,912 shares issued and outstanding at December 31, 2020 and December 31, 2019	132	132
Additional paid-in capital	8,242	8,222
Retained earnings	8,802	8,788
Accumulated other comprehensive loss	13	(862)
Total MUAH stockholders' equity	17,189	16,280
Noncontrolling interests	90	87
Total equity	17,279	16,367	$ 16,580	$ 18,355
Total liabilities and equity	167,846	170,810
Other Subsidiaries, Excluding MUFG Bank, NA [Member]
Deposits:
Long-term debt	471	$ 598
Notes Receivable [Member] | Consumer | Residential mortgage
Assets
Loans held for investment	27,000
Notes Receivable [Member] | Commercial | Commercial mortgage
Assets
Loans held for investment	17,000
Financial and Insurance [Member] | Notes Receivable [Member] | Commercial
Assets
Loans held for investment	10,000
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

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ / shares in Units, $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Trading account assets pledged as collateral	$ 3,246	$ 887
Securities available-for-sale pledged as collateral	189	142
Fair value of securities held to maturity	$ 7,532	$ 9,508
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)	$ 1.00	$ 1.00
Common stock, share authorized (in shares)	1,700,000,000	300,000,000
Common stock, share issued (in shares)	132,076,912	132,076,912
Common stock, share outstanding (in shares)	132,076,912	132,076,912

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Summary of Significant Accounting Policies and Nature of Operations

12 Months Ended

Dec. 31, 2020

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).

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 "Loans and Allowance for Loan Losses"), goodwill impairment (Note 5 "Goodwill and Other Intangible Assets"), income taxes (Note 17 "Income Taxes"), and transfer pricing (Note 21 "Related Party Transactions").

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 are accounted for as collateralized financings. 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 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 these 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, equity contracts, 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 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 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. However, unrealized losses on securities available for sale that we intend to sell, or if it is more likely than not that we will be required to sell, before recovery of the security's amortized cost basis are included in noninterest income. Credit losses on securities available for sale that we do not expect to sell and credit losses on securities held to maturity, if any, are recorded as discussed in "Allowance for Credit Losses" in this note.

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 based on the estimated lives of the securities 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.

For further information on our debt securities, see Note 2 to these consolidated financial statements.

Loans Held for Investment, 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. Interest income may be recognized on these nonaccrual loans, referred to as "Cash Basis Nonaccrual", only when payments are 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. Credit losses on TDR's are recorded as discussed in "Allowance for Credit Losses" in this note. 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.

On March 22, 2020, the federal bank regulatory agencies issued joint guidance advising that the agencies have confirmed with the staff of the FASB that short-term modifications due to COVID-19 made on a good faith basis to borrowers who were current prior to relief, are not TDRs. On March 27, 2020, the CARES Act, which provides relief from TDR classification for certain COVID-19-related loan modifications, was signed into law. The Company did not classify loan modifications, which were largely payment deferrals, that met the criteria under either the CARES Act or the criteria specified by the regulatory agencies as TDRs. At December 31, 2020, $1.0 billion of modified commercial loans and $1.4 billion of modified consumer loans were still in deferral and not classified as TDRs. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan.

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.

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.

The Company provides lease financing to its customers as lessor. Direct financing 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.

Allowance for Credit Losses

Allowance for loan losses

Allowance for loan losses is a valuation account that is deducted from the assets’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management confirms the uncollectibility of a loan balance. Expected recoveries, if any, do not exceed the aggregate of amounts previously charged-off.

Management develops and documents its systematic methodology for determining the allowance by first dividing its portfolio into two segments - the commercial segment and consumer segment. The Company further divides its 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 and classes, the allowance estimate is provided to cover all credit losses expected in the loan portfolio.

The Company's methodology for estimating the allowance uses relevant available information relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made to account for differences between current and expected future conditions and those reflected in historical loss information. The allowance is measured on a collective basis when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis.

The collectively-assessed allowance methodology incorporated an economic forecast over a 36-month period when ASU 2016-13, Measurement of Credit Losses on Financial Instruments, was adopted as of January 1, 2020. Beyond the 36-month economic forecast, the allowance methodology reverted to average historical loss information on a straight-line basis over a 24-month period. However, the economic forecast was shortened to a 24-month period during the first quarter of 2020 due to heightened volatility and uncertainty in the economy due to the emergence of COVID-19. No change was made to the 24-month straight-line reversion to historical loss information. These timeframes are regularly reviewed and approved by management and may be adjusted if economic conditions warrant.

An expected loss approach is used to estimate the collectively-assessed allowance for both the commercial and consumer portfolio segments. Expected loss is calculated as the product of PD, LGD, and EAD modeled parameters that are projected on a monthly basis over the assets’ remaining contractual lives. The sum of each month’s expected loss calculation results in the collectively-assessed allowance estimate. Expected loss models use historical loss information and a variety of economic assumptions to estimate PD, LGD, and EAD. These models are tailored to different loan segments, classes and products by changing the economic variables or their weighting in the calculation used to estimate expected losses.

The allowance is an estimate of expected credit losses over the remaining contractual term of each asset. Expected prepayments are incorporated into the estimation of the EAD for each asset over the asset’s remaining term, which shortens the expected remaining term. Contractual term is not adjusted for expected extensions, renewals, and modifications unless management has a reasonable expectation that a TDR will be executed with a borrower. Credit cards do not have defined contractual terms. In order to estimate the expected credit losses on actively used revolving credit card balances, we make assumptions about expected payments and expected spending on the unconditionally cancelable unfunded amount at the measurement date. Expected spending after the measurement date reduces the expected payments that are allocated to

the outstanding balance at the measurement date. Expected credit losses are calculated only on the outstanding balances component at the measurement date, which is amortized by applying the proportion of the expected payment allocated to the outstanding balance. Expected payments applied to the expected spending after the measurement date are excluded from the analysis because unconditionally cancelable unfunded commitments are not reservable.

Loans that do not share risk characteristics are evaluated individually to determine the allowance. Loans assessed individually include larger nonaccruing loans within the commercial portfolio, TDRs, reasonably expected TDRs and collateral-dependent loans. Collateral-dependent loans are generally individually-assessed for allowance purposes. Collateral-dependent assets' expected credit losses are assessed when the fair value of the collateral is less than the amortized cost basis of the asset. Collateral-dependent assets are evaluated in this manner when foreclosure is probable, or when repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. Estimated costs to sell are included in the estimate when repayment is expected by the sale of the collateral. Collateral-dependent assets are generally secured by real estate collateral. When the discounted cash flow method is used to determine the allowance for individually-assessed loans, management does not adjust the interest rate used to discount expected cash flows to incorporate expected prepayments.

Management implements qualitative adjustments to the collectively-assessed allowance to account for the risks not incorporated in the model between current conditions and those reflected in the historical loss information used to estimate the models. These qualitative factors include changes in credit policies, problem loan trends, identification of new risks not incorporated into the modeling framework, credit concentrations, changes in lending management and other external factors. Qualitative adjustments are also used to adjust the collectively-assessed allowance to account for risks attributed to imprecision in the economic forecast and when risks emerge that impact specific portfolio components (i.e., natural disasters).

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' allowance is measured either individually or in pools with similar risk characteristics. The allowance for a TDR loan is measured using the same method as all other loans when evaluated in pools. The allowance for individually assessed TDR loans is measured using a discounted cash flow methodology, or by evaluating the fair value of the collateral, if collateral dependent. When the value of a concession cannot be measured using a method other than the discounted cash flow method, the value of a concession is measured by discounting the expected future cash flows at the original interest rate of the loan. When we have a reasonable expectation that a TDR loan may be executed with a borrower at the evaluation date, we may modify the allowance calculation to align with the expected modification terms, which may include modifying the expected contractual term.

We generally do not record an allowance for accrued interest receivable on loans held for investment, which is included in other assets on the consolidated balance sheet. Uncollectible accrued interest is generally reversed through interest income.

Allowance for Credit Losses on Debt Securities

The Company's debt securities generally are explicitly or implicitly guaranteed by U.S. government entities or agencies or are non-agency-backed assets that are highly rated and have not incurred credit losses historically. No credit losses are expected on these assets and thus no allowance is estimated on these debt securities.

Allowance for Credit Losses on Securities Borrowed or Purchased under Resale Agreements

Securities borrowed or purchased under resale agreements are subject to allowance estimation, however management has no history of credit losses on these assets and has portfolio monitoring practices that ensure collateral is maintained at appropriate levels. As borrowers have a history of replenishing collateral securing the financial assets, when needed, and are expected to continue to maintain such behavior in the future, no allowance is estimated on these assets.

Allowance for Credit Losses on Unfunded Credit Commitments

The Company maintains an allowance for losses on unfunded credit commitments for the contractual term over which we are exposed to credit risk that is not unconditionally cancelable by the Company. The Company's allowance methodology for unfunded credit commitments is the same as that used for the allowance for the other collectively-evaluated assets and includes an estimate of commitments that are expected to fund over the remaining contractual term. The allowance for losses on unfunded credit commitments is classified as other liabilities on the balance sheet, with changes recognized in the provision for credit losses.

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 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. Intangible assets that have indefinite lives are tested for impairment at least annually, and more frequently in certain circumstances.

The Company has elected to account for its residential mortgage servicing rights using the fair value measurement method. Under the fair value measurement method, residential mortgage servicing rights are measured at estimated fair value each period with changes in fair value included in other, net within noninterest income.

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 impairment test by comparing the fair value of the reporting unit to its carrying amount, including goodwill. A goodwill impairment loss is 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. 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 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, changes in the fair value of the derivative instrument are recorded in earnings together with the change in fair value of the hedged item. For cash flow hedges, changes in the fair value of the derivative instrument are 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 for 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 in earnings.

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. For combinations between entities under common control, assets and liabilities acquired are recorded at book value at the transfer date.

Recently Adopted Accounting Pronouncements

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provided new guidance on the accounting for credit losses for instruments that are within its scope. This new guidance is commonly referred to as the 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 by incorporating forward-looking information, such as reasonable and supportable forecasts, in the entity's assessment of the collectability of financial assets. Lifetime expected credit losses on purchased financial assets with credit deterioration are recognized as an allowance with an offset to the cost basis of the asset. For debt securities available for sale, the new standard requires 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 Company adopted the ASU on January 1, 2020, and recorded an increase to the allowance for credit losses of $199 million, primarily due to an increase in the allowance for consumer loans, offset by a $52 million deferred tax asset, and a $147 million cumulative-effect adjustment reduction to retained earnings.

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 Company adopted the ASU on January 1, 2020. The guidance only affects disclosures in Notes to Consolidated Financial Statements and did not affect the Company’s financial position or results of operations.

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Securities

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

Securities Available for Sale

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale for December 31, 2020 and 2019 are presented below.

	December 31, 2020								December 31, 2019
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury and government agencies	$	4,273	$	202	$	2	$	4,473	$	5,485	$	6	$	53	$	5,438
Mortgage-backed:
U.S. agencies	5,843		81		2		5,922		5,491		13		36		5,468
Residential - non-agency	539		2		2		539		759		5		2		762
Commercial - non-agency	4,212		286		9		4,489		3,461		56		28		3,489
Collateralized loan obligations	1,370		1		4		1,367		1,499		—		8		1,491
Direct bank purchase bonds	891		46		7		930		911		43		18		936
Other	532		7		—		539		202		3		—		205
Total securities available for sale	$	17,660	$	625	$	26	$	18,259	$	17,808	$	126	$	145	$	17,789

The Company's securities available for sale with a continuous unrealized loss position at December 31, 2020 and 2019 are shown below, identified for periods less than 12 months and 12 months or more.

	December 31, 2020
	Less Than 12 Months				12 Months or More				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury and government agencies	$	635	$	2	$	—	$	—	$	635	$	2
Mortgage-backed:
U.S. agencies	43		—		732		2		775		2
Residential - non-agency	275		2		15		—		290		2
Commercial - non-agency	354		9		25		—		379		9
Collateralized loan obligations	593		1		477		3		1,070		4
Direct bank purchase bonds	26		1		197		6		223		7
Other	—		—		—		—		—		—
Total securities available for sale	$	1,926	$	15	$	1,446	$	11	$	3,372	$	26

	December 31, 2019
	Less Than 12 Months				12 Months or More				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury and government agencies	$	4,407	$	48	$	543	$	5	$	4,950	$	53
Mortgage-backed:
U.S. agencies	914		4		2,769		32		3,683		36
Residential - non-agency	127		—		155		2		282		2
Commercial - non-agency	1,669		28		12		—		1,681		28
Collateralized loan obligations	597		2		790		6		1,387		8
Direct bank purchase bonds	118		1		294		17		412		18
Other	25		—		—		—		25		—
Total securities available for sale	$	7,857	$	83	$	4,563	$	62	$	12,420	$	145

At December 31, 2020, 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 and commercial 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 and commercial 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, 2020, 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 recoverability and 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, 2020, 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 recoverability and 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, 2020, 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 recoverability and 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, 2020, 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, 2020
(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
U.S. Treasury and government agencies	$	—	$	157	$	4,155	$	161	$	4,473
Mortgage-backed:
U.S. agencies	—		65		927		4,930		5,922
Residential - non-agency	—		—		4		535		539
Commercial - non-agency	—		—		1,774		2,715		4,489
Collateralized loan obligations	—		2		945		420		1,367
Direct bank purchase bonds	94		411		350		75		930
Other	10		180		349		—		539
Total securities available for sale	$	104	$	815	$	8,504	$	8,836	$	18,259

The gross realized gains and losses from sales of available for sale securities for the years ended December 31, 2020, 2019 and 2018 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)	2020		2019		2018
Gross realized gains	$	144	$	39	$	8

Securities Held to Maturity

At December 31, 2020 and 2019, 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, 2020
			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 and government agencies	$	2,260	$	—	$	—	$	2,260	$	22	$	27	$	2,255
Mortgage-backed:
U.S. agencies	5,116		1		66		5,051		226		—		5,277
Total securities held to maturity	$	7,376	$	1	$	66	$	7,311	$	248	$	27	$	7,532

	December 31, 2019
			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 and government agencies	$	1,359	$	—	$	—	$	1,359	$	—	$	6	$	1,353
Mortgage-backed:
U.S. agencies	8,166		—		104		8,062		123		30		8,155
Total securities held to maturity	$	9,525	$	—	$	104	$	9,421	$	123	$	36	$	9,508

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, 2020 and 2019 are shown below, separately for periods less than 12 months and 12 months or more.

	December 31, 2020
	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 and government agencies	$	1,267	$	—	$	27	$	—	$	—	$	—	$	1,267	$	—	$	27
Mortgage-backed:
U.S. agencies	65		—		—		2,472		66		—		2,537		66		—
Total securities held to maturity	$	1,332	$	—	$	27	$	2,472	$	66	$	—	$	3,804	$	66	$	27

	December 31, 2019
	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 and government agencies	$	509	$	—	$	6	$	—	$	—	$	—	$	509	$	—	$	6
Mortgage-backed:
U.S. agencies	1,084		—		9		4,515		104		21		5,599		104		30
Total securities held to maturity	$	1,593	$	—	$	15	$	4,515	$	104	$	21	$	6,108	$	104	$	36

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, 2020
	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 and government agencies	$	—	$	—	$	—	$	—	$	441	$	457	$	1,819	$	1,798	$	2,260	$	2,255
Mortgage-backed:
U.S. agencies	—		—		619		641		655		688		3,777		3,948		5,051		5,277
Total securities held to maturity	$	—	$	—	$	619	$	641	$	1,096	$	1,145	$	5,596	$	5,746	$	7,311	$	7,532

Securities Pledged and Received as Collateral

At December 31, 2020 and December 31, 2019, the Company pledged $15.5 billion and $10.5 billion of available for sale and trading securities as collateral, respectively, of which $3.4 billion and $1.0 billion, respectively, was permitted to be sold or repledged. These securities were pledged as collateral for derivative liability positions and securities loaned or sold under repurchase agreements, and to secure public and trust department deposits.

At December 31, 2020 and December 31, 2019, the Company received $29.9 billion and $34.0 billion, respectively, of collateral for derivative asset positions and securities borrowed or purchased under resale agreements, of which $29.9 billion and $34.0 billion, respectively, was permitted to be sold or repledged. Of

the collateral received, the Company sold or repledged $29.7 billion and $32.5 billion at December 31, 2020 and December 31, 2019, respectively, for securities loaned or sold under repurchase agreements.

For additional information related to the Company's significant accounting policies on securities pledged as collateral, see Note 1 to these consolidated financial statements.

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Other Assets

12 Months Ended

Dec. 31, 2020

Other Assets [Abstract]

Premises and Equipment and Other Assets

Other Assets

The following table shows the balances of other assets as of December 31, 2020 and 2019.

(Dollars in millions)	December 31, 2020		December 31, 2019
Other investments	$	2,721	$	3,033
Premises and equipment, net	650		656
Software	607		527
Intangible assets	313		531
Other	5,625		5,453
Total other assets	$	9,916	$	10,200

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Variable Interest Entities

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019.

	December 31, 2020
	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	$	—	$	—	$	81	$	81	$	16	$	16
Leasing investments	—		310		111		421		5		5
Total consolidated VIEs	$	—	$	310	$	192	$	502	$	21	$	21

	December 31, 2019
	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	$	—	$	—	$	96	$	96	$	36	$	36
Leasing investments	—		349		117		466		9		9
Total consolidated VIEs	$	—	$	349	$	213	$	562	$	45	$	45

LIHC Investments

The Company sponsors, manages and syndicates two LIHC 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, 2020 and 2019. 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 2020, 2019, and 2018, the Company had noncash increases in unfunded commitments on LIHC investments of $79 million, $43 million and $87 million, respectively, included within other liabilities.

	December 31, 2020
	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	$	—	$	26	$	256	$	831	$	1,113	$	209	$	209	$	1,113
Renewable energy investments	—		—		—		1,215		1,215		—		—		1,235
Other investments	—		—		—		88		88		4		4		187
Total unconsolidated VIEs	$	—	$	26	$	256	$	2,134	$	2,416	$	213	$	213	$	2,535

	December 31, 2019
	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	$	—	$	27	$	219	$	872	$	1,118	$	148	$	148	$	1,118
Renewable energy investments	—		—		—		1,256		1,256		—		—		1,276
Other investments	—		—		13		69		82		4		4		163
Total unconsolidated VIEs	$	—	$	27	$	232	$	2,197	$	2,456	$	152	$	152	$	2,557

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, 2020, 2019 and 2018:

	For the Years Ended December 31,
	2020		2019		2018
(Dollars in millions)
Losses from LIHC investments included in other noninterest expense	$	4	$	6	$	7
Amortization of LIHC investments included in income tax expense	124		130		136
Tax credits and other tax benefits from LIHC investments included in income tax expense	156		178		180

Renewable Energy Investments

Through its subsidiaries, the Company makes equity investments in LLCs established by third party sponsors 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, 2020

Deposits [Abstract]

Deposits

Deposits

The aggregate amount of time deposits that meet or exceed the FDIC insurance limit was $3.7 billion and $7.5 billion at December 31, 2020 and 2019, respectively.

At December 31, 2020, the Company had $7.4 billion in interest bearing time deposits. Maturity information for all interest bearing time deposits is summarized below.

(Dollars in millions)	December 31, 2020
Due in one year or less	$	6,677
Due after one year through two years	549
Due after two years through three years	83
Due after three years through four years	76
Due after four years through five years	34
Due after five years	—
Total	$	7,419

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Securities Financing Agreements

12 Months Ended

Dec. 31, 2020

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, see Note 2 to these consolidated financial statements.

The following table presents 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, 2020 and December 31, 2019.

	December 31, 2020										December 31, 2019
(Dollars in millions)	Overnight and Continuous		Up to 30 Days		31 - 90 Days		Greater than 90 Days		Total		Overnight and Continuous		Up to 30 Days		31 - 90 Days		Greater than 90 Days		Total
Securities sold under agreements to repurchase:
U.S. Treasury and government agencies	$	—	$	14,642	$	296	$	—	$	14,938	$	12,219	$	2,237	$	385	$	102	$	14,943
Mortgage-backed:
U.S. agencies	—		8,069		5,465		—		13,534		5,322		1,582		7,126		—		14,030
Corporate debt	—		676		756		—		1,432		688		24		1,161		—		1,873
Other debt	—		401		377		—		778		327		—		533		—		860
Equity	—		1,377		1,067		—		2,444		1,400		349		456		—		2,205
Total	$	—	$	25,165	$	7,961	$	—	$	33,126	$	19,956	$	4,192	$	9,661	$	102	$	33,911
Securities loaned:
Corporate bonds	$	1	$	—	$	—	$	—	$	1	$	2	$	—	$	—	$	—	$	2
Other debt	11		—		241		—		252		—		—		—		—		—
Equity	366		243		—		—		609		257		236		—		—		493
Total	$	378	$	243	$	241	$	—	$	862	$	259	$	236	$	—	$	—	$	495

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, 2020 and December 31, 2019.

	December 31, 2020
							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	$	2,313	$	432	$	1,881	$	38	$	—	$	1,843
Securities borrowed or purchased under resale agreements	24,435		6,827		17,608		17,539		—		69
Total	$	26,748	$	7,259	$	19,489	$	17,577	$	—	$	1,912
Financial Liabilities:
Derivative liabilities	$	1,029	$	675	$	354	$	174	$	—	$	180
Securities loaned or sold under repurchase agreements	33,988		6,827		27,161		26,063		—		1,098
Total	$	35,017	$	7,502	$	27,515	$	26,237	$	—	$	1,278

	December 31, 2019
							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	$	1,233	$	264	$	969	$	26	$	—	$	943
Securities borrowed or purchased under resale agreements	29,483		5,540		23,943		23,844		—		99
Total	$	30,716	$	5,804	$	24,912	$	23,870	$	—	$	1,042
Financial Liabilities:
Derivative liabilities	$	523	$	306	$	217	$	129	$	1	$	87
Securities loaned or sold under repurchase agreements	34,406		5,540		28,866		27,957		—		909
Total	$	34,929	$	5,846	$	29,083	$	28,086	$	1	$	996

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Commercial Paper and Other Short-Term Borrowings

12 Months Ended

Dec. 31, 2020

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, 2020		December 31, 2019
Debt issued by MUB
Commercial paper, with a weighted average interest rate of 0.16% and 1.98% at December 31, 2020 and December 31, 2019, respectively	$	23	$	58
Federal Home Loan Bank advances, with a weighted average interest rate of 1.86% at December 31, 2019	—		6,100
Total debt issued by MUB	23		6,158
Debt issued by other MUAH subsidiaries
Short-term debt due to MUFG Bank, Ltd., with weighted average interest rates of 0.60% and 2.27% at December 31, 2020 and December 31, 2019, respectively	9		69
Short-term debt due to affiliates, with weighted average interest rates of (-0.08)% and (-0.10)% at December 31, 2020 and December 31, 2019, respectively	78		257
Total debt issued by other MUAH subsidiaries	87		326
Total commercial paper and other short-term borrowings	$	110	$	6,484

At December 31, 2020, commercial paper outstanding had a weighted average remaining maturity of 129 days. The short-term debt due to MUFG Bank, Ltd. had a weighted average remaining maturity of 88 days and the short-term debt due to affiliates had a weighted average remaining maturity of 260 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 $1.6 billion equivalent). Under the terms of the facility, MUSA can choose to borrow in Japanese Yen or U.S. Dollars. Japanese Yen denominated borrowings include an 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, 2020, MUSA had JPY 8 billion (USD $77 million equivalent) drawn under this facility.

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Long-Term Debt

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term DebtLong-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, 2020		December 31, 2019
Debt issued by MUAH
Senior debt:
Fixed rate 3.50% notes due June 2022	$	399	$	399
Fixed rate 3.00% notes due February 2025	398		397
Senior debt due to MUFG Bank, Ltd:
Floating rate debt due December 2022. This note, which bore interest at 0.90% above 3-month LIBOR, had a rate of 3.03% at December 31, 2019	—		3,250
Floating rate debt due December 2022. This note, which bore interest at 0.97% above 3-month LIBOR, had a rate of 3.07% at December 31, 2019	—		125
Floating rate debt due December 2023. This note, which bears interest at 0.99% above 3-month LIBOR, had a rate of 1.23% at December 31, 2020 and 3.12% at December 31, 2019	1,625		1,625
Floating rate debt due December 2023. This note, which bears interest at 0.94% above 3-month LIBOR, had a rate of 1.15% at December 31, 2020 and 2.82% at December 31, 2019	1,765		1,765
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, 2020 and 0.76% at December 31, 2019	27		24
Floating rate debt due March 2024. This note, which bears interest at 0.76% above 3-month LIBOR, had a rate of 0.98% at December 31, 2020	775		—
Floating rate debt due June 2024. This note, which bears interest at 0.79% above 3-month LIBOR, had a rate of 1.00% at December 31, 2020	750		—
Floating rate debt due September 2024. This note, which bears interest at 0.82% above 3-month LIBOR, had a rate of 1.03% at December 31, 2020	750		—
Floating rate debt due December 2024. This note, which bears interest at 0.84% above 3-month LIBOR, had a rate of 1.06% at December 31, 2020	750		—
Junior subordinated debt payable to trusts:
Floating rate note due September 2036. This note had an interest rate of 1.92% at December 31, 2020 and 3.59% at December 31, 2019	37		37
Total debt issued by MUAH	7,276		7,622
Debt issued by MUB
Senior debt:
Fixed rate 2.10% notes due December 2022.	699		698
Floating rate debt due December 2022. These notes which bear interest at 0.71% above the Secured Overnight Financing Rate had a rate of 0.78% at December 31, 2020 and 2.26% at December 31, 2019	300		300
Floating rate debt due March 2022. This note, which bears interest at 0.60% above 3-month LIBOR, had a rate of 0.83% at December 31, 2020 and 2.49% at December 31, 2019	300		300
Variable rate FHLB of San Francisco advances due November 2020. These notes had a combined weighted average rate of 1.90% at December 31, 2019	—		1,100
Fixed rate 3.15% notes due April 2022	998		998
Fixed rate FHLB of San Francisco advances due between November 2021 and April 2025. These notes bear a combined weighted average rate of 2.76% at December 31, 2020 and 2.95% at December 31, 2019	4,575		5,500
Other	12		13
Total debt issued by MUB	6,884		8,909
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 bore interest above 3-month LIBOR had a weighted average interest rate of 1.94% at December 31, 2019	—		250
Various fixed rate borrowings due between January 2021 and September 2027 with a weighted average interest rate of 1.48% (between 1.23% and 2.44%) at December 31, 2020 and 2.22% (between 1.68% and 2.44%) at December 31, 2019	323		137
Non-recourse debt due to MUFG Bank, Ltd:
Various floating rate non-recourse borrowings due December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted average interest rate of 0.51% at December 31, 2020 and 2.17% at December 31, 2019	3		3
Fixed rate non-recourse borrowings due between March 2021 and July 2023 which had an interest rate of 3.15% (between 1.96% and 3.72%) at December 31, 2020 and 3.07% (between 1.96% and 3.72%) at December 31, 2019	119		166
Other non-recourse debt:
Various floating rate non-recourse borrowings due December 2023. These notes, which bore interest above 1- or 3-month LIBOR, had a weighted average interest rate of 3.93% at December 31, 2019	—		13
Fixed rate non-recourse borrowings due December 2026 which had an interest rate of 5.34% at December 31, 2020 and 5.34% December 31, 2019	26		29
Total debt issued by other MUAH subsidiaries	471		598
Total long-term debt	$	14,631	$	17,129

A summary of maturities for the Company's long-term debt at December 31, 2020 is presented below.

(Dollars in millions)	Debt issued by MUAH		Debt issued by MUB		Debt issued by other MUAH subsidiaries		Total
2021	$	—	$	1,925	$	51	$	1,976
2022	399		2,796		38		3,233
2023	3,417		1,550		106		5,073
2024	3,025		—		—		3,025
2025	398		601		—		999
Thereafter	37		12		276		325
Total long-term debt	$	7,276	$	6,884	$	471	$	14,631

Senior Debt

Certain debt issuances are repayable prior to maturity at the Company’s option at a redemption price equal to 100% of par plus accrued interest, plus a make-whole premium. MUAH senior debt was issued under a shelf registration statement with the SEC, which expired as of January 29, 2018.

In December 2019, MUB issued $300 million of floating rate senior bank notes and $700 million of 2.10% senior bank notes. In March 2019, MUB issued $300 million of floating rate senior bank notes and $1.0 billion of 3.15% senior bank notes. These notes were issued as part of MUB's $12 billion bank note program under which MUB may issue, from time to time, senior and subordinated unsecured debt obligations. At December 31, 2020, there was $3.6 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. 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. As the TLAC long-term debt is repaid and refinanced from time to time, it is expected that such debt will be replaced by new TLAC long-term debt of similar terms. 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.

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, 2020,$323 million of senior debt issued to MUFG Bank, Ltd. 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, 2020 and December 31, 2019, the Bank had $34.7 billion and $45.3 billion of pledged loans, respectively, as collateral for short-term and medium-term advances from the FHLB and the Federal Reserve Bank.

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, 2020

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.

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. 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:

Loans Held for Investment:    A collateral-dependent individually assessed loan may be measured based on a loan's observable market price or the underlying collateral securing the loan, which approximates 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. These loans are reviewed and evaluated at least quarterly for additional impairment and adjusted accordingly. Loans that are adjusted to fair value based on underlying collateral or the loan's market price are 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, 2020 and 2019, by major category and by valuation hierarchy level.

	December 31, 2020															December 31, 2019
(Dollars in millions)	Level 1			Level 2			Level 3			Netting(1)			Fair Value			Level 1			Level 2			Level 3			Netting(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury and government agencies	$	—		$	3,118		$	—		$	—		$	3,118		$	—		$	2,393		$	—		$	—		$	2,393
Mortgage-backed:
U.S. agencies	—			8,936			—			—			8,936			—			5,376			—			—			5,376
Corporate debt	—			838			—			—			838			—			1,212			—			—			1,212
Other debt	—			354			—			—			354			—			306			—			—			306
Equity	925			—			—			—			925			127			—			—			—			127
Derivative contracts	20			2,277			1			(431)			1,867			16			1,195			8			(256)			963
Total trading account assets	945			15,523			1			(431)			16,038			143			10,482			8			(256)			10,377
Securities available for sale:
U.S. Treasury and government agencies	—			4,473			—			—			4,473			—			5,438			—			—			5,438
Mortgage-backed:
U.S. agencies	—			5,922			—			—			5,922			—			5,468			—			—			5,468
Residential - non-agency	—			539			—			—			539			—			762			—			—			762
Commercial - non-agency	—			4,473			16			—			4,489			—			3,471			18			—			3,489
Collateralized loan obligations	—			1,367			—			—			1,367			—			1,491			—			—			1,491
Direct bank purchase bonds	—			—			930			—			930			—			—			936			—			936
Other	—			11			528			—			539			—			28			177			—			205
Total securities available for sale	—			16,785			1,474			—			18,259			—			16,658			1,131			—			17,789
Other assets:
Mortgage servicing rights	—			—			110			—			110			—			—			270			—			270
Loans held for sale	—			—			43			—			43			—			—			42			—			42
Derivative contracts	—			2			13			(1)			14			—			10			4			(8)			6
Equity securities	20			—			—			—			20			10			—			—			—			10
Total other assets	20			2			166			(1)			187			10			10			316			(8)			328
Total assets	$	965		$	32,310		$	1,641		$	(432)		$	34,484		$	153		$	27,150		$	1,455		$	(264)		$	28,494
Percentage of total	3		%	93		%	5		%	(1)		%	100		%	1		%	95		%	5		%	(1)		%	100		%
Percentage of total Company assets	1		%	19		%	1		%	—		%	21		%	—		%	16		%	1		%	—		%	17		%
Liabilities
Trading account liabilities:
U.S. Treasury and government agencies	$	—		$	2,359		$	—		$	—		$	2,359		$	—		$	2,299		$	—		$	—		$	2,299
Corporate debt	—			483			—			—			483			—			646			—			—			646
Other debt	—			—			—			—			—			—			4			—			—			4
Equity	144			—			—			—			144			105			—			—			—			105
Derivatives contracts	58			962			1			(674)			347			11			499			8			(306)			212
Total trading account liabilities	202			3,804			1			(674)			3,333			116			3,448			8			(306)			3,266
Other liabilities:
FDIC clawback liability	—			—			—			—			—			—			—			121			—			121
Derivatives contracts	—			3			4			(1)			6			—			2			3			—			5
Total other liabilities	—			3			4			(1)			6			—			2			124			—			126
Total liabilities	$	202		$	3,807		$	5		$	(675)		$	3,339		$	116		$	3,450		$	132		$	(306)		$	3,392
Percentage of total	6		%	114		%	—		%	(20)		%	100		%	3		%	102		%	4		%	(9)		%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	—		%	3		%	—		%	2		%	—		%	—		%	2		%

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

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, 2020 and 2019. Level 3 securities available for sale at December 31, 2020 and 2019 largely consist of direct bank purchase bonds.

	For the Year Ended
	December 31, 2020										December 31, 2019
(Dollars in millions)	Trading Account Assets		Securities Available for Sale		Other Assets		Trading Account Liabilities		Other Liabilities		Trading Account Assets		Securities Available for Sale		Other Assets		Trading Account Liabilities		Other Liabilities
Asset (liability) balance, beginning of period	$	8	$	1,131	$	316	$	(8)	$	(124)	$	13	$	1,331	$	277	$	(13)	$	(118)
Total gains (losses) - (realized/unrealized):
Included in income before taxes	(2)		—		(166)		2		(2)		4		—		(88)		(4)		(6)
Included in other comprehensive income	—		13		—		—		—		—		31		—		—		—
Purchases/additions	—		382		16		—		—		—		57		396		—		—
Sales	—		—		—		—		—		—		—		(269)		—		—
Settlements	(5)		(52)		—		5		122		(9)		(288)		—		9		—
Asset (liability) balance, end of period	$	1	$	1,474	$	166	$	(1)	$	(4)	$	8	$	1,131	$	316	$	(8)	$	(124)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	(2)	$	—	$	(166)	$	2	$	(2)	$	4	$	—	$	(103)	$	(4)	$	(6)

The following table presents information about significant unobservable inputs related to the Company's significant Level 3 assets and liabilities at December 31, 2020.

	December 31, 2020
(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	$	930	Return on equity	Market-required return on capital	8.0-10.0	%	10.0	%
				Probability of default	0.0-8.0		0.4
				Loss severity	10.0-65.0		21.7
Other	$	528	Discounted cash flow	Discount rate	1.1-4.5		3.5
				Liquidity adjustment	0.8-3.2		2.4

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.

Other securities available for sale generally use a discounted cash flow valuation technique. This technique uses significant unobservable inputs such as discount rate and liquidity adjustment. 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, 2020 and 2019 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, 2020								For the Year Ended December 31, 2020
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans held for investment	$	187	$	—	$	—	$	187	$	(134)
Goodwill (1)	1,407		—		—		1,407		(357)
Other assets	89		—		—		89		(72)
Total	$	1,683	$	—	$	—	$	1,683	$	(563)

(1)For further information, see Note 5 to these consolidated financial statements.

	December 31, 2019								For the Year Ended December 31, 2019
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans held for investment	$	64	$	—	$	—	$	64	$	(20)
Goodwill (1)	1,764		—		—		1,764		(1,614)
Other assets	301		—		—		301		(36)
Total	$	2,129	$	—	$	—	$	2,129	$	(1,670)

(1)For further information, see Note 5 to these consolidated financial statements.

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 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 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. The Company maintains an allowance for losses on unfunded credit commitments.

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, 2020 and 2019.

