Retirement Plans

9 Months Ended

Sep. 30, 2020

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

RETIREMENT PLANS

RETIREMENT PLANS

The following discloses the net periodic cost (benefit) and its components for the Bank’s pension and other retirement plans:

(In millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Interest cost	$	—	$	1	$	2	$	4
Expected return on plan assets	—		(2)		(3)		(6)
Pension termination-related expense	—		—		28		1
Amortization of net actuarial loss	—		1		—		1
Net periodic cost	$	—	$	—	$	27	$	—

In October 2018, the Bank announced its intention to terminate the defined benefit pension plan subject to obtaining necessary regulatory approval. The Bank received an IRS letter of determination on March 31, 2020. Plan participants made elections for lump-sum distributions or annuity benefits. Lump-sum distributions were completed in May 2020, and the annuity purchase was completed in June 2020. As a result of the pension termination, the Bank incurred $28 million of expense, which was recognized in Other noninterest expense. The pension plan

termination expense included a loss of $17 million that was reclassified out of accumulated other comprehensive income, resulting in a pre-tax decrease in shareholders’ equity of $11 million.