(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
Title of each class: |
Trading Symbol(s): |
Name of each exchange on which registered: | ||
The | ||||
Depositary Shares Representing a 1/1000th Ownership Interest in a Share of |
The | |||
Depositary Shares Representing a 1/40th Ownership Interest in a Share of |
The | |||
Depositary Shares Representing a 1/1000th Ownership Interest in a Share of |
The |
PART I |
||||||
Item 1. |
19-26 |
|||||
58 |
||||||
61-69, 192-195 |
||||||
54 |
||||||
53-55 |
||||||
73-75, 126-127 |
||||||
72-73, 128-129 |
||||||
79-93 |
||||||
75-77 |
||||||
43 |
||||||
77, 152 |
||||||
Item 1A. |
27-37 |
|||||
Item 1B. |
37 |
|||||
Item 2. |
37 |
|||||
Item 3. |
37 |
|||||
Item 4. |
37 |
|||||
38 |
||||||
PART II |
||||||
Item 5. |
39 |
|||||
Item 6. |
43 |
|||||
Item 7. |
44-104 |
|||||
Item 7A. |
104 |
|||||
Item 8. |
104-196 |
|||||
Item 9. |
197 |
|||||
Item 9A. |
197 |
|||||
Item 9B. |
199 |
|||||
PART III |
||||||
Item 10. |
199 |
|||||
Item 11. |
199 |
|||||
Item 12. |
199 |
|||||
Item 13. |
199 |
|||||
Item 14. |
199 |
|||||
PART IV |
||||||
Item 15. |
199-204 |
|||||
Item 16. |
204 |
|||||
SIGNATURES |
205 |
Regulatory Capital Ratios: |
||||||||||||||||
Minimum Regulatory Capital Ratio |
Minimum Ratio + Capital Conservation (a) |
Well-Capitalized Minimums (b) |
Actual at December 31, 2019 |
|||||||||||||
CET1 risk-based capital ratio: |
||||||||||||||||
Fifth Third Bancorp |
4.50 |
% | 7.00 |
N/A |
9.75 |
|||||||||||
Fifth Third Bank, National Association |
4.50 |
7.00 |
6.50 |
11.86 |
||||||||||||
Tier I risk-based capital ratio: |
||||||||||||||||
Fifth Third Bancorp |
6.00 |
8.50 |
6.00 |
10.99 |
||||||||||||
Fifth Third Bank, National Association |
6.00 |
8.50 |
8.00 |
11.86 |
||||||||||||
Total risk-based capital ratio: |
||||||||||||||||
Fifth Third Bancorp |
8.00 |
10.50 |
10.00 |
13.84 |
||||||||||||
Fifth Third Bank, National Association |
8.00 |
10.50 |
10.00 |
13.46 |
||||||||||||
Tier I leverage ratio: |
||||||||||||||||
Fifth Third Bancorp |
4.00 |
N/A |
N/A |
9.54 |
||||||||||||
Fifth Third Bank, National Association |
4.00 |
N/A |
5.00 |
10.36 |
(a) |
Reflects the fully phased-in capital conservation buffer of 2.5% applicable during 2019. |
(b) |
Reflects the well-capitalized standard applicable to the Bancorp under FRB Regulation Y and the well-capitalized standard applicable to the Bank. |
Issuer Purchases of Equity Securities |
||||||||||||||||||||
Period |
Total Number of Shares Purchased (a) |
Average Price Paid Per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs (b) |
||||||||||||||||
October 2019 |
9,243,819 |
$ | 29.53 |
9,020,163 |
77,586,469 |
|||||||||||||||
November 2019 |
141,014 |
30.08 |
- |
77,586,469 |
||||||||||||||||
December 2019 |
1,229,677 |
28.94 |
1,149,121 |
76,437,348 |
||||||||||||||||
Total |
10,614,510 |
$ | 29.47 |
10,169,284 |
76,437,348 |
|||||||||||||||
(a) |
Includes 445,226 shares repurchased during the fourth quarter of 2019 in connection with various employee compensation plans of the Bancorp. These purchases do not count against the maximum number of shares that may yet be purchased under the Board of Directors’ authorization. |
(b) |
During the second quarter of 2019, the Bancorp announced that its Board of Directors had authorized management to purchase 100 million shares of the Bancorp’s common stock through the open market or in any private transactions. The authorization does not include specific price targets or an expiration date. This share repurchase authorization replaces the Board’s previous authorization pursuant to which approximately 20 million shares remained available for repurchase by the Bancorp. |
42 |
||||
43 |
||||
44 |
||||
48 |
||||
50 |
||||
50 |
||||
53 |
||||
61 |
||||
70 |
||||
72 |
||||
78 |
||||
79 |
||||
93 |
||||
98 |
||||
99 |
||||
100 |
||||
101 |
||||
103 |
||||
104 |
||||
105 |
||||
Financial Statements |
||||
107 |
||||
108 |
||||
109 |
||||
110 |
||||
111 |
Notes to Consolidated Financial Statements |
||||||||||
112 |
153 |
|||||||||
122 |
156 |
|||||||||
122 |
160 |
|||||||||
125 |
162 |
|||||||||
126 |
164 |
|||||||||
128 |
166 |
|||||||||
130 |
170 |
|||||||||
138 |
172 |
|||||||||
138 |
174 |
|||||||||
139 |
178 |
|||||||||
141 |
179 |
|||||||||
141 |
180 |
|||||||||
142 |
189 |
|||||||||
145 |
190 |
|||||||||
147 |
192 |
|||||||||
152 |
196 |
|||||||||
152 |
||||||||||
197 |
||||||||||
198 |
||||||||||
206 |
||||||||||
207 |
||||||||||
Corporate Information |
ALCO: ALLL: AOCI: APR: ARM: ASF: ASU: ATM: BCBS BHC: BOLI: BPO: bps: CCAR: CDC: CECL: CET1: CFPB: C&I: DCF: DTCC: DTI: Debt-to-Income RatioERM: ERMC: EVE: FASB: FDIC: FHA: FHLB: FHLMC: FICO: FINRA: FNMA: FOMC: FRB: FTE: FTP: FTS: GNMA: GSE: HQLA: IPO: IRC: IRLC: |
IRS: ISDA: LCR: LIBOR: LIHTC: Low-Income Housing Tax CreditLLC: LTV: Loan-to-Value RatioMD&A: MSR: N/A: NAV: NII: NM: NPR: NSFR: OAS: OCC: OCI: OREO: OTTI: PCI: PSA: RCC: ROU: Right-of-Use RSA: RSF: RSU: SAR: SBA: SEC: SOFR: TBA: TCJA: TDR: TILA: TRA: TruPS: U.S.: U.S. GAAP: VA: VIE: VRDN: |
As of and for the years ended December 31 ($ in millions, except for per share data) |
2019 |
2018 |
2017 |
2016 |
2015 |
||||||||||||||||
Income Statement Data |
|||||||||||||||||||||
Net interest income (U.S. GAAP) |
$ |
4,797 |
4,140 |
3,798 |
3,615 |
3,533 |
|||||||||||||||
Net interest income (FTE) (a)(b) |
4,814 |
4,156 |
3,824 |
3,640 |
3,554 |
||||||||||||||||
Noninterest income |
3,536 |
2,790 |
3,224 |
2,696 |
3,003 |
||||||||||||||||
Total revenue (a) |
8,350 |
6,946 |
7,048 |
6,336 |
6,557 |
||||||||||||||||
Provision for credit losses (c) |
471 |
207 |
261 |
366 |
400 |
||||||||||||||||
Noninterest expense |
4,660 |
3,958 |
3,782 |
3,737 |
3,643 |
||||||||||||||||
Net income attributable to Bancorp |
2,512 |
2,193 |
2,180 |
1,547 |
1,685 |
||||||||||||||||
Net income available to common shareholders |
2,419 |
2,118 |
2,105 |
1,472 |
1,610 |
||||||||||||||||
Common Share Data |
|||||||||||||||||||||
Earnings per share - basic |
$ |
3.38 |
3.11 |
2.86 |
1.92 |
2.00 |
|||||||||||||||
Earnings per share - diluted |
3.33 |
3.06 |
2.81 |
1.91 |
1.97 |
||||||||||||||||
Cash dividends declared per common share |
0.94 |
0.74 |
0.60 |
0.53 |
0.52 |
||||||||||||||||
Book value per share |
27.41 |
23.07 |
21.43 |
19.62 |
18.31 |
||||||||||||||||
Market value per share |
30.74 |
23.53 |
30.34 |
26.97 |
20.10 |
||||||||||||||||
Financial Ratios |
|||||||||||||||||||||
Return on average assets |
1.53 |
% |
1.54 |
1.55 |
1.09 |
1.20 |
|||||||||||||||
Return on average common equity |
13.1 |
14.5 |
13.9 |
9.7 |
11.2 |
||||||||||||||||
Return on average tangible common equity (including AOCI) (b) |
17.1 |
17.5 |
16.6 |
11.6 |
13.5 |
||||||||||||||||
Return on average tangible common equity (excluding AOCI) (b) |
18.2 |
16.7 |
16.9 |
12.2 |
13.9 |
||||||||||||||||
Dividend payout |
27.8 |
23.8 |
21.0 |
27.6 |
26.0 |
||||||||||||||||
Average total Bancorp shareholders’ equity as a percent of average assets |
12.14 |
11.23 |
11.69 |
11.57 |
11.24 |
||||||||||||||||
Tangible common equity as a percent of tangible assets (excluding AOCI) (b) |
8.44 |
8.71 |
8.83 |
8.77 |
8.50 |
||||||||||||||||
Net interest margin (a)(b) |
3.31 |
3.22 |
3.03 |
2.88 |
2.88 |
||||||||||||||||
Net interest rate spread (a)(b) |
2.92 |
2.87 |
2.76 |
2.66 |
2.69 |
||||||||||||||||
Efficiency (a)(b) |
55.8 |
57.0 |
53.7 |
59.0 |
55.6 |
||||||||||||||||
Credit Quality |
|||||||||||||||||||||
Net losses charged-off |
$ |
369 |
330 |
298 |
362 |
446 |
|||||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases |
0.35 |
% |
0.35 |
0.32 |
0.39 |
0.48 |
|||||||||||||||
ALLL as a percent of portfolio loans and leases |
1.10 |
1.16 |
1.30 |
1.36 |
1.37 |
||||||||||||||||
Allowance for credit losses as a percent of portfolio loans and leases (d) |
1.23 |
1.30 |
1.48 |
1.54 |
1.52 |
||||||||||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO |
0.62 |
0.41 |
0.53 |
0.80 |
0.70 |
||||||||||||||||
Average Balances |
|||||||||||||||||||||
Loans and leases, including held for sale |
$ |
107,794 |
93,876 |
92,731 |
94,320 |
93,339 |
|||||||||||||||
Securities and other short-term investments |
37,610 |
35,029 |
33,562 |
31,965 |
30,245 |
||||||||||||||||
Assets |
163,936 |
142,183 |
140,527 |
142,173 |
139,999 |
||||||||||||||||
Transaction deposits (e) |
111,130 |
97,914 |
96,052 |
95,371 |
95,244 |
||||||||||||||||
Core deposits (f) |
116,600 |
102,020 |
99,823 |
99,381 |
99,295 |
||||||||||||||||
Wholesale funding (g) |
22,451 |
20,573 |
20,360 |
21,813 |
20,210 |
||||||||||||||||
Bancorp shareholders’ equity |
19,902 |
15,970 |
16,424 |
16,453 |
15,742 |
||||||||||||||||
Regulatory Capital Ratios |
|||||||||||||||||||||
CET1 capital (h) |
9.75 |
% |
10.24 |
10.61 |
10.39 |
9.82 |
|||||||||||||||
Tier I risk-based capital (h) |
10.99 |
11.32 |
11.74 |
11.50 |
10.93 |
||||||||||||||||
Total risk-based capital (h) |
13.84 |
14.48 |
15.16 |
15.02 |
14.13 |
||||||||||||||||
Tier I leverage |
9.54 |
9.72 |
10.01 |
9.90 |
9.54 |
(a) |
Amounts presented on an FTE basis. The FTE adjustment for the years ended December 31, 2019 $17 |
(b) |
These are non-GAAP measures. For further information, refer to the Non-GAAP Financial Measures section of MD&A. |
(c) |
The provision for credit losses is the sum of the provision for loan and lease losses and the provision for (benefit from) the reserve for unfunded commitments. |
(d) |
The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments. |
(e) |
Includes demand deposits, interest checking deposits, savings deposits, money market deposits and foreign office deposits. |
(f) |
Includes transaction deposits and other time deposits. |
(g) |
Includes certificates $100,000 and over, other deposits, federal funds purchased, other short-term borrowings and long-term debt. |
(h) |
Under the U.S. banking agencies’ Basel III Final Rule, assets and credit equivalent amounts of off-balance sheet exposures are calculated according to the standardized approach for risk-weighted assets. The resulting values are added together in the Bancorp’s total risk-weighted assets. |
Repurchase Date |
Amount ($ in millions) |
Shares Repurchased on Repurchase Date |
Shares Received from Forward Contract Settlement |
Total Shares Repurchased |
Settlement Date |
|||||||||||||||
March 27, 2019 (a) |
913 |
31,779,280 |
2,026,584 |
33,805,864 |
June 28, 2019 |
|||||||||||||||
April 29, 2019 (b) |
200 |
6,015,570 |
1,217,805 |
7,233,375 |
May 23, 2019 - May 24, 2019 |
|||||||||||||||
August 7, 2019 |
100 |
3,150,482 |
694,238 |
3,844,720 |
August 16, 2019 |
|||||||||||||||
August 9, 2019 (b) |
200 |
6,405,426 |
1,475,487 |
7,880,913 |
August 28, 2019 |
|||||||||||||||
October 25, 2019 |
300 |
9,020,163 |
1,149,121 |
10,169,284 |
December 17, 2019 |
(a) |
This accelerated share repurchase transaction consisted of two supplemental confirmations each with a notional amount of $456.5 million. |
(b) |
This accelerated share repurchase transaction consisted of two supplemental confirmations each with a notional amount of $100 million. |
For the years ended December 31 ($ in millions, except per share data) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||
Interest income (FTE) (a) |
$ |
6,271 |
5,199 |
4,515 |
4,218 |
4,049 |
||||||||||||||
Interest expense |
1,457 |
1,043 |
691 |
578 |
495 |
|||||||||||||||
Net Interest Income (FTE) (a) |
4,814 |
4,156 |
3,824 |
3,640 |
3,554 |
|||||||||||||||
Provision for credit losses |
471 |
207 |
261 |
366 |
400 |
|||||||||||||||
Net Interest Income After Provision for Credit Losses (FTE) (a) |
4,343 |
3,949 |
3,563 |
3,274 |
3,154 |
|||||||||||||||
Noninterest income |
3,536 |
2,790 |
3,224 |
2,696 |
3,003 |
|||||||||||||||
Noninterest expense |
4,660 |
3,958 |
3,782 |
3,737 |
3,643 |
|||||||||||||||
Income Before Income Taxes (FTE) (a) |
3,219 |
2,781 |
3,005 |
2,233 |
2,514 |
|||||||||||||||
Fully taxable equivalent adjustment |
17 |
16 |
26 |
25 |
21 |
|||||||||||||||
Applicable income tax expense |
690 |
572 |
799 |
665 |
814 |
|||||||||||||||
Net Income |
2,512 |
2,193 |
2,180 |
1,543 |
1,679 |
|||||||||||||||
Less: Net income attributable to noncontrolling interests |
- |
- |
- |
(4 |
) | (6) |
||||||||||||||
Net Income Attributable to Bancorp |
2,512 |
2,193 |
2,180 |
1,547 |
1,685 |
|||||||||||||||
Dividends on preferred stock |
93 |
75 |
75 |
75 |
75 |
|||||||||||||||
Net Income Available to Common Shareholders |
$ |
2,419 |
2,118 |
2,105 |
1,472 |
1,610 |
||||||||||||||
Earnings per share - basic |
$ |
3.38 |
3.11 |
2.86 |
1.92 |
2.00 |
||||||||||||||
Earnings per share - diluted |
$ |
3.33 |
3.06 |
2.81 |
1.91 |
1.97 |
||||||||||||||
Cash dividends declared per common share |
$ |
0.94 |
0.74 |
0.60 |
0.53 |
0.52 |
(a) |
These are non-GAAP measures. For further information, refer to the Non-GAAP Financial Measures section of MD&A. |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Net interest income (U.S. GAAP) |
$ |
4,797 |
4,140 |
3,798 |
||||||||
Add: FTE adjustment |
17 |
16 |
26 |
|||||||||
Net interest income on an FTE basis (1) |
$ |
4,814 |
4,156 |
3,824 |
||||||||
Interest income (U.S. GAAP) |
$ |
6,254 |
5,183 |
4,489 |
||||||||
Add: FTE adjustment |
17 |
16 |
26 |
|||||||||
Interest income on an FTE basis (2) |
$ |
6,271 |
5,199 |
4,515 |
||||||||
Interest expense (3) |
$ |
1,457 |
1,043 |
691 |
||||||||
Noninterest income (4) |
3,536 |
2,790 |
3,224 |
|||||||||
Noninterest expense (5) |
4,660 |
3,958 |
3,782 |
|||||||||
Average interest-earning assets (6) |
145,404 |
128,905 |
126,293 |
|||||||||
Average interest-bearing liabilities (7) |
104,708 |
89,959 |
85,090 |
|||||||||
Ratios: |
||||||||||||
Net interest margin on an FTE basis (1) / (6) |
3.31 |
% |
3.22 |
3.03 |
||||||||
Net interest rate spread on an FTE basis ((2) / (6)) - ((3) / (7)) |
2.92 |
2.87 |
2.76 |
|||||||||
Efficiency ratio on an FTE basis (5) / ((1) + (4)) |
55.8 |
57.0 |
53.7 |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
||||||
Net income available to common shareholders (U.S. GAAP) |
$ |
2,419 |
2,118 |
|||||
Add: Intangible amortization, net of tax |
35 |
4 |
||||||
Tangible net income available to common shareholders (1) |
$ |
2,454 |
2,122 |
|||||
Average Bancorp shareholders’ equity (U.S. GAAP) |
$ |
19,902 |
15,970 |
|||||
Less: Average preferred stock |
(1,470 |
) |
(1,331 |
) | ||||
Average goodwill |
(3,888 |
) |
(2,462 |
) | ||||
Average intangible assets |
(169 |
) |
(29 |
) | ||||
|
|
|
||||||
Average tangible common equity, including AOCI (2) |
$ |
14,375 |
12,148 |
|||||
Less: Average AOCI |
(875 |
) |
575 |
|||||
|
|
|
||||||
Average tangible common equity, excluding AOCI (3) |
$ |
13,500 |
12,723 |
|||||
Return on average tangible common equity, including AOCI (1) / (2) |
17.1 |
% |
17.5 |
|||||
Return on average tangible common equity, excluding AOCI (1) / (3) |
18.2 |
16.7 |
As of December 31 ($ in millions) |
2019 |
2018 |
||||||
Total Bancorp Shareholders’ Equity (U.S. GAAP) |
$ |
21,203 |
16,250 |
|||||
Less: Preferred stock |
(1,770 |
) |
(1,331 |
) | ||||
Goodwill |
(4,252 |
) |
(2,478 |
) | ||||
Intangible assets |
(201 |
) |
(40 |
) | ||||
AOCI |
(1,192 |
) |
112 |
|||||
Tangible common equity, excluding unrealized gains / losses (1) |
13,788 |
12,513 |
||||||
Add: Preferred stock |
1,770 |
1,331 |
||||||
Tangible equity (2) |
$ |
15,558 |
13,844 |
|||||
Total Assets (U.S. GAAP) |
$ |
169,369 |
146,069 |
|||||
Less: Goodwill |
(4,252 |
) |
(2,478 |
) | ||||
Intangible assets |
(201 |
) |
(40 |
) | ||||
AOCI, before tax |
(1,509 |
) |
142 |
|||||
Tangible assets, excluding unrealized gains / losses (3) |
$ |
163,407 |
143,693 |
|||||
Ratios: |
||||||||
Tangible equity as a percentage of tangible assets (2) / (3) |
9.52 |
% |
9.63 |
|||||
Tangible common equity as a percentage of tangible assets (1) / (3) |
8.44 |
8.71 |
As of ($ in millions) |
December 31, 2019 |
December 31, 2018 |
||||||||||||||||
Balance |
Level 3 |
Balance |
Level 3 |
|||||||||||||||
Assets carried at fair value |
$ |
40,446 |
1,194 |
35,792 |
1,124 |
|||||||||||||
As a percent of total assets |
24 |
% |
1 |
25 |
1 |
|||||||||||||
Liabilities carried at fair value |
$ |
890 |
171 |
1,012 |
133 |
|||||||||||||
As a percent of total liabilities |
1 |
% |
- |
1 |
- |
For the years ended December 31 |
2019 |
2018 |
2017 |
|||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||
($ in millions) |
Average Balance |
Revenue/ Cost |
Average Yield/ Rate |
Average Balance |
Revenue/ Cost |
Average Yield/ Rate |
Average Balance |
Revenue/ Cost |
Average Yield/ Rate |
|||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||||||||||||||
Loans and leases: (a) |
||||||||||||||||||||||||||||||||||||
Commercial and industrial loans |
$ |
50,168 |
2,313 |
4.61% |
$ | 42,668 |
1,826 |
4.28% |
$ | 41,577 |
1,514 |
3.64% |
||||||||||||||||||||||||
Commercial mortgage loans |
9,905 |
476 |
4.81 |
6,661 |
298 |
4.47 |
6,844 |
256 |
3.74 |
|||||||||||||||||||||||||||
Commercial construction loans |
5,174 |
278 |
5.37 |
4,793 |
240 |
5.01 |
4,374 |
179 |
4.09 |
|||||||||||||||||||||||||||
Commercial leases |
3,578 |
119 |
3.31 |
3,795 |
108 |
2.84 |
4,011 |
82 |
2.04 |
|||||||||||||||||||||||||||
Total commercial loans and leases |
68,825 |
3,186 |
4.63 |
57,917 |
2,472 |
4.27 |
56,806 |
2,031 |
3.58 |
|||||||||||||||||||||||||||
Residential mortgage loans |
17,337 |
635 |
3.66 |
16,150 |
580 |
3.59 |
16,053 |
566 |
3.53 |
|||||||||||||||||||||||||||
Home equity |
6,286 |
324 |
5.16 |
6,631 |
326 |
4.92 |
7,308 |
310 |
4.24 |
|||||||||||||||||||||||||||
Indirect secured consumer loans |
10,345 |
423 |
4.08 |
8,993 |
304 |
3.38 |
9,407 |
275 |
2.92 |
|||||||||||||||||||||||||||
Credit card |
2,437 |
304 |
12.49 |
2,280 |
279 |
12.25 |
2,141 |
253 |
11.84 |
|||||||||||||||||||||||||||
Other consumer loans |
2,564 |
196 |
7.63 |
1,905 |
132 |
6.94 |
1,016 |
68 |
6.68 |
|||||||||||||||||||||||||||
Total consumer loans |
38,969 |
1,882 |
4.83 |
35,959 |
1,621 |
4.51 |
35,925 |
1,472 |
4.10 |
|||||||||||||||||||||||||||
Total loans and leases |
$ |
107,794 |
5,068 |
4.70% |
$ | 93,876 |
4,093 |
4.36% |
$ | 92,731 |
3,503 |
3.78% |
||||||||||||||||||||||||
Securities: |
||||||||||||||||||||||||||||||||||||
Taxable |
$ |
35,429 |
1,160 |
3.28% |
$ | 33,487 |
1,079 |
3.22% |
$ | 32,106 |
993 |
3.09% |
||||||||||||||||||||||||
Exempt from income taxes (a) |
41 |
2 |
3.97 |
66 |
2 |
3.37 |
66 |
4 |
5.45 |
|||||||||||||||||||||||||||
Other short-term investments |
2,140 |
41 |
1.91 |
1,476 |
25 |
1.68 |
1,390 |
15 |
1.04 |
|||||||||||||||||||||||||||
Total interest-earning assets |
$ |
145,404 |
6,271 |
4.31% |
$ | 128,905 |
5,199 |
4.03% |
$ | 126,293 |
4,515 |
3.57% |
||||||||||||||||||||||||
Cash and due from banks |
2,748 |
2,200 |
2,224 |
|||||||||||||||||||||||||||||||||
Other assets |
16,903 |
12,203 |
13,236 |
|||||||||||||||||||||||||||||||||
Allowance for loan and lease losses |
(1,119 |
) |
(1,125 |
) | (1,226 |
) | ||||||||||||||||||||||||||||||
Total assets |
$ |
163,936 |
$ | 142,183 |
$ | 140,527 |
||||||||||||||||||||||||||||||
Liabilities and Equity: |
||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||||||||
Interest checking deposits |
$ |
36,658 |
396 |
1.08% |
$ | 29,818 |
252 |
0.85% |
$ | 26,382 |
109 |
0.41% |
||||||||||||||||||||||||
Savings deposits |
14,041 |
22 |
0.16 |
13,330 |
14 |
0.10 |
13,958 |
8 |
0.06 |
|||||||||||||||||||||||||||
Money market deposits |
25,879 |
272 |
1.05 |
21,769 |
162 |
0.74 |
20,231 |
74 |
0.37 |
|||||||||||||||||||||||||||
Foreign office deposits |
209 |
1 |
0.63 |
363 |
1 |
0.33 |
388 |
1 |
0.20 |
|||||||||||||||||||||||||||
Other time deposits |
5,470 |
98 |
1.79 |
4,106 |
59 |
1.44 |
3,771 |
46 |
1.23 |
|||||||||||||||||||||||||||
Total interest-bearing core deposits |
82,257 |
789 |
0.96 |
69,386 |
488 |
0.70 |
64,730 |
238 |
0.37 |
|||||||||||||||||||||||||||
Certificates $100,000 and over |
4,504 |
97 |
2.14 |
2,426 |
41 |
1.69 |
2,564 |
36 |
1.38 |
|||||||||||||||||||||||||||
Other deposits |
265 |
6 |
2.27 |
476 |
9 |
1.94 |
277 |
3 |
1.05 |
|||||||||||||||||||||||||||
Federal funds purchased |
1,267 |
29 |
2.26 |
1,509 |
30 |
1.97 |
557 |
6 |
1.01 |
|||||||||||||||||||||||||||
Other short-term borrowings |
1,046 |
28 |
2.67 |
1,611 |
29 |
1.82 |
3,158 |
30 |
0.96 |
|||||||||||||||||||||||||||
Long-term debt |
15,369 |
508 |
3.30 |
14,551 |
446 |
3.06 |
13,804 |
378 |
2.74 |
|||||||||||||||||||||||||||
Total interest-bearing liabilities |
$ |
104,708 |
1,457 |
1.39% |
$ | 89,959 |
1,043 |
1.16% |
$ | 85,090 |
691 |
0.81% |
||||||||||||||||||||||||
Demand deposits |
34,343 |
32,634 |
35,093 |
|||||||||||||||||||||||||||||||||
Other liabilities |
4,897 |
3,603 |
3,897 |
|||||||||||||||||||||||||||||||||
Total liabilities |
$ |
143,948 |
$ | 126,196 |
$ | 124,080 |
||||||||||||||||||||||||||||||
Total equity |
$ |
19,988 |
$ | 15,987 |
$ | 16,447 |
||||||||||||||||||||||||||||||
Total liabilities and equity |
$ |
163,936 |
$ | 142,183 |
$ | 140,527 |
||||||||||||||||||||||||||||||
Net interest income (FTE) (b) |
$ |
4,814 |
$ | 4,156 |
$ | 3,824 |
||||||||||||||||||||||||||||||
Net interest margin (FTE) (b) |
3.31% |
3.22% |
3.03% |
|||||||||||||||||||||||||||||||||
Net interest rate spread (FTE) (b) |
2.92 |
2.87 |
2.76 |
|||||||||||||||||||||||||||||||||
Interest-bearing liabilities to interest-earning assets |
72.01 |
69.79 |
67.37 |
|||||||||||||||||||||||||||||||||
(a) |
The FTE adjustments included in the above table were $17 December 31, 2019 |
(b) |
Net interest income (FTE), net interest margin (FTE) and net interest rate spread (FTE) are non-GAAP measures. For further information, refer to the Non-GAAP Financial Measures section of MD&A. |
TABLE 8: CHANGES IN NET INTEREST INCOME ATTRIBUTABLE TO VOLUME AND YIELD/RATE (a) |
||||||||||||||||||||||||
For the years ended December 31 |
2019 Compared to 2018 |
2018 Compared to 2017 |
||||||||||||||||||||||
($ in millions) |
Volume |
Yield/Rate |
Total |
Volume |
Yield/Rate |
Total |
||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||
Loans and leases: |
||||||||||||||||||||||||
Commercial and industrial loans |
$ |
338 |
149 |
487 |
41 |
271 |
312 |
|||||||||||||||||
Commercial mortgage loans |
154 |
24 |
178 |
(7 |
) | 49 |
42 |
|||||||||||||||||
Commercial construction loans |
20 |
18 |
38 |
18 |
43 |
61 |
||||||||||||||||||
Commercial leases |
(6 |
) |
17 |
11 |
(4 |
) | 30 |
26 |
||||||||||||||||
Total commercial loans and leases |
506 |
208 |
714 |
48 |
393 |
441 |
||||||||||||||||||
Residential mortgage loans |
43 |
12 |
55 |
3 |
11 |
14 |
||||||||||||||||||
Home equity |
(17 |
) |
15 |
(2 |
) |
(31 |
) | 47 |
16 |
|||||||||||||||
Indirect secured consumer loans |
50 |
69 |
119 |
(12 |
) | 41 |
29 |
|||||||||||||||||
Credit card |
20 |
5 |
25 |
17 |
9 |
26 |
||||||||||||||||||
Other consumer loans |
50 |
14 |
64 |
61 |
3 |
64 |
||||||||||||||||||
Total consumer loans |
146 |
115 |
261 |
38 |
111 |
149 |
||||||||||||||||||
Total loans and leases |
$ |
652 |
323 |
975 |
86 |
504 |
590 |
|||||||||||||||||
Securities: |
||||||||||||||||||||||||
Taxable |
63 |
18 |
81 |
44 |
42 |
86 |
||||||||||||||||||
Exempt from income taxes |
- |
- |
- |
(1 |
) | (1 |
) | (2) |
||||||||||||||||
Other short-term investments |
12 |
4 |
16 |
1 |
9 |
10 |
||||||||||||||||||
Total change in interest income |
$ |
727 |
345 |
1,072 |
130 |
554 |
684 |
|||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||
Interest checking deposits |
$ |
65 |
79 |
144 |
15 |
128 |
143 |
|||||||||||||||||
Savings deposits |
- |
8 |
8 |
- |
6 |
6 |
||||||||||||||||||
Money market deposits |
35 |
75 |
110 |
7 |
81 |
88 |
||||||||||||||||||
Foreign office deposits |
(1 |
) |
1 |
- |
- |
- |
- |
|||||||||||||||||
Other time deposits |
22 |
17 |
39 |
5 |
8 |
13 |
||||||||||||||||||
Total interest-bearing core deposits |
121 |
180 |
301 |
27 |
223 |
250 |
||||||||||||||||||
Certificates $100,000 and over |
43 |
13 |
56 |
(2 |
) | 7 |
5 |
|||||||||||||||||
Other deposits |
(4 |
) |
1 |
(3 |
) |
3 |
3 |
6 |
||||||||||||||||
Federal funds purchased |
(5 |
) |
4 |
(1 |
) |
15 |
9 |
24 |
||||||||||||||||
Other short-term borrowings |
(12 |
) |
11 |
(1 |
) |
(20 |
) | 19 |
(1) |
|||||||||||||||
Long-term debt |
25 |
37 |
62 |
22 |
46 |
68 |
||||||||||||||||||
Total change in interest expense |
$ |
168 |
246 |
414 |
45 |
307 |
352 |
|||||||||||||||||
Total change in net interest income |
$ |
559 |
99 |
658 |
85 |
247 |
332 |
|||||||||||||||||
(a) |
Changes in interest not solely due to volume or yield/rate are allocated in proportion to the absolute dollar amount of change in volume and yield/rate. |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
||||||||||||||||
Corporate banking revenue |
$ |
570 |
438 |
353 |
432 |
384 |
|||||||||||||||
Service charges on deposits |
565 |
549 |
554 |
558 |
563 |
||||||||||||||||
Wealth and asset management revenue |
487 |
444 |
419 |
404 |
418 |
||||||||||||||||
Card and processing revenue |
360 |
329 |
313 |
319 |
302 |
||||||||||||||||
Mortgage banking net revenue |
287 |
212 |
224 |
285 |
348 |
||||||||||||||||
Other noninterest income |
1,224 |
887 |
1,357 |
688 |
979 |
||||||||||||||||
Securities gains (losses), net |
40 |
(54 |
) | 2 |
10 |
9 |
|||||||||||||||
Securities gains (losses), net - non-qualifying hedges on MSRs |
3 |
(15 |
) | 2 |
- |
- |
|||||||||||||||
Total noninterest income |
$ |
3,536 |
2,790 |
3,224 |
2,696 |
3,003 |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
||||||||||
Origination fees and gains on loan sales |
$ |
175 |
100 |
138 |
|||||||||
Net mortgage servicing revenue: |
|||||||||||||
Gross mortgage servicing fees |
267 |
216 |
206 |
||||||||||
Net valuation adjustments on MSRs and free-standing derivatives purchased to economically hedge MSRs |
(155 |
) |
(104 |
) | (120 |
) | |||||||
Net mortgage servicing revenue |
112 |
112 |
86 |
||||||||||
Total mortgage banking net revenue |
$ |
287 |
212 |
224 |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
||||||||||