	December 31, 2020
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	16,414	$	16,414	$	16,414	$	—	$	—
Securities borrowed or purchased under resale agreements	17,608		17,607		—		17,607		—
Securities held to maturity	7,311		7,532		—		7,532		—
Loans held for investment (1)	79,873		81,528		—		—		81,528
Other assets	31		31		31		—		—
Liabilities
Time deposits	$	7,419	$	7,451	$	—	$	7,451	$	—
Securities loaned or sold under repurchase agreements	27,161		27,161		—		27,161		—
Commercial paper and other short-term borrowings	110		110		—		110		—
Long-term debt	14,631		14,973		—		14,973		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	40	$	313	$	—	$	—	$	313

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

	December 31, 2019
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	9,641	$	9,641	$	9,641	$	—	$	—
Securities borrowed or purchased under resale agreements	23,943		23,946		—		23,946		—
Securities held to maturity	9,421		9,508		—		9,508		—
Loans held for investment (1)	86,687		87,506		—		—		87,506
Other assets	54		54		54		—		—
Liabilities
Time deposits	$	15,651	$	15,691	$	—	$	15,691	$	—
Securities loaned or sold under repurchase agreements	28,866		28,866		—		28,866		—
Commercial paper and other short-term borrowings	6,484		6,484		—		6,484		—
Long-term debt	17,129		17,344		—		17,344		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	87	$	280	$	—	$	—	$	280

(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, 2020

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 at December 31, 2020 and December 31, 2019. 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, 2020						December 31, 2019
			Fair Value						Fair Value
(Dollars in millions)	Notional Amount		Asset Derivatives		Liability Derivatives		Notional Amount		Asset Derivatives		Liability Derivatives
Derivative instruments
Cash flow hedges:
Interest rate contracts	$	9,509	$	—	$	1	$	13,319	$	—	$	—
Not designated as hedging instruments:
Trading:
Interest rate contracts	193,326		1,890		754		214,805		981		446
Commodity contracts	4		—		—		9		—		—
Foreign exchange contracts	14,189		392		215		11,219		230		64
Equity contracts	1,599		16		51		72		8		8
Other contracts	51		—		1		72		—		—
Total Trading	209,169		2,298		1,021		226,177		1,219		518
Other risk management	1,548		15		7		1,948		14		5
Total derivative instruments	$	220,226	$	2,313	$	1,029	$	241,444	$	1,233	$	523

We recognized net gains of $28 million, net gains of $2 million and net losses of $4 million on other risk management derivatives for the years ended December 31, 2020, 2019 and 2018, 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

From time to time, the Company uses interest rate derivatives to hedge the risk of changes in cash flows attributable to changes in the designated interest rate on LIBOR indexed loans, and to a lesser extent, to hedge interest rate risk on rollover debt.

The Company used interest rate derivatives with an aggregate notional amount of $9.5 billion at December 31, 2020 to hedge the risk of changes in cash flows attributable to changes in the designated interest rates from variable rate loans. The Company used interest rate derivatives with an aggregate notional amount of $9 million at December 31, 2020 to hedge the risk of changes in cash flows attributable to changes in the designated interest rate on LIBOR indexed short-term borrowings. At December 31, 2020, the weighted average remaining life of the active cash flow hedges was 2.7 years.

For cash flow hedges, changes in the fair value of 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. At December 31, 2020, the Company expects to reclassify approximately $106 million of income from AOCI as an increase to net interest income during the twelve months ending December 31, 2021. 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, 2020.

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, 2020, 2019 and 2018:

	Gains (Losses) Recognized in OCI							Gains (Losses) Reclassified from AOCI into Income							Gains (Losses) Recognized in Income (Ineffective Portion)
	For the Year Ended December 31,							For the Year Ended December 31,							For the Year Ended December 31,
(Dollars in millions)	2020		2019		2018		Location	2020		2019		2018		Location	2018
Derivatives in cash flow hedging relationships
							Interest income	$	34	$	(91)	$	(34)
Interest rate contracts	$	465	$	51	$	(96)	Interest expense	—		—		—		Noninterest expense	$	(1)
Total	$	465	$	51	$	(96)		$	34	$	(91)	$	(34)		$	(1)

Derivatives Not Designated as Hedging Instruments

Trading Derivatives

Derivative instruments classified as trading include derivatives entered into at MUAH's broker-dealer subsidiary, MUSA, and derivatives entered into as an accommodation for customers and for certain economic hedging activities at MUB. Trading derivatives are included in trading assets or trading liabilities with changes in fair value reflected in income from trading account activities.

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, 2020, 2019 and 2018:

	Gains (Losses) Recognized in Income on Trading Derivatives
	For the Years Ended
(Dollars in millions)	December 31, 2020		December 31, 2019		December 31, 2018
Trading derivatives
Interest rate contracts	$	(83)	$	(93)	$	95
Equity contracts	(23)		6		36
Foreign exchange contracts	61		51		44
Total	$	(45)	$	(36)	$	175

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 "Securities Financing Arrangements" to these consolidated financial statements.

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Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2020

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, 2020
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	465	$	(122)	$	343
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	431		(113)		318
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	763		(200)		563
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(144)		38		(106)
Amortization of net unrealized (gains) losses on held to maturity securities	38		(10)		28
Net change	657		(172)		485
Pension and other benefits:
Amortization of prior service credit(1)	(27)		7		(20)
Recognized net actuarial (gain) loss(1)	112		(29)		83
Pension and other benefits arising during the year	13		(4)		9
Net change	98		(26)		72
Net change in AOCI	$	1,186	$	(311)	$	875

(1)These amounts are included in the computation of net periodic pension cost. For additional 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, 2019
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	51	$	(13)	$	38
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	91		(24)		67
Net change	142		(37)		105
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	385		(101)		284
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(39)		10		(29)
Amortization of net unrealized (gains) losses on held to maturity securities	33		(8)		25
Net change	379		(99)		280
Pension and other benefits:
Amortization of prior service credit (1)	(40)		11		(29)
Recognized net actuarial (gain) loss(1)	74		(20)		54
Pension and other benefits arising during the year	70		(19)		51
Net change	104		(28)		76
Other	1		—		1
Net change in AOCI	$	626	$	(164)	$	462

(1)These amounts are included in the computation of net periodic pension cost. For additional 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, 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 additional information, see Note 15 to these consolidated financial statements.

The following table presents the change in accumulated other comprehensive loss balances.

	Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Securities		Foreign Currency Translation Adjustment		Pension and Other Postretirement Benefits Adjustment		Other		Accumulated Other Comprehensive Income (Loss)
(Dollars in millions)
Balance, December 31, 2017	$	(174)	$	(233)	$	(19)	$	(600)	$	—	$	(1,026)
Other comprehensive income (loss) before reclassifications	(71)		(155)		(2)		(171)		(1)		(400)
Amounts reclassified from AOCI	25		15		—		41		—		81
Transfer to additional paid-in capital(1)	—		—		21		—		—		21
Balance, December 31, 2018	$	(220)	$	(373)	$	—	$	(730)	$	(1)	$	(1,324)
Other comprehensive income (loss) before reclassifications	38		284		—		51		1		374
Amounts reclassified from AOCI	67		(4)		—		25		—		88
Balance, December 31, 2019	$	(115)	$	(93)	$	—	$	(654)	$	—	$	(862)
Other comprehensive income (loss) before reclassifications	343		563		—		9		—		915
Amounts reclassified from AOCI	(25)		(78)		—		63		—		(40)
Balance, December 31, 2020	$	203	$	392	$	—	$	(582)	$	—	$	13

(1)Transfer of accumulated foreign currency translation to additional paid-in capital resulted from the transfer of the Company's investment in a Canadian entity to MUFG Bank, Ltd. during the first quarter of 2018.

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Management Stock Plans

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [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. For grants issued prior to June 2020, these awards generally vest pro-rata on each anniversary of the grant date and become fully vested 3 years from the grant date, provided that the employee has completed the specified continuous service requirement. Beginning with grants issued in June 2020, awards generally vest pro-rata one month before each anniversary of the grant date and become fully vested thirty-five months from the grant date. 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, 2020 was 3 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 each vesting date for the underlying restricted stock units.

The following table is a rollforward of the restricted stock units under the MUAH Plan for the year ended December 31, 2020:

	Restricted Stock Units
	2020
	Number of Units	Weighted-Average Grant Date Fair Value
Units outstanding, beginning of year	37,653,686	5.16
Activity during the year:
Granted	26,949,460	4.04
Vested	(16,966,486)	5.46
Forfeited	(2,210,586)	4.64
Units outstanding, end of year	45,426,074	4.40

The weighted-average grant date fair value of restricted stock units granted during 2019 and 2018 was 4.67 and 5.89, respectively. The total fair value of restricted stock units that vested during the years ended December 31, 2020, 2019, and 2018 was $69 million, $70 million, and $78 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)	2020		2019		2018
Compensation costs	$	83	$	89	$	77
Tax benefit	22		23		20
Unrecognized compensation costs	129		129		110

At December 31, 2020, approximately $129 million (pretax) of compensation expense related to unvested grants had not yet been charged to net income. Unrecognized compensation costs as of December 31, 2020 are expected to be recognized over a weighted-average period of 1.35 years.

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Other Noninterest Income and Noninterest Expense

12 Months Ended

Dec. 31, 2020

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)	2020		2019		2018
Fund administration fees	$	112	$	94	$	100
Losses on renewable energy investments	(72)		(85)		(235)
Mortgage servicing activities	(123)		(44)		20
Other	247		248		230
Total other noninterest income	$	164	$	213	$	115

The detail of other noninterest expense is as follows.

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Fees to affiliates	$	94	$	94	$	115
Net periodic pension cost, excluding service cost	(97)		(112)		(124)
Other	389		440		418
Total other noninterest expense	$	386	$	422	$	409

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Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table is an analysis of the effective tax rate:

	Years Ended December 31,
	2020		2019		2018
Federal income tax rate	21	%	21	%	21	%
Net tax effects of:
State income taxes, net of federal income tax benefit	(2)		(13)		7
Goodwill impairment	63		(45)		—
Tax-exempt interest income	(7)		2		(1)
Losses from LIHC investments	(13)		4		(2)
Amortization of LIHC investments	94		(20)		12
Tax credits	(189)		40		(25)
FDIC insurance premiums	6		(2)		1
Valuation allowance release	—		1		—
Effects of US tax law change	—		—		(2)
State tax refunds	—		—		(5)
Provision to return adjustment	15		1		(2)
Compensation - restricted stock units	4		(1)		—
Uncertain tax benefits	(6)		—		—
Other	1		—		1
Effective tax rate	(13)	%	(12)	%	5	%

The components of income tax expense were as follows:

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Current income tax expense:
Federal	$	204	$	191	$	195
State	123		154		89
Foreign	1		1		10
Total current expense	328		346		294
Deferred income tax expense (benefit):
Federal	(247)		(202)		(173)
State	(98)		(61)		(64)
Foreign	(1)		(1)		(5)
Total deferred expense	(346)		(264)		(242)
Total income tax expense (benefit)	$	(18)	$	82	$	52

The components of the Company's net deferred tax balances as of December 31, 2020 and 2019 were as follows:

	December 31,
(Dollars in millions)	2020		2019
Deferred tax assets:
Tax credits and net operating loss carryforwards	$	468	$	499
Allowance for credit losses	532		312
Lease liability	198		—
Accrued expense, net	202		143
Unrealized losses on pension and postretirement benefits	207		233
Unrealized net (gains) losses on securities available for sale	—		32
Fair value adjustments for valuation of FDIC covered assets	30		40
Unrealized gains/losses on cash flow hedges	—		41
Capitalized loan cost	147		—
Other	9		30
Total deferred tax assets	1,793		1,330
Deferred tax liabilities:
Leasing and renewable energy	482		515
Intangible assets	14		17
Pension liabilities	374		373
Right of use	198		—
Unrealized net (gains) losses on securities available for sale	140		—
Unrealized gains/losses on cash flow hedges	72		—
Other	—		—
Total deferred tax liabilities	1,280		905
Net deferred tax asset (liability)	$	513	$	425

At December 31, 2020, the U.S. federal tax credit carryforwards were $411 million, and if not utilized, began to expire in 2035. The Company has $88 million of federal net operating loss carryforwards of which $72 million are subject to separate return loss limitation rules and if not utilized begin to expire in tax year 2032. The Company also has $17 million of acquired net operating losses subject to IRC Section 382 limitation rules for which $13 million were generated post-tax reform and can be carried forward indefinitely and $4 million if not utilized begin to expire in 2036. The Company has $50 million of apportioned gross state net operating loss carryforwards ($4 million tax effected net of federal benefit), and if not utilized begin to expire in 2034. The state tax credits carryforward net of federal benefit was $33 million and can be carried forward indefinitely. The Company's AMT Credit carryforward was $13 million which can be carried forward indefinitely and is also subject to rules under separate return limitation years. Additionally, as a result of the

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.

Deferred tax assets are evaluated for realization based on the existence of sufficient taxable income of the appropriate character. Management determined it was more likely than not that such acquired deferred tax assets would be realized. 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)	2020		2019		2018
Balance, beginning of year	$	126	$	127	$	56
Gross increases as a result of tax positions taken during prior periods	2		1		72
Gross decreases as a result of tax positions taken during prior periods	(22)		—		—
Gross increases as a result of tax positions taken during current period	—		—		—
Gross decrease as a result of closed audit years or settlements	(1)		(2)		(1)
Balance, end of year	$	105	$	126	$	127

The amount of unrecognized tax positions that would affect the effective tax rate, if recognized, was $91 million, $99 million and $98 million at December 31, 2020, 2019 and 2018, respectively.

The Company recognizes interest and penalties as a component of income tax expense. As of December 31, 2020, we accrued $3 million in interest and $2 million in penalties. There are no tax positions the Company reasonably believes will be resolved within the next 12 months.

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, 2020

Broker-Dealer, Net Capital Requirement, SEC Regulation [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, 2020, 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, 2020 and 2019, 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, 2020:
Common equity tier 1 capital (to risk-weighted assets)	$	15,823	15.28	%	≥	$	9,218	8.90	%
Tier 1 capital (to risk-weighted assets)	15,823		15.28		≥	10,772		10.40
Total capital (to risk-weighted assets)	16,871		16.29		≥	12,843		12.40
Tier 1 leverage(2)	15,823		9.56		≥	6,623		4.00
As of December 31, 2019:
Common equity tier 1 capital (to risk-weighted assets)	$	15,086	14.10	%	≥	$	7,492	7.00	%
Tier 1 capital (to risk-weighted assets)	15,086		14.10		≥	9,097		8.50
Total capital (to risk-weighted assets)	15,769		14.73		≥	11,237		10.50
Tier 1 leverage(2)	15,086		8.88		≥	6,792		4.00

(1)The minimum capital requirement includes MUAH's standardized capital conservation buffer of 4.4%.

(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, 2020 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	14,634	15.62	%	≥	$	6,557	7.00	%	≥	$	6,089	6.5	%
Tier 1 capital (to risk-weighted assets)	14,634		15.62		≥	7,963		8.50		≥	7,494		8.0
Total capital (to risk-weighted assets)	15,629		16.68		≥	9,836		10.50		≥	9,368		10.0
Tier 1 leverage(2)	14,634		11.12		≥	5,262		4.00		≥	6,577		5.0
As of December 31, 2019 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	14,115	14.47	%	≥	$	6,829	7.00	%	≥	$	6,342	6.5	%
Tier 1 capital (to risk-weighted assets)	14,115		14.47		≥	8,293		8.50		≥	7,805		8.0
Total capital (to risk-weighted assets)	14,746		15.11		≥	10,244		10.50		≥	9,756		10.0
Tier 1 leverage(2)	14,115		10.65		≥	5,304		4.00		≥	6,629		5.0

(1)Beginning January 1, 2019, the minimum capital requirement includes a capital conservation buffer of 2.5%.

(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

12 Months Ended

Dec. 31, 2020

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, 2020
Commitments to extend credit	$	39,421
Issued standby and commercial letters of credit	4,189
Commitments to enter into forward-starting resale agreements	2,187
Other commitments	1,831

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 remaining terms of 1 year or less. At December 31, 2020, 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 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, 2020

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.

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 services 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, 2020 and December 31, 2019, assets and liabilities with affiliates consisted of the following:

(Dollars in millions)	December 31, 2020		December 31, 2019
Assets:
Cash and cash equivalents	$	231	$	282
Securities borrowed or purchased under resale agreements	4,070		2,415
Trading account assets	50		—
Other assets	152		109
Liabilities:
Deposits	$	726	$	894
Securities loaned or sold under repurchase agreements	551		318
Commercial paper and other short-term borrowings	87		326
Long-term debt	6,887		7,345
Trading account liabilities	17		—
Other liabilities	102		98

Revenues and expenses with affiliates for the years ended 2020, 2019, and 2018 were as follows:

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Interest Income
Securities borrowed or purchased under resale agreements	$	19	$	66	$	66
Other	1		2		2
Interest Expense
Deposits	3		13		3
Commercial paper and other short-term borrowings	5		3		2
Long-term debt	118		237		171
Securities loaned or sold under repurchase agreements	4		25		18
Noninterest Income
Trading account activities	(56)		34		—
Fees from affiliates	1,489		1,439		1,213
Other, net	32		(6)		1
Noninterest Expense
Other	97		96		115

During 2020, the Company sold loans to affiliates for gross proceeds of $1.5 billion, resulting in gains on sale of $3 million. During 2020, the Company purchased loans from affiliates for $56 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, 2020, the Company had $1.6 billion in uncommitted, unsecured borrowing facilities with affiliates.

At December 31, 2020 and December 31, 2019, the Company had derivative contracts with affiliates totaling $4.6 billion and $4.0 billion, respectively, in notional balances, with $14 million in net unrealized losses and $68 million in net unrealized gains at December 31, 2020 and December 31, 2019, 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, 2020 and December 31, 2019.

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Business Segments

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company has four reportable segments: Regional Bank, Global Corporate & Investment Banking - U.S. (previously 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. During the second quarter of 2020, certain customer relationships and associated deposits were transferred from Transaction Banking to Global Corporate & Investment Banking - U.S. Prior period results have been revised to conform to the current period presentation.

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, 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.

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 seven major business lines.

Consumer Banking serves consumers through 341 full-service branches, digital channels, call centers, ATMs and alliances with other financial institutions. It offers traditional banking products and services, including checking and other deposit accounts, residential mortgage loans, consumer loans, home equity lines of credit, credit cards, and bill and loan payment services.

Small Business serves small businesses with annual revenues up to $10 million through 341 full-service branches, digital channels, and call centers. Products and services include business and corporate deposit accounts, small business loans, branch direct loans, merchant services, and access to Wealth Markets and Consumer Banking.

Business Banking provides business and asset-based loans to clients across a wide range of industries with annual revenues from $10 million to $50 million. Products and services include checking and other deposit accounts, small business administration loans, and owner-occupied real estate loans. By working with the Company’s other segments, Business Banking clients also have access to global treasury management and capital markets solutions, trade finance, and foreign exchange, interest rate, and commodity risk management products, and Wealth Markets.

Commercial Banking provides commercial and asset-based loans to clients across a wide range of industries with annual revenues from $50 million to $2 billion. By working with the Company's other segments in a strategic and coordinated approach, Commercial Banking clients can engage in a fully integrated platform of products and services, including global treasury management, investment banking, corporate capital markets and advisory services, foreign exchange, interest rate, and commodity risk management products, and Wealth Markets.

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 also offers its clients global treasury management and capital markets solutions and foreign exchange, interest rate, and commodity risk management products.

Wealth Markets serves corporate, institutional, non-profit, and high-net worth and affluent individual clients. Capabilities include Wealth Planning and Trust & Estate Services; Investment Management through the Bank and 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 is a national online direct bank deposit platform offering consumer savings accounts and CD products with services provided through the online platform and a call center.

Global Corporate & Investment Banking - U.S.

Global Corporate & Investment Banking - U.S. 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). Global Corporate & Investment Banking - U.S. provides customers general corporate credit and structured credit services, including project finance, leasing and equipment finance, funds finance and asset-based finance. By working with the Company's other segments, Global Corporate & Investment Banking - U.S. 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, domestic and foreign debt and equity securities transactions, private placements, collateralized financings, and securities borrowing and lending 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 information 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 goodwill impairments recorded in the third quarters of 2020 and 2019; the elimination of the fully taxable-equivalent basis amount; and the difference between the marginal tax rate and the consolidated effective tax rate.

As of and for the Twelve Months Ended December 31, 2020:

(Dollars in millions)	Regional Bank		Global Corporate & Investment Banking - U.S.		Transaction Banking		MUSA		Other (1)		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,096	$	445	$	190	$	315	$	31	$	3,077
Noninterest income	470		461		36		437		1,501		2,905
Total revenue	2,566		906		226		752		1,532		5,982
Noninterest expense	2,039		509		173		524		1,776		5,021
(Reversal of) provision for credit losses	760		68		1		—		—		829
Income (loss) before income taxes and including noncontrolling interests	(233)		329		52		228		(244)		132
Income tax expense (benefit) (2)	(63)		27		10		56		(48)		(18)
Net income (loss) including noncontrolling interest	(170)		302		42		172		(196)		150
Deduct: net loss from noncontrolling interests	—		—		—		—		16		16
Net income (loss) attributable to MUAH	$	(170)	$	302	$	42	$	172	$	(180)	$	166
Total assets, end of period	$	65,940	$	23,260	$	182	$	32,714	$	45,750	$	167,846

(1)Other includes goodwill impairment. See Note 5 to these consolidated financial statements.

(2)Income tax expense (benefit) includes certain management accounting classification adjustments.

As of and for the Twelve Months Ended December 31, 2019:

(Dollars in millions)	Regional Bank		Global Corporate & Investment Banking - U.S.		Transaction Banking		MUSA		Other (1)		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,294	$	482	$	197	$	167	$	(47)	$	3,093
Noninterest income	520		371		39		384		1,391		2,705
Total revenue	2,814		853		236		551		1,344		5,798
Noninterest expense	2,130		505		188		476		2,916		6,215
(Reversal of) provision for credit losses	209		51		(2)		—		(6)		252
Income (loss) before income taxes and including noncontrolling interests	475		297		50		75		(1,566)		(669)
Income tax expense (benefit) (1)	93		19		19		18		(67)		82
Net income (loss) including noncontrolling interest	382		278		31		57		(1,499)		(751)
Deduct: net loss from noncontrolling interests	—		—		—		—		17		17
Net income (loss) attributable to MUAH	$	382	$	278	$	31	$	57	$	(1,482)	$	(734)
Total assets, end of period	$	74,980	$	20,681	$	756	$	34,455	$	39,938	$	170,810

(1)Other includes goodwill impairment. See Note 5 to these consolidated financial statements.

(2)Income tax expense (benefit) includes certain management accounting classification adjustments.

As of and for the Twelve Months Ended December 31, 2018:

(Dollars in millions)	Regional Bank		Global Corporate & Investment Banking - U.S.		Transaction Banking		MUSA		Other		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,195	$	471	$	207	$	200	$	234	$	3,307
Noninterest income	451		392		40		300		994		2,177
Total revenue	2,646		863		247		500		1,228		5,484
Noninterest expense	2,058		463		206		443		1,107		4,277
(Reversal of) provision for credit losses	65		48		(8)		—		1		106
Income (loss) before income taxes and including noncontrolling interests	523		352		49		57		120		1,101
Income tax expense (benefit) (1)	105		128		13		17		(211)		52
Net income (loss) including noncontrolling interest	418		224		36		40		331		1,049
Deduct: net loss from noncontrolling interests	—		—		—		—		24		24
Net income (loss) attributable to MUAH	$	418	$	224	$	36	$	40	$	355	$	1,073
Total assets, end of period	$	73,554	$	20,796	$	631	$	33,844	$	39,275	$	168,100

(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, 2020

Condensed Financial Information 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)	2020		2019
Assets
Cash and cash equivalents	$	583	$	840
Investments in and advances to subsidiaries
Bank subsidiary	18,731		18,103
Nonbank subsidiaries	5,011		4,770
Other assets	350		407
Total assets	$	24,675	$	24,120
Liabilities and Stockholders' Equity
Long-term debt	$	7,276	$	7,622
Other liabilities	210		218
Total liabilities	7,486		7,840
Stockholders' equity	17,189		16,280
Total liabilities and stockholders' equity	$	24,675	$	24,120

Condensed Statements of Income

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Income:
Dividends from subsidiaries:
Bank subsidiary	$	—	$	—	$	1,700
Nonbank subsidiaries	66		616		95
Interest income on advances to subsidiaries and deposits in bank	92		161		137
Rental Income	15		15		15
Total income	173		792		1,947
Expense:
Interest expense	141		251		194
Other expense	31		29		17
Total expense	172		280		211
Income (loss) before income taxes and equity in undistributed net income of subsidiaries	1		512		1,736
Income tax benefit	(18)		(24)		(13)
Income (loss) before equity in undistributed net income of subsidiaries	19		536		1,749
Equity in undistributed net income of subsidiaries less dividends received:
Bank subsidiary	(38)		(746)		(697)
Nonbank subsidiaries	185		(524)		21
Net Income (Loss)	$	166	$	(734)	$	1,073

Condensed Statements of Cash Flows

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Cash Flows from Operating Activities:
Net income	$	166	$	(734)	$	1,073
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed net income of subsidiaries less dividends received	(147)		1,270		676
Other, net	58		(743)		(9)
Net cash provided by (used in) operating activities	77		(207)		1,740
Cash Flows from Investing Activities:
Investments in and advances to subsidiaries	(564)		(1,585)		(2,612)
Repayment of investments in and advances to subsidiaries	584		1,634		2,411
Net cash used in investing activities	20		49		(201)
Cash Flows from Financing Activities:
Proceeds from advances from subsidiaries	—		—		—
Repayment of advances from subsidiaries	—		—		—
Proceeds from issuance of long-term debt	3,025		1,890		6,500
Repayment of long-term debt	(3,379)		(1,631)		(6,145)
Dividends paid	—		—		—
Share repurchase	—		—		(2,496)
Net cash provided by (used in) financing activities	(354)		259		(2,141)
Net increase (decrease) in cash and cash equivalents	(257)		101		(602)
Cash and cash equivalents at beginning of year	840		739		1,341
Cash and cash equivalents at end of year	$	583	$	840	$	739

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Summary of Significant Accounting Policies and Nature of Operations (Policies)

12 Months Ended

Dec. 31, 2020

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 "Loans and Allowance for Loan Losses"), goodwill impairment (Note 5 "Goodwill and Other Intangible Assets"), income taxes (Note 17 "Income Taxes"), and transfer pricing (Note 21 "Related Party Transactions").

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 are accounted for as collateralized financings. 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 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.

Other-than-Temporary Impairment

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 these 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, equity contracts, 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 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 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. However, unrealized losses on securities available for sale that we intend to sell, or if it is more likely than not that we will be required to sell, before recovery of the security's amortized cost basis are included in noninterest income. Credit losses on securities available for sale that we do not expect to sell and credit losses on securities held to maturity, if any, are recorded as discussed in "Allowance for Credit Losses" in this note.

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 based on the estimated lives of the securities 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.

Loans Held for Investment, Purchased Credit-Impaired Loans, Other Acquired Loans and Loans Held for Sale

Loans Held for Investment, 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. Interest income may be recognized on these nonaccrual loans, referred to as "Cash Basis Nonaccrual", only when payments are 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. Credit losses on TDR's are recorded as discussed in "Allowance for Credit Losses" in this note. 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.

On March 22, 2020, the federal bank regulatory agencies issued joint guidance advising that the agencies have confirmed with the staff of the FASB that short-term modifications due to COVID-19 made on a good faith basis to borrowers who were current prior to relief, are not TDRs. On March 27, 2020, the CARES Act, which provides relief from TDR classification for certain COVID-19-related loan modifications, was signed into law. The Company did not classify loan modifications, which were largely payment deferrals, that met the criteria under either the CARES Act or the criteria specified by the regulatory agencies as TDRs. At December 31, 2020, $1.0 billion of modified commercial loans and $1.4 billion of modified consumer loans were still in deferral and not classified as TDRs. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan.

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.

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. The Company provides lease financing to its customers as lessor. Direct financing 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.

Allowance for Loan Losses

Allowance for Credit Losses

Allowance for loan losses

Allowance for loan losses is a valuation account that is deducted from the assets’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management confirms the uncollectibility of a loan balance. Expected recoveries, if any, do not exceed the aggregate of amounts previously charged-off.

Management develops and documents its systematic methodology for determining the allowance by first dividing its portfolio into two segments - the commercial segment and consumer segment. The Company further divides its 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 and classes, the allowance estimate is provided to cover all credit losses expected in the loan portfolio.

The Company's methodology for estimating the allowance uses relevant available information relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made to account for differences between current and expected future conditions and those reflected in historical loss information. The allowance is measured on a collective basis when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis.

The collectively-assessed allowance methodology incorporated an economic forecast over a 36-month period when ASU 2016-13, Measurement of Credit Losses on Financial Instruments, was adopted as of January 1, 2020. Beyond the 36-month economic forecast, the allowance methodology reverted to average historical loss information on a straight-line basis over a 24-month period. However, the economic forecast was shortened to a 24-month period during the first quarter of 2020 due to heightened volatility and uncertainty in the economy due to the emergence of COVID-19. No change was made to the 24-month straight-line reversion to historical loss information. These timeframes are regularly reviewed and approved by management and may be adjusted if economic conditions warrant.

An expected loss approach is used to estimate the collectively-assessed allowance for both the commercial and consumer portfolio segments. Expected loss is calculated as the product of PD, LGD, and EAD modeled parameters that are projected on a monthly basis over the assets’ remaining contractual lives. The sum of each month’s expected loss calculation results in the collectively-assessed allowance estimate. Expected loss models use historical loss information and a variety of economic assumptions to estimate PD, LGD, and EAD. These models are tailored to different loan segments, classes and products by changing the economic variables or their weighting in the calculation used to estimate expected losses.

The allowance is an estimate of expected credit losses over the remaining contractual term of each asset. Expected prepayments are incorporated into the estimation of the EAD for each asset over the asset’s remaining term, which shortens the expected remaining term. Contractual term is not adjusted for expected extensions, renewals, and modifications unless management has a reasonable expectation that a TDR will be executed with a borrower. Credit cards do not have defined contractual terms. In order to estimate the expected credit losses on actively used revolving credit card balances, we make assumptions about expected payments and expected spending on the unconditionally cancelable unfunded amount at the measurement date. Expected spending after the measurement date reduces the expected payments that are allocated to

the outstanding balance at the measurement date. Expected credit losses are calculated only on the outstanding balances component at the measurement date, which is amortized by applying the proportion of the expected payment allocated to the outstanding balance. Expected payments applied to the expected spending after the measurement date are excluded from the analysis because unconditionally cancelable unfunded commitments are not reservable.

Loans that do not share risk characteristics are evaluated individually to determine the allowance. Loans assessed individually include larger nonaccruing loans within the commercial portfolio, TDRs, reasonably expected TDRs and collateral-dependent loans. Collateral-dependent loans are generally individually-assessed for allowance purposes. Collateral-dependent assets' expected credit losses are assessed when the fair value of the collateral is less than the amortized cost basis of the asset. Collateral-dependent assets are evaluated in this manner when foreclosure is probable, or when repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. Estimated costs to sell are included in the estimate when repayment is expected by the sale of the collateral. Collateral-dependent assets are generally secured by real estate collateral. When the discounted cash flow method is used to determine the allowance for individually-assessed loans, management does not adjust the interest rate used to discount expected cash flows to incorporate expected prepayments.

Management implements qualitative adjustments to the collectively-assessed allowance to account for the risks not incorporated in the model between current conditions and those reflected in the historical loss information used to estimate the models. These qualitative factors include changes in credit policies, problem loan trends, identification of new risks not incorporated into the modeling framework, credit concentrations, changes in lending management and other external factors. Qualitative adjustments are also used to adjust the collectively-assessed allowance to account for risks attributed to imprecision in the economic forecast and when risks emerge that impact specific portfolio components (i.e., natural disasters).

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' allowance is measured either individually or in pools with similar risk characteristics. The allowance for a TDR loan is measured using the same method as all other loans when evaluated in pools. The allowance for individually assessed TDR loans is measured using a discounted cash flow methodology, or by evaluating the fair value of the collateral, if collateral dependent. When the value of a concession cannot be measured using a method other than the discounted cash flow method, the value of a concession is measured by discounting the expected future cash flows at the original interest rate of the loan. When we have a reasonable expectation that a TDR loan may be executed with a borrower at the evaluation date, we may modify the allowance calculation to align with the expected modification terms, which may include modifying the expected contractual term.

We generally do not record an allowance for accrued interest receivable on loans held for investment, which is included in other assets on the consolidated balance sheet. Uncollectible accrued interest is generally reversed through interest income.

Allowance for Credit Losses on Debt Securities

The Company's debt securities generally are explicitly or implicitly guaranteed by U.S. government entities or agencies or are non-agency-backed assets that are highly rated and have not incurred credit losses historically. No credit losses are expected on these assets and thus no allowance is estimated on these debt securities.

Allowance for Credit Losses on Securities Borrowed or Purchased under Resale Agreements

Securities borrowed or purchased under resale agreements are subject to allowance estimation, however management has no history of credit losses on these assets and has portfolio monitoring practices that ensure collateral is maintained at appropriate levels. As borrowers have a history of replenishing collateral securing the financial assets, when needed, and are expected to continue to maintain such behavior in the future, no allowance is estimated on these assets.

Allowance for Credit Losses on Unfunded Credit Commitments

The Company maintains an allowance for losses on unfunded credit commitments for the contractual term over which we are exposed to credit risk that is not unconditionally cancelable by the Company. The Company's allowance methodology for unfunded credit commitments is the same as that used for the allowance for the other collectively-evaluated assets and includes an estimate of commitments that are expected to fund over the remaining contractual term. The allowance for losses on unfunded credit commitments is classified as other liabilities on the balance sheet, with changes recognized in the provision for credit losses.

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 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. Intangible assets that have indefinite lives are tested for impairment at least annually, and more frequently in certain circumstances.

The Company has elected to account for its residential mortgage servicing rights using the fair value measurement method. Under the fair value measurement method, residential mortgage servicing rights are measured at estimated fair value each period with changes in fair value included in other, net within noninterest income.

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 impairment test by comparing the fair value of the reporting unit to its carrying amount, including goodwill. A goodwill impairment loss is 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. 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 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, changes in the fair value of the derivative instrument are recorded in earnings together with the change in fair value of the hedged item. For cash flow hedges, changes in the fair value of the derivative instrument are 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.

Revenues from Contracts with Customers

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

Transfer Pricing

Employees of the Company perform management and support services for 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

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

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 in earnings.

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. For combinations between entities under common control, assets and liabilities acquired are recorded at book value at the transfer date.

Recently Issued Accounting Pronouncements

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provided new guidance on the accounting for credit losses for instruments that are within its scope. This new guidance is commonly referred to as the 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 by incorporating forward-looking information, such as reasonable and supportable forecasts, in the entity's assessment of the collectability of financial assets. Lifetime expected credit losses on purchased financial assets with credit deterioration are recognized as an allowance with an offset to the cost basis of the asset. For debt securities available for sale, the new standard requires 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 Company adopted the ASU on January 1, 2020, and recorded an increase to the allowance for credit losses of $199 million, primarily due to an increase in the allowance for consumer loans, offset by a $52 million deferred tax asset, and a $147 million cumulative-effect adjustment reduction to retained earnings.

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 Company adopted the ASU on January 1, 2020. The guidance only affects disclosures in Notes to Consolidated Financial Statements and did not affect the Company’s financial position or results of operations.

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Securities (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities

he amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale for December 31, 2020 and 2019 are presented below.

