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Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2021

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 June 30, 2021 and December 31, 2020.


	June 30, 2021
	Consolidated Assets						Consolidated Liabilities
(Dollars in millions)	Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	74	$	74	$	14	$	14
Leasing investments	281		109		390		2		2
Total consolidated VIEs	$	281	$	183	$	464	$	16	$	16


	December 31, 2020
	Consolidated Assets						Consolidated Liabilities
(Dollars in millions)	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

The following tables present the Company’s carrying amounts related to the unconsolidated VIEs at June 30, 2021 and December 31, 2020. 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 the six months ended June 30, 2021 and June 30, 2020, noncash increases in unfunded commitments on LIHC investments were de minimis and $52 million, respectively, included in other liabilities.


	June 30, 2021
	Unconsolidated Assets								Unconsolidated Liabilities
(Dollars in millions)	Securities Available for Sale		Loans Held for Investment, Net		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	26	$	261	$	765	$	1,052	$	155	$	155	$	1,052
Renewable energy investments	—		18		1,112		1,130		—		—		1,150
Other investments	—		—		110		110		4		4		208
Total unconsolidated VIEs	$	26	$	279	$	1,987	$	2,292	$	159	$	159	$	2,410


	December 31, 2020
	Unconsolidated Assets									Unconsolidated Liabilities
(Dollars in millions)		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

The following table presents the impact of the unconsolidated LIHC investments on our consolidated statements of income for the three and six months ended June 30, 2021 and 2020.


	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
(Dollars in millions)
Losses from LIHC investments included in other noninterest expense	$	1	$	1	$	2	$	2
Amortization of LIHC investments included in income tax expense	31		28		63		59
Tax credits and other tax benefits from LIHC investments included in income tax expense	40		43		82		79

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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