Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Financial Instruments

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

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

				Fair Value
December 31, 2019 ($ 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	$		2,705		393		-
Total fair value hedges					393		-
Cash flow hedges:
Interest rate floors related to C&I loans			3,000		115		-
Interest rate swaps related to C&I loans			8,000		-		2
Total cash flow hedges					115		2
Total derivatives designated as qualifying hedging instruments					508		2
Derivatives Not Designated as Qualifying Hedging Instruments
Free-standing derivatives - risk management and other business purposes:
Interest rate contracts related to MSR portfolio			6,420		131		2
Forward contracts related to residential mortgage loans held for sale			2,901		1		5
Swap associated with the sale of Visa, Inc. Class B Shares			3,082		-		163
Foreign exchange contracts			195		-		5
Total free-standing derivatives - risk management and other business purposes					132		175
Free-standing derivatives - customer accommodation:
Interest rate contracts(a)			73,327		579		148
Interest rate lock commitments			907		18		-
Commodity contracts			8,525		271		270
TBA securities			50		-		-
Foreign exchange contracts			14,144		165		146
Total free-standing derivatives - customer accommodation					1,033		564
Total derivatives not designated as qualifying hedging instruments					1,165		739
Total				$	1,673		741

(a) Derivative assets and liabilities are presented net of variation margin of $40 and $493, respectively.

				Fair Value
December 31, 2018 ($ 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	$		3,455		262		2
Total fair value hedges					262		2
Cash flow hedges:
Interest rate floors related to C&I loans			3,000		69		-
Interest rate swaps related to C&I loans			8,000		15		27
Total cash flow hedges					84		27
Total derivatives designated as qualifying hedging instruments					346		29
Derivatives Not Designated as Qualifying Hedging Instruments
Free-standing derivatives - risk management and other business purposes:
Interest rate contracts related to MSR portfolio			10,045		40		14
Forward contracts related to residential mortgage loans held for sale			926		-		8
Swap associated with the sale of Visa, Inc. Class B Shares			2,174		-		125
Foreign exchange contracts			133		4		-
Total free-standing derivatives - risk management and other business purposes					44		147
Free-standing derivatives - customer accommodation:
Interest rate contracts			55,012		262		278
Interest rate lock commitments			407		7		-
Commodity contracts			6,511		307		278
TBA securities			18		-		-
Foreign exchange contracts			13,205		148		142
Total free-standing derivatives - customer accommodation					724		698
Total derivatives not designated as qualifying hedging instruments					768		845
Total				$	1,114		874

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

The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Income:

For the years ended December 31 ($ in millions)	Consolidated Statements of Income Caption		2019		2018		2017
Change in fair value of interest rate swaps hedging long-term debt		Interest on long-term debt	$	152		(36)		(33)
Change in fair value of hedged long-term debt attributable to the risk being hedged		Interest on long-term debt		(147)		41		31

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

($ in millions)	Consolidated Balance Sheets Caption	December 31, 2019
Carrying amount of the hedged items	Long-term debt	$	3,093
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items	Long-term debt		402

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

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

For the years ended December 31 ($ in millions)	2019		2018		2017
Amount of pre-tax net gains (losses) recognized in OCI	$	348		214		(11)
Amount of pre-tax net gains (losses) reclassified from OCI into net income		16		(2)		19

Schedule of Price Risk Derivatives

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

For the years ended December 31 ($ in millions)	Consolidated Statements of Income Caption	2019		2018			2017
Interest rate contracts:
Forward contracts related to residential mortgage loans held for sale	Mortgage banking net revenue	$	4		(8	)		(17)
Interest rate contracts related to MSR portfolio	Mortgage banking net revenue		221		(21	)		2
Foreign exchange contracts:
Foreign exchange contracts for risk management purposes	Other noninterest income		(7)		10			(7)
Equity contracts:
Stock warrant	Other noninterest income		-		-			(1)
Swap associated with sale of Visa, Inc. Class B Shares	Other noninterest income		(107)		(59	)		(80)

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:

At December 31 ($ in millions)	2019		2018
Pass	$	3,841		3,919
Special mention		86		79
Substandard		16		4
Total	$	3,943		4,002

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

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

For the years ended December 31 ($ in millions)	Consolidated Statements of Income Caption	2019			2018			2017
Interest rate contracts:
Interest rate contracts for customers (contract revenue)	Corporate banking revenue	$	40			32			21
Interest rate contracts for customers (credit losses)	Other noninterest expense		-			-			(5)
Interest rate contracts for customers (credit portion of fair value adjustment)	Other noninterest expense		(15	)		-			2
Interest rate lock commitments	Mortgage banking net revenue		144			70			93
Commodity contracts:
Commodity contracts for customers (contract revenue)	Corporate banking revenue		8			9			6
Commodity contracts for customers (credit losses)	Other noninterest expense		-			-			1
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)	Corporate banking revenue		49			55			48
Foreign exchange contracts for customers (contract revenue)	Other noninterest income		12			14			-
Foreign exchange contracts for customers (credit losses)	Other noninterest expense		-			-			2
Foreign exchange contracts for customers (credit portion of fair value adjustment)	Other noninterest expense		-			1			1

Offsetting Derivative Financial Instruments

The following tables provide a summary of offsetting derivative financial instruments:

	Gross Amount Recognized in the Consolidated Balance Sheets(a)		Gross Amounts Not Offset in the Consolidated Balance Sheets
As of December 31, 2019 ($ in millions)			Derivatives			Collateral(b)		Net Amount
Assets:
Derivatives	$	1,655		(417	)		(504)		734
Total assets		1,655		(417	)		(504)		734
Liabilities:
Derivatives		741		(417	)		(97)		227
Total liabilities	$	741		(417	)		(97)		227
(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 Consolidated Balance Sheets were excluded from this table.
	Gross Amount Recognized in the Consolidated Balance Sheets(a)		Gross Amounts Not Offset in the Consolidated Balance Sheets
As of December 31, 2018 ($ in millions)			Derivatives			Collateral(b)		Net Amount
Assets:
Derivatives	$	1,107		(410	)		(348)		349
Total assets		1,107		(410	)		(348)		349
Liabilities:
Derivatives		874		(410	)		(123)		341
Total liabilities	$	874		(410	)		(123)		341

(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 Consolidated Balance Sheets were excluded from this table.