	December 31, 2020								December 31, 2019
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury and government agencies	$	4,273	$	202	$	2	$	4,473	$	5,485	$	6	$	53	$	5,438
Mortgage-backed:
U.S. agencies	5,843		81		2		5,922		5,491		13		36		5,468
Residential - non-agency	539		2		2		539		759		5		2		762
Commercial - non-agency	4,212		286		9		4,489		3,461		56		28		3,489
Collateralized loan obligations	1,370		1		4		1,367		1,499		—		8		1,491
Direct bank purchase bonds	891		46		7		930		911		43		18		936
Other	532		7		—		539		202		3		—		205
Total securities available for sale	$	17,660	$	625	$	26	$	18,259	$	17,808	$	126	$	145	$	17,789

Securities in Unrealized Loss Position

The Company's securities available for sale with a continuous unrealized loss position at December 31, 2020 and 2019 are shown below, identified for periods less than 12 months and 12 months or more.

	December 31, 2020
	Less Than 12 Months				12 Months or More				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury and government agencies	$	635	$	2	$	—	$	—	$	635	$	2
Mortgage-backed:
U.S. agencies	43		—		732		2		775		2
Residential - non-agency	275		2		15		—		290		2
Commercial - non-agency	354		9		25		—		379		9
Collateralized loan obligations	593		1		477		3		1,070		4
Direct bank purchase bonds	26		1		197		6		223		7
Other	—		—		—		—		—		—
Total securities available for sale	$	1,926	$	15	$	1,446	$	11	$	3,372	$	26

	December 31, 2019
	Less Than 12 Months				12 Months or More				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury and government agencies	$	4,407	$	48	$	543	$	5	$	4,950	$	53
Mortgage-backed:
U.S. agencies	914		4		2,769		32		3,683		36
Residential - non-agency	127		—		155		2		282		2
Commercial - non-agency	1,669		28		12		—		1,681		28
Collateralized loan obligations	597		2		790		6		1,387		8
Direct bank purchase bonds	118		1		294		17		412		18
Other	25		—		—		—		25		—
Total securities available for sale	$	7,857	$	83	$	4,563	$	62	$	12,420	$	145

The Company's securities held to maturity with a continuous unrealized loss position at December 31, 2020 and 2019 are shown below, separately for periods less than 12 months and 12 months or more.

	December 31, 2020
	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 and government agencies	$	1,267	$	—	$	27	$	—	$	—	$	—	$	1,267	$	—	$	27
Mortgage-backed:
U.S. agencies	65		—		—		2,472		66		—		2,537		66		—
Total securities held to maturity	$	1,332	$	—	$	27	$	2,472	$	66	$	—	$	3,804	$	66	$	27

	December 31, 2019
	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 and government agencies	$	509	$	—	$	6	$	—	$	—	$	—	$	509	$	—	$	6
Mortgage-backed:
U.S. agencies	1,084		—		9		4,515		104		21		5,599		104		30
Total securities held to maturity	$	1,593	$	—	$	15	$	4,515	$	104	$	21	$	6,108	$	104	$	36

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, 2020
(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
U.S. Treasury and government agencies	$	—	$	157	$	4,155	$	161	$	4,473
Mortgage-backed:
U.S. agencies	—		65		927		4,930		5,922
Residential - non-agency	—		—		4		535		539
Commercial - non-agency	—		—		1,774		2,715		4,489
Collateralized loan obligations	—		2		945		420		1,367
Direct bank purchase bonds	94		411		350		75		930
Other	10		180		349		—		539
Total securities available for sale	$	104	$	815	$	8,504	$	8,836	$	18,259

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, 2020
	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 and government agencies	$	—	$	—	$	—	$	—	$	441	$	457	$	1,819	$	1,798	$	2,260	$	2,255
Mortgage-backed:
U.S. agencies	—		—		619		641		655		688		3,777		3,948		5,051		5,277
Total securities held to maturity	$	—	$	—	$	619	$	641	$	1,096	$	1,145	$	5,596	$	5,746	$	7,311	$	7,532

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, 2020, 2019 and 2018 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)	2020		2019		2018
Gross realized gains	$	144	$	39	$	8

Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values

At December 31, 2020 and 2019, 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, 2020
			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 and government agencies	$	2,260	$	—	$	—	$	2,260	$	22	$	27	$	2,255
Mortgage-backed:
U.S. agencies	5,116		1		66		5,051		226		—		5,277
Total securities held to maturity	$	7,376	$	1	$	66	$	7,311	$	248	$	27	$	7,532

	December 31, 2019
			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 and government agencies	$	1,359	$	—	$	—	$	1,359	$	—	$	6	$	1,353
Mortgage-backed:
U.S. agencies	8,166		—		104		8,062		123		30		8,155
Total securities held to maturity	$	9,525	$	—	$	104	$	9,421	$	123	$	36	$	9,508

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Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Summary of Loans

The following table provides the outstanding balances of loans held for investment at December 31, 2020 and 2019.

(Dollars in millions)	December 31, 2020		December 31, 2019
Loans held for investment:
Commercial and industrial	$	31,212	$	26,338
Commercial mortgage	16,244		16,895
Construction	1,655		1,511
Lease financing	1,038		1,001
Total commercial portfolio	50,149		45,745
Residential mortgage and home equity(1)	29,034		38,018
Other consumer(2)	2,983		4,450
Total consumer portfolio	32,017		42,468
Total loans held for investment(3)	82,166		88,213
Allowance for loan losses	(1,273)		(538)
Loans held for investment, net	$	80,893	$	87,675

(1)Includes home equity loans of $1,590 million and $2,049 million at December 31, 2020 and December 31, 2019, respectively.

(2)Other consumer loans substantially include unsecured consumer loans and consumer credit cards.

(3)Includes $127 million and $320 million

Reconciliation of Changes in Allowance for Loan Losses by Portfolio Segment

	For the Year Ended December 31, 2020
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses, beginning of period	$	354	$	184	$	—	$	538
Cumulative effect adjustment from adoption of ASU 2016-13 (1)	76		153		—		229
Allowance for loan losses, beginning of period, adjusted for adoption of ASU 2016-13 (1)	430		337		—		767
(Reversal of) provision for loan losses	617		226		—		843
Loans charged-off	(221)		(157)		—		(378)
Recoveries of loans previously charged-off	25		16		—		41
Allowance for loan losses, end of period	$	851	$	422	$	—	$	1,273

(1)For further information see Note 1 to these consolidated financial statements.

	For the Year Ended December 31, 2019
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses, beginning of period	$	359	$	110	$	5	$	474
(Reversal of) provision for loan losses	124		164		(5)		283
Loans charged-off	(158)		(98)		—		(256)
Recoveries of loans previously charged-off	29		8		—		37
Allowance for loan losses, end of period	$	354	$	184	$	—	$	538

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, 2019.

	December 31, 2019
(Dollars in millions)	Commercial		Consumer		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	43	$	12	$	—	$	55
Collectively evaluated for impairment	311		172		—		483
Total allowance for loan losses	$	354	$	184	$	—	$	538
Loans held for investment:
Individually evaluated for impairment	$	436	$	246	$	—	$	682
Collectively evaluated for impairment	45,309		42,222		—		87,531
Total loans held for investment	$	45,745	$	42,468	$	—	$	88,213

Summary of Nonaccrual Loans

The following table presents nonaccrual loans as of December 31, 2020 and 2019. The nonaccrual loans all have related allowance for credit losses accrued as of December 31, 2020.

(Dollars in millions)	December 31, 2020		December 31, 2019
Commercial and industrial	$	182	$	175
Commercial mortgage	317		15
Construction	28		—
Total commercial portfolio	527		190
Residential mortgage and home equity	183		137
Other consumer	1		1
Total consumer portfolio	184		138
Total nonaccrual loans	$	711	$	328
Troubled debt restructured loans that continue to accrue interest	$	212	$	392
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)	$	279	$	171

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, 2020 and 2019.

	December 31, 2020
	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	$	32,101	$	76	$	73	$	149	$	32,250
Commercial mortgage	15,983		128		133		261		16,244
Construction	1,634		21		—		21		1,655
Total commercial portfolio	49,718		225		206		431		50,149
Residential mortgage and home equity	28,815		156		63		219		29,034
Other consumer	2,943		26		14		40		2,983
Total consumer portfolio	31,758		182		77		259		32,017
Total loans held for investment	$	81,476	$	407	$	283	$	690	$	82,166

	December 31, 2019
	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	$	27,241	$	37	$	61	$	98	$	27,339
Commercial mortgage	16,858		34		3		37		16,895
Construction	1,511		—		—		—		1,511
Total commercial portfolio	45,610		71		64		135		45,745
Residential mortgage and home equity	37,788		179		51		230		38,018
Other consumer	4,400		33		17		50		4,450
Total consumer portfolio	42,188		212		68		280		42,468
Total loans held for investment	$	87,798	$	283	$	132	$	415	$	88,213

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, 2020
	Non-Revolving Loans at Amortized Cost by Origination Year																		Revolving Loans			Total
(Dollars in millions)	2020			2019			2018			2017			2016			Prior
Commercial and industrial:
Pass	$	6,444		$	2,207		$	1,592		$	990		$	697		$	1,477		$	15,693		$	29,100
Criticized:
Special Mention	30			182			128			64			30			96			724			1,254
Classified	79			76			155			41			1			35			471			858
Total	6,553			2,465			1,875			1,095			728			1,608			16,888			31,212
Commercial mortgage:
Pass	1,636			3,730			2,778			1,708			1,527			3,180			65			14,624
Criticized:
Special Mention	16			109			245			44			54			194			15			677
Classified	1			102			351			8			69			412			—			943
Total	1,653			3,941			3,374			1,760			1,650			3,786			80			16,244
Construction:
Pass	305			717			321			74			—			2			24			1,443
Criticized:
Special Mention	1			12			108			36			8			—			—			165
Classified	—			—			21			9			—			17			—			47
Total	306			729			450			119			8			19			24			1,655
Lease financing:
Pass	387			140			1			—			48			462			—			1,038
Criticized:
Special Mention	—			—			—			—			—			—			—			—
Classified	—			—			—			—			—			—			—			—
Total	387			140			1			—			48			462			—			1,038
Total commercial portfolio	$	8,899		$	7,275		$	5,700		$	2,974		$	2,434		$	5,875		$	16,992		$	50,149
Percentage of total	17		%	15		%	11		%	6		%	5		%	12		%	34		%	100		%

	December 31, 2019
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	26,210	$	636	$	493	$	27,339
Commercial mortgage	16,569		114		212		16,895
Construction	1,399		50		62		1,511
Total commercial portfolio	$	44,178	$	800	$	767	$	45,745

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 $3 million of loans covered by FDIC loss share agreements at December 31, 2019.

Payment Status	December 31, 2020
	Non-Revolving Loans at Amortized Cost by Origination Year																		Revolving Loans			Total
(Dollars in millions)	2020			2019			2018			2017			2016			Prior
Residential mortgage and home equity:
Accrual	$	4,067		$	4,284		$	2,738		$	5,354		$	5,027		$	6,363		$	1,018		$	28,851
Nonaccrual	—			7			5			11			10			142			8			183
Total	4,067			4,291			2,743			5,365			5,037			6,505			1,026			29,034
Other consumer:
Accrual	606			1,639			421			29			3			31			253			2,982
Nonaccrual	—			—			—			—			—			1			—			1
Total	606			1,639			421			29			3			32			253			2,983
Total consumer portfolio	$	4,673		$	5,930		$	3,164		$	5,394		$	5,040		$	6,537		$	1,279		$	32,017
Percentage of total	15		%	18		%	10		%	17		%	16		%	20		%	4		%	100		%

	December 31, 2019
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage and home equity	$	37,878	$	137	$	38,015
Other consumer	4,449		1		4,450
Total consumer portfolio	$	42,327	$	138	$	42,465

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, 2020 and 2019. The December 31, 2019 amounts presented reflect unpaid principal balances less partial charge-offs.

FICO Scores	December 31, 2020
	Non-Revolving Loans by Origination Year																		Revolving Loans			Total
(Dollars in millions)	2020			2019			2018			2017			2016			Prior
Residential mortgage and home equity:
720 and Above	$	3,623		$	3,796		$	2,265		$	4,527		$	4,390		$	5,083		$	821		$	24,505
Below 720	419			477			460			762			609			1,121			192			4,040
No FICO Available(1)	25			18			18			76			38			301			13			489
Total	4,067			4,291			2,743			5,365			5,037			6,505			1,026			29,034
Other consumer loans:
720 and Above	392			967			258			18			2			5			120			1,762
Below 720	214			672			163			11			1			2			131			1,194
No FICO Available(1)	—			—			—			—			—			25			2			27
Total	606			1,639			421			29			3			32			253			2,983
Total consumer portfolio	$	4,673		$	5,930		$	3,164		$	5,394		$	5,040		$	6,537		$	1,279		$	32,017
Percentage of total	15		%	18		%	10		%	17		%	16		%	20		%	4		%	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, 2019
	FICO scores
(Dollars in millions)	720 and Above			Below 720			No FICO Available(1)			Total
Residential mortgage and home equity	$	31,441		$	5,742		$	454		$	37,637
Other consumer	2,567			1,841			3			4,411
Total consumer portfolio	$	34,008		$	7,583		$	457		$	42,048
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).

LTV Ratios	December 31, 2020
	Non-Revolving Loans by Origination Year																		Revolving Loans			Total
(Dollars in millions)	2020			2019			2018			2017			2016			Prior
Residential mortgage and home equity:
80% or below	$	3,924		$	4,157		$	2,631		$	5,339		$	5,032		$	6,455		$	961		$	28,499
80% to 100%	139			133			111			25			4			23			61			496
100% or more	—			—			—			—			—			2			—			2
No LTV Available(1)	4			1			1			1			1			25			4			37
Total	4,067			4,291			2,743			5,365			5,037			6,505			1,026			29,034
Total consumer portfolio	$	4,067		$	4,291		$	2,743		$	5,365		$	5,037		$	6,505		$	1,026		$	29,034
Percentage of total	14		%	15		%	9		%	18		%	17		%	23		%	4		%	100		%

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

	December 31, 2019
	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 and home equity	$	35,893		$	1,689		$	12		$	43		$	37,637
Total consumer portfolio	$	35,893		$	1,689		$	12		$	43		$	37,637
Percentage of total	95		%	5		%	—		%	—		%	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, 2020 and 2019. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $24 million and $61 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of December 31, 2020 and 2019, respectively.

(Dollars in millions)	December 31, 2020		December 31, 2019
Commercial and industrial	$	73	$	140
Commercial mortgage	140		168
Construction	28		62
Total commercial portfolio	241		370
Residential mortgage and home equity	248		192
Other consumer	2		1
Total consumer portfolio	250		193
Total restructured loans	$	491	$	563

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, 2020 and 2019.

	For the Year Ended December 31, 2020				For the Year Ended December 31, 2019
(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	$	108	$	107	$	170	$	172
Commercial mortgage	4		5		129		125
Total commercial portfolio	112		112		299		297
Residential mortgage and home equity	100		100		11		11
Total consumer portfolio	100		100		11		11
Total	$	212	$	212	$	310	$	308

Recorded Investment Amounts of Troubled Debt Restructurings

The following table provides the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the years ended December 31, 2020 and 2019, 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.

(Dollars in millions)	For the Year Ended December 31, 2020		For the Year Ended December 31, 2019
Commercial and industrial	$	29	$	40
Commercial mortgage	1		1
Total commercial portfolio	30		41
Residential mortgage and home equity	1		1
Total consumer portfolio	1		1
Total	$	31	$	42

Information about Impaired Loans by Class

Average Investment in Impaired Loans and Interest Income Recognized for Impaired Loans

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill during 2020 and 2019 are shown in the table below.

(Dollars in millions)	Regional Bank		Global Corporate & Investment Banking - U.S.		Transaction Banking		MUFG Fund Services		Total
Goodwill, December 31, 2018	$	2,134	$	840	$	251	$	76	$	3,301
Goodwill acquired during the year	59		18		—		—		77
Impairment losses	(1,423)		(191)		—		—		(1,614)
Goodwill, December 31, 2019
Goodwill	2,193		858		251		76		3,378
Accumulated impairment losses	(1,423)		(191)		—		—		(1,614)
	770		667		251		76		1,764
Transfers	—		86		(86)		—		—
Impairment losses	(87)		(270)		—		—		(357)
Goodwill, December 31, 2020
Goodwill	2,193		944		165		76		3,378
Accumulated impairment losses	(1,510)		(461)		—		—		(1,971)
	$	683	$	483	$	165	$	76	$	1,407

Identifiable Intangible Assets and Accumulated Amortization

The table below reflects the Company's identifiable intangible assets and accumulated amortization at December 31, 2020 and 2019.

	December 31, 2020						December 31, 2019
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangibles	$	565	$	(547)	$	18	$	565	$	(543)	$	22
Trade names	115		(38)		77		115		(35)		80
Customer relationships	198		(91)		107		238		(79)		159
Other(1)	13		(13)		—		13		(13)		—
Total intangible assets with a definite useful life	$	891	$	(689)	$	202	$	931	$	(670)	$	261

Estimated Future Amortization Expense

Estimated future amortization expense at December 31, 2020 is as follows:

(Dollars in millions)	Core Deposit Intangibles		Trade Name		Customer Relationships		Total Identifiable Intangible Assets
Years ending December 31, :
2021	$	4	$	3	$	9	$	16
2022	4		3		9		16
2023	2		3		8		13
2024	2		3		8		13
2025	2		3		7		12
Thereafter	4		62		66		132
Total estimated amortization expense	$	18	$	77	$	107	$	202

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Other Assets (Tables)

12 Months Ended

Dec. 31, 2020

Other Assets [Abstract]

Schedule of other assets

The following table shows the balances of other assets as of December 31, 2020 and 2019.

(Dollars in millions)	December 31, 2020		December 31, 2019
Other investments	$	2,721	$	3,033
Premises and equipment, net	650		656
Software	607		527
Intangible assets	313		531
Other	5,625		5,453
Total other assets	$	9,916	$	10,200

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Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020, 2019 and 2018:

	For the Years Ended December 31,
	2020		2019		2018
(Dollars in millions)
Losses from LIHC investments included in other noninterest expense	$	4	$	6	$	7
Amortization of LIHC investments included in income tax expense	124		130		136
Tax credits and other tax benefits from LIHC investments included in income tax expense	156		178		180

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, 2020 and 2019.

	December 31, 2020
	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	$	—	$	—	$	81	$	81	$	16	$	16
Leasing investments	—		310		111		421		5		5
Total consolidated VIEs	$	—	$	310	$	192	$	502	$	21	$	21

	December 31, 2019
	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	$	—	$	—	$	96	$	96	$	36	$	36
Leasing investments	—		349		117		466		9		9
Total consolidated VIEs	$	—	$	349	$	213	$	562	$	45	$	45

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, 2020 and 2019. 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 2020, 2019, and 2018, the Company had noncash increases in unfunded commitments on LIHC investments of $79 million, $43 million and $87 million, respectively, included within other liabilities.

	December 31, 2020
	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	$	—	$	26	$	256	$	831	$	1,113	$	209	$	209	$	1,113
Renewable energy investments	—		—		—		1,215		1,215		—		—		1,235
Other investments	—		—		—		88		88		4		4		187
Total unconsolidated VIEs	$	—	$	26	$	256	$	2,134	$	2,416	$	213	$	213	$	2,535

	December 31, 2019
	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	$	—	$	27	$	219	$	872	$	1,118	$	148	$	148	$	1,118
Renewable energy investments	—		—		—		1,256		1,256		—		—		1,276
Other investments	—		—		13		69		82		4		4		163
Total unconsolidated VIEs	$	—	$	27	$	232	$	2,197	$	2,456	$	152	$	152	$	2,557

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Deposits (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020
Due in one year or less	$	6,677
Due after one year through two years	549
Due after two years through three years	83
Due after three years through four years	76
Due after four years through five years	34
Due after five years	—
Total	$	7,419

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Securities Financing Agreements (Tables)

12 Months Ended

Dec. 31, 2020

Transfers and Servicing [Abstract]

Secured Borrowings by Contractual Maturity and Class of Collateral Pledged

he following table presents 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, 2020 and December 31, 2019.

	December 31, 2020										December 31, 2019
(Dollars in millions)	Overnight and Continuous		Up to 30 Days		31 - 90 Days		Greater than 90 Days		Total		Overnight and Continuous		Up to 30 Days		31 - 90 Days		Greater than 90 Days		Total
Securities sold under agreements to repurchase:
U.S. Treasury and government agencies	$	—	$	14,642	$	296	$	—	$	14,938	$	12,219	$	2,237	$	385	$	102	$	14,943
Mortgage-backed:
U.S. agencies	—		8,069		5,465		—		13,534		5,322		1,582		7,126		—		14,030
Corporate debt	—		676		756		—		1,432		688		24		1,161		—		1,873
Other debt	—		401		377		—		778		327		—		533		—		860
Equity	—		1,377		1,067		—		2,444		1,400		349		456		—		2,205
Total	$	—	$	25,165	$	7,961	$	—	$	33,126	$	19,956	$	4,192	$	9,661	$	102	$	33,911
Securities loaned:
Corporate bonds	$	1	$	—	$	—	$	—	$	1	$	2	$	—	$	—	$	—	$	2
Other debt	11		—		241		—		252		—		—		—		—		—
Equity	366		243		—		—		609		257		236		—		—		493
Total	$	378	$	243	$	241	$	—	$	862	$	259	$	236	$	—	$	—	$	495

Offsetting Liabilities

The following tables present the offsetting of financial assets and liabilities as of December 31, 2020 and December 31, 2019.

	December 31, 2020
							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	$	2,313	$	432	$	1,881	$	38	$	—	$	1,843
Securities borrowed or purchased under resale agreements	24,435		6,827		17,608		17,539		—		69
Total	$	26,748	$	7,259	$	19,489	$	17,577	$	—	$	1,912
Financial Liabilities:
Derivative liabilities	$	1,029	$	675	$	354	$	174	$	—	$	180
Securities loaned or sold under repurchase agreements	33,988		6,827		27,161		26,063		—		1,098
Total	$	35,017	$	7,502	$	27,515	$	26,237	$	—	$	1,278

	December 31, 2019
							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	$	1,233	$	264	$	969	$	26	$	—	$	943
Securities borrowed or purchased under resale agreements	29,483		5,540		23,943		23,844		—		99
Total	$	30,716	$	5,804	$	24,912	$	23,870	$	—	$	1,042
Financial Liabilities:
Derivative liabilities	$	523	$	306	$	217	$	129	$	1	$	87
Securities loaned or sold under repurchase agreements	34,406		5,540		28,866		27,957		—		909
Total	$	34,929	$	5,846	$	29,083	$	28,086	$	1	$	996

Offsetting Assets

The following tables present the offsetting of financial assets and liabilities as of December 31, 2020 and December 31, 2019.

	December 31, 2020
							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	$	2,313	$	432	$	1,881	$	38	$	—	$	1,843
Securities borrowed or purchased under resale agreements	24,435		6,827		17,608		17,539		—		69
Total	$	26,748	$	7,259	$	19,489	$	17,577	$	—	$	1,912
Financial Liabilities:
Derivative liabilities	$	1,029	$	675	$	354	$	174	$	—	$	180
Securities loaned or sold under repurchase agreements	33,988		6,827		27,161		26,063		—		1,098
Total	$	35,017	$	7,502	$	27,515	$	26,237	$	—	$	1,278

	December 31, 2019
							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	$	1,233	$	264	$	969	$	26	$	—	$	943
Securities borrowed or purchased under resale agreements	29,483		5,540		23,943		23,844		—		99
Total	$	30,716	$	5,804	$	24,912	$	23,870	$	—	$	1,042
Financial Liabilities:
Derivative liabilities	$	523	$	306	$	217	$	129	$	1	$	87
Securities loaned or sold under repurchase agreements	34,406		5,540		28,866		27,957		—		909
Total	$	34,929	$	5,846	$	29,083	$	28,086	$	1	$	996

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Commercial Paper and Other Short-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020		December 31, 2019
Debt issued by MUB
Commercial paper, with a weighted average interest rate of 0.16% and 1.98% at December 31, 2020 and December 31, 2019, respectively	$	23	$	58
Federal Home Loan Bank advances, with a weighted average interest rate of 1.86% at December 31, 2019	—		6,100
Total debt issued by MUB	23		6,158
Debt issued by other MUAH subsidiaries
Short-term debt due to MUFG Bank, Ltd., with weighted average interest rates of 0.60% and 2.27% at December 31, 2020 and December 31, 2019, respectively	9		69
Short-term debt due to affiliates, with weighted average interest rates of (-0.08)% and (-0.10)% at December 31, 2020 and December 31, 2019, respectively	78		257
Total debt issued by other MUAH subsidiaries	87		326
Total commercial paper and other short-term borrowings	$	110	$	6,484

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Summary of Long-Term Debt

(Dollars in millions)	December 31, 2020		December 31, 2019
Debt issued by MUAH
Senior debt:
Fixed rate 3.50% notes due June 2022	$	399	$	399
Fixed rate 3.00% notes due February 2025	398		397
Senior debt due to MUFG Bank, Ltd:
Floating rate debt due December 2022. This note, which bore interest at 0.90% above 3-month LIBOR, had a rate of 3.03% at December 31, 2019	—		3,250
Floating rate debt due December 2022. This note, which bore interest at 0.97% above 3-month LIBOR, had a rate of 3.07% at December 31, 2019	—		125
Floating rate debt due December 2023. This note, which bears interest at 0.99% above 3-month LIBOR, had a rate of 1.23% at December 31, 2020 and 3.12% at December 31, 2019	1,625		1,625
Floating rate debt due December 2023. This note, which bears interest at 0.94% above 3-month LIBOR, had a rate of 1.15% at December 31, 2020 and 2.82% at December 31, 2019	1,765		1,765
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, 2020 and 0.76% at December 31, 2019	27		24
Floating rate debt due March 2024. This note, which bears interest at 0.76% above 3-month LIBOR, had a rate of 0.98% at December 31, 2020	775		—
Floating rate debt due June 2024. This note, which bears interest at 0.79% above 3-month LIBOR, had a rate of 1.00% at December 31, 2020	750		—
Floating rate debt due September 2024. This note, which bears interest at 0.82% above 3-month LIBOR, had a rate of 1.03% at December 31, 2020	750		—
Floating rate debt due December 2024. This note, which bears interest at 0.84% above 3-month LIBOR, had a rate of 1.06% at December 31, 2020	750		—
Junior subordinated debt payable to trusts:
Floating rate note due September 2036. This note had an interest rate of 1.92% at December 31, 2020 and 3.59% at December 31, 2019	37		37
Total debt issued by MUAH	7,276		7,622
Debt issued by MUB
Senior debt:
Fixed rate 2.10% notes due December 2022.	699		698
Floating rate debt due December 2022. These notes which bear interest at 0.71% above the Secured Overnight Financing Rate had a rate of 0.78% at December 31, 2020 and 2.26% at December 31, 2019	300		300
Floating rate debt due March 2022. This note, which bears interest at 0.60% above 3-month LIBOR, had a rate of 0.83% at December 31, 2020 and 2.49% at December 31, 2019	300		300
Variable rate FHLB of San Francisco advances due November 2020. These notes had a combined weighted average rate of 1.90% at December 31, 2019	—		1,100
Fixed rate 3.15% notes due April 2022	998		998
Fixed rate FHLB of San Francisco advances due between November 2021 and April 2025. These notes bear a combined weighted average rate of 2.76% at December 31, 2020 and 2.95% at December 31, 2019	4,575		5,500
Other	12		13
Total debt issued by MUB	6,884		8,909
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 bore interest above 3-month LIBOR had a weighted average interest rate of 1.94% at December 31, 2019	—		250
Various fixed rate borrowings due between January 2021 and September 2027 with a weighted average interest rate of 1.48% (between 1.23% and 2.44%) at December 31, 2020 and 2.22% (between 1.68% and 2.44%) at December 31, 2019	323		137
Non-recourse debt due to MUFG Bank, Ltd:
Various floating rate non-recourse borrowings due December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted average interest rate of 0.51% at December 31, 2020 and 2.17% at December 31, 2019	3		3
Fixed rate non-recourse borrowings due between March 2021 and July 2023 which had an interest rate of 3.15% (between 1.96% and 3.72%) at December 31, 2020 and 3.07% (between 1.96% and 3.72%) at December 31, 2019	119		166
Other non-recourse debt:
Various floating rate non-recourse borrowings due December 2023. These notes, which bore interest above 1- or 3-month LIBOR, had a weighted average interest rate of 3.93% at December 31, 2019	—		13
Fixed rate non-recourse borrowings due December 2026 which had an interest rate of 5.34% at December 31, 2020 and 5.34% December 31, 2019	26		29
Total debt issued by other MUAH subsidiaries	471		598
Total long-term debt	$	14,631	$	17,129

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Fair Value Measurement and Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019, by major category and by valuation hierarchy level.

	December 31, 2020															December 31, 2019
(Dollars in millions)	Level 1			Level 2			Level 3			Netting(1)			Fair Value			Level 1			Level 2			Level 3			Netting(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury and government agencies	$	—		$	3,118		$	—		$	—		$	3,118		$	—		$	2,393		$	—		$	—		$	2,393
Mortgage-backed:
U.S. agencies	—			8,936			—			—			8,936			—			5,376			—			—			5,376
Corporate debt	—			838			—			—			838			—			1,212			—			—			1,212
Other debt	—			354			—			—			354			—			306			—			—			306
Equity	925			—			—			—			925			127			—			—			—			127
Derivative contracts	20			2,277			1			(431)			1,867			16			1,195			8			(256)			963
Total trading account assets	945			15,523			1			(431)			16,038			143			10,482			8			(256)			10,377
Securities available for sale:
U.S. Treasury and government agencies	—			4,473			—			—			4,473			—			5,438			—			—			5,438
Mortgage-backed:
U.S. agencies	—			5,922			—			—			5,922			—			5,468			—			—			5,468
Residential - non-agency	—			539			—			—			539			—			762			—			—			762
Commercial - non-agency	—			4,473			16			—			4,489			—			3,471			18			—			3,489
Collateralized loan obligations	—			1,367			—			—			1,367			—			1,491			—			—			1,491
Direct bank purchase bonds	—			—			930			—			930			—			—			936			—			936
Other	—			11			528			—			539			—			28			177			—			205
Total securities available for sale	—			16,785			1,474			—			18,259			—			16,658			1,131			—			17,789
Other assets:
Mortgage servicing rights	—			—			110			—			110			—			—			270			—			270
Loans held for sale	—			—			43			—			43			—			—			42			—			42
Derivative contracts	—			2			13			(1)			14			—			10			4			(8)			6
Equity securities	20			—			—			—			20			10			—			—			—			10
Total other assets	20			2			166			(1)			187			10			10			316			(8)			328
Total assets	$	965		$	32,310		$	1,641		$	(432)		$	34,484		$	153		$	27,150		$	1,455		$	(264)		$	28,494
Percentage of total	3		%	93		%	5		%	(1)		%	100		%	1		%	95		%	5		%	(1)		%	100		%
Percentage of total Company assets	1		%	19		%	1		%	—		%	21		%	—		%	16		%	1		%	—		%	17		%
Liabilities
Trading account liabilities:
U.S. Treasury and government agencies	$	—		$	2,359		$	—		$	—		$	2,359		$	—		$	2,299		$	—		$	—		$	2,299
Corporate debt	—			483			—			—			483			—			646			—			—			646
Other debt	—			—			—			—			—			—			4			—			—			4
Equity	144			—			—			—			144			105			—			—			—			105
Derivatives contracts	58			962			1			(674)			347			11			499			8			(306)			212
Total trading account liabilities	202			3,804			1			(674)			3,333			116			3,448			8			(306)			3,266
Other liabilities:
FDIC clawback liability	—			—			—			—			—			—			—			121			—			121
Derivatives contracts	—			3			4			(1)			6			—			2			3			—			5
Total other liabilities	—			3			4			(1)			6			—			2			124			—			126
Total liabilities	$	202		$	3,807		$	5		$	(675)		$	3,339		$	116		$	3,450		$	132		$	(306)		$	3,392
Percentage of total	6		%	114		%	—		%	(20)		%	100		%	3		%	102		%	4		%	(9)		%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	—		%	3		%	—		%	2		%	—		%	—		%	2		%

(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, 2020 and 2019. Level 3 securities available for sale at December 31, 2020 and 2019 largely consist of direct bank purchase bonds.

	For the Year Ended
	December 31, 2020										December 31, 2019
(Dollars in millions)	Trading Account Assets		Securities Available for Sale		Other Assets		Trading Account Liabilities		Other Liabilities		Trading Account Assets		Securities Available for Sale		Other Assets		Trading Account Liabilities		Other Liabilities
Asset (liability) balance, beginning of period	$	8	$	1,131	$	316	$	(8)	$	(124)	$	13	$	1,331	$	277	$	(13)	$	(118)
Total gains (losses) - (realized/unrealized):
Included in income before taxes	(2)		—		(166)		2		(2)		4		—		(88)		(4)		(6)
Included in other comprehensive income	—		13		—		—		—		—		31		—		—		—
Purchases/additions	—		382		16		—		—		—		57		396		—		—
Sales	—		—		—		—		—		—		—		(269)		—		—
Settlements	(5)		(52)		—		5		122		(9)		(288)		—		9		—
Asset (liability) balance, end of period	$	1	$	1,474	$	166	$	(1)	$	(4)	$	8	$	1,131	$	316	$	(8)	$	(124)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	(2)	$	—	$	(166)	$	2	$	(2)	$	4	$	—	$	(103)	$	(4)	$	(6)

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, 2020.

	December 31, 2020
(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	$	930	Return on equity	Market-required return on capital	8.0-10.0	%	10.0	%
				Probability of default	0.0-8.0		0.4
				Loss severity	10.0-65.0		21.7
Other	$	528	Discounted cash flow	Discount rate	1.1-4.5		3.5
				Liquidity adjustment	0.8-3.2		2.4

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, 2020 and 2019 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, 2020								For the Year Ended December 31, 2020
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans held for investment	$	187	$	—	$	—	$	187	$	(134)
Goodwill (1)	1,407		—		—		1,407		(357)
Other assets	89		—		—		89		(72)
Total	$	1,683	$	—	$	—	$	1,683	$	(563)

(1)For further information, see Note 5 to these consolidated financial statements.

	December 31, 2019								For the Year Ended December 31, 2019
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Gains (Losses)
Loans held for investment	$	64	$	—	$	—	$	64	$	(20)
Goodwill (1)	1,764		—		—		1,764		(1,614)
Other assets	301		—		—		301		(36)
Total	$	2,129	$	—	$	—	$	2,129	$	(1,670)

(1)For further information, see Note 5 to these consolidated financial statements.

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, 2020 and 2019.

