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Strategic Lines of Business and Markets
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Business Segment Information STRATEGIC LINES OF BUSINESS AND MARKETS
The Corporation has strategically aligned its operations into three major business segments: the Commercial Bank, the Retail Bank and Wealth Management. These business segments are differentiated based on the type of customer and the related products and services provided. In addition to the three major business segments, the Finance Division is also reported as a segment. Business segment results are produced by the Corporation’s internal management accounting system. This system measures financial results based on the internal business unit structure of the Corporation. The performance of the business segments is not comparable with the Corporation's consolidated results and is not necessarily comparable with similar information for any other financial institution. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. The management accounting system assigns balance sheet and income statement items to each business segment using certain methodologies, which are regularly reviewed and refined. From time to time, the Corporation may make reclassifications among the segments to more appropriately reflect management's current view of the segments, and methodologies may be modified as the management accounting system is enhanced and changes occur in the organizational structure and/or product lines. For comparability purposes, amounts in all periods are based on business unit structure and methodologies in effect at June 30, 2021.
The following discussion provides information about the activities of each business segment. A discussion of the financial results and the factors impacting performance can be found in "Business Segments" in the "Strategic Lines of Business and Markets" section of the financial review.
The Commercial Bank meets the needs of small and middle market businesses, multinational corporations and governmental entities by offering various products and services including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services and loan syndication services.
The Retail Bank includes a full range of personal financial services, consisting of consumer lending, consumer deposit gathering and mortgage loan origination. This business segment offers a variety of consumer products including deposit accounts, installment loans, credit cards, student loans, home equity lines of credit and residential mortgage loans. In addition, this business segment offers a subset of commercial products and services to micro-businesses whose primary contact is through the branch network.
Wealth Management offers products and services consisting of fiduciary services, private banking, retirement services, investment management and advisory services, investment banking and brokerage services. This business segment also offers the sale of annuity products, as well as life, disability and long-term care insurance products.
The Finance segment includes the Corporation’s securities portfolio and asset and liability management activities. This segment is responsible for managing the Corporation’s funding, liquidity and capital needs, performing interest sensitivity analysis and executing various strategies to manage the Corporation’s exposure to liquidity, interest rate risk and foreign exchange risk.
The Other category includes the income and expense impact of equity and cash, tax benefits not assigned to specific business segments, charges of an unusual or infrequent nature that are not reflective of the normal operations of the business segments and miscellaneous other expenses of a corporate nature.
For further information on the methodologies which form the basis for these results refer to Note 22 to the consolidated financial statements in the Corporation's 2020 Annual Report.
Business segment financial results are as follows:
Commercial
Bank		Retail
Bank		Wealth ManagementFinanceOtherTotal
(dollar amounts in millions)
Three Months Ended June 30, 2021
Earnings summary:
Net interest income (expense)$402 $145 $43 $(127)$2 $465 
Provision for credit losses(123)(7)(4)— (1)(135)
Noninterest income167 30 71 9 7 284 
Noninterest expenses204 173 77 1 8 463 
Provision (benefit) for income taxes111 1 9 (26)(2)93 
Net income (loss)$377 $8 $32 $(93)$4 $328 
Net credit-related (recoveries) charge-offs$(12)$1 $— $— $— $(11)
Selected average balances:
Assets $44,283 $3,395 $5,063 $17,461 $17,658 $87,860 
Loans 42,350 2,533 4,936 — 9 49,828 
Deposits43,682 25,573 5,103 944 218 75,520 
Statistical data:
Return on average assets (a)3.21 %0.12 %2.40 %n/mn/m1.50 %
Efficiency ratio (b)35.95 98.06 66.85 n/mn/m61.66 
Three Months Ended June 30, 2020
Earnings summary:
Net interest income (expense)$402 $120 $40 $(95)$4 $471 
Provision for credit losses117 5 16 — — 138 
Noninterest income144 24 66 11 2 247 
Noninterest expenses (c)203 153 73 1 4 434 
Provision (benefit) for income taxes (c)47 (3)3 (20)1 28 
Net income (loss) (c)$179 $(11)$14 $(65)$1 $118 
Net credit-related charge-offs$48 $1 $1 $— $— $50 
Selected average balances:
Assets$47,392 $3,306 $5,191 $14,500 $11,255 $81,644 
Loans45,914 2,479 5,077 — 28 53,498 
Deposits36,318 22,647 4,217 950 150 64,282 
Statistical data:
Return on average assets (a) (c)1.51 %(0.17)%1.11 %n/mn/m0.58 %
Efficiency ratio (b) (c)37.18 105.07 68.18 n/mn/m60.11 
(a)Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
(b)Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares.
