x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 38-1998421 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | x | Accelerated filer | o |
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o |
(in millions, except share data) | March 31, 2012 | December 31, 2011 | March 31, 2011 | ||||||||
(unaudited) | (unaudited) | ||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 984 | $ | 982 | $ | 875 | |||||
Federal funds sold | 10 | — | — | ||||||||
Interest-bearing deposits with banks | 2,966 | 2,574 | 3,570 | ||||||||
Other short-term investments | 180 | 149 | 154 | ||||||||
Investment securities available-for-sale | 10,061 | 10,104 | 7,406 | ||||||||
Commercial loans | 25,640 | 24,996 | 21,360 | ||||||||
Real estate construction loans | 1,442 | 1,533 | 2,023 | ||||||||
Commercial mortgage loans | 10,079 | 10,264 | 9,697 | ||||||||
Lease financing | 872 | 905 | 958 | ||||||||
International loans | 1,256 | 1,170 | 1,326 | ||||||||
Residential mortgage loans | 1,485 | 1,526 | 1,550 | ||||||||
Consumer loans | 2,238 | 2,285 | 2,262 | ||||||||
Total loans | 43,012 | 42,679 | 39,176 | ||||||||
Less allowance for loan losses | (704 | ) | (726 | ) | (849 | ) | |||||
Net loans | 42,308 | 41,953 | 38,327 | ||||||||
Premises and equipment | 670 | 675 | 637 | ||||||||
Accrued income and other assets | 5,414 | 4,571 | 4,048 | ||||||||
Total assets | $ | 62,593 | $ | 61,008 | $ | 55,017 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Noninterest-bearing deposits | $ | 20,741 | $ | 19,764 | $ | 16,357 | |||||
Money market and NOW deposits | 20,502 | 20,311 | 17,888 | ||||||||
Savings deposits | 1,586 | 1,524 | 1,457 | ||||||||
Customer certificates of deposit | 6,145 | 5,808 | 5,672 | ||||||||
Foreign office time deposits | 332 | 348 | 499 | ||||||||
Total interest-bearing deposits | 28,565 | 27,991 | 25,516 | ||||||||
Total deposits | 49,306 | 47,755 | 41,873 | ||||||||
Short-term borrowings | 82 | 70 | 61 | ||||||||
Accrued expenses and other liabilities | 1,301 | 1,371 | 1,090 | ||||||||
Medium- and long-term debt | 4,919 | 4,944 | 6,116 | ||||||||
Total liabilities | 55,608 | 54,140 | 49,140 | ||||||||
Common stock - $5 par value: | |||||||||||
Authorized - 325,000,000 shares | |||||||||||
Issued - 228,164,824 shares at 3/31/12 and 12/31/11 and 203,878,110 shares at 3/31/11 | 1,141 | 1,141 | 1,019 | ||||||||
Capital surplus | 2,154 | 2,170 | 1,464 | ||||||||
Accumulated other comprehensive loss | (326 | ) | (356 | ) | (382 | ) | |||||
Retained earnings | 5,630 | 5,546 | 5,317 | ||||||||
Less cost of common stock in treasury - 31,032,920 shares at 3/31/12, 30,831,076 shares at 12/31/11 and 27,103,941 shares at 3/31/11 | (1,614 | ) | (1,633 | ) | (1,541 | ) | |||||
Total shareholders’ equity | 6,985 | 6,868 | 5,877 | ||||||||
Total liabilities and shareholders’ equity | $ | 62,593 | $ | 61,008 | $ | 55,017 |
Three Months Ended March 31, | |||||||
(in millions, except per share data) | 2012 | 2011 | |||||
INTEREST INCOME | |||||||
Interest and fees on loans | $ | 411 | $ | 375 | |||
Interest on investment securities | 64 | 57 | |||||
Interest on short-term investments | 3 | 2 | |||||
Total interest income | 478 | 434 | |||||
INTEREST EXPENSE | |||||||
Interest on deposits | 19 | 22 | |||||
Interest on medium- and long-term debt | 16 | 17 | |||||
Total interest expense | 35 | 39 | |||||
Net interest income | 443 | 395 | |||||
Provision for loan losses | 23 | 49 | |||||
Net interest income after provision for loan losses | 420 | 346 | |||||
NONINTEREST INCOME | |||||||
Service charges on deposit accounts | 56 | 52 | |||||
Fiduciary income | 38 | 39 | |||||
Commercial lending fees | 25 | 21 | |||||
Letter of credit fees | 17 | 18 | |||||
Card fees | 11 | 15 | |||||
Foreign exchange income | 9 | 9 | |||||
Bank-owned life insurance | 10 | 8 | |||||
Brokerage fees | 6 | 6 | |||||
Net securities gains | 5 | 2 | |||||
Other noninterest income | 29 | 37 | |||||
Total noninterest income | 206 | 207 | |||||
NONINTEREST EXPENSES | |||||||
Salaries | 201 | 188 | |||||
Employee benefits | 60 | 50 | |||||
Total salaries and employee benefits | 261 | 238 | |||||
Net occupancy expense | 41 | 40 | |||||
Equipment expense | 17 | 15 | |||||
Outside processing fee expense | 26 | 24 | |||||
Software expense | 23 | 23 | |||||
FDIC insurance expense | 10 | 15 | |||||
Advertising expense | 7 | 7 | |||||
Other real estate expense | 4 | 8 | |||||
Other noninterest expenses | 59 | 45 | |||||
Total noninterest expenses | 448 | 415 | |||||
Income before income taxes | 178 | 138 | |||||
Provision for income taxes | 48 | 35 | |||||
NET INCOME | 130 | 103 | |||||
Less income allocated to participating securities | 1 | 1 | |||||
Net income attributable to common shares | $ | 129 | $ | 102 | |||
Earnings per common share: | |||||||
Basic | $ | 0.66 | $ | 0.58 | |||
Diluted | 0.66 | 0.57 | |||||
Comprehensive income | 160 | 110 | |||||
Cash dividends declared on common stock | 20 | 17 | |||||
Cash dividends declared per common share | 0.10 | 0.10 |
Common Stock | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||
(in millions, except per share data) | Shares Outstanding | Amount | Capital Surplus | Retained Earnings | Treasury Stock | |||||||||||||||||||||
BALANCE AT DECEMBER 31, 2010 | 176.5 | $ | 1,019 | $ | 1,481 | $ | (389 | ) | $ | 5,247 | $ | (1,565 | ) | $ | 5,793 | |||||||||||
Net income | — | — | — | — | 103 | — | 103 | |||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | 7 | — | — | 7 | |||||||||||||||||||
Cash dividends declared on common stock ($0.10 per share) | — | — | — | — | (17 | ) | — | (17 | ) | |||||||||||||||||
Purchase of common stock | (0.5 | ) | — | — | — | — | (21 | ) | (21 | ) | ||||||||||||||||
Net issuance of common stock under employee stock plans | 0.8 | — | (30 | ) | — | (16 | ) | 45 | (1 | ) | ||||||||||||||||
Share-based compensation | — | — | 13 | — | — | — | 13 | |||||||||||||||||||
BALANCE AT MARCH 31, 2011 | 176.8 | $ | 1,019 | $ | 1,464 | $ | (382 | ) | $ | 5,317 | $ | (1,541 | ) | $ | 5,877 | |||||||||||
BALANCE AT DECEMBER 31, 2011 | 197.3 | $ | 1,141 | $ | 2,170 | $ | (356 | ) | $ | 5,546 | $ | (1,633 | ) | $ | 6,868 | |||||||||||
Net income | — | — | — | — | 130 | — | 130 | |||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | 30 | — | — | 30 | |||||||||||||||||||
Cash dividends declared on common stock ($0.10 per share) | — | — | — | — | (20 | ) | — | (20 | ) | |||||||||||||||||
Purchase of common stock | (1.2 | ) | — | — | — | — | (36 | ) | (36 | ) | ||||||||||||||||
Net issuance of common stock under employee stock plans | 1.1 | — | (32 | ) | — | (26 | ) | 58 | — | |||||||||||||||||
Share-based compensation | — | — | 13 | — | — | — | 13 | |||||||||||||||||||
Other | (0.1 | ) | — | 3 | — | — | (3 | ) | — | |||||||||||||||||
BALANCE AT MARCH 31, 2012 | 197.1 | $ | 1,141 | $ | 2,154 | $ | (326 | ) | $ | 5,630 | $ | (1,614 | ) | $ | 6,985 |
Three Months Ended March 31, | |||||||
(in millions) | 2012 | 2011 | |||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 130 | $ | 103 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for loan losses | 23 | 49 | |||||
Provision for deferred income taxes | 22 | 13 | |||||
Depreciation and amortization | 33 | 29 | |||||
Share-based compensation expense | 13 | 13 | |||||
Net amortization of securities | 10 | 7 | |||||
Accretion of loan purchase discount | (25 | ) | — | ||||
Net securities gains | (5 | ) | (2 | ) | |||
Excess tax benefits from share-based compensation arrangements | (1 | ) | (1 | ) | |||
Net change in: | |||||||
Trading securities | (33 | ) | (13 | ) | |||
Accrued income receivable | (1 | ) | (2 | ) | |||
Accrued expenses payable | (85 | ) | (59 | ) | |||
Other, net | 77 | 13 | |||||
Net cash provided by operating activities | 158 | 150 | |||||
INVESTING ACTIVITIES | |||||||
Investment securities available-for-sale: | |||||||
Maturities and redemptions | 937 | 592 | |||||
Purchases | (869 | ) | (448 | ) | |||
Net change in loans | (357 | ) | 946 | ||||
Other, net | (14 | ) | (4 | ) | |||
Net cash (used in) provided by investing activities | (303 | ) | 1,086 | ||||
FINANCING ACTIVITIES | |||||||
Net change in: | |||||||
Deposits | 600 | 1,226 | |||||
Short-term borrowings | 12 | (69 | ) | ||||
Medium- and long-term debt: | |||||||
Repayment | (4 | ) | — | ||||
Common stock: | |||||||
Repurchased | (36 | ) | (21 | ) | |||
Cash dividends paid | (20 | ) | (18 | ) | |||
Excess tax benefits from share-based compensation arrangements | 1 | 1 | |||||
Other, net | (4 | ) | 7 | ||||
Net cash provided by financing activities | 549 | 1,126 | |||||
Net increase in cash and cash equivalents | 404 | 2,362 | |||||
Cash and cash equivalents at beginning of period | 3,556 | 2,083 | |||||
Cash and cash equivalents at end of period | $ | 3,960 | $ | 4,445 | |||
Interest paid | $ | 32 | $ | 34 | |||
Income taxes, tax deposits and tax-related interest paid | 5 | 14 | |||||
Noncash investing and financing activities: | |||||||
Loans transferred to other real estate | 5 | 13 |
Level 1 | Valuation is based upon quoted prices for identical instruments traded in active markets. | ||
Level 2 | Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | ||
Level 3 | Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. |
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
March 31, 2012 | |||||||||||||||
Trading securities: | |||||||||||||||
Deferred compensation plan assets | $ | 94 | $ | 94 | $ | — | $ | — | |||||||
Residential mortgage-backed securities (a) | 5 | — | 5 | — | |||||||||||
State and municipal securities | 46 | — | 46 | — | |||||||||||
Corporate debt securities | 2 | — | 2 | — | |||||||||||
Total trading securities | 147 | 94 | 53 | — | |||||||||||
Investment securities available-for-sale: | |||||||||||||||
U.S. Treasury and other U.S. government agency securities | 20 | 20 | — | — | |||||||||||
Residential mortgage-backed securities (a) | 9,584 | — | 9,584 | — | |||||||||||
State and municipal securities (b) | 23 | — | — | 23 | |||||||||||
Corporate debt securities: | |||||||||||||||
Auction-rate debt securities | 1 | — | — | 1 | |||||||||||
Other corporate debt securities | 47 | — | 47 | — | |||||||||||
Equity and other non-debt securities: | |||||||||||||||
Auction-rate preferred securities | 320 | — | — | 320 | |||||||||||
Money market and other mutual funds | 66 | 66 | — | — | |||||||||||
Total investment securities available-for-sale | 10,061 | 86 | 9,631 | 344 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | 564 | — | 564 | — | |||||||||||
Energy derivative contracts | 152 | — | 152 | — | |||||||||||
Foreign exchange contracts | 33 | — | 33 | — | |||||||||||
Warrants | 3 | — | — | 3 | |||||||||||
Total derivative assets | 752 | — | 749 | 3 | |||||||||||
Total assets at fair value | $ | 10,960 | $ | 180 | $ | 10,433 | $ | 347 | |||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | $ | 235 | $ | — | $ | 235 | $ | — | |||||||
Energy derivative contracts | 151 | — | 151 | — | |||||||||||
Foreign exchange contracts | 28 | — | 28 | — | |||||||||||
Total derivative liabilities | 414 | — | 414 | — | |||||||||||
Deferred compensation plan liabilities | 94 | 94 | — | — | |||||||||||
Total liabilities at fair value | $ | 508 | $ | 94 | $ | 414 | $ | — |
(a) | Residential mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
(b) | Primarily auction-rate securities. |
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
December 31, 2011 | |||||||||||||||
Trading securities: | |||||||||||||||
Deferred compensation plan assets | $ | 90 | $ | 90 | $ | — | $ | — | |||||||
Residential mortgage-backed securities (a) | 2 | — | 2 | — | |||||||||||
Other government-sponsored enterprise securities | 9 | — | 9 | — | |||||||||||
State and municipal securities | 12 | — | 12 | — | |||||||||||
Corporate debt securities | 1 | — | 1 | — | |||||||||||
Other securities | 1 | 1 | — | — | |||||||||||
Total trading securities | 115 | 91 | 24 | — | |||||||||||
Investment securities available-for-sale: | |||||||||||||||
U.S. Treasury and other U.S. government agency securities | 20 | 20 | — | — | |||||||||||
Residential mortgage-backed securities (a) | 9,512 | — | 9,512 | — | |||||||||||
State and municipal securities (b) | 24 | — | — | 24 | |||||||||||
Corporate debt securities: | |||||||||||||||
Auction-rate debt securities | 1 | — | — | 1 | |||||||||||
Other corporate debt securities | 46 | — | 46 | — | |||||||||||
Equity and other non-debt securities: | |||||||||||||||
Auction-rate preferred securities | 408 | — | — | 408 | |||||||||||
Money market and other mutual funds | 93 | 93 | — | — | |||||||||||
Total investment securities available-for-sale | 10,104 | 113 | 9,558 | 433 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | 602 | — | 602 | — | |||||||||||
Energy derivative contracts | 115 | — | 115 | — | |||||||||||
Foreign exchange contracts | 40 | — | 40 | — | |||||||||||
Warrants | 3 | — | — | 3 | |||||||||||
Total derivative assets | 760 | — | 757 | 3 | |||||||||||
Total assets at fair value | $ | 10,979 | $ | 204 | $ | 10,339 | $ | 436 | |||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | $ | 253 | $ | — | $ | 253 | $ | — | |||||||
Energy derivative contracts | 115 | — | 115 | — | |||||||||||
Foreign exchange contracts | 35 | — | 35 | — | |||||||||||
Other | 6 | — | — | 6 | |||||||||||
Total derivative liabilities | 409 | — | 403 | 6 | |||||||||||
Deferred compensation plan liabilities | 90 | 90 | — | — | |||||||||||
Total liabilities at fair value | $ | 499 | $ | 90 | $ | 403 | $ | 6 |
(a) | Residential mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
(b) | Primarily auction-rate securities. |
Net Realized/Unrealized Gains (Losses) | ||||||||||||||||||||||||||
Balance at Beginning of Period | Recorded in Earnings | Recorded in Other Comprehensive Income (Pre-tax) | Balance at End of Period | |||||||||||||||||||||||
(in millions) | Realized | Unrealized | Sales | Settlements | ||||||||||||||||||||||
Three Months Ended March 31, 2012 | ||||||||||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||||||||||
State and municipal securities (a) | $ | 24 | $ | — | $ | — | $ | (1 | ) | (b) | $ | — | $ | — | $ | 23 | ||||||||||
Auction-rate debt securities | 1 | — | — | — | — | — | 1 | |||||||||||||||||||
Auction-rate preferred securities | 408 | 5 | — | 4 | (b) | (97 | ) | — | 320 | |||||||||||||||||
Total investment securities available-for-sale | 433 | 5 | — | 3 | (b) | (97 | ) | — | 344 | |||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||
Warrants | 3 | 1 | — | — | (1 | ) | — | 3 | ||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||
Other | 6 | — | — | — | — | (6 | ) | — | ||||||||||||||||||
Three Months Ended March 31, 2011 | ||||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||||
Other securities | 1 | — | — | — | (1 | ) | — | — | ||||||||||||||||||
Total trading securities | 1 | — | — | — | (1 | ) | — | — | ||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||||||||||
State and municipal securities (a) | 39 | — | — | — | (13 | ) | — | 26 | ||||||||||||||||||
Auction-rate debt securities | 1 | — | — | — | — | — | 1 | |||||||||||||||||||
Other corporate debt securities | 1 | — | — | — | — | — | 1 | |||||||||||||||||||
Auction-rate preferred securities | 570 | 3 | — | (11 | ) | (b) | (58 | ) | — | 504 | ||||||||||||||||
Total investment securities available-for-sale | 611 | 3 | — | (11 | ) | (b) | (71 | ) | — | 532 | ||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||
Warrants | 7 | 2 | 1 | — | (2 | ) | — | 8 | ||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||
Other | 1 | — | (1 | ) | — | — | — | 2 |
(a) | Primarily auction-rate securities. |
(b) | Recorded in "net unrealized gains (losses) on investment securities available-for-sale" in other comprehensive income. |
Net Securities Gains (Losses) | Other Noninterest Income | Total | |||||||||||||||||||||
(in millions) | Realized | Unrealized | Realized | Unrealized | Realized | Unrealized | |||||||||||||||||
Three Months Ended March 31, 2012 | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
Auction-rate preferred securities | $ | 5 | $ | — | $ | — | $ | — | $ | 5 | $ | — | |||||||||||
Derivative assets: | |||||||||||||||||||||||
Warrants | — | — | 1 | — | 1 | — | |||||||||||||||||
Three Months Ended March 31, 2011 | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
Auction-rate preferred securities | 3 | — | — | — | 3 | — | |||||||||||||||||
Derivative assets: | |||||||||||||||||||||||
Warrants | — | — | 2 | 1 | 2 | 1 | |||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||
Other | — | (1 | ) | — | — | — | (1 | ) |
(in millions) | Total | Level 3 | |||||
March 31, 2012 | |||||||
Loans: | |||||||
Commercial | $ | 133 | $ | 133 | |||
Real estate construction | 72 | 72 | |||||
Commercial mortgage | 288 | 288 | |||||
Lease financing | 3 | 3 | |||||
International | 4 | 4 | |||||
Total loans | 500 | 500 | |||||
Nonmarketable equity securities | 1 | 1 | |||||
Other real estate | 10 | 10 | |||||
Loan servicing rights | 3 | 3 | |||||
Total assets at fair value | $ | 514 | $ | 514 | |||
December 31, 2011 | |||||||
Loans: | |||||||
Commercial | $ | 164 | $ | 164 | |||
Real estate construction | 87 | 87 | |||||
Commercial mortgage | 302 | 302 | |||||
Lease financing | 3 | 3 | |||||
International | 8 | 8 | |||||
Total loans | 564 | 564 | |||||
Nonmarketable equity securities | 1 | 1 | |||||
Other real estate | 29 | 29 | |||||
Loan servicing rights | 3 | 3 | |||||
Total assets at fair value | $ | 597 | $ | 597 |
Discounted Cash Flow Model | |||||||
Unobservable Input | |||||||
March 31, 2012 | Fair Value (in millions) | Discount Rate | Workout Period (in years) | ||||
State and municipal securities (a) | $ | 23 | 5% - 10% | 4 - 5 | |||
Equity and other non-debt securities: | |||||||
Auction-rate preferred securities | 320 | 3% - 7% | 2 - 4 |
(a) | Primarily auction-rate securities. |
Carrying Amount | Estimated Fair Value | ||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
March 31, 2012 | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 984 | $ | 984 | $ | 984 | $ | — | $ | — | |||||||||
Federal funds sold | 10 | 10 | 10 | — | — | ||||||||||||||
Interest-bearing deposits with banks | 2,966 | 2,966 | 2,966 | — | — | ||||||||||||||
Loans held-for-sale | 32 | 32 | — | 32 | — | ||||||||||||||
Total loans, net of allowance for loan losses (a) | 42,308 | 42,597 | — | — | 42,597 | ||||||||||||||
Customers’ liability on acceptances outstanding | 17 | 17 | 17 | — | — | ||||||||||||||
Nonmarketable equity securities (b) | 15 | 28 | — | — | 28 | ||||||||||||||
Liabilities | |||||||||||||||||||
Demand deposits (noninterest-bearing) | 20,741 | 20,741 | — | 20,741 | — | ||||||||||||||
Interest-bearing deposits | 22,420 | 22,420 | — | 22,420 | — | ||||||||||||||
Customer certificates of deposit | 6,145 | 6,144 | — | 6,144 | — | ||||||||||||||
Total deposits | 49,306 | 49,305 | — | 49,305 | — | ||||||||||||||
Short-term borrowings | 82 | 82 | 82 | — | — | ||||||||||||||