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio |
$ |
221 |
(21 |
) | 2 |
||||||||
Changes in fair value: |
|||||||||||||
Due to changes in inputs or assumptions |
(203 |
) |
42 |
(1 |
) | ||||||||
Other changes in fair value |
(173 |
) |
(125 |
) | (121 |
) | |||||||
Net valuation adjustments on MSRs and free-standing derivatives purchased to economically hedge MSRs |
$ |
(155 |
) |
(104 |
) | (120 |
) |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Gain on sale of Worldpay, Inc. shares |
$ |
562 |
205 |
1,037 |
||||||||
Income from the TRA associated with Worldpay, Inc. |
346 |
20 |
44 |
|||||||||
Operating lease income |
151 |
84 |
96 |
|||||||||
Private equity investment income |
65 |
63 |
36 |
|||||||||
BOLI income |
60 |
56 |
52 |
|||||||||
Cardholder fees |
58 |
56 |
54 |
|||||||||
Consumer loan and lease fees |
23 |
23 |
23 |
|||||||||
Banking center income |
22 |
21 |
20 |
|||||||||
Insurance income |
19 |
20 |
8 |
|||||||||
Net gains (losses) on loan sales |
3 |
2 |
(2) |
|||||||||
Equity method income from interest in Worldpay Holding, LLC |
2 |
1 |
47 |
|||||||||
Loss on swap associated with the sale of Visa, Inc. Class B Shares |
(107 |
) |
(59 |
) | (80) |
|||||||
Net losses on disposition and impairment of bank premises and equipment |
(23 |
) |
(43 |
) | - |
|||||||
Loss on sale of business |
(4 |
) |
- |
- |
||||||||
Gain related to Vantiv, Inc.’s acquisition of Worldpay Group plc. |
- |
414 |
- |
|||||||||
Other, net |
47 |
24 |
22 |
|||||||||
Total other noninterest income |
$ |
1,224 |
887 |
1,357 |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
||||||||||||||||
Salaries, wages and incentives |
$ |
2,001 |
1,783 |
1,633 |
1,612 |
1,525 |
|||||||||||||||
Employee benefits |
417 |
332 |
356 |
339 |
323 |
||||||||||||||||
Technology and communications |
422 |
285 |
245 |
234 |
224 |
||||||||||||||||
Net occupancy expense |
332 |
292 |
295 |
299 |
321 |
||||||||||||||||
Card and processing expense |
130 |
123 |
129 |
132 |
153 |
||||||||||||||||
Equipment expense |
129 |
123 |
117 |
118 |
124 |
||||||||||||||||
Other noninterest expense |
1,229 |
1,020 |
1,007 |
1,003 |
973 |
||||||||||||||||
Total noninterest expense |
$ |
4,660 |
3,958 |
3,782 |
3,737 |
3,643 |
|||||||||||||||
Efficiency ratio on an FTE basis (a) |
55.8 |
% |
57.0 |
53.7 |
59.0 |
55.6 |
(a) |
This is a non-GAAP measure. For further information, refer to the Non-GAAP Financial Measures section of MD&A. |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
||||||
Salaries, wages and incentives |
$ |
87 |
1 |
|||||
Employee benefits |
3 |
- |
||||||
Technology and communications |
71 |
6 |
||||||
Net occupancy expense |
13 |
- |
||||||
Card and processing expense |
1 |
1 |
||||||
Equipment expense |
1 |
- |
||||||
Other noninterest expense |
46 |
23 |
||||||
Total |
$ |
222 |
31 |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Marketing |
$ |
162 |
147 |
114 |
||||||||
Loan and lease |
142 |
112 |
102 |
|||||||||
Operating lease |
124 |
76 |
87 |
|||||||||
Losses and adjustments |
102 |
61 |
59 |
|||||||||
FDIC insurance and other taxes |
81 |
119 |
127 |
|||||||||
Professional service fees |
70 |
67 |
83 |
|||||||||
Data processing |
70 |
57 |
58 |
|||||||||
Travel |
68 |
52 |
46 |
|||||||||
Intangible amortization |
45 |
5 |
2 |
|||||||||
Postal and courier |
38 |
35 |
42 |
|||||||||
Donations |
30 |
21 |
28 |
|||||||||
Recruitment and education |
28 |
32 |
35 |
|||||||||
Supplies |
14 |
13 |
14 |
|||||||||
Insurance |
14 |
13 |
12 |
|||||||||
Loss (gain) on partnership investments |
2 |
(4 |
) | 14 |
||||||||
Other, net |
239 |
214 |
184 |
|||||||||
Total other noninterest expense |
$ |
1,229 |
1,020 |
1,007 |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||
Income before income taxes |
$ |
3,202 |
2,765 |
2,979 |
2,208 |
2,493 |
||||||||||||||
Applicable income tax expense |
690 |
572 |
799 |
665 |
814 |
|||||||||||||||
Effective tax rate |
21.6 |
% |
20.7 |
26.8 |
30.1 |
32.6 |
TABLE 17: NET INCOME (LOSS) BY BUSINESS SEGMENT |
||||||||||||
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Income Statement Data |
||||||||||||
Commercial Banking |
$ |
1,424 |
1,139 |
827 |
||||||||
Branch Banking |
860 |
702 |
455 |
|||||||||
Consumer Lending |
92 |
(1 |
) | 17 |
||||||||
Wealth and Asset Management |
112 |
97 |
65 |
|||||||||
General Corporate and Other |
24 |
256 |
816 |
|||||||||
Net income |
$ |
2,512 |
2,193 |
2,180 |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Income Statement Data |
||||||||||||
Net interest income (FTE) (a) |
$ |
2,377 |
1,729 |
1,678 |
||||||||
Provision for (benefit from) credit losses |
183 |
(26 |
) | 38 |
||||||||
Noninterest income: |
|
|||||||||||
Corporate banking revenue |
565 |
432 |
348 |
|||||||||
Service charges on deposits |
308 |
273 |
287 |
|||||||||
Other noninterest income |
314 |
212 |
203 |
|||||||||
Noninterest expense: |
||||||||||||
Personnel costs |
466 |
344 |
294 |
|||||||||
Other noninterest expense |
1,155 |
919 |
940 |
|||||||||
Income before income taxes (FTE) |
1,760 |
1,409 |
1,244 |
|||||||||
Applicable income tax expense (a)(b) |
336 |
270 |
417 |
|||||||||
Net income |
$ |
1,424 |
1,139 |
827 |
||||||||
Average Balance Sheet Data |
||||||||||||
Commercial loans and leases, including held for sale |
$ |
65,475 |
54,748 |
53,743 |
||||||||
Demand deposits |
16,424 |
16,560 |
19,519 |
|||||||||
Interest checking deposits |
18,259 |
12,203 |
9,080 |
|||||||||
Savings and money market deposits |
4,904 |
4,128 |
5,337 |
|||||||||
Other time deposits and certificates $100,000 and over |
332 |
377 |
899 |
|||||||||
Foreign office deposits |
209 |
362 |
372 |
(a) |
Includes FTE adjustments of $17 , $16 and $26 for the years ended December 31, 2019, 2018 and 2017, respectively. |
(b) |
Applicable income tax expense for all periods includes the tax benefit from tax-exempt income, tax-advantaged investments and tax credits partially offset by the effect of certain nondeductible expenses. Refer to the Applicable Income Taxes subsection of the Statements of Income Analysis section of MD&A for additional information. |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Income Statement Data |
||||||||||||
Net interest income |
$ |
2,371 |
2,034 |
1,782 |
||||||||
Provision for credit losses |
224 |
171 |
153 |
|||||||||
Noninterest income: |
|
|||||||||||
Card and processing revenue |
285 |
266 |
251 |
|||||||||
Service charges on deposits |
260 |
275 |
265 |
|||||||||
Wealth and asset management revenue |
158 |
150 |
141 |
|||||||||
Other noninterest income |
99 |
63 |
99 |
|||||||||
Noninterest expense: |
||||||||||||
Personnel costs |
601 |
536 |
526 |
|||||||||
Net occupancy and equipment expense |
221 |
225 |
228 |
|||||||||
Card and processing expense |
123 |
121 |
127 |
|||||||||
Other noninterest expense |
915 |
846 |
800 |
|||||||||
Income before income taxes |
1,089 |
889 |
704 |
|||||||||
Applicable income tax expense |
229 |
187 |
249 |
|||||||||
Net income |
$ |
860 |
702 |
455 |
||||||||
Average Balance Sheet Data |
||||||||||||
Consumer loans |
$ |
13,200 |
13,034 |
13,008 |
||||||||
Commercial loans |
2,170 |
1,938 |
1,918 |
|||||||||
Demand deposits |
15,802 |
14,336 |
13,895 |
|||||||||
Interest checking deposits |
10,716 |
10,187 |
10,226 |
|||||||||
Savings and money market deposits |
33,173 |
29,473 |
27,603 |
|||||||||
Other time deposits and certificates $100,000 and over |
7,532 |
5,348 |
4,965 |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Income Statement Data |
||||||||||||
Net interest income |
$ |
325 |
237 |
240 |
||||||||
Provision for credit losses |
49 |
42 |
40 |
|||||||||
Noninterest income: |
||||||||||||
Mortgage banking net revenue |
279 |
206 |
217 |
|||||||||
Other noninterest income |
17 |
(1 |
) | 20 |
||||||||
Noninterest expense: |
||||||||||||
Personnel costs |
196 |
192 |
189 |
|||||||||
Other noninterest expense |
259 |
210 |
222 |
|||||||||
Income (loss) before income taxes |
117 |
(2 |
) | 26 |
||||||||
Applicable income tax expense (benefit) |
25 |
(1 |
) | 9 |
||||||||
Net income (loss) |
$ |
92 |
(1 |
) | 17 |
|||||||
Average Balance Sheet Data |
||||||||||||
Residential mortgage loans, including held for sale |
$ |
13,027 |
11,803 |
11,494 |
||||||||
Home equity |
220 |
243 |
293 |
|||||||||
Indirect secured consumer loans |
10,109 |
8,676 |
8,939 |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Income Statement Data |
||||||||||||
Net interest income |
$ |
182 |
182 |
154 |
||||||||
Provision for credit losses |
- |
12 |
6 |
|||||||||
Noninterest income: |
||||||||||||
Wealth and asset management revenue |
469 |
429 |
407 |
|||||||||
Other noninterest income |
20 |
27 |
12 |
|||||||||
Noninterest expense: |
||||||||||||
Personnel costs |
217 |
202 |
181 |
|||||||||
Other noninterest expense |
312 |
302 |
287 |
|||||||||
Income before income taxes |
142 |
122 |
99 |
|||||||||
Applicable income tax expense |
30 |
25 |
34 |
|||||||||
Net income |
$ |
112 |
97 |
65 |
||||||||
Average Balance Sheet Data |
||||||||||||
Loans and leases, including held for sale |
$ |
3,580 |
3,421 |
3,277 |
||||||||
Core deposits |
9,701 |
9,332 |
8,782 |
2019 |
2018 |
|||||||||||||||||||||||||||||||||||
For the three months ended ($ in millions, except per share data) |
12/31 |
9/30 |
6/30 |
3/31 |
12/31 |
9/30 |
6/30 |
3/31 |
||||||||||||||||||||||||||||
Net interest income (a) |
$ |
1,232 |
1,246 |
1,250 |
1,086 |
1,085 |
1,047 |
1,024 |
999 |
|||||||||||||||||||||||||||
Provision for credit losses |
162 |
134 |
85 |
90 |
97 |
84 |
14 |
13 |
||||||||||||||||||||||||||||
Noninterest income |
1,035 |
740 |
660 |
1,101 |
575 |
563 |
743 |
909 |
||||||||||||||||||||||||||||
Noninterest expense |
1,160 |
1,159 |
1,243 |
1,097 |
975 |
972 |
1,001 |
1,010 |
||||||||||||||||||||||||||||
Net income attributable to Bancorp |
734 |
549 |
453 |
775 |
455 |
436 |
602 |
701 |
||||||||||||||||||||||||||||
Net income available to common shareholders |
701 |
530 |
427 |
760 |
432 |
421 |
579 |
686 |
||||||||||||||||||||||||||||
Earnings per share, basic |
0.97 |
0.72 |
0.57 |
1.14 |
0.65 |
0.62 |
0.84 |
0.98 |
||||||||||||||||||||||||||||
Earnings per share, diluted |
0.96 |
0.71 |
0.57 |
1.12 |
0.64 |
0.61 |
0.82 |
0.96 |
(a) |
Amounts presented on an FTE basis. The FTE adjustment was $4 for both the three months ended December 31, 2019 and September 30, 2019 $ 5 June 30, 2019 and $4 for the three months ended March 31, 2019 The FTE adjustment was $4 for the three months ended December 31, 2018, September 30, 2018 and June 30, 2018 and $3 for the three months ended March 31, 2018. |
TABLE 23: COMPONENTS OF LOANS AND LEASES (INCLUDING LOANS AND LEASES HELD FOR SALE) |
||||||||||||||||||||
As of December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||
Commercial loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
$ |
50,677 |
44,407 |
41,170 |
41,736 |
42,151 |
||||||||||||||
Commercial mortgage loans |
10,964 |
6,977 |
6,610 |
6,904 |
6,991 |
|||||||||||||||
Commercial construction loans |
5,090 |
4,657 |
4,553 |
3,903 |
3,214 |
|||||||||||||||
Commercial leases |
3,363 |
3,600 |
4,068 |
3,974 |
3,854 |
|||||||||||||||
Total commercial loans and leases |
70,094 |
59,641 |
56,401 |
56,517 |
56,210 |
|||||||||||||||
Consumer loans: |
||||||||||||||||||||
Residential mortgage loans |
17,988 |
16,041 |
16,077 |
15,737 |
14,424 |
|||||||||||||||
Home equity |
6,083 |
6,402 |
7,014 |
7,695 |
8,336 |
|||||||||||||||
Indirect secured consumer loans (a) |
11,538 |
8,976 |
9,112 |
9,983 |
11,497 |
|||||||||||||||
Credit card |
2,532 |
2,470 |
2,299 |
2,237 |
2,360 |
|||||||||||||||
Other consumer loans |
2,723 |
2,342 |
1,559 |
680 |
658 |
|||||||||||||||
Total consumer loans |
40,864 |
36,231 |
36,061 |
36,332 |
37,275 |
|||||||||||||||
Total loans and leases |
$ |
110,958 |
95,872 |
92,462 |
92,849 |
93,485 |
||||||||||||||
Total portfolio loans and leases (excluding loans and leases held for sale) |
$ |
109,558 |
95,265 |
91,970 |
92,098 |
92,582 |
(a) |
The Bancorp acquired indirect motorcycle, powersport, recreational vehicle and marine loans in the acquisition of MB Financial, Inc. These loans are included in addition to automobile loans in the line item “indirect secured consumer loans.” |
TABLE 24: LOANS AND LEASES ACQUIRED |
||||
($ in millions) |
||||
Commercial loans and leases: |
||||
Commercial and industrial loans |
$ | 6,546 |
||
Commercial mortgage loans |
3,586 |
|||
Commercial construction loans |
495 |
|||
Commercial leases |
444 |
|||
Total commercial loans and leases |
11,071 |
|||
Consumer loans: |
||||
Residential mortgage loans |
1,319 |
|||
Home equity |
170 |
|||
Indirect secured consumer loans |
800 |
|||
Credit card |
19 |
|||
Other consumer loans |
44 |
|||
Total consumer loans |
2,352 |
|||
Total loans and leases |
$ | 13,423 |
||
Total portfolio loans and leases (excluding loans and leases held for sale) |
$ | 13,411 |
TABLE 25: COMPONENTS OF AVERAGE LOANS AND LEASES (INCLUDING LOANS AND LEASES HELD FOR SALE) |
||||||||||||||||||||
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||
Commercial loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
$ |
50,168 |
42,668 |
41,577 |
43,184 |
42,594 |
||||||||||||||
Commercial mortgage loans |
9,905 |
6,661 |
6,844 |
6,899 |
7,121 |
|||||||||||||||
Commercial construction loans |
5,174 |
4,793 |
4,374 |
3,648 |
2,717 |
|||||||||||||||
Commercial leases |
3,578 |
3,795 |
4,011 |
3,916 |
3,796 |
|||||||||||||||
Total commercial loans and leases |
68,825 |
57,917 |
56,806 |
57,647 |
56,228 |
|||||||||||||||
Consumer loans: |
||||||||||||||||||||
Residential mortgage loans |
17,337 |
16,150 |
16,053 |
15,101 |
13,798 |
|||||||||||||||
Home equity |
6,286 |
6,631 |
7,308 |
7,998 |
8,592 |
|||||||||||||||
Indirect secured consumer loans |
10,345 |
8,993 |
9,407 |
10,708 |
11,847 |
|||||||||||||||
Credit card |
2,437 |
2,280 |
2,141 |
2,205 |
2,303 |
|||||||||||||||
Other consumer loans |
2,564 |
1,905 |
1,016 |
661 |
571 |
|||||||||||||||
Total consumer loans |
38,969 |
35,959 |
35,925 |
36,673 |
37,111 |
|||||||||||||||
Total average loans and leases |
$ |
107,794 |
93,876 |
92,731 |
94,320 |
93,339 |
||||||||||||||
Total average portfolio loans and leases (excluding loans and leases held for sale) |
$ |
106,840 |
93,216 |
92,068 |
93,426 |
92,423 |
TABLE 26: COMPONENTS OF INVESTMENT SECURITIES |
||||||||||||||||||||
As of December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||
Available-for-sale debt and other securities (amortized cost basis): |
||||||||||||||||||||
U.S. Treasury and federal agencies securities |
$ |
74 |
98 |
98 |
547 |
1,155 |
||||||||||||||
Obligations of states and political subdivisions securities |
18 |
2 |
43 |
44 |
50 |
|||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||
Agency residential mortgage-backed securities (a) |
13,746 |
16,403 |
15,281 |
15,525 |
14,811 |
|||||||||||||||
Agency commercial mortgage-backed securities |
15,141 |
10,770 |
10,113 |
9,029 |
7,795 |
|||||||||||||||
Non-agency commercial mortgage-backed securities |
3,242 |
3,305 |
3,247 |
3,076 |
2,801 |
|||||||||||||||
Asset-backed securities and other debt securities |
2,189 |
1,998 |
2,183 |
2,106 |
1,363 |
|||||||||||||||
Other securities (b) |
556 |
552 |
612 |
607 |
604 |
|||||||||||||||
Total available-for-sale debt and other securities |
$ |
34,966 |
33,128 |
31,577 |
30,934 |
28,579 |
||||||||||||||
Held-to-maturity securities (amortized cost basis): |
||||||||||||||||||||
Obligations of states and political subdivisions securities |
$ |
15 |
16 |
22 |
24 |
68 |
||||||||||||||
Asset-backed securities and other debt securities |
2 |
2 |
2 |
2 |
2 |
|||||||||||||||
Total held-to-maturity securities |
$ |
17 |
18 |
24 |
26 |
70 |
||||||||||||||
Trading debt securities (fair value): |
||||||||||||||||||||
U.S. Treasury and federal agencies securities |
$ |
2 |
16 |
12 |
23 |
19 |
||||||||||||||
Obligations of states and political subdivisions securities |
9 |
35 |
22 |
39 |
9 |
|||||||||||||||
Agency residential mortgage-backed securities |
55 |
68 |
395 |
8 |
6 |
|||||||||||||||
Asset-backed securities and other debt securities |
231 |
168 |
63 |
15 |
19 |
|||||||||||||||
Total trading debt securities |
$ |
297 |
287 |
492 |
85 |
53 |
||||||||||||||
Total equity securities (fair value) |
$ |
564 |
452 |
439 |
416 |
432 |
||||||||||||||
(a) |
Includes interest-only mortgage-backed securities recorded at fair value with fair value changes recorded in securities gains (losses), net in the Consolidated Statements of Income. |
(b) |
Other securities consist of FHLB, FRB and DTCC restricted stock holdings that are carried at cost. |
TABLE 27: CHARACTERISTICS OF AVAILABLE-FOR-SALE DEBT AND OTHER SECURITIES |
||||||||||||||||
As of December 31, 2019 ($ in millions) |
Amortized Cost |
Fair Value |
Weighted-Average Life (in years) |
Weighted-Average Yield |
||||||||||||
U.S. Treasury and federal agencies securities: |
||||||||||||||||
Average life 1 – 5 years |
$ | 74 |
75 |
3.1 |
2.12 |
|||||||||||
Total |
$ | 74 |
75 |
3.1 |
2.12 % |
|||||||||||
Obligations of states and political subdivisions securities: (a) |
||||||||||||||||
Average life of 1 year or less |
- |
- |
0.1 |
7.47 |
||||||||||||
Average life 1 – 5 years |
18 |
18 |
3.2 |
1.74 |
||||||||||||
Total |
$ | 18 |
18 |
3.2 |
1.76 % |
|||||||||||
Agency residential mortgage-backed securities: |
||||||||||||||||
Average life 1 – 5 years |
5,259 |
5,376 |
3.9 |
3.28 |
||||||||||||
Average life 5 – 10 years |
7,592 |
7,823 |
6.8 |
3.11 |
||||||||||||
Average life greater than 10 years |
895 |
916 |
13.9 |
3.21 |
||||||||||||
Total |
$ | 13,746 |
14,115 |
6.1 |
3.18 % |
|||||||||||
Agency commercial mortgage-backed securities: (b) |
||||||||||||||||
Average life of 1 year or less |
195 |
199 |
0.3 |
2.82 |
||||||||||||
Average life 1 – 5 years |
3,833 |
3,962 |
3.2 |
3.14 |
||||||||||||
Average life 5 – 10 years |
7,915 |
8,212 |
7.5 |
3.13 |
||||||||||||
Average life greater than 10 years |
3,198 |
3,320 |
13.5 |
3.27 |
||||||||||||
Total |
$ | 15,141 |
15,693 |
7.6 |
3.16 % |
|||||||||||
Non-agency commercial mortgage-backed securities: |
|
|||||||||||||||
Average life of 1 year or less |
1 |
1 |
0.4 |
3.83 |
||||||||||||
Average life 1 – 5 years |
1,421 |
1,470 |
3.9 |
3.32 |
||||||||||||
Average life 5 – 10 years |
1,820 |
1,894 |
5.8 |
3.25 |
||||||||||||
Total |
$ | 3,242 |
3,365 |
5.0 |
3.28 % |
|||||||||||
Asset-backed securities and other debt securities: |
|
|
||||||||||||||
Average life of 1 year or less |
36 |
36 |
0.8 |
3.57 |
||||||||||||
Average life 1 – 5 years |
1,175 |
1,192 |
2.8 |
3.99 |
||||||||||||
Average life 5 – 10 years |
935 |
933 |
7.0 |
3.68 |
||||||||||||
Average life greater than 10 years |
43 |
45 |
11.5 |
3.43 |
||||||||||||
Total |
$ | 2,189 |
2,206 |
4.7 |
3.84 % |
|||||||||||
Other securities |
556 |
556 |
||||||||||||||
Total available-for-sale debt and other securities |
$ | 34,966 |
36,028 |
6.6 |
3.22 % |
(a) |
Taxable-equivalent yield adjustments included in the above table are 1.57%, 0.00% and 0.01% for securities with an average life of 1 year or less, 1-5 years and in total, respectively. |
(b) |
Taxable-equivalent yield adjustments included in the above table are 0.00%, 0.00%, 0.00%, 0.03% and 0.01% for securities with an average life of 1 year or less, 1-5 years, 5-10 years, greater than 10 years and in total, respectively. |
TABLE 28: COMPONENTS OF DEPOSITS |
||||||||||||||||||||
As of December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||
Demand |
$ |
35,968 |
32,116 |
35,276 |
35,782 |
36,267 |
||||||||||||||
Interest checking |
40,409 |
34,058 |
27,703 |
26,679 |
26,768 |
|||||||||||||||
Savings |
14,248 |
12,907 |
13,425 |
13,941 |
14,601 |
|||||||||||||||
Money market |
27,277 |
22,597 |
20,097 |
20,749 |
18,494 |
|||||||||||||||
Foreign office |
221 |
240 |
484 |
426 |
464 |
|||||||||||||||
Transaction deposits |
118,123 |
101,918 |
96,985 |
97,577 |
96,594 |
|||||||||||||||
Other time |
5,237 |
4,490 |
3,775 |
3,866 |
4,019 |
|||||||||||||||
Core deposits |
123,360 |
106,408 |
100,760 |
101,443 |
100,613 |
|||||||||||||||
Certificates $100,000 and over (a) |
3,702 |
2,427 |
2,402 |
2,378 |
2,592 |
|||||||||||||||
Total deposits |
$ |
127,062 |
108,835 |
103,162 |
103,821 |
103,205 |
(a) |
Includes $2.1 billion, December 31, 2019 |
TABLE 29: DEPOSITS ASSUMED |
||||
($ in millions) |
||||
Demand |
$ | 6,010 |
||
Interest checking |
2,408 |
|||
Savings |
1,175 |
|||
Money market |
2,571 |
|||
Total transaction deposits |
12,164 |
|||
Other time |
546 |
|||
Total core deposits |
12,710 |
|||
Certificates $100,000 and over |
1,779 |
|||
Total deposits |
$ | 14,489 |
TABLE 30: COMPONENTS OF AVERAGE DEPOSITS |
||||||||||||||||||||
($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||
Demand |
$ |
34,343 |
32,634 |
35,093 |
35,862 |
35,164 |
||||||||||||||
Interest checking |
36,658 |
29,818 |
26,382 |
25,143 |
26,160 |
|||||||||||||||
Savings |
14,041 |
13,330 |
13,958 |
14,346 |
14,951 |
|||||||||||||||
Money market |
25,879 |
21,769 |
20,231 |
19,523 |
18,152 |
|||||||||||||||
Foreign office |
209 |
363 |
388 |
497 |
817 |
|||||||||||||||
Transaction deposits |
111,130 |
97,914 |
96,052 |
95,371 |
95,244 |
|||||||||||||||
Other time |
5,470 |
4,106 |
3,771 |
4,010 |
4,051 |
|||||||||||||||
Core deposits |
116,600 |
102,020 |
99,823 |
99,381 |
99,295 |
|||||||||||||||
Certificates $100,000 and over (a) |
4,504 |
2,426 |
2,564 |
2,735 |
2,869 |
|||||||||||||||
Other |
265 |
476 |
277 |
333 |
57 |
|||||||||||||||
Total average deposits |
$ |
121,369 |
104,922 |
102,664 |
102,449 |
102,221 |
(a) |
Includes $2.6 billion December 31, 2019 |
TABLE 31: CONTRACTUAL MATURITIES OF CERTIFICATES $100,000 AND OVER |
||||
($ in millions) |
||||
Next 3 months |
$ | 1,884 |
||
3-6 months |
806 |
|||
6-12 months |
525 |
|||
After 12 months |
487 |
|||
Total certificates $100,000 and over |
$ | 3,702 |
TABLE 32: CONTRACTUAL MATURITIES OF OTHER TIME DEPOSITS AND CERTIFICATES $100,000 AND OVER |
||||
($ in millions) |
||||
Next 12 months |
$ | 7,714 |
||
13-24 months |
914 |
|||
25-36 months |
186 |
|||
37-48 months |
52 |
|||
49-60 months |
66 |
|||
After 60 months |
7 |
|||
Total other time deposits and certificates $100,000 and over |
$ | 8,939 |
TABLE 33: COMPONENTS OF BORROWINGS |
||||||||||||||||||||
As of December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||
Federal funds purchased |
$ |
260 |
1,925 |
174 |
132 |
151 |
||||||||||||||
Other short-term borrowings |
1,011 |
573 |
4,012 |
3,535 |
1,507 |
|||||||||||||||
Long-term debt |
14,970 |
14,426 |
14,904 |
14,388 |
15,810 |
|||||||||||||||
Total borrowings |
$ |
16,241 |
16,924 |
19,090 |
18,055 |
17,468 |
TABLE 34: COMPONENTS OF AVERAGE BORROWINGS |
||||||||||||||||||||
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||
Federal funds purchased |
$ |
1,267 |
1,509 |
557 |
506 |
920 |
||||||||||||||
Other short-term borrowings |
1,046 |
1,611 |
3,158 |
2,845 |
1,721 |
|||||||||||||||
Long-term debt |
15,369 |
14,551 |
13,804 |
15,394 |
14,644 |
|||||||||||||||
Total average borrowings |
$ |
17,682 |
17,671 |
17,519 |
18,745 |
17,285 |
TABLE 35: POTENTIAL PROBLEM PORTFOLIO LOANS AND LEASES |
||||||||||||
As of December 31, 2019 ($ in millions) |
Carrying Value (a) |
Unpaid Principal Balance |
Exposure |
|||||||||
Commercial and industrial loans |
$ |
1,100 |
1,120 |
1,488 |
||||||||
Commercial mortgage loans |
342 |
390 |
342 |
|||||||||
Commercial construction loans |
75 |
82 |
84 |
|||||||||
Commercial leases |
61 |
61 |
61 |
|||||||||
Total potential problem portfolio loans and leases |
$ |
1,578 |
1,653 |
1,975 |
||||||||
(a) Includes $287 million of PCI and $363 million of non-PCI loans and leases as of December 31, 2019 acquired in the MB Financial, Inc. acquisition. |
||||||||||||
TABLE 36: POTENTIAL PROBLEM PORTFOLIO LOANS AND LEASES |
||||||||||||
As of December 31, 2018 ($ in millions) |
Carrying Value |
Unpaid Principal Balance |
Exposure |
|||||||||
Commercial and industrial loans |
$ | 646 |
647 |
854 |
||||||||
Commercial mortgage loans |
152 |
152 |
152 |
|||||||||
Commercial leases |
31 |
31 |
31 |
|||||||||
Total potential problem portfolio loans and leases |
$ | 829 |
830 |
1,037 |
||||||||
TABLE 37: COMMERCIAL LOAN AND LEASE PORTFOLIO (EXCLUDING LOANS AND LEASES HELD FOR SALE) |
||||||||||||||||||||||||
2019 |
2018 |
|||||||||||||||||||||||
As of December 31 ($ in millions) |
Outstanding |
Exposure |
Nonaccrual |
Outstanding |
Exposure |
Nonaccrual |
||||||||||||||||||
By Industry: |
||||||||||||||||||||||||
Manufacturing |
$ |
11,996 |
22,079 |
87 |
10,387 |
19,290 |
48 |
|||||||||||||||||
Real estate |
11,320 |
16,993 |
9 |
8,327 |
13,055 |
10 |
||||||||||||||||||
Financial services and insurance |
7,214 |
15,398 |
- |
6,805 |
13,192 |
1 |
||||||||||||||||||
Business services |
5,170 |
8,579 |
75 |
4,426 |
7,161 |
17 |
||||||||||||||||||
Healthcare |
4,984 |
7,206 |
38 |
4,343 |
6,198 |
36 |
||||||||||||||||||
Wholesale trade |
4,502 |
7,715 |
17 |
3,127 |
5,481 |
14 |
||||||||||||||||||
Retail trade |
3,948 |
8,255 |
39 |
3,726 |
7,496 |
6 |
||||||||||||||||||
Accommodation and food |
3,745 |
6,525 |
21 |
3,435 |
5,626 |
28 |
||||||||||||||||||
Communication and information |
3,166 |
5,567 |
2 |
2,923 |
5,111 |
- |
||||||||||||||||||
Mining |
3,046 |
4,966 |
37 |
2,427 |
4,363 |
38 |
||||||||||||||||||
Transportation and warehousing |
2,880 |
4,996 |
12 |
2,807 |
4,729 |
19 |
||||||||||||||||||
Construction |
2,526 |
5,327 |
4 |
2,498 |
4,718 |
4 |
||||||||||||||||||
Entertainment and recreation |
1,905 |
3,327 |
40 |
1,798 |
3,354 |
1 |
||||||||||||||||||
Other services |
1,224 |
1,662 |
4 |
855 |
1,104 |
4 |
||||||||||||||||||
Utilities |
991 |
2,672 |
- |
835 |
2,531 |
- |
||||||||||||||||||
Public administration |
782 |
1,107 |
- |
465 |
669 |
- |
||||||||||||||||||
Agribusiness |
344 |
554 |
9 |
323 |
511 |
2 |
||||||||||||||||||
Other |
151 |
153 |
3 |
- |
- |
- |
||||||||||||||||||
