Stockholders' Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Stockholders' Equity

NOTE 9—STOCKHOLDERS’ EQUITY

Preferred Stock

The following table summarizes our preferred stock outstanding as of June 30, 2022 and December 31, 2021.

Table 9.1: Preferred Stock Outstanding(1)

			Redeemable by Issuer Beginning	Per Annum Dividend Rate	Dividend Frequency	Liquidation Preference per Share		Total Shares Outstanding as of June 30, 2022	Carrying Value (in millions)
Series	Description	Issuance Date							June 30, 2022		December 31, 2021
Series I	5.000% Non-Cumulative	September 11, 2019	December 1, 2024	5.000%	Quarterly	$	1,000	1,500,000	$	1,462	$	1,462
Series J	4.800% Non-Cumulative	January 31, 2020	June 1, 2025	4.800	Quarterly	1,000		1,250,000	1,209		1,209
Series K	4.625% Non-Cumulative	September 17, 2020	December 1, 2025	4.625	Quarterly	1,000		125,000	122		122
Series L	4.375% Non-Cumulative	May 4, 2021	September 1, 2026	4.375	Quarterly	1,000		675,000	652		652
Series M	3.950% Fixed Rate Reset Non-Cumulative	June 10, 2021	September 1, 2026	3.950% through 8/31/2026; resets 9/1/2026 and every subsequent 5 year anniversary at 5-Year Treasury Rate +3.157%	Quarterly	1,000		1,000,000	988		988
Series N	4.250% Non-Cumulative	July 29, 2021	September 1, 2026	4.250%	Quarterly	1,000		425,000	412		412
Total									$	4,845	$	4,845

__________

(1)Except for Series M, ownership is held in the form of depositary shares, each representing a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock.

Accumulated Other Comprehensive Income

AOCI primarily consists of accumulated net unrealized gains or losses associated with securities available for sale, changes in fair value of derivatives in hedging relationships and foreign currency translation adjustments.

The following table includes the changes in AOCI by component for the three and six months ended June 30, 2022, and 2021.

Table 9.2: AOCI

	Three Months Ended June 30, 2022
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments (2)		Other		Total
AOCI as of March 31, 2022	$	(2,956)	$	(1,091)	$	(26)	$	(20)	$	(4,093)
Other comprehensive income (loss) before reclassifications	(2,293)		(412)		(52)		0		(2,757)
Amounts reclassified from AOCI into earnings	5		(71)		0		0		(66)
Other comprehensive income (loss), net of tax	(2,288)		(483)		(52)		0		(2,823)
AOCI as of June 30, 2022	$	(5,244)	$	(1,574)	$	(78)	$	(20)	$	(6,916)

	Six Months Ended June 30, 2022
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments (2)		Other		Total
AOCI as of December 31, 2021	$	297	$	118	$	(21)	$	(20)	$	374
Other comprehensive income (loss) before reclassifications	(5,546)		(1,535)		(57)		0		(7,138)
Amounts reclassified from AOCI into earnings	5		(157)		0		0		(152)
Other comprehensive income (loss), net of tax	(5,541)		(1,692)		(57)		0		(7,290)
AOCI as of June 30, 2022	$	(5,244)	$	(1,574)	$	(78)	$	(20)	$	(6,916)

	Three Months Ended June 30, 2021
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of March 31, 2021	$	1,038	$	781	$	(12)	$	(24)	$	1,783
Other comprehensive income (loss) before reclassifications	51		193		9		0		253
Amounts reclassified from AOCI into earnings	0		(244)		0		0		(244)
Other comprehensive income (loss), net of tax	51		(51)		9		0		9
AOCI as of June 30, 2021	$	1,089	$	730	$	(3)	$	(24)	$	1,792

	Six Months Ended June 30, 2021
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of December 31, 2020	$	2,186	$	1,362	$	(31)	$	(23)	$	3,494
Other comprehensive income (loss) before reclassifications	(1,094)		(145)		28		0		(1,211)
Amounts reclassified from AOCI into earnings	(3)		(487)		0		(1)		(491)
Other comprehensive income (loss), net of tax	(1,097)		(632)		28		(1)		(1,702)
AOCI as of June 30, 2021	$	1,089	$	730	$	(3)	$	(24)	$	1,792

__________

(1)Includes amounts related to cash flow hedges as well as the excluded component of cross-currency swaps designated as fair value hedges.

(2)Includes other comprehensive gains of $174 million and $222 million for the three and six months ended June 30, 2022, respectively, and other comprehensive loss of $13 million and $34 million for the three and six months ended June 30, 2021, respectively, from hedging instruments designated as net investment hedges.

The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the three and six months ended June 30, 2022 and 2021.

Table 9.3: Reclassifications from AOCI

(Dollars in millions)		Three Months Ended June 30,				Six Months Ended June 30,
AOCI Components	Affected Income Statement Line Item	2022		2021		2022		2021
Securities available for sale:
	Non-interest income (loss)	$	(6)	$	0	$	(6)	$	4
	Income tax provision (benefit)	(1)		0		(1)		1
	Net income (loss)	(5)		0		(5)		3

(Dollars in millions)		Three Months Ended June 30,				Six Months Ended June 30,
AOCI Components	Affected Income Statement Line Item	2022		2021		2022		2021
Hedging relationships:
Interest rate contracts:	Interest income	63		245		190		480
Foreign exchange contracts:	Interest income	(1)		0		(1)		1
	Interest expense	0		(1)		(1)		(2)
	Non-interest income	31		77		18		162
	Income from continuing operations before income taxes	93		321		206		641
	Income tax provision	22		77		49		154
	Net income	71		244		157		487
Other:
	Non-interest income and non-interest expense	0		0		0		1
	Net income	0		0		0		1
Total reclassifications		$	66	$	244	$	152	$	491

The table below summarizes other comprehensive income (loss) activity and the related tax impact for the three and six months ended June 30, 2022 and 2021.

Table 9.4: Other Comprehensive Income (Loss)

	Three Months Ended June 30,
	2022						2021
(Dollars in millions)	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale	$	(3,012)	$	(724)	$	(2,288)	$	66	$	15	$	51
Net unrealized losses on hedging relationships	(634)		(151)		(483)		(68)		(17)		(51)
Foreign currency translation adjustments(1)	4		56		(52)		4		(5)		9
Other	0		0		0		0		0		0
Other comprehensive income (loss)	$	(3,642)	$	(819)	$	(2,823)	$	2	$	(7)	$	9

	Six Months Ended June 30,
	2022						2021
(Dollars in millions)	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
Other comprehensive income (loss):
Net unrealized losses on securities available for sale	$	(7,299)	$	(1,758)	$	(5,541)	$	(1,446)	$	(349)	$	(1,097)
Net unrealized losses on hedging relationships	(2,227)		(535)		(1,692)		(834)		(202)		(632)
Foreign currency translation adjustments(1)	14		71		(57)		17		(11)		28
Other	0		0		0		(1)		0		(1)
Other comprehensive loss	$	(9,512)	$	(2,222)	$	(7,290)	$	(2,264)	$	(562)	$	(1,702)

__________

(1)Includes the impact of hedging instruments designated as net investment hedges.