Annual report pursuant to Section 13 and 15(d)

Shareholders' Equity

v3.20.4
Shareholders' Equity
 12 Months Ended
Dec. 31, 2020
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
Common Stock
Declared Quarterly Cash Dividends on Common Stock (1)
Declaration Date Record Date Payment Date Dividend Per Share
January 19, 2021 March 5, 2021 March 26, 2021 $ 0.18 
October 21, 2020 December 4, 2020 December 24, 2020 0.18 
July 22, 2020 September 4, 2020 September 25, 2020 0.18 
April 22, 2020 June 5, 2020 June 26, 2020 0.18 
January 29, 2020 March 6, 2020 March 27, 2020 0.18 
(1)In 2020, and through February 24, 2021.
The cash dividends paid per share of common stock were $0.72 $0.66 and $0.54 for 2020, 2019 and 2018, respectively.
The following table summarizes common stock repurchases during 2020, 2019 and 2018.
Common Stock Repurchase Summary
(in millions) 2020 2019 2018
Total share repurchases, including CCAR
capital plan repurchases		 227  956  676 
Purchase price of shares repurchased
and retired
CCAR capital plan repurchases $ 7,025  $ 25,644  $ 16,754 
Other authorized repurchases —  2,500  3,340 
Total shares repurchased $ 7,025  $ 28,144  $ 20,094 
During 2020, the Board of Governors of the Federal Reserve System (Federal Reserve) announced that due to economic uncertainty resulting from COVID-19, all large banks would be required to suspend share repurchase programs in the third and fourth quarters of 2020, except for repurchases to offset shares awarded under equity-based compensation plans, and to limit dividends to existing rates that do not exceed the average of the last four quarters’ net income.
The Federal Reserve’s directives regarding share repurchases aligned with the Corporation's decision to voluntarily suspend repurchases during the first half of 2020. The suspension of the Corporation's repurchases did not include repurchases to offset shares awarded under its equity-based compensation plans.
During 2020, the Corporation repurchased and retired 227 million shares of common stock, which reduced shareholders’ equity by $7.0 billion.
During 2020, in connection with employee stock plans, the Corporation issued 66 million shares of its common stock and, to satisfy tax withholding obligations, repurchased 26 million shares of its common stock. At December 31, 2020, the Corporation had reserved 513 million unissued shares of common stock for future issuances under employee stock plans, convertible notes and preferred stock.
Preferred Stock
The cash dividends declared on preferred stock were $1.4 billion, $1.4 billion and $1.5 billion for 2020, 2019 and 2018, respectively.
On January 24, 2020, the Corporation issued 44,000 shares of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series MM for $1.1 billion. Dividends are paid semi-annually during the
fixed-rate period, then quarterly during the floating-rate period. The Series MM preferred stock has a liquidation preference of $25,000 per share and is subject to certain restrictions in the event the Corporation fails to declare and pay full dividends.
On October 29, 2020, the Corporation issued 44,000 shares of 4.375% Non-Cumulative Preferred Stock, Series NN for $1.1 billion, with quarterly dividend payments commencing in February 2021. The Series NN preferred stock has a liquidation preference of $25,000 per share and is subject to certain restrictions in the event the Corporation fails to declare and pay full dividends.
On January 28, 2021, the Corporation issued 36,000 shares of 4.125% Non-Cumulative Preferred Stock, Series PP for $915 million, with quarterly dividends commencing in May 2021. The Series PP preferred stock has a liquidation preference of $25,000 per share and is subject to certain restrictions in the event the Corporation fails to declare and pay full dividends.
In 2020, the Corporation fully redeemed Series Y preferred stock for $1.1 billion. Additionally, on January 29, 2021, the Corporation fully redeemed Series CC preferred stock for $1.1 billion.