Individuals |
64 |
128 |
- |
64 |
130 |
- |
||||||||||||||||||
Total |
$ |
69,958 |
123,209 |
397 |
59,571 |
104,719 |
228 |
|||||||||||||||||
By Loan Size: |
||||||||||||||||||||||||
Less than $200,000 |
1 % |
1 |
4 |
1 |
1 |
5 |
||||||||||||||||||
$200,000 to $1 million |
3 |
3 |
6 |
2 |
2 |
9 |
||||||||||||||||||
$1 million to $5 million |
9 |
7 |
22 |
6 |
6 |
18 |
||||||||||||||||||
$5 million to $10 million |
7 |
6 |
11 |
6 |
5 |
19 |
||||||||||||||||||
$10 million to $25 million |
20 |
17 |
27 |
19 |
16 |
38 |
||||||||||||||||||
Greater than $25 million |
60 |
66 |
30 |
66 |
70 |
11 |
||||||||||||||||||
Total |
100 % |
100 |
100 |
100 |
100 |
100 |
||||||||||||||||||
By State: |
||||||||||||||||||||||||
Illinois |
15 % |
12 |
18 |
6 |
5 |
8 |
||||||||||||||||||
Ohio |
10 |
11 |
6 |
13 |
14 |
10 |
||||||||||||||||||
Florida |
7 |
7 |
6 |
8 |
8 |
21 |
||||||||||||||||||
Michigan |
6 |
6 |
7 |
7 |
6 |
10 |
||||||||||||||||||
Indiana |
4 |
4 |
2 |
4 |
4 |
8 |
||||||||||||||||||
Georgia |
3 |
4 |
11 |
5 |
5 |
11 |
||||||||||||||||||
North Carolina |
3 |
3 |
10 |
3 |
3 |
- |
||||||||||||||||||
Tennessee |
3 |
3 |
1 |
3 |
3 |
- |
||||||||||||||||||
Kentucky |
2 |
2 |
9 |
2 |
3 |
2 |
||||||||||||||||||
Other |
47 |
48 |
30 |
49 |
49 |
30 |
||||||||||||||||||
Total |
100 % |
100 |
100 |
100 |
100 |
100 |
||||||||||||||||||
TABLE 38: COMMERCIAL MORTGAGE LOANS OUTSTANDING BY LTV, LOANS GREATER THAN $1 MILLION |
||||||||||||
As of December 31, 2019 ($ in millions) |
LTV > 100% |
LTV 80-100% |
LTV < 80% |
|||||||||
Commercial mortgage owner-occupied loans |
$ |
126 |
393 |
3,199 |
||||||||
Commercial mortgage nonowner-occupied loans |
58 |
107 |
4,562 |
|||||||||
Total |
$ |
184 |
500 |
7,761 |
||||||||
TABLE 39: COMMERCIAL MORTGAGE LOANS OUTSTANDING BY LTV, LOANS GREATER THAN $1 MILLION |
||||||||||||
As of December 31, 2018 ($ in millions) |
LTV > 100% |
LTV 80-100% |
LTV < 80% |
|||||||||
Commercial mortgage owner-occupied loans |
$ | 126 |
172 |
2,119 |
||||||||
Commercial mortgage nonowner-occupied loans |
40 |
29 |
2,731 |
|||||||||
Total |
$ | 166 |
201 |
4,850 |
||||||||
TABLE 40: NONOWNER-OCCUPIED COMMERCIAL REAL ESTATE (EXCLUDING LOANS HELD FOR SALE) (a) |
||||||||||||||||||||
As of December 31, 2019 ($ in millions) |
For the Year Ended December 31, 2019 |
|||||||||||||||||||
90 Days |
||||||||||||||||||||
Outstanding |
Exposure |
Past Due |
Nonaccrual |
Net Charge-offs |
||||||||||||||||
By State: |
||||||||||||||||||||
Illinois |
$ |
3,097 |
3,639 |
6 |
- |
2 |
||||||||||||||
Ohio |
1,402 |
1,861 |
- |
1 |
- |
|||||||||||||||
Florida |
951 |
1,605 |
- |
- |
- |
|||||||||||||||
Michigan |
714 |
849 |
- |
- |
- |
|||||||||||||||
North Carolina |
635 |
1,040 |
- |
- |
- |
|||||||||||||||
Indiana |
582 |
865 |
- |
- |
- |
|||||||||||||||
Georgia |
351 |
897 |
- |
- |
- |
|||||||||||||||
All other states |
2,883 |
4,569 |
- |
- |
- |
|||||||||||||||
Total |
$ |
10,615 |
15,325 |
6 |
1 |
2 |
||||||||||||||
(a) |
Included in commercial mortgage loans and commercial construction loans in the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A. |
TABLE 41: NONOWNER-OCCUPIED COMMERCIAL REAL ESTATE (EXCLUDING LOANS HELD FOR SALE) (a) |
||||||||||||||||||||
As of December 31, 2018 ($ in millions) |
For the Year Ended December 31, 2018 |
|||||||||||||||||||
90 Days |
||||||||||||||||||||
Outstanding |
Exposure |
Past Due |
Nonaccrual |
Net Charge-offs |
||||||||||||||||
By State: |
||||||||||||||||||||
Illinois |
$ | 750 |
1,076 |
- |
- |
- |
||||||||||||||
Ohio |
1,574 |
1,918 |
- |
- |
- |
|||||||||||||||
Florida |
978 |
1,536 |
- |
- |
- |
|||||||||||||||
Michigan |
657 |
771 |
- |
- |
- |
|||||||||||||||
North Carolina |
646 |
872 |
- |
- |
- |
|||||||||||||||
Indiana |
528 |
853 |
- |
- |
- |
|||||||||||||||
Georgia |
357 |
729 |
- |
- |
- |
|||||||||||||||
All other states |
2,590 |
4,187 |
- |
2 |
1 |
|||||||||||||||
Total |
$ | 8,080 |
11,942 |
- |
2 |
1 |
||||||||||||||
(a) |
Included in commercial mortgage loans and commercial construction loans in the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A. |
TABLE 42: RESIDENTIAL MORTGAGE PORTFOLIO LOANS BY LTV AT ORIGINATION |
||||||||||||||||
2019 |
2018 |
|||||||||||||||
Weighted- |
Weighted- |
|||||||||||||||
As of December 31 ($ in millions) |
Outstanding |
Average LTV |
Outstanding |
Average LTV |
||||||||||||
LTV ≤ 80% |
$ |
12,100 |
66.3 |
% |
$ | 11,540 |
66.7 % |
|||||||||
LTV > 80%, with mortgage insurance (a) |
2,373 |
95.2 |
2,010 |
95.1 |
||||||||||||
LTV > 80%, no mortgage insurance |
2,251 |
93.1 |
1,954 |
94.2 |
||||||||||||
Total |
$ |
16,724 |
74.3 |
% |
$ | 15,504 |
74.3 % |
|||||||||
(a) |
Includes loans with both borrower and lender paid mortgage insurance. |
TABLE 43: RESIDENTIAL MORTGAGE PORTFOLIO LOANS, LTV GREATER THAN 80%, NO MORTGAGE INSURANCE |
||||||||||||||||
As of December 31, 2019 ($ in millions) |
For the Year Ended December 31, 2019 |
|||||||||||||||
|
||||||||||||||||
90 Days |
Net Charge-offs |
|||||||||||||||
Outstanding |
Past Due |
Nonaccrual |
(Recoveries) |
|||||||||||||
By State: |
||||||||||||||||
Ohio |
$ |
482 |
3 |
4 |
1 |
|||||||||||
Illinois |
468 |
2 |
3 |
1 |
||||||||||||
Florida |
305 |
2 |
1 |
(1) |
||||||||||||
Michigan |
217 |
2 |
1 |
- |
||||||||||||
Indiana |
175 |
1 |
1 |
- |
||||||||||||
North Carolina |
139 |
- |
2 |
- |
||||||||||||
Kentucky |
93 |
- |
- |
- |
||||||||||||
All other states |
372 |
3 |
3 |
1 |
||||||||||||
Total |
$ |
2,251 |
13 |
15 |
2 |
|||||||||||
TABLE 44: RESIDENTIAL MORTGAGE PORTFOLIO LOANS, LTV GREATER THAN 80%, NO MORTGAGE INSURANCE |
||||||||||||||||
As of December 31, 2018 ($ in millions) |
For the Year Ended December 31, 2018 |
|||||||||||||||
90 Days |
||||||||||||||||
Outstanding |
Past Due |
Nonaccrual |
Net Charge-offs |
|||||||||||||
|
||||||||||||||||
By State: |
||||||||||||||||
Ohio |
$ | 436 |
2 |
3 |
1 |
|||||||||||
Illinois |
390 |
1 |
1 |
- |
||||||||||||
Florida |
284 |
1 |
2 |
- |
||||||||||||
Michigan |
217 |
1 |
1 |
- |
||||||||||||
Indiana |
144 |
1 |
1 |
- |
||||||||||||
North Carolina |
92 |
- |
1 |
- |
||||||||||||
Kentucky |
81 |
- |
- |
- |
||||||||||||
All other states |
310 |
3 |
2 |
1 |
||||||||||||
Total |
$ | 1,954 |
9 |
11 |
2 |
|||||||||||
TABLE 45: HOME EQUITY PORTFOLIO LOANS OUTSTANDING BY REFRESHED FICO SCORE |
||||||||||||||||
2019 |
2018 |
|||||||||||||||
As of December 31 ($ in millions) |
Outstanding |
% of Total |
Outstanding |
% of Total |
||||||||||||
Senior Liens: |
||||||||||||||||
FICO ≤ 659 |
$ |
219 |
4 % |
$ | 218 |
4 % |
||||||||||
FICO 660-719 |
330 |
5 |
318 |
5 |
||||||||||||
FICO ≥ 720 |
1,732 |
28 |
1,791 |
28 |
||||||||||||
Total senior liens |
2,281 |
37 |
2,327 |
37 |
||||||||||||
Junior Liens: |
||||||||||||||||
FICO ≤ 659 |
446 |
7 |
469 |
7 |
||||||||||||
FICO 660-719 |
716 |
12 |
769 |
12 |
||||||||||||
FICO ≥ 720 |
2,640 |
44 |
2,837 |
44 |
||||||||||||
Total junior liens |
3,802 |
63 |
4,075 |
63 |
||||||||||||
Total |
$ |
6,083 |
100 % |
$ | 6,402 |
100 % |
||||||||||
The Bancorp believes that home equity portfolio loans with a greater than 80% combined LTV present a higher level of risk. The following table provides an analysis of the home equity portfolio loans outstanding in a senior and junior lien position by LTV at origination: |
||||||||||||||||
TABLE 46: HOME EQUITY PORTFOLIO LOANS OUTSTANDING BY LTV AT ORIGINATION |
||||||||||||||||
2019 |
2018 |
|||||||||||||||
As of December 31 ($ in millions) |
Outstanding |
Weighted- Average LTV |
Outstanding |
Weighted- Average LTV |
||||||||||||
Senior Liens: |
||||||||||||||||
LTV ≤ 80% |
$ |
1,964 |
53.8 % |
$ | 2,022 |
54.5 % |
||||||||||
LTV > 80% |
317 |
88.8 |
305 |
88.8 |
||||||||||||
Total senior liens |
2,281 |
58.9 |
2,327 |
59.2 |
||||||||||||
Junior Liens: |
||||||||||||||||
LTV ≤ 80% |
2,213 |
66.8 |
2,367 |
67.2 |
||||||||||||
LTV > 80% |
1,589 |
89.7 |
1,708 |
90.1 |
||||||||||||
Total junior liens |
3,802 |
77.4 |
4,075 |
78.0 |
||||||||||||
Total |
$ |
6,083 |
70.3 % |
$ | 6,402 |
70.9 % |
||||||||||
TABLE 47: HOME EQUITY PORTFOLIO LOANS OUTSTANDING WITH AN LTV GREATER THAN 80% |
||||||||||||||||||||
As of December 31, 2019 ($ in millions) |
For the Year Ended December 31, 2019 |
|||||||||||||||||||
Outstanding |
Exposure |
90 Days Past Due |
Nonaccrual |
Net Charge-offs |
||||||||||||||||
By State: |
||||||||||||||||||||
Ohio |
$ |
1,145 |
2,431 |
- |
11 |
3 |
||||||||||||||
Michigan |
239 |
413 |
- |
6 |
1 |
|||||||||||||||
Illinois |
169 |
279 |
- |
5 |
3 |
|||||||||||||||
Indiana |
105 |
196 |
- |
5 |
1 |
|||||||||||||||
Kentucky |
95 |
191 |
- |
2 |
- |
|||||||||||||||
Florida |
50 |
78 |
- |
2 |
1 |
|||||||||||||||
All other states |
103 |
162 |
- |
4 |
1 |
|||||||||||||||
Total |
$ |
1,906 |
3,750 |
- |
35 |
10 |
||||||||||||||
TABLE 48: HOME EQUITY PORTFOLIO LOANS OUTSTANDING WITH AN LTV GREATER THAN 80% |
||||||||||||||||||||
As of December 31, 2018 ($ in millions) |
For the Year Ended December 31, 2018 |
|||||||||||||||||||
Outstanding |
Exposure |
90 Days Past Due |
Nonaccrual |
Net Charge-offs |
||||||||||||||||
By State: |
||||||||||||||||||||
Ohio |
$ | 1,082 |
2,146 |
- |
8 |
2 |
||||||||||||||
Michigan |
297 |
492 |
- |
4 |
1 |
|||||||||||||||
Illinois |
200 |
321 |
- |
4 |
2 |
|||||||||||||||
Indiana |
133 |
231 |
- |
2 |
- |
|||||||||||||||
Kentucky |
118 |
224 |
- |
2 |
- |
|||||||||||||||
Florida |
59 |
86 |
- |
2 |
- |
|||||||||||||||
All other states |
124 |
188 |
- |
3 |
1 |
|||||||||||||||
Total |
$ | 2,013 |
3,688 |
- |
25 |
6 |
||||||||||||||
TABLE 49: INDIRECT SECURED CONSUMER PORTFOLIO LOANS OUTSTANDING BY FICO SCORE AT ORIGINATION |
||||||||||||||||
2019 |
2018 |
|||||||||||||||
As of December 31 ($ in millions) |
Outstanding |
% of Total |
Outstanding |
% of Total |
||||||||||||
FICO ≤ 690 |
$ |
1,681 |
15 % |
$ | 1,604 |
18 % |
||||||||||
FICO > 690 |
9,857 |
85 |
7,372 |
82 |
||||||||||||
Total |
$ |
11,538 |
100 % |
$ | 8,976 |
100 % |
||||||||||
TABLE 50: INDIRECT SECURED CONSUMER PORTFOLIO LOANS OUTSTANDING BY LTV AT ORIGINATION |
||||||||||||||||
2019 |
2018 |
|||||||||||||||
As of December 31 ($ in millions) |
Outstanding |
Weighted- Average LTV |
Outstanding |
Weighted- Average LTV |
||||||||||||
LTV ≤ 100% |
$ |
7,420 |
81.3 % |
$ | 5,591 |
82.3 % |
||||||||||
LTV > 100% |
4,118 |
113.4 |
3,385 |
112.9 |
||||||||||||
Total |
$ |
11,538 |
93.1 % |
$ | 8,976 |
94.2 % |
||||||||||
TABLE 51: INDIRECT SECURED CONSUMER PORTFOLIO LOANS OUTSTANDING WITH AN LTV GREATER THAN 100% |
||||||||||||||||
($ in millions) |
Outstanding |
90 Days Past Due and Accruing |
Nonaccrual |
Net Charge-offs |
||||||||||||
December 31, 2019 |
$ |
4,118 |
7 |
4 |
37 |
|||||||||||
December 31, 2018 |
3,385 |
7 |
1 |
28 |
||||||||||||
TABLE 52: CREDIT CARD PORTFOLIO LOANS OUTSTANDING BY FICO SCORE AT ORIGINATION |
||||||||||||||||
|
2019 |
2018 |
||||||||||||||
As of December 31 ($ in millions) |
Outstanding |
% of Total |
Outstanding |
% of Total |
||||||||||||
FICO ≤ 659 |
$ |
107 |
4 % |
$ | 82 |
3 % |
||||||||||
FICO 660-719 |
834 |
33 |
711 |
29 |
||||||||||||
FICO ≥ 720 |
1,591 |
63 |
1,677 |
68 |
||||||||||||
Total |
$ |
2,532 |
100 % |
$ | 2,470 |
100 % |
||||||||||
TABLE 53: OTHER CONSUMER PORTFOLIO LOANS OUTSTANDING BY PRODUCT TYPE AT ORIGINATION |
||||||||||||||||
|
2019 |
2018 |
||||||||||||||
As of December 31 ($ in millions) |
Outstanding |
% of Total |
Outstanding |
% of Total |
||||||||||||
Unsecured |
$ |
783 |
29 % |
$ | 610 |
26 % |
||||||||||
Other secured |
530 |
19 |
510 |
22 |
||||||||||||
Point-of-sale |
1,410 |
52 |
1,222 |
52 |
||||||||||||
Total |
$ |
2,723 |
100 % |
$ | 2,342 |
100 % |
||||||||||
As of December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
||||||||||||||||
Nonaccrual portfolio loans and leases: |
|||||||||||||||||||||
Commercial and industrial loans |
$ |
118 |
54 |
144 |
302 |
82 |
|||||||||||||||
Commercial mortgage loans |
21 |
9 |
12 |
27 |
56 |
||||||||||||||||
Commercial construction loans |
1 |
- |
- |
- |
- |
||||||||||||||||
Commercial leases |
26 |
18 |
- |
2 |
- |
||||||||||||||||
Residential mortgage loans (a) |
12 |
10 |
17 |
17 |
28 |
||||||||||||||||
Home equity |
55 |
56 |
56 |
55 |
62 |
||||||||||||||||
Indirect secured consumer loans |
1 |
- |
- |
- |
- |
||||||||||||||||
Other consumer loans |
2 |
1 |
- |
- |
- |
||||||||||||||||
Nonaccrual portfolio restructured loans and leases: |
|||||||||||||||||||||
Commercial and industrial loans |
220 |
139 |
132 |
176 |
177 |
||||||||||||||||
Commercial mortgage loans |
9 |
4 |
14 |
14 |
25 |
||||||||||||||||
Commercial leases |
2 |
4 |
4 |
2 |
1 |
||||||||||||||||
Residential mortgage loans (a) |
79 |
12 |
13 |
17 |
23 |
||||||||||||||||
Home equity |
39 |
13 |
18 |
18 |
17 |
||||||||||||||||
Indirect secured consumer loans |
6 |
1 |
1 |
2 |
2 |
||||||||||||||||
Credit card |
27 |
27 |
26 |
28 |
33 |
||||||||||||||||
Total nonaccrual portfolio loans and leases (b) |
618 |
348 |
437 |
660 |
506 |
||||||||||||||||
OREO and other repossessed property (c) |
62 |
47 |
52 |
78 |
141 |
||||||||||||||||
Total nonperforming portfolio loans and leases and OREO |
680 |
395 |
489 |
738 |
647 |
||||||||||||||||
Nonaccrual loans held for sale |
- |
- |
5 |
4 |
1 |
||||||||||||||||
Nonaccrual restructured loans held for sale |
7 |
16 |
1 |
9 |
11 |
||||||||||||||||
Total nonperforming assets |
$ |
687 |
411 |
495 |
751 |
659 |
|||||||||||||||
Portfolio loans and leases 90 days past due and still accruing: |
|||||||||||||||||||||
Commercial and industrial loans |
$ |
11 |
4 |
3 |
4 |
7 |
|||||||||||||||
Commercial mortgage loans |
15 |
2 |
- |
- |
- |
||||||||||||||||
Residential mortgage loans (a) |
50 |
38 |
57 |
49 |
40 |
||||||||||||||||
Home equity |
1 |
- |
- |
- |
- |
||||||||||||||||
Indirect secured consumer loans |
10 |
12 |
10 |
9 |
10 |
||||||||||||||||
Credit card |
42 |
37 |
27 |
22 |
18 |
||||||||||||||||
Other consumer loans |
1 |
- |
- |
- |
- |
||||||||||||||||
Total portfolio loans and leases 90 days past due and still accruing |
$ |
130 |
93 |
97 |
84 |
75 |
|||||||||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO |
0.62 |
% |
0.41 |
0.53 |
0.80 |
0.70 |
|||||||||||||||
ALLL as a percent of nonperforming portfolio assets |
177 |
279 |
245 |
170 |
197 |
||||||||||||||||
(a) |
Information for all periods presented excludes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. These advances were $261 December 31, 2019 $4 December 31, 2019 |
(b) |
Includes $16 December 31, 2019 $11, December 31, 2019 |
(c) |
Upon completion of Fifth Third Bank’s conversion to a national charter, the Bancorp conformed to OCC guidance with regard to branch-related real estate no longer intended to be used for banking purposes. The impact of the change resulted in an increase to OREO of approximately $30 million with an offsetting reduction to bank premises and equipment. |
TABLE 55: ROLLFORWARD OF PORTFOLIO NONACCRUAL LOANS AND LEASES |
||||||||||||||||
For the year ended December 31, 2019 ($ in millions) |
Commercial |
Residential Mortgage |
Consumer |
Total |
||||||||||||
Balance, beginning of period |
$ |
228 |
22 |
98 |
348 |
|||||||||||
Transfers to nonaccrual status |
456 |
107 |
176 |
739 |
||||||||||||
Acquired nonaccrual loans |
8 |
- |
- |
8 |
||||||||||||
Transfers to accrual status |
- |
(20) |
(72) |
(92) |
||||||||||||
Transfers to held for sale |
(17) |
- |
- |
(17) |
||||||||||||
Loan paydowns/payoffs |
(165) |
(9) |
(30) |
(204) |
||||||||||||
Transfers to OREO |
(5) |
(7) |
(4) |
(16) |
||||||||||||
Charge-offs |
(127) |
(2) |
(38) |
(167) |
||||||||||||
Draws/other extensions of credit |
19 |
- |
- |
19 |
||||||||||||
Balance, end of period |
$ |
397 |
91 |
130 |
618 |
|||||||||||
For the year ended December 31, 2018 ($ in millions) |
||||||||||||||||
Balance, beginning of period |
$ | 306 |
30 |
101 |
437 |
|||||||||||
Transfers to nonaccrual status |
252 |
34 |
139 |
425 |
||||||||||||
Transfers to accrual status |
(3) |
(22) |
(67) |
(92) |
||||||||||||
Transfers to held for sale |
(28) |
- |
- |
(28) |
||||||||||||
Loan paydowns/payoffs |
(175) |
(8) |
(32) |
(215) |
||||||||||||
Transfers to OREO |
(3) |
(10) |
(7) |
(20) |
||||||||||||
Charge-offs |
(157) |
(2) |
(36) |
(195) |
||||||||||||
Draws/other extensions of credit |
36 |
- |
- |
36 |
||||||||||||
Balance, end of period |
$ | 228 |
22 |
98 |
348 |
|||||||||||
TABLE 56: ACCRUING AND NONACCRUING PORTFOLIO TDRs |
||||||||||||||||||||||||
Accruing |
||||||||||||||||||||||||
As of December 31, 2019 ($ in millions) |
Current |
30-89 DaysPast Due |
90 Days or More Past Due |
Nonaccruing |
Total |
|||||||||||||||||||
Commercial loans (a) |
$ |
|
23 |
- |
- |
231 |
254 |
|||||||||||||||||
Residential mortgage loans (b) |
552 |
49 |
134 |
79 |
814 |
|||||||||||||||||||
Home equity |
199 |
8 |
- |
39 |
246 |
|||||||||||||||||||
Indirect secured consumer loans |
6 |
- |
- |
6 |
12 |
|||||||||||||||||||
Credit card |
14 |
3 |
- |
27 |
44 |
|||||||||||||||||||
Total (c) |
$ |
794 |
60 |
134 |
382 |
1,370 |
||||||||||||||||||
(a) |
Excludes restructured nonaccrual loans held for sale. |
(b) |
Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2019 $321 $40 30-89 days past due loans and $109 |
(c) |
Upon completion of Fifth Third Bank’s conversion to a national charter, the Bancorp conformed to OCC guidance with regard to non-reaffirmed loans included in Chapter 7 bankruptcy filings to be accounted for as TDRs and collateral dependent loans regardless of payment history and capacity to pay in the future. The impact of the change resulted in an increase to TDRs of approximately $105, of which $83 were transferred to nonaccrual status. |
TABLE 57: ACCRUING AND NONACCRUING PORTFOLIO TDRs |
|||||||||||||||||||||||||
Accruing |
|||||||||||||||||||||||||
As of December 31, 2018 ($ in millions) |
Current |
30-89 DaysPast Due |
90 Days or More Past Due |
Nonaccruing |
Total |
||||||||||||||||||||
Commercial loans (a) |
$ | 60 |
- |
- |
147 |
207 |
|||||||||||||||||||
Residential mortgage loans (b) |
552 |
52 |
120 |
12 |
736 |
||||||||||||||||||||
Home equity |
203 |
12 |
- |
13 |
228 |
||||||||||||||||||||
Indirect secured consumer loans |
5 |
- |
- |
1 |
6 |
||||||||||||||||||||
Credit card |
14 |
3 |
- |
27 |
44 |
||||||||||||||||||||
Total |
$ | 834 |
67 |
120 |
200 |
1,221 |
(a) |
Excludes restructured nonaccrual loans held for sale. |
(b) |
Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2018, these advances represented $321 of current loans, $42 of 30-89 days past due loans and $101 of 90 days or more past due loans. |
TABLE 58: SUMMARY OF CREDIT LOSS EXPERIENCE |
||||||||||||||||||||||||
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||||||
Losses charged-off: |
||||||||||||||||||||||||
Commercial and industrial loans |
$ |
(120 |
) |
(151 |
) | (136 |
) | (205 |
) | (253 |
) | |||||||||||||
Commercial mortgage loans |
- |
(5 |
) | (16 |
) | (22 |
) | (39 |
) | |||||||||||||||
Commercial construction loans |
- |
- |
- |
- |
(4 |
) | ||||||||||||||||||
Commercial leases |
(7 |
) |
(1 |
) | (2 |
) | (5 |
) | (2 |
) | ||||||||||||||
Residential mortgage loans |
(9 |
) |
(13 |
) | (15 |
) | (19 |
) | (28 |
) | ||||||||||||||
Home equity |
(28 |
) |
(23 |
) | (32 |
) | (41 |
) | (55 |
) | ||||||||||||||
Indirect secured consumer loans |
(81 |
) |
(63 |
) | (58 |
) | (54 |
) | (46 |
) | ||||||||||||||
Credit card |
(156 |
) |
(125 |
) | (94 |
) | (89 |
) | (94 |
) | ||||||||||||||
Other consumer loans (a) |
(109 |
) |
(69 |
) | (28 |
) | (21 |
) | (21 |
) | ||||||||||||||
Total losses charged-off |
(510 |
) |
(450 |
) | (381 |
) | (456 |
) | (542 |
) | ||||||||||||||
Recoveries of losses previously charged-off: |
||||||||||||||||||||||||
Commercial and industrial loans |
17 |
19 |
25 |
33 |
24 |
|||||||||||||||||||
Commercial mortgage loans |
2 |
6 |
4 |
7 |
12 |
|||||||||||||||||||
Commercial construction loans |
- |
- |
- |
1 |
1 |
|||||||||||||||||||
Commercial leases |
- |
- |
- |
1 |
- |
|||||||||||||||||||
Residential mortgage loans |
5 |
6 |
8 |
9 |
11 |
|||||||||||||||||||
Home equity |
10 |
11 |
13 |
14 |
16 |
|||||||||||||||||||
Indirect secured consumer loans |
31 |
23 |
21 |
19 |
18 |
|||||||||||||||||||
Credit card |
22 |
24 |
10 |
9 |
12 |
|||||||||||||||||||
Other consumer loans (a) |
54 |
31 |
2 |
1 |
2 |
|||||||||||||||||||
Total recoveries of losses previously charged-off |
141 |
120 |
83 |
94 |
96 |
|||||||||||||||||||
Net losses charged-off: |
||||||||||||||||||||||||
Commercial and industrial loans |
(103 |
) |
(132 |
) | (111 |
) | (172 |
) | (229 |
) | ||||||||||||||
Commercial mortgage loans |
2 |
1 |
(12 |
) | (15 |
) | (27 |
) | ||||||||||||||||
Commercial construction loans |
- |
- |
- |
1 |
(3 |
) | ||||||||||||||||||
Commercial leases |
(7 |
) |
(1 |
) | (2 |
) | (4 |
) | (2 |
) | ||||||||||||||
Residential mortgage loans |
(4 |
) |
(7 |
) | (7 |
) | (10 |
) | (17 |
) | ||||||||||||||
Home equity |
(18 |
) |
(12 |
) | (19 |
) | (27 |
) | (39 |
) | ||||||||||||||
Indirect secured consumer loans |
(50 |
) |
(40 |
) | (37 |
) | (35 |
) | (28 |
) | ||||||||||||||
Credit card |
(134 |
) |
(101 |
) | (84 |
) | (80 |
) | (82 |
) | ||||||||||||||
Other consumer loans |
(55 |
) |
(38 |
) | (26 |
) | (20 |
) | (19 |
) | ||||||||||||||
Total net losses charged-off |
$ |
(369 |
) |
(330 |
) | (298 |
) | (362 |
) | (446 |
) | |||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases: |
||||||||||||||||||||||||
Commercial and industrial loans |
0.20 |
% |
0.31 |
0.27 |
0.40 |
0.54 |
||||||||||||||||||
Commercial mortgage loans |
(0.02 |
) |
(0.01 |
) | 0.17 |
0.23 |
0.38 |
|||||||||||||||||
Commercial construction loans |
- |
- |
- |
(0.01 |
) | 0.11 |
||||||||||||||||||
Commercial leases |
0.21 |
0.03 |
0.06 |
0.10 |
0.04 |
|||||||||||||||||||
Total commercial loans and leases |
0.16 |
0.23 |
0.22 |
0.33 |
0.46 |
|||||||||||||||||||
Residential mortgage loans |
0.03 |
0.04 |
0.04 |
0.07 |
0.13 |
|||||||||||||||||||
Home equity |
0.28 |
0.17 |
0.26 |
0.33 |
0.46 |
|||||||||||||||||||
Indirect secured consumer loans |
0.48 |
0.45 |
0.39 |
0.33 |
0.24 |
|||||||||||||||||||
Credit card |
5.49 |
4.44 |
3.93 |
3.69 |
3.60 |
|||||||||||||||||||
Other consumer loans |
2.16 |
1.93 |
2.57 |
2.93 |
3.26 |
|||||||||||||||||||
Total consumer loans |
0.68 |
0.56 |
0.49 |
0.48 |
0.51 |
|||||||||||||||||||
Total net losses charged-off as a percent of average portfolio loans and leases |
0.35 |
% |
0.35 |
0.32 |
0.39 |
0.48 |
(a) |
For the years ended December 31, 2019 $48 charged-off and recoveries of losses charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. |
TABLE 59: CHANGES IN ALLOWANCE FOR CREDIT LOSSES |
||||||||||||||||||||||||
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||||||
ALLL: |
||||||||||||||||||||||||
Balance, beginning of period |
$ |
1,103 |
1,196 |
1,253 |
1,272 |
1,322 |
||||||||||||||||||
Losses charged-off (a) |
(510 |
) |
(450 |
) | (381 |
) | (456 |
) | (542 |
) | ||||||||||||||
Recoveries of losses previously charged-off (a) |
141 |
120 |
83 |
94 |
96 |
|||||||||||||||||||
Provision for loan and lease losses |
468 |
237 |
261 |
343 |
396 |
|||||||||||||||||||
Deconsolidation of a VIE |
- |
- |
(20 |
) | - |
- |
||||||||||||||||||
Balance, end of period |
$ |
1,202 |
1,103 |
1,196 |
1,253 |
1,272 |
||||||||||||||||||
Reserve for unfunded commitments: |
||||||||||||||||||||||||
Balance, beginning of period |
$ |
131 |
161 |
161 |
138 |
135 |
||||||||||||||||||
Reserve for acquired unfunded commitments |
8 |
- |
- |
- |
- |
|||||||||||||||||||
Provision for (benefit from) the reserve for unfunded commitments |
5 |
(30 |
) | - |
23 |
4 |
||||||||||||||||||
Losses charged-off |
- |
- |
- |
- |
(1 |
) | ||||||||||||||||||
Balance, end of period |
$ |
144 |
131 |
161 |
161 |
138 |
(a) |
For the years ended December 31, 2019 $48 |
TABLE 60: ATTRIBUTION OF ALLOWANCE FOR LOAN AND LEASE LOSSES TO PORTFOLIO LOANS AND LEASES |
||||||||||||||||||||
As of December 31 ($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||
Attributed ALLL: |
||||||||||||||||||||
Commercial and industrial loans |
$ |
561 |
515 |
651 |
718 |
652 |
||||||||||||||
Commercial mortgage loans |
87 |
80 |
65 |
82 |
117 |
|||||||||||||||
Commercial construction loans |
45 |
32 |
23 |
16 |
24 |
|||||||||||||||
Commercial leases |
17 |
18 |
14 |
15 |
47 |
|||||||||||||||
Residential mortgage loans |
73 |
81 |
89 |
96 |
100 |
|||||||||||||||
Home equity |
37 |
36 |
46 |
58 |
67 |
|||||||||||||||
Indirect secured consumer loans |
53 |
42 |
38 |
42 |
40 |
|||||||||||||||
Credit card |
168 |
156 |
117 |
102 |
99 |
|||||||||||||||
Other consumer loans |
40 |
33 |
33 |
12 |
11 |
|||||||||||||||
Unallocated |
121 |
110 |
120 |
112 |
115 |
|||||||||||||||
Total attributed ALLL |
$ |
1,202 |
1,103 |
1,196 |
1,253 |
1,272 |
||||||||||||||
Portfolio loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
$ |
50,542 |
44,340 |
41,170 |
41,676 |
42,131 |
||||||||||||||
Commercial mortgage loans |
10,963 |
6,974 |
6,604 |
6,899 |
6,957 |
|||||||||||||||
Commercial construction loans |
5,090 |
4,657 |
4,553 |
3,903 |
3,214 |
|||||||||||||||
Commercial leases |
3,363 |
3,600 |
4,068 |
3,974 |
3,854 |
|||||||||||||||
Residential mortgage loans |
16,724 |
15,504 |
15,591 |
15,051 |
13,716 |
|||||||||||||||
Home equity |
6,083 |
6,402 |
7,014 |
7,695 |
8,301 |
|||||||||||||||
Indirect secured consumer loans |
11,538 |
8,976 |
9,112 |
9,983 |
11,493 |
|||||||||||||||
Credit card |
2,532 |
2,470 |
2,299 |
2,237 |
2,259 |
|||||||||||||||
Other consumer loans |
2,723 |
2,342 |
1,559 |
680 |
657 |
|||||||||||||||
Total portfolio loans and leases |
$ |
109,558 |
95,265 |
91,970 |
92,098 |
92,582 |
||||||||||||||
Attributed ALLL as a percent of respective portfolio loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
1.11 |
% |
1.16 |
1.58 |
1.72 |
1.55 |
||||||||||||||
Commercial mortgage loans |
0.79 |
1.15 |
0.98 |
1.19 |
1.68 |
|||||||||||||||
Commercial construction loans |
0.88 |
0.69 |
0.51 |
0.41 |
0.75 |
