Business Segments (Tables)

3 Months Ended

Mar. 31, 2020

Business Segments

Results of Operations and Assets by Segment

The following tables present the results of operations and assets by business segment for the three months ended:

March 31, 2020 ($ in millions)	Commercial Banking			Branch Banking		Consumer Lending		Wealth and Asset Management		General Corporate and Other			Eliminations			Total
Net interest income	$	507			505		89		37		91			-			1,229
Provision for credit losses		45			62		13		1		519			-			640
Net interest income after provision for credit losses		462			443		76		36		(428	)		-			589
Noninterest income:
Service charges on deposits		84			65		-		-		(1	)		-			148
Wealth and asset management revenue		1			44		-		129		-			(40) (a)			134
Commercial banking revenue		124			1		-		-		(1	)		-			124
Mortgage banking net revenue		-			2		117		1		-			-			120
Card and processing revenue		16			67		-		-		3			-			86
Leasing business revenue		73 (c)			-		-		-		-			-			73
Other noninterest income(b)		(11	)		19		4		5		(10	)		-			7
Securities losses, net		-			-		-		-		(24	)		-			(24	)
Securities gains, net - non-qualifying hedges on MSRs		-			-		3		-		-			-			3
Total noninterest income		287			198		124		135		(33	)		(40	)		671
Noninterest expense:
Compensation and benefits		150			168		51		61		217			-			647
Technology and communications		3			1		2		-		87			-			93
Net occupancy expense(e)		7			44		2		3		26			-			82
Leasing business expense		35			-		-		-		-			-			35
Equipment expense		7			11		-		-		14			-			32
Marketing expense		2			13		1		1		14			-			31
Card and processing expense		2			30		-		-		(1	)		-			31
Other noninterest expense		274			221		66		78		(350	)		(40	)		249
Total noninterest expense		480			488		122		143		7			(40	)		1,200
Income (loss) before income taxes		269			153		78		28		(468	)		-			60
Applicable income tax expense (benefit)		45			32		17		6		(86	)		-			14
Net income (loss)		224			121		61		22		(382	)		-			46
Total goodwill	$	1,961			2,047		-		253		-			-			4,261
Total assets	$	84,576			70,283		27,132		11,653		(8,253) (d)			-			185,391

(a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income.

(b) Includes impairment charges of $3 for branches and land. For more information refer to Note 8 and Note 23.

(c) Includes impairment charges of $3 for operating lease equipment. For more information refer to Note 9 and Note 23.

(d) Includes bank premises and equipment of $36 classified as held for sale. For more information refer to Note 8.

(e) Includes impairment losses and termination charges of $2 for ROU assets related to certain operating leases. For more information refer to Note 10.

March 31, 2019 ($ in millions)	Commercial Banking		Branch Banking		Consumer Lending		Wealth and Asset Management		General Corporate and Other			Eliminations			Total
Net interest income	$	509		584		63		49		(123	)		-			1,082
Provision for credit losses		20		52		13		-		5			-			90
Net interest income after provision for credit losses		489		532		50		49		(128	)		-			992
Noninterest income:(e)
Service charges on deposits		66		64		-		-		1			-			131
Wealth and asset management revenue		1		36		-		108		-			(33)(a)			112
Commercial banking revenue		103		1		-		-		(1	)		-			103
Mortgage banking net revenue		-		1		55		-		-			-			56
Card and processing revenue		15		63		-		1		-			-			79
Leasing business revenue		32		-		-		-		-			-			32
Other noninterest income(b)		10		18		3		5		533			-			569
Securities gains, net		-		-		-		-		16			-			16
Securities gains, net - non-qualifying hedges on MSRs		-		-		3		-		-			-			3
Total noninterest income		227		183		61		114		549			(33	)		1,101
Noninterest expense:(e)
Compensation and benefits		109		143		45		56		257			-			610
Technology and communications		2		1		2		-		78			-			83
Net occupancy expense		7		43		2		3		20			-			75
Leasing business expense		19		-		-		-		-			-			19
Equipment expense		6		12		-		-		12			-			30
Marketing expense		1		14		1		1		19			-			36
Card and processing expense		2		29		-		-		-			-			31
Other noninterest expense		210		198		51		70		(283	)		(33	)		213
Total noninterest expense		356		440		101		130		103			(33	)		1,097
Income before income taxes		360		275		10		33		318			-			996
Applicable income tax expense		66		58		2		7		88			-			221
Net income		294		217		8		26		230			-			775
Total goodwill	$	630		1,655		-		193		(1,843)(d)			-			4,321
Total assets	$	74,377		69,599		24,662		9,916		(10,701)(c)			-			167,853

(a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income.

(b) Includes impairment charges of $20 for branches and land. For more information refer to Note 8.

(c) Includes bank premises and equipment of $78 classified as held for sale. For more information refer to Note 8.

(d) Due to the timing of the MB Financial, Inc. acquisition, the Bancorp was in the process of completing its analysis of the allocation of the goodwill across its four business segments, therefore goodwill was presented as part of General Corporate and Other as of March 31, 2019.

(e) During the first quarter of 2020, certain noninterest income and noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest income and noninterest expense did not change as a result of these reclassifications.