(c)See Defined Benefit Pension and Other Postretirement Costs in Note 1.
n/m – not meaningful
Commercial
Bank		Retail
Bank		Wealth ManagementFinanceOtherTotal
(dollar amounts in millions)
Six Months Ended June 30, 2021
Earnings summary:
Net interest income (expense)$784 $278 $85 $(244)$5 $908 
Provision for credit losses(300)(1)(16)— — (317)
Noninterest income326 58 138 21 11 554 
Noninterest expenses419 322 153 1 15 910 
Provision (benefit) for income taxes224 1 19 (51)(2)191 
Net income (loss)$767 $14 $67 $(173)$3 $678 
Net credit-related (recoveries) charge-offs$(10)$2 $— $— $— $(8)
Selected average balances:
Assets $44,365 $3,428 $5,112 $17,212 $16,101 $86,218 
Loans 42,625 2,576 4,998 — 7 50,206 
Deposits42,399 24,951 4,965 964 188 73,467 
Statistical data:
Return on average assets (a)3.38 %0.11 %2.55 %n/mn/m1.59 %
Efficiency ratio (b)37.76 95.00 68.31 n/mn/m62.10 
Six Months Ended June 30, 2020
Earnings summary:
Net interest income (expense)$782 $245 $81 $(139)$15 $984 
Provision for credit losses513 8 28 — — 549 
Noninterest income271 52 136 25 — 484 
Noninterest expenses (c)395 298 143 1 14 851 
Provision (benefit) for income taxes (c)28 (2)9 (28)2 9 
Net income (loss) (c)$117 $(7)$37 $(87)$(1)$59 
Net credit-related charge-offs$131 $2 $1 $— $— $134 
Selected average balances:
Assets$45,823 $3,085 $5,134 $14,393 $9,019 $77,454 
Loans44,253 2,277 5,007 — 14 51,551 
Deposits33,274 21,921 4,120 1,043 166 60,524 
Statistical data:
Return on average assets (a) (c)0.51 %(0.05)%1.45 %n/mn/m0.15 %
Efficiency ratio (b) (c)37.55 99.39 65.36 n/mn/m57.79 
(a)Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
(b)Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares.
(c)See Defined Benefit Pension and Other Postretirement Costs in Note 1.
n/m – not meaningful
The Corporation operates in three primary markets - Texas, California and Michigan, as well as in Arizona and Florida, with select businesses operating in several other states and in Canada and Mexico. The Corporation produces market segment results for the Corporation’s three primary geographic markets as well as Other Markets. Other Markets includes Florida, Arizona, the International Finance division and businesses with a national perspective. The Finance & Other category includes the Finance segment and the Other category as previously described. Market segment results are provided as supplemental information to the business segment results and may not meet all operating segment criteria as set forth in GAAP. For comparability purposes, amounts in all periods are based on market segments and methodologies in effect at June 30, 2021.
A discussion of the financial results and the factors impacting performance can be found in the section entitled "Market Segments" in the "Strategic Lines of Business and Markets" section of the financial review.