	December 31, 2020
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	16,414	$	16,414	$	16,414	$	—	$	—
Securities borrowed or purchased under resale agreements	17,608		17,607		—		17,607		—
Securities held to maturity	7,311		7,532		—		7,532		—
Loans held for investment (1)	79,873		81,528		—		—		81,528
Other assets	31		31		31		—		—
Liabilities
Time deposits	$	7,419	$	7,451	$	—	$	7,451	$	—
Securities loaned or sold under repurchase agreements	27,161		27,161		—		27,161		—
Commercial paper and other short-term borrowings	110		110		—		110		—
Long-term debt	14,631		14,973		—		14,973		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	40	$	313	$	—	$	—	$	313

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

	December 31, 2019
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	9,641	$	9,641	$	9,641	$	—	$	—
Securities borrowed or purchased under resale agreements	23,943		23,946		—		23,946		—
Securities held to maturity	9,421		9,508		—		9,508		—
Loans held for investment (1)	86,687		87,506		—		—		87,506
Other assets	54		54		54		—		—
Liabilities
Time deposits	$	15,651	$	15,691	$	—	$	15,691	$	—
Securities loaned or sold under repurchase agreements	28,866		28,866		—		28,866		—
Commercial paper and other short-term borrowings	6,484		6,484		—		6,484		—
Long-term debt	17,129		17,344		—		17,344		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	87	$	280	$	—	$	—	$	280

(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, 2020

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 at December 31, 2020 and December 31, 2019. 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, 2020						December 31, 2019
			Fair Value						Fair Value
(Dollars in millions)	Notional Amount		Asset Derivatives		Liability Derivatives		Notional Amount		Asset Derivatives		Liability Derivatives
Derivative instruments
Cash flow hedges:
Interest rate contracts	$	9,509	$	—	$	1	$	13,319	$	—	$	—
Not designated as hedging instruments:
Trading:
Interest rate contracts	193,326		1,890		754		214,805		981		446
Commodity contracts	4		—		—		9		—		—
Foreign exchange contracts	14,189		392		215		11,219		230		64
Equity contracts	1,599		16		51		72		8		8
Other contracts	51		—		1		72		—		—
Total Trading	209,169		2,298		1,021		226,177		1,219		518
Other risk management	1,548		15		7		1,948		14		5
Total derivative instruments	$	220,226	$	2,313	$	1,029	$	241,444	$	1,233	$	523

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, 2020, 2019 and 2018:

	Gains (Losses) Recognized in OCI							Gains (Losses) Reclassified from AOCI into Income							Gains (Losses) Recognized in Income (Ineffective Portion)
	For the Year Ended December 31,							For the Year Ended December 31,							For the Year Ended December 31,
(Dollars in millions)	2020		2019		2018		Location	2020		2019		2018		Location	2018
Derivatives in cash flow hedging relationships
							Interest income	$	34	$	(91)	$	(34)
Interest rate contracts	$	465	$	51	$	(96)	Interest expense	—		—		—		Noninterest expense	$	(1)
Total	$	465	$	51	$	(96)		$	34	$	(91)	$	(34)		$	(1)

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, 2020, 2019 and 2018:

	Gains (Losses) Recognized in Income on Trading Derivatives
	For the Years Ended
(Dollars in millions)	December 31, 2020		December 31, 2019		December 31, 2018
Trading derivatives
Interest rate contracts	$	(83)	$	(93)	$	95
Equity contracts	(23)		6		36
Foreign exchange contracts	61		51		44
Total	$	(45)	$	(36)	$	175

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	465	$	(122)	$	343
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	431		(113)		318
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	763		(200)		563
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(144)		38		(106)
Amortization of net unrealized (gains) losses on held to maturity securities	38		(10)		28
Net change	657		(172)		485
Pension and other benefits:
Amortization of prior service credit(1)	(27)		7		(20)
Recognized net actuarial (gain) loss(1)	112		(29)		83
Pension and other benefits arising during the year	13		(4)		9
Net change	98		(26)		72
Net change in AOCI	$	1,186	$	(311)	$	875

(1)These amounts are included in the computation of net periodic pension cost. For additional 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.

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Management Stock Plans (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Summary of Stock Bonus Plan

	Restricted Stock Units
	2020
	Number of Units	Weighted-Average Grant Date Fair Value
Units outstanding, beginning of year	37,653,686	5.16
Activity during the year:
Granted	26,949,460	4.04
Vested	(16,966,486)	5.46
Forfeited	(2,210,586)	4.64
Units outstanding, end of year	45,426,074	4.40

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)	2020		2019		2018
Compensation costs	$	83	$	89	$	77
Tax benefit	22		23		20
Unrecognized compensation costs	129		129		110

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Employee Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019.

	Pension Plan				Other Benefits Plan
	Years Ended December 31,				Years Ended December 31,
(Dollars in millions)	2020		2019		2020		2019
Change in Plan Assets:
Fair value of plan assets, beginning of year	$	4,140	$	3,529	$	291	$	255
Actual return on plan assets	682		754		48		52
Plan participants' contributions	—		—		4		4
Benefits paid	(153)		(143)		(21)		(20)
Fair value of plan assets, end of year	$	4,669	$	4,140	$	322	$	291

Fair Value by Level Within Fair Value Hierarchy Assets by Major Asset Category for Pension Plan and Other Benefits Plan

The following tables provide 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, 2020
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Pension Plan Investments:
Cash and cash equivalents	$	8	$	75	$	—	$	83
Collective investment funds	—		1,237		—		1,237
U.S. government securities	—		495		—		495
Fixed and variable income securities	—		985		—		985
Equity securities	334		7		—		341
Mutual funds	780		—		—		780
Municipal bonds	—		73		—		73
Other	(1)		25		—		24
Total investments in the fair value hierarchy	$	1,121	$	2,897	$	—	$	4,018
Investments measured at net asset value (1)							681
Investments at fair value							4,699
Accrued dividends and interest receivable							11
Net pending trades							(41)
Total plan assets							$	4,669

(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, 2019
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Pension Plan Investments:
Cash and cash equivalents	$	9	$	2	$	—	$	11
Collective investment funds	—		1,089		—		1,089
U.S. government securities	—		419		—		419
Fixed and variable income securities	—		882		—		882
Equity securities	246		6		—		252
Mutual funds	746		—		—		746
Municipal bonds	—		38		—		38
Other	(4)		17		—		13
Total investments in the fair value hierarchy	$	997	$	2,453	$	—	$	3,450
Investments measured at net asset value (1)							680
Investments at fair value							4,130
Accrued dividends and interest receivable							10
Net pending trades							—
Total plan assets							$	4,140

	December 31, 2020
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Other Postretirement Benefits Plan Investments:
Cash and cash equivalents	$	1	$	5	$	—	$	6
Collective investment funds	—		210		—		210
U.S. government securities	—		11		—		11
Fixed and variable income securities	—		22		—		22
Municipal bonds	—		1		—		1
Pooled separate account	—		63		—		63
Total investments in the fair value hierarchy	$	1	$	312	$	—	$	313
Investments measured at net asset value (1)							11
Investments at fair value							324
Net pending trades							(2)
Total plan assets							$	322

(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, 2019
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Other Postretirement Benefits Plan Investments:
Collective investment funds	$	—	$	103	$	—	$	103
U.S. government securities	—		45		—		45
Fixed and variable income securities	—		27		—		27
Mutual funds	65		—		—		65
Pooled separate account	—		53		—		53
Total investments in the fair value hierarchy	$	65	$	228	$	—	$	293
Investments measured at net asset value (1)							—
Investments at fair value							293
Net pending trades							(2)
Total plan assets							$	291

(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, 2020 and 2019 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, 2020
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Pension Plan Investments
Real estate funds	$	480	$	—	Quarterly	Availability of fund's liquid assets and approval of the board of directors	45-90 days
Real estate funds	4		2		None	Hold until dissolution date	None
International equity funds	197		—		Monthly	None	15 days
Total	$	681	$	2

	December 31, 2019
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Pension Plan Investments
Real estate funds	$	480	$	2	Quarterly	Availability of fund's liquid assets and approval of the board of directors	45-90 days
Real estate funds	5		—		None	Hold until dissolution date	None
International equity funds	195		—		Monthly	None	15 days
Total	$	680	$	2

	December 31, 2020
(Dollars in millions)	Fair Value		Unfunded Commitment		Redemption Frequency	Other Redemption Restrictions	Redemption Notice Period
Other Postretirement Benefits Plan Investments
Real estate funds	$	11	$	—	Quarterly	Availability of fund's liquid assets and approval of the board of directors	90 days
Total	$	11	$	—

Changes in Fair Value of Assets Measured at Level 3

	December 31, 2020
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Other Postretirement Benefits Plan Investments:
Cash and cash equivalents	$	1	$	5	$	—	$	6
Collective investment funds	—		210		—		210
U.S. government securities	—		11		—		11
Fixed and variable income securities	—		22		—		22
Municipal bonds	—		1		—		1
Pooled separate account	—		63		—		63
Total investments in the fair value hierarchy	$	1	$	312	$	—	$	313
Investments measured at net asset value (1)							11
Investments at fair value							324
Net pending trades							(2)
Total plan assets							$	322

(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.

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, 2020 and 2019. In addition, the table sets forth the over (under) funded status at December 31, 2020 and 2019. This pension benefits table does not include the obligations for ESBPs.

	Pension Benefits				Other Postretirement Benefits
	Years Ended December 31,				Years Ended December 31,
(Dollars in millions)	2020		2019		2020		2019
Accumulated benefit obligation	$	3,944	$	3,521
Change in benefit obligation
Benefit obligation, beginning of year	$	3,536	$	3,047	$	251	$	242
Service cost	84		76		2		3
Interest cost	95		117		6		9
Plan participants' contributions	—		—		4		4
Actuarial loss/(gain)	408		439		15		14
Benefits paid	(153)		(143)		(21)		(21)
Benefit obligation, end of year	3,970		3,536		257		251
Fair value of plan assets, end of year	4,669		4,140		322		291
Over (Under) funded status	$	699	$	604	$	65	$	40

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 2020, 2019 and 2018. 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, 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)
Arising during the year	(59)		—		(22)		—
Recognized in net income during the year	(61)		26		(9)		14
Balance, December 31, 2019	$	916	$	(100)	$	33	$	—
Arising during the year	(9)		—		(13)		—
Recognized in net income during the year	(107)		27		—		—
Balance, December 31, 2020	$	800	$	(73)	$	20	$	—

At December 31, 2020 and 2019, the following amounts were recognized in accumulated other comprehensive loss for pension, including ESBPs, and other benefits.

	December 31, 2020
	Pension Benefits						Other Postretirement Benefits
(Dollars in millions)	Gross		Tax		Net of Tax		Gross		Tax		Net of Tax
Net actuarial loss	$	800	$	(210)	$	590	$	20	$	(5)	$	15
Prior service credit	(73)		19		(54)		—		—		—
Pension and other postretirement benefits	727		(191)		536		20		(5)		15
Executive Supplemental Benefits Plans
Net actuarial loss	42		(11)		31		—		—		—
Executive supplemental benefits plans adjustment	42		(11)		31		—		—		—
Pension and other postretirement benefits, as adjusted	$	769	$	(202)	$	567	$	20	$	(5)	$	15

	December 31, 2019
	Pension Benefits						Other Postretirement Benefits
(Dollars in millions)	Gross		Tax		Net of Tax		Gross		Tax		Net of Tax
Net actuarial loss	$	916	$	241	$	675	$	33	$	9	$	24
Prior service credit	(100)		(26)		(74)		—		—		—
Pension and other postretirement benefits	816		215		601		33		9		24
Executive Supplemental Benefits Plans
Net actuarial loss	39		10		29		—		—		—
Executive supplemental benefits plans adjustment	39		10		29		—		—		—
Pension and other postretirement benefits, as adjusted	$	855	$	225	$	630	$	33	$	9	$	24

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,
2021	$	163	$	17
2022	170		18
2023	179		18
2024	184		17
2025	190		17
Years 2026 - 2030	1,013		69

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,
	2020		2019		2020		2019
Discount rate in determining net periodic benefit cost
For service cost	3.16	%	4.19	%	3.04	%	4.11	%
For interest cost	2.72		3.90		2.52		3.79
Discount rate in determining benefit obligations at year end	2.30		3.08		2.08		2.93
Rate of increase in future compensation levels for determining net periodic benefit cost	5.10		5.10		n/a		n/a
Rate of increase in future compensation levels for determining benefit obligations at year end	5.10		5.10		n/a		n/a
Expected return on plan assets	7.00		7.00		7.00		7.00
Cash balance crediting rate for determining net periodic benefit cost	2.39		3.02		n/a		n/a
Cash balance crediting rate for determining benefit obligations at year end	1.62		2.39		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)	2020		2019		2018		2020		2019		2018		2020		2019		2018
Components of net periodic benefit cost:
Service cost	$	84	$	76	$	80	$	2	$	3	$	4	$	—	$	—	$	—
Interest cost	95		117		100		6		9		8		2		3		3
Expected return on plan assets	(265)		(257)		(268)		(20)		(17)		(21)		—		—		—
Amortization of prior service credit	(27)		(26)		(26)		—		(14)		(15)		—		—		—
Recognized net actuarial loss	107		61		87		—		9		5		5		4		3
Total net periodic benefit cost	$	(6)	$	(29)	$	(27)	$	(12)	$	(10)	$	(19)	$	7	$	7	$	6

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,
	2020		2019		2018
Healthcare cost trend rate assumed for next year	4.17	%	4.14	%	4.44	%
Rate to which cost trend rate is assumed to decline (the ultimate trend rate)	3.78	%	3.77	%	3.94	%
Year the rate reaches the ultimate trend rate	2028		2027		2027

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Other Noninterest Income and Noninterest Expense (Tables)

12 Months Ended

Dec. 31, 2020

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)	2020		2019		2018
Fund administration fees	$	112	$	94	$	100
Losses on renewable energy investments	(72)		(85)		(235)
Mortgage servicing activities	(123)		(44)		20
Other	247		248		230
Total other noninterest income	$	164	$	213	$	115

The detail of other noninterest expense is as follows.

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Fees to affiliates	$	94	$	94	$	115
Net periodic pension cost, excluding service cost	(97)		(112)		(124)
Other	389		440		418
Total other noninterest expense	$	386	$	422	$	409

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of effective tax rate

The following table is an analysis of the effective tax rate:

	Years Ended December 31,
	2020		2019		2018
Federal income tax rate	21	%	21	%	21	%
Net tax effects of:
State income taxes, net of federal income tax benefit	(2)		(13)		7
Goodwill impairment	63		(45)		—
Tax-exempt interest income	(7)		2		(1)
Losses from LIHC investments	(13)		4		(2)
Amortization of LIHC investments	94		(20)		12
Tax credits	(189)		40		(25)
FDIC insurance premiums	6		(2)		1
Valuation allowance release	—		1		—
Effects of US tax law change	—		—		(2)
State tax refunds	—		—		(5)
Provision to return adjustment	15		1		(2)
Compensation - restricted stock units	4		(1)		—
Uncertain tax benefits	(6)		—		—
Other	1		—		1
Effective tax rate	(13)	%	(12)	%	5	%

Components of Income Tax Expense

The components of income tax expense were as follows:

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Current income tax expense:
Federal	$	204	$	191	$	195
State	123		154		89
Foreign	1		1		10
Total current expense	328		346		294
Deferred income tax expense (benefit):
Federal	(247)		(202)		(173)
State	(98)		(61)		(64)
Foreign	(1)		(1)		(5)
Total deferred expense	(346)		(264)		(242)
Total income tax expense (benefit)	$	(18)	$	82	$	52

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, 2020 and 2019 were as follows:

	December 31,
(Dollars in millions)	2020		2019
Deferred tax assets:
Tax credits and net operating loss carryforwards	$	468	$	499
Allowance for credit losses	532		312
Lease liability	198		—
Accrued expense, net	202		143
Unrealized losses on pension and postretirement benefits	207		233
Unrealized net (gains) losses on securities available for sale	—		32
Fair value adjustments for valuation of FDIC covered assets	30		40
Unrealized gains/losses on cash flow hedges	—		41
Capitalized loan cost	147		—
Other	9		30
Total deferred tax assets	1,793		1,330
Deferred tax liabilities:
Leasing and renewable energy	482		515
Intangible assets	14		17
Pension liabilities	374		373
Right of use	198		—
Unrealized net (gains) losses on securities available for sale	140		—
Unrealized gains/losses on cash flow hedges	72		—
Other	—		—
Total deferred tax liabilities	1,280		905
Net deferred tax asset (liability)	$	513	$	425

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)	2020		2019		2018
Balance, beginning of year	$	126	$	127	$	56
Gross increases as a result of tax positions taken during prior periods	2		1		72
Gross decreases as a result of tax positions taken during prior periods	(22)		—		—
Gross increases as a result of tax positions taken during current period	—		—		—
Gross decrease as a result of closed audit years or settlements	(1)		(2)		(1)
Balance, end of year	$	105	$	126	$	127

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Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2020

Broker-Dealer, Net Capital Requirement, SEC Regulation [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, 2020:
Common equity tier 1 capital (to risk-weighted assets)	$	15,823	15.28	%	≥	$	9,218	8.90	%
Tier 1 capital (to risk-weighted assets)	15,823		15.28		≥	10,772		10.40
Total capital (to risk-weighted assets)	16,871		16.29		≥	12,843		12.40
Tier 1 leverage(2)	15,823		9.56		≥	6,623		4.00
As of December 31, 2019:
Common equity tier 1 capital (to risk-weighted assets)	$	15,086	14.10	%	≥	$	7,492	7.00	%
Tier 1 capital (to risk-weighted assets)	15,086		14.10		≥	9,097		8.50
Total capital (to risk-weighted assets)	15,769		14.73		≥	11,237		10.50
Tier 1 leverage(2)	15,086		8.88		≥	6,792		4.00

(1)The minimum capital requirement includes MUAH's standardized capital conservation buffer of 4.4%.

(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, 2020 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	14,634	15.62	%	≥	$	6,557	7.00	%	≥	$	6,089	6.5	%
Tier 1 capital (to risk-weighted assets)	14,634		15.62		≥	7,963		8.50		≥	7,494		8.0
Total capital (to risk-weighted assets)	15,629		16.68		≥	9,836		10.50		≥	9,368		10.0
Tier 1 leverage(2)	14,634		11.12		≥	5,262		4.00		≥	6,577		5.0
As of December 31, 2019 (U.S. Basel III):
Common equity tier 1 capital (to risk-weighted assets)	$	14,115	14.47	%	≥	$	6,829	7.00	%	≥	$	6,342	6.5	%
Tier 1 capital (to risk-weighted assets)	14,115		14.47		≥	8,293		8.50		≥	7,805		8.0
Total capital (to risk-weighted assets)	14,746		15.11		≥	10,244		10.50		≥	9,756		10.0
Tier 1 leverage(2)	14,115		10.65		≥	5,304		4.00		≥	6,629		5.0

(1)Beginning January 1, 2019, the minimum capital requirement includes a capital conservation buffer of 2.5%.

(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, 2020

Commitments and Contingencies Disclosure [Abstract]

Summary of Commitments

The following table summarizes the Company's commitments:

(Dollars in millions)	December 31, 2020
Commitments to extend credit	$	39,421
Issued standby and commercial letters of credit	4,189
Commitments to enter into forward-starting resale agreements	2,187
Other commitments	1,831

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Business Segments (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Schedule of reportable business segments

(Dollars in millions)	Regional Bank		Global Corporate & Investment Banking - U.S.		Transaction Banking		MUSA		Other (1)		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,096	$	445	$	190	$	315	$	31	$	3,077
Noninterest income	470		461		36		437		1,501		2,905
Total revenue	2,566		906		226		752		1,532		5,982
Noninterest expense	2,039		509		173		524		1,776		5,021
(Reversal of) provision for credit losses	760		68		1		—		—		829
Income (loss) before income taxes and including noncontrolling interests	(233)		329		52		228		(244)		132
Income tax expense (benefit) (2)	(63)		27		10		56		(48)		(18)
Net income (loss) including noncontrolling interest	(170)		302		42		172		(196)		150
Deduct: net loss from noncontrolling interests	—		—		—		—		16		16
Net income (loss) attributable to MUAH	$	(170)	$	302	$	42	$	172	$	(180)	$	166
Total assets, end of period	$	65,940	$	23,260	$	182	$	32,714	$	45,750	$	167,846

(1)Other includes goodwill impairment. See Note 5 to these consolidated financial statements.

(2)Income tax expense (benefit) includes certain management accounting classification adjustments.

As of and for the Twelve Months Ended December 31, 2019:

(Dollars in millions)	Regional Bank		Global Corporate & Investment Banking - U.S.		Transaction Banking		MUSA		Other (1)		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,294	$	482	$	197	$	167	$	(47)	$	3,093
Noninterest income	520		371		39		384		1,391		2,705
Total revenue	2,814		853		236		551		1,344		5,798
Noninterest expense	2,130		505		188		476		2,916		6,215
(Reversal of) provision for credit losses	209		51		(2)		—		(6)		252
Income (loss) before income taxes and including noncontrolling interests	475		297		50		75		(1,566)		(669)
Income tax expense (benefit) (1)	93		19		19		18		(67)		82
Net income (loss) including noncontrolling interest	382		278		31		57		(1,499)		(751)
Deduct: net loss from noncontrolling interests	—		—		—		—		17		17
Net income (loss) attributable to MUAH	$	382	$	278	$	31	$	57	$	(1,482)	$	(734)
Total assets, end of period	$	74,980	$	20,681	$	756	$	34,455	$	39,938	$	170,810

(1)Other includes goodwill impairment. See Note 5 to these consolidated financial statements.

(2)Income tax expense (benefit) includes certain management accounting classification adjustments.

As of and for the Twelve Months Ended December 31, 2018:

(Dollars in millions)	Regional Bank		Global Corporate & Investment Banking - U.S.		Transaction Banking		MUSA		Other		MUFG Americas Holdings Corporation
Results of operations
Net interest income (expense)	$	2,195	$	471	$	207	$	200	$	234	$	3,307
Noninterest income	451		392		40		300		994		2,177
Total revenue	2,646		863		247		500		1,228		5,484
Noninterest expense	2,058		463		206		443		1,107		4,277
(Reversal of) provision for credit losses	65		48		(8)		—		1		106
Income (loss) before income taxes and including noncontrolling interests	523		352		49		57		120		1,101
Income tax expense (benefit) (1)	105		128		13		17		(211)		52
Net income (loss) including noncontrolling interest	418		224		36		40		331		1,049
Deduct: net loss from noncontrolling interests	—		—		—		—		24		24
Net income (loss) attributable to MUAH	$	418	$	224	$	36	$	40	$	355	$	1,073
Total assets, end of period	$	73,554	$	20,796	$	631	$	33,844	$	39,275	$	168,100

(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) (Tables) - MUFG Americas Holdings Corporation

12 Months Ended

Dec. 31, 2020

Condensed Balance Sheets

Condensed Balance Sheets

	December 31,
(Dollars in millions)	2020		2019
Assets
Cash and cash equivalents	$	583	$	840
Investments in and advances to subsidiaries
Bank subsidiary	18,731		18,103
Nonbank subsidiaries	5,011		4,770
Other assets	350		407
Total assets	$	24,675	$	24,120
Liabilities and Stockholders' Equity
Long-term debt	$	7,276	$	7,622
Other liabilities	210		218
Total liabilities	7,486		7,840
Stockholders' equity	17,189		16,280
Total liabilities and stockholders' equity	$	24,675	$	24,120

Condensed Statements of Income

Condensed Statements of Income

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Income:
Dividends from subsidiaries:
Bank subsidiary	$	—	$	—	$	1,700
Nonbank subsidiaries	66		616		95
Interest income on advances to subsidiaries and deposits in bank	92		161		137
Rental Income	15		15		15
Total income	173		792		1,947
Expense:
Interest expense	141		251		194
Other expense	31		29		17
Total expense	172		280		211
Income (loss) before income taxes and equity in undistributed net income of subsidiaries	1		512		1,736
Income tax benefit	(18)		(24)		(13)
Income (loss) before equity in undistributed net income of subsidiaries	19		536		1,749
Equity in undistributed net income of subsidiaries less dividends received:
Bank subsidiary	(38)		(746)		(697)
Nonbank subsidiaries	185		(524)		21
Net Income (Loss)	$	166	$	(734)	$	1,073

Condensed Statements of Cash Flows

Condensed Statements of Cash Flows

	Years Ended December 31,
(Dollars in millions)	2020		2019		2018
Cash Flows from Operating Activities:
Net income	$	166	$	(734)	$	1,073
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed net income of subsidiaries less dividends received	(147)		1,270		676
Other, net	58		(743)		(9)
Net cash provided by (used in) operating activities	77		(207)		1,740
Cash Flows from Investing Activities:
Investments in and advances to subsidiaries	(564)		(1,585)		(2,612)
Repayment of investments in and advances to subsidiaries	584		1,634		2,411
Net cash used in investing activities	20		49		(201)
Cash Flows from Financing Activities:
Proceeds from advances from subsidiaries	—		—		—
Repayment of advances from subsidiaries	—		—		—
Proceeds from issuance of long-term debt	3,025		1,890		6,500
Repayment of long-term debt	(3,379)		(1,631)		(6,145)
Dividends paid	—		—		—
Share repurchase	—		—		(2,496)
Net cash provided by (used in) financing activities	(354)		259		(2,141)
Net increase (decrease) in cash and cash equivalents	(257)		101		(602)
Cash and cash equivalents at beginning of year	840		739		1,341
Cash and cash equivalents at end of year	$	583	$	840	$	739

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Summary of Significant Accounting Policies and Nature of Operations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Significant Accounting Policies
securities held to maturity transferred to securities available for sale	$ 0	$ 170	$ 0
Common stock, share issued (in shares)	132,076,912	132,076,912
Loans placed on nonaccrual status when past due term (days)	90 days
Interest accrual period (days)	90 days
Financing Receivable, Threshold Period Past Due, Writeoff	120 days
Consecutive payment period for accrual status	6 months
Accounting Standards Update 2016-13 [Member]
Significant Accounting Policies
Day one impact to allowance for credit losses	$ 199
increase to deferred tax assets	52
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	$ 147

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- Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Salaries and employee benefits	$ 2,751	$ 2,687	$ 2,616
Other	$ 386	$ 422	$ 409

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Correction of Prior Period Amounts (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other assets	$ 9,916	$ 10,200
Other liabilities	2,906	2,837
Retained earnings	8,802	8,788
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	17,279	16,367	$ 16,580	$ 18,355
Noncontrolling interests	90	87
Noncontrolling Interests
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	90	87	72	100
Retained Earnings
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 8,802	$ 8,788	$ 9,524	$ 10,936

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Securities - Schedule of Available For Sale Securities (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Securities available for sale
Amortized Cost	$ 17,660	$ 17,808
Gross Unrealized Gains	625	126
Gross Unrealized Losses	26	145
Fair Value	18,259	17,789
US Treasury and Government [Member]
Securities available for sale
Amortized Cost	4,273	5,485
Gross Unrealized Gains	202	6
Gross Unrealized Losses	2	53
Fair Value	4,473	5,438
U.S. government agency and government-sponsored agencies
Securities available for sale
Amortized Cost	5,843	5,491
Gross Unrealized Gains	81	13
Gross Unrealized Losses	2	36
Fair Value	5,922	5,468
Privately issued
Securities available for sale
Amortized Cost	539	759
Gross Unrealized Gains	2	5
Gross Unrealized Losses	2	2
Fair Value	539	762
Privately issued - commercial mortgage-backed securities
Securities available for sale
Amortized Cost	4,212	3,461
Gross Unrealized Gains	286	56
Gross Unrealized Losses	9	28
Fair Value	4,489	3,489
Collateralized loan obligations
Securities available for sale
Amortized Cost	1,370	1,499
Gross Unrealized Gains	1	0
Gross Unrealized Losses	4	8
Fair Value	1,367	1,491
Direct bank purchase bonds
Securities available for sale
Amortized Cost	891	911
Gross Unrealized Gains	46	43
Gross Unrealized Losses	7	18
Fair Value	930	936
Other
Securities available for sale
Amortized Cost	532	202
Gross Unrealized Gains	7	3
Gross Unrealized Losses	0	0
Fair Value	$ 539	$ 205

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Securities - Schedule of Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Securities available for sale
Less than 12 months, Fair Value	$ 1,926	$ 7,857
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	15	83
12 months or more, Fair Value	1,446	4,563
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	11	62
Fair Value, Total	3,372	12,420
Unrealized Losses, Total	26	145
US Treasury and Government [Member]
Securities available for sale
Less than 12 months, Fair Value	635	4,407
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	2	48
12 months or more, Fair Value	0	543
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	5
Fair Value, Total	635	4,950
Unrealized Losses, Total	2	53
U.S. government agency and government-sponsored agencies
Securities available for sale
Less than 12 months, Fair Value	43	914
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	4
12 months or more, Fair Value	732	2,769
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	2	32
Fair Value, Total	775	3,683
Unrealized Losses, Total	2	36
Privately issued
Securities available for sale
Less than 12 months, Fair Value	275	127
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	2	0
12 months or more, Fair Value	15	155
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	2
Fair Value, Total	290	282
Unrealized Losses, Total	2	2
Privately issued - commercial mortgage-backed securities
Securities available for sale
Less than 12 months, Fair Value	354	1,669
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	9	28
12 months or more, Fair Value	25	12
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Fair Value, Total	379	1,681
Unrealized Losses, Total	9	28
Collateralized loan obligations
Securities available for sale
Less than 12 months, Fair Value	593	597
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1	2
12 months or more, Fair Value	477	790
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	3	6
Fair Value, Total	1,070	1,387
Unrealized Losses, Total	4	8
Direct bank purchase bonds
Securities available for sale
Less than 12 months, Fair Value	26	118
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1	1
12 months or more, Fair Value	197	294
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	6	17
Fair Value, Total	223	412
Unrealized Losses, Total	7	18
Other
Securities available for sale
Less than 12 months, Fair Value	0	25
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	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	0	25
Unrealized Losses, Total	$ 0	$ 0

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Securities - Fair Value of Debt Securities AFS Contractual Maturity (Details) $ in Millions	Dec. 31, 2020 USD ($)
Securities available for sale
One Year or Less	$ 104
Over One Year Through Five Years	815
Over Five Years Through Ten Years	8,504
Over Ten Years	8,836
Total Fair Value	18,259
US Treasury and Government [Member]
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	157
Over Five Years Through Ten Years	4,155
Over Ten Years	161
Total Fair Value	4,473
U.S. government agency and government-sponsored agencies
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	65
Over Five Years Through Ten Years	927
Over Ten Years	4,930
Total Fair Value	5,922
Privately issued
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	0
Over Five Years Through Ten Years	4
Over Ten Years	535
Total Fair Value	539
Privately issued - commercial mortgage-backed securities
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	0
Over Five Years Through Ten Years	1,774
Over Ten Years	2,715
Total Fair Value	4,489
Collateralized loan obligations
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	2
Over Five Years Through Ten Years	945
Over Ten Years	420
Total Fair Value	1,367
Direct bank purchase bonds
Securities available for sale
One Year or Less	94
Over One Year Through Five Years	411
Over Five Years Through Ten Years	350
Over Ten Years	75
Total Fair Value	930
Other
Securities available for sale
One Year or Less	10
Over One Year Through Five Years	180
Over Five Years Through Ten Years	349
Over Ten Years	0
Total Fair Value	$ 539

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Securities - Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule of Held-to-maturity Securities [Line Items]
Held to Maturity Securities Amortized Cost	$ 7,376	$ 9,525
Held To Maturity Securities Unrealized Holding Gain Recognized in Other Comprehensive Income	1	0
Held To Maturity Securities Unrealized Holding Losses Recognized in Other Comprehensive Income	66	104
Debt Securities, Held-to-maturity	7,311	9,421
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	248	123
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	27	36
Fair value of securities held to maturity	7,532	9,508
Gross realized gains	144	39	$ 8
US Treasury and Government [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held to Maturity Securities Amortized Cost	2,260	1,359
Held To Maturity Securities Unrealized Holding Gain Recognized in Other Comprehensive Income	0	0
Held To Maturity Securities Unrealized Holding Losses Recognized in Other Comprehensive Income	0	0
Debt Securities, Held-to-maturity	2,260	1,359
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	22	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	27	6
Fair value of securities held to maturity	2,255	1,353
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Held to Maturity Securities Amortized Cost	5,116	8,166
Held To Maturity Securities Unrealized Holding Gain Recognized in Other Comprehensive Income	1	0
Held To Maturity Securities Unrealized Holding Losses Recognized in Other Comprehensive Income	66	104
Debt Securities, Held-to-maturity	5,051	8,062
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	226	123
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	0	30
Fair value of securities held to maturity	$ 5,277	$ 8,155

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Securities - Unrealized Gains/Loss in OCI (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Securities held to maturity
Amortized Cost	$ 7,376	$ 9,525
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI)	1	0
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI)	66	104
Total securities held to maturity, carrying amount	7,311	9,421
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	248	123
Total, Unrealized Losses, Not Recognized in OCI	27	36
Total securities held to maturity, Fair Value	7,532	9,508
US Treasury and Government [Member]
Securities held to maturity
Amortized Cost	2,260	1,359
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	2,260	1,359
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	22	0
Total, Unrealized Losses, Not Recognized in OCI	27	6
Total securities held to maturity, Fair Value	2,255	1,353
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
Securities held to maturity
Amortized Cost	5,116	8,166
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI)	1	0
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI)	66	104
Total securities held to maturity, carrying amount	5,051	8,062
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	226	123
Total, Unrealized Losses, Not Recognized in OCI	0	30
Total securities held to maturity, Fair Value	$ 5,277	$ 8,155

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Securities - Held to Maturity Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Securities held to maturity
Less than 12 months, Fair Value	$ 1,332	$ 1,593
Less than 12 months, Unrealized Losses, Recognized in OCI	0	0
Less than 12 months, Unrealized Losses, Not Recognized in OCI	27	15
12 months or more, Fair Value	2,472	4,515
12 months or more, Unrealized Losses, Recognized in OCI	66	104
12 months or more, Unrealized Losses, Not Recognized in OCI	0	21
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value	3,804	6,108
Total, Unrealized Losses, Recognized in OCI	66	104
Total, Unrealized Losses, Not Recognized in OCI	27	36
US Treasury and Government [Member]
Securities held to maturity
Less than 12 months, Fair Value	1,267	509
Less than 12 months, Unrealized Losses, Recognized in OCI	0	0
Less than 12 months, Unrealized Losses, Not Recognized in OCI	27	6
12 months or more, Fair Value	0	0
12 months or more, Unrealized Losses, Recognized in OCI	0	0
12 months or more, Unrealized Losses, Not Recognized in OCI	0	0
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value	1,267	509
Total, Unrealized Losses, Recognized in OCI	0	0
Total, Unrealized Losses, Not Recognized in OCI	27	6
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
Securities held to maturity
Less than 12 months, Fair Value	65	1,084
Less than 12 months, Unrealized Losses, Recognized in OCI	0	0
Less than 12 months, Unrealized Losses, Not Recognized in OCI	0	9
12 months or more, Fair Value	2,472	4,515
12 months or more, Unrealized Losses, Recognized in OCI	66	104
12 months or more, Unrealized Losses, Not Recognized in OCI	0	21
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value	2,537	5,599
Total, Unrealized Losses, Recognized in OCI	66	104
Total, Unrealized Losses, Not Recognized in OCI	$ 0	$ 30

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Securities - Carrying Amount and Fair Value Securities Held to Maturity (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Securities held to maturity
Over One Year Through Five Years, Carrying Amount	$ 619
Over Five Years Through Ten Years, Carrying Amount	1,096
Over Ten Years, Carrying Amount	5,596
Total securities held to maturity, carrying amount	7,311	$ 9,421
Over One Year Through Five Years, Fair Value	641
Over Five Years Through Ten Years, Fair Value	1,145
Over Ten Years, Fair Value	5,746
Total securities held to maturity, Fair Value	7,532	9,508
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost	0
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value	0
US Treasury and Government [Member]
Securities held to maturity
Over One Year Through Five Years, Carrying Amount	0
Over Five Years Through Ten Years, Carrying Amount	441
Over Ten Years, Carrying Amount	1,819
Total securities held to maturity, carrying amount	2,260	1,359
Over One Year Through Five Years, Fair Value	0
Over Five Years Through Ten Years, Fair Value	457
Over Ten Years, Fair Value	1,798
Total securities held to maturity, Fair Value	2,255	1,353
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost	0
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, 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	619
Over Five Years Through Ten Years, Carrying Amount	655
Over Ten Years, Carrying Amount	3,777
Total securities held to maturity, carrying amount	5,051	8,062
Over One Year Through Five Years, Fair Value	641
Over Five Years Through Ten Years, Fair Value	688
Over Ten Years, Fair Value	3,948
Total securities held to maturity, Fair Value	5,277	$ 8,155
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost	0
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value	$ 0

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Securities - Securities Pledged as Collateral (Details) - USD ($) $ in Billions	Dec. 31, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Amount pledged	$ 15.5	$ 10.5
Permitted to be sold or repledged	3.4	1.0
Received as collateral	29.9	34.0
Collateral received permitted to be sold or repledged	29.9	34.0
Sold or repledged	$ 29.7	$ 32.5