|||||||||||||||
Commercial leases |
0.51 |
0.50 |
0.34 |
0.38 |
1.22 |
|||||||||||||||
Residential mortgage loans |
0.44 |
0.52 |
0.57 |
0.64 |
0.73 |
|||||||||||||||
Home equity |
0.61 |
0.56 |
0.66 |
0.75 |
0.81 |
|||||||||||||||
Indirect secured consumer loans |
0.46 |
0.47 |
0.42 |
0.42 |
0.35 |
|||||||||||||||
Credit card |
6.64 |
6.32 |
5.09 |
4.56 |
4.38 |
|||||||||||||||
Other consumer loans |
1.47 |
1.41 |
2.12 |
1.76 |
1.67 |
|||||||||||||||
Unallocated (as a percent of portfolio loans and leases) |
0.11 |
0.12 |
0.13 |
0.12 |
0.12 |
|||||||||||||||
Attributed ALLL as a percent of portfolio loans and leases |
1.10 |
% |
1.16 |
1.30 |
1.36 |
1.37 |
||||||||||||||
TABLE 61: ESTIMATED NII SENSITIVITY PROFILE AND ALCO POLICY LIMITS |
||||||||||||||||||||||||||||||||
2019 |
2018 |
|||||||||||||||||||||||||||||||
% Change in NII (FTE) |
ALCO Policy Limits |
% Change in NII (FTE) |
ALCO Policy Limits |
|||||||||||||||||||||||||||||
Change in Interest Rates (bps) |
12 Months |
13-24 Months |
12 Months |
13-24 Months |
12 Months |
13-24 Months |
12 Months |
13-24 Months |
||||||||||||||||||||||||
+ 200 Ramp over 12 months |
(0.22 |
) % |
3.94 |
(4.00) |
(6.00) |
(0.01 |
)% | 2.11 |
(4.00) |
(6.00) |
||||||||||||||||||||||
+ 100 Ramp over 12 months |
(0.16 |
) |
2.07 |
N/A |
N/A |
0.09 |
1.34 |
N/A |
N/A |
|||||||||||||||||||||||
- 100 Ramp over 12 months |
(2.66 |
) |
(7.90 |
) |
(8.00 |
) |
(12.00 |
) |
(2.83 |
) | (6.70 |
) | N/A |
N/A |
||||||||||||||||||
- 150 Ramp over 12 months |
N/A |
N/A |
N/A |
N/A |
(4.34 |
) | (10.58 |
) | (8.00) |
(12.00) |
||||||||||||||||||||||
TABLE 62: ESTIMATED NII SENSITIVITY ASSUMING A $1 BILLION CHANGE IN DEMAND DEPOSIT BALANCES |
||||||||||||||||||
% Change in NII (FTE) |
||||||||||||||||||
Immediate $1 Billion Balance Decrease |
|
Immediate $1 Billion Balance Increase |
||||||||||||||||
Change in Interest Rates (bps) |
12 Months |
13-24 Months |
12 Months |
13-24 Months |
||||||||||||||
+ 200 Ramp over 12 months |
(0.43) |
% | 3.54 |
(0.02 |
) | 4.34 |
||||||||||||
+ 100 Ramp over 12 months |
(0.26) |
1.87 |
(0.05 |
) | 2.27 |
|||||||||||||
- 100 Ramp over 12 months |
(2.77) |
(8.10 |
) | (2.56 |
) | (7.70 |
) | |||||||||||
The following table includes the Bancorp’s estimated NII sensitivity profile with a 25% increase and a 25% decrease to the corresponding deposit beta assumptions as of December 31, 2019. The resulting weighted-average rising-rate interest-bearing deposit betas included in this analysis were approximately 88% and 53%, respectively, and 51% and 31%, respectively, for falling rates as of December 31, 2019: |
||||||||||||||||||
TABLE 63: ESTIMATED NII SENSITIVITY WITH DEPOSIT BETA ASSUMPTION CHANGES |
||||||||||||||||||
% Change in NII (FTE) |
||||||||||||||||||
Betas 25% Higher |
|
Betas 25% Lower |
||||||||||||||||
Change in Interest Rates (bps) |
12 Months |
13-24 Months |
12 Months |
13-24 Months |
||||||||||||||
+ 200 Ramp over 12 months |
(3.52) |
% | (2.27 |
) | 3.07 |
10.15 |
||||||||||||
+ 100 Ramp over 12 months |
(1.80) |
(1.01 |
) | 1.48 |
5.15 |
|||||||||||||
- 100 Ramp over 12 months |
(1.73) |
(6.16 |
) | (3.60 |
) | (9.64 |
) |
TABLE 64: ESTIMATED EVE SENSITIVITY PROFILE | ||||||||||
2019 |
2018 | |||||||||
Change in Interest Rates (bps) |
Change in EVE |
ALCO Policy Limit |
|
Change in EVE |
ALCO Policy Limit | |||||
+ 200 Shock |
(5.12) % |
(12.00) |
(7.09) |
(12.00) | ||||||
+ 100 Shock |
(2.01) |
N/A |
(3.21) |
N/A | ||||||
- 100 Shock |
N/A |
N/A |
(1.01) |
N/A | ||||||
- 150 Shock |
(6.07) |
(12.00) |
N/A |
N/A | ||||||
- 200 Shock |
N/A |
N/A |
(5.27) |
(12.00) |
TABLE 65: WEIGHTED-AVERAGE MATURITY, RECEIVE RATE AND PAY RATE ON QUALIFYING HEDGING INSTRUMENTS |
||||||||||||||||||||
Notional |
Fair |
Remaining |
Receive |
LIBOR Index / |
||||||||||||||||
As of December 31, 2019 ($ in millions) |
Amount |
Value |
(years) |
Rate |
Strike |
|||||||||||||||
Interest rate swaps – cash flow – receive-fixed |
$ |
7,000 |
(2) |
3.9 |
3.0 |
% |
1 ML |
|||||||||||||
Interest rate swaps – cash flow – receive-fixed – forward starting (a) |
1,000 |
- |
5.0 |
3.2 |
1 ML |
|||||||||||||||
Interest rate swaps – fair value – receive-fixed |
2,705 |
393 |
6.8 |
4.4 |
1 ML / 3 ML |
|||||||||||||||
Total interest rate swaps |
$ |
10,705 |
391 |
|||||||||||||||||
Interest rate floors – cash flow – receive-fixed |
$ |
3,000 |
115 |
5.0 |
1.7 |
1 ML / 2.25% |
||||||||||||||
(a) Forward starting swaps will become effective January 2, 2020. |
||||||||||||||||||||
TABLE 66: WEIGHTED-AVERAGE MATURITY, RECEIVE RATE AND PAY RATE ON QUALIFYING HEDGING INSTRUMENTS |
||||||||||||||||||||
Notional |
Fair |
Remaining |
Receive |
LIBOR Index / |
||||||||||||||||
As of December 31, 2018 ($ in millions) |
Amount |
Value |
(years) |
Rate |
Strike |
|||||||||||||||
Interest rate swaps – cash flow – receive-fixed |
$ | 5,000 |
(13) |
4.6 |
3.0 |
% | 1 ML |
|||||||||||||
Interest rate swaps – cash flow – receive-fixed – forward starting (a) |
3,000 |
1 |
5.7 |
3.1 |
1 ML |
|||||||||||||||
Interest rate swaps – fair value – receive-fixed |
3,455 |
260 |
6.3 |
3.8 |
1 ML / 3 ML |
|||||||||||||||
Total interest rate swaps |
$ | 11,455 |
248 |
|||||||||||||||||
Interest rate floors – cash flow – forward starting (b) |
$ | 3,000 |
69 |
6.0 |
N/A |
1 ML / 2.25% |
||||||||||||||
(a) |
Forward starting swaps will become effective January 2, 2020. |
(b) |
Forward starting floors became effective December 16, 2019. |
TABLE 67: PORTFOLIO LOANS AND LEASES EXPECTED CASH FLOWS |
||||||||||||||||
($ in millions) |
Less than 1 year |
1-5 years |
Over 5 years |
Total |
||||||||||||
Commercial and industrial loans |
$ | 29,675 |
20,144 |
723 |
50,542 |
|||||||||||
Commercial mortgage loans |
4,143 |
6,038 |
782 |
10,963 |
||||||||||||
Commercial construction loans |
2,452 |
2,499 |
139 |
5,090 |
||||||||||||
Commercial leases |
925 |
1,647 |
791 |
3,363 |
||||||||||||
Total commercial loans and leases |
37,195 |
30,328 |
2,435 |
69,958 |
||||||||||||
Residential mortgage loans |
3,290 |
7,469 |
5,965 |
16,724 |
||||||||||||
Home equity |
1,924 |
3,306 |
853 |
6,083 |
||||||||||||
Indirect secured consumer loans |
4,266 |
6,590 |
682 |
11,538 |
||||||||||||
Credit card |
506 |
2,026 |
- |
2,532 |
||||||||||||
Other consumer loans |
1,433 |
1,117 |
173 |
2,723 |
||||||||||||
Total consumer loans |
11,419 |
20,508 |
7,673 |
39,600 |
||||||||||||
Total portfolio loans and leases |
$ | 48,614 |
50,836 |
10,108 |
109,558 |
|||||||||||
TABLE 68: PORTFOLIO LOANS AND LEASES EXPECTED CASH FLOWS OCCURRING AFTER 1 YEAR |
||||||||
Interest Rate |
||||||||
($ in millions) |
Fixed |
Floating or Adjustable |
||||||
Commercial and industrial loans |
$ |
3,162 |
17,705 |
|||||
Commercial mortgage loans |
1,542 |
5,278 |
||||||
Commercial construction loans |
35 |
2,603 |
||||||
Commercial leases |
2,438 |
- |
||||||
Total commercial loans and leases |
7,177 |
25,586 |
||||||
Residential mortgage loans |
9,880 |
3,554 |
||||||
Home equity |
485 |
3,674 |
||||||
Indirect secured consumer loans |
7,254 |
18 |
||||||
Credit card |
472 |
1,554 |
||||||
Other consumer loans |
1,037 |
253 |
||||||
Total consumer loans |
19,128 |
9,053 |
||||||
Total portfolio loans and leases |
$ |
26,305 |
34,639 |
|||||
TABLE 69: AGENCY RATINGS |
As of March 2, 2020 |
Moody’s |
Standard and Poor’s |
Fitch |
DBRS |
||||||||||||
Fifth Third Bancorp: |
||||||||||||||||
Short-term borrowings |
No rating |
A-2 |
F1 |
R-1L |
||||||||||||
Senior debt |
Baa1 |
BBB+ |
A- |
A |
||||||||||||
Subordinated debt |
Baa1 |
BBB |
BBB+ |
AL |
||||||||||||
Fifth Third Bank, National Association: |
||||||||||||||||
Short-term borrowings |
P-2 |
A-2 |
F1 |
R-1M |
||||||||||||
Short-term deposit |
P-1 |
No rating |
F1 |
No rating |
||||||||||||
Long-term deposit |
Aa3 |
No rating |
A |
AH |
||||||||||||
Senior debt |
A3 |
A- |
A- |
AH |
||||||||||||
Subordinated debt |
Baa1 |
BBB+ |
BBB+ |
A |
||||||||||||
Rating Agency Outlook for Fifth Third Bancorp and Fifth Third Bank, National Association: |
Stable |
Stable |
Stable |
Stable |
||||||||||||
TABLE 70: PRESCRIBED CAPITAL RATIOS | ||||||
Minimum |
Well-Capitalized | |||||
CET1 capital: |
||||||
Fifth Third Bancorp |
4.50 |
% | N/A | |||
Fifth Third Bank, National Association |
4.50 |
6.50 | ||||
Tier I risk-based capital: |
||||||
Fifth Third Bancorp |
6.00 |
6.00 | ||||
Fifth Third Bank, National Association |
6.00 |
8.00 | ||||
Total risk-based capital: |
||||||
Fifth Third Bancorp |
8.00 |
10.00 | ||||
Fifth Third Bank, National Association |
8.00 |
10.00 | ||||
Tier I leverage: |
||||||
Fifth Third Bancorp |
4.00 |
N/A | ||||
Fifth Third Bank, National Association |
4.00 |
5.00 | ||||
TABLE 71: CAPITAL RATIOS |
||||||||||||||||||
($ in millions) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||
Average total Bancorp shareholders’ equity as a percent of average assets |
12.14 % |
11.23 |
11.69 |
11.57 |
11.24 |
|||||||||||||
Tangible equity as a percent of tangible assets (a)(c) |
9.52 |
9.63 |
9.79 |
9.72 |
9.46 |
|||||||||||||
Tangible common equity as a percent of tangible assets (a)(c) |
8.44 |
8.71 |
8.83 |
8.77 |
8.50 |
|||||||||||||
Regulatory capital: |
||||||||||||||||||
CET1 capital |
$ 13,847 |
12,534 |
12,517 |
12,426 |
11,917 |
|||||||||||||
Tier I capital |
15,616 |
13,864 |
13,848 |
13,756 |
13,260 |
|||||||||||||
Total regulatory capital |
19,661 |
17,723 |
17,887 |
17,972 |
17,134 |
|||||||||||||
Risk-weighted assets (b) |
142,065 |
122,432 |
117,997 |
119,632 |
121,290 |
|||||||||||||
Regulatory capital ratios: |
||||||||||||||||||
CET1 capital |
9.75 % |
10.24 |
10.61 |
10.39 |
9.82 |
|||||||||||||
Tier I risk-based capital |
10.99 |
11.32 |
11.74 |
11.50 |
10.93 |
|||||||||||||
Total risk-based capital |
13.84 |
14.48 |
15.16 |
15.02 |
14.13 |
|||||||||||||
Tier I leverage |
9.54 |
9.72 |
10.01 |
9.90 |
9.54 |
|||||||||||||
(a) |
These are non-GAAP measures. For further information, refer to the Non-GAAP Financial Measures section of MD&A. |
(b) |
Under the U.S. banking agencies’ Basel III Final Rule, assets and credit equivalent amounts of off-balance sheet exposures are calculated according to the standardized approach for risk-weighted assets. The resulting values are added together resulting in the Bancorp’s total risk-weighted assets. |
(c) |
Excludes AOCI. |
TABLE 72: SHARE REPURCHASES |
||||||||
For the years ended December 31 |
2019 |
2018 |
||||||
Shares authorized for repurchase at January 1 |
60,564,282 |
23,147,891 |
||||||
Additional authorizations (a) |
80,474,957 |
87,383,525 |
||||||
Share repurchases (b) |
(64,601,891) |
(49,967,134) |
||||||
Shares authorized for repurchase at December 31 |
76,437,348 |
60,564,282 |
||||||
Average price paid per share (b) |
$ |
26.05 |
29.44 |
|||||
(a) |
During the second quarter of 2019, the Bancorp announced that its Board of Directors had authorized management to purchase 100 million shares of the Bancorp’s common stock through the open market or in any private party transactions. The authorization does not include specific price targets or an expiration date. This share repurchase authorization replaces the Board’s previous authorization pursuant to which approximately 20 million shares remained available for repurchase by the Bancorp. |
(b) |
Excludes 2,693,318 December 31, 2019 |
TABLE 73: CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS |
||||||||||||||||||||
As of December 31, 2019 ($ in millions) |
Less than 1 year |
1-3 years |
3-5 years |
Greater than 5 years |
Total |
|||||||||||||||
Contractually obligated payments due by period: |
||||||||||||||||||||
Deposits with no stated maturity (a)(b) |
$ | 118,123 |
- |
- |
- |
118,123 |
||||||||||||||
Long-term debt (a)(c) |
2,172 |
5,271 |
2,853 |
4,674 |
14,970 |
|||||||||||||||
Time deposits (a)(d) |
7,714 |
1,100 |
118 |
7 |
8,939 |
|||||||||||||||
Short-term borrowings (a)(e) |
1,271 |
- |
- |
- |
1,271 |
|||||||||||||||
Forward contracts related to residential mortgage loans held for sale (f) |
2,901 |
- |
- |
- |
2,901 |
|||||||||||||||
Operating lease obligations (g) |
90 |
157 |
125 |
280 |
652 |
|||||||||||||||
Partnership investment commitments (h) |
230 |
131 |
28 |
39 |
428 |
|||||||||||||||
Pension benefit payments (i) |
16 |
34 |
33 |
70 |
153 |
|||||||||||||||
Purchase obligations and capital expenditures (j) |
133 |
58 |
6 |
- |
197 |
|||||||||||||||
Finance lease obligations (g) |
6 |
10 |
4 |
26 |
46 |
|||||||||||||||
Total contractually obligated payments due by period |
$ | 132,656 |
6,761 |
3,167 |
5,096 |
147,680 |
||||||||||||||
Other commitments by expiration period: |
||||||||||||||||||||
Commitments to extend credit (k) |
$ | 28,673 |
16,263 |
22,654 |
8,181 |
75,771 |
||||||||||||||
Letters of credit (l) |
1,022 |
518 |
592 |
5 |
2,137 |
|||||||||||||||
Total other commitments by expiration period |
$ | 29,695 |
16,781 |
23,246 |
8,186 |
77,908 |
(a) |
Interest-bearing obligations are principally used to fund interest-earning assets. Interest charges on contractual obligations were excluded from reported amounts, as the potential cash outflows would have corresponding cash inflows from interest-earning assets. |
(b) |
Includes demand, interest checking, savings, money market and foreign office deposits. For additional information, refer to the Deposits subsection of the Balance Sheet Analysis section of MD&A. |
(c) |
Includes debt obligations with an original maturity of greater than one year. Refer to Note 18 of the Notes to Consolidated Financial Statements for additional information on these debt instruments. |
(d) |
Includes other time deposits and certificates $100,000 and over. For additional information, refer to the Deposits subsection of the Balance Sheet Analysis section of MD&A. |
(e) |
Includes federal funds purchased and borrowings with an original maturity of less than one year. For additional information, refer to Note 17 of the Notes to Consolidated Financial Statements. |
(f) |
Refer to Note 15 of the Notes to Consolidated Financial Statements for additional information on forward contracts to sell residential mortgage loans. |
(g) |
Refer to Note 10 of the Notes to Consolidated Financial Statements for additional information on lease obligations. |
(h) |
Includes LIHTC and New Markets Tax Credit investments. For additional information, refer to Note 13 of the Notes to Consolidated Financial Statements. |
(i) |
Refer to Note 23 of the Notes to Consolidated Financial Statements for additional information on pension obligations. |
(j) |
Represents agreements to purchase goods or services and includes commitments to various general contractors for work related to banking center construction. |
(k) |
Commitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Many of the commitments to extend credit may expire without being drawn upon. The total commitment amounts include capital commitments for private equity investments and do not necessarily represent future cash flow requirements. For additional information, refer to Note 19 of the Notes to Consolidated Financial Statements. |
(l) |
Letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. For additional information, refer to Note 19 of the Notes to Consolidated Financial Statements. |
● |
We tested the effectiveness of the Bancorp’s controls over the qualitative adjustments to the ALLL for the commercial portfolio segment. |
● |
We assessed the reasonableness of, and evaluated support for, key qualitative adjustments based on market conditions and/or commercial portfolio performance metrics. |
● |
We tested the completeness and accuracy and evaluated the relevance of the key data used as inputs to the qualitative adjustment estimation process, including: |
¡ |
Commercial portfolio segment loan balances by class |
¡ |
Commercial portfolio segment net losses charged-off |
¡ |
Relevant macroeconomic indicators |
¡ |
Relevant internal loan portfolio data |
● |
With the assistance of our credit specialists, we tested the mathematical accuracy of the underlying support used as a basis for the qualitative adjustments to the historical loss rates. |
● |
We evaluated the Bancorp’s historical qualitative factor estimation process by comparing actual commercial loan losses to the ALLL recorded in historical periods for the commercial portfolio segment, inclusive of these qualitative adjustments. |
As of December 31 ($ in millions, except share data) |
2019 |
2018 |
||||||
Assets |
||||||||
Cash and due from banks |
$ |
|||||||
Other short-term investments (a) |
||||||||
Available-for-sale debt and other securities(b) |
||||||||
Held-to-maturity securities(c) |
||||||||
Trading debt securities |
||||||||
Equity securities |
||||||||
Loans and leases held for sale (d) |
||||||||
Portfolio loans and leases (a)(e) |
||||||||
Allowance for loan and lease losses (a) |
( |
( |
||||||
Portfolio loans and leases, net |
||||||||
Bank premises and equipment (f) |
||||||||
Operating lease equipment |
||||||||
Goodwill |
||||||||
Intangible assets |
||||||||
Servicing rights |
||||||||
Other assets (a) |
||||||||
Total Assets |
$ |
|||||||
Liabilities |
||||||||
Deposits: |
||||||||
Noninterest-bearing deposits |
$ |
|||||||
Interest-bearing deposits |
||||||||
Total deposits |
||||||||
Federal funds purchased |
||||||||
Other short-term borrowings |
||||||||
Accrued taxes, interest and expenses |
||||||||
Other liabilities (a) |
||||||||
Long-term debt (a) |
||||||||
Total Liabilities |
$ |
|||||||
Equity |
||||||||
Common stock (g) |
$ |
|||||||
Preferred stock (h) |
||||||||
Capital surplus |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive income (loss) |
( |
|||||||
Treasury stock (g) |
( |
( |
||||||
Total Bancorp shareholders’ equity |
$ |
|||||||
Noncontrolling interests |
||||||||
Total Equity |
||||||||
Total Liabilities and Equity |
$ |
|||||||
(a) |
Includes $ $ $( $ $ $ December 31, 2019 |
(b) |
Amortized cost of $ December 31, 2019 |
(c) |
Fair value of $ December 31, 2019 |
(d) |
Includes $ $ December 31, 2019 |
(e) |
Includes $ December 31, 2019 |
(f) |
Includes $ December 31, 2019 |
(g) |
Common shares: Stated value $ December 31, 2019 – |
(h) |
December 31, 2019 December 31, 2019 December 31, 2019 December 31, 2019 |
For the years ended December 31 ($ in millions, except share data) |
2019 |
2018 |
2017 |
|||||||||
Interest Income |
||||||||||||
Interest and fees on loans and leases |
$ |
|
|
|
||||||||
Interest on securities |
|
|
|
|||||||||
Interest on other short-term investments |
|
|
|
|||||||||
Total interest income |
|
|
|
|||||||||
Interest Expense |
||||||||||||
Interest on deposits |
|
|
|
|||||||||
Interest on federal funds purchased |
|
|
|
|||||||||
Interest on other short-term borrowings |
|
|
|
|||||||||
Interest on long-term debt |
|
|
|
|||||||||
Total interest expense |
|
|
|
|||||||||
Net Interest Income |
|
|
|
|||||||||
Provision for credit losses |
|
|
|
|||||||||
Net Interest Income After Provision for Credit Losses |
|
|
|
|||||||||
Noninterest Income |
||||||||||||
Corporate banking revenue |
|
|
|
|||||||||
Service charges on deposits |
|
|
|
|||||||||
Wealth and asset management revenue |
|
|
|
|||||||||
Card and processing revenue |
|
|
|
|||||||||
Mortgage banking net revenue |
|
|
|
|||||||||
Other noninterest income |
|
|
|
|||||||||
Securities gains (losses), net |
|
( |
) | |
||||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servicing rights |
|
( |
) | |
||||||||
Total noninterest income |
|
|
|
|||||||||
Noninterest Expense |
||||||||||||
Salaries, wages and incentives |
|
|
|
|||||||||
Employee benefits |
|
|
|
|||||||||
Technology and communications |
|
|
|
|||||||||
Net occupancy expense |
|
|
|
|||||||||
Card and processing expense |
|
|
|
|||||||||
Equipment expense |
|
|
|
|||||||||
Other noninterest expense |
|
|
|
|||||||||
Total noninterest expense |
|
|
|
|||||||||
Income Before Income Taxes |
|
|
|
|||||||||
Applicable income tax expense |
|
|
|
|||||||||
Net Income |
|
|
|
|||||||||
Less: Net income attributable to noncontrolling interests |
|
|
|
|||||||||
Net Income Attributable to Bancorp |
|
|
|
|||||||||
Dividends on preferred stock |
|
|
|
|||||||||
Net Income Available to Common Shareholders |
$ |
|
|
|
||||||||
Earnings per share - basic |
$ |
|
|
|
||||||||
Earnings per share - diluted |
$ |
|
|
|
||||||||
Average common shares outstanding - basic |
|
|
|
|||||||||
Average common shares outstanding - diluted |
|
|
|
|||||||||
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Net Income |
$ |
|
|
|
||||||||
Other Comprehensive Income (Loss), Net of Tax: |
||||||||||||
Unrealized gains (losses) on available-for-sale debt securities: |
||||||||||||
Unrealized holding gains (losses) arising during the year |
|
( |
) | |
||||||||
Reclassification adjustment for net (gains) losses included in net income |
( |
) |
|
|
||||||||
Unrealized gains (losses) on cash flow hedge derivatives: |
||||||||||||
Unrealized holding gains (losses) arising during the year |
|
|
( |
) | ||||||||
Reclassification adjustment for net (gains) losses included in net income |
( |
) |
|
( |
||||||||
Defined benefit pension plans, net: |
||||||||||||
Net actuarial (loss) gain arising during the year |
( |
) |
|
|
||||||||
Reclassification of amounts to net periodic benefit costs |
|
|
|
|||||||||
Other comprehensive income (loss), net of tax |
|
( |
) | |
||||||||
Comprehensive Income |
|
|
|
|||||||||
Less: Comprehensive income attributable to noncontrolling interests |
|
|
|
|||||||||
Comprehensive Income Attributable to Bancorp |
$ |
|
|
|
||||||||
Bancorp Shareholders’ Equity |
||||||||||||||||||||||||||||||||||||
($ in millions, except per share data) |
Common Stock |
Preferred Stock |
Capital Surplus |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total Bancorp Shareholders’ Equity |
Non- Controlling Interests |
Total Equity |
|||||||||||||||||||||||||||
Balance at December 31, 2016 |
$ |
|
|
|
|
|
( |
) | |
|
|
|||||||||||||||||||||||||
Net income |
|
|
|
|||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
|
|
|
|||||||||||||||||||||||||||||||||
Cash dividends declared: |
||||||||||||||||||||||||||||||||||||
Common stock (a) |
( |
) | ( |
) | ( |
|||||||||||||||||||||||||||||||
Preferred stock (b) |
( |
) | ( |
) | ( |
|||||||||||||||||||||||||||||||
Shares acquired for treasury |
( |
) | ( |
) | ( |
) | ( |
|||||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net |
|
|
|
|
||||||||||||||||||||||||||||||||
Other |
( |
) | |
|
( |
) | ( |
|||||||||||||||||||||||||||||
Balance at December 31, 2017 |
$ | |
|
|
|
|
( |
) | |
|
|
|||||||||||||||||||||||||
Impact of cumulative effect of change in accounting principles |
|
( |
) | |
|
|||||||||||||||||||||||||||||||
Balance at January 1, 2018 |
|
|
|
|
|
( |
) | |
|
|
||||||||||||||||||||||||||
Net income |
|
|
|
|||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax |
( |
) | ( |
) | ( |
|||||||||||||||||||||||||||||||
Cash dividends declared: |
||||||||||||||||||||||||||||||||||||
Common stock (a) |
( |
) | ( |
) | ( |
|||||||||||||||||||||||||||||||
Preferred stock (b) |
( |
) | ( |
) | ( |
|||||||||||||||||||||||||||||||
Shares acquired for treasury |
|
( |
) | ( |
) | ( |
||||||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net |
|
|
|
|
||||||||||||||||||||||||||||||||
Other |
( |
) | |
( |
) | ( |
) | ( |
||||||||||||||||||||||||||||
Balance at December 31, 2018 |
$ | |
|
|
|
( |
) | ( |
) | |
|
|
||||||||||||||||||||||||
Impact of cumulative effect of change in accounting principle (c) |
|
|
|
|||||||||||||||||||||||||||||||||
Balance at January 1, 2019 |
|
|
|
|
( |
) |
( |
) |
|
|
|
|||||||||||||||||||||||||
Net income |
|
|
|
|||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
|
|
|
|||||||||||||||||||||||||||||||||
Cash dividends declared: |
||||||||||||||||||||||||||||||||||||
Common stock (a) |
( |
) |
( |
) |
( |
|||||||||||||||||||||||||||||||
Preferred stock (b) |
( |
) |
( |
) |
( |
|||||||||||||||||||||||||||||||
Shares acquired for treasury |
( |
) |
( |
) |
( |
|||||||||||||||||||||||||||||||
Issuance of preferred stock |
|
|
|
|||||||||||||||||||||||||||||||||
Conversion of outstanding preferred stock issued by a Bancorp subsidiary |
|
|
( |
) |
|
|||||||||||||||||||||||||||||||
Impact of MB Financial, Inc. acquisition |
|
|
|
|
|
|||||||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net |
|
|
|
|
|
|||||||||||||||||||||||||||||||
Other |
( |
) |
|
|
|
|||||||||||||||||||||||||||||||
Balance at December 31, 2019 |
$ |
|
|
|
|
|
( |
) |
|
|
|
|||||||||||||||||||||||||
(a) |
For the years ended December 31, 2019 $ |
(b) |
For the years ended December 31, 2019 $ $ December 31, 2019 $ December 31, 2019 $ $ $ |
(c) |
Related to the adoption of ASU 2016-02 as of January 1, 2019. Refer to Note 1 for additional information. |
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Operating Activities |
||||||||||||
Net income |
$ |
|||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||
Provision for credit losses |
||||||||||||
Depreciation, amortization and accretion |
||||||||||||
Stock-based compensation expense |
||||||||||||
(Benefit from) provision for deferred income taxes |
( |
) |
( |
|||||||||
Securities (gains) losses, net |
( |
) |
( |
|||||||||
Securities (gains) losses, net-non-qualifying hedges on mortgage servicing rights |
( |
) |
( |
|||||||||
MSR fair value adjustment |
||||||||||||
Net gains on sales of loans and fair value adjustments on loans held for sale |
( |
) |
( |
) | ( |
|||||||
Net losses on disposition and impairment of bank premises and equipment |
||||||||||||
Net losses (gains) on disposition and impairment of operating lease equipment |
( |
) | ||||||||||
Gain related to Vantiv, Inc.’s acquisition of Worldpay Group plc. |
( |
) | ||||||||||
Gain on sale of Worldpay, Inc. shares |
( |
) |
( |
) | ( |
|||||||
Gain on the TRA associated with Worldpay, Inc. |
( |
) |
( |
) | ( |
|||||||
Proceeds from sales of loans held for sale |