Acceptances outstanding | 17 | 17 | 17 | — | — | ||||||||||||||
Medium- and long-term debt | 4,919 | 4,805 | — | 4,805 | — | ||||||||||||||
Credit-related financial instruments | (97 | ) | (97 | ) | — | — | (97 | ) | |||||||||||
December 31, 2011 | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 982 | $ | 982 | $ | 982 | $ | — | $ | — | |||||||||
Interest-bearing deposits with banks | 2,574 | 2,574 | 2,574 | — | — | ||||||||||||||
Loans held-for-sale | 34 | 34 | — | 34 | — | ||||||||||||||
Total loans, net of allowance for loan losses (a) | 41,953 | 42,233 | — | — | 42,233 | ||||||||||||||
Customers’ liability on acceptances outstanding | 22 | 22 | 22 | — | — | ||||||||||||||
Nonmarketable equity securities (b) | 16 | 27 | — | — | 27 | ||||||||||||||
Liabilities | |||||||||||||||||||
Demand deposits (noninterest-bearing) | 19,764 | 19,764 | — | 19,764 | — | ||||||||||||||
Interest-bearing deposits | 22,183 | 22,183 | — | 22,183 | — | ||||||||||||||
Customer certificates of deposit | 5,808 | 5,809 | — | 5,809 | — | ||||||||||||||
Total deposits | 47,755 | 47,756 | — | 47,756 | — | ||||||||||||||
Short-term borrowings | 70 | 70 | 70 | — | — | ||||||||||||||
Acceptances outstanding | 22 | 22 | 22 | — | — | ||||||||||||||
Medium- and long-term debt | 4,944 | 4,794 | — | 4,794 | — | ||||||||||||||
Credit-related financial instruments | (101 | ) | (101 | ) | — | — | (101 | ) |
(a) | Included $500 million and $564 million of impaired loans recorded at fair value on a nonrecurring basis at March 31, 2012 and December 31, 2011, respectively. |
(b) | Included $1 million of nonmarketable equity securities recorded at fair value on a nonrecurring basis at both March 31, 2012 and December 31, 2011. |
(in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
March 31, 2012 | |||||||||||||||
U.S. Treasury and other U.S. government agency securities | $ | 20 | $ | — | $ | — | $ | 20 | |||||||
Residential mortgage-backed securities (a) | 9,334 | 250 | — | 9,584 | |||||||||||
State and municipal securities (b) | 29 | — | 6 | 23 | |||||||||||
Corporate debt securities: | |||||||||||||||
Auction-rate debt securities | 1 | — | — | 1 | |||||||||||
Other corporate debt securities | 47 | — | — | 47 | |||||||||||
Equity and other non-debt securities: | |||||||||||||||
Auction-rate preferred securities | 331 | — | 11 | 320 | |||||||||||
Money market and other mutual funds | 66 | — | — | 66 | |||||||||||
Total investment securities available-for-sale | $ | 9,828 | $ | 250 | $ | 17 | $ | 10,061 | |||||||
December 31, 2011 | |||||||||||||||
U.S. Treasury and other U.S. government agency securities | $ | 20 | $ | — | $ | — | $ | 20 | |||||||
Residential mortgage-backed securities (a) | 9,289 | 224 | 1 | 9,512 | |||||||||||
State and municipal securities (b) | 29 | — | 5 | 24 | |||||||||||
Corporate debt securities: | |||||||||||||||
Auction-rate debt securities | 1 | — | — | 1 | |||||||||||
Other corporate debt securities | 46 | — | — | 46 | |||||||||||
Equity and other non-debt securities: | |||||||||||||||
Auction-rate preferred securities | 423 | — | 15 | 408 | |||||||||||
Money market and other mutual funds | 93 | — | — | 93 | |||||||||||
Total investment securities available-for-sale | $ | 9,901 | $ | 224 | $ | 21 | $ | 10,104 |
(a) | Residential mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
(b) | Primarily auction-rate securities. |
Temporarily Impaired | ||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||
(in millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||
March 31, 2012 | ||||||||||||||||||||||||||
Residential mortgage-backed securities (a) | $ | 362 | $ | — | (c) | $ | — | $ | — | $ | 362 | $ | — | (c) | ||||||||||||
State and municipal securities (b) | — | — | 23 | 6 | 23 | 6 | ||||||||||||||||||||
Corporate debt securities: | ||||||||||||||||||||||||||
Auction-rate debt securities | — | — | 1 | — | (c) | 1 | — | (c) | ||||||||||||||||||
Equity and other non-debt securities: | ||||||||||||||||||||||||||
Auction-rate preferred securities | 88 | — | (c) | 232 | 11 | 320 | 11 | |||||||||||||||||||
Total impaired securities | $ | 450 | $ | — | $ | 256 | $ | 17 | $ | 706 | $ | 17 | ||||||||||||||
December 31, 2011 | ||||||||||||||||||||||||||
Residential mortgage-backed securities (a) | $ | 249 | $ | 1 | $ | — | $ | — | $ | 249 | $ | 1 | ||||||||||||||
State and municipal securities (b) | — | — | 24 | 5 | 24 | 5 | ||||||||||||||||||||
Corporate debt securities: | ||||||||||||||||||||||||||
Auction-rate debt securities | — | — | 1 | — | (c) | 1 | — | (c) | ||||||||||||||||||
Equity and other non-debt securities: | ||||||||||||||||||||||||||
Auction-rate preferred securities | 88 | 1 | 320 | 14 | 408 | 15 | ||||||||||||||||||||
Total impaired securities | $ | 337 | $ | 2 | $ | 345 | $ | 19 | $ | 682 | $ | 21 |
(a) | Residential mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
(b) | Primarily auction-rate securities. |
(c) | Unrealized losses less than $0.5 million. |
Three Months Ended March 31, | |||||||
(in millions) | 2012 | 2011 | |||||
Securities gains | $ | 5 | $ | 3 | |||
Securities losses (a) | — | (1 | ) | ||||
Total net securities gains | $ | 5 | $ | 2 |
March 31, 2012 | |||||||
(in millions) | Amortized Cost | Fair Value | |||||
Contractual maturity | |||||||
Within one year | $ | 67 | $ | 67 | |||
After one year through five years | 239 | 248 | |||||
After five years through ten years | 139 | 140 | |||||
After ten years | 8,986 | 9,220 | |||||
Subtotal | 9,431 | 9,675 | |||||
Equity and other nondebt securities: | |||||||
Auction-rate preferred securities | 331 | 320 | |||||
Money market and other mutual funds | 66 | 66 | |||||
Total investment securities available-for-sale | $ | 9,828 | $ | 10,061 |
(in millions) | March 31, 2012 | December 31, 2011 | |||||
Nonaccrual loans | $ | 830 | $ | 860 | |||
Reduced-rate loans (a) | 26 | 27 | |||||
Total nonperforming loans | 856 | 887 | |||||
Foreclosed property | 67 | 94 | |||||
Total nonperforming assets | $ | 923 | $ | 981 |
(a) | Reduced-rate business loans totaled $7 million and $8 million, respectively, and reduced-rate retail loans totaled $19 million at both March 31, 2012 and December 31, 2011. |
Loans Past Due and Still Accruing | |||||||||||||||||||||||||||
(in millions) | 30-59 Days | 60-89 Days | 90 Days or More | Total | Nonaccrual Loans | Current Loans (c) | Total Loans | ||||||||||||||||||||
March 31, 2012 | |||||||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||||||
Commercial | $ | 113 | $ | 8 | $ | 4 | $ | 125 | $ | 205 | $ | 25,310 | $ | 25,640 | |||||||||||||
Real estate construction: | |||||||||||||||||||||||||||
Commercial Real Estate business line (a) | 54 | — | — | 54 | 77 | 924 | 1,055 | ||||||||||||||||||||
Other business lines (b) | 1 | 1 | 1 | 3 | 8 | 376 | 387 | ||||||||||||||||||||
Total real estate construction | 55 | 1 | 1 | 57 | 85 | 1,300 | 1,442 | ||||||||||||||||||||
Commercial mortgage: | |||||||||||||||||||||||||||
Commercial Real Estate business line (a) | 21 | 15 | 7 | 43 | 174 | 2,284 | 2,501 | ||||||||||||||||||||
Other business lines (b) | 26 | 8 | 18 | 52 | 275 | 7,251 | 7,578 | ||||||||||||||||||||
Total commercial mortgage | 47 | 23 | 25 | 95 | 449 | 9,535 | 10,079 | ||||||||||||||||||||
Lease financing | — | — | — | — | 4 | 868 | 872 | ||||||||||||||||||||
International | 23 | — | 3 | 26 | 4 | 1,226 | 1,256 | ||||||||||||||||||||
Total business loans | 238 | 32 | 33 | 303 | 747 | 38,239 | 39,289 | ||||||||||||||||||||
Retail loans: | |||||||||||||||||||||||||||
Residential mortgage | 18 | 7 | 8 | 33 | 69 | 1,383 | 1,485 | ||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||
Home equity | 9 | 5 | 4 | 18 | 9 | 1,585 | 1,612 | ||||||||||||||||||||
Other consumer | 4 | 2 | 5 | 11 | 5 | 610 | 626 | ||||||||||||||||||||
Total consumer | 13 | 7 | 9 | 29 | 14 | 2,195 | 2,238 | ||||||||||||||||||||
Total retail loans | 31 | 14 | 17 | 62 | 83 | 3,578 | 3,723 | ||||||||||||||||||||
Total loans | $ | 269 | $ | 46 | $ | 50 | $ | 365 | $ | 830 | $ | 41,817 | $ | 43,012 | |||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||
Business loans: | |||||||||||||||||||||||||||
Commercial | $ | 45 | $ | 6 | $ | 8 | $ | 59 | $ | 237 | $ | 24,700 | $ | 24,996 | |||||||||||||
Real estate construction: | |||||||||||||||||||||||||||
Commercial Real Estate business line (a) | 15 | 5 | — | 20 | 93 | 990 | 1,103 | ||||||||||||||||||||
Other business lines (b) | 1 | 1 | 1 | 3 | 8 | 419 | 430 | ||||||||||||||||||||
Total real estate construction | 16 | 6 | 1 | 23 | 101 | 1,409 | 1,533 | ||||||||||||||||||||
Commercial mortgage: | |||||||||||||||||||||||||||
Commercial Real Estate business line (a) | 62 | 16 | 1 | 79 | 159 | 2,269 | 2,507 | ||||||||||||||||||||
Other business lines (b) | 34 | 22 | 31 | 87 | 268 | 7,402 | 7,757 | ||||||||||||||||||||
Total commercial mortgage | 96 | 38 | 32 | 166 | 427 | 9,671 | 10,264 | ||||||||||||||||||||
Lease financing | — | — | — | — | 5 | 900 | 905 | ||||||||||||||||||||
International | 2 | — | — | 2 | 8 | 1,160 | 1,170 | ||||||||||||||||||||
Total business loans | 159 | 50 | 41 | 250 | 778 | 37,840 | 38,868 | ||||||||||||||||||||
Retail loans: | |||||||||||||||||||||||||||
Residential mortgage | 28 | 6 | 6 | 40 | 71 | 1,415 | 1,526 | ||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||
Home equity | 11 | 8 | 6 | 25 | 5 | 1,625 | 1,655 | ||||||||||||||||||||
Other consumer | 11 | 2 | 5 | 18 | 6 | 606 | 630 | ||||||||||||||||||||
Total consumer | 22 | 10 | 11 | 43 | 11 | 2,231 | 2,285 | ||||||||||||||||||||
Total retail loans | 50 | 16 | 17 | 83 | 82 | 3,646 | 3,811 | ||||||||||||||||||||
Total loans | $ | 209 | $ | 66 | $ | 58 | $ | 333 | $ | 860 | $ | 41,486 | $ | 42,679 |
(a) | Primarily loans to real estate investors and developers. |
(b) | Primarily loans secured by owner-occupied real estate. |
(c) | Included acquired purchase credit-impaired (PCI) loans with a total carrying value of $72 million and $87 million at March 31, 2012 and December 31, 2011, respectively. |
Internally Assigned Rating | |||||||||||||||||||
(in millions) | Pass (a) | Special Mention (b) | Substandard (c) | Nonaccrual (d) | Total | ||||||||||||||
March 31, 2012 | |||||||||||||||||||
Business loans: | |||||||||||||||||||
Commercial | $ | 23,920 | $ | 879 | $ | 636 | $ | 205 | $ | 25,640 | |||||||||
Real estate construction: | |||||||||||||||||||
Commercial Real Estate business line (e) | 766 | 117 | 95 | 77 | 1,055 | ||||||||||||||
Other business lines (f) | 344 | 14 | 21 | 8 | 387 | ||||||||||||||
Total real estate construction | 1,110 | 131 | 116 | 85 | 1,442 | ||||||||||||||
Commercial mortgage: | |||||||||||||||||||
Commercial Real Estate business line (e) | 1,751 | 391 | 185 | 174 | 2,501 | ||||||||||||||
Other business lines (f) | 6,445 | 363 | 495 | 275 | 7,578 | ||||||||||||||
Total commercial mortgage | 8,196 | 754 | 680 | 449 | 10,079 | ||||||||||||||
Lease financing | 840 | 13 | 15 | 4 | 872 | ||||||||||||||
International | 1,173 | 39 | 40 | 4 | 1,256 | ||||||||||||||
Total business loans | 35,239 | 1,816 | 1,487 | 747 | 39,289 | ||||||||||||||
Retail loans: | |||||||||||||||||||
Residential mortgage | 1,390 | 13 | 13 | 69 | 1,485 | ||||||||||||||
Consumer: | |||||||||||||||||||
Home equity | 1,575 | 18 | 10 | 9 | 1,612 | ||||||||||||||
Other consumer | 602 | 11 | 8 | 5 | 626 | ||||||||||||||
Total consumer | 2,177 | 29 | 18 | 14 | 2,238 | ||||||||||||||
Total retail loans | 3,567 | 42 | 31 | 83 | 3,723 | ||||||||||||||
Total loans | $ | 38,806 | $ | 1,858 | $ | 1,518 | $ | 830 | $ | 43,012 | |||||||||
December 31, 2011 | |||||||||||||||||||
Business loans: | |||||||||||||||||||
Commercial | $ | 23,206 | $ | 898 | $ | 655 | $ | 237 | $ | 24,996 | |||||||||
Real estate construction: | |||||||||||||||||||
Commercial Real Estate business line (e) | 768 | 139 | 103 | 93 | 1,103 | ||||||||||||||
Other business lines (f) | 370 | 23 | 29 | 8 | 430 | ||||||||||||||
Total real estate construction | 1,138 | 162 | 132 | 101 | 1,533 | ||||||||||||||
Commercial mortgage: | |||||||||||||||||||
Commercial Real Estate business line (e) | 1,728 | 409 | 211 | 159 | 2,507 | ||||||||||||||
Other business lines (f) | 6,541 | 415 | 533 | 268 | 7,757 | ||||||||||||||
Total commercial mortgage | 8,269 | 824 | 744 | 427 | 10,264 | ||||||||||||||
Lease financing | 865 | 18 | 17 | 5 | 905 | ||||||||||||||
International | 1,097 | 33 | 32 | 8 | 1,170 | ||||||||||||||
Total business loans | 34,575 | 1,935 | 1,580 | 778 | 38,868 | ||||||||||||||
Retail loans: | |||||||||||||||||||
Residential mortgage | 1,434 | 12 | 9 | 71 | 1,526 | ||||||||||||||
Consumer: | |||||||||||||||||||
Home equity | 1,600 | 22 | 28 | 5 | 1,655 | ||||||||||||||
Other consumer | 603 | 12 | 9 | 6 | 630 | ||||||||||||||
Total consumer | 2,203 | 34 | 37 | 11 | 2,285 | ||||||||||||||
Total retail loans | 3,637 | 46 | 46 | 82 | 3,811 | ||||||||||||||
Total loans | $ | 38,212 | $ | 1,981 | $ | 1,626 | $ | 860 | $ | 42,679 |
(a) | Includes all loans not included in the categories of special mention, substandard or nonaccrual. |
(b) | Special mention loans are accruing loans that have potential credit weaknesses that deserve management’s close attention, such as loans to borrowers who may be experiencing financial difficulties that may result in deterioration of repayment prospects from the borrower at some future date. Included in the special mention category were $409 million and $481 million at March 31, 2012 and December 31, 2011, respectively, of loans proactively monitored by management that were considered “pass” by regulatory authorities. |
(c) | Substandard loans are accruing loans that have a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans also are distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. PCI loans are included in the substandard category. This category is generally consistent with the "substandard" category as defined by regulatory authorities. |
(d) | Nonaccrual loans are loans for which the accrual of interest has been discontinued. For further information regarding nonaccrual loans, refer to the Nonperforming Assets subheading in Note 1 - Summary of Significant Accounting Policies - on page F-59 in the Corporation's 2011 Annual Report. A significant majority of nonaccrual loans are generally consistent with the "substandard" category and the remainder are generally consistent with the "doubtful" category as defined by regulatory authorities. |
(e) | Primarily loans to real estate investors and developers. |
(f) | Primarily loans secured by owner-occupied real estate. |
2012 | 2011 | ||||||||||||||||||||||
(in millions) | Business Loans | Retail Loans | Total | Business Loans | Retail Loans | Total | |||||||||||||||||
Three Months Ended March 31 | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | 648 | $ | 78 | $ | 726 | $ | 824 | $ | 77 | $ | 901 | |||||||||||
Loan charge-offs | (55 | ) | (7 | ) | (62 | ) | (113 | ) | (10 | ) | (123 | ) | |||||||||||
Recoveries on loans previously charged-off | 14 | 3 | 17 | 21 | 1 | 22 | |||||||||||||||||
Net loan charge-offs | (41 | ) | (4 | ) | (45 | ) | (92 | ) | (9 | ) | (101 | ) | |||||||||||
Provision for loan losses | 25 | (2 | ) | 23 | 39 | 10 | 49 | ||||||||||||||||
Balance at end of period | $ | 632 | $ | 72 | $ | 704 | $ | 771 | $ | 78 | $ | 849 | |||||||||||
As a percentage of total loans | 1.61 | % | 1.94 | % | 1.64 | % | 2.18 | % | 2.02 | % | 2.17 | % | |||||||||||
March 31 | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 143 | $ | 1 | $ | 144 | $ | 168 | $ | 5 | $ | 173 | |||||||||||
Collectively evaluated for impairment | 489 | 71 | 560 | 603 | 73 | 676 | |||||||||||||||||
Total allowance for loan losses | $ | 632 | $ | 72 | $ | 704 | $ | 771 | $ | 78 | $ | 849 | |||||||||||
Loans: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 702 | $ | 50 | $ | 752 | $ | 854 | $ | 46 | $ | 900 | |||||||||||
Collectively evaluated for impairment | 38,523 | 3,665 | 42,188 | 34,510 | 3,766 | 38,276 | |||||||||||||||||
PCI loans (a) | 64 | 8 | 72 | — | — | — | |||||||||||||||||
Total loans evaluated for impairment | $ | 39,289 | $ | 3,723 | $ | 43,012 | $ | 35,364 | $ | 3,812 | $ | 39,176 |
Three Months Ended March 31, | |||||||
(in millions) | 2012 | 2011 | |||||
Balance at beginning of period | $ | 26 | $ | 35 | |||
Provision for credit losses on lending-related commitments | (1 | ) | (3 | ) | |||
Balance at end of period | $ | 25 | $ | 32 | |||
Unfunded lending-related commitments sold | $ | — | $ | 2 |
Recorded Investment In: | |||||||||||||||||||
(in millions) | Impaired Loans with No Related Allowance | Impaired Loans with Related Allowance | Total Impaired Loans | Unpaid Principal Balance | Related Allowance for Loan Losses | ||||||||||||||
March 31, 2012 | |||||||||||||||||||
Business loans: | |||||||||||||||||||
Commercial | $ | — | $ | 227 | $ | 227 | $ | 345 | $ | 51 | |||||||||
Real estate construction: | |||||||||||||||||||
Commercial Real Estate business line (a) | — | 68 | 68 | 101 | 10 | ||||||||||||||
Other business lines (b) | — | 5 | 5 | 7 | 2 | ||||||||||||||
Total real estate construction | — | 73 | 73 | 108 | 12 | ||||||||||||||
Commercial mortgage: | |||||||||||||||||||
Commercial Real Estate business line (a) | 3 | 175 | 178 | 240 | 36 | ||||||||||||||
Other business lines (b) | 5 | 212 | 217 | 313 | 42 | ||||||||||||||
Total commercial mortgage | 8 | 387 | 395 | 553 | 78 | ||||||||||||||
Lease financing | — | 3 | 3 | 6 | 1 | ||||||||||||||
International | — | 4 | 4 | 4 | 1 | ||||||||||||||
Total business loans | 8 | 694 | 702 | 1,016 | 143 | ||||||||||||||
Retail loans: | |||||||||||||||||||
Residential mortgage | 16 | 26 | 42 | 45 | 1 | ||||||||||||||
Consumer: | |||||||||||||||||||
Home equity | 3 | 2 | 5 | 6 | — | ||||||||||||||
Other consumer | — | 3 | 3 | 9 | — | ||||||||||||||
Total consumer | 3 | 5 | 8 | 15 | — | ||||||||||||||
Total retail loans | 19 | 31 | 50 | 60 | 1 | ||||||||||||||
Total individually evaluated impaired loans | $ | 27 | $ | 725 | $ | 752 | $ | 1,076 | $ | 144 | |||||||||
December 31, 2011 | |||||||||||||||||||
Business loans: | |||||||||||||||||||
Commercial | $ | 2 | $ | 244 | $ | 246 | $ | 348 | $ | 57 | |||||||||
Real estate construction: | |||||||||||||||||||
Commercial Real Estate business line (a) | — | 102 | 102 | 146 | 18 | ||||||||||||||
Other business lines (b) | — | 5 | 5 | 7 | 1 | ||||||||||||||
Total real estate construction | — | 107 | 107 | 153 | 19 | ||||||||||||||
Commercial mortgage: | |||||||||||||||||||
Commercial Real Estate business line (a) | — | 148 | 148 | 198 | 34 | ||||||||||||||
Other business lines (b) | 6 | 201 | 207 | 299 | 36 | ||||||||||||||
Total commercial mortgage | 6 | 349 | 355 | 497 | 70 | ||||||||||||||
Lease financing | — | 3 | 3 | 6 | 1 | ||||||||||||||
International | — | 8 | 8 | 10 | 2 | ||||||||||||||
Total business loans | 8 | 711 | 719 | 1,014 | 149 | ||||||||||||||
Retail loans: | |||||||||||||||||||
Residential mortgage | 16 | 30 | 46 | 51 | 3 | ||||||||||||||