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Loans and Allowance for Loan Losses - Outstanding Balance of Loans (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loans disclosures
Total loans held for investment	$ (82,166)	$ (88,213)
Allowance for loan losses	(1,273)	(538)	$ (474)
Loans Held for Investment, Net	80,893	87,675
Unamortized discounts and premiums and deferred fees and costs	127	320
Commercial
Loans disclosures
Total loans held for investment	(50,149)
Consumer Portfolio Segment [Member]
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans		42,465
Total loans held for investment	(32,017)	(42,468)
Allowance for loan losses	(422)	(184)
Commercial Portfolio Segment [Member]
Loans disclosures
Total loans held for investment	(50,149)	(45,745)
Allowance for loan losses	(851)	(354)
Home equity loans | Consumer
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	1,590	2,049
Commercial and industrial | Commercial
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	31,212	26,338
Total loans held for investment	(31,212)
Commercial mortgage | Commercial
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	16,244	16,895
Total loans held for investment	(16,244)
Construction | Commercial
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	1,655	1,511
Total loans held for investment	(1,655)
Lease financing | Commercial
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	1,038	1,001
Total loans held for investment	(1,038)
residential mortgage and home equity [Member] | Consumer Portfolio Segment [Member]
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans		38,015
Total loans held for investment	(29,034)
residential mortgage and home equity [Member] | Consumer
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	29,034	38,018
Other Consumer Loans [Member] | Consumer Portfolio Segment [Member]
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans		4,450
Total loans held for investment	(2,983)
Other Consumer Loans [Member] | Consumer
Loans disclosures
Total loans held for investment, before purchased credit-impaired loans	$ 2,983	$ 4,450

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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, 2020	Dec. 31, 2019	Jan. 01, 2020
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	$ 538	$ 474
(Reversal of) provision for loan losses	843	283
Loans charged-off	(378)	(256)
Recoveries of loans previously charged-off	41	37
Allowance for loan losses, end of period	1,273	538
Account Receivable Change in Method Credit Loss			$ 229
Loan and Lease Receivable, Allowance Beginning Balance as Adjusted for CECL			767
Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Loans charged-off	(221)	(158)
Recoveries of loans previously charged-off	25	29
Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Loans charged-off	(157)	(98)
Recoveries of loans previously charged-off	16	8
Unallocated
Allowance for Loan and Lease Losses [Roll Forward]
Account Receivable Change in Method Credit Loss			0
Loan and Lease Receivable, Allowance Beginning Balance as Adjusted for CECL			0
Commercial Portfolio Segment [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Account Receivable Change in Method Credit Loss			76
Loan and Lease Receivable, Allowance Beginning Balance as Adjusted for CECL			430
Consumer Portfolio Segment [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Account Receivable Change in Method Credit Loss			153
Loan and Lease Receivable, Allowance Beginning Balance as Adjusted for CECL			$ 337
Consumer Portfolio Segment [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	184
(Reversal of) provision for loan losses	226	164
Allowance for loan losses, end of period	422	184
Consumer Portfolio Segment [Member] | Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	184	110
Allowance for loan losses, end of period		184
Unallocated
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	0
(Reversal of) provision for loan losses	0	(5)
Loans charged-off	0	0
Recoveries of loans previously charged-off	0	0
Allowance for loan losses, end of period	0	0
Unallocated | Unallocated
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	0	5
Allowance for loan losses, end of period		0
Commercial Portfolio Segment [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	354
(Reversal of) provision for loan losses	617	124
Allowance for loan losses, end of period	851	354
Commercial Portfolio Segment [Member] | Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	$ 354	359
Allowance for loan losses, end of period		$ 354

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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, 2020	Dec. 31, 2019	Dec. 31, 2018
Allowance for loan losses:
Individually evaluated for impairment		$ 55
Collectively evaluated for impairment		483
Total allowance for loan losses	$ 1,273	538	$ 474
Loans held for investment:
Individually evaluated for impairment		682
Collectively evaluated for impairment		87,531
Total loans held for investment	82,166	88,213
Provision for Loan and Lease Losses	843	283
Financing Receivable, Allowance for Credit Loss, Writeoff	378	256
Recoveries of loans previously charged-off	41	37
Commercial
Allowance for loan losses:
Individually evaluated for impairment		43
Collectively evaluated for impairment		311
Loans held for investment:
Individually evaluated for impairment		436
Collectively evaluated for impairment		45,309
Financing Receivable, Allowance for Credit Loss, Writeoff	221	158
Recoveries of loans previously charged-off	25	29
Consumer
Allowance for loan losses:
Individually evaluated for impairment		12
Collectively evaluated for impairment		172
Loans held for investment:
Individually evaluated for impairment		246
Collectively evaluated for impairment		42,222
Financing Receivable, Allowance for Credit Loss, Writeoff	157	98
Recoveries of loans previously charged-off	16	8
Notes Receivable [Member] | Residential mortgage | Consumer
Loans held for investment:
Total loans held for investment	27,000
Notes Receivable [Member] | Commercial mortgage | Commercial
Loans held for investment:
Total loans held for investment	17,000
Financial and Insurance [Member] | Notes Receivable [Member] | Commercial
Loans held for investment:
Total loans held for investment	10,000
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
Allowance for loan losses:
Total allowance for loan losses	0	0
Loans held for investment:
Provision for Loan and Lease Losses	0	(5)
Financing Receivable, Allowance for Credit Loss, Writeoff	0	0
Recoveries of loans previously charged-off	0	0
Unallocated | Unallocated
Allowance for loan losses:
Total allowance for loan losses		0	5
Commercial Portfolio Segment [Member]
Allowance for loan losses:
Total allowance for loan losses	851	354
Loans held for investment:
Total loans held for investment	50,149	45,745
Provision for Loan and Lease Losses	617	124
Commercial Portfolio Segment [Member] | Commercial
Allowance for loan losses:
Total allowance for loan losses		354	359
Consumer Portfolio Segment [Member]
Allowance for loan losses:
Total allowance for loan losses	422	184
Loans held for investment:
Total loans held for investment	32,017	42,468
Provision for Loan and Lease Losses	$ 226	164
Consumer Portfolio Segment [Member] | Consumer
Allowance for loan losses:
Total allowance for loan losses		$ 184	$ 110

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Loans and Allowance for Loan Losses - Nonaccural Loans (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
90 Days or More Past Due Still Accruing
Financing Receivable, Nonaccrual	$ 711	$ 328
Troubled debt restructured loans that continue to accrue interest	212	392
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)	279	171
Commercial | Commercial and industrial
90 Days or More Past Due Still Accruing
Financing Receivable, Nonaccrual	182	175
Commercial | Commercial mortgage
90 Days or More Past Due Still Accruing
Financing Receivable, Nonaccrual	317	15
Commercial | Construction
90 Days or More Past Due Still Accruing
Financing Receivable, Nonaccrual	28	0
Consumer | residential mortgage and home equity [Member]
90 Days or More Past Due Still Accruing
Financing Receivable, Nonaccrual	183	137
Consumer | Other Consumer Loans [Member]
90 Days or More Past Due Still Accruing
Financing Receivable, Nonaccrual	1	1
Consumer Portfolio Segment [Member]
90 Days or More Past Due Still Accruing
Financing Receivable, Nonaccrual	184	138
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
90 Days or More Past Due Still Accruing
Financing Receivable, Nonaccrual		137
Consumer Portfolio Segment [Member] | Other Consumer Loans [Member]
90 Days or More Past Due Still Accruing
Financing Receivable, Nonaccrual		1
Commercial Portfolio Segment [Member]
90 Days or More Past Due Still Accruing
Financing Receivable, Nonaccrual	$ 527	$ 190

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Loans and Allowance for Loan Losses - Aging of Loans By Class (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
90 Days or More Past Due Still Accruing
Current	$ 81,476	$ 87,798
30 to 89 Days Past Due	407	283
90 Days or More Past Due	283	132
Financing Receivable, Past Due	690	415
Loans held for investment	82,166	88,213
Aging of loans
Current	81,476	87,798
30 to 89 Days Past Due	407	283
90 Days or More Past Due	283	132
Financing Receivable, Past Due	690	415
Loans held for investment	82,166	88,213
Commercial Portfolio Segment [Member]
90 Days or More Past Due Still Accruing
Current	49,718	45,610
30 to 89 Days Past Due	225	71
90 Days or More Past Due	206	64
Financing Receivable, Past Due	431	135
Loans held for investment	50,149	45,745
Aging of loans
Current	49,718	45,610
30 to 89 Days Past Due	225	71
90 Days or More Past Due	206	64
Financing Receivable, Past Due	431	135
Loans held for investment	50,149	45,745
Consumer Portfolio Segment [Member]
90 Days or More Past Due Still Accruing
Current	31,758	42,188
30 to 89 Days Past Due	182	212
90 Days or More Past Due	77	68
Financing Receivable, Past Due	259	280
Loans held for investment	32,017	42,468
Aging of loans
Current	31,758	42,188
30 to 89 Days Past Due	182	212
90 Days or More Past Due	77	68
Financing Receivable, Past Due	259	280
Loans held for investment	32,017	42,468
Commercial and industrial | Commercial and industrial
90 Days or More Past Due Still Accruing
Current	32,101	27,241
30 to 89 Days Past Due	76	37
90 Days or More Past Due	73	61
Financing Receivable, Past Due	149	98
Loans held for investment	32,250	27,339
Aging of loans
Current	32,101	27,241
30 to 89 Days Past Due	76	37
90 Days or More Past Due	73	61
Financing Receivable, Past Due	149	98
Loans held for investment	32,250	27,339
Commercial mortgage | Commercial and industrial
90 Days or More Past Due Still Accruing
Current	15,983	16,858
30 to 89 Days Past Due	128	34
90 Days or More Past Due	133	3
Financing Receivable, Past Due	261	37
Loans held for investment	16,244	16,895
Aging of loans
Current	15,983	16,858
30 to 89 Days Past Due	128	34
90 Days or More Past Due	133	3
Financing Receivable, Past Due	261	37
Loans held for investment	16,244	16,895
Construction | Commercial and industrial
90 Days or More Past Due Still Accruing
Current	1,634	1,511
30 to 89 Days Past Due	21	0
90 Days or More Past Due	0	0
Financing Receivable, Past Due	21	0
Loans held for investment	1,655	1,511
Aging of loans
Current	1,634	1,511
30 to 89 Days Past Due	21	0
90 Days or More Past Due	0	0
Financing Receivable, Past Due	21	0
Loans held for investment	1,655	1,511
residential mortgage and home equity [Member] | Consumer Portfolio Segment [Member]
90 Days or More Past Due Still Accruing
Loans held for investment	29,034
Aging of loans
Loans held for investment	29,034
residential mortgage and home equity [Member] | Consumer
90 Days or More Past Due Still Accruing
Current	28,815	37,788
30 to 89 Days Past Due	156	179
90 Days or More Past Due	63	51
Financing Receivable, Past Due	219	230
Loans held for investment	29,034	38,018
Aging of loans
Current	28,815	37,788
30 to 89 Days Past Due	156	179
90 Days or More Past Due	63	51
Financing Receivable, Past Due	219	230
Loans held for investment	29,034	38,018
Other Consumer Loans [Member] | Consumer Portfolio Segment [Member]
90 Days or More Past Due Still Accruing
Loans held for investment	2,983
Aging of loans
Loans held for investment	2,983
Other Consumer Loans [Member] | Consumer
90 Days or More Past Due Still Accruing
Current	2,943	4,400
30 to 89 Days Past Due	26	33
90 Days or More Past Due	14	17
Financing Receivable, Past Due	40	50
Loans held for investment	2,983	4,450
Aging of loans
Current	2,943	4,400
30 to 89 Days Past Due	26	33
90 Days or More Past Due	14	17
Financing Receivable, Past Due	40	50
Loans held for investment	$ 2,983	$ 4,450

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Loans and Allowance for Loan Losses - 90 Days or More Past Due (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
90 Days or More Past Due Still Accruing
Loans still accruing	$ 45	$ 20
Commercial Portfolio Segment [Member]
90 Days or More Past Due Still Accruing
Loans still accruing	24	3
Consumer Portfolio Segment [Member]
90 Days or More Past Due Still Accruing
Loans still accruing	21	17
606000000 | Commercial and industrial
90 Days or More Past Due Still Accruing
Loans still accruing	13	3
Commercial mortgage | Commercial and industrial
90 Days or More Past Due Still Accruing
Loans still accruing	11	0
residential mortgage and home equity [Member] | Consumer
90 Days or More Past Due Still Accruing
Loans still accruing	7	0
Other Consumer Loans [Member] | Consumer
90 Days or More Past Due Still Accruing
Loans still accruing	$ 14	$ 17

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Loans and Allowance for Loan Losses - Commercial Portfolio Segment Credit Quality Based on Regulatory Risk Ratings (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Aging of loans
Loans held for investment	$ 82,166	$ 88,213
Commercial
Aging of loans
Loans held for investment	50,149
Financing Receivable, Originated in Current Fiscal Year	8,899
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	7,275
Financing Receivable, Originated Two Years before Latest Fiscal Year	5,700
Financing Receivable, Originated Three Years before Latest Fiscal Year	2,974
Financing Receivable, Originated Four Years before Latest Fiscal Year	2,434
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	5,875
Financing Receivable, Revolving	$ 16,992
Financing Receivable, Originated in Current Fiscal Year, Percentage Of Total	17.00%
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year, Percentage Of Total	15.00%
Financing Receivable, Originated Two Years before Latest Fiscal Year, Percentage Of Total	11.00%
Financing Receivable, Originated Three Years before Latest Fiscal Year, Percentage Of Total	6.00%
Financing Receivable, Originated Four Years before Latest Fiscal Year, Percentage Of Total	5.00%
Financing Receivable, Originated Five or More Years before Latest Fiscal Year, Percentage Of Total	12.00%
Financing Receivable, Revolving, Percentage Of Total	34.00%
Financing Receivable Before Allowance For Credit Loss, Percentage	100.00%
Total loans		45,745
Commercial | Pass [Member]
Aging of loans
Total loans		44,178
Commercial | Special Mention [Member]
Aging of loans
Total loans		800
Commercial | Classified [Member]
Aging of loans
Total loans		767
Commercial and industrial | Commercial
Aging of loans
Loans held for investment	$ 31,212
Financing Receivable, Originated in Current Fiscal Year	6,553
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	2,465
Financing Receivable, Originated Two Years before Latest Fiscal Year	1,875
Financing Receivable, Originated Three Years before Latest Fiscal Year	1,095
Financing Receivable, Originated Four Years before Latest Fiscal Year	728
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	1,608
Financing Receivable, Revolving	16,888
Total loans		27,339
Commercial and industrial | Commercial | Pass [Member]
Aging of loans
Loans held for investment	29,100
Financing Receivable, Originated in Current Fiscal Year	6,444
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	2,207
Financing Receivable, Originated Two Years before Latest Fiscal Year	1,592
Financing Receivable, Originated Three Years before Latest Fiscal Year	990
Financing Receivable, Originated Four Years before Latest Fiscal Year	697
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	1,477
Financing Receivable, Revolving	15,693
Total loans		26,210
Commercial and industrial | Commercial | Special Mention [Member]
Aging of loans
Loans held for investment	1,254
Financing Receivable, Originated in Current Fiscal Year	30
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	182
Financing Receivable, Originated Two Years before Latest Fiscal Year	128
Financing Receivable, Originated Three Years before Latest Fiscal Year	64
Financing Receivable, Originated Four Years before Latest Fiscal Year	30
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	96
Financing Receivable, Revolving	724
Total loans		636
Commercial and industrial | Commercial | Classified [Member]
Aging of loans
Loans held for investment	858
Financing Receivable, Originated in Current Fiscal Year	79
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	76
Financing Receivable, Originated Two Years before Latest Fiscal Year	155
Financing Receivable, Originated Three Years before Latest Fiscal Year	41
Financing Receivable, Originated Four Years before Latest Fiscal Year	1
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	35
Financing Receivable, Revolving	471
Total loans		493
Commercial mortgage | Commercial
Aging of loans
Loans held for investment	16,244
Financing Receivable, Originated in Current Fiscal Year	1,653
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	3,941
Financing Receivable, Originated Two Years before Latest Fiscal Year	3,374
Financing Receivable, Originated Three Years before Latest Fiscal Year	1,760
Financing Receivable, Originated Four Years before Latest Fiscal Year	1,650
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	3,786
Financing Receivable, Revolving	80
Total loans		16,895
Commercial mortgage | Commercial | Pass [Member]
Aging of loans
Loans held for investment	14,624
Financing Receivable, Originated in Current Fiscal Year	1,636
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	3,730
Financing Receivable, Originated Two Years before Latest Fiscal Year	2,778
Financing Receivable, Originated Three Years before Latest Fiscal Year	1,708
Financing Receivable, Originated Four Years before Latest Fiscal Year	1,527
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	3,180
Financing Receivable, Revolving	65
Total loans		16,569
Commercial mortgage | Commercial | Special Mention [Member]
Aging of loans
Loans held for investment	677
Financing Receivable, Originated in Current Fiscal Year	16
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	109
Financing Receivable, Originated Two Years before Latest Fiscal Year	245
Financing Receivable, Originated Three Years before Latest Fiscal Year	44
Financing Receivable, Originated Four Years before Latest Fiscal Year	54
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	194
Financing Receivable, Revolving	15
Total loans		114
Commercial mortgage | Commercial | Classified [Member]
Aging of loans
Loans held for investment	943
Financing Receivable, Originated in Current Fiscal Year	1
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	102
Financing Receivable, Originated Two Years before Latest Fiscal Year	351
Financing Receivable, Originated Three Years before Latest Fiscal Year	8
Financing Receivable, Originated Four Years before Latest Fiscal Year	69
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	412
Financing Receivable, Revolving	0
Total loans		212
Construction | Commercial
Aging of loans
Loans held for investment	1,655
Financing Receivable, Originated in Current Fiscal Year	306
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	729
Financing Receivable, Originated Two Years before Latest Fiscal Year	450
Financing Receivable, Originated Three Years before Latest Fiscal Year	119
Financing Receivable, Originated Four Years before Latest Fiscal Year	8
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	19
Financing Receivable, Revolving	24
Total loans		1,511
Construction | Commercial | Pass [Member]
Aging of loans
Loans held for investment	1,443
Financing Receivable, Originated in Current Fiscal Year	305
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	717
Financing Receivable, Originated Two Years before Latest Fiscal Year	321
Financing Receivable, Originated Three Years before Latest Fiscal Year	74
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2
Financing Receivable, Revolving	24
Total loans		1,399
Construction | Commercial | Special Mention [Member]
Aging of loans
Loans held for investment	165
Financing Receivable, Originated in Current Fiscal Year	1
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	12
Financing Receivable, Originated Two Years before Latest Fiscal Year	108
Financing Receivable, Originated Three Years before Latest Fiscal Year	36
Financing Receivable, Originated Four Years before Latest Fiscal Year	8
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Total loans		50
Construction | Commercial | Classified [Member]
Aging of loans
Loans held for investment	47
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	21
Financing Receivable, Originated Three Years before Latest Fiscal Year	9
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	17
Financing Receivable, Revolving	0
Total loans		$ 62
Lease financing | Commercial
Aging of loans
Loans held for investment	1,038
Financing Receivable, Originated in Current Fiscal Year	387
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	140
Financing Receivable, Originated Two Years before Latest Fiscal Year	1
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	48
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	462
Financing Receivable, Revolving	0
Lease financing | Commercial | Pass [Member]
Aging of loans
Loans held for investment	1,038
Financing Receivable, Originated in Current Fiscal Year	387
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	140
Financing Receivable, Originated Two Years before Latest Fiscal Year	1
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	48
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	462
Financing Receivable, Revolving	0
Lease financing | Commercial | Special Mention [Member]
Aging of loans
Loans held for investment	0
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Lease financing | Commercial | Classified [Member]
Aging of loans
Loans held for investment	0
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	$ 0

XML

Loans and Allowance for Loan Losses - Consumer Portfolio Segment Credit Quality Based on Payment Status (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Aging of loans
Loans held for investment	$ 82,166	$ 88,213
Nonaccrual	711	328
Consumer Portfolio Segment [Member]
Aging of loans
Financing Receivable, Originated in Current Fiscal Year	4,673
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	5,930
Financing Receivable, Originated Two Years before Latest Fiscal Year	3,164
Financing Receivable, Originated Three Years before Latest Fiscal Year	5,394
Financing Receivable, Originated Four Years before Latest Fiscal Year	5,040
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	6,537
Financing Receivable, Revolving	$ 1,279
Financing Receivable, Originated in Current Fiscal Year, Percentage Of Total	15.00%
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year, Percentage Of Total	18.00%
Financing Receivable, Originated Two Years before Latest Fiscal Year, Percentage Of Total	10.00%
Financing Receivable, Originated Three Years before Latest Fiscal Year, Percentage Of Total	17.00%
Financing Receivable, Originated Four Years before Latest Fiscal Year, Percentage Of Total	16.00%
Financing Receivable, Originated Five or More Years before Latest Fiscal Year, Percentage Of Total	20.00%
Financing Receivable, Revolving, Percentage Of Total	4.00%
Loans held for investment	$ 32,017	42,468
Financing Receivable Before Allowance For Credit Loss, Percentage	100.00%
Accrual		42,327
Nonaccrual	$ 184	138
Loans and Leases Receivable Net of Deferred Income and Purchased Credit Impaired Loans		42,465
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
Aging of loans
Financing Receivable, Originated in Current Fiscal Year	4,067
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	4,291
Financing Receivable, Originated Two Years before Latest Fiscal Year	2,743
Financing Receivable, Originated Three Years before Latest Fiscal Year	5,365
Financing Receivable, Originated Four Years before Latest Fiscal Year	5,037
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	6,505
Financing Receivable, Revolving	1,026
Loans held for investment	29,034
Accrual		37,878
Nonaccrual		137
Loans and Leases Receivable Net of Deferred Income and Purchased Credit Impaired Loans		38,015
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member] | accrual
Aging of loans
Financing Receivable, Originated in Current Fiscal Year	4,067
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	4,284
Financing Receivable, Originated Two Years before Latest Fiscal Year	2,738
Financing Receivable, Originated Three Years before Latest Fiscal Year	5,354
Financing Receivable, Originated Four Years before Latest Fiscal Year	5,027
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	6,363
Financing Receivable, Revolving	1,018
Financing Receivable, Accrual, Before Allowance For Credit Loss	28,851
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member] | nonaccrual
Aging of loans
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	7
Financing Receivable, Originated Two Years before Latest Fiscal Year	5
Financing Receivable, Originated Three Years before Latest Fiscal Year	11
Financing Receivable, Originated Four Years before Latest Fiscal Year	10
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	142
Financing Receivable, Revolving	8
Financing Receivable, Accrual, Before Allowance For Credit Loss	183
Consumer Portfolio Segment [Member] | Other Consumer Loans [Member]
Aging of loans
Financing Receivable, Originated in Current Fiscal Year	606
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	1,639
Financing Receivable, Originated Two Years before Latest Fiscal Year	421
Financing Receivable, Originated Three Years before Latest Fiscal Year	29
Financing Receivable, Originated Four Years before Latest Fiscal Year	3
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	32
Financing Receivable, Revolving	253
Loans held for investment	2,983
Accrual		4,449
Nonaccrual		1
Loans and Leases Receivable Net of Deferred Income and Purchased Credit Impaired Loans		$ 4,450
Consumer Portfolio Segment [Member] | Other Consumer Loans [Member] | accrual
Aging of loans
Financing Receivable, Originated in Current Fiscal Year	606
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	1,639
Financing Receivable, Originated Two Years before Latest Fiscal Year	421
Financing Receivable, Originated Three Years before Latest Fiscal Year	29
Financing Receivable, Originated Four Years before Latest Fiscal Year	3
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	31
Financing Receivable, Revolving	253
Financing Receivable, Accrual, Before Allowance For Credit Loss	2,982
Consumer Portfolio Segment [Member] | Other Consumer Loans [Member] | nonaccrual
Aging of loans
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	1
Financing Receivable, Revolving	0
Financing Receivable, Accrual, Before Allowance For Credit Loss	$ 1

XML

Loans and Allowance for Loan Losses - Loans in Consumer Portfolio Segment Based on Refreshed FICO Scores (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2020
Credit quality of consumer loans
Financing Receivable, Nonaccrual	$ 328	$ 711
Consumer
Credit quality of consumer loans
Percentage of total	100.00%
Consumer | 720 and Above
Credit quality of consumer loans
Percentage of total	81.00%
Consumer | Below 720
Credit quality of consumer loans
Percentage of total	18.00%
Consumer | No FICO Available
Credit quality of consumer loans
Percentage of total	1.00%
Consumer | Other Consumer Loans [Member]
Credit quality of consumer loans
Financing Receivable, Nonaccrual	$ 1	1
Consumer | Other Consumer Loans [Member] | 720 and Above
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	2,567
Consumer | Other Consumer Loans [Member] | Below 720
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	1,841
Consumer | Other Consumer Loans [Member] | No FICO Available
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	3
Consumer | residential mortgage and home equity [Member]
Credit quality of consumer loans
Financing Receivable, Nonaccrual	137	183
Consumer | residential mortgage and home equity [Member] | 720 and Above
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	31,441
Consumer | residential mortgage and home equity [Member] | Below 720
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	5,742
Consumer | residential mortgage and home equity [Member] | No FICO Available
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	454
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		29,034
Financing Receivable, Originated in Current Fiscal Year		4,067
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		4,291
Financing Receivable, Originated Two Years before Latest Fiscal Year		2,743
Financing Receivable, Originated Three Years before Latest Fiscal Year		5,365
Financing Receivable, Originated Four Years before Latest Fiscal Year		5,037
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,505
Financing Receivable, Revolving		1,026
Consumer Portfolio Segment [Member]
Credit quality of consumer loans
Loans not covered		3
Financing Receivable Recorded Investment Accrual Status	42,327
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	42,048	32,017
Financing Receivable, Nonaccrual	138	184
Loans and Leases Receivable Net of Deferred Income and Purchased Credit Impaired Loans	42,465
Financing Receivable, Originated in Current Fiscal Year		4,673
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		5,930
Financing Receivable, Originated Two Years before Latest Fiscal Year		3,164
Financing Receivable, Originated Three Years before Latest Fiscal Year		5,394
Financing Receivable, Originated Four Years before Latest Fiscal Year		5,040
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,537
Financing Receivable, Revolving		$ 1,279
Financing Receivable, Originated in Current Fiscal Year, Percentage Of Total		15.00%
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year, Percentage Of Total		18.00%
Financing Receivable, Originated Two Years before Latest Fiscal Year, Percentage Of Total		10.00%
Financing Receivable, Originated Three Years before Latest Fiscal Year, Percentage Of Total		17.00%
Financing Receivable, Originated Four Years before Latest Fiscal Year, Percentage Of Total		16.00%
Financing Receivable, Originated Five or More Years before Latest Fiscal Year, Percentage Of Total		20.00%
Financing Receivable, Revolving, Percentage Of Total		4.00%
Financing Receivable Before Allowance For Credit Loss, Percentage		100.00%
Consumer Portfolio Segment [Member] | Other Consumer Loans [Member]
Credit quality of consumer loans
Financing Receivable Recorded Investment Accrual Status	4,449
Financing Receivable, Nonaccrual	1
Loans and Leases Receivable Net of Deferred Income and Purchased Credit Impaired Loans	4,450
Financing Receivable, Originated in Current Fiscal Year		$ 606
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		1,639
Financing Receivable, Originated Two Years before Latest Fiscal Year		421
Financing Receivable, Originated Three Years before Latest Fiscal Year		29
Financing Receivable, Originated Four Years before Latest Fiscal Year		3
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		32
Financing Receivable, Revolving		253
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
Credit quality of consumer loans
Financing Receivable Recorded Investment Accrual Status	37,878
Financing Receivable, Nonaccrual	137
Loans and Leases Receivable Net of Deferred Income and Purchased Credit Impaired Loans	38,015
Financing Receivable, Originated in Current Fiscal Year		4,067
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		4,291
Financing Receivable, Originated Two Years before Latest Fiscal Year		2,743
Financing Receivable, Originated Three Years before Latest Fiscal Year		5,365
Financing Receivable, Originated Four Years before Latest Fiscal Year		5,037
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,505
Financing Receivable, Revolving		1,026
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	37,637	29,034
Financing Receivable, Originated in Current Fiscal Year		4,067
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		4,291
Financing Receivable, Originated Two Years before Latest Fiscal Year		2,743
Financing Receivable, Originated Three Years before Latest Fiscal Year		5,365
Financing Receivable, Originated Four Years before Latest Fiscal Year		5,037
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,505
Financing Receivable, Revolving		$ 1,026
Financing Receivable, Originated in Current Fiscal Year, Percentage Of Total		14.00%
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year, Percentage Of Total		15.00%
Financing Receivable, Originated Two Years before Latest Fiscal Year, Percentage Of Total		9.00%
Financing Receivable, Originated Three Years before Latest Fiscal Year, Percentage Of Total		18.00%
Financing Receivable, Originated Four Years before Latest Fiscal Year, Percentage Of Total		17.00%
Financing Receivable, Originated Five or More Years before Latest Fiscal Year, Percentage Of Total		23.00%
Financing Receivable, Revolving, Percentage Of Total		4.00%
Financing Receivable Before Allowance For Credit Loss, Percentage		100.00%
Consumer Portfolio Segment [Member] | Other Consumer Loans [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	4,411	$ 2,983
Financing Receivable, Originated in Current Fiscal Year		606
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		1,639
Financing Receivable, Originated Two Years before Latest Fiscal Year		421
Financing Receivable, Originated Three Years before Latest Fiscal Year		29
Financing Receivable, Originated Four Years before Latest Fiscal Year		3
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		32
Financing Receivable, Revolving		253
No FICO Available | Consumer Portfolio Segment [Member] | Other Consumer Loans [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		27
No FICO Available | Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		489
Financing Receivable, Originated in Current Fiscal Year		25
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		18
Financing Receivable, Originated Two Years before Latest Fiscal Year		18
Financing Receivable, Originated Three Years before Latest Fiscal Year		76
Financing Receivable, Originated Four Years before Latest Fiscal Year		38
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		301
Financing Receivable, Revolving		13
No FICO Available | Consumer Portfolio Segment [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	457
No FICO Available | Consumer Portfolio Segment [Member] | Other Consumer Loans [Member]
Credit quality of consumer loans
Financing Receivable, Originated in Current Fiscal Year		0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0
Financing Receivable, Originated Three Years before Latest Fiscal Year		0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		25
Financing Receivable, Revolving		2
Below 720 | Consumer Portfolio Segment [Member] | Other Consumer Loans [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		1,194
Below 720 | Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		4,040
Financing Receivable, Originated in Current Fiscal Year		419
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		477
Financing Receivable, Originated Two Years before Latest Fiscal Year		460
Financing Receivable, Originated Three Years before Latest Fiscal Year		762
Financing Receivable, Originated Four Years before Latest Fiscal Year		609
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		1,121
Financing Receivable, Revolving		192
Below 720 | Consumer Portfolio Segment [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	7,583
Below 720 | Consumer Portfolio Segment [Member] | Other Consumer Loans [Member]
Credit quality of consumer loans
Financing Receivable, Originated in Current Fiscal Year		214
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		672
Financing Receivable, Originated Two Years before Latest Fiscal Year		163
Financing Receivable, Originated Three Years before Latest Fiscal Year		11
Financing Receivable, Originated Four Years before Latest Fiscal Year		1
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		2
Financing Receivable, Revolving		131
720 and Above | Consumer Portfolio Segment [Member] | Other Consumer Loans [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		1,762
720 and Above | Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		24,505
Financing Receivable, Originated in Current Fiscal Year		3,623
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		3,796
Financing Receivable, Originated Two Years before Latest Fiscal Year		2,265
Financing Receivable, Originated Three Years before Latest Fiscal Year		4,527
Financing Receivable, Originated Four Years before Latest Fiscal Year		4,390
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		5,083
Financing Receivable, Revolving		821
720 and Above | Consumer Portfolio Segment [Member]
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	$ 34,008
720 and Above | Consumer Portfolio Segment [Member] | Other Consumer Loans [Member]
Credit quality of consumer loans
Financing Receivable, Originated in Current Fiscal Year		392
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		967
Financing Receivable, Originated Two Years before Latest Fiscal Year		258
Financing Receivable, Originated Three Years before Latest Fiscal Year		18
Financing Receivable, Originated Four Years before Latest Fiscal Year		2
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		5
Financing Receivable, Revolving		$ 120