||||||||||||
Loans originated or purchased for sale, net of repayments |
( |
) |
( |
) | ( |
|||||||
Dividends representing return on equity investments |
||||||||||||
Net change in: |
||||||||||||
Trading debt and equity securities |
( |
) |
( |
|||||||||
Other assets |
( |
|||||||||||
Accrued taxes, interest and expenses |
( |
) |
( |
|||||||||
Other liabilities |
( |
) |
||||||||||
Net Cash Provided by Operating Activities |
||||||||||||
Investing Activities |
||||||||||||
Proceeds from sales: |
||||||||||||
Available-for-sale securities and other investments |
||||||||||||
Loans and leases |
||||||||||||
Bank premises and equipment |
||||||||||||
Proceeds from repayments / maturities: |
||||||||||||
Available-for-sale securities and other investments |
||||||||||||
Held-to-maturity securities |
||||||||||||
Purchases: |
||||||||||||
Available-for-sale securities and other investments |
( |
) |
( |
) | ( |
|||||||
Bank premises and equipment |
( |
) |
( |
) | ( |
|||||||
MSRs |
( |
) |
( |
) | ( |
|||||||
Proceeds from settlement of BOLI |
||||||||||||
Proceeds from sales and dividends representing return of equity investments |
||||||||||||
Net cash received (paid) on acquisitions |
( |
) | ( |
|||||||||
Net change in: |
||||||||||||
Federal funds sold |
||||||||||||
Other short-term investments |
( |
) |
||||||||||
Loans and leases |
( |
) |
( |
) | ( |
|||||||
Operating lease equipment |
( |
) |
( |
|||||||||
Net Cash (Used in) Provided by Investing Activities |
( |
) |
( |
) | ||||||||
Financing Activities |
||||||||||||
Net change in: |
||||||||||||
Deposits |
( |
|||||||||||
Federal funds purchased |
( |
) |
||||||||||
Other short-term borrowings |
( |
) | ||||||||||
Dividends paid on common stock |
( |
) |
( |
) | ( |
|||||||
Dividends paid on preferred stock |
( |
) |
( |
) | ( |
|||||||
Proceeds from issuance of long-term debt |
||||||||||||
Repayment of long-term debt |
( |
) |
( |
) | ( |
|||||||
Repurchases of treasury stock and related forward contracts |
( |
) |
( |
) | ( |
|||||||
Issuance of preferred stock |
||||||||||||
Other |
( |
) |
( |
) | ( |
|||||||
Net Cash (Used in) Provided by Financing Activities |
( |
) |
( |
|||||||||
Increase in Cash and Due from Banks |
||||||||||||
Cash and Due from Banks at Beginning of Period |
||||||||||||
Cash and Due from Banks at End of Period |
$ |
|||||||||||
2. SUPPLEMENTAL CASH FLOW INFORMATION |
($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Cash Payments: |
||||||||||||
Interest |
$ |
|||||||||||
Income taxes |
||||||||||||
Transfers: |
||||||||||||
Portfolio loans to loans held for sale |
||||||||||||
Loans held for sale to portfolio loans |
||||||||||||
Portfolio loans to OREO |
||||||||||||
Supplemental Disclosures: |
||||||||||||
Conversion of outstanding preferred stock issued by a Bancorp subsidiary |
||||||||||||
Additions to right-of-use assets under operating leases |
||||||||||||
Additions to right-of-use assets under finance leases |
||||||||||||
Right-of-use assets recognized at adoption of ASU 2016-02 |
||||||||||||
3. BUSINESS COMBINATION |
($ in millions) |
||||||||||||
Consideration paid |
||||||||||||
Cash payments |
$ |
|||||||||||
Fair value of common stock issued |
||||||||||||
Stock-based awards |
||||||||||||
Dividend receivable from MB Financial, Inc. |
( |
|||||||||||
Total consideration paid |
$ |
|||||||||||
Fair value of noncontrolling interest in acquiree |
$ |
|||||||||||
Net Identifiable Assets Acquired, at Fair Value: |
||||||||||||
Assets |
||||||||||||
Cash and due from banks |
$ |
|||||||||||
Federal funds sold |
||||||||||||
Other short-term investments |
||||||||||||
Available-for-sale debt and other securities |
||||||||||||
Held-to-maturity securities |
||||||||||||
Equity securities |
||||||||||||
Loans and leases held for sale |
||||||||||||
Portfolio loans and leases (a) |
||||||||||||
Bank premises and equipment (a) |
||||||||||||
Operating lease equipment (a) |
||||||||||||
Intangible assets (a) |
||||||||||||
Servicing rights |
||||||||||||
Other assets (a) |
||||||||||||
Total assets acquired |
$ |
|||||||||||
Liabilities |
||||||||||||
Deposits |
$ |
|||||||||||
Other short-term borrowings (a) |
||||||||||||
Accrued taxes, interest and expenses (a) |
||||||||||||
Other liabilities (a) |
||||||||||||
Long-term debt (a) |
||||||||||||
Total liabilities assumed |
$ |
|||||||||||
Net identifiable assets acquired |
||||||||||||
Goodwill |
$ |
For the years ended December 31, |
||||||||
($ in millions) |
2019 |
2018 |
||||||
Salaries, wages and incentives |
$ |
|||||||
Employee benefits |
||||||||
Technology and communications |
||||||||
Net occupancy expense |
||||||||
Card and processing expense |
||||||||
Equipment expense |
||||||||
Other noninterest expense |
||||||||
Total |
$ |
Unaudited Pro Forma Information |
||||||||
For the years ended December 31, |
||||||||
($ in millions) |
2019 |
2018 |
||||||
Net interest income |
$ |
|||||||
Noninterest income |
| |||||||
Net income available to common shareholders |
($ in millions) |
March 22, 2019 |
|||
Contractually required payments including interest |
$ | |||
Less: Nonaccretable difference |
||||
Cash flows expected to be collected |
||||
Less: Accretable yield |
||||
Fair value of loans acquired |
$ | |||
A summary of activity related to accretable yield is as follows: |
||||
($ in millions) |
Accretable Yield |
|||
Balance as of December 31, 2018 |
$ |
|||
Additions |
||||
Accretion |
( |
|||
Reclassifications (to) from nonaccretable difference |
( |
|||
Balance as of December 31, 2019 |
$ |
4. RESTRICTIONS ON CASH, DIVIDENDS AND OTHER CAPITAL ACTIONS |
2019 |
2018 |
|||||||||||||||||||||||||||||||
Amortized |
Unrealized |
Unrealized |
Fair |
Amortized |
Unrealized |
Unrealized |
Fair |
|||||||||||||||||||||||||
($ in millions) |
Cost |
Gains |
Losses |
Value |
Cost |
Gains |
Losses |
Value |
||||||||||||||||||||||||
Available-for-sale debt and other securities: |
||||||||||||||||||||||||||||||||
U.S. Treasury and federal agencies securities |
$ |
( |
||||||||||||||||||||||||||||||
Obligations of states and political subdivisions securities |
||||||||||||||||||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||||||||||||||
Agency residential mortgage-backed securities |
( |
( |
||||||||||||||||||||||||||||||
Agency commercial mortgage-backed securities |
( |
( |
||||||||||||||||||||||||||||||
Non-agency commercial mortgage-backed securities |
( |
|||||||||||||||||||||||||||||||
Asset-backed securities and other debt securities |
( |
( |
||||||||||||||||||||||||||||||
Other securities (a) |
||||||||||||||||||||||||||||||||
Total available-for-sale debt and other securities |
$ |
( |
( |
|||||||||||||||||||||||||||||
Held-to-maturity securities: |
||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions securities |
$ |
|||||||||||||||||||||||||||||||
Asset-backed securities and other debt securities |
||||||||||||||||||||||||||||||||
Total held-to-maturity securities |
$ |
(a) |
Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $ $ $ December 31, 2019 |
($ in millions) |
2019 |
2018 |
||||||
Trading debt securities |
$ |
|||||||
Equity securities |
($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Available-for-sale debt and other securities: |
||||||||||||
Realized gains |
$ |
|||||||||||
Realized losses |
( |
) |
( |
) | ( |
|||||||
OTTI |
( |
) |
( |
|||||||||
Net realized gains (losses) on available-for-sale debt and other securities |
$ |
( |
) | ( |
||||||||
Total trading debt securities gains (losses) |
$ |
( |
) | |||||||||
Total equity securities gains (losses) (a) |
$ |
( |
) | |||||||||
Total gains (losses) recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities(b) |
$ |
( |
) |
(a) |
Includes $ December 31, 2019 |
(b) |
Excludes $ December 31, 2019 and an insignificant amount of net securities gains (losses) for both the years ended December 31, 2018 and 2017 included in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income related to securities held by FTS to facilitate the timely execution of customer transactions. |
Available-for-Sale Debt and Other |
Held-to-Maturity |
|||||||||||||||||
($ in millions) |
Amortized Cost |
Fair Value |
Amortized Cost |
Fair Value |
||||||||||||||
Debt securities: (a) |
||||||||||||||||||
Less than 1 year |
$ | |||||||||||||||||
1-5 years |
||||||||||||||||||
5-10 years |
||||||||||||||||||
Over 10 years |
||||||||||||||||||
Other securities |
||||||||||||||||||
Total |
$ | |||||||||||||||||
(a) |
Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. |
Less than 12 months |
12 months or more |
Total |
||||||||||||||||||||||
($ in millions) |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
||||||||||||||||||
2019 |
||||||||||||||||||||||||
Agency residential mortgage-backed securities |
$ |
( |
( |
|||||||||||||||||||||
Agency commercial mortgage-backed securities |
( |
( |
||||||||||||||||||||||
Asset-backed securities and other debt securities |
( |
( |
( |
|||||||||||||||||||||
Total |
$ |
( |
( |
( |
||||||||||||||||||||
2018 |
||||||||||||||||||||||||
U.S. Treasury and federal agencies securities |
$ | ( |
( |
|||||||||||||||||||||
Agency residential mortgage-backed securities |
( |
( |
( |
|||||||||||||||||||||
Agency commercial mortgage-backed securities |
( |
( |
( |
|||||||||||||||||||||
Non-agency commercial mortgage-backed securities |
( |
( |
( |
|||||||||||||||||||||
Asset-backed securities and other debt securities |
( |
( |
( |
|||||||||||||||||||||
Total |
$ | ( |
( |
( |
||||||||||||||||||||
($ in millions) |
2019 |
2018 |
||||||
Loans and leases held for sale: |
||||||||
Commercial and industrial loans |
$ |
|||||||
Commercial mortgage loans |
||||||||
Residential mortgage loans |
||||||||
Total loans and leases held for sale |
$ |
|||||||
Portfolio loans and leases: |
||||||||
Commercial and industrial loans |
$ |
|||||||
Commercial mortgage loans |
||||||||
Commercial construction loans |
||||||||
Commercial leases |
||||||||
Total commercial loans and leases |
||||||||
Residential mortgage loans |
||||||||
Home equity |
||||||||
Indirect secured consumer loans |
||||||||
Credit card |
||||||||
Other consumer loans |
||||||||
Total consumer loans |
||||||||
Total portfolio loans and leases |
$ |
|||||||
90 Days Past Due |
Net |
|||||||||||||||||||||||||
Carrying Value |
and Still Accruing |
Charge-Offs (Recoveries) |
||||||||||||||||||||||||
($ in millions) |
2019 |
2019 |
2018 |
2019 |
2018 |
|||||||||||||||||||||
Commercial and industrial loans |
$ |
|||||||||||||||||||||||||
Commercial mortgage loans |
( |
( |
||||||||||||||||||||||||
Commercial construction loans |
||||||||||||||||||||||||||
Commercial leases |
||||||||||||||||||||||||||
Residential mortgage loans |
||||||||||||||||||||||||||
Home equity |
||||||||||||||||||||||||||
Indirect secured consumer loans |
||||||||||||||||||||||||||
Credit card |
||||||||||||||||||||||||||
Other consumer loans |
||||||||||||||||||||||||||
Total loans and leases |
$ |
|||||||||||||||||||||||||
Less: Loans and leases held for sale |
$ |
|||||||||||||||||||||||||
Total portfolio loans and leases |
$ |
|||||||||||||||||||||||||
($ in millions) |
December 31, 2019 (a) |
|||
Net investment in direct financing leases: |
||||
Lease payment receivable (present value) |
$ | |||
Unguaranteed residual assets (present value) |
||||
Net discount on acquired leases |
( |
|||
Deferred selling profits |
||||
Net investment in sales-type leases: |
||||
Lease payment receivable (present value) |
||||
Unguaranteed residual assets (present value) |
||||
Net discount on acquired leases |
||||
(a) |
Excludes $ |
($ in millions) |
December 31, 2018 |
|||
Rentals receivable, net of principal and interest on nonrecourse debt |
$ | |||
Estimated residual value of leased assets |
||||
Initial direct cost, net of amortization |
||||
Gross investment in commercial lease financing |
||||
Unearned income |
( |
|||
Net investment in commercial lease financing |
$ | |||
As of December 31, 2019 ($ in millions) |
Direct Financing Leases |
Sales-Type Leases |
||||
2020 |
$ |
|||||
2021 |
||||||
2022 |
||||||
2023 |
||||||
2024 |
||||||
Thereafter |
||||||
Total undiscounted cash flows |
$ |
|||||
Less: Difference between undiscounted cash flows and discounted cash flows |
||||||
Present value of lease payments (recognized as lease receivables) |
$ |
|||||
Residential |
||||||||||||||
2019 ($ in millions) |
Commercial |
Mortgage |
Consumer |
Unallocated |
Total |
|||||||||
Balance, beginning of period |
$ |
|||||||||||||
Losses charged-off (a) |
( |
( |
( |
( |
||||||||||
Recoveries of losses previously charged-off (a) |
||||||||||||||
Provision for (benefit from) loan and lease losses |
( |
|||||||||||||
Balance, end of period |
$ |
|||||||||||||
Residential |
||||||||||||||
2018 ($ in millions) |
Commercial |
Mortgage |
Consumer |
Unallocated |
Total |
|||||||||
Balance, beginning of period |
$ | |||||||||||||
Losses charged-off (a) |
( |
( |
( |
( |
||||||||||
Recoveries of losses previously charged-off (a) |
||||||||||||||
Provision for (benefit from) loan and lease losses |
( |
( |
||||||||||||
Balance, end of period |
$ | |||||||||||||
Residential |
||||||||||||||
2017 ($ in millions) |
Commercial |
Mortgage |
Consumer |
Unallocated |
Total |
|||||||||
Balance, beginning of period |
$ | |||||||||||||
Losses charged-off |
( |
( |
( |
( |
||||||||||
Recoveries of losses previously charged-off |
||||||||||||||
Provision for loan and lease losses |
||||||||||||||
Deconsolidation of a VIE |
( |
( |
( |
|||||||||||
Balance, end of period |
$ | |||||||||||||
Residential |
||||||||||||||
As of December 31, 2019 ($ in millions) |
Commercial |
Mortgage |
Consumer |
Unallocated |
Total |
|||||||||
ALLL: (a) |
||||||||||||||
Individually evaluated for impairment |
$ |
|||||||||||||
Collectively evaluated for impairment |
||||||||||||||
Unallocated |
||||||||||||||
Total ALLL |
$ |
|||||||||||||
Portfolio loans and leases: (b) |
||||||||||||||
Individually evaluated for impairment |
$ |
|||||||||||||
Collectively evaluated for impairment |
||||||||||||||
Purchased credit impaired |
||||||||||||||
Total portfolio loans and leases |
$ |
|||||||||||||
(a) |
Includes $ December 31, 2019 |
(b) |
Excludes $ $ December 31, 2019 |
Residential |
||||||||||||||||||||
As of December 31, 2018 ($ in millions) |
Commercial |
Mortgage |
Consumer |
Unallocated |
Total |
|||||||||||||||
ALLL: (a) |
||||||||||||||||||||
Individually evaluated for impairment |
$ | |||||||||||||||||||
Collectively evaluated for impairment |
||||||||||||||||||||
Unallocated |
||||||||||||||||||||
Total ALLL |
$ | |||||||||||||||||||
Portfolio loans and leases: (b) |
||||||||||||||||||||
Individually evaluated for impairment |
$ | |||||||||||||||||||
Collectively evaluated for impairment |
||||||||||||||||||||
Total portfolio loans and leases |
$ | |||||||||||||||||||
(a) |
Includes $ |
(b) |
Excludes $ |
Special |
||||||||||||||||||||
As of December 31, 2019 ($ in millions) |
Pass |
Mention |
Substandard |
Doubtful |
Total |
|||||||||||||||
Commercial and industrial loans |
$ |
|||||||||||||||||||
Commercial mortgage owner-occupied loans |
||||||||||||||||||||
Commercial mortgage nonowner-occupied loans |
||||||||||||||||||||
Commercial construction loans |
||||||||||||||||||||
Commercial leases |
||||||||||||||||||||
Total commercial loans and leases |
$ |
|||||||||||||||||||
Special |
||||||||||||||||||||
As of December 31, 2018 ($ in millions) |
Pass |
Mention |
Substandard |
Doubtful |
Total |
|||||||||||||||
Commercial and industrial loans |
$ | |||||||||||||||||||
Commercial mortgage owner-occupied loans |
||||||||||||||||||||
Commercial mortgage nonowner-occupied loans |
||||||||||||||||||||
Commercial construction loans |
||||||||||||||||||||
Commercial leases |
||||||||||||||||||||
Total commercial loans and leases |
$ | |||||||||||||||||||
2019 |
2018 |
|||||||||||||||||||
($ in millions) |
Performing |
Nonperforming |
Performing |
Nonperforming |
||||||||||||||||
Residential mortgage loans (a) |
$ |
|||||||||||||||||||
Home equity |
||||||||||||||||||||
Indirect secured consumer loans |
||||||||||||||||||||
Credit card |
||||||||||||||||||||
Other consumer loans |
||||||||||||||||||||
Total residential mortgage and consumer loans (a) |
$ |
(a) |
Excludes $ December 31, 2019 |
Current |
Past Due |
90 Days Past |
||||||||||||||||||||||
Loans and |
30-89 |
90 Days |
Total |
Total Loans |
Due and Still |
|||||||||||||||||||
As of December 31, 2019 ($ in millions) |
Leases (b)(c) |
Days (c) |
or More (c) |
Past Due |
and Leases |
Accruing |
||||||||||||||||||
Commercial loans and leases: |
||||||||||||||||||||||||
Commercial and industrial loans |
$ |
|||||||||||||||||||||||
Commercial mortgage owner-occupied loans |
||||||||||||||||||||||||
Commercial mortgage nonowner-occupied loans |
||||||||||||||||||||||||
Commercial construction loans |
||||||||||||||||||||||||
Commercial leases |
||||||||||||||||||||||||
Residential mortgage loans (a) |
||||||||||||||||||||||||
Consumer loans: |
||||||||||||||||||||||||
Home equity |
||||||||||||||||||||||||
Indirect secured consumer loans |
||||||||||||||||||||||||
Credit card |
||||||||||||||||||||||||
Other consumer loans |
||||||||||||||||||||||||
Total portfolio loans and leases (a) |
$ |
(a) |
Excludes $ December 31, 2019 |
(b) |
Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2019 $ 30-89 days past due and $ $ December 31, 2019 |
(c) |
Includes accrual and nonaccrual loans and leases. |
Current |
Past Due |
90 Days Past |
||||||||||||||||||||||
Loans and |
30-89 |
90 Days |
Total |
Total Loans |
Due and Still |
|||||||||||||||||||
As of December 31, 2018 ($ in millions) |
Leases (b)(c) |
Days (c) |
or More (c) |
Past Due |
and Leases |
Accruing |
||||||||||||||||||
Commercial loans and leases: |
||||||||||||||||||||||||
Commercial and industrial loans |
$ | |||||||||||||||||||||||
Commercial mortgage owner-occupied loans |
||||||||||||||||||||||||
Commercial mortgage nonowner-occupied loans |
||||||||||||||||||||||||
Commercial construction loans |
||||||||||||||||||||||||
Commercial leases |
||||||||||||||||||||||||
Residential mortgage loans (a) |
||||||||||||||||||||||||
Consumer loans: |
||||||||||||||||||||||||
Home equity |
||||||||||||||||||||||||
Indirect secured consumer loans |
||||||||||||||||||||||||
Credit card |
||||||||||||||||||||||||
Other consumer loans |
||||||||||||||||||||||||
Total portfolio loans and leases (a) |
$ |
(a) |
Excludes $ |
(b) |
Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2018, $ 30-89 days past due and $ |
(c) |
Includes accrual and nonaccrual loans and leases. |
2019 ($ in millions) |
Unpaid Principal Balance |
Recorded Investment |
ALLL |
|||||||||||||||||
With a related ALLL: |
||||||||||||||||||||
Commercial loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
$ |
|||||||||||||||||||
Commercial mortgage owner-occupied loans |
- |
|||||||||||||||||||
Commercial mortgage nonowner-occupied loans |
- |
- |
||||||||||||||||||
Commercial leases |
||||||||||||||||||||
Restructured residential mortgage loans |
||||||||||||||||||||
Restructured consumer loans: |
||||||||||||||||||||
Home equity |
||||||||||||||||||||
Indirect secured consumer loans |
- |
|||||||||||||||||||
Credit card |
||||||||||||||||||||
Total impaired portfolio loans and leases with a related ALLL |
$ |
|||||||||||||||||||
With no related ALLL: |
||||||||||||||||||||
Commercial loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
$ |
- |
||||||||||||||||||
Commercial mortgage owner-occupied loans |
- |
|||||||||||||||||||
Commercial mortgage nonowner-occupied loans |
- |
|||||||||||||||||||
Commercial leases |
- |
|||||||||||||||||||
Restructured residential mortgage loans |
- |
|||||||||||||||||||
Restructured consumer loans: |
||||||||||||||||||||
Home equity |
- |
|||||||||||||||||||
Indirect secured consumer loans |
- |
|||||||||||||||||||
Total impaired portfolio loans and leases with no related ALLL |
$ |
- |
||||||||||||||||||
Total impaired portfolio loans and leases |
$ |
(a) |
(a) |
Includes $ $ $ $ $ $ December 31, 2019 |
2018 ($ in millions) |
Unpaid Principal Balance |
Recorded Investment |
ALLL |
|||||||||
With a related ALLL: |
||||||||||||
Commercial loans and leases: |
||||||||||||
Commercial and industrial loans |
$ | |||||||||||
Commercial mortgage owner-occupied loans |
||||||||||||
Commercial mortgage nonowner-occupied loans |
- |
|||||||||||
Commercial leases |
||||||||||||
Restructured residential mortgage loans |
||||||||||||
Restructured consumer loans: |
||||||||||||
Home equity |
||||||||||||
Indirect secured consumer loans |
||||||||||||
Credit card |
||||||||||||
Total impaired portfolio loans and leases with a related ALLL |
$ | |||||||||||
With no related ALLL: |
||||||||||||
Commercial loans and leases: |
||||||||||||
Commercial and industrial loans |
$ | - |
||||||||||
Commercial mortgage owner-occupied loans |
- |
|||||||||||
Commercial mortgage nonowner-occupied loans |
- |
|||||||||||
Restructured residential mortgage loans |
- |
|||||||||||
Restructured consumer loans: |
||||||||||||
Home equity |
- |
|||||||||||
Indirect secured consumer loans |
- |
|||||||||||
Total impaired portfolio loans and leases with no related ALLL |
$ | - |
||||||||||
Total impaired portfolio loans and leases |
$ | (a) |
||||||||||
(a) |
Includes $ |
2019 |
2018 |
2017 |
||||||||||||||||||||||
($ in millions) |
Average Recorded Investment |
Interest Income Recognized |
Average Recorded Investment |
Interest Income Recognized |
Average Recorded Investment |
Interest Income Recognized |
||||||||||||||||||
Commercial loans and leases: |
||||||||||||||||||||||||
Commercial and industrial loans |
$ |
|||||||||||||||||||||||
Commercial mortgage owner-occupied loans |
||||||||||||||||||||||||
Commercial mortgage nonowner-occupied loans |
||||||||||||||||||||||||
Commercial leases |
||||||||||||||||||||||||
Restructured residential mortgage loans |
||||||||||||||||||||||||
Restructured consumer loans: |
||||||||||||||||||||||||
Home equity |
||||||||||||||||||||||||
Indirect secured consumer loans |
||||||||||||||||||||||||
Credit card |
||||||||||||||||||||||||
Total average impaired portfolio loans and leases |
$ |
|||||||||||||||||||||||
($ in millions) |
2019 |
2018 |
||||||
Commercial loans and leases: |
||||||||
Commercial and industrial loans |
$ |
|||||||
Commercial mortgage owner-occupied loans |
||||||||
Commercial mortgage nonowner-occupied loans |
||||||||
Commercial construction loans |
||||||||
Commercial leases |
||||||||
Total nonaccrual portfolio commercial loans and leases |
||||||||
Residential mortgage loans |
||||||||
Consumer loans: |
||||||||
Home equity |
||||||||
Indirect secured consumer loans |
||||||||
Credit card |
||||||||
Other consumer loans |
||||||||
Total nonaccrual portfolio consumer loans |
||||||||
Total nonaccrual portfolio loans and leases (a)(b) |
$ |
|||||||
OREO and other repossessed property |
||||||||
Total nonperforming portfolio assets (a)(b) |
$ |
|||||||
(a) |
Excludes $ December 31, 2019 |
(b) |
Includes $ December 31, 2019 $ December 31, 2019 |
2019 ($ in millions) (a)(b) |
Number of Loans Modified in a TDR During the Year (c) |
Recorded Investment in Loans Modified in a TDR During the Year |
(Decrease) Increase to ALLL Upon Modification |
Charge-offs Recognized Upon Modification |
||||||||||||
Commercial loans and leases: |
||||||||||||||||
Commercial and industrial loans |
$ |
( |
) |
|||||||||||||
Commercial mortgage owner-occupied loans |
||||||||||||||||
Commercial mortgage nonowner-occupied loans |
||||||||||||||||
Residential mortgage loans |
||||||||||||||||
Consumer loans: |
||||||||||||||||
Home equity |
||||||||||||||||
Indirect secured consumer loans |
||||||||||||||||
Credit card |
||||||||||||||||
Total portfolio loans and leases |
$ |
( |
) |
|||||||||||||
(a) |
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. |
(b) |
Excludes loans classified as TDRs as a result of the Bancorp’s conformance to OCC guidance with regard to non-reaffirmed loans included in Chapter 7 bankruptcy filings. |
(c) |
Represents number of loans post-modification and excludes loans previously modified in a TDR. |
2018 ($ in millions) (a) |
Number of Loans Modified in a TDR During the Year (b) |
Recorded Investment in Loans Modified in a TDR During the Year |
Increase (Decrease) to ALLL Upon Modification |
Charge-offs Recognized Upon Modification |
||||||||||||
Commercial loans and leases: |
||||||||||||||||
Commercial and industrial loans |
$ | |||||||||||||||
Commercial mortgage owner-occupied loans |
( |
) | ||||||||||||||
Commercial mortgage nonowner-occupied loans |
||||||||||||||||
Residential mortgage loans |
||||||||||||||||
Consumer loans: |
||||||||||||||||
Home equity |
||||||||||||||||
Indirect secured consumer loans |
||||||||||||||||
Credit card |
||||||||||||||||
Total portfolio loans and leases |
$ | |||||||||||||||
(a) |
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. |
(b) |
Represents number of loans post-modification and excludes loans previously modified in a TDR. |
2017 ($ in millions) (a) |
Number of Loans Modified in a TDR During the Year (b) |
Recorded Investment in Loans Modified in a TDR During the Year |
Increase (Decrease) to ALLL Upon Modification |
Charge-offs Recognized Upon Modification |
||||||||||||
Commercial loans and leases: |
||||||||||||||||
Commercial and industrial loans |
$ | ( |
) | |||||||||||||
Commercial mortgage owner-occupied loans |
||||||||||||||||
Commercial mortgage nonowner-occupied loans |
||||||||||||||||
Commercial leases |
||||||||||||||||
Residential mortgage loans |
||||||||||||||||
Consumer loans: |
||||||||||||||||
Home equity |
||||||||||||||||
Indirect secured consumer loans |
||||||||||||||||
Credit card |
||||||||||||||||
Total portfolio loans and leases |
$ | |||||||||||||||
(a) |
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. |