Consumer: | |||||||||||||||||||
Home equity | — | 1 | 1 | 1 | — | ||||||||||||||
Other consumer | — | 5 | 5 | 12 | 1 | ||||||||||||||
Total consumer | — | 6 | 6 | 13 | 1 | ||||||||||||||
Total retail loans | 16 | 36 | 52 | 64 | 4 | ||||||||||||||
Total individually evaluated impaired loans | $ | 24 | $ | 747 | $ | 771 | $ | 1,078 | $ | 153 |
(a) | Primarily loans to real estate investors and developers. |
(b) | Primarily loans secured by owner-occupied real estate. |
2012 | 2011 | ||||||||||||||
(in millions) | Average Impaired Loans for the Period | Interest Income Recognized for the Period | Average Impaired Loans for the Period | Interest Income Recognized for the Period | |||||||||||
Three Months Ended March 31 | |||||||||||||||
Business loans: | |||||||||||||||
Commercial | $ | 236 | $ | 1 | $ | 231 | $ | 1 | |||||||
Real estate construction: | |||||||||||||||
Commercial Real Estate business line (a) | 85 | — | 219 | — | |||||||||||
Other business lines (b) | 5 | — | — | — | |||||||||||
Total real estate construction | 90 | — | 219 | — | |||||||||||
Commercial mortgage: | |||||||||||||||
Commercial Real Estate business line (a) | 163 | — | 189 | — | |||||||||||
Other business lines (b) | 212 | 1 | 241 | 1 | |||||||||||
Total commercial mortgage | 375 | 1 | 430 | 1 | |||||||||||
Lease financing | 3 | — | 7 | — | |||||||||||
International | 6 | — | 3 | — | |||||||||||
Total business loans | 710 | 2 | 890 | 2 | |||||||||||
Retail loans: | |||||||||||||||
Residential mortgage | 44 | — | 39 | — | |||||||||||
Consumer loans: | |||||||||||||||
Home equity | 3 | — | — | — | |||||||||||
Other consumer | 4 | — | 8 | — | |||||||||||
Total consumer | 7 | — | 8 | — | |||||||||||
Total retail loans | 51 | — | 47 | — | |||||||||||
Total individually evaluated impaired loans | $ | 761 | $ | 2 | $ | 937 | $ | 2 |
(a) | Primarily loans to real estate investors and developers. |
(b) | Primarily loans secured by owner-occupied real estate. |
Type of Modification | |||||||||||||||
(in millions) | Principal Deferrals (a) | Interest Rate Reductions | AB Note Restructures (b) | Total Modifications | |||||||||||
Three Months Ended March 31, 2012 | |||||||||||||||
Business loans: | |||||||||||||||
Commercial | $ | 21 | $ | — | $ | — | $ | 21 | |||||||
Commercial mortgage: | |||||||||||||||
Commercial Real Estate business line (c) | 24 | — | 6 | 30 | |||||||||||
Other business lines (d) | 9 | — | — | 9 | |||||||||||
Total commercial mortgage | 33 | — | 6 | 39 | |||||||||||
Total business loans | 54 | — | 6 | 60 | |||||||||||
Total loans | $ | 54 | $ | — | $ | 6 | $ | 60 | |||||||
Three Months Ended March 31, 2011 | |||||||||||||||
Business loans: | |||||||||||||||
Commercial | $ | 32 | $ | 8 | $ | — | $ | 40 | |||||||
Commercial mortgage: | |||||||||||||||
Other business lines (d) | 14 | 5 | — | 19 | |||||||||||
Total commercial mortgage | 14 | 5 | — | 19 | |||||||||||
Total business loans | 46 | 13 | — | 59 | |||||||||||
Retail loans: | |||||||||||||||
Residential mortgage | — | 2 | — | 2 | |||||||||||
Total retail loans | — | 2 | — | 2 | |||||||||||
Total loans | $ | 46 | $ | 15 | $ | — | $ | 61 |
(a) | Primarily represents loan balances where terms were extended 90 days or more at or above contractual interest rates. |
(b) | Loan restructurings whereby the original loan is restructured into two notes: an "A" note, which generally reflects the portion of the modified loan which is expected to be collected; and a "B" note, which is either fully charged off or exchanged for an equity interest. |
(c) | Primarily loans to real estate investors and developers. |
(d) | Primarily loans secured by owner-occupied real estate. |
(in millions) | March 31, 2012 | December 31, 2011 | |||||
Acquired PCI loans: | |||||||
Carrying amount | $ | 72 | $ | 87 | |||
Outstanding balance | 210 | 234 |
(in millions) | Three Months Ended March 31, 2012 | ||
Balance at December 31, 2011 | $ | 25 | |
Accretion | (5 | ) | |
Balance at March 31, 2012 | $ | 20 |
March 31, 2012 | December 31, 2011 | ||||||||||||||||||||||
Fair Value (a) | Fair Value (a) | ||||||||||||||||||||||
(in millions) | Notional/ Contract Amount (b) | Asset Derivatives | Liability Derivatives | Notional/ Contract Amount (b) | Asset Derivatives | Liability Derivatives | |||||||||||||||||
Risk management purposes | |||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Swaps - fair value - receive fixed/pay floating | $ | 1,450 | $ | 299 | $ | — | $ | 1,450 | $ | 317 | $ | — | |||||||||||
Derivatives used as economic hedges | |||||||||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||
Spot, forwards and swaps | 301 | 1 | — | 229 | 1 | 1 | |||||||||||||||||
Total risk management purposes | $ | 1,751 | $ | 300 | $ | — | $ | 1,679 | $ | 318 | $ | 1 | |||||||||||
Customer-initiated and other activities | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Caps and floors written | $ | 399 | $ | — | $ | 3 | $ | 421 | $ | — | $ | 3 | |||||||||||
Caps and floors purchased | 399 | 3 | — | 421 | 3 | — | |||||||||||||||||
Swaps | 10,204 | 262 | 232 | 9,699 | 282 | 250 | |||||||||||||||||
Total interest rate contracts | 11,002 | 265 | 235 | 10,541 | 285 | 253 | |||||||||||||||||
Energy contracts: | |||||||||||||||||||||||
Caps and floors written | 1,563 | — | 108 | 1,141 | — | 86 | |||||||||||||||||
Caps and floors purchased | 1,563 | 108 | — | 1,141 | 86 | — | |||||||||||||||||
Swaps | 893 | 44 | 43 | 379 | 29 | 29 | |||||||||||||||||
Total energy contracts | 4,019 | 152 | 151 | 2,661 | 115 | 115 | |||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||
Spot, forwards, options and swaps | 2,547 | 32 | 28 | 2,842 | 39 | 34 | |||||||||||||||||
Total customer-initiated and other activities | $ | 17,568 | $ | 449 | $ | 414 | $ | 16,044 | $ | 439 | $ | 402 | |||||||||||
Total derivatives | $ | 19,319 | $ | 749 | $ | 414 | $ | 17,723 | $ | 757 | $ | 403 |
(a) | Asset derivatives are included in “accrued income and other assets” and liability derivatives are included in “accrued expenses and other liabilities” on the consolidated balance sheets. Included in the fair value of derivative assets and liabilities are credit valuation adjustments reflecting counterparty credit risk and credit risk of the Corporation. The fair value of derivative assets included credit valuation adjustments for counterparty credit risk totaling $6 million and $4 million at March 31, 2012 and December 31, 2011, respectively. |
(b) | Notional or contract amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets. |
Three Months Ended March 31, | |||||||
(in millions) | 2012 | 2011 | |||||
Interest rate swaps | $ | — | $ | 1 |
(in millions) | Three Months Ended March 31, 2011 | ||
Interest rate swaps | |||
Gain recognized in OCI (effective portion) | $ | (2 | ) |
Gain recognized in other noninterest income (ineffective portion) | 1 | ||
Gain reclassified from accumulated OCI into interest and fees on loans (effective portion) | 1 |
Weighted Average | ||||||||||||
(dollar amounts in millions) | Notional Amount | Remaining Maturity (in years) | Receive Rate | Pay Rate (a) | ||||||||
March 31, 2012 | ||||||||||||
Swaps - fair value - receive fixed/pay floating rate | ||||||||||||
Medium- and long-term debt designation | $ | 1,450 | 5.2 | 5.45 | % | 0.72 | % | |||||
December 31, 2011 | ||||||||||||
Swaps - fair value - receive fixed/pay floating rate | ||||||||||||
Medium- and long-term debt designation | 1,450 | 5.4 | 5.45 | % | 0.60 | % |
(a) | Variable rates paid on receive fixed swaps are based on prime and six-month LIBOR rates in effect at March 31, 2012 and December 31, 2011. |
Three Months Ended March 31, | ||||||||||
(in millions) | Location of Gain | 2012 | 2011 | |||||||
Interest rate contracts | Other noninterest income | $ | 2 | $ | 6 | |||||
Energy contracts | Other noninterest income | 1 | — | |||||||
Foreign exchange contracts | Foreign exchange income | 9 | 8 | |||||||
Total | $ | 12 | $ | 14 |
(in millions) | March 31, 2012 | December 31, 2011 | |||||
Unused commitments to extend credit: | |||||||
Commercial and other | $ | 26,016 | $ | 24,819 | |||
Bankcard, revolving check credit and home equity loan commitments | 1,636 | 1,612 | |||||
Total unused commitments to extend credit | $ | 27,652 | $ | 26,431 | |||
Standby letters of credit | $ | 5,246 | $ | 5,325 | |||
Commercial letters of credit | 122 | 132 | |||||
Other credit-related financial instruments | — | 6 |
(dollar amounts in millions) | March 31, 2012 | December 31, 2011 | |||||
Total watch list standby and commercial letters of credit | $ | 200 | $ | 195 | |||
As a percentage of total outstanding standby and commercial letters of credit | 3.7 | % | 3.6 | % |
Three Months Ended March 31, | |||||||
(in millions) | 2012 | 2011 | |||||
Other noninterest income | $ | (14 | ) | $ | (13 | ) | |
Provision (benefit) for income taxes (a) | (14 | ) | (13 | ) |
(a) | Income tax credits from low income housing tax credit/historic rehabilitation tax credit partnerships. |
(in millions) | March 31, 2012 | December 31, 2011 | |||||
Parent company | |||||||
Subordinated notes: | |||||||
4.80% subordinated notes due 2015 | $ | 336 | $ | 338 | |||
Floating-rate subordinated notes related to trust preferred securities due 2012 | 26 | 30 | |||||
Total subordinated notes | 362 | 368 | |||||
Medium-term notes: | |||||||
3.00% notes due 2015 | 298 | 298 | |||||
Total parent company | 660 | 666 | |||||
Subsidiaries | |||||||
Subordinated notes: | |||||||
7.375% subordinated notes due 2013 | 53 | 53 | |||||
5.70% subordinated notes due 2014 | 274 | 276 | |||||
5.75% subordinated notes due 2016 | 695 | 699 | |||||
5.20% subordinated notes due 2017 | 590 | 595 | |||||
Floating-rate based on LIBOR index subordinated notes due 2018 | 26 | 26 | |||||
8.375% subordinated notes due 2024 | 189 | 189 | |||||
7.875% subordinated notes due 2026 | 235 | 243 | |||||
Total subordinated notes | 2,062 | 2,081 | |||||
Medium-term notes: | |||||||
Floating-rate based on LIBOR indices due 2012 | 158 | 158 | |||||
Federal Home Loan Bank advances: | |||||||
Floating-rate based on LIBOR indices due 2013 to 2014 | 2,000 | 2,000 | |||||
Other notes: | |||||||
6.0% - 6.4% fixed-rate notes due 2020 | 39 | 39 | |||||
Total subsidiaries | 4,259 | 4,278 | |||||
Total medium- and long-term debt | $ | 4,919 | $ | 4,944 |
Three Months Ended March 31, | |||||||
(in millions) | 2012 | 2011 | |||||
Accumulated net unrealized gains on investment securities available-for-sale: | |||||||
Balance at beginning of period, net of tax | $ | 129 | $ | 14 | |||
Net unrealized holding gains (losses) arising during the period | 35 | (2 | ) | ||||
Less: Reclassification adjustment for net gains included in net income | 5 | 3 | |||||
Change in net unrealized gains before income taxes | 30 | (5 | ) | ||||
Less: Provision (benefit) for income taxes | 11 | (1 | ) | ||||
Change in net unrealized gains on investment securities available-for-sale, net of tax | 19 | (4 | ) | ||||
Balance at end of period, net of tax | $ | 148 | $ | 10 | |||
Accumulated net gains on cash flow hedges: | |||||||
Balance at beginning of period, net of tax | $ | — | $ | 2 | |||
Net cash flow hedge losses arising during the period | — | (2 | ) | ||||
Less: Reclassification adjustment for net gains included in net income | — | 1 | |||||
Change in net cash flow hedge gains (losses) before income taxes | — | (3 | ) | ||||
Less: Provision (benefit) for income taxes | — | (1 | ) | ||||
Change in net cash flow hedge gains, net of tax | — | (2 | ) | ||||
Balance at end of period, net of tax | $ | — | $ | — | |||
Accumulated defined benefit pension and other postretirement plans adjustment: | |||||||
Balance at beginning of period, net of tax | $ | (485 | ) | $ | (405 | ) | |
Net defined benefit pension and other postretirement adjustment arising during the period | — | 8 | |||||
Less: Adjustment for amounts recognized as components of net periodic benefit cost during the period | (17 | ) | (12 | ) | |||
Change in defined benefit pension and other postretirement plans adjustment before income taxes | 17 | 20 | |||||
Less: Provision for income taxes | 6 | 7 | |||||
Change in defined benefit pension and other postretirement plans adjustment, net of tax | 11 | 13 | |||||
Balance at end of period, net of tax | $ | (474 | ) | $ | (392 | ) | |
Total accumulated other comprehensive loss at end of period, net of tax | $ | (326 | ) | $ | (382 | ) |
Three Months Ended March 31, | |||||||
(in millions, except per share data) | 2012 | 2011 | |||||
Basic and diluted | |||||||
Net income | $ | 130 | $ | 103 | |||
Less: | |||||||
Income allocated to participating securities | 1 | 1 | |||||
Net income attributable to common shares | $ | 129 | $ | 102 | |||
Basic average common shares | 195 | 175 | |||||
Basic net income per common share | $ | 0.66 | $ | 0.58 | |||
Basic average common shares | 195 | 175 | |||||
Dilutive common stock equivalents: | |||||||
Net effect of the assumed exercise of stock options | 1 | 1 | |||||
Net effect of the assumed exercise of warrants | — | 2 | |||||
Diluted average common shares | 196 | 178 | |||||
Diluted net income per common share | $ | 0.66 | $ | 0.57 |
Three Months Ended March 31, | |||
(shares in millions) | 2012 | 2011 | |
Average outstanding options | 17.6 | 15.5 | |
Range of exercise prices | $30.77 - $64.50 | $39.10 - $64.50 | |
Average outstanding warrants | 0.6 | ||
Exercise price | $30.36 |
Qualified Defined Benefit Pension Plan | Three Months Ended March 31, | ||||||
(in millions) | 2012 | 2011 | |||||
Service cost | $ | 8 | $ | 8 | |||
Interest cost | 19 | 19 | |||||
Expected return on plan assets | (28 | ) | (29 | ) | |||
Amortization of prior service cost | 1 | 1 | |||||
Amortization of net loss | 13 | 9 | |||||
Net periodic defined benefit cost | $ | 13 | $ | 8 |
Non-Qualified Defined Benefit Pension Plan | Three Months Ended March 31, | ||||||
(in millions) | 2012 | 2011 | |||||
Service cost | $ | 1 | $ | 1 | |||
Interest cost | 2 | 2 | |||||
Amortization of net loss | 2 | 1 | |||||
Net periodic defined benefit cost | $ | 5 | $ | 4 |
Postretirement Benefit Plan | Three Months Ended March 31, | ||||||
(in millions) | 2012 | 2011 | |||||
Interest cost | $ | 1 | $ | 1 | |||
Expected return on plan assets | (1 | ) | (1 | ) | |||
Amortization of transition obligation | 1 | 1 | |||||
Net periodic postretirement benefit cost | $ | 1 | $ | 1 |
(dollar amounts in millions) | Business Bank | Retail Bank | Wealth Management | Finance | Other | Total | ||||||||||||||||||
Three Months Ended March 31, 2012 | ||||||||||||||||||||||||
Earnings summary: | ||||||||||||||||||||||||
Net interest income (expense) (FTE) | $ | 379 | $ | 167 | $ | 47 | $ | (156 | ) | $ | 7 | $ | 444 | |||||||||||
Provision for loan losses | 1 | 4 | 14 | — | 4 | 23 | ||||||||||||||||||
Noninterest income | 81 | 42 | 65 | 13 | 5 | 206 | ||||||||||||||||||
Noninterest expenses | 159 | 184 | 81 | 3 | 21 | 448 | ||||||||||||||||||
Provision (benefit) for income taxes (FTE) | 94 | 7 | 6 | (54 | ) | (4 | ) | 49 | ||||||||||||||||
Net income (loss) | $ | 206 | $ | 14 | $ | 11 | $ | (92 | ) | $ | (9 | ) | $ | 130 | ||||||||||
Net credit-related charge-offs | $ | 28 | $ | 12 | $ | 5 | $ | — | $ | — | $ | 45 | ||||||||||||
Selected average balances: | ||||||||||||||||||||||||
Assets | $ | 33,184 | $ | 6,173 | $ | 4,636 | $ | 12,095 | $ | 5,525 | $ | 61,613 | ||||||||||||
Loans | 32,242 | 5,462 | 4,565 | — | — | 42,269 | ||||||||||||||||||
Deposits | 23,997 | 20,373 | 3,611 | 161 | 169 | 48,311 | ||||||||||||||||||
Statistical data: | ||||||||||||||||||||||||
Return on average assets (a) | 2.49 | % | 0.27 | % | 0.97 | % | N/M | N/M | 0.84 | % | ||||||||||||||
Efficiency ratio | 34.74 | 87.73 | 75.23 | N/M | N/M | 69.50 |
(dollar amounts in millions) | Business Bank | Retail Bank | Wealth Management | Finance | Other | Total | ||||||||||||||||||
Three Months Ended March 31, 2011 | ||||||||||||||||||||||||
Earnings summary: | ||||||||||||||||||||||||
Net interest income (expense) (FTE) | $ | 341 | $ | 139 | $ | 44 | $ | (135 | ) | $ | 7 | $ | 396 | |||||||||||
Provision for loan losses | 18 | 23 | 8 | — | — | 49 | ||||||||||||||||||
Noninterest income | 77 | 42 | 64 | 18 | 6 | 207 | ||||||||||||||||||
Noninterest expenses | 160 | 162 | 78 | 2 | 13 | 415 | ||||||||||||||||||
Provision (benefit) for income taxes (FTE) | 73 | (2 | ) | 8 | (44 | ) | 1 | 36 | ||||||||||||||||
Net income (loss) | $ | 167 | $ | (2 | ) | $ | 14 | $ | (75 | ) | $ | (1 | ) | $ | 103 | |||||||||
Net credit-related charge-offs | $ | 73 | $ | 23 | $ | 5 | $ | — | $ | — | $ | 101 | ||||||||||||
Selected average balances: | ||||||||||||||||||||||||
Assets | $ | 30,092 | $ | 5,558 | $ | 4,809 | $ | 9,370 | $ | 3,946 | $ | 53,775 | ||||||||||||
Loans | 29,638 | 5,106 | 4,807 | — | — | 39,551 | ||||||||||||||||||
Deposits | 20,084 | 17,360 | 2,800 | 249 | 105 | 40,598 | ||||||||||||||||||
Statistical data: | ||||||||||||||||||||||||
Return on average assets (a) | 2.22 | % | (0.05 | )% | 1.14 | % | N/M | N/M | 0.77 | % | ||||||||||||||
Efficiency ratio | 38.14 | 89.19 | 74.38 | N/M | N/M | 69.05 |
(a) | Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. |
(dollar amounts in millions) | Midwest | Western | Texas | Florida | Other Markets | International | Finance & Other | Total | ||||||||||||||||||||||||
Three Months Ended March 31, 2012 | ||||||||||||||||||||||||||||||||
Earnings summary: | ||||||||||||||||||||||||||||||||
Net interest income (expense) (FTE) | $ | 198 | $ | 171 | $ | 151 | $ | 10 | $ | 45 | $ | 18 | $ | (149 | ) | $ | 444 | |||||||||||||||
Provision for loan losses | 10 | (7 | ) | 14 | 6 | (3 | ) | (1 | ) | 4 | 23 | |||||||||||||||||||||
Noninterest income | 98 | 33 | 31 | 4 | 14 | 8 | 18 | 206 | ||||||||||||||||||||||||
Noninterest expenses | 183 | 107 | 92 | 9 | 24 | 9 | 24 | 448 | ||||||||||||||||||||||||
Provision (benefit) for income taxes (FTE) | 35 | 39 | 27 | — | — | 6 | (58 | ) | 49 | |||||||||||||||||||||||
Net income (loss) | $ | 68 | $ | 65 | $ | 49 | $ | (1 | ) | $ | 38 | $ | 12 | $ | (101 | ) | $ | 130 | ||||||||||||||
Net credit-related charge-offs | $ | 18 | $ | 11 | $ | 7 | $ | 2 | $ | 6 | $ | 1 | $ | — | $ | 45 | ||||||||||||||||
Selected average balances: | ||||||||||||||||||||||||||||||||
Assets | $ | 14,095 | $ | 12,623 | $ | 10,082 | $ | 1,416 | $ | 4,021 | $ | 1,756 | $ | 17,620 | $ | 61,613 | ||||||||||||||||
Loans | 13,829 | 12,383 | 9,295 | 1,418 | 3,693 | 1,651 | — | 42,269 | ||||||||||||||||||||||||
Deposits | 19,415 | 13,897 | 10,229 | 424 | 2,628 | 1,388 | 330 | 48,311 | ||||||||||||||||||||||||
Statistical data: | ||||||||||||||||||||||||||||||||
Return on average assets (a) | 1.33 | % | 1.75 | % | 1.72 | % | (0.21 | )% | 3.77 | % | 2.73 | % | N/M | 0.84 | % | |||||||||||||||||
Efficiency ratio | 61.78 | 52.50 | 50.33 | 68.94 | 44.62 | 33.02 | N/M | 69.50 |
(dollar amounts in millions) | Midwest | Western | Texas | Florida | Other Markets | International | Finance & Other | Total | ||||||||||||||||||||||||
