Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of:

			Fair Value
March 31, 2022 ($ in millions)	Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives Designated as Qualifying Hedging Instruments:
Fair value hedges:
Interest rate swaps related to long-term debt	$	1,955	266		27
Total fair value hedges			266		27
Cash flow hedges:
Interest rate floors related to C&I loans	3,000		46		—
Interest rate swaps related to C&I loans	8,000		—		2
Interest rate swaps related to commercial mortgage and commercial construction loans	4,000		—		15
Total cash flow hedges			46		17
Total derivatives designated as qualifying hedging instruments			312		44
Derivatives Not Designated as Qualifying Hedging Instruments:
Free-standing derivatives - risk management and other business purposes:
Interest rate contracts related to MSR portfolio	4,965		57		1
Forward contracts related to residential mortgage loans held for sale(b)	2,505		40		7
Swap associated with the sale of Visa, Inc. Class B Shares	3,627		—		198
Foreign exchange contracts	187		—		3
Interest rate contracts for collateral management	12,000		7		7
Interest rate contracts for LIBOR transition	2,372		—		—
Total free-standing derivatives – risk management and other business purposes			104		216
Free-standing derivatives – customer accommodation:
Interest rate contracts(a)	76,263		423		674
Interest rate lock commitments	773		8		2
Commodity contracts	14,720		3,056		2,951
TBA securities	48		—		—
Foreign exchange contracts	22,264		367		354
Total free-standing derivatives – customer accommodation			3,854		3,981
Total derivatives not designated as qualifying hedging instruments			3,958		4,197
Total			$	4,270	4,241

(a)Derivative assets and liabilities are presented net of variation margin of $316 and $80, respectively.

(b)Includes forward sale and forward purchase contracts which are utilized to manage market risk on residential mortgage loans held for sale and the related interest rate lock commitments.

			Fair Value
December 31, 2021 ($ in millions)	Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives Designated as Qualifying Hedging Instruments:
Fair value hedges:
Interest rate swaps related to long-term debt	$	1,955	393		2
Interest rate swaps related to available-for-sale debt and other securities	445		7		—
Total fair value hedges			400		2
Cash flow hedges:
Interest rate floors related to C&I loans	3,000		122		—
Interest rate swaps related to C&I loans	8,000		—		1
Interest rate swaps related to commercial mortgage and commercial construction loans	4,000		—		—
Total cash flow hedges			122		1
Total derivatives designated as qualifying hedging instruments			522		3
Derivatives Not Designated as Qualifying Hedging Instruments:
Free-standing derivatives – risk management and other business purposes:
Interest rate contracts related to MSR portfolio	6,260		140		—
Forward contracts related to residential mortgage loans held for sale(b)	1,952		2		2
Swap associated with the sale of Visa, Inc. Class B Shares	3,545		—		214
Foreign exchange contracts	158		—		1
Interest rate contracts for collateral management	12,000		5		4
Interest rate contracts for LIBOR transition	2,372		—		—
Total free-standing derivatives – risk management and other business purposes			147		221
Free-standing derivatives – customer accommodation:
Interest rate contracts(a)	76,061		578		232
Interest rate lock commitments	673		12		—
Commodity contracts	12,376		1,326		1,260
TBA securities	55		—		—
Foreign exchange contracts	23,148		323		297
Total free-standing derivatives – customer accommodation			2,239		1,789
Total derivatives not designated as qualifying hedging instruments			2,386		2,010
Total			$	2,908	2,013

(a)Derivative assets and liabilities are presented net of variation margin of $104 and $472, respectively.

(b)Includes forward sale and forward purchase contracts which are utilized to manage market risk on residential mortgage loans held for sale and the related interest rate lock commitments.

Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships

The following table reflects the changes in fair value of interest rate contracts, designated as fair value hedges and the changes in fair value of the related hedged items attributable to the risk being hedged, as well as the line items in the Condensed Consolidated Statements of Income in which the corresponding gains or losses are recorded:

	Condensed Consolidated Statements of Income Caption	For the three months ended March 31,
($ in millions)		2022		2021
Long-term debt:
Change in fair value of interest rate swaps hedging long-term debt	Interest on long-term debt	$	(152)	(145)
Change in fair value of hedged long-term debt attributable to the risk being hedged	Interest on long-term debt	152		145
Available-for-sale debt and other securities:
Change in fair value of interest rate swaps hedging available-for-sale debt and other securities	Interest on securities	8		—
Change in fair value of hedged available-for-sale debt and other securities attributable to the risk being hedged	Interest on securities	(8)		—

The following amounts were recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of:

($ in millions)	Condensed Consolidated Balance Sheets Caption	March 31, 2022		December 31, 2021
Long-term debt:
Carrying amount of the hedged items	Long-term debt	$	2,187	2,339
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items	Long-term debt	244		396
Available-for-sale debt and other securities:
Carrying amount of the hedged items(a)	Available-for-sale debt and other securities	—		465
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items	Available-for-sale debt and other securities	—		(8)
Cumulative amount of fair value hedging adjustments remaining for hedged items for which hedge accounting has been discontinued	Available-for-sale debt and other securities	(15)		—

(a)The carrying amount represents the amortized cost basis of the hedged items (which excludes unrealized gains and losses) plus the fair value hedging adjustments.

Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges

The following table presents the pre-tax net (losses) gains recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges:

	For the three months ended March 31,
($ in millions)	2022		2021
Amount of pre-tax net losses recognized in OCI	$	(407)	(84)
Amount of pre-tax net gains reclassified from OCI into net income	78		72

Schedule of Price Risk Derivatives

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table:

	Condensed Consolidated Statements of Income Caption	For the three months ended March 31,
($ in millions)		2022		2021
Interest rate contracts:
Forward contracts related to residential mortgage loans held for sale	Mortgage banking net revenue	$	33	67
Interest rate contracts related to MSR portfolio	Mortgage banking net revenue	(181)		(134)
Foreign exchange contracts:
Foreign exchange contracts for risk management purposes	Other noninterest income	(2)		(2)
Equity contracts:
Swap associated with sale of Visa, Inc. Class B Shares	Other noninterest income	(11)		(13)

Risk Ratings of the Notional Amount of Risk Participation Agreements

Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of:

($ in millions)	March 31, 2022		December 31, 2021
Pass	$	3,676	3,733
Special mention	—		13
Substandard	34		34
Total	$	3,710	3,780

Net Gains (Losses) Recognized in the Income Statement Related to Free-Standing Derivative Instruments Used For Customer Accommodation

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table:

	Condensed Consolidated Statements of Income Caption	For the three months ended March 31,
($ in millions)		2022		2021
Interest rate contracts:
Interest rate contracts for customers (contract revenue)	Commercial banking revenue	$	16	7
Interest rate contracts for customers (credit portion of fair value adjustment)	Other noninterest expense	6		15
Interest rate lock commitments	Mortgage banking net revenue	—		32
Commodity contracts:
Commodity contracts for customers (contract revenue)	Commercial banking revenue	9		5
Commodity contracts for customers (credit portion of fair value adjustment)	Other noninterest expense	(1)		1
Foreign exchange contracts:
Foreign exchange contracts for customers (contract revenue)	Commercial banking revenue	16		14
Foreign exchange contracts for customers (contract revenue)	Other noninterest income	2		2
Foreign exchange contracts for customers (credit portion of fair value adjustment)	Other noninterest expense	(1)		—

Offsetting Derivative Financial Instruments

The following table provides a summary of offsetting derivative financial instruments:

	Gross Amount Recognized in the Condensed Consolidated Balance Sheets(a)		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
			Derivatives	Collateral(b)	Net Amount
As of March 31, 2022
Derivative assets	$	4,262	(1,456)	(484)	2,322
Derivative liabilities	4,239		(1,456)	(1,560)	1,223
As of December 31, 2021
Derivative assets	$	2,896	(837)	(548)	1,511
Derivative liabilities	2,013		(837)	(712)	464

(a)Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements.

(b)Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table.