(b) |
Represents number of loans post-modification and excludes loans previously modified in a TDR. |
December 31, 2019 ($ in millions) (a)(b) |
Number of Contracts |
Recorded Investment |
||||||||||||
Commercial loans and leases: |
||||||||||||||
Commercial and industrial loans |
$ |
|||||||||||||
Commercial mortgage owner-occupied loans |
||||||||||||||
Commercial mortgage nonowner-occupied loans |
||||||||||||||
Residential mortgage loans |
||||||||||||||
Consumer loans: |
||||||||||||||
Home equity |
||||||||||||||
Credit card |
||||||||||||||
Total portfolio loans and leases |
$ |
|||||||||||||
(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. (b) Excludes loans classified as TDRs as a result of the Bancorp’s conformance to OCC guidance with regard to non-reaffirmed loans included in Chapter 7 bankruptcy filings. | ||||||||||||||
December 31, 2018 ($ in millions) (a) |
Number of Contracts |
Recorded Investment |
||||||||||||
Commercial loans and leases: |
||||||||||||||
Commercial and industrial loans |
$ | |||||||||||||
Commercial mortgage owner-occupied loans |
||||||||||||||
Residential mortgage loans |
||||||||||||||
Consumer loans: |
||||||||||||||
Home equity |
||||||||||||||
Credit card |
||||||||||||||
Total portfolio loans and leases |
$ | |||||||||||||
(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | ||||||||||||||
December 31, 2017 ($ in millions) (a) |
Number of Contracts |
Recorded Investment |
||||||||||||
Commercial loans and leases: |
||||||||||||||
Commercial and industrial loans |
$ | |||||||||||||
Commercial mortgage owner-occupied loans |
||||||||||||||
Residential mortgage loans |
||||||||||||||
Consumer loans: |
||||||||||||||
Home equity |
||||||||||||||
Credit card |
||||||||||||||
Total portfolio loans and leases |
$ | |||||||||||||
(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
($ in millions) |
Estimated Useful Life |
2019 |
2018 |
|||||||||
Land and improvements (a) |
$ |
|||||||||||
Buildings (a) |
||||||||||||
Equipment |
||||||||||||
Leasehold improvements |
||||||||||||
Construction in progress (a) |
||||||||||||
Bank premises and equipment held for sale: |
||||||||||||
Land and improvements |
||||||||||||
Buildings |
||||||||||||
Equipment |
||||||||||||
Accumulated depreciation and amortization |
( |
) |
( |
) | ||||||||
Total bank premises and equipment |
$ |
|||||||||||
(a) |
At December 31, 2019 $ |
As of December 31, 2019 ($ in millions) |
Undiscounted Cash Flows |
|||
2020 |
$ | |||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
Thereafter |
||||
Total operating lease payments |
$ | |||
($ in millions) |
Consolidated Balance Sheets Caption |
December 31, 2019 |
||||
Assets |
||||||
Operating lease right-of-use assets |
Other assets |
$ | ||||
Finance lease right-of-use assets |
Bank premises and equipment |
|||||
Total right-of-use assets(a) |
$ | |||||
Liabilities |
||||||
Operating lease liabilities |
Accrued taxes, interest and expenses |
$ | ||||
Finance lease liabilities |
Long-term debt |
|||||
Total lease liabilities |
$ |
(a) |
Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $ |
($ in millions) |
Consolidated Statements of Income Caption |
For the year ended December 31, 2019 |
||||
Lease costs: |
||||||
Amortization of right-of-use assets |
Net occupancy and equipment expense |
$ | ||||
Interest on lease liabilities |
Interest on long-term debt |
|||||
Total finance lease costs |
$ | |||||
Operating lease cost |
Net occupancy expense |
$ | ||||
Short-term lease cost |
Net occupancy expense |
|||||
Variable lease cost |
Net occupancy expense |
|||||
Sublease income |
Net occupancy expense |
( |
||||
Total operating lease costs |
$ | |||||
Total lease costs |
$ | |||||
As of December 31, 2019 ($ in millions) |
Operating Leases |
Finance Leases |
Total |
|||||||||
2020 |
$ | |||||||||||
2021 |
||||||||||||
2022 |
||||||||||||
2023 |
||||||||||||
2024 |
||||||||||||
Thereafter |
||||||||||||
Total undiscounted cash flows |
$ | |||||||||||
Less: Difference between undiscounted cash flows and discounted cash flows |
||||||||||||
Present value of lease liabilities |
$ |
December 31, 2019 |
||||
Weighted-average remaining lease term (years): |
||||
Operating leases |
||||
Finance leases |
||||
Weighted-average discount rate: |
||||
Operating leases |
||||
Finance leases |
||||
($ in millions) |
December 31, 2019 |
|||
Cash paid for amounts included in the measurement of lease liabilities: (a) |
||||
Operating cash flows from operating leases |
$ | |||
Operating cash flows from finance leases |
||||
Financing cash flows from finance leases |
||||
Gains on sale and leaseback transactions |
||||
(a) |
The cash flows related to the short-term and variable lease payments are not included in the amounts in the table as they were not included in the measurement of lease liabilities. |
($ in millions) |
Commercial Banking |
Branch Banking |
Consumer Lending |
Wealth and Asset Management |
Total |
|||||||||||||||
Goodwill |
$ |
|||||||||||||||||||
Accumulated impairment losses |
( |
( |
( |
|||||||||||||||||
Net carrying amount as of December 31, 2017 |
$ | |||||||||||||||||||
Acquisition activity |
||||||||||||||||||||
Net carrying amount as of December 31, 2018 |
$ | |||||||||||||||||||
Acquisition activity |
||||||||||||||||||||
Sale of business |
( |
( |
||||||||||||||||||
Net carrying amount as of December 31, 2019 |
$ |
|||||||||||||||||||
($ in millions) |
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
|||||||||
As of December 31, 2019 |
||||||||||||
Core deposit intangibles |
$ |
( |
||||||||||
Customer relationships |
( |
|||||||||||
Operating leases |
( |
|||||||||||
Non-compete agreements |
( |
|||||||||||
Other |
( |
|||||||||||
Total intangible assets |
$ |
( |
||||||||||
As of December 31, 2018 |
||||||||||||
Core deposit intangibles |
$ | ( |
||||||||||
Customer relationships |
( |
|||||||||||
Non-compete agreements |
( |
|||||||||||
Other |
( |
|||||||||||
Total intangible assets |
$ | ( |
||||||||||
($ in millions) |
Total |
|||
2020 |
$ |
|
||
2021 |
|
|||
2022 |
|
|||
2023 |
|
|||
2024 |
|
($ in millions) |
December 31, 2019 |
December 31, 2018 |
||||||
Assets: |
||||||||
Other short-term investments |
$ |
|
|
|||||
Indirect secured consumer loans |
|
|
||||||
ALLL |
( |
) |
( |
|||||
Other assets |
|
|
||||||
Total assets |
$ |
|
|
|||||
Liabilities: |
||||||||
Other liabilities |
$ |
|
|
|||||
Long-term debt |
|
|
||||||
Total liabilities |
$ |
|
|
December 31, 2019 ($ in millions) |
Total Assets |
Total Liabilities |
Maximum Exposure |
|||||||||
CDC investments |
$ |
|
|
|
||||||||
Private equity investments |
|
|
|
|||||||||
Loans provided to VIEs |
|
|
|
|||||||||
Lease pool entities |
|
|
|
|||||||||
December 31, 2018 ($ in millions) |
Total Assets |
Total Liabilities |
Maximum Exposure |
|||||||||
CDC investments |
$ | |
|
|
||||||||
Private equity investments |
|
|
|
|||||||||
Loans provided to VIEs |
|
|
|
|||||||||
For the years ended December 31 ($ in millions) |
Consolidated Statements of Income Caption (a) |
2019 |
2018 |
2017 |
||||||||||||
Proportional amortization |
Applicable income tax expense |
$ |
|
|
|
|||||||||||
Tax credits and other benefits |
Applicable income tax expense |
( |
( |
( |
||||||||||||
(a) |
The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during the years ended December 31, 2019, |
($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Residential mortgage loan sales (a) |
$ |
|||||||||||
Origination fees and gains on loan sales |
||||||||||||
Gross mortgage servicing fees |
||||||||||||
(a) |
Represents the unpaid principal balance at the time of the sale. |
($ in millions) |
2019 |
2018 |
||||||||||
Balance, beginning of period |
$ |
|||||||||||
Servicing rights originated |
||||||||||||
Servicing rights purchased |
||||||||||||
Servicing rights obtained in acquisition |
||||||||||||
Changes in fair value: |
||||||||||||
Due to changes in inputs or assumptions (a) |
( |
) |
||||||||||
Other changes in fair value (b) |
( |
) |
( |
) | ||||||||
Balance, end of period |
$ |
|||||||||||
(a) |
Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates. |
(b) |
Primarily reflects changes due to collection of contractual cash flows and the passage of time. |
($ in millions) |
2019 |
2018 |
2017 |
|||||||||||||
Securities gains (losses), net - non-qualifying hedges on MSRs |
$ |
( |
||||||||||||||
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) |
( |
|||||||||||||||
MSR fair value adjustment due to changes in inputs or assumptions (a) |
( |
) |
( |
) | ||||||||||||
(a) |
Included in mortgage banking net revenue in the Consolidated Statements of Income. |
2019 |
2018 |
|||||||||||||||||||||||||||||
Rate |
Weighted- Average Life (in years) |
Prepayment Speed (annual) |
OAS (bps) |
Weighted- Average Life (in years) |
Prepayment Speed (annual) |
OAS (bps) |
||||||||||||||||||||||||
Residential mortgage loans: |
||||||||||||||||||||||||||||||
Servicing rights |
Fixed |
% |
% | |||||||||||||||||||||||||||
Servicing rights |
Adjustable |
- |
- |
- |
||||||||||||||||||||||||||
Prepayment Speed Assumption |
OAS Assumption |
|||||||||||||||||||||||||||||||||||||||
($ in millions) (a) |
Rate |
Fair Value |
Weighted- Average Life (in years) |
Impact of Adverse Change on Fair Value |
OAS (bps) |
Impact of Adverse Change on Fair Value |
||||||||||||||||||||||||||||||||||
Rate |
10% |
20% |
50% |
10% |
20% |
|||||||||||||||||||||||||||||||||||
Residential mortgage loans: |
||||||||||||||||||||||||||||||||||||||||
Servicing rights |
Fixed |
$ |
% | $ |
( |
( |
) | ( |
$ | ( |
) | ( |
||||||||||||||||||||||||||||
Servicing rights |
Adjustable |
( |
( |
) | ( |
|||||||||||||||||||||||||||||||||||
(a) |
The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial. |
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 |
$ |
|||||||||||||||
Total fair value hedges |
||||||||||||||||
Cash flow hedges: |
||||||||||||||||
Interest rate floors related to C&I loans |
||||||||||||||||
Interest rate swaps related to C&I loans |
||||||||||||||||
Total cash flow hedges |
||||||||||||||||
Total derivatives designated as qualifying hedging instruments |
||||||||||||||||
Derivatives Not Designated as Qualifying Hedging Instruments |
||||||||||||||||
Free-standing derivatives - risk management and other business purposes: |
||||||||||||||||
Interest rate contracts related to MSR portfolio |
||||||||||||||||
Forward contracts related to residential mortgage loans held for sale |
||||||||||||||||
Swap associated with the sale of Visa, Inc. Class B Shares |
||||||||||||||||
Foreign exchange contracts |
||||||||||||||||
Total free-standing derivatives - risk management and other business purposes |
||||||||||||||||
Free-standing derivatives - customer accommodation: |
||||||||||||||||
Interest rate contracts (a) |
||||||||||||||||
Interest rate lock commitments |
||||||||||||||||
Commodity contracts |
||||||||||||||||
TBA securities |
||||||||||||||||
Foreign exchange contracts |
||||||||||||||||
Total free-standing derivatives - customer accommodation |
||||||||||||||||
Total derivatives not designated as qualifying hedging instruments |
||||||||||||||||
Total |
$ |
|||||||||||||||
(a) |
Derivative assets and liabilities are presented net of variation margin of $ |
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 |
$ | |||||||||||||||
Total fair value hedges |
||||||||||||||||
Cash flow hedges: |
||||||||||||||||
Interest rate floors related to C&I loans |
||||||||||||||||
Interest rate swaps related to C&I loans |
||||||||||||||||
Total cash flow hedges |
||||||||||||||||
Total derivatives designated as qualifying hedging instruments |
||||||||||||||||
Derivatives Not Designated as Qualifying Hedging Instruments |
||||||||||||||||
Free-standing derivatives - risk management and other business purposes: |
||||||||||||||||
Interest rate contracts related to MSR portfolio |
||||||||||||||||
Forward contracts related to residential mortgage loans held for sale |
||||||||||||||||
Swap associated with the sale of Visa, Inc. Class B Shares |
||||||||||||||||
Foreign exchange contracts |
||||||||||||||||
Total free-standing derivatives - risk management and other business purposes |
||||||||||||||||
Free-standing derivatives - customer accommodation: |
||||||||||||||||
Interest rate contracts |
||||||||||||||||
Interest rate lock commitments |
||||||||||||||||
Commodity contracts |
||||||||||||||||
TBA securities |
||||||||||||||||
Foreign exchange contracts |
||||||||||||||||
Total free-standing derivatives - customer accommodation |
||||||||||||||||
Total derivatives not designated as qualifying hedging instruments |
||||||||||||||||
Total |
$ | |||||||||||||||
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 |
$ |
|
( |
|
( |
||||||||||
Change in fair value of hedged long-term debt attributable to the risk being hedged |
Interest on long-term debt |
( |
||||||||||||||
($ in millions) |
Consolidated Balance Sheets Caption |
December 31, 2019 |
||||
Carrying amount of the hedged items |
Long-term debt |
$ | ||||
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items |
Long-term debt |
|||||
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Amount of pre-tax net gains (losses) recognized in OCI |
$ |
( |
||||||||||
Amount of pre-tax net gains (losses) reclassified from OCI into net income |
( |
|||||||||||
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 |
$ |
( |
) | ( |
|||||||||
Interest rate contracts related to MSR portfolio |
Mortgage banking net revenue |
( |
) | |||||||||||
Foreign exchange contracts: |
||||||||||||||
Foreign exchange contracts for risk management purposes |
Other noninterest income |
( |
( |
|||||||||||
Equity contracts: |
||||||||||||||
Stock warrant |
Other noninterest income |
( |
||||||||||||
Swap associated with sale of Visa, Inc. Class B Shares |
Other noninterest income |
( |
( |
) | ( |
|||||||||
At December 31 ($ in millions) |
2019 |
2018 |
||||||
Pass |
$ |
|||||||
Special mention |
||||||||
Substandard |
||||||||
Total |
$ |
|||||||
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 |
$ |
||||||||||||
Interest rate contracts for customers (credit losses) |
Other noninterest expense |
( |
||||||||||||
Interest rate contracts for customers (credit portion of fair value adjustment) |
Other noninterest expense |
( |
) |
|||||||||||
Interest rate lock commitments |
Mortgage banking net revenue |
|||||||||||||
Commodity contracts: |
||||||||||||||
Commodity contracts for customers (contract revenue) |
Corporate banking revenue |
|||||||||||||
Commodity contracts for customers (credit losses) |
Other noninterest expense |
|||||||||||||
Commodity contracts for customers (credit portion of fair value adjustment) |
Other noninterest expense |
( |
) | |||||||||||
Foreign exchange contracts: |
||||||||||||||
Foreign exchange contracts for customers (contract revenue) |
Corporate banking revenue |
|||||||||||||
Foreign exchange contracts for customers (contract revenue) |
Other noninterest income |
|||||||||||||
Foreign exchange contracts for customers (credit losses) |
Other noninterest expense |
|||||||||||||
Foreign exchange contracts for customers (credit portion of fair value adjustment) |
Other noninterest expense |
|||||||||||||
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 |
$ |
( |
) |
( |
||||||||||||
Total assets |
( |
) |
( |
|||||||||||||
Liabilities: |
||||||||||||||||
Derivatives |
( |
) |
( |
|||||||||||||
Total liabilities |
$ |
( |
) |
( |
||||||||||||
(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 |
$ | ( |
) | ( |
||||||||||||
Total assets |
( |
) | ( |
|||||||||||||
Liabilities: |
||||||||||||||||
Derivatives |
( |
) | ( |
|||||||||||||
Total liabilities |
$ | ( |
) | ( |
||||||||||||
(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. |
($ in millions) |
2019 |
2018 |
||||||
Accounts receivable and drafts-in-process |
$ |
|||||||
Bank owned life insurance |
||||||||
Partnership investments |
||||||||
Derivative instruments |
||||||||
Operating lease right-of-use assets |
||||||||
Accrued interest and fees receivable |
||||||||
Worldpay, Inc. TRA receivable |
||||||||
Prepaid expenses |
||||||||
OREO and other repossessed personal property |
||||||||
Income tax receivable |
||||||||
Investment in Worldpay Holding, LLC |
||||||||
Other |
||||||||
Total other assets |
$ |
|||||||
2019 |
2018 |
|||||||||||||||
($ in millions) |
Amount |
Rate |
Amount |
Rate |
||||||||||||
As of December 31: |
||||||||||||||||
Federal funds purchased |
$ |
$ | ||||||||||||||
Other short-term borrowings |
||||||||||||||||
Average for the years ended December 31: |
||||||||||||||||
Federal funds purchased |
$ |
$ | ||||||||||||||
Other short-term borrowings |
||||||||||||||||
Maximum month-end balance for the years ended December 31: |
||||||||||||||||
Federal funds purchased |
$ |
$ |
||||||||||||||
Other short-term borrowings |
||||||||||||||||
($ in millions) |
2019 |
2018 |
||||||
Securities sold under repurchase agreements |
$ |
|||||||
Derivative collateral |
||||||||
Total other short-term borrowings |
$ |
|||||||
($ in millions) |
Maturity |
Interest Rate |
2019 |
2018 |
||||||||||||
Parent Company |
||||||||||||||||
Senior: |
||||||||||||||||
Fixed-rate notes |
2019 |
$ |
||||||||||||||
Fixed-rate notes |
2020 |
|||||||||||||||
Floating-rate notes (b) |
2021 |
|||||||||||||||
Fixed-rate notes |
2022 |
|||||||||||||||
Fixed-rate notes |
2022 |
|||||||||||||||
Fixed-rate notes |
2024 |
|||||||||||||||
Fixed-rate notes |
2025 |
|||||||||||||||
Fixed-rate notes |
2028 |
|||||||||||||||
Subordinated: (a) |
||||||||||||||||
Fixed-rate notes |
2024 |
|||||||||||||||
Fixed-rate notes |
2038 |
|||||||||||||||
Subsidiaries |
||||||||||||||||
Senior: |
||||||||||||||||
Fixed-rate notes |
2019 |
|||||||||||||||
Fixed-rate notes |
2019 |
|||||||||||||||
Fixed-rate notes |
2019 |
|||||||||||||||
Floating-rate notes (c) |
2019 |
|||||||||||||||
Fixed-rate notes |
2020 |
|||||||||||||||
Floating-rate notes (b) |
2020 |
|||||||||||||||
Fixed-rate notes |
2021 |
|||||||||||||||
Fixed-rate notes |
2021 |
|||||||||||||||
Fixed-rate notes |
2021 |
|||||||||||||||
Floating-rate notes (b) |
2021 |
|||||||||||||||
Floating-rate notes (b) |
2022 |
|||||||||||||||
Fixed-rate notes |
2025 |
|||||||||||||||
Subordinated: (a) |
||||||||||||||||
Fixed-rate bank notes |
2026 |
|||||||||||||||
Fixed-rate bank notes |
2027 |
|||||||||||||||
Junior subordinated: |
||||||||||||||||
Floating-rate debentures (b) |
2035 |
- |
||||||||||||||
FHLB advances |
2020 - 2047 |
- |
||||||||||||||
Notes associated with consolidated VIEs: |
||||||||||||||||
Automobile loan securitizations: |
||||||||||||||||
Fixed-rate notes |
2022 - 2026 |
- |
||||||||||||||
Floating-rate notes (b) |
2022 |
|||||||||||||||
Other |
2020 - 2040 |
Varies |
||||||||||||||
Total |
$ |
|||||||||||||||
(a) |
In aggregate, $ December 31, 2019 |
(b) |
These rates reflect the floating rates as of December 31, 2019. |
(c) |
These rates reflect the floating rates as of December 31, 2018. |
($ in millions) |
Parent |
Subsidiaries |
Total |
|||||||||
2020 |
$ |
|||||||||||
2021 |
||||||||||||
2022 |
||||||||||||
2023 |
||||||||||||
2024 |
||||||||||||
Thereafter |
||||||||||||
Total |
$ | |||||||||||
($ in millions) |
2019 |
2018 |
||||||
Commitments to extend credit |
$ |
|||||||
Letters of credit |
||||||||
Forward contracts related to residential mortgage loans held for sale |
||||||||
Purchase obligations |
||||||||
Capital commitments for private equity investments |
||||||||
Capital expenditures |
||||||||
($ in millions) |
2019 |
2018 |
||||||
Pass |
$ |
|||||||
Special mention |
||||||||
Substandard |
||||||||
Doubtful |
||||||||
Total commitments to extend credit |
$ |
|||||||
($ in millions) |
||||
Less than 1 year (a) |
$ |
|||
1 - 5 years (a) |
||||
Over 5 years |
||||
Total letters of credit |
$ | |||
(a) |
Includes $ |
($ in millions) |
2019 |
2018 |
||||||
Pass |
$ |
|||||||
Special mention |
||||||||
Substandard |
||||||||
Doubtful |
||||||||
Total letters of credit |
$ |
|||||||
($ in millions) |
2019 |
2018 |
||||||
Balance, beginning of period |
$ |
|||||||
Net reductions to the reserve |
( |
|||||||
Balance, end of period |
$ |
|||||||
GSE |
Private Label |
|||||||||||||||
2019 ($ in millions) |
Units |
Dollars |
Units |
Dollars |
||||||||||||
Balance, beginning of period |
$ |
$ |
||||||||||||||
New demands |
||||||||||||||||
Loan paydowns/payoffs |
( |
) |
||||||||||||||
Resolved demands |
( |
) |
( |
( |
) |
( |
||||||||||
Balance, end of period |
$ |
$ |
||||||||||||||
GSE |
Private Label |
|||||||||||||||
2018 ($ in millions) |
Units |
Dollars |
Units |
Dollars |
||||||||||||
Balance, beginning of period |
$ | $ | ||||||||||||||
New demands |
||||||||||||||||
Resolved demands |
( |
) | ( |
|||||||||||||
Balance, end of period |
$ | $ |
||||||||||||||
Period ($ in millions) |
Visa Funding Amount |
Bancorp Cash Payment Amount | ||||
Q2 2010 |
$ |
|||||
Q4 2010 |
||||||
Q2 2011 |
||||||
Q1 2012 |
||||||
Q3 2012 |
||||||
Q3 2014 |
||||||
Q2 2018 |
||||||
Q3 2019 |
||||||
($ in millions) |
2019 |
2018 |
||||||
Commitments to lend, net of participations: |
||||||||
Directors and their affiliated companies |
$ |
|||||||
Executive officers |
||||||||
Total |
$ |
|||||||
Outstanding balance on loans, net of participations and undrawn commitments |
$ |
|||||||
($ in millions) |
Gain on Transactions |
Remaining Ownership Percentage |
||||||
Q4 2012 |
$ | |||||||
Q2 2013 |
||||||||
Q3 2013 |
||||||||
Q2 2014 |
||||||||
Q4 2015 |
||||||||
Q3 2017 |
||||||||
Q1 2018 |
||||||||
Q2 2018 |
||||||||
Q1 2019 |
||||||||
($ in millions) |
Cash Flows to be Received from Put/Call Options Exercised in the First Quarter of 2020 |
Cash Flows to be Received from Put/Call Options Expected to be Exercised |
Estimated Cash Flows to be Received not Subject to Put/Call Option (a) |
|||||||||||||
2020 |
$ | |||||||||||||||
2021 |
||||||||||||||||
2022 |
||||||||||||||||
2023 |
||||||||||||||||
2024 |
||||||||||||||||
2025 |
||||||||||||||||
Total |
$ | |||||||||||||||
(a) |
The 2020 cash flow of $1 million was agreed upon with Worldpay, Inc. and recognized as a gain in other noninterest income during the fourth quarter of 2019 with payment received by the Bancorp in January 2020. The remaining estimated cash flows in this column will be recognized in future periods when the related uncertainties are resolved. |
($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Current income tax expense (benefit): |
||||||||||||
U.S. Federal income taxes |
$ |
|||||||||||
State and local income taxes |
||||||||||||
Foreign income taxes |
( |
|||||||||||
Total current income tax expense |
||||||||||||
Deferred income tax (benefit) expense: |
||||||||||||
U.S. Federal income taxes |
( |
( |
||||||||||
State and local income taxes |
( |
|||||||||||
Foreign income taxes |
||||||||||||
Total deferred income tax (benefit) expense |
( |
( |
||||||||||
Applicable income tax expense |
$ |
|||||||||||
2019 |
2018 |
2017 |
||||||||||
Statutory tax rate |
% |
|||||||||||
Increase (decrease) resulting from: |
||||||||||||
State taxes, net of federal benefit |
||||||||||||
Tax-exempt income |
( |
) |
( |
) | ( |
) | ||||||
LIHTC investment and other tax benefits |
( |
) |
( |
) | ( |
) | ||||||
LIHTC investment proportional amortization |
||||||||||||
Other tax credits |
( |
) |
( |
) | ( |
) | ||||||
U.S. tax legislation impact on deferred taxes |
( |
) | ||||||||||
Other, net |
( |
) |
( |
) | ( |
) | ||||||
Effective tax rate |
% |
|||||||||||
($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Unrecognized tax benefits at January 1 |
$ |
|||||||||||
Gross increases for tax positions taken during prior period |
||||||||||||
Gross decreases for tax positions taken during prior period |
( |
( |
( |
|||||||||
Gross increases for tax positions taken during current period |
||||||||||||
Settlements with taxing authorities |
( |
( |
( |
|||||||||
Lapse of applicable statute of limitations |
( |
( |
( |
|||||||||
Unrecognized tax benefits at December 31 (a) |
$ |
|||||||||||
(a) |
With the exception of $ 2019 |
($ in millions) |
2019 |
2018 |
||||||
Deferred tax assets: |
||||||||
Allowance for loan and lease losses |
$ |
|||||||
Deferred compensation |
||||||||
Other comprehensive income |
||||||||
Reserve for unfunded commitments |
||||||||
Reserves |
||||||||
State net operating loss carryforwards |
||||||||
Other |
||||||||
Total deferred tax assets |
$ |
|||||||
Deferred tax liabilities: |
||||||||
Lease financing |
$ |
|||||||
Investments in joint ventures and partnership interests |
||||||||
MSRs and related economic hedges |
||||||||
State deferred taxes |
||||||||
Bank premises and equipment |
||||||||
Other comprehensive income |
||||||||
Other |
||||||||
Total deferred tax liabilities |
$ |
|||||||
Total net deferred tax liability |
$ |
( |
( |
($ in millions) |
2019 |
2018 |
||||||
Prepaid benefit cost |
$ |
|||||||
Accrued benefit liability |
( |
) |
( |
) | ||||
Net underfunded status |
$ |
( |
) |
( |
) |
($ in millions) |
2019 |
2018 |
||||||
Fair value of plan assets at January 1 |
$ |
- |
||||||
Actual return on assets |
- |
( |
) | |||||
Settlement |
- |
( |
) | |||||
Benefits paid |
- |
( |
) | |||||
Fair value of plan assets at December 31 |
$ |
- |
||||||
Projected benefit obligation at January 1 |
$ |
- |
||||||
Interest cost |
- |
|||||||
Settlement |
- |
( |
) | |||||
Actuarial gain |
- |
( |
) | |||||
Benefits paid |
- |
( |
) | |||||
Projected benefit obligation at December 31 |
$ |
- |
||||||
Overfunded projected benefit obligation at December 31 |
$ |
- |
||||||
Accumulated benefit obligation at December 31 (b) |
$ |
- |
(a) |
The Bancorp’s qualified defined benefit plan had an underfunded status at December 31, 2019 |
(b) |
Since the Plan’s benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at December 31, 2018. |
($ in millions) |
2019 |