Three Months Ended March 31, 2011 | ||||||||||||||||||||||||||||||||
Earnings summary: | ||||||||||||||||||||||||||||||||
Net interest income (expense) (FTE) | $ | 203 | $ | 164 | $ | 87 | $ | 11 | $ | 41 | $ | 18 | $ | (128 | ) | $ | 396 | |||||||||||||||
Provision for loan losses | 34 | 11 | 4 | 8 | (7 | ) | (1 | ) | — | 49 | ||||||||||||||||||||||
Noninterest income | 100 | 37 | 23 | 4 | 11 | 8 | 24 | 207 | ||||||||||||||||||||||||
Noninterest expenses | 188 | 109 | 61 | 12 | 21 | 9 | 15 | 415 | ||||||||||||||||||||||||
Provision (benefit) for income taxes (FTE) | 28 | 30 | 16 | (1 | ) | — | 6 | (43 | ) | 36 | ||||||||||||||||||||||
Net income (loss) | $ | 53 | $ | 51 | $ | 29 | $ | (4 | ) | $ | 38 | $ | 12 | $ | (76 | ) | $ | 103 | ||||||||||||||
Net credit-related charge-offs | $ | 46 | $ | 26 | $ | 8 | $ | 8 | $ | 9 | $ | 4 | $ | — | $ | 101 | ||||||||||||||||
Selected average balances: | ||||||||||||||||||||||||||||||||
Assets | $ | 14,303 | $ | 12,590 | $ | 7,031 | $ | 1,553 | $ | 3,247 | $ | 1,735 | $ | 13,316 | $ | 53,775 | ||||||||||||||||
Loans | 14,104 | 12,383 | 6,824 | 1,580 | 2,960 | 1,700 | — | 39,551 | ||||||||||||||||||||||||
Deposits | 18,230 | 12,235 | 5,786 | 367 | 2,298 | 1,328 | 354 | 40,598 | ||||||||||||||||||||||||
Statistical data: | ||||||||||||||||||||||||||||||||
Return on average assets (a) | 1.07 | % | 1.54 | % | 1.65 | % | (0.93 | )% | 4.74 | % | 2.79 | % | N/M | 0.77 | % | |||||||||||||||||
Efficiency ratio | 62.11 | 54.34 | 55.39 | 80.08 | 41.67 | 34.62 | N/M | 69.05 |
(a) | Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. |
Total Incurred March 31, 2012 | |||||||||||
(in millions) | Total Expected Per Plan | Three Months Ended | Inception To-Date | ||||||||
Facilities and contract termination charges | $ | 53 | $ | (2 | ) | $ | 14 | ||||
Systems integration and related charges | 28 | 1 | 27 | ||||||||
Severance and other employee-related charges | 26 | 1 | 26 | ||||||||
Transaction costs | 8 | — | 8 | ||||||||
Total merger and restructuring charges | $ | 115 | $ | — | $ | 75 |
(in millions) | Three Months Ended March 31, 2012 | ||
Balance at December 31, 2011 | $ | 26 | |
Merger and restructuring charges | 6 | ||
Payments | (11 | ) | |
Other adjustments (a) | (6 | ) | |
Balance at March 31, 2012 | $ | 15 |
(a) | Other adjustments include revisions to the timing or amount of estimated net costs related to the exit of lease facilities included in facilities and contract termination charges. |
• | Average loans increasing moderately. |
• | Net interest income increasing moderately. |
• | Net credit-related charge-offs and provision for credit losses declining. |
• | Noninterest income relatively stable. |
• | Noninterest expenses relatively stable. |
• | Effective tax rate of approximately 27 percent. |
Three Months Ended | |||||||||||||||||||||
March 31, 2012 | March 31, 2011 | ||||||||||||||||||||
(dollar amounts in millions) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||
Commercial loans | $ | 24,736 | $ | 219 | 3.56 | % | $ | 21,496 | $ | 201 | 3.76 | % | |||||||||
Real estate construction loans | 1,453 | 17 | 4.58 | 2,179 | 19 | 3.51 | |||||||||||||||
Commercial mortgage loans | 10,202 | 119 | 4.73 | 9,790 | 95 | 3.95 | |||||||||||||||
Lease financing | 897 | 8 | 3.41 | 987 | 9 | 3.62 | |||||||||||||||
International loans | 1,205 | 11 | 3.76 | 1,219 | 12 | 3.87 | |||||||||||||||
Residential mortgage loans | 1,519 | 18 | 4.77 | 1,599 | 21 | 5.24 | |||||||||||||||
Consumer loans | 2,257 | 20 | 3.49 | 2,281 | 19 | 3.42 | |||||||||||||||
Total loans (a) | 42,269 | 412 | 3.92 | 39,551 | 376 | 3.85 | |||||||||||||||
Auction-rate securities available-for-sale | 352 | 1 | 0.63 | 554 | 1 | 0.88 | |||||||||||||||
Other investment securities available-for-sale | 9,537 | 63 | 2.73 | 6,757 | 56 | 3.37 | |||||||||||||||
Total investment securities available-for-sale | 9,889 | 64 | 2.65 | 7,311 | 57 | 3.17 | |||||||||||||||
Federal funds sold | 9 | — | 0.29 | 3 | — | 0.32 | |||||||||||||||
Interest-bearing deposits with banks (b) | 3,884 | 2 | 0.26 | 2,354 | 1 | 0.26 | |||||||||||||||
Other short-term investments | 135 | 1 | 1.97 | 128 | 1 | 2.68 | |||||||||||||||
Total earning assets | 56,186 | 479 | 3.44 | 49,347 | 435 | 3.57 | |||||||||||||||
Cash and due from banks | 999 | 884 | |||||||||||||||||||
Allowance for loan losses | (737 | ) | (908 | ) | |||||||||||||||||
Accrued income and other assets | 5,165 | 4,452 | |||||||||||||||||||
Total assets | $ | 61,613 | $ | 53,775 | |||||||||||||||||
Money market and NOW deposits | $ | 20,795 | 10 | 0.19 | $ | 17,797 | 12 | 0.26 | |||||||||||||
Savings deposits | 1,543 | — | 0.08 | 1,421 | — | 0.09 | |||||||||||||||
Customer certificates of deposit | 5,978 | 8 | 0.57 | 5,509 | 10 | 0.76 | |||||||||||||||
Foreign office time deposits | 358 | 1 | 0.57 | 412 | — | 0.49 | |||||||||||||||
Total interest-bearing deposits | 28,674 | 19 | 0.26 | 25,139 | 22 | 0.37 | |||||||||||||||
Short-term borrowings | 78 | — | 0.11 | 94 | — | 0.31 | |||||||||||||||
Medium- and long-term debt | 4,940 | 16 | 1.34 | 6,128 | 17 | 1.10 | |||||||||||||||
Total interest-bearing sources | 33,692 | 35 | 0.42 | 31,361 | 39 | 0.51 | |||||||||||||||
Noninterest-bearing deposits | 19,637 | 15,459 | |||||||||||||||||||
Accrued expenses and other liabilities | 1,345 | 1,120 | |||||||||||||||||||
Total shareholders’ equity | 6,939 | 5,835 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 61,613 | $ | 53,775 | |||||||||||||||||
Net interest income/rate spread (FTE) | $ | 444 | 3.02 | $ | 396 | 3.06 | |||||||||||||||
FTE adjustment | $ | 1 | $ | 1 | |||||||||||||||||
Impact of net noninterest-bearing sources of funds | 0.17 | 0.19 | |||||||||||||||||||
Net interest margin (as a percentage of average earning assets (FTE) (a) (b) | 3.19 | % | 3.25 | % |
(a) | Accretion of the purchase discount on the acquired loan portfolio of $25 million increased the net interest margin by 18 basis points in the three months ended March 31, 2012. |
(b) | Excess liquidity, represented by average balances deposited with the Federal Reserve Bank, reduced the net interest margin by 21 basis points and 14 basis points in the three months ended March 31, 2012 and 2011, respectively. |
Three Months Ended | |||||||||||
March 31, 2012/March 31, 2011 | |||||||||||
(in millions) | Increase (Decrease) Due to Rate | Increase (Decrease) Due to Volume (a) | Net Increase (Decrease) | ||||||||
Loans | $ | 13 | $ | 23 | $ | 36 | |||||
Investment securities available-for-sale | (12 | ) | 19 | 7 | |||||||
Interest-bearing deposits with banks | — | 1 | 1 | ||||||||
Total earning assets | 1 | 43 | 44 | ||||||||
Interest-bearing deposits | (5 | ) | 2 | (3 | ) | ||||||
Medium- and long-term debt | 3 | (4 | ) | (1 | ) | ||||||
Total interest-bearing sources | (2 | ) | (2 | ) | (4 | ) | |||||
Net interest income/rate spread (FTE) | $ | 3 | $ | 45 | $ | 48 |
(a) | Rate/volume variances are allocated to variances due to volume. |
Three Months Ended March 31, | |||||||||||||
(dollar amounts in millions) | 2012 | 2011 | |||||||||||
Business Bank | $ | 206 | 89 | % | $ | 167 | 93 | % | |||||
Retail Bank | 14 | 6 | (2 | ) | (1 | ) | |||||||
Wealth Management | 11 | 5 | 14 | 8 | |||||||||
231 | 100 | % | 179 | 100 | % | ||||||||
Finance | (92 | ) | (75 | ) | |||||||||
Other (a) | (9 | ) | (1 | ) | |||||||||
Total | $ | 130 | $ | 103 |
(a) | Includes items not directly associated with the three major business segments or the Finance Division. |
Three Months Ended March 31, | |||||||||||||
(dollar amounts in millions) | 2012 | 2011 | |||||||||||
Midwest | $ | 68 | 30 | % | $ | 53 | 29 | % | |||||
Western | 65 | 28 | 51 | 28 | |||||||||
Texas | 49 | 21 | 29 | 16 | |||||||||
Florida | (1 | ) | — | (4 | ) | (2 | ) | ||||||
Other Markets | 38 | 16 | 38 | 22 | |||||||||
International | 12 | 5 | 12 | 7 | |||||||||
231 | 100 | % | 179 | 100 | % | ||||||||
Finance & Other (a) | (101 | ) | (76 | ) | |||||||||
Total | $ | 130 | $ | 103 |
March 31, | |||||
2012 | 2011 | ||||
Midwest (Michigan) | 218 | 217 | |||
Texas | 142 | 95 | |||
Western: | |||||
California | 105 | 104 | |||
Arizona | 18 | 17 | |||
Total Western | 123 | 121 | |||
Florida | 11 | 11 | |||
International | 1 | 1 | |||
Total | 495 | 445 |
Three Months Ended | Percent Change | |||||||||||||
(dollar amounts in millions) | March 31, 2012 | December 31, 2011 | Change | |||||||||||
Average Loans By Business Line: | ||||||||||||||
Middle Market | $ | 12,040 | $ | 11,913 | $ | 127 | 1 | % | ||||||
Commercial Real Estate | 4,356 | 4,567 | (211 | ) | (5 | ) | ||||||||
Global Corporate Banking | 4,935 | 4,681 | 254 | 5 | ||||||||||
National Dealer Services | 3,800 | 3,393 | 407 | 12 | ||||||||||
Specialty Businesses (a) | 7,111 | 6,711 | 400 | 6 | ||||||||||
Total Business Bank | 32,242 | 31,265 | 977 | 3 | ||||||||||
Small Business | 3,750 | 3,791 | (41 | ) | (1 | ) | ||||||||
Personal Financial Services | 1,712 | 1,780 | (68 | ) | (4 | ) | ||||||||
Total Retail Bank | 5,462 | 5,571 | (109 | ) | (2 | ) | ||||||||
Private Banking | 4,565 | 4,618 | (53 | ) | (1 | ) | ||||||||
Total Wealth Management | 4,565 | 4,618 | (53 | ) | (1 | ) | ||||||||
Total loans | $ | 42,269 | $ | 41,454 | $ | 815 | 2 | % | ||||||
Average Loans By Geographic Market: | ||||||||||||||
Midwest | $ | 13,829 | $ | 13,725 | $ | 104 | 1 | % | ||||||
Western | 12,383 | 12,026 | 357 | 3 | ||||||||||
Texas | 9,295 | 8,952 | 343 | 4 | ||||||||||
Florida | 1,418 | 1,457 | (39 | ) | (3 | ) | ||||||||
Other Markets | 3,693 | 3,718 | (25 | ) | (1 | ) | ||||||||
International | 1,651 | 1,576 | 75 | 5 | ||||||||||
Total loans | $ | 42,269 | $ | 41,454 | $ | 815 | 2 | % |
(a) | Includes Entertainment, Energy, Leasing, Financial Services Division, Mortgage Banker Finance, and Technology and Life Sciences. |
(in millions) | |||||||
Balance at January 1, 2012 | $ | 6,868 | |||||
Retention of earnings (net income less cash dividends declared) | 110 | ||||||
Change in accumulated other comprehensive income (loss): | |||||||
Investment securities available-for-sale | $ | 19 | |||||
Defined benefit and other postretirement plans | 11 | ||||||
Total change in accumulated other comprehensive income (loss) | 30 | ||||||
Purchase of common stock | (36 | ) | |||||
Share-based compensation | 13 | ||||||
Balance at March 31, 2012 | $ | 6,985 |
(shares in thousands) | Total Number of Shares and Warrants Purchased as Part of Publicly Announced Repurchase Plans or Programs | Remaining Repurchase Authorization (a) | Total Number of Shares Purchased (b) | Average Price Paid Per Share | Average Price Paid Per Warrant (c) | |||||||||
January 2012 | 385 | 19,562 | 505 | 28.63 | — | |||||||||
February 2012 | 545 | 19,017 | 557 | 29.74 | — | |||||||||
March 2012 | 195 | 18,822 | 195 | 29.66 | — | |||||||||
Total first quarter 2012 | 1,125 | 18,822 | 1,257 | 29.28 | — |
(a) | Maximum number of shares and warrants that may yet be purchased under the publicly announced plans or programs. |
(b) | Includes approximately 132,000 shares purchased pursuant to deferred compensation plans and shares purchased from employees to pay for taxes related to restricted stock vesting under the terms of an employee share-based compensation plan. These transactions are not considered part of the Corporation's repurchase program. |
(c) | The Corporation made no repurchases of warrants under the repurchase program during the three months ended March 31, 2012. |
March 31, 2012 | December 31, 2011 | ||||||||||||
(dollar amounts in millions) | Capital | Ratio | Capital | Ratio | |||||||||
Tier 1 common (a) (b) | $ | 6,647 | 10.33 | % | $ | 6,557 | 10.37 | % | |||||
Tier 1 risk-based (4.00% - minimum) (b) | 6,672 | 10.37 | 6,582 | 10.41 | |||||||||
Total risk-based (8.00% - minimum) (b) | 9,081 | 14.11 | 9,015 | 14.25 | |||||||||
Leverage (3.00% - minimum) (b) | 6,672 | 10.97 | 6,582 | 10.92 | |||||||||
Tangible common equity (a) | 6,320 | 10.21 | 6,201 | 10.27 |
(a) | See Supplemental Financial Data section for reconcilements of non-GAAP financial measures. |
(b) | March 31, 2012 capital and ratios are estimated. |
(dollar amounts in millions) | March 31, 2012 | December 31, 2011 | |||||
Nonaccrual loans: | |||||||
Business loans: | |||||||
Commercial | $ | 205 | $ | 237 | |||
Real estate construction: | |||||||
Commercial Real Estate business line (a) | 77 | 93 | |||||
Other business lines (b) | 8 | 8 | |||||
Total real estate construction | 85 | 101 | |||||
Commercial mortgage: | |||||||
Commercial Real Estate business line (a) | 174 | 159 | |||||
Other business lines (b) | 275 | 268 | |||||
Total commercial mortgage | 449 | 427 | |||||
Lease financing | 4 | 5 | |||||
International | 4 | 8 | |||||
Total nonaccrual business loans | 747 | 778 | |||||
Retail loans: | |||||||
Residential mortgage | 69 | 71 | |||||
Consumer: | |||||||
Home equity | 9 | 5 | |||||
Other consumer | 5 | 6 | |||||
Total consumer | 14 | 11 | |||||
Total nonaccrual retail loans | 83 | 82 | |||||
Total nonaccrual loans | 830 | 860 | |||||
Reduced-rate loans | 26 | 27 | |||||
Total nonperforming loans | 856 | 887 | |||||
Foreclosed property | 67 | 94 | |||||
Total nonperforming assets | $ | 923 | $ | 981 | |||
Nonperforming loans as a percentage of total loans | 1.99 | % | 2.08 | % | |||
Nonperforming assets as a percentage of total loans and foreclosed property | 2.14 | 2.29 | |||||
Allowance for loan losses as a percentage of total nonperforming loans | 82 | 82 | |||||
Loans past due 90 days or more and still accruing | $ | 50 | $ | 58 | |||
Loans past due 90 days or more and still accruing as a percentage of total loans | 0.12 | % | 0.14 | % |
(a) | Primarily loans to real estate investors and developers. |
(b) | Primarily loans secured by owner-occupied real estate. |
Three Months Ended | |||||||
(in millions) | March 31, 2012 | December 31, 2011 | |||||
Balance at beginning of period | $ | 860 | $ | 929 | |||
Loans transferred to nonaccrual (a) | 69 | 99 | |||||
Nonaccrual business loan gross charge-offs (b) | (55 | ) | (76 | ) | |||
Nonaccrual business loans sold (c) | (7 | ) | (19 | ) | |||
Payments/Other (d) | (37 | ) | (73 | ) | |||
Balance at end of period | $ | 830 | $ | 860 | |||
(a) Based on an analysis of nonaccrual loans with book balances greater than $2 million. | |||||||
(b) Analysis of gross loan charge-offs: | |||||||
Nonaccrual business loans | $ | 55 | $ | 76 | |||
Performing watch list loans | — | — | |||||
Retail loans | 7 | 9 | |||||
Total gross loan charge-offs | $ | 62 | $ | 85 | |||
(c) Analysis of loans sold: | |||||||
Nonaccrual business loans | $ | 7 | $ | 19 | |||
Performing watch list loans | 11 | — | |||||
Total loans sold | $ | 18 | $ | 19 | |||
(d) Includes net changes related to nonaccrual loans with balances less than $2 million, payments on nonaccrual loans with book balances greater than $2 million, transfers of nonaccrual loans to foreclosed property and retail loan charge-offs. Excludes business loan gross charge-offs and nonaccrual business loans sold. |
(dollar amounts in millions) | Number of Borrowers | Balance | ||||
Under $2 million | 1,005 | $ | 279 | |||
$2 million - $5 million | 61 | 191 | ||||
$5 million - $10 million | 18 | 130 | ||||
$10 million - $25 million | 15 | 203 | ||||
Greater than $25 million | 1 | 27 | ||||
Total at March 31, 2012 | 1,100 | $ | 830 |
March 31, 2012 | Three Months Ended March 31, 2012 | |||||||||||||||||||
(dollar amounts in millions) | Nonaccrual Loans | Loans Transferred to Nonaccrual (a) | Net Loan Charge-Offs | |||||||||||||||||
Industry Category | ||||||||||||||||||||
Real Estate | $ | 320 | 39 | % | $ | 16 | 23 | % | $ | 16 | 38 | % | ||||||||
Services | 107 | 14 | 2 | 3 | 4 | 8 | ||||||||||||||
Residential Mortgage | 68 | 8 | 3 | 4 | 2 | 4 | ||||||||||||||
Holding & Other Invest. Co. | 68 | 8 | 16 | 23 | 2 | 4 | ||||||||||||||
Wholesale Trade | 51 | 6 | — | — | (1 | ) | (2 | ) | ||||||||||||
Hotels, etc. | 48 | 6 | 20 | 31 | 2 | 6 | ||||||||||||||
Retail Trade | 44 | 5 | 3 | 4 | 3 | 7 | ||||||||||||||
Natural Resources | 25 | 3 | — | — | 9 | 20 | ||||||||||||||
Manufacturing | 24 | 3 | 3 | 4 | — | 1 | ||||||||||||||
Utilities | 17 | 2 | — | — | — | — | ||||||||||||||
Information | 12 | 1 | — | — | — | — | ||||||||||||||
Contractors | 11 | 1 | — | — | (2 | ) | (5 | ) | ||||||||||||
Finance | 9 | 1 | — | — | 2 | 3 | ||||||||||||||
Entertainment | 7 | 1 | — | — | — | — | ||||||||||||||
Transportation & Warehousing | 7 | 1 | 6 | 8 | 2 | 4 | ||||||||||||||
Other (b) | 12 | 1 | — | — | 6 | 12 | ||||||||||||||
Total | $ | 830 | 100 | % | $ | 69 | 100 | % | $ | 45 | 100 | % |
(a) | Based on an analysis of nonaccrual loans with book balances greater than $2 million. |
(b) | Consumer, excluding residential mortgage and certain personal purpose nonaccrual loans and net charge-offs, are included in the “Other” category. |
(in millions) | March 31, 2012 | December 31, 2011 | |||||
Business loans: | |||||||
Commercial | $ | 4 | $ | 8 | |||
Real estate construction | 1 | 1 | |||||
Commercial mortgage | 25 | 32 | |||||
International | 3 | — | |||||
Total business loans | 33 | 41 | |||||
Retail loans: | |||||||
Residential mortgage | 8 | 6 | |||||
Consumer | 9 | 11 | |||||
Total retail loans | 17 | 17 | |||||
Total loans past due 90 days or more and still accruing | $ | 50 | $ | 58 |
(dollar amounts in millions) | March 31, 2012 | December 31, 2011 | |||||
Total watch list loans | $ | 4,206 | $ | 4,467 | |||
As a percentage of total loans | 9.8 | % | 10.5 | % |
(in millions) | March 31, 2012 | December 31, 2011 | |||||
Construction, land development and other land | $ | 31 | $ | 32 | |||
Single family residential properties | 12 | 14 | |||||
Other non-land, nonresidential properties | 24 | 48 | |||||
Total foreclosed property | $ | 67 | $ | 94 |
Three Months Ended | |||||||
(in millions) | March 31, 2012 | December 31, 2011 | |||||
Balance at beginning of period | $ | 94 | $ | 87 | |||
Acquired in foreclosure | 5 | 31 | |||||
Write-downs | (3 | ) | (3 | ) | |||
Foreclosed property sold (a) | (29 | ) | (21 | ) | |||
Balance at end of period | $ | 67 | $ | 94 | |||
(a) Net gain on foreclosed property sold | $ | 3 | $ | 2 |
(in millions) | March 31, 2012 | December 31, 2011 | |||||
Real estate construction loans: | |||||||
Commercial Real Estate business line (a) | $ | 1,055 | $ | 1,103 | |||
Other business lines (b) | 387 | 430 | |||||
Total real estate construction loans | $ | 1,442 | $ | 1,533 | |||
Commercial mortgage loans: | |||||||
Commercial Real Estate business line (a) | $ | 2,501 | $ | 2,507 | |||
Other business lines (b) | 7,578 | 7,757 | |||||
Total commercial mortgage loans | $ | 10,079 | $ | 10,264 |
(a) | Primarily loans to real estate investors and developers. |
(b) | Primarily loans secured by owner-occupied real estate. |
March 31, 2012 | |||||||||||||||||||||||||||||||||
Location of Property | December 31, 2011 | ||||||||||||||||||||||||||||||||
