Derivative And Credit-Related Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019. The table excludes commitments and warrants accounted for as derivatives.



	March 31, 2020								December 31, 2019
			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	$	—		$	—		$	3,325	$	—		$	—
Swaps - cash flow - receive fixed/pay floating	5,550		—			—			4,550		—			—
Derivatives used as economic hedges
Foreign exchange contracts:
Spot, forwards and swaps	366		3			2			330		—			2
Total risk management purposes	9,241		3			2			8,205		—			2
Customer-initiated and other activities
Interest rate contracts:
Caps and floors written	681		—			—			671		—			—
Caps and floors purchased	681		—			—			671		—			—
Swaps	19,754		605			70			16,485		211			39
Total interest rate contracts	21,116		605			70			17,827		211			39
Energy contracts:
Caps and floors written	439		1			76			477		—			23
Caps and floors purchased	439		76			1			477		23			—
Swaps	1,966		382			377			2,135		73			69
Total energy contracts	2,844		459			454			3,089		96			92
Foreign exchange contracts:
Spot, forwards, options and swaps	1,531		31			25			1,013		10			8
Total customer-initiated and other activities	25,491		1,095			549			21,929		317			139
Total gross derivatives	$	34,732	$	1,098		$	551		$	30,134	$	317		$	141
Amounts offset in the Consolidated Balance Sheets:
Netting adjustment - Offsetting derivative assets/liabilities			(55		)	(55		)			(63		)	(63		)
Netting adjustment - Cash collateral received/posted			(424		)	(23		)			(11		)	(12		)
Net derivatives included in the Consolidated Balance Sheets (b)			619			473					243			66
Amounts not offset in the Consolidated Balance Sheets:
Marketable securities pledged under bilateral collateral agreements			—			(54		)			—			(21		)
Net derivatives after deducting amounts not offset in the Consolidated Balance Sheets			$	619		$	419				$	243		$	45


(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 $22 million and $9 million at March 31, 2020 and December 31, 2019, 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 March 31,
(in millions)	2020			2019
Total interest on medium-and long-term debt (a)	$	40		$	51

Fair value hedging relationships:
Interest rate contracts:
Hedged items	30			26
Derivatives designated as hedging instruments	(6		)	1

(a) Includes the effects of hedging.

Schedule Of Weighted Average Maturity And Interest Rates On Risk Management Cash Flow Swaps [Text Block]

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 March 31, 2020 and December 31, 2019.

Cash flow swaps - receive fixed/pay floating rate on variable-rate loans:



(dollar amounts in millions)	March 31, 2020			December 31, 2019
Derivative Notional Amount	$	5,550		$	4,550
Weighted Average:
Remaining maturity (in years)	3.0			3.0
Receive rate	1.87		%	1.94		%
Pay rate (a)	1.58			1.71

(a)

Variable rates paid on receive fixed swaps designated as cash flow hedges are based on one-month LIBOR rates in effect at March 31, 2020 and December 31, 2019.

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

Fair value swaps - receive fixed/pay floating rate on medium- and long-term debt:



(dollar amounts in millions)	March 31, 2020			December 31, 2019
Derivative Notional Amount	$	3,325		$	3,325
Carrying value of hedged items (a)	3,634			3,469
Weighted Average:
Remaining maturity (in years)	4.3			4.6
Receive rate	3.44		%	3.44		%
Pay rate (b)	2.32			2.80


(a)	Included $310 million and $146 million of cumulative hedging adjustments at March 31, 2020 and December 31, 2019, respectively, which included $6 million and $7 million, respectively, of hedging adjustment on a discontinued hedging relationship.

(b)

Variable rates paid on receive fixed swaps designated as fair value hedges are based on one- and six-month LIBOR rates in effect at March 31, 2020 and December 31, 2019.

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 March 31,
(in millions)	Location of Gain	2020		2019
Interest rate contracts	Other noninterest income	$	8	$	6
Energy contracts	Other noninterest income	1		1
Foreign exchange contracts	Foreign exchange income	11		11
Total		$	20	$	18

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)	March 31, 2020		December 31, 2019
Unused commitments to extend credit:
Commercial and other	$	21,456	$	23,681
Bankcard, revolving check credit and home equity loan commitments	3,170		3,180
Total unused commitments to extend credit	$	24,626	$	26,861
Standby letters of credit	$	3,208	$	3,320
Commercial letters of credit	35		18

Summary Of Criticized Letters Of Credit

The following table presents a summary of criticized standby and commercial letters of credit at March 31, 2020 and December 31, 2019. 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)	March 31, 2020			December 31, 2019
Total criticized standby and commercial letters of credit	$	50		$	44
As a percentage of total outstanding standby and commercial letters of credit	1.5		%	1.3		%