2018 |
||||||
Fair value of plan assets at January 1 |
$ |
- |
||||||
Actual return on assets |
||||||||
Contributions |
||||||||
Settlement |
( |
) |
||||||
Benefits paid |
( |
) |
( |
) | ||||
Fair value of plan assets at December 31 |
$ |
- |
||||||
Projected benefit obligation at January 1 |
$ |
|||||||
Interest cost |
||||||||
Settlement |
( |
) |
||||||
Actuarial loss (gain) |
( |
) | ||||||
Benefits paid |
( |
) |
( |
) | ||||
Projected benefit obligation at December 31 |
$ |
|||||||
Underfunded projected benefit obligation at December 31 |
$ |
( |
) |
( |
) | |||
Accumulated benefit obligation at December 31 (a) |
$ |
(a) |
Since the Plan’s benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2019 |
($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Components of net periodic benefit cost: |
||||||||||||
Interest cost |
$ |
|||||||||||
Expected return on assets |
( |
) |
( |
) | ( |
) | ||||||
Amortization of net actuarial loss |
||||||||||||
Settlement |
||||||||||||
Net periodic benefit cost |
$ |
|||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income: |
||||||||||||
Net actuarial loss (gain) |
$ |
( |
) | ( |
) | |||||||
Amortization of net actuarial loss |
( |
) |
( |
) | ( |
) | ||||||
Settlement |
( |
) |
( |
) | ( |
) | ||||||
Total recognized in other comprehensive income |
( |
) |
( |
) | ( |
) | ||||||
Total recognized in net periodic benefit cost and other comprehensive income |
$ |
( |
) | ( |
) |
Fair Value Measurements Using (a) |
||||||||||||||||
2019 ($ in millions) |
Level 1 (c) |
Level 2 (c) |
Level 3 |
Total Fair Value |
||||||||||||
Cash equivalents |
$ |
|||||||||||||||
Mutual and exchange-traded funds |
||||||||||||||||
Debt securities: |
||||||||||||||||
U.S. Treasury and federal agencies securities |
||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||
Non-agency commercial mortgage-backed securities |
||||||||||||||||
Asset-backed securities and other debt securities (b) |
||||||||||||||||
Total debt securities |
$ |
|||||||||||||||
Total Plan assets |
$ |
(a) |
For further information on fair value hierarchy levels, refer to Note 1. |
(b) |
Includes corporate bonds. |
(c) |
During the year ended December 31, 2019, no assets or liabilities were transferred between Level 1 and Level 2. |
Fair Value Measurements Using (a) |
||||||||||||||||
2018 ($ in millions) |
Level 1 (d) |
Level 2 (d) |
Level 3 |
Total Fair Value |
||||||||||||
Cash equivalents |
$ | |||||||||||||||
Mutual and exchange-traded funds |
||||||||||||||||
Debt securities: |
||||||||||||||||
U.S. Treasury and federal agencies securities |
||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||
Non-agency commercial mortgage-backed securities |
||||||||||||||||
Asset-backed securities and other debt securities (b) |
||||||||||||||||
Total debt securities |
$ | |||||||||||||||
Total Plan assets, excluding collective funds |
$ | |||||||||||||||
Collective funds (NAV) (c) |
||||||||||||||||
Total Plan assets |
$ |
(a) |
For further information on fair value hierarchy levels, refer to Note 1. |
(b) |
Includes corporate bonds. |
(c) |
Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the fair value of Plan assets presented elsewhere within this footnote. |
(d) |
During the year ended December 31, 2018, no assets or liabilities were transferred between Level 1 and Level 2. |
2019 |
2018 |
2017 |
||||||||||
For measuring benefit obligations at year end: (a) |
||||||||||||
Discount rate |
% |
|||||||||||
For measuring net periodic benefit cost: (a) |
||||||||||||
Discount rate |
||||||||||||
Expected return on plan assets |
||||||||||||
(a) |
Since the Plan’s benefits were frozen, except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. |
Targeted Range (b) |
2019 |
2018 |
||||||||||
Equity securities (a) |
0-55 % |
|||||||||||
Fixed-income securities |
50-100 |
|||||||||||
Alternative strategies |
0-5 |
- |
||||||||||
Cash or cash equivalents |
0-100 |
|||||||||||
Total |
||||||||||||
(a) |
Includes mutual and exchange-traded funds. |
(b) |
These reflect the targeted ranges for the year ended December 31, 2019. |
Total OCI |
Total AOCI |
|||||||||||||||||||||||||||||||||
2019 ($ in millions) |
Pre-tax Activity |
Tax Effect |
Net Activity |
Beginning Balance |
Net Activity |
Ending Balance |
||||||||||||||||||||||||||||
Unrealized holding gains on available-for-sale debt securities arising during the year |
$ |
( |
) |
|||||||||||||||||||||||||||||||
Reclassification adjustment for net gains on available-for-sale debt securities included in net income |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
Net unrealized gains on available-for-sale debt securities |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
Unrealized holding gains on cash flow hedge derivatives arising during the year |
( |
) |
||||||||||||||||||||||||||||||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
Net unrealized gains on cash flow hedge derivatives |
( |
) |
||||||||||||||||||||||||||||||||
Net actuarial loss arising during the year |
( |
) |
- |
( |
) |
|||||||||||||||||||||||||||||
Reclassification of amounts to net periodic benefit costs |
( |
) |
||||||||||||||||||||||||||||||||
Defined benefit pension plans, net |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||
Total |
$ |
( |
) |
( |
) |
|||||||||||||||||||||||||||||
Total OCI |
Total AOCI |
|||||||||||||||||||||||||||||||||
2018 ($ in millions) |
Pre-tax Activity |
Tax Effect |
Net Activity |
Beginning Balance |
Net Activity |
Ending Balance |
||||||||||||||||||||||||||||
Unrealized holding losses on available-for-sale debt securities arising during the year |
$ |
( |
) | ( |
) | |||||||||||||||||||||||||||||
Reclassification adjustment for net losses on available-for-sale debt securities included in net income |
( |
) | ||||||||||||||||||||||||||||||||
Net unrealized losses on available-for-sale debt securities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Unrealized holding gains on cash flow hedge derivatives arising during the year |
( |
) | ||||||||||||||||||||||||||||||||
Reclassification adjustment for net losses on cash flow hedge derivatives included in net income |
||||||||||||||||||||||||||||||||||
Net unrealized gains on cash flow hedge derivatives |
( |
) | ( |
) | ||||||||||||||||||||||||||||||
Net actuarial gain arising during the year |
- |
|||||||||||||||||||||||||||||||||
Reclassification of amounts to net periodic benefit costs |
( |
) | ||||||||||||||||||||||||||||||||
Defined benefit pension plans, net |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Total |
$ |
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Total OCI |
Total AOCI |
|||||||||||||||||||||||||||||||||
2017 ($ in millions) |
Pre-tax Activity |
Tax Effect |
Net Activity |
Beginning Balance |
Net Activity |
Ending Balance |
||||||||||||||||||||||||||||
Unrealized holding gains on available-for-sale securities arising during the year |
$ |
|||||||||||||||||||||||||||||||||
Reclassification adjustment for net losses on available-for-sale securities included in net income |
||||||||||||||||||||||||||||||||||
Net unrealized gains on available-for-sale securities |
||||||||||||||||||||||||||||||||||
Unrealized holding losses on cash flow hedge derivatives arising during the year |
( |
) | ( |
) | ||||||||||||||||||||||||||||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income |
( |
) | ( |
) | ||||||||||||||||||||||||||||||
Net unrealized losses on cash flow hedge derivatives |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Net actuarial gain arising during the year |
- |
|||||||||||||||||||||||||||||||||
Reclassification of amounts to net periodic benefit costs |
( |
) | ||||||||||||||||||||||||||||||||
Defined benefit pension plans, net |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Total |
$ |
( |
) | |||||||||||||||||||||||||||||||
Components of AOCI: ($ in millions) |
Consolidated Statements of Income Caption |
2019 |
2018 |
2017 |
||||||||||||
Net unrealized gains (losses) on available-for-sale debt securities:(b) |
||||||||||||||||
Net gains (losses) included in net income |
Securities gains (losses), net |
$ |
( |
) | ( |
|||||||||||
Income before income taxes |
( |
) | ( |
|||||||||||||
Applicable income tax expense |
( |
) |
( |
|||||||||||||
Net income |
( |
) | ( |
|||||||||||||
Net unrealized gains (losses) on cash flow hedge derivatives: (b) |
||||||||||||||||
Interest rate contracts related to C&I loans |
Interest and fees on loans and leases |
( |
) | |||||||||||||
Income before income taxes |
( |
) | ||||||||||||||
Applicable income tax expense |
( |
) |
( |
|||||||||||||
Net income |
( |
) | ||||||||||||||
Net periodic benefit costs: (b) |
||||||||||||||||
Amortization of net actuarial loss |
Employee benefits expense (a) |
( |
) |
( |
) | ( |
||||||||||
Settlements |
Employee benefits expense (a) |
( |
) |
( |
) | ( |
||||||||||
Income before income taxes |
( |
) |
( |
) | ( |
|||||||||||
Applicable income tax expense |
||||||||||||||||
Net income |
( |
) |
( |
) | ( |
|||||||||||
Total reclassifications for the period |
Net income |
$ |
( |
) | ||||||||||||
(a) |
This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 23 for information on the computation of net periodic benefit cost. |
(b) |
Amounts in parentheses indicate reductions to net income. |
Common Stock |
Preferred Stock |
Treasury Stock |
||||||||||||||||||||||
($ in millions, except share data) |
Value |
Shares |
Value |
Shares |
Value |
Shares |
||||||||||||||||||
December 31, 2016 |
$ | $ | $ | ( |
||||||||||||||||||||
Shares acquired for treasury |
- |
- |
- |
- |
( |
|||||||||||||||||||
Impact of stock transactions under stock compensation plans, net |
- |
- |
- |
- |
( |
|||||||||||||||||||
Other |
- |
- |
- |
- |
( |
|||||||||||||||||||
December 31, 2017 |
$ | $ | $ | ( |
||||||||||||||||||||
Shares acquired for treasury |
- |
- |
- |
- |
( |
|||||||||||||||||||
Impact of stock transactions under stock compensation plans, net |
- |
- |
- |
- |
( |
|||||||||||||||||||
Other |
- |
- |
- |
- |
( |
|||||||||||||||||||
December 31, 2018 |
$ | $ | $ | ( |
||||||||||||||||||||
Shares acquired for treasury |
- |
- |
- |
- |
( |
|||||||||||||||||||
Issuance of preferred shares, Series K |
- |
- |
- |
- |
||||||||||||||||||||
Conversion of outstanding preferred stock issued by a Bancorp subsidiary |
- |
- |
- |
- |
||||||||||||||||||||
Impact of MB Financial, Inc. acquisition |
- |
- |
- |
- |
( |
|||||||||||||||||||
Impact of stock transactions under stock compensation plans, net |
- |
- |
- |
- |
( |
|||||||||||||||||||
Other |
- |
- |
- |
- |
||||||||||||||||||||
December 31, 2019 |
$ |
$ |
$ |
( |
||||||||||||||||||||
Shares Repurchased on |
Shares Received from |
Total Shares |
||||||||||||||||||
Repurchase Date |
Amount ($ in millions) |
Repurchase Date |
Forward Contract |
Repurchased |
Settlement Date |
|||||||||||||||
(a) |
||||||||||||||||||||
(b) |
- |
|||||||||||||||||||
(b) |
||||||||||||||||||||
(a) |
This accelerated share repurchase transaction consisted of two supplemental confirmations each with a notional amount of $ |
(b) |
This accelerated share repurchase transaction consisted of two supplemental confirmations each with a notional amount of $ |
2019 |
2018 |
2017 |
||||||||||
Expected life (in years) |
||||||||||||
Expected volatility |
% |
|||||||||||
Expected dividend yield |
||||||||||||
Risk-free interest rate |
||||||||||||
2019 |
2018 |
2017 |
||||||||||||||||||||||||||
SARs (in thousands, except per share data) |
Number of SARs |
Weighted- Average Grant Price Per Share |
Number of SARs |
Weighted- Average Grant Price Per Share |
Number of SARs |
Weighted- Average Grant Price Per Share |
||||||||||||||||||||||
Outstanding at January 1 |
$ |
$ | $ | |||||||||||||||||||||||||
Granted |
||||||||||||||||||||||||||||
Exercised |
( |
( |
( |
|||||||||||||||||||||||||
Forfeited or expired |
( |
( |
( |
|||||||||||||||||||||||||
Outstanding at December 31 |
$ |
$ | $ | |||||||||||||||||||||||||
Exercisable at December 31 |
$ |
$ | $ | |||||||||||||||||||||||||
Outstanding SARs |
Exercisable SARs |
|||||||||||||||||||||||||||
SARs (in thousands, except per share data) |
Number of SARs |
Weighted- Average Grant Price Per Share |
Weighted- Average Remaining Contractual Life (in years) |
Number of SARs |
Weighted- Average Grant Price Per Share |
Weighted- Average Remaining Contractual Life (in years) |
||||||||||||||||||||||
$10.01-$20.00 |
$ | $ | ||||||||||||||||||||||||||
$20.01-$30.00 |
||||||||||||||||||||||||||||
$30.01-$40.00 |
||||||||||||||||||||||||||||
All SARs |
$ | $ | ||||||||||||||||||||||||||
2019 |
2018 |
2017 |
||||||||||||||||||||||
RSAs (in thousands, except per share data) |
Shares |
Weighted-Average Grant-Date Fair Value Per Share |
Shares |
Weighted-Average Grant-Date Fair Value Per Share |
Shares |
Weighted-Average Grant-Date Fair Value Per Share |
||||||||||||||||||
Outstanding at January 1 |
$ |
$ | $ | |||||||||||||||||||||
Granted |
||||||||||||||||||||||||
Assumed |
||||||||||||||||||||||||
Released |
( |
) |
( |
) | ( |
) | ||||||||||||||||||
Forfeited |
( |
) |
( |
) | ( |
) | ||||||||||||||||||
Outstanding at December 31 |
$ |
$ | $ | |||||||||||||||||||||
2019 |
2018 |
2017 |
||||||||||||||||||||||
RSUs (in thousands, except per unit data) |
Units |
Weighted-Average Grant-Date Fair Value Per Unit |
Units |
Weighted-Average Grant-Date Fair Value Per Unit |
Units |
Weighted-Average Grant-Date Fair Value Per Unit |
||||||||||||||||||
Outstanding at January 1 |
$ |
$ | $ | |||||||||||||||||||||
Granted |
||||||||||||||||||||||||
Assumed |
||||||||||||||||||||||||
Released |
( |
) |
( |
) | ( |
) | ||||||||||||||||||
Forfeited |
( |
) |
( |
) | ( |
) | ||||||||||||||||||
Outstanding at December 31 |
$ |
$ | $ | |||||||||||||||||||||
Outstanding RSUs |
||||||||
RSUs (in thousands) |
Units |
Weighted-Average Remaining Contractual Life (in years) |
||||||
$15.01-$20.00 |
||||||||
$20.01-$25.00 |
||||||||
$25.01-$30.00 |
||||||||
$30.01-$35.00 |
||||||||
All RSUs |
||||||||
2019 |
2018 |
2017 |
||||||||||||||||||||||
Stock Options (in thousands, except per share data) |
Number of Options |
Weighted-Average Exercise Price Per Share |
Number of Options |
Weighted-Average Exercise Price Per Share |
Number of Options |
Weighted-Average Exercise Price Per Share |
||||||||||||||||||
Outstanding at January 1 |
$ |
$ | $ | |||||||||||||||||||||
Assumed |
||||||||||||||||||||||||
Exercised |
( |
( |
( |
|||||||||||||||||||||
Forfeited or expired |
( |
( |
( |
|||||||||||||||||||||
Outstanding at December 31 |
$ |
$ | $ | |||||||||||||||||||||
Exercisable at December 31 |
$ |
$ | $ | |||||||||||||||||||||
Outstanding Stock Options |
Exercisable Stock Options |
|||||||||||||||||||||||||||
Stock Options (in thousands, except per share data) |
Number of Options |
Weighted- Exercise Price Per Share |
Weighted- Average Contractual Life (in years) |
Number of Options |
Weighted- Exercise Price Per Share |
Weighted- Average Contractual Life (in years) |
||||||||||||||||||||||
Under $10.00 |
$ | $ | ||||||||||||||||||||||||||
$10.01-$20.00 |
||||||||||||||||||||||||||||
$20.01-$30.00 |
||||||||||||||||||||||||||||
All stock options |
$ | $ | ||||||||||||||||||||||||||
($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Other noninterest income: |
||||||||||||
Gain on sale of Worldpay, Inc. shares |
$ |
|||||||||||
Income from the TRA associated with Worldpay, Inc. |
||||||||||||
Operating lease income |
||||||||||||
Private equity investment income |
||||||||||||
BOLI income |
||||||||||||
Cardholder fees |
||||||||||||
Consumer loan and lease fees |
||||||||||||
Banking center income |
||||||||||||
Insurance income |
||||||||||||
Net gains (losses) on loan sales |
( |
|||||||||||
Equity method income from interest in Worldpay Holding, LLC |
||||||||||||
Loss on swap associated with the sale of Visa, Inc. Class B Shares |
( |
( |
( |
|||||||||
Net losses on disposition and impairment of bank premises and equipment |
( |
( |
||||||||||
Loss on sale of business |
( |
- |
- |
|||||||||
Gain related to Vantiv, Inc.’s acquisition of Worldpay Group plc. |
||||||||||||
Other, net |
||||||||||||
Total other noninterest income |
$ |
|||||||||||
Other noninterest expense: |
||||||||||||
Marketing |
$ |
|||||||||||
Loan and lease |
||||||||||||
Operating lease |
||||||||||||
Losses and adjustments |
||||||||||||
FDIC insurance and other taxes |
||||||||||||
Professional service fees |
||||||||||||
Data processing |
||||||||||||
Travel |
||||||||||||
Intangible amortization |
||||||||||||
Postal and courier |
||||||||||||
Donations |
||||||||||||
Recruitment and education |
||||||||||||
Supplies |
||||||||||||
Insurance |
||||||||||||
Loss (gain) on partnership investments |
( |
|||||||||||
Other, net |
||||||||||||
Total other noninterest expense |
$ |
|||||||||||
2019 |
2018 |
2017 |
||||||||||||||||||||||||||||||||||||
($ in millions, except per share data) |
Income |
Average Shares |
Per Share Amount |
Income |
Average Shares |
Per Share Amount |
Income |
Average Shares |
Per Share Amount |
|||||||||||||||||||||||||||||
Earnings Per Share: |
||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders |
$ |
|||||||||||||||||||||||||||||||||||||
Less: Income allocated to participating securities |
||||||||||||||||||||||||||||||||||||||
Net income allocated to common shareholders |
$ |
|||||||||||||||||||||||||||||||||||||
Earnings Per Diluted Share: |
||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders |
$ |
|||||||||||||||||||||||||||||||||||||
Effect of dilutive securities: |
||||||||||||||||||||||||||||||||||||||
Stock-based awards |
||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders plus assumed conversions |
||||||||||||||||||||||||||||||||||||||
Less: Income allocated to participating securities |
||||||||||||||||||||||||||||||||||||||
Net income allocated to common shareholders plus assumed conversions |
$ |
|||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using |
||||||||||||||||
December 31, 2019 ($ in millions) |
Level 1 (c) |
Level 2 (c) |
Level 3 |
Total Fair Value |
||||||||||||
Assets: |
||||||||||||||||
Available-for-sale debt and other securities: |
||||||||||||||||
U.S. Treasury and federal agency securities |
$ |
|||||||||||||||
Obligations of states and political subdivisions securities |
||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||
Agency residential mortgage-backed securities |
||||||||||||||||
Agency commercial mortgage-backed securities |
||||||||||||||||
Non-agency commercial mortgage-backed securities |
||||||||||||||||
Asset-backed securities and other debt securities |
||||||||||||||||
Available-for-sale debt and other securities(a) |
||||||||||||||||
Trading debt securities: |
||||||||||||||||
U.S. Treasury and federal agency securities |
||||||||||||||||
Obligations of states and political subdivisions securities |
||||||||||||||||
Agency residential mortgage-backed securities |
||||||||||||||||
Asset-backed securities and other debt securities |
||||||||||||||||
Trading debt securities |
||||||||||||||||
Equity securities |
||||||||||||||||
Residential mortgage loans held for sale |
||||||||||||||||
Residential mortgage loans (b) |
||||||||||||||||
Servicing rights |
||||||||||||||||
Derivative assets: |
||||||||||||||||
Interest rate contracts |
||||||||||||||||
Foreign exchange contracts |
||||||||||||||||
Commodity contracts |
||||||||||||||||
Derivative assets (d) |
||||||||||||||||
Total assets |
$ |
|||||||||||||||
Liabilities: |
||||||||||||||||
Derivative liabilities: |
||||||||||||||||
Interest rate contracts |
$ |
|||||||||||||||
Foreign exchange contracts |
||||||||||||||||
Equity contracts |
||||||||||||||||
Commodity contracts |
||||||||||||||||
Derivative liabilities (e) |
||||||||||||||||
Short positions (e) |
||||||||||||||||
Total liabilities |
$ |
|||||||||||||||
(a) |
Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ $ $ December 31, 2019 |
(b) |
Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. |
(c) |
During the year ended December 31, 2019 |
(d) |
Included in other assets in the Consolidated Balance Sheets. |
(e) |
Included in other liabilities in the Consolidated Balance Sheets. |
Fair Value Measurements Using |
||||||||||||||||
December 31, 2018 ($ in millions) |
Level 1 (c) |
Level 2 (c) |
Level 3 |
Total Fair Value |
||||||||||||
Assets: |
||||||||||||||||
Available-for-sale debt and other securities: |
||||||||||||||||
U.S. Treasury and federal agency securities |
$ | |||||||||||||||
Obligations of states and political subdivisions securities |
||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||
Agency residential mortgage-backed securities |
||||||||||||||||
Agency commercial mortgage-backed securities |
||||||||||||||||
Non-agency commercial mortgage-backed securities |
||||||||||||||||
Asset-backed securities and other debt securities |
||||||||||||||||
Available-for-sale debt and other securities(a) |
||||||||||||||||
Trading debt securities: |
||||||||||||||||
U.S. Treasury and federal agency securities |
||||||||||||||||
Obligations of states and political subdivisions securities |
||||||||||||||||
Agency residential mortgage-backed securities |
||||||||||||||||
Asset-backed securities and other debt securities |
||||||||||||||||
Trading debt securities |
||||||||||||||||
Equity securities |
||||||||||||||||
Residential mortgage loans held for sale |
||||||||||||||||
Residential mortgage loans (b) |
- |
|||||||||||||||
Commercial loans held for sale |
||||||||||||||||
Servicing rights |
||||||||||||||||
Derivative assets: |
||||||||||||||||
Interest rate contracts |
||||||||||||||||
Foreign exchange contracts |
||||||||||||||||
Commodity contracts |
||||||||||||||||
Derivative assets (d) |
||||||||||||||||
Total assets |
$ | |||||||||||||||
Liabilities: |
||||||||||||||||
Derivative liabilities: |
||||||||||||||||
Interest rate contracts |
$ | |||||||||||||||
Foreign exchange contracts |
||||||||||||||||
Equity contracts |
||||||||||||||||
Commodity contracts |
||||||||||||||||
Derivative liabilities (e) |
||||||||||||||||
Short positions (e) |
||||||||||||||||
Total liabilities |
$ | |||||||||||||||
(a) |
Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ |
(b) |
Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. |
(c) |
During the year ended December 31, 2018, no assets or liabilities were transferred between Level 1 and Level 2. |
(d) |
Included in other assets in the Consolidated Balance Sheets. |
(e) |
Included in other liabilities in the Consolidated Balance Sheets. |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) |
||||||||||||||||||||
Residential |
Interest Rate |
|||||||||||||||||||
Mortgage |
Servicing |
Derivatives, |
Equity |
Total |
||||||||||||||||
For the year ended December 31, 2019 ($ in millions) |
Loans |
Rights |
Net (a) |
Derivatives |
Fair Value |
|||||||||||||||
Balance, beginning of period |
$ |
( |
( |
|||||||||||||||||
Total (losses) gains (realized/unrealized): |
||||||||||||||||||||
Included in earnings |
( |
( |
( |
( |
||||||||||||||||
Purchases/originations |
( |
|||||||||||||||||||
Settlements |
( |
( |
( |
|||||||||||||||||
Transfers into Level 3 (b) |
||||||||||||||||||||
Balance, end of period |
$ |
( |
||||||||||||||||||
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2019 (c) |
$ |
( |
( |
( |
( |
|||||||||||||||
(a) |
Net interest rate derivatives include derivative assets and liabilities of $ and $ , respectively, as of December 31, 2019 . |
(b) |
Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. |
(c) |
Includes interest income and expense. |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) |
||||||||||||||||||||
Residential |
Interest Rate |
|||||||||||||||||||
Mortgage |
Servicing |
Derivatives, |
Equity |
Total |
||||||||||||||||
For the year ended December 31, 2018 ($ in millions) |
Loans |
Rights |
Net (a) |
Derivatives |
Fair Value |
|||||||||||||||
Balance, beginning of period |
$ | ( |
||||||||||||||||||
Total (losses) gains (realized/unrealized): |
||||||||||||||||||||
Included in earnings |
( |
( |
( |
( |
||||||||||||||||
Purchases/originations |
( |
|||||||||||||||||||
Settlements |
( |
( |
( |
|||||||||||||||||
Transfers into Level 3 (b) |
||||||||||||||||||||
Balance, end of period |
$ | ( |
( |
|||||||||||||||||
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2018 (c) |
$ | ( |
( |
( |
( |
|||||||||||||||
(a) |
Net interest rate derivatives include derivative assets and liabilities of $ |
(b) |
Includes certain residential mortgage loans held for sale that were transferred to held for investment. |
(c) |
Includes interest income and expense. |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) |
||||||||||||||||||||
Residential |
Interest Rate |
Equity |
||||||||||||||||||
Mortgage |
Servicing |
Derivatives, |
Derivatives, |
Total |
||||||||||||||||
For the year ended December 31, 2017 ($ in millions) |
Loans |
Rights |
Net (a) |
Net |
Fair Value |
|||||||||||||||
Balance, beginning of period |
$ | ( |
||||||||||||||||||
Total (losses) gains (realized/unrealized): |
||||||||||||||||||||
Included in earnings |
( |
( |
( |
|||||||||||||||||
Purchases/originations |
( |
|||||||||||||||||||
Settlements |
( |
( |
( |
|||||||||||||||||
Transfers into Level 3 (b) |
||||||||||||||||||||
Balance, end of period |
$ | ( |
||||||||||||||||||
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2017 (c) |
$ | ( |
( |
( |
||||||||||||||||
(a) |
Net interest rate derivatives include derivative assets and liabilities of $ |
(b) |
Includes certain residential mortgage loans held for sale that were transferred to held for investment. |
(c) |
Includes interest income and expense. |
($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Mortgage banking net revenue |
$ |
( |
) |
( |
) | ( |
||||||
Corporate banking revenue |
||||||||||||
Other noninterest income |
( |
) |
( |
) | ( |