(dollar amounts in millions) Project Type: | Western | Michigan | Texas | Florida | Other Markets | Total | % of Total | Total | % of Total | ||||||||||||||||||||||||
Real estate construction loans: | |||||||||||||||||||||||||||||||||
Commercial Real Estate business line: | |||||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Single family | $ | 74 | $ | 8 | $ | 29 | $ | 4 | $ | 7 | $ | 122 | 11 | % | $ | 114 | 10 | % | |||||||||||||||
Land development | 17 | 6 | 23 | — | 23 | 69 | 7 | 76 | 7 | ||||||||||||||||||||||||
Total residential | 91 | 14 | 52 | 4 | 30 | 191 | 18 | 190 | 17 | ||||||||||||||||||||||||
Other construction: | |||||||||||||||||||||||||||||||||
Multi-family | 83 | — | 68 | 37 | 11 | 199 | 19 | 248 | 22 | ||||||||||||||||||||||||
Retail | 103 | 40 | 85 | 11 | 29 | 268 | 25 | 264 | 24 | ||||||||||||||||||||||||
Multi-use | 65 | — | 52 | — | — | 117 | 11 | 118 | 11 | ||||||||||||||||||||||||
Office | 70 | — | 38 | — | — | 108 | 10 | 125 | 11 | ||||||||||||||||||||||||
Commercial | 3 | 4 | 21 | — | — | 28 | 3 | 17 | 2 | ||||||||||||||||||||||||
Land development | 6 | 8 | 8 | — | — | 22 | 2 | 22 | 2 | ||||||||||||||||||||||||
Other | 6 | — | 1 | 2 | — | 9 | 1 | 8 | 1 | ||||||||||||||||||||||||
Sterling real estate construction loans (a) | — | — | 113 | — | — | 113 | 11 | 111 | 10 | ||||||||||||||||||||||||
Total | $ | 427 | $ | 66 | $ | 438 | $ | 54 | $ | 70 | $ | 1,055 | 100 | % | $ | 1,103 | 100 | % | |||||||||||||||
Commercial mortgage loans: | |||||||||||||||||||||||||||||||||
Commercial Real Estate business line: | |||||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Single family | $ | 16 | $ | 5 | $ | 5 | $ | 3 | $ | 20 | $ | 49 | 2 | % | $ | 46 | 2 | % | |||||||||||||||
Land carry | 60 | 38 | 19 | 29 | 8 | 154 | 6 | 138 | 5 | ||||||||||||||||||||||||
Total residential | 76 | 43 | 24 | 32 | 28 | 203 | 8 | 184 | 7 | ||||||||||||||||||||||||
Other commercial mortgage: | |||||||||||||||||||||||||||||||||
Multi-family | 110 | 55 | 118 | 153 | 22 | 458 | 18 | 503 | 20 | ||||||||||||||||||||||||
Retail | 177 | 79 | 46 | 66 | 18 | 386 | 15 | 396 | 16 | ||||||||||||||||||||||||
Multi-use | 114 | 19 | 36 | — | 24 | 193 | 8 | 202 | 8 | ||||||||||||||||||||||||
Land carry | 67 | 58 | 17 | 11 | 11 | 164 | 7 | 175 | 7 | ||||||||||||||||||||||||
Office | 113 | 27 | 5 | 24 | 4 | 173 | 7 | 166 | 7 | ||||||||||||||||||||||||
Commercial | 64 | 46 | 28 | — | 30 | 168 | 7 | 169 | 7 | ||||||||||||||||||||||||
Other | 15 | 24 | 17 | — | 9 | 65 | 3 | 60 | 2 | ||||||||||||||||||||||||
Sterling commercial mortgage loans (a) | — | — | 691 | — | — | 691 | 27 | 652 | 26 | ||||||||||||||||||||||||
Total | $ | 736 | $ | 351 | $ | 982 | $ | 286 | $ | 146 | $ | 2,501 | 100 | % | $ | 2,507 | 100 | % |
March 31, 2012 | |||||||||||||
(dollar amounts in millions) | Residential Mortgage Loans | % of Total | Home Equity Loans | % of Total | |||||||||
Geographic market: | |||||||||||||
Midwest | $ | 479 | 33 | % | $ | 930 | 58 | % | |||||
Western | 462 | 31 | 420 | 26 | |||||||||
Texas | 315 | 21 | 217 | 13 | |||||||||
Florida | 224 | 15 | 45 | 3 | |||||||||
Other Markets | 5 | — | — | — | |||||||||
Total | $ | 1,485 | 100 | % | $ | 1,612 | 100 | % |
(in millions) | March 31, 2012 | December 31, 2011 | |||||
Loans outstanding | $ | 41 | $ | 46 | |||
Lease financing | 369 | 397 | |||||
Investment securities available-for-sale | 23 | 24 | |||||
Trading account securities | 46 | 12 | |||||
Standby letters of credit | 144 | 158 | |||||
Unused commitments to extend credit | 17 | 15 | |||||
Total direct exposure to state and local municipalities | $ | 640 | $ | 652 |
Outstanding (a) | ||||||||||||||||||||
(in millions) | Commercial and Industrial | Banks and Other Financial Institutions | Total Outstanding | Unfunded Commitments and Guarantees | Total Exposure | |||||||||||||||
March 31, 2012 | ||||||||||||||||||||
United Kingdom | $ | 82 | $ | 5 | $ | 87 | $ | 132 | $ | 219 | ||||||||||
Netherlands | 44 | — | 44 | 75 | 119 | |||||||||||||||
Switzerland | — | 40 | 40 | 65 | 105 | |||||||||||||||
Germany | 4 | 4 | 8 | 50 | 58 | |||||||||||||||
Ireland | 22 | — | 22 | 10 | 32 | |||||||||||||||
Luxembourg | — | — | — | 20 | 20 | |||||||||||||||
Sweden | 10 | — | 10 | 9 | 19 | |||||||||||||||
Belgium | 2 | — | 2 | 6 | 8 | |||||||||||||||
Italy | 5 | 1 | 6 | — | 6 | |||||||||||||||
Spain | — | — | — | 3 | 3 | |||||||||||||||
Finland | — | 2 | 2 | — | 2 | |||||||||||||||
Total Europe | $ | 169 | $ | 52 | $ | 221 | $ | 370 | $ | 591 | ||||||||||
December 31, 2011 | ||||||||||||||||||||
United Kingdom | $ | 72 | $ | 4 | $ | 76 | $ | 135 | $ | 211 | ||||||||||
Switzerland | — | 39 | 39 | 64 | 103 | |||||||||||||||
Netherlands | 46 | — | 46 | 46 | 92 | |||||||||||||||
Germany | 4 | 5 | 9 | 39 | 48 | |||||||||||||||
Ireland | 20 | — | 20 | 14 | 34 | |||||||||||||||
Sweden | 10 | — | 10 | 8 | 18 | |||||||||||||||
Italy | 5 | 1 | 6 | — | 6 | |||||||||||||||
Belgium | 1 | — | 1 | 5 | 6 | |||||||||||||||
Spain | — | — | — | 3 | 3 | |||||||||||||||
Finland | — | 2 | 2 | — | 2 | |||||||||||||||
France | — | — | — | 1 | 1 | |||||||||||||||
Total Europe | $ | 158 | $ | 51 | $ | 209 | $ | 315 | $ | 524 |
(a) | Includes funded loans, bankers acceptances and net counterparty derivative exposure. |
March 31, 2012 | December 31, 2011 | ||||||||||||
(in millions) | Amount | % | Amount | % | |||||||||
Change in Interest Rates: | |||||||||||||
+200 basis points | $ | 165 | 10 | % | $ | 156 | 9 | % | |||||
-25 basis points (to zero percent) | (22 | ) | (1 | ) | (20 | ) | (1 | ) |
March 31, 2012 | December 31, 2011 | ||||||||||||
(in millions) | Amount | % | Amount | % | |||||||||
Change in Interest Rates: | |||||||||||||
+200 basis points | $ | 862 | 8 | % | $ | 719 | 7 | % | |||||
-25 basis points (to zero percent) | (163 | ) | (2 | ) | (147 | ) | (1 | ) |
March 31, 2012 | Comerica Incorporated | Comerica Bank | |
Standard and Poor’s | A- | A | |
Moody’s Investors Service | A3 | A2 | |
Fitch Ratings | A | A | |
DBRS | A | A (High) |
(dollar amounts in millions) | March 31, 2012 | December 31, 2011 | |||||
Tier 1 Common Capital Ratio: | |||||||
Tier 1 capital (a) (b) | $ | 6,672 | $ | 6,582 | |||
Less: | |||||||
Trust preferred securities | 25 | 25 | |||||
Tier 1 common capital (b) | $ | 6,647 | $ | 6,557 | |||
Risk-weighted assets (a) (b) | $ | 64,362 | $ | 63,244 | |||
Tier 1 risk-based capital ratio (b) | 10.37 | % | 10.41 | % | |||
Tier 1 common capital ratio (b) | 10.33 | 10.37 | |||||
Tangible Common Equity Ratio: | |||||||
Common shareholders' equity | $ | 6,985 | $ | 6,868 | |||
Less: | |||||||
Goodwill | 635 | 635 | |||||
Other intangible assets | 30 | 32 | |||||
Tangible common equity | $ | 6,320 | $ | 6,201 | |||
Total assets | $ | 62,593 | $ | 61,008 | |||
Less: | |||||||
Goodwill | 635 | 635 | |||||
Other intangible assets | 30 | 32 | |||||
Tangible assets | $ | 61,928 | $ | 60,341 | |||
Common equity ratio | 11.16 | % | 11.26 | % | |||
Tangible common equity ratio | 10.21 | 10.27 | |||||
Tangible Common Equity per Share of Common Stock: | |||||||
Common shareholders' equity | $ | 6,985 | $ | 6,868 | |||
Tangible common equity | 6,320 | 6,201 | |||||
Shares of common stock outstanding (in millions) | 197 | 197 | |||||
Common shareholders' equity per share of common stock | $ | 35.44 | $ | 34.80 | |||
Tangible common equity per share of common stock | 32.06 | 31.42 |
(a) | Tier 1 capital and risk-weighted assets as defined by regulation. |
(b) | March 31, 2012 Tier 1 capital and risk-weighted assets are estimated. |
(a) | Evaluation of Disclosure Controls and Procedures. The Corporation maintains a set of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be disclosed by the Corporation in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Corporation’s management, including the Corporation’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management has evaluated, with the participation of the Corporation’s Chief Executive Officer and Chief Financial Officer, the effectiveness of the Corporation’s disclosure controls and procedures as of the end of the period covered by this quarterly report (the “Evaluation Date”). Based on |
(b) | Changes in Internal Control Over Financial Reporting. During the period to which this report relates, there have not been any changes in the Corporation’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or that are reasonably likely to materially affect, such controls. |
Exhibit No. | Description | |
3.1 | Restated Certificate of Incorporation of Comerica Incorporated (filed as Exhibit 3.2 to Registrant’s Current Report on Form 8-K dated August 4, 2010, and incorporated herein by reference). | |
3.2 | Certificate of Amendment to Restated Certificate of Incorporation of Comerica Incorporated (filed as Exhibit 3.2 to Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, and incorporated herein by reference). | |
3.3 | Amended and Restated Bylaws of Comerica Incorporated (filed as Exhibit 3.3 to Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, and incorporated herein by reference). | |
4 | [In accordance with Regulation S-K Item No. 601(b)(4)(iii), the Registrant is not filing copies of instruments defining the rights of holders of long-term debt because none of those instruments authorizes debt in excess of 10% of the total assets of the registrant and its subsidiaries on a consolidated basis. The Registrant hereby agrees to furnish a copy of any such instrument to the Securities and Exchange Commission upon request.] | |
10.1 | Form of Standard Comerica Incorporated Non-Qualified Stock Option Agreement under the Comerica Incorporated Amended and Restated 2006 Long-Term Incentive Plan (2012 version) (filed as Exhibit 10.1C to Registrant's Annual Report on Form 10-K for the year ended December 31, 2011, and incorporated herein by reference). | |
10.2 | Form of Standard Comerica Incorporated Restricted Stock Award Agreement (non-cliff vesting) under the Amended and Restated Comerica Incorporated 2006 Long-Term Incentive Plan (2012 version) (filed as Exhibit 10.1F to Registrant's Annual Report on Form 10-K for the year ended December 31, 2011, and incorporated herein by reference). | |
10.3 | Form of Standard Comerica Incorporated Restricted Stock Award Agreement (cliff vesting) under the Comerica Incorporated 2006 Amended and Restated Long-Term Incentive Plan (2012 version) (filed as Exhibit 10.1I to Registrant's Annual Report on Form 10-K for the year ended December 31, 2011, and incorporated herein by reference). | |
10.4 | Restrictive Covenants and General Release Agreement by and between Elizabeth S. Acton and Comerica Incorporated dated April 20, 2012 (filed as Exhibit 10.1 to Registrant's Current Report on Form 8-K dated April 20, 2012, and incorporated herein by reference). | |
31.1 | Chairman, President and CEO Rule 13a-14(a)/15d-14(a) Certification of Periodic Report (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) | |
31.2 | Vice Chairman and CFO Rule 13a-14(a)/15d-14(a) Certification of Periodic Report (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) | |
32 | Section 1350 Certification of Periodic Report (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002) | |
101* | Financial statements from Quarterly Report on Form 10-Q of the Registrant for the quarter ended March 31, 2012, formatted in Extensible Business Reporting Language: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Statements of Changes in Shareholders’ Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements.* | |
* | As provided in Rule 406T of Regulation S-T, this information shall not be deemed “filed” for purposes of Section 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934 or otherwise subject to liability under those sections. |
COMERICA INCORPORATED | |||
(Registrant) | |||
/s/ Muneera S. Carr | |||
Muneera S. Carr | |||
Senior Vice President and | |||
Chief Accounting Officer and | |||
Duly Authorized Officer |
Exhibit No. | Description | |
3.1 | Restated Certificate of Incorporation of Comerica Incorporated (filed as Exhibit 3.2 to Registrant’s Current Report on Form 8-K dated August 4, 2010, and incorporated herein by reference). | |
3.2 | Certificate of Amendment to Restated Certificate of Incorporation of Comerica Incorporated (filed as Exhibit 3.2 to Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, and incorporated herein by reference). | |
3.3 | Amended and Restated Bylaws of Comerica Incorporated (filed as Exhibit 3.3 to Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, and incorporated herein by reference). | |
4 | [In accordance with Regulation S-K Item No. 601(b)(4)(iii), the Registrant is not filing copies of instruments defining the rights of holders of long-term debt because none of those instruments authorizes debt in excess of 10% of the total assets of the registrant and its subsidiaries on a consolidated basis. The Registrant hereby agrees to furnish a copy of any such instrument to the Securities and Exchange Commission upon request.] | |
10.1 | Form of Standard Comerica Incorporated Non-Qualified Stock Option Agreement under the Comerica Incorporated Amended and Restated 2006 Long-Term Incentive Plan (2012 version) (filed as Exhibit 10.1C to Registrant's Annual Report on Form 10-K for the year ended December 31, 2011, and incorporated herein by reference). | |
10.2 | Form of Standard Comerica Incorporated Restricted Stock Award Agreement (non-cliff vesting) under the Amended and Restated Comerica Incorporated 2006 Long-Term Incentive Plan (2012 version) (filed as Exhibit 10.1F to Registrant's Annual Report on Form 10-K for the year ended December 31, 2011, and incorporated herein by reference). | |
10.3 | Form of Standard Comerica Incorporated Restricted Stock Award Agreement (cliff vesting) under the Comerica Incorporated 2006 Amended and Restated Long-Term Incentive Plan (2012 version) (filed as Exhibit 10.1I to Registrant's Annual Report on Form 10-K for the year ended December 31, 2011, and incorporated herein by reference). | |
10.4 | Restrictive Covenants and General Release Agreement by and between Elizabeth S. Acton and Comerica Incorporated dated April 20, 2012 (filed as Exhibit 10.1 to Registrant's Current Report on Form 8-K dated April 20, 2012, and incorporated herein by reference). | |
31.1 | Chairman, President and CEO Rule 13a-14(a)/15d-14(a) Certification of Periodic Report (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) | |
31.2 | Vice Chairman and CFO Rule 13a-14(a)/15d-14(a) Certification of Periodic Report (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) | |
32 | Section 1350 Certification of Periodic Report (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002) | |
101* | Financial statements from Quarterly Report on Form 10-Q of the Registrant for the quarter ended March 31, 2012, formatted in Extensible Business Reporting Language: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Statements of Changes in Shareholders’ Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements.* | |
* | As provided in Rule 406T of Regulation S-T, this information shall not be deemed “filed” for purposes of Section 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934 or otherwise subject to liability under those sections. | |
1. | I have reviewed this report on Form 10-Q of the Registrant for the quarterly period ended March 31, 2012; |
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; and |
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: | May 1, 2012 | /s/ Ralph W. Babb, Jr. |
Ralph W. Babb, Jr. | ||
Chairman, President and | ||
Chief Executive Officer |
1. | I have reviewed this report on Form 10-Q of the Registrant for the quarterly period ended March 31, 2012; |
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; and |
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: | May 1, 2012 | /s/ Karen L. Parkhill |
Karen L. Parkhill | ||
Vice Chairman and | ||
Chief Financial Officer |
(1) | the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); 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: | May 1, 2012 | /s/ Ralph W. Babb, Jr. |
Ralph W. Babb, Jr. | ||
Chairman, President and | ||
Chief Executive Officer | ||
/s/ Karen L. Parkhill | ||
Karen L. Parkhill | ||
Vice Chairman and | ||
Chief Financial Officer |
Fair Value Measurements (Quantitative Information About Level 3 Measurements) (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Millions, unless otherwise specified |
3 Months Ended | 3 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
Dec. 31, 2011
|
Mar. 31, 2012
Fair Value, Inputs, Level 3 [Member]
|
Dec. 31, 2011
Fair Value, Inputs, Level 3 [Member]
|
Mar. 31, 2012
State And Municipal Securities [Member]
Fair Value, Inputs, Level 3 [Member]
|
Mar. 31, 2012
State And Municipal Securities [Member]
Minimum [Member]
Fair Value, Inputs, Level 3 [Member]
|
Mar. 31, 2012
State And Municipal Securities [Member]
Maximum [Member]
Fair Value, Inputs, Level 3 [Member]
|
Mar. 31, 2012
Auction-Rate Preferred Securities [Member]
Fair Value, Inputs, Level 3 [Member]
|
Mar. 31, 2012
Auction-Rate Preferred Securities [Member]
Minimum [Member]
Fair Value, Inputs, Level 3 [Member]
|
Mar. 31, 2012
Auction-Rate Preferred Securities [Member]
Maximum [Member]
Fair Value, Inputs, Level 3 [Member]
|
||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||||||||||
Total assets at fair value | $ 10,960 | $ 10,979 | $ 347 | $ 436 | $ 23 | [1] | $ 320 | ||||||||
Unobservable Input, Discount rate | 5.00% | [1] | 10.00% | [1] | 3.00% | 7.00% | |||||||||
Unobservable Input, Expected term or period | 4 years | [1] | 5 years | [1] | 2 years | 4 years | |||||||||
|
Credit Quality And Allowance For Credit Losses (Troubled Debt Restructurings By Type Of Modification) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
Mar. 31, 2012
|
||||||||||||
Troubled debt restructuring modifications recorded investment | $ 60 | $ 61 | ||||||||||||
Business loans
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 60 | 59 | ||||||||||||
Business loans | Commercial
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 21 | 40 | ||||||||||||
Business loans | Commercial mortgage
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 39 | 19 | ||||||||||||
Business loans | Commercial mortgage | Commercial Real Estate Construction Financing Receivable [Member]
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 30 | [1] | ||||||||||||
Business loans | Commercial mortgage | Other business lines
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 9 | [2] | 19 | [2] | ||||||||||
Retail Loans
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 2 | |||||||||||||
Retail Loans | Residential mortgage
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 2 | |||||||||||||
Principal Deferrals
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 54 | [3] | 46 | [3] | 187 | [4] | ||||||||
Extension Term, Minimum Period | 90 days | |||||||||||||
Principal Deferrals | Business loans
