Derivative And Credit-Related Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table presents the composition of the Corporation’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and other activities at December 31, 2017 and 2016. The table excludes commitments and warrants accounted for as derivatives.



	December 31, 2017								December 31, 2016
			Fair Value								Fair Value
(in millions)	Notional/ Contract Amount (a)		Gross Derivative Assets			Gross Derivative Liabilities			Notional/ Contract Amount (a)		Gross Derivative Assets			Gross Derivative Liabilities
Risk management purposes
Derivatives designated as hedging instruments
Interest rate contracts:
Swaps - fair value - receive fixed/pay floating (b)	$	1,775	$	—		$	2		$	2,275	$	92		$	4
Derivatives used as economic hedges
Foreign exchange contracts:
Spot, forwards and swaps	650		—			2			717		2			2
Total risk management purposes	2,425		—			4			2,992		94			6
Customer-initiated and other activities
Interest rate contracts:
Caps and floors written	635		—			—			436		—			1
Caps and floors purchased	635		—			—			436		1			—
Swaps (b)	13,119		57			57			12,451		130			76
Total interest rate contracts	14,389		57			57			13,323		131			77
Energy contracts:
Caps and floors written	164		—			11			419		1			31
Caps and floors purchased	164		11			—			419		31			1
Swaps	1,519		82			80			1,389		114			112
Total energy contracts	1,847		93			91			2,227		146			144
Foreign exchange contracts:
Spot, forwards, options and swaps	1,884		42			38			1,509		36			27
Total customer-initiated and other activities	18,120		192			186			17,059		313			248
Total gross derivatives	$	20,545	192			190			$	20,051	407			254
Amounts offset in the consolidated balance sheets:
Netting adjustment - Offsetting derivative assets/liabilities			(49		)	(49		)			(84		)	(84		)
Netting adjustment - Cash collateral received/posted			(1		)	(39		)			(47		)	(45		)
Net derivatives included in the consolidated balance sheets (c)			142			102					276			125
Amounts not offset in the consolidated balance sheets:
Marketable securities received/pledged under bilateral collateral agreements			(3		)	(24		)			(19		)	(8		)
Net derivatives after deducting amounts not offset in the consolidated balance sheets			$	139		$	78				$	257		$	117


(a)	Notional or contractual 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.


(b)	Due to clearinghouse rule changes, beginning January 1, 2017, variation margin payments are treated as settlements of derivative exposure rather than as collateral. As a result, these payments are now considered in determining the fair value of centrally cleared derivatives, resulting in centrally cleared derivatives having a fair value of approximately zero.

(c)

Net derivative assets are included in “accrued income and other assets” and net derivative liabilities are included in “accrued expenses and other liabilities” on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and credit risk of the Corporation. The fair value of net derivative assets included credit valuation adjustments for counterparty credit risk of $4 million and $5 million at December 31, 2017 and 2016, respectively.

Schedule Of Weighted Average Maturity And Interest Rates On Risk Management Interest Rate Swaps

The following table summarizes the expected weighted average remaining maturity of the notional amount of risk management interest rate swaps and the weighted average interest rates associated with amounts expected to be received or paid on interest rate swap agreements as of December 31, 2017 and 2016.



			Weighted Average
(dollar amounts in millions)	Notional Amount		Remaining Maturity (in years)	Receive Rate		Pay Rate (a)
December 31, 2017
Swaps - fair value - receive fixed/pay floating rate
Medium- and long-term debt designation	$	1,775	4.6	3.26	%	2.35	%
December 31, 2016
Swaps - fair value - receive fixed/pay floating rate
Medium- and long-term debt designation	2,275		4.5	3.69		1.80


(a)	Variable rates paid on receive fixed swaps are based on six-month LIBOR rates in effect at December 31, 2017 and 2016.

Schedule Of Net Gains Recognized In Income On Customer-Initiated Derivatives

The net gains recognized in income on customer-initiated derivative instruments, net of the impact of offsetting positions, were as follows:



(in millions)
Years Ended December 31	Location of Gain	2017		2016
Interest rate contracts	Other noninterest income	$	24	$	25
Energy contracts	Other noninterest income	2		2
Foreign exchange contracts	Foreign exchange income	45		41
Total		$	71	$	68

Schedule Of Financial Instruments With Off-Balance Sheet Credit Risk

The Corporation’s credit risk associated with these instruments is represented by the contractual amounts indicated in the following table.



(in millions)
December 31	2017		2016
Unused commitments to extend credit:
Commercial and other	$	22,636	$	24,333
Bankcard, revolving check credit and home equity loan commitments	2,833		2,658
Total unused commitments to extend credit	$	25,469	$	26,991
Standby letters of credit	$	3,228	$	3,623
Commercial letters of credit	39		46

Summary Of Criticized Letters Of Credit

The following table presents a summary of criticized standby and commercial letters of credit at December 31, 2017 and December 31, 2016. The Corporation's criticized list is consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities. The Corporation manages credit risk through underwriting, periodically reviewing and approving its credit exposures using Board committee approved credit policies and guidelines.



(dollar amounts in millions)	December 31, 2017			December 31, 2016
Total criticized standby and commercial letters of credit	$	88		$	135
As a percentage of total outstanding standby and commercial letters of credit	2.7		%	3.7		%