Derivative And Credit-Related Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2018

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 September 30, 2018 and December 31, 2017. The table excludes commitments and warrants accounted for as derivatives.



	September 30, 2018								December 31, 2017
			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	$	2,625	$	—		$	3		$	1,775	$	—		$	2
Derivatives used as economic hedges
Foreign exchange contracts:
Spot, forwards and swaps	328		1			—			650		—			2
Total risk management purposes	2,953		1			3			2,425		—			4
Customer-initiated and other activities
Interest rate contracts:
Caps and floors written	799		—			2			635		—			—
Caps and floors purchased	799		2			—			635		—			—
Swaps	12,770		29			126			13,119		57			57
Total interest rate contracts	14,368		31			128			14,389		57			57
Energy contracts:
Caps and floors written	258		—			21			164		—			11
Caps and floors purchased	258		21			—			164		11			—
Swaps	2,079		198			198			1,519		82			80
Total energy contracts	2,595		219			219			1,847		93			91
Foreign exchange contracts:
Spot, forwards, options and swaps	1,974		16			14			1,884		42			38
Total customer-initiated and other activities	18,937		266			361			18,120		192			186
Total gross derivatives	$	21,890	$	267		$	364		$	20,545	$	192		$	190
Amounts offset in the Consolidated Balance Sheets:
Netting adjustment - Offsetting derivative assets/liabilities			(42		)	(42		)			(49		)	(49		)
Netting adjustment - Cash collateral received/posted			(6		)	(173		)			(1		)	(39		)
Net derivatives included in the Consolidated Balance Sheets (b)			219			149					142			102
Amounts not offset in the Consolidated Balance Sheets:
Marketable securities pledged under bilateral collateral agreements			(10		)	(8		)			(3		)	(24		)
Net derivatives after deducting amounts not offset in the Consolidated Balance Sheets			$	209		$	141				$	139		$	78


(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)

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 $3 million and $4 million at September 30, 2018 and December 31, 2017, respectively.

Schedule of the Effects of Fair Value Hedging on the Consolidated Statements of Comprehensive Income

The following table details the effects of fair value hedging on the Consolidated Statements of Comprehensive Income.



	Interest on Medium- and Long-Term Debt
	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2018			2017			2018			2017
Total interest on medium-and long-term debt (a)	$	40		$	19		$	97		$	56

Fair value hedging relationships:
Interest rate contracts:
Hedged items	21			19			51			64
Derivatives designated as hedging instruments	(1		)	(7		)	(7		)	(27		)

(a) Includes the effects of hedging.

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, the carrying amount of the related hedged items and the weighted average interest rates associated with amounts expected to be received or paid on interest rate swap agreements as of September 30, 2018 and December 31, 2017.



					Weighted Average
(dollar amounts in millions)	Derivative Notional Amount		Carrying Value of Hedged Items (a)		Remaining Maturity (in years)	Receive Rate		Pay Rate (b)
September 30, 2018
Swaps - fair value - receive fixed/pay floating rate
Medium- and long-term debt	$	2,625	$	2,618	4.2	3.40	%	3.20	%
December 31, 2017
Swaps - fair value - receive fixed/pay floating rate
Medium- and long-term debt	1,775		1,822		4.6	3.26		2.35


(a)	Included $5 million and $56 million of cumulative hedging adjustments at September 30, 2018 and December 31, 2017, respectively, which included $8 million and $9 million, respectively, of hedging adjustment on a discontinued hedging relationship.


(b)	Variable rates paid on receive fixed swaps are based on one- and six-month LIBOR rates in effect at September 30, 2018 and six-month LIBOR rates in effect at December 31, 2017

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.



		Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	Location of Gain	2018		2017		2018		2017
Interest rate contracts	Other noninterest income	$	9	$	5	$	20	$	18
Energy contracts	Other noninterest income	1		1		1		2
Foreign exchange contracts	Foreign exchange income	11		11		35		33
Total		$	21	$	17	$	56	$	53

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)	September 30, 2018		December 31, 2017
Unused commitments to extend credit:
Commercial and other	$	23,591	$	22,636
Bankcard, revolving check credit and home equity loan commitments	2,990		2,833
Total unused commitments to extend credit	$	26,581	$	25,469
Standby letters of credit	$	3,228	$	3,228
Commercial letters of credit	34		39

Summary Of Criticized Letters Of Credit

The following table presents a summary of criticized standby and commercial letters of credit at September 30, 2018 and December 31, 2017. The Corporation's criticized list is generally 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)	September 30, 2018			December 31, 2017
Total criticized standby and commercial letters of credit	$	73		$	88
As a percentage of total outstanding standby and commercial letters of credit	2.2		%	2.7		%