8-KOther EventsExhibits & Filings

STATE STREET CORP 8-K Report, Corporate Update (May 2, 2019)

Filed May 2, 2019For Securities:STTSTT-PG

Summary

State Street Corporation (STT) filed this 8-K on May 2, 2019, to disclose a voluntary change in its accounting method related to its investments in low-income housing tax credits (LIHTC). Effective for the first quarter of 2019 and applied retrospectively to all prior periods presented, the company transitioned from the equity method of accounting to the proportional amortization method for these specific investments. This accounting change impacts the presentation of its financial statements and certain disclosures within its 2018 Form 10-K, including selected financial data and Management's Discussion and Analysis. Importantly, the company notes that this change does not affect its reported capital metrics and ratios under applicable bank regulatory rules, meaning regulatory capital levels remain unchanged. Investors should review the updated financial statements in Exhibit 99.1 and 99.2 of this filing for the precise impact on reported earnings and balance sheet figures.

Key Highlights

  • 1State Street voluntarily changed its accounting method for Low-Income Housing Tax Credit (LIHTC) investments.
  • 2The change is from the equity method to the proportional amortization method.
  • 3This change is effective for the first quarter of 2019 and applied retrospectively to all prior periods presented.
  • 4The company has updated specific sections of its 2018 Form 10-K to reflect this change.
  • 5Crucially, the change in accounting method does NOT impact reported capital metrics and ratios under bank regulatory rules.
  • 6Updated financial statements reflecting the accounting change are provided as exhibits to this 8-K.

Frequently Asked Questions

State Street Corporation voluntarily changed its accounting method for investments in Low-Income Housing Tax Credits (LIHTC). Previously accounted for under the equity method, these investments will now be accounted for using the proportional amortization method. This change is applied retrospectively to all prior periods presented.

No, the company explicitly states that this change in accounting method has not affected and will not affect its reported capital metrics and ratios under applicable bank regulatory rules. Regulatory capital levels remain unchanged by this specific accounting adjustment.

The updated financial statements and revised portions of the 2018 Form 10-K, reflecting the change in accounting method, are provided as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K filed on May 2, 2019.

The filing indicates this was a voluntary change initiated by State Street Corporation during the first quarter of 2019. The specific reasons for the voluntary change are not detailed in this 8-K, but it pertains to the accounting treatment of specific investments.