All series of preferred stock in the Preferred Stock Summary table have a par value of $0.01 per share, are not subject to the operation of a sinking fund, have no participation rights, and with the exception of the Series L Preferred Stock, are not convertible. The holders of the Series B Preferred Stock and Series 1 through 5 Preferred Stock have general voting rights and vote together with the common stock. The holders of the other series included in the table have no general voting rights. All outstanding series of preferred stock of the Corporation have preference over the Corporation’s common stock with respect to the payment of dividends and distribution of the Corporation’s assets in the event of a liquidation or dissolution. With the exception of the Series B, F, G and T Preferred Stock, if any dividend payable on these series is in arrears for three or more semi-annual or six or more quarterly dividend periods, as applicable (whether consecutive or not), the holders of these series and any other class or series of preferred stock ranking equally as to payment of dividends and upon which equivalent voting rights have been conferred and are exercisable (voting as a single class) will be entitled to vote for the election of two additional directors. These voting rights terminate when the Corporation has paid in full dividends on these series for at least two semi-annual or four quarterly dividend periods, as applicable, following the dividend arrearage.
The 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L (Series L Preferred Stock) does not have early redemption/call rights. Each share of the Series L Preferred Stock may be converted at any time, at the option of the holder, into 20 shares of the Corporation’s common stock plus cash in lieu of fractional shares. The Corporation may cause some or all of the Series L Preferred Stock, at its option, at any time or from time to time, to be converted into shares of common stock at the then-applicable conversion rate if, for 20 trading days during any period of 30 consecutive trading days, the closing price of common stock exceeds 130 percent of the then-applicable conversion price of the Series L Preferred Stock. If a conversion of Series L Preferred Stock occurs at the option of the holder, subsequent to a dividend record date but prior to the dividend payment date, the Corporation will still pay any accrued dividends payable.
The table below presents a summary of perpetual preferred stock outstanding at December 31, 2020.
Preferred Stock Summary
(Dollars in millions, except as noted)
Series Description Initial
Issuance
Date		 Total
Shares
Outstanding		 Liquidation
Preference
per Share
(in dollars)		 Carrying
Value		 Per Annum
Dividend Rate		 Dividend per Share
(in dollars)		 Annual Dividend
Redemption Period (1)
Series B
7% Cumulative Redeemable
 June
1997		 7,110  $ 100  $ 1  7.00  % $ 7  $ —  n/a
Series E (2)
Floating Rate Non-Cumulative November
2006		 12,691  25,000  317 
3-mo. LIBOR + 35 bps (3)
1.02  13  On or after
November 15, 2011
Series F Floating Rate Non-Cumulative March
2012		 1,409  100,000  141 
3-mo. LIBOR + 40 bps (3)
4,066.67  6  On or after
March 15, 2012
Series G Adjustable Rate Non-Cumulative March
2012		 4,926  100,000  493 
3-mo. LIBOR + 40 bps (3)
4,066.67  20  On or after
March 15, 2012
Series L
7.25% Non-Cumulative Perpetual Convertible
 January
2008		 3,080,182  1,000  3,080  7.25  % 72.50  223  n/a
Series T
 6% Non-cumulative
 September
2011		 354  100,000  35  6.00  % 6,000.00  2  After May 7, 2019
Series U (4)
Fixed-to-Floating Rate Non-Cumulative May
2013		 40,000  25,000  1,000 
5.2% to, but excluding, 6/1/23; 3-mo. LIBOR + 313.5 bps thereafter
 52.00  52  On or after
June 1, 2023
Series X (4)