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 54 | [3] | 46 | [3] | ||||||||||
Principal Deferrals | Business loans | Commercial
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 21 | [3] | 32 | [3] | ||||||||||
Principal Deferrals | Business loans | Commercial mortgage
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 33 | [3] | 14 | [3] | ||||||||||
Principal Deferrals | Business loans | Commercial mortgage | Commercial Real Estate Construction Financing Receivable [Member]
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 24 | [1],[3] | ||||||||||||
Principal Deferrals | Business loans | Commercial mortgage | Other business lines
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 9 | [2],[3] | 14 | [2],[3] | ||||||||||
Principal Deferrals | Retail Loans
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 0 | [3] | ||||||||||||
Principal Deferrals | Retail Loans | Residential mortgage
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 0 | [3] | ||||||||||||
Interest Rate Reductions
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 0 | 15 | 32 | [4] | ||||||||||
Interest Rate Reductions | Business loans
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 0 | 13 | ||||||||||||
Interest Rate Reductions | Business loans | Commercial
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 0 | 8 | ||||||||||||
Interest Rate Reductions | Business loans | Commercial mortgage
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 0 | 5 | ||||||||||||
Interest Rate Reductions | Business loans | Commercial mortgage | Commercial Real Estate Construction Financing Receivable [Member]
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 0 | [1] | ||||||||||||
Interest Rate Reductions | Business loans | Commercial mortgage | Other business lines
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 0 | [2] | 5 | [2] | ||||||||||
Interest Rate Reductions | Retail Loans
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 2 | |||||||||||||
Interest Rate Reductions | Retail Loans | Residential mortgage
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 2 | |||||||||||||
AB Note Restructures
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 6 | [4] | 0 | [4] | 33 | [4] | ||||||||
AB Note Restructures | Business loans
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 6 | [4] | 0 | [4] | ||||||||||
AB Note Restructures | Business loans | Commercial
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 0 | [4] | 0 | [4] | ||||||||||
AB Note Restructures | Business loans | Commercial mortgage
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 6 | [4] | 0 | [4] | ||||||||||
AB Note Restructures | Business loans | Commercial mortgage | Commercial Real Estate Construction Financing Receivable [Member]
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 6 | [1],[4] | ||||||||||||
AB Note Restructures | Business loans | Commercial mortgage | Other business lines
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 0 | [2],[4] | 0 | [2],[4] | ||||||||||
AB Note Restructures | Retail Loans
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | 0 | [4] | ||||||||||||
AB Note Restructures | Retail Loans | Residential mortgage
|
||||||||||||||
Troubled debt restructuring modifications recorded investment | $ 0 | [4] | ||||||||||||
|
Net Income Per Common Share (Basic And Diluted Income (Loss) From Continuing Operations Per Common Share) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|
Net income | $ 130 | $ 103 |
Less: Income allocated to participating securities | 1 | 1 |
Net income attributable to common shares | 129 | 102 |
Basic net income per common share | $ 0.66 | $ 0.58 |
Diluted net income per common share | $ 0.66 | $ 0.57 |
Earnings Per Share, Basic [Member]
|
||
Basic average common shares | 195 | 175 |
Earnings Per Share, Diluted [Member]
|
||
Basic average common shares | 195 | 175 |
Net effect of the assumed exercise of stock options | 1 | 1 |
Net effect of the assumed exercise of warrants | 0 | 2 |
Diluted average common shares | 196 | 178 |
Net Income [Member]
|
||
Net income attributable to common shares | $ 129 | $ 102 |
Credit Quality And Allowance For Credit Losses (Acquired Purchased Credit-Impaired Loans) (Details) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Acquisition [Abstract] | ||
Carrying amount | $ 72 | $ 87 |
Outstanding balance | $ 210 | $ 234 |
Merger and Restructuring Charges (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 8 Months Ended |
---|---|---|
Mar. 31, 2012
|
Mar. 31, 2012
|
|
Restructuring and Related Activities [Abstract] | ||
Expected restructuring cumulative costs | $ 115 | |
Expected restructuring cumulative costs, net of tax | 73 | |
Acquisition-related expenses recognized | 0 | 75 |
Acquisition-related expenses recognized, net of tax | $ 47 |
Credit Quality And Allowance For Credit Losses (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
Dec. 31, 2011
|
Mar. 31, 2012
Principal Deferrals Member
|
Mar. 31, 2011
Principal Deferrals Member
|
Mar. 31, 2012
Principal Deferrals Member
|
Mar. 31, 2012
Interest Rate Reduction Modification Type Member
|
Mar. 31, 2011
Interest Rate Reduction Modification Type Member
|
Mar. 31, 2012
Interest Rate Reduction Modification Type Member
|
Mar. 31, 2012
AB Note Restructures
|
Mar. 31, 2011
AB Note Restructures
|
Mar. 31, 2012
AB Note Restructures
|
||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||
Commitments to lend additional funds to TDR borrowers | $ 11 | $ 13 | |||||||||||||||||||||||||
Troubled debt restructuring modifications recorded investment | 60 | 61 | 54 | [1] | 46 | [1] | 187 | [2] | 0 | 15 | 32 | [2] | 6 | [2] | 0 | [2] | 33 | [2] | |||||||||
Subsequent default on loans modified | 91 | 7 | 2 | ||||||||||||||||||||||||
Allowance for PCI loans | 0 | 0 | |||||||||||||||||||||||||
Reduced-rate loans | $ 26 | [3] | $ 27 | [3] | |||||||||||||||||||||||
Extension Term, Minimum Period | 90 days | ||||||||||||||||||||||||||
|
Merger and Restructuring Charges (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Merger And Restructuring Charges | Merger and restructuring charges comprised the following from the acquisition date to March 31, 2012.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Changes In Restructuring Reserves | The following table presents the changes in restructuring reserves for the three-month period ended March 31, 2012.
|
Merger and Restructuring Charges (Summary Of Merger And Restructuring Charges) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 8 Months Ended |
---|---|---|
Mar. 31, 2012
|
Mar. 31, 2012
|
|
Merger and restructuring charges, expected cost | $ 115 | |
Merger and restructuring charges, incurred cost | 0 | 75 |
Facilities and contract termination charges
|
||
Merger and restructuring charges, expected cost | 53 | |
Merger and restructuring charges, incurred cost | (2) | 14 |
Systems integration and related charges
|
||
Merger and restructuring charges, expected cost | 28 | |
Merger and restructuring charges, incurred cost | 1 | 27 |
Severance and other employee-related charges
|
||
Merger and restructuring charges, expected cost | 26 | |
Merger and restructuring charges, incurred cost | 1 | 26 |
Transaction costs
|
||
Merger and restructuring charges, expected cost | 8 | |
Merger and restructuring charges, incurred cost | $ 0 | $ 8 |
Income Taxes And Tax-Related Items (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|
Income Taxes And Tax-Related Items Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 21 | $ 9 |
Increase in unrecognized tax benefits | 12 | |
Anticipated change within twelve months in unrecognized tax benefits due to settlements of federal and state tax issues | (21) | |
Accrued income tax interest payable | (7) | 7 |
Increase in accrued interest payable | $ 14 |
Derivative And Credit-Related Financial Instruments (Narrative) (Details) (USD $)
|
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
Dec. 31, 2011
|
|
Percentage of derivative contracts in an unrealized gain position with bilateral collateral agreements secured by marketable investment securities | 89.00% | ||
Aggregate fair value of all derivative instruments with credit-risk contingent features that were in a liability position | $ 82,000,000 | ||
Collateral pledged for aggregate fair value of all derivative instruments with credit-risk contingent features that were in a liability position | 67,000,000 | ||
Additional required overnight collateral on derivatives with credit-risk contingent features at period end should the credit-risk contingent features be triggered | 15,000,000 | ||
Net interest income generated by risk management fair value interest rate swaps | 17,000,000 | 18,000,000 | |
Allowance for credit losses on lending-related commitments | 25,000,000 | 26,000,000 | |
Allowance for credit losses on lending-related commitments, unused commitments to extend credit | 8,000,000 | 9,000,000 | |
Latest year of contract expiration on standby and commercial letters of credit | 2021 | ||
Risk participation agreements covering standby and commercial letters of credit | 292,000,000 | 271,000,000 | |
Standby and commercial letters of credit | 5,400,000,000 | 5,500,000,000 | |
Carrying value of standby and commercial letters of credit included in accrued expenses and other liabilities | 86,000,000 | 89,000,000 | |
Deferred fees | 69,000,000 | 72,000,000 | |
Allowance for credit losses on lending-related commitments, standby and commercial letters of credit | 17,000,000 | 17,000,000 | |
Total notional amount of the credit risk participation agreements | 439,000,000 | 394,000,000 | |
Maximum estimated exposure to credit risk participation agreements assuming 100% default | 12,000,000 | 12,000,000 | |
Weighted average remaining maturity of credit risk participation agreements, in years | 2.5 | ||
Notional amount of the derivative contract equivalent to Visa Class B shares | 780,000 | ||
Fair value of Visa Class B derivative contract | 6,000,000 | ||
Sterling [Member]
|
|||
Allowance for credit losses on lending-related commitments | 0 | 0 | |
Remaining fair value adjustment for unfunded commitments and letters of credit | $ 3,000,000 | $ 3,000,000 |
Business Segment Information (Business Segment Financial Results) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|||||
Net interest income (expense) (FTE) | $ 444 | $ 396 | ||||
Provision for loan losses | 23 | 49 | ||||
Noninterest income | 206 | 207 | ||||
Noninterest expenses | 448 | 415 | ||||
Provision (benefit) for income taxes | 49 | 36 | ||||
Net income (loss) | 130 | 103 | ||||
Net credit-related charge-offs | 45 | 101 | ||||
Assets, average | 61,613 | 53,775 | ||||
Loans, average | 42,269 | 39,551 | ||||
Deposits, average | 48,311 | 40,598 | ||||
Return on average assets | 0.84% | [1] | 0.77% | [1] | ||
Efficiency ratio | 69.50% | 69.05% | ||||
Business Bank [Member]
|
||||||
Net interest income (expense) (FTE) | 379 | 341 | ||||
Provision for loan losses | 1 | 18 | ||||
Noninterest income | 81 | 77 | ||||
Noninterest expenses | 159 | 160 | ||||
Provision (benefit) for income taxes | 94 | 73 | ||||
Net income (loss) | 206 | 167 | ||||
Net credit-related charge-offs | 28 | 73 | ||||
Assets, average | 33,184 | 30,092 | ||||
Loans, average | 32,242 | 29,638 | ||||
Deposits, average | 23,997 | 20,084 | ||||
Return on average assets | 2.49% | [1] | 2.22% | [1] | ||
Efficiency ratio | 34.74% | 38.14% | ||||
Retail Bank [Member]
|
||||||
Net interest income (expense) (FTE) | 167 | 139 | ||||
Provision for loan losses | 4 | 23 | ||||
Noninterest income | 42 | 42 | ||||
Noninterest expenses | 184 | 162 | ||||
Provision (benefit) for income taxes | 7 | (2) | ||||
Net income (loss) | 14 | (2) | ||||
Net credit-related charge-offs | 12 | 23 | ||||
Assets, average | 6,173 | 5,558 | ||||
Loans, average | 5,462 | 5,106 | ||||
Deposits, average | 20,373 | 17,360 | ||||
Return on average assets | 0.27% | [1] | (0.05%) | [1] | ||
Efficiency ratio | 87.73% | 89.19% | ||||
Wealth Management [Member]
|
||||||
Net interest income (expense) (FTE) | 47 | 44 | ||||
Provision for loan losses | 14 | 8 | ||||
Noninterest income | 65 | 64 | ||||
Noninterest expenses | 81 | 78 | ||||
Provision (benefit) for income taxes | 6 | 8 | ||||
Net income (loss) | 11 | 14 | ||||
Net credit-related charge-offs | 5 | 5 | ||||
Assets, average | 4,636 | 4,809 | ||||
Loans, average | 4,565 | 4,807 | ||||
Deposits, average | 3,611 | 2,800 | ||||
Return on average assets | 0.97% | [1] | 1.14% | [1] | ||
Efficiency ratio | 75.23% | 74.38% | ||||
Finance [Member]
|
||||||
Net interest income (expense) (FTE) | (156) | (135) | ||||
Provision for loan losses | 0 | 0 | ||||
Noninterest income | 13 | 18 | ||||
Noninterest expenses | 3 | 2 | ||||
Provision (benefit) for income taxes | (54) | (44) | ||||
Net income (loss) | (92) | (75) | ||||
Net credit-related charge-offs | 0 | 0 | ||||
Assets, average | 12,095 | 9,370 | ||||
Loans, average | 0 | 0 | ||||
Deposits, average | 161 | 249 | ||||
Other [Member]
|
||||||
Net interest income (expense) (FTE) | 7 | 7 | ||||
Provision for loan losses | 4 | 0 | ||||
Noninterest income | 5 | 6 | ||||
Noninterest expenses | 21 | 13 | ||||
Provision (benefit) for income taxes | (4) | 1 | ||||
Net income (loss) | (9) | (1) | ||||
Net credit-related charge-offs | 0 | 0 | ||||
Assets, average | 5,525 | 3,946 | ||||
Loans, average | 0 | 0 | ||||
Deposits, average | $ 169 | $ 105 | ||||
|
Business Segment Information (Market Segment Financial Results) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|||||
Net interest income (expense) (FTE) | $ 444 | $ 396 | ||||
Provision for loan losses | 23 | 49 | ||||
Noninterest income | 206 | 207 | ||||
Noninterest expenses | 448 | 415 | ||||
Provision (benefit) for income taxes (FTE) | 49 | 36 | ||||
Net income (loss) | 130 | 103 | ||||
Net credit-related charge-offs | 45 | 101 | ||||
Assets, average | 61,613 | 53,775 | ||||
Loans, average | 42,269 | 39,551 | ||||
Deposits, average | 48,311 | 40,598 | ||||
Return on average assets | 0.84% | [1] | 0.77% | [1] | ||
Efficiency ratio | 69.50% | 69.05% | ||||
Midwest [Member]
|
||||||
Net interest income (expense) (FTE) | 198 | 203 | ||||
Provision for loan losses | 10 | 34 | ||||
Noninterest income | 98 | 100 | ||||
Noninterest expenses | 183 | 188 | ||||
Provision (benefit) for income taxes (FTE) | 35 | 28 | ||||
Net income (loss) | 68 | 53 | ||||
Net credit-related charge-offs | 18 | 46 | ||||
Assets, average | 14,095 | 14,303 | ||||
Loans, average | 13,829 | 14,104 | ||||
Deposits, average | 19,415 | 18,230 | ||||
Return on average assets | 1.33% | [1] | 1.07% | [1] | ||
Efficiency ratio | 61.78% | 62.11% | ||||
Western [Member]
|
||||||
Net interest income (expense) (FTE) | 171 | 164 | ||||
Provision for loan losses | (7) | 11 | ||||
Noninterest income | 33 | 37 | ||||
Noninterest expenses | 107 | 109 | ||||
Provision (benefit) for income taxes (FTE) | 39 | 30 | ||||
Net income (loss) | 65 | 51 | ||||
Net credit-related charge-offs | 11 | 26 | ||||
Assets, average | 12,623 | 12,590 | ||||
Loans, average | 12,383 | 12,383 | ||||
Deposits, average | 13,897 | 12,235 | ||||
Return on average assets | 1.75% | [1] | 1.54% | [1] | ||
Efficiency ratio | 52.50% | 54.34% | ||||
Texas [Member]
|
||||||
Net interest income (expense) (FTE) | 151 | 87 | ||||
Provision for loan losses | 14 | 4 | ||||
Noninterest income | 31 | 23 | ||||
Noninterest expenses | 92 | 61 | ||||
Provision (benefit) for income taxes (FTE) | 27 | 16 | ||||
Net income (loss) | 49 | 29 | ||||
Net credit-related charge-offs | 7 | 8 | ||||
Assets, average | 10,082 | 7,031 | ||||
Loans, average | 9,295 | 6,824 | ||||
Deposits, average | 10,229 | 5,786 | ||||
Return on average assets | 1.72% | [1] | 1.65% | [1] | ||
Efficiency ratio | 50.33% | 55.39% | ||||
Florida [Member]
|
||||||
Net interest income (expense) (FTE) | 10 | 11 | ||||
Provision for loan losses | 6 | 8 | ||||
Noninterest income | 4 | 4 | ||||
Noninterest expenses | 9 | 12 | ||||
Provision (benefit) for income taxes (FTE) | 0 | (1) | ||||
Net income (loss) | (1) | (4) | ||||
Net credit-related charge-offs | 2 | 8 | ||||
Assets, average | 1,416 | 1,553 | ||||
Loans, average | 1,418 | 1,580 | ||||
Deposits, average | 424 | 367 | ||||
Return on average assets | (0.21%) | [1] | (0.93%) | [1] | ||
Efficiency ratio | 68.94% | 80.08% | ||||
Other Markets [Member]
|
||||||
Net interest income (expense) (FTE) | 45 | 41 | ||||
Provision for loan losses | (3) | (7) | ||||
Noninterest income | 14 | 11 | ||||
Noninterest expenses | 24 | 21 | ||||
Provision (benefit) for income taxes (FTE) | 0 | 0 | ||||
Net income (loss) | 38 | 38 | ||||
Net credit-related charge-offs | 6 | 9 | ||||
Assets, average | 4,021 | 3,247 | ||||
Loans, average | 3,693 | 2,960 | ||||
Deposits, average | 2,628 | 2,298 | ||||
Return on average assets | 3.77% | [1] | 4.74% | [1] | ||
Efficiency ratio | 44.62% | 41.67% | ||||
International [Member]
|
||||||
Net interest income (expense) (FTE) | 18 | 18 | ||||
Provision for loan losses | (1) | (1) | ||||
Noninterest income | 8 | 8 | ||||
Noninterest expenses | 9 | 9 | ||||
Provision (benefit) for income taxes (FTE) | 6 | 6 | ||||
Net income (loss) | 12 | 12 | ||||
Net credit-related charge-offs | 1 | 4 | ||||
Assets, average | 1,756 | 1,735 | ||||
Loans, average | 1,651 | 1,700 | ||||
Deposits, average | 1,388 | 1,328 | ||||
Return on average assets | 2.73% | [1] | 2.79% | [1] | ||
Efficiency ratio | 33.02% | 34.62% | ||||
Finance & Other [Member]
|
||||||
Net interest income (expense) (FTE) | (149) | (128) | ||||
Provision for loan losses | 4 | 0 | ||||
Noninterest income | 18 | 24 | ||||
Noninterest expenses | 24 | 15 | ||||
Provision (benefit) for income taxes (FTE) | (58) | (43) | ||||
Net income (loss) | (101) | (76) | ||||
Net credit-related charge-offs | 0 | 0 | ||||
Assets, average | 17,620 | 13,316 | ||||
Loans, average | 0 | 0 | ||||
Deposits, average | $ 330 | $ 354 | ||||
|
Net Income Per Common Share (Average Shares Excluded From Diluted Net Income (Loss) Per Share Computations Due To Exercise Price Higher Than Market Price) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|
Stock Options [Member]
|
||
Range of exercise prices minimum | $ 30.77 | $ 39.10 |
Range of exercise prices maximum | $ 64.50 | $ 64.50 |
Stock Options [Member] | Exercise Price Greater Than Market Price [Member]
|
||
Average shares related to outstanding dilutive securities | 17.6 | 15.5 |
Warrants [Member] | Exercise Price Greater Than Market Price [Member]
|
||
Average shares related to outstanding dilutive securities | 0.6 | |
Exercise price | $ 30.36 |
Credit Quality And Allowance For Credit Losses (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
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Credit Quality And Allowance For Credit Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Nonaccrual, Reduced-Rate Loans And Foreclosed Property | The following table summarizes nonperforming assets.