|||||||
Total losses |
$ |
( |
) |
( |
) | ( |
||||||
($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Mortgage banking net revenue |
$ |
( |
) |
( |
||||||||
Corporate banking revenue |
||||||||||||
Other noninterest income |
( |
) |
( |
) | ( |
|||||||
Total losses |
$ |
( |
) |
( |
) | ( |
||||||
As of December 31, 2019 ($ in millions) |
||||||||||||||||
Financial Instrument |
Fair Value |
Valuation Technique |
Significant Unobservable Inputs |
Ranges of Inputs |
Weighted- Average |
|||||||||||
Residential mortgage loans |
$ |
Loss rate model |
Interest rate risk factor |
( - |
( |
|||||||||||
Credit risk factor |
||||||||||||||||
Servicing rights |
DCF |
Prepayment speed |
(Fixed) (Adjustable) |
|||||||||||||
OAS (bps) |
- |
(Fixed) (Adjustable) |
||||||||||||||
IRLCs, net |
DCF |
Loan closing rates |
||||||||||||||
Swap associated with the sale of Visa, Inc. Class B Shares |
( |
DCF |
Timing of the resolution of the Covered Litigation |
- |
||||||||||||
As of December 31, 2018 ($ in millions) |
||||||||||||||||
Financial Instrument |
Fair Value |
Valuation Technique |
Significant Unobservable Inputs |
Ranges of Inputs |
Weighted- Average |
|||||||||||
Residential mortgage loans |
$ |
Loss rate model |
Interest rate risk factor |
( - |
||||||||||||
Credit risk factor |
||||||||||||||||
Servicing rights |
DCF |
Prepayment speed |
(Fixed) (Adjustable) |
|||||||||||||
OAS (bps) |
- |
(Fixed) (Adjustable) |
||||||||||||||
IRLCs, net |
DCF |
Loan closing rates |
||||||||||||||
Swap associated with the sale of Visa, Inc. Class B Shares |
( |
DCF |
Timing of the resolution of the Covered Litigation |
|||||||||||||
Fair Value Measurements Using |
Total (Losses) Gains |
|||||||||||||||||||||
As of December 31, 2019 ($ in millions) |
Level 1 |
Level 2 |
Level 3 |
Total |
For the year ended December 31, 2019 |
|||||||||||||||||
Commercial and industrial loans |
$ |
( |
||||||||||||||||||||
Commercial mortgage loans |
||||||||||||||||||||||
Commercial leases |
( |
|||||||||||||||||||||
OREO |
( |
|||||||||||||||||||||
Bank premises and equipment |
( |
|||||||||||||||||||||
Operating lease equipment |
( |
|||||||||||||||||||||
Private equity investments |
||||||||||||||||||||||
Total |
$ |
( |
||||||||||||||||||||
Fair Value Measurements Using |
Total (Losses) Gains |
|||||||||||||||||||||
As of December 31, 2018 ($ in millions) |
Level 1 |
Level 2 |
Level 3 |
Total |
For the year ended December 31, 2018 |
|||||||||||||||||
Commercial loans held for sale |
$ | ( |
||||||||||||||||||||
Commercial and industrial loans |
( |
|||||||||||||||||||||
Commercial mortgage loans |
||||||||||||||||||||||
Commercial leases |
( |
|||||||||||||||||||||
OREO |
( |
|||||||||||||||||||||
Bank premises and equipment |
( |
|||||||||||||||||||||
Operating lease equipment |
( |
|||||||||||||||||||||
Private equity investments |
||||||||||||||||||||||
Other assets |
( |
|||||||||||||||||||||
Total |
$ | ( |
||||||||||||||||||||
As of December 31, 2019 ($ in millions) |
||||||||||||||||||||
Financial Instrument |
Fair Value |
Valuation Technique |
Significant Unobservable Inputs |
Ranges of Inputs |
Weighted-Average |
|||||||||||||||
Commercial and industrial loans |
$ |
Appraised value |
Collateral value |
NM |
NM |
|||||||||||||||
Commercial mortgage loans |
Appraised value |
Collateral value |
NM |
NM |
||||||||||||||||
Commercial leases |
Appraised value |
Collateral value |
NM |
NM |
||||||||||||||||
OREO |
Appraised value |
Appraised value |
NM |
NM |
||||||||||||||||
Bank premises and equipment |
Appraised value |
Appraised value |
NM |
NM |
||||||||||||||||
Operating lease equipment |
Appraised value |
Appraised value |
NM |
NM |
||||||||||||||||
Private equity investments |
Comparable company analysis |
Market comparable transactions |
NM |
NM |
||||||||||||||||
As of December 31, 2018 ($ in millions) |
||||||||||||||||||||
Financial Instrument |
Fair Value |
Valuation Technique |
Significant Unobservable Inputs |
Ranges of Inputs |
Weighted-Average |
|||||||||||||||
Commercial loans held for sale |
$ | Appraised value |
Appraised value Costs to sell |
NM NM |
NM |
|||||||||||||||
Commercial and industrial loans |
Appraised value |
Collateral value |
NM |
NM |
||||||||||||||||
Commercial mortgage loans |
Appraised value |
Collateral value |
NM |
NM |
||||||||||||||||
Commercial leases |
Appraised value |
Collateral value |
NM |
NM |
||||||||||||||||
OREO |
Appraised value |
Appraised value |
NM |
NM |
||||||||||||||||
Bank premises and equipment |
Appraised value |
Appraised value |
NM |
NM |
||||||||||||||||
Operating lease equipment |
Appraised value |
Appraised value |
NM |
NM |
||||||||||||||||
Private equity investments |
- |
Liquidity discount applied to fund’s NAV |
Liquidity discount |
- |
||||||||||||||||
Comparable company analysis |
Market comparable transactions |
NM |
NM |
|||||||||||||||||
Other assets |
Appraised value |
Appraised value |
NM |
NM |
||||||||||||||||
($ in millions) |
Aggregate Fair Value |
Aggregate Unpaid Principal Balance |
Difference | |||||||
December 31, 2019 |
||||||||||
Residential mortgage loans measured at fair value |
$ |
|||||||||
Past due loans of 90 days or more |
||||||||||
Nonaccrual loans |
||||||||||
December 31, 2018 |
||||||||||
Residential mortgage loans measured at fair value |
$ | |||||||||
Past due loans of 90 days or more |
||||||||||
Nonaccrual loans |
||||||||||
Commercial loans measured at fair value |
||||||||||
Net Carrying |
Fair Value Measurements Using |
Total |
||||||||||||||||||
As of December 31, 2019 ($ in millions) |
Amount |
Level 1 |
Level 2 |
Level 3 |
Fair Value |
|||||||||||||||
Financial assets: |
||||||||||||||||||||
Cash and due from banks |
$ |
|||||||||||||||||||
Other short-term investments |
||||||||||||||||||||
Other securities |
||||||||||||||||||||
Held-to-maturity securities |
||||||||||||||||||||
Loans and leases held for sale |
||||||||||||||||||||
Portfolio loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
||||||||||||||||||||
Commercial mortgage loans |
||||||||||||||||||||
Commercial construction loans |
||||||||||||||||||||
Commercial leases |
||||||||||||||||||||
Residential mortgage loans |
||||||||||||||||||||
Home equity |
||||||||||||||||||||
Indirect secured consumer loans |
||||||||||||||||||||
Credit card |
||||||||||||||||||||
Other consumer loans |
||||||||||||||||||||
Unallocated ALLL |
( |
) |
||||||||||||||||||
Total portfolio loans and leases, net |
$ |
|||||||||||||||||||
Financial liabilities: |
||||||||||||||||||||
Deposits |
$ |
|||||||||||||||||||
Federal funds purchased |
||||||||||||||||||||
Other short-term borrowings |
||||||||||||||||||||
Long-term debt |
||||||||||||||||||||
Net Carrying |
Fair Value Measurements Using |
Total |
||||||||||||||||||
As of December 31, 2018 ($ in millions) |
Amount |
Level 1 |
Level 2 |
Level 3 |
Fair Value |
|||||||||||||||
Financial assets: |
||||||||||||||||||||
Cash and due from banks |
$ | |||||||||||||||||||
Other short-term investments |
||||||||||||||||||||
Other securities |
||||||||||||||||||||
Held-to-maturity securities |
||||||||||||||||||||
Loans and leases held for sale |
||||||||||||||||||||
Portfolio loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
||||||||||||||||||||
Commercial mortgage loans |
||||||||||||||||||||
Commercial construction loans |
||||||||||||||||||||
Commercial leases |
||||||||||||||||||||
Residential mortgage loans |
||||||||||||||||||||
Home equity |
||||||||||||||||||||
Indirect secured consumer loans |
||||||||||||||||||||
Credit card |
||||||||||||||||||||
Other consumer loans |
||||||||||||||||||||
Unallocated ALLL |
( |
) | ||||||||||||||||||
Total portfolio loans and leases, net |
$ | |||||||||||||||||||
Financial liabilities: |
||||||||||||||||||||
Deposits |
$ | |||||||||||||||||||
Federal funds purchased |
||||||||||||||||||||
Other short-term borrowings |
||||||||||||||||||||
Long-term debt |
||||||||||||||||||||
Minimum |
Well-Capitalized |
|||||||
CET1 capital: |
||||||||
Fifth Third Bancorp |
% | N/A |
||||||
Fifth Third Bank, National Association |
||||||||
Tier I risk-based capital: |
||||||||
Fifth Third Bancorp |
||||||||
Fifth Third Bank, National Association |
||||||||
Total risk-based capital: |
||||||||
Fifth Third Bancorp |
||||||||
Fifth Third Bank, National Association |
||||||||
Tier I leverage: |
||||||||
Fifth Third Bancorp |
N/A |
|||||||
Fifth Third Bank, National Association |
||||||||
2019 |
2018 |
|||||||||||||||
($ in millions) |
Amount |
Ratio |
Amount |
Ratio |
||||||||||||
CET1 capital: |
||||||||||||||||
Fifth Third Bancorp |
$ |
$ | ||||||||||||||
Fifth Third Bank, National Association |
||||||||||||||||
Tier I risk-based capital: |
||||||||||||||||
Fifth Third Bancorp |
||||||||||||||||
Fifth Third Bank, National Association |
||||||||||||||||
Total risk-based capital: |
||||||||||||||||
Fifth Third Bancorp |
||||||||||||||||
Fifth Third Bank, National Association |
||||||||||||||||
Tier I leverage: (a) |
||||||||||||||||
Fifth Third Bancorp |
||||||||||||||||
Fifth Third Bank, National Association |
||||||||||||||||
(a) |
Quarterly average assets are a component of the Tier I leverage ratio and for this purpose do not include goodwill and any other intangible assets and other investments that the Banking Agencies determines should be deducted from Tier I capital. |
Condensed Statements of Income (Parent Company Only) |
||||||||||||
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Income |
||||||||||||
Dividends from subsidiaries: |
||||||||||||
Consolidated nonbank subsidiaries (a) |
$ |
|||||||||||
Securities gains, net |
||||||||||||
Interest on loans to subsidiaries |
||||||||||||
Total income |
||||||||||||
Expenses |
||||||||||||
Interest |
||||||||||||
Other |
||||||||||||
Total expenses |
||||||||||||
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries |
||||||||||||
Applicable income tax benefit |
( |
) |
( |
) | ( |
|||||||
Income Before Change in Undistributed Earnings of Subsidiaries |
||||||||||||
Equity in undistributed earnings |
( |
|||||||||||
Net Income Attributable to Bancorp |
$ |
|||||||||||
Other Comprehensive Income |
||||||||||||
Comprehensive Income Attributable to Bancorp |
$ |
|||||||||||
a) |
The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $ December 31, 2019 $ December 31, 2019 |
Condensed Balance Sheets (Parent Company Only) |
||||||||||||
As of December 31 ($ in millions) |
2019 |
2018 |
||||||||||
Assets |
||||||||||||
Cash |
$ |
|||||||||||
Short-term investments |
||||||||||||
Equity securities |
||||||||||||
Loans to subsidiaries: |
||||||||||||
Nonbank subsidiaries |
||||||||||||
Total loans to subsidiaries |
||||||||||||
Investment in subsidiaries: |
||||||||||||
Nonbank subsidiaries |
||||||||||||
Total investment in subsidiaries |
||||||||||||
Goodwill |
||||||||||||
Other assets |
||||||||||||
Total Assets |
$ |
|||||||||||
Liabilities |
||||||||||||
Other short-term borrowings |
$ |
|||||||||||
Accrued expenses and other liabilities |
||||||||||||
Long-term debt (external) |
||||||||||||
Total Liabilities |
$ |
|||||||||||
Equity |
||||||||||||
Common stock |
$ |
|||||||||||
Preferred stock |
||||||||||||
Capital surplus |
||||||||||||
Retained earnings |
||||||||||||
Accumulated other comprehensive income (loss) |
( |
|||||||||||
Treasury stock |
( |
( |
||||||||||
Noncontrolling interests |
||||||||||||
Total Equity |
||||||||||||
Total Liabilities and Equity |
$ |
|||||||||||
Condensed Statements of Cash Flows (Parent Company Only) |
||||||||||||
For the years ended December 31 ($ in millions) |
2019 |
2018 |
2017 |
|||||||||
Operating Activities |
||||||||||||
Net income |
$ | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||
(Benefit from) provision for deferred income taxes |
( |
|||||||||||
Securities gains, net |
( |
|||||||||||
Equity in undistributed earnings |
( |
( |
||||||||||
Net change in: |
||||||||||||
Equity securities |
( |
|||||||||||
Other assets |
( |
|||||||||||
Accrued expenses and other liabilities |
( |
( |
||||||||||
Net Cash Provided by Operating Activities |
||||||||||||
Investing Activities |
||||||||||||
Net change in: |
||||||||||||
Short-term investments |
( |
( |
( |
|||||||||
Loans to subsidiaries |
||||||||||||
Net cash paid on acquisition |
( |
|||||||||||
Net Cash (Used in) Provided by Investing Activities |
( |
( |
||||||||||
Financing Activities |
||||||||||||
Net change in other short-term borrowings |
( |
( |
||||||||||
Dividends paid on common stock |
( |
( |
( |
|||||||||
Dividends paid on preferred stock |
( |
( |
( |
|||||||||
Proceeds from issuance of long-term debt |
||||||||||||
Repayment of long-term debt |
( |
( |
( |
|||||||||
Issuance of preferred stock |
||||||||||||
Repurchase of treasury stock and related forward contract |
( |
( |
( |
|||||||||
Other, net |
( |
( |
( |
|||||||||
Net Cash Used in Financing Activities |
( |
( |
( |
|||||||||
(Decrease) Increase in Cash |
( |
( |
||||||||||
Cash at Beginning of Period |
||||||||||||
Cash at End of Period |
$ | |||||||||||
2019 ($ in millions) |
Commercial Banking |
Branch Banking |
Consumer Lending |
Wealth and Asset Management |
General Corporate and Other |
Eliminations |
Total |
|||||||||||||||||||||
Net interest income |
$ |
( |
) |
|||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||
Net interest income after provision for credit losses |
( |
) |
||||||||||||||||||||||||||
Noninterest income: |
||||||||||||||||||||||||||||
Corporate banking revenue |
(c) |
|||||||||||||||||||||||||||
Service charges on deposits |
( |
) |
||||||||||||||||||||||||||
Wealth and asset management revenue |
( (a) |
|||||||||||||||||||||||||||
Card and processing revenue |
||||||||||||||||||||||||||||
Mortgage banking net revenue |
||||||||||||||||||||||||||||
Other noninterest income (b) |
||||||||||||||||||||||||||||
Securities gains, net |
||||||||||||||||||||||||||||
Securities gains, net - non-qualifying hedges on MSRs |
||||||||||||||||||||||||||||
Total noninterest income |
( |
) |
||||||||||||||||||||||||||
Noninterest expense: |
||||||||||||||||||||||||||||
Salaries, wages and incentives |
||||||||||||||||||||||||||||
Employee benefits |
||||||||||||||||||||||||||||
Technology and communications |
||||||||||||||||||||||||||||
Net occupancy expense (e) |
||||||||||||||||||||||||||||
Card and processing expense |
( |
) |
||||||||||||||||||||||||||
Equipment expense |
||||||||||||||||||||||||||||
Other noninterest expense |
( |
) |
( |
) |
||||||||||||||||||||||||
Total noninterest expense |
( |
) |
||||||||||||||||||||||||||
Income before income taxes |
||||||||||||||||||||||||||||
Applicable income tax expense |
||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||
Total goodwill |
$ |
|||||||||||||||||||||||||||
Total assets |
$ |
( (d) |
||||||||||||||||||||||||||
(a) |
Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Consolidated Statements of Income. |
(b) |
Includes impairment charges of $ for branches and land. For more information, refer to Note 8 and Note 29. |
(c) |
Includes impairment charges of $ for operating lease equipment. For more information, refer to Note 9 and Note 29. |
(d) |
Includes bank premises and equipment of $ classified as held for sale. For more information, refer to Note 8. |
(e) |
Includes impairment losses and termination charges of $ |
2018 ($ in millions) |
Commercial Banking |
Branch Banking |
Consumer Lending |
Wealth and Asset Management |
General Corporate and Other |
Eliminations |
Total |
|||||||||||||||||||||
Net interest income |
$ | ( |
) | |||||||||||||||||||||||||
Provision for (benefit from) credit losses |
( |
) | ||||||||||||||||||||||||||
Net interest income after provision for credit losses |
( |
) | ||||||||||||||||||||||||||
Noninterest income: |
||||||||||||||||||||||||||||
Corporate banking revenue |
(c) |
( |
) | |||||||||||||||||||||||||
Service charges on deposits |
||||||||||||||||||||||||||||
Wealth and asset management revenue |
( (a) |
|||||||||||||||||||||||||||
Card and processing revenue |
||||||||||||||||||||||||||||
Mortgage banking net revenue |
||||||||||||||||||||||||||||
Other noninterest income (b) |
||||||||||||||||||||||||||||
Securities losses, net |
( |
) | ( |
|||||||||||||||||||||||||
Securities losses, net - non-qualifying hedges on MSRs |
( |
) | ( |
|||||||||||||||||||||||||
Total noninterest income |
( |
) | ||||||||||||||||||||||||||
Noninterest expense: |
||||||||||||||||||||||||||||
Salaries, wages and incentives |
||||||||||||||||||||||||||||
Employee benefits |
||||||||||||||||||||||||||||
Technology and communications |
||||||||||||||||||||||||||||
Net occupancy expense |
||||||||||||||||||||||||||||
Card and processing expense |
( |
) | ||||||||||||||||||||||||||
Equipment expense |
||||||||||||||||||||||||||||
Other noninterest expense |
( |
) | ( |
) | ||||||||||||||||||||||||
Total noninterest expense |
( |
) | ||||||||||||||||||||||||||
Income (loss) before income taxes |
( |
) | ||||||||||||||||||||||||||
Applicable income tax expense (benefit) |
( |
) | ||||||||||||||||||||||||||
Net income (loss) |
( |
) | ||||||||||||||||||||||||||
Total goodwill |
$ | |||||||||||||||||||||||||||
Total assets |
$ | ( (d) |
||||||||||||||||||||||||||
(a) |
Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Consolidated Statements of Income. |
(b) |
Includes impairment charges of $ |
(c) |
Includes impairment charges of $ |
(d) |
Includes bank premises and equipment of $ |
2017 ($ in millions) |
Commercial Banking |
Branch Banking |
Consumer Lending |
Wealth and Asset Management |
General Corporate and Other |
Eliminations |
Total |
|||||||||||||||||||||
Net interest income |
$ | ( |
) | |||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||
Net interest income after provision for credit losses |
( |
) | ||||||||||||||||||||||||||
Noninterest income: |
||||||||||||||||||||||||||||
Corporate banking revenue |
(c) |
( |
) | |||||||||||||||||||||||||
Service charges on deposits |
||||||||||||||||||||||||||||
Wealth and asset management revenue |
( (a) |
|||||||||||||||||||||||||||
Card and processing revenue |
||||||||||||||||||||||||||||
Mortgage banking net revenue |
||||||||||||||||||||||||||||
Other noninterest income (b) |
||||||||||||||||||||||||||||
Securities gains, net |
||||||||||||||||||||||||||||
Securities gains, net - non-qualifying hedges on MSRs |
||||||||||||||||||||||||||||
Total noninterest income |
( |
) | ||||||||||||||||||||||||||
Noninterest expense: |
||||||||||||||||||||||||||||
Salaries, wages and incentives |
||||||||||||||||||||||||||||
Employee benefits |
||||||||||||||||||||||||||||
Technology and communications |
||||||||||||||||||||||||||||
Net occupancy expense |
||||||||||||||||||||||||||||
Card and processing expense |
( |
) | ||||||||||||||||||||||||||
Equipment expense |
||||||||||||||||||||||||||||
Other noninterest expense |
( |
) | ( |
) | ||||||||||||||||||||||||
Total noninterest expense |
( |
) | ||||||||||||||||||||||||||
Income before income taxes |
||||||||||||||||||||||||||||
Applicable income tax expense |
||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||
Total goodwill |
$ | |||||||||||||||||||||||||||
Total assets |
$ | ( (d) |
||||||||||||||||||||||||||
(a) |
Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Consolidated Statements of Income. |
(b) |
Includes impairment charges of $ |
(c) |
Includes impairment charges of $ |
(d) |
Includes bank premises and equipment of $ |
/s/ Greg D. Carmichael |
/s/ Tayfun Tuzun | |||
Greg D. Carmichael |
Tayfun Tuzun | |||
Chairman, President and Chief Executive Officer |
Executive Vice President and Chief Financial Officer | |||
March 2, 2020 |
March 2, 2020 |
AVERAGE ASSETS FOR THE YEARS ENDED DECEMBER 31 ($ IN MILLIONS) |
||||||||||||||||||||||||||||||||||
Interest-Earning Assets |
||||||||||||||||||||||||||||||||||
Year |
Loans and Leases |
Federal Funds Sold (a) |
Interest-Bearing Deposits in Banks (a) |
Investment Securities |
Total |
Cash and Due from Banks |
Other Assets |
Total Average Assets |
||||||||||||||||||||||||||
2019 |
$ |
107,794 |
1 |
2,139 |
35,470 |
145,404 |
2,748 |
16,903 |
163,936 |
|||||||||||||||||||||||||
2018 |
93,876 |
1 |
1,475 |
33,553 |
128,905 |
2,200 |
12,203 |
142,183 |
||||||||||||||||||||||||||
2017 |
92,731 |
1 |
1,389 |
32,172 |
126,293 |
2,224 |
13,236 |
140,527 |
||||||||||||||||||||||||||
2016 |
94,320 |
1 |
1,865 |
30,099 |
126,285 |
2,303 |
14,870 |
142,173 |
||||||||||||||||||||||||||
2015 |
93,339 |
1 |
3,257 |
26,987 |
123,584 |
2,608 |
15,100 |
139,999 |
||||||||||||||||||||||||||
2014 |
91,127 |
- |
3,043 |
21,823 |
115,993 |
2,892 |
14,443 |
131,847 |
||||||||||||||||||||||||||
2013 |
89,093 |
1 |
2,416 |
16,444 |
107,954 |
2,482 |
15,025 |
123,704 |
||||||||||||||||||||||||||
2012 |
84,822 |
2 |
1,493 |
15,319 |
101,636 |
2,355 |
15,643 |
117,562 |
||||||||||||||||||||||||||
2011 |
80,214 |
1 |
2,030 |
15,437 |
97,682 |
2,352 |
15,259 |
112,590 |
||||||||||||||||||||||||||
2010 |
79,232 |
11 |
3,317 |
16,371 |
98,931 |
2,245 |
14,758 |
112,351 |
||||||||||||||||||||||||||
AVERAGE DEPOSITS AND SHORT-TERM BORROWINGS FOR THE YEARS ENDED DECEMBER 31 ($ IN MILLIONS) |
||||||||||||||||||||||||||||||||||||||||||
Deposits |
||||||||||||||||||||||||||||||||||||||||||
Year |
Demand |
Interest Checking |
Savings |
Money Market |
Other Time |
Certificates $100,000 and Over |
Foreign Office and Other |
Total |
Short-Term Borrowings (b) |
Total |
||||||||||||||||||||||||||||||||
2019 |
$ |
34,343 |
36,658 |
14,041 |
25,879 |
5,470 |
4,504 |
474 |
121,369 |
2,313 |
123,682 |
|||||||||||||||||||||||||||||||
2018 |
32,634 |
29,818 |
13,330 |
21,769 |
4,106 |
2,426 |
839 |
104,922 |
3,120 |
108,042 |
||||||||||||||||||||||||||||||||
2017 |
35,093 |
26,382 |
13,958 |
20,231 |
3,771 |
2,564 |
665 |
102,664 |
3,715 |
106,379 |
||||||||||||||||||||||||||||||||
2016 |
35,862 |
25,143 |
14,346 |
19,523 |
4,010 |
2,735 |
830 |
102,449 |
3,351 |
105,800 |
||||||||||||||||||||||||||||||||
2015 |
35,164 |
26,160 |
14,951 |
18,152 |
4,051 |
2,869 |
874 |
102,221 |
2,641 |
104,862 |
||||||||||||||||||||||||||||||||
2014 |
31,755 |
25,382 |
16,080 |
14,670 |
3,762 |
3,929 |
1,828 |
97,406 |
2,331 |
99,737 |
||||||||||||||||||||||||||||||||
2013 |
29,925 |
23,582 |
18,440 |
9,467 |
3,760 |
6,339 |
1,518 |
93,031 |
3,527 |
96,558 |
||||||||||||||||||||||||||||||||
2012 |
27,196 |
23,096 |
21,393 |
4,903 |
4,306 |
3,102 |
1,555 |
85,551 |
4,806 |
90,357 |
||||||||||||||||||||||||||||||||
2011 |
23,389 |
18,707 |
21,652 |
5,154 |
6,260 |
3,656 |
3,497 |
82,315 |
3,122 |
85,437 |
||||||||||||||||||||||||||||||||
2010 |
19,669 |
18,218 |
19,612 |
4,808 |
10,526 |
6,083 |
3,361 |
82,277 |
1,926 |
84,203 |
INCOME FOR THE YEARS ENDED DECEMBER 31 ($ IN MILLIONS, EXCEPT PER SHARE DATA) |
||||||||||||||||||||||||||||||||||
Per Share |
||||||||||||||||||||||||||||||||||
Year |
Interest Income |
Interest Expense |
Noninterest Income |
Noninterest Expense |
Net Income Available to Common Shareholders |
Earnings |
Diluted Earnings |
Dividends Declared |
||||||||||||||||||||||||||
2019 |
$ |
6,254 |
1,457 |
3,536 |
4,660 |
2,419 |
3.38 |
3.33 |
0.94 |
|||||||||||||||||||||||||
2018 |
5,183 |
1,043 |
2,790 |
3,958 |
2,118 |
3.11 |
3.06 |
0.74 |
||||||||||||||||||||||||||
2017 |
4,489 |
691 |
3,224 |
3,782 |
2,105 |
2.86 |
2.81 |
0.60 |
||||||||||||||||||||||||||
2016 |
4,193 |
578 |
2,696 |
3,737 |
1,472 |
1.92 |
1.91 |
0.53 |
||||||||||||||||||||||||||
2015 |
4,028 |
495 |
3,003 |
3,643 |
1,610 |
2.00 |
1.97 |
0.52 |
||||||||||||||||||||||||||
2014 |
4,030 |
451 |
2,473 |
3,619 |
1,384 |
1.65 |
1.63 |
0.51 |
||||||||||||||||||||||||||
2013 |
3,973 |
412 |
3,227 |
3,978 |
1,799 |
2.05 |
2.02 |
0.47 |
||||||||||||||||||||||||||
2012 |
4,107 |
512 |
2,999 |
4,083 |
1,541 |
1.69 |
1.66 |
0.36 |
||||||||||||||||||||||||||
2011 |
4,218 |
661 |
2,455 |
3,804 |
1,094 |
1.20 |
1.18 |
0.28 |
||||||||||||||||||||||||||
2010 |
4,489 |
885 |
2,729 |
3,879 |
503 |
0.63 |
0.63 |
0.04 |
||||||||||||||||||||||||||
MISCELLANEOUS AT DECEMBER 31 ($ IN MILLIONS, EXCEPT PER SHARE DATA) |
||||||||||||||||||||||||||||||||||||||||||
Bancorp Shareholders’ Equity |
||||||||||||||||||||||||||||||||||||||||||
Year |
Common Shares Outstanding |
Common Stock |
Preferred Stock |
Capital Surplus |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total |
Book Value Per Share |
Allowance for Loan and Lease Losses |
||||||||||||||||||||||||||||||||
2019 |
708,915,629 |
$ |
2,051 |
1,770 |
3,599 |
18,315 |
1,192 |
(5,724) |
21,203 |
27.41 |
1,202 |
|||||||||||||||||||||||||||||||
2018 |
646,630,857 |
2,051 |
1,331 |
2,873 |
16,578 |
(112) |
(6,471) |
16,250 |
23.07 |
1,103 |
||||||||||||||||||||||||||||||||
2017 |
693,804,893 |
2,051 |
1,331 |
2,790 |
14,957 |
73 |
(5,002) |
16,200 |
21.43 |
1,196 |
||||||||||||||||||||||||||||||||
2016 |
750,479,299 |
2,051 |
1,331 |
2,756 |
13,290 |
59 |
(3,433) |
16,054 |
19.62 |
1,253 |
||||||||||||||||||||||||||||||||
2015 |
785,080,314 |
2,051 |
1,331 |
2,666 |
12,224 |
197 |
(2,764) |
15,705 |
18.31 |
1,272 |
||||||||||||||||||||||||||||||||
2014 |
824,046,952 |
2,051 |
1,331 |
2,646 |
11,034 |
429 |
(1,972) |
15,519 |
17.22 |
1,322 |
||||||||||||||||||||||||||||||||
2013 |
855,305,745 |
2,051 |
1,034 |
2,561 |
10,156 |
82 |
(1,295) |
14,589 |
15.85 |
1,582 |
||||||||||||||||||||||||||||||||
2012 |
882,152,057 |
2,051 |
398 |
2,758 |
8,768 |
375 |
(634) |
13,716 |
15.10 |
1,854 |
||||||||||||||||||||||||||||||||
2011 |
919,804,436 |
2,051 |
398 |
2,792 |
7,554 |
470 |
(64) |
13,201 |
13.92 |
2,255 |
||||||||||||||||||||||||||||||||
2010 |
796,272,522 |
1,779 |
3,654 |
1,715 |
6,719 |
314 |
(130) |
14,051 |
13.06 |
3,004 |
||||||||||||||||||||||||||||||||
(a) |
Federal funds sold and interest-bearing deposits in banks are combined in other short-term investments in the Consolidated Financial Statements. |
(b) |
Includes federal funds purchased and other short-term investments. |