Derivative And Credit-Related Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018. The table excludes commitments and warrants accounted for as derivatives.



	December 31, 2019								December 31, 2018
			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	$	3,325	$	—		$	—		$	2,625	$	—		$	2
Swaps - cash flow - receive fixed/ pay floating	4,550		—			—			—		—			—
Derivatives used as economic hedges
Foreign exchange contracts:
Spot, forwards and swaps	330		—			2			302		1			1
Total risk management purposes	8,205		—			2			2,927		1			3
Customer-initiated and other activities
Interest rate contracts:
Caps and floors written	671		—			—			885		—			1
Caps and floors purchased	671		—			—			885		1			—
Swaps	16,485		211			39			13,115		66			67
Total interest rate contracts	17,827		211			39			14,885		67			68
Energy contracts:
Caps and floors written	477		—			23			278		—			26
Caps and floors purchased	477		23			—			278		26			—
Swaps	2,135		73			69			2,094		163			160
Total energy contracts	3,089		96			92			2,650		189			186
Foreign exchange contracts:
Spot, forwards, options and swaps	1,013		10			8			1,095		18			12
Total customer-initiated and other activities	21,929		317			139			18,630		274			266
Total gross derivatives	$	30,134	317			141			$	21,557	275			269
Amounts offset in the Consolidated Balance Sheets:
Netting adjustment - Offsetting derivative assets/liabilities			(63		)	(63		)			(45		)	(45		)
Netting adjustment - Cash collateral received/posted			(11		)	(12		)			(174		)	(1		)
Net derivatives included in the Consolidated Balance Sheets (b)			243			66					56			223
Amounts not offset in the Consolidated Balance Sheets:
Marketable securities pledged under bilateral collateral agreements			—			(21		)			(1		)	—
Net derivatives after deducting amounts not offset in the Consolidated Balance Sheets			$	243		$	45				$	55		$	223


(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 on 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 $9 million and $2 million at December 31, 2019 and 2018, respectively.

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



(in millions)	Interest on Medium- and Long-Term Debt
Years Ended December 31	2019			2018
Total interest on medium-and long-term debt (a)	$	197		$	144

Fair value hedging relationships:
Interest rate contracts:
Hedged items	110			74
Derivatives designated as hedging instruments	(4		)	(7		)

(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 December 31, 2019 and 2018.



					Weighted Average
(dollar amounts in millions)	Derivative Notional Amount		Carrying Value of Hedged Items (a)		Remaining Maturity (in years)	Receive Rate		Pay Rate (b)
December 31, 2019
Swaps - cash flow - receive fixed/pay floating rate
Variable rate loans	$	4,550			3.0	1.94	%	1.71	%
Swaps - fair value - receive fixed/pay floating rate
Medium- and long-term debt	3,325		$	3,469	4.6	3.44		2.80
December 31, 2018
Swaps - fair value - receive fixed/pay floating rate
Medium- and long-term debt	2,625		2,663		3.9	3.40		3.45


(a)	Included $146 million and $49 million of cumulative hedging adjustments at December 31, 2019 and 2018, respectively, which

included $7 million and $8 million, respectively, of hedging adjustment on a discontinued hedging relationship.

(b)

Variable rates paid on receive fixed swaps designated as fair value and cash flow hedges are based on one- and six-month LIBOR rates in effect at December 31, 2019 and 2018.

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	2019		2018
Interest rate contracts	Other noninterest income	$	29	$	26
Energy contracts	Other noninterest income	5		4
Foreign exchange contracts	Foreign exchange income	43		47
Total		$	77	$	77

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	2019		2018
Unused commitments to extend credit:
Commercial and other	$	23,681	$	24,266
Bankcard, revolving check credit and home equity loan commitments	3,180		3,001
Total unused commitments to extend credit	$	26,861	$	27,267
Standby letters of credit	$	3,320	$	3,244
Commercial letters of credit	18		39

Summary Of Criticized Letters Of Credit

The following table presents a summary of criticized standby and commercial letters of credit at December 31, 2019 and 2018. 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, 2019			December 31, 2018
Total criticized standby and commercial letters of credit	$	44		$	49
As a percentage of total outstanding standby and commercial letters of credit	1.3		%	1.5		%