|
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Aging Analysis Of Loans | The following table presents an aging analysis of the recorded balance of loans.
|
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Loans By Credit Quality Indicator | The following table presents loans by credit quality indicator, based on internal risk ratings assigned to each business loan at the time of approval and subjected to subsequent reviews, generally at least annually, and to pools of retail loans with similar risk characteristics.
|
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Changes In The Allowance For Loan Losses And Related Loan Amounts | The following table details the changes in the allowance for loan losses and related loan amounts.
|
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Changes In the Allowance For Credit Losses On Lending-Related Commitments | Changes in the allowance for credit losses on lending-related commitments, included in "accrued expenses and other liabilities" on the consolidated balance sheets, are summarized in the following table.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually Evaluated Impaired Loans | The following table presents additional information regarding individually evaluated impaired loans.
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Average Individually Evaluated Impaired Loans And Related Interest Recognized | The following table presents information regarding average individually evaluated impaired loans and the related interest recognized. Interest income recognized for the period primarily related to reduced-rate loans.
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Troubled Debt Restructurings By Type Of Modification | The following tables detail the recorded balance at March 31, 2012 and 2011 of loans considered to be TDRs that were restructured during the three months ended March 31, 2012 and 2011, by type of modification. In cases of loans with more than one type of modification, the loans were categorized based on the most significant modification.
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Credit Quality And Allowance For Credit Losses (Changes In The Allowance For Loan Losses And Related Loan Amounts) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
Dec. 31, 2011
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|
Balance at beginning of period | $ 726 | $ 901 | |
Loan charge-offs | (62) | (123) | |
Recoveries on loans previously charged-off | 17 | 22 | |
Net loan charge-offs | (45) | (101) | |
Provision for loan losses | 23 | 49 | |
Balance at end of period | 704 | 849 | |
As a percentage of total loans | 1.64% | 2.17% | |
Allowance for loan losses individually evaluated for impairment | 144 | 173 | |
Allowance for loan losses collectively evaluated for impairment | 560 | 676 | |
Allowance for PCI loans | 0 | 0 | |
Total allowance for loan losses | 704 | 849 | |
Loans individually evaluated for impairment | 752 | 900 | |
Loans collectively evaluated for impairment | 42,188 | 38,276 | |
PCI loans | 72 | 0 | 87 |
Total loans | 43,012 | 39,176 | 42,679 |
Business loans
|
|||
Balance at beginning of period | 648 | 824 | |
Loan charge-offs | (55) | (113) | |
Recoveries on loans previously charged-off | 14 | 21 | |
Net loan charge-offs | (41) | (92) | |
Provision for loan losses | 25 | 39 | |
Balance at end of period | 632 | 771 | |
As a percentage of total loans | 1.61% | 2.18% | |
Allowance for loan losses individually evaluated for impairment | 143 | 168 | |
Allowance for loan losses collectively evaluated for impairment | 489 | 603 | |
Total allowance for loan losses | 632 | 771 | |
Loans individually evaluated for impairment | 702 | 854 | |
Loans collectively evaluated for impairment | 38,523 | 34,510 | |
PCI loans | 64 | 0 | |
Total loans | 39,289 | 35,364 | 38,868 |
Retail Loans
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Balance at beginning of period | 78 | 77 | |
Loan charge-offs | (7) | (10) | |
Recoveries on loans previously charged-off | 3 | 1 | |
Net loan charge-offs | (4) | (9) | |
Provision for loan losses | (2) | 10 | |
Balance at end of period | 72 | 78 | |
As a percentage of total loans | 1.94% | 2.02% | |
Allowance for loan losses individually evaluated for impairment | 1 | 5 | |
Allowance for loan losses collectively evaluated for impairment | 71 | 73 | |
Total allowance for loan losses | 72 | 78 | |
Loans individually evaluated for impairment | 50 | 46 | |
Loans collectively evaluated for impairment | 3,665 | 3,766 | |
PCI loans | 8 | 0 | |
Total loans | $ 3,723 | $ 3,812 | $ 3,811 |
Investment Securities (Summary Of Investment Securities Available-For-Sale) (Details) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
Mar. 31, 2011
|
||||||
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Amortized Cost | $ 9,828 | $ 9,901 | |||||||
Gross Unrealized Gains | 250 | 224 | |||||||
Gross Unrealized Losses | 17 | 21 | |||||||
Total investment securities available-for-sale, Fair Value | 10,061 | 10,104 | 7,406 | ||||||
U.S. Treasury And Other U.S. Government Agency Securities [Member]
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|||||||||
Amortized Cost | 20 | 20 | |||||||
Gross Unrealized Gains | 0 | 0 | |||||||
Gross Unrealized Losses | 0 | 0 | |||||||
Total investment securities available-for-sale, Fair Value | 20 | 20 | |||||||
Residential Mortgage-Backed Securities [Member]
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|||||||||
Amortized Cost | 9,334 | [1] | 9,289 | [1] | |||||
Gross Unrealized Gains | 250 | [1] | 224 | [1] | |||||
Gross Unrealized Losses | 0 | [1] | 1 | [1] | |||||
Total investment securities available-for-sale, Fair Value | 9,584 | [1] | 9,512 | [1] | |||||
State And Municipal Securities [Member]
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|||||||||
Amortized Cost | 29 | [2] | 29 | [2] | |||||
Gross Unrealized Gains | 0 | [2] | 0 | [2] | |||||
Gross Unrealized Losses | 6 | [2] | 5 | [2] | |||||
Total investment securities available-for-sale, Fair Value | 23 | [2] | 24 | [2] | |||||
Auction Rate Securities [Member]
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Amortized Cost | 1 | 1 | |||||||
Gross Unrealized Gains | 0 | 0 | |||||||
Gross Unrealized Losses | 0 | 0 | |||||||
Total investment securities available-for-sale, Fair Value | 1 | 1 | |||||||
Other Corporate Debt Securities [Member]
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Amortized Cost | 47 | 46 | |||||||
Gross Unrealized Gains | 0 | 0 | |||||||
Gross Unrealized Losses | 0 | 0 | |||||||
Total investment securities available-for-sale, Fair Value | 47 | 46 | |||||||
Auction-Rate Preferred Securities [Member]
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Amortized Cost | 331 | 423 | |||||||
Gross Unrealized Gains | 0 | 0 | |||||||
Gross Unrealized Losses | 11 | 15 | |||||||
Total investment securities available-for-sale, Fair Value | 320 | 408 | |||||||
Money Market And Other Mutual Funds [Member]
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Amortized Cost | 66 | 93 | |||||||
Gross Unrealized Gains | 0 | 0 | |||||||
Gross Unrealized Losses | 0 | 0 | |||||||
Total investment securities available-for-sale, Fair Value | $ 66 | $ 93 | |||||||
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Business Segment Information (Narrative) (Details)
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3 Months Ended |
---|---|
Mar. 31, 2012
markets
segments
|
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Segment Reporting [Abstract] | |
Number of Major Business Segments | 3 |
Number of Geographic Markets | 4 |
Fair Value Measurements (Location In Earnings Of Realized And Unrealized Gains And Losses Due To Changes In Fair Value Of Level 3 Assets And Liabilities ) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2012
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Mar. 31, 2011
|
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Investment Securities Available-For-Sale [Member]
|
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Realized gains (losses) recorded in earnings | $ 5 | $ 3 |
Unrealized gains (losses) recorded in earnings | 0 | 0 |
Investment Securities Available-For-Sale [Member] | Auction-Rate Preferred Securities [Member]
|
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Realized gains (losses) recorded in earnings | 5 | 3 |
Unrealized gains (losses) recorded in earnings | 0 | 0 |
Warrants [Member]
|
||
Realized gains (losses) recorded in earnings | 1 | 2 |
Unrealized gains (losses) recorded in earnings | 0 | 1 |
Other Derivative Liabilities [Member]
|
||
Realized gains (losses) recorded in earnings | 0 | 0 |
Unrealized gains (losses) recorded in earnings | (1) | |
Net Securities Gains (Losses) [Member] | Investment Securities Available-For-Sale [Member] | Auction-Rate Preferred Securities [Member]
|
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Realized gains (losses) recorded in earnings | 5 | 3 |
Unrealized gains (losses) recorded in earnings | 0 | 0 |
Net Securities Gains (Losses) [Member] | Warrants [Member]
|
||
Realized gains (losses) recorded in earnings | 0 | 0 |
Unrealized gains (losses) recorded in earnings | 0 | 0 |
Net Securities Gains (Losses) [Member] | Other Derivative Liabilities [Member]
|
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Realized gains (losses) recorded in earnings | 0 | |
Unrealized gains (losses) recorded in earnings | (1) | |
Other Noninterest Income Member | Investment Securities Available-For-Sale [Member] | Auction-Rate Preferred Securities [Member]
|
||
Realized gains (losses) recorded in earnings | 0 | 0 |
Unrealized gains (losses) recorded in earnings | 0 | 0 |
Other Noninterest Income Member | Warrants [Member]
|
||
Realized gains (losses) recorded in earnings | 1 | 2 |
Unrealized gains (losses) recorded in earnings | 0 | 1 |
Other Noninterest Income Member | Other Derivative Liabilities [Member]
|
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Realized gains (losses) recorded in earnings | 0 | |
Unrealized gains (losses) recorded in earnings | $ 0 |
Credit Quality And Allowance For Credit Losses (Individually Evaluated Impaired Loans) (Details) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
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Total individually evaluated impaired loans | $ 752 | $ 771 | ||||||
Unpaid principal balance | 1,076 | 1,078 | ||||||
Related allowance for loan losses | 144 | 153 | ||||||
Business loans
|
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Total individually evaluated impaired loans | 702 | 719 | ||||||
Unpaid principal balance | 1,016 | 1,014 | ||||||
Related allowance for loan losses | 143 | 149 | ||||||
Business loans | Commercial
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Total individually evaluated impaired loans | 227 | 246 | ||||||
Unpaid principal balance | 345 | 348 | ||||||
Related allowance for loan losses | 51 | 57 | ||||||
Business loans | Real estate construction
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Total individually evaluated impaired loans | 73 | 107 | ||||||
Unpaid principal balance | 108 | 153 | ||||||
Related allowance for loan losses | 12 | 19 | ||||||
Business loans | Real estate construction | Commercial real estate business line
|
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Total individually evaluated impaired loans | 68 | [1] | 102 | [1] | ||||
Unpaid principal balance | 101 | [1] | 146 | [1] | ||||
Related allowance for loan losses | 10 | [1] | 18 | [1] | ||||
Business loans | Real estate construction | Other business lines
|
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Total individually evaluated impaired loans | 5 | [2] | 5 | [2] | ||||
Unpaid principal balance | 7 | [2] | 7 | [2] | ||||
Related allowance for loan losses | 2 | [2] | 1 | [2] | ||||
Business loans | Commercial mortgage
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Total individually evaluated impaired loans | 395 | 355 | ||||||
Unpaid principal balance | 553 | 497 | ||||||
Related allowance for loan losses | 78 | 70 | ||||||
Business loans | Commercial mortgage | Commercial real estate business line
|
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Total individually evaluated impaired loans | 178 | [1] | 148 | [1] | ||||
Unpaid principal balance | 240 | [1] | 198 | [1] | ||||
Related allowance for loan losses | 36 | [1] | 34 | [1] | ||||
Business loans | Commercial mortgage | Other business lines
|
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Total individually evaluated impaired loans | 217 | [2] | 207 | [2] | ||||
Unpaid principal balance | 313 | [2] | 299 | [2] | ||||
Related allowance for loan losses | 42 | [2] | 36 | [2] | ||||
Business loans | Lease Financing
|
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Total individually evaluated impaired loans | 3 | 3 | ||||||
Unpaid principal balance | 6 | 6 | ||||||
Related allowance for loan losses | 1 | 1 | ||||||
Business loans | International
|
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Total individually evaluated impaired loans | 4 | 8 | ||||||
Unpaid principal balance | 4 | 10 | ||||||
Related allowance for loan losses | 1 | 2 | ||||||
Retail Loans
|
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Total individually evaluated impaired loans | 50 | 52 | ||||||
Unpaid principal balance | 60 | 64 | ||||||
Related allowance for loan losses | 1 | 4 | ||||||
Retail Loans | Residential mortgage
|
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Total individually evaluated impaired loans | 42 | 46 | ||||||
Unpaid principal balance | 45 | 51 | ||||||
Related allowance for loan losses | 1 | 3 | ||||||
Retail Loans | Consumer
|
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Total individually evaluated impaired loans | 8 | 6 | ||||||
Unpaid principal balance | 15 | 13 | ||||||
Related allowance for loan losses | 0 | 1 | ||||||
Retail Loans | Consumer | Home equity
|
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Total individually evaluated impaired loans | 5 | 1 | ||||||
Unpaid principal balance | 6 | 1 | ||||||
Related allowance for loan losses | 0 | 0 | ||||||
Retail Loans | Consumer | Other consumer
|
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Total individually evaluated impaired loans | 3 | 5 | ||||||
Unpaid principal balance | 9 | 12 | ||||||
Related allowance for loan losses | 0 | 1 | ||||||
Impaired Loans with Related Allowance
|
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Total individually evaluated impaired loans | 725 | 747 | ||||||
Impaired Loans with Related Allowance | Business loans
|
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Total individually evaluated impaired loans | 694 | 711 | ||||||
Impaired Loans with Related Allowance | Business loans | Commercial
|
||||||||
Total individually evaluated impaired loans | 227 | 244 | ||||||
Impaired Loans with Related Allowance | Business loans | Real estate construction
|
||||||||
Total individually evaluated impaired loans | 73 | 107 | ||||||
Impaired Loans with Related Allowance | Business loans | Real estate construction | Commercial real estate business line
|
||||||||
Total individually evaluated impaired loans | 68 | [1] | 102 | [1] | ||||
Impaired Loans with Related Allowance | Business loans | Real estate construction | Other business lines
|
||||||||
Total individually evaluated impaired loans | 5 | [2] | 5 | [2] | ||||
Impaired Loans with Related Allowance | Business loans | Commercial mortgage
|
||||||||
Total individually evaluated impaired loans | 387 | 349 | ||||||
Impaired Loans with Related Allowance | Business loans | Commercial mortgage | Commercial real estate business line
|
||||||||
Total individually evaluated impaired loans | 175 | [1] | 148 | [1] | ||||
Impaired Loans with Related Allowance | Business loans | Commercial mortgage | Other business lines
|
||||||||
Total individually evaluated impaired loans | 212 | [2] | 201 | [2] | ||||
Impaired Loans with Related Allowance | Business loans | Lease Financing
|
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Total individually evaluated impaired loans | 3 | 3 | ||||||
Impaired Loans with Related Allowance | Business loans | International
|
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Total individually evaluated impaired loans | 4 | 8 | ||||||
Impaired Loans with Related Allowance | Retail Loans
|
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Total individually evaluated impaired loans | 31 | 36 | ||||||
Impaired Loans with Related Allowance | Retail Loans | Residential mortgage
|
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Total individually evaluated impaired loans | 26 | 30 | ||||||
Impaired Loans with Related Allowance | Retail Loans | Consumer
|
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Total individually evaluated impaired loans | 5 | 6 | ||||||
Impaired Loans with Related Allowance | Retail Loans | Consumer | Home equity
|
||||||||
Total individually evaluated impaired loans | 2 | 1 | ||||||
Impaired Loans with Related Allowance | Retail Loans | Consumer | Other consumer
|
||||||||
Total individually evaluated impaired loans | 3 | 5 | ||||||
Impaired Loans with No Related Allowance
|
||||||||
Total individually evaluated impaired loans | 27 | 24 | ||||||
Impaired Loans with No Related Allowance | Business loans
|
||||||||
Total individually evaluated impaired loans | 8 | 8 | ||||||
Impaired Loans with No Related Allowance | Business loans | Commercial
|
||||||||
Total individually evaluated impaired loans | 0 | 2 | ||||||
Impaired Loans with No Related Allowance | Business loans | Real estate construction
|
||||||||
Total individually evaluated impaired loans | 0 | 0 | ||||||
Impaired Loans with No Related Allowance | Business loans | Real estate construction | Commercial real estate business line
|
||||||||
Total individually evaluated impaired loans | 0 | [1] | 0 | [1] | ||||
Impaired Loans with No Related Allowance | Business loans | Real estate construction | Other business lines
|
||||||||
Total individually evaluated impaired loans | 0 | [2] | 0 | [2] | ||||
Impaired Loans with No Related Allowance | Business loans | Commercial mortgage
|
||||||||
Total individually evaluated impaired loans | 8 | 6 | ||||||
Impaired Loans with No Related Allowance | Business loans | Commercial mortgage | Commercial real estate business line
|
||||||||
Total individually evaluated impaired loans | 3 | [1] | 0 | [1] | ||||
Impaired Loans with No Related Allowance | Business loans | Commercial mortgage | Other business lines
|
||||||||
Total individually evaluated impaired loans | 5 | [2] | 6 | [2] | ||||
Impaired Loans with No Related Allowance | Business loans | Lease Financing
|
||||||||
Total individually evaluated impaired loans | 0 | 0 | ||||||
Impaired Loans with No Related Allowance | Business loans | International
|
||||||||
Total individually evaluated impaired loans | 0 | 0 | ||||||
Impaired Loans with No Related Allowance | Retail Loans
|
||||||||
Total individually evaluated impaired loans | 19 | 16 | ||||||
Impaired Loans with No Related Allowance | Retail Loans | Residential mortgage
|
||||||||
Total individually evaluated impaired loans | 16 | 16 | ||||||
Impaired Loans with No Related Allowance | Retail Loans | Consumer
|
||||||||
Total individually evaluated impaired loans | 3 | 0 | ||||||
Impaired Loans with No Related Allowance | Retail Loans | Consumer | Home equity
|
||||||||
Total individually evaluated impaired loans | 3 | 0 | ||||||
Impaired Loans with No Related Allowance | Retail Loans | Consumer | Other consumer
|
||||||||
Total individually evaluated impaired loans | $ 0 | $ 0 | ||||||
|
Medium- And Long-Term Debt (Narrative) (Details) (USD $)
|
1 Months Ended | 0 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|---|
Jul. 31, 2011
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Jul. 28, 2011
|
Jan. 07, 2012
3-Month LIBOR Plus 3.10% [Member]
|
Mar. 31, 2012
3-Month LIBOR Plus 1.60% [Member]
|
|
Business acquisition date | July 28, 2011 | |||||
Subordinated notes related to preferred securities | $ 30,000,000 | $ 83,000,000 | $ 26,000,000 | |||
Extinguishment of Debt, Amount | 4,000,000 | |||||
Debt Instrument Original Maturity Date | July 7, 2033 | June 15, 2037 | ||||
Blanket lien, real-estate related loans | $ 15,000,000,000 |
Derivative And Credit-Related Financial Instruments (Schedule Of Weighted Average Maturity And Interest Rates On Risk Management Interest Rate Swaps) (Details) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
||||||
---|---|---|---|---|---|---|---|---|
Notional Amount | $ 19,319 | [1] | $ 17,723 | [1] | ||||
Risk Management Purposes [Member]
|
||||||||
Notional Amount | 1,751 | [1] | 1,679 | [1] | ||||
Swaps - Fair Value Hedge - Receive Fixed/Pay Floating [Member] | Risk Management Purposes [Member] | Interest Rate Contracts [Member] | Medium- and Long-Term Debt Designation [Member]
|
||||||||
Notional Amount | $ 1,450 | $ 1,450 | ||||||
Weighted Average Remaining Maturity (in years) | 5.2 | 5.4 | ||||||
Weighted Average Receive Rate | 5.45% | 5.45% | ||||||
Weighted Average Pay Rate | 0.72% | [2] | 0.60% | [2] | ||||
|
Credit Quality And Allowance For Credit Losses (Schedule Of Nonaccrual, Reduced-Rate Loans And Foreclosed Property) (Details) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
||||
---|---|---|---|---|---|---|
Nonaccrual loans | $ 830 | $ 860 | ||||
Reduced-rate loans | 26 | [1] | 27 | [1] | ||
Total nonperforming loans | 856 | 887 | ||||
Foreclosed property | 67 | 94 | ||||
Total nonperforming assets | 923 | 981 | ||||
Business loans
|
||||||
Nonaccrual loans | 747 | 778 | ||||
Reduced-rate loans | 7 | 8 | ||||
Retail Loans
|
||||||
Nonaccrual loans | 83 | 82 | ||||
Reduced-rate loans | $ 19 | $ 19 | ||||
|
Fair Value Measurements
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, the Corporation uses present value techniques and other valuation methods to estimate the fair values of its financial instruments. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. Fair value is an estimate of the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (i.e., not a forced transaction, such as a liquidation or distressed sale) between market participants at the measurement date. However, the calculated fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases, may not be realizable in a current sale of the financial instrument. Trading securities, investment securities available-for-sale, derivatives and deferred compensation plan liabilities are recorded at fair value on a recurring basis. Additionally, from time to time, the Corporation may be required to record other assets and liabilities at fair value on a nonrecurring basis, such as impaired loans, other real estate (primarily foreclosed property), nonmarketable equity securities and certain other assets and liabilities. These nonrecurring fair value adjustments typically involve write-downs of individual assets or application of lower of cost or fair value accounting. The Corporation categorizes assets and liabilities recorded at fair value on a recurring or nonrecurring basis and the estimated fair value of financial instruments not recorded at fair value on a recurring basis into a three-level hierarchy, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.