XML

Loans and Allowance for Loan Losses - Loans in Consumer Portfolio Segment Based on Refreshed LTV ratios (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2020
Consumer
Credit quality of consumer loans
Percentage of total	100.00%
Consumer | Less than or Equal to 80 Percent
Credit quality of consumer loans
Percentage of total	95.00%
Consumer | Greater than 80 and Less than 100 Percent
Credit quality of consumer loans
Percentage of total	5.00%
Consumer | Greater than or Equal to 100 Percent
Credit quality of consumer loans
Percentage of total	0.00%
Consumer | No LTV Available
Credit quality of consumer loans
Percentage of total	0.00%
Consumer | residential mortgage and home equity [Member] | Less than or Equal to 80 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	$ 35,893
Consumer | residential mortgage and home equity [Member] | Greater than 80 and Less than 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	1,689
Consumer | residential mortgage and home equity [Member] | Greater than or Equal to 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio	12
Consumer | residential mortgage and home equity [Member] | No LTV Available
Credit quality of consumer loans
Loans categorized by LTV ratio	43
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
Credit quality of consumer loans
Financing Receivable, Originated in Current Fiscal Year		$ 4,067
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		4,291
Financing Receivable, Originated Two Years before Latest Fiscal Year		2,743
Financing Receivable, Originated Three Years before Latest Fiscal Year		5,365
Financing Receivable, Originated Four Years before Latest Fiscal Year		5,037
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,505
Financing Receivable, Revolving		1,026
Financing Receivable Recorded Investment Excluding Loans Serviced by Third Parties and Covered Loans		29,034
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member] | Less than or Equal to 80 Percent
Credit quality of consumer loans
Financing Receivable Recorded Investment Excluding Loans Serviced by Third Parties and Covered Loans		28,499
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member] | Greater than 80 and Less than 100 Percent
Credit quality of consumer loans
Financing Receivable Recorded Investment Excluding Loans Serviced by Third Parties and Covered Loans		496
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member] | Greater than or Equal to 100 Percent
Credit quality of consumer loans
Financing Receivable Recorded Investment Excluding Loans Serviced by Third Parties and Covered Loans		2
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member] | No LTV Available
Credit quality of consumer loans
Financing Receivable Recorded Investment Excluding Loans Serviced by Third Parties and Covered Loans		37
Consumer Portfolio Segment [Member]
Credit quality of consumer loans
Loans categorized by LTV ratio	37,637
Financing Receivable, Originated in Current Fiscal Year		4,673
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		5,930
Financing Receivable, Originated Two Years before Latest Fiscal Year		3,164
Financing Receivable, Originated Three Years before Latest Fiscal Year		5,394
Financing Receivable, Originated Four Years before Latest Fiscal Year		5,040
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,537
Financing Receivable, Revolving		1,279
Financing Receivable Recorded Investment Excluding Loans Serviced by Third Parties and Covered Loans	42,048	$ 32,017
Financing Receivable, Originated in Current Fiscal Year, Percentage Of Total		15.00%
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year, Percentage Of Total		18.00%
Financing Receivable, Originated Two Years before Latest Fiscal Year, Percentage Of Total		10.00%
Financing Receivable, Originated Three Years before Latest Fiscal Year, Percentage Of Total		17.00%
Financing Receivable, Originated Four Years before Latest Fiscal Year, Percentage Of Total		16.00%
Financing Receivable, Originated Five or More Years before Latest Fiscal Year, Percentage Of Total		20.00%
Financing Receivable, Revolving, Percentage Of Total		4.00%
Financing Receivable Before Allowance For Credit Loss, Percentage		100.00%
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
Credit quality of consumer loans
Financing Receivable, Originated in Current Fiscal Year		$ 4,067
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		4,291
Financing Receivable, Originated Two Years before Latest Fiscal Year		2,743
Financing Receivable, Originated Three Years before Latest Fiscal Year		5,365
Financing Receivable, Originated Four Years before Latest Fiscal Year		5,037
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,505
Financing Receivable, Revolving		1,026
Consumer Portfolio Segment [Member] | Residential mortgage
Credit quality of consumer loans
Loans categorized by LTV ratio	37,637
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
Credit quality of consumer loans
Financing Receivable, Originated in Current Fiscal Year		4,067
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		4,291
Financing Receivable, Originated Two Years before Latest Fiscal Year		2,743
Financing Receivable, Originated Three Years before Latest Fiscal Year		5,365
Financing Receivable, Originated Four Years before Latest Fiscal Year		5,037
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,505
Financing Receivable, Revolving		1,026
Financing Receivable Recorded Investment Excluding Loans Serviced by Third Parties and Covered Loans	37,637	$ 29,034
Financing Receivable, Originated in Current Fiscal Year, Percentage Of Total		14.00%
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year, Percentage Of Total		15.00%
Financing Receivable, Originated Two Years before Latest Fiscal Year, Percentage Of Total		9.00%
Financing Receivable, Originated Three Years before Latest Fiscal Year, Percentage Of Total		18.00%
Financing Receivable, Originated Four Years before Latest Fiscal Year, Percentage Of Total		17.00%
Financing Receivable, Originated Five or More Years before Latest Fiscal Year, Percentage Of Total		23.00%
Financing Receivable, Revolving, Percentage Of Total		4.00%
Financing Receivable Before Allowance For Credit Loss, Percentage		100.00%
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member] | Less than or Equal to 80 Percent
Credit quality of consumer loans
Financing Receivable, Originated in Current Fiscal Year		$ 3,924
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		4,157
Financing Receivable, Originated Two Years before Latest Fiscal Year		2,631
Financing Receivable, Originated Three Years before Latest Fiscal Year		5,339
Financing Receivable, Originated Four Years before Latest Fiscal Year		5,032
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,455
Financing Receivable, Revolving		961
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member] | Greater than 80 and Less than 100 Percent
Credit quality of consumer loans
Financing Receivable, Originated in Current Fiscal Year		139
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		133
Financing Receivable, Originated Two Years before Latest Fiscal Year		111
Financing Receivable, Originated Three Years before Latest Fiscal Year		25
Financing Receivable, Originated Four Years before Latest Fiscal Year		4
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		23
Financing Receivable, Revolving		61
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member] | Greater than or Equal to 100 Percent
Credit quality of consumer loans
Financing Receivable, Originated in Current Fiscal Year		0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0
Financing Receivable, Originated Three Years before Latest Fiscal Year		0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		2
Financing Receivable, Revolving		0
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member] | No LTV Available
Credit quality of consumer loans
Financing Receivable, Originated in Current Fiscal Year		4
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		1
Financing Receivable, Originated Two Years before Latest Fiscal Year		1
Financing Receivable, Originated Three Years before Latest Fiscal Year		1
Financing Receivable, Originated Four Years before Latest Fiscal Year		1
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		25
Financing Receivable, Revolving		$ 4
No LTV Available | Consumer Portfolio Segment [Member]
Credit quality of consumer loans
Loans categorized by LTV ratio	43
Greater than or Equal to 100 Percent | Consumer Portfolio Segment [Member]
Credit quality of consumer loans
Loans categorized by LTV ratio	12
Greater than 80 and Less than 100 Percent | Consumer Portfolio Segment [Member]
Credit quality of consumer loans
Loans categorized by LTV ratio	1,689
Less than or Equal to 80 Percent | Consumer Portfolio Segment [Member]
Credit quality of consumer loans
Loans categorized by LTV ratio	$ 35,893

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Loans and Allowance for Loan Losses - Summary of Recorded Investment in TDR's (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Pre- and Post - modification recorded investments
Commitment to lend additional funds to borrowers with loan modifications classified as TDRs	$ 24	$ 61
Total restructured loans	491	563
Commercial | Commercial and industrial
Pre- and Post - modification recorded investments
Total restructured loans	73	140
Commercial | Commercial mortgage
Pre- and Post - modification recorded investments
Total restructured loans	140	168
Commercial | Construction
Pre- and Post - modification recorded investments
Total restructured loans	28	62
Consumer | Residential mortgage
Pre- and Post - modification recorded investments
Total restructured loans	248	192
Consumer | Other Consumer Loans [Member]
Pre- and Post - modification recorded investments
Total restructured loans	2	1
Consumer Portfolio Segment [Member]
Pre- and Post - modification recorded investments
Total restructured loans	250	193
Consumer Portfolio Segment [Member] | Impact from COVID-19
Pre- and Post - modification recorded investments
Loan Restructuring, Trial Modifications, Amount	1,400
Commercial Portfolio Segment [Member]
Pre- and Post - modification recorded investments
Total restructured loans	241	$ 370
Commercial Portfolio Segment [Member] | Impact from COVID-19
Pre- and Post - modification recorded investments
Loan Restructuring, Trial Modifications, Amount	$ 1,000

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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, 2020	Dec. 31, 2019
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	$ 212	$ 310
Post-Modification Outstanding Recorded Investment	212	308
Commercial | Commercial mortgage
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	4	129
Post-Modification Outstanding Recorded Investment	5	125
Commercial Portfolio Segment [Member]
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	112	299
Post-Modification Outstanding Recorded Investment	112	297
Commercial Portfolio Segment [Member] | Commercial and industrial
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	108	170
Post-Modification Outstanding Recorded Investment	107	172
Consumer Portfolio Segment [Member]
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	100	11
Post-Modification Outstanding Recorded Investment	100	11
Consumer Portfolio Segment [Member] | residential mortgage and home equity [Member]
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	100	11
Post-Modification Outstanding Recorded Investment	$ 100	$ 11

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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, 2020	Dec. 31, 2019
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	$ 31	$ 42
Minimum defaulting period	60 days
Commercial | Commercial and industrial
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	$ 29	40
Commercial | Commercial mortgage
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	1	1
Consumer | residential mortgage and home equity [Member]
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	1	1
Consumer Portfolio Segment [Member]
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	1	1
Consumer Portfolio Segment [Member] | Impact from COVID-19
Pre- and Post - modification recorded investments
Loan Restructuring, Trial Modifications, Amount	1,400
Commercial Portfolio Segment [Member]
Pre- and Post - modification recorded investments
Total troubled debt restructured loans at date of default	30	$ 41
Commercial Portfolio Segment [Member] | Impact from COVID-19
Pre- and Post - modification recorded investments
Loan Restructuring, Trial Modifications, Amount	$ 1,000

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Loans and Allowance for Loan Losses - Accretable Yield for Purchased Credit-Impaired Loans (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Concentrations of Credit Risk
Loans	$ 82,166	$ 88,213
Consumer | Residential mortgage | Notes Receivable [Member]
Concentrations of Credit Risk
Loans	27,000
Commercial | Notes Receivable [Member] | Financial and Insurance [Member]
Concentrations of Credit Risk
Loans	10,000
Additional unfunded commitments to extend credit	9,000
Commercial | Notes Receivable [Member] | Power and Utilities [Member]
Concentrations of Credit Risk
Loans	4,000
Additional unfunded commitments to extend credit	6,000
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	5,000
Commercial | Commercial mortgage | Notes Receivable [Member]
Concentrations of Credit Risk
Loans	17,000
Additional unfunded commitments to extend credit	$ 4,000

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Loans and Allowance for Loan Losses - Narrative (Details) $ in Millions	Dec. 31, 2020 USD ($)
Loans disclosures
Financing receivable, accrued interest receivable	$ 242
Impact from COVID-19
Loans disclosures
Financing receivable, allowance for uncollectible accrued interest	$ 1

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Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Changes in the carrying amount of goodwill
Goodwill, Impairment Loss	$ 357	$ 1,600	$ 357	$ 1,614	$ 0
Goodwill	1,407	1,764	1,407	1,764	3,301
Goodwill, Acquired During Period			0	77
Goodwill, Gross	3,378	3,378	3,378	3,378
Goodwill, Impaired, Accumulated Impairment Loss	(1,971)	(1,614)	(1,971)	(1,614)
Operating segments | Global Corporate & Investment Banking U.S. [Member]
Changes in the carrying amount of goodwill
Goodwill, Impairment Loss			270	191
Goodwill	483	667	483	667	840
Goodwill, Acquired During Period			86	18
Goodwill, Gross	944	858	944	858
Goodwill, Impaired, Accumulated Impairment Loss	(461)	(191)	(461)	(191)
Operating segments | Regional Bank
Changes in the carrying amount of goodwill
Goodwill, Impairment Loss			87	1,423
Goodwill	683	770	683	770	2,134
Goodwill, Acquired During Period			0	59
Goodwill, Gross	2,193	2,193	2,193	2,193
Goodwill, Impaired, Accumulated Impairment Loss	(1,510)	(1,423)	(1,510)	(1,423)
Operating segments | Transaction Banking
Changes in the carrying amount of goodwill
Goodwill, Impairment Loss			0	0
Goodwill	165	251	165	251	251
Goodwill, Acquired During Period			(86)	0
Goodwill, Gross	165	251	165	251
Goodwill, Impaired, Accumulated Impairment Loss	0	0	0	0
Operating segments | MUFG Fund Services [Member]
Changes in the carrying amount of goodwill
Goodwill	76	76	76	76	$ 76
Goodwill, Gross	76	76	76	76
Goodwill, Impaired, Accumulated Impairment Loss	0	$ 0	0	0
Operating segments | Commercial Banking and Real Estate Industries
Changes in the carrying amount of goodwill
Goodwill	$ 640		640
Other (1)
Changes in the carrying amount of goodwill
Goodwill, Impairment Loss			0	0
Goodwill, Acquired During Period			$ 0	$ 0

XML

Goodwill and Other Intangible Assets - Identifiable Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Intangible Assets
Amortization Expense	$ 20	$ 34	$ 26
Gross Carrying Amount	891	931
Accumulated Amortization	(689)	(670)
Net Carrying Amount	202	261
Core deposit intangibles
Intangible Assets
Gross Carrying Amount	565	565
Accumulated Amortization	(547)	(543)
Net Carrying Amount	18	22
Trade names
Intangible Assets
Gross Carrying Amount	115	115
Accumulated Amortization	(38)	(35)
Net Carrying Amount	77	80
Customer Relationships
Intangible Assets
Gross Carrying Amount	198	238
Accumulated Amortization	(91)	(79)
Net Carrying Amount	107	159
Other intangibles assets
Intangible Assets
Gross Carrying Amount	13	13
Accumulated Amortization	(13)	(13)
Net Carrying Amount	$ 0	$ 0

XML

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Schedule Of Estimated Future Amortization Expense
2017	$ 16
2018	16
2019	13
2020	13
2021	12
Thereafter	132
Net Carrying Amount	202	$ 261
Core deposit intangibles
Schedule Of Estimated Future Amortization Expense
2017	4
2018	4
2019	2
2020	2
2021	2
Thereafter	4
Net Carrying Amount	18	22
Trade names
Schedule Of Estimated Future Amortization Expense
2017	3
2018	3
2019	3
2020	3
2021	3
Thereafter	62
Net Carrying Amount	77	80
Customer Relationships
Schedule Of Estimated Future Amortization Expense
2017	9
2018	9
2019	8
2020	8
2021	7
Thereafter	66
Net Carrying Amount	107	159
Other
Schedule Of Estimated Future Amortization Expense
Net Carrying Amount	$ 0	$ 0

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Other Assets - Premises and Equipment Carried at Cost (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Premises and Equipment
Net Book Value	$ 650	$ 656

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Other Assets - Other Assets (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Other Assets
Other investments	$ 2,721	$ 3,033
Property, Plant and Equipment, Net	650	656
Software	607	527
Intangible assets	313	531
Other	5,625	5,453
Total other assets	$ 9,916	$ 10,200

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Variable Interest Entities - Consolidated VIEs (Details) $ in Millions	Dec. 31, 2020 USD ($) investment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Consolidated Assets
Interest Bearing Deposits in Banks	$ 14,309	$ 7,184
Loans Held for Investment, Net	80,893	87,675
Other assets	9,916	10,200
Total assets	167,846	170,810	$ 168,100
Consolidated Liabilities
Other liabilities	2,906	2,837
Total liabilities	150,567	154,443
Consolidated VIEs
Consolidated Assets
Loans Held for Investment, Net	310	349
Other assets	192	213
Total assets	502	562
Consolidated Liabilities
Other liabilities	21	45
Total liabilities	21	45
Consolidated VIEs | LIHC investments
Consolidated Assets
Other assets	81	96
Total assets	81	96
Consolidated Liabilities
Other liabilities	16	36
Total liabilities	$ 16	36
Number of LIHC investment fund | investment	2
Consolidated VIEs | Leasing investments
Consolidated Assets
Loans Held for Investment, Net	$ 310	349
Other assets	111	117
Total assets	421	466
Consolidated Liabilities
Other liabilities	5	9
Total liabilities	$ 5	$ 9

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Variable Interest Entities - Unconsolidated VIEs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Unconsolidated Assets [Abstract]
Interest bearing deposits in banks	$ 14,309	$ 7,184
Securities Available for Sale	18,259	17,789
Loans held for investment	82,166	88,213
Other assets	9,916	10,200
Unconsolidated Liabilities
Other Liabilities	2,906	2,837
Total liabilities	150,567	154,443
Total assets, end of period	167,846	170,810	$ 168,100
Unconsolidated VIEs
Unconsolidated Assets [Abstract]
Securities Available for Sale	26	27
Loans held for investment	256	232
Other assets	2,134	2,197
Unconsolidated Liabilities
Other Liabilities	213	152
Total liabilities	213	152
Maximum Exposure to Loss	2,535	2,557
Total assets, end of period	2,416	2,456
LIHC investments | Unconsolidated VIEs
Variable Interest Entities
Carrying amount of liabilities assumed	79	43	$ 87
Leasing investments | Unconsolidated VIEs
Unconsolidated Assets [Abstract]
Other assets	1,215	1,256
Unconsolidated Liabilities
Maximum Exposure to Loss	1,235	1,276
Total assets, end of period	1,215	1,256
Other investments | Unconsolidated VIEs
Unconsolidated Assets [Abstract]
Loans held for investment		13
Other assets	88	69
Unconsolidated Liabilities
Other Liabilities	4	4
Total liabilities	4	4
Maximum Exposure to Loss	187	163
Total assets, end of period	88	82
LIHC investments | Unconsolidated VIEs
Unconsolidated Assets [Abstract]
Securities Available for Sale	26	27
Loans held for investment	256	219
Other assets	831	872
Unconsolidated Liabilities
Other Liabilities	209	148
Total liabilities	209	148
Maximum Exposure to Loss	1,113	1,118
Total assets, end of period	$ 1,113	$ 1,118

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Variable Interest Entities Unconsolidated LIHC Investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Loans held for investment	$ 82,166	$ 88,213
Non Interest Expenses
Variable Interest Entity [Line Items]
Losses from LIHC investments included in other noninterest expense	(4)	(6)	$ (7)
Income Tax Expense
Variable Interest Entity [Line Items]
Amortization of LIHC investments included in income tax expense	124	130	136
Tax credits and other tax benefits from LIHC investments included in income tax expense	156	178	$ 180
Unconsolidated VIEs
Variable Interest Entity [Line Items]
Loans held for investment	$ 256	$ 232

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Deposits (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Deposits [Abstract]
Time deposits, in excess of FDIC insurance	$ 3,700	$ 7,500
Interest bearing time deposits with remaining term of greater than one year	$ 7,419

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Deposits - Schedule of Maturities of Time Deposits (Details) $ in Millions	Dec. 31, 2020 USD ($)
Deposits [Abstract]
Due in one year or less	$ 6,677
Due after one year through two years	549
Due after two years through three years	83
Due after three years through four years	76
Due after four years through five years	34
Due after five years	0
Total	$ 7,419

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Securities Financing Agreements (Gross Obligations to Repurchase, Securities Loaned, and Class of Collateral Pledged) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	$ 33,126	$ 33,911
Securities loaned	862	495
Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	19,956
Securities loaned	378	259
Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	25,165	4,192
Securities loaned	243	236
31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	7,961	9,661
Securities loaned	241	0
Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	102
Securities loaned	0	0
US Treasury and Government [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	14,938	14,943
US Treasury and Government [Member] | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	12,219
US Treasury and Government [Member] | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	14,642	2,237
US Treasury and Government [Member] | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	296	385
US Treasury and Government [Member] | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	102
Corporate bonds
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	1,432	1,873
Securities loaned	1	2
Corporate bonds | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	688
Securities loaned	1	2
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	676	24
Securities loaned	0	0
Corporate bonds | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	756	1,161
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, Gross	778	860
Municipal bonds | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	327
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	401	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	377	533
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, Gross	2,444	2,205
Securities loaned	609	493
Equity securities | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	0	1,400
Securities loaned	366	257
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	1,377	349
Securities loaned	243	236
Equity securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	1,067	456
Securities loaned	0	0
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
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Sold under Agreements to Repurchase, Gross	13,534	14,030
U.S. government agency and government-sponsored agencies - residential 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	0	5,322
U.S. government agency and government-sponsored agencies - residential 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	8,069	1,582
U.S. government agency and government-sponsored agencies - residential 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	5,465	7,126
U.S. government agency and government-sponsored agencies - residential 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	0
Other Security Investments
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	252	0
Other Security Investments | Maturity Overnight [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	11	0
Other Security Investments | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	0	0
Other Security Investments | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	241	0
Other Security Investments | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	$ 0	$ 0

XML

Securities Financing Agreements (Offsetting Financing Assets and Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Derivative assets
Gross Amounts of Recognized Assets/Liabilities	$ 2,313	$ 1,233
Gross Amounts Offset in Balance Sheet	432	264
Net Amounts Presented in Balance Sheet	1,881	969
Gross Amounts Not Offset In Balance Sheet, Financial Instruments	38	26
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	0
Net Amount	1,843	943
Securities borrowed or purchased under resale agreements
Gross Amounts of Recognized Assets/Liabilities	24,435	29,483
Gross Amounts Offset in Balance Sheet	6,827	5,540
Net Amounts Presented in Balance Sheet	17,608	23,943
Gross Amounts Not Offset in Balance Sheet, Financial Instruments	17,539	23,844
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	0
Net Amount	69	99
Total Financial Assets
Gross Amounts of Recognized Assets/Liabilities	26,748	30,716
Gross Amounts Offset in Balance Sheet	7,259	5,804
Net Amounts Presented in Balance Sheet	19,489	24,912
Gross Amounts Not Offset In Balance Sheet, Financial Instruments	17,577	23,870
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	0
Net Amount	1,912	1,042
Derivative liabilities
Gross Amounts of Recognized Assets/Liabilities	1,029	523
Gross Amounts Offset in Balance Sheet	675	306
Net Amounts Presented in Balance Sheet	354	217
Gross Amount Not Offset in Balance Sheet, Financial Instruments	174	129
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	1
Net Amount	180	87
Securities loaned or sold under repurchase agreements
Gross Amounts of Recognized Assets/Liabilities	33,988	34,406
Gross Amounts Offset in Balance Sheet	6,827	5,540
Net Amounts Presented in Balance Sheet	27,161	28,866
Gross Amounts Not Offset in Balance Sheet, Financial Instruments	26,063	27,957
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	0
Net Amount	1,098	909
Total Financial Liabilities
Gross Amounts of Recognized Assets/Liabilities	35,017	34,929
Gross Amounts Offset in Balance Sheet	7,502	5,846
Net Amounts Presented in Balance Sheet	27,515	29,083
Gross Amount Not Offset in Balance Sheet, Financial Instruments	26,237	28,086
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	1
Net Amount	$ 1,278	$ 996

XML

Commercial Paper and Other Short-Term Borrowings - Summary of Commercial Paper and Other Short-Term Borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Commercial Paper and Short-Term Borrowings
Total commercial paper and other short-term borrowings	$ 110	$ 6,484
MUFG Union Bank N.A [Member]
Commercial Paper and Short-Term Borrowings
Total commercial paper and other short-term borrowings	23	6,158
MUAH
Commercial Paper and Short-Term Borrowings
Short-term debt due to MUFG Bank, Ltd., with weighted average interest rates of 0.60% and 2.27% at December 31, 2020 and December 31, 2019, respectively	9	69
Total commercial paper and other short-term borrowings	87	$ 326
Weighted average interest rate		2.27%
Commercial paper | MUFG Union Bank N.A [Member]
Commercial Paper and Short-Term Borrowings
Commercial paper, with a weighted average interest rate of 0.16% and 1.98% at December 31, 2020 and December 31, 2019, respectively	$ 23	$ 58
Weighted average interest rate	0.16%	1.98%
Federal Home Loan Bank advances | MUFG Union Bank N.A [Member]
Commercial Paper and Short-Term Borrowings
Federal Home Loan Bank advances, with a weighted average interest rate of 1.86% at December 31, 2019	$ 0	$ 6,100
Weighted average interest rate	0.00%	1.86%
Parent Company [Member] | MUAH
Commercial Paper and Short-Term Borrowings
Weighted average interest rate	0.60%
Affiliated Entity | MUAH
Commercial Paper and Short-Term Borrowings
Short-term debt due to affiliates, with weighted average interest rates of (-0.08)% and (-0.10)% at December 31, 2020 and December 31, 2019, respectively	$ 78	$ 257
Weighted average interest rate	(0.08%)	(0.10%)

XML

Commercial Paper and Other Short-Term Borrowings - Narrative (Details) $ in Millions, ¥ in Billions	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2020 JPY (¥)	Dec. 31, 2019 USD ($)
Commercial paper
Standby Letters of Credit
Weighted average remaining maturity days	129 days
MUFG Union Bank N.A [Member]
Standby Letters of Credit
Weighted average remaining maturity days	88 days
Affiliated Entity
Standby Letters of Credit
Weighted average remaining maturity days	260 days
Affiliated Entity | MUAH
Standby Letters of Credit
Amount drawn under facility	$ 78		$ 257
Affiliated Entity | MUSA
Standby Letters of Credit
Amount drawn under facility	77	¥ 8
Unsecured Debt [Member] | MUSA and Various other Non-Bank Subsidiaries
Standby Letters of Credit
Revolving credit facility borrowing capacity	1,600
Line of Credit | MUAH
Standby Letters of Credit
Revolving credit facility borrowing capacity	$ 1,600	¥ 160
Maturity extension period	100 days

XML

Long-Term Debt (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Debt Instrument [Line Items]
Long-term debt	$ 14,631,000,000	$ 17,129,000,000
Repayments of Long-term Debt	6,166,000,000	6,471,000,000	$ 9,655,000,000
Federal Home Loan advances, collateral pledged	34,700,000,000	45,300,000,000
MUFG Americas Holdings Corporation
Debt Instrument [Line Items]
Long-term debt	$ 7,276,000,000	7,622,000,000
MUFG Americas Holdings Corporation | Senior Debt Obligations
Debt Instrument [Line Items]
Redeemable debt, percentage of par value	100.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Fixed rate 3.50% notes due June 2022
Debt Instrument [Line Items]
Long-term debt	$ 399,000,000	$ 399,000,000
Debt instrument, stated rate	350.00%	350.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Fixed rate 3.00% notes due February 2025
Debt Instrument [Line Items]
Long-term debt	$ 398,000,000	$ 397,000,000
Debt instrument, stated rate	300.00%	300.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due December 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 3,250,000,000
Debt Instrument, Basis Spread on Variable Rate	0.00%	303.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due December 2022 [Member] | LIBOR
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.00%	90.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due December 2022 issued in Q3 2019 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 125,000,000
Debt Instrument, Basis Spread on Variable Rate	0.00%	307.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due December 2022 issued in Q3 2019 [Member] | LIBOR
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.00%	97.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due December 2023 LIBOR [Member]
Debt Instrument [Line Items]
Long-term debt	$ 1,625,000,000	$ 1,625,000,000
Debt Instrument, Basis Spread on Variable Rate	123.00%	312.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due December 2023 LIBOR [Member] | LIBOR
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	99.00%	99.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due December 2023 LIBOR Issued in Q42019 [Member] [Member]
Debt Instrument [Line Items]
Long-term debt	$ 1,765,000,000	$ 1,765,000,000
Debt Instrument, Basis Spread on Variable Rate	115.00%	282.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due December 2023 LIBOR Issued in Q42019 [Member] [Member] | LIBOR
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	94.00%	94.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | 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	$ 27,000,000	$ 24,000,000
Debt instrument, effective interest rate	76.00%	76.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | 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]
Debt Instrument, Basis Spread on Variable Rate	76.00%	76.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due September 2024
Debt Instrument [Line Items]
Long-term debt	$ 750,000,000	$ 0
Debt Instrument, Basis Spread on Variable Rate	103.00%	0.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due September 2024 | LIBOR
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	82.00%	0.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due December 2024
Debt Instrument [Line Items]
Long-term debt	$ 750,000,000	$ 0
Debt Instrument, Basis Spread on Variable Rate	106.00%	0.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due December 2024 | LIBOR
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	84.00%	0.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due March 2024
Debt Instrument [Line Items]
Long-term debt	$ 775,000,000	$ 0
Debt Instrument, Basis Spread on Variable Rate	98.00%	0.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due March 2024 | LIBOR
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	76.00%	0.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due June 2024
Debt Instrument [Line Items]
Long-term debt	$ 750,000,000	$ 0
Debt Instrument, Basis Spread on Variable Rate	100.00%	0.00%
MUFG Americas Holdings Corporation | Senior Debt Obligations | Floating Rate Debt Due June 2024 | LIBOR
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	79.00%	0.00%
MUFG Americas Holdings Corporation | Junior subordinated debt payable to trusts | Floating rate note due September 2036 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 37,000,000	$ 37,000,000
Debt instrument, effective interest rate	192.00%	359.00%
MUFG Union Bank N.A [Member]
Debt Instrument [Line Items]
Long-term debt	$ 6,884,000,000
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Floating Rate Debt Due December 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	300,000,000	$ 300,000,000
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Floating Rate debt due March 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	300,000,000	300,000,000
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Variable Rate FHLB advances due October 2020 [Member]
Debt Instrument [Line Items]
Long-term debt	0	1,100,000,000
MUFG Union Bank N.A [Member]
Debt Instrument [Line Items]
Long-term debt	6,884,000,000	$ 8,909,000,000
Amount available for issuance under the bank note program	3,600,000,000
MUFG Union Bank N.A [Member] | Maximum
Debt Instrument [Line Items]
Amount available for issuance under the bank note program	$ 12,000,000,000
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Floating Rate Debt Due December 2022 [Member]
Debt Instrument [Line Items]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	78.00%	226.00%
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Floating Rate Debt Due December 2022 [Member] | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	71.00%	71.00%
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Floating Rate debt due March 2022 [Member]
Debt Instrument [Line Items]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	83.00%	249.00%
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Floating Rate debt due March 2022 [Member] | LIBOR
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	60.00%	60.00%
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Fixed Rate 2.10 Percent Notes Due December 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 699,000,000	$ 698,000,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	210.00%	210.00%
Debt instrument, stated rate		2.10%		3.15%
Debt Instrument, Face Amount		$ 700,000,000		$ 1,000,000,000.0
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Variable Rate FHLB advances due October 2020 [Member]
Debt Instrument [Line Items]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	0.00%	190.00%
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Fixed Rate 3.15 Percent Notes Due April 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 998,000,000	$ 998,000,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	315.00%	315.00%
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Fixed Rate Advances Due Between November 2021 and April 2025
Debt Instrument [Line Items]
Long-term debt	$ 4,575,000,000	$ 5,500,000,000
Debt instrument, stated rate	276.00%	295.00%
MUFG Union Bank N.A [Member] | Senior Debt Obligations | Floating Rate Senior Bank Notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount		$ 300,000,000		$ 300,000,000
MUFG Union Bank N.A [Member] | Other
Debt Instrument [Line Items]
Long-term debt	$ 12,000,000	13,000,000
Other Subsidiaries, Excluding MUFG Bank, NA [Member]
Debt Instrument [Line Items]
Long-term debt	471,000,000	598,000,000
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Senior Debt Obligations | Floating Rate Borrowings Due Between December 2020 and May 2021 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 250,000,000
Debt instrument, effective interest rate	0.00%	194.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Senior Debt Obligations | Fixed Rate Borrowings Due Between January 2021 and September 2027
Debt Instrument [Line Items]
Long-term debt	$ 323,000,000	$ 137,000,000
Debt instrument, effective interest rate	148.00%	222.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Senior Debt Obligations | Fixed Rate Borrowings Due Between January 2021 and September 2027 | Minimum
Debt Instrument [Line Items]
Debt instrument, effective interest rate	123.00%	168.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Senior Debt Obligations | Fixed Rate Borrowings Due Between January 2021 and September 2027 | Maximum
Debt Instrument [Line Items]
Debt instrument, effective interest rate	244.00%	244.00%
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	$ 26,000,000	$ 29,000,000
Debt instrument, effective interest rate	534.00%	534.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Floating Rate Nonrecourse Debt Due December 2021 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 3,000,000	$ 3,000,000
Debt instrument, effective interest rate	51.00%	217.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Floating Rate Nonrecourse Borrowings Due Between October 2019 and February 2021 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 13,000,000
Debt instrument, effective interest rate	0.00%	393.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Floating Rate Nonrecourse Borrowings Due Between October 2019 and February 2021 [Member] | Minimum
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 Borrowings Due Between October 2019 and February 2021 [Member] | Maximum
Debt Instrument [Line Items]
Debt instrument, effective interest rate	0.00%	0.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Fixed Rate Nonrecourse Debt Due Between March 2021 and July 2023
Debt Instrument [Line Items]
Long-term debt	$ 119,000,000	$ 166,000,000
Long-term Debt, Weighted Average Interest Rate, at Point in Time	315.00%	307.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Fixed Rate Nonrecourse Debt Due Between March 2021 and July 2023 | Minimum
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate, at Point in Time	196.00%	196.00%
Other Subsidiaries, Excluding MUFG Bank, NA [Member] | Secured Debt | Fixed Rate Nonrecourse Debt Due Between March 2021 and July 2023 | Maximum
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate, at Point in Time	372.00%	372.00%

XML

Long-Term Debt Maturity (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Long-term debt	$ 14,631	$ 17,129
Parent Company [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	0
Long-term Debt, Maturities, Repayments of Principal in Year Two	399
Long-term Debt, Maturities, Repayments of Principal in Year Three	3,417
Long-term Debt, Maturities, Repayments of Principal in Year Four	3,025
Long-term Debt, Maturities, Repayments of Principal in Year Five	398
Long-term Debt, Maturities, Repayments of Principal after Year Five	37
Long-term debt	7,276	$ 7,622
MUFG Union Bank N.A [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	1,925
Long-term Debt, Maturities, Repayments of Principal in Year Two	2,796
Long-term Debt, Maturities, Repayments of Principal in Year Three	1,550
Long-term Debt, Maturities, Repayments of Principal in Year Four	0
Long-term Debt, Maturities, Repayments of Principal in Year Five	601
Long-term Debt, Maturities, Repayments of Principal after Year Five	12
Long-term debt	6,884
Other Subsidiaries, Excluding MUFG Bank, NA [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	51
Long-term Debt, Maturities, Repayments of Principal in Year Two	38
Long-term Debt, Maturities, Repayments of Principal in Year Three	106
Long-term Debt, Maturities, Repayments of Principal in Year Four	0
Long-term Debt, Maturities, Repayments of Principal in Year Five	0
Long-term Debt, Maturities, Repayments of Principal after Year Five	276
Long-term debt	471
MUAH
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	1,976
Long-term Debt, Maturities, Repayments of Principal in Year Two	3,233
Long-term Debt, Maturities, Repayments of Principal in Year Three	5,073
Long-term Debt, Maturities, Repayments of Principal in Year Four	3,025
Long-term Debt, Maturities, Repayments of Principal in Year Five	999
Long-term Debt, Maturities, Repayments of Principal after Year Five	$ 325