Fixed-to-Floating Rate Non-Cumulative September
2014		 80,000  25,000  2,000 
6.250% to, but excluding, 9/5/24; 3-mo. LIBOR + 370.5 bps thereafter
 62.50  125  On or after
September 5, 2024
Series Z (4)
Fixed-to-Floating Rate Non-Cumulative October
2014		 56,000  25,000  1,400 
6.500% to, but excluding, 10/23/24; 3-mo. LIBOR + 417.4 bps thereafter
 65.00  91  On or after
October 23, 2024
Series AA (4)
Fixed-to-Floating Rate Non-Cumulative March
2015		 76,000  25,000  1,900 
6.100% to, but excluding, 3/17/25; 3-mo. LIBOR + 389.8 bps thereafter
 61.00  116  On or after
March 17, 2025
Series CC (2)
6.200% Non-Cumulative
 January
2016		 44,000  25,000  1,100  6.200  % 1.55  68  On or after
January 29, 2021
Series DD (4)
Fixed-to-Floating Rate Non-Cumulative March
2016		 40,000  25,000  1,000 
6.300% to, but excluding, 3/10/26; 3-mo. LIBOR + 455.3 bps thereafter
 63.00  63  On or after
March 10, 2026
Series EE (2)
6.000% Non-Cumulative
 April
2016		 36,000  25,000  900  6.000  % 1.50  54  On or after
April 25, 2021
Series FF (4)
Fixed-to-Floating Rate Non-Cumulative March
2018		 94,000  25,000  2,350 
5.875% to, but excluding, 3/15/28; 3-mo. LIBOR + 293.1 bps thereafter
 58.75  138  On or after
March 15, 2028
Series GG (2)
6.000% Non-Cumulative
 May
2018		 54,000  25,000  1,350  6.000  % 1.50  81  On or after
May 16, 2023
Series HH (2)
5.875% Non-Cumulative
 July
2018		 34,160  25,000  854  5.875  % 1.47  50  On or after
July 24, 2023
Series JJ (4)
Fixed-to-Floating Rate Non-Cumulative June
2019		 40,000  25,000  1,000 
5.125% to, but excluding, 6/20/24; 3-mo. LIBOR + 329.2 bps thereafter
 51.25  51  On or after
June 20, 2024
Series KK (2)
5.375% Non-Cumulative
 June
2019		 55,900  25,000  1,398  5.375  % 1.34  75  On or after
June 25, 2024
Series LL (2)
5.000% Non-Cumulative
 September
2019		 52,400  25,000  1,310  5.000  % 1.25  66  On or after
September 17, 2024
Series MM (4)
Fixed-to-Floating Rate Non-Cumulative January
2020		 44,000  25,000  1,100  4.300  % 43.48  48  On or after
January 28, 2025
Series NN (2)
4.375% Non-Cumulative
 October
2020		 44,000  25,000  1,100  4.375  % 0.29  13  On or after
November 3, 2025
Series 1 (5)
Floating Rate Non-Cumulative November
2004		 3,275  30,000  98 
3-mo. LIBOR + 75 bps (6)
0.75  3  On or after
November 28, 2009
Series 2 (5)
Floating Rate Non-Cumulative March
2005		 9,967  30,000  299 
3-mo. LIBOR + 65 bps (6)
0.76  10  On or after
November 28, 2009
Series 4 (5)
Floating Rate Non-Cumulative November
2005		 7,010  30,000  210 
3-mo. LIBOR + 75 bps (3)
1.02  9  On or after
November 28, 2010
Series 5 (5)
Floating Rate Non-Cumulative March
2007		 14,056  30,000  422 
3-mo. LIBOR + 50 bps (3)
1.02  17  On or after
May 21, 2012
Issuance costs and certain adjustments (348)
Total     3,931,440    $ 24,510     
(1)The Corporation may redeem series of preferred stock on or after the redemption date, in whole or in part, at its option, at the liquidation preference plus declared and unpaid dividends. Series B and Series L Preferred Stock do not have early redemption/call rights.
(2)Ownership is held in the form of depositary shares, each representing a 1/1,000th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared.
(3)Subject to 4.00% minimum rate per annum.
(4)Ownership is held in the form of depositary shares, each representing a 1/25th interest in a share of preferred stock, paying a semi-annual cash dividend, if and when declared, until the first redemption date at which time, it adjusts to a quarterly cash dividend, if and when declared, thereafter.
(5)Ownership is held in the form of depositary shares, each representing a 1/1,200th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared.
(6)Subject to 3.00% minimum rate per annum.
n/a = not applicable