The Corporation generally utilizes third-party pricing services to value Level 1 and Level 2 trading and investment securities, as well as certain derivatives designated as fair value hedges. Management reviews the methodologies and assumptions used by the third-party pricing services and evaluates the values provided, principally by comparison with other available market quotes for similar instruments and/or analysis based on internal models using available third-party market data. The Corporation may occasionally adjust certain values provided by the third-party pricing service when management believes, as the result of its review, that the adjusted price most appropriately reflects the fair value of the particular security. Following are descriptions of the valuation methodologies and key inputs used to measure financial assets and liabilities recorded at fair value, as well as a description of the methods and significant assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. The descriptions include an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Transfers of assets or liabilities between levels of the fair value hierarchy are recognized at the beginning of the reporting period, when applicable. Cash and due from banks, federal funds sold and interest-bearing deposits with banks Due to their short-term nature, the carrying amount of these instruments approximates the estimated fair value. As such, the Corporation classifies the estimated fair value of these instruments as Level 1. Trading securities and associated deferred compensation plan liabilities Securities held for trading purposes and associated deferred compensation plan liabilities are recorded at fair value on a recurring basis and included in “other short-term investments” and “accrued expenses and other liabilities,” respectively, on the consolidated balance sheets. Level 1 securities held for trading purposes include assets related to employee deferred compensation plans, which are invested in mutual funds, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and other securities traded on an active exchange, such as the New York Stock Exchange. Deferred compensation plan liabilities represent the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets. Level 2 trading securities include municipal bonds and residential mortgage-backed securities issued by U.S. government-sponsored entities and corporate debt securities. Securities classified as Level 3 include securities in less liquid markets and securities not rated by a credit agency. The methods used to value trading securities are the same as the methods used to value investment securities available-for-sale, discussed below. Loans held-for-sale Loans held-for-sale, included in “other short-term investments” on the consolidated balance sheets, are recorded at the lower of cost or fair value. Loans held-for-sale may be carried at fair value on a nonrecurring basis when fair value is less than cost. The fair value is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Corporation classifies both loans held-for-sale subjected to nonrecurring fair value adjustments and the estimated fair value of loans held-for sale as Level 2. Investment securities available-for-sale Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available or the market is deemed to be inactive at the measurement date, an adjustment to the quoted prices may be necessary. In some circumstances, the Corporation may conclude that a change in valuation technique or the use of multiple valuation techniques may be appropriate to estimate an instrument's fair value. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include residential mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored entities and corporate debt securities. The fair value of Level 2 securities was determined using quoted prices of securities with similar characteristics, or pricing models based on observable market data inputs, primarily interest rates, spreads and prepayment information. Securities classified as Level 3, of which the substantial majority is auction-rate securities, represent securities in less liquid markets requiring significant management assumptions when determining fair value. Due to the lack of a robust secondary auction-rate securities market with active fair value indicators, fair value for all periods presented was determined using an income approach based on a discounted cash flow model. The discounted cash flow model utilizes two significant inputs: discount rate and workout period. The discount rate was calculated using credit spreads of the underlying collateral or similar securities plus a liquidity risk premium. The liquidity risk premium was derived from observed liquidity premiums based on auction-rate securities valuations performed by third parties and incorporated the rate at which the various types of similar auction-rate securities had been redeemed or sold since acquisition in 2008. The workout period was based on an assessment of publicly available information on efforts to re-establish functioning markets for these securities and the Corporation's own redemption experience. As of March 31, 2012, approximately 72 percent of the aggregate auction-rate securities par value had been redeemed or sold since acquisition. Significant increases in any of these inputs in isolation would result in a significantly lower fair value. Additionally, as the discount rate incorporates the liquidity risk premium, a change in an assumption used for the liquidity risk premium would be accompanied by a directionally similar change in the discount rate. On an annual basis, an independent third party verifies the fair value by reviewing the appropriateness of the discounted cash flow model and its significant inputs. Loans The Corporation does not record loans at fair value on a recurring basis. However, periodically, the Corporation records nonrecurring adjustments to the carrying value of loans based on fair value measurements. Loans for which it is probable that payment of interest or principal will not be made in accordance with the contractual terms of the original loan agreement are considered impaired, which are reported as nonrecurring fair value measurements when a specific allowance for the impaired loan is established based on the fair value of collateral. Collateral values supporting individually evaluated impaired loans are evaluated quarterly. When management determines that the fair value of the collateral requires additional adjustments, either as a result of non-current appraisal value or when there is no observable market price, the Corporation classifies the impaired loan as Level 3. The Corporation provides fair value estimates for loans not recorded at fair value. The estimated fair value is determined based on characteristics such as loan category, repricing features and remaining maturity, and includes prepayment and credit loss estimates. For variable rate business loans that reprice frequently, the estimated fair value is based on carrying values adjusted for estimated credit losses inherent in the portfolio at the balance sheet date. For other business loans and retail loans, fair values are estimated using a discounted cash flow model that employs a discount rate that reflect the Corporation's current pricing for loans with similar characteristics and remaining maturity, adjusted by an amount for estimated credit losses inherent in the portfolio at the balance sheet date. The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Corporation classifies the estimated fair value of loans held for investment as Level 3. Customers’ liability on acceptances outstanding and acceptances outstanding The carrying amount of these instruments approximates the estimated fair value, due to their short-term nature. As such, the Corporation classifies the estimated fair value of these instruments as Level 1. Derivative assets and derivative liabilities Derivative instruments held or issued for risk management or customer-initiated activities are traded in over-the-counter markets where quoted market prices are not readily available. Fair value for over-the-counter derivative instruments is measured on a recurring basis using internally developed models that use primarily market observable inputs, such as yield curves and option volatilities. The Corporation manages credit risk for its over-the-counter derivative positions on a counterparty-by-counterparty basis and calculates credit valuation adjustments, included in the fair value of these instruments, on the basis of its relationships at the counterparty portfolio/master netting agreement level. These credit valuation adjustments are determined by applying a credit spread for the counterparty or the Corporation, as appropriate, to the total expected exposure of the derivative after considering collateral and other master netting arrangements. These adjustments, which are considered Level 3 inputs, are based on estimates of current credit spreads to evaluate the likelihood of default. The Corporation assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Corporation classifies its over-the-counter derivative valuations in Level 2 of the fair value hierarchy. Examples of Level 2 derivative instruments are interest rate swaps and energy derivative and foreign exchange contracts. The Corporation holds a portfolio of warrants for generally nonmarketable equity securities. These warrants are primarily from high technology, non-public companies obtained as part of the loan origination process. Warrants which contain a net exercise provision or a non-contingent put right embedded in the warrant agreement are accounted for as derivatives and recorded at fair value on a recurring basis using a Black-Scholes valuation model. The Black-Scholes valuation model utilizes five inputs: risk-free rate, expected life, volatility, exercise price, and the per share market value of the underlying company. Significant increases in any of these inputs in isolation, with the exception of exercise price, would result in a significantly higher fair value. Significant increases in exercise price in isolation would result in a significantly lower fair value. The Corporation classifies warrants accounted for as derivatives as Level 3. The Corporation also holds a derivative contract associated with the 2008 sale of its remaining ownership of Visa Inc. (Visa) Class B shares. Under the terms of the derivative contract, the Corporation will compensate the counterparty primarily for dilutive adjustments made to the conversion factor of the Visa Class B to Class A shares based on the ultimate outcome of litigation involving Visa. Conversely, the Corporation will be compensated by the counterparty for any increase in the conversion factor from anti-dilutive adjustments. The recurring fair value of the derivative contract is based on unobservable inputs consisting of management's estimate of the litigation outcome, timing of litigation settlements and payments related to the derivative. Significant increases in the estimate of litigation outcome and the timing of litigation settlements in isolation would result in a significantly higher liability fair value. Significant increases in payments related to the derivative in isolation would result in a significantly lower liability fair value. The Corporation classifies the derivative liability as Level 3. Nonmarketable equity securities The Corporation has a portfolio of indirect (through funds) private equity and venture capital investments. These funds generally cannot be redeemed and the majority are not readily marketable. Distributions from these funds are received by the Corporation as a result of the liquidation of underlying investments of the funds and/or as income distributions. It is estimated that the underlying assets of the funds will be liquidated over a period of up to 15 years. The value of these investments is at risk to changes in equity markets, general economic conditions and a variety of other factors. The investments are accounted for on the cost or equity method and are individually reviewed for impairment on a quarterly basis by comparing the carrying value to the estimated fair value. These investments may be carried at fair value on a nonrecurring basis when they are deemed to be impaired and written down to fair value. Where there is not a readily determinable fair value, the Corporation estimates fair value for indirect private equity and venture capital investments based on the Corporation's percentage ownership in the net asset value of the entire fund, as reported by the fund, after indication that the fund adheres to applicable fair value measurement guidance. For those funds where the net asset value is not reported by the fund, the Corporation derives the fair value of the fund by estimating the fair value of each underlying investment in the fund. In addition to using qualitative information about each underlying investment, as provided by the fund, the Corporation gives consideration to information pertinent to the specific nature of the debt or equity investment, such as relevant market conditions, offering prices, operating results, financial conditions, exit strategy and other qualitative information, as available. The lack of an independent source to validate fair value estimates, including the impact of future capital calls and transfer restrictions, is an inherent limitation in the valuation process. The Corporation classifies both nonmarketable equity securities subjected to nonrecurring fair value adjustments and the estimated fair value of nonmarketable equity securities not recorded at fair value in their entirety on a recurring basis as Level 3. Commitments to fund additional investments in nonmarketable equity securities recorded at fair value on a nonrecurring basis were $2 million and $1 million at March 31, 2012 and December 31, 2011, respectively. The Corporation also holds restricted equity investments, primarily Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock. Restricted equity securities are not readily marketable and are recorded at cost (par value) and evaluated for impairment based on the ultimate recoverability of the par value. No significant observable market data for these instruments is available. The Corporation considers the profitability and asset quality of the issuer, dividend payment history and recent redemption experience, when determining the ultimate recoverability of the par value. The Corporation’s investment in FHLB stock totaled $92 million and its investment in FRB stock totaled $85 million at both March 31, 2012 and December 31, 2011, respectively. The Corporation believes its investments in FHLB and FRB stock are ultimately recoverable at par. Other real estate Other real estate is included in “accrued income and other assets” on the consolidated balance sheets and includes primarily foreclosed property. Foreclosed property is initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequently, foreclosed property is carried at the lower of cost or fair value, less costs to sell. Other real estate may be carried at fair value on a nonrecurring basis when fair value is less than cost. Fair value is based upon independent market prices, appraised value or management's estimate of the value of the property. Throughout each quarter, the Corporation obtains updated independent market prices and appraised values as are required by state regulation or as are deemed necessary based on market conditions and determines if additional write-downs are necessary. On a quarterly basis, senior management reviews all other real estate and determines whether the carrying values are reasonable, based on collateral values and other current market factors. Other real estate carried at fair value based on an observable market price or a current appraised value is classified by the Corporation as Level 2. When management determines that the fair value of other real estate requires additional adjustments, either as a result of a non-current appraisal or when there is no observable market price, the Corporation classifies the other real estate as Level 3. Loan servicing rights Loan servicing rights, included in “accrued income and other assets” on the consolidated balance sheets and primarily related to Small Business Administration loans, are subject to impairment testing. Loan servicing rights may be carried at fair value on a nonrecurring basis when impairment testing indicates that the fair value of the loan servicing rights is less than the recorded value. A valuation model is used for impairment testing on a quarterly basis, which utilizes a discounted cash flow model, using interest rates and prepayment speed assumptions currently quoted for comparable instruments and a discount rate determined by management. If the valuation model reflects a value less than the carrying value, loan servicing rights are adjusted to fair value through a valuation allowance as determined by the model. As such, the Corporation classifies loan servicing rights as Level 3. Deposit liabilities The estimated fair value of checking, savings and certain money market deposit accounts is represented by the amounts payable on demand. The estimated fair value of term deposits is calculated by discounting the scheduled cash flows using the period-end rates offered on these instruments. As such, the Corporation classifies the estimated fair value of deposit liabilities as Level 2. Short-term borrowings The carrying amount of federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings approximates the estimated fair value. As such, the Corporation classifies the estimated fair value of short-term borrowings as Level 1. Medium- and long-term debt The carrying value of variable-rate FHLB advances approximates the estimated fair value. The estimated fair value of the Corporation's remaining variable- and fixed-rate medium- and long-term debt is based on quoted market values when available. If quoted market values are not available, the estimated fair value is based on the market values of debt with similar characteristics. The Corporation classifies the estimated fair value of medium- and long-term debt as Level 2. Credit-related financial instruments Credit-related financial instruments include unused commitments to extend credit and standby and commercial letters of credit. These instruments generate ongoing fees which are recognized over the term of the commitment. In situations where credit losses are probable, the Corporation records an allowance. The carrying value of these instruments, which includes the carrying value of the deferred fees plus the related allowance, approximates the estimated fair value. The Corporation classifies the estimated fair value of credit-related financial instruments as Level 3. ASSETS AND LIABLILITIES RECORDED AT FAIR VALUE ON A RECURRING BASIS The following tables present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2012 and December 31, 2011.
There were no transfers of assets or liabilities recorded at fair value on a recurring basis into or out of Level 1, Level 2 and Level 3 fair value measurements during the three-month periods ended March 31, 2012 and 2011. The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three-month periods ended March 31, 2012 and 2011.
The following table presents the income statement classification of realized and unrealized gains and losses due to changes in fair value recorded in earnings for the three months ended March 31, 2012 and 2011 for recurring Level 3 assets and liabilities, as shown in the previous table.
ASSETS AND LIABILITIES RECORDED AT FAIR VALUE ON A NONRECURRING BASIS The Corporation may be required, from time to time, to record certain assets and liabilities at fair value on a nonrecurring basis. These include assets that are recorded at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. Assets recorded at fair value on a nonrecurring basis are presented in the following table. No liabilities were recorded at fair value on a nonrecurring basis at March 31, 2012 and December 31, 2011.
The following table presents quantitative information related to the significant unobservable inputs utilized in the Corporation's Level 3 recurring fair value measurements as of March 31, 2012. No liabilities were recorded as Level 3 at March 31, 2012.
Level 3 assets recorded at fair value on a nonrecurring basis at March 31, 2012 included loans for which a specific allowance was established based on the fair value of collateral and other real estate for which fair value of the properties was less than the cost basis. For both asset classes, the unobservable inputs were the additional adjustments applied by management to the appraised values to reflect such factors as non-current appraisals and revisions to estimated time to sell. These adjustments are determined based on qualitative judgments made by management on a case-by-case basis and are not quantifiable inputs, although they are used in the determination of fair value. ESTIMATED FAIR VALUES OF FINANCIAL INSTRUMENTS NOT RECORDED AT FAIR VALUE ON A RECURRING BASIS The Corporation typically holds the majority of its financial instruments until maturity and thus does not expect to realize many of the estimated fair value amounts disclosed. The disclosures also do not include estimated fair value amounts for items that are not defined as financial instruments, but which have significant value. These include such items as core deposit intangibles, the future earnings potential of significant customer relationships and the value of trust operations and other fee generating businesses. The Corporation believes the imprecision of an estimate could be significant. The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis on the Corporation’s consolidated balance sheets are as follows:
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Derivative And Credit-Related Financial Instruments (Schedule Of Net Gains Recognized In Income On Customer-Initiated Derivatives) (Details) (Not Designated as Hedging Instrument [Member], Customer-Initiated And Other Activities [Member], USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
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Mar. 31, 2012
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Mar. 31, 2011
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Total | $ 12 | $ 14 |
Interest Rate Contracts [Member] | Other Noninterest Income [Member]
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Total | 2 | 6 |
Energy Contracts [Member] | Other Noninterest Income [Member]
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Total | 1 | 0 |
Foreign Exchange Contracts [Member] | Foreign Exchange Income [Member]
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Total | $ 9 | $ 8 |