XML

Fair Value Measurement and Fair Value of Financial Instruments - Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Fair value measurements
Trading account assets	$ 16,038	$ 10,377
Securities available for sale	18,259
Other liabilities	2,906	2,837
US Treasury and Government [Member]
Fair value measurements
Securities available for sale	4,473
Other
Fair value measurements
Securities available for sale	539
U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale	5,922
Privately issued
Fair value measurements
Securities available for sale	539
Collateralized loan obligations
Fair value measurements
Securities available for sale	1,367
Direct bank purchase bonds
Fair value measurements
Securities available for sale	930
Fair Value, Measurements, Recurring
Fair value measurements
Netting adjustment	$ (432)	$ (264)
Percentage of total	100.00%	100.00%
Percentage of total	1.00%	1.00%
Percentage of total Company assets	21.00%	17.00%
Percentage of total Company assets	0.00%	0.00%
Netting adjustment	$ (675)	$ (306)
Percentage of total	100.00%	100.00%
Percentage of total	20.00%	9.00%
Percentage of total Company liabilities	3.00%	2.00%
Percentage of total Company liabilities	0.00%	0.00%
Fair Value, Measurements, Recurring | Derivative Financial Instruments, Liabilities [Member]
Fair value measurements
Netting adjustment	$ (1)	$ 0
Fair Value, Measurements, Recurring | Trading Derivatives [Member]
Fair value measurements
Netting adjustment	(431)	(256)
Netting adjustment	(674)	(306)
Fair Value, Measurements, Recurring | Trading Assets, Excluding Debt and Equity Securities [Member]
Fair value measurements
Netting adjustment	(431)	(256)
Fair Value, Measurements, Recurring | Other
Fair value measurements
Netting adjustment	(1)	(8)
Fair Value, Measurements, Recurring | Derivative Financial Instruments, Assets [Member]
Fair value measurements
Netting adjustment	(1)	(8)
Fair Value, Measurements, Recurring | Trading Liabilities
Fair value measurements
Netting adjustment	(674)	(306)
Fair Value, Measurements, Recurring | Total Other Liabilities [Member]
Fair value measurements
Netting adjustment	(1)	0
Fair Value, Measurements, Recurring | Level 1
Fair value measurements
Securities available for sale	0	0
Other assets	20	10
Total assets	$ 965	$ 153
Percentage of total	3.00%	1.00%
Percentage of total Company assets	1.00%	0.00%
Trading account liabilities	$ 202	$ 116
Other liabilities	0	0
Total liabilities	$ 202	$ 116
Percentage of total	6.00%	3.00%
Percentage of total Company liabilities	0.00%	0.00%
Fair Value, Measurements, Recurring | Level 1 | Derivative Financial Instruments, Liabilities [Member]
Fair value measurements
Other liabilities	$ 0	$ 0
Fair Value, Measurements, Recurring | Level 1 | US Treasury and Government [Member]
Fair value measurements
Trading account assets	0	0
Securities available for sale	0	0
Trading account liabilities	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	0
Fair Value, Measurements, Recurring | Level 1 | Other contracts
Fair value measurements
Trading account assets	0	0
Trading account liabilities	0	0
Fair Value, Measurements, Recurring | Level 1 | Mortgage-backed securities
Fair value measurements
Trading account assets	0	0
Fair Value, Measurements, Recurring | Level 1 | Equity securities
Fair value measurements
Trading account assets	925	127
Trading account liabilities	144	105
Fair Value, Measurements, Recurring | Level 1 | Trading Derivatives [Member]
Fair value measurements
Trading account assets	20	16
Trading account liabilities	58	11
Fair Value, Measurements, Recurring | Level 1 | Trading Assets, Excluding Debt and Equity Securities [Member]
Fair value measurements
Trading account assets	945	143
Fair Value, Measurements, Recurring | Level 1 | Fdic
Fair value measurements
Other liabilities	0	0
Fair Value, Measurements, Recurring | Level 1 | U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Privately issued
Fair value measurements
Securities available for sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Privately issued - commercial mortgage-backed securities
Fair value measurements
Securities available for sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Collateralized loan obligations
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	0
Fair Value, Measurements, Recurring | Level 1 | loans held for sale [Domain]
Fair value measurements
Other assets	0	0
Fair Value, Measurements, Recurring | Level 1 | Equity Securities, FV-NI [Member]
Fair value measurements
Other assets	20	10
Fair Value, Measurements, Recurring | Level 1 | Corporate bonds
Fair value measurements
Trading account liabilities	0	0
Fair Value, Measurements, Recurring | Level 1 | Derivative Financial Instruments, Assets [Member]
Fair value measurements
Other assets	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member]
Fair value measurements
Securities available for sale	16,785	16,658
Other assets	2	10
Total assets	$ 32,310	$ 27,150
Percentage of total	93.00%	95.00%
Percentage of total Company assets	19.00%	16.00%
Trading account liabilities	$ 3,804	$ 3,448
Other liabilities	3	2
Total liabilities	$ 3,807	$ 3,450
Percentage of total	114.00%	102.00%
Percentage of total Company liabilities	3.00%	2.00%
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member]
Fair value measurements
Other liabilities	$ 3	$ 2
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | US Treasury and Government [Member]
Fair value measurements
Trading account assets	3,118	2,393
Securities available for sale	4,473	5,438
Trading account liabilities	2,359	2,299
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Other
Fair value measurements
Securities available for sale	11	28
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Corporate bonds
Fair value measurements
Trading account assets	838	1,212
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Other contracts
Fair value measurements
Trading account assets	354	306
Trading account liabilities	0	4
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities
Fair value measurements
Trading account assets	8,936	5,376
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Equity securities
Fair value measurements
Trading account assets	0	0
Trading account liabilities	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Trading Derivatives [Member]
Fair value measurements
Trading account assets	2,277	1,195
Trading account liabilities	962	499
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Trading Assets, Excluding Debt and Equity Securities [Member]
Fair value measurements
Trading account assets	15,523	10,482
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Fdic
Fair value measurements
Other liabilities	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale	5,922	5,468
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Privately issued
Fair value measurements
Securities available for sale	539	762
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Privately issued - commercial mortgage-backed securities
Fair value measurements
Securities available for sale	4,473	3,471
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Collateralized loan obligations
Fair value measurements
Securities available for sale	1,367	1,491
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Direct bank purchase bonds
Fair value measurements
Securities available for sale	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Mortgage servicing rights(2)
Fair value measurements
Other assets	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | loans held for sale [Domain]
Fair value measurements
Other assets	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Equity Securities, FV-NI [Member]
Fair value measurements
Other assets	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Corporate bonds
Fair value measurements
Trading account liabilities	483	646
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Derivative Financial Instruments, Assets [Member]
Fair value measurements
Other assets	2	10
Fair Value, Measurements, Recurring | Level 3
Fair value measurements
Securities available for sale	1,474	1,131
Other assets	166	316
Total assets	$ 1,641	$ 1,455
Percentage of total	5.00%	5.00%
Percentage of total Company assets	1.00%	1.00%
Trading account liabilities	$ 1	$ 8
Other liabilities	4	124
Total liabilities	$ 5	$ 132
Percentage of total	0.00%	4.00%
Percentage of total Company liabilities	0.00%	0.00%
Fair Value, Measurements, Recurring | Level 3 | Derivative Financial Instruments, Liabilities [Member]
Fair value measurements
Other liabilities	$ 4	$ 3
Fair Value, Measurements, Recurring | Level 3 | US Treasury and Government [Member]
Fair value measurements
Trading account assets	0	0
Securities available for sale	0	0
Trading account liabilities	0	0
Fair Value, Measurements, Recurring | Level 3 | Other
Fair value measurements
Securities available for sale	528	177
Fair Value, Measurements, Recurring | Level 3 | Corporate bonds
Fair value measurements
Trading account assets	0	0
Fair Value, Measurements, Recurring | Level 3 | Other contracts
Fair value measurements
Trading account assets	0	0
Trading account liabilities	0	0
Fair Value, Measurements, Recurring | Level 3 | Mortgage-backed securities
Fair value measurements
Trading account assets	0	0
Fair Value, Measurements, Recurring | Level 3 | Equity securities
Fair value measurements
Trading account assets	0	0
Trading account liabilities	0	0
Fair Value, Measurements, Recurring | Level 3 | Trading Derivatives [Member]
Fair value measurements
Trading account assets	1	8
Trading account liabilities	1	8
Fair Value, Measurements, Recurring | Level 3 | Trading Assets, Excluding Debt and Equity Securities [Member]
Fair value measurements
Trading account assets	1	8
Fair Value, Measurements, Recurring | Level 3 | Fdic
Fair value measurements
Other liabilities	0	121
Fair Value, Measurements, Recurring | Level 3 | U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale	0	0
Fair Value, Measurements, Recurring | Level 3 | Privately issued
Fair value measurements
Securities available for sale	0	0
Fair Value, Measurements, Recurring | Level 3 | Privately issued - commercial mortgage-backed securities
Fair value measurements
Securities available for sale	16	18
Fair Value, Measurements, Recurring | Level 3 | Collateralized loan obligations
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	930	936
Fair Value, Measurements, Recurring | Level 3 | Mortgage servicing rights(2)
Fair value measurements
Other assets	110	270
Fair Value, Measurements, Recurring | Level 3 | loans held for sale [Domain]
Fair value measurements
Other assets	43	42
Fair Value, Measurements, Recurring | Level 3 | Equity Securities, FV-NI [Member]
Fair value measurements
Other assets	0	0
Fair Value, Measurements, Recurring | Level 3 | Corporate bonds
Fair value measurements
Trading account liabilities	0	0
Fair Value, Measurements, Recurring | Level 3 | Derivative Financial Instruments, Assets [Member]
Fair value measurements
Other assets	13	4
Fair Value
Fair value measurements
Other assets	31	54
Fair Value | Fair Value, Measurements, Recurring
Fair value measurements
Securities available for sale	18,259	17,789
Other assets	187	328
Total assets	34,484	28,494
Trading account liabilities	3,333	3,266
Other liabilities	6	126
Total liabilities	3,339	3,392
Fair Value | Fair Value, Measurements, Recurring | Derivative Financial Instruments, Liabilities [Member]
Fair value measurements
Other liabilities	6	5
Fair Value | Fair Value, Measurements, Recurring | US Treasury and Government [Member]
Fair value measurements
Trading account assets	3,118	2,393
Securities available for sale	4,473	5,438
Trading account liabilities	2,359	2,299
Fair Value | Fair Value, Measurements, Recurring | Other
Fair value measurements
Securities available for sale	539	205
Fair Value | Fair Value, Measurements, Recurring | Corporate bonds
Fair value measurements
Trading account assets	838	1,212
Fair Value | Fair Value, Measurements, Recurring | Other contracts
Fair value measurements
Trading account assets	354	306
Trading account liabilities	0	4
Fair Value | Fair Value, Measurements, Recurring | Mortgage-backed securities
Fair value measurements
Trading account assets	8,936	5,376
Fair Value | Fair Value, Measurements, Recurring | Equity securities
Fair value measurements
Trading account assets	925	127
Trading account liabilities	144	105
Fair Value | Fair Value, Measurements, Recurring | Trading Derivatives [Member]
Fair value measurements
Trading account assets	1,867	963
Trading account liabilities	347	212
Fair Value | Fair Value, Measurements, Recurring | Trading Assets, Excluding Debt and Equity Securities [Member]
Fair value measurements
Trading account assets	16,038	10,377
Fair Value | Fair Value, Measurements, Recurring | Fdic
Fair value measurements
Other liabilities	0	121
Fair Value | Fair Value, Measurements, Recurring | U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale	5,922	5,468
Fair Value | Fair Value, Measurements, Recurring | Privately issued
Fair value measurements
Securities available for sale	539	762
Fair Value | Fair Value, Measurements, Recurring | Privately issued - commercial mortgage-backed securities
Fair value measurements
Securities available for sale	4,489	3,489
Fair Value | Fair Value, Measurements, Recurring | Collateralized loan obligations
Fair value measurements
Securities available for sale	1,367	1,491
Fair Value | Fair Value, Measurements, Recurring | Direct bank purchase bonds
Fair value measurements
Securities available for sale	930	936
Fair Value | Fair Value, Measurements, Recurring | Mortgage servicing rights(2)
Fair value measurements
Other assets	110	270
Fair Value | Fair Value, Measurements, Recurring | loans held for sale [Domain]
Fair value measurements
Other assets	43	42
Fair Value | Fair Value, Measurements, Recurring | Equity Securities, FV-NI [Member]
Fair value measurements
Other assets	20	10
Fair Value | Fair Value, Measurements, Recurring | Corporate bonds
Fair value measurements
Trading account liabilities	483	646
Fair Value | Fair Value, Measurements, Recurring | Derivative Financial Instruments, Assets [Member]
Fair value measurements
Other assets	$ 14	$ 6

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, 2020	Dec. 31, 2019
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Asset balance, end of period	$ 1
Securities Available for Sale
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Asset balance, beginning of period	1,131	$ 1,331
Total gains (losses) (realized/unrealized) included in income before taxes, assets	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	13	31
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	382	57
Settlements, assets	(52)	(288)
Asset balance, end of period	1,474	1,131
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, assets	0	0
Other Assets
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Asset balance, beginning of period	316	277
Total gains (losses) (realized/unrealized) included in income before taxes, assets	(166)	(88)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	16	396
Settlements, assets	0	0
Asset balance, end of period	166	316
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, assets	(166)	(103)
Trading Liabilities
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability balance, beginning of period	(8)
Total gains (losses) (realized/unrealized) included in income before taxes, assets, liability	2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	5
Liability balance, end of period		(8)
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, liabilities	2
Other Liabilities
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability balance, beginning of period	(124)	(118)
Total gains (losses) (realized/unrealized) included in income before taxes, assets, liability	(2)	(6)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	122	0
Liability balance, end of period	(4)	(124)
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, liabilities	(2)	(6)
Fair Value, Measurements, Recurring
Reconciliation of assets measured using significant unobservable inputs
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	$ 432	$ 264
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Percentage of Assets Fair Value Disclosure	100.00%	100.00%
Percentage of Assets Fair Value Disclosure, Netting Adjustment	(1.00%)	(1.00%)
Percentage of Company Assets Fair Value Disclosure	21.00%	17.00%
Percentage of Company Assets Fair Value Disclosure, Netting Adjustment	0.00%	0.00%
Fair Value, Measurements, Recurring | Level 3
Reconciliation of assets measured using significant unobservable inputs
Other assets	$ 166	$ 316
Assets, Fair Value Disclosure	$ 1,641	$ 1,455
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Percentage of Assets Fair Value Disclosure	5.00%	5.00%
Percentage of Company Assets Fair Value Disclosure	1.00%	1.00%
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member]
Reconciliation of assets measured using significant unobservable inputs
Other assets	$ 20	$ 10
Assets, Fair Value Disclosure	$ 965	$ 153
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Percentage of Assets Fair Value Disclosure	3.00%	1.00%
Percentage of Company Assets Fair Value Disclosure	1.00%	0.00%
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member]
Reconciliation of assets measured using significant unobservable inputs
Other assets	$ 2	$ 10
Assets, Fair Value Disclosure	$ 32,310	$ 27,150
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Percentage of Assets Fair Value Disclosure	93.00%	95.00%
Percentage of Company Assets Fair Value Disclosure	19.00%	16.00%
Mortgage servicing rights [Domain] | Fair Value, Measurements, Recurring | Level 3
Reconciliation of assets measured using significant unobservable inputs
Other assets	$ 110	$ 270
Mortgage servicing rights [Domain] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member]
Reconciliation of assets measured using significant unobservable inputs
Other assets	0	0
Mortgage servicing rights [Domain] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member]
Reconciliation of assets measured using significant unobservable inputs
Other assets	0	0
loans held for sale [Domain] | Fair Value, Measurements, Recurring | Level 3
Reconciliation of assets measured using significant unobservable inputs
Other assets	43	42
loans held for sale [Domain] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member]
Reconciliation of assets measured using significant unobservable inputs
Other assets	0	0
loans held for sale [Domain] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member]
Reconciliation of assets measured using significant unobservable inputs
Other assets	0	0
Derivative Financial Instruments, Assets [Member] | Fair Value, Measurements, Recurring
Reconciliation of assets measured using significant unobservable inputs
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	1	8
Derivative Financial Instruments, Assets [Member] | Fair Value, Measurements, Recurring | Level 3
Reconciliation of assets measured using significant unobservable inputs
Other assets	13	4
Derivative Financial Instruments, Assets [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member]
Reconciliation of assets measured using significant unobservable inputs
Other assets	0	0
Derivative Financial Instruments, Assets [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member]
Reconciliation of assets measured using significant unobservable inputs
Other assets	2	10
Equity Securities, FV-NI [Member] | Fair Value, Measurements, Recurring | Level 3
Reconciliation of assets measured using significant unobservable inputs
Other assets	0	0
Equity Securities, FV-NI [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member]
Reconciliation of assets measured using significant unobservable inputs
Other assets	20	10
Equity Securities, FV-NI [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member]
Reconciliation of assets measured using significant unobservable inputs
Other assets	0	0
Other Asset Liability Management Securities [Member] | Fair Value, Measurements, Recurring
Reconciliation of assets measured using significant unobservable inputs
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	1	8
Fair Value
Reconciliation of assets measured using significant unobservable inputs
Other assets	31	54
Fair Value | Fair Value, Measurements, Recurring
Reconciliation of assets measured using significant unobservable inputs
Other assets	187	328
Assets, Fair Value Disclosure	34,484	28,494
Fair Value | Mortgage servicing rights [Domain] | Fair Value, Measurements, Recurring
Reconciliation of assets measured using significant unobservable inputs
Other assets	110	270
Fair Value | loans held for sale [Domain] | Fair Value, Measurements, Recurring
Reconciliation of assets measured using significant unobservable inputs
Other assets	43	42
Fair Value | Derivative Financial Instruments, Assets [Member] | Fair Value, Measurements, Recurring
Reconciliation of assets measured using significant unobservable inputs
Other assets	14	6
Fair Value | Equity Securities, FV-NI [Member] | Fair Value, Measurements, Recurring
Reconciliation of assets measured using significant unobservable inputs
Other assets	$ 20	$ 10

XML

Fair Value Measurement and Fair Value of Financial Instruments - Level 3 Assets and Liabilities (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Reconciliation of assets measured using significant unobservable inputs
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 1
Available-for-sale Securities	18,259	$ 17,789
Direct bank purchase bonds	18,259
Direct bank purchase bonds
Reconciliation of assets measured using significant unobservable inputs
Available-for-sale Securities	930	936
Direct bank purchase bonds	930
Other
Reconciliation of assets measured using significant unobservable inputs
Available-for-sale Securities	539	205
Direct bank purchase bonds	539
Level 3 | Direct bank purchase bonds
Reconciliation of assets measured using significant unobservable inputs
Available-for-sale Securities	930
Level 3 | Other
Reconciliation of assets measured using significant unobservable inputs
Available-for-sale Securities	528
Fair Value, Measurements, Recurring | Level 3
Reconciliation of assets measured using significant unobservable inputs
Direct bank purchase bonds	1,474	1,131
Fair Value, Measurements, Recurring | Level 3 | Direct bank purchase bonds
Reconciliation of assets measured using significant unobservable inputs
Direct bank purchase bonds	930	936
Fair Value, Measurements, Recurring | Level 3 | Other
Reconciliation of assets measured using significant unobservable inputs
Direct bank purchase bonds	$ 528	177
Measurement Input, Discount Rate [Member] | Preferred Stock | Minimum | Valuation Technique, Discounted Cash Flow
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	1.1
Measurement Input, Discount Rate [Member] | Preferred Stock | Maximum | Valuation Technique, Discounted Cash Flow
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	4.5
Measurement Input, Discount Rate [Member] | Other | Weighted Average | Valuation Technique, Discounted Cash Flow
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0.035
Measurement Input, Default Rate [Member] | Direct bank purchase bonds | Minimum | Return on equity
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0
Measurement Input, Default Rate [Member] | Direct bank purchase bonds | Maximum | Return on equity
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0.080
Measurement Input, Default Rate [Member] | Direct bank purchase bonds | Weighted Average | Return on equity
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0.004
Measurement Input, Loss Severity [Member] | Direct bank purchase bonds | Minimum | Return on equity
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0.100
Measurement Input, Loss Severity [Member] | Direct bank purchase bonds | Maximum | Return on equity
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0.650
Measurement Input, Loss Severity [Member] | Direct bank purchase bonds | Weighted Average | Return on equity
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0.217
Measurement Input, Cap Rate | Direct bank purchase bonds | Minimum | Return on equity
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0.080
Measurement Input, Cap Rate | Direct bank purchase bonds | Maximum | Return on equity
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0.100
Measurement Input, Cap Rate | Direct bank purchase bonds | Weighted Average | Return on equity
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0.100
Measurement Input, Liquidity Adjustment | Preferred Stock | Minimum | Valuation Technique, Discounted Cash Flow
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0.8
Measurement Input, Liquidity Adjustment | Preferred Stock | Maximum | Valuation Technique, Discounted Cash Flow
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	3.2
Measurement Input, Liquidity Adjustment | Other | Weighted Average | Valuation Technique, Discounted Cash Flow
Reconciliation of assets measured using significant unobservable inputs
Market-required return on capital	0.024
Securities Available for Sale
Reconciliation of assets measured using significant unobservable inputs
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 1,474	1,131	$ 1,331
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	13	31
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	382	57
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(52)	(288)
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss)	0	0
Other Assets
Reconciliation of assets measured using significant unobservable inputs
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	166	316	277
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(166)	(88)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	16	396
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	(269)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	0	0
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss)	(166)	(103)
Trading Derivatives [Member]
Reconciliation of assets measured using significant unobservable inputs
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value		8	13
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings		4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements		(9)
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss)		4
Trading Assets, Excluding Debt and Equity Securities [Member]
Reconciliation of assets measured using significant unobservable inputs
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value		8
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(2)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(5)
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss)	(2)
Other Liabilities
Reconciliation of assets measured using significant unobservable inputs
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	(4)	(124)	(118)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(2)	(6)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss)	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	122	0
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss)	(2)	(6)
Trading Derivatives [Member]
Reconciliation of assets measured using significant unobservable inputs
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	(1)	(8)	$ (13)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings		(4)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss)		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements		9
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss)		(4)
Trading Liabilities [Member]
Reconciliation of assets measured using significant unobservable inputs
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value		$ (8)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss)	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	5
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss)	$ 2

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Fair Value Measurement and Fair Value of Financial Instruments - Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loans:
Gains Losses On Impaired Loans			$ (134)	$ (20)
Goodwill, Impairment Loss	$ (357)	$ (1,600)	(357)	(1,614)	$ 0
Other assets:
Goodwill	1,407	1,764	1,407	1,764	$ 3,301
Other assets	9,916	10,200	9,916	10,200
Gains Losses on Other Assets			(72)	(36)
Total Gains Losses on Assets			(563)	(1,670)
Fair Value, Nonrecurring [Member]
Loans:
Impaired loans	187	64	187	64
Other assets:
Total	1,683	2,129	1,683	2,129
Goodwill	1,407	1,764	1,407	1,764
Other assets	89	301	89	301
Fair Value, Nonrecurring [Member] | Level 3
Loans:
Impaired loans	187	64	187	64
Other assets:
Total	1,683	2,129	1,683	2,129
Goodwill	1,407	1,764	1,407	1,764
Other assets	89	301	89	301
Fair Value, Nonrecurring [Member] | Level 2
Other assets:
Total	0	0	0	0
Fair Value, Nonrecurring [Member] | Level 2 | Loans and Finance Receivables [Member]
Loans:
Impaired loans	0	0	0	0
Other assets:
Goodwill	0	0	0	0
Fair Value, Nonrecurring [Member] | Level 2 | Other Assets
Other assets:
Other assets	0	0	0	0
Fair Value, Nonrecurring [Member] | Level 1
Other assets:
Total	0	0	0	0
Fair Value, Nonrecurring [Member] | Level 1 | Loans and Finance Receivables [Member]
Loans:
Impaired loans	0	0	0	0
Other assets:
Goodwill	0	0	0	0
Fair Value, Nonrecurring [Member] | Level 1 | Other Assets
Other assets:
Other assets	$ 0	$ 0	$ 0	$ 0

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Fair Value Measurement and Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Assets
Securities borrowed or purchased under resale agreements	$ 17,608	$ 23,943
Securities held to maturity	7,532	9,508
Restricted cash included in other assets	31	54	$ 48
Level 1
Assets
Cash and cash equivalents	16,414	9,641
Securities borrowed or purchased under resale agreements	0	0
Securities held to maturity	0	0
Loans held for investment	0	0
Restricted cash included in other assets	31	54
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	17,607	23,946
Securities held to maturity	7,532	9,508
Loans held for investment	0	0
Restricted cash included in other assets	0	0
Liabilities
Time deposits	7,451	15,691
Securities loaned or sold under repurchase agreements	27,161	28,866
Commercial paper and other short-term borrowings	110	6,484
Long-term debt	14,973	17,344
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	81,528	87,506
Restricted cash included in other assets	0	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	313	280
Fair Value
Assets
Cash and cash equivalents	16,414	9,641
Securities borrowed or purchased under resale agreements	17,607	23,946
Securities held to maturity	7,532	9,508
Loans held for investment	81,528	87,506
Other assets	31	54
Liabilities
Time deposits	7,451	15,691
Securities loaned or sold under repurchase agreements	27,161	28,866
Commercial paper and other short-term borrowings	110	6,484
Long-term debt	14,973	17,344
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	313	280
Carrying Amount
Assets
Cash and cash equivalents	16,414	9,641
Securities borrowed or purchased under resale agreements	17,608	23,943
Securities held to maturity	7,311	9,421
Loans held for investment	79,873	86,687
Restricted cash included in other assets	31	54
Liabilities
Time deposits	7,419	15,651
Securities loaned or sold under repurchase agreements	27,161	28,866
Commercial paper and other short-term borrowings	110	6,484
Long-term debt	14,631	17,129
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$ 40	$ 87

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Derivative Instruments and Other Financial Instruments Used For Hedging - Notional and Fair Value Amounts (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Derivative Instruments and Other Financial Instruments
Derivative, Notional Amount	$ 220,226	$ 241,444
Fair Value, Asset Derivatives	2,313	1,233
Fair Value, Liability Derivatives	1,029	523
Interest rate contracts | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Derivative, Notional Amount	193,326	214,805
Fair Value, Asset Derivatives	1,890	981
Fair Value, Liability Derivatives	754	446
Interest rate contracts | Cash flow hedges | Designated as hedging instrument
Derivative Instruments and Other Financial Instruments
Derivative, Notional Amount	9,509	13,319
Fair Value, Asset Derivatives	0	0
Fair Value, Liability Derivatives	1	0
Commodity contracts | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Derivative, Notional Amount	4	9
Fair Value, Asset Derivatives	0	0
Fair Value, Liability Derivatives	0	0
Foreign exchange contracts | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Derivative, Notional Amount	14,189	11,219
Fair Value, Asset Derivatives	392	230
Fair Value, Liability Derivatives	215	64
Equity contracts | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Derivative, Notional Amount	1,599	72
Fair Value, Asset Derivatives	16	8
Fair Value, Liability Derivatives	51	8
Other derivative contracts(2) | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Derivative, Notional Amount	51	72
Fair Value, Asset Derivatives	0	0
Fair Value, Liability Derivatives	1	0
Trading | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Derivative, Notional Amount	209,169	226,177
Fair Value, Asset Derivatives	2,298	1,219
Fair Value, Liability Derivatives	1,021	518
Other risk management | Not designated as hedging instruments
Derivative Instruments and Other Financial Instruments
Derivative, Notional Amount	1,548	1,948
Fair Value, Asset Derivatives	15	14
Fair Value, Liability Derivatives	7	5
MUSA and Various other Non-Bank Subsidiaries
Derivative Instruments and Other Financial Instruments
Derivative, Notional Amount	$ 4,600	$ 4,000

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Derivative Instruments and Other Financial Instruments Used For Hedging - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flow hedges
Derivative, Notional Amount	$ 220,226	$ 241,444
Income from accumulated other comprehensive income expected to be reclassified to net interest income	$ 106
Cash flow hedges
Cash flow hedges
Weighted average remaining life of the currently active cash flow hedges	2 years 8 months 12 days
Other risk management | Not designated as hedging instruments
Cash flow hedges
Net gain (losses) on derivatives included in other noninterest income	$ 28	2	$ (4)
Derivative, Notional Amount	1,548	1,948
ERROR in label resolution. | Designated as hedging instrument | Cash flow hedges | LIBOR indexed loans
Cash flow hedges
Derivative, Notional Amount	9
Interest Rate Floor [Member] | Designated as hedging instrument | Cash flow hedges | LIBOR indexed loans
Cash flow hedges
Derivative, Notional Amount	9,500
MUSA and Various other Non-Bank Subsidiaries
Cash flow hedges
Derivative, Notional Amount	$ 4,600	$ 4,000

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Derivative Instruments and Other Financial Instruments Used For Hedging - Derivatives Designated as Cash Flow Hedges (Details) - Cash flow hedges - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Amount and location of net gains and losses
Gains (Losses) Recognized in OCI (Effective Portion)	$ 465	$ 51	$ (96)
Gains (Losses) Reclassified from AOCI into Income (Effective Portion)	34	(91)	(34)
Noninterest expense
Amount and location of net gains and losses
Gains (Losses) Recognized in Income (Ineffective Portion)			(1)
Designated as hedging instrument | Interest rate contracts
Amount and location of net gains and losses
Gains (Losses) Recognized in OCI (Effective Portion)	465	51	(96)
Designated as hedging instrument | Interest rate contracts | Interest income
Amount and location of net gains and losses
Gains (Losses) Reclassified from AOCI into Income (Effective Portion)	34	(91)	(34)
Designated as hedging instrument | Interest rate contracts | Interest expense
Amount and location of net gains and losses
Gains (Losses) Reclassified from AOCI into Income (Effective Portion)	$ 0	$ 0	0
Designated as hedging instrument | Interest rate contracts | Noninterest expense
Amount and location of net gains and losses
Gains (Losses) Recognized in Income (Ineffective Portion)			$ (1)

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Derivative Instruments and Other Financial Instruments Used For Hedging - Amount of Net Gains (Losses) for Derivatives Classified as Trading (Details) - Trading Derivatives - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Trading Derivatives
Gains (Losses) Recognized in Income on Trading Derivatives	$ (45)	$ (36)	$ 175
Interest rate contracts
Trading Derivatives
Gains (Losses) Recognized in Income on Trading Derivatives	(83)	(93)	95
Equity contracts
Trading Derivatives
Gains (Losses) Recognized in Income on Trading Derivatives	(23)	6	36
Foreign exchange contracts
Trading Derivatives
Gains (Losses) Recognized in Income on Trading Derivatives	$ 61	$ 51	$ 44

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Accumulated Other Comprehensive Income - AOCI and Related Tax Effect (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Change in accumulated other comprehensive loss balances:
Other Comprehensive Income Other, Net of Tax, Portion Attributable to Parent	$ 0	$ 1	$ (1)
Before Tax Amount
Net change	1,186	626	(432)
Tax Effect
Net change	(311)	(164)	113
Net of Tax
Other comprehensive income before reclassifications	915	374	(400)
Amounts reclassified from AOCI	(40)	88	81
Net change	875	462	(319)
Other Comprehensive Income Other Before Tax		1	(1)
Other Comprehensive Income Other Tax		0	0
Net Unrealized Gains (Losses) on Cash Flow Hedges
Before Tax Amount
Other comprehensive income before reclassifications	465	51	(96)
Reclassifications	(34)	91	34
Net change	431	142	(62)
Tax Effect
Other comprehensive income before reclassifications	(122)	(13)	25
Reclassifications	9	(24)	(9)
Net change	(113)	(37)	16
Net of Tax
Other comprehensive income before reclassifications	343	38	(71)
Amounts reclassified from AOCI	(25)	67	25
Net change	318	105	(46)
Net Unrealized Gains (Losses) on Securities
Before Tax Amount
Net change	657	379	(190)
Tax Effect
Net change	(172)	(99)	50
Net of Tax
Other comprehensive income before reclassifications	563	284	(155)
Amounts reclassified from AOCI	(78)	(4)	15
Net change	485	280	(140)
Unrealized holding gains (losses) arising during the period on securities available for sale
Before Tax Amount
Other comprehensive income before reclassifications	763	385	(210)
Reclassifications	(144)	(39)	(8)
Tax Effect
Other comprehensive income before reclassifications	(200)	(101)	55
Reclassifications	38	10	2
Net of Tax
Other comprehensive income before reclassifications	563	284	(155)
Amounts reclassified from AOCI	(106)	(29)	(6)
Amortization of net unrealized (gains) losses on held to maturity securities
Before Tax Amount
Reclassifications	38	33	28
Tax Effect
Reclassifications	(10)	(8)	(7)
Net of Tax
Amounts reclassified from AOCI	28	25	21
Foreign Currency Translation Adjustment
Before Tax Amount
Net change			(3)
Tax Effect
Net change			1
Net of Tax
Other comprehensive income before reclassifications		0
Amounts reclassified from AOCI	0	0	0
Net change	0		(2)
Pension and Other Benefits Adjustment
Before Tax Amount
Net change	98	104	(176)
Tax Effect
Net change	(26)	(28)	46
Net of Tax
Other comprehensive income before reclassifications	9	51	(171)
Amounts reclassified from AOCI	63	25	41
Net change	72	76	(130)
Amortization of prior service credit
Before Tax Amount
Other comprehensive income before reclassifications	(27)	(40)	(41)
Tax Effect
Other comprehensive income before reclassifications	7	11	11
Net of Tax
Other comprehensive income before reclassifications	(20)	(29)	(30)
Recognized net actuarial gain (loss)
Before Tax Amount
Other comprehensive income before reclassifications	112	74	96
Tax Effect
Other comprehensive income before reclassifications	(29)	(20)	(25)
Net of Tax
Other comprehensive income before reclassifications	83	54	71
Pension and other benefits arising during the year
Before Tax Amount
Other comprehensive income before reclassifications	13	70	(231)
Tax Effect
Other comprehensive income before reclassifications	(4)	(19)	60
Net of Tax
Other comprehensive income before reclassifications	9	51	(171)
Accumulated Other Comprehensive Income (Loss)
Net of Tax
Net change	$ 875	$ 462	$ (319)

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Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Loss Balances (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 16,367	$ 16,580	$ 18,355
Other comprehensive income before reclassifications	915	374	(400)
Other Comprehensive Income (Loss), Net of Tax	875	462	(319)
Amounts reclassified from AOCI	(40)	88	81
Ending balance	17,279	16,367	16,580
Net Unrealized Gains (Losses) on Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(115)	(220)	(174)
Other comprehensive income before reclassifications	343	38	(71)
Other Comprehensive Income (Loss), Net of Tax	318	105	(46)
Amounts reclassified from AOCI	(25)	67	25
Ending balance	203	(115)	(220)
Adjustments to Additional Paid in Capital, Other			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	563	284	(155)
Amounts reclassified from AOCI	(106)	(29)	(6)
Net Unrealized Gains (Losses) on Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(93)	(373)	(233)
Other comprehensive income before reclassifications	563	284	(155)
Other Comprehensive Income (Loss), Net of Tax	485	280	(140)
Amounts reclassified from AOCI	(78)	(4)	15
Ending balance	392	(93)	(373)
Adjustments to Additional Paid in Capital, Other			0
Foreign Currency Translation Adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	0	0	(19)
Other comprehensive income before reclassifications		0
Other Comprehensive Income (Loss), Net of Tax	0		(2)
Amounts reclassified from AOCI	0	0	0
Ending balance	0	0	0
Adjustments to Additional Paid in Capital, Other			21
Pension and Other Benefits Adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(654)	(730)	(600)
Other comprehensive income before reclassifications	9	51	(171)
Other Comprehensive Income (Loss), Net of Tax	72	76	(130)
Amounts reclassified from AOCI	63	25	41
Ending balance	(582)	(654)	(730)
Adjustments to Additional Paid in Capital, Other			0
Accumulated Other [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	0	(1)	0
Other comprehensive income before reclassifications	0	1	(1)
Amounts reclassified from AOCI	0	0	0
Ending balance	0	0	(1)
Adjustments to Additional Paid in Capital, Other			0
Accumulated Other Comprehensive Income (Loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(862)	(1,324)	(1,026)
Other Comprehensive Income (Loss), Net of Tax	875	462	(319)
Ending balance	$ 13	$ (862)	(1,324)
Adjustments to Additional Paid in Capital, Other			$ 21

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Management Stock Plans - Bonus Stock Plans (Details) - Stock Bonus Plans - Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Management Stock Plans
Service Period for Grants Issued Weighted Average	3 years
Units Granted (in shares)	26,949,460
Fair Value of Stock (in usd per share)	$ 4.04	$ 4.67	$ 5.89

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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, 2020	Dec. 31, 2019	Dec. 31, 2018
Restricted Stock Units rollforward
Units outstanding, beginning of year	37,653,686
Granted	26,949,460
Vested	(16,966,486)
Forfeited	(2,210,586)
Units outstanding, end of year	45,426,074	37,653,686
Weighted-Average Grant Date Fair Value
Units outstanding, beginning of year (in usd per share)	$ 5.16
Granted (in usd per share)	4.04	$ 4.67	$ 5.89
Vested (in usd per share)	5.46
Forfeited (in usd per share)	4.64
Units outstanding, end of year (in usd per share)	$ 4.40	$ 5.16
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 69	$ 70	$ 78

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Management Stock Plans - Compensation Costs, Tax Benefit and Unrecognized Compensation Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Compensation costs	$ 83	$ 89	$ 77
Tax benefit	22	23	20
Unrecognized compensation costs	$ 129	$ 129	$ 110
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	1 year 4 months 6 days

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Employee Pension and Other Postretirement Benefits - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension Plan and Other Postretirement Benefits Plan
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 17,279	$ 16,367	$ 16,580	$ 18,355
Amortization period of net actuarial losses		8 years
Excess of market value of plan assets		$ 505
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		$ 64	61	59
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Pension and other benefits adjustment, Gross		(89)	816
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Net Of Tax		$ 727
Service Period required for eligibility		1 year
Service Period required for vesting		3 years
Pension and other postretirement plan investments impacted by ASU 2018-09		$ 4,669	4,140	3,529
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax, Subject to Amortization		(888)
Net periodic benefit cost		$ (6)	$ (29)	(27)
Expected return on plan assets		7.00%	7.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase		5.10%	5.10%
Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Pension and other benefits adjustment, Gross		$ 20	$ 33
Pension and other postretirement plan investments impacted by ASU 2018-09		322	291	255
Net periodic benefit cost		$ (12)	$ (10)	(19)
Expected return on plan assets		7.00%	7.00%
Executive Supplemental Benefits Pension Plan
Pension Plan and Other Postretirement Benefits Plan
Accrued liability for ESBPs		$ 98	$ 94
Pension and other benefits adjustment, Gross		$ 42	39
Equity securities | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation		48.00%
Equity securities | Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation		63.00%
Debt Securities | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation		40.00%
Debt Securities | Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation		27.00%
Real estate | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation		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		$ 800	916	1,036	905
Recognized net actuarial gain (loss) | Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		20	33	64	51
Amortization of prior service credit | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(73)	(100)	(126)	(152)
Amortization of prior service credit | Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 0	$ 0	$ (14)	$ (29)
Forecast
Pension Plan and Other Postretirement Benefits Plan
Expected return on plan assets	6.75%
Forecast | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year	$ (120)
Net periodic benefit cost	$ 21
Assumptions used to calculate net periodic benefit cost, service cost rate	2.35%
Defined benefit plan, assumptions used calculating net periodic benefit cost, interest cost	1.73%
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	$ 28
Effect of 50 basis point increase on expected rate of return	20
Effect of 50 basis point increase on future compensation levels	2
Effect of 50 basis point decrease on discount rate	29
Effect of 50 basis point decrease on expected rate of return on plan assets	20
Effect of 50 basis point decrease on future compensation levels	$ 2
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, 2020	Dec. 31, 2019
Pension Benefits
Change in fair value of plan assets
Fair value of plan assets, beginning of year	$ 4,140	$ 3,529
Actual return on plan assets	682	754
Plan participants' contributions	0	0
Benefits paid	(153)	(143)
Fair value of plan assets, end of year	$ 4,669	4,140
Pension Benefits | Equity securities
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation	48.00%
Pension Benefits | Debt Securities
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation	40.00%
Pension Benefits | Real estate
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation	12.00%
Other Benefits
Change in fair value of plan assets
Fair value of plan assets, beginning of year	$ 291	255
Actual return on plan assets	48	52
Plan participants' contributions	4	4
Benefits paid	(21)	(20)
Fair value of plan assets, end of year	$ 322	$ 291
Other Benefits | Equity securities
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation	63.00%
Other Benefits | Debt Securities
Pension Plan and Other Postretirement Benefits Plan
Target plan asset allocation	27.00%

