Item 6. SELECTED CONSOLIDATED FINANCIAL DATA

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Item 6. SELECTED CONSOLIDATED FINANCIAL DATA

The following selected consolidated financial data should be read in conjunction with Item 7 and our audited Consolidated Financial Statements and Notes in Item 8. Our historical results are not necessarily indicative of the results expected for any future period.


	For the Year Ended December 31,
(in millions, except per-share and ratio data)	2020		2019		2018		2017		2016
OPERATING DATA:
Net interest income	$4,586		$4,614		$4,532		$4,173		$3,758
Noninterest income	2,319		1,877		1,596		1,534		1,497
Total revenue	6,905		6,491		6,128		5,707		5,255
Provision for credit losses	1,616		393		326		321		369
Noninterest expense	3,991		3,847		3,619		3,474		3,352
Income before income tax expense	1,298		2,251		2,183		1,912		1,534
Income tax expense(1)	241		460		462		260		489
Net income	1,057		1,791		1,721		1,652		1,045
Net income available to common stockholders	950		1,718		1,692		1,638		1,031
Net income per average common share - basic	2.22		3.82		3.54		3.26		1.97
Net income per average common share - diluted	2.22		3.81		3.52		3.25		1.97
Dividends declared and paid per common share	1.56		1.36		0.98		0.64		0.46
OTHER OPERATING DATA:
Return on average common equity(2)	4.65	%	8.45	%	8.62	%	8.35	%	5.23	%
Return on average tangible common equity(2)	6.93		12.64		12.94		12.35		7.74
Return on average total assets(2)	0.60		1.10		1.11		1.10		0.73
Return on average total tangible assets(2)	0.62		1.15		1.16		1.15		0.76
Efficiency ratio(2)	57.80		59.28		59.06		60.87		63.80
Operating leverage(2)(3)	2.65		(0.39)		3.19		4.98		6.08
Net interest margin, FTE(4)	2.89		3.16		3.22		3.06		2.90
Effective income tax rate(1)	18.54		20.43		21.16		13.62		31.88
Dividend payout ratio	70		36		28		20		23
Average equity to average assets ratio	12.60		13.27		13.02		13.25		13.93

(1) On December 22, 2017, Tax Legislation was passed reducing the corporate tax rate from 35% to 21% effective January 1, 2018.

(2) See the “Introduction — Key Performance Metrics Used by Management and Non-GAAP Financial Measures” section in Item 7 for definitions of our key performance metrics.

(3) “Operating leverage” represents the period-over-period percent change in total revenue, less the period-over-period percent change in noninterest expense. For the purpose of the 2016 calculation, 2015 total revenue was $4.8 billion and noninterest expense was $3.3 billion.

(4) Net interest margin is presented on an FTE basis using the federal statutory tax rate.


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	As of December 31,
(in millions, except ratio data)	2020		2019		2018		2017		2016
BALANCE SHEET DATA:
Total assets	$183,349		$165,733		$160,518		$152,336		$149,520
Loans held for sale, at fair value	3,564		1,946		1,219		497		583
Other loans held for sale	439		1,384		101		221		42
Loans and leases	123,090		119,088		116,660		110,617		107,669
Allowance for loan and lease losses(1)	(2,443)		(1,252)		(1,242)		(1,236)		(1,236)
Total securities	26,847		24,669		25,075		25,733		25,610
Goodwill	7,050		7,044		6,923		6,887		6,876
Total liabilities	160,676		143,532		139,701		132,066		129,773
Total deposits	147,164		125,313		119,575		115,089		109,804


Short-term borrowed funds(2)	243		274		1,317		1,926		3,609
Long-term borrowed funds	8,346		14,047		15,925		12,510		13,540
Total stockholders’ equity	22,673		22,201		20,817		20,270		19,747
OTHER BALANCE SHEET DATA:
Asset Quality Ratios:
Allowance for loan and lease losses to loans and leases(1)	1.98	%	1.05	%	1.06	%	1.12	%	1.15	%
Allowance for credit losses to loans and leases(1)	2.17		1.09		1.14		1.20		1.22
Allowance for credit losses to loans and leases, excluding the impact of PPP loans(3)	2.24		1.09		1.14		1.20		1.22
Allowance for loan and lease losses to nonaccruing loans and leases(1)	240		178		162		142		119
Allowance for credit losses to nonaccruing loans and leases(1)	262		184		174		153		126
Nonaccruing loans and leases to loans and leases	0.83		0.59		0.66		0.78		0.97
Capital Ratios:(4)
CET1 capital ratio	10.0		10.0		10.6		11.2		11.2
Tier 1 capital ratio	11.3		11.1		11.3		11.4		11.4
Total capital ratio	13.4		13.0		13.3		13.9		14.0
Tier 1 leverage ratio	9.4		10.0		10.0		10.0		9.9

(1) Allowance for loan and leases losses, allowance for credit losses, and related ratios, at December 31, 2020 reflect the impact of the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

(2) In the first quarter of 2020, we reclassified federal funds purchased and securities sold under agreement to repurchase and other short-term borrowed funds to

short-term borrowed funds. Prior periods have been adjusted to conform with the current period presentation.

(3) For more information on the computation of non-GAAP financial measures, see “-Introduction - Non-GAAP Financial Measures” and “-Non-GAAP Financial Measures and Reconciliations.”

(4) The capital ratios and associated components are prepared using the U.S. Basel III Standardized approach and became fully phased-in on January 1, 2019. The December 31, 2017 capital ratios reflect the retrospective adoption of FASB ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.


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