Market segment financial results are as follows:
MichiganCaliforniaTexasOther
Markets		Finance
& Other		Total
(dollar amounts in millions)
Three Months Ended June 30, 2021
Earnings summary:
Net interest income (expense)$178 $174 $114 $124 $(125)$465 
Provision for credit losses(26)(24)(77)(7)(1)(135)
Noninterest income72 41 35 120 16 284 
Noninterest expenses136 116 91 111 9 463 
Provision (benefit) for income taxes29 29 29 34 (28)93 
Net income (loss)$111 $94 $106 $106 $(89)$328 
Net credit-related charge-offs (recoveries)$1 $— $(12)$— $— $(11)
Selected average balances:
Assets $12,830 $17,679 $10,615 $11,614 $35,122 $87,860 
Loans 12,245 17,515 10,008 10,048 12 49,828 
Deposits26,709 20,582 11,153 15,914 1,162 75,520 
Statistical data:
Return on average assets (a) 1.62 %1.75 %3.35 %2.51 %n/m1.50 %
Efficiency ratio (b) 54.18 53.63 61.35 45.41 n/m61.66 
Three Months Ended June 30, 2020
Earnings summary:
Net interest income (expense)$161 $169 $115 $117 $(91)$471 
Provision for credit losses41 47 31 19 — 138 
Noninterest income64 34 30 106 13 247 
Noninterest expenses (c)138 98 89 104 5 434 
Provision (benefit) for income taxes (c)8 13 5 21 (19)28 
Net income (loss) (c)$38 $45 $20 $79 $(64)$118 
Net credit-related charge-offs (recoveries)$1 $(1)$46 $4 $— $50 
Selected average balances:
Assets$13,617 $18,403 $11,555 $12,345 $25,724 $81,644 
Loans13,092 18,249 11,162 10,998 (3)53,498 
Deposits23,396 17,410 10,198 12,178 1,100 64,282 
Statistical data:
Return on average assets (a) (c)0.62 %0.98 %0.71 %2.40 %n/m0.58 %
Efficiency ratio (b) (c)61.00 48.08 61.06 46.21 n/m60.11 
(a)Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
(b)Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares.
(c)See Defined Benefit Pension and Other Postretirement Costs in Note 1.
n/m – not meaningful.
MichiganCaliforniaTexasOther
Markets		Finance
& Other		Total
(dollar amounts in millions)
Six Months Ended June 30, 2021
Earnings summary:
Net interest income (expense)$333 $346 $227 $241 $(239)$908 
Provision for credit losses(54)(78)(163)(22)— (317)
Noninterest income138 89 71 224 32 554 
Noninterest expenses272 220 179 223 16 910 
Provision (benefit) for income taxes51 69 60 64 (53)191 
Net income (loss)$202 $224 $222 $200 $(170)$678 
Net credit-related charge-offs (recoveries)$1 $1 $(10)$— $— $(8)
Selected average balances:
Assets $12,851 $17,851 $10,627 $11,576 $33,313 $86,218 
Loans 12,279 17,702 10,078 10,139 8 50,206 
Deposits26,191 20,221 10,965 14,938 1,152 73,467 
Statistical data:
Return on average assets (a) 1.51 %2.13 %3.61 %2.53 %n/m1.59 %
Efficiency ratio (b) 57.50 50.33 60.13 47.92 n/m62.10 
Six Months Ended June 30, 2020
Earnings summary:
Net interest income (expense)$324 $345 $230 $209 $(124)$984 
Provision for credit losses65 93 321 70 — 549 
Noninterest income136 67 60 196 25 484 
Noninterest expenses (c)275 191 172 198 15 851 
Provision (benefit) for income taxes (c)24 30 (45)26 (26)9 
Net income (loss) (c)$96 $98 $(158)$111 $(88)$59 
Net credit-related charge-offs$4 $7 $116 $7 $— $134 
Selected average balances:
Assets$13,223 $18,164 $11,340 $11,331 $23,396 $77,454 
Loans12,665 17,978 10,858 10,051 (1)51,551 
Deposits22,037 16,985 9,697 10,596 1,209 60,524 
Statistical data:
Return on average assets (a) (c)0.84 %1.09 %(2.79)%1.92 %n/m0.15 %
Efficiency ratio (b) (c)59.41 46.32 59.24 48.65 n/m57.79 
(a)Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
(b)Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares.
(c)See Defined Benefit Pension and Other Postretirement Costs in Note 1.
n/m – not meaningful.