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Employee Pension and Other Postretirement Benefits - Fair Value Hierarchy of Assets (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	$ 4,018	$ 3,450
Investments measured at net asset value	681	680
Investments at fair value	4,699	4,130
Accrued dividends and interest receivable	11	10
Net pending trades	(41)	0
Total plan assets	4,669	4,140	$ 3,529
Pension Benefits | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	1,121	997
Pension Benefits | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	2,897	2,453
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	83	11
Pension Benefits | Cash and cash equivalents | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	8	9
Pension Benefits | Cash and cash equivalents | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	75	2
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 | Defined Benefit Plan, Common Collective Trust [Member]
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	1,237	1,089
Pension Benefits | Defined Benefit Plan, Common Collective Trust [Member] | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Pension Benefits | Defined Benefit Plan, Common Collective Trust [Member] | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	1,237	1,089
Pension Benefits | Defined Benefit Plan, Common Collective Trust [Member] | 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	495	419
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	495	419
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	985	882
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	985	882
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	341	252
Pension Benefits | Equity securities | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	334	246
Pension Benefits | Equity securities | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	7	6
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	780	746
Pension Benefits | Mutual funds | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	780	746
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	73	38
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	73	38
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	24	13
Pension Benefits | Other | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	(1)	(4)
Pension Benefits | Other | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	25	17
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	313	293
Investments measured at net asset value	11	0
Investments at fair value	324	293
Net pending trades	(2)	(2)
Total plan assets	322	291	$ 255
Other Benefits | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	1	65
Other Benefits | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	312	228
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	6
Other Benefits | Cash and cash equivalents | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	1
Other Benefits | Cash and cash equivalents | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	5
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 | Defined Benefit Plan, Common Collective Trust [Member]
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	210	103
Other Benefits | Defined Benefit Plan, Common Collective Trust [Member] | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits | Defined Benefit Plan, Common Collective Trust [Member] | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	210	103
Other Benefits | Defined Benefit Plan, Common Collective Trust [Member] | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits | U.S. Government securities
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	11	45
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	11	45
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	22	27
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	22	27
Other Benefits | Corporate bonds | 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		65
Other Benefits | Mutual funds | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy		65
Other Benefits | Mutual funds | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy		0
Other Benefits | Mutual funds | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy		0
Other Benefits | Municipal bonds
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	1
Other Benefits | Municipal bonds | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0
Other Benefits | Municipal bonds | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	1
Other Benefits | Municipal bonds | Level 3
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0
Other Benefits | Pooled Separate Accounts [Member]
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	63	53
Other Benefits | Pooled Separate Accounts [Member] | Level 1
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	0	0
Other Benefits | Pooled Separate Accounts [Member] | Level 2
Pension Plan and Other Postretirement Benefits Plan
Total investments in the fair value hierarchy	63	53
Other Benefits | Pooled Separate Accounts [Member] | 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, 2020	Dec. 31, 2019
Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Unfunded Commitment	$ 2,000,000	$ 2,000,000
Pension Benefits | Equity Funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
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	$ 480,000,000	$ 480,000,000
Unfunded Commitment	$ 0	$ 2,000,000
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	$ 4,000,000	$ 5,000,000
Unfunded Commitment	2,000,000	0
Pension Benefits | International equity funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	197,000,000	195,000,000
Pension Benefits | Defined Benefit Plan, investments with fair value at NAV
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	681,000,000	$ 680,000,000
Other Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Unfunded Commitment	$ 0
Other Benefits | Equity Funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Redemption Notice Period	7 days	7 days
Other Benefits | Real estate funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	$ 11,000,000
Unfunded Commitment	0
Other Benefits | Defined Benefit Plan, investments with fair value at NAV
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair Value	$ 11,000,000

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Employee Pension and Other Postretirement Benefits - Changes in Benefit Obligation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Accumulated benefit obligation	$ 3,944	$ 3,521
Change in benefit obligation
Benefit obligation, beginning of year	3,536	3,047
Service cost	84	76	$ 80
Interest cost	95	117	$ 100
Plan participants' contributions	0	0
Actuarial loss/(gain)	$ (408)	$ (439)
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	2.30%	3.08%	4.12%
Benefits paid	$ (153)	$ (143)
Benefit obligation, end of year	3,970	3,536	$ 3,047
Fair value of plan assets, end of year	4,669	4,140	$ 3,529
Over (Under) funded status	$ 699	$ 604
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	2.30%	3.08%	4.12%
Other Benefits
Change in benefit obligation
Benefit obligation, beginning of year	$ 251	$ 242
Service cost	2	3	$ 4
Interest cost	6	9	$ 8
Plan participants' contributions	4	4
Actuarial loss/(gain)	$ (15)	$ (14)
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	2.08%	2.93%	4.01%
Benefits paid	$ (21)	$ (21)
Benefit obligation, end of year	257	251	$ 242
Fair value of plan assets, end of year	322	291	$ 255
Over (Under) funded status	$ 65	$ 40
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	2.08%	2.93%	4.01%

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Employee Pension and Other Postretirement Benefits - Changes in AOCI (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 16,367	$ 16,580	$ 18,355
Other comprehensive income before reclassifications	915	374	(400)
Amounts reclassified from AOCI	(40)	88	81
Ending balance	17,279	16,367	16,580
Recognized net actuarial gain (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income before reclassifications	83	54	71
Amortization of prior service credit
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income before reclassifications	(20)	(29)	(30)
Pension Benefits | Recognized net actuarial gain (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	916	1,036	905
Other comprehensive income before reclassifications	(9)	(59)	218
Amounts reclassified from AOCI	107	61	87
Ending balance	800	916	1,036
Pension Benefits | Amortization of prior service credit
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(100)	(126)	(152)
Other comprehensive income before reclassifications	0	0	0
Amounts reclassified from AOCI	(27)	(26)	(26)
Ending balance	(73)	(100)	(126)
Other Benefits | Recognized net actuarial gain (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	33	64	51
Other comprehensive income before reclassifications	(13)	(22)	18
Amounts reclassified from AOCI	0	9	5
Ending balance	20	33	64
Other Benefits | Amortization of prior service credit
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	0	(14)	(29)
Other comprehensive income before reclassifications	0	0	0
Amounts reclassified from AOCI	0	(14)	(15)
Ending balance	$ 0	$ 0	$ (14)

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Employee Pension and Other Postretirement Benefits - AOCI Loss for Pension (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Net actuarial loss, Gross	$ 800	$ 916
Prior service costs (credits), Gross	(73)	(100)
Pension and other benefits adjustment, Gross	(89)	816
Net actuarial loss in AOCI, Tax	(210)	241
Prior service costs (credits) in AOCI, Tax	19	(26)
Pension and other benefits adjustment, Tax	(191)	215
Net Actuarial (Gain)/Loss, Net of Tax	590	675
Prior service costs (credits), Net of Tax	(54)	(74)
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Net Of Tax	727
Amounts to be reclassified from accumulated other comprehensive loss	536	601
Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Net actuarial loss, Gross	20	33
Prior service costs (credits), Gross	0	0
Pension and other benefits adjustment, Gross	20	33
Net actuarial loss in AOCI, Tax	(5)	9
Prior service costs (credits) in AOCI, Tax	0	0
Pension and other benefits adjustment, Tax	(5)	9
Net Actuarial (Gain)/Loss, Net of Tax	15	24
Prior service costs (credits), Net of Tax	0	0
Amounts to be reclassified from accumulated other comprehensive loss	15	24
Executive Supplemental Benefits Pension Plan
Pension Plan and Other Postretirement Benefits Plan
Net actuarial loss, Gross	42	39
Pension and other benefits adjustment, Gross	42	39
Net actuarial loss in AOCI, Tax	(11)	10
Pension and other benefits adjustment, Tax	(11)	10
Net Actuarial (Gain)/Loss, Net of Tax	31	29
Amounts to be reclassified from accumulated other comprehensive loss	$ 31	$ 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, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
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		$ 769	$ 855
Defined Benefit Plan, Accumulated Other Comprehensive Income, Tax		(202)	225
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax		567	630
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax		(89)	816
Defined Benefit Plan, Service Cost		84	76	$ 80
2018		163
2019		170
2020		179
2021		184
2022		190
Years 2023-2027		1,013
Defined Benefit Plan, Interest Cost		95	117	100
Defined Benefit Plan, Expected Return (Loss) on Plan Assets		(265)	(257)	(268)
Amortization of prior service credit		(27)	(26)	(26)
Defined Benefit Plan, Amortization of Gain (Loss)		107	61	87
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)		(6)	(29)	(27)
Defined Benefit Plan, Accumulated Other Comprehensive Income, Tax		(191)	215
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax		536	601
Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax		20	33
Defined Benefit Plan, Service Cost		2	3	4
2018		17
2019		18
2020		18
2021		17
2022		17
Years 2023-2027		69
Defined Benefit Plan, Interest Cost		6	9	8
Defined Benefit Plan, Expected Return (Loss) on Plan Assets		(20)	(17)	(21)
Amortization of prior service credit		0	(14)	(15)
Defined Benefit Plan, Amortization of Gain (Loss)		0	9	5
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)		(12)	(10)	(19)
Defined Benefit Plan, Accumulated Other Comprehensive Income, Tax		(5)	9
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax		15	24
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	0
Defined Benefit Plan, Interest Cost		2	3	3
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)		5	4	3
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)		$ 7	$ 7	$ 6
Forecast | Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Effect of 50 basis point increase on discount rate	$ 28
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year	(120)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	$ 21

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Employee Pension and Other Postretirement Benefits - Periodic Benefit Costs, Forecasted (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension Plan and Other Postretirement Benefits Plan
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 17,279	$ 16,367	$ 16,580	$ 18,355
Amortization period of net actuarial losses		8 years
Excess of market value of plan assets		$ 505
Assetsmoothingperiodofnonamortizing amount		4 years
Forecast
Pension Plan and Other Postretirement Benefits Plan
Expected return on plan assets	6.75%
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Net actuarial loss, Gross		$ (800)	$ (916)
Actuarial loss, subject to amortization		$ 888
Expected return on plan assets		7.00%	7.00%
Rate of increase in future compensation levels for determining net periodic benefit cost		5.10%	5.10%
Net periodic benefit cost		$ (6)	$ (29)	$ (27)
Prior service costs (credits), Gross		$ (73)	$ (100)
Pension Benefits | Forecast
Pension Plan and Other Postretirement Benefits Plan
Assumptions used to calculate net periodic benefit cost, service cost rate	2.35%
Defined benefit plan, assumptions used calculating net periodic benefit cost, interest cost	1.73%
Rate of increase in future compensation levels for determining net periodic benefit cost	5.10%
Net periodic benefit cost	$ 21
Effect of 50 basis point increase on discount rate	28
Effect of 50 basis point increase on expected rate of return	20
Effect of 50 basis point increase on future compensation levels	2
Effect of 50 basis point decrease on discount rate	29
Effect of 50 basis point decrease on expected rate of return on plan assets	20
Effect of 50 basis point decrease on future compensation levels	$ 2

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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, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Pension Plan and Other Postretirement Benefits Plan
Discount rate in determining net periodic benefit cost after Plan amendments, interest cost		2.52%	3.79%
Pension Benefits
Pension Plan and Other Postretirement Benefits Plan
Discount rate in determining net periodic benefit cost after Plan amendments, service cost		3.16%	4.19%
Discount rate in determining net periodic benefit cost after Plan amendments, interest cost		2.72%	3.90%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate		2.30%	3.08%	4.12%
Rate of increase in future compensation levels for determining net periodic benefit cost		5.10%	5.10%
Rate of increase in future compensation levels for determining benefit obligations at year end		5.10%	5.10%
Expected return on plan assets		7.00%	7.00%
Service cost		$ 84	$ 76	$ 80
Interest cost		95	117	100
Expected return on plan assets		(265)	(257)	(268)
Amortization of prior service credit		(27)	(26)	(26)
Recognized net actuarial loss		107	61	87
Total net periodic benefit cost		$ (6)	$ (29)	$ (27)
Defined benefit plan assumptions used calculating net periodic benefit cost cash balance crediting rate		2.39%	3.02%
Defined benefit plan assumptions used calculating benefit obligations cash balance crediting rate		1.62%	2.39%
Other Benefits
Pension Plan and Other Postretirement Benefits Plan
Discount rate in determining net periodic benefit cost after Plan amendments, service cost		3.04%	4.11%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate		2.08%	2.93%	4.01%
Expected return on plan assets		7.00%	7.00%
Service cost		$ 2	$ 3	$ 4
Interest cost		6	9	8
Expected return on plan assets		(20)	(17)	(21)
Amortization of prior service credit		0	(14)	(15)
Recognized net actuarial loss		0	9	5
Total net periodic benefit cost		(12)	(10)	(19)
Superannuation, SERP and ESBP
Pension Plan and Other Postretirement Benefits Plan
Service cost		0	0	0
Interest cost		2	3	3
Expected return on plan assets		0	0	0
Amortization of prior service credit		0	0	0
Recognized net actuarial loss		5	4	3
Total net periodic benefit cost		$ 7	$ 7	$ 6
Forecast
Pension Plan and Other Postretirement Benefits Plan
Expected return on plan assets	6.75%
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%
Total net periodic benefit cost	$ 21

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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, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2021
Assumed weighted-average healthcare cost trend rates
Healthcare cost trend rate assumed for next year	4.17%	4.14%	4.44%
Rate to which cost trend rate is assumed to decline (the ultimate trend rate)	3.78%	3.77%	3.94%
Year the rate reaches the ultimate trend rate	2028	2027	2027
Forecast | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss				$ 120

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Employee Pension and Other Postretirement Benefits - Executive Supplemental Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
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	$ 64	$ 61	$ 59
Executive Supplemental Benefits Pension Plan
Pension Plan and Other Postretirement Benefits Plan
Accrued liability for ESBPs	$ 98	$ 94
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, 2020	Dec. 31, 2019	Dec. 31, 2018
Noninterest Income
Other fee income	$ 112	$ 94	$ 100
Gain (Loss) on Energy Investments	(72)	(85)	(235)
Amortization of Mortgage Servicing Rights (MSRs)	(123)	(44)	20
Other	247	248	230
Total other noninterest income	164	213	115
Noninterest Expense
Fees to affiliates	94	94	115
Net periodic pension cost excluding service cost	(97)	(112)	(124)
Other	389	440	418
Total other noninterest expense	$ 386	$ 422	$ 409

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Income Taxes - Analysis of the Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Federal income tax rate	21.00%	21.00%	21.00%
Net tax effects of:
State income taxes, net of federal income tax benefit	(2.00%)	(13.00%)	7.00%
Effective Income Tax Rate Reconciliation, Goodwill Impairment	63.00%	(45.00%)	0.00%
Tax-exempt interest income	(7.00%)	2.00%	(1.00%)
us-gaap_EffectiveIncomeTaxRateReconciliationDeductions	(13.00%)	4.00%	(2.00%)
Amortization of LIHC investments	94.00%	(20.00%)	12.00%
Tax credits	(189.00%)	40.00%	(25.00%)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Life Insurance, Percent	6.00%	(2.00%)	1.00%
Effective Income Tax Rate Reconciliation, Valuation Release	0.00%	1.00%	0.00%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	0.00%	0.00%	(2.00%)
Effective Income Tax Rate Reconciliation, State Refunds, Percent	0.00%	0.00%	(5.00%)
Effective Income Tax Rate Reconciliation, Provision to Return Adjustment, Percent	15.00%	1.00%	(2.00%)
Effective Income Tax Rate Reconciliation, Compensation RSU, Percent	4.00%	(1.00%)	0.00%
Effective Income Tax Rate Reconciliation, Uncertain Tax Benefits, Percent	(6.00%)	0.00%	0.00%
Other	1.00%	0.00%	1.00%
Effective tax rate	(13.00%)	(12.00%)	5.00%

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Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current income tax expense:
Federal	$ 204	$ 191	$ 195
State	123	154	89
Foreign	1	1	10
Total current expense	328	346	294
Deferred income tax expense (benefit):
Federal	(247)	(202)	(173)
State	(98)	(61)	(64)
Foreign	(1)	(1)	(5)
Total deferred expense	(346)	(264)	(242)
Total income tax expense (benefit)	$ (18)	$ 82	$ 52

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Income Taxes - Net Deferred Tax Balances (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Tax Credit Carryforwards	$ 468	$ 499
Deferred tax assets:
Allowance for credit losses	532	312
Deferred Tax Assets Lease Liability	198	0
Accrued expense, net	202	143
Unrealized losses on pension and postretirement benefits	207	233
Unrealized net (gains) losses on securities available for sale	0	32
Fair value adjustments for valuation of FDIC covered assets	30	40
Deferred Tax Assets, Hedging Transactions	0	41
Deferred Tax Assets capitalized loan cost	147	0
Other	9	30
Total deferred tax assets	1,793	1,330
Deferred tax liabilities:
Leasing and renewable energy	482	515
Intangible assets	14	17
Pension liabilities	374	373
Deferred Tax Liabilities Right of Use	198	0
DeferredTaxLiabilitiesUnrealizedLossesOnAvailableforSaleSecuritiesGross	140	0
Deferred Tax Liabilities Hedging Transactions	72	0
Other	0	0
Total deferred tax liabilities	1,280	905
Net deferred tax asset	$ 513	$ 425

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Income Taxes - Additional Information (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets, carryforwards
Tax credit carry forwards	$ 33,000,000
Uncertain tax liability	88,000,000
AMT tax credit carryforward	17,000,000
State tax credits	13,000,000
AMT Tax Credit Carryforward	13,000,000
Income Tax Uncertainties [Abstract]
Unrecognized tax positions that would affect the effective tax rate	91,000,000	$ 99,000,000	$ 98,000,000
Income Tax Examination, Interest Accrued	3,000,000
Income Tax Examination, Penalties Accrued	2,000,000
Domestic Tax Authority
Deferred tax assets, carryforwards
Tax credit carry forwards	411,000,000
Operating loss carry forward	72,000,000
Operating Loss Carryforwards	4,000,000
State and Local Jurisdiction
Deferred tax assets, carryforwards
Operating loss carry forward	4,000,000
Operating Loss Carryforwards	$ 50

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Income Taxes - Unrecognized Tax Positions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Changes in unrecognized tax positions
Balance, beginning of year	$ 126	$ 127	$ 56
Gross increases as a result of tax positions taken during prior periods	2	1	72
Gross decreases as a result of tax positions taken during prior periods	(22)	0	0
Gross increases as a result of tax positions taken during current period	0	0	0
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities	(1)	(2)	(1)
Balance, end of year	$ 105	$ 126	$ 127

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Regulatory Capital Requirements (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Regulatory Capital Requirements
Tier 1 capital (to risk-weighted assets), ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions	8.00%	8.00%
Total capital (to risk-weighted assets), ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions	10.00%
MUFG Americas Holdings Corporation
Regulatory Capital Requirements
Common equity tier 1 capital (to risk-weighted assets), Actual	$ 15,823	$ 15,086
Tier 1 capital (to risk-weighted assets), Actual	15,823	15,086
Total capital (to risk-weighted assets), Actual	16,871	15,769
Tier 1 Leverage, Actual	$ 15,823	$ 15,086
Common equity tier 1 capital (to risk-weighted assets), ratio, Actual	15.28%	14.10%
Tier 1 capital (to risk-weighted assets), ratio, Actual	15.28%	14.10%
Total capital (to risk-weighted assets), ratio, Actual	16.29%	14.73%
Tier 1 leverage, ratio, Actual	9.56%	8.88%
Common Equity Tier One Risk Based Capital Required for Capital Adequacy	$ 9,218	$ 7,492
Tier 1 capital (to risk-weighted assets), Minimum Regulatory Requirement	10,772	9,097
Total capital (to risk-weighted assets), Minimum Regulatory Requirement	12,843	11,237
Tier 1 Leverage, Minimum Regulatory Requirement	$ 6,623	$ 6,792
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	8.90%	7.00%
Tier 1 capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement	10.40%	8.50%
Total capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement	12.40%	10.50%
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	$ 14,634	$ 14,115
Tier 1 capital (to risk-weighted assets), Actual	14,634
Total capital (to risk-weighted assets), Actual	15,629	14,746
Tier 1 Leverage, Actual	$ 14,634	$ 14,115
Common equity tier 1 capital (to risk-weighted assets), ratio, Actual	15.62%	14.47%
Tier 1 capital (to risk-weighted assets), ratio, Actual	15.62%	14.47%
Total capital (to risk-weighted assets), ratio, Actual	16.68%	15.11%
Tier 1 leverage, ratio, Actual	11.12%	10.65%
Common Equity Tier One Risk Based Capital Required for Capital Adequacy	$ 6,557	$ 6,829
Tier 1 capital (to risk-weighted assets), Minimum Regulatory Requirement	7,963	8,293
Total capital (to risk-weighted assets), Minimum Regulatory Requirement	9,836	10,244
Tier 1 Leverage, Minimum Regulatory Requirement	$ 5,262	$ 5,304
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	7.00%	7.00%
Tier 1 capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement	8.50%	8.50%
Total capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement	10.50%	10.50%
Tier 1 Leverage, ratio, Minimum Regulatory Requirement	4.00%	4.00%
Common Equity Tier One Risk Based Capital Required to be Well Capitalized	$ 6,089	$ 6,342
Tier 1 capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions	7,494	7,805
Total capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions	9,368	9,756
Tier 1 Leverage, To Be Well-Capitalized Under Prompt Corrective Action Provisions	$ 6,577	$ 6,629
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, 2020	Dec. 31, 2019
Restricted Cash and Cash Equivalents Items [Line Items]
Required reserve balances		$ 116
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	$ 39
bankers commercial corporation
Restricted Cash and Cash Equivalents Items [Line Items]
Letters of Credit Outstanding, Amount	6
MUSA
Restricted Cash and Cash Equivalents Items [Line Items]
Cash and Securities Segregated under Securities Exchange Commission Regulation	$ 11

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Commitments, Contingencies and Guarantees (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)
Commitments to extend credit
Commitment, Contingencies and Guarantees disclosures
Commitments	$ 39,421
Issued standby and commercial letters of credit
Commitment, Contingencies and Guarantees disclosures
Commitments	$ 4,189
Maximum term	1 year
Loss Contingency Accrual	$ 4
Commitments to enter into forward-starting resale agreements
Commitment, Contingencies and Guarantees disclosures
Commitments	2,187
Other commitments
Commitment, Contingencies and Guarantees disclosures
Commitments	1,831
MUSA and Various other Non-Bank Subsidiaries | Unsecured Debt [Member]
Commitment, Contingencies and Guarantees disclosures
Revolving credit facility borrowing capacity	1,600
Commercial | Notes Receivable [Member] | Financial and Insurance [Member]
Commitment, Contingencies and Guarantees disclosures
Commitments	9,000
Commercial | Notes Receivable [Member] | Power and Utilities [Member]
Commitment, Contingencies and Guarantees disclosures
Commitments	6,000
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	5,000
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
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Gain on sale	$ 1,489,000,000	$ 1,439,000,000	$ 1,213,000,000
Available-for-sale Securities	18,259,000,000	17,789,000,000
Increase in retained earnings	(23,000,000)	(57,000,000)	4,000,000
Liabilities	150,567,000,000	154,443,000,000
Derivative, Notional Amount	220,226,000,000	241,444,000,000
MUSA and Various other Non-Bank Subsidiaries
Related Party Transaction [Line Items]
Derivative, Notional Amount	4,600,000,000	4,000,000,000.0
Unrealized gains	14,000,000	68,000,000
Unsecured Debt [Member] | MUSA and Various other Non-Bank Subsidiaries
Related Party Transaction [Line Items]
Unsecured revolving credit facility with BTMU	1,600,000,000
Retained Earnings
Related Party Transaction [Line Items]
Increase in retained earnings	(4,000,000)	(5,000,000)	0
Affiliated Entity [Member] | MUSA and Various other Non-Bank Subsidiaries
Related Party Transaction [Line Items]
Gain on sale	1,489,000,000	$ 1,439,000,000	$ 1,213,000,000
Securities sold under agreements to repurchase	0
Sale Of Loans | Affiliated Entity [Member]
Related Party Transaction [Line Items]
Proceeds from sale of loan	1,500,000,000
Gain on sale	3,000,000
Purchase of loans	$ 56,000,000

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- Assets and Liabilities with Affiliates (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Cash and cash equivalents	$ 16,414	$ 9,641	$ 8,350
Securities borrowed or purchased under resale agreements	17,608	23,943
Trading account assets	16,038	10,377
Other assets	9,916	10,200
Commercial paper and other short-term borrowings	110	6,484
Other liabilities	2,906	2,837
Trading account liabilities	3,333	3,266
MUSA and Various other Non-Bank Subsidiaries | Affiliated Entity
Related Party Transaction [Line Items]
Cash and cash equivalents	231	282
Securities borrowed or purchased under resale agreements	4,070	2,415
Trading account assets	50	0
Other assets	152	109
Deposits	726	894
Securities loaned or sold under repurchase agreements	551	318
Commercial paper and other short-term borrowings	87	326
Long-term debt	6,887	7,345
Other liabilities	102	98
Trading account liabilities	$ 17	$ 0

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- Revenues and Expenses with Affiliates (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Securities borrowed or purchased under resale agreements	$ 190	$ 765	$ 652
Interest Expense, Deposits	363	826	441
Long-term debt	349	497	365
Securities loaned or sold under repurchase agreements	155	830	734
Trading account activities	38	70	(24)
Fees from affiliates	1,489	1,439	1,213
Other	247	248	230
Other Noninterest Expense	386	422	409
MUSA and Various other Non-Bank Subsidiaries | Affiliated Entity
Related Party Transaction [Line Items]
Securities borrowed or purchased under resale agreements	19	66	66
Interest Income, Other	1	2	2
Interest Expense, Deposits	3	13	3
Commercial paper and other short-term borrowings	5	3	2
Long-term debt	118	237	171
Securities loaned or sold under repurchase agreements	4	25	18
Trading account activities	(56)	34	0
Fees from affiliates	1,489	1,439	1,213
Other	32	(6)	1
Other Noninterest Expense	$ 97	$ 96	$ 115

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Business Segments - Additional Information (Details)	12 Months Ended
	Dec. 31, 2020 USD ($) branch
Business segments
Number of Reportable Segments	4
Regional Bank | consumer banking
Business segments
Number of full-service branches | branch	341
Regional Bank | small business
Business segments
Number of full-service branches | branch	341
Segment reporting, annual revenue for customer benchmark (up to)	$ 10,000,000
Regional Bank | business banking
Business segments
Segment Reporting, Annual Revenue Minimum	10,000,000
Segment Reporting, Annual Revenue Maximum	50,000,000
Regional Bank | commercial banking
Business segments
Segment Reporting, Annual Revenue Minimum	50,000,000
Segment Reporting, Annual Revenue Maximum	$ 2,000,000,000

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Business Segments - Schedule of Segments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Business segments
Number of Reportable Segments	4
Net interest income (expense)	$ 3,077	$ 3,093	$ 3,307
Noninterest income	2,905	2,705	2,177
Total income	5,982	5,798	5,484
Other expense	5,021	6,215	4,277
(Reversal of) provision for credit losses	829	252	106
Income before income taxes and including noncontrolling interests	132	(669)	1,101
Income tax benefit	(18)	82	52
Net Income	150	(751)	1,049
Deduct: Net loss (income) from noncontrolling interests	16	17	24
Net (Loss) Income Attributable to MUAH	166	(734)	1,073
Total assets, end of period	167,846	170,810	168,100
Other (1)
Business segments
Net interest income (expense)	31	(47)	234
Noninterest income	1,501	1,391	994
Total income	1,532	1,344	1,228
Other expense	1,776	2,916	1,107
(Reversal of) provision for credit losses	0	(6)	1
Income before income taxes and including noncontrolling interests	(244)	(1,566)	120
Income tax benefit	(48)	(67)	(211)
Net Income	(196)	(1,499)	331
Deduct: Net loss (income) from noncontrolling interests	16	17	24
Net (Loss) Income Attributable to MUAH	(180)	(1,482)	355
Total assets, end of period	45,750	39,938	39,275
Regional Bank | Operating segments
Business segments
Net interest income (expense)	2,096	2,294	2,195
Noninterest income	470	520	451
Total income	2,566	2,814	2,646
Other expense	2,039	2,130	2,058
(Reversal of) provision for credit losses	760	209	65
Income before income taxes and including noncontrolling interests	(233)	475	523
Income tax benefit	(63)	93	105
Net Income	(170)	382	418
Deduct: Net loss (income) from noncontrolling interests	0	0	0
Net (Loss) Income Attributable to MUAH	(170)	382	418
Total assets, end of period	65,940	74,980	73,554
U.S. Wholesale Banking and Investment Banking [Member] | Operating segments
Business segments
Net interest income (expense)	445
Noninterest income	461
Other expense	509
(Reversal of) provision for credit losses	68
Income tax benefit	27
Deduct: Net loss (income) from noncontrolling interests	0
Total assets, end of period	23,260
Global Corporate & Investment Banking - U.S. | Operating segments
Business segments
Net interest income (expense)		482	471
Noninterest income		371	392
Total income	906	853	863
Other expense		505	463
(Reversal of) provision for credit losses		51	48
Income before income taxes and including noncontrolling interests	329	297	352
Income tax benefit		19	128
Net Income	302	278	224
Deduct: Net loss (income) from noncontrolling interests		0	0
Net (Loss) Income Attributable to MUAH	302	278	224
Total assets, end of period		20,681	20,796
Transaction Banking | Operating segments
Business segments
Net interest income (expense)	190	197	207
Noninterest income	36	39	40
Total income	226	236	247
Other expense	173	188	206
(Reversal of) provision for credit losses	1	(2)	(8)
Income before income taxes and including noncontrolling interests	52	50	49
Income tax benefit	10	19	13
Net Income	42	31	36
Deduct: Net loss (income) from noncontrolling interests	0	0	0
Net (Loss) Income Attributable to MUAH	42	31	36
Total assets, end of period	182	756	631
MUSA | Operating segments
Business segments
Net interest income (expense)	315	167	200
Noninterest income	437	384	300
Total income	752	551	500
Other expense	524	476	443
(Reversal of) provision for credit losses	0	0	0
Income before income taxes and including noncontrolling interests	228	75	57
Income tax benefit	56	18	17
Net Income	172	57	40
Deduct: Net loss (income) from noncontrolling interests	0	0	0
Net (Loss) Income Attributable to MUAH	172	57	40
Total assets, end of period	$ 32,714	$ 34,455	$ 33,844

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Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company) - Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 2,105	$ 2,457
Other assets	9,916	10,200
Total assets	167,846	170,810	$ 168,100
Liabilities and Stockholders' Equity
Long-term debt	14,631	17,129
Other liabilities	2,906	2,837
Total liabilities	150,567	154,443
Stockholders' equity	17,279	16,367	$ 16,580	$ 18,355
Total liabilities and stockholders' equity	167,846	170,810
MUFG Americas Holdings Corporation
Assets
Cash and cash equivalents	583	840
Investments in and advances to subsidiaries: Bank subsidiary	18,731	18,103
Investments in and advances to subsidiaries: Nonbank subsidiaries	5,011	4,770
Other assets	350	407
Total assets	24,675	24,120
Liabilities and Stockholders' Equity
Long-term debt	7,276	7,622
Other liabilities	210	218
Total liabilities	7,486	7,840
Stockholders' equity	17,189	16,280
Total liabilities and stockholders' equity	24,675	24,120
Other Subsidiaries, Excluding MUFG Bank, NA [Member]
Liabilities and Stockholders' Equity
Long-term debt	$ 471	$ 598

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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, 2020	Dec. 31, 2019	Dec. 31, 2018
Income:
Total income	$ 5,982	$ 5,798	$ 5,484
Expense:
Other expense	5,021	6,215	4,277
Income before income taxes and including noncontrolling interests	132	(669)	1,101
Income tax benefit	18	(82)	(52)
Equity in undistributed net income of subsidiaries less dividends received:
Net (Loss) Income Including Noncontrolling Interests	150	(751)	1,049
MUFG Americas Holdings Corporation
Income:
Interest income on advances to subsidiaries and deposits in bank	92	161	137
Rental Income	15	15	15
Total income	173	792	1,947
Expense:
Interest Expense, Borrowings	141	251	194
Other expense	31	29	17
Total expense	172	280	211
Income before income taxes and including noncontrolling interests	1	512	1,736
Income tax benefit	18	24	13
Income (loss) before equity in undistributed net income of subsidiaries	19	536	1,749
Equity in undistributed net income of subsidiaries less dividends received:
Bank subsidiary	(38)	(746)	(697)
Nonbank subsidiaries	185	(524)	21
Net (Loss) Income Including Noncontrolling Interests	166	(734)	1,073
Bank Subsidiary | MUFG Americas Holdings Corporation
Income:
Investment Income, Dividend	0	0	1,700
Nonbank Subsidiary | MUFG Americas Holdings Corporation
Income:
Investment Income, Dividend	$ 66	$ 616	$ 95

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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, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash Flows from Operating Activities:
Net Income	$ 150	$ (751)	$ 1,049
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Other, net	(7)	59	(18)
Cash Flows from Financing Activities:
Proceeds from (Repurchase of) Equity	0	0	(2,496)
Other, net	(59)	(96)	(115)
Cash and cash equivalents	9,641	8,350
Cash, Cash Equivalents, and Federal Funds Sold	16,414	9,641	8,350
MUFG Americas Holdings Corporation
Cash Flows from Operating Activities:
Net Income	166	(734)	1,073
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed net income of subsidiaries less dividends received	(147)	1,270	676
Other, net	58	(743)	(9)
Net cash provided by (used in) operating activities	77	(207)	1,740
Cash Flows from Investing Activities:
Investments in and advances to subsidiaries	(564)	(1,585)	(2,612)
Repayment of investments in and advances to subsidiaries	584	1,634	2,411
Net cash provided by (used in) investing activities	20	49	(201)
Cash Flows from Financing Activities:
Proceeds from advances from subsidiaries	0	0	0
Repayment of advances from subsidiaries	0	0	0
Proceeds from issuance of long-term debt	3,025	1,890	6,500
Repayment of long-term debt	(3,379)	(1,631)	(6,145)
Dividends paid	0	0	0
Proceeds from (Repurchase of) Equity	0	0	(2,496)
Net cash provided by (used in) financing activities	(354)	259	(2,141)
Net increase (decrease) in cash and cash equivalents	(257)	101	(602)
Cash and cash equivalents	840	739	1,341
Cash, Cash Equivalents, and Federal Funds Sold	$ 583